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I'd like to take this opportunity to thank all shareholders and other investors for their continued interest in and support for Circle K Sunkus.

･Higher Sales and Earnings in Fiscal 2009
Today, April 9, we announced our earnings for fiscal 2009, the year ended February 28, 2009.

In fiscal 2009, Circle K Sunkus' management policy was enshrined in the phrase "Challenges and Responsibilities." Under the watchword of "Change," we embraced various challenges and reforms that produced steady success. In terms of sales, the deployment of taspo card systems in cigarette vending machines certainly worked in our favor. However, strong performances by our three core original brands, namely the Cherie Dolce dessert selection, Oishii Pan Seikatsu baked goods and the rubetta pasta series, also helped to significantly boost sales. This reflected efforts to strengthen mainstay products under each brand. As a result, in fiscal 2009, existing store sales rose 4.1% year on year (on a non-consolidated basis), significantly improving on the previous year's decline of 1.8%. Consolidated total store sales increased ¥37.8 billion year on year to ¥940.2 billion. Meanwhile, average daily sales at new stores were ¥455,000, ¥46,000 higher year on year, signaling a marked improvement in the quality of our stores. As a result, total consolidated operating revenues increased ¥7.0 billion year on year, mainly reflecting an increase in revenues from franchised stores. Meanwhile, we were able to hold selling, general and administrative (SG&A) expenses to a year-on-year increase of 0.5% through determined efforts to reduce advertising, sales promotion and other expenses, which mostly offset large investments in our new store information system, new services and other areas. As a result, consolidated operating income rose ¥1,900 million year on year to ¥23,009 million. Meanwhile, consolidated recurring profit and net income also increased year on year, both surpassing our targets.
Please view our earnings report for further details on fiscal 2009 operating results.

･Revisions to the Three Year Plan
In fiscal 2009, the first year of the Three Year Plan, Circle K Sunkus achieved earnings growth, as detailed above. In fact, consolidated performance for fiscal 2009 far exceeded the Three Year Plan's initial targets. Accordingly, Circle K Sunkus has revised its targets for the plan's remaining two years. In fiscal 2010, the plan's second year, we will be unable to avoid a projected drop in earnings in line with the initial Three Year Plan, as we begin to fully incur higher expenses related to large investments. Nonetheless, in fiscal 2011, the plan's final year, we are determined to restore Circle K Sunkus to earnings growth.

･Embracing More Bold New Challenges in Fiscal 2010
In fiscal 2010, we will continue to refine the three core original brands representing our hallmark products, with the aim of setting ourselves apart from rival convenience store chains. Installing in-store fryers at a faster pace is another priority. Elsewhere, we are focusing on original UNY Group brand products that harness synergies across the group. Here we will offer an expanded range of products under the high-value-added +KACHIAL brand and in the affordable e-price lineup. What's more, in response to recent social developments such as weakening consumption and deflation, we will offer the Genki Ouen Bento series of ¥500 boxed lunches at the discounted price of ¥380 for 6 consecutive months. The goal is to satisfy the needs of customers preferring low prices, with a view to boosting overall rice dish category orders and sales. In service category products, we will continue to launch attractive content going forward, as highlighted by the March 2009 launch of lottery ticket sales for the Sport Promotion Lottery "toto" via KARUWAZA STATION terminals. These terminals are currently being installed in stores. Furthermore, from July 2009 we will begin the "Franchised Store Staffing System." Under this system, store staff will be sent to franchised stores as needed when regular staff take congratulation or condolence leave, or if there are any other staffing shortfalls. In addition, we will work to step up franchisee support measures, mainly by expanding franchisee benefits and various insurance plans for franchised storeowners.

In fiscal 2010, the convenience store industry expects to face an increasingly harsh business environment, based on an even sharper projected drop in consumption than before, compounded by stronger consumer preferences for low prices and fiercely intensifying competition across traditional and non-traditional industry and business lines. In this climate, "Let Go and Change" will be the polestar of Circle K Sunkus' activities. We will continue to embrace bold new challenges and take concrete action to enhance our performance. I look forward to your continued support, which will be vital to this end.