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<Consolidated Financial Results for the First Quarter Ended June 30, 2013>
Financial Material

Results for the Three Months Ended June 30, 2013
Financial Results
(Billions of Yen)
  FY2012 FY2013
1Q 1Q  
Change Difference
Net Sales 458.6 607.9 +32.6% +149.3
Operating Income
(vs. sales)
- +97.1
Net Income
(vs. sales)
- +120.4
Consolidated financial results for the first quarter recorded net sales of 607.9 billion yen, up 32.6% compared to the same period last year, with an approx. 150 billion yen increase. In addition, there was a considerable improvement in profit, resulting in operating income of 3.0 billion yen and net loss of 17.9 billion yen.

In our previous financial results announcement on May 14, 2013, we stated a financial results forecast for fiscal 2013 with estimated 1Q sales of approx. 550 billion yen and operating loss of approx. 10 billion yen. The actual results of 1Q fiscal 2013 exceeded the amount of our previous forecast, accomplishing positive results for operating income for three consecutive quarters from 3Q fiscal 2012.
Sales by Product Group
(Billions of Yen)
*Sales of each product group include internal sales between segments (Product Business and Device Business)
  FY2012 FY2013
1Q 1Q  
Change Difference
  Digital Information Equipment 134.1 158.9 +18.5% +24.8
Health and Environmental Equipment 78.2 82.3 +5.2% +4.0
Solar Cells 41.9 84.3 +101.1% +42.3
Business Solutions 64.7 77.6 +20.0% +12.9
Product Business 319.0 403.3 +26.4% +84.2
  LCDs 145.9 193.8 +32.8% +47.8
Electronic Devices 47.4 61.2 +29.0% +13.7
Device Business 193.4 255.0 +31.9% +61.6
Sub Total 512.4 658.3 +28.5% +145.8
Adjustments -53.8 -50.4 - +3.4
Total 458.6 607.9 +32.6% +149.3
There was a considerable improvement in Digital Information Equipment, Solar Cells, and LCDs compared to 1Q fiscal 2012. The increase of sales in all product groups resulted in a 149.3 billion yen total sales increase in 1Q fiscal 2013.
Operating Income by Product Group
(Billions of Yen)
*The percentage figures noted in brackets show the income ratio
  FY2012 FY2013
1Q 1Q  
  Digital Information Equipment -20.2 (-15.1%) -1.3 (-0.9%) +18.8
Health and Environmental Equipment 8.2 (10.5%) 6.4 (7.8%) -1.8
Solar Cells -6.9 (-16.5%) 6.8 (8.1%) +13.7
Business Solutions 2.3 (3.6%) 7.5 (9.8%) +5.2
Product Business -16.5 (-5.2%) 19.4 (4.8%) +36.0
  LCDs -63.4 (-43.5%) -9.5 (-4.9%) +53.9
Electronic Devices -5.0 (-10.6%) 0.1 (0.2%) +5.1
Device Business -68.5 (-35.4%) -9.3 (-3.7%) +59.1
Sub Total -85.1 (-16.6%) 10.0 (1.5%) +95.2
Adjustments -9.0   -7.0   +1.9
Total -94.1 (-20.5%) 3.0 (0.5%) +97.1
Following the positive result in sales, there was a considerable improvement of operating income in Digital Information Equipment, Solar Cells, and LCDs compared to 1Q fiscal 2012. There was an improvement in operating income in all product groups, with the exception of Health and Environmental Equipment, where the profit declined in imported products for the domestic market due to the yen’s rapid depreciation. The total operating income has improved by 97.1 billion yen.
Breakdown of Operating Income by Factors
Looking at a breakdown of operating income by factors in comparison between 1Q fiscal 2012 and 1Q fiscal 2013, as part of business restructuring efforts, a 50.2 billion yen cutback on fixed costs centering on labor cost and depreciation cost, as well as a 21.9 billion yen effect from reduction mainly in inventory and fixed assets, contributed largely to improvement in profitability for positive operating income in 1Q fiscal 2013.
Other Income (Expenses)
Despite the increase of interest expense in 1Q fiscal 2013, the completion of the majority of costs for business restructuring in fiscal 2012 contributed to significant improvement in other income (expenses) from 1Q fiscal 2012.
Consolidated Balance Sheets
Significant change from the end of March 2013 has been made with approx. 180 billion yen short-term borrowings transferred to long-term liabilities, due to the renewal of the syndicated loan.
The decrease of net assets balance halted with a 1.7 billion yen decline compared to the end of March 2013, resulting from the Qualcomm’s second third party allotment capital increase and a rise in foreign currency translation adjustments, despite the negative impact of the net loss of 1Q fiscal 2013. Consequently, the equity ratio has remained at 6.0%, the same level as the end of March 2013.
“Asset Light” Approach
The inventory at the end of June 2013 was 356.2 billion yen, an increase of 45.5 billion yen compared to 310.7 billion yen at the end of March 2013, and the ratio vs. monthly sales was 1.76 months, an increase of 0.42 months. Compared to the end of June 2012, we accomplished a 157.5 billion yen reduction of inventory.
The increase of inventory from the end of March 2013 was due mainly to increased inventories of small- and medium-size LCDs for the expected demand growth after July onward, and the impact of a weakened yen at the end of June 2013 on calculation of overseas inventories.
Transition of Interest-bearing Debt
The interest-bearing debt at the end of June was 1,169.4 billion yen, a decrease of 4.9 billion yen from the end of March 2013.
The portion of short-term borrowings decreased as long-term debt increased. We will strive for further reduction of the interest-bearing debt by improving cash flows.


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