We expect growth in revenues and earnings in all business segments in the fiscal year ending in March 2013. Following last year’s cutback in expenses, I anticipate an increase in our use of expenses, chiefly maintenance expenses and other non-personnel expenses. Personnel expenses will rise too because we revised our personnel and wage systems in April 2012. Despite the growth in expenses, we forecast higher earnings because operating revenues are expected to increase more than expenses.

In railway operations, I expect a substantial recovery in transportation revenues following the impact of the Great East Japan Earthquake on revenues in the previous fiscal year. By the end of fiscal 2013, we plan to start operating Tohoku Shinkansen trains at a maximum speed of 320 km/h. Higher speed along with the addition of Gran- Class cars on this line are expected to raise revenues. In October 2012, we will complete restoration and preservation work at Tokyo Station Marunouchi Building, which Japan has designated an important cultural property. Following completion, we plan to feature this historic building as the symbol of the Tokyo area in our marketing and other promotional activities in Japan and overseas.

In the life-style services business, we plan to increase revenues by constructing more office buildings, hotels and other facilities. The JR South Shinjuku Building was completed in June 2012 and completion of the JR Kanda Manseibashi Building is slated for January 2013. Furthermore, The Tokyo Station Hotel will open in October 2012. I am confident that these projects will make a contribution to growth in our revenues and earnings.

In April 2012, we announced our numerical targets for the three-year period ending in March 2015. We have established targets for this period for consolidated operating revenues, operating income, net income, cumulative operating cash flows and ROA in each of our business segments. Furthermore, we plan to increase our corporate value by making growth investments. As part of this goal, we established an ROE target from the standpoint of achieving both higher shareholder value and investment efficiency.

Japan’s aging and declining population and other challenges in our operating environment will make it difficult to increase revenues. In our railway operations, we plan to secure revenues by enhancing and expanding our Shinkansen and Tokyo area networks and improving the quality of our transportation services. For the life-style services business, we will expand activities to further enrich the business content of ekinaka, or spaces within railway stations. We are also making steady progress with the large-scale development of terminal stations and other projects that can generate returns in the future.

Building a lean and agile organization will be vital to sustaining growth in an operating environment that is constantly changing. This is why our entire group is coordinating our efforts to reform cost structure through strategic downsizing. For example, we are streamlining our facilities, such as by removing those where utilization is low, and keeping the capacity of our transportation operations in line with changes in our markets.