The SANYO DENKI Group has been carrying out structural reforms since the beginning of the last fiscal year in an effort to deliver products and services that boast uniform high quality to customers around the world. Additionally, we have been working to have the Group companies around the world perform the same functions as the parent company in Japan. Specifically, we have established technical centers at each base and have introduced a uniform system in terms of accounting, internal rules and the development of human resources across the Group.

In May 2015 we established a new local subsidiary, SANYO DENKI INDIA PRIVATE LIMITED, in Chennai, the gateway to southern India.

In new product development, we succeeded in developing a number of new products as planned, and they are competitive with the best in the industry in terms of performance, energy saving and reliability, as described below.

In manufacturing, we began production of servo amplifiers in addition to power supplies, stepping motors and servo motors in the third factory of SANYO DENKI PHILIPPINES, INC.

However, in the second quarter a sharp slowdown in the Chinese economy significantly impacted the factory automation industry, one of our major markets. The Company’s operating results for the interim period ended September 30, 2015 are described below.

For the interim period, we declared cash dividends of ¥9.00 per share, an increase of ¥1.00 compared with the same period last year.