AnnualReport2016
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TO OUR SHAREHOLDERSDear Shareholders: During the fiscal 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.Given these circumstances, our Group maintained capital investment aimed at boosting production capacity and enhancing development capabilities, and strove to ensure growth in net sales and earnings by improving our proprietary photonics technologies and continuing to move forward with development of high-value-added products that addressed customers’ needs.As a result, we closed the scal year 2016 with net sales of JPY 121,852 million, up by JPY 1,160 million (1.0%) despite a decline in domestic net sales, thanks to higher overseas sales, but with operating income of JPY 20,544 million, down by JPY 3,051 million (12.9%) over one year ago. Prot attributable to owners of parent was JPY 14,419 million, down by JPY 2,178 million (13.1%) from the previous year.4

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