Message to Investors

With regard to short-term demand trends for the Group, we expect that conditions will not allow for optimism, particularly for speed reducers for small industrial robots and semiconductor manufacturing equipment, where the adoption rate of the Group's products is particularly high, given the cautious stance toward electronics-related capital investment in China and the softening trend in semiconductor-related capital investment.

On the other hand, with regard to the medium- to long-term business environment, we expect sustained growth, as investment in more advanced automation is likely to continue, especially in the manufacturing industry, while demand is also expected to rise for advanced medical equipment, next-generation mobility, and other non-manufacturing sectors. To this end, the Group will work to further improve QCDS (quality improvement, cost reduction, delivery time reduction, and service improvement) by maintaining production capacity, which we have pursued to date. We will also promote stable parts and materials procurement by strengthening our supply chain system and improving productivity and operational efficiency through aggressive investment in IT, with the aim of improving QCDS.

We humbly ask all our shareholders for their continued support.



Dec 2023
Akira Nagai, President and CEO

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