I would like to express my thanks for our shareholders’ loyal patronage.
It is a pleasure to present our business reporting for 39th term. (from Feb.1 2011 to January 31, 2012)
As to our nation’s economy for the consolidated accounting term, the economy is coming out of a slump gradually supported by the demand for the reconstruction while the severe situation due to the effect of the Great East Japan Earthquake still remains.
As for the future prospects, it is hoped that the gradual recovery trends of the economy will continue against the backdrop of the demand for the reconstruction and the effects of the various policies for the Great East Japan Earthquake. On the other hand, we need to note that there are risks of depressing the economy due to the restriction of electrical power supply because of the shutdown of the nuclear power plant, the downturn in manufacturing and European sovereign debt crisis, and that there are also the continuing strong yen, effects of deflation and a concern of the deteriorating employment conditions remained.
For the fields of IT and Digital in the electric device industry that our company group belongs to, the growth of TV market slows down and the growth of smartphones and tablet terminals is expanding rapidly. From now on, it is expected that the leading force of FPD market is shifted from large panel to small and medium sized panel, and the production of small and medium sized liquid crystal panels will increase further.
As for the field of Solar Energy Generation industry, the market focusing around European market is getting worse and the excessive stock of solar cell module can not be restrained. It is predicted that the excess supply will continue and the price of the solar panel will continue to lower.
Under these circumstances, our company group decided to dissolve and liquidate Ishii Hyoki Solar Inc., our consolidated subsidiary and posted a consolidated fiscal heavy losses being incurred by the considerable decline of Solar Cell Wafer business. And, we solicited voluntary retirement to construct a manpower framework toward establishing a solid business base and we posted such losses.
The basic policy to resolve such situations is that our company group streamlines our company and devotes management resources effectively in order that we survive and grow as a manufacturing industry for Japan for the future, which makes the company quality that we can get the operating cash flow effectively and invest in the high value-added areas. We also intend to examine the capital policy including capital increase and clear away excessive liabilities as early as possible.
We appreciate the further support and encouragement of our shareholders.
September, 2012
Mineo Ishii
President
