Financial Result Summary

The financial result of ADVANEX Group for the current term is summarized below.

One of the business sectors our Company is related to most is the automobile industry, and the Japanese automobile industry was adversely influenced by a decrease in sales in China and other factors. Nevertheless, due to an increase in the home sales propelled by eco-car subsidy, as well as an in increase in sales in North America, Southeast Asia, and other regions, the number of cars sold in the automobile industry was the highest ever. On the other hand, in the OA equipment market, demand decreased due to an economic slowdown in Europe and China. Under these circumstances, the Company's sales of automotive-related products increased compared with the previous term, but sales of products for OA equipment and PC-related businesses decreased substantially. Also, following the downsizing of the unprofitable Hinge business, sales of this business decreased compared with the previous term, but downsizing resulted in a substantial decrease in the amount of loss posted by the business.
As a result of the above, net sales of the current term were 23,551 million yen, a 6.5% decrease compared with the previous term, and operating income was 426 million yen, a 30.3% decrease YOY. As a result of foreign exchange gains accompanying the currently weak yen rates, ordinary income went up to 542 million yen with an increase by 15.4% compared with the previous term. Net income went up to 478 million yen with an increase by 111.2% compared with the previous term due to the extraordinary income coming from the insurance benefits to the Thailand factory, which suffered flood damage in 2011.
For the next term business results, we expect sales of 26,300 million yen, up 11.7% YOY, operating income of 700 million yen （up 63.9% YOY）, ordinary income of 430 million yen （down 20.7% YOY）, and net income of 200 million yen （down 58.2% YOY）.