Through management of subsidiary Metal One, which was established with the former Nissho Iwai Corporation (now Sojitz Corporation) in 2003, we are streamlining distribution and strengthening the value chain in steel products. And by forging stronger relationships with key customer industries we are able to quickly identify market needs and turn them into business. In the fiscal year ended December 31, 2007, Metal One recorded consolidated net income of ¥35.1 billion, the result of progress made reforming distribution and of rising prices for steel products, which reflected escalating resource prices.

The fiscal year ending March 31, 2009 will mark the end of Metal One's Second Mid-term Consolidated Management Plan, which was launched in 2006. The goal of this plan is to create a Metal One Group that is "strong but flexible, ethically and financially sound and has great growth potential through the building of a global value chain." Metal One has worked to lay the foundations for further growth guided by this goal. The Steel Business Division is determined to promote Metal One's sustained growth. In this regard, we will support efforts to put in place a structure for promoting efficient management to reinforce operations. On the supply side, we will help Metal One to strengthen its steel purchasing function such as by investing in overseas steel businesses with steelmakers. On the demand side, we will assist Metal One to strengthen sales through cooperation with the Machinery and Business Innovation groups to participate in businesses in key fields. One of these is the auto industry. And one vehicle for this is Thai-based autoparts manufacturer and distributor, DIA Modern Engineering (Thailand) Co., Ltd. (DMET). By developing businesses on both the supply and demand sides of steel distribution in this way, we will help strengthen Metal One's capabilities, thereby reinforcing the steel value chain.

The goals for fiscal 2009 in the Steel Business Division are the same as those for fiscal 2008: make further progress restructuring and streamlining steel distribution; support the efficient management of Metal One and other consolidated subsidiaries; and develop human resources with the aim of offering services of a higher quality. The steel products sales sector is currently in the middle of a restructuring phase. Overseas we are seeing the ongoing integration of major steel product manufacturers, while in Japan trading companies affiliated with steelmakers are grabbing a higher market share as the services of trading companies of old are called into question. This business division sees business opportunities in this shifting industry landscape. We intend to make the most of synergies created from our information network and business development capabilities as a sogo shosha to capitalize on these opportunities. By promoting the development of Metal One, we aim to create the biggest and best steel products sales organization, one that is without peer.