Overview of the latest financial information

Overview of business results of the Third Quarter of the Fiscal Year ending December 31, 2021

During the first three quarters of the current consolidated cumulative period, accelerated economic recovery was seen in developed countries and in China, where more people are getting vaccinated for COVID-19, but there have been growing concerns about a slowdown in the recovery situation due to the prevalence of highly contagious variants such as the delta variant.

In Japan, the capital investment and production activities, particularly in the manufacturing industry, are recovering, and exports are on an uptrend, but the future remains uncertain due to a stagnation in the private consumption-related industries.

In the outlined economic environment, the Group continued to have strong sales in connectors for laptop computers, and our Automotive Components Business and Equipment Business also generally remained strong.

For our Electrical and Electronic Components Business, consumer connectors continued to be strong in the previous quarter. On a product-by-product basis, Micro Coaxial connectors and Board-to-Board connectors, etc., grew against the background of a strong demand for personal computers. Micro Radio Frequency (RF) Coaxial connectors continued to be strong, mainly for routers that support high-speed communication, supported by people staying at home associated with the spread of COVID-19. With regard to HDD-related components, large-capacity HDD components continued to show growth as the size of the data center market expands due to the increasing use of cloud services, etc.

In Automotive Components Business, although partly affected by automobile manufacturers reducing production due to a shortage of semiconductors and COVID-19 spreading once again in Southeast Asia, due to the strong demand for automobiles and the progress of LED and high function headlights, a high volume of orders for automobile sensors and connectors have continued to be received.

In Equipment Business, semiconductor sealing devices and molds continued to perform strongly as semiconductor manufacturers continue to actively invest in facilities, such as placing forward orders for manufacturing equipment, in response to the continued global shortage of semiconductors. In addition, automatic taping machines used for manufacturing thin semiconductors also remained strong.

As a result, sales of the third quarter of the current consolidated fiscal year increased 29.3 % to 50,081 million yen, compared with the prior year, also our operating income increased 274.8% to 5,701 million yen, ordinary income increased 293.3% to 6,418 million yen, and net income attributable to owners of parent was increased 456.9 % to 4,955 million yen.