Please allow me to extend my warmest and best wishes to all our shareholders and investors. Also I would like to express my gratitude to all of you for your continued support and understanding of Daiso Group.

We have to now actively invested in our functional chemical products, as well as strengthening our sales activities by bolstering our network overseas, in the meanwhile we have been putting our efforts into developing our next generation businesses that are expected to generate income for the company going forward, such as the manufacture of active pharmaceutical ingredients (APIs) and their intermediates, as well as our electrode business.

We have set ourselves a challenging goal of ¥10 billion in ordinary income in fiscal 2015, the year in which we will mark Daiso's centennial – a goal we refer to as "Target-100". In 2011 we launched our business plan for fiscal 2011 through to fiscal 2013, which we have named DYNAMIC ACTION and this plan carries goals for its final year of ¥110 billion in net sales and ordinary income of ¥8 billion, with the aim of firming up the foundations for growing our business as we move towards our "Target-100" goals.

DYNAMIC ACTION challenges us to strengthen the 2 pillars of our core businesses, basic chemicals and functional chemicals, as well as building a system that will allow us to win through in terms of global cost competitiveness.

We have positioned the manufacture of APIs and their intermediates, and electrode business as our next generation businesses, and we plan to dramatically expand the scale of these businesses with the aim of developing them into our core businesses at the earliest possible time.

Moreover, Daiso Group will continue the challenge of driving new growth as we plan to create new businesses centered on three fields: electrical and electronics materials, energy and the environment and life sciences, in addition to actively implementing our global strategy as well as our corporate strategy, and encompassing our plans to foster human resources, etc.

To all our shareholders and investors, I ask for your continued support, assistance and understanding as we go forward.

Tamotsu Sato
Representative Director Presidential Executive Officer
DAISO CO., LTD.