First of all, thank you for your continued support.

Allow me to take the opportunity of the publication of our 120th semiannual business report to report on the business overview and our initiatives for the interim period.

Business Overview for First Half of Fiscal 2021

During the six months ended September 30, 2021, the global economy continued on its recovery trend, mainly in Europe, the U.S., and China. The Japanese economy also showed signs of recovery, primarily in the manufacturing sector, as capital investments were revitalized in conjunction with the increase in corporate earnings.

Under such circumstances, demand was brisk in the telecommunications equipment and factory automation markets including robots and semiconductor manufacturing equipment, which are the Group’s main target markets.

9th Mid-term Management Plan and Current Initiatives

Under the 9th Mid-term Management Plan, which started in April 2021, SANYO DENKI Group aims to build a “leading global brand” as a global company by creating new things and new ways of doing things in unprecedented ways with the theme of “Breaking the Shell.”

The sales division is working to set up technical centers in all of our sales bases around the world. This will enable us to quickly provide product development and customization services close to our customers.

The design and development division has set a target of “increasing the output of product development by 20%.” By adopting innovative technologies such as simulation and the Internet of Things (IoT), we will improve both the quality and speed of product development in order to continue to introduce world-leading products to the world.

In the production division, we will promote the automation of production lines. We will also use digital data to centrally manage the flow of operations from order production planning to procurement, production, quality control, and shipping, thereby establishing a system to monitor the situation in real time.

About Dividends

While the impact of COVID-19 remains to be seen, in terms of our performance, there have been an increase in demand mainly for the factory automation market as well as telecommunications and medical equipment. The results of our performance are as outlined below. For the interim period, we declared cash dividends of ¥55.00 per share.

We thank you for your continued support and understanding of the Group.