In the foods sector, we are aiming to secure food resources and supply them reliably by expanding the tuna farming operations of our marine products business outside the Mediterranean, where operations are currently centered, to other regions. We are also working to expand profits by extending our sales channels beyond Japan into other countries where there is active demand. In our grain business, one approach will be to pursue further market development targeting the full range of upstream to downstream operations in growing overseas markets such as China and Vietnam, where we have already made strategic moves. At the same time, we will secure resources in upstream sectors through further investment aimed at securing new suppliers of wheat, soybeans, corn and other grains in countries such as Russia, the Ukraine, Brazil, and Argentina. These sources will join our existing suppliers in the U.S., Canada, and Australia. In a separate move, on April 1, 2008, we established the Quality Assurance Office within the Foods Unit to strengthen and centralize Sojitz Group quality control systems in pursuit of enhanced reliability and safety with regard to food products. Sharing information and using it effectively to prevent quality-related incidents from occurring, the Quality Assurance Office will create a highly specialized quality control system and thereby increase valueadded in the Group.

In the textiles business, where profitability had declined in the face of market conditions characterized by sluggish domestic demand, in fall 2007, we inaugurated a project to restructure the business and turn it around. By analyzing business transactions in detail and implementing selection and focus initiatives, we will allocate management resources to key areas on a priority basis. Specifically, we will establish the foundations for growth centered on the non-apparel sector, including plant-derived materials, high-tech non-woven fabrics, and high-strength super textiles that will be used in sectors connected with the environment, energy, and automobiles.

In the general merchandise sector, we will work to maintain and expand earnings in the cigarette and afforestation and woodchip businesses. We also plan to create new businesses in growth sectors and markets such as environmentally friendly industrial materials.