TO OUR SHAREHOLDERS

Thank you all very much for your continued support and patronage.
Allow me to use this opportunity to report on the Group's 64th 1st Half Financial Report, which covers from April 1st, 2018 to March 31th, 2019.

President
sign_Ryukichi Iwakiri

Overview of the Group's performance

The financial results for this consolidated fiscal year exceeded the results of the previous year mainly due to a positive performance in the Manufacturing segment, where businesses dealing with pen nibs and cosmetic parts saw strong sales for pen nib parts, their main product. Other factors that contributed to the positive results include steady growth in medical information-related businesses and businesses involving medical and dental supplies in the Healthcare segment, and an increase in the number of consolidated subsidiaries handling small-amount short-term insurance businesses in the Senior and Lifestyle segment.
On the other hand, operating profit decreased mainly because we posted an impairment loss of system assets caused by a change in the development direction of our remote diagnostic imaging interpretation businesses as well as an impairment loss of tangible fixed assets in our hydroponics business. Profit for the year, attributed to owners of the parent company, decreased compared to the previous year after the addition of deferred tax assets from the previous year.
As a result, we recorded sales profits of 63,924 million yen (14.1% YoY increase) while operating profit stood at 5,538 million yen (7.0% YoY decrease), profit before tax was 5,439 million yen (10.7% YoY decrease) and profit attributable to the parent company was 2,953 million yen (66.9% YoY decrease).

We hope you will continue to support us in the coming years as well.

June 2019