FINANCIAL REVIEWNet salesDuring the scal year ended September 30, 2016 (from October 1, 2015 through September 30, 2016), Japan’s economy exhibited a recovery trend in some sectors, as the employment and income environment improved, and personal consumption generally remained brisk as well. Nevertheless, these positive developments occurred within the context of difcult circumstances, as rms faced slumping exports and production affected by the slowdown in the economies of newly developing countries, compounded by appreciation of the yen throughout the year. As a result, we closed the scal year 2016 with net sales of JPY 121,852 million (US$ 1,206,456 thousand), up by 1.0% from the previous year despite a decline in domestic sales, thanks to higher overseas sales.Performance by segment, sales in the Electron Tube business comprised of Photomultiplier Tubes (PMT) and Imaging Devices and Light Sources amounted JPY 45,608 million (US$ 451,566 thousand), down by 6.4% from the previous year. Sales of Opto-semiconductor was JPY 55,592 million (US$ 550,421 thousand), up by 7.0% 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 0.9% to JPY 16,352 million (US$ 161,902 thousand). Net sales from other business, mainly semiconductor laser business, hotel operations and a business relating to the proprietary products of Beijing Hamamatsu Photon Techniques, Inc., which is a subsidiary in China, were JPY 4,299 million (US$ 42,565 thousand), up by 12.0% over last year.Operating incomeCost of sales increased 5.6% or JPY 3,225 million (US$ 31,934 thousand) over the previous year to JPY 60,807 million (US$ 602,053 thousand). The cost of sales ratio weakened 2.2 points to 49.9% this year. Selling, general and administrative expenses were JPY 28,627 million (US$ 283,437 thousand), up by 2.6%, JPY 729 million (US$ 7,221 thousand). Research and development expenses were JPY 11,873 million (US$ 117,558 thousand), up by 2.2% from previous year. As a result, operating income was JPY 20,544 million (US$ 203,406 thousand), down by 12.9%. Operating income for Electron tube, Opto-semiconductor and Imaging and measurement instruments business segment was JPY 15,342 million (US$ 151,904 thousand), down by 14.1%, JPY 16,141 million (US$ 159,813 thousand), up by 0.2% and JPY 3,538 million (US$ 35,035 thousand), down by 6.7%, respectively. Other business recorded an operating income of JPY 572 million (US$ 5,667 thousand), up by 232.1%.Prot attributable to owners of parentOther expenses, on net basis, was JPY 463 million (US$ 4,587 thousand), compared with JPY 1,076 million (US$ 10,662 thousand) net of other income for the previous year. Reecting the previously cited factors, prot attributable to owners of parent for the scal year ended September 30, 2016 was down by 13.1% to JPY 14,419 million (US$ 142,770 thousand) from JPY 16,598 million (US$ 164,341 thousand). Consequently, earnings per share decreased from JPY 103.23 (US$ 1.02) to JPY 90.23 (US$ 0.89). Dividend per share applicable to the scal year was JPY 34 (US$ 0.33).Net sales060402014012010080(¥ billion)Operating income02468101214161820222624(¥ billion)Profit attributable toowners of parent024681012141618(¥ billion)14151614151614151612


page 14