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President's New Year Message 2012
January 4, 2012
Sojitz Corporation
We would like to say happy New Year to all of our stakeholders. I wish you every success in 2012.
Following is the outline of "New Year Message 2012" by President & CEO, Yutaka Kase, which was addressed to Sojitz's Group employees this morning at Tokyo head office.
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A Happy New Year to all.
Together we welcome the start of a New Year and mark the end of a year of great suffering in Japan.
In 2011, the entire world rallied in warm support of Japan following the catastrophic earthquake, and I believe this was the fruit of Japan's long and steady contribution to world peace. Sojitz is proud to have played an important part in Japan's peaceful development through economic activities spanning a century.
As the word “bond” comes to mind as symbolic of Japan's revival, all of us at Sojitz are keenly aware of the strong ties we have with the world, and the profound responsibilities we have as a global citizen. We must always live by the spirit of Sojitz Group Statement: “to connect the world's economies, cultures and people”.
At the same time, momentum is gathering for the birth of a trans-Pacific economic region supported by TPP and ASEAN+3. This will be the leading economic region in the “Emerging Markets Century.” As it continues with domestic reconstruction efforts, Japan has a golden opportunity to exert its presence in this economic region.
Not only Japan, but as a trading company, Sojitz also has an opportunity to enhance its raison d'etre within this greater economic region. As the world contends with the impact of economic crises in Europe and a stagnant U.S. economy, along with civil unrest unfolding with the “Arab Spring” and rising geopolitical risks in the Far East, the growth of newly emerging economies might be dented, but it's indisputable that these emerging economies will continue to be the engines of growth in 2012. I ask all of you to forge ahead confidently with establishment of new business ventures in Africa and the newly emerging economies.
I had the opportunity last year to visit many of the newly emerging economies, including those in the Middle East, Brazil, Indonesia, and Korea, and meet with business and political leaders, along with employees in our local offices and plants. I was struck by the brimming confidence people have in the future growth of their countries. In Indonesia, I met a businesswoman who dreams of sparing no effort for the development of her country, with the aim of becoming a state minister in next 10 years.
Considering the dark clouds on the macroeconomic horizon, some may believe the budding hopes in newly emerging nations to be overly optimistic, but looking back at history, I believe these feelings are similar to the indomitable optimism which infused Japan after opening its borders during the Meiji Era and beginning reconstruction during the Showa Era post-war society. Without that sense of optimism, it's impossible to fathom the strength and spirit Japan summoned to transform from a small, closed Far Eastern society to a nation that could stand alongside global powers and undergo the post-war reconstruction to become a leading modern nation.
All of you have, without question, the mettle to boldly face a changing environment. We are like a ship coursing through global seas churning with dramatic change and fierce competition, driven by a deep-seated optimism that we can make it.
Change in the business environment is commonplace for us. There are transient changes and structural changes. Our mission as a general trading company is to respond to these changes. I would like all of you to not only accept this mission, but to take enjoyment in the challenge.
We must be sensitive to the global tides and the structural changes in each industry, and use our knowledge to provide unique offerings and hone distinctive ways of doing business, develop unique positions in the marketplace, and build competitive advantages. We need to use these advantages to deliver unique value to our customers. This will enable us to generate long-term sustainable profits. Our group slogan, “New Way, New Value” isn't just a title, it's another way of expressing our aim of becoming a trading company with a presence, a trading company with unique characteristics.
I would like our business divisions to make competitive strategy proposals demonstrating our unique presence and characteristics. We have a good opportunity to do that as we formulate the next medium-term management plan, and this should be the work of the front-line business departments. Sojitz must generate profits by offering customers value uniquely different from our competitors. The corporate departments must provide the business departments with the functions they require to realize new strategies and tactics. We cannot compete without this solidarity. Without a unified company effort, there is no Sojitz.
Under the medium-term management plan, Shine 2011, our goal will be to improve the balance sheet, which means reallocating assets to higher quality assets and enhancing shareholders' equity. To do that, however, we will need to improve areas of the business that do not show up on the balance sheet, namely human resources and organizational resources. Is our entire organization full of vitality? Is everyone growing as motivated professionals? We have begun reforming various systems, including personnel evaluation and organizational systems, but I would also like all of you to make new proposals to revitalize the workforce and, ultimately, provide more value to our customers.
In closing, I'd like to borrow a phrase from the Japanese writer Yasushi Inoue, who wrote, “Diligent people talk of their hopes, lazy people talk of their frustrations.”
2012 marks the ninth anniversary of our founding. Be steady, stay sharp, and let's forge ahead towards our hopes, together as a group.
“Hope” and “progress” will be keywords for both Japan and Sojitz this year. Thank you for your attention.
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