NDK is making steady progress toward achieving our long-term management strategy, Vision 2030. Under this strategy, we have defined "Creating the Future of Digital Society through Frequencies" as our raison d'être and near-term vision and have set management targets of ¥100 billion in net sales and an operating income ratio of 20% in fiscal 2030. To realize these targets, we plan to make a total of \20 billion in capital investments over the three years in the medium-term plan (the third Medium-Term Management Plan) and promote rebuilding operations such as promoting digital transformation (DX) based on SAP, converting to smart factories, and creating new businesses. Fiscal 2025, the first year of this plan, is truly a critical year for us.

To date, we have grown by providing products that meet the needs of the times in a diverse range of fields, from watches to medicine, using quartz for the stable creation of frequencies. Society, however, is always changing, new technologies are constantly emerging, and the business environment is shifting rapidly. In order to maintain sustainable growth under these circumstances, it is necessary that we continue to transform our business portfolio to meet the changing needs of society.

Taking an overarching view of recent industry trends, the competitive environment surrounding the Company continues to change with the transformation of the automotive electronics and communications markets as well as the rise of up-and-coming emerging players. There is a need to review our strategies and strengthen our ability to respond in both existing and growing markets. Based on this awareness, we have formulated the "Five Pillars + One" concept to establish a solid management structure that is less susceptible to economic fluctuations. Under this concept, in addition to the existing profitable businesses of automotive electronics and mobile communications, we will develop industrial equipment, special equipment (defense and space), and optical products as our third, fourth, and fifth business pillars. Through these efforts, we aim to establish our position as a continuously growing solution provider.

While steadily progressing toward the realization of Vision 2030, we also felt a strong need to define more precisely the course we should take for the future beyond 2030. Accordingly, we have been working with the generations who will be the leaders of this company in the future to examine what our core strengths are and how we can continue to be of value to society.

This has led us to a renewed recognition that our company has continued to pursue wave motion technologies since our inception. By applying the wave motion technologies that we have cultivated over the years to high-quality quartz crystals, we have provided numerous products and contributed to society. Based on this recognition, we revised our Mission to "Wave Motion Tech Moves Our Future!" which we officially announced in September 2025.

We will continue to further enhance our technological capabilities in materials, processing, and design, as well as our manufacturing expertise. By providing wave motion-based solutions, we aim to contribute to the realization of a comfortable, safe, and secure future society.

Hiromi Katoh
Representative Director and President