Supported by consumer spending, growth of corporate earnings, improvement in employment, Japanese economy overall continued its modest recovery during the last quarter. The sharp increase in the world oil price did not affect so much of the gradual recovery trend.

Turn to the parking management industry. The govermental decision to introduce the asset-impairment accounting into Japanese accounting system helped increase liquidity in the real estate market. Bottom-line-oriented funds such as SPC and REIT scooped up good risks in the middle of the cities. There is now a nation-wide movement to promote effective utilization of lands. This is a great boost to our industry. In addition to this trend, maturation of our motorized society would open new opportunities to continue the growth of our group businesses.

Because of the recent revision of the traffic laws, private sectors will be allowed to enforce a control over illegal parking next June. We regard this change as a major business opportunity. For offering you the best solution to increasingly pressing problems concerning the changing situation of parking business, we are now upgrading our company structure.

Our business achievement is as shown below. We had an excellent sale particularly for the coin-parking system. The segment of system sales showed a year-on-year increase of 254%. The parking maintenance segment showed the same sort of increase of 125%, the asset management segment 126%. As a result, the total earnings of our group bussinesses are 826,436,000 JPY, which is a year-on-year increase of 173%. The gross margin of profit showed an increase of 196%. This is a major step forward for us. We proudly recognize this progress as a fruit of our effort to create products and services with high added value.

SegmentsSales Amount (Unit: Thousand yen)Comparison with Previous Year (%)

Company-owned Parking Facilities

Parking System Sales

Parking System Maintenance

Asset Management

Others

Total