Change to the Straight-Line Method for Depreciating Property, Plant and Equipment

「As a result, compared with the previous method, operating loss, ordinary loss and quarterly net loss before income taxes for the cumulative second quarter decreased by ¥649 million each.」

「The Company and its domestic consolidated subsidiaries had previously used the declining-balance method to depreciate tangible fixed assets, excluding lease assets, while overseas consolidated subsidiaries used the straight-line method. From the first quarter of the current consolidated fiscal year, the Company and its domestic consolidated subsidiaries have changed to the straight-line method. In reviewing the operating status of the tangible fixed assets of the Company and its domestic consolidated subsidiaries as it formulated its sixth medium-term management plan, which began in the current consolidated fiscal year, and pursued a global growth strategy that maximizes the business foundations established to date, the Company determined that the facilities were expected to operate stably and that it would therefore be more appropriate to allocate depreciation expense evenly over their useful lives. Accordingly, the depreciation method was changed to the straight-line method. As a result, compared with the previous method, operating loss, ordinary loss and loss before income taxes for the cumulative first quarter decreased by ¥248 million each.」