To Our Shareholders

Please accept my gratitude for your support of Penta-Ocean Construction Co., Ltd.

Demand for construction in Japan continues to grow, driven by investments in infrastructure and private capital equipment designed to strengthen international competitiveness. However, public utility investment has entered a period of decline. The competitive environment in the public and private sectors is nothing less than cutthroat, and we project that the environment surrounding the construction industry will continue to be severe in terms of corporate profitability for the foreseeable future.

Under the Penta-Ocean Group’s three-year “Advance 21” business plan, we have chosen to respond to recent changes in the business environment as an opportunity. We are planning for moderate business growth, while at the same time re-inventing ourselves as a technology-driven company with unsurpassed field capacity. Through these initiatives, we intend to win out in this era of competing technologies as the leading waterfront construction corporation in both name and substance.

We ask for your continued understanding and support in our efforts.