To Shareholders and Investors

Toward the realization of our ambitious goal of "Eliminating gas accidents from around the world" we are promoting the development of products that utilize our unique gas sensors technology from a global perspective. For the fiscal year ending March 2024, sales increased 3.6% year on year to 38,546 million yen due to steady sales of Residential Gas Alarms and Fixed gas detection and alarm systems for industrial use for overseas markets. Operating income decreased 28.2% year on year to 4,086 million yen due to rising material, energy, and logistics costs, despite our efforts to improve productivity and reduce costs.

In May 2024, we revised the planned figures for the "Mid-term Management Plan 2022-2024." It is now expected that it will be difficult to achieve the planned figures for sales, due to the harsh sales forecast for portable gas detectors, which were expected to increase due to legal changes, and for profits, the increase in costs due to rising prices, such as rising material and energy prices and logistics costs, was not anticipated when the mid-term management plan was formulated. All employees will work together to ensure that this plan is achieved.

Regarding dividends, the final dividend for the fiscal year ending March 2024 has been increased by 1 yen from the most recent dividend forecast to 48 yen, in appreciation of the support of our shareholders, after comprehensively taking into account the business performance and financial condition of the fiscal year. We also forecast a dividend of 48 yen for the fiscal year ending March 2025. Our basic policy for returning profits to shareholders is to provide stable and continuous dividends, taking into comprehensive consideration business performance and dividend payout ratio.

In September of this year, we plan to complete construction of a new factory as part of a strategic investment to strengthen our management base. We will continue to take on new challenges while keeping a sustainable perspective in mind, in order to achieve even greater growth. We sincerely ask for your continued support.

June 2024