Greeting

Yushiro　Delivers　Reliable Value-Added Products as a Manufacturer Priding in the Top Domestic Share in Metalworking Oils & Fluids,and Focuses on & of New Products.

Since I joined the company, I have always been at the forefront of the Metalworking Oil and Fluids sales business that yields about 80% of the company's entire income. I have especially worked in close collaboration with the automobile industry, as well, that is the main customer of these products. The business relationship with the automobile industry is vital to the company and thus, will continue to require a close and good working relationship in the future, as well.

Let me give you a simple history of the automobile industry of Japan. Domestic annual production in the first half of the 90's greatly exceeded 10 million automobiles, but the numbers drastically dropped in sync with the burst of the bubble economy in the early 90's. Sales remained sluggish for a long time, however, have finally recovered to a manufacture level of 10 million automobiles from FY2003 on. The healthy business results enjoyed by the automobile industry these past two years is a product of their successfully global policies, and we are convinced that this robust trend will continue to accelerate in the future.

It would not be excessive to say that sales of Metalworking Oils and Fluids, Yushiro's major selling products, are proportionally related to the number of automobiles manufactured. Therefore, for Yushiro to continue to enjoy good results, it is vital that the group businesses become more global, as can be learned from the practices of various automobile industries that are continuing to grow.

For starters, and in response to customer demands, Yushiro has extended business to the U.S.A., as well as Asia including China, and Europe these past few years.In personal aspects, I have made a point to provide a listening ear to customer demands, in addition to the corporate efforts. It will always remain our goal to continue to secure healthy results in our pillar business of Metalworking Oils and Fluids, as well as Building Maintenance Businesses, in hope to further develop and strengthen the foundation of Yushiro group companies.

All employees are eager to challenge the goals defined for betterment of the company and products,backed by the corporate slogan to maintain a “Way of Mutual Progress” backed by comprehensive reliability.

We would be most obliged to continue to foster your patronage for the further development of the company.

Thank you very much.

Yoshiaki Nagai
President