I would like to take this opportunity to express my gratitude to our shareholders and investors for the continued understanding and support they show for the Kyorin Group.

The business environment surrounding the ethical drug industry is becoming increasingly severe. Under these circumstances, the Kyorin Group has formulated the long-term vision HOPE 100 with an eye to 2030 when KYORIN Pharmaceutical Co, Ltd., its core subsidiary, will celebrate the 100th anniversary of its founding, with the aim of evolving into a company that supports healthy lifestyles through its business.

In the medium-term business plan HOPE 100 Stage 1 (fiscal 2010 to fiscal 2015), which we positioned as the first step in realizing the long-term vision HOPE 100, we established "business organization, the building of a system to promote each business, and the enhancement of the driving force of each business" as our statement and sought to maximize the spread of our main products by expanding the development pipeline and deepening the franchise customer (FC) strategy in the ethical drugs business. We also took steps to build and promote a new pharmaceutical business model (PC Model: Pharma Complex Model) that would develop ethical drugs in a compound manner and achieved results. In the healthcare business, we launched the environmental hygiene business as a new business.
With respect to performance targets, although consolidated net sales fell short of the target, operating income achieved an amount close to the target, both of which reached a record high.

To further strengthen this foundation and promote sustainable growth, we have recently formulated a new medium-term business plan HOPE100 Stage 2, which we position as the second step in realizing our long-term vision.
The Group is facing unprecedented changes in its business environment, given that the age of the ratio of 80% generic drugs has come and that the patent of Kipres, its main product, will expire. In this turbulent environment, it is difficult to address challenges with conventional thinking alone. Accordingly, in Stage 2, we have established “promoting sustainable growth through innovative changes (changes and innovations) to realize our long-term vision” as our statement in order to drastically rebuild the past scheme to execute business and create and practice new approaches that do not exist as an extension of past convention. We are working with determination to achieve our performance targets by executing our business strategies (four focused strategies and two cultivation strategies) and organization strategies.

To realize the long-term vision HOPE 100, the Kyorin Group will work on the new medium-term business plan HOPE100 Stage 2 with the concerted efforts of all employees.