Through the development of two valuable resources--natural gas and iodine--KNG plays an important role in improving the quality of life for all. In doing so, we are making a vital contribution to society through our daily operations.

In recent years there has been an increased focus on environmental issues such as global warming and air pollution. Against this background, natural gas is attracting increasing attention as a clean source of energy. Consequently, the development of natural gas resources, in which KNG is intensively involved, is expected to play a crucial role as the search goes on for a next-generation energy source.

Our main strength is our ability in optimizing resource development and adapting to changes in demand profile. This is achieved through the operations of our group companies, which cover all aspects of gas supply from upstream sectors such as the development and production of gas to downstream sectors such as the sale of gas to customers through a city gas company. While we deal with multiple gas suppliers, we also circumvent the effects of international factors, currency exchange fluctuations and similar concerns by producing natural gas in Japan. This diversity in gas sources enables us to take a more flexible approach to providing stable supplies to our customers.

In addition to our natural gas operations, another pillar of KNG is the production and sale of iodine. In resource-poor Japan, iodine is a very precious exportable resource for the country. Furthermore, with the development of new uses for iodine over the last few years, this substance is becoming even more prominent. As a global leader in the manufacture of iodine, KNG will respond to expectations for this substance.

Moreover, we at KNG are leveraging a wealth of knowledge and technology cultivated since the establishment of the Company in 1931 to move into businesses such as geological and ground water pollution surveys and remediation, and the drilling of water wells and hot-spring wells, and related surveys and improvement.

Looking ahead, it seems there will be increasingly fierce competition between energy types. However, amid an energy situation that continues to be internationally unstable, domestically-produced natural gas that can be supplied over the long term in a stable manner is becoming increasingly important. Rising to the occasion by taking optimal advantage of Group strengths, we are committed to continue our contributions to society as a producer of valuable domestically produced natural resources.