To Shareholders

To bring joy and happiness to all stakeholders, we make full efforts to develop our business and to enhance corporate value.

President and Representative Director Katsuro Iwaida

Please allow us to express our sincere gratitude for our shareholders' continuous support and patronage.

This is our Group's performance report for the 61st fiscal year (April 1, 2021 to March 31, 2022).

During this fiscal year, Japan's economy was weakened in the first half due to the state of emergency and pre-emergency measures taken to curb the COVID-19 pandemic. However, as COVID-19 regulations started to be relaxed in the latter half, with the start of vaccinations and other activities, the economy started to show signs of recovery. Meanwhile, the increasingly serious situation in Ukraine accelerated inflation due to factors such as rising costs and delivery delays caused by shortages of raw materials, which has started to cause uncertainty about the future. However, we are fully determined to further focus our efforts within this environment.

We have been seeing a continuing growing trend in the semiconductor and semiconductor manufacturing device market in which our Group participates in, as active capital investments in logic, memory and power semiconductors are being conducted in light of the rising demand for semiconductors in a wide array of applications such as high-speed communication standards(5G) and on-vehicle applications.

In this business environment and within our strict efforts to prevent infection, our Group has strived to maintain product supply and services for our customers and actively promoted the thorough management of delivery dates and alternative product proposals for sales. Furthermore, we have reinforced our development capabilities for high-vacuum/control technologies in development and manufacturing, along with the dispatching of technicians for training, construction for clean room expansion at the Sendai office for our subsidiary Naigai Electronics Inc., and promoted capital investments for new construction, etc. for the Esashi office (Iwate Prefecture: Development/manufacturing factory) to support increased production for semiconductor manufacturing equipment, which is expected to increase in demand in the future.

As a result, the Group's consolidated performance for this fiscal year exceeded the estimated performance announced on November 12, 2021, and attained record highs, as the sales for various components (parts) for semiconductors/FPD manufacturing equipment, etc. remained strong throughout the fiscal year.

With the start of new market segmentation at the Tokyo Stock Exchange, our company has moved to the standard market. We are determined to make further progress and be aware of our social responsibilities within our efforts for sustainable growth and boosting our corporate values.

We look forward to receiving the continued support and guidance of our shareholders.

June 2022
President and Representative Director
Katsuro Iwaida