Q: Please tell us about your financial results for the FY2016.

Yuki:
In the automotive field, which is the Group's main market, global sales activities were successful, and sales in the car electronics field exceeded 15 billion yen for the first time, reaching a record high.

This was due to steady sales of products for in-vehicle cameras and millimeter-wave radar due to the increasing popularity of ADAS (Advanced Driver Assistance Systems) resulting from advances in electrification and safe driving support technologies, and increased sales of the 3D Floating Board to Board connector "Z-Move™" for powertrain systems.

Net sales decreased 1.7% year-on-year due to the impact of the yen's appreciation in the foreign exchange market, a decrease in demand for vehicles equipped with our connectors in China and South Korea in the first half, and a decrease in production by our customers due to the Kumamoto earthquake. The result was 37,547 million yen.
In terms of profit and loss, cost reductions by further automating the manufacturing process and streamlining the in-house production of parts contributed to operating income of 6,661 million yen, up 1.4% year on year, and ordinary income of 2.3% year on year. Net income increased by 20.5% year on year to 4,875 million yen.

Q: Please tell us about your newly formulated long-term vision and medium-term management plan.

Yuki:
Aiming to become a truly global company, we have adopted the management policy of “customer first in the industry” as a leap to the next stage. We aim to enter the top 10 within the parts industry (including overseas). The priority measures for achieving the long-term vision are as follows.

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Based on the above long-term vision, we will work on the following priority measures in the medium-term management plan formulated this time.

1. Toward achieving 50 billion yen in sales

1. Expanding business in the growing automotive markets ​ ​

• ・Expanding sales in the safety field including millimeter-wave radars and car-mounted cameras
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• ・Increasing sales in the powertrain field

2. Increasing our shares in existing markets

• ・Order Increase from key customers

3. Expansion of overseas sales

• ・Strengthen of the sales power in the USA and EU
• ・Increasing the ratio of local customers in the Chinese market

4. Expansion in key fields of the industrial market

• ・Strengthening support for indirect sales in the USA and EU
• ・Acquiring orders for FA related equipment
• ・Promoting business with emerging ICT customers

5. Sales increase in the industrial market by collaborating with other companies 

2. Targeting net sales of 100 billion yen

1. Through technological development, new product development, and elemental technology development
Creating products unique to IRISO and best in the world for the growing fields

• ・Strengthening of marketing activity
•        -Automotive market (safety field, powertrain field, etc.)
•        -Non-vehicle market (robot, communication equipment field)

2. Expanding overseas sales

• ・Increase the sales ratio of non-Japanese customers to 50%+
• ・Setting up the Key Account Management system

3. Establishment of a new production site

• Nantong Plant
• ・Mexico factory

4. TSCM innovation to strengthen the management foundation 

• ・Building a Global PSI control system
• ・Enhancement of cost competitiveness
• ・Strengthening manufacturing technology
• ・Enhancement of Productivity

5.Strengthening the management foundation

• ・Global human resources development
• ・Compliance with the Corporate Governance Code
• ・Business operation based on the basics and ethics

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Yuki:
Based on the concept of supplying the market with high-value-added products that can express "IRISO-ness", we will focus on the three pillars of the automotive market, which is becoming more electrified and more safety and environmentally conscious, as well as the industrial market and consumer-related market, which are non-automotive markets, and promote forward-looking development of element technologies, aggressive product development and product supply deployment with the customer first, expansion of in-house production, and development of new bases to handle increased production.
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We plan to invest 7,500 million yen in capital investment in the FY2017, in line with our medium-term management plan.

1. Investment in new product development

• Marketing and technology departments work together to speedily develop new products that anticipate needs in the growing market

2. Strengthen cost competitiveness

• Aggressive investment in streamlining centered on Shanghai Plant
• Promote increased in-house production ratio of key processes (molding, pressing, plating)

3. Response to increased production

■ Expansion of sites to expand sales (Establishment of a new factory in Nantong, China)

Q: Please tell us about your outlook for the future.

Yuki:
In the FY2017, in terms of sales, we anticipate an increase in the supply of products for ADAS (advanced driver assistance systems) for safety, such as collision prevention, which are being increasingly installed in the automotive market. We will also focus on the powertrain field and the industrial market to develop new customers.
Sales are expected to grow, mainly at sales bases in Europe and the United States, and are expected to reach ¥40.0 billion (up 6.5% year-on-year).
Next, in terms of profit and loss, the following figures are planned, since the recovery of fixed costs is progressing due to the increase in material volume, and the cost ratio is expected to improve due to reaping the benefits of cost reduction through automation and rationalization, as well as the expansion of in-house production of key processes and improvement of productivity, which are being promoted.

Consolidated operating profit of 7.2 billion yen (+8.1% YoY),

Consolidated ordinary profit of 7.2 billion yen (up 6.7% year on year),

Profit attributable to owners of parent of ¥5.2 billion (+6.7% YoY)

We anticipate (*Based on exchange rates of 110 yen/dollar and 120 yen/euro)

Q: Lastly, 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 performance, the business environment, and the medium- to long-term strengthening of its financial position. increase.
Our basic policy on retained earnings is to use them effectively to enhance our 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.
For the FY2016, we have decided to pay a total dividend of 80 yen per share, comprising a commemorative dividend of 20 yen for the interim market change and the 50th anniversary of our founding, and a year-end dividend of 60 yen. Going forward, we will aim for a dividend payout ratio of 30%.
We would like to ask our shareholders for their continued support.