In Japan, sales of products for automotive-related businesses increased, but sales of highly-profitable products for OA equipment and PC-related businesses substantially decreased, resulting in a decrease of income. In the overseas market, sales in Thailand, which suffered damages from flooding in the previous term, have shown an increase compared with the previous term, but due to an increase of costs for personnel and other expenses, income decreased. Business results of the Group's subsidiary in the U.K. were also dull due to a downturn in the European economy. As a result of the above, sales went down to 12,960 million yen with a decrease of 2.9% YOY, and segment income went down to 298 million yen, down 67.1% YOY.
In the next term, we expect an increase of sales in OA equipment and automotive-related business in Asia and the U.S.. In Japan, we intend to make efforts to recover income by innovating sales structure, acquiring new customers, and developing standardized product business.


In the overseas market, income in Vietnam increased due to an increase of sales of automotive-related products. In Japan, on the other hand, although sales of automotive-related products were robust, sales of products for OA equipment decreased under the impact of relocation of our clients to overseas and some other factors. Also, as bonuses, wages, and other personnel expenses in Japan and China increased, income decreased. As a result of the above, sales went down to 10,090 million yen with a 0.7% decrease compared with the previous term, and the segment income went down to 142 million yen, down 41.8% YOY.
In the next term, we expect an increase in income with a recovery of sales of products for OA equipment and expansion of sales of automotive-related products in Japan on the one hand and in overseas, such as China, and Vietnam on the other.


Sales in hinge units decreased as we downsized cell phone-related business and sold PC-related business. However, losses decreased substantially as we raised the prices of our products and cut labor costs and other fixed costs. Net sales went down to 499 million yen with a 70.3% decrease compared with the previous term, and segment loss iwhich was 559 million yen in the previous termj went down to 27 million yen.
In the next term, we shall advance with downsizing of the business and reducing fixed costs further, striving to make the business profitable again.

