Akira HirumaPresident and CEODecember 20, 2018With regard to the business environment surrounding our Group, the economy uctuated around a gradual recovery trend, with an increase in capital investment against the backdrop of improved corporate earnings. Nevertheless, we recognize that the economic outlook is highly uncertain and unpredictable, clouded by factors that include the political trends in Europe and the United States and the rising global trade tensions.Given such circumstances, the scope of application for the photonics technologies pursued by our Group is continuing to expand on a worldwide scale. With the recent sophistication of medical equipment and downsizing/miniaturization of electronic components based on semiconductors, demands for products that our Company offers can be seen to be spreading widely, and these products have become an important key enabling technology for the advancement of state-of-the-art technologies in various elds.Meanwhile, global competition in the eld of photonics technologies is intensifying every year, particularly abroad. As the Group, in order to survive such erce competition, we will strengthen the organization to respond rapidly and accurately to the needs of our global customers. From a medium to long-term perspective, under the philosophy of aiming ourselves to create new industries by using photonics technology and to pursue the world’s greatest monozukuri manufacturing, we will strive to maintain our advantages in the Group’s proprietary photonics technologies, press forward with aggressive research and development investments for the expansion of our business, and further strengthen our global competitiveness. While ensuring that core technologies such as optical sensors that form the basis of our business growth are enhanced, we will strengthen our internal organization in order to pursue initiatives such as investments aimed at opening up new markets for the future and HR development.As the Group, we will live up to our shareholders’ expectations, and contribute to the development of industry and society, by expanding our business domain and creating a sustainable, stable and strong earnings organization through the introduction of high-value-added products unrivaled by any other company to the market, while never forgetting the spirit of challenging the unknown that we have continued to pursue from the Company’s conception.We look forward to continuing to receive your unwavering support and encouragement in the future.Sincerely, 5Annual Report 2018


page 7