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Concerning the forecast of the fiscal year ending March 2009, we revised the projection of the first half period on October 23, 2008 as the business performance had surpassed the forecast. However, we keep the current full year forecast projected at the beginning of the fiscal year due to the concern for the sales which could be negatively impacted by surging yen, worsening economy, and an increased apprehension of a global depression.
However, concerning foreign exchange, we anticipate a trend for high appreciation of yen and we plan for 100 yen to 1 US$, 135 yen to 1 EUR, and 95 yen to 1 CA$ after the third quarter based on the actual results of 105 yen to 1 US$, 164 yen to 1 EUR, 104 yen to 1 CA$ for the first half period. Therefore, 103 yen to 1 US$, 149 yen to 1 EUR, and 99 yen to 1 CA$ are expected rate through the fiscal year.
Net sales are expected to increase to 1,600 billion yen with increased revenues of 27.7 billion yen year on year basis. In the domestic market, an increase of 16 billion yen based on an increase in the number of passenger cars, and in overseas, an increase of 11.6 billion yen due to an increase in the number of units sold.
In addition, concerning operating income, we are anticipating 23 billion yen, a decrease of 49.6% or 22.7 billion yen in profit compared with the previous fiscal year. In the first half, operating income exceeded the plan. However, the beginning of the fiscal year forecast will be remained since it is extremely difficult to anticipate the second half of the fiscal year. The detail will be clarified later, but in terms of the sales volume, the planned figures was revised downwards by 20 thousand units from the beginning of the fiscal year. We revised the exchange rates towards an appreciation of the yen against the Euro and Canadian Dollar. We anticipate an operating income of 4.7 billion yen in the second half of the fiscal year.
In addition, ordinary income is forecasted to be 20 billion yen due to the foreign exchange forward contracts that are effective until considerable future. We keep the planned figure of 10 billion yen for the net income since we anticipate a refund of the deferred tax assets in the second half of the fiscal year.