In the 2005 fiscal year, sales grew through aggressive efforts to improve growth and strengthen earnings power of our flagship oral care brands. However, in our cosmetics and other business divisions, although there were some strong performing products, sales remained flat for the most part. In the overseas markets, we worked to increase the brand awareness and business performance, and strengthen and expand the sales channels in each of the areas in which we operate, namely North America, Central and South America, Europe and East Asia.

Moreover, in a move to secure mid to long-term growth, we refocused of our business domains from product-oriented categories to functionality and customer-oriented needs, promoted product development, made efforts to improve the added-value aspects of our existing products, launched products in new categories in line with the two concepts of “Mouth & Body” focusing on “oral and general health”, and “Health & Beauty” focusing on ”beauty and a healthy body and mind”.

In fiscal year 2006, restructuring of marketing and sales will be important topics, and actions will be taken to create new markets, which necessarily includes cooperation with governments and specialists in the fields of dentistry and medicine. We will also strive to reduce direct and indirect costs on the one hand, while strengthening sales activities for diversifying sales channels and increasing promotional activities with retail stores.

Sunstar provides products and services that help consumers realize their dreams of a healthy body, mind, and a rewarding life. In continuing our pursuit of “One and Only in Uniqueness” not only with products but also in every aspect of business, we will strive to deliver that unique charm found only in Sunstar products and services by developing businesses in Japan, North America, Central and South America, Europe and East Asia.

We ask for the continued guidance and support from our shareholders.