On Janurary 6, a ceremony took place at the Company’s headquarters in Kariya to kick off the first work day of the New Year 2009. The following is a summary of the New Year’s greeting presented to all employees by President Yasuhito Yamauchi during the ceremony.

Current Business Environment

2008 was a year of upheaval, with the financial crisis originating in the US triggering a deceleration in all economic activity. It turned out to have an extremely serious impact on the business areas that we are engaged in.

In the midst of such an extraordinary situation, despite the efforts and urgent countermeasures to increase profits, our business performance for the current term is expected to be so bleak that the Company was forced to hastily downward-revise earnings expectations at the end of last year. Quite regrettably, we must be prepared for our operating income to fall into the red for the first time in the history of our Company. Not only the Company but also group and supplier companies are at a crisis point.

The time of constant growth that we enjoyed thanks to the production increases by customers has changed. We need to keep in mind that the current severity is not transient and that hard times will persist for some time.

Adapting to Changes to Survive

I believe those that can get through these drastic changes are not “those that are strong,” but “those that can adapt to change.” If we keep clinging to the same approach we have been taking, we will be left behind the change. Therefore, I would like all of you to clearly recognize that the times have changed, and to change past ways of doing and thinking things from the following three viewpoints.

The first thing that I would like to ask you is to question anew in all workplaces if the existing way and system of work match the present situation.

The next thing is to “strengthen the customer-comes-first principle.” The purpose of and desired attitude toward work have remained unchanged throughout the ages. I hope that you will ponder the meaning of “the customer comes first” and pursue that, especially in such uncertain times as today.

Furthermore, the third thing that I would like to ask you is to enhance and bring out the ability of all employees. The tasks of creating attractive products and reviewing work are all executed and supported by “human beings”. While I think that many feel a vague anxiety about the future under this harsh situation, it is important for each employee of the Company to have confidence in oneself, so that we can increase the dynamism of the entire organization.

Having a Strong Will to Change “What Needs Changing” and to identify “What Not to Change”

With uncertainty before of us, we are expected to face various difficulties in the future.  Nevertheless, I hope that we will overcome these difficulties with the strong will to take the plunge and change “what needs changing” and to identify “what not to change” while the time has been changing.