Fiscal Year Results Review of Operations Metal Building  Material Business The Group increased sales activities,  including further strengthening its  lineup of  Inplus  inner windows for  soundproofing and insulation, but  owner-occupied housing starts and  non-residential and other construction  starts floundered during the year. As a  result, net sales totaled ¥368.8 billion  and operating income declined to  ¥17.9 billion notwithstanding diligent  efforts to reduce operating costs. Net Sales  (¥ billion) Operating Income and  Operating Income Ratio (¥ billion) 500 400 200 300 100 0 430.6 397.9 2008 2009 368.8 2010 20 10 15 5 0 16.6 19.2 2008 2009 17.9 2010 4.8% 4.8% 3.9% ■  Operating income  ■  Operating income ratio Products/  Product Brands Market  Position Main Competitors Product and Service Conditions (Year Ended March 2010) Product Sales (¥ billion) Housing Sashes  and Related  Products ■ $_{ }$Tostem ■ $_{ }$Shin Nikkei Industry  No. 1 (Estimated  market share  approx. 50%)* ■ $_{ }$YKK AP ■ $_{ }$Sankyo-Tateyama The Group bolstered its lineup of  Inplus  inner windows for  soundproofing and insulation and took other steps as it  successfully tapped into eco-demand, leading to higher  sales volume of eco-related products. Nevertheless, sales  of housing sashes and related products fell 10.4% to  ¥152.8 billion because of a decline in owner-occupied  housing starts, which have a major impact on sales of  housing sashes. Exteriors ■ $_{ }$Tostem ■ $_{ }$TOEX ■ $_{ }$Shin Nikkei Industry  No. 1 (Estimated  market share  approx. 55%)* ■ $_{ }$YKK AP ■ $_{ }$Sankyo-Tateyama ■ $_{ }$Fuji Sash The Group worked to increase name recognition through  effective use of TV advertising in order to boost sales in a  shrinking market, and it promoted increased sales of prod- ucts for renovation and retrofitting. In addition, it sought to  cultivate new genres such as “midterior,” a genre positioned  between exteriors and interiors. These efforts lifted market  share by about one percentage point. We were unable to  overcome worsening business conditions, however, and  sales of exteriors declined 9.0% to ¥92.2 billion. Building Sashes  and Shutters ■ $_{ }$Tostem ■ $_{ }$Shin Nikkei $^{■}$  Tostem Suzuki  Shutter Industry  No. 1 or 2 (Estimated  market share  approx. 40%)* ■ $_{ }$YKK AP ■ $_{ }$Sankyo-Tateyama ■ $_{ }$Fuji Sash We endeavored to efficiently target customers in sales  activities by making effective use of the Group network.  Notwithstanding these efforts, sales of non-residential build- ing sashes and shutters declined 13.6% to ¥93.1 billion due  to the impact of the drop in non-residential building starts. 200 100 0 176.7 170.6 2008 2009 152.8 2010 200 100 0 104.0 101.3 2008 2009 92.2 2010 200 100 0 128.4 107.8 2008 2009 93.1 2010 * Source: “2008 Main Products and Services Share Survey,” Nikkei Inc. * Company surveys * Company surveys [Situation in Japan] Note: Estimated share includes Shin Nikkei JS Group Corporation Annual Report 2010 26