Mr. Hiroyuki Uemura
Executive Vice President
Passive Components Business
For the passive components business, in Q1 and Q2 we have witnessed an increase in sales and profit. In the previous period we saw red figures, but as you see here in this fiscal year we have been consolidating sites, reviewing production outsourcing, investing idle assets, recognizing losses on facilities centering around capacities, have been executing restructuring efforts and reforms, and we see this as a result.
In order to boost profitability, the following efforts will be made. For ceramic capacitors, we will continue to bolster our products, particularly for the auto market as well as application products. For inductive devices, using thin film, wire-wound coil, and multi-layered products, we would like to provide the best possible solution to customers. For high-frequency components, discrete products in terms of sales are expanding; modular products on the other hand have not been as fruitful but we would like to continue design-in activities in order to see results; and for IC manufacturers, we would like to step up reference activities. Regarding piezoelectric material products, centering around VCM and OIS, orders are strong for use in smartphones in China, both Q1 and Q2. But at this point in time, we see somewhat of an adjustment so we would like to maintain a strong market position and secure profitability. Regarding productivity improvements, we would like to optimize ceramic capacitor production lines, accelerating this effort. In order to improve productivity further following site consolidation, we will launch an integrated production line from materials to products. The other point is to improve production processes for high-frequency components, dispatching head business process engineers. That is my explanation, thank you.