The first six months of the year have passed quickly amid a daily flood of negative economic reports. The EU GDP growth has slowed to 1% while the UK, Spain, and Eastern Europe have been hit hardest. Industry will face challenges after the summer. Markets and trading have shrunk, requiring the company to adapt. With fewer customer inquiries, business is being heavily impacted. While restructuring efforts have been made, the declining economic situation has overwhelmed defenses. Shrinking profits are anticipated as no near-term market improvement is foreseen. The priority is adapting the business plan to reality. The company has condensed departments and modified affiliate roles to increase efficiency, with some reducing hours. Only companies adapting to change will survive, so thorough

1. Enhance basic of our daily jobs
6 months of the years had already gone like a dart.
We have never seen so many daily economics articles before since the begging of this
year. Monthly economics related report from media is getting worse by month and GDP of
EU is 1%. UK, Spain and Eastern European countries is most severely hit. Industries will
have difficult situation after summer, too.
Anyway, markets have gone cold and small, so we have to adjust to that size as well. Our
telephones have gone quiet with less inquiries from customer and machinery noise from
production process is also a little. This is big affect for our business.
Although business environment continues to be very severe from the last half of the last
year, all of us have worked on changing company system so that we can still have profit
finally, however, it could not defend enough against worsened economic situation and the
result of the first quarter has very pessimistic details.
There is no grantee for March onwards market condition to be better therefore we can
foreseen the shrinking profit. The most priority is to meet a business plan. We can not
ignore the realty.
During this time, we had changed our organisations such as changing 3 organisations into 1
or 2 to be efficient. We had also changed our 31 sister company’s role so that there is not
overlaps of trading between each other. There is some companies which had been
requested to shorten operating hours to reduce production.
I think only companies which can adopt new way of doing things responding to change in
world can survive. I think there will be deep and through talking within Fastening Business
Group with a good raise of issues. This is a opportunity of reformation our business to
make sure we can providing items and service which can compete others. With this kind of
situation, we have no other alternate than employees and all other people to understand
and reform yourselves to adjust to new era.
I’m expecting all of you to change seriously and lead to efficient work under this difficult
time. In order to survive in the future severe competition, please constantly think deeply
and be creative with team work.
I would kike to request all of your understandings and implementations

2. Make the most of the day!
The first six months have gone by in a flash, along with a daily deluge of economics
reporting such as we haven’t seen since last year.
The media’s economic round-up is looking grimmer by the month and EU GDP growth has
slowed to 1%, with the UK, Spain and Eastern European countries taking the biggest hit.
Industry looks set to face challenging times after the summer too.
Markets have shrunk, trading has come to a standstill, and we must adjust accordingly.
With fewer enquiries from customers, the lines have fallen silent. The whirr of machinery
has dulled. This is all having a huge impact on our business.
In response to the relentless severity of the business climate over the past year, all of us
have worked on adapting the company system to retain our profit. Unfortunately,
however, it has not proved sufficient defence against a declining economic situation and
results for the first quarter are not encouraging.
As there is no indication that market conditions will improve from March onwards, we
anticipate shrinking profits. Our highest priority must therefore be to adapt our business
strategy. We cannot afford to ignore the reality.
So far we have restructured our organisation, condensing three departments into two or
even a single department to increase efficiency. We have also modified the roles of our 31
affiliates to ensure no overlaps in trading. Some departments have been requested to cut
back on working hours in order to reduce production.
I maintain it is only companies that can adopt new ways of doing things in response to
global change that will survive, and I anticipate detailed and thorough discussions within
the Fastening Business Group will generate a range of solutions. This is an opportunity to
revolutionise our business to ensure we can provide competitive products and services. In
the situation in which we find ourselves, there is no alternative but for employees and
stakeholders to learn and adapt to a new era.
I hope you will meet the proposed changes with determination to increase efficiency
during this difficult period. In order to endure the harsh competition that the future holds,
please approach each day with careful consideration and be creative with teamwork.
I would kindly request your understanding and cooperation at this time.