The environment surrounding the Hitachi Cable Group today is extremely severe, and it is highly sobering to be entrusted with the grave responsibility of serving as President in this crucial period. Over the past few years, the Group has implemented a number of business reorganizations, both internally and externally, as well as cost-cutting initiatives. However, the severity of the changes to the market environment following the collapse of the IT bubble has completely exceeded expectations. Despite our initiatives to improve earnings, we remain in the red. To break free of this downward spiral and achieve a full recovery, we must fulfill a number of objectives, including purchase order targets and cost reduction initiatives, while building a solid business foundation by aggressively disposing of non-performing assets. I am aware that this year will be a decisive year for Hitachi Cable.

Among the priority tasks that we must complete is the enhancement of our competitive strength through selectivity and concentration.

The Hitachi Cable Group's competitive relations, as well as the stage for this competition, have been transferred from Japan to global markets, both in name and reality. Meanwhile, because the Group's resources are limited, its traditional approach of equal investment in all of its businesses has proven inefficient and it fails to secure adequate revenue. It is now essential that we focus our investments on winning businesses, and we must be prepared to withdraw from businesses that show no prospect of return on our investment. In implementing this program of selectivity and concentration, we will position "T-business" as our fundamental business and nurture "E-business" as the engine of growth. By doing so, we will strike a healthy balance between the two in conducting our operations and convert the Hitachi Cable Group into a business conglomerate that is fully capable of prevailing over the global competition.

Another task concerns "making products" and "nurturing people" to prevail over the global competition.

Today, more and more customers are demanding shorter lead times and smaller order lots. To pursue customer satisfaction, I believe that is vital that we revisit the concept of quality, which is the root of all manufacturing, while constructing a highly efficient and flexible production framework. It is essential that each division works together to maintain stable product flow and that we are able to flexibly maneuver personnel in response to fluctuating work volumes. In addition to implementing multi-operator systems, multi-tasking will also be adopted by our engineering, sales, and administrative staff. I want each and every associate to continue to implement self-innovation as you strive to attain world standards in your respective assigned fields so that we can become a mighty legion capable of combating any problem, no matter how formidable, head on and consistently prevailing.

Through these efforts, I believe that the Hitachi Cable Group will reinvent itself as a solid, streamlined corporate group. By running our business along the right path we will gain customer satisfaction, become a excellent "E-company" worthy of society?s trust, and be capable of making Hitachi Cable a company teeming with energy, in which we can all take pride. I am prepared to commit myself totally to the Hitachi Cable Group's recovery and I hope that you will extend to me your support and cooperation.