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on Business Performance of Japan System Bank Corporation For the 3rd quarter of its 9th term (July 1, 2004 -March 31, 2005) @
The downward trend in Tokyo metro-area landprices was finally halted. We now find some property prices in that area even rebounding. Our analysis shows that the reason behind this recent trend is, first of all, grouping of "T-rex funds," some of which have been listed on the market. They are fiercely competing with each other for good risks. Second of all, soundness of Japanese financial institutions is getting rebuilt. In the decade or so, they have been burdened with bad debts. However, they are now turning the corner on dealing with them. This eliminates their fear of removal of the full deposit guarantee. Business failures are growing downward. Pessimism at home about economy are dispelled out. Turning to hourly parking lots management business, it continues to be very busy mainly because of the nationwide movement of utilizing unused lands. We expect maturation of motorized society to make it possible for our business to sustain stable growth. Furthermore, the government decided to enforce strict control over illegal parking and commission parking-enforcement services to private companies. This will make our business foundation solider. Our quarterly performance was very good; as shown below, we enjoy sales growth in all divisions. DivisionsSales Amount (Unit: Thousand yen)Comparison with Previous Year (%) Company-owned Parking Facilities Parking System Sales Div. Maintenance Div. Asset Management Others Total Many companies in our business field have already been listed on the market and their stock prices have already gone up considerably. We will also be listed early next year. Japan Ecorocar Recycle Industry (JERY), which had accepted investment from 10 local new-car dealers and shareholders of ours, was listed on the green sheet market in the last December. Highly rated by the market, JERYΥs share price started its upward journey and hit 600,000 JPY/share. And then, its board approved a 4-for-1 split on its stocks. As a result, its share price is now 185,000 JPY/share.The ratio of our stock ownership of JERY is now 9.2 %. As always, we appreciate your continuing support for our activities for thoroughgoing recycling and ecological movement. |