content_image/141053.jpg content_image/141051.jpg
<img src='content_image/141053.jpg'>

A5: We will continue to develop our business in the fast-growing Chinese market and cultivate new demand in Vietnam, where our business is already brisk. 

n contrast to the slump in housing starts in Japan, China and other Asian countries are expe- riencing rapid housing market growth. We are seeking to significantly expand our overseas sales by developing our business in these markets. As I mentioned before, in order to make this vision a reality, we acquired the Asia-Pacific division of American Standard, the global plumbing fixtures brand. American Standard has a strong sales base in China, with 167 showrooms in 73 cities. We are very hopeful that we can effectively leverage this sales base to generate synergies with Inax in the field of sanitary wares. Furthermore, we have a booth at the Shanghai Expo and we sponsored an exhibition at Shanghai’s famous Three on the Bund gallery, as part of our strategy to raise the profile of the Inax and Tostem brands. I 

In Vietnam, we entered the local market in 1996 by establishing Inax Vietnam Sanitary Ware Co., Ltd. (VINAX), a local subsidiary of Inax. We have been successful in sales of sanitary ware, and have recently commenced selling Tostem’s housing window sashes and doors. Such one-stop, compre- hensive sales of sanitary ware, housing window sashes and doors were in response to requests from local customers, and we are anticipating significant demand. We will dynamically utilize VINAX’s sales channels to effectively capture this demand. Ahead of the expected increase in overseas sales, we will actively make investments during the year ending March 31, 2011 to build and increase the pro- duction capacity of overseas production sites. 

Synergies With Asia-Pacific Division of American Standard (ASAP) 

<img src='content_image/141051.jpg'>

