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Management Message

In the fiscal year ended March 31, 2018, the UKC Group increased net sales thanks to favorable sales of semiconductors and electronic components business for overseas smartphones. Consolidated operating income, consolidated ordinary income, and consolidated net income attributable to owners of parent turned into the black because of a strip of the provision of allowance for doubtful accounts recorded at the subsidiaries in Hong Kong and Singapore in the previous fiscal year as well as a start of collection of those reserved receivables.
We set up and have worked hard on a project of reconstructing the internal control and strengthening corporate governance/compliance system as the top priority in the second half of the fiscal year 2017 to restore trust of shareholders, investors and other stakeholders.

In the electronics industry to which the UKC Group belongs, while the growth of smartphone market slows down, automobile- and industry-related market is expected to grow with evolutions of car electronics and automation, IoT (Internet of Things) and AI (Artificial Intelligence).
In the age of IoT/AI, handling Sony's CMOS image sensors as our main products which are indispensable for the electronic eyes of various applications such as automobile, medical product and industrial robot is our great advantage. In addition, we have a wide range of business lineups that is not limited to semiconductors and components business, as well as good relationships with many customers and suppliers based on long-established business results and trust.
Taking advantage of these strengths to the fullest extent, we aim for a customer-oriented distributor with cutting-edge technology by focusing on expanding high-value-added businesses such as EMS (Electronic Manufacturing Service) at our own factories and shifting to solution-oriented business.

Approved at the 9th ordinary general meeting of shareholders held on June 26, 2018, UKC evolved into a company with audit and supervisory committee system from a company with board of corporate auditors system. Audit and supervisory committee members with voting rights at the board of directors will audit the legality and validity about executions of operation by directors so that we can strengthen the supervisory function of the board of directors and enhance the corporate governance system.
In addition, we will strive to establish ghealthy corporate management" by utilizing lessons from the past, ensuring management transparency and soundness, strengthening the group compliance system, and carrying out thorough risk management.

We look forward to your continuing support for the years to come.

PRESIDENT@Nobuki Kurita

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