The other day, we held our regular Investor Relations (IR) meeting at the Tokyo head office. Despite the rain, over 100 analysts attended the first IR meeting held in the new Tokyo head office since its relocation to the Shibaura Renasite Tower in Tamachi. Unlike our previous conference room on the first floor, the room used this time featured a high ceiling and commanding view from the 12th floor, allowing me to clearly see the face expressions of the audience.

The meeting started with my presentation on the theme of “Returning to a growth track and towards achievement of VISON 2012.” In the presentation, I reported on our progress regarding restructuring and cost reductions, key factors for further growth, as well as challenges and future initiatives in each business segment. Thanks to our efforts so far to strengthen our overall structure, we are gradually moving towards a leaner and tighter corporate body. As such, we will most likely be able to return to pre-Lehman shock profitability levels in the second half. The key factors for our future growth include: (1) our approach towards emerging countries, such as China, India and Brazil; (2) capturing the demand of electric and communication infrastructures; and (3) developing environmental-friendly technologies, such as products for energy-efficient vehicles, recycling energy, superconductors and power devices.

Following my presentation, Mr. Hideaki Inayama, Managing Director in charge of accounting, made some additional comments on the financial results of the second quarter. Then Mr. Atsushi Yano, Managing Director and head of the info-communications business, explained about the recent activities of the optical and electronic devices business. As a result of the reorganization between Sumitomo Electric and Eudyna Devices Inc. in August 2009, Sumitomo Electric assumed responsibility for the entire business regarding sales and marketing, strategic planning, as well as research and development of optical and electronic devices. Meanwhile, Eudyna was assigned product development and manufacturing, and changed its corporate name to Sumitomo Electric Device Innovations, Inc.

Recently we were awarded the title of Cisco Supplier of the Year for 2009, which is a good indication that we are favored by our customers. We will draw upon the synergy effects of the reorganization and vertical integration from materials (chemical compound semiconductors) to optical devices and modules, in order to secure our position as the world leader in our industry.

In the question-and-answer session, we received some questions regarding market trends and prospects in our business fields including wire harness, optical fibers, electronic devices and electricity. We did our best to outline our intentions. The session was a good opportunity to communicate with the audience.

Although the economic situation remains unpredictable due mainly to the appreciation of the yen, increasing commodity prices, and stagnant employment and consumption, we will focus on strengthening our corporate structure and developing new businesses, so as to meet the expectations of our stake holders. We appreciate your continuous support in moving forward with these initiatives.