Impairment Losses Resulting from Changes in Market Conditions at the Indian Subsidiary

「For the operating assets of our consolidated subsidiary, Paioniax India Private Limited, profitability deteriorated because of substantial fluctuations in customers’ production and other factors resulting from unforeseeable changes in the market environment in India. We therefore reduced their carrying value to the recoverable amount and recognized the reduction of ¥327 million as an impairment loss under extraordinary losses. The breakdown was ¥107 million for buildings and structures, ¥161 million for machinery, equipment and vehicles, ¥54 million for tools, fixtures and equipment, and ¥5 million for other intangible assets.」