Business Environment and Performance
A large amount of activity was observed in capital investments from semiconductor manufacturers as demand for high-performance semiconductors in smartphones and data centers grew in FY2017. Precision processing needs are also increasing in non-semiconductor applications, such as ceramic capacitors and glass components, and shipments to electrical component manufacturers are increasing every year.
With these increasing processing needs, as a result of the strong trend in equipment and consumable shipments, our sales and net profits achieved a new record for the fifth consecutive fiscal year. In regards to the return to shareholders, based on the dividend policy, the annual dividend per share will be JPY 389 (increased dividend)*, as well as a dividend from the surplus funds in addition to the performance-based dividend.
Despite the fact that a number of companies are revising the period in which they conduct capital investment, semiconductor manufacturers and electrical component manufacturers still have a strong willingness to invest for a wide range of applications, including data centers and automotives.
While we continue to proactively engage in research and development to respond to the increasing precision processing needs of customers, we will also strengthen our production system through activities such as the expansion of Kuwabata Plant in Hiroshima Works and the enhancement of the production of Chino Plant in Nagano Works, with a focus on increasing our mid-to-long term ability to respond to customers' needs.
In addition to continuing our focus on cultivating a high quality corporate culture, we will also continue to build an organization in which every employee can proactively think and take action while also continuing our evolution and improvement activities, with the goal of making a stronger company.
We humbly ask for the continued support of all our stakeholders in our future endeavors.
Annual dividend of JPY 389 (Breakdown - Interim: JPY 141, End of fiscal year: JPY 119, Additional dividend from surplus funds: JPY 129)
25% of the net income for the consolidated half-year is paid twice a year as an interim dividend and end-of-fiscal-year dividend. Except when there is a loss, if the year-end balance of cash and deposits after payment of dividends and income taxes is greater than projected funding requirements, one-third of that surplus will be added to dividends.
|Kazuma Sekiya, CEO & COO