Change in Depreciation Method for Property, Plant and Equipment from Declining-Balance to Straight-Line

「The company and its domestic consolidated subsidiaries previously used the declining-balance method to depreciate property, plant and equipment, but changed to the straight-line method from the beginning of the current consolidated fiscal year.」

「The company and its domestic consolidated subsidiaries previously used the declining-balance method to depreciate property, plant and equipment, but have changed to the straight-line method from the current interim consolidated accounting period. Following a review of the depreciation method for property, plant and equipment prompted by the expansion of a production line at the Yonago Plant, the company determined that the straight-line method, which allocates costs evenly over the useful lives of the assets, more appropriately reflects the actual use of the property, plant and equipment, because its production facilities and other equipment are expected to operate steadily over their useful lives based on past production results, equipment usage and future production plans. As a result of this change, operating income, ordinary income and interim net income before income taxes and other adjustments each increased by ¥101 million in the current interim consolidated accounting period compared with the previous method.」