Nitto Denko Group CSR & Annual Report 2011

CSR & Annual Report 20116I would like to express my appreciation for the understanding and patronage that the Nitto Denko Group continues to receive from our shareholders, investors, customers, business partners and local communities. On behalf of the Nitto Denko Group, this report will outline our fiscal 2010 activities and present our key fiscal policies for 2011.A Word on the Great East Japan EarthquakeOn behalf of the Nitto Denko Group, I wish to offer heartfelt condolences to those who lost their lives in the Great East Japan Earthquake and express our sincerest sympathy to all sufferers. Some of the Group’s manufacturing, processing and sales bases in the Tohoku district were also affected. Fortunately, we escaped without the loss of life and the direct effects on our performance in fiscal 2010 were minor. Every damaged base was restored and returned to operation in April. In the future, we wish to contribute not only a short-term response to reconstruction demand but also to mid- and long-term recovery and the creation of new industries with our technological capability and creative ability.Business Summary for Fiscal 2010The business environment throughout fiscal 2010 was on a track to recovery in the first half of the fiscal year through high rates of economic growth in developing countries such as China. However, the rate of recovery slowed from midway through the fiscal year, as economic-stimulus measures in advanced countries were withdrawn and anxiety over political instability in the Middle East increased. Japan’s economy was on the way to recovery in the first half of the fiscal year, whilst it was affected by the appreciation of the yen and the ending of stimulatory economic policies in the second half of the fiscal year. Furthermore, because of the Great East Japan Earthquake, economic prospects became increasingly uncertain.Given the economic circumstances, the Nitto Denko Group made the transition from the “Year to Endure” in fiscal 2009 to the “Year of Our Offensive”. By means of efficiently supplying materials for products in fields with brisk demand such as flat-screen televisions, smartphones and tablet PCs, we boosted our sales figures. Furthermore, we continued to promote a fundamental reform of cost calculation, composed of three criteria: “Removing (Mu)”; “Reducing (Gen)”; and “Replacing (Dai)”, making efforts to promote improvements in quality and productivity and to realize cost reductions. Overall, sales increased 6.1% to 638.5 billion yen and our operating income rose 52.0% to 85.2 billion yen when compared to the same period in fiscal 2009.TopMessageTo Our StakeholdersFiscal 2011 – A “Year to Take on Challenges” – towards New Growth In line with foreseeable changes, the Nitto Denko Group will endeavour to build the foundations of an enterprise maintaining sustainable growth by relentlessly pursuing new opportunities. Yukio NagiraBoard Member and President, Nitto Denko Corporation