When we look at the management environment in this consolidated fiscal year, the world economy has plunged into a global recession since the financial crisis in the U.S. which has adversely affected the global real economy and consequently caused a dramatic drop in demand. In Japan's economy, corporate earnings have been significantly impacted by a drastic decline in exports as well as a reduction in personal consumption and capital investments. Moreover, business risks are increasing due to the steep appreciation of the yen, sharp drop in stock markets, along with other factors related to financial markets.

Under these circumstances, our group has been promoting improvement of business efficiency and the reduction of costs along with continuing our proactive approach to the reformation of our business structure to increase profitability and to promote sustainable growth. In the clock business, although the domestic market remains weak due to changes in consumers' diversified preferences and lifestyles, decline in housing constructions and other issues, we have been promoting restructuring, such as improving efficiency in each process of product planning, manufacturing, logistics and sales, consolidating production bases, reviewing sales offices and other activities in order to ensure profits even in such difficult times. While experiencing a sharp downturn in consumption in overseas markets, the company has been promoting activities for opening new markets in emerging countries and strengthening cooperation with agencies in each country to maintain and increase sales and profits. As a result, operating profits were drastically improved although sales for the Clock Division decreased from the previous year.

In the Electronics Division, we have been facing a severe market environment in the information-processing equipment field. However, aggressively providing client companies with plans for new products and implementing other activities has resulted in increased sales over the previous year. In the injection molds and parts field, on the other hand, the company was negatively affected by a shrinking demand for precision parts for mobile phones, digital cameras and other products, and both sales and operating profits declined from the previous year. In addition, in the IC assembly field, which has been shrinking, we had conducted measures for business recovery on a constant basis. However, since we could not foresee future recovery, we have decided to withdraw from this operation and focus our management resources in other business fields. As a result, both sales and operation profits for the Electronics Division decreased from the previous year.

As a result, our group sales for this consolidated fiscal year totaled 29.409 billion yen, a 6.6% decrease compared to that of the previous fiscal year with sales of 31.497 billion yen. Thanks to a significant increase in profits from the Clock Division, despite decreased profits in the Electronics Division, operating profits were 113 million yen, a 90.1% increase over the previous year with profits of 59 million yen. Concerning ordinary profits, although interests and dividends earned 266 million yen and rental and trust asset revenues were 248 million yen, foreign exchange losses were 132 million yen, resulting from the loss by the revaluation of foreign currency receivables. Consequently, ordinary profits were 328 million yen, which was a 57.9% increase over the 207 million yen earned during the previous year. Net losses for this fiscal year were 1.903 billion yen (net loss of the 39 million yen for the previous year) after allocating 946 million yen of musical copyright infringements compensation loss, 829 million yen loss from the revaluation of investment securities, and 377 million yen for the cost of business structure improvements and other losses.