Q&A Session at Financial Results Briefing

What is the background to the increase in sales in the telecommunications segment?

Meiko was selected as a result of the customer's consideration of shifting production to Japan and the ASEAN region to avoid geopolitical risks.

What is the future outlook for automotive applications?

Our sales to the automotive applications are expected to decline in the current financial year due to the effects of falling sales in the Chinese market by Japanese car manufacturers and the global slump in EV sales. We are implementing measures to increase orders from the next financial year onwards, with the current financial year as the bottom.

What are your company's future prospects regarding semiconductor package substrates?

The plan has so far been delayed due to market factors. As mass production of memory packages started in the second half of the fiscal year, we aim to return to profitability in the semiconductor package substrate field from the next financial year onwards.

What are the trends in smartphone applications?

Although our sales appear to be declining due to the separation of the smartphone segment from the existing smartphone and tablet segment from this time onwards, sales are in fact stable. We expect the trend to continue as planned.

Capital expenditure has increased compared to the medium-term plan, please describe the change from the plan.

To accommodate AI projects, we have increased our capital investment in high-density, high multi-layer and high-speed PCBs. Investment is planned to continue at an annual pace of JPY 30 billion.