Message from Management

Itsuo Hama Representative Director, President, Executive Officer

To Our Shareholders and Investors

In 2016, while material costs fell and the yen strengthened, domestic employment and personal consumption recovered, and the economies of Lion’s mainstay overseas countries were firm.

In this environment, Lion implemented the second year of its medium-term management plan, the V-2 Plan (Vision2020 Part-2). Under the plan, we continued to implement a range of measures based on four basic strategies: (1) Qualitative growth of domestic businesses; (2) Quantitative expansion of overseas businesses; (3) Development of new business value; and (4) Enhancement of organizational learning capabilities.

Domestically, in the Consumer Products Business, we introduced new products in such categories as toothpastes, body washes, laundry detergents and fabric softeners. At the same time, we worked to develop markets for high-value-added products and further their market penetration, aiming to both increase market unit prices and expand sales volumes. Moreover, in alliance with companies outside the Lion Group, we launched new initiatives aimed at improving in-store displays and enhancing point-of-sale data analysis. To reinforce the direct-to-consumer sales business, we created the Direct Marketing Division and enhanced our lineup and marketing of food with function claims.

In the Industrial Products Business, we further streamlined the newly reorganized chemicals business and cultivated new fields in the detergent for institutional use business, such as hygiene management and vegetable washing.

Overseas, we aggressively invested in marketing aimed at reinforcing our brands. By doing so, we worked to expand the personal care field, including oral care and beauty care, in such mainstay countries as Thailand, South Korea and China. We also achieved further growth in Malaysia, where we are advancing business structure reforms.

As a result of these efforts, Lion set new record highs for consolidated net sales, operating income, ordinary income and profit attributable to owners of parent during 2016. Indeed, we reached our goals for consolidated profitability a full year ahead of the schedule of the V-2 Plan, which is now in its final year.

In 2017, we will wrap up the V-2 Plan, moving closer to the realization of our management vision, Vision2020. We will endeavor to break new ground as we powerfully advance our four basic strategies, utilizing our firm revenue structure to aim for further growth in corporate value.

We look forward to your ongoing confidence and support.

March 2017
Itsuo Hama
Representative Director, President, Executive Officer