New Year's Greetings
January 1, 2023
Warm Wishes for 2023
2022: A Year of Laying Groundwork
2022 was a year of constant change and uncertainty across the globe, sparked by the Russian invasion ofUkraine, price hikes, global inflation, depreciation of the yen, and more. Despite being affected by this harshenvironment, looking back on 2022, FSX strove to push forward, and we were able to build a solid system ofstrong human resources could deal with the unpredictable times ahead, laying the groundwork for the greater
development of the next generation. By providing high-quality, high-added-value products and services that set
us apart centered on FSX's original technology, we achieved record sales and profits (non-consolidated) for ourAugust 2022 fiscal results. I would like to take this moment to express my sincerest gratitude to all ourstakeholders for their understanding and support.
2022 was a year in which we felt our patented technology “VB” take hold as an anti-viral sanitation technology.
While we received a great deal of support throughout the COVID-19 pandemic, we had braced ourselves that
this increase in demand for VB in other industries would be something temporary caused by the pandemic. Yet
three years into the pandemic, as our lives have slowly started returning to a new normal, demand for VB has
only increased, driving sales of FSX as a whole. The VB Oshibori (Wet Wipe) in particular has been adopted bya wide range of customers primarily in tourist areas throughout Japan ever since we announced “Reinventing
the Oshibori”, and entry into the tourism industry in 2021. Expansion into different industries through licensingof VB has been steady as well, with the JR Group adopting this technology in their train linens last year.
Meanwhile, we have made great strides toward creating practical applications for “Anti-aging effects of
Polyoxometalates (the main component of VB) on skin”, which was accepted in an academic journal in 2020.
We were selected for the Business Restructuring Subsidy, a large-scale subsidy system we are using to makemajor renovations to our factories. We have also established the FSX Lab, a new research facility for conducting
fundamental research on VB. While our research to date has focused on viruses and bacteria, FSX Lab will allow
us to step into the realm of life sciences and conduct multifaceted research on VB’s effects on the skin. Both ofthese will soon be in full swing, making 2022 a year in which we built a foundation and laid the groundwork for
greater development of VB. That these efforts have received such acclaim that we won “The Innovation andCommercialization Promotion Award” at the 56th Good Company Award (2022) has only served to encourage
us more.
2023: The first year of FSX GlocalIn 2023, we are changing the conventional notion of “Oshibori” as a tool for hygiene and hospitality andentering a phase in which we ask what oshibori can do for the skin. Specifically, we plan to announce an oshibori

brand that takes a completely new approach that focuses on the anti-aging effects of VB on the skin, enhancing
the value of oshibori. For this, we will renovate the currently inoperative Uenohara Factory in Yamanashi
Prefecture, where we plan to recommence operations as a manufacturing plant for our new product lines. Staytuned for the release of these revolutionary products created based on experience and scientific evidence
accumulated over the years.
The anti-aging effects of VB on the skin, which has led to the reinvention of the oshibori, not only greatly
expands the possibilities of the oshibori, but has given rise to a new question—"What can oshibori do?" In
exploring this question, we have arrived at the notion that "a company is a social and public entity". We hope tomake 2023 the first year of the "glocal", which combines local perspectives rooted in the community and global
perspectives with sights set on the world, and through this grow and develop FSX.
FSX has always cherished local communities in our business activities. This year, we hope to take this a stepfurther, exploring unique ideals for FSX rooted in community revitalization, appointing new human resources torevitalize the organization, and promoting harmony with the local community as we grow the company. We will
also ambitiously try our hand at cultural activities that make effective use of local resources in the tourism
industry as part of our medium-term plan.
In our international business, we have been working diligently and steadily toward establishing intellectual
property and complying with sanitation standards, even during the hiatuses necessitated by the COVID-19
pandemic. This year, we will at last strive to build a drastically revamped system that includes bolsteredproduction systems and risk management in Hong Kong and the United States, the international bases of theFSX Group, as well as in China and Vietnam, our production bases. Bearing in mind the inevitable declining birthrate and aging population of Japanese demographics, we hope to make this year one in which we steadily
rebuild our business structure not only in Japan but overseas as well.
With “Rental Oshibori Services”, the core of our business, as well as “VB”,”REION”,and “Pocket Oshibori”,ourmajor technology and product brands, we will strive to evolve Japanese oshibori culture along a glocal businessaxis and take the company to the next stage, where we can serve both the local and international communities.
We all will strive with passion to create sustainable growth not only for the FSX Group but for the oshibori industry
as a whole.
We thank you for your continued support in the new year.
January 1, 2023
Katsuyuki Fujinami
President & CEO
FSX, Inc.