Cost reductions improved by ¥2.4 billion year on year and contributed significantly to the increase in profit. Although fixed costs expanded temporarily and earnings declined in the first half of 2012 since we prioritized the consolidation of production sites in China and product supply amid new product launches, we considerably reduced fixed costs year on year as a result of promoting measures to improve production efficiency and downsize personnel since the latter half of 2012. The Group reduced variable costs in manufacturing in line with plans by promoting centralized purchasing of components and unitization.
SG&A expenses were kept within plans despite increasing through efforts to strengthen M&As and the sales system aimed at expanding business.