Dear shareholders and investors,

Thank you for your continued support of the Nissha Group.

During the three months ended March 31, 2024, the global economy trended toward recovery backed by strong economic growth in the United States, while the economy remained weak in regions such as Europe and China. Production activities in the manufacturing sector were on a moderate recovery trend, ahead of a cyclical recovery in demand for goods. However, the economic outlook remains uncertain for a number of factors, including fluctuations in the financial capital markets and the present situations in the Middle East. Meanwhile, the Japanese economy recovered moderately due in part to strong production activities in the electronic components markets, although production activities declined in part of mobility markets.
Under these conditions, during the three months ended March 31, 2024, product demand in the fields of decorations and sustainable materials remained firm in the Industrial Materials segment. In the Device segment, product demand for tablet, which had been sluggish in the previous fiscal year, entered the demand period and showed strong growth. In the Medical Technologies segment, the acquisition of companies, coupled with strong product demand, contributed to earnings. In addition to these demand trends, the effects of the fluctuating exchange rate and other factors helped increase both net sales and operating profit year on year.
As a result, regarding the financial results for the three months ended March 31, 2024, net sales were ¥46,719 million (an increase of 10.1% as compared to the same period of the previous year), operating profit was ¥1,301 million (operating loss of ¥671 million in the same period of the previous year), and profit attributable to owners of parent was ¥1,240 million (loss attributable to owners of parent of ¥784 million in the same period of the previous year).

For the consolidated business forecast for the first half of FY2024 and FY2024, the Company has reviewed the latest demand trends, considering the results for the three months ended March 31, 2024. Net sales are expected to increase compared to the previous forecast because demand for the Industrial Materials segment and the Devices segment progresses more than initially expected.
In addition to the impact of the increase in Net sales, Operating profit, Profit before tax, and Profit attributable to owners of parent are expected to exceed the initial forecast mainly due to the foreign exchange gains recorded in the three months ended March 31, 2024.

Our Mission is to use the diverse capabilities of our people and our Core Technologies as an engine for growth to create highly competitive, feature-rich products and services that offer value to customers and contribute to better lives for all. Guided by this Mission, we will move forward toward our medium-to-long term growth which leads corporate value improvement.

Once again, I want to thank you, our shareholders and investors, for your support to the Nissha Group.

Business Plan (Long-term, Medium-term)

Financial Results / Business Presentation