Report
on
Business Performance
of
Japan System Bank Corporation
For its 8th term
(from July 1, 2003 to June 30, 2004)



Sales Amount Year-on-year growth
CP system sales Div 849 million yen 101%
CP System Div 707 million yen 112%
Maintenance Div 205 million yen 113%
Income from lease    185 million yen 617%
Others 77 million yen 244%
Total 2,024 million yen 118%

 The gross profit on sales for this term substantially increased from 513,378 thousand JPY to 625,072 thousand JPY.

 The sales administrative expense was cut down from 600,557 thousand JPY to 471,235 thousand JPY.
 
 In this term, we found that Japan finally rebounded from the long stagnation after the bubble economy. Casting a glance at the situation revolving around our business, we saw that, followed by Park 24 Co., Ltd., NITTYU Co. Ltd.(Nihon Tyuushajyou Kaihatsu) went public on the JASDAQ exchange, and then, the second section of the Tokyo Stock Exchange. They both have showed excellent business results. Furthermore, Arealink Co., Ltd., which is one of the most important clients for us, got listed on MOTHERS (Market of the High-Growth and Emerging Stocks). Their stock prices are keeping high. It is very pleased indeed for us to hear that our business friends joined the market.
 
 As a result of our anticipatory investments in earlier terms, we marked drastic increases both in sales and profit. This positive earnings is across all the divisions of our company. Toward better business performances, we will make every possible effort. Your continued support will be greatly appreciated.Analyzing the causes of the positive earnings, we found it effective to have focused on cost reduction. Moreover, it is notable that the development of our enterprise resource planning package was completed with Fukui Prefecture's official assistance and subsidies to our attempts for the introduction of IT. This gave a very strong momentum to streamlining our operations.In this coming 9th term, we will promote the sales of Pikatoro 24 (a remote management system for car parking structures), which has already been introduced on the market. Also we will put our new parking system for bicycles to practical use and promote its sales. These attempts will develop a new business model.Regrettably, we decided to suspend payment of dividends for this term. But we promise you that we will do our best to resume dividend.



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