CONSOLIDATED STATEMENTS OF INCOME Millions of Yen Three Months Ended June 30, 2007 Three Months Ended June 30, 2006 Amount Ratio Amount Increase Decrease Percent Change Ratio % % % Net Sales 693,720 100.0 796,010 100.0 + 102,290 + 14.7 Cost of Sales 530,897 76.5 615,168 77.3 + 84,271 + 15.9 162,823 23.5 180,842 22.7 + 18,019 + 11.1 122,393 17.7 138,587 17.4 + 16,194 + 13.2 40,430 5.8 42,255 5.3 + 1,825 + 4.5 0.6 - 3,828 + 393.8 Gross profit Selling, General and Administrative Expenses Operating income Other Income (Expenses), net ( Income before income taxes and minority interests Income Taxes Minority Interests in Income of Consolidated Subsidiaries Net income ( 972 ) 0.1 ( 4,800 ) 39,458 5.7 37,455 4.7 - 2,003 - 5.1 15,489 2.3 13,166 1.7 - 2,323 - 15.0 0.0 + 5 - 6.5 3.0 + 325 + 1.4 77 ) 23,892 0.0 3.4 ( 72 ) 24,217 Noteļ¼ 1. Until the first quarter of the previous year (the three months ended June 30, 2006), royalty and technical assistance fees had been included in "Other income," and the costs of the royalty and technical assistance fees had been calculated in "Other expenses." However, starting from the first half of the previous year, these were included in "Net sales" and "Cost of sales," respectively. If calculated on the new basis, for the three months ended June 30, 2006, net sales, cost of sales and operating income would be up 4,327 million yen, 1,525 million yen and 2,802 million yen, respectively. However, these would have no impact on income before income taxes and minority interests. 2. Starting from this period (the three months ended June 30, 2007), the method of depreciation and amortization was changed, in accordance with the revision of the Japanese Corporate Tax Law in fiscal 2007. With this change, for the three months ended June 30, 2007, operating income and income before income taxes and minority interests were down 2,442 million yen each, compared to the previous method.