AR2017

16/90

A Message from the CFOMANAGEMENT STRATEGYThrough active dialogue with shareholders and investors, we will continue to improve corporate value. Review of performance in the scal year ended March 31, 2017 and performance outlook for the scal year ending March 31, 2018Business conditions were severe in the scal year ended March 31, 2017, with a strong yen and a slowdown in China and other Asian emerging countries. Prots were also squeezed by weak performances at some overseas sub-sidiaries and one-off costs arising from three acquisitions in Europe and North America. As a result, consolidated net sales declined 2.2% year-on-year, to ¥206.0 billion, and operating income declined 6.2%, to ¥16.6 billion. Prot attributable to owners of parent increased 5.1% year-on-year, to ¥11.5 billion, as there were gains on sales of invest-ment securities and a boost from tax effect accounting.The three acquisitions involved goodwill of approxi-mately ¥33.5 billion, which is to be amortized 10 years. Prots will be heavily impacted during this period and we are therefore seeking early realization of synergies in sales channels and technology.Major negative inuences in the scal year ended March 31, 2017 should be eliminated in the scal year ending March 31, 2018. The one-off, three-company acquisition costs and the losses at the Chinese subsidiary currently undergoing liquidation will not recur, and losses at PT. LINTEC INDONESIA should narrow following the resolu-tion of its labor issues. In addition, the three acquisitions will make a 12-month contribution to consolidated busi-ness results and our business related to semiconductors and electronic components is expected to trend strongly. We therefore project year-on-year growth of 21.4%, to ¥250.0 billion, for net sales; growth of 20.5%, to ¥20.0 bil-lion, for operating income; and growth of 17.9%, to ¥13.5 billion, for prot attributable to owners of parent.FY 2017 Business Results and FY 2018 Forecasts (year-on-year)FY2017FY2018 ForecastsNet Sales¥206.0 billion (-2.2%)¥250.0 billion (+21.4%)Operating Income¥16.6 billion (-6.2%)¥20.0 billion (+20.5%)Prot Attributable to Owners of Parent¥11.5 billion (+5.1%)¥13.5 billion (+17.9%)Hitoshi AsaiDirectorVice President Executive Ofcer and CFO(Fiscal year ended / ending March 31)14LINTEC ANNUAL REPORT 2017