MATSUDA SANGYO【Management Message - Investor Relations】

Business results and future countermeasure

Basic policy on distribution of profits and dividends

President
Yoshiaki Matsuda

Company idea and management policies

On the basis of our corporate philosophy of effectively utilizing earth’s resources and contributing to society through business, we are developing our business centered on three pillars: the precious metals-related business, which seeks to recycle and effectively use precious metals, a limited resource; the environment-related business, which aims to pass on a clean environment to the next generation; and the food products-related business, which endeavors to supply food resources in a stable manner.

Our company’s fundamental business principal is to value our customers and shareholders. By accurately understanding the needs of our customers and working towards developing mutually beneficial relationships with them, we can increase the value of the firm, which translates into value for the shareholders. The Group’s basic management policy is to focus on customers and focus on shareholders. The Group sees its path to growth as understanding customer needs precisely and working for mutual survival and prosperity with its customers. The Group’s goal is to contribute to securing resources through its resource recycling business, to contribute to the development of cutting-edge technology through precious metal processing and sales, to contribute to environmental protection though its environmental business, and to contribute to culinary life and culture through its food business, and is striving to expand the scope of its business and earn a reasonable profits through sustained marketing efforts.

Business results and future countermeasure

For the fiscal year ending March 2010, all segments of Precious metals business and Food business decreased both in sales and profit, net sales became 156,424 million yen, and ordinary income became 4,961 million yen.

The Group will continue to endeavor to utilize sales networks to develop its businesses and expand operations in all regions.
In the precious metals business, we plan to strengthen sales networks in countries such as Thailand and Singapore and set our sights on expanding operations in the semiconductor and electronic part industries, through activities such as increasing precious metals recycling and sales of precious metal chemical products. In Japan we will carry out continuous efforts to improve efficiency and to develop new technology in order to maintain a competitive advantage.
Conditions are expected to remain tough in the food business, with soaring worldwide raw material prices and a drop in domestic consumption. Therefore, we plan to meet consumer needs for safe products that will give them peace of mind, as well as implement strict quality control, strengthen connections with suppliers, and develop diversity purchasing sources.

Basic policy on distribution of profits and dividends

The Company’s basic policy on distribution of profits is to meet shareholders’ expectations by both continuing to pay stable dividends that balance internal reserves. Internal reserves are used effectively for investment in growth such as increasing the production capacity of facilities and conducting research and development for the precious metals business to improve future profitability and strengthen the corporate structure.

Based on this policy, the Company plans to pay a year-end dividend of 12 yen per share. In combination with the interim dividend of 12 yen, dividends for the full fiscal year are expected to be 24 yen per share.
The Company expects to pay 24 yen per share in dividends for FY3/11 (12 yen per share as an interim dividend, and 12 yen per share as a year-end dividend). The Company will continue to distribute profits in a comprehensive way according to the operating results.

I would truly appreciate the continued support and encouragement of our shareholders and investors.

May, 2010

President: Yoshiaki Matsuda