JS Group Corporation Annual Report 2010 53 Segment Information Metal Building Material Business In the year ended March 31, 2010, the  segment recorded lower sales and earn- ings: net sales fell to ¥368.8 billion and  operating income declined to ¥17.9  billion. Although the Group worked to  expand sales such as by strengthening  its line of  Inplus  soundproofing and  insulating inner window systems, the  performance decline reflected the impact  of sluggish housing starts. The segment saw sales decline to  ¥155.2 billion and it recorded an operat- ing loss of ¥1.4 billion due to sluggish  growth caused by lower investment in  construction. This segment experienced a difficult  environment for generating earnings,  reflecting structural changes in the solu- tions business, in addition to lackluster  housing investment and real estate mar- kets. Net sales declined to ¥51.9 billion  and the segment posted an operating  loss of ¥1.1 billion. Other Building Materials and  Equipment Business Housing, Real Estate and Other  Businesses 430.6 16.6 397.9 19.2 17.9 368.8 0 2008 2009 2010 500 400 300 200 100 25 20 15 10 5 0 3.9% 4.8% 4.8% (¥ billion)  (¥ billion) ■ Net sales  ■ Operating income ■ Operating income ratio 197.1 3.9 177.1 1.6 –1.4 155.2 –50 2008 2009 2010 200 150 100 50 0 8.0 6.0 4.0 2.0 –2.0 0 2.0% 0.9% –0.9% (¥ billion)  (¥ billion) ■ Net sales  ■ Operating income (loss) ■ Operating income ratio 49.9 55.9 51.9 –20 2008 2009 2010 60 40 20 0 6.0 4.0 2.0 0 –2.0 –0.3% –0.6% –2.1% –0.3 –0.2 –1.1 (¥ billion)  (¥ billion) ■ Net sales  ■ Operating loss ■ Operating income ratio Housing, Real Estate and Other Businesses Other Building Materials and  Equipment Business Metal Building Material Business  Distribution and Retail Business Plumbing Fixtures Business The segment worked to improve profit- ability through improvements to opera- tional efficiency, as well as by opening  two Super Viva Home large-scale home  centers. As a result, net sales rose to  ¥134.2 billion and operating income  increased to ¥3.9 billion. Segment sales declined to ¥282.8 billion,  despite efforts to expand sales, which  included conducting a full model change  for high-end  SATIS  tankless toilets. The  top-line decline resulted from lackluster  bathroom unit and kitchen system sales  due to the construction of fewer new  condominiums. However, segment oper- ating income climbed 121.1% to ¥8.4  billion, due to cost-cutting activities  centered on SG&A expenses. Distribution and Retail Business  Plumbing Fixtures Business  310.9 14.5 291.7 3.8 8.4 282.8 0 2008 2009 2010 400 300 200 100 5 10 15 20 0 4.7% 1.3% 3.0% (¥ billion)  (¥ billion) ■ Net sales  ■ Operating income ■ Operating income ratio 122.9 2.2 133.3 2.9 3.9 134.2 0 2008 2009 2010 150 100 50 6.0 4.0 2.0 0 1.8% 2.2% 2.9% (¥ billion)  (¥ billion) ■ Net sales  ■ Operating income ■ Operating income ratio