Fiscal 2016 Employee Initiation Ceremony Opening Address from President Okada

Welcome everyone!
On behalf of UACJ, congratulations for making the decision to join us! We are both thrilled and encouraged, as you become members of the UACJ family here today.

The flat rolled aluminum industry, where you are beginning your career in the business world, is expected to continue growing at a steady pace. In Asia, the demand for beverage cans, electric home appliances, and construction-related aluminum materials continues to expand owing to positive economic growth and increasing populations in many countries. In Europe and the U.S. meanwhile, the amount of aluminum being used to manufacture automobiles is on the rise backed by a trend that demands lighter cars. Furthermore, LNG tankers and aircraft/spacecraft, for which thick aluminum sheets are used, are experiencing robust sales, contributing to ongoing expansion in the global aluminum market.

Based on the UACJ Group Global Step I Mid-term Management Plan implemented in April last year, our main policy is "expand growth products in the transportation field―focusing on automobiles―and the energy field, and strengthen business in growth regions such as Asia."

In Asia, the Rayong Works of UACJ (Thailand) Co., Ltd. began using a fully-integrated manufacturing line in August last year; all operations coming online after starting construction in 2012. Cutting-edge technologies are used throughout the Rayong Works, one of the most advanced manufacturing facilities in the world. This plant plays a key role in aluminum sheet manufacturing, delivering both high quality and cost competitiveness.

In North America, our joint venture with Constellium N.V. manufactures aluminum materials for automotives, referred to in the industry as body-in-white panels. A continuous heat-treatment and surface-treatment finishing line capable of producing 100,000 tons per year is expected to become operational in June. Additionally, the acquisition of shares in SRS Industries, LLC, a manufacturer and seller of automotive aluminum structural materials, was announced only a few days ago. This will enable UACJ to meet wide-ranging needs for automotive aluminum materials in North and Central Americas.

In the category of automotive heat exchanger materials, which is regarded as one of our strategic products, new sales companies have been established in Europe and China. As a result, we have completed a network capable of ensuring a global supply via four hubs, one each in Japan, Thailand, Europe, and China.

It is important for everyone that has joined UACJ today to understand that you, too, have an active role as part of the key force in the company’s challenge to become "an aluminum industry leader in the competitive global market." I look forward to you exerting your youthful ability and fresh sensibility to the fullest.

I would like to take this opportunity to request those of you beginning your careers at UCAJ today to always keep three points in mind.

First, "place priority on taking action." Excellent strategies alone will not produce end-products. You must first take action to achieve a result.

It is important for a business person to identify visions and objectives for the organization or his/herself, put it into action immediately, quickly and accurately understand changes in the environment while on the run, make appropriate corrections when needed, never give up, and produce a result.

I want you to keep in mind that one of the basics as a member of society is to gain experience. This is done by accomplishing tasks one by one. However, instead of simply just doing something because it is assigned to you, please approach every task proactively, thinking about what is required of you to complete it properly.

As you do this however, without a doubt, you will experience making mistakes too. Everyone does, including me! But please, when you make a mistake, instead of regretting it, reflect on what led you to making it, determine the cause, and learn from it so that you do not do it again. Life is full of opportunities for trial and error. The experience of thinking on your own and taking action will help you grow immensely, and give you the power to attain goals no matter how high they are.

UACJ always supports the challenges taken on by its employees, even if unsuccessful. I hope you will never regret not having tried something because of the fear of failure.

The second point is, "the importance of self-motivation." The business environment surrounding the UACJ Group places us at the center of global competition, with dramatic change occurring all around. If we simply maintain past perspectives tied to traditional values and behavioral patterns, we could disappear, swallowed by the gigantic wild waves of change. In order for UACJ to continue contributing to society and to survive, each employee must be motivated, and have foresight and a sense of urgency at all times.

In order to grasp changes in the environment and customers’ needs in a timely manner, an outward-looking perspective and customer-oriented approach are required. Furthermore, being able to meet customers’ needs and develop competitive products requires targeting ever-higher levels of quality, performance, and cost-efficiency. In order to overcome our competitors at home and abroad, far more-advanced inventions, new ideas and challenges are paramount to our success. Please approach your work with the attitude of "outward, upward and onward."

Third, is trust. It is vital that people can trust you, both as an individual and as a member of UACJ. The management philosophy of the UACJ Group is, "strive to offer products and services deserving of our customers’ satisfaction and trust, and to make broad-reaching contributions to society through sound and sustainable business development."

In order to maintain sustainable growth in our businesses, earning and maintaining the trust of stakeholders, including customers, shareholders, employees, and society as a whole, as well as enabling them to recognize our worth, is paramount. But if a problem occurs, it could lead to the instantaneous loss of confidence by members of society.

Please approach jobs and tasks assigned with sincerity and integrity, regardless of how simple or monotonous they may seem. Equally important is to ensure strict compliance with all laws and regulations. If all employees take their work seriously, never overlooking problems however small, and continuously and steadily showing improvements, both employees and the Group as a whole will garner a high degree of trust from customers in terms of "safety, the environment, and quality."

Regarding relationships with people related to work, both in- and outside of the company, respecting and understanding each other’s positions and acting based on your own firm beliefs and values—without being influenced by others—will lead to a deeper sense of trust. Once trust has been formed between concerned parties, it leads to cooperation between the individuals or organizations, and that relationship, in turn, leads to further organizational strength. Always remember to place importance on trust.

With global business opportunities expected to increase, I would like to draw particular attention to being conscious of and having the flexibility to accept and understand overseas cultures and customs. Please focus on developing your ability to convey ideas and opinions accurately, and patiently at times, in order to be accepted. Naturally, language skills for communications are required as well, so please work hard to excel in this area too.

In addition to these three points, there is one other issue I wish to mention that takes even greater priority.That is taking care of your health and ensuring safety throughout your career. In order to have an affluent and fruitful life, both in business and in private, all members need to be healthy—physically and mentally—and the workplace environment must be safe and comfortable. Please keep in mind that safety comes first, and that as a member of society, it is important to maintain physical and mental health.

UACJ offers employees a wide range of opportunities in many fields, with important roles both in Japan and overseas. Be proud of having joined the UACJ Group, as we are honored that you are here. Together we will work together supporting member companies that are contributing to society through a strong tradition of manufacturing that satisfies customers around the world.

In ending, as new employees of UACJ, I wish each and every one of you success as a member of society and throughout your business career. Thank you.