Factors resulting in the drop in operating income from 58.3 billion yen to 50 billion yen are as follows: First, factors for increase include 10.7 billion yen which will be the result of the sales mix in particular. This figure includes an approximately 1 billion yen loss of deterioration of sales mixture associated with improving specifications to meet environmental and safety regulations which could not be reflected in the sticker price. In Japan it will be 2.5 billion yen, and overseas minus 4.7 billion. Also, inventory adjustments and others will amount to about 13 billion yen with improvements expected mainly because the foreign exchange effect on revaluation of unrealized profits. Cost of materials are expected to go down 1.6 billion yen at FHI and 1.1 billion yen at SIA for a total of 2.7 billion yen. Raw material costs are expected to rise about 16 billion yen, and the effects of worsening market conditions are expected to be particularly big. As for factors causing a decrease in profits, the difference in the exchange rate will be minus 5 billion yen, which will be a result of the Yen strengthening 2 yen to the U.S. dollar for minus 5.4 billion, against the Euro 2 yen for minus 0.3 billion and weakening against the Canadian dollar by 2 yen for 0.2 billion yen. With the U.S. dollar weakening against the Canadian dollar, there will be 0.5 billion yen gained with shipments from SIA to Canadian subsidiaries for an overall total of 0.7 billion yen. The 7.1 billion yen in increase of research and development spending will decrease in profit because of development on new models. SG&A expenses and others will increase by 9.6 billion yen, which decline in profit. These include a 1.1 billion increase in fixed manufacturing costs. In Japan, the depreciation expenses for minicar dies will drop, but at SIA depreciation expenses for the B9 Tribeca will increase, so there will be an overall increase. SG&A expenses will be 7.4 billion yen higher than the previous year. Advertising expenses at FHI and domestic dealers will increase with the introduction of new models in Japan. Additionally, incentives at SOA will increase by about US$100 per unit over the previous year, and advertising expenses will also increase leading to an increase of 2 billion yen. Furthermore, warranty expenses will increase by 2.7 billion yen. The remainder is other factors. Overall we expect operating income to drop by 8.3 billion yen.