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New-year greeting from the President of Tokyo Boeki Steel & Materials Ltd. in 2012

Tokyo Boeki Steel & Materials Ltd.
President & CEO: Masayoshi Tanaka

I would like to wish everybody a happy new year.
In early spring last year, Japan suffered unprecedented destruction from the Great East Japan Earthquake. The huge tsunami caused by the earthquake brought catastrophic damage to the Pacific coastline in the Tohoku & Kanto regions. This was an iconic event of Japan in 2011. While recovering from the impact of the earthquake and subsequent tsunami, Japan also received direct and indirect influences of the economic downturn in the world’s major countries in 2011, with the European debt crisis and a record strong Japanese Yen.

In the Chinese/Asian market, where Tokyo Boeki Steel & Materials Ltd. is expanding its business, high growth is expected in spite of a slight slowdown in China and the impact of damage on manufacturers caused by massive floods in Thailand. In particular China, our major business partner, has already started easing its monetary policy and bank lending. It is expected that the rate of growth will not fall below 7-8%. In addition, in Indonesia, high growth is expected thanks to counter-inflationary measures, and the ratings of the international rating agencies on Indonesia has been improving. What role each of us is able to play and the manner in which we can overcome challenges in these growing markets will be a major focus in 2012.

The 6th term, ending this March, is the last financial year of Tokyo Boeki Group’s 2nd mid-term plan. The 3rd mid-term plan starts from the next financial year in April. In terms of markets, with the Japanese economy struggling we will develop further in the Asian market by revitalizing the representative offices in Hanoi & Ho Chi-Minh City (Vietnam), Jakarta (Indonesia) and Kolkata (India) and we will expand overseas from our bases in the Japanese, Chinese and Australian markets.
In China, we will develop new business by deepening relationships with our joint venture partners. In particular, with progression in the Shanxi Jincheng Coal Complex Project, where we have made a capital contribution, we will expand coal sales through Xiangxi Dongjin Coal Ltd., our coal sales company established last April.

Also this year, we will develop global human resources who will become leaders in Tokyo Boeki Steel & Materials Ltd. in the future. We expect these people to grow as true business people who can structure overall ‘enterprise businesses’. We expect younger employees to tackle new business development actively under our on-the-job training program with management, and to successfully apply the ‘DNA of value creation’, the management philosophy of Tokyo Boeki Steel & Materials Ltd, on organizational basis.

The global economic outlook for the coming year is not optimistic. Tough times will continue, but let us set high targets and proceed positively. We expect everyone to keep running with the spirit to overcome any difficulties and to continually go forward. The results will be achieved through a spirit of not being afraid of challenges and a belief to overcome obstacles by oneself.

Finally, I would like to wish good health & all the best to all and your family members for the year ahead.

*This message was addressed to all officers and employees by President & CEO Masayoshi Tanaka on January 4, 2012.