Decline in Cash Flow from Operating Activities and Cash Balance

「Funds decreased by ¥212 million as a result of operating activities, compared with an increase of ¥516 million in the same period of the previous year. This was mainly attributable to a ¥130 million decrease in trade payables and a ¥103 million decrease in other accounts payable, because payment of liabilities outstanding at the end of the previous fiscal year was carried over into the current period as the previous fiscal year-end fell on a non-business day for financial institutions, despite pretax interim net income of ¥199 million; payments of corporate income taxes and other taxes totaling ¥101 million; and increases of ¥43 million in trade receivables and ¥55 million in advances paid, respectively, accompanying the seasonal increase in sales.」