Dear Friends,

I send my greetings and best wishes to all of you for the year 2017.

The CE Industry in India hit the bottom in 2015 to start to recover since then and we enjoyed the strong growth in 2016

In this year we expect continuous double digit growth with increasing number of existing and new project on road construction and irrigation.

I am happy to share with all that Kobelco did perform well, and we constantly increase the market share to go over 9%.

Also, we ended the 2016 FY positively and profitably three years in a row.

We always do our best to provide undisputable commitment to Indian market.

This year we already introduce New 20 tons model with Fuel Efficiency and Toughness in Apr and plan to launch New 38 tons model in Oct to fortify our position in market. We also continue to increase our capacity to meet the strong growth of CE market.

Besides launching of new model and increase of capacity we are in process of amalgamation of excavator business and crawler crane business in India to show our eagerness to put stress on our commitment and enhance our whole CE business in India. We would like to continue to grow to contribute the growth of India with all of our stake holders.

With best wishes
Yutaka Goto