Below is the summary announced on July 28, 2022 of financial results for 1Q FY2022 Three months ended June 30, 2022.

  The fiscal year ending March 31, 2023, will be an important year for working toward the targets of the Reiwa Prosperity 2023, the five-year medium-term management plan slated to conclude with the fiscal year ending March 31, 2024. In the fiscal year ended March 31, 2022, an operating margin of 8.2% was achieved. In pursuit of greater improvements with this regard, the Company is moving forward with the promotion of growth strategies centered on expanding its power electronics and power semiconductor businesses, the further improvement of profitability through the strengthening of global manufacturing capabilities, and the ongoing reinforcement of operating foundations focused on environmental, social, and governance (ESG) factors, with a particular focus on human resources in regard to social factors.

  In the three-month period ended June 30, 2022, high levels of capital investment by manufacturers and data center business operators were seen amid growing needs related to vehicle electrification, energy saving, and digital infrastructure. These needs were sparked by the global movement toward decarbonization and the accelerated digitalization trend. However, the outlook remains opaque due to the increased impacts on global supply chains of factors such as high material prices and material shortages due to the lockdowns in China instituted in response to the COVID-19 pandemic and the prolonged situation in Ukraine.

  In this environment, production capacity increases for power semiconductors were carried out in response to robust demand while ongoing steps were taken to optimize supply chains, including forming relationships with multiple suppliers and altering designs to use alternative parts in order to address the difficulties in procuring certain parts.

  Increases were seen in the sales of the Power Electronics Energy, Semiconductor, and Power Generation segments, resulting in consolidated net sales in the threemonth period ended June 30, 2022, rising ¥14.0 billion year on year, to ¥203.9 billion.

  Although high material prices impacted income, overall income was buoyed by sales volume growth coupled with the benefits of increases to product selling prices and cost reduction activities centered on augmentations to factories. As a result, consolidated operating income rose ¥4.6 billion year on year, to ¥9.9 billion; ordinary income was up ¥6.4 billion, to ¥12.3 billion; and net income attributable to owners of parent increased ¥5.0 billion, to ¥9.9 billion. New record highs were posted for net sales, operating income, and ordinary income.

Net sales: ¥51.3 billion (up 15% year on year)
Operating income: ¥3.9 billion (up ¥2.9 billion year on year)

  In the Power Electronics Energy segment, net sales and operating income were up year on year primarily as a result of higher demand in the power supply and facility systems business and the ED&C components business.

Net sales: ¥65.2 billion (unchanged year on year)
Operating loss: ¥1.8 billion (compared with operating income of ¥0.3 billion in the previous equivalent period)

  In the Power Electronics Industry segment, net sales were relatively unchanged year on year as the benefits of large-scale orders in the IT solutions business counteracted the declines in sales in the automation systems business and the social solutions business. Meanwhile, operating results were down year on year due to high material prices, reductions in production following difficulties in procuring parts, and differences in profitability between projects.

• In the automation systems business, net sales and operating results were down year on year due to the impacts of the lockdowns instituted in China in response to the COVID-19 pandemic, the high prices for materials, and the effects on production from difficulties in procuring parts felt centered on low-voltage inverters and factory automation components.
• In the social solutions business, net sales and operating results were down year on year, due to a decrease in ship-related orders.
• In the equipment construction business, net sales and operating results improved year on year due to higher demand for electrical equipment construction.
• In the IT solutions business, net sales were up year on year due to large-scale private-sector projects while operating results were unchanged year on year because of differences in profitability between projects.

Net sales: ¥46.2 billion (up 4% year on year)
Operating income: ¥7.1 billion (up ¥1.5 billion year on year)

  In the semiconductor business, net sales increased year on year, despite the repercussions of withdrawing from magnetic disk operations, due to growth in demand for power semiconductors for electrified vehicles (xEVs) and for industrial applications. As a result, high operating ratios were able to be maintained leading to increases in sales volumes and subsequently improvements in operating results, regardless of the rise in expenses for bolstering power semiconductor production capacity.

Net sales: ¥16.8 billion (up 41% year on year)
Operating income: ¥0.1 billion (compared with operating loss of ¥0.7 billion in the previous equivalent period)

• In the power generation business, net sales and operating results were up year on year due to the benefits of large-scale renewable energy projects.

Net sales: ¥21.7 billion (down 2% year on year)
Operating loss: ¥1.6 billion (up ¥1.4 billion year on year)

• In the vending machine business, net sales and operating results improved year on year because of growth in demand in Japan and the benefits of cost reduction activities.
• In the store distribution business, net sales and operating results were down year on year due to the absence of large-scale orders for automatic change dispensers recorded in the previous equivalent period.

Net sales: ¥14.3 billion (up 16% year on year)
Operating income: ¥0.7 billion (up ¥0.3 billion year on year)

• Note:

  • Effective April 1, 2022, the businesses included in the Power Electronics Energy segment and the Power Electronics Industry segment were reorganized in conjunction with changes to organizational structures.
    Figures for the three-month period ended June 30, 2021, have been restated to reflect this change.