June 28, 2010,09:58 +0900(JST) Shareholders' General Meeting
On June 25, the annual shareholders' general meeting was held. Shareholders' meetings provide great opportunities for company management to engage in two-way direct communication with shareholders, listen to their opinions and convey our frank views to them. I attended this year's shareholders' meeting with far greater care than usual, since it was the occasion of reporting on our overcoming the once-in-a-century economic downturn and our plans for future development.
During the question-and-answer session, at first we didn't get any questions. We nevertheless urged the audience to feel free to ask questions, saying that we were well prepared. The first question finally came, and it was about our efforts at improving profits. Fortunately, this was followed by many other questions.
Some questions concerned the smart grid, cloud computing and water-related business. Regarding the smart grid, we explained that we are working from a long-term perspective -combining all our technological capabilities-with the NEXT Center and Power system R&D Laboratories, newly established to focus on developing hardware such as superconducting units and power devices.
One shareholder suggested that we put up an advertising billboard at Universal City Station. We will seriously consider this suggestion, while looking into its cost effectiveness, since PR is an important matter for us, even if we are a B-to-B company.
Another question concerned how business unit performance was evaluated in the process of determining officers' remuneration. We replied that, while we believe that officers are responsible for business performance, this is never evaluated on a short-term basis, considering the fact that some positive results come about only after steady efforts over 10 to 20 years, as exemplified by such success stories as artificial diamonds, optical fiber and compound semiconductors.
All in all, we of the management team were able to proudly present the company's FY 2009 business results, which were far more positive than initially forecast, although due to the influence of the worldwide recession, sales amounted to about 70% of our best years. We attribute our positive results to our strong group-wide efforts at keeping our organizations appropriate to our abilities and reconstructing our cost system, promoting expanded and deeper internal solidification, and pursuing educational rearmament to strengthen our corporate constitution.
At the general meeting, the management team offered our apologies to the shareholders for the anxiety caused following the on-site investigations by the Fair Trade Commission. At the same time, we expressed our firm determination to pursue fair corporate activities worthy of society's trust by further reinforcing our Anti-Monopoly Act compliance system.
In closing the general meeting, the management team renewed our commitment to hard work and effort toward realizing steady contributions to society through sustainable growth and development, and the secure return of profits to the shareholders.