TheConsolidatedresults for the second quarter (interim period) of the fiscal year ending March 2025 (April 2024 to March 2025) are as follows.

Six months have passed since the new management structure with three Representative Directors was launched. Thanks to your support, we achieved increased revenue and profit in the second quarter (interim period) of the fiscal year ending March 2025 compared to the previous year.

In the film business, high-value-added products for automotive and communication equipment continued to perform steadily, contributing to profits. Materials for EV (electric vehicle) batteries and products for semiconductor manufacturing processes, which we are newly working on, also performed steadily. During this quarter, we exhibited at trade shows in the US and China. We will continue to actively participate in exhibitions to convey their appeal to more customers and strive to expand sales.

In the digital twin business, while orders for existing tasks in the construction industry have been decreasing as clients internalize BIM/CIM model creation, we secured orders for DX consulting for the manufacturing industry during this interim period. Going forward, we will leverage our experience in factory DX to expand services that only KIMOTO, with its own manufacturing background, can provide to manufacturers, not only in Japan but also overseas. We will contribute to advancing your DX through the synergistic effects of work style reform and manufacturing DX.

In the Technology Division, we aim to quadruple the output (the number of products under development) and are steadily reforming the product development workflow toward an efficient development system that is not restricted by location. As part of this effort, the relocation of testing equipment related to film product development from SaitamaR&D CentertoMie Plantwas successfully completed at the end of August. Going forward, we will continue to make technological reforms in new product development and manufacturing to improve productivity and contribute to the sales of high-value-added products.

At KIMOTO Farm, the "Century of Harvest Rice" has been reborn this year. Aiming for organic JAS certification, we have cultivated this rice entirely by hand, starting from seedling preparation and using no pesticides or chemical fertilizers. The result is an exceptional rice that has achieved a taste value score of 92, the highest ever in our history. Additionally, the KIMOTO Dahlia Garden, now in its sixth year, successfully opened in September, welcoming numerous visitors from distant locations. We are delighted to see an increasing number of repeat visitors, who enjoy the garden as a place of relaxation. Moving forward, we will continue our efforts to grow hand in hand with the local community and to progress together.

Our company is always promoting reform from an all-encompassing perspective, advancing work style and workflow reforms from a zero-based approach under a self-distributed organization. At the core, the most important thing that remains unchanged amidst evolution is 'people,' with a focus on family management and employee-first. Employee growth supports our reforms. We will actively create opportunities for employees to demonstrate their abilities, such as multi-skilling and internal platform activities, to foster more 'autonomous' employees, enabling each one to shine in a flexible work style.

We kindly ask for the continued support of all KIMOTO fans.