Message from the Management

Representative Director and Chairman: Sadayoshi Fujishige, Representative Director and President: Itsuo Hama

Taking Robust Strides toward Attaining the Goals of Lion's "V-2 Plan" Medium-Term Plan

Under our "Vision 2020" management plan, we are moving closer to the longer-term objectives we have set for the year 2020.

As the first phase on the way to attaining these objectives, we implemented Lion's medium-term "V-1 Plan," which concluded in fiscal 2014, ended December 31, 2014. As a result, consolidated net sales expanded and both operating and ordinary income rose to the highest levels in Lion's history. Factors contributing to these results were increased profitability in Japan, through the introduction of additional high-value-added products, and success overseas in strengthening our key brands and expanding the scale of our business activities.

Results diverged from the income targets we set at the time we prepared our V-1 Plan, in part because of changes in the operating environment. However, we made definite progress in strengthening our growth potential through the steady implementation of our management strategies.

Beginning in January 2015, we began to implement our "V-2 Plan" medium-term plan, thus marking the start of the second phase on the way to reaching the objectives of Vision 2020 and are beginning to take robust strides toward securing Lion's growth potential and further strengthening profitability. During the three years of the V-2 Plan, the keys to success, in addition to implementing the four basic strategies that will underpin Vision 2020, will be to accelerate structural reforms.

In fiscal 2015, we will continue to increase profitability by nurturing our high-value-added products and, in our overseas activities, will work toward growth with profitability. We will also strengthen our corporate social responsibility (CSR) activities as a company that is advanced in environmental responsiveness and our corporate governance system. Through these various activities, we will aim to enhance our corporate value.

We look forward to the continuing understanding and support of you, our shareholders, as we continue to work toward our longer-term objectives.

April 2015

Sadayoshi Fujishige
Representative Director and Chairman

Itsuo Hama
Representative Director and President