To Our Shareholders and Investors

During the fiscal year ended September 30, 2019, MJC Group focused on the activities intending to "boost competitiveness for quality and delivery by further promoting our QDCCSS, which will enable us to make further technology advancements and contribute to a more prosperous society" as envisioned in "MJC Future Vision" (formed and released in the fiscal year ended September 30, 2018), which shows how we are planning for the future.

However, the global economy remained uncertain because of some geopolitical issues such as US-China trade friction and United Kingdom's withdrawal from European Union, causing the economic slowdown especially in some manufacturing sectors like automobiles and electronics. Japanese economy showed stability in employment and personal income driven by labor shortage, but some business indicators were worsened over the influences by changing global affairs especially in manufacturing sectors.

In the semiconductor market, the demand for non-memory semiconductors was almost stable driven by increasing number of applications such as automotive device and industrial equipment. Meanwhile, the demand for memory semiconductors declined due to stagnant smartphone market and slowdown in data center investment. Despite the stable demand for both LCD and OLED, FPD market remained oversupplied because the Chinese manufactures continued to invest.

Given this situation, the MJC Group managed to show steady growth in memory-related sales by accommodating fluctuating demand with flexible lead times but non-memory-related sales failed to increase. The sales of TE segment also dipped due to the sluggish demand for semiconductor testers. I would like to conclude that this was a fiscal year when we found both achievements and challenges.

As a result, in the consolidated fiscal year ended September 30, 2019, net sales were ¥27,954 million (down 7.1% year on year), operating income was ¥1,466 million (down 54.1%), ordinary income was ¥1,626 million (down 52.7%), and net income attributable to owners of the parent was ¥¥879 million (down 64.7%).

MJC Group will continue to implement the key measures to realize the ideal company described in "MJC Future Vision".

I sincerely hope to have your ongoing support.

December 2019
Masayoshi Hasegawa
Masayoshi Hasegawa
President & CEO

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