Performance in the 58th fiscal year (Term ending December 2020)
Achieved a significant increase in revenue driven by electric/electronic components, despite the economic slowdown caused by the coronavirus pandemic
First, in the electric/electronic components business, the increased demand for PCs following the rise in remote work and expansion of 5G (the 5th-generation mobile communication system) have resulted in the growth in the sales of connectors that excel in high frequency and high speed transmission, which contributed to the achievement of increased profits. In addition, the demand for components for game consoles and routers showed steady growth owing to demand relating to people staying home.
Although sales of HDD-related parts stagnated due to supply chain turmoil, etc. caused by the novel coronavirus, demand for servers has remained relatively firm.
The automotive parts business saw a significant decrease owing to a decrease in automobile production particularly in the first half of the year. This was following measures taken by automobile manufacturers, such as shutting down their factories and suspending operations due to the spread of the novel coronavirus. In the second half of the year, demand for automotive sensors and connectors increased due to the rapid recovery of the automotive market, driven by China and North America, but this did not compensate for the slump in the first half of the year.
The equipment business saw low earnings, as semiconductor manufacturers held back on their capital investments and the expected orders were not acquired amid continuing uncertainty of the economy. As explained above, while sales of automotive parts and equipment businesses were weak due to the impact of the novel coronavirus, sales in the electric/electronic components business, particularly for connectors, saw healthy growth.
As a result, our sales were 54.5 billion yen, operating profit 2.9 billion yen, and ordinary profit 2.6 billion yen, and this fiscal year's net income attributable to shareholders was 1.1 billion yen. With these outcomes, we have continued the previous fiscal year's year-end dividend of 20 yen per share and annual dividend of 25 yen, including the interim dividend.
Priority strategies for the 59th fiscal year (Term ending December 2021)
Electric/Electronics Components Business
Going forward, we will see a further increase in speed and capacity of data transmission in all areas.
We will achieve further growth by putting our energy into development and sales of full shield connectors that achieve EMC (electromagnetic compatibility), and by deepening our high-frequency and high-speed transmission technologies. In addition to the development of products for high-performance mobile devices, we will also expand into the field of photoelectric conversion connectors used in servers, etc.
With regard to torque sensors, we are developing new customers with market expansion of human-assisting robots in mind, and we're starting to see results gradually.
Automotive Components Business
In 2021, automotive production, which experienced a slowdown due to the spread of the novel coronavirus, is expected to see a recovery, and the demand for automotive components such as automotive sensors and connectors, etc. is expected to grow. On the other hand, we have concerns about supply shortages for automotive semiconductors, and we will closely monitor future market trends with regard to such.
As for the direction of the entire automotive industry, progress concerning electrification and connected products, etc., represented as CASE, will further accelerate. We also take this situation as an opportunity, and will focus on acquiring orders for module components including new electronic control units and sensors, etc.
For semiconductor manufacturing-related equipment, we will strive to acquire orders by strengthening technology proposal-based sales and enhancing support services, as the demand for semiconductors is expected to increase. In particular, we would like to focus on expanding sales of power semiconductor related equipment, in which the market is expected to expand in the future. In addition, we aim and are preparing to sell new equipment with various element technologies our group owns to external customers.
The MEMS smell sensor, which "visualizes" smell, has finally entered the stage of commencing full-scale business. In 2021, we are planning to commence the sale of the personal model "noseStick" that allows easy measurement of smells nearby by connecting it to a smartphone. In addition, as a new initiative, we will promote activities with a view to evolve into a foundry business utilizing the MEMS technology.
As "experts in innovative product development & engineering solutions", we will provide new value to the global markets.
In August 2020, we changed our name from Daiichi Seiko Co., Ltd. to I-PEX Inc., and made a new start.
As "experts in innovative product development & engineering solutions", who provide value such as inspiration and surprise to global markets, we will work with customers who will open up the next generation of products at the world's sharpest tip, crossing industries and areas, to imagine a better future and to support product development that people love under speedy and flexible manufacturing systems.
By embodying the I-PEX brand and creating original value that goes beyond our clients' imagination, each and every one of us will continue to strive to be our clients' first partner.
We look forward to your continued support for the group.