Q&A

Latest Update : Aug.16, 2018

Back to Investor Meeting Presentations (FY3/2019)

Investor Conference Call for 1Q FY 3/2019 held on August 3, 2018

* Some parts have been added and modified for a clearer understanding.

Question

Question and Answer

I believe your understanding would be correct. They've already been launched, so the price has been determined.
It's a reflection that the launch has begun slightly ahead of schedule.
We're keeping the estimates conservative.
We applied IFRS in the first quarter, so goodwill amortization was eliminated, and some common expenses were allocated to specific segments. Furthermore, there were no expenses this quarter associated with various business considerations, such as M&As. There were also special factors such as the slight difference between the recorded allowance for director's bonuses, etc. and the amount paid. For the full year, we have not changed the estimate of 16 billion yen.
As a general observation, I believe this is the time that second quarter expenses come into view.
With respect to the change in camera actuators, there was not much production the previous quarter, but in the first quarter, production took off to an extent. That there was production for other customers also contributed.
In regard to the increase from the first quarter to the second quarter, I can't touch on specific products, but as far as sub-segments go, we expect bigger growth in mechanical components.
LED backlight production is already underway as previously mentioned. We see it peaking in the third quarter, but I'm not at liberty to talk numbers.
As for optical devices, compared to LED backlights, the preparations are slightly earlier, and we see them peaking in the second or third quarter.
Yes.
We're confident that LCD is superior in various respects, including power consumption and durability. The one area in which OLED comes out ahead is contrast or how dark blacks can be displayed. Our belief is that if we can get LCDs to around that same level, LCDs will come out ahead.
When we first started developing competing displays, we were attempting to achieve design innovation with LCD, but we are now working on how well we can display blacks. Coincidentally, I saw one of the LCDs under development yesterday. The blacks were very distinct, so you can expect it.
I don't think there's much room for potential upside in volume through improvement of productivity. We are hoping that they will level off.
We've made quite a bit of improvements to productivity up to now, and the last new machine will be put into service at the end of this month. It depends on the operating days, but even if there were an increase, it would be several million at the most.
We plan to fulfill our supply responsibility as much as we can, but we don't know what's going to happen. We're at full capacity now, but I don't think there's much of a point in discussing hypotheticals.
I've heard reports from sales that they feel a plateau might be coming. My understanding is that the cryptocurrency market has entered a lull.
Motor sales fell slightly short of the initial forecast, but based on the latest circumstances, we generally don't feel there is cause for great concern. In the second quarter, various motors will be launched, so we believe that the first and second quarter total will be about what we expected.
In regard to cryptocurrencies, ball bearings enjoy high market share in general, but as for fan motors and other jobs, we haven't disclosed what the impact of cryptocurrencies will be. The numbers disclosed for motor sales already reflect the impact from the slowdown in the cryptocurrency market.
There was some advance manufacturing of seasonal products ahead of the second quarter, and inventories have grown, including strategic portions.
Also, as you can see from the Mitsumi results, there were operations that we did not have much in the fourth quarter, and there have been profits from this.
I can't go into details, but as you say, it's nothing but a harmful rumor.
It's a B-to-B business, so it's hard to express, but the estimates are slightly conservative for both. It's not one or the other.
We don't believe there will be any significant change in market share. As for yield, my understanding is that the launch is currently going very favorably.
We operate a large plant in China, and we are engaged in business in North America as well, primarily products for aircraft, but there has not been any significant direct impact. It's not that there's no impact, but it's very limited. I'm not sure about the impact on our customers, but one of our strengths is that we are engaged in manufacturing at facilities outside of China as well, so we will address the situation with flexibility.
When we would see it is after our customers' production plans and inventories have been adjusted. At this point in time, we have not seen any impact. We will continue to keep a watchful eye on that as we go forward.
I can't talk about the specific models of specific customers, but basically, the trend of requirements for accurate OIS and VCM is a positive one for us. The more such models come out, the more business opportunities we will have. We've actually had an increase in inquiries, and we're starting to get into it. This trend is not bad for us at all.

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