As we move into 2020, JSR will expand our focus on several overarching elements of our business strategy including our transition to becoming a truly global organization, our digital transformation and a ubiquitous focus on moving from CSR to sustainability.

For our globalization efforts, we certainly understand that we need to use different approaches in different regions. What works in the US may not work in Japan, but we will focus on the engagement and adoption of the best technologies, processes, ideas, markets and people from all over the world. We also will be working to establish a structure to allow us to better understand and engage in the many geopolitical activities globally. Of course, in Japan we already have excellent contacts and engagement, but we will work to expand this, particularly in the US and China.

We will also focus on accelerating our digital transformation this year starting with our efforts to digitize our R&D labs use of advanced simulations as well as to understand and integrate leading edge AI capabilities. We have many internal resources working on material informatics including trying to understand how and when quantum computing will be applied. Additionally, we are working hard to develop the use of data analytics in all our operations. This will be expanded in the coming year as we establish a digital office targeted specifically at accelerating the development and use of these tools.

JSR already embraces many of the core elements essential for sustainability. For example, our product development efforts focus on a never-ending search for innovation. We also continuously renew our commitment to ethical behavior including protection of the environment and strong corporate governance. These values will continue to be core to our culture. This year we will also add resources and structure to the CSR team to enhance their global reach and enable the proper integration of the United Nations based Sustainable Development Goals into our operations. Each business unit will need to take these goals into account as part of their strategic plan. This will be the foundation, but our top-level effort will be to move from CSR to Sustainability. In summary we have an exciting and challenging year ahead.

Eric Johnson

Representative Director, CEO JSR Corporation