To Our Shareholders & Investors

To Our Shareholders & Investors (Jun 2024)

We would like to express our sincere and heartfelt appreciation to all our shareholders and investors for your understanding and support for our business activities.

I have recently been appointed president. With this change, we have restructured our executive team to aim for continued growth and the enhancement of corporate value. Under my leadership, Tomen Devices will strive to strengthen its competitiveness and improve its market position.

We have now completed the 33nd fiscal year and would like to explain the state of the Tomen Devices Group.

In the electronics industry, while demand for automotive and AI server applications remains strong, the demand for general servers, storage, personal computers and smartphones is only gradually recovering due to ongoing inventory adjustments. Although there has been some price recovery for our core products, memory products, due to suppliers' production adjustments, the market has not yet fully recovered. Therefore, the business environment surrounding the Group remains challenging.

In these circumstances, while sales of automotive memory products, NAND flash products for servers and storage and high-resolution camera CMOS image sensors (CIS) for smartphones expanded, sales of memory and display products for personal computers and smartphones declined. As a result, the Tomen Devices Group posted net sales of 370,676 million yen (down 11.2% year on year), operating profit of 9,480 million yen (down 22.5% year on year) and ordinary profit of 6,203 million yen (down 5.9% year on year). Additionally, FCNT LLC, a business partner of the Company, filed for civil rehabilitation proceedings based on the Civil Rehabilitation Law with the Tokyo District Court on May 30, 2023, and the rehabilitation plan was approved on February 7, 2024. Consequently, the Group posted an extraordinary loses (provision of allowance for doubtful accounts and loss on valuation of inventories) of 4,184 million yen, resulting in profit attributable to owners of parent of 2,096 million yen (down 57.3% year on year).

Meanwhile, year-end dividends of 200 yen per share were approved at the 33nd Ordinary General Meeting of Shareholders.

We intend to disclose our information with transparency and enhance corporate value to meet the expectations of our shareholders. We kindly ask for your continued support.