FINANCIAL REVIEWNet salesDuring the scal year ended September 30, 2015 (from Oct. 1, 2014 through Sep. 30, 2015), Japan’s economy as a whole maintained a gradual recovery as the corporate earnings picture brightened and personal consumption remained brisk. Nevertheless, concerns about the future direction of the economy increased, driven by factors such as a heightened sense of uncertainty that was inuenced by the economic slowdown in newly developing countries towards the end of the scal year.In addition to steady domestic sales growth, overseas sales gained as well, due mainly to the favorable exchange rate. As a result, we closed the scal year 2015 with net sales of JPY 120,691 million (US$ 1,005,759 thousand), up by 7.7% or JPY 8,598 million (US$ 71,653 thousand) from the previous year.Performance by segment, sales in the Electron Tube business comprised of PMTs and Imaging Devices and Light Sources amounted JPY 48,706 million (US$ 405,887 thousand), up by 6.9% from the previous year. Sales of Opto-semiconductor was JPY 51,944 million (US$ 432,869 thousand), up by 5.7% over the previous year. Sales of the Imaging and Measurement Instruments business including Image Processing and Measurement Systems, Failure Analysis Systems for semiconductor devices increased 15.5% to JPY 16,201 million (US$ 135,010 thousand). Net sales from other business, mainly semiconductor laser business and hotel operations, were JPY 3,839 million (US$ 31,991 thousand), up by 14.3% over last year.Operating incomeCost of sales increased 7.7% or JPY 4,130 million (US$ 34,420 thousand) over the previous year to JPY 57,582 million (US$ 479,850 thousand). The cost of sales ratio was 47.7% this year, about the same as last year. Selling, general and administrative expenses were JPY 27,897 million (US$ 232,481 thousand), up by 7.3%, JPY 1,899 million (US$ 15,828 thousand). Research and development expenses were JPY 11,615 million (US$ 96,793 thousand), up by 5.8% from previous year. As a result, operating income was JPY 23,596 million (US$ 196,633 thousand), up by 8.9%. Operating income for Electron Tube, Opto-semiconductor and Imaging and Measurement Instruments business segment was JPY 17,861 million (US$ 148,847 thousand), up by 7.5%, JPY 16,114 million (US$ 134,287 thousand), down by 1.3% and JPY 3,793 million (US$ 31,609 thousand), up by 51.9%, respectively. Other business recorded an operating income of JPY 172 million (US$ 1,436 thousand), down by 46.7%.Net incomeOther income, on net basis, was JPY 1,076 million (US$ 8,974 thousand), compared with JPY 796 million (US$ 6,640 thousand) net of other income for the previous year. Reecting the previously cited factors, net income for the scal year ended September 30, 2015 was up by 9.5% to JPY 16,598 million (US$ 138,320 thousand) from JPY 15,155 million (US$ 126,297 thousand). Consequently, basic net income per share (*) increased from JPY 94.26 (US$ 0.78) to JPY 103.23 (US$ 0.86). Dividend per share (*) applicable to the scal year was JPY 49 (US$ 0.40).*Hamamatsu Photonics implemented a two-for-one stock split on April 1, 2015. Net income per share has been calculated by assuming this stock split was executed at the beginning of the scal year ended September 30, 2014. And our annual cash dividends for the current scal year came to JPY 49 (US$ 0.40) per share. When translated into the equivalent value before the two-for-one stock split, the annual cash dividends come to JPY 68 (US$ 0.56) per share, up by JPY 13 (US$ 0.11) per share from the previous scal year.Net sales060402014012010080(¥ billion)Operating income02468101214161820222624(¥ billion)Net income024681012141618(¥ billion)13141513141513141512



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