STRATEGIC PARTNER OF PLASTICS

To Our Investors

Dear our Shareholders,
We, thank you very much for your unremitting encouragement and support, and wish you a good health and prosperity.

Myself, Kyota Kishimoto designated as President of this company on June 25th started its mission that day.
At the opportunity of reporting our Company’s financial results for the 89th fiscal term (April 1, 2017 to March 31, 2018), I hereby make certain statements.

Worldwide economy has shown in the year ended March 31, 2018, a moderate economic expansion found in the U.S. thanks to improvement of job market and impressive corporate performance, a stable economy enjoyed in Europe thanks to unemployment decreased, investments expanded resulting from export increased and so on. China has brought a consecutive high economic growth supported by government-led fiscal policy boosting business surroundings and in other emerging countries, economic situation has shown recovered thanks to price increase of natural resources.We acknowledge the global economy has proved firm recovery further than anticipated in the beginning of the fiscal year.

In Japan, a moderate recovery of individual consumptions is sustained thanks to strong corporate performance. However, we do not allow us to be optimistic due to a sign of trade friction between the U.S. and China, stronger Yen and higher resource prices potentially caused by geopolitical risks etc. They may affect our country’s economic and business surroundings.

Operating under such situation, we achieved increase both in revenues and profits significantly exceeding those initially forecasted, thanks to higher sales of plastic materials both in domestic and overseas market supported by economic recovery especially in emerging countries and moreover, to good performance in medical and hygienic field which we have been making a strategic focus as growing field.

We definitely remain our policy unchanged which commits ourselves to support overseas business expansion of our business partners. For such target, we will continuously intensify our Group-wide collaboration between our domestic and overseas consolidated subsidiaries. We plan to strengthen our commercial force especially in Southeast Asian area. We further continue to pursue proactive customer-centered sales and try to add the number of new business market approach in order to obtain new potential revenue streams.

I, thank you for reading above and sincerely rely further on your support, encouragement and guidance

June 2018

PLA MATELS CORPORATION
Kyota Kishimoto
President