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9/10 Business environment and outlooks for FY2021/3

In this, the final slide, I would like to explain the business environment and outlook for the fiscal year ending in March 2021. ● As we are currently unable to predict when the coronavirus outbreak will subside, under the Group’s BCP all EMS factories other than those in Mexico and India and our sales offices in Japan and overseas are functioning without any obstacles. ● While the supply chain seems tight for some products on the procurement side, it is generally recovering; however, end-demand is a serious issue. Production of automobiles is down sharply in Japan and overseas, and operations continue to be suspended at some factories. Electronic equipment manufacturers face the same difficult conditions. Companies have already begun to release their earnings statements, and according to newspaper reports, 60% of these companies state that their earnings forecasts are undecided. ● Accordingly, we have also left our earnings forecasts for the fiscal year ending in March 2021 undecided at this point. We cannot release earnings forecasts to which we can commit. However, no company can operate without business plans, so we have developed internal plans even though we do not have a firm grasp on the impact of the coronavirus outbreak. In general, we expect sales and operating income to decline as a result of the loss of major commercial rights from Cypress and others and the impact of the pandemic, but we expect higher net income due to the posting of 8.2 billion yen in gains on negative goodwill. ● I believe that it will take at least one year, and possibly as long as three years, for the coronavirus outbreak to subside, and so I am fully aware of the need to manage the company with a strong hand. First, I would like to make sure we retain sufficient cash on hand to prepare us for unforeseen circumstances. I also want to begin the Group’s structural reforms in anticipation of a post-coronavirus world, and for precisely this reason we must prioritize our employees’ safety and their jobs in the near term. Sincerely embracing this approach, I will manage the company in the fiscal year ending in March 2021, and I ask for your continued support this year.