Shift toward downstream areas in our asset portfolio

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Our Textile Company's total assets remained around the ¥400 billion mark throughout the first decade after the turn of the century. As a result of numerous acquisitions of prime assets in recent years, the total expanded to ¥486.8 billion for the year ending March 2013. On the other hand, ROA has risen from 2.8% for the year ending March 2003 to a record-high 6.8% for the year ending March 2013. The main reason for this is a strategic shift in our portfolio towards downstream assets. As well as withdrawing from certain upstream and mid-stream assets that had outlived their functions, we have updated our portfolio since the start of the 2000s by investing in brands and acquiring stakes in a string of quality downstream companies, including EDWIN, ladies apparel company Leilian Co. Ltd. and JAVA HOLDINGS Co. Ltd., and in companies that are likely to generate synergy with our own business operations, including the leading accessory company Sankei Co. Ltd. Shifting our asset portfolio towards downstream has significantly improved asset efficiency and paved the way for our Textile Company to grow even further.