Translation of Revenues and Expenses of Overseas Subsidiaries at Average Exchange Rates for the Period

「Revenue and expenses of overseas consolidated subsidiaries and other entities were previously translated into yen using the spot exchange rate on each company's balance-sheet date. From the current consolidated fiscal year, the company changed to translating them using the average exchange rate for the period.」

「As a result, compared with before retrospective application, during the cumulative third quarter of the previous fiscal year, net sales decreased by ¥462 million, operating income by ¥291 million, ordinary income by ¥4 million, income before income taxes by ¥4 million and net income attributable to owners of the parent by ¥11 million. Quarterly net income per share decreased by ¥0.15.」

「Revenue and expenses of overseas consolidated subsidiaries and other entities were previously translated into yen using the spot exchange rate on each company's balance-sheet date. From the first quarter of the current consolidated fiscal year, the company changed to translating them using the average exchange rate for the period. This change was made against a backdrop of the increased materiality of overseas subsidiaries and other entities and a review of the group's internal management structure, including the standardisation of its budget management system. It was also made to mitigate the impact of temporary exchange-rate fluctuations on period results and to reflect more appropriately in the consolidated financial statements the results generated by overseas subsidiaries and other entities throughout the consolidated fiscal year. The accounting policy change was applied retrospectively, and the quarterly consolidated financial statements for the cumulative second quarter of the previous fiscal year and the consolidated financial statements for the previous fiscal year reflect the retrospective application. As a result, compared with before retrospective application, net sales decreased by ¥458 million and operating income by ¥113 million, while ordinary income increased by ¥57 million, income before income taxes by ¥57 million and net income attributable to owners of the parent by ¥18 million during the cumulative second quarter of the previous fiscal year. Quarterly net income per share increased by ¥0.24.」

「Revenue and expenses of overseas consolidated subsidiaries and other entities were previously translated into yen using the spot exchange rate on each company's balance-sheet date. From the first quarter of the current consolidated fiscal year, the company changed to translating them using the average exchange rate for the period. This change was made against a backdrop of the increased materiality of overseas subsidiaries and other entities and a review of the group's internal management structure, including the standardisation of its budget management system. It was also made to mitigate the impact of temporary exchange-rate fluctuations on period results and to reflect more appropriately in the consolidated financial statements the results generated by overseas subsidiaries and other entities throughout the consolidated fiscal year. The accounting policy change was applied retrospectively, and the quarterly consolidated financial statements for the cumulative first quarter of the previous fiscal year and the consolidated financial statements for the previous fiscal year reflect the retrospective application. As a result, compared with before retrospective application, net sales decreased by ¥41 million, operating income by ¥20 million, ordinary income by ¥5 million, income before income taxes by ¥5 million and net income attributable to owners of the parent by ¥5 million during the cumulative first quarter of the previous fiscal year. Quarterly net income per share decreased by ¥0.06.」