Financial Material

For fiscal 2009, we expect net sales of 2,750.0 billion yen, down 3.4% from the previous year, operating income of 50.0 billion yen, and net income of 3.0 billion yen. For the first quarter of fiscal 2009, we foresee the harsh business environment continuing. However, considering the effect of our recovery plan and the fact that the inventory adjustment has nearly finished in the market and there are indications of order increases, we expect profits to start to gradually recover from the second quarter of fiscal 2009 onward. Also, by following through on efforts such as business restructuring, we succeeded in significantly reducing our inventory level by 118.1 billion yen, from 518.1 billion yen at the end of December 2008 to 399.9 billion yen at the end of March 2009. We will now be able to smoothly introduce new products and improve the utilization rate for our plants in fiscal 2009. Therefore, in our forecast, we expect recovery in the second half with net sales of 1,500.0 billion yen, up 16.7% over the same period last year and operating income of 50.0 billion yen. This would compare to net sales of 1,250.0 billion yen, down 20.0% and operating income of zero in the first half. Capital investment will be 250.0 billion yen, down 4.0% compared to the previous year, including 150.0 billion yen towards LCDs. Depreciation and amortization will be 250.0 billion yen, down 7.9%, and R&D expenditures will be 185.0 billion yen, down 5.4%. Our assumed exchange rates are 95 yen to the U.S. dollar and 125 yen to the euro.