As our mainstay businesses, leasing and sales generate approximately 80% of our operating income. It takes a minimum of two to three years from the time we acquire land—the "raw material" for these businesses—until we finish the product, and many largescale development projects require five years or more.

We aim to optimize the value of the land we acquire, and to maximize revenues, we create three-year medium-term management plans instead of single fiscal-year plans. The steady implementation of these plans is our highest management priority.

We have implemented three medium-term management plans since 1997, and each was successfully completed. The current fiscal year is the second year of the Fourth Plan (the Third Growth Plan). The plan's basic objectives are to continue to record growth in revenue and profit and to maintain the pace of growth. The progress we have made toward realizing these objectives is shown in the table below. Since October 2008, the deterioration in the economic environment has significantly exceeded expectations. As a result, it will be difficult to achieve the initial performance targets, as they were based on the conditions three years ago when we formulated the plan.

However, if we add our forecast performance for the plan's third year to the results we have achieved in its first two years, then we can see that we will achieve increases in revenue and profit as we have done in each of the previous plans. Moreover, the amounts of the increases that we are forecasting are comparable to those achieved under the previous plans.