I would like to extend my best wishes for the New Year and express my deepest gratitude for the support we have received from all of you during the previous year. I sincerely hope for your continued good health and success.
Last year was one of dizzying change, as measures to prevent the spread of COVID-19 and bolster economic activities progressed. In addition, destabilization of supply chains and rapid inflation primarily in Europe and the United States occurred, and a sharp yen depreciation was caused by interest rate hikes accompanying monetary tightening. The worldwide declines in printed matter in the publishing and commercial printing fields continues due to Digital Transformation (DX), but demand for high value-added printing and package printing steadily expanded. The printing industry is also being impacted by material supply difficulties, as materials, logistics and labor costs soar. These circumstances demand productivity improvements.
At IGAS 2022, Japan's largest printing exhibition, held in November last year, we presented solutions to improve production efficiency, visualize costs and increase customer profits by digitally connecting the entire process with Komori’s concept of Connected Automation. Combined with the fact that it was the first real event in several years, the Komori booth was a huge success. In addition, we have proposed solutions to problems in the rapidly changing social environment by holding open house events at the Komori Graphic Technology Center. We have also distributed online events for the Asia region to constantly inform our customers of the latest information.
In the offset printing press business, we strengthened the lineup of the Lithrone GX/G advance series, which is winning a high reputation both in Japan and overseas, and have implemented systems that enable us to provide printing presses that best suit the needs of our customers. To strengthen future sales, we will work on models for package printing, which shows steady market growth, and strategic models, geared to the unique needs of the Asia region. KP-Connect Pro, the core system of Connected Automation, is pivotal to transforming printing plants into smart factories. We are currently expanding this model overseas and are committed to further productivity improvements for our customers around the world.
In the DPS business, we collaborated with Tokyo Camera Club last September to print colorful landscapes containing 100 million pixels while maintaining a high resolution of 300 PPI using the latest Impremia NS40 digital printing system. We received high praise from many visitors, and we see the certain potential in new fields of art expected in the future.
In the securities printing business, demand for banknote printing remained strong, where bidding and deliveries, which were delayed due to COVID-19, have resumed. Projects to replace equipment and build new factories are underway in various countries, and demand for preventive maintenance of equipment to keep factories running 24 hours a day is also increasing.
In the Printed Electronics (PE) business, the demand for package circuit boards is rapidly expanding as DX continues because of COVID-19 and the introduction of large-capacity, high-speed communication technology. In today's demand for factory automation, we are also focusing on fully automated lines by combining presses with prepress and postpress equipment. We will contribute to the future development of the semiconductor-related business by providing production equipment that meets the needs of the times.
Komori celebrates its 100th anniversary this year. With the aim of being a company that is "Beyond Expectation" and fulfills our responsibilities as a public institution, we will continue to contribute to the development of our customers and society by providing a wide range of products and solutions. We look forward to your continued guidance and support this year as well.
