Message from the President

Striving to achieve business growth and increased corporate value by focusing on the customer's perspectives and actively investing

Let me start by extending our sincere appreciation to our shareholders and investors for their ongoing support and by expressing our heartfelt sympathies to those affected by the Great East Japan Earthquake. We look forward to the earliest possible recovery.

During the fiscal year ended March 2011, we shifted our focus to sales growth. In October 2010, we moved our head office to a location near Iidabashi in Bunkyo-ku, Tokyo. Our proposed solution for office innovation, called EmpoweredOffice, was introduced to all of the company. As a result of the introduction of EmpoweredOffice, we escaped major damage from the Great East Japan Earthquake. Capitalizing on our location close to customers in the center of Tokyo (inside the Yamanote Line), we are stepping up our sales activities and to our customers we are actively advertising the effect of implementing the EmpoweredOffice solution. We also established an office service center in the city of Suita in Osaka Prefecture. Equipped with integrated functions, it offers services to western Japan. The center is well received for its custom-made cloud services tailored to individual customers' needs. In December, we acquired Daiichi Ad System Co., Ltd., which operates contact centers, for answering inquiries and product orders from end users. As a result of these positive actions, our sales achieved a turnaround in the second half, mainly in the business for corporate customers and the telecommunications carrier business, despite the impact of the earthquake at the end of the fiscal year. On the other hand, we did not relax our efforts to streamline our overall costs in an attempt to boost earning capability. The operating profit margin thus hit a record high of 5%.

The fiscal year ending March 2012 is defined as the year in which we capitalize on action that we have already taken to achieve growth. There may be a temporary decline in customer's interest in investment due to the earthquake, but I believe there will be no change in market needs, especially for information and communication technology (ICT)-related services. Instead, fields where we can serve customers are expanding to business continuity planning (BCP), preparations for power outages, cloud outsourcing and beyond. In addition, the fast-growing use of smartphones has been leading to an increase in communication traffic volume and to network expansion in telecommunications carriers. Support for network development is a domain in which we excel. Our management innovation activity is also evolving from an emphasis on cutting costs into activities for achieving growth. We in the Company, while steadfastly considering the customer's perspective, will work as one to raise our competitiveness by proactively realizing market opportunities. We will take advantage of our solid financial position and funding capacity to make active investments, including M&A, and realize business growth.

We will be taking bold efforts to increase corporate and shareholder value through our growth. We sincerely look forward to your continued expectations and support.