I would like to express my appreciation for your continuous understanding and assistance to our company. I offer my prayers for all those who lost their lives in the Great East Japan Earthquake as well as my sympathy to the survivors and their families.
Regarding our 2010 financial results, our company achieved the highest profits. The major factors were a favorable increase in car sales by demand-boosting policies in several countries such as Japan’s government subsidies for eco-friendly car purchases and a growing desire to buy cars in China and emerging countries, as well as our efforts for continuing strong cost reduction and cost saving activities. I sincerely thank stockholders' and stakeholders' strong support and cooperation.
Remarkably, the sales of cars in China increased 32 percent from the previous year to 18 million and China became the world’s biggest market, surpassing the U.S. We have successfully managed to increase orders from Chinese, European and American car manufacturers and have been working for increasing our production capacity at our subsidiaries in China so as to catch up with the increasing orders.
In this fiscal year, car production in Japan decreased 40 percent from the previous year. However, the production is expected to quickly return to normal and by this summer to recover to the level assumed before the earthquake, as opposed to an initial assumption that it takes through the end of this year. In the second half of this year, economic recovery in Japan and North America and an increasing demand in emerging countries will help us improve profitability.We will cope with and get through the economic uncertainties including a prospect for electric power supply, a movement in the yen rate and a trend of raw material costs.
Moreover, we will put our power together for expanding our business in every direction, investing in enhancement of production in emerging countries and North America, and in experiment, research and development.Regarding our main products more specifically rings, liners and valve sheets, we expanded the operations globally by five pole framework for meeting customer’s demands in the world. We will work for establishing TPR’s strong brand-name, through expanding sales in emerging countries mainly in Asian region expected to increase the demands.
We recently established new companies namely TPR SUNLIGHT Co. Ltd., a manufacturer of industrial rubber products and TOC CAPACITOR Co. Ltd., a joint venture company for research and development of electric double layer capacitor with Okaya Electric Industries Co., Ltd, as well as TPR ENPLA Co. Ltd., a manufacturer of resin processed products so that we can respond to a recent trend of electric-powered and lightweight vehicles. In addition, we will open a paid nursing home in Okaya city in Nagano this October as a regional contribution project.
We will continue evolving globally under the slogan of "Change and Challenge" this year, the final year of "11 Mid-Term Plan". We sincerely hope our stockholders and investors to continue their loyal patronage.

Chairman & CEO Isao Hiraide