Message from the President

The IBIDEN Group started business in 1912 as Ibigawa Electric Power Co., Ltd. with the mission of serving as the engine that was to drive the local economy. We will celebrate our 105th anniversary in November 2017. We would like to take this opportunity to thank all those who have kept the IBIDEN Group in business for more than a century. In FY2013, we launched our five-year, consolidated, medium-term management plan, "Challenge IBI-TECHNO 105 Plan." Under this plan, we have been working to build a corporate structure designed to adapt to changes in the business environment with the focus on developing human resource necessary to sustain and grow our business over the next 100 years. Specifically, we are implementing a unique operational improvement initiative dubbed IBI-TECHNO innovations, focusing on 5S, TPM, Jikotei Kanketsu (built-in quality with ownership) activities, and cross-sectional teamwork activities, based on Genchi (actual site), Genbutsu (actual thing), and Jigakari (on-site solution to problem). The current fiscal year marks the final year of our ongoing medium-term management plan. While our performance declined sharply in the previous fiscal year, everyone across the IBIDEN Group will work together to build a solid corporate structure and turn the business around.

The IBIDEN Group Will Cultivate Human Resource and Strive to Advance Work Style Reforms Based on the Spirit of IBI-TECHNO Innovation.

We tell our employees that, whenever a problem arises, they should get out to the site to see and solve the problem themselves. That is the way they develop problem-solving skills and earn a sense of achievement that will in turn motivate them to aim high and take on new challenges. It is the kind of virtuous cycle we aim to create.At the same time, we are actively promoting employee health through work-style reforms and other initiatives. While building an operational foundation centering on personnel development takes a lot of time and hard work, our efforts have been steadily paying off. We were recognized by the Ministry of Economy, Trade and Industry and the Nippon Kenko Kaigi under the 2017 Certified Health and Productivity Management Organization Recognition Program. We will continue to focus on personnel development and aim to become a company that embraces diversity in the workplace.

The IBIDEN Group Will Fulfill its Responsibilities as a Company and Advance Corporate Management Trusted by Stakeholders

The Group has set fulfilling its corporate social responsibilities (CSR) as one of its key management priorities. We have incorporated CSR activities that the Group has established thus far and all the results achieved therefrom, as well as rules such as international standards requiring compliance in the IBIDEN Management System, cultivating a spirit among employees to observe them as a matter of course in routine work. In this management cycle, we check operational status and identify problems as we aim to further improve the level of operations. In addition, we will communicate our CSR activities to ensure transparency in corporate management to remain trusted and highly regarded by all stakeholders.

We Will Work on Issues to Be Addressed, Led by Example as Demonstrated by the Management and Through Active Communication.

As the IBIDEN Group moves forward with its CSR management, the management personnel, including officers, demonstrate the ideal behavior to be emulated and each employee acts with a high level of awareness based on understanding and consideration. In the current fiscal year, we will advance work style reforms across the Company with "Good job with Good communication" as the key phrase. We strive to improve operational efficiency and solve problems with superiors and subordinates working toward a single goal and members in various divisions and ranks putting their heads together. The entire Group will continue to promote CSR management, which addresses social issues, as part of its efforts to earn the trust of stakeholders and attain sustainable growth.

We will build a trustworthy relationship with our stakeholders.

We need to initiate and maintain dialogues with our stakeholders and undertake actions by working closely with them. The IBIDEN Group continues its proactive disclosure of information regarding its financial condition, products and CSR and promotes transparent management practices in an attempt to help stakeholders gain an understanding of how the Group is run and decisions are made. We hope you will get to know the Group's range of undertakings discussed in this report, and we welcome your feedback and opinions.

President & CEO

Takeshi Aoki