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Economic Aspects

Top Message (Centering on economic aspects)

Q7What is the forecast for results for fiscal 2009? How about dividends?

We reckon that incomes will decline due to the severe business environment, but we hope to maintain dividends at around the same level as those for fiscal 2008.

Economic prospects in Japan and North America, which constitute the major markets for our Group, are still opaque, and the world economy has many unstable factors such as the steep rise in the prices of crude oil and raw materials, fluctuations in money markets and sudden fluctuations in exchange rates, and the increasing severity of global competition.

In light of this situation, we reckon that consolidated sales for our Group during the next fiscal year (the year ending March 2009) are likely to be around the same level as this year at 2.69 trillion yen. The income environment is going to be increasingly severe due to the appreciation of the yen, the increase in the costs of crude oil and raw materials, and fall-off in sales, meaning that we foresee that operating income will be down by 25.8% over this year to 134 billion yen, ordinary income will be down by 23.2% to 143 billion yen, and net income will be down by 23.6% to 70 billion yen.

As regards dividends for next year, we will do all we can to maintain the same levels as this year despite the fact that business prospects are likely to be severe.

I would like to ask all stakeholders in our Group to continue providing us with their understanding and support.

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Graph: ROIC

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