The global economy is currently undergoing yet another major period of transition, with many industrialized countries, including Japan, now faced with market maturity. Meanwhile, many developing countries are experiencing rapid modernization and exhibiting astounding rates of economic growth. Furthermore, as the various geographical and industrial barriers that once defined the supply chain gradually make way for a more borderless arena, the general Japanese business environment and in particular the paper distribution segment in which we are engaged is becoming increasingly severe, necessitating that we respond even more swiftly to the dramatically changing business conditions. Since its establishment in 1845, the Japan Pulp and Paper Group has played a pioneering role in the development of the domestic, and to a certain extent, the overseas paper and paperboard distribution sectors and has endeavored to continually enhance and strengthen its functions in response to the needs of the every-changing times. Given the already matured nature of the domestic Japanese market, while continuing with its present paper and paperboard sales activities, the future strategy for the Japan Pulp and Paper Group will involve the proactive expansion of its overseas operations combined with diversification into new business fields including raw material recycling and environment-related business activities both in Japan and overseas, with an emphasis placed on promoting efforts to realize synergetic effects from the combination of these new activities with our core paper and paperboard trading businesses. The basic ethos upon which the company’s traditions are upheld is based on the concept that only by acting with the benefit of others in mind will one achieve true gain (Jiririta, in Japanese). With this as our guiding principle, we will sincerely endeavor to prove ourselves worthy of the trust that our numerous stakeholders have placed in us. To this end, I would like to take this opportunity to ask for your continued understanding and support as we embark on this large-scale business expansion phase. President Kenzo Noguchi June 29, 2010