MESSAGE FROM TOP MANAGEMENT

Masataka Kubo

Based on our Group-wide management philosophy of
"Achieving long-lasting customer satisfaction through outstanding products and reliable service,"
we at the EDION Group are committed to continued efforts to provide sincere customer service, aiming to become a corporation that
"continually endeavors to support richness and abundance in our customers’ lives."

Masataka Kubo President

Inception and Growth of the EDION Group

EDION Corporation was established in March 2002 as a joint holding company of DEODEO Corporation, based in the Chugoku, Shikoku and Kyushu regions, and EIDEN Co., Ltd., based in the Chubu region.

Subsequently, the EDION Group was joined by MIDORI DENKA CO., LTD., based in the Kinki region, Ishimaru Denki Co., Ltd., based in the Kanto region, and 3Q Co., Ltd. (store brand: Hyakuman Volt), based in Hokkaido and the Hokuriku region. In February 2009, the EDION Group established an integrated operation system as a part of its organizational restructuring efforts, based on which EIDEN Co., Ltd., which operates stores mainly in the Chubu region, has also integrated the operation of stores located in the Kanto region. In October 2009, the EDION Group merged its subsidiary DEODEO Corporation with another subsidiary, MIDORI DENKA CO., LTD., to establish EDION WEST Corporation (hereinafter referred to as EDION WEST). The Group also changed the corporate name of its subsidiary EIDEN Co., Ltd. to EDION EAST Corporation (hereinafter referred to as EDION EAST). In October 2010, EDION Corporation merged with EDION WEST and EDION EAST to commence a newly integrated business operation. Consequently, the EDION Group will consist of three main companies: EDION Corporation, which focuses on the operation of home electrical appliance retail stores such as Ishimaru, EIDEN, MIDORI and DEODEO, 3Q Co., Ltd., which conducts business operations under the store brand of Hyakuman Volt; and NWORK Co., Ltd., which specializes in system development, and other companies. By implementing organizational restructuring through operational integration, the EDION Group aims to achieve a fast decision-making process, and at the same time facilitate a management system that enables more efficient allocation of the respective management resources of EDION Corporation, EDION WEST and EDION EAST. In addition, by introducing the Division Company Organization system, we will further promote our business strategy, capable of flexibly accommodating varying market characteristics in different areas, while striving to ensure customers’ greater confidence in our stores.

Furthermore, I changed Ishimaru, EIDEN, MIDORI, and DEODEO into the national unification store brand EDION in October, 2012.

We will always keep hospitality in mind.

In the autumn of 2008, the global financial crisis that began in the United States seriously hit the Japanese economy. Since then, with consumer spending generally remaining sluggish, the Japanese economy has faced extremely severe market environments.

In the home electrical appliance retail industry, replacement demand for televisions has been increasing due to a full transition from analog to digital broadcasting scheduled in 2011.

Moreover, the Japanese government has implemented its Eco-point System, an economic stimulus that encourages consumers to purchase household appliances with higher energy efficiency. Against this backdrop, sales of widescreen televisions, Blue-ray Disc recorders and refrigerators remained strong in the fiscal year under review.

To ensure continued stable business results, we believe it is not sufficient to focus on the expansion of promising products and other tangible measures; it is also essential to return to our starting point as a retailer, or "to always offer hospitality to our customers." In view of this, maintaining a sense of gratitude in our hearts to our customers who choose our stores from among a large number of home electrical appliance retailers, we will stay involved in greeting customers with great cordiality, enhancing product knowledge, and offering sincere customer service and high-quality after-sales service. Through these efforts, we will strive to create stores able to enjoy customers’ continued patronage.

We will endeavor to realize our management philosophy to ensure customers’ confidence and assurance.

Our Group-wide management philosophy, "Achieving long-lasting customer satisfaction through outstanding products and reliable service," reflects our commitment to becoming a corporation that "continually endeavors to support richness and abundance in our customers’ lives." Under this management philosophy, we have defined our mission: "To offer attractive products at reassuring prices, along with superior service." To fulfill this mission, we are working on the development and sales of products that offer more convenient and enriched lifestyles to our customers, the introduction of a longer-period repair warranty to ensure our customers are able to continue using their purchased products under optimal conditions, and the promotion of services tailored to customers’ needs. Through these efforts, we strive to add value to the uniqueness of the EDION Group. In fiscal 2010, aiming to realize our corporate philosophy, we will promote our community-based store strategy, our customer-oriented service strategy, and our product strategy focused on the development of original products and the expansion of promising products. At the same time, as a corporation that ensures customers’ confidence and assurance, we will be actively involved in energy-saving & environmental initiatives, working together with local residents in community activities and other initiatives that contribute to society.

We will strive to reflect our customers’ opinions and requests into store & customer service strategies.

At the EDION Group, we have been following customer-oriented approaches in developing products, creating attractive stores and offering high quality customer service. Our customer monitoring system, which was introduced in fiscal 2009, is an example of such approaches. Under this system, we ask monitoring participants randomly selected from among customers to use the target products and evaluate them in terms of ease of use, usefulness and design. The various opinions and requests collected from the monitoring participants are then provided to manufacturers as feedback data to be reflected in the development and improvement of user-friendly products. We have also established our product performance testing laboratory.

In this laboratory we independently test each product’s performance in terms of safety, ease of use and durability, aiming to ensure our customers maintain their trust in our products and continue using their purchased products for a longer period of time. By incorporating our customers’ opinions and ideas into our business activities, we will strive to add value to the uniqueness of the EDION Group. Based on our corporate philosophy, "Achieving long-lasting customer satisfaction through outstanding products and reliable service," we will take customer-oriented approaches to achieve higher levels of customer satisfaction (CS) in terms of "stores," "products," and "services." We will also work hard to develop and maintain an internal corporate system that will bring us even greater trust through highly transparent business operations. Aiming to become an enterprise capable of providing greater assurance and satisfaction to all stakeholders, including shareholders and investors, customers, employees, local communities, business clients, as well as the EDION Group itself and its related companies, the management and all of the companies within the EDION Group will continue to work together as one. We at the EDION Group sincerely hope to enjoy your continued support.

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