Financial Material

We are making efforts to improve performance on the assumption that the current severe business environment will continue for the foreseeable future. The key measures are as follows.

As announced in December 2008, we have decided to reorganize our LCD plants in order to stay competitive in our LCD business. Besides closing a part of production lines at the Mie No. 1 Plant and the Tenri Plant, we will optimize the products and panel sizes at the other existing lines. By impairing assets associated with closure of less-competitive lines during this fiscal year and promoting concentration of production, we can reduce running costs from fiscal 2009 onward and thus improve profitability.

We will shift company personnel in steps to reinforce businesses in growth fields and to enhance our marketing and service. Additionally, we will reduce 1,500 non-regular employees in Japan by not renewing contracts. With these measures, we will promote right-sizing of personnel in line with sales figures.

Incorporating concrete results achieved by the emergency plan being implemented from November 2008, we will develop a plan to reduce total cost by 200.0 billion yen, including fixed cost of 100.0 billion yen. We aim to be a company to secure profit in fiscal 2009 even if the business environment remains tough like it has been in the second half of fiscal 2008.

In order to reduce foreign exchange risks and to respond to growing awareness worldwide of domestic production, we are working to localize the front-end process. And by forming alliances with leading local companies worldwide, we aim to maximize investment efficiency and improve cash flows with minimum capital investment. With this in mind, we will continue to promote development of a new business model. The first example of this is in our solar cell business, where we have an alliance with Italian power company Enel SpA to develop local plants and operate as an independent power producer (IPP).