We believe that improved business results was basically the result of "Company Survival" (restructuring plan), which began after the Lehman shock in 2008. We retreated from products with low profitability, or non-core business. Although sales decreased, we were able to drastically reduce fixed cost.
One factor that contributed to improved business results was raising the price of unprofitable products in precision spring business. In addition, sales in profitable products for tablet devices increased mainly in the first half, and improved results of precision spring business.
In plastics business, overseas business improved greatly, and subsidiaries in China and Vietnam became profitable. Also, orders in highly profitable prototypes and assembly equipment increased, and earnings in insert molding improved.
In both businesses, we concentrated in products that needed to be enforced, improved our technical capabilities, and strengthened sales force. In FY2012, consolidated and non-consolidated results were in black; hence we believe that we will enter the growth phase beginning in FY2013.

In the hinge business for mobile phone handset market, we need to manufacture service parts after ending mass production. But as the trend moves towards smartphones, we believe that basically we need to shrink its business. Also, we sold our PC-related hinge business and advanced in "selection and concentration" of core businesses.

We will have a full line-up of products that move and spin, such as hinges, dampers, torque limiters, crutches, etc. to pursue comprehensive marketing strategy. We, as a group, will aim at cultivating new demand in automotive, medical, and housing equipment markets.

We set our medium-term goals as follows: 10% annual growth in sales and operating margin of 10%. We believe that FY2013 is the year where we lay the foundations, by strengthening proposal-based sales and making M&As. In addition, to support clients who are transferring their production facilities abroad, we will also build new plants in Southern China and India. We will further strengthen our group network, and raise the level of production, technology, service and quality control of the group as a whole.
Furthermore, we are planning to resume dividend payment for the first time in 6 years, at 1 yen/share as a step forward towards future.

The plant in Ayutthaya, which was affected by the flood, will resume its production in July. The Chonburi plant, which began its operations in November 2011, is currently in full operation from the recovery of clients and the retreat of a competitor. Since Chonburi plant is in operation, we are receiving increased orders from our clients, so with Ayutthaya plant resuming its operations, we expect growth in sales. Thanks to our local management in Thailand, we were able to transfer production quickly from Ayutthaya to Chonburi.
On one hand, some of our clients are moving their plants to a region where there are no floods, or cutting off procurement of parts, from factories that are located in the region affected by the flood.
On the other hand, we plan on specializing flat spring production at the Chonburi plant and coil spring production in Ayutthaya. We are moving coil spring machines back to Ayutthaya plant, because we can easily move machines in case of another flood, and experienced workers can commute there.

In 2011, we decided our company slogan to be "The World's Best." It means that each of us will work hard to make our work as "The World's Best," such as "I'm the world's best in knowledge and skill in the work that I'm responsible for," "I'm the best in proposal-based sales to this client," etc.
We have many products, which are "The World's Best;" from weighing springs, springs for audiocassette tapes and videotapes, shutters for floppy disks in the past to tangless coilthread and insert collars in the present.
We are registering our "World's Best" products and technologies at our plants on our in-house "World's Best" database, and put "The World's Best" mark on machines that make these products. By marking machines, the employees with "The World's Best" mark will try to remain as number one in the world, where are the ones without the mark will think of ways to become "The World's Best." In such way, we encourage further improvement in our products and technologies.