This slide presents an organized view of the risks taken into consideration in revising the earnings forecast.
With regard to the foreign exchange impact, first of all, the yen-euro exchange rate was revised to reflect a ¥5 appreciation in the yen. Together with that, the assumptions regarding currencies other than the US dollar and euro were also revised. As a result, we anticipate factors with a downward impact of ¥20.0 billion on revenue and of ¥6.0 billion on operating profit.
As to business factors, we interpret the outlook for the Industrial Business to suggest the downside risk of a ¥10.0 billion decrease in revenue and a ¥5.0 billion decrease in operating profit.
The situation of TAC film was extremely harsh in the 1st quarter, but there are change points in the market structure, and one reason for our revision is the opinion that we will deal with those changes appropriately. As you all know, with the VA panels that are our specialty, the map has been shifting the center of influence from South Korea to Taiwan to China. TV screen sizes are also running larger, to more than 50 inches. Meanwhile, the trend in LCD panels is to shift from VA to IPS.
Naturally, we anticipated these industry changes beforehand, and made sure to prepare to deal with them. Our film is being used by major panel manufacturers in China, and we have already acquired customer certification for IPS film.
A point to note is that the impact of such changes on our earnings was felt earlier and with a greater magnitude than anticipated in the 1st quarter. The present adjustment involves a ¥5.0 billion decrease in revenue. Preparations are already in place, however, and we intend to act rapidly to catch up in the 2nd quarter and the second half.
Factors affecting optical systems for industrial use include the sluggish market for smartphone-related devices, the accompanying tendency for capital investment to stand still, and the impact of the Kumamoto earthquake. For these and related reasons, we reduced the earnings forecast.
Therefore the outlook now is for a revenue of ¥1.03 trillion, an operating profit of ¥55.0 billion, and a profit of ¥36.0 billion.
Page 20 shows the breakdown of revenue and operating profit by segment. The substance of the adjustments has been explained already, so it will not be repeated here.
Page 21 shows an organized view of data related to the foreign exchange impact, and we hope you will refer to it.
With regard to the foreign exchange impact, first of all, the yen-euro exchange rate was revised to reflect a ¥5 appreciation in the yen. Together with that, the assumptions regarding currencies other than the US dollar and euro were also revised. As a result, we anticipate factors with a downward impact of ¥20.0 billion on revenue and of ¥6.0 billion on operating profit.
As to business factors, we interpret the outlook for the Industrial Business to suggest the downside risk of a ¥10.0 billion decrease in revenue and a ¥5.0 billion decrease in operating profit.
The situation of TAC film was extremely harsh in the 1st quarter, but there are change points in the market structure, and one reason for our revision is the opinion that we will deal with those changes appropriately. As you all know, with the VA panels that are our specialty, the map has been shifting the center of influence from South Korea to Taiwan to China. TV screen sizes are also running larger, to more than 50 inches. Meanwhile, the trend in LCD panels is to shift from VA to IPS.
Naturally, we anticipated these industry changes beforehand, and made sure to prepare to deal with them. Our film is being used by major panel manufacturers in China, and we have already acquired customer certification for IPS film.
A point to note is that the impact of such changes on our earnings was felt earlier and with a greater magnitude than anticipated in the 1st quarter. The present adjustment involves a ¥5.0 billion decrease in revenue. Preparations are already in place, however, and we intend to act rapidly to catch up in the 2nd quarter and the second half.
Factors affecting optical systems for industrial use include the sluggish market for smartphone-related devices, the accompanying tendency for capital investment to stand still, and the impact of the Kumamoto earthquake. For these and related reasons, we reduced the earnings forecast.
Therefore the outlook now is for a revenue of ¥1.03 trillion, an operating profit of ¥55.0 billion, and a profit of ¥36.0 billion.
Page 20 shows the breakdown of revenue and operating profit by segment. The substance of the adjustments has been explained already, so it will not be repeated here.
Page 21 shows an organized view of data related to the foreign exchange impact, and we hope you will refer to it.