## A Message From the Chairman 

## The Changing Nature of Housing 

In Japan, housing investment is no longer focused on new construction. Instead, people are starting to maintain and live in homes for longer periods of time. 

This change is related to the wide- spread belief that the dwindling birthrate and an aging population, combined with the maturation of the real estate market, will cause land prices to continue to slowly decline, with the exception of central city areas. If the values of homes themselves drop to near zero within 15 years, as is the case today, housing becomes a non-productive asset for Japanese people. 

To improve this situation, I expect that in the near future a framework will be established to correctly appraise the 

values of existing homes. If home values are appraised appropriately, home reno- vations and maintenance will evolve from being a simple form of spending to a form of investment. In other words, maintaining a home’s quality will have a similar effect as saving money. Homes with a strong skeleton making them safe and resistant to earthquakes will become assets passed down through many  generations, and the appearance and fixtures of homes will be modernized. 

I believe that this changing dynamic will lead to a situation in which people seek companies that provide new “ happiness” to home and living environ- ments. In anticipation of this era, the JS Group offers products and services that help protect the environment, such as products that help people make their homes more draught-proof and better 

## The Only Corporate Group With a Comprehensive Home and Living Environment Business 

The JS Group is the only corporate group in Japan capable of single-handedly meeting people’s home and living environment needs. In Japan, the approach toward housing investment is changing significantly. The JS Group aims to accurately grasp this change and grow its businesses by going on the offensive. 

