Jan.05.2016

Dear Sirs,

At the beginning of the new year of 2016, I would like to express my heartfelt appreciations for your unstinting supports and patronage to Toyo in the past year.

To look back on the economy in the year 2015, we saw a modest pick-up in Japanese economy thanks to the recovery of consumer spending and improvement in corporate performance. On the other hand, global economy remained slow in general affected by apparent slow-down of Chinese economy, though U.S. economy was strong.

Regarding Toyo-related business, we saw steady demand in Japan, including that for facility investment thanks to the government's investment-promotion policy. In terms of our overseas business, while we enjoyed constant demand from Europe and American markets, we saw adverse market conditions in Asia with slow demand from the IT and electronic equipment sectors.

Reflecting on our business activities in the past year, which was our 90th anniversary and the first year of our medium-term management plan, "TOYO-330", we tried very hard to secure orders and boosts our production capabilities. As a result, though orders from the IT and electronics sectors were decreased, our overall business was maintained at a sufficient level thanks to increased orders from the other sectors.

Last year, we were not able to meet customers' expectation in terms of delivery time. The long delivery time was caused by an increased amount of large machines that required huge man-hour in production. To improve this situation, we built a new machining factory under "TOYO-330", where we re-installed existing machine tools and introduced new machining equipment as well, so that our production capacity was greatly expanded.

With regards to products, we completed a full line-up of the latest Si-6 series of Plastics Injection Molding Machines, and developed a new ET-Ⅱ series of vertical molding machines. We also developed the DsF series of fully electric servo control Die Casting Machines and put a new BD-V6 EX model of hydraulic Die Casting Machine. Supported by our distributors and agents, we introduced these new products and technologies at various exhibitions in the world.

In the new year, we are concerned about adverse effects of the hike in the interest rate in the U.S. and slowdown of Chinese economy. But, as this is our second year of "TOYO-330", we need to achieve our business as planned whatever be the business climate. That is, we will put our emphasis on strengthening our sales force worldwide, global competitiveness of products, and production capability so that we can achieve a planned sales of 30 billion yen and an operating profit of 3 billion yen in 2017. Particularly, we will complete a new factory for assembling large machines, so that we can achieve expansion of production capacity with shorter delivery time. In addition, we will reinforce our business infrastructure by strengthening relationship with our business partners.

As all of us continue to step up the "Customer's Value Up" campaign to support customers to increase the value of their products with our comprehensive force, we would like you to support us as ever.

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

          Yours sincerely,