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Performance Overview

  • Net sales for the consolidated fiscal year ended March 31, 2023 were 97,338 million yen (down 0.6% year on year). Operating income was 15,972 million yen (down 11.1% year on year), ordinary income was 15,462 million yen (down 14.4% year on year), and profit attributable to owners of parent was 11,405 million yen (down 3.4% year on year).

    Results by segment were as follows.
    The Group consists of segments based on operating subsidiaries and has two reportable segments: the Electronics business and the Medical and Pharmaceutical business. Effective from the first quarter of the current fiscal year, the name of the "Electronics Materials" segment has been changed to the "Electronics" segment. This change is only a change in the segment name; there is no change in the subsidiaries that comprise the segment.

    Electronics Business
    Over 90% of sales in this segment are made overseas. Foreign exchange gains (a result of the weak yen) therefore contribute to revenue and profit growth in the segment. Throughout the period under review, JPY against USD averaged at JPY 135.0/USD, 22.1 yen lower than the previous period’s average rate of JPY 112.9/USD.

    Regarding rigid board materials, sales remained lean, and sales volumes declined year on year, especially for display-related materials and consumer-related materials. This component has a high sales ratio in China, and its sales volume declined due to a lockdown caused by the spread of COVID-19 a sharp drop in utilization rates due to a decline in customer employee attendance rates, and a decrease in final demand for PCs, tablets, and consumer electronics, etc.

    Sales volumes of semiconductor package substrate materials were also lower than in the same period of the previous fiscal year. In particular, the sales volume of dry film products reached a record high through the first half of the consolidated fiscal year under review, backed by a dramatic increase in data volume due to the establishment of remote working and the spread of the 5th generation mobile communication system (5G) around the world. However, its sales volume decreased due to a rapid decline in demand for products for memory starting from the third quarter of the current fiscal year as customers increased their inventory levels against the backdrop of declining end-user demand for smartphones, PCs, tablets, and other products.
    As a result, net sales amounted to 68,419 million yen (down 3.8% year on year), and segment profit came to 15,845 million yen (down 6.4% year on year.)

    Medical and Pharmaceuticals Business
    With regard to the ethical pharmaceuticals manufacturing and marketing business conducted by Taiyo Pharma Co., Ltd. sales decreased from the same period of the previous year. To compare with that period, its sales remained weak due to the impact of NHI drug price revisions and a decrease in demand following the lifting of limited shipments of other companies' drugs with the same efficacy, etc., despite an increase in demand for certain product due to the spread of COVID-19.

    Taiyo Pharma Tech Co., Ltd., in its pharmaceutical contract manufacturing business, recorded growth in sales revenue. The business performed well due to an increase in the contracted volume requested by the customer and changes in the product mix. As a result, net sales amounted to 25,447 million yen (up 8.4% year on year), and segment profit came to 1,906 million yen (down 20.6% year on year.)

(Unit: millions of yen)

Item FY2022
Change Percentage Change
Net Sales 97,966 97,338  △ 627  △1%
Operating Income 17,958 15,972 △ 1,986 △ 11%
Ordinary Income 18,062 15,462 △ 2,600 △14%
Profit attributable
to owners of parent
11,803 11,405  △ 397  △3%