Investor Relations

Overview of Business Performance

Overview of Business PerformancePrinting Tips

FY ended March 31, 2014

In the consolidated fiscal year under review (April 1, 2013 to March 31, 2014), with regard to the economic climate, Japan experienced a mild economic recovery on the back of improved corporate earnings, and the North American economy, too, tended to pick up moderately thanks to strong individual consumption. In Europe, the economic slump continued in Southern Europe but signs of recovery were observed in the euro zone as a whole. Meanwhile, economic expansion slowed down in emerging markets including China.

Amid these circumstances, looking at the sales in the Electronic Musical Instruments Business by product, sales of stage pianos and professional video equipment were robust, increasing year on year. Also, as initiatives in new fields, new products were introduced into the dance market and made a good start. Meanwhile, sales of drums, pianos, and guitar effects, which are mainstay products, fell year on year due to the impact of the sharp drop in sales of existing products during the first half of the fiscal year, even though a recovery trend was observed in some areas from the second half of the fiscal year.

By region, sales of some products increased before the consumption tax hike in Japan but declined year on year. In North America and Europe too, although signs of recovery were observed in some areas, sales decreased year on year. In other regions, although sales decreased in South America due to an economic recession, sales in Australia increased slightly year on year, and sales in Asia increased year on year thanks to a strong performance.

As a result, despite virtually declining year on year, net sales increased by 8.4% year on year to ¥43,258 million due to the impact of the depreciation of the yen. Operating income amounted to ¥1,370 million (from an operating loss of ¥2,094 million for the previous consolidated fiscal year) due to personnel cutbacks implemented at the end of the previous fiscal year as part of business structural reforms, as well as the impact of the depreciation of the yen, and other factors.

Electronic Musical Instruments Business

In the Computer Peripherals Business, by product, sales of printers and supplies, mainstay products, rose year on year on the strength of robust sales primarily of new products of large inkjet printers introduced in the previous and current fiscal years. Also, in 3D products, sales increased year on year thanks to strong sales of milling machines for dental applications.

By region, sales were robust in Japan primarily for new printer products, and sales grew significantly year on year in North America and Europe due to the impact of the depreciation of the yen, in addition to growth in sales of new printer products and milling machines for dental applications. In Asia too, large inkjet printers that are in demand among local sign manufacturers in China expanded sales, recording a year-on-year increase. In other regions, sales were steady in such regions as Australia and South America.

As a result, combined with the impact of the depreciation of the yen, net sales increased by 30.6% year on year to ¥42,349 million, and operating income rose by 291.0% year on year to ¥6,427 million, as a result of factors including increase in profit and an improvement of the cost-to-sales ratio, despite an increase in selling, general and administrative expenses.

Computer Peripherals Business

As a result of the factors described above, overall net sales increased by 18.4% year on year to ¥85,607 million, operating income was ¥7,797 million (from an operating loss of ¥451 million for the previous consolidated fiscal year), and ordinary income was ¥7,762 million (from an ordinary loss of ¥754 million for the previous consolidated fiscal year). Ultimately, the Company posted a net income of ¥470 million (from a net loss of ¥4,066 million for the previous consolidated fiscal year) due to such factors as extraordinary loss resulting from the dissolution and liquidation of an overseas production subsidiary, tax expenses and transfer of income to minority shareholders.

The average exchange rates for the current consolidated fiscal year (*) were 98 yen to the US dollar (from 80 yen for the same period of the previous fiscal year), and 130 yen to the euro (from 103 yen for the same period of the previous fiscal year).

(*) Average for January to December 2013, because the fiscal year of the Company’s foreign consolidated subsidiaries is from January to December.

Consolidated

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