Business Environment

In Asia and the Middle East, demand for grains, oils and fats, meat, and livestock feed ingredients has been increasing on the back of diversifying diets and the shift in preferences to luxury foods in step with recent economic development, not to mention population growth.

Strengths and Strategies

Our strengths in the food business field lie in upstream operations such as the grains business in Australia and the banana business in the Philippines. Looking ahead, we will continue to further strengthen business in upstream sectors while building value chains extending to downstream sectors.

This will enable us to capture demand in the Asia and Middle East markets, thereby enhancing our earnings streams. In Asia and Oceania, which are major agricultural growing regions as well as consumer markets, we aim to contribute to the expansion of food production through the fertilizer business.

Actions for Target Achievement

In Australia, we are working to enhance upstream operations in the grains business.

As part of these efforts, we have integrated a grain accumulation and sales company and a grain storage and export terminal company. Going forward, we will expand grain exports to Asia, the Middle East and elsewhere, and bolster the value chain for grains.

In the fertilizer business in China, we established a new plant in Guangdong Province. Through expansion of fertilizer sales, we aim to contribute to growth in food production in China.

Business Environment

In the lumber & building materials business, demand for lumber is expected to grow, supported by global population growth primarily in emerging countries.

Moreover, the tire business should continue to see burgeoning growth in demand as motorization takes hold in emerging countries. On the other hand, we do not expect a dramatic increase in tire sales volume in the U.S. However, demand for after-market services such as maintenance services is projected to continue growing strongly on the back of aging automobiles and the increasingly complex automobile mechanical structure.

Strengths and Strategies

In the lumber & building materials business, we will strive to capitalize on our experience with a prominent partner in Russia, with a view to pioneering the global market.

In the tire business, we will work to capture global demand for tires, primarily in emerging countries, with the aim of becoming an independent tire marketer spanning trading to retail operations.

Actions for Target Achievement

TBC Corporation, our tire business in the U.S., acquired Midas Inc., which is one of the world's largest auto repair and maintenance service chains with more than 1,500 service stores in the U.S. By incorporating this large network that excels in the service sector, TBC will enhance its service operations and increase the number of service locations.

Business Environment

In office building leasing and condominium sales, demand for land in urban centers and prime properties has held firm. In addition, awareness of safety and reliability with respect to buildings and maintenance has grown stronger than before.

Strengths and Strategies

As a general property developer, we have long been engaged in the real estate business. Having prioritized properties in urban centers, where demand is strong, as a strategic field, we have developed highquality prime properties earlier than other companies. Notably, we have developed buildings and towns that are friendly to both people and the environment.

Actions for Target Achievement

In March 2012, we completed the construction of Tokyo Denki University's Senju Campus in Tokyo. We have also begun redevelopment of the Kanda area, which includes a portion of Tokyo Denki University's Kanda Campus prior to the relocation of this university. In other projects, we have developed Terrace Mall Shonan, which opened in November 2011. Developed to match regional characteristics, this mall's shops and facilities have attracted large numbers of customers.