QA Summary (for institutional investors and analysts) for Q3 FY12/21
Q1: In what fields have there been a recovery in orders?
A1: We have worked to expand our customer base and final applications. The IoT field has beenexpanding. In the third quarter of 2021, orders for smartphones were sluggish, but customers arestarting to show signs of recovery in the fourth quarter of 2021. In particular, the possibility ofaccepting orders for new types of equipment (sputtering equipment, ALD equipment, etchingequipment, etc.) is expanding mainly for wide-angle lenses, high-resolution lenses, casing
decoration, etc.
Q2: How do you think your output is volatile on a quarterly basis? And what is the impact of low 3Q
output on future profitability?
A2: Production planning according to the delivery schedule with the customer resulted in lower
output in the 3rd quarter. We do not believe this will have a major impact on profitability.
Q3: Is there any progress in the construction of the third building of the Shanghai Plant and in thesearch for R&D facilities in Japan?
A3: We are looking for R&D facilities in Japan. We do not plan to invest by the end of the year, but
this is an important initiative for us and is in progress. The third building in Shanghai has almost
been completed and is awaiting approval by the Chinese government.
Q4: What is the spread of the semiconductor optical fusion business?
A4: MEMS has important functions such as AR/MR and on-board sensors. In MEMS, for example,
we will address the optical needs associated with semiconductors by providing a complex array ofetching technologies required to form necessary structures on surface. This field is expected to grow.
Orders received in Q1-Q3 2021 are declining quarterly. The trend was similar last year, but will it
continue from next year onwards, and what new fields of orders will increase?
A5: Our business doesn't have a clear seasonality, but in the past the 3Q tended to be low. Orders areexpected to increase in the fourth quarter of 2021. We don't know if we're going to see the same
trend from next year onward.
Orders for automobiles, AR/VR and medical devices, such as IoT and mini LED, grew, butsmartphones, for example, stagnated. This is due to the impact of the shortage of semiconductors on
the production of customers starting in the second quarter of 2021 and the delays in the developmentof new equipment by some customers.

Q6: What is the impact on your company of global supply chain problems and semiconductor
shortages?
A6: For example, price increases for metals affect production costs. We deal with this in variousways, such as purchasing parts and materials at the cheapest of our three sites.
Our Shanghai plant operates as usual, and at this point, no power outages have been requested, butpower shortages in China are a risk factor.
Q7: What was behind the signs of a recovery in orders, and what is the outlook for winning orders
from North American smartphones?
A7: Smartphone orders were sluggish as customers were slow to invest in new features. Despite theCovid-19 pandemic, economic activity has started to move worldwide, and there are signs of arecovery in customer production. In particular, orders for AR/MR and automobile-mounted
equipment are increasing.
In addition, while the specific timing of receiving orders has not been determined, the company iscontinuing multiple joint-projects for smartphones with North American smartphones.
Q8: What is the outlook for orders for etching equipment?
A8:08: A dry etching system for AG glass was launched and the customer is making a trial use. The
company is also developing etching equipment for RF filters and AR/VR. Inquiries are received
from multiple companies in each field. Sizable future growth can be expected.
Q9: Updated Corporate Governance Code calls for stronger governance, including the establishmentof voluntary committees, and TCFD measures. How are you responding?
A9: Along with the revision of the Corporate Governance Code, efforts are being made to strengthen
governance and. to address sustainability issues such as TCFD. The status of responses will be
explained in the Corporate Governance Report.