TheConsolidatedresults for the fiscal year ending March 2024 (April 2023 ~ March 2024) are as follows.

Although theConsolidatedresults for the fiscal year ending March 2024 increased sales and profits, unfortunately we were not able to achieve theNet salesbudget. We sincerely apologize for this result. However, we are very pleased that we were able to achieve profits that exceeded our expectations. In addition, the number of projects in the United States, which is struggling, is increasing for the current fiscal year, so we will continue to work on it with caution.

Furthermore, as advertised on our website and in the Nikkei newspaper, we are pleased to report that we have been selected as a 'Next Nadeshiko Work Together, Raise Together Support Company' by the Ministry of Economy, Trade and Industry and the Tokyo Stock Exchange. This selection is the result of our efforts in work style reform, such as free seating, free address, and full flex, which we have been pursuing since 2009, allowing individuals to excel regardless of race, nationality, gender, educational background, or age. We will continue to promote reforms so that each individual can shine in a flexible working style.

Next, I would like to report on the topics of each division.

The film business struggled due to a decrease in the consumption of electronic devices, but saw solid growth in module-related components and an increase in the adoption of automotive interior materials, which we have been focusing on recently. Similarly, there has been an increase in adhesive products for heat-resistant and insulating applications for EV (electric vehicle) batteries, contributing to profits. We will continue to focus on the sale of such high-value-added products.

Regarding the digital twin business, the national land resilience project, which has been promoted as a national policy for five years, has completed data maintenance, resulting in a decrease in our company's workload and affecting sales. Additionally, the 3D data used in BIM/CIM for the civil engineering industry has been steadily growing. In this context, the new initiative of manufacturing DX is gradually showing results, and we have high expectations for the future.

The Technical Division has been successfully implementing reform measures to increase the output (number of developed products commercialized) by more than four times, previously conducted only in Saitama. With the cooperation of increasingly versatile factories, we have completed the first phase of equipment relocation to Mie in mid-January, with the purpose of accelerating the 'division of labor' between 'design' and 'experimentation' and significantly increasing both workloads. The second phase is planned for the first quarter of the fiscal year ending March 2025. Furthermore, by simplifying workflows and improving efficiency, we will contribute to everyone with many new products.

The Administration Division has finally achieved stable operation of the new core system that started operating last July. Even in the first financial closing with the new system, we have achieved early settlement, and this fiscal year, we are able to hold the regular shareholders' meeting on May 30.

As a united KIMOTO Group, we will contribute to the world on a global scale and strive for performance recovery. We kindly ask for the continued support of all KIMOTO fans.