We keep improving the company's system to preserve our policy. And this process guides our constant business growth. And 3 themes of business vision we believe in are : "Read the next new waves ahead in the hair and beauty salon business field", "Train young creators for this field's future." and "Offer attractive working spaces for our staff."
In these years, young people who want to be hair designers are decreasing every year. It may be caused by the low birth-rate in Japan and this field might not attract them to build up their careers anymore. We picture young people in this business field would more decrease in the next ten years. It is critically important to maintain top quality service and top quality hair and facial care.
Young consumers, 20's and 30's age group of men choose beauty parlours to their hair cut, and also the 40's generation do so in these days. From customers' points of view, beauty parlours and barbers started to unite and to be recognized as one category. We have to consider the future for both beauty parlours and barbers at the same time.
Consumers' tastes and demands keep changing and their requests are diversified. In our opinion, three types of beauty salons will extend their business, growing in the future. These three are: luxury and exclusive service salon, compact sized salon provides a flexible service, and simple serviced salon with reasonable rates. While constant man-power shortage would cause that only few salons can continue long-term businesses in this field.
In order to keep our company policy real, we concentrate on training salon staff, supplying attractive working environment for our staff, and improving salons and group management system. Concerning the working environment and the management system, we run our original brand name allowance system (mentioned as "ARTE-sharing system" from here on). We operate franchised salons of Ash Co. Ltd. and New York - New York Co. Ltd. with this system.
The ARTE-sharing system gives permission to use our brand name and salons for our superior designers. They run salons which they used to work as their own salons with our support. With this system, we will not lose top grade designers who want to own their salons¡Äand for customers, they hardly loose their favourite hair designers.
In our business record, we have opened more than 100 salons ("Ash" and "NYNY") and more than 80 of these salons have been managed by more than 30 salon owners using the ARTE-sharing system.
On the other hand many of business people outside our group are very interested in ARTE policy and wish to join the ARTE Group. So now we provide a different type of franchising business style to them; we issue a membership approval to applicants. The system is operated by Style Designer Co. Ltd. which became into ARTE Group since 2007. Additionally, to consider future barbers' businesses, we established AMG Co. Ltd. in the ARTE Group in 2007.
Now ARTE is carrying out our business plan to increase our salons by 500 salons (doubling the present number of ARTE salons) in the next 7 years. Also, we will try to reach 1,000 salons in the next 14 years as well as continuing to produce more superior hair designers for new salons.
ARTE Salon Holdings, Inc. provides detailed individual plans for each affiliated company in the group. Those plans support the affiliated companies to promote brand names and take advantages of ARTE. We direct total business progress for them. We must have a total and long-term business view as a leading company in the ARTE Group. Also we keep producing new systems and services in the beauty salon business and match the post modern movement. Moreover, we show specific leadership of corporate governance in the society.
At the same time, ARTE tries to satisfy all of our customers with our best effort we are pursuing higher quality than now and the most reasonable charges for our services. We appreciate you supporting our business now and in the future.

The President and Representative Director
Naoki Yoshihara