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Satoshi Masumura President and Chief Executive Officer

We would like to express our heartfelt thanks to shareholders and investors for their patronage.

Business Environment and Results for the Year
Net sales for the fiscal year under review rose 7.6% from the previous fiscal year to JPY 141,660 million. Operating income also rose 111.0% year on year to JPY 6,635 million.
Looking at regional segments, thanks primarily to an increase in the earnings of the Fine Chemicals Business in Japan, net sales increased 2.2% from the previous fiscal year, to JPY 65,694 million, and operating income rose 139.1% year on year, to JPY2,277 million. In the Americas, the business performance of the Company's subsidiary in the United States recovered. As a result, net sales increased 18.3%, to JPY 31,933 million, and operating income came to JPY 390 million (compared to an operating loss of JPY 1,472 million for the previous fiscal year). In Europe, due mainly to the sluggish performance of the Company's subsidiary in France, net sales were JPY 19,998 million (down 0.8% year on year), and operating income stood at JPY 733 million (down 43.5% year on year). In Asia, the business performance of the Company's subsidiary in Singapore was solid, resulting in an increase in net sales of 19.0% year on year, to JPY 24,033 million, and a rise of 33.2% year on year in operating income, to JPY 2,980 million.

Business prospects going forward
Starting in the consolidated fiscal year under review, the Group has been implementing the new medium-term business plan "Takasago Global Plan (GP-3)" for the period from fiscal year 2016 to fiscal year 2018 with the aim to become a leading flavors and fragrances supplier in global markets under a basic business policy of restrengthening
the business foundation, human resources development, technical innovation, greater trust from customers and improvement of profitability structure.
For the consolidated performance for the year ending March 31, 2017, we forecast net sales of ¥143,000 million (up 0.9% year on year), operating income of ¥4,400 million (down 33.7% year on year), ordinary income of ¥4,300 million (down 28.8% year on year) and net income attributable to parent company shareholders of ¥2,700 million (down 44.7% year on year.)

We would appreciate your continued support.

Satoshi Masumura
President and Chief Executive Officer
June 2016