Region- and product-specific initiatives under the Medium-Term Management Plan “HiPES-2023 (Revised)”

「In recent years, semiconductor production sites, including those of the company's major customers, have tended to become dispersed worldwide rather than remaining concentrated in East Asia. Accordingly, in addition to strengthening its US subsidiary, the Group newly established a local entity in Singapore and began sales activities to expand sales in Southeast Asia, where continued semiconductor investment is expected. It is also strengthening its sales capabilities and seeking to expand its operating area beyond Southeast Asia, including by securing an order for water treatment equipment for India's first semiconductor manufacturing plant, operated by TATA SEMICONDUCTOR MANUFACTURING PRIVATE LIMITED.」

「In the previous consolidated fiscal year, as part of the sales strategy for achieving the medium-term management plan “TTT-26” and to address the decentralization of semiconductor manufacturing sites, the Company established Nomura Micro Science Singapore Pte. Ltd. and included it in the scope of consolidation. Accordingly, “Other” was added as a new reportable segment. Operations began in the current interim consolidated accounting period, and sales of ¥6 million were recorded from orders for maintenance services and consumables. However, the Company was unable to absorb establishment costs and other expenses, resulting in an operating loss of ¥13 million.」

「The medium-term management plan identifies responding to the decentralization of semiconductor manufacturing sites as a sales strategy. By focusing on expanding sales in Southeast Asia, India and other markets, including through the establishment of new local entities, the company was able to secure orders from new customers.」

「To realize this management vision, the Group will promote stronger sales capabilities, engineering process reform, acceleration of R&D SMART UP 3, stronger human capital, and initiatives addressing environmental issues.」

「Against this backdrop, the Group formulated the medium-term management plan Together Toward Transformation-26 (TTT-26) and is implementing various measures to achieve its targets. It has pursued proactive sales activities in Japan and overseas for its core domains, the semiconductor and pharmaceutical industries, worked to improve profitability through engineering process reform, and sought to realize sustainability-oriented management.」

「The company is implementing the medium-term management plan "HiPES-2023 (Revision)," announced in 2021. To achieve its targets, it is focusing on strengthening competitiveness and expanding orders in Asia, particularly Japan, South Korea, China and Taiwan, differentiating itself through rapid and attentive responses, and accurately addressing environmental and other needs. Its initiatives are: ① Japan: securing stable earnings through proactive orders for semiconductor- and pharmaceutical-related equipment and expanded maintenance services; ② South Korea: securing orders for leading-edge semiconductor investment and addressing the FPD market, where investment is expected to resume; ③ China and Taiwan: focusing on orders with an emphasis on profitability, primarily from semiconductor-related companies; ④ strengthening proposals and order-taking activities for UF membrane-based water-for-injection production systems for the pharmaceutical industry; and ⑤ continuing cost reductions and expense controls.」