New Year's Pledge

Jan.05.2012

We will continue to help restore production
at the customers suffered from various
natural disasters last year.
And we will further improve our technology
and products to contribute to creating values
at all the customers.

Dear Sirs,

   At the beginning of the year of 2012, I would like to express my deep appreciations for your consistent supports and patronage to Toyo in the past year.

   To reflect on the year 2011, Japanese economy was heavily affected by natural disasters starting with catastrophic East Japan Great Earthquake and ensuing killer Tsunami on March 11, which have caused terrible accident of the nuclear power plants in Fukushima. The torrential rain by Typhoon Talas brought devastating flood in September. The flood in Thailand was also a heavy blow to our economy. In addition, the ever-appreciated yen has further boosted the shift of production bases to overseas.

   The world economy, on the other hand, kept staying in unstable conditions due to accumulated difficult issues such as monetary and financial problems in the U.S. and Europe, and inflation in the emerging nations.

   Market-wise, automotive industry, which is Toyo's one of the main market sectors, has shown firm recover of production, and demands were increased. However, the electronics industry in Asia kept staying weak. Particularly, decreased demands from that industry in China and highly appreciated yen negatively affected our business.

   In above global market climate, Toyo has developed various technology and products in the fields of plastics injection molding and die-casting, which greatly contribute to productivity and environment in the venue of production.

   In the plastics field, we demonstrated at the recent IPF Japan 2011 the following new injection molding machines and systems: The Si-280V that can make a high cycle molding of light guide plates of liquid crystal panel, the Si-230V with a swift mold-changing system for diversified production, the Si-15V fine-pitch precision connector molding machine, a vertical type molding machine with an LED reflector hoop molding system, the gas-constraint SAG screw, the in-mold molding of complicatedly configured products, and the "T-station lite" centralized production monitoring system.

   In the die-casting field, Toyo was awarded in February, jointly with Denso Corporation and Miyamoto Kogyosho, the Economy, Trade and Industry Minister's Award for the development of an energy-saving, compact, low-pressure die-casting system. We also added a 125-ton model to our all-electric die-casting machine series, which now consists of five models from Ds-125 to Ds-800.

   In the year of 2012, we would like to contribute to customers with the following activities:

• (1) Make all-out efforts in supporting the production restoration at the customers suffered from natural disasters.
• (2) Strengthen the relationship with our distributors to capture the demands for recovery from disasters in Japan, and cultivate new demands overseas.
• (3) Strengthen our sales efforts in China, South Asia and other emerging markets, where we can expect that their economy will keep growing further.
• (4) Provide value-creating technology and easier-to-use products to help increase productivity at customers.
• (5) Fundamentally enhance the production for further output at our China facility.

   To quickly correspond to the current uncertain market situation, we will continue to exercise our best efforts with a customer-oriented slogan of "Customer's Value Up". 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,