The Path Toward Achieving Results Under Medium-term Management Plan JCU VISION 2035 —1^st stage—, and Realizing Our Long-term Vision

In the first year of JCU VISION 2035 —1^st stage—, net sales, operating profit, and profit attributable to owners of parent all reached record highs. This achievement gives me a tangible sense of the hard work of our employees and the support we have received from partner companies and customers. In February 2025, we decided to make upward revisions to our earnings forecast, enabling us to proactively communicate the stability and growth potential of our business to our investors.

Not being satisfied with these achievements, we will of course address remaining challenges with sincerity and further strengthen our foundation for growth. Despite ongoing uncertainties, we intend to steadily execute our medium-term management plan and achieve sustainable growth in both sales and profits. Rather than pursuing dramatic growth in the numbers, I want to achieve results that enable us to proudly declare “we did it!” in the final year of the plan.

The medium-term management plan serves as a guideline clarifying the Company’s direction, ensuring that all employees are on the same page and taking concrete actions.

After returning from my assignment in Thailand, I led the development of the Company’s first medium-term management plan as General Manager of the Corporate Strategy Office. Subsequently, I have been involved in formulating multiple medium-term management plans, and have engaged repeatedly in dialogues with staff both internally and outside the Company, all of which has led to our current long-term vision, JCU VISION 2035. My experience on the front lines in Thailand and with planning in the Corporate Strategy Office have also served as the basis for my own management decisions. In particular, my clear sense of duty to grow the electronic components field has also shaped the direction of our current strategy.

Performance Trends Targeted under JCU VISION 2035

With Electronic Components as a Growth Pillar, We Will Take on the Challenge of Refining Our Research Capabilities and Technological Foundation

Electronic components are positioned as the JCU Group’s growth pillar. Specifically, we are focusing on the development of new technologies for semiconductor package substrates and advanced semiconductor packaging. I believe our plating and etching technologies will play an even more important role as chiplets spread in line with advances in AI.

Our R&D Center supports these technologies. We are making focused investments in management resources—namely, people, materials, capital, and information—while promoting analytical equipment upgrades and personnel recruitment and development. Approximately 100 researchers are engaged in product development that goes beyond the laboratory to focus on markets.

To enhance our research capabilities, we are also promoting collaborations with universities and research institutions, including joint research with Tohoku University, Fukuoka University, and Taiwan’s Industrial Technology Research Institute (ITRI), as well as participating in d.lab (Center for System Design Research) led by the University of Tokyo. Additionally, we are strengthening initiatives originating on the front lines, including the introduction of high-performance analytical equipment based on researcher suggestions. Furthermore, by leveraging AI and materials informatics (MI), we are enhancing the speed and precision of R&D efforts, from fundamental research to raw materials and product development, and this scientifically grounded approach facilitates sustainable competitiveness.

In decorations and functions, we continue to address environmental regulations through initiatives such as developing hexavalent chromium-free and Per- and polyfluoroalkyl substances (PFAS)- free products, and expanding processes that contribute to reducing CO₂ emissions.

I expect researchers engaged in research and development to go beyond achieving immediate results and pursue ideas and actions that anticipate next-generation technological needs. In a rapidly changing market environment, I believe that the ability to create new value through flexible thinking and a scientific perspective will further strengthen the JCU Group’s technological foundation.

Strengthening Competitiveness Through a Global Supply System and Close Local Support

In Japan, we are making strategic investments with a view to decentralizing our production system and providing nextgeneration support. At the Kumamoto Facility, we plan to introduce the latest environmentally friendly equipment to save labor and eliminate wastewater, and will invest approximately 11.4 billion yen (excluding land acquisition costs), with trial production scheduled to commence in FY2026. This base will play an important role in terms of electronic components growth and environmental responsiveness.

At the same time, we are also accelerating global base enhancements, especially in Southeast Asia, where we are expanding our bases in Thailand, Malaysia, Vietnam, and Indonesia in anticipation of demand associated with China Plus One strategies. Through regional networks in India and other areas, we have established a supply system that can be called an “East-West corridor.” To meet local demand in Thailand, we are constructing a new factory at an investment of approximately 3.3 billion yen (including factory land acquisition costs), scheduled for completion in FY2027.

These developments are supported by customer service capabilities rooted in local communities. We work closely with local subsidiaries in China, Taiwan, and Southeast Asia to accurately ascertain needs in each market, including utilizing our Chinese network, to focus on local response capabilities while enhancing our competitiveness in global markets.

Taking on Challenges as “Unsung Heroes” Supporting the Future with Reliable Technologies

The JCU Group has long supported global manufacturing in areas that are not readily visible. Many products would not exist without our technologies, and the pride we take in being “unsung heroes” is the driving force behind our corporate activities and the very essence of our purpose.

To continue providing this value going forward, it is essential we anticipate change and continuously take on challenges. I tell our employees, “Rather than one step ahead, let’s think two steps ahead.” I believe that flexible thinking and the ability to envision the future from a strategic perspective are key to navigating these changing times. Each individual challenge will accumulate to become the driving force behind JCU Group competitiveness and sustainable growth.

The JCU Group will continue to aim for sustainable growth together with all its stakeholders. Even in less prominent fields, we will continue to leverage solid technologies and frontline capabilities, steadily advancing as a company that supports the world’s industrial infrastructure.