Message from the President Sep.2011

a monthly magazine for our employee Sep.2011

Reason for Promoting the Mid-term Management Plan

The shock triggered by the recent downgrade of U.S. bond, again, has expanded the dark cloud over the future of the global economy. Till now, it was said that the world economy is in “gradual recovery” after the Lehman Shock. But in fact, may be we should realize that all the problems which caused the Lehman Shock, such as the economic and financial mechanism that assumes a rise in real estate prices, economic gap between money and real economy, growth of real economy, and harmonic relations between the economy of the advanced nations and the emerging nations, etc., had been put off without being resolved.

In Japan, just as we were about to recover from the Lehman Shock, we got hit by the Great East Japan Earthquake. And followed by the high yen rate, again, economic uncertainty had begun to increase. Therefore, I think we should be aware that social economy would continue to shift under unstable conditions. This means, unfortunately, we should realize the end of continuous growth of economy for industries and individuals, so that we will not make wrong decisions.

Now, we should realize that there are companies that can survive this unstable and uncertain era, and those can not. This is a very harsh reality. Conversely, even under the most demanding situations, as long as we continue our life and economic activities, there would be companies who survive. We should think what we have to do in order to survive. Now, dependence on economy and country has become largest risk.

In fact, under such recognitions, we are now striving to carry out our new Mid-term Management Plan, "Co-creation 21". Therefore, although not all the item in the plan, there are some measures that we need to speed up when the uncertainty increases further. And most notably one is a strategic objective of business division, "Building a stronger customer base". Since these measures toward specific goals will accelerate accordingly, I would like to inform to all employees in advance, regardless of whether you are engineer or sales personnel.

September, 2011