News Room 2008 (The former Furukawa-Sky)

New Year Address by the President & CEO (Summary)

January 4, 2008

Welcome to 2008. We would like to extend our sincerest wishes for health, happiness and prosperity to everyone in this new year.

In reviewing the events of last year, we had new companies commence operations overseas in Greece, Vietnam and China. Meanwhile, here in Japan, we established FS Green-net Co., Ltd., a subsidiary for actively creating employment opportunities for people with disabilities. Furthermore, PT. Furukawa Indal Aluminum received an award from an important customer, while on the technology front, our forge welding technologies received the Oyamada Medal, the aluminum industry's most prestigious award. Overall, last year was filled with many satisfying developments.

The environment surrounding us, however, remains harsh, with declining markets for general materials used in the IT and construction sectors, which has resulted in a slump in sales. The prices of other raw materials including crude oil have also gone up, increasing costs. These factors have cast a large shadow over group management.

We were not able to meet our financial objectives in the previous fiscal year. And so far, the current fiscal year has also been greatly disappointing; operating income for the first half of the fiscal year has fallen short of our goals by \1.8 billion. With only three months remaining in the current fiscal year, I call on all of you to muster your knowledge and strength so that we can achieve the objectives originally set for the second half of this fiscal year and also offset as much as possible the shortfalls we experienced in the first half.

Given these issues, the slogan for this new year is, "Achieve our objectives and enhance the corporate value of the entire group."

As well as achieving the objectives originally set for the second half, we must do everything we can to meet the goals for fiscal 2009, determined under the Mid-Term Consolidated Management Plan. We must each set and work toward our own specific individual goals to achieve our common, major goals, so that we can provide Furukawa-Sky with formidable competitive strength to move ahead in the market and gain a solid foothold for future growth.

We face the following key challenges.

1. Maintaining thorough compliance: Adhere to all compliance requirements and demonstrate exemplary behavior as a corporate citizen.
2. Achieving a record of zero accidents: Involve everyone in following the basics and developing a safe workplace.
3. Addressing environmental protection issues: Raise awareness of environmental issues and steadily implement environment improvement plans.
4. Maximizing customer satisfaction: Reduce customer complaints related to quality while delivering services that accurately reflect customer needs.
5. Strengthening profitability: Realize the fruits of investment as quickly as possible and strive for a globally competitive level of profitability.