I would like to thank you, our shareholders, for your steadfast support of Aoyama Trading Company, Ltd. (the "Company"). I regret to report that the Aoyama Trading Group recorded declines in both sales and profits for the first time in eight years, reflecting rapid deterioration of corporate earnings and lackluster personal consumption.
In this challenging business environment, we are convinced that the ability to swiftly and precisely respond to diversifying customer needs is the key to competing successfully. While striving to further enhance our products and services in order to meet customer needs, we will continue to seek greater market share in the suit business through vigorous new store openings in Tokyo and the three neighboring prefectures.
In all our endeavors, I would be grateful for your continued understanding and support.

[Net Sales : Consolidated]

Sales from the menswear retail business in the year under review decreased 2.9% year on year to ¥174,531 million, the seventh consecutive year of increased sales. Operating income decreased 25.6% to ¥15,172 million.

Suit Business

For Yofuku-no-Aoyama, our mainstay format, we strove to expand market share through,in fiscal 2009 we opened 16 new stores of Yofuku-no-Aoyama, 10 of which are in Tokyo and the three neighboring prefectures, and relocated or rebuilt 25 existing stores.
And by launching online sales in a fully fledged manner, we aim to capture new customers. In addition to TV commercials for a campaign tied in with a movie, "Handsome Suit," we appointed Saki Aibu, an actress, as our new ad character.
These measures to attract the younger generation were effective.
Sales of womenswear were brisk as a result of the enriched line-up of formal wear and our efforts to increase awareness that our merchandise includes suits for women.
In fiscal 2009 we opened 2 new stores of The Suit Company,closed one inefficient store of Universal Language. we opened one new stores of The Suit Company’s Weekend stores,located in large urban shopping centers,

CALAJA Business

Sales in this segment decreased 6.5% year on year to ¥5,845　million.
The Company implemented a store concept focused on family casual fashion for customers in their 30s, offering high-quality merchandise at affordable prices.
Neverthless,due to cooling of consumer confidence reflecting the sharp economic slowdown since the second half of fiscal 2009, same-store sales of the CALAJA business decreased 6.6% year on year.
The Company closed 21 inefficient CALAJA stores.

The Company focused effort on the recruitment of Aoyama Card members and provided financial services in areas corresponding to customer lifestyles.
The number of Aoyama Card members reached 3.59 million at the end of February 2009 (an increase of 0.09 million from the previous year).
The primary purpose of Aoyama Capital Co.,Ltd. is to support sales promortion activities at the core retail menswear business.
The Company focused effort on the recruitment of Aoyama Card members and provided financial services in areas corresponding to customer lifestyles.
The number of Aoyama Card members amounted to 3.59 million at the end of February 2009 (an increase of 90,000 from the previous year).
In order to increase the fee income profit ,we had worked on the establishment of new type of card business by collaborating with a birth dearth countermeasures and child-raising support department in each prefecture.We aiso had made utmost effort to enhance the compliance and the internal management system.
However,under the market circumstances such as the revision of the Money Lending Control Act and so on, Sales from the credit card business decreased 20.8% year on year to ¥7,368 million, operating profit plummeted 14.8% to ¥1,657 million.
Aoyama Capital raises funds by means of loans from parent company Aoyama Trading Co.,Ltd. and the issue of bonds.

The business enviromennt of printing and advertising industry remained adverse owing to such factors as a price increases for printing stocks due to soaring raw material prices, a decline in unit prices brought about by intensifying competition.
Ascon sought to expand its business base and increase profits by implementing priority measures , including the cultivation of relationships with existing customers, reinforcement of efforts to win new customers,and profit-oriented order taking.
Although sales from the commercial printing business increased 2.2% year on year to ¥10,259 million, operating income plummeted 48.0% to ¥192 million as a result of price increases for printing stocks and upfront investment in new businesses.

This business involves the operation of Daiso & Aoyama 100 Yen Plaza shops on premises previously occupied by Yofuku-no-Aoyama or CALAJA stores or on premises shared with Yofuku-no-Aoyama stores to achieve synergy.
As a result of closure of 10 inefficient shops, the total number of Daiso & Aoyama 100 Yen Plaza shops was 136 at the end of February 2009.
Sales from the sundry sales business decreased 6.4% year on year to ¥17,973 million and operating income decreased 10.4% to ¥388 million mainly owing to intensifying competition.