To Our Investors

 I am pleased to take this opportunity to wish all our shareholders continued good health and prosperity, and to express my heartfelt gratitude for your continued encouragement and support. I hope you will find this report on the Company’s financial results for the 88th fiscal term (April 1, 2016 to March 31, 2017) informative and interesting.

 In the first half of the consolidated fiscal term under review, the Japanese economy was confronted by a strong yen and low stock and crude oil prices against the background of turmoil in the economic and financial markets resulting from unstable international conditions, as exemplified by Brexit. The international situation underwent drastic changes in the latter half of the year, however, stemming from rapid progress in the yen’s depreciation and high stock prices following the U.S. elections, accompanied a sharp rise in crude oil prices after OPEC and non-OPEC countries including Russia reached an agreement to curtail crude oil production. Uncertainty about the future continued to grow, meanwhile, with the impact on the global economy of stagnating growth in China, economic setbacks primarily in developing countries, and major political events, most notably the inauguration of a new president in the United States.

 Operating in this environment, our Group, including our domestic and overseas consolidated subsidiaries, sought to strengthen Group-wide collaboration. We succeeded in increasing the quantity of both raw plastic materials and new items sold. Both our revenues and profits declined, however, due mainly to a slump in prices of general-purpose resin resulting from a downturn in prices of domestically produced naphtha as well as from a decrease in the yen value of foreign-currency-denominated sales by overseas subsidiaries due to the strong yen.

 We are determined to pursue customer-centered sales proactively as a Group with the aim of increasing our domestic market share, while responding quickly to overseas business expansion by our customers and further reinforcing international sales through organic use of our overseas business bases. We will also intensify our efforts in the medical and hygiene products fields, which offer strong potential for growth, and work to expand the foundation of our operations with the aim of further leveraging the value of our positioning as a trading company specialized in plastics.

 I sincerely request the continued support and guidance of all our shareholders as the future unfolds.

June 2017

Masahiro Inoue,
President and CEO