Mr. Yamashita’s New Year Speech 2016
Happy New Year to Everyone!
I hope you all had a good vacation.
In retrospect, there were some major factors which influenced our business last year. One of
them was the long remaining effect of the backlash after the huge last-minute demand
before the increase of consumption tax two years ago. Another factor was the increase of
aluminum metal price for us due to the depreciation of Japanese Yen. With regard to the
industry, the export-oriented companies were in general in good form but the domestic
demand-oriented companies were rather in a dull form.
In this context, the aluminum material price LME in US dollar has been decreasing since the
second half of last year. I believe this will affect our company positively. It will take some time
until that effect becomes clearly reflected in our business results. I believe that we are
already seeing some effects since the end of last year. However, our business results are
not just dependent on the external environment. There are many other companies out there
in the same industry which are having good results in the same environment. It is important
to have a winning setup in the market.
For us, last year was truly the first year to have a global structure. There had been overseas
bases such as Shanghai Tateyama - business of Tateyama Advance Company - and other
subsidiaries in Taiwan and the Philippines - business of Sankyo Alumi Company. Last year
in March, two large M&As in Europe and Thailand, for which we have been working for
some time, were realized. Moreover, we built a plant of Sankyo Tateyama Alloy Thailand and
we are now working toward the start of its operation this spring. These are our overseas
activities. The renowned European customers, with which Aleris had business, are trying to
be more and more active in Southeast Asia. With the high technical capabilities of Europe
and Japan as a basis, we will have production bases in Southeast Asia from which we will
supply our products. That means the creation of synergies and that is the story line of our
M&As. I want all of you to understand that well.
However, we aren't just focusing on growth in overseas markets. We are also striving for
growth in the domestic market. Sankyo Alumi Company opened its Tokyo metropolitan area
showroom last year. Besides, Sankyo Presentation Center in Tokyo, which is for the building
industry, was renewed as well. The advertising campaign using 'Doraemon' (a famous
Japanese cartoon character), which was started two years ago, has been continued.
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Tateyama Advance Company has made various system and facility investments. In
summary, we have been taking all sorts of actions in Japan.
The basic direction of having the solid 'defense and offence' remains also valid for the
second half of the business year. Considering the situation of last year, the 'defense' side
hasn't borne fruit yet. As for the 'offence' side, the seeds were sown but the synergy effects,
which we are actually aiming for, will be obtained in the future.
Now I would like to talk about each company's focus. Sankyo Alumi Company should
concentrate on increasing its share of the Japanese market. That should be done through
the joint effort of Production and Sales. To have an excellent performance regarding cost,
quality and delivery time is especially essential to win in the market. The window sash
'ALGEO', which was introduced in October last year, is a key product that will affect the
future of our company. I want its members to work on further increasing the sales. For
Sankyo Material Company, this year is an important year to establish itself as a truly global
supplier. For this, it is essential to have a solid base. For Tateyama Advance Company, it is
necessary to always focus on the trust of the customers. It is essential to concentrate on
quality, delivery time and ability to make proposals, and to achieve customer satisfaction.
Among the three companies within Sankyo Tateyama, Tateyama Advance is the closest to
the top position in the field, in which it is doing business. I want its members to work on
further enhancing its position and expanding its business fields.
The direction for the second half of the business year was announced in December. This
shouldn't just stop in the planning phase. For a company to develop, it is necessary to
deliver results. When one really gets attached to the outcome, a bright future will be within
reach. The plan for the second half contains various bright seeds for the future. Now it is
important to accomplish the tasks and achieve the goals. And for that, everybody's health
and safety will be the basis. Let's do our best to move toward the bright future together.
Thank you.
(Translation: STEP-G GA Team)