Financial Results Briefing for the Second Quarter of the Fiscal Year Ending March 31, 2017 (Tokyo Daiwa Conference Hall)

2016.11.17

A financial results briefing for the second quarter of the fiscal year ended March 2017 was held at the Daiwa Conference Hall, with about 50 people attending the meeting.
Kaoru Koyano, Managing Director and Chief Financial & Administrative Officer Company, explained the results for the first half of FY2016 and the full-year FY2016 revision plan, followed by a description of the Company's initiatives from Masataka Kubo, Chairman and CEO of the Company I was allowed to.

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Q2 FY3 / 17 results briefing Q & A

What is the reason that the gross margin in the first half of the year has increased significantly?
The sales composition of digital products with low gross margin decreased, and the overall gross margin improved in the product mix due to the increase in white goods and seasonal products with high gross margin. Another factor is the rise in the composition ratio of original products.
Please tell us your outlook for the next three years. How do you view the industry as a whole, including the competition, in the medium term?
Competition has subsided and the consumer electronics market is entering a replacement cycle. Televisions, which peaked about six years ago, are now returning to their normal replacement cycle, and by 2020 demand is expected to rise further. As domestic manufacturers of home appliances are narrowing down their product lineup, the number of domestic manufacturers dealing with home appliances in general is decreasing, and the number of overseas manufacturers such as China is increasing instead. We would like to add new items from various countries such as European, Chinese, and Taiwanese companies to make an assortment of products. We expect these trends to continue over the medium term. We also expect demand for home renovations to increase further. Although the sales volume of mobile phones is declining, the sales composition of SIM cards and cheap smartphones is rising, and we believe that products that use communication such as IoT will increase in the future.

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