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New Year Message from CEO

January 4, 2013

Let’s redesign our business models without hesitation to recover profitability!

The world economy is increasingly unstable due to many uncertainties.  The Japanese economy is also weak, and its recovery is slow.  We must anticipate changes in business environment, carry out structural reforms, and build up our strength in preparation for the next jump.  This situation sets a crucial test for the capability of the Showa Denko Group.

Japan’s assembly industries, such as electric appliances and electronics, long served as the driving force for economic growth.  However, their international competitiveness has declined sharply in the past few years, and those industries are now facing a very severe situation.  The Showa Denko Group, which has supplied those industries with materials and components, will not be able to survive if it simply continues to do the same thing as before.  Meanwhile, Japanese industries still have high competitive power in the most advanced business areas that require leading-edge production technologies, technological integration, and development over many years.  It is in such areas that the Showa Denko Group can fully display its strength, developing and supplying advanced chemical materials and components based on technologies accumulated over many years.

Amid the intensifying international competition, we need to drastically redesign our business models so that we can develop new products and technologies, and create new demand and market.  In Japan, we will shift to new areas of market by providing new added-value products.  Outside Japan, we will aim to deeply penetrate the growing emerging markets, including those in China and ASEAN countries.

We will return to a growth track, overcoming various difficulties.

We are now in the third year of our medium-term business plan PEGASUS. Showa Denko has started a new organization this year, aiming to clarify the roles of respective units as “profit centers,” increase the speed of decision-making and execution, and speedily launch new products based on new technologies.

We have no time to lose in our efforts to return to a growth track. Notwithstanding the difficult conditions, I ask all of you to work vigorously to solve problems and steadily “Shape Ideas.”

For further information, contact:
Public Relations Office (Phone: 81-3-5470-3235)