Firstly, let me thank all of you for your generous and continued support.
We are currently facing a difficult period economically. Until the second quarter of the last fiscal year, we were able to improve our profitability by focusing on tin can materials, an area where sales have firmed up considerably. Our customers were also accepting of certain price increases, which helped raise sales profit figures. From the third quarter, however, we experienced a steep decline in orders and sales from our automotive, electronics, and industrial machine customers. This, combined with the high cost of the yen, has caused a sharp fall in profits. The market has become extremely competitive.
These difficult market conditions are expected to continue for some time. Certain industries have succeeded in adjusting their inventories by slashing production, but consumer demand remains very low. Real economic recovery is not yet on the horizon.
At Toyo Kohan, we have reached the final year of our FY 2007 to FY 2009 mid-term management plan. In today's severe economy, we must be willing to reform and take on the challenge of improving productivity, reducing production costs, and increasing sales.
April 11, 2009, marked our 75th anniversary. In recognition of this, we have formulated a range of ideas and policies to help our staff face the current challenges. These include a set of management principles, a set of action guidelines related to daily work practices, and a company vision outlining the goals of our company as a whole. We will ensure that everyone at Toyo Kohan takes these principles and guidelines to heart, and uses them daily to effect the reforms we need to make.
We greatly appreciate the support given by you, our shareholders and investors, in these difficult times, and look forward to overcoming the challenges ahead and achieving a new level of profitability and success.

 Outline of the Mid-term Management Plan (FY 2007 to FY 2009)

We shall maintain high aspirations and a spirit of challenge to increase revenues and to further increase the value of our company.

1. Executing corporate social responsibility (CSR)

• Thorough compliance with laws
• Reinforcing internal controls
• Thorough environmental management

2. Recovering and maintaining revenues in existing businesses

• Reviewing management resources and specializing in them
• Reinforcing group management
  (Reinforcing the group management of the entire Toyo Seikan Group)
• Promoting tie-up projects through deeper alliances with other companies

3. Growth and increasing revenues

• Creating a foundation for growth of existing businesses
• Starting new businesses: Functional film for containers and functional film for optics