2016 New Year's Greeting

Happy New Year! I trust that you all had a safe year-end holiday, and are now returning to work with renewed spirit for the coming year.

This marks the third time the UACJ Group celebrates the beginning of a new year. On behalf of management, I wish to express a special thank you to those members who worked throughout the holidays on new construction or other projects, and extend heartfelt appreciation to employees and their families who welcomed 2016 from their homes overseas.

From the day the company was established in October 2013, the UACJ Group has continued to work tirelessly to become an aluminum industry leader in a competitive global market. Last April marked the beginning of the UACJ Global Step I Mid-term Management Plan, and we began implementing tangible initiatives that will enable us to achieve the goals set out in the UACJ Group Vision for the Future, which was announced in March 2014.

As you are already aware, there are three policies that I believe are important for us to develop and promote. They are:

1. Expand growth products in the transportation field―focusing on automobiles―and the energy field, and strengthen business in growth regions such as Asia.
2. Construct an optimal production network for each business sector utilizing the synergies created through unification, and
3. Develop unique technologies and products by applying our vast technological prowess to fundamental research.

Looking to global developments, fully-integrated manufacturing started at UACJ (Thailand) Co., Ltd. in August last year. During the grand opening ceremony held in November, many of our customers celebrated with us as we announced completion of the first full-scale aluminum rolling mill manufacturing line in Southeast Asia. It was a grand occasion, the atmosphere lively and exciting as we prepared to change from start-up mode to that of mass production and sales. Metaphorically, "We have shifted into high gear and are ready go. Let's see what the future has in store."

In North America, we augmented our capital investment in Tri-Arrows Aluminum, Inc., which is being used to increase aluminum rolling capabilities—including casting capacity—at its Logan Mill. Additionally, regarding our joint venture aluminum materials business for Body-in-White automotive panels with Constellium N.V., preparations are underway to begin production in the first quarter of fiscal 2016.

In Japan, structural reform continues as we proceed to reallocate product manufacturing with the aim of realizing the best product mixes at our domestic sheet manufacturing facilities. We are on schedule to complete approximately 70% of the planned changes within this fiscal year.

While there are few examples of new products and technologies being brought to market, the UACJ Research & Development Division is currently working to introduce a number of technologies.

With the many vigorous initiatives underway in each Group company, I know that every employee has been working hard at the tasks assigned, doing so in different locations and environments. Again, thank you for your ongoing motivation and dedication.

The three important policies are the necessary conditions sufficient for company growth. In other words, this means that if we cannot follow through with all of them, our current value cannot be maintained. We have entered the third year since the former companies were consolidated. As the UACJ Group culture, we must maintain unity and a fair and equitable spirit, consider the global business environment and and not think only about ourselves. Please come together and fight as one, and the Group will move forward growing upward and outward.

In doing so, I would like everyone to consistently be conscious of acting motivated, optimistic and aware. Please do not be easily affect by an outcome, repeatedly use the PDCA cycle, and await the final results.

UACJ Group policy control will be fully enacted this year. I believe it is important for everyone to work together to develop sound Group-wide policy control, utilize reliable PDCA cycles and create a truly dynamic organization.

As I said last year, instead of using a first-class strategy, let's strive to work together applying first-class action to achieve the Global Step I Mid-term Management Plan.

Next, whenever I'm talking to everyone, I always mention "thorough attention to compliance, safety, the environment and quality."

Compliance is an essential factor for ensuring the sustainability of the UACJ Group. As members of society, our existence is based on the willingness to recognize the importance of and abide by society's rules. Always remember, if a problem arises and public trust is lost, regaining that trust is no simple task.

Additionally, if safety, the environment and quality are not improved, development of sustainable business cannot be achieved. This is a universal theme, and cannot simply be thought of as a nice goal. I believe it is necessary to continuously reassess original goals and establish ever higher aims.

In closing, I would like to thank our labor union and Group employees for your understanding and cooperation last year regarding company policies and measures. In October, the UACJ labor union was formed by uniting the labor unions of the two former companies into a new organization. I humbly respect the dedication and passion all related personnel have shown during this process. As communication continues between labor and management and a shared understanding of the issues grows, I look forward to mutual understanding and cooperation on the same level.

My sincere hope for the year is that the UACJ Group will continue to provide fulfilling and extraordinary opportunities, where every employee can work safely, happily and confidently, with zero accidents and injuries.

Thank you.

Mitsuru Okada
President and CEO