Nihon Dempa Kogyo Co., Ltd. (NDK) was established in 1948 with a founding philosophy of "contributing to the prosperity of society and world peace through our service to customers." This philosophy is founded on a belief that providing reliable, high-quality and attractive products at an appropriate price can be useful to customers and can, by extension, help society prosper. Moreover, the founder believed that enhancing communication among people through accurate information would promote international understanding as a cornerstone of lasting peace. This belief was generated by the founder, Masamichi Takeuchi, from his experiences of the war. Since its foundation, as a company specializing in the manufacturing of quartz crystal devices for frequency control, selection, and detection, NDK has created various frequencies and has helped electronics develop from inside the devices.

Quartz crystal devices primarily had applications in clocks and in the communications equipment field. Subsequently, given that microcontrollers have come to be used for so many applications, crystal devices are now used across a wide range of fields, from digital appliances through automobiles to smartphones. Today, crystal devices are expected to play an indispensable role in the 5G mobile network, which is expected to enjoy widespread use in the near future. In the automotive field, crystal devices are also projected to assume critical importance in the spread of electric vehicles and the development of self-driving technology. Since frequencies are essential elements in the data communication and clock oscillators used in diverse applications, we set the goal of the Group vision as "Creating the Future of Digital Society through Frequencies" in our "Vision 2030," announced last year, to clarify that NDK will remain a company that supplies devices that produce accurate and stable frequencies into the future.

NDK has positioned automotive electronics and 5G areas in which it can demonstrate its strengths, as core businesses of its existing domain. Also, we are engaging actively in research and development as an initiative for the post-5G era.

Shifting from a period of balanced growth phase (balancing growth strategies with financial soundness) under the previous Medium-Term Management Plan aimed at improving the Company's business structure, NDK has moved to preparatory steps for sustainable growth with an eye towards 2030 in the fiscal year ended March 2023 and first year of the current Medium-Term Management Plan that covers the three-year period from the fiscal year ended March 31, 2023, to the fiscal year ending March 31, 2025. Results throughout the fiscal year ended March 31, 2023, were subsequently impacted by the Zero-Covid policies implemented to combat the spread of COVID-19 in China. As a result, business conditions throughout the fiscal year under review were not always positive. Despite this adverse environment in the fiscal year, net sales climbed 15% compared with the previous fiscal year. NDK also succeeded to transform to a business structure that is capable to secure a double-digit operating income ratio. In the fiscal year ended March 31, 2024, in order to ensure the Company's medium- to long-term growth, NDK will work to build a business foundation utilizing DX. NDK will also undertake investments, including the replacement of high-speed production lines, renewal of aging facilities, and renovation/repair of buildings to strengthen its production base. In order to respond to the need for higher frequencies in the era of 5G, we will also invest in photolithography technology to further enhance our competitive edge, and plan to invest in increased production in anticipation of the medium- to long-term growth in demand for automotive electronics.

NDK is committed to implementing its Medium-Term Management Plan and steadily improving corporate value. NDK will provide highly reliable and high-precision products required in the 5G era and continue to contribute to the creation of a safe, secure, and comfortable society.

Hiromi Katoh
Representative Director and President