A-1. AI semiconductor packaging process materials refer to those using our sandblast film during manufacturing. We cannot disclose specific quantitative forecasts, but we recognize them as a very significant demand from customers over the next one to several years. We are also considering global expansion.

A-2. Smartphone-related sales tend to be lower in the first half and slightly higher in the second half. The reason is that in the first half, customers often conduct prototyping and trials, with mass production starting in the latter half. For automotive, we expect an increase in the latter half, although it will take some time. Regarding tablets and similar devices, we are currently working towards specification adoption and expect an increase in the latter part of the second half.

A-4. We apologize for the concern caused by the negative results of KIMOTO TECH, INC. (KTI) in the U.S. for the fiscal year ended March 2024. Regarding the U.S. losses, they resulted from losing a major project last fiscal year. However, we now have a prospect of ending the current fiscal year without a loss, and we ask for your continued monitoring of our progress.

A-5. A very large number of the latest technology development projects originate from U.S. companies. We believe that manufacturing and selling products in the U.S. is crucial for our future growth. Furthermore, while we have recently shifted focus from smartphones and are strengthening activities centered on automotive, we believe it is necessary to expand into other fields, including medical, beyond that. We consider it an important base for the group for future growth.

A-6. KTI has many custom products from specific customers and is susceptible to economic fluctuations. To improve this situation, we have thoroughly pursued new business development, primarily in the automotive industry, over the past few years. As a result, discussions for new projects have increased. Furthermore, we are working organizationally toward performance recovery by strengthening our worldwide operational structure.

A-7. We believe there are steps toward significant profitability. Currently, we are aiming to achieve an operating profit of 400 million yen in three years. Specifically, focusing on 3D data creation, we are advancing application development at Shenyang Kimoto Industrial Co., Ltd. in China to achieve Step 1 of significant profitability with 400 million yen in operating profit. Regarding sales destinations, we aim to expand the business not only within Japan but also overseas.

A-8. Regarding the timing of disclosure, as we have just begun analyzing the indicators, we will promptly disclose the information once the timing becomes clear.

A-9. We recognize that the current stock price is low. A challenge is that despite profits recovering last fiscal year after a very difficult period with a large loss two years ago, the stock price has not moved in tandem. We believe this is because trust from the market has not yet been regained, due to factors such as downward revisions of sales two periods ago and not achieving targets as planned.

A-10. Regarding capital efficiency, although we understood the request from the Tokyo Stock Exchange, we focused on performance recovery last fiscal year and have just begun analyzing past data to consider what can be done. We will proceed with discussions and considerations repeatedly at the Board of Directors meetings going forward. We intend to continue addressing this matter sincerely.

A-11. Regarding the holding of 15% of treasury shares and how we will proceed in the future, there has been no repeated discussion at the Board of Directors at this point. We intend to report after further discussion.

A-12. Regarding treasury shares, we cannot answer as it involves insider information. However, as we consider measures to achieve management mindful of capital cost and stock price, we will also discuss the matter of treasury shares concurrently and report again.

A-13. M&A is not under consideration by our company. However, we are actively pursuing technical alliances and aim to expand our business through technical cooperation with other companies.

A-14. As reported in the Fifth Mid-Term Management Plan, we will carry out capital investment for new businesses and environmental measures. We sincerely accept your point and will discuss utilization other than capital investment at the Board of Directors.

A-15. We had reported the amount of capital investment in the Mid-Term Management Plan, but the timing of implementation has been delayed due to the significant impact of COVID-19. We plan to continue capital investment for new businesses, environmental measures, and workflow reform.

A-16. Thank you for your advice. The financial results briefing was originally started for analysts. In recent years, we began inviting business partners and members of the Kyoeikai (Mutual Prosperity Association) with the aim of increasing our supporters. Since last year, we have gradually expanded it to include shareholders. Based on the advice received, we will consider the format of the next financial results briefing.

A-17. Regarding the director candidates proposed for the Ordinary General Meeting of Shareholders held on May 30, we report that the number has been reduced from 10 last year to 8. Furthermore, these 8 individuals possess the necessary experience and skills for the company's goal of lasting 100 years, and we intend for them to continue being involved in the company's management.