REVENUE STRATEGY - SUMITOMO FORESTRY

1. Sumitomo Forestry Co., a Japanese homebuilder and timber producer, plans to spend 360 billion yen ($2.9 billion) in 10 years to buy local real estate and foreign forests
2. It plans to reduce its reliance on home building (because Japan's population expected to shrink) by investing in foreign timber plantations and in Japan's real estate market as land prices rose for the first time in 16 years.
3. It will spend 160 billion yen overseas over a decade to secure timber supplies.
4. It will invest 50 billion yen over the next five years and 150 billion yen in the following five years to acquire land and develop residential properties and nursing homes in Japan.
5. It plans to buy 80 billion yen worth of assets in Oceania and North America over the next five years.
6. It plans to finance investments using cash generated each year and by borrowings from banks, as well as possibly through bond sales.

Real-time adjustments to changing demand patterns = more sustained revenue

[Click here for full story at: BLOOMBERG.COM]