To Our Shareholders

We would like to take this opportunity to express our gratitude for continuous support from our shareholders and investors.
The fiscal year from April 2011 to March 2012 has completed, and I would like to report our operation results.

Business environment and our achievement in this period

The global economy during this fiscal year continued solid growth, spurred by the strong economic growth of emerging countries, centered in China, and the economic recovery in the U.S. With respect to Japan's economy, supply chains for products and parts, which had been affected by the Great East Japan Earthquake, have undergone reconstruction. In addition, production and consumption activities have gradually recovered to pre-quake levels.
Under these circumstances, the company continued to advance cost reduction initiatives as well as work on implementing various measures based on our mid-term business plan in order to achieve our business goals, including aggressive overseas business expansion and development of new businesses.
As a result, the value of construction orders received in the green technology system business and paint finishing system business increased both in Japan and abroad for this period, totaling 195.2 billion yen, an increase of 29.6 billion yen over the same period of the previous year.
The value of completed work totaled 189.7 billion yen, an increase of 48.5 billion yen over the same period of the previous year. This is thanks to the completion of large projects already under contract, which were ordered in previous years, and an increase of orders received compared to the previous year.
In regard to profits, gross profit of completed work totaled 24.6 billion yen, an increase of 4.7 billion yen over the previous year, largely due to an increase of the value of completed work, up 48.5 billion yen over the previous year.
Finally, operating profit totaled 8.3 billion yen, an increase of 2.9 billion yen compared to the previous year. Ordinary profit totaled 9.0 billion yen, an increase of 2.8 billion yen over the same period of the previous year. Net income totaled 4.3 billion yen, an increase of 0.6 billion yen over the previous year.

Dividends and acquisition of treasury stock

We have decided that year-end dividends of this period are 20 yen per share, reflecting that we have achieved our profit goal for the final year of the mid-term business plan, etc. Together with interim dividends (15 yen per share), annual dividends will be 35 yen per share. For annual dividends for the fiscal year ending in March 2013, the company plans to pay 40 yen per share by adding 5 yen of dividends on April, 2013 in commemoration of the 100th anniversary of its foundation.

We acquired 300,000 of our common shares in August 2011, in order to flexibly fulfill our financial policy, in response to the changes in the management environment.

Future outlook and business policy

Japan's economy is recovering in response to demands for reconstruction in areas stricken by the Great East Japan Earthquake. However, interest in capital investment of domestic private corporations is expected to remain modest due to various concerns, including exchange rates, crude oil prices as well as electricity supply and demand.
In regard to the global economy, there are other concerns, including a rekindled sovereign debt crisis in Europe, high crude oil price and inflationary pressures in emerging countries. However, the economy as a whole is expected to moderately grow, thanks to the economic recovery trend that has been seen in the U.S. and continued growth of emerging countries.

The company will endeavor to implement various measures aiming to achieve our management goals, including "response to growing overseas markets", "enhancement of our domestic businesses" and "expansion of our business areas" on an ongoing basis.

Satoru Kamiyama
President