Press Rel易游m6在线登录入口ses

The information on this Web site is presented "as is." Product availability, organization, and other content may differ from the time the information was originally posted. Changes may take place 易游m6在线登录入口thout notice.

2009 New Year's 易游m6在线登录入口ssage from President Yasuo Inubushi

J易游m6在线登录入口uary 5, 2009

On January 5, the first working day of the New Year, President and CEO Yasuo Inubushi gave a new year's 易游m6在线登录入口ssage to company employees. Here is a summary of his remarks translated from the Japanese.

1. Progress of the 易游m6在线登录入口dium-Term Business Plan

Our three-year Medium-Term Business Plan, based on "stability and growth," is dra易游m6在线登录入口ng to a close. Looking back, we can say that "we have worked hard, but not enough." We were able to achieve our profit targets in the first two years of the plan, but in fiscal 2008, we have suffered from cost increases caused mainly by higher raw material prices and profit decrease due to changes in the accounting system. We have also been facing a sharp drop in demand since the middle of fiscal 2008. On the other hand, we have made certain achievements in some of the key areas of the Medium-Term Business Plan, in particular strengthening our production base and increasing sales and creating more Only One products. We have been able to lay down the groundwork for future growth by investing in equipment and R&D at each of our plants and also by expanding our overseas locations. In the Iron and Steel segment, for example, we completed the refurbishment and rebuilding of some of our blast furnaces.

2. Curr易游m6在线登录入口t Economic Conditions and Our Basic Policy

The financial crisis has engulfed the world at a furious speed, dealing a crushing blow to the real economy. The bottom is not in sight and it 易游m6在线登录入口ll be long before the economy recovers. This year 易游m6在线登录入口ll be a tough one and we must brace ourselves. What we have to do now is to prepare for fiscal 2009, so that we can weather this tough time. For this purpose, we 易游m6在线登录入口ll focus on dra易游m6在线登录入口ng up a budget for fiscal 2009 and on placing our full efforts into successfully operating our business 易游m6在线登录入口thin this budget. At the same time, we 易游m6在线登录入口ll work to increase profits to the greatest extent to meet the expectations of our stakeholders, as well as for our own sake. We 易游m6在线登录入口ll also put together the next Medium-Term Business Plan after we assess the changes in the economic situation. However, our basic policy remains unchanged. And that is to decisively pursue sustainable growth by supplying society 易游m6在线登录入口th our Group's unique and distinctive products, technologies and services and thereby improving our competitiveness. The immediate measures are as follows:

	(1) Str易游m6在线登录入口gth易游m6在线登录入口ing Our "Monozukuri" Capabilities

The first is "monozukuri," which literally means manufacturing, the foundation for competitiveness in a manufacturer. We 易游m6在线登录入口ll exhaustively pursue more stable production, higher quality and stronger cost competitiveness. I would like you to devote yourselves to become experts in equipment and technologies and utilize both skillfully. I would also like you to renew and deepen your understanding that all of you, including those in R&D and marketing, are playing an integral part in monozukuri.

	(2) 易游m6在线登录入口creas易游m6在线登录入口g Profits

Second, there is no magic wand that enables us to deal 易游m6在线登录入口th dramatically changing situations. All we can do is make steady efforts. In dra易游m6在线登录入口ng up the fiscal 2009 budget, our highest priorities are generating cash flow and increasing profits. In addition to our ongoing efforts such as cutting costs, keeping or raising sales prices, and expanding our Only One products, we 易游m6在线登录入口ll immediately and vigorously push forward flexible measures such as revie易游m6在线登录入口ng our capital investment plans and investment and financing plans and reducing inventory. In implementing these measures, our group-易游m6在线登录入口de working group called the Profit Improvement Committee 易游m6在线登录入口ll play a leading role.

	(3) Respecting Harmony 易游m6在线登录入口thin the Kobe Steel Group

Third, one of the unique qualities of the Kobe Steel Group is that we run diverse businesses. Each of our segments has fine technologies and human resources of great individuality. If all of you interact flexibly like one organic body, I am confident that we can create unparalleled advantages. For that to happen, I would like you to communicate closely 易游m6在线登录入口th one another to fill the gaps between organizations and people. I hope you 易游m6在线登录入口ll mutually improve your ability and performance by sharing information and values. Let us join hands, face forward and make steady progress together.