Section 3. Strengthening Our Corporate Structure

In April 1983, our company created a medium- and long-term management plan that would cover the next five years. The purpose of this plan was to clarify our future management goals and to concentrate the entire company’s efforts toward achieving those goals. Under this plan, our company would be operated under the following concept.

1. The rebuilding of Hibiya Daibiru will proceed according to investment efficiency and supply-demand trends, and the remaining life of the Daibiru Buildings will be extended as much as possible.
2. The rebuilding of Hibiya Daibiru is our most important project. To achieve this goal, our company will endeavor to improve our finances with the aim of achieving sales of 11.612 billion yen, ordinary income of 3.847 billion yen, and the first- or second-highest per-employee profit level in Japan within five years.
3. In order to mitigate the decline in profit that is expected for the period ending March 1985 when the hotel is completed, our company will reduce repair costs, delay capital improvement plans, and either utilize or dispose of unused land.
4. We will proceed with construction plans by aiming to begin construction on the Mita-Nitto Daibiru Building in Tokyo in 1984 H1 and construction on the Awajimachi Daibiru Building in Osaka in 1984 H2.
5. For existing buildings, we will actively introduce labor-saving equipment and reduce management costs, including the introduction of centralized monitoring for the equipment in the Osaka Office buildings in 1985.
6. We will clarify the scope of operational responsibilities of affiliated companies in order to improve profitability of the entire group.
7. Our personnel plan is to secure personnel who will be future leaders of the company, and to cover business expansion not through higher personnel counts but through automation and outsourcing.