We are steadily advancing our initiatives toward realizing our long-term management strategy, Vision 2030. I would sum up the fiscal year ended March 2026 as a year in which the likelihood of achieving our growth increased significantly.

Consolidated net sales for the fiscal year ended March 2026 amounted to ¥54.6 billion. Operating income, meanwhile, declined as a result of our proactive implementation of upfront investments for future growth, including investments in research and development, digital transformation (DX), and next-generation production lines. We have prioritized laying the foundations necessary to achieve Vision 2030, and I believe this represented an important step toward enhancing our corporate value over the medium to long term.

Looking at the business environment, the AI data center-related market is expanding rapidly, driven by the widespread adoption of generative AI. Demand is growing significantly for high-precision timing devices used in optical transceivers and AI servers, making this an important market that will drive our medium- to long-term growth. We are strengthening our ability to respond quickly to changing market needs by building on the high-purity synthetic quartz crystal growth technology and photolithography technology that we have cultivated over many years, while also advancing the development of our in-house IC capabilities.

In response to these changes in the business environment, we are transforming our business portfolio under our "Five Pillars + One" concept. In addition to automotive electronics and mobile communications, which provide us with a stable revenue foundation, we are cultivating industrial equipment, special equipment, and optical products as growth areas, while also working to create new businesses with an eye on the future. In particular, we expect the industrial equipment field, which is positioned to capture AI-related demand, to serve as an important pillar supporting our future growth.

We have positioned the current Medium-Term Management Plan period as three years of investment in preparation for our next leap forward. Alongside the active advancement of research and development, we are working to improve productivity and competitiveness by promoting SAP-based digital transformation and the development of smart factories. I am confident that these initiatives will strengthen the management foundation that supports our sustainable growth.

In September 2025, we updated our Mission to "Wave Motion Tech Moves Our Future!" This represents a reconsideration of the essence of the quartz crystal technologies we have cultivated over many years from the broader perspective of "wave motion tech." Going forward, we will expand our technological capabilities beyond quartz crystals to include ICs, optics, MEMS, and other fields. Through value creation founded on wave motion technologies, we will contribute to realizing a comfortable, secure, and safe society for the future while working to enhance our corporate value sustainably.

Hiromi Katoh
Representative Director and President