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To Our Investors

We would like to express our sincerest gratitude to our shareholders for their continuous support.

Since we have finished the Second Quarter of the Fiscal Year ending March 31, 2023, we will report on the overview.

Business Environment for the First Half of FY2022

Regarding the business environment for the Group, in Japanese market, capital investment of electronic component manufacturers and pharmaceutical manufacturers was strong. And also, demand for the construction of office buildings in Tokyo area and investment of automobile manufactures was steady.
In overseas market, although the uncertainty due to the impact of COVID-19 still persisted and soaring price of resources, manufacturers continued to recover their capital investment.

Achievements for the First Half of FY2022

Under these circumstances, regarding to the performance of the FY2022/H1, the orders-received exceeded the initial forecast for the whole Group, supported by good market environment and ordersreceived ahead of the schedule from the FY2022/H2 in both Green Technology System and Paint Finishing System.
The net sales of completed construction contracts fell short of the initial forecast due to the impact of the deconsolidation of Geico S.p.A, in addition to the fact that the volume of work did not reach the forecast.
The ordinary income exceeded the initial forecast by 0.7billion yen, mainly due to the profit improvement through cost reduction activity.
As for the profit attributable to the owners of parent increased slightly, as the defrayment such as corporate tax increased, regardless of the exceeding for the initial forecast of the ordinary income.

Outlook for the market environment for FY2022

As for the outlook for the market environment, although the construction demand in the building HVAC field may moderately shrink for the time being, we expect it will remain firm over the long term, since the needs for the reconstruction and renewal of buildings with old earthquake resistance standard and the redevelopment will persist.
In the industrial HVAC field, new capital investment is expected to continue in Japan by electrical and electronics manufacturers and pharmaceutical manufacturers. In overseas, new capital investment including semiconductor-related is expected which had been postponed due to the impact of the spread of COVID-19.
In Paint Finishing System Division, although the situation in Ukraine is affecting capital investment for European manufacturers, the demand is expected to remain firm since the capital renewal investment in North America and Japan, and investment for increasing production in China and India are anticipated.

We will continuously exert every possible effort to achieve our management targets to gain the high trust and appreciation of all stakeholders. We appreciate the continued support and guidance of our investors in the years to come.

Representative Director, President

Koji Kato