Top Message

To Shareholders and Investors

The Nittobo Group has developed a long-term business plan "VISION 101," until April 1, 2023, which is the beginning of the next 100 years as we celebrate the 100th anniversary , and the Mid-Term Business Plan "Go for Next 100". This marks our goal for the next four years from FY2017 to FY2020.

The prior Mid-Term Business Plan focused on recovering the revenue base that was reduced due to the bankruptcy of Lehman Brothers in 2008, the Great East Japan Earthquake in 2011 and other unforeseen circumstances and aimed to establish a corporate structure that would make it possible to secure an ordinary profit of 6 billion yen. As a result of selecting effective options and focused business operations, asset reduction, capital efficiency improvement and governance enhancement, we were successful in terms of both profitability and financial stability. The consolidated ordinary profit reached 11.4 billion yen in FY2016, exceeding the target of 6 billion yen substantially, and moreover, a net interest-bearing debt which was 25.1 billion in FY2013 was reduced to 9.1 billion yen in FY2016. Furthermore, for a better governance, the company became a Company with a Nominating Committee in June 2014. Still more, a more flexible and transparent governance system has been established since June 2015. There are four external directors included making it a total of eight directors.

The "VISION 101" which represents the corporate image of the entire group and the image of the three core businesses of "Textiles," "Glass fiber" and "Life science" that should aim to realize in FY2023, and sets a challenging target of net sales growth from 83.3 billion yen (FY2016) to 150.0 billion yen (FY2023). Net sales in the mid-140 billion yen range can be found among the sales results of our group in 2001 and after. We want to celebrate the 100th anniversary with a performance that exceeds the intended results, which we believe is attainable by establishing a strong business foundation in the global market in the area of high value-added glass fibers, our strongest competitive edge, developing our life science business that is expected to grow in the medical area such as in-vitro diagnostics into Nittobo's second pillar of business, and further increasing our overseas net sales, which remains at 31% in the FY2016 business results. To support the efforts of the intended target, we work to "establish a culture of openness both internally and externally," "strengthen technological research and development" and "continuously enhance corporate governance," which are the basic policies of our business management.

Yuichi Tsuji

The Mid-Term Business Plan 2017-2020 "Go for Next 100" is set as the first stage for the realization of the "VISION 101" with the theme being "A challenge toward creation and innovation." We will change our conventional attitude of working for the development of stable earnings base to an aggressive attitude of aiming for future growth. We will positively invest in human resources, R&D and facilities to create sustainable corporate value.
When we observe an entire society and the trends of the economy and the market in recent years, we find the focus is notably and increasingly on the strengthening of the response to global environmental issues, development of smart solutions utilizing advanced IT, and healthcare. The Nittobo Group has a wide array of promising technologies and products to satisfy these needs. Our Glass fiber business contributes to the ongoing progression of the information communications society, weight and energy saving of vehicles and aircraft and better thermal insulation in homes by providing a variety of materials. Our Life science business, which has provided in-vitro diagnostics, satisfies the needs both domestic and abroad as a business that will lead to preventive and personalized medicine. Our Textiles business satisfies the needs of the society by providing highly functional materials equipped, among others, with heat-retaining and deodorizing functions as well. The Nittobo Group will keep thriving to complete the "challenge toward creation and innovation" in order to provide products that go a step above the diversified needs of customers.

The "Nittobo Declaration" developed in 2006 indicates the action guidelines of all employees. We aim to be a corporate group that will satisfy every stakeholder. We want to contribute to the development of society while we develop in a sustainable manner by fostering a structured environment where employees are proud and active and diligently providing the product group our unique technologies create in our textiles, glass fiber and life science businesses.

Stockholders and investors are requested to be expectant of the future of the Nittobo Group as we keep being active, looking ahead to the 100th anniversary and beyond.

August 2017

Director, Representative and Chief Executive OfficerYuichi Tsuji