FINANCIAL REVIEWNet salesDuring the scal year ended September 30, 2017 (from October 1, 2016 through September 30, 2017), nevertheless facing some difculties such as geopolitical risk increasing in East Asia and political situations in the Western countries, Japan’s economy generally remained in a recovery trend as some export indexes showed recovery signs and corporate protability is improved while capital investment gradually increases.In the context of these general situation, we closed the scal year 2017 with net sales of JPY 130,495 million (US$ 1,154,825 thousand), up by 7.1% from the previous year, thanks to higher sales in both of domestic and overseas business.Performance by segment, sales in the Electron Tube business comprised of Photomultiplier Tubes (PMT) and Imaging Devices and Light Sources amounted JPY 48,744 million (US$ 431,367 thousand), up by 6.9% from the previous year. Sales of Opto-semiconductor was JPY 60,589 million (US$ 536,189 thousand), up by 9.0% over the previous year. Sales of the Imaging and Measurement Instruments increased 5.3% to JPY 17,214 million (US$ 152,336 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 3,947 million (US$ 34,931 thousand), down by 8.2% over last year.Operating incomeCost of sales increased 8.0% or JPY 4,862 million (US$ 43,033 thousand) over the previous year to JPY 65,670 million (US$ 581,152 thousand). The cost of sales ratio weakened 0.4 points to 50.3% this year. Selling, general and administrative expenses were JPY 30,199 million (US$ 267,250 thousand), up by 5.5%, JPY 1,572 million (US$ 13,912 thousand). Research and development expenses were JPY 11,776 million (US$ 104,214 thousand), down by 0.8% from previous year. As a result, operating income was JPY 22,849 million (US$ 202,207 thousand), up by 11.2%. Operating income for Electron tube, Opto-semiconductor and Imaging and measurement instruments business segment was JPY 16,992 million (US$ 150,380 thousand), up by 10.8%, JPY 18,155 million (US$ 160,665 thousand), up by 12.5% and JPY 3,544 million (US$ 31,366 thousand), up by 0.2%, respectively. Other business recorded an operating income of JPY 281 million (US$ 2,488 thousand), down by 50.9%.Prot attributable to owners of parentOther income, on net basis, was JPY 720 million (US$ 6,380 thousand), compared with JPY 463 million (US$ 4,100 thousand) net of other expenses for the previous year. Reecting the previously cited factors, prot attributable to owners of parent for the scal year ended September 30, 2017 was up by 23.3% to JPY 17,777 million (US$ 157,322 thousand) from JPY 14,419 million (US$ 127,608 thousand). Consequently, earnings per share increased from JPY 90.23 (US$ 0.79) to JPY 113.00 (US$ 1.00). Dividend per share applicable to the scal year was JPY 34 (US$ 0.30).Net sales060402014012010080(¥ billion)Operating income02468101214161820222624(¥ billion)Profit attributable toowners of parent02468101214161820(¥ billion)15161715161715161712


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