This business report was printed in Japan on 70% recycled paper using soy ink made from soybeans certified by the American Soybean Association.

Head Office

URL http://www.token.co.jp/

Token Headquarters Marunouchi Building, 2-1-33, Marunouchi, Naka-ku,

Nagoya, 460-0002

Phone 81(52)232-8027

Corporate Outline (At April 30, 2009)

Token CorporationJuly 17, 1976¥ 4.8 billion5,537 (Including part-time and contracted employees)Token Headquarters Marunouchi Building, 2-1-33, Marunouchi, Naka-ku, Nagoya, 460-0002● General lease property construction business for

landowners (Bridge System)● Commercial lease property construction linking

landowners and potential business tenants (Catch System)

● Tenancy arrangement services for apartments and condominiums (Home Mate System)

NameIncorporationCapitalEmployeesAddress

Principal Businesses

Directors (At July 29, 2009)

Minoru Souda

Morikazu Tauchi

Yoshitake SoudaShigeru Kato

Iwao Ishikawa

Toshihiko UenoShinya MiyamotoMunehiro YonemuraKiyomi HibiMasahiro MistuyaShigeo Aoki

President

Senior Managing Director

Managing DirectorManaging Director

Director

DirectorDirectorDirectorCorporate AuditorAuditorAuditor

General Manager, Management Administration Department

General Manager, Bushiness Administration Department

Group Companies

Token Lease Fund Co., Ltd.Token TADO Country Club NagoyaShanghai Tohan International Trading Co., Ltd.Token Otsudori A Ltd.Token Building Management Co., Ltd.

Totsu Agency Co., Ltd.Totsu Travel Co., Ltd.Token Resort Japan Co., Ltd.Nasluck Co., Ltd.Token Otsudori B Ltd.Token Chikusa Tower Co.,Ltd.

Stock Information (At April 30, 2009)

Number of Shares Authorized 53,888,000 sharesNumber of Shares Issued and Outstanding 13,472,000 sharesNumber of Shareholders 　　 13,381 shares

● Shareholder Composition by Investor Type

● Shares

Shareholder

Minoru SoudaTomei Corporation Co., Ltd.Japan Trustee Services Bank, Ltd. (Trust Account)Japan Trustee Services Bank, Ltd. (Trust Account 4G)The Master Trust Bank of Japan, Ltd. (Trust Account)

49,50410,000

5,0524,1763,251

Holdings (100s of shares)

36.7%7.4%3.8%3.1%2.4%

Stake

● Major Shareholders

Securities companies

40,854 shares 0.3%Foreigners

904,281 shares 6.7%

Other Japanese corporations

1,404,440 shares 10.4%

Individuals and others

8,633,485 shares 64.1%Financial institutions

2,488,940 shares 18.5%

Total13,472,000

shares100.0%

Corporate Information

T O K E N C O R P O R A T I O N B U S I N E S S R E P O R T

BEYOND NOW 2009

(yen)

Forward-looking statements

TOKEN CORPORATION TOKEN CORPORATION01 02

Since Token’ s establishment in 1974, our mission has been to

promote the effective use and revitalization of land through the

development of lease and rental properties, such as apartments,

rental condominiums, and monthly rental properties.

Over the years, we have steadily expanded our business area

from our roots in Kariya, Aichi Prefecture, which is situated

almost in the center of Japan and just next door to Toyota,

which is famous for its automotive business. By 2006, we had

laid the groundwork for nationwide operations with a business

network covering all of the 47 cities and prefectures in Japan.

In addition, Token’ s business structure diverges from that of

an ordinary construction company. We have the following two

major advantages that differentiate us from these types of

companies.

First, we have developed both flow and stock operations,

which gives Token a highly stable business structure with strong

growth potential. The business domain of many construction

companies is limited to flow operations, the design and

construction of buildings or, in other words, the construction

business. On the other hand, by focusing on lease and rental

properties, Token also covers the stock business domain of

rental property management following the construction of a

property or, in other words, the real estate business. Our stock

business also offers several advantages. By acting on behalf of

property owners in the troublesome aspects of apartment and

rental condominium management—from tenant arrangement

and management to building security and maintenance—we

ensure a long-lasting, mutually prosperous relationship between

Token and the client. Moreover, our growing stock of

management properties also contributes to a strengthening of

our earnings base.

Secondly, by bringing manufacturing of building materials

and housing equipment in-house within the Group, we have

secured a high level of profitability compared with our

competitors. Unlike most construction companies, which

procure all of their building materials and housing equipment

externally, Token develops and manufactures them within the

Group—from steel beams, wooden building materials and

fixtures, and furniture to plumbing-related equipment, such as

kitchens, washstands, and bathtubs.

By creating a manufacturer style of business structure, Token

has made it possible to develop the three solid customer bases

of nationwide landowners, tenants in each area, and

construction industry-related corporate clients.

This business report contains forward-looking statements regarding the Company’s plans, outlook, strategies and results for the future. All forward-looking statements are based on judgments derived from the information available to the Company at the time of publication.

Certain risks and uncertainties could cause the Company’s actual results to differ materially from any projections presented in this report. These risks and uncertainties include, but are not limited to, the economic circumstances surrounding the Company’s businesses, competitive pressures, changes in related laws and regulations, status of product development programs, and changes in exchange rates.

Consol idated Financial Highl ights

Net sales (Millions of yen)

Apr. 2007

Operating income (Millions of yen)

Net assets (Millions of yen)Total assets (Millions of yen)

Apr. 2007

Apr. 2007

Apr. 2007 Apr. 2007

110.00

185,857

31,093

6,820

90,599

Apr. 2008

Apr. 2008

Apr. 2008

Apr. 2008 Apr. 2008

95.00

155,483

29,136

11,279

95,806

TOKEN CORPORATIONYears ended April 30, 2007 to 2009

Operating Performance :

Net sales

Operating income

Net income

Balance Sheet:

Total assets

Net assets

Per Share Data :

Net income

Net assets

Cash dividend

Other Data:

Number of Employees

2,430,702

98,394

50,256

1,015,791

351,227

3.73

26.07

1.18

155,483

11,279

6,629

95,806

29,136

492.14

2,162.52

95.00

5,652

Millions of yen

Apr. 2007

185,857

6,820

3,410

90,599

31,093

253.16

2,307.84

110.00

5,094

Apr. 2008 Apr. 2009

Thousands ofU.S. dollars

237,674

9,621

4,914

99,324

34,343

364.84

2,549.05

115.00

5,537

Apr. 2009

Note:The exchange rate of ¥97.78 = U.S.$1.00 (as of Apr. 30, 2009 in the Tokyo foreign exchange market) is used for the above calculations.

Yen U.S. dollars

Cash dividend per share

(Millions of yen)Net income

Apr. 2007

3,410

Apr. 2008

115.00

237,674

34,343

9,621

99,324

Apr. 2009

Apr. 2009

Apr. 2009

Apr. 2009 Apr. 2009

4,914

Apr. 2009

6,629

Profile .......................................................................01Consolidated Financial Highlights............................02Message from the President ....................................03Business Model........................................................05

Our Strengths 1. Sales Power and Growth Power .......................06 2. In-house Manufacturing and Profitability ..........07 3. Product Development and Competitiveness ....08Summary of Business Activities ...............................09Corporate Information ............................................. C4

C o n t e n t s

Landowners throughout Japan

Land use proposals and construction orders

Tenant recruitment activities

Promoting external sales

Tenants in each area

● Corporations● Individuals

Non-Group Client Companies

● Developers● House makers● Builders● Architectural offices, etc.

Token Group

Token Corporation

Nasluck Co., Ltd.

Prof i le

Materials and Housing

Equipment Business

Real Estate Rental and

Leasing Industry

Construction Industry

Responsible for the Group’s product development and manufacturing of materials and housing equipment

In our 33rd term (May 2008 to April 2009), we focused on building a foundation from which to achieve consolidated net sales of ¥300 billion. As a result, amid extremely difficult business conditions, we successfully strengthened the order winning system that serves as our growth engine, with nonconsolidated orders rising 2.5% year on year.

Among specific measures, our first concern was to actively open branches and add sales personnel. Making aggressive capital investments for the future, we opened 23 branches and hired an additional 110 sales personnel.

Next, we made a shift to our core products, which feature an integrated manufacturing and sales system. Along with the enforcement of the revised Building Standards Law, we took advantage of the urgent need to revise our product composition to dispel any fears that construction starts would be postponed due to the newly required “peer checks” by making an immediate shift to the Shelulu-TP series and wooden two-by-four (2 x 4) products that we have been developing for some time. In our Shelulu-TP series, based on converting to a manufacturer style of Group in-house production of building materials and housing equipment, we can now offer strong but light steel frame products with the highest earthquake rating available in Japan (Class 3*) at low prices. Similarly, we offer low-cost wooden 2 x 4 products by importing the structures from Canada.

I believe that these measures are providing a major boost to the growth in orders.

Due to the extremely large-scale of the current economic recession, we have decided that Token should not use the same aggressive business strategy as implemented in the 33rd term. In the 34th term, our policy will be to pursue offensive and defensive business strategies simultaneously. In other words, while continuing with our base of aggressive measures, we will shift our direction toward the soundest measures in each case, clearly separating our business strategies into offensive and defensive measures.

Our slogan for the 34th business term is “reinforce our corporate structure through a build and scrap policy.” We will slow down our pace of opening new branches from the 23 branches launched in the 33rd business term to 10 branches this fiscal year. On the other hand, we will step up the pace of closing or merging poorly performing branches. Overall, we will concentrate on creating strong branches even if it means considering a net decline in branches for the current business term.

The foundation of a “strong branch” is personnel. The major reason behind the differences between strongly and poorly performing branches is the difference between the management teams’ instruction of sales personnel. Taking it one step further, we could say it is the difference in instructing capabilities. By concentrating our sales personnel under management teams with the strong ability to develop staff, we will further increase the productivity of our superior branches, thereby contributing to the strengthening of our overall order winning capabilities.

Moreover, to make it possible to concentrate sales personnel allocations to our superior branches, we plan to hire 300 people, almost 3 times as many as the 110 new employees added in the 33rd business term.

Using this method, we intend to “reinforce our corporate structure” by focusing on creating “strong branches.”Another of our aggressive policies will be our advertising strategy, primarily television commercials. In our

33rd business term, we invested much more than usual in television commercials to support our sales efforts. Despite the deepening economic recession in the 34th business term, we have decided to continue to actively implement our advertising strategy because aggressive investment in advertising is essential—a necessary business expense to support the efforts of our sales personnel precisely because we are in an economic recession.

Going forward, it is indispensable for Token to continue opening branches in order to achieve sustained growth. Token is still in the process of developing its network nationwide and has ample room to grow throughout Japan. In particular, we have designated the highly populated Kanto area as our main target area for concentrating branch openings in future.

With our eye on entering the Kanto area, we have been actively developing new products suited to downtown and urban needs to add to our traditional product composition, which focuses on suburban types of products. We are now developing a much wider variation of products. Examples include our fully furnished apartments and condominiums, operations of which got fully under way in the previous year, and our one-year rental properties (fully furnished including electrical appliances). These products match the needs of people moving for the first time to

cities or urban areas, where the influx of people is high. In addition, our “rental condominiums for ladies only,” are designed with an emphasis on security that allows women living alone to feel safe and secure.

In other words, our aggressive development of these products represents an investment in the future. We are convinced that along with our expansion of branch areas they will bear fruit in time.

Under extremely difficult business conditions, our policy has been to pursue offensive and defensive strategies with the aim of achieving sustained growth

Minoru Souda President

In our 33rd term, we focused on building a foundation for our targeted goal of ¥300 billion in consolidated net sales, strengthening our order winning capabilities.

Investment in active product development

Pursuing management by the numbers, we aim to achieve profitable growth.

Policy of pursuing offensive and defensive business strategies simultaneously

TOKEN CORPORATION TOKEN CORPORATION03 04

•Totsu Travel•Token TADO CC•Token SHUGA CC•Token Lease Fund

•Brokerage and Management Dept.

•Construction Engineering Dept.

•Marketing and Development Dept.

•Brokerage and Management Dept.

Token Corporation

Managing properties and tenants

Business agency service

Renovations

Travel agency

Golf resorts

Advertising agency

Financing servicesCasualty insurance agency

Reach Target of

¥300 Billion

Materials and HousingEquipment Manufacturer

Construction Company

Peripheral Businesses

Real Estate Broker

Manufacture!

TenantBroker!

Manage!

Furtherperipheralbusinesses

Build!

Manufacture andsale of materials

and housing equipment

Building apartments andrental condominiums

Vacancy listings and tenant search

•Nasluck

Achieving a High Profitability Structure

Reach Target of

¥300 Billion

Achieving a High Profitability Structure

■ Consolidated Net Sales of ¥300 Billion Plan

•Token Building Management

Message from the President

We believe that “ensuring profitability” is an extremely important management theme in our efforts to attain our goal off consolidated net sales of ¥300 billion. Amid economic conditions where there is concern that the bottoming out process will be prolonged, there are occasional signs of factors that could reduce our profitability, such as a increase in our cost burden from declines in orders received or in occupancy rates. In response to these conditions, Token is establishing a management system for a low cost structure based on clear data—in other words

we are pursuing “management by the numbers.” Put another way, we are increasing our profitability by building a system that can achieve conventional goals by managing the performances of offices, planning the production of our manufacturing plants, and other aspects of our business.

As we step toward the future, the Token Group intends to work with stakeholders in achieving sustained growth and development.

Change in Sales Composition of New Core Products

45.6%

32nd TermSales

Composition

22.8%

31st TermSales

Composition

33th TermSales

Composition

47.8%

New core products(Shelulu-TP series, PALDEA 4 and Star Terrace)

＊Certified by the Ministry of Land, Infrastructure, Transport and Tourism.

185

156

Looking at the graph on the right, you will see that our consolidated net sales is growing steadily in-tune with our growth in branches and sales personnel. To maintain steadily sales expansion, we have to be prepared in all aspects of our operations: having products available for sale, maintaining our strong reputation and customer confidence, having on-hand adequate staff with sales skills, and running effective advertising campaigns and sales promotions. By building a strong business base that fulfills all these requirements on an ongoing basis, we have successfully established a condition where an increase in the number of branches and sales personnel immediately brings growth in sales.

Building a business base through interlinked growth in sales and branches and sales personnel

Beginning with the fiscal year ended April 2009, we are endeavoring to further improve our operating efficiency and strengthening our growth capabilities. We are doing so by pursuing a “build and scrap” strategy that simultaneously opens new branches while closing poorly performing ones and by further strengthening productivity by concentrating our sales personnel resources on superior branches.

Achieving even stronger growth capabilities by pursuing a “build and scrap” strategy

■ Number of Branches Nationwide by Business Block (At April 30, 2009)

We offer landowners total support for their effective land-use needs, specializing in lease and rental housing. Within that field, we operate comprehensive services for our construction business, which provides effective land-use proposal, architectural design, and construction and installation services. We also provide comprehensive services for our brokerage as well as our agency and management business, which arranges for tenants, manages business, and provides maintenance services. To handle contracting all of these services on a one-stop shopping basis, we have built our Bridge System. Through this system, we supply services that landowners feel

confident and secure with, resulting in strong competitive power versus our rivals. We also apply the IT strategies that the Company has pioneered in the industry.

Taking an overall perspective of the workflow of the total support we offer landowners, we have pursued standardization of business processes and the creation of databases. The integrated work progress management system ToPS*1 resulting from those measures enables us to create a system that provides high-quality services quickly and efficiently to all of our customers.

We provide landowners with proposals and support for effective land-use

＊1 Token Process Management System＊2 Sublease Management Agency System: Due to the revision of the Insurance Business Law, which came into force on April 1, 2006, we introduced a sublease management agency system

that has been converted to a sublease system. Under the new system, Token’s subsidiary, Token Building Management Co., Ltd., signs a master lease with the landowner and a sublease agreement with the tenant. In addition, the rental management and business agency businesses commissioned to Token Building Management are entirely subcontracted to Token Corporation and executed by Token Corporation.

There is a reason why landowners choose the Token Group as their business partner. Our Group can package various services to support the management of their rental properties. We handle the management of the building and tenants and the inflow and outflow of money so that owners do not have to be bothered with these details. Among our services, we operate a Sublease Management Agency System*2 that removes the fear of vacancies, which is one of the greatest concerns of landowners. Using this system, we act as an agent for the landowners, collecting rent from the

tenants and paying it in a lump sum to the landowner. In addition, we provide many other extremely strong support services, such as offering business agency agreements for up to a maximum of 30 years.

Behind these systems are the high occupancy rates that Token achieves due to the power of its tenancy arrangement abilities. We maintain a high occupancy rate of over 90% for the properties we manage. This record allows us to offer our highly competitive management agency system.

Our structural ability to dispel concerns that landowners have regarding the lease and rental property business as well as our record creates strong competitive strength

Construction Business Brokerage/Management Business

Landowners Are Principal Business TargetWithin Japan’s population, landowners are the group that represents Token’s principal marketing target. Many landowners have to deal with property taxes, inheritance taxes, and other cost issues because of the extremely high assessment value of land in cities in Japan even when compared with the rest of the world. Outside the cities as well, changes in business environment, such as cutting of subsidies for farmers due to changes in the Japanese government’s agricultural policies, have created great demand among landowners for assistance in making efficient use of land. This trend has steadily gotten stronger since the period of high economic growth in the 1970s.

The apartment and rental condominium business is a powerful method for effectively utilizing land. The reason for its effectiveness lies in the growth in the number of households in Japan. Along with the spread of the nuclear family in Japan, the number of people in a household has declined annually. In particular, there has been a sharp increase in the number of single-person households. Reflecting this trend, growth in the number of households has

dramatically outpaced population growth, climbing from 33,729,000 households in 1975 to 49,529,000 households in 2005. This surge has provided an incentive for landowners enter the apartment and rental condominium market. In addition, the low interest rate climate in recent years has driven a shift in the focus of asset management to effective land-use.

■ Consolidated Net Sales, Branches, Sales Personnel

Forecast

0

50

100

150

300

250

200

0

2,000

1,000

3,000

4,000

6,000

5,000

Jun. 2005 Apr. 2006 Apr. 2007 Apr. 2008 Apr. 2009

11North Japan

Block

19Chugoku-Shikoku

Block

19Kanto Block

19Kyushu Block

39Chubu Block

41Metropolitan Area

Block

122 127

155

137

■ Trends in Japan’s Number and Size of Households

Population (Thousands)

111,940

117,060

121,049

123,611

127,757

125,570

126,926

3.32

3.25

3.17

3.01

2.58

2.85

2.70

5-year Average Growth (%)

(Persons)

7.0

4.6

3.4

2.1

0.7

1.6

1.1

(No. of Households)

11.0

6.8

5.9

7.6

5.2

7.5

6.7

No. of Households(Thousands)

33,729

36,015

38,133

41,036

49,529

44,108

47,063

Year

1975

1980

1985

1990

2005

1995

2000

Persons perHousehold (Persons)

Total number of branches nationwide

174branches

TOKEN CORPORATION05

Sales Power and Growth Power

Maintenance

Bridge System

Comprehensive contracting of all operations pertaining to residential lease/rental management

System that assists the brokerage services of “Home Mate”

Handle the series of operations as one comprehensive system, standardize and computerize using IT, and then manage the system in an accurate and efficient manner

Note: Sub-branches or Home Mate branches are not included in the number of branches (At April 30, 2009, there were 48 Home Mate branches)

Note: Sub-branches or Home Mate branches are not included in the number of branches

237

174

104 109

2,6532,749

Apr. 2010

251

176

3,060

1,914

2,231

1,793

PropertyManagement

TenantRecruitment/ Assistance

ConstructionDesignLand-useProposal

26Kinki Block

Business Model Our Strengths-1

TOKEN CORPORATION 06

Consolidated net sales (¥ billions)

Number of branches

Number of sales personnel

ToPS (Token Process Management System )

Success 21

In making the decision to get into the rental and lease housing business, earthquakes rank alongside vacancies as one of the top concerns of landowners in Japan. It is a concern specific to an earthquake-prone zone.

To address this difficult issue, the Group set about developing its own original product. In 2002, we successfully developed and began marketing Shelulu-TP, which has earned the highest grade of earthquake resistance available under the evaluation standards of the Japan Residential Performance Indicator System. Shelulu-TP was extremely well received in the market not only because of its high earthquake-resistant properties, but also its low cost. Since its introduction, the Shelulu-TP series has achieved sales expansion at an accelerated pace with each passing year.

Original product development brings a sense of security to landowners in earthquake-prone Japan

In 2006, two events occurred that gave rise to expectations that Token could further accelerate sales of its core apartment products.

The first event was the development of Shelulu-TP20, a product that not only would not collapse or break in a major earthquake, but also dampened the shaking experienced in earthquakes. Shelulu-TP20 utilizes technological capabilities that the Company takes great pride in, combining a highly earthquake-resistant High-Strength Frame and a high performance Vibration-Resistant Frame (patent pending). Following the start of sales in May 2007, we received many sales enquiries, and the product has sold well throughout Japan.

The second event was the start of manufacturing of Shelulu-TP products under a two-pronged manufacturing base system covering both eastern and western Japan. The new system enables our West Japan Area, which previously had limited capabilities to aggressively take orders despite strong demand, to pursue a sales expansion strategy.

In addition, the Shelulu-TP series has received type-approval from the Ministry of Land, Infrastructure, Transport and Tourism. As such, since the product falls outside the “peer check” system stipulated by the revised Building Standards Law, it is possible to achieve the same short construction periods as before. As a result, the Shelulu-TP series is demonstrating extremely strong competitiveness in the new legal environment and the current economic downturn, making a large contribution to expanding orders.

The launch of our earthquake-resistance and vibration-dampening productshas further strengthenedthe growth power of our coreapartment products

Token began its drive to break away from the industry norm and become a manufacturer, by acquiring the Chiba Cisco Plant in 1998. Since then, the Company has built a manufacturing base using an M&A strategy. With the acquisition of Shelulu Kobe Plant in 2006, the Group has a total of five building materials and housing equipment plants throughout Japan. Because of the large impact of transportation costs of steel beams on our bottom line, the Shelulu Kobe Plant’s role as our Western Japan distribution base is extremely important to our profitability.

Based on these efforts, we have fashioned a system that brings in-house the manufacture of steel beam, wood, and plumbing products necessary for residential housing construction. On November 1, 2008, we merged the two subsidiaries (Token Leava and Nasluck) responsible for managing our five manufacturing bases, and are now working to capitalize on the merger’s synergy benefits. The merger has also allowed Token to capture “integration” benefits from trimming down related support operations. Currently, as our next step, we are pursuing “fusion” benefits to be gained from demonstrating synergies in all aspects of our manufacturing and logistics operations.

We have established five manufacturing bases across Japan to bring in-house the manufacture of steel beam, wood, and plumbing products necessary for residential housing construction

While we have been aggressively investing in M&A and building plants, we have still maintained profitability that is in no way inferior to our competitors in the industry. Our acquisition of plants was completed for the time being during 2006. From 2007 onwards, we began working to maximize the benefits arising from volume production of a wide range of standardized materials and housing equipment. Continuing to press forward with improving the efficiency and productivity of our manufacturing systems, we are boosting our profitability in leaps and bounds. In the fiscal year ended April 2008, there was a temporary deterioration in earnings due to the impact of the revision of the Building Standards Law. However, this effect ended in the fiscal year ended April 2009 and performance has returned to its normal upward growth trend.

In future, we will pursue the further establishment and strengthening of our in-house manufacturing system, aiming to achieve the highest profitability in the industry.

The establishment and strengthening of an in-house manufacturing system have produced one of the highest profitability levels in the industry

0

5.0

10.0

15.0

30.0

(%)

25.0

20.0

Preventing the collapse and other failures of the structural frame

Standard based on the strength of an extremely rare earthquakethat happens once in several hundred years as specified in the execution ordinance of the Building Standard Law:

Preventing damage to the structural frame

Class 3 :Class 2 :Class 1 :Class 3 :Class 2 :Class 1 :

Does not fail (collapse or break) at 1.25 times standard

No damage occurs at 1.5 times standard

No damage occurs at 1.25 times standard

No damage occurs at 1 times standard

Does not fail (collapse or break) at 1 times standard

Does not fail (collapse or break) at 1.5 times standard

Our construction frames provide

high-value-added support

Steel beams

CHIBACISCOPLANT

Acquired 1998

Steel beams

NKFUKAYAPLANT

Acquired 2002

Steel beams

SHELULUKOBEPLANT

Acquired 2006

Wooden products

IZUMODANTANIPLANT

Acquired 2002

Plumbing products

NASKAMAKURA

PLANT

Acquired 2005

■ Summary of Criteria established by the “Japan Residential Performance Indicator System”

■ Major Profitability Indicators (Consolidated)

■ Token Group In-House Manufacturing System

Jun. 2005 Apr. 2006 Apr. 2007

Vibration-dampening frame

Dampens shaking of house during earthquakes

11.5

21.2

9.2

18.213.8

25.0

Apr. 2008

8.7

11.3

High-strength frame

Prevents collapse or breaking of structural frame during earthquakes

TOKEN CORPORATION07 TOKEN CORPORATION 08

Apr. 2009

10.5

15.2

Internalization

Sales Power and Growth PowerIn-house Manufacturing and ProfitabilityOur Strengths-2 Our Strengths-3

ROE

ROA

Ratio of operating income to net sales

6.95.6

7.3

3.7

5.6

Number of Home Mate branches

Number of branches (sub-branches)

Number of sales personnel

0

400

800

1,200

1,600

2,000

2,400

3,200

2,800

Branch Openings and Increase of Sales Personnel

Because we are a business venture company when it comes to the construction industry, we are still in the process of expanding our business content and branch network. In the medium- to long-term, we will pursue a growth path.

For branch openings, we plan to use a “build and scrap” strategy where we will continue opening branches at the same time as we close branches with poor performances. The main points of this strategy are, first, to maintain our area coverage by opening branches mainly in areas near branches with good performance. The second point is that we will be especially emphasizing expanding area coverage in the major commercial regions of Kanto and Kinki. By following these two points, we will be able to expand our base mainly around branches that have high marketing efficiency.

However, for the fiscal year ending April 2010, we plan to curtail our branch openings to about 10 branches, reducing our pace of branch openings in view of the poor management conditions expected during the economic downturn. Nevertheless, we also will move forward with our aggressive plan to increase sales personnel at existing profit-making branches throughout Japan and at branches in the Kanto area, which we have positioned for strategic expansion as a core area. We plan to add a further 300 sales personnel, bringing the total number of sales personnel to 3,060 by the end of the fiscal year ending April 2010.

Pursing a medium- to long-term growth path by expanding our branch network through a selective and concentration strategy and

by increasing sales personnel in line with network growth

Product Development

Achieving growth by creating a new business environment through a shiftin core products and expansion of variations

As a business expansion strategy under the revised Building Standards Law, since the second half of 2007 we have been shifting our mainstay building structure product from our steel beam product (PERSONAL3E) to our highly earthquake-resistant and strong but light steel frame product (Shelulu-TP series) and our wooden two-by-four products (PALDEA24 and Star Terrace) and soliciting orders for these products. Not only do these products that we are newly emphasizing not require peer checks, they also offer very quick delivery—from order to start of construction—and have a relatively short construction period compared with other structures. These and other advantages contribute to improving the operating rates of our plants.

Going forward, we will give priority to the three competitive strengths of competitiveness against rivals, cost competitiveness, and intermediary competitiveness in our pursuit of product development. Specifically, we will push product development in the following five strategic product areas.

We will enhance our “core strategic products” to promote a strengthening of our market competitiveness and differentiation from competitors. In concrete terms, we will proceed with the enhancement of product variations of such lines as our highly earthquake-resistant strong but light steel frame Shelulu-TP series and the wooden 2 x 4 Star Terrace model as needed. Token will develop “low-cost strategic products” that feature further improvements in cost performance based on cost analysis. We are already working on the development of a low-cost version of our core Shelulu-TP series. We are making “regional strategic products” that suit the special features of regions, such as the cold climate version of Star Terrace. Token is developing “downtown strategic products” by renewing our existing reinforced concrete structural products MARINE TERRACE and NEOSTAGE. We also are developing “functional strategic products” that meet the needs of tenants in downtown or urban areas, such as women-only condominium buildings and fully furnished apartments.

Material and Housing Equipment Business

On November 1, 2008, Token Leava and Nasluck, the manufacturing and sales subsidiaries of the Token Group, merged and became the new Nasluck .

Currently, the new Nasluck is pursuing post-merger “fusion” benefits, working to achieve synergies in all aspects of its sales, manufacturing, logistics, and other operations.

Sales strategyIn terms of sales, we are revising our traditional strategy of focusing on regular grade products and steadily shifting our strategy to focusing on medium grade products. We are making a shift in order to establish a firm market position as a comprehensive manufacturer of housing materials and equipment. To do so, we are progressively developing new medium grade products. In addition, in targeting orders, we have started marketing activities aimed at supporting a shift from group tenant properties, such as rental apartments and rental condominiums, to condominiums, single detached homes, and housing development units. Based on these measures, we will transform Nasluck’s sales composition into one concentrated on high-margin medium grade products.

Manufacturing and logistics strategyIn terms of manufacturing and logistics, we are aiming to establish an even sounder organization. First, we will strengthen Nasluck’s collaboration with Token Corporation, which handles construction orders for rental properties, in order to improve the operating rates of our plants. With the aim of achieving stable production and promoting orders of our main products (Shelulu-TP II-related parts and materials), the two companies will hold meetings by product and by area block on a regular basis to closely monitor business progress, collect information, and exchange opinions on a groupwide basis (Shelulu Kobe and NK Fukaya plants). For wooden related building materials, Izumo Dantani

Plant will handle orders and manufacturing for all areas nationwide and work to improve operating rates.

Next, Nasluck will implement various measures to promote cost reductions. These measures include cost cuts through unification of specifications and parts and materials. They also involve strengthening the checks-and-balances / procurement functions by separating the sales (order receiving) and procurement (order making) departments. Another goal is thoroughly upgrading inventory management.

Pursuing a management strategy aimed at upgrading the merger benefits of our two manufacturing and sales subsidiaries

from the “integration” to “fusion” level

Shelulu Rococo Lady Shelulu-TP2

Star Terrace PALDEA S1 PALDEA24

Shelulu-TP20

TOKEN CORPORATION09 TOKEN CORPORATION 10

■ Consolidated Sales Branches and Sales Personnel

0

50

100

150

200

250

300

400

350

Apr. 2006 Apr. 2007 Apr. 2008 Apr. 2009 Apr. 2010(Plan)

Summary of Business Activit ies

178194

214 222

127

51

137

57

156

58

174

481,914

2,231

2,6532,763

224

178

46

3,060

● Luxury houses

● Luxury rental condominiumsHigh Grade

Regular Grade

Medium Grade

Future CoreTarget ● Single dwelling homes

● Real estate development projects 　 (Single dwelling homes)

● Rental condominiums and apartments

● Condominiums

Izumo Dantani Plant

Wooden interior fixtures, furniture, interior building materials and parts.

* The Shelulu Kobe and NK Fukaya plants carry out processing and production of highly earthquake resistant, strong but light steel frame apartment buildings, such as Shelulu TPII; kitchens units; and other products.

NK Fukaya Plant Production and

logistics center for Eastern Japan.

Shelulu Kobe Plant Production and logistics center for Western Japan.