Fiscal 2014 New Employee Initiation Ceremony

On behalf of the members of the newly established UACJ, it is my pleasure to welcome you, our first new recruits, to the company. Congratulations to each and every one of you.

I'm delighted to see you all here today, and would like to take this opportunity to briefly explain the current conditions for UACJ and our vision for the future.

A new governmental administration took up office in Japan at the end of last year, and since that time, the economy has been undergoing a series of reforms collectively referred to as Abenomics. They include a bold monetary policy, a flexible fiscal policy and a growth strategy that encourages private investment.

While these policies have contributed to improving domestic consumption and increasing exports, they have also led to increases in the cost of commodities such as electricity, fuels and raw materials. Unfortunately, for an elemental materials manufacturer like UACJ, this means we're not quite experiencing the full benefit of reforms.

Additionally, in the long-term, in view of Japan's aging population and a dwindling number of consumers, we anticipate continued contraction of the domestic market. Even with the significant change in foreign exchange rates, our customers continue to shift manufacturing bases overseas. As a result, further contraction of the Japanese market appears unavoidable.

Conversely, consumption is on the rise in other parts of Asia and regions overseas, and we foresee great potential in those markets. Establishing supply chains in growth regions has become nearly indispensable for global corporations. But as major aluminum manufacturers move into those regions, we've recognized a sharp rise in competition from countries such as China and South Korea, who are beginning to show their strength in this field. In such a climate, only the strongest of companies will survive; a fact that is the same regardless of the industry.

The good news is UACJ was newly created so that we can respond to such changes in the economic environment.

On October 1st of last year, our company, your company, took form through the merger of Japan’s top two rolled aluminum manufacturers, Furukawa-Sky Aluminum and Sumitomo Light Metal Industries. Since that time, we have concentrated our efforts on ensuring our place as a globally competitive, major aluminum corporation. We are building a solid three-pronged supply chain with bases in Japan, Asia and the United States. UACJ Thailand Co., Ltd. (UATH) will respond to increasing demand in Southeast Asia and surrounding areas and Tri-Arrows Aluminum Inc. (TAA) , our base in North America, will cover the Americas, the world’s largest aluminum market.

QCD is a performance measure referring to quality, cost and delivery. It is vital that we use this supply system to deliver major products to global markets, and evolve as a competitive company with QCD above and beyond that of our contenders.

Accordingly, it is of the utmost importance that we maintain a strong sense of urgency, aim for true integration, and quickly create large-scale synergistic effects from integration. Specifically, we have set out four main objectives: domestic restructuring, global expansion, development and commercialization of new products and technologies, and the local empowerment of works, sales and management divisions. All members of the UACJ Group must work together to swiftly and steadily implement these objectives.

As new employees, I have faith that your youth and dynamism will go far in making UACJ a success in these difficult times. I trust that each of you will make the most of your talents, and look forward to seeing impressive results. On that note, there are two important favors that I would like to ask of you.

The first is that you proactively engage yourself in your work, with the personal aim of continuing to grow day by day. Our company, and society, is undergoing great change, and very important work awaits you, both in Japan and overseas. I expect all of you to be key assets in our cause.

When all is said and done, a company is only as good as its people. Its existence relies on the level of talent and dedication displayed by its employees. It is vital that you take an active, not passive, approach to your work. Success requires that you give 110 percent every single day. At the same time, the Company will be supporting you, offering a vast educational environment to grow in.

The second thing I ask of you is that you value a clear, shared vision for the Group and its goals, and cooperate with those around you. The more difficult the challenges we face, the more important a clear vision becomes. A clear vision is often lacking in the world we live in. But when we, either as an organization or as individuals, possess clear, shared objectives in our work, there is very little that can stand in the way of success. When a clear, shared vision is established, cooperation becomes the keyword for professional strength and personal growth.

With a firm commitment to vision and cooperation, your own role and challenges will become clear. By striving for success, implementing PDCA cycles and amassing experience, you will become an invaluable professional asset, skilled and knowledgeable. Please, take these words to heart, and continue to grow, as a person and employee, throughout your career.

As a company, UACJ offers opportunities to excel and grow across a variety of fields, both in Japan and abroad. Be proud that you have been chosen to join UACJ, the world’s third largest aluminum manufacturer. Stay healthy in mind and body, and work hard together as members of UACJ to ensure our company's success.

As new employees of UACJ, and contributing members of society, I wish you all a long and fruitful career. Thank you.