Consolidated Results for the First Quarter Ended June 30, 2009

Q&A summary

Click on the appropriate question to view the answer.

Overall

Q1
Overall first quarter operating profit was in line with your initial plan, but how did the information-related equipment and electronic device segments shape up against the plan?
A
Both of these segments were basically in line. POS-related products and quartz devices were below plan in information related equipment and electronic devices respectively, but the shortfall was made up by the positive effects of foreign exchange.
Q2
Why are you not revising your year-end forecast even though foreign exchange is having a positive effect on results?
A
Although the situation for some products for enterprise remains tough, we are expecting a recovery for some products from the second half. Weighing both the effects of yen depreciation and the risks we are facing, we are maintaining a cautious approach.
Q3
At the start of the fiscal year you mentioned you were planning to greatly reduce fixed costs. What is the breakdown of fixed cost cutting between first and second halves?
A
In the first quarter we saw significant positive effects from a reduction in depreciation charges due to the impairments we enacted in the previous fiscal year, a reduction in overall labor costs, and the replacement of temporary workers. In terms of fixed cost cutting, there is no big difference between the first and second halves.
Q4
What are your assumptions regarding exchange rate sensitivity?
A
We haven't changed our assumptions from the initial plan. Against the US dollar, every one yen depreciation boosts net sales by 2.9 billion yen and operating profit by 100 million yen. Against the euro, we see a positive impact of 1.7 billion yen and 1.1 billion in net sales and operating profit, respectively.

Information-related equipment

Q5
What plans do you have in place for achieving a V-shaped recovery in inkjet printers in the second half?
A
Our initial plans for the first half of FY2009 were based on the assumptions of the lingering effects of the FY2008 economic recession. Our forecasts for the first half show an improvement in profitability in the second quarter. From the second quarter onwards we will enact plans to boost sales and ensure we achieve solid results in the year-end selling season. The latest reports suggest signs of recovery in demand for some products for enterprise, and we hope to boost sales by steadily responding to this demand.
Q6
How are you going to grow your inkjet printer business going forward?
A
We haven't changed the basic strategy set out in our mid-range business plan. In addition to strengthening our efforts in developing markets, we will improve cost competitiveness to make this possible. We are also proceeding with efforts to develop printers for commerce and industry.
Q7
Are there any signs of recovery for POS-related products in the European and North American markets?
A
The softness in the retail and financial industries looks likely to continue. We are not seeing any strong improvement in demand.
Q8
Do you have any quantitative data to show your results in the commercial and industrial domains?
A
Our original forecast for this fiscal year did not show any significant impact from this business. However, we are continuing to make headway in areas such as product development.

Electronic devices

Q9
Will there be any return to profitability in electronic devices in 2010?
A
Recent reports suggest a recovery in some regions and for some applications. Going forward, we will take advantage of these trends, and look to return to the black in the next fiscal year.