Business Environment

The media industry is in the process of a major upheaval, driven by the emergence of Internet-based media and new media devices, as well as the convergence of broadcasting and telecommunications.

Strengths and Strategies

Jupiter Telecommunications Co., Ltd. (J:COM), the foundation of our media business, is Japan's leading CATV provider with a market share of approximately 36% (as of September 30, 2011). We aim to develop our media business by driving further growth in J:COM.

Actions for Target Achievement

J:COM is working to further increase its customer base through measures such as enhancing its multichannel broadcasting and various other digital services, strengthening sales efforts in local communities, and promoting its business alliance with KDDI Corporation. As a result, J:COM is seeing steady growth in the total number of subscribers, reaching approximately 3.64 million households as of March 31, 2012.

Business Environment

As IT utilization advances in every aspect of corporate business activity, IT services have become increasingly diverse and complex. Moreover, with the globalization of corporate business activity gathering pace, IT service companies must urgently establish global frameworks.

Strengths and Strategies

SCSK Corporation (SCSK) is our primary operating company in the IT solutions business. It was established in October 2011 through the merger of Sumisho Computer Systems Corporation and CSK Corporation. By realizing synergies through the integration of the two companies as soon as possible, SCSK aims to establish itself as an industry-leading global IT services company with a full lineup of offerings.

Actions for Target Achievement

SCSK is striving to promote cross-selling, enhance cloud-related businesses, and expand global operations. To promote these core strategies, SCSK is working to develop an organization that can combine a diverse range of services and expertise while strengthening its framework for effectively supporting customers in their global development.

Business Environment

Japan's consumer market remains steady and one of the world's largest, valued at around ¥135 trillion. In recent years, changing consumer preferences and diversification in lifestyles have led to a rapid increase in the use of media and IT in purchasing behavior.

Strengths and Strategies

Jupiter Shop Channel Co., Ltd. (SHOP) is Japan's biggest TV shopping company, and a primary operating company in our retail business. We aim to accelerate our unique multichannel retailing strategy based on SHOP.

Actions for Target Achievement

SHOP is working to further enhance the development of attractive products and program planning, including collaboration with Sumitomo Corporation's branded merchandise business, with a view to steadily growing its customer base.

Having successfully developed these business models in Japan, the Media, Network & Lifestyle Retail Business Unit is working to extend its operations to overseas markets.

The main target areas are China and other emerging Asian countries, where the purchasing power of middle-income consumers is rapidly increasing due to economic development driven mainly by domestic demand.

In our household goods e-commerce business, we established operating companies in China and Indonesia during the fiscal year ended March 31, 2012.

In our drugstore business, we plan to develop business in Taiwan by establishing a joint-venture with a prominent local company by sometime around the summer of 2012.

We will study the feasibility of developing overseas businesses in TV shopping, media and other fields. Through these and other measures, we will work to build a future earnings base aimed at achieving growth over the medium term.