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of energy. Sales have skyrocketed, aided by the introduction of the eco- point system for housing introduced by the Japanese government. 

In April 2010, we launched our own brand of solar energy generation systems. With our reliable installation and after-sales service, we are looking for this to become one of our more popular home fixtures. Furthermore, at several of our domestic factories we have added mega-solar power generation facilities in an effort to switch over to clean energy. We are also working to make our factories greener. Under the guidance of Dr. Akira Miyawaki, professor emeritus at Yokohama National University, we are planting trees in order to create regional “Forever Forests.” 

## Increasing Profitability 

Based on our strategy of effectively using M&As to expand our business, we 

We are aiming to improve earnings by exploring ideas for new business models in Japan and strengthening our business overseas, particularly in Asian countries. 

are aiming to improve earnings by exploring ideas for new business models in Japan and strengthening our business overseas, particularly in Asian countries. 

Securing market share is critical to maintaining earnings given the recent decline in demand, and M&A activity is one effective means of doing this. If we carry out M&As, we want to quickly and rationally merge the businesses involved in order to steadily generate earnings. Also, rather than thinking simply in terms of individual operating companies under the Group umbrella, we group them into five business segments, to which we allocate management resources to quickly realize synergies within the Group as a whole. Based on this approach, in the year ending March 2011 we are aiming to return to an operating income ratio of 5% in the manufacturing business segments. 

Over the medium term, we want to raise our operating income ratio to at least 10%. Our core Metal Building  Material Business and Plumbing Fix- tures Business segments achieved operating income ratios above 10% in the past, but this is now difficult as the business environment has become increasingly challenging. However, by streamlining overlapping businesses and functions and effectively restructur- ing our organization, I think returning to the previous performance level is well within our reach. 

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