Strengthening Global Sales Capabilities and Overseas Business Expansion

「In overseas markets, the Company is promoting sales activities in China, Thailand and Vietnam in cooperation with its existing distributor, World Wide Semi-Conductor Equipment Co. Going forward, it will target semiconductor-related markets mainly in East Asia, exhibit at trade shows in Taiwan and China, strengthen cooperation with local trading companies in Taiwan, and expand business opportunities through demonstrations of actual equipment at its Taiwanese subsidiary, Taiwan Ying Shi Co., Ltd.」

「During the first half of the current interim period, the Company secured orders from customers in Japan and overseas for its core semiconductor package substrate inspection equipment and roll-to-roll inspection equipment. Orders totaled ¥1,073 million, down 3.9% year on year, while the order backlog at the end of the interim period was ¥2,121 million, up 180.4%. In addition, as disclosed in the notice dated 14 November 2025 regarding a large order, the Company secured a large order for roll-to-roll inspection equipment from an overseas customer, steadily building up projects scheduled to be recognized as revenue from the fourth quarter of the current fiscal year through the fiscal year ending April 2027.」

「The Company is currently strengthening overseas expansion and building a new sales network centered on its Taiwanese subsidiary, Taiwan Ying Shi Co., Ltd., while devoting more attention than before to securing overseas orders. It also exhibited at HKPCA Show 2024, held in Shenzhen, China, from 4 to 6 December 2024, through Hong Kong WWG (World Wide Semi-Conductor Equipment Co., Ltd.; 香港公司環球集團), with which it has an agency agreement. Many companies from mainland China, Taiwan and Hong Kong exhibited, and the Company received inquiries leading to business discussions, making it a productive 3-day event.」

「In overseas markets, the number of business discussions has gradually increased through sales activities by Taiwan's TKK, the Company's longstanding distributor, and World Wide Semi-Conductor Equipment Co., which entered into an agency agreement in August 2022 to strengthen sales in China. Going forward, the Company will target the growing semiconductor-related markets of East Asia, strengthen overseas sales activities by installing a demonstration unit at its Taiwan subsidiary and stepping up business discussions, and exhibiting at trade shows in Southeast Asia, particularly Thailand and Vietnam.」

「In the first nine months of the current fiscal year, the Company secured orders from customers in Japan and overseas for its core roll-to-roll inspection equipment and high-performance flatbed inspection equipment. Orders totaled ¥978 million, down 13.4% year on year, while the order backlog at the end of the third quarter was ¥1,729 million, up 18.1%. As part of its promotional activities, the Company exhibited at the 38th NEPCON JAPAN - Electronics Development and Assembly Expo -, held at Tokyo Big Sight from 24 to 26 January 2024 and organized by RX Japan Corporation. Many visitors from Japan and overseas attended, and the Company received inquiries leading to business discussions with multiple customers, making it an active 3-day event.」

「The Company exhibited at JPCA Show 2023, held at Tokyo Big Sight from 31 May to 2 June 2023 and organized by the Japan Electronics Packaging and Circuits Association. With restrictions related to COVID-19 eased, many visitors from Japan and overseas attended this year's show, and the Company received many inquiries leading to business discussions. The event concluded successfully.」

「In August 2022, the Company entered into an agency agreement with World Wide Semi-Conductor Equipment Co. and strengthened its sales and service structure in China. Going forward, while coordinating with its local subsidiary in Taiwan, the Company will establish a foundation for its business in China by providing reciprocal engineer dispatches and operational training to deliver a level of service comparable to that in Japan. It will also pursue business collaboration with business partners that have networks in Europe and North America, while advancing the globalization of its business with a view to entering these markets in the future.」

「In the first nine months of the current fiscal year, the Company secured orders from customers in Japan and overseas, mainly for its core roll-to-roll inspection equipment and high-performance flatbed inspection equipment. Orders totaled ¥1,130 million, up 5.0% year on year, and the order backlog at the end of the third quarter was ¥1,464 million, up 26.7%.」

「As disclosed in the notice dated 1 August 2022 regarding the agency agreement with W/W, the Company entered into an agency agreement for sales in China with Hong Kong-based World Wide Semi-Conductor Equipment Co., Ltd. (香港公司環球集團). In October of that year, it secured an order for a standard roll-to-roll inspection system to be used by the company as a demonstration unit for sales promotion. As sales of this equipment will serve as a foothold for sales activities in the Chinese market, the Company expects it to contribute to further sales growth.」

「In the first quarter of the current fiscal year, amid continued strong conditions in the semiconductor market, the Company secured orders mainly from domestic customers for each of its core products: roll-to-roll inspection equipment, high-performance flatbed inspection equipment and inline inspection equipment. Orders totaled ¥498 million, up 158.5% year on year, and the order backlog at the end of the first quarter reached a record ¥1,749 million, up 70.7%.」

「During the fiscal year, as disclosed in the notices dated 5 January 2022 and 26 April 2022 regarding large orders, the Company secured large orders for its core roll-to-roll inspection equipment, high-performance flatbed inspection equipment and inline inspection equipment, following business discussions conducted in Japan and overseas. Orders totaled ¥1,849 million, up 13.4% year on year, and the order backlog at the end of the fiscal year was ¥1,373 million, up 6.8%.」

「In the first nine months of the current fiscal year, as disclosed in the notice dated 5 January 2022 regarding a large order, the Company secured large orders for its core roll-to-roll inspection equipment and high-performance flatbed inspection equipment, for which business discussions had been under way in Japan and overseas. Orders totaled ¥1,076 million, up 63.2% year on year, and the order backlog at the end of the third quarter was ¥1,156 million, up 95.1%.」

「In the first half of the current fiscal year, inquiries and business discussions were strong in Japan, but overseas order activity slowed due to the continued impact of travel restrictions and other factors. Orders totaled ¥214 million, down 24.5% year on year, and the order backlog at the end of the first half was ¥462 million, down 0.1%. As part of its promotional activities, the Company exhibited at JPCA Show 2021, held at Tokyo Big Sight from 27 to 29 October 2021.」

「We will continue to strengthen sales activities in Japan and overseas so that we can continue to secure orders, including for the automotive FPC inspection equipment described above.」

「On 12 April 2021, the Company transferred all shares of First EIE SA (Switzerland), which had been its consolidated subsidiary.」

「During the first nine months of the current fiscal year, the Company decided to transfer all shares of First EIE SA, its consolidated subsidiary in the precision substrate manufacturing equipment segment, to First EIE SA's CEO. Accordingly, the unamortized balance of goodwill of ¥120.396 million was recognized as an extraordinary loss through goodwill amortization.」

「In the first half of the current fiscal year, we mainly received orders from domestic customers for flatbed inspection equipment. Orders totaled ¥284 million, down 29.1% year on year, while the order backlog was ¥462 million, down 19.6%, both below the year-earlier levels. However, after the lifting of the state of emergency, order activity has been recovering, including the resumption of previously stalled business discussions with Chinese companies.」

「In the first quarter of the current fiscal year, we mainly received orders from domestic customers for flatbed inspection equipment. Orders totaled ¥128 million, down 42.1% year on year, while the order backlog was ¥420 million, down 49.3%, both below the year-earlier levels. However, after the lifting of the state of emergency, order activity showed signs of recovery, including the resumption of previously stalled business discussions with Chinese companies.」

「Going forward, the Company will use First EIE SA's sales network to develop a European sales and service base for its new roll-to-roll seamless laser direct-imaging exposure equipment.」

「Going forward, we will conduct sales activities aimed at securing orders, including exhibiting new products at trade shows in Japan and overseas, and will actively pursue this business so that it drives the Company's growth and becomes a major business pillar.」

「In the future, the Company plans to use First EIE SA's sales network as a European sales and service base for its inspection equipment.」

「Since FY2012, the Company has been pursuing overseas expansion in earnest. It has promoted stronger sales to customers in Taiwan and China and established a support structure in cooperation with distributors. In March 2015, it also brought Switzerland-based First EIE into the Group.」

「The additional shares acquired represented 38% of voting rights. As a result, the voting rights ratio after the acquisition became 89%. The Company acquired additional shares of First EIE SA held by non-controlling shareholders in order to capture synergies from expanding its overseas business.」

「During the first half of the current fiscal year, we worked to expand sales channels for WSI (Whole Slide Imaging, formerly known as the virtual slide system) and focused on securing orders, but the expansion of the sales market has not progressed as expected, and sales remained at a low level.」

「During the first quarter of the current fiscal year, we worked to expand sales channels for WSI (Whole Slide Imaging, formerly known as the virtual slide system) and focused on securing orders, but sales remained at a low level.」

「Given the large number of potential users and the importance of global-market sales to our growth strategy, it is essential to build cooperative relationships with sales companies that have strengths in the fields in which each of our group companies operates. Going forward, we will further strengthen coordination with these sales partners. For our Company and First EIE SA, we will focus on Asia, while for Terra Corporation we will actively expand operations in global markets, including Europe and the United States.」