With shipbuilding as our core business, we have always promoted business diversification, making full use of the specialized technology and know-how we have accumulated through our many years of experience. At present, our machinery and steel structure business activities include the manufacture and sale of parking systems, construction elevators, food storage tanks and cosmetic production machinery, as well as leisure business. Through these activities we have fulfilled our corporate social responsibilities in a wide range of areas.

The world economy is recovering from what is said to be a “once-in-a-century crisis”, with the domestic economy in a gradual recovery phase since bottoming out last spring. However, I am aware that we still face an uncertain future, as our economy suffers from the triple troubles of deflation, high yen and low stock prices; as well, we are confronted with such long term anxieties as low birthrate and aging population (“depopulating” society), fiscal crisis and global environmental problems.

Under such a severe business environment, all our employees have continued in their concerted and united efforts to create a “good company” in keeping with our "faithful commitment to work."

As Sanoyas Hishino Meisho will be celebrating its 100th anniversary in April 2011, I have designated the present fiscal year a year for “strengthening our foundation,” so that we can overcome some of our business challenges and maintain strong progress as we enter our second century in business. We started with two reforms, which took effect in April.

The first reform was an “organizational change.” We have drastically revised our “mechanism” for providing high-quality, high-performance products and services worthy of customer satisfaction. Previously, we had four operational headquarters per Business Group; these were integrated and reorganized according to the functions of sales, design and manufacture. By doing away with organizational compartmentalization according to product, and by allocating human resources more effectively, we aim to improve our technological development capacity, reduce cost, and strengthen our sales capacity. The aim is to make the company operate in a well-balanced manner by attaining higher levels of business in both the Ship and Machinery & Steel Structure Business Divisions.

Secondly, we reformed our company’s personnel system. We introduced a “new management-level personnel system,” abolishing the conventional seniority-based system in favor of a system based on ability and role, and with emphasis on developing human resources. Through this reform I hope to make Sanoyas Hishino Meisho a company whose employees are equipped for the future and fulfilled by their careers.

Since my appointment as President last June, I have worked to raise employee awareness and create new structures by establishing two action guidelines for our employees: one is “Back to the Basics,” meaning going back to the origin or basis of work; the other is “Challenge for Change,” meaning to change the way employees think and work, and the way the company is structured.

It was under this slogan that the organizational change was implemented, and through which I am resolved to improve our company’s performance and value in order to pursue a prosperous coexistence, not only with our customers, but also with other partners, including stockholders, suppliers, contractors, employees as well as the local community.

We further strongly acknowledge our belief in the importance of the corporate social responsibility that our group must live up to; we remain committed to promoting our business activities in an appropriate manner. We will also make every effort to continue as a company that grows together with our customers and with many other partners, and to be a “good company,” one that can provide its employees with a better working environment and a greater sense of satisfaction.

We truly appreciate your continued understanding and support for all our endeavors.