Products/  Product Brands Market  Position Main Competitors Product and Service Conditions (Year Ended March 2010) Product Sales (¥ billion) Wooden Interior  Furnishing  Materials ■ $_{ }$Tostem Industry  No. 3 to 5 $^{■}$  Panasonic Electric  Works ■ $_{ }$ Daiken ■ $_{ }$Wood One ■ $_{ }$Eidai We stepped up sales of “simple packages.” Here, interior  doors, stairs, hallway closets, flooring materials, interior  building materials, and other materials are carefully selected  for individual dwellings and packaged enabling them to be  offered through easy-to-choose and simple pricing plans.  Sluggish new housing starts hit operations hard, however,  and sales of wooden interior furnishing materials decreased  11.2% to ¥44.5 billion. Exterior Wall  Materials ■ $_{ }$Asahi Tostem ■ $_{ }$Inax ■ $_{ }$Tostem Industry  No. 3 (Estimated  market share  approx. 12%)* ■ $_{ }$Nichiha $^{■}$  Kubota  Matsushitadenko  Exterior Works Asahi Tostem enacted structural reforms in the first half of  the term for improving profitability and was able to post  positive operating income as a result. However, weighed  down by sluggish new housing starts, sales in the exterior  wall materials business declined 16.0% year on year to  ¥35.7 billion. Tiles ■ $_{ }$Inax ■ $_{ }$INAXCOM Industry  No. 1 (Estimated  market share  approx. 39%)* ■ $_{ }$Danto ■ $_{ }$TOTO The Group worked to increase sales in the Asian, European,  and US markets on the back of  Ecocarat , a construction  material that controls indoor humidity and absorbs volatile  organic compounds and other harmful substances. However,  tile sales decreased 19.0% year on year to ¥33.2 billion  because of the large impact of a shrinking domestic market. Disaster  Prevention  Equipment ■ $_{ }$Nittan Industry  No. 3 Sales were firm from the installation of home fire alarms.  However, sales were poor in the non-housing area because  of weak private-sector investment. In turn, sales of disaster  prevention equipment decreased 11.6% year on year to  ¥32.4 billion. 100 50 0 55.3 50.2 2008 2009 44.5 2010 100 50 0 50.8 42.5 2008 2009 35.7 2010 100 50 0 46.4 41.0 2008 2009 33.2 2010 100 50 0 36.0 36.7 2008 2009 32.4 2010 * Yano Research Institute, 2009 surveys * Company surveys [Situation in Japan] (¥ billion) 200 100 150 50 0 197.1 177.1 2008 2009 155.2 2010 (¥ billion) 4 2 0 –2 3.9 1.6 2008 2009 –1.4 2010 –0.9% 0.9% 2.0% ■  Operating income (loss)  ■  Operating income ratio Operating Income (Loss) and  Operating Income Ratio Net Sales  Fiscal Year Results Sales declined to ¥155.2 billion and the  segment posted an operating loss of  ¥1.4 billion, as weakening construction  investment created severe business  conditions. However, we expect to  return to profitability in the year ending  March 31, 2011 due to the benefits of  structural reforms implemented in the  fiscal year under review. JS Group Corporation Annual Report 2010 30 Review of Operations Other Building  Materials and  Equipment  Business