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New Year Message from CEO

January 5, 2015

Unstable and Unclear Economic Environment

With regard to the world economy of 2015, while the US economy is expected to grow smoothly, the economic slump in Europe will remain stubborn, and the growth of Chinese and other emerging economies will be decelerated. As for the Japanese economy, though a business expansion due to additional stimulative measures taken under the fiscal and monetary policy package “Abenomics” is expected, there are many unstable factors such as decreased demand for products of key industries including electrical machines and electronics, and continuous high energy cost including electricity rates. Especially the sharp drops in crude-oil and naphtha prices in the global market that occurred during the fourth quarter of 2014 are factors that significantly affect medium- and long-term business performance of the Showa Denko Group. We must carefully observe the trend of crude-oil prices, and respond to it with right strategy.

Look forward, think upward, act outward

This year is the fifth and final year of our medium-term business plan PEGASUS which we started in 2011. We will certainly make our overseas investment projects launched by 2014 profitable, including those in our graphite electrode, aluminum can, and high-purity semiconductor-processing gas businesses, and aggressively launch new projects this year with priority given to businesses in Growth category. Businesses in New Growth category such as lithium-ion-battery (LIB) materials and SiC epitaxial wafers for power devices are expected to have rapid expansion of their markets. In this category, we will be ahead of our competitors in technology, research and development, and sales expansion, and pursue early establishment of competitive advantages.

During the past four years of the period of PEGASUS, we faithfully implemented measures to recover earning power and structural reform, both focusing on businesses in the Base (Stable) category. Thus we have strived to solidify our business base aiming at our return to growth track. Let’s bear and realize more abundant fruit on that base this year.

Through the implementation of these measures, we will strive to make our Group fly high in the sky as “Unique Chemical Company with Strong Presence on the Global Market.”

Let’s be a company that contribute to the creation of society where affluence and sustainability are harmonized

Safe and stable operation is a part of our corporate social responsibility and a basis of our business activities. To make local communities and our employees free from anxiety, we will reinforce our safety consciousness and safety measures.

Chemistry has power to solve global issues including stable supply of energy, food and water. We will appropriately grasp social needs, continue providing high-value-added products and services that satisfy our customers, and accelerate our Group’s return to growth track.


Media contact:
Public Relations Office (Phone: 81-3-5470-3235)

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