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OUTLINE OF THE JFE GROUP
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| JFE
Urban Development is engaged in three main
businesses: the first is the development of
large-scale complexes, which entails the redevelopment
of large plots of idle land owned by the JFE
Group; the second is supplying condominiums,
centering on high-quality units primarily
in the Tokyo metropolitan area; and the third
is the asset utilization business, which offers
management services for land and buildings.
|
 THE
FIRST MEDIUM-TERM BUSINESS PLAN
| MAIN MEASURES |
| 1.
|
Promote the development and best use of large plots of land owned by the Group |
 |
| 2. |
Develop condominiums, primarily in the Tokyo metropolitan area, as the core profit-making business |
|
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| CONSOLIDATED
FINANCIAL TARGETS |
 |
| |
Billions
of yen |
|
| |
Actual
(approximate) |
Actual |
Target* |
Plan's
final target |
|
(Years ended/ending
March 31) |
2003 |
2004 |
2005 |
2006 |
|
| Ordinary
income |
0.3 |
1.3 |
1.7 |
4.0 |
| Return
on sales (ROS) |
1.0% |
5.0% |
5.2% |
8.5% |
|
|
|
|
|
|
| *
Estimated figures for the year ending March
2005 are those declared as of August 30, 2004. |
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REVIEW
OF EARNINGS FOR THE YEAR ENDED MARCH 2004
In the year ended March 2004, consolidated
net sales fell 15.0% from the previous year
to ¥26.2 billion, in part because of the liquidation
of a subsidiary. However, we made steady advances
in developing some of the Group's large land
holdings and embarked on full-scale sales
efforts centering on the Tokyo metropolitan
area. As a result, consolidated operating
income grew 36.9% to ¥1.4 billion, and consolidated
ordinary income expanded by 4.3 times to ¥1.3
billion.
FUNDAMENTAL
STRATEGY
PROMOTING THE DEVELOPMENT AND EFFECTIVE
USE OF LARGE PLOTS OF LAND
The Yokohama Yamanouchi Development Project
got under way in August 2003. The aim behind
this project is to develop a coastal city
complex with about 1,000 high-rise condominiums,
commercial facilities and office buildings
over about seven hectares of idle land where
NKK's Asano Dockyard once stood. The site
offers spectacular views of Yokohama Port,
and the first round of condominium sales is
scheduled to begin in the autumn of 2004.
In addition, in the Watarida District of the
city of Kawasaki, we plan to convert existing
research facilities (floor area: about 66,000
square meters) into a new type of research
park. This project is known as Techno Hub
Innovation Kawasaki (THINK).
BUILDING UP THE CONDOMINIUM
BUSINESS
JFE Urban Development is focusing its energies
on developing condominiums suitable for a
variety of lifestyles. It is now promoting
“Grand Scena,” a series of high-quality,
unique condominium blocks aimed at the market
consisting of the children of the baby-boom
generation who live in the Tokyo metropolitan
area and number about three million. Condominium
prices in the Tokyo metropolitan area have
now adjusted to reasonable levels. We therefore
believe demand will remain strong for comfortable
condominiums in appealing locations, particularly
among the children of the baby-boom generation.
We aim to sell 700 units in the year ending
March 2006, up from 555 units in the year
ended March 2004.
OUTLOOK
FOR THE YEAR ENDING MARCH 2005
In the year ending March 2005, we are beginning
construction under the Yokohama Yamanouchi
Development Project and the first phase of
sales of these high-rise condominiums. We
also continue to offer high-quality, distinctive
condominiums in the Tokyo metropolitan area.
We expect consolidated net sales to grow 30%
to ¥33.0 billion, consolidated operating income
to jump 35.7% to ¥1.9 billion, and consolidated
ordinary income to increase 30.8% to ¥1.7
billion.
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