Review of the residual values of fixed assets at 精密焼結合金（無錫）有限公司

「Following the review, the residual value of property, plant and equipment, principally machinery and equipment, was reduced from 10% of acquisition cost to 1%. As a result of this change, gross profit, operating profit and ordinary profit for the current consolidated fiscal year each decreased by ¥408.065 million, while loss before income taxes increased by the same amount.」