＜Ushering in 2012＞

The unprecedented massive earthquake that struck the country in 2011 has significantly impacted the Japanese economy, and the Isetan Mitsukoshi Group also incurred enormous damage. At disaster-affected stores, employees who suffered from the disaster took the initiative to restore and operate the stores in order to support the recovery of local regions. Additionally, many employees also continued operations amid the major flood disaster that occurred in Bangkok, Thailand. Although 2011 was a year faced with major hardships, we managed to overcome such difficulties because of the support we received from everyone in local regions or government. Consequently, we were able to reconfirm the importance of ties between all stakeholders, including customers, and the Group.

　With the start of 2012, the environment surrounding department stores remains harsh due to various factors, including overseas economic trends such as the debt crisis started in Europe last year, the strong yen and stock price fluctuations, domestic debate over raising the consumption tax and intensifying competition beyond the industry. The situation makes it difficult to clearly discern the prospects of a roadmap for the recovery in consumer sentiment.

　Nonetheless, because of times like these, we consider that it is our mission to continuously make dreams come true with our customers and touch their hearts through products, services and the environment provided by department stores.

　In order to realize this, the Isetan Mitsukoshi Group will start its Three-Year Plan from fiscal 2012 with the aim of becoming the world’s foremost retail services group. Through the remodeling of our Shinjuku and Nihombashi flagship stores, which are the Group’s major assets, we will make full efforts to further convey the appeal of department stores to society while also taking on various new challenges. As part of such initiatives, we will develop stores in locations where many people will visit, including new small-scale stores opening in station buildings or airports and the renewal opening of food supermarkets, thereby enabling as many customers as possible to intimately use the Isetan Mitsukoshi Group with greater convenience. In doing so, we will work to enhance new points of contact with customers.

　Overseas, we will open new stores in China and Malaysia and designate overseas business as one of the growth pillars. In this way, we will continuously focus on conveying the appeal of the Isetan Mitsukoshi Group to the full extent.

　Additionally, we will further promote initiatives that we have been carrying out since 2011 for reviewing production areas in Japan and communicating to customers the nation’s excellent workers and superior technology through the Isetan Mitsukoshi Group. Accordingly, we will also continue our social contribution activities through our main businesses, including contributing to Japanese manufacturing.

　We will pursue innovation with the aim to be “an authentic department store,” thereby providing new value that is unique to the Isetan Mitsukoshi Group.

　Your continued support and patronage is truly valued and sincerely appreciated.