The Group promotes its business activities under the mission of contributing to social and technological innovation through motion control technology. Mechatronics and speed reducers, which we produce, are contributing greatly to social and technological
innovation, including not only industrial machinery but alsoadvanced medical equipment and mobility sector applications, and such demand is expected to continue toexpand. Furthermore, with the acceleration of automation and labor-saving
in various fields mainly at production sites, AI robots and collaborative robots are increasingly expected to be a new growing sector amid the worldwide labor shortage. However, while there is no change in growth expectations for the AI robots market
in the medium to long term, as the market is still in its early days, the pace of real-world implementation is beginning to diverge from the assumptions made at the time of formulating the medium-term management plan (fiscal years 2024-2026)
which was disclosed on May 13, 2024. In light of such changes in the environment, the Group has decidedto develop and revise the current existing medium-term management plan to create one more effective and flexible, formulating the new medium-term
management plan starting in fiscal 2026. In the new medium-term management plan, “AI robots,” “Aviation, Space and Defense” and “e-mobility” are identified as focus development areas, with a policy to boldly pursue growth opportunities
in each of these fields. In addition, in order to capture future growth opportunities, the Company will work to further strengthen its marketing functions and capabilities of developing and manufacturing new products. At the same time,
the Company will strengthen the management foundation to steadily promote its growth strategy under the integrated management of the Group, contributing to achieving a sustainable society. We aim to enhance corporate value over the medium
to long term by intentionally maintaining a balance between defensive and offensive approaches in our management strategy while flexibly responding to environmental changes, to achieve our missions and vision.
We kindly ask our shareholders for your continued and unwavering support.
June 2026
Akira Maruyama President and Representative Director