Financial Material

Net sales for fiscal 2009 were 2,755.9 billion yen, down 3.2% compared to the previous year. In fiscal 2009, demand in the Japanese domestic market recovered thanks to government stimulus packages such as the Eco-Point System, a subsidy program to award "eco-points" for the purchase of environmentally-friendly consumer electronics. However, in general, the harsh business environment continued, with price declines resulting from severe price competition and the appreciation of the yen. Amid these circumstances, we worked to increase sales of LED AQUOS, a high-image-quality, low-energy-consumption LCD TV, as well as health- and environment-related products, such as solar cells and home appliances equipped with Plasmacluster Ion technology. As a result, net sales continued to recover steadily from their low point in the fourth quarter of fiscal 2008 (January to March 2009). If the impact of the appreciation of the yen of 118.0 billion yen were excluded, annual net sales would have been the same level as the previous year. Operating income was 51.9 billion yen, an improvement of 107.3 billion yen compared to the operating loss of 55.4 billion yen recorded in the previous year. This was due mainly to the cost reduction implemented as part of the recovery plan. Total costs for fiscal 2009 were reduced by 213.8 billion yen compared to the previous year, reaching our annual reduction target of 200.0 billion yen. Net income was 4.3 billion yen, an improvement of 130.2 billion yen from the net loss of 125.8 billion yen recorded last year.