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I would like to thank all of our shareholders for their continued support.
I would like to extend my greetings as I deliver the 211th Annual Report (April 1, 2023 to March 31, 2024).

In the current fiscal year consolidated financial results, the Japanese economy saw a further normalization of socio-economic activities through a removal of the restrictions put in place due to the spread of COVID-19. Amid this, we're seeing a gradual recovery through an expansion of consumption activities and inbound tourism. On the other hand, the economic outlook is still uncertain due to hikes in raw material and energy prices and a drawing out of the weakening of the yen resulting from global monetary tightening, concerns about the economic outlook for China and a destabilization of the international situation.

It's based on this business environment that our group has aimed for recovery from the COVID-19 pandemic, further accelerating our level of growth towards the realization of our long-term vision, creating new things and taking on new initiatives in this second year of our "Action 22-24" medium-term business plan. In the chemical product business, which is positioned as a new core business, we invested in facilities to expand sales of our mainstay thickeners and stabilizers for food as a means to "strengthen our business foundation." Regarding the improving of our profitability for our existing business with importance given to capital efficiency and revising our business portfolio, we have transferred the insurance agency business that operates our subsidiary Shikibo Service Co. Ltd. and our shares in our former subsidiary Oda Pottery Ltd. Regarding the development of overseas markets through strengthening global network domestic and foreign cooperation, we established an affiliate in Vietnam with the goal of selling in overseas markets in the West and ASEAN and other regions.

As a result of the above, we saw sales at 38.681 billion yen (year-on-year increase of 2.1%), operating profit at 1.428 billion yen (year-on-year increase of 17.3%), and ordinary profit at 1.322 billion yen (year-on-year increase of 17.5%). Net profit belonging to shareholders of parent company, when calculating profits from the transfer of Shikibo Service Co. Ltd. insurance agency business as extraordinary profits and our losses from the transfer of shares of our former subsidiary Oda Pottery Ltd. as extraordinary losses, was 800 million yen (year-on-year decrease of 49.0%).

As for the dividend for the fiscal year ending March 31, 2024, it is the same as the previous period at 50 yen/share.

Fiscal year 2024 is going to be the final year of our medium-term management plan. While it should be the year we're wrapping things up towards the achievement of the plan, the deviation between the values in the FY2024 plan and our results estimates is as we disclosed during the announcement of our financial results. Compared to when we drafted the medium-term business plan, cost structures are changing greatly and there are large deviations for profits brought about by hikes to raw material and energy costs and fluctuations in the exchange resulting from global geopolitical risk and changes to the economic situation. While we forecasted that profit and loss will be below planned values, there are no changes to the basic policies or business strategies of the medium-term business plan. We're planning for this year to be an overall tie-up for "Action 22-24", where each and every one of our employees do everything they can to accomplish goals, initiatives and action plans that are in line with those policies and strategies.

We aim to fulfill our social responsibility and improve our corporate value aiming to realize a safe, reliable, and comfortable society that is kind to the environment to gain the support of our shareholders and stakeholders.

I would like to thank you again, and I hope to continue receiving support from all of our shareholders.

June 2024