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## Review of Operations 

## Distribution and Retail Business 

## Business Conditions and Future Strategies 

## Store Openings 

Tostem Viva opened two of its large- scale Super Viva Home (SVH)* outlets in Ibaraki Prefecture (Mito City) and the other in Gunma Prefecture (Takasaki City). It opened a remodeled store in Saitama Prefecture (Ageo City) in its network of Ken Depot building material centers that are distinguished for their appeal to professional customers. Also, 

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## Fiscal Year Results 

Tostem Viva opened two large-scale Super Viva Home home centers and made diligent efforts to improve operating efficiency and increase profit margins. These initiatives resulted in sales and profit growth, with sales totaling ¥134.2 billion and operating income reaching ¥3.9 billion. 

Tostem opened its first Ken Depot Pro store exclusively for registered users in the building trades in February 2010 in Tokyo (Tachikawa City). 

## Future Strategies 

Plans call for opening one SVH store and three New Viva Home (NVH) stores in the year ending March 31, 2011 and for upfront investment for opening a 

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total of 43 Ken Depot and Ken Depot Pro stores. We aim to attain growth by actively investing in store development, and we will work to expand private brand product lines for SVH and NVH as part of efforts to bolster profit margins. 

* Stores with floor areas exceeding an average of 10,000 square meters$^{■}$ 

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## Super Viva Home 

We have opened these large-scale home centers in Tokyo, Chiba, Saitama, Kanagawa, Gunma, Tochigi, Ibaraki, Miyagi, Mie, and Gifu. 

(As of March 31, 2010) 

