Fumikiyo Uchioke, President and CEO

Last year, the financial crisis that originated in the United States had a very serious impact on the world economy, causing the so-called "hundred-year" recession. Fortunately, we have been able to gradually enhance our performance and increase the number of orders received since the middle of last year, a result of our entire Group's efforts to strengthen our corporate structure and the pump-priming measures taken by different countries.

We have to recognize, however, that the world economy is not recovering autonomously and the severe economic situation continues, although it is not so obvious. We also need to rebuild our production capacity to handle the increase in orders received. This year, I hope the flexible business operations we have in place will allow us to get ready to cope with a possible double-dip recession and deal with the orders just in front of us.

Considering the business environment for this year, let me state three points that I would especially like you to focus on.

The first of my three points is to achieve the final results of the Product Appeal No.1 Activity and to continue to strive for stronger corporate structure. We launched the activity in April 2008 and have worked on specific theme since then. We will start the final stage of this program in April 2010. All members in our Group are asked to use this year to finalize the project and do their best to achieve the predefined goals by sharing the remaining challenges and clarifying time frames.
On the other hand, I am greatly concerned that we will return to our previous structure if we put priority on increasing production volume to accept more orders. We will also have to be prepared for a double-dip recession. I would like you to continuously lower break-even points and search for a leaner or more muscular structure.

The second is to integrate our domestic functions. We built a framework to accomplish roles and functions as Mother through several structural reforms in Japan. In order to improve Mother functions in Japan and reinforce support systems for overseas production, we need unified operations and close cooperation between the divisions, functions, and human resources of Sumitomo Wiring Systems and Group companies in Japan. I ask you to specifically examine the best way to integrate domestic functions.

The third is to enhance human resource development. People are ultimately the key factor in solving the different challenges in our Group, getting over difficult situations and achieving sustainable growth. I hope you will concentrate on human resource development that will improve our employees' abilities and motivation and help them exercise their capabilities to the fullest. As I always say, the basis for this is communication. Please keep "human resource development means communication" in mind and put it into practice.

Our Group continues to be in a severe business environment, and we have to accelerate the enhancement of our corporate structure for our Group's sustainable growth and development. This is why I ask for your continuous efforts.