Thank you very much for attending, despite the busy schedule, for TDK's performance briefing of the third quarter of fiscal year 2021. From my side, I would like to talk about the consolidated results for the third quarter. First of all, these are the key points of our performance. The third wave of COVID-19 has been hitting countries around the world, and the impact continues on our society. Against this backdrop, in areas where social and economic and production activities have already recovered, the recovery trend of electronics demand has become clearer from the second quarter and going into the third quarter. In the ICT market, DX-related demand, such as the mobile devices, continued to be robust, as so in the automotive market as electrification accelerated in xEV and ADAS. Expansion in overall demand has been seen. Industrial equipment market grew as demand for renewable energy is increasing. The recovery of demand in energy transformation, EX, has become clear. Under this environment for demand, sales increased 11.3% against the previous year, and operating income went up by 11.6% against the previous year. This is a record high level for a quarter, both for sales and operating income. Orders for the auto market recovered sharply from the second quarter, and this momentum continued into the third quarter. Sales of passive components and sensors increased. Demand for DX-related products for the ICT market was robust, leading to an increased sale of rechargeable batteries and passive components, contributing largely to the overall earnings. Recent orders for DX/EX-related products continue to be steady. Based on the favorable results up to the third quarter, we have decided to make an upward revision of the full-year outlook, again, against the previous quarter. We should not relax because demand has recovered. At the beginning of the year, we had compiled additional earnings recovery measures, such as rationalization and enhancing efficiency, to be prepared against the spread of COVID-19. We will continue to implement these measures. At the same time, based on the demand trend of DX and EX, we'll promote asset efficiency measures, including business site restructuring, aiming to lead the acceleration of improvement of our profitability. Next, I would like to talk about the outline of our consolidated results. The yen has been stronger against the dollar. This has impacted our sales negatively by JPY 7 billion, and operating income has declined by JPY 4.3 billion due to this impact. Including this, sales was JPY 395.7 billion. That is a JPY 40.1 billion increase year-over-year, 11.3% increase of sales. Operating income was JPY 45.1 billion, year-over-year plus JPY 4.7 billion, 11.6% of increase. Income before income tax was JPY 46.2 billion. Net income was JPY 30.9 billion. EPS was JPY 244.22. In terms of Forex sensitivity, it is in change. Operating income level against the yen, against the dollar with JPY 1 fluctuation. This was JPY 1.2 billion for the full year. The annual impact will be JPY 200 million for the year. Next, going to the third quarter by segment status. Passive Component sales was JPY 109.5 billion. Year-over-year, this is a 11.4% increase. Operating income was JPY 13.4 billion, 26.4% of increase. Operating income margin was 12.2%. It has gone up. The demand for the automotive market has recovered sharply for the second quarter. In the ICT market, mainly in the 5G-related area, the demand has been very robust. Industrial equipment market demand, because the demand for renewable energy has increased. In all the businesses, we saw increased sales and profit. For the ceramic capacitors, sales to 5G base stations has declined, but on the other hand, sales to the automotive market and the distributors has increased. For aluminum electrolytic capacitors and film capacitors, on top of the automotive market, for the industrial equipment, for the renewable energy, sales has increased. For the inductive device, the demand for the automotive market has increased. On top of that, the ICT market sales has increased due to the startup of the new smartphone products. In high-frequency devices, the 5G-related demand was strong. For the piezoelectric material products and circuit protection components, sales is increasing in auto, ICT, and industrial equipment overall. Going to the Sensor Application business, sales was JPY 23 billion. Against the previous year, it has been an increase of 13.3%. Operating loss has improved from the previous year. As for the Passive Components segment, because the demand in the automotive market has recovered and sales increased substantially in the ICT market, mainly for smartphones, all the three businesses have seen an increase of sales and profit. Sales of temperature/pressure sensors increased towards the auto and home appliances, recovering to a level so that it will contribute to our earnings. As for Hall sensors, the supply chain for the automotive market is long. There was a delay in order recovery. However, sales started to recover at last. Furthermore, the TMR sensor with the magnetic sensors, the sales increased sharply as the peak for new smartphones has arrived. Sales and operating profit has increased sharply. For MEMS sensor, the expansion of the customer base for the motion sensors increased, sales for that ICT market has increased. At the same time, expense rationalized through the review of the resources, this led to a decline in loss from the previous year. Next, going to the Magnetic Application business. Sales was JPY 55.9 billion year-over-year. This was a decline of 3.5%. Operating income was JPY 4.2 billion, a decline of 19.2% year-over-year. For HDD heads, due to the demand increase of PCs, the HDD assembly sales increased. On the other hand, the total demand of HDD has gone down, and the shipment volume of HDD heads has declined in line with this. Overall, we saw a decline in sales and profit for the head business. On the other hand, for the HDD suspensions, the nearline HDD for the data centers for the major clients has been robust. The nearline HDDs, the shipment volume has increased. The suspension business overall saw an increase in sales and profit. For magnets, the demand recovered for the automotive market, and the sales towards the industrial equipment, such as renewable energy, has increased. We saw an increase in sales, and the loss has improved against the previous year. Going to the Energy Application products. Sales was JPY 195.4 billion. Operating income was JPY 42.8 billion. Year-over-year, we saw a sales increase of 21.2%, profit increased by 5.7%. Sales and profit increased for the rechargeable batteries due to the increase of smartphone units, and the smartphone sales has increased slightly against the previous year. For PCs and tablets, continued at a high level. Many sales for small-sized products such as wireless earphones has been robust. Sales of power cell products for the home energy storage systems and electric motorcycles has continued to grow from the first quarter and continued into this quarter. In the power supply business, demand recovered in the industrial equipment business, such as in semiconductor production equipment, and has seen an increase in both sales and profit. Next, let me talk about the quarter results of sales and operating income by segment from Q2 to Q3, quarter-on-quarter basis. I start with the Passive Components segment. The sales was up by JPY 10.1 billion or 10.2% from Q2. Operating income was up by JPY 13.4 billion or 38.1%. The sales, first of all, the automotive market as well as the industrial equipment markets increased. Also in ICT markets, due to the peak season of the smartphone market, it's also increased. On the other hand, the sales to the 5G base station have declined and have been almost flat from Q2. As a result, high frequency component products was almost flat, but on the other hand, in other business areas which have more business on the automotive markets or industrial equipment markets, have recognized the increase in both sales and income. Next, let me talk about Sensor Application Products. Sales was up by JPY 3.2 billion or 16.2%, operating loss reduced by JPY 1 billion. With the recovery of the demand in automotive markets, temperature and pressure sensor as well as Hall sensor increased the sales, also TMR sensor have substantially increased the sales due to the peak season of smartphone, as for the MEMS sensor, it also has been favorable for the smartphone in China or the drone applications. We could recognize an increase in the sales in all of the business areas. As for the operating income, temperature and pressure sensor and magnetic sensor can be profitable, MEMS sensor can improve its income also with our efforts to making that development efficient, we could reduce that margin of loss from Q2. Next, let me talk about Magnetic Application Products segment. Sales was up by JPY 5.5 billion, or 10.9%. Operating income is up by JPY 2.8 billion. When it comes to sales, from the HDD head, the sales volumes have declined by 2% from Q2. Still, we have that increased average selling price, or that with reduced demand for the PC and 3.5-inch HDD assembly sales have increased. Now, as a HDD head business as a whole, we have increase in the sales and also the HDD suspensions was favorable, and the sales to the nearline HDD for data center substantially, and also the application product for the smartphone also made the contributions to push up the sales further. Also, for the magnets and for the automotives or industrial equipment market have recovered its demand so that it contributes to that further increase of the sales. When it comes to operating income, HDD head suspensions have recognized increase in the sales. For the magnets, it could reduce the margin of loss due to that increase in the sales. Now, just for information, and we recognize the gains on the sales of the healthcare & precision process component business. It was a non-core business for us. We recognize the gain of this business sales in Q3. Next, let me talk about the Energy Application Products segment. Sales was JPY 195.4 billion. That means that 2.6% and the decrease in QoQ basis. Operating income was JPY 42.8 billion, 11.4% decrease from the previous quarter. For the secondary batteries and our business and part of our business for the smartphone have carried forward from Q3 to Q4 due to that inventory adjustment by our customer. That's why t he sales was substantially lower than we expected, the sales have dropped from Q2. Also for that power supplies for the summer supply for industrial use will slightly decrease. When it comes to operating income and the power supply for industrial use and reduces revenues, but it will secure the profits. For the secondary batteries, it will have recognized and decrease in both in the sales and also for that profit. Now we have need to enhance that in our R&D development so that get power and the e-bike or that kind of applications. That's why that further pushed down the profits. Next, let me talk about a breakdown of the operating income of the JPY 4.7 billion. Secondary batteries or the Passive Components business pushed up its sales. That have made a positive impact of JPY 18.5 billion due to these sales. On the other hand, sales price reductions have negative impact of JPY 7.3 billion. On the other hand, now the cost reduction by rationalizations have the positive effect of JPY 5 billion as well as another JPY 500 million. Also, for the benefit from the restructuring from that impaired loss last year, and that will offset these negative impacts of the sales price reductions. InvenSense M&A-related expenses reduced by JPY 400 million. Also, when it comes to SG&A and for the expansion of the business of secondary batteries, and we need to spend for the power cell developments and the other businesses, and the end of the filter fee. That all amounts to that JPY 8.1 billion of increase of SG&A. That were the negative impacts. Including that JPY 4.3 billion of negative impacts of foreign exchange fluctuations, and all in all, that we have JPY 4.7 billion of increase in operating income. Next, let me talk about the overview of the consolidated business results up to that Q3. Sales is JPY 1.086 trillion, 2.3% increase year-on-year. Operating income is JPY 107.5 billion and JPY 1.7 billion less than last year, and 1.6%. Income before tax was JPY 109.4 billion. Net income is JPY 73.1 billion, the -1.7% year-on-year. Now, when it comes to sales, now we have that record- high sales of the cumulative for the nine months of the fiscal year. Last of all, let me talk about that full year consolidated business forecast. Based on our business performance and to the Q3, and also as well as taking into considerations the orders in Q4, we revised our forecast from the one we announced last time in October. Full year sales, it's JPY 1.452 trillion, and the income before the tax is JPY 116 billion. This is the upward revisions, also JPY 110 billion of the operating income and JPY 76 billion of net income, it stay the same from the previous forecast. When it comes to sales, we take into considerations about the demand in the automotive and the industrial equipment markets, based on the assumption that the momentum will continue into Q4. That's why we upwardly revised the forecast of the sales. When it comes to the income before tax, we increased that increase of non-operating profits. The reason why we say that operating income stayed the same from the previous forecast is that now under the COVID-19 pandemic, now all the structure under the demand of the DX and EX have substantially changed. Based on these changes, and also we know that to enhance the competitiveness, we need to promote that structural reforms, including optimization of assets or the enhancement of competitiveness. That's why. Now, we think that we need to spend this JPY 12 billion for the one-time cost for this restructuring. When it comes to the year-end dividends, the CapEx, depreciation, as well as R&D, and there's not any change from the previous forecast. That's all my presentation. Thank you very much. Thank you.
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