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.

My name is Eiichi Ogo, and I was appointed president of Yushiro Chemical Industry Co., Ltd. on January 1, 2011. While my new position of general responsibility for the entire Yushiro Group is in some ways a daunting one, I intend to devote all my energies to the fulfillment of these solemn duties. Like my predecessor Yoshiaki Nagai, I humbly ask for your further guidance and encouragement.

Since our establishment in 1944, Yushiro Chemical has served the automobile manufacturing, steelmaking, and building-maintenance industries by supplying metalworking oils & fluids as well as floor-coating waxes, which are all indispensable to these industries’ development. Going forward, I consider it my duty to ensure that we continue to meet and exceed customer wishes, deliver business results appropriate to a company listed on the First Section of the Tokyo Stock Exchange, and return the fruits of those labors to shareholders, employees, and societies.

The business environment in which Yushiro Chemical operates is currently beset by significant challenges. In the wake of the financial crisis of autumn 2008, the Japanese automobile industry, which forms our core customer base, is producing fewer new domestic models than before. Although the economy is now on a path to recovery, this state of affairs is widely expected to create further instability for the Japanese economy. With the Japanese government’s ecologically-friendly vehicle subsidy coming to an end, automobile sales in the period from October to December 2010 were as low as 30% when compared to the same period a year earlier. Moreover, domestic manufacturing industries are continuing to expand into the developing world, notably China and Southeast Asia, in a trend that is expected to accelerate.

To confront this profoundly difficult operating environment, we will establish and commence execution of our 16th medium-term business plan in April 2011. Through the implementation of this plan, Yushiro Chemical will be building and enhancing our product-development, sales, and production frameworks for services in Japan and then continuing on to China, Southeast Asia, and worldwide.

Yushiro Chemical advocates the corporate slogan “Way of Mutual Progress,” a stance that enables us to raise enterprise value, contribute to society, and work for the development of both society and industry. I will continue to set a clear course for the employees of the Yushiro Group and I am prepared to set forth and fulfill my responsibilities as the company’s leader. I ask all shareholders and other stakeholders of Yushiro Chemical to continue to favor us with your support and encouragement.

Eiichi Ogo
President
Yushiro Chemical Industry Co., Ltd.