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Net sales for the financial year ended March 2009 decreased by 126.6 billion yen, or 8.0% year on year, to 1,445.8 billion yen. Major factors behind the decline included the negative impact of a strong yen against the U.S. dollar that resulted in an exchange loss of 87.2 billion yen, a loss of 24.1 billion yen due to the deterioration of the sales volume and mix, as well as a sales decrease of 15.2 billion yen at our three internal companies.

Operating income saw a year-on-year decrease of 51.5 billion yen, resulting in an operating loss of 5.8 billion yen. This decrease was a result of foreign exchange losses from the sharp appreciation of the yen, increases in fixed costs and other overhead due to new model launches, as well as a hike in material prices, which we were unable to offset by cutting R&D expenses and improving sales volume & mix. This will be explained in further detail later on.

Ordinary loss totaled 4.6 billion yen with a year-on-year decrease of 50 billion yen in ordinary income due mainly to foreign exchange gains.

Net income fell 88.4 billion yen, resulting in a net loss of 69.9 billion yen. The major factor for this decrease included extraordinary losses incurred for withdrawal from the World Rally Championship (WRC), provision of allowance for doubtful accounts and loss on valuation of inventories due to the bankruptcy of Eclipse Aviation Corporation, as well as the provision of valuation allowance of deferred tax assets.