Amongst global efforts to realize sustainable society continue advance, such things as increasing geopolitical risks and unstable prices continue to make the future of the external environment surrounding our Group uncertain.

In this situation, our Group, in the first year of the first stage of our mid-to- long term management plan “Creating New Value for the Future”, we set three guidelines, “Creation of value”, “Creation of smart manufacturing”, and “Evolution of organizational capabilities for the future”, and we have been working on these to continue being the BEST PARTNER possible to support people and society and connect the present and the future. Especially in “Creation of value”, we started sales of resorbable bone regeneration material that is expected to promote bone formation, and development of a world-first high-load compatible double cog belt using a Cellulose Nano Fiber composite rubber, and we have been promoting the development of digital human resources to achieve our goals in “Creation of smart manufacturing”.

In the automotive field, which our Group’s most main market, further progress in electrification is expected and, in this situation where business structural reform is essential to achieving sustainable growth, our Group aims to achieve our management goals in accordance with the 3 guidelines set out in our mid-to- long term management plan, “Creating New Value for the Future”.

We appreciate your continued support.

June 2024