A: We do not have the complete knowledge of distribution inventory with regard to how many months’ inventory is maintained as a whole. We feel that currently, the period of inventory for distributors and car electronics is prolonged. We expect that a recovery trend will begin in or after H2.
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A: Speaking in terms of our plan at the beginning of the fiscal year, we expect that prices will decrease in line with the plan. Negotiations for raising capacitor prices were mostly completed in January to March 2019. Out of respect for our relationships with customers, we cannot make any further comments.
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A: Although our current inventories are at a high level, we expect that the ages of our inventories in months will gradually become appropriate as sales will recover from now on.
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A: We expect that 5G will begin to have material impact on our financial performance in or after fiscal 2021. As devices become more sophisticated, including the development of 5G, further reduction in sizes and weight of electronic components will be required and the quantities of components such as capacitors and noise filters used are likely to increase. We expect that this will have a positive effect on our financial performance. In addition, we think that demand for products for base stations will also increase. As for modules, we think that there will be business opportunities for MetroCirc
TM particularly in the millimeter wave market, and we are making various proposals for products such as millimeter wave modules and RF modules for terminals and base stations.
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A: While its direct impact on us is limited, if it causes a slowdown in the global economy or forecasts for applications are revised downward, it is likely to have a negative impact on our financial results.
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A: Because the capacity utilization ratio was low in the first quarter in the accounting process, the fixed cost per unit of inventories produced during the period increased and as a result, the inventory value has also increased. This increase in the inventory value is a temporary rise in the accounting process and will be recognized as the cost of sales as sales are posted in Q2 and thereafter.
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