I am pleased to present an overview of Valqua's performance for the fiscal year ended March, 2026.

In the domestic manufacturing sector during the period, business conditions lacked momentum in the first half due to disruptions surrounding U.S. tariff policies and delays in the recovery of capital investment and the semiconductor market both in Japan and overseas. However, in the second half, these conditions began to show signs of improvement, creating an environment with a more optimistic outlook for the next fiscal year.

Under these business circumstances, our Group, now in the second year of our medium‑term management plan “New Frontier 2026” (NF2026), has advanced initiatives based on the perspective of “pursuing new value creation to deliver the highest level of satisfaction to all stakeholders.” While working to secure near‑term earnings, we have also invested in strengthening and expanding our production bases and pursued M&A opportunities for future growth.
As a result, although net sales for the period declined year on year due in part to the sale of our silicon wafer reclaim business at the end of the previous fiscal year, the expansion of sales of high‑value‑added products and our efforts to improve profitability contributed to higher operating income and net income.

During the fiscal year, misconduct by a former employee of our company occurred, causing great concern and inconvenience to our stakeholders. We extend our deepest apologies. We take this matter very seriously. Going forward, we will implement thorough measures to prevent recurrence, including strengthening system controls in financial and accounting operations, and we will devote our full efforts toward improving governance and restoring your trust.

In the next fiscal year, ending March 2027, our company will celebrate its 100th anniversary. In this landmark year, our Group will accelerate its efforts toward value creation by further expanding our presence in advanced industrial markets and enhancing digital solutions for the equipment and plant sectors.

We will position our 100th anniversary not as a milestone to conclude the past, but as a new starting point for further growth. Together with driving business expansion, we will steadfastly execute our initiatives to restore trust and open new paths for the future.