Q: Please summarize the business results for the FY2014 by market.

Yuki:
Based on the idea of supplying high-value-added products that are “IRISO-ness” to the most suitable markets, We are expanding our business globally to provide high-quality connector products for the industrial market, where demands for improved accuracy are increasing.

The automotive market is divided into car AVN1 and car electronics related to electrical equipment.In this fiscal year, sales of Board to Board connectors and FPC connectors for car navigation systems, car audio systems, etc. in car AVN and for safety systems such as clusters and millimeter wave radars in car electronics were strong. As a result, car AVN sales increased 10.2% year on year to 18,204 million yen, accounting for 48.9% of total sales, and car electronics sales increased 21.4% year on year, to 12,352 million yen. million yen, and the composition ratio was 33.2%. In the automotive market as a whole, sales increased 14.5% year on year to 30,556 million yen, accounting for 82.1% of the total. By region, overseas sales are trending favorably.

On the other hand, in the consumer market, sales increased 5.1% year on year to 5,470 million yen, accounting for 14.7% of the total, due to favorable sales of newly released connectors for game consoles in addition to favorable sales of printers. In the industrial market, sales related to industrial equipment remained strong, and sales increased 26.5% year on year to 1,188 million yen, accounting for 3.2% of total sales.

​

​

​

​

Q: How do you analyze the expansion of business performance for the current fiscal year?

Yuki:
In this fiscal year, ssales of products for automotive cameras and millimeter-wave radars grew significantly along with the acceleration of installation of ADAS (Advanced Driver Assistance Systems) due to the progress of electrification and safe driving support technologies in the automotive field, and the foreign exchange effect of a weaker yen also boosted our performance.
In the consumer market and the industrial market, where sales for game consoles were strong, sales increased steadily and contributed to our business performance.
In terms of profit and loss, rationalization measures such as material cost reductions were successful, and the operating profit margin improved due to cost reduction effects.

Q: Please tell us about future growth investments.

Yuki:
In order to meet the demands of our customers in terms of both precision and cost, as well as improving contact technology linked to cutting-edge electronics technology, our company is required to continuously enhance, rationalize, and save labor in production equipment.
In this fiscal year, capital investment amounted to 4,371 million yen as a result of expanding the Ibaraki Plant and the Philippines Plant and making thorough rationalization investments at the Shanghai Plant.

In the next fiscal year, we plan to spend 4,360 million yen in order to shift from the B to C domain to the B to B domain in line with the development trends of Japanese Tier 1*2 manufacturers, who are our main customers.

*2 Tier 1 refers to companies that supply parts directly to automakers.

Q: Please tell us about the challenges for further growth.

Yuki:
In the medium-term management plan that we are currently promoting, the most important issue for growth is to "promote the globalization of our business under the theme of 'creating customer value'."
Aggressive sales promotion activities in each overseas market also contributed to the performance of the current term. We will aggressively develop sales expansion activities for overseas customers by enhancing promotion programs and other measures to ensure growth as a truly global company.

At the same time, we will strive to further expand our business by accelerating the development of products and technologies that meet the needs of the rapidly evolving automotive market, aiming to provide valuable connector products that are unique to IRISO, and by promoting basic measures such as strengthening our production system, focusing on the industrial market, cultivating new customers, and developing new fields.

Q: Please tell us about the business environment and performance outlook for the FY2015.

Yuki:
Looking ahead to the next fiscal year, the world economy is expected to recover, centered on the United States, although uncertainties remain in China and other emerging economies.
Aiming to become a “truly global company that creates customer value,” our group will actively make proposals to Tier 1 manufacturers in the automotive market, where electronic equipment, safety, and environmental initiatives are progressing, and deepen and grow the consumer market. We will work to establish a sales expansion system in the industrial market, which has a large margin, and accelerate the development of products and technologies that respond to changes in the market.

Assuming exchange rates of 110 yen/US dollar and 125 yen/euro for the full year, consolidated net sales of 39.0 billion yen (up 4.8% year-on-year) and operating income of 7.2 billion yen (4.8% increase year-on-year) are projected for the full year. 8% increase), ordinary income of 7.2 billion yen (4.2% increase), and net income of 5.2 billion yen (2.6% increase).

Q: Finally, please give a message to shareholders.

Yuki:
The Company recognizes the stable return of profits to shareholders as an important management policy, and its basic policy is to pay dividends in consideration of business performance, the business environment, and the strengthening of its financial structure over the medium to long term. increase. Our basic policy on retained earnings is to use them effectively to enhance cost competitiveness, strengthen our technological development and manufacturing systems to meet market needs, and further develop our global strategy in order to respond to anticipated changes in the business environment.

Based on the above policy, we set the year-end dividend at 60 yen per share, which is 20 yen higher than the previous fiscal year, at the end of the current fiscal year, when we achieved record-high earnings. For the next fiscal year, we plan to pay an annual dividend of 60 yen per share.