Jan.05.2015

Dear Sirs,

At the beginning of the year of 2015, I would like to express my hearty appreciations for your consistent supports and patronage to Toyo during the past year.

To look back on the economy of last year, we did not see the rebound of Japanese economy affected by lingering lowered consumer spending since the consumption tax hike in April. In our industry in Japan, though we saw some signs of investment revitalization thanks to government subsidies, demands in general remained very low. When we turn our eyes to the global economy, while the U.S. market enjoyed solid economy, majority of developing countries suffered from continued declining of economic growth and the European economy stayed low as well. Despite generally slow global economy, our overseas business was vigorous owing to strong demands from various sectors such as IT, electronic equipment, and auto industries.

Now, I would like to be more specific on our own business :

Regarding sales, we were inundated with orders last year from the smart phone-related customers mainly in China. In addition, thanks in part to the depreciated yen, we also received an increased number of orders from other sectors such as auto-related industries. In this busy situation, our production failed to catch up with the increased orders and we caused great inconvenience to our customers and sales partners. To correspond to the situation, we initiated a plan to boost our production capacity. As a first step, we established an automated warehousing system and increased the number of production personnel. At our Changshu factory in China, we completed the second phase of the construction. In the year of 2015, we will reconstruct part of the existing factory buildings, and relocate present machining equipment and add some new devices for the increased output of production.

With respect to new products, we have completed last year full line-up of the easy-to-use Si-6 series Plastic Injection Molding Machines adding smaller models, and introduced them at various exhibitions together with our sales partners. Particularly at the IPF Japan 2014 held in October, we demonstrated the Si-6 series with the system incorporating full of cutting-edge technologies. Regarding the Die-casting Machines, we introduced the DsF series, world-first fully electric servo control Die-casting Machines at 2014 Japan Die Casting Congress & Exposition held in November. This year, we intend to promote the sales of these new products.

Now at the start of 2015, I am very pleased to express my commitment to keep refining our products and technology that are highly valued by our customers. This way, I believe we can capture, in close relation with our sales partners, a wide variety of demands in the increasingly unpredictable global markets. In addition, we will further expand our production capability in terms of both production facility and personnel. To strengthen our global competitiveness, we will expand the knock-down production with local partners in Italy and Turkey. And, we will further solidify our business foundation, fully utilizing our capital and business alliance, started last March, with Japan Steel Works, Ltd. and Ube Machinery Corporation, Ltd.

Favored by your consistent supports, we are very happy to celebrate the 90^th anniversary of our foundation this year. We look forward to your continued patronage.

At the last but not least, we wish you a happy and prosperous new year.

          Yours sincerely,