In fiscal 2009—the year ended March 31, 2010—a steady improvement was evident in the global economy, reflecting such factors as the success of economic stimulus measures initiated by various countries. Economic conditions in the People's Republic of China (PRC) continued to rally, driven by domestic demand. However, Europe, the United States and Japan all fell short of a full recovery.

In this environment, we reported an 18.8% decline in consolidated net sales, to ¥765.8 billion, despite an increase in sales in the Pharmaceuticals and Home Health Care segment. This was largely attributable to deteriorating sales in our materials businesses, notably in the Synthetic Fibers and the Films and Plastics segments and in the Trading and Retail segment. Operating income fell 25.2%, to ¥13.4 billion, owing to weak demand in our materials businesses. Nonetheless, we achieved ordinary income of ¥2.1 billion, compared with an ordinary loss of ¥2.7 billion in fiscal 2008, thanks to an improvement in nonoperating items, while our net loss shrank by ¥7.3 billion, to ¥35.7 billion.

Although we remained in the red at the net income level for the second consecutive year in fiscal 2009, we declared a year-end dividend of ¥2.0 per share. Since no interim dividend was paid, dividends for the full term were thus ¥2.0 per share.

In the second half of fiscal 2008, we began implementing a number of urgent measures and structural reforms. In poorly performing businesses, efforts have focused on eliminating losses. As a consequence of successful restructuring in such businesses, particularly in polyester fibers, as well as the reduction of fixed costs and a freeze on major capital investment, we moved significantly closer to our goal of realizing an operating structure that ensures profitability at the net income level, even with facility operating rates at 70%. These achievements supported our drive to secure a positive free cash flow, a key strategic priority.

We have designated fiscal 2010 as the year in which we will conclude urgent measures and structural reforms and achieve a return to profitability at the net income level. We will also press forward with further efforts to sustain a positive free cash flow.

Through technology-driven innovation, the Teijin Group will continue seeking to achieve sustainable growth by providing solutions in two key areas—green chemistry and health care—and in domains that overlap these areas, notably advanced medical materials and bioplastics. Green chemistry encompasses high-performance materials, as well as green businesses and energy, while health care includes pharmaceuticals and home health care services.

In closing, allow me to express my appreciation to shareholders and investors for your ongoing support. I look forward to your continued input and guidance in the years ahead.