content_image/264327.jpg content_image/264315.jpg content_image/264314.jpg
Review of Operations 

Housing, Real Estate and Other Businesses 

## Business Conditions and Future Strategies 

## External Conditions and Achieve- ments for the Year 

Business conditions remain murky amid anemic real estate investment, weak real estate prices, and other negatives. 

Against this backdrop, we worked to enhance the gross profit ratio through synergies and reduce SG&A expenses at Tostem Housing Institute, a developer of housing franchise busi- nesses through product development, advertising, business guidance, materi- als purchasing, and other services. As a result, Tostem Housing Institute achieved higher earnings. 

<img src='content_image/264327.jpg'>

## Fiscal Year Results 

Earnings conditions were poor owing to lackluster housing investment, flagging real estate prices, and structural changes in the solutions business. Sales declined to ¥51.9 billion, and the segment recorded an operating loss of ¥1.1 billion. However, this segment is expected to reap rewards from restructuring in the year under review and turn profitable in the year ending March 31, 2011. 

FiAce Home’s LUCE  was awarded the “House of the Year in Electric 2009” grand prize, and Eyeful Home’s Cesibo was recognized for excellence in win- ning the same award. Japan Home Shield Co., Ltd., which conducts ground investigations and analysis, successfully strengthened its marketing network, posting favorable results. 

In addition, JIO Corporation exe- cuted bold structural reform measures in its home-defect warranty liability insur- ance business raising the prospect that it will return to profitability. 

<img src='content_image/264315.jpg'>

## Future Strategies 

We will increase sales by strengthening operations in the homebuilding franchise business and the home-defect warranty liability insurance business. Meanwhile, we aim to return to operating profitability by promoting restructuring throughout our operations. JIO has entered the home-renovation defect insurance busi- ness and is working to make this a new source of profits. 

<img src='content_image/264314.jpg'>

