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Message for shareholders (FY2023 2Q)

During the second quarter consolidated fiscal period (Jan. 1, 2023 - Jun. 30, 2023), global economy has still been facing concerns about worldwide recession such as slowdown in consumption impacted by high inflation and high interest rates in the USA, due to the unstable international situations caused by prolonged invasion into Ukraine by Russia. Meanwhile, Japanese economy has seen gradual upswing thanks to the progress of various measures against COVID-19 infections. However, there has been a high inflation due to such as rise in prices of imported goods and energies, and suppressed consumer confidence, resulting in still remaining uncertainty about the future both domestically and globally.

In such an environment, the Group considered what it should aim at in very long spans of 20, 30 years and so forth for the future in starting up its Medium-Term Business Plan, and set its corporate purpose as "Activate Your Life". The phrase "Activate Your Life" means, in cooperation with our stakeholders, resolving various social issues by means of infinite power of surface science, and contributing to better life and brilliant future.

Based on this corporate purpose, the Company set its medium-term growth vision as "The most respected innovation company for customers all over the world", and developed its three-years' Medium-Term Business Plan named "INNOVATION25" (2023-2025) which has already been started. At present, the Company is working on promoting the five major strategies of its Medium-Term Business Plan, namely "Major transformation of business structure", "Well-balanced investment", "Productivity reform", "Promotion of sustainable management", and "Evolution of the extended family policy".

We continue to convert the drastically-changing management environment to our business chances, put its efforts to business activities which provide values increasingly required by our society, and aim at permanent growth.

Thank you for your cooperation and we ask for your continued support looking forward.

EMORI Yasumasa
President CEO