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I'd like to begin by expressing my gratitude for your continued support of IBIDEN Co., Ltd. and the IBIDEN Group.

Regarding the electronics business, the latest round of inventory adjustments associated with the sharp drop in demand from the second half of FY2022 was completed in the PC market. However, the overall market remained somewhat weak, and price competition among suppliers became more intense. In the server market, new growth areas, mainly for IC package substrates related to generative AI, performed well. In the general-purpose server market, while the investment level by major users appeared to have bottomed out, the pace of recovery remained slow.
Regarding the market for exhaust system components in the automotive industry, growth in the global automobile production volume was slow due to the economic slowdown in China, global economic stagnation, and engine data falsification by Japanese automakers in the certification process.

In the electronics business, we received certification from new customers and modified production lines at existing plants to receive orders in the growth areas, mainly for AI-related IC package substrates, in line with an order taking policy focused on profitability. As a foundation for future growth, a project is underway to construct and launch the Ono Plant. To align the asset value with the current level of orders received, we wrote off fixed assets at IBIDEN Philippines, Inc. and some plants in Japan. To meet changes in the market environment and effectively capture demand in growth markets, mainly for AI-related IC package substrates, we will maximize the production volume by flexibly utilizing the production capacity of our existing plants and launch mass production at the Ono Plant in the second half of this fiscal year as planned.
In the ceramics business, the operations were shifted from the R&D Operation to the NEV Unit in FY2025 with the launch of new products for new energy vehicles (NEVs). Regarding the DPF and AFP businesses, we will reliably meet demand for industrial vehicles (including trucks and construction machinery) in emerging markets, mainly China and India, which are ever-growing markets for internal combustion engines. Meanwhile, the trend of electrification in the passenger vehicle market is irreversible in the medium to long term. To ensure ongoing growth of the automotive-related business, we will continue to expand sales of battery safety materials for EV in the NEV business. Regarding the FGM business, we will expand the business through intensive and systematic investments in markets where we can fully demonstrate our competitiveness while closely monitoring the trend of demand for various types of semiconductor manufacturing equipment.

Based on the five main reinforcement activities outlined in the "Moving on to our New Stage 115 Plan," which is the five-year medium-term management plan launched in FY2023, the IBIDEN group will steadily cope with changes in the business environment and realize sustainable, stable growth particularly in the electronics business as well as in the ceramics and other businesses. We aim to attain net sales of 600 billion yen and an operating income to net sales ratio of 15% in FY2027, the final fiscal year of the medium-term management plan. For the long-term performance targets, we aim to attain net sales of 750 billion yen and an operating income to net sales ratio of 20% in FY2030.
In the course of reforming the corporate culture, we will practice human resources management from the viewpoint of top management and employees. We will reform our personnel system so that each employee can fully demonstrate their capabilities with job satisfaction and pride while focusing on the development of independent human resources. In addition, as part of ESG management, which underpins the foundation of our business, we will continue to meet increasingly rigorous corporate governance requirements, in addition to initiatives toward carbon neutrality.

The IBIDEN group will actively promote IR activities that contribute to improving our corporate value with emphasis on constructive communication with shareholders and investors. Specifically, we will endeavor to quickly disseminate information in an easy-to-understand manner by improving our website and IR materials, including disclosure of main Q&As at briefings, in addition to periodic disclosure of materials for financial results briefings. I will be actively engaged in IR activities based on the recognition that such activities are important management issues. We aim to improve our corporate value by taking your opinions and requests seriously and reflecting them in our management.
To refine our IR activities and make information dissemination and communication more effective, we assigned an executive officer in charge of IR and established an IR department in April 2025. The department will take the initiative in upgrading IR activities, including interviews with top executives, to further enhance communication with shareholders and investors.




By steadily addressing these management challenges and risks, the IBIDEN Group will further solidify its earnings base and survive in this age of uncertainty. We will continue our concerted efforts not only to achieve the goals of the new medium-term management plan but also to realize long-term and stable growth.
In this regard, we would like to ask for the continued support of our shareholders for the IBIDEN Group.

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