Performance
In the fiscal year ended March 31, 2011, the Japanese economy showed signs of recovery in some areas. However, personal consumption continued to languish amid lack of recovery in employment conditions and worker incomes. Facing these challenges, the Resorttrust Group achieved a year-on-year increase in sales of memberships in Tokyo Baycourt Club. Also, XIV Hakone Rikyu, opened in March 2010, made a full-year contribution to our performance, and we made a lump sale of the real estate component of XIV Arima Rikyu, which opened in March 2011. Due to these factors, as well as healthy sales of medical memberships, we posted extremely good results up until the Great Japan Earthquake struck in March 2011. Consolidated net sales for the year amounted to \108,976 million, up 5.1% from the previous year. Operating income rose 17.7%, to \13,172 million, and ordinary income climbed 22.2%, to \13,341 million. However, we posted extraordinary losses of around \6.1 billion, which included losses associated with the earthquake. As a result, net income fell 21.1%, to \3,300 million.

Progress of Medium-Term Group Management Plan
We have now entered the second half of our five-year mediumterm management group plan, which was launched in April 2008, and the current fiscal year, ending March 31, 2012, is the “pivotal” period of the plan. In domestic leisure-related sectors and markets, however, the outlook for the economy and consumer sentiment are unclear, so we expect business conditions to remain difficult. Facing these challenges, the Resorttrust Group will focus on three initiatives outlined in its management plan strengthening existing businesses, growing new businesses, and targeting a wide range of potential customers--in order to achieve sustained growth. In April 2011, we signed a joint agreement with a company in Hong Kong as a launchpad for developing our operations overseas, centering on the medical business. In the beginning, we will provide consulting services for local medical facilities, with the aim of advancing into mainland China in the future. We are moving cautiously prior to launching this new business in a full-scale manner, acutely aware that we are entering a period in which the true value of hospitality, which we have built up over the years, will again be in the spotlight both in Japan and overseas.
We look forward to the continued understanding and support of shareholders.