Fiscal Year Results Operating Loss and  Operating Income Ratio  (¥ billion) 0 –1.0 –0.5 –1.5 –0.2 –0.3 2008 2009 –1.1 2010 –2.1% –0.6% –0.3% ■  Operating loss  ■  Operating income ratio Net Sales   (¥ billion) 60 40 20 0 49.9 55.9 2008 2009 51.9 2010 Review of Operations Housing, Real  Estate and Other  Businesses Earnings conditions were poor owing  to lackluster housing investment,  flagging real estate prices, and  structural changes in the solutions  business. Sales declined to ¥51.9  billion, and the segment recorded an  operating loss of ¥1.1 billion. However,  this segment is expected to reap  rewards from restructuring in the year  under review and turn profitable in the  year ending March 31, 2011. Business conditions remain murky amid  anemic real estate investment, weak real  estate prices, and other negatives. Against this backdrop, we worked  to enhance the gross profit ratio  through synergies and reduce SG&A  expenses at Tostem Housing Institute, a  developer of housing franchise busi- nesses through product development,  advertising, business guidance, materi- als purchasing, and other services. As a  result, Tostem Housing Institute  achieved higher earnings. FiAce Home’s  LUCE  was awarded  the “House of the Year in Electric 2009”  grand prize, and Eyeful Home’s  Cesibo was recognized for excellence in win- ning the same award. Japan Home  Shield Co., Ltd., which conducts ground  investigations and analysis, successfully  strengthened its marketing network,  posting favorable results. In addition, JIO Corporation exe- cuted bold structural reform measures in  its home-defect warranty liability insur- ance business raising the prospect that  it will return to profitability. We will increase sales by strengthening  operations in the homebuilding franchise  business and the home-defect warranty  liability insurance business. Meanwhile,  we aim to return to operating profitability  by promoting restructuring throughout  our operations. JIO has entered the  home-renovation defect insurance busi- ness and is working to make this a new  source of profits. Future Strategies External Conditions and Achieve- ments for the Year Business Conditions and Future Strategies Arietta Wa-Kura Launched in April 2010,  Arietta Wa-Kura  combines the  underlying qualities of  LUCE , which won the “House of  the Year in Electric 2009” grand prize, with the essence of  Japanese homes, including window craftsmanship, and  sitting on the floor without shoes. This FiAce Home offers  better comfort and energy efficiency for quality living. JS Group Corporation Annual Report 2010 33