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 March 2009 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.

Our forecasts for the March 2010 fiscal year, the final year of the current medium-term management plan, target revenue from operations of ¥720.0 billion, for the thirteenth consecutive fiscal year of increase, as well as higher revenues in each of the four segments in our business portfolio. However, the uncertainty about how economic conditions will develop was a factor in our setting relatively conservative targets for operating income, ¥136.0 billion, and ordinary profit, ¥100.0 billion. Looking at our operating environment, there are signs of improvement in certain sectors, such as a recovery in condominium sales, but the economic situation does not yet support an optimistic outlook. We will continue striving to enhance our sales and marketing systems and to steadily achieve our performance targets for the March 2010 fiscal year, aiming to connect these efforts to the next medium-term management plan, which starts from the March 2011 fiscal year.