To Our Shareholders

We aim to be a company that consistently provides added value
even in a rapidly changing business environment
and will promote our business by leveraging the comprehensive capabilities of the Group.

We would like to express our sincere gratitude to our shareholders for their continued support.

In the electronics industry during the interim period under review, production of electronic components was strong due to factors such as the expansion of demand for automotive electronics and the rapid spread of generative AI.
In this environment, the Group focused its sales activities on a variety of related materials for electronic components. However, the impact of sluggish sales of aftermarket products, including particularly dashboard cameras, resulted in a year-on-year decrease in sales revenue for the interim period under review. In addition, gross profit rose year on year due to an improvement in profit margin, but due to an increase in personnel expenses and foreign exchange losses, profits at each stage in or after operating profit decreased year on year.

Additionally, since October 30, 2024, our parent company, Toyota Tsusho Corporation, has been conducting a tender offer for our company's shares. In line with changes in the business environment surrounding the Group, we have promoted measures such as cultivating major customers in Japan and overseas and providing high-value-added products and services in potential areas. However, in order to steadily realize these measures, we recognize that it is necessary to further utilize the management assets and know-how of both companies. However, because both companies were listed ones, there were certain restrictions on information exchange, etc. from the viewpoint of our company's independence and protection of minority shareholders, and cooperation between the two companies was limited. Our company expressed its opinion in favor of the tender offer because it has been determined that synergies can be expected to be created by becoming a wholly-owned subsidiary of Toyota Tsusho Corporation and resolving the restrictions, thereby helping to enhance corporate value. Upon successful completion of the tender offer, our company's shares are expected to be delisted through a series of subsequent procedures.

We would like to express our deepest gratitude to our shareholders for their support and ask for their understanding of the Group's future development.

December 2024

Chief Executive Officer and Chairman of the Board Akira Yokode