Report of Overview on the 63rd Term (April 1st, 2010 to March 31st, 2011)
We would like to extend our gratitude for all your courtesy and assistance.
Before commencing upon this report we would first like to extend our profound sympathy and sincere condolence to all those affected by the Great East Japan Earthquake and Disaster and our profound wishes for its recovery.
We would like to report the outline of our businesses for the 63rd term (started April 1st, 2010 and ended March 31st, 2011)
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The Japanese economy has showed signs of recovery in the first half, being driven by a combination of economic measures and exports to emerging countries, however, it then appeared to have paused in the last half due to the further appreciation of the Japanese yen and skyrocketing oil prices, and thus an uncertain and harsh business climate still remains in place.
Because of these circumstances our group had been committed to ensuring a profit via measures that include increasing sales and improving productivity. The demand for chemical products, particularly in areas related to us, for example products related to pressure-sensitive adhesives for use with flat panels and displays, has been affected by an inventory adjustment since the second quarter. Special performance materials and specially coated products for the Chinese market, however, have showed steadily increasing sales. System equipment has been affected by a decline in plant investment. This has all resulted in a slight improvement in sales, being in contrast to the previous term; however, it is to our regret that we must inform you that the profit made was lower than that of the previous term.
Our projections suggest that the uncertain and harsh business climate will remain in place in Japan throughout the 64th term (commencing April 1, 2011 and ending March 31st, 2012); however, that said, the expectation is that China and other emerging countries in Asia will maintain their high rates of economic growth.
Based on these estimates we intend to continue to take measures to increase our profit and aim to achieve further growth by actively expanding our sales via new product developments, improved productivity, expanding our business in China and South East Asia, and launching a new business in consideration of the future outlook. We would also like to contribute to the recovery from the earthquake and disaster by fulfilling our responsibility to supply products as a manufacturer.
We do intend to make every effort to improve our corporate value, and would like to request your continued support and understanding.
June, 2011
