SHOEI Co.,Ltd.

	Company Outline

　Medium-Term Management Plan 2012

Since 2008, Shoei has continued to follow a management policy of prudent investment restraint under a slogan of “perseverance.” Moreover, in order to limit Shoei's future risks, Shoei abandoned the Chiyoda Ward Yonbancho development Project in order to strengthen its financial base. Taking the above circumstances into consideration, Shoei has formulated a medium-term management plan effective from fiscal 2010 to form clearer constructs for future management. The fundamental thinking for the medium-term management plan is based on “strengthening a foundation for future sustainable growth.”′ The following outlines the basic policy.

1) Strengthening profitability

- Strive to improve vacancy rates and rent by strengthening the Shoei’s leasing power.

- Over the next three year period aim for operating income \5.0 billion or more each year.

2) Further strengthening the financial base

- Aim to reduce outstanding debt so that the average debt repayment period* is 20 years or less.

* The average debt repayment period is (interest-bearing debt minus cash and deposits) divided by (ordinary income plus depreciation and amortization)

3) Improving the quality of owned real estate

- Implement renewal works of various facilities including measures to address environmental issues.

- Consider replacing owned real estate with better quality real estate when opportunities arise.

4) Raising the capability of personnel

- Introduce personnel evaluation systems that encourage education and training and support the improvement of employee knowledge in order to form a hand-picked elite professional group.