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Issues to be addressed

The Group is committed to improvement in profits and financial strength, taking measures by product as stated below.

1.Capacitors

The Group will enhance its super high-end products for high-growth devices such as smartphones, both ultra-small and ultra-low profile multilayer ceramic capacitors and cutting edge products of various sizes, and will streamline systems in response to the expansion of demand. Furthermore, the Group will strengthen high-quality, high-reliability product lineups for focus markets such as automotive electrical equipment, industrial equipment, healthcare, and energy/environment. In the high-capacitance zone over 100μF, the Group will promote an expansion of the market for its multilayer ceramic capacitors by proactively expanding into the market for electrolytic capacitors, with an eye to further growth. Meanwhile, as for its production systems, the Group will pursue highly efficient production at all of its domestic and overseas production sites, while striving to make the maximum use of its overseas production bases by accelerating overseas development of high-end products, which previously have been produced in Japan. In addition, the Group intends to establish its production systems in response to the expansion of demand for high-growth devices such as smartphones and automotive electrical equipment in focus markets.

2.Ferrite and applied products

In the areas of multilayer chip inductors and winding inductors, the Group will accelerate development of super high-end products that are more suited to customers' needs than ever before. In particular, with regard to power inductors, the Group will strengthen its line-up of "MCOILTM" products employing new metallic materials that enable much smaller size and larger current, strategically launching them into the market and expanding relevant production capacity. In addition, we plan to expand our line-up of High-Q multilayer chip inductors and ultra-small multilayer chip inductors. Meanwhile, with regard to its production systems, as with capacitors, the Group will strive to make the maximum use of overseas production sites and achieve highly efficient production at all of its domestic and overseas production sites. In addition, the Group intends to establish its production systems in response to the expansion of demand for high-growth devices such as smartphones and automotive electrical equipment in focus markets.

3.Integrated modules & devices

The Group will develop the high-frequency products business with FBAR/SAW technology at its core, proactively launch into the market super high-end products using "EOMINTM", an embedded-parts wiring substrate which was invented with the Group's unique technologies, and strengthen the power supply business that includes regeneration systems for the energy market. The Group will strive to establish a production system for FBAR/SAW devices for mobile communications, responding to the expansion in the number of installed devices resulting from the adoption of the next-generation communications standard LTE.

4.Other electronic components

Regarding energy devices, the Group will develop applications in high-tech fields, and expand sales to the energy field. The Group continues marketing activities in the highly reliable market for large-scale lithium ion capacitors. To accelerate these activities, the Company entered into a capital and business alliance with ELNA Co., Ltd., in November 2014 to promote joint development/production and cooperation for material procurement. In the future, the Group will strive to raise competitiveness in the market and expand business.