Message from the President

Overview of Fiscal 2013

policies, as well as a surge in demand ahead of aconsumption tax hike.

Business performance

Operating conditions were mixed for theJSW Group. In the Industrial Machinery Products

In fiscal 2013, ended March 31, 2014, the U.S.

Business, the export climate improved for plastic

economy continued its gradual recovery, while

production and processing machinery owing to such

Europe showed signs of picking up. At the same

factors as a weaker yen. In contrast, the situation

time, growth remained stagnant in China and otherwas again adverse in the Steel and Energy Products

emerging nations. Japan’s economy recovered

Business, as demand recoveries were weaker thanmodestly, reflecting the impacts of the government’santicipated in electric and nuclear power products

fiscal policies and the Bank of Japan’s monetary

and in wind turbine system equipment.

Ikuo Sato

Representative Director &President
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Message from the President

In May 2012, we embarked on JGP2014, aOrders thus rose 1.0% from the previous

medium-term management plan covering threefiscal year, to ¥186,574 million (US$1,812 million).

years through fiscal 2014. Under this initiative, weThis reflected a gain in the Industrial Machinery

seek to become the world’s leading manufacturing

Products Business, which offset a drop in the Steel(monozukuri) group, underpinned by a stableand Energy Products Business. Consolidated net

earnings structure and strong financial position. We

sales fell 14.5%, to ¥188,719 million (US$1,833

are deploying a four-step basic policy to achieve

million), a key factor being declines in both thethese goals. The first is to cultivate our products toIndustrial Machinery Products and Steel and Energy

become global market leaders. The second is toProducts businesses. Operating income declined

expand into growth markets and fields. The third is46.9%, to ¥8,864 million (US$86 million). Ordinary

to create worldwide manufacturing alliances, andincome was down 43.3%, to ¥9,704 million (US$94

the fourth is to reinforce our business platform. Inmillion), and net income decreased 33.3%, to ¥5,527

what is a challenging business climate, we accorded

million (US$53 million).

top priority to securing solid orders for electric andnuclear power products while expanding orders forclad steel plates and pipes, plastic production andprocessing machinery, injection molding machinery,and other offerings for which demand is robust.

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Message from the President

Future Initiatives

these offerings and nuclear power products.
Demand is robust in the Industrial Machinery

Although we expect the global economy to continue

Products Business, while a weaker yen shouldr ecovering m o de rat e ly, t he sca li n g b a ck o fcontribute to our competitiveness—so we willquantitative easing in the United States and slowerendeavor to boost orders for these offerings. We will

growth in emerging nations are concerns. The

formulate a new medium-term management plan

outlook for Japan remains unclear. A reaction to the(JGP2017) based on these initiatives. We aim toconsumption tax hike could derail a gradualfurther expand our operation as a “top corporate

recovery stemming from improvements in the exportgroup that serves a special niche.”environment owing to a weaker yen and the impactof the governmentʼs economic and fiscal policies.
So, in fiscal 2014, the final year of JGP2014,

June 2014we will address our challenges while enhancing
results. In the Steel and Energy Products Business,
demand should recover somewhat for electric
power products. We will strive to secure orders for04

Ikuo Sato

Representative Director & President