In fiscal 2003, construction investment in Japan declined for the seventh consecutive year. While government outlays on construction fell by about 10% and orders received by the 50 major construction companies rose only 0.2% on average, orders logged by the Daiwa House group increased 6.3%*. These results were led by the construction of major commercial complexes in suburban areas as well as other facilities requiring special know-how and technology, such as group homes and day service centers — areas in which demand is growing rapidly — as well as distribution facilities and sophisticate warehouses. As a consequence of this performance, we also posted a substantial rise in profits. *Excluding intra-group sales * Utilizing new methods including fixed-term tenancy, special-purpose company schemes, and private finance initiatives