|FY2018 Results||FY2019 Forecast||YoY(%)|
|Income Before Tax||66.2||31.0||-53.2%|
|Exchange Rate||1 US$||￥110||￥110||---|
|1 Euro||￥129||￥130||￥1 Depreciation|
In FY2019, amid the heightened sense of a slowdown and uncertainty in the global economy, semiconductor manufacturers are expected to continue to adjust their inventories for the time being and, therefore, we anticipate a year-on-year contraction in the semiconductor tester market in 2019.
Nevertheless, the current slowdown in demand still does not change our long-term market forecast. We believe that the market for semiconductor test equipment will grow over the medium to long term as the semiconductor market expands, despite repeated short-term fluctuations in demand. A recent trend that drove business results in FY2018, namely, the growing social demand for greater performance and higher reliability of semiconductors, has emphasized the importance of semiconductor testing. No change in the demand structure of the semiconductor test equipment market is evident at present. Based on this structure, the market for semiconductor test equipment is expected to enter a growth trajectory again from 2020, triggered by the expansion of commercial 5G communication services.
While the current business environment is difficult, based on the long-term outlook, we will adhere to the goals set forth in “Grand Design,” our Long-term Management Policy and our Mid-term Plan launched in FY2018. To achieve these goals, we will work on establishing and maintaining a foundation for growth, improving periodic profitability and using capital efficiently.
Note: The above forecasts are based on information available at the time of publication. Due to various external and internal factors, actual results may differ. For more detailed information, please see the Financial Results.