As of March 31, 2004 Thanks to a sharp recovery in profits, the equity ratio rose 1.1 percentage points to 45.3% Approximately ¥25 billion lump-sum payment to Company's welfare pension fund Non-operating income increased due to ¥9.5 billion actuarial gain on retirement benefits Interest-bearing liabilities reduced by ¥4.5 billion to ¥1.5 billion at term-end Housing industry as a whole Private-sector capital investment (in real terms) rose 12% year-on-year, topping the 10% growth mark for the first time in five years. Current reduced tax amount on mortgage loans extended by one year. Daiwa House group The gross profit margin on land rose 6.6 percentage points. (Daiwa House non-consolidated figure) The group's resort hotel business moved back into the black. Housing industry as a whole Although the margin of decline in the publicly assessed land price shrank, and a bottoming out of the downward trend was seen in certain quarters, the overall market situation remained weak. The proportion of prefabricated housing as a percentage of total new housing construction starts declined for the fourth consecutive year, falling as far as 13.5%. Daiwa House group One-time expenses relating to the closure of home centers and other cost factors were recorded in the amount of ¥11.3 billion. Sales of lot-subdivision single-family houses declined from the previous term, both in number of units and amount on a non-consolidated basis.