Greetings

First, we would like to thank you, our shareholders, for your continued support.
 This is to inform you that our company's Business Report for the 38th fiscal year (from October 1, 2015, to September 30, 2016) is now available for your review. On this occasion, I would like to say a few words.
 In this fiscal year, we have faced a difficult management environment, due to factors such as the major shift in the exchange environment due to the appreciation of yen and the somewhat subdued performance of the global economy. Given the situation, we have made efforts to strengthen the production systems in Japan and India, carried out sales promotion measures to create customer demand, and made technological improvements. Thanks to these efforts, our sales, gross operating income, and operating profit have reached the highest levels ever recorded. Once again, we heartily appreciate our shareholders' assistance and cooperation. Taking into account earnings, financial conditions, etc., in a comprehensive manner, we have decided to pay a dividend of 40 yen per share, and payment has already started from December 2.
 It is expected that we will continue to face a difficult management environment, affected by factors such as the risk of exchange fluctuations and the instability of the global economy.
 Under such circumstances, we will exert efforts to strengthen the structure to secure profits and further enhance corporate value. First, we will promote the strengthening of our production systems in Japan, through the functional enhancement of the Shizuoka Factory and restructuring of the headquarters factory, and reorganize the production systems in India through the establishment of the third factory in that country. Second, we will endeavor to enhance the scale of our business, by initiating the development of large-sized machines on our own, streamlining existing sales channels, and establishing a technical center in the U.S.
 We hope our shareholders will look forward to our company's further growth, and we would greatly appreciate your continued encouragement.

December 2016
Chairman and President
Daiichi Aoki