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While a company carries out its business activities, I think that it must be mindful not only of its customers but also of employees, business partners, shareholders, local communities, governments, as well as other various stakeholders in order to build better relationships with them. Currently, as overseas sales account for 73% of our net sales, the Tokyo Seimitsu Group has a network of bases in various countries and regions, including the Americas, Europe, East Asia, and Southeast Asia, and expands its business as it connects with stakeholders around the world on a daily basis. Under these circumstances, I am increasingly convinced about the importance of creating relationships with all our stakeholders from a standpoint of fairness and impartiality.
At the same time, we must also respond to global environmental changes, including climate change. With the expansion of international frameworks, such as the Paris Agreement and the SDGs, the Tokyo Seimitsu Group is also carrying out initiatives in order to fulfill its responsibility of contributing to the realization of a sustainable society.
In light of these circumstances, our Group has defined “efforts to address environmental issues,” “earning the trust of society,” “respect for human rights,” “human resource development,” “participation in and contribution to local communities,” and “building and running a fair, transparent, and efficient corporate governance system” as important short- and medium-term initiatives which have been clarified in 2021 through our Basic Sustainability Policy.

“Gaging the future with Metrology, Creating the future with Semiconductors,” the Purpose of the Tokyo Seimitsu Group, expresses our commitment to contribute to society through our business model of supporting our customers' manufacturing activities, uncovering their needs, and solving various technical issues based on our core precision measuring technologies. We are able to create newly added value by combining the technologies from our Precision Measuring Instrument Business, which manufactures equipment designed to measure things, and Semiconductor Manufacturing Equipment Business, which manufactures semiconductors.
For example, in EVs, our semiconductor manufacturing equipment plays an essential role in the popularization of high-performance devices, such as MCUs (Micro Controller Units) and power semiconductors, by measuring mechanical components with precision measuring instruments that are more precise than ever before to ensure that the devices perform as they were designed. Accordingly, having recognized that our products play an extremely important role in helping to solve the social issues we are currently facing, we are in the process of investing in R&D and expanding our production scale in order to meet expectations.
Over the long term, I think the fusion of virtual and physical spaces will continue to progress, which will make the world become more sustainable and prosperous. As a corporate entity that is always committed to building a “future full of dreams,” I would like to see the Tokyo Seimitsu Group continue to work alongside our stakeholders to see those dreams become a reality.

September 2023

In August 2021, the Tokyo Seimitsu Group launched the TCFD response project in order to contribute to solving the issue of climate change as a member of society. In March 2022, the Group announced its support for the TCFD's recommendations. Considering the realization of a decarbonized society through our businesses and products to be the most important activity that contributes to sustainable development, we are moving forward with R&D investment and expanding our production scale.
At the same time, reducing the CO2 emissions generated from our business activities is a strategic priority. By 2030, we aim to reduce our CO2 emissions by 50% compared with fiscal 2018 levels, and are working to achieve that target through efforts such as making an effort to determine total CO2 emissions through Life Cycle Assessment (LCA) of products.

We are currently entering a phase in which demand for products from both our Precision Measuring Instrument Business and Semiconductor Manufacturing Equipment Business will increase significantly due to decarbonization efforts.
In the Semiconductor Manufacturing Equipment Business, demand for high-precision semiconductor devices, electronic components, and power semiconductors is increasing due to the advancement of autonomous driving and a networked society, and materials other than silicon, such as silicon carbide, are starting to be used in power semiconductors. In recent years, developed countries have strengthened semiconductor production as a national strategy, and although it may change the geopolitical balance of power in the future, the semiconductor market itself is sure to expand.
In the Precision Measuring Instrument Business, there is growing demand for instruments capable of performing measurements to check the workmanship of goods and evaluating the performance of EV batteries. Such measurement-related demand is due to the increasing popularity of mechanical parts found in EVs, which require an even higher level of high-precision machining than those found in internal combustion engine vehicles.
In addition, manufacturing is becoming increasingly automated in anticipation of a decrease in the global workforce. I believe that further progress in automation, where robots play an active role in factories, etc., will be a growth opportunity for our Company in the medium to long term.
We are currently implementing our Mid-term Management Plan, which was started in fiscal 2022. Business performance during the first year of the plan reached all-time highs due to expanding demand for semiconductor manufacturing equipment. In addition, the Hanno Plant was completed in July 2023 to expand the production capacity necessary to achieve the quantitative targets for fiscal 2024, the final year of the plan. Through these initiatives, we will contribute to a sustainable society. Furthermore, from the next Mid-term Management Plan (which will start in fiscal 2025) onward, we intend to further strengthen our sustainability activities, not only in terms of quantitative results, so that Tokyo Seimitsu’s continued involvement in these initiatives will be recognized as a contribution to a sustainable society.

September 2023