Change in Translation Method for Overseas Subsidiaries in Response to Expanded Overseas Operations

「Previously, income and expenses of foreign subsidiaries were translated into yen using the spot exchange rate on the foreign subsidiary's balance-sheet date. From the beginning of the first quarter consolidated accounting period, we changed the method to use the average exchange rate for the period. This change was made because, amid increasingly complex international conditions and a widening range of exchange-rate fluctuations, the impact of foreign subsidiaries' profit or loss is expected to become more significant as our group expands overseas. The change is intended to mitigate the impact of temporary exchange-rate fluctuations on period earnings and reflect the performance of foreign subsidiaries more appropriately in the quarterly consolidated financial statements.」