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<Consolidated Financial Results for the Second Quarter Ended September 30, 2013>
Financial Material

Sales and Operating Income by Product Group
The forecasts for this fiscal year for each product group and main product remain unchanged from those announced on August 1, 2013.
Sales by product group include internal sales and transfer between segments (Product Business and Device Business).
Digital Information Equipment
(Billions of Yen, millions of units)
  FY2012 FY2013   FY2013
1H   1H   Full Year
1Q   2Q  
Change Change Change Forecast
(8/1)
Change
(Y on Y)
Sales 338.5 158.9 +18.5% 175.6 -14.1% 334.6 -1.2% 730.0 -0.4%
  LCD TVs Amt 185.7 80.3 +3.4% 113.7 +5.3% 194.0 +4.5% 400.0 +3.0%
Unit 3.89 1.56 -6.2% 2.12 -4.6% 3.69 -5.3% 8.00 -0.4%
Mobile Phones Amt 98.3 50.2 +71.8% 37.2 -46.0% 87.5 -11.0% 210.0 -8.5%
Unit 2.73 1.31 +69.1% 1.11 -43.0% 2.42 -11.1% 5.50 -10.0%
Operating Income
(vs. sales)
-21.1
(-6.3%)
-1.3
(-0.9%)
-

2.2
(1.3%)
-

0.8
(0.3%)
-

5.0
(0.7%)
-

Sales of Digital Information Equipment were 334.6 billion yen for the first half of fiscal 2013, falling a bit short of those in the same period last year. Operating income was 0.8 billion yen, an improvement of 22.0 billion yen over the operating loss of 21.1 billion yen recorded in the same period last year.
LCD TVs
Sales were sluggish in the U.S. and Europe but grew in Japan, China, and emerging countries. In an effort to grow sales, we will continue to expand our lineup of models 60 inches and larger, strengthen sales in emerging countries and other key regions, and develop new products such as 4K models.
Mobile phones
Sales decreased compared with the same period last year, both on monetary and unit basis. We expect that the current tough market situation will continue, due to factors such as fierce competition with overseas mobile phone manufacturers. We will focus our efforts on winning back market share in Japan by enhancing our lineup with models incorporating IGZO LCDs that feature high definition and low power consumption.
Health and Environmental Equipment
(Billions of Yen)
  FY2012 FY2013   FY2013
1H   1H   Full Year
1Q   2Q  
Change Change Change Forecast
(8/1)
Change
(Y on Y)
Sales 154.9 82.3 +5.2% 77.5 +1.1% 159.8 +3.2% 320.0 +3.3%
Operating Income
(vs. sales)
17.3
(11.2%)
6.4
(7.8%)
-22.1%

3.2
(4.2%)
-64.3%

9.6
(6.0%)
-44.2%

20.0
(6.3%)
-37.9%

Sales of Health and Environmental Equipment were 159.8 billion yen, up 3.2% compared with the same period last year. Operating income was 9.6 billion yen, down 44.2%. The profitability of business in Japan relying on imports from overseas worsened, due to the depreciation of the yen.
We anticipate that rapid changes in terms of trade will continue to have an impact on our earnings. We will push forward with a policy of “local production for local consumption” to minimize the influence of exchange rate fluctuations, and we will expand overseas business, with ASEAN countries as top-priority areas.
Solar Cells
(Billions of Yen)
  FY2012 FY2013   FY2013
1H   1H   Full Year
1Q   2Q  
Change Change Change Forecast
(8/1)
Change
(Y on Y)
Sales 93.0 84.3 +101.1% 83.9 +64.1% 168.2 +80.8% 310.0 +19.3%
Volume (MW) 542 343 +35.7% 560 +93.6% 904 +66.6% 1,800 +36.4%
Operating Income
(vs. sales)
-12.3
(-13.2%)
6.8
(8.1%)
-

3.0
(3.7%)
-

9.8
(5.9%)
-

13.0
(4.2%)
-

Sales of Solar Cells were 168.2 billion yen, up 80% compared with the same period last year. This can be attributed to increased sales in Japan for residential use and for industrial applications such as mega-solar power generation plants. Operating income was 9.8 billion yen, an improvement of 22.2 billion yen over an operating loss of 12.3 billion yen in the same period last year. This is due to increased sales and the effects of a reduction in fixed costs.
We will continue our efforts to improve profitability by strengthening our solar solutions business and further strengthening business in the Japanese market.
Business Solutions
(Billions of Yen)
  FY2012 FY2013   FY2013
1H   1H   Full Year
1Q   2Q  
Change Change Change Forecast
(8/1)
Change
(Y on Y)
Sales 138.9 77.6 +20.0% 80.7 +8.8% 158.4 +14.0% 310.0 +4.4%
Operating Income
(vs. sales)
6.9
(5.0%)
7.5
(9.8%)
+223.8%

8.3
(10.3%)
+80.2%

15.9
(10.1%)
+128.5%

22.0
(7.1%)
-9.6%

Sales of Business Solutions were 158.4 billion yen, up 14.0% compared with the same period last year. Operating income was 15.9 billion yen, roughly 2.3 times the previous figure.
We will continue to expand this business by enhancing solutions and services centered on MFPs and displays that embody our strengths.
LCDs
(Billions of Yen)
  FY2012 FY2013   FY2013
1H   1H   Full Year
1Q   2Q  
Change Change Change Forecast
(8/1)
Change
(Y on Y)
Sales 368.0 193.8 +32.8% 284.7 +28.2% 478.5 +30.0% 970.0 +14.5%
Operating Income
(vs. sales)
-115.5
(-31.4%)
-9.5
(-4.9%)
-

18.1
(6.4%)
-

8.6
(1.8%)
-

30.0
(3.1%)
-

For the first half of fiscal 2012, this product group recorded a huge loss due to two factors: an inventory optimization that resulted from adjusting production levels for large-size LCDs, and a postponement of orders from major customers for small- and medium-size LCDs.
For the first half of fiscal 2013, sales of large-size LCDs were strong, and sales of small- and medium-size LCDs for products such as smartphones also grew steadily. As a result, sales of LCDs were 478.5 billion yen, up 30.0% compared with the same period last year. Operating income was 8.6 billion yen, an improvement of 124.2 billion yen over an operating loss of 115.5 billion yen in the same period last year.
In an effort to increase sales and minimize earnings volatility, we will keep a close eye on market trends and on demand by user group, and we will also strive to develop new customers by steadily promoting design-in activities.
Electronic Devices
(Billions of Yen)
  FY2012 FY2013   FY2013
1H   1H   Full Year
1Q   2Q  
Change Change Change Forecast
(8/1)
Change
(Y on Y)
Sales 126.4 61.2 +29.0% 86.5 +9.7% 147.8 +17.0% 320.0 +18.2%
Operating Income
(vs. sales)
-23.7
(-18.8%)
0.1
(0.2%)
-

5.1
(5.9%)
-

5.2
(3.5%)
-

12.0
(3.8%)
-

Sales of Electronic Devices were 147.8 billion yen, up 17.0% compared with the same period last year, due to strong sales of camera modules for mobile devices. Operating income was 5.2 billion yen, an improvement of 29.0 billion yen over an operating loss of 23.7 billion yen in the same period last year.
We will continue to strengthen sales of our uniquely featured devices, such as optical sensors, touchscreens, and high-performance camera modules for smartphones and tablet terminals.

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