Message from the President

President Hiroya Uyemura President Hiroya Uyemura

Thank you for your continued support of Uyemura.

I would now like to make a few comments about our operating environment before reporting on Uyemura’s results for the first half of the 96th fiscal term (April 1, 2023 – September 30, 2023).

During the first half, the Japanese economy was supported by the recovery of social and economic activity from the pandemic as the Japanese government downgraded COVID-19 to a Category 5 infectious disease. However, the outlook for the economy remains uncertain because of the Ukraine conflict and other sources of instability worldwide.

In the electronic device market, which is the Uyemura Group’s main market area, weakening demand for semiconductors and electronic components used in smartphones, tablets, PCs and at data centers that began in the previous fiscal year is having a severe impact on the business climate.

First half sales and earnings were lower than one year earlier. Sales remained firm for chemicals used in car electronics applications and for surface finishing machinery used for the production of semiconductors and electronic components. In the core category of chemicals for package PWBs, declining demand chiefly in the data center sector brought down sales significantly.

The outlook for the Japanese economy is expected to remain unclear because of the increasing number of conflicts worldwide, slowing economic growth in Europe and North America due to inflation and other reasons.

In the electronic device market, which is a core market sector for the Group, we expect more growth in the demand for components used in car electronics for applications like electric vehicles and autonomous driving systems. Furthermore, demand involving data centers will probably start recovering soon because of the large volume of capital expenditures in this sector along with the growing use of AI.

To achieve our goal of consistent growth in the 21st century, we will continue to use the collective strengths of our group for building a framework that can quickly adapt to changes in our business climate. We must be prepared to act with flexibility to unexpected events too. Accomplishing our goal will also require placing priority on innovation at the factory level to become even more competitive. We ask for your continued support. Thank you.

We ask for your continued support. Thank you.

November 2023