From Top Management

Let me begin by extending my deepest sympathy to all those who suffered from the effects of the Great East Japan Earthquake that struck on March 11 of this year. As a company with offices in the disaster area, we will continue to provide support with the aim of achieving recovery as soon as possible.

In the midst of the ongoing effects of the earthquake during the first fiscal half of 2011, thanks to factors such as expanding markets for smart phones and tablet PCs and a new growing demand, we are seeing an upturn in sales with the focus on products such as Anisotropic Conductive Film (ACF), Super View Resin (SVR) and Optical Film. Moreover, our business for an industry-first Solar Cell Conductive Film for photovoltaic modules that was commercialized in April 2010 is expanding at even greater pace than first expected.

To capitalize on this demand without delay, we expanded our Anisotropic Conductive Film (ACF), Solar Cell Conductive Film production lines in April of this year at our Kanuma Plant. In addition, we launched production of these products at our Neagari Plant in September to enhance production capacity. By taking these measures, we have established a stable supply system and are now ready to handle rapid market growth. Furthermore, in addition to establishing permanent test laboratories for Solar Cell Conductive Film not only in our Kanuma Plant in Japan, but also in China (Suzhou) and Netherlands (Amsterdam), we will be setting up a new facility in Korea (Seoul) in December to strengthen our ability to provide global support for our customers.

Our Anisotropic Conductive Film (ACF) adhesive developed exclusively for LED mounting has also gained the attention of our customers as a new functional material in the field of environmental energy and we are looking forward to commercializing this product at an early stage.

Meanwhile, amidst growing global economic uncertainty and an ever more stringent management environment, while the outlook is for continued hardships in advancing, we will continue to focus our efforts on the development and production of cutting edge materials and development of process technology that represent our company′s forte and provide chemical compound devices that feature functionality unrivalled by other companies to meet the needs of our customers.

March next year will mark our company′s 50^th anniversary and we undertake to work even harder as a “Value Innovator” capable of product creation that realizes dreams through technology hand in hand with our customers to become a partner even more deserving of the trust of our customers in future.

We look forward to your ongoing support in the future.