TO OUR SHAREHOLDERSDear Shareholders: During the scal year ended September 30, 2018 (from October 1, 2017 through September 30, 2018), Japan’s economy generally traced a gradual recovery trend as capital investment rose backed by improved corporate earnings. Nevertheless, the economic outlook became increasingly opaque towards the end of the term due to concerns about the impacts of global trade disputes and policy trends.Given these circumstances, our Group strove to expand net sales and earnings by promoting basic and applied research leveraging our proprietary photonics technologies, as well as continuing to move forward with development of high-value-added products that addressed customers’ needs and to make capital investments aimed at boosting production capacity.As a result, we closed the scal year 2018 with net sales of JPY 144,338 million, up by JPY 13,842 million (10.6%), thanks to higher domestic sales and overseas sales. From an earnings perspective as well, operating income was JPY 27,263 million, up by JPY 4,414 million (19.3%) from the previous year and prot attributable to owners of parent was JPY 21,222 million, up by JPY 3,444 million (19.4%) from the previous year, reaching a record high respectively.4


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