The consolidated results for the fiscal year ending March 31, 2023 (April 2022 - March 31, 2023) are as follows.

We are deeply sorry for this very disappointing result and the concerns it has generated among many of you. The main factors behind the negative performance were: Various products related to these sectors (such as light-blocking films and hard coat films) struggled due to prolonged production cuts and inventory adjustments in the mobile industry, including smartphones, amid global inflation and economic slowdown, as well as the impact of automobile production cuts caused by semiconductor shortages. Even under these circumstances, the number of new projects for product sales using diverse substrates, primarily for automotive and medical applications, and for functional coating sales has increased.
We have been making efforts to provide our core imaging technology to the construction and manufacturing industries. In the construction industry, BIM (Building Information Modeling) construction, which is a government policy, has been adopted since April 2022, and the demand for 3D data has been increasing.

Additionally, KIMOTO Co., Ltd. (Japan) recorded a loss on valuation of stocks of subsidiaries and affiliates of 574 million yen (extraordinary loss) on the stocks of KIMOTO TECH, INC. (US) in the non-consolidated accounts for the fiscal year ended March 31, 2023 (*This has no impact on consolidated results.). Although business recovery was delayed due to the economic slowdown caused by the COVID-19 pandemic and the global impact of the US-China trade friction, business performance is gradually recovering.
We believe that the US production base is essential for the KIMOTO Group to make a worldwide contribution by “gaining ideas in the world's largest market and developing and manufacturing products that can make a difference in the world.” We will work to stabilize our business results by pursuing sales in new markets such as automotive and medical, as well as in new projects for 3D data and digital transformation-related services.

Looking ahead, we expect to see a recovery in demand related to electronic devices and an increase in demand for 3D data in the third quarter of the fiscal year ending March 31, 2024, and although it will not be a major recovery, we expect to land in the black.
Moreover, efforts to boost efficiency in manufacturing and development are beginning to emerge. The factory has been proceeding with a DX (digital transformation) for the past year and has established a streamlined workflow. At the same time, both the manufacturing and development departments have been promoting multi-functionalization for several years now, aiming to further improve efficiency by not being restricted to a single job or task. We are committed to the development of technologies for quality improvement and high added value in both material and non-material manufacturing, and we will strive to promote a workflow that is environmentally friendly to the earth.

The entire KIMOTO Group will unite in our efforts to restore our business performance and make every effort to be of service to the world.
We appreciate your kind support in our endeavors.