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Issues Requiring Response

Regarding the outlook going forward: as the reaction against the consumption tax hike subsides, an increase in construction work operations is forecast due to recovery demand and disaster prevention/mitigation-related works domestically and due to redevelopment operations and similar in the urban sector, so that the economy is expected to make a continuous mild recovery. Yet, as there are causes for concern, including soaring purchasing costs against the backdrop of the weak yen, the opaque situation looks set to continue.

To survive this difficult time, we will be uniting efforts company-wide to engage in actions that will lead to furtherance of product development that meets the unique needs of our customers and to operational improvements (cost reduction), based on management policies of “strong marketing” and “robust financial structure”, with "strengthening the corporate structure to enable swift responses to changes in industry” in mind.

Special Steel Division

The Special Steel Division will further strengthen ties with manufacturers and our suppliers while adjusting stocks to achieve proper inventory levels. Also, with the relocation of the North Kanto Sales Office scheduled for spring 2016, it will be working to strengthen its logistics capabilities, effect customer service enhancements and work safety improvements, and put “powerful marketing” into practice.

Spare Parts Division and Overseas Business Division

The Spare Parts Division and Overseas Business Division will be striving to reduce costs in a rational manner so as to achieve greater profitability, based on the implementation of specific strategies and countermeasures derived from market trends.

We would like to sincerely request the continued support and guidance of our shareholders.

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