Overview for the 82th fiscal year

During the consolidated fiscal year under review, the outlook remained uncertain amid factors such as concerns over an economic slowdown in Europe and the United States and the impact of the export restrictions imposed by the United States and China, in addition to resource prices staying at high levels, although signs of recovery were visible in the global economy except for some regions.

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

In this environment, to achieve the management targets of the Medium-term Management Plan, the Group advanced business development that agilely captured changes in the external environment. While improving cost competitiveness through productivity enhancements, and undertaking development and reinforcement of new and high value-added products that are able to keep pace with technological innovations. In addition, we advanced initiatives aimed at securing and maintaining profitability in order to mitigate the effects of soaring raw fuel prices.

As a result, in the consolidated fiscal year under review, net sales were 49,251 million yen (up 12.5% year on year).This reflected the impact of firm demand for products for semiconductor and metallurgical applications. On the profit side, operating profit were 9,283 million yen (up 39.2% year on year), ordinary profit were 10,182 million yen (38.2% year on year), and profit attributable to owners of parent were 7,506 million yen(up 44.9% year on year).

Future outlook

The outlook for business conditions in Japan and overseas is expected to remain unclear but the current upturn is forecast to continue. In the business environment surrounding the Group, solid demand can be expected, particularly for the electronics, mobility, and energy industries. The Group anticipates the continuation of strong demand for SiC semiconductor applications, as well as solid demand for metallurgical and other applications.

Against this backdrop, the Group will provide innovative solutions through the forward-looking development of products and technologies, responding with agility to changes in the external environment and addressing customer needs with sincerity, based on its 2030 Management Vision: "'Creating products with unprecedented potential' - Becoming a leading company through Earth-friendly products and technologies." At the same time, the Group aims to create added value, achieve mediumand long-term business growth, and enhance corporate value by further accelerating its sustainability initiatives, including its contribution to reducing greenhouse gas emissions through its businesses.

Based on the above, we expect net sales of 54,000 million yen (a 9.6% year-on-year increase), 10,900 million yen in operating profit (a 17.4% year-on-year increase), 10,500 million yen in ordinary profit (a 3.1% year-on-year increase), and 7,600 million yen in profit attributable to owners of parent (a 1.2% year-on-year increase) in the fiscal year ending December 31, 2024.

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

March, 2024