To all those affected by the Noto Peninsula earthquake in the 6th year of Reiwa, we sincerely offer our condolences and pray for the earliest possible recovery of the affected areas.

In the third quarter of the fiscal year ending March 2024 (April 2023 to March 2024),Consolidatedperformance was finally able to emerge from negative results as the businesses of our major business partners began to move.

Regarding the film business, we have been focusing on increasing adoption cases for automotive interior materials in recent years. Additionally, we are expanding our worldwide deployment of adhesive products for heat-resistant and insulating applications for EV (electric vehicle) batteries. Furthermore, although we have struggled with sales due to the loss of major projects in North America, sales of high-margin products, such as the adoption of new products, have been increasing. We will continue to focus on selling such high-value-added products.

Regarding the digital twin business, although the demand for data creation has been decreasing due to the near completion of data maintenance in the national resilience project, the demand for 3D data creation in the civil engineering and construction fields has been steadily increasing. In this context, we exhibited for the first time at the exhibition 'LONDON BUILD' held in London in November, promoting our technology and applications. We will continue to promote our company through worldwide exhibitions and strive to contribute to society.

In the Technology Division, we are promoting the "division of labor" of development projects with the goal of "quadrupling the output (the number of commercializations of developed products)" from this fiscal year. This is an attempt to fundamentally review the existing workflow and dramatically increase the man-hours for design and experimentation by collaborating not only the development department but also the manufacturing department. As a first step, we have started the transfer of equipment fromR&D Center(Saitama) toMie Plant, and we are making steady progress. The entire Engineering Division is working together to improve the accuracy of commercialization, shorten the delivery time for commercialization, and stabilize production, so please look forward to the future.

Regarding the new core system that started in July, its operation has finally stabilized. With the introduction of the new system, we have visualized changes in expense settlement methods and unified the order flow, shifting to a simpler workflow. We will continue to promote efficiency through further reforms and utilize data obtained from the ERP system for quick management decisions.

As a united KIMOTO Group, we will contribute to society worldwide and strive for performance recovery. We ask for your continued support from all KIMOTO fans.