First of all, we would like to express our deepest sympathies to all those affected by The 2024 Noto Peninsula Earthquake that occurred in January this year. We sincerely hope for a recovery of the affected areas.

In appreciation of the ongoing support of the shareholders of PILOT Corporation (the “Company”), we are pleased to present our 2024 interim business report in English.

During the first six months of the current fiscal year, the writing instrument market has finally started to show signs of general recovery, particularly in Japan, the United States, and emerging countries. Sales grew steadily, reflecting gradually improving conditions in Europe, which has been heavily affected by rising prices, and in China. In addition, the depreciation of the yen served as a tailwind for the Company and its consolidated subsidiaries (the “Group”), which have many manufacturing bases in Japan. On the other hand, costs are increasing due to various soaring costs such as raw materials, labor, logistics, and other costs, as well as aggressive capital investments and human resource investments for future growth.

Appointed as Representative Director & President on March 28, 2024, I will further drive the various measures of the 2022-2024 Medium-Term Management Plan implemented by former president, Shu Itoh, for future growth. We must accelerate the pace of management decision to respond to rapid changes in business conditions surrounding the Company. In an era of uncertainty, we must take on new challenges while exploring the various possibilities. We will also strive to maximize our corporate value faster than ever before without fearing change, while we respect our over 100-year tradition.

Now, in our core stationery business, we are striving to establish a future foundation, by actively investing for growth. For instance, we are preparing sales networks in emerging markets such as India and the ASEAN regions, which are expected to grow into large markets in the future. We are also reorganizing production bases in Japan and overseas in anticipation of future sales expansion. At the same time, we are steadily strengthening the corporate structure. To be specific, we are promoting non-writing instrument businesses towards realizing the 2030 Vision of PILOT Group, a medium- to longterm vision that we formulated in 2023. In addition, we are improving multiple areas including our production structure, information systems, and human resources policy. We will continue to maintain flexibility in response to ever-changing markets.

Under PILOT Group’s purpose statement, Our Creations Inspire Creativity, we will continue to improve corporate value and strive to meet your expectations. In closing, we sincerely ask shareholders for their continued support.

September 2024

Fumio Fujisaki
Representative Director & President