Please allow me to begin by expressing my appreciation for the longstanding support of our shareholders and investors.

Regarding the medium-term manegement plan of our Group "Create Together 2018" that ended in the 2018 fiscal, we were unable to achieve the manegement target of 90 billion JPY in net sales and 5.4 billion JPY in operating income because of changes in the external environment, such as increase in raw fuel prices and the economic slowdown in China, which has become evident since November 2018, as well as because of delay in the launch of new products with added value and production troubles, etc.

To achieve further development following the previous basic line, we started the 5-year plan with Fiscal Year 2019 as the first year: "SAKAINNOVATION 2023." In this plan, we have set our consolidated numerical targets for the final year of the plan (Fiscal Year 2023) at over 8 billion JPY in operating profit, an operating profit rate of 7% or higher, and ROE of 6% or higher. We will improve the productivity of 6 major business areas (electronic materials, cosmetics materials, resin additives, catalysts, high-refractive materials, and healthcare business), expand the sales of core products and newly developed ones, and enhance our "earning power."

Under "SAKAINNOVATION 2023," we will work on the following manegement issues to achieve the numerical targets and continuous growth.

1. Build a consistently profitable structure by regaining our earning power
2. Establish environment- and human-friendly factories and offices through reconstruction investment
3. Work on new businesses looking ahead to the society’s next 10 years
4. Achieve stable and continuous dividends with a target of 30% or more of the total return ratio

With unique functions, our products have been helping our customers' dreams and ideals come true, and supporting their lives behind the scenes. We will continue to explore and develop new businesses, technologies, and products, aiming to become a group of companies that creates INNOVATION.

We would appreciate the understanding and support of our shareholders and investors in our endeavors.