Macnica is going for growth in new businesses poised
for rapid expansion

Macnica's fundamental strategy has two strands. First, we are going for growth by sharpening our focus on promising new electronics and information technology fields. Second, we intend to stick to our policy of avoiding the commodity end of the business. Instead, we are concentrating on those product categories where it is difficult for large companies to provide customers with sophisticated, in-depth services and support. It is a strategy that has secured us a strong position as a leading technology service provider. And, remember, our expertise extends to product planning and development. As a technology solution provider, Macnica has a keen eye for what is happening in the market. This market intelligence is continuously fed back into planning and development, leading to creation of high-value-added products that dovetail with market needs. The synergy between the technology trading and product development facets of our business has time and time again given us a decisive advantage in the marketplace.




Superior technology
makes Macnica different



One thing that sets Macnica apart from other companies is that our product portfolio is dominated by mid-range to high-end devices, mostly ASICs, ASSPs and PLDs. To sell products of this caliber, you have to know more about the ins and outs of their technology than your customers do. In fact, general-purpose memory devices, whose sales hinge solely on price and delivery dates, account for only a tiny proportion of our revenues.

For demanding customers working at the frontiers of technology, we are an attractive partner because every Macnica product is backed by our own cutting-edge technology, making us as much a technology solution provider as a technology trader. And the in-depth technology service and support capabilities we deploy for our customers' benefit allow us to stand tall in a crowded marketplace. Consequently, our customers often ask us to work with them on comprehensive projects involving design-in and product development. Indeed, other companies in our industry often measure their success by how well they measure up to Macnica.

Macnica's business format


When we decide to move into a new high-tech sunrise business, we can plug into a network of relationships in Silicon Valley and with technology leaders, large and small, from around the world. If a semiconductor entrepreneur wants to enter the Japanese market, it's 10 to 1 that Macnica will be viewed as a first-choice partner, principally because we are able to bring our own superior technology, and marketing capabilities to the table. In this industry, Macnica's specialized knowledge opens many doors for us.


Cultivating fruitful relationships grounded in trust and respect for the individual


Knowledge fuels Macnica's progress, and that knowledge is in the heads of our people. Ever since I founded this company, we have stressed our respect for the contributions made by individuals. In turn, our people are confident, take pride in their work, and respect their co-workers and customers. As a result, Macnica is known as a company that readily establishes amicable and fruitful partnerships with suppliers and customers. Not only does that make for a great workplace, it also makes an invaluable contribution to the success of our business. We give our people the environment, the support and the tools they need in order to do an excellent job. For example, no one at Macnica is working in the dark; everyone has the company's detailed business plan. They know their job, they know the big picture, and they know what they have to do and what we all have to do.


New business beckon


Although our business is certain to change in the future, we will remain true to certain fundamental approaches that have proven their value time and time again. They include an emphasis on stable management, a sharp focus on the information technology business, a keen eye for the latest cuttingedge technologies, and a stress on high value-added products and planning. The New Business Development Office is spearheading our advance into promising new businesses. But everyone at Macnica is expected to sow the seeds of our future success. New business ideas and project proposals are constantly sprouting in all divisions.



Gaining a listing is a big stride forward for Macnica


Gaining a listing will let us diversify our sources of financing. Moreover, it will allow us to reach out to a new constituency the international investment community. We intend to establish broad and transparent communication channels between ourselves and investors. Our products may be rather specialized, but we want as many people as possible to understand our business and the bright future that we are working toward. So investor relation is a priority for us. Macnica is eager both to speak to and learn from the investment community. I am convinced that the IR approach I've outlined is the highroad to winning investor confidence and allegiance.


What Macnica can offer investors


Macnica is at the heart of a highgrowth field that includes semiconductor and network computing businesses. True, we are involved in fierce competition with both industry giants and venture companies. But, it's equally true that we have some decisive strengths in terms of logistics, technology support, and product planning and development capabilities. These strengths, which allow us to punch above our weight in the industry, have won us a loyal, expanding customer base in Japan and in other major markets worldwide. Moreover, our people are among the most highly skilled and committed that you will find in the industry.
We want to return profit to you, our shareholders, and to meet your expectations without interruption. To achieve that, I intend to do everything necessary to ensure that Macnica prospers now and far into the future.