Overview for the 83th fiscal year

During the consolidated fiscal year under review, the global economy continued to recover, despite little indication of progress in some regions. However, the outlook remained uncertain amid factors such as rising geopolitical risks around the Middle East in addition to concerns over economic trends in Europe and the United States and the impact of export restrictions imposed by the United States and China.

Looking at the business environment surrounding the Group, in electronics applications, performance remained strong, supported by steady demand for silicon semiconductor and SiC semiconductor applications. Demand was solid in mobility applications and general industries.

In this environment, the Group worked to strengthen and develop high value-added products that can keep pace with technological innovations and productivity, in order to achieve the management targets of the Medium-term Management Plan. The manufacturing, sales, and development departments worked together to accelerate the shift to high value added products, responding to increasingly sophisticated customer needs and steadily capturing business opportunities.

As a result, in the consolidated fiscal year under review, net sales were 53,093 million yen (up 7.8% year on year). In terms of profits, due mainly to the exchange rate factor and increased marginal profit through such measures as sales mix differences, operating profit was 12,238 million yen (up 31.8% year on year), ordinary profit was 13,480 million yen (up 32.4% year on year), and profit attributable to owners of parent of 9,960 million yen (up 32.7% year on year).

Future outlook

The outlook for business conditions in Japan and overseas is expected to remain unclear. In the business environment surrounding the Group, solid demand can be expected, particularly for the electronics, mobility, and energy industries. The Group anticipates that SiC semiconductor applications will enter an adjustment phase amid weakening demand for EVs, but demand for silicon semiconductor applications will begin a moderate recovery, while solid demand is also expected for metallurgical and other applications.

Against this backdrop, the Group aims to create high added value, achieve medium- and long- term business growth, and enhance corporate value by addressing customer needs with sincerity, providing innovative solutions through the forward-looking development of products and technologies, and accelerating its sustainability initiatives, including its contribution to reducing greenhouse gas emissions through its businesses based on its 2030 Management Vision: "'Creating products with unprecedented potential' - Becoming a leading company through earth-friendly products and technologies.

Based on the above, we expect net sales of 52,000 million yen (a 2.1% year-on-year decrease), while operating profit is expected to be 10,000 million yen (a 18.3% year-on-year decrease), 9,800 million yen in ordinary profit (a 27.3% year-on-year decrease), and 7,000 million yen in profit attributable to owners of parent (a 29.7% year-on-year decrease) in the fiscal year ending December 31, 2025.

Although we expect a decrease in profits for the 84th fiscal year, we plan to pay a dividend of 145 yen, same amount as in the 83rd fiscal year, in order to thank our shareholders for their continued support.

We thank you, our shareholders, for your continued support.

March, 2025