Manufacturing and selling capacitors and electronics components

The market environment surrounding Nippon Chemi-Con Group during the year ended March 31, 2010 showed a sharp rebound especially after the second half when demands for electronic components bottomed out with the positive effects of the governments’ economic stimulus packages, though there were downward trend in components price, increase in orders that requires short delivery time and steep rise of the yen.
Nippon Chemi-Con Group endeavored to secure sales through aggressive sales promotion centered on China and other new emerging markets. We took steps to enhance our earning power by reducing capital investment, personnel and other costs, and by adjusting sales prices.
To reduce the risk of exchange rate fluctuations,

we expanded overseas production ratio, established an overseas base to produce production facilities, and increased purchase of raw materials in foreign currencies.
In regard to new products, Nippon Chemi-Con Group developed the industry’s first conductive polymer aluminum solid capacitors with rated voltage of 63V and also the industry’s first electric double layer capacitor with operating temperature range of up to 85 deg C, both aiming to expand application fields. We also launched new products with smaller size and higher functions to be used in digital appliances including PC and FPD-TV, automotive and car electronics, and inverters application for industrial equipment.
Nippon Chemi-Con Group’s profitability improved in the second half especially since the turn of the year when demands for electronic components recovered substantially. However, our earning performances for the full year remained in tough situation due to weak orders in the first half, decline in average unit price, and appreciating yen.
Consolidated financial results for fiscal 2010 recorded net sales of 105.896 billion yen (decreased 7.6% compared to the previous fiscal year), operating loss of 3.036 billion yen (operating loss of 6.874 billion yen in the previous year), ordinary loss of 3.475 billion yen (ordinary loss of 6.015 billion yen in the previous year), and net loss of 4.294 billion yen (net loss of 12.7 billion yen in the previous year).
Non-consolidated financial results recorded 95.099 billion yen (decreased 3.8% compared to the previous fiscal year), operating loss of 4.826 billion yen (operating loss of 4.569 billion yen in the previous year), ordinary loss of 5.272 billion yen (ordinary loss of 2.461 billion yen in the previous year), and net loss of 5.915 billion yen (net loss of 7.360 billion yen in the previous year).
In light of its business results, Nippon Chemi-Con deeply regrets that it has decided to pay no year-end dividend. Your understanding and continued support will be much appreciated.

Ikuo Uchiyama, President