I would like to begin by extending a special thank you to all of our shareholders for your ongoing support of the business activities of Sumitomo Metal Mining Co., Ltd.
Despite the global economy still facing harsh conditions during FY2010, the basis of gradual business recovery continued, due in part to the effects of governmental policies of countries around the world. The Japanese economy also proceeded to make slow business recovery in spite of generally harsh conditions, thanks to the recovery of exports and other factors.
Although hampered by the high value of the Yen, factors including a rise in the price of non-ferrous metals ensured that SMM's performance in FY2010 saw consolidated sales increase approximately 19.0% year-on-year to ¥864.1 billion. With the contribution of overseas mines, etc. covered by the equity method due to rising prices of copper and nickel, consolidated ordinary profits increased approximately 40.9% year-on-year to ¥123.7 billion. Moreover, since SMM's main domestic production facilities are situated in western Japan, losses caused by the Great East Japan Earthquake were kept down to approximately ¥700 million in the FY2010 consolidated financial result.
The 2009 3-Year Business Plan announced in February 2010 set forth the implementation of growth strategy for each of our three core businesses: Mineral Resources, Smelting & Refining, and Materials. FY2010 was only the first year of this Plan, yet we were able to achieve great results towards our goal.
In our Mineral Resources business, as announced in May 2011, we have been able to participate in the Sierra Gorda copper-molybdenum mining project, which boasts of being one of the largest-scale new copper mine development projects presently under way anywhere in the world. In addition, progress has been made in such a way that it will tie in with SMM's future growth in terms of our mineral exploration activities all around the world and plans for production increase at our existing mines.
In our Smelting & Refining business, we have set about increasing the electrolytic nickel production output at the Niihama Nickel Refinery from 41ktpa to 65ktpa. The Taganito Project, where intermediate raw materials to be used in the Niihama Nickel Refinery will be produced in Taganito, is also progressing well towards its intended completion in 2013. Through projects such as this, we are making great progress towards realizing our growth strategy for nickel as well.
In SMM's Materials business, we are focusing our attention on battery materials as this is an area where future growth is anticipated. In October 2010, we established the Battery Research Laboratories as part of this direction, and we will continue to reinforce our business in environment and energy fields such as battery materials, sapphire substrates for LED use, and so on.
In the current business environment, stable demand for non-ferrous metals and market expansion of environment and energy fields is likely to continue, particularly in China and emerging nations. Accordingly, SMM will continue to implement the strategy outlined in our 2009 3-Year Business Plan.
With regards to our Mineral Resources business, we will aim to expand our overseas interests by means of reinforced mineral exploration activities, implementation of the Sierra Gorda Project commencing operations in 2014, participation in new mine development projects, and production output increases at our existing mines.
For our Smelting & Refining business, we will steadily proceed with construction of a system for a nickel production output of 100ktpa, focusing on the Taganito Project. Meanwhile, for copper we plan to stabilize and optimize operations by carrying out a complete furnace renovation for the first time since commencing operations at the Toyo Smelter & Refinery, including renovation of bottom brick, etc. for its flash furnaces.
As for our Materials business, we will aim to expand the business in the areas of battery materials and sapphire substrates, where increasing demand is anticipated.
Sumitomo Metal Mining's growth to date has in no way been underpinned solely by the business climate; it has also been built up by the efforts made by its employees and the cooperation of its shareholders and other stakeholders. The SMM Group will continue to make the utmost effort to implement its growth strategy as it has in the past, based on economic conditions and the business climate. Based on our motto, "deeds, not words," we will fulfill our objectives in an effort to further increase our corporate value.
We will actively distribute information relating to projects as well as new products and technologies in order to familiarize shareholders more deeply with SMM and retain your trust.
We look forward to the continued support and understanding of our shareholders in these endeavors.
President & Representative Director 
