Message from the President

Improving group value through an enhanced view on the environment, society, and governance

At Nisshinbo Holdings, we aspire to be beneficial to and earn the steadfast esteem and trust of society, the marketplace, and our stakeholders. To do that, we believe it is important that we grow as an Environment and Energy Company group that respects diversity and works to achieve a sustainable society, and that we achieve both qualitative improvement in our organizational culture and quantitative growth in our performance as a group.

Key to enhancing quality will be a focus on defensive governance, including compliance and corporate ethics, along with offensive governance in the form of swift, bold decision-making. Quantitative growth will require the expansion of existing businesses, the creation of new ventures, and timely execution of M&A and business collaboration strategies. M&A in particular is seen as a major pillar of this strategic growth plan, both in quantitative and qualitative terms. We look forward to developing an innovative, sustainable organizational culture that takes advantage of the creativity and originality that the diversity driven by M&A activity can generate.

Our group strategic business domains include Wireless Communications and Electronics, Automotive Parts and Devices, Lifestyle and Materials, and New Energy and Smart Society.

In wireless communications and electronics, we are particularly focused on IoT, AI and other fields which relate directly to that business and which represent a new age in technology. Last fall, we transformed Japan Radio Co., Ltd. into a wholly owned subsidiary, and this fall will do the same for New Japan Radio Co., Ltd., further bolstering our group business base. In addition, this spring we brought in Ricoh Electronic Devices Co., Ltd. as a consolidated subsidiary, further enhancing our synergy with New Japan Radio.

In April of this year, we also established JRC Mobility Inc., with the goal of applying Japan Radio’s prized information, communications, and sensor technologies to the mobility sector. This will contribute significantly to the autonomous driving, electric vehicle and connectivity domains across the mobility field, including advanced driver-assistance systems (ADAS), as well as ship, agricultural and industrial machinery, drones, and railway vehicles.

At the same time, in careful consideration of our long-term outlook, we have transferred our paper products and foundation brake businesses to other entities, and are also working to restructure our business portfolio in order to efficiently maximize our conglomerate premium.

The world is on the threshold of an era in which market needs will be addressed by proposing and supplying Events and Services derived from Goods. Subscribing to the motto of Challenging towards a New Era of Technological Innovation and Super Smart Society, we will enhance our group competence in the pivotal domains of innovation, technology, marketing, and business systems. The ultimate aim is to more vividly manifest our presence as a cutting-edge Environment and Energy Company group.

In closing, note that beginning in fiscal 2018, we plan to change our fiscal year end to December 31. This will allow us to unify fiscal reporting periods within the group, further enhancing our global business operations and management transparency. In addition, we are considering the voluntary application of international financial reporting standards (IFRS).

We hope you will look forward to the future of Nisshinbo group as we move ahead to advance our group and global management capabilities.

May 2018

Masaya Kawata

President, Nisshinbo Holdings Inc.