Our new mid-term business plan (March 2007-March 2009) plots a course for the XEBIO Group to overcome mid- to long-term changes in the business climate. Last year, we completed our shift to a focus on sports by acquiring Victoria Inc. as a subsidiary and letting go of our menswear and media divisions. Over the next three years, we need to create a growth structure based on increasing customer loyalty and satisfaction. Doing so will allow us to firm up our business base, grow qualitatively despite the increasingly tough business climate, and reach our goal of becoming the "only one" sports company.

1. Super Sports XEBIO, Victoria, Victoria Golf, and L-Breath each have their own unique strengths. To improve our total profitability and efficiency, we will use these assets to open new stores and improve our existing retail spaces.

2. In-store sales is one of the most important ways we connect with our customers. We base the product lineup and procurement plan for each store on our in-store sales data. By improving our logistics and information systems and deepening cooperation with our suppliers, we can have the right products "just in time, just enough, and at just the right price" to satisfy our customers.
Because each of our stores pursues seasonal and event-based sales opportunities, our product lineup must be adjusted accordingly. It is important, too, that our retail floor staff are not only knowledgeable about the products we sell, but about how to provide excellent individual service to every valued customer who comes through our doors.

3. The NEXT Division is the second major pillar of our business model. We plan to improve our revenue base by continuing to open new stores in and around Japan's major urban areas and increasing customers' name recognition and store loyalty.