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To Our Shareholders

Message from Management
Were excited about the new value creation prospects offered by the all new OPTEX GROUP
Looking Back on OPTEXs History
President Toru Kobayashi
Toru Kobayashi
Chairman and CEO
OPTEX GROUP Co., Ltd.

In January 2017, the OPTEX GROUP transitioned to a holding company structure with OPTEX Co., Ltd., OPTEX FA Co., Ltd., CCS Inc. and other subsidiaries held under the holding company called OPTEX GROUP Co., Ltd. as operating companies. I was appointed Chairman of OPTEX GROUP Co., Ltd.


OPTEX began in May 1979 as a venture company started by three engineers. Over the years we have created revolutionary new technologies and products, such as the worlds first far-infrared automatic door sensors, while expanding our businesses by boldly tackling new challenges in unknown fields. In our seventh year in operation we established our three-pronged business structure focused on security sensors, automatic door sensors, and factory automation. The venturesome spirit that defined our early years helped us to quickly create a framework for success as a corporation.


In 1989, we began a full-fledged global expansion of our operations through the establishment of a joint venture company with SICK AG of Germany and in 1991 we had our initial public offering, which was a goal of ours since the company was first founded. In 2005, we set up our own plant in China, transitioning to a manufacturer both in name and in reality as well as reinforcing our earnings structure to withstand forex volatility. Later, we made it through some very challenging times, including the collapse of the bubble economy and subsequent super appreciation of the yen and the Global Financial Crisis following the bankruptcy of Lehman Brothers. Today, we continue to build on this momentum as the company grows. Given this history, I believe our transition to a holding company structure represents a major event and milestone for us.

 
Start of a Second Beginning

The OPTEX GROUP has expanded business operations into various fields under the slogan number one in global niche markets, realizing continued growth as a group of companies with highly unique business operations. The key to our future growth will be the extent to which we can increase these types of unique business operations.


Our ability to establish robust governance across the entire group is an essential ingredient. We will optimize management and decision making across the group to unite our operations that span a variety of different products, customers and business models. At the same time, we will create an organizational climate in which each operating company can focus on its business at hand. This transition to a holding company structure was discussed extensively by management and represents the best opportunity for us to build a highly balanced governance structure.


I feel that this transition represents the start of a second beginning for the OPTEX GROUP. Our new executive management team, including President Oguni, each excel at decisiveness and instruction. Under their leadership, we will set out on a path toward new growth by instilling a venturesome spirit in each of our employees and creating innovative technologies, products and services. The new OPTEX GROUP will be bringing you a number of exciting developments in the future.

 
Message from the President of OPTEX GROUP
We will aim to create new businesses by harnessing the synergies of the new OPTEX GROUP
Fostering an Organizational Climate Where Individual Subsidiaries can Focus on Their Respective Businesses
Isamu Oguni President and COO OPTEX GROUP Co., Ltd. CEO OPTEX FA Co., Ltd.
Isamu Oguni
President and COO
OPTEX GROUP Co., Ltd.

My name is Isamu Oguni and I was appointed President of OPTEX GROUP Co., Ltd.


My first job at OPTEX involved sales and marketing of our worlds first infrared automatic door sensors. Later, I was placed in charge of security products. After the spin-off of OPTEX FA Co., Ltd. in 2002 I was at a slight distance to the rest of the group, but I did manage to always keep the latest trends involving the OPTEX GROUP in mind. I feel the pressure that comes with being in charge of the groups management, but I have a clear vision of what to do, based on the many in-depth discussions about our vision Ive had with Chairman Kobayashi.


One of the missions that OPTEX GROUP Co., Ltd. maintains within our new holding company structure is to provide support so that each operating company can focus on their respective business. Indirect operations such as corporate planning, public relations & investor, IT systems, internal auditing, legal affairs, intellectual property rights, accounting and finance will be the responsibility of OPTEX GROUP Co., Ltd., which will help to heighten the business efficiencies of the whole group.

 
To Become a Corporate Group Filled with a Venturesome Spirit

Another mission is the creation of new synergies within the group. A prerequisite for such synergies is fostering a sense of unity among all of our operating companies. A group of companies with differing histories and cultures, not to mention products and customers, must share a common identity as colleagues and family while accepting each others differences. The key word phrase for such efforts is a to become a corporate group filled with a venturesome spirit. This phrase represents the core tenant of our Group Vision, so now we will work toward sharing a commitment to tackle challenges with a positive attitude unafraid of failure. As part of this, we have held workshops every month as a way to identify challenges and network among those persons in charge of purchasing, development, manufacturing, sales, sales promotion, etc. at each operating company. These workshops have helped to steadily advance mutual understanding. OPTEX GROUP Co., Ltd. will take over these workshops going forward in an effort to create various synergies by adding an element of group-wide management to the mix.


I am also serving concurrently as President of OPTEX FA Co., Ltd. These group-wide synergies will first materialize at OPTEX FA and CCS Inc. Using the sales channels of CCS, a global leader in LED lighting systems for image inspections, we have already increased sales of OPTEX FAs high value-added sensors overseas, and looking forward, this should give rise to synergies in purchasing and development, too.


I hope to use these synergies as best practices to be shown to our other operating companies so that they too will work toward generating greater group-wide synergies. This competition and aggressive stance toward making one another better will help us to unlock further growth.

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