Consolidated financial results for the year ended March 31, 2015, recorded net sales of 2,786.2 billion yen, down 4.8% from last year, an operating loss of 48.0 billion yen, and a net loss of 222.3 billion yen. These are the first losses in two years.

Looking at sales by product group for fiscal 2014, sales were up in Business Solutions and Electronic Devices, while other product groups showed lower sales compared with last year.

Operating income increased for Communications and Business Solutions, while it fell in Health and Environmental Equipment, LCDs, and Electronic Devices. Digital Information Equipment and Energy Solutions were in the red.

In fiscal 2014, while equity in earnings of affiliates increased from the last year, impairment losses were recorded as costs related to structural reform. As a result, other income (expenses) worsened compared to the last year.

Operating income was down significantly from the forecast, resulting in an operating loss. Sources for this loss include the following (1) in the Energy Solutions business, an allowance for a difference between the long-term contracted price of polysilicon and the actual market price was recognized as a cost of sales, and (2) an inventory write-down in small- and medium-size LCDs was recognized.
Net income fell far short of the forecast, resulting in a net loss. This was due to the recording of costs related to structural reforms as other expenses, including expenses related to structural reforms in the LCD TV business overseas, and impairment losses on production equipment, particularly for LCDs.

As for the causes of the deterioration in operating income in fiscal 2014 compared to last year, operating income was negatively impacted by a decrease in transient income (for example, income from the LCD engineering business and the solar developer business) as well as by the effects of price drops and a worsened model mix. Other worsening factors included a valuation reserve for inventory purchase commitments in the long-term contracts for polysilicon (a material used in solar panels) and an inventory write-down in small- and medium-size LCDs.

Cash and time deposits at the end of March 2015 decreased by 121.1 billion yen from the end of March 2014, due to an increase in inventory and a bond redemption.
Plant and equipment was down by 119.1 billion yen from the end of March 2014 due to factors including asset sales related to structural reform and impairment losses on production equipment. The equity ratio decreased from 8.9% to 1.5%.

Inventories at the end of March 2015 were 338.3 billion yen, an increase of 43.1 billion yen from the end of March 2014. The ratio vs. monthly sales worsened from 1.21 months at the end of March 2014 to 1.46 months.

Interest-bearing debt at the end of March 2015 was 974.2 billion yen, a decrease of 119.2 billion yen from the end of March 2014, while the ratio vs. monthly sales was 4.20 months, an improvement of 0.28 months.
Net interest-bearing debt was 715.7 billion yen, an increase of 1.8 billion yen from 713.9 billion yen at the end of March 2014.