August 29, 2000 FY2000 Interim Closing of Accounts and Performance Forecasts for Current Term Takenaka Corporation While there is currently a sense of gradual recovery in Japan's economy, investment in construction still remains sluggish, making for a continued harsh environment for receiving orders. Under these conditions, Takenaka's June interim closing of accounts recorded sales of 482.3 billion yen (0.8% reduction on the same period in the previous year), ordinary profit of 13 billion yen (34.2% up on the same period in the previous year), and interim profit of 400 million yen (down 92.1% on the same period in the previous year), both a drop in revenue and profits. This is the second consecutive term in which an increase in ordinary profit has been recorded, and this can be attributed to increased profitability of construction work through efforts to reduce construction costs, and the effect of efforts to cut expenses. Nevertheless, Takenaka recorded a dramatic drop in interim profit due to the inclusion of losses on the sales of fixed assets and losses on the valuation of real estate for sale in an effort to improve the company's financial situation. Orders received, an advance indicator of business performance, were 498.8 billion yen (up 42.9% on the previous year's figures) thanks partly to major construction projects. This is the first time in three terms where an increase has been recorded. Performance forecasts for the current fiscal year based on the June interim closing of accounts are sales of 1 trillion yen (up 10.4% on previous year's figures), ordinary profit of 15 billion yen (up 93.0% on previous year's figures), and profit for the current term of 3.5 billion yen (down 49.6% from the previous year). Orders received are expected to be 950 billion yen (12.8% up on the previous year), the second consecutive term where orders are expected to be below the 1 trillion yen line.