During the fiscal year under review, uncertainty in the economic outlook increased further due to rising energy prices and disruptions to supply chains resulting from heightened geopolitical risks.

In the semiconductor industry, our primary market, demand for semiconductors used in AI data centers continued to increase driven by robust investment in the deployment and widespread adoption of agentic AI. Against this market backdrop, strong demand for cutting-edge semiconductors, such as CPUs, GPUs and HBM (high-bandwidth memory), drove market growth.

Under these circumstances, our orders in the fiscal year ended June 30, 2026, recovered from 105,226 million yen in the previous fiscal year to 237,504 million yen. However, our consolidated net sales for the fiscal year ended June 30, 2026, totaled 230,485 million yen (down 8.3% year-on-year), reflecting the level of orders received in the previous fiscal year.

By product segment, semiconductor related products accounted for 168,090 million yen (down 17.2% year-on-year), other products for 3,747 million yen (down 32.5% year-on-year), and services for 58,646 million yen (up 36.5% year-on-year).

As for consolidated income for the fiscal year, we recorded 105,259 million yen in operating income (down 14.3% year-on-year), 107,895 million yen in ordinary income (down 9.7% year-on-year), and 77,485 million yen in net income attributable to owners of parent (down 8.5% year-on-year).

Our basic policy concerning profit distribution is to flexibly pay dividends based on performance, with a consolidated dividend payout ratio of 35% being the guideline.

Our policy concerning retained earnings is to use them effectively for new technology/product R&D, for infrastructure investment and operating capital in line with business growth, and for hiring good talent so that we can further improve the company's quality and establish a solid foundation for long-term sustainable growth.
Based on this policy, we have decided to pay a year-end dividend of 197 yen per share for the fiscal year under review. As a result, the annual dividend will be 329 yen per share, unchanged from the previous fiscal year, representing a consolidated dividend payout ratio of 38.1%.

In FY2026, we introduced three new products in the mask inspection field and one new product in the microscopy field.

The first product in the mask inspection field is the ACTIS A200HiT Series, an actinic EUV patterned mask inspection system. Through the optimization of its optical design and a complete redesign of the inspection system, the ACTIS A200HiT achieves inspection speeds three times faster than its predecessor, the ACTIS A150, significantly improving throughput. The system delivers the sensitivity required to detect all printable defects occurring in wafer fabrication processes and is used for both incoming inspection and periodic quality monitoring of EUV masks. By reducing mask inspection costs through higher productivity, the product contributes to improved manufacturing yields.

The second product is the MAGICS M9750/M9751 Series, a mask blanks inspection and review system. As EUV mask technology continues to advance, higher inspection performance and functionality are increasingly required in mask blanks inspection. Building on the core technologies of the MAGICS Series, the M9750/M9751 features a redesigned inspection optical system and high-speed inspection circuitry derived from our mask pattern inspection platforms, resulting in significantly improved sensitivity to minute defects. In addition, the incorporation of a high-precision X-Y stage enables the output of defect coordinates required for EUV mask manufacturing processes.

The third product is the MATRICS X712 Series mask inspection system. Design nodes ranging from 90nm to 250nm and above continue to be widely used across diverse applications, including logic, analog, discrete, and power devices. As a result, customers require inspection systems that provide high sensitivity, short inspection times, and low operating costs. Developed on the foundation of the optical, image-processing, and user-interface technologies cultivated through the MATRICS Series, the X712 uses a 266nm laser and dedicated algorithms to support up to three inspection modes, DDB, DD, and SD, which can be combined according to customer requirements. This enables efficient inspection while achieving industry-leading throughput, with inspection times as short as 22 minutes per mask.

In the microscopy field, we released the OPTELICS UXM, an ultrashort-pulse laser excitation microscope. This system enables non-destructive evaluation of the three-dimensional structure of internal defects within wide-bandgap (WBG) compound-semiconductor wafers. As the quality requirements for WBG wafers continue to increase, demand is growing for analytical tools capable of identifying defect morphology and determining root causes. By providing detailed defect analysis that can be fed back into manufacturing processes, the OPTELICS UXM contributes to process optimization, improved production efficiency, and higher yields in WBG wafer manufacturing.

The single most important factor driving today’s semiconductor market is AI. AI is no longer limited to specific industries; its applications are rapidly expanding across healthcare, finance, manufacturing, automotive, and many other sectors. As a result, AI is increasingly becoming a critical social infrastructure that supports productivity improvements and the creation of new value.

The expansion of AI is driving massive investments by hyperscalers in data centers and AI-related infrastructure. In addition to logic semiconductors such as CPUs and GPUs that perform data processing, demand is increasing rapidly for memory semiconductors, including DRAM, HBM, and NAND, which store data either temporarily or permanently. Supported by these AI-driven trends, our customers expanded their investment plans, resulting in a substantial recovery in orders received during the fiscal year to 237.5 billion yen from 105.2 billion yen in the previous year.

AI technology itself continues to evolve. The industry has progressed from generative AI, which creates new content such as text, images, audio, and video from large datasets, to agentic AI, which can independently plan actions, gather information, and execute tasks to achieve specific objectives. Looking further ahead, we also expect significant growth in edge AI applications, including autonomous driving systems and industrial robots, where data processing is performed directly on local devices rather than in the cloud.

Semiconductors that support these advances will require even higher levels of performance through continued innovation in miniaturization, new materials, and new device structures. As semiconductor technologies continue to evolve, we believe there will be significant medium- to long-term growth opportunities for our company by quickly identifying our customers’ emerging challenges and needs and providing products and services that address them.

To earn even greater trust from our customers and support future business expansion, we remain committed to providing sincere, timely, and responsive support. Going forward, we will continue to adapt flexibly to changes in the business environment while steadily executing our Mid-Term Business Plan, with the goal of enhancing customer satisfaction and increasing corporate value over the medium to long term.

Thank you.