To Our Shareholders and Investors

In fiscal 2011, conditions in the Hitachi High-Technologies Group's operating environment remained exceptionally challenging, and this inevitably led to lower sales and earnings for the year. In addition to the lingering effects of the Great East Japan Earthquake, our environment was impacted by financial instability in Europe and a strong yen, among other factors. But while the effects of the March 2011 disaster were enormous, thanks to the support of our customers, suppliers, and the tremendous effort shown by all Group employees, we were able to minimize the impact on operating performance.

Today, the Hitachi High-Tech Group is implementing its long-term management strategy "CS11" (Corporate Strategy 2011). Drafted in 2011, CS11 is aimed at accelerating growth and boosting our market presence in the coming years. For fiscal 2012, we are pushing to steadily enact a management policy composed of three key components: "Strengthen the business portfolio by shifting resources to growth fields," "Drive global business expansion," and "Promote business creation that will speed up development."

In Electronic Device Systems and Science & Medical Systems, we are aggressively launching new products tailored to customers' needs in a bid to expand our market share. In tandem, we are completing business structure reforms in Fine Technology Systems, a division where issues had emerged, and moving to shift resources to organic light-emitting diode (OLED)-related operations and other new businesses. In trading divisions, where a push to build a global network is underway, hopes are high that these divisions will lead business expansion in new growth fields, including social innovation, and environment and new energy. Together with expanding and bolstering global procurement capabilities, we are creating businesses that combine materials procured by the trading divisions with our proprietary products to promote businesses that will deliver new added value in markets where growth is anticipated. We also intend to focus more intently on our role as the trading company for the Hitachi Group by encouraging deeper ties, expanding sales of Hitachi Group products, and through expanding global procurement capabilities.

Our growth as a global company hinges on the presence and cooperation of our many stakeholders, including our shareholders, investors, customers and employees. In addition to the corporate vision and CS11, last fiscal year we formulated the Hitachi High-Tech WAY, a set of principles that also embodies the Hitachi High-Tech SPIRIT. All Group employees are putting the Hitachi High-Tech WAY into practice as we demonstrate awareness and respect for compliance, the environment and human rights through our business activities, work for ongoing improvements in risk management and other internal control systems, and ensure extensive information management and appropriate disclosure. At the same time, we are determined to make robust corporate governance even stronger, to evolve into a company that embodies the essence of corporate social responsibility.

Going forward, we will continue to do our utmost to offer high-value-added solutions to advanced and cutting-edge customers in order to meet and exceed the expectations of our shareholders and all other stakeholders. As always, your support will be vital to our success.