We, Sumitomo Warehouse Group, have made the utmost effort to provide high-quality services for customers' satisfaction and to contribute to society through our business endeavors.

In fiscal year 2009, the Group shows Operating Revenue with 121,619 million yen (7.8% down year-on-year), though the revenue from real estate business remains at the same level as in the last fiscal year. This figure is due to the decrease of cargo volume resulting from depression in the logistics field.
On the other hand, it shows Operating Income rose to 7,910 million yen (11.0% up year-on-year), resulting from cost reductions and no occasional costs for launching new facilities as in fiscal year 2009.
In this fiscal year 2010, market rent is forecast to be bearish in the real estate field. But we anticipate increases both in Operating Revenue and Operating Income owing to the recovery of cargo volume in the logistics field.

We established "Business Strategy 2010," a medium-range business plan that came into effect from fiscal year 2006 in order to reinforce our business foundation and boost our profit-earning capacity in both fields of logistics and real estate. And also, we, as the solution provider in the fields, have been focusing on the core strategies such as providing the best possible solutions through our combined advantages and expanding overseas business.
The radical change in economic circumstances after the bankruptcy of Lehman Brothers compelled us to suspend the target figures specified in "Business Strategy 2010". However, we will continue to execute the core action plans, according to which we will expand record management business, distribution center business and overseas business, for further development of our business in the future. We will complete these plans in fiscal year 2010 for the next stage.

We will increase the corporate value of the Group by expanding our business foundation steadily, and meet the expectations of shareholders, investors and all the people concerned.

We thank you for your continued support.

Shoichi Abbe
President