Non-operating income and expenses dropped 0.2 billion yen year on year.

Financial revenue and expenditure as well as a foreign exchange effects are two primary factors behind this increase or decrease. Financial revenue and expenditure decreased 1.9 billion yen due to a year-on-year increase in loans.

Foreign exchange fluctuations had a significant impact on non-operating income and expenses mainly in the following two areas: (1) gains and losses on revaluation of derivatives, and (2) foreign exchange gains and losses.

Net gain and loss on revaluation of derivatives increased 4.6 billion yen on a year-on-year basis, rising up from -0.5 billion yen to reach +4.1 billion yen. Net foreign exchange gains and losses showed a decrease of 3.2 billion yen on a year-on-year basis due to the difference in the market and hedge rates (rounded off to 96/105) as well as a year-on-year decrease of 0.5 billion yen in the foreign exchange adjustments with overseas subsidiaries.