Forecast for the Year Ending March 31, 2014 (Fiscal 2013)
1. Financial Results Forecast for Fiscal 2013 | (Billions of yen) |
| |
FY2012 |
FY2013 |
| Full Year |
1H (Forecast) |
|
2H (Forecast) |
|
Full Year (Forecast) |
|
Change
(Y on Y) |
Change
(Y on Y) |
Change
(Y on Y) |
| Net Sales |
2,478.5 |
1,270.0 |
+15.0% |
1,430.0 |
+4.0% |
2,700.0 |
+8.9% |
| |
Domestic |
1,007.2 |
500.0 |
+9.7% |
520.0 |
-5.7% |
1,020.0 |
+1.3% |
| |
Overseas |
1,471.3 |
770.0 |
+18.7% |
910.0 |
+10.6% |
1,680.0 |
+14.2% |
| Operating Income |
-146.2 |
15.0 |
- |
65.0 |
+187.2% |
80.0 |
- |
| Other Income (Expenses) / Income Taxes, etc |
-399.0 |
-35.0 |
- |
-40.0 |
- |
-75.0 |
- |
| Net Income |
-545.3 |
-20.0 |
- |
25.0 |
- |
5.0 |
- |
We forecast net sales of 2,700 billion yen, up 8.9% compared to fiscal 2012. The operating income is projected to be 80 billion yen, improved by 226.2 billion yen from the loss of 146.2 billion yen in fiscal 2012. Net income is projected to return to profitability with 5 billion yen, improved by 550.3 billion yen from the loss of 545.3 billion yen in fiscal 2012.
We expect net sales to recover to around 1,200 billion yen in the first half and to around 1,400 billion yen in the second half. Operating income is projected to be 15 billion yen in the first half and 65 billion yen in the second half, the consecutive surplus from the second half of fiscal 2012.
<Forecast by quarter>
Looking at the forecast by quarter, we anticipate a temporary weakening of net sales in the first quarter in fiscal 2013 compared to the fourth quarter of fiscal 2012, the previous quarter. However, from the second quarter of fiscal 2013, we are aiming for a steady recovery of net sales at the level of 700 billion yen for each quarter, targeting at 2,700 billion yen in fiscal 2013. We expect a temporary weakening of operating income in the first quarter of fiscal 2013 as well, due to a decline in sales, but we will aim for a steady recovery in profit from the second quarter.
The backdrop of a decline in net sales in the first quarter of fiscal 2013
In the first quarter, we expect a decline in sales for Digital Information Equipment and LCDs, due to seasonal factors and fluctuations of orders from major clients, compared to the fourth quarter in fiscal 2012. Also, the sales for Solar Cells will be weaker than the fourth quarter in fiscal 2012 in which we enjoyed last-minute demands for solar cells.
<Information by product group>
| Sales by product group |
(Billions of yen) |
Sales of each product group include internal sales between segments (Product Business / Device Business)
| |
FY2011 |
FY2012 |
FY2013 |
| |
|
|
|
|
|
|
|
| Full Year |
1H |
3Q |
4Q |
2H |
Full Year |
Full Year
(Forecast) |
Change
(Y on Y) |
| |
Digital Information Equipment |
1,061.0 |
338.5 |
202.3 |
191.6 |
394.0 |
732.6 |
760.0 |
+3.7% |
| |
Health and Environmental Equipment |
292.2 |
154.9 |
74.8 |
79.8 |
154.6 |
309.6 |
320.0 |
+3.3% |
| |
Solar Cells |
223.8 |
93.0 |
55.9 |
110.8 |
166.8 |
259.9 |
280.0 |
+7.7% |
| |
Business Solutions |
277.5 |
138.9 |
69.6 |
88.3 |
158.0 |
296.9 |
310.0 |
+4.4% |
| Product Business |
1,854.8 |
725.6 |
402.8 |
470.6 |
873.5 |
1,599.2 |
1,670.0 |
+4.4% |
| |
LCDs |
721.0 |
368.0 |
258.2 |
220.5 |
478.8 |
846.8 |
970.0 |
+14.5% |
| |
Electronic Devices |
238.1 |
126.4 |
82.2 |
62.0 |
144.2 |
270.6 |
320.0 |
+18.2% |
| Device Business |
959.1 |
494.4 |
340.4 |
282.6 |
623.0 |
1,117.5 |
1,290.0 |
+15.4% |
| Sub Total |
2,814.0 |
1,220.1 |
743.3 |
753.2 |
1,496.6 |
2,716.7 |
2,960.0 |
+9.0% |
| Adjustments |
-358.1 |
-115.9 |
-65.0 |
-57.1 |
-122.2 |
-238.1 |
-260.0 |
- |
| Total |
2,455.8 |
1,104.1 |
678.2 |
696.1 |
1,374.4 |
2,478.5 |
2,700.0 |
+8.9% |
| |
Domestic |
1,181.1 |
455.7 |
255.9 |
295.6 |
551.5 |
1,007.2 |
1,020.0 |
+1.3% |
| |
Overseas |
1,274.6 |
648.4 |
422.3 |
400.5 |
822.8 |
1,471.3 |
1,680.0 |
+14.2% |
As part of our organizational reform on April 1, 2013, we changed two segment names: “Consumer/Information Products” to “Product Business,” and “Electronic Components” to “Device Business.” At the same time, “Solar Cells” is transferred to the segment of Product Business from Electronic Components. In addition, we changed the name of product group: “Audio-Visual and Communication Equipment” to “Digital Information Equipment,” and “Information Equipment” to “Business Solutions.”
In the segment of Product Business, we aim for increasing sales of every product group to be up 4.4% in total over fiscal 2012. As for Device Business, we aim for increasing sales by 15.4% up from fiscal 2012, expecting larger sales of LCDs for new and existing major clients.
The average exchange rate for fiscal 2012 was 82 yen per 1 U.S. dollar. For fiscal 2013, we estimate 95 yen per 1 U.S. dollar. We factored in a positive impact of the weak yen on overseas sales of both Product Business and Device Business segments for fiscal 2013.
| Operating income by product group | (Above: Amount (Billions of yen) Below: vs. sales (%)) |
| |
FY2011 |
FY2012 |
FY2013 |
| |
|
|
|
|
|
Full Year
(Forecast) |
Diffe-
rence
from
previous
year |
| Full Year |
1H |
3Q |
4Q |
2H |
Full Year |
| |
Digital Information Equipment |
-6.1 |
-21.1 |
5.3 |
6.0 |
11.3 |
-9.8 |
12.0 |
+21.8 |
| |
-0.6% |
-6.3% |
2.6% |
3.1% |
2.9% |
-1.3% |
1.6% |
|
| |
Health and Environmental Equipment |
29.4 |
17.3 |
7.4 |
7.3 |
14.8 |
32.2 |
20.0 |
-12.2 |
| |
10.1% |
11.2% |
10.0% |
9.3% |
9.6% |
10.4% |
6.3% |
|
| |
Solar Cells |
-21.9 |
-12.3 |
-1.9 |
9.7 |
7.8 |
-4.4 |
6.0 |
+10.4 |
| |
-9.8% |
-13.2% |
-3.4% |
8.8% |
4.7% |
-1.7% |
2.1% |
|
| |
Business Solutions |
27.7 |
6.9 |
6.3 |
11.0 |
17.3 |
24.3 |
22.0 |
-2.3 |
| |
10.0% |
5.0% |
9.1% |
12.5% |
11.0% |
8.2% |
7.1% |
|
| Product Business |
29.0 |
-9.1 |
17.2 |
34.1 |
51.3 |
42.1 |
60.0 |
+17.8 |
| 1.6% |
-1.3% |
4.3% |
7.3% |
5.9% |
2.6% |
3.6% |
|
| |
LCDs |
-42.2 |
-115.5 |
-11.7 |
-11.6 |
-23.4 |
-138.9 |
30.0 |
+168.9 |
| |
-5.9% |
-31.4% |
-4.6% |
-5.3% |
-4.9% |
-16.4% |
3.1% |
|
| |
Electronic Devices |
9.5 |
-23.7 |
3.1 |
5.0 |
8.2 |
-15.5 |
12.0 |
+27.5 |
| |
4.0% |
-18.8% |
3.9% |
8.2% |
5.7% |
-5.7% |
3.8% |
|
| Device Business |
-32.7 |
-139.3 |
-8.5 |
-6.6 |
-15.1 |
-154.5 |
42.0 |
+196.5 |
| -3.4% |
-28.2% |
-2.5% |
-2.3% |
-2.4% |
-13.8% |
3.3% |
|
| Sub Total |
-3.6 |
-148.5 |
8.6 |
27.5 |
36.1 |
-112.3 |
102.0 |
+214.3 |
| -0.1% |
-12.2% |
1.2% |
3.7% |
2.4% |
-4.1% |
3.4% |
|
| Adjustments |
-33.8 |
-20.3 |
-5.9 |
-7.5 |
-13.5 |
-33.9 |
-22.0 |
+11.9 |
| Total |
-37.5 |
-168.8 |
2.6 |
19.9 |
22.6 |
-146.2 |
80.0 |
+226.2 |
| -1.5% |
-15.3% |
0.4% |
2.9% |
1.6% |
-5.9% |
3.0% |
|
The operating income of Product Business is forecast as 60 billion yen, 17.8 billion yen up from fiscal 2012. The operating income of Device Business is forecast as 42 billion yen, 196.5 billion yen up from fiscal 2012. To sum up, we aim for positive operating income for all product groups in Product Business and Device Business in fiscal 2013.
In the first half of fiscal 2013, we anticipate a decrease in operating income due to negative impact of weakened yen on Product Business compared to the second half in fiscal 2012. From the second half in fiscal 2013, we aim for improving profits by recovering profit in Product Business and by increasing sales for major clients in LCDs, which are also positively affected by the weakened yen.
<Changing factor in operating income>
Reduction of assets and fixed costs focused on labor cost, and increased revenue, will largely contribute to improving operating income.
<Aiming for positive net income>
We have almost completed recording of a large sum of costs for business restructuring from fiscal 2011 through fiscal 2012. In fiscal 2013, other income (expenses) will be considerably improved, and income taxes, etc. will be decreased.
Thus, we aim for positive net income not only with a recovery in operating income but also with these improvements.
2. Cleanup of Balance Sheet (Net Assets Section)
In addition to the financial announcement, we reported a capital decrease. This is to make a fresh start by cleaning up the Net Assets section of the balance sheet, which has cumulative loss carried forward. This accounting process will have no impact on the amount of net assets and the total number of issued shares, thus, there will be no changes to net assets per share.
We will strive for capital reinforcement by increasing operating cash flows, and will consider agile financing activities based on the decrease in capital.
Notice Regarding Reduction of Common Stock, Capital Reserve and Legal Reserve, and Appropriation of Surpluses (PDF:17KB)3. Enforcing Organization and Governance Structure
As of April 1, a Business Group system and Corporate Management Group were introduced to reinforce management and execution abilities. In addition, by accepting personnel from our two main banks to participate in our management, we will work together with our main banks for management reconstruction.