The Great East Japan Earthquake caused shock in Japan that exceeded all imagination. Things all around, previously taken for granted, disappeared in an instant. People across Japan reflected on extravagance in their lives and began to consider what is truly necessary for life and whether they are wastefully using energy or other resources. I think that people are adopting a style of thoughtful consumption, based on careful selection and purchase of necessary items only.

I am sending our employees the message "Stay ahead of change." By this, I mean that we should become a company that creates change, not one that waits to respond to it. Since the catastrophe of March 11, Japan is experiencing wrenching change in which the government, the economy and culture are all undergoing a reset and restart. It is precisely in such an emergency that I would like to position the NISSIN FOODS Group on the leading edge of change, not the trailing edge, and to continue to offer new proposals that will enable us to positively shape and direct the times.

I read through mail from consumers everyday and instruct the relevant employees to respond promptly. This is because delay in responding, especially in the case of complaints, sometimes leads to new problems. Mail received from survivors of the recent disaster, to the contrary, provided hints for new product development: for instance, "Is it safe to eat every day for a year?" or "Can't it be prepared with water at room temperature instead of hot water?"

With regard to the question of whether products are safe to eat every day, Cup Noodle Light, for example, has a nearly ideal ratio of protein, fats and carbohydrates, the so-called PFC balance values. Apart from these three nutrients, only calories and Vitamin C are required. That is to say, this question led to the realization that if we alter the product slightly, we can achieve a food with perfect food balance.

On the question of whether instant noodles can be prepared using water at room temperature, that's a product we want to realize eventually. It is important to make possible the impossible, and causing astonishment among consumers is a source of great joy for a manufacturer.

There are two arcs to the technological development we are currently pursuing. One is "noodle innovation." We have already developed straight noodles that dispelled the notion that instant noodles must be wavy. Now, we are proceeding with other developments and improvements, such as thick noodles that challenge the thickness limits for instant noodles that can be prepared with hot water and three-layer noodles that dramatically improve noodle texture and have functional substances kneaded inside the noodles. The second arc is microwavable products. We intend to reinforce and develop our line of microwavable products that do not require boiling of water, are simpler to prepare and save energy.

In our overseas business, we will focus efforts on Asia, a region experiencing striking economic growth. In April 2011, we strengthened our business structure in the region by establishing the Asian Operational Headquarters in Singapore and dispatching three executives. A market to which we want to devote particular effort is India, which holds tremendous latent demand. Current annual total demand for instant noodles in India is 2.9 billion servings, only 2.4 servings per person per year. Total annual demand in China is 42.3 billion servings, or 31 servings per person. Judging from the population ratio of India to China, we see potential for tenfold expansion in total demand from the current 2.9 billion servings to about 30.0 billion servings per year.

We also plan to expand our business in Russia, another market experiencing remarkable growth. We have taken the first step toward further business development by increasing our investment in MAREVEN FOOD HOLDINGS LIMITED, Russia's leading instant noodle maker, making it an equity-method affiliate.

In the year ending March 31, 2012, cost increases fueled by soaring prices of wheat and other raw materials are likely to be the most critical management issue. To secure stable profits, it will be necessary to consider price revisions. We will respond flexibly while closely observing trends in the unstable world economy and fluctuations in resource prices. Although we will continue to make our best effort to reduce costs, we have no intention of compromising on product quality. This is because quality deterioration directly results in damage to brand value.

I experienced firsthand the importance of the social contribution of companies in times of emergency through the relief activities following the March 11 disaster. A company that cannot share the suffering and pain of victims in such a catastrophe has no point or purpose in continuing to exist.

The NISSIN FOODS Group will continue to aim for further growth and enhancement of corporate value to reward the expectations and trust of our stakeholders. I ask your continued steadfast support and encouragement in the years to come.