We have revised the financial results forecast for fiscal 2012 by taking into account the business results in the first half and the anticipated downward swing of the economy in the second half of the fiscal year. Net sales have been revised to 2,460.0 billion yen, operating loss to 155.0 billion yen, and net loss to 450.0 billion yen.

Compared with the previous forecast, net sales are down by 40.0 billion yen (-1.6%), reflecting the revisions made in LCDs and Solar Cells. Net sales in the second half are expected to increase compared to the first half, mainly with a sales growth in Audio-Visual and Communication Equipment, LCDs, and Solar Cells.

Operating loss is also revised down from the previous forecast, by 55.0 billion yen. This is due largely to the inventory write-down in LCDs and Other Electronic Devices in the first half, as well as to the business risks anticipated for the second half of the fiscal year. As for the second half of the fiscal year, we expect a turnaround of 182.8 billion yen from the first half to operating income, due mainly to the improvement in Audio-Visual and Communication Equipment, LCDs, and Other Electronic Devices. Effect of business restructuring such as reduction in fixed costs and assets is projected to make up 70% (127.3 billion yen) of the factor of income increase.
As for the second half of the fiscal year, we are expecting a profit increase as a result of posting an inventory write-down in the first half of the fiscal year. We aim to achieve a turnaround in operating income in the second half by pushing the performance toward profitability in the fourth quarter.

For the second half of the fiscal year, further restructuring charges are anticipated for some overseas subsidiaries, as are personnel downsizing expenses regarding voluntary retirement. Nevertheless, for the second half of the fiscal year, we expect that Other Expenses as a whole will significantly decrease compared to the first half of the fiscal year. As for a deferred tax asset for the second half, no reversal is currently projected.
Through a profit recovery, free cash flow is expected to turn positive in the second half of fiscal 2012, after hitting bottom in the second half of fiscal 2011.
With regard to our debt and assets, while we are seeing a reduction in total assets through decreased inventory and the compression of noncurrent assets, other short-term borrowings are increasing in association with a decrease in issuance of commercial paper.
Although commercial paper is projected to roll away in the second half of the fiscal year, we will cover the shortage of commercial paper with other short-term borrowings.
We regret that net assets will also be reduced significantly due to the posting of a substantial net loss.
Interest-bearing debt is projected to decrease by 180.0 billion yen compared to the level at the end of September 2012, when it reached a peak.