Imaging Solutions (3rd Quater Fiscal 2007 Earnings)

Sales of color film continued to decrease and digital camera sales decreased due to intensifying price competition, although these trends were partially offset by a rise in our share of the color paper market in major countries that boosted our color paper sales.
As a result, consolidated revenue of the Imaging Solutions segment in the third quarter were ¥170.9 billion, and the year-on-year decrease in these sales was restrained to 12.3%.

Operating income in the segment was affected by the incidence of ¥2.1billion in structural reform costs as well as the impact of the sustained high price of silver, but the Company was able to absorb these factors and generate ¥11.2billion in segment operating income. This level of segment operating income is up ¥3.7billion, or 48.4%, from the same period of the previous fiscal year.

The main reasons for the increase include the benefits of the various structural reform measures that we have implemented so far, which have progressively led to considerable fixed cost decreases and manufacturing efficiency increases. The operating income improvement also reflects such factors as our progressive implementation of measures to increase the efficiency of expenditures.

• Fiscal Year 2008 (April 1, 2007 - March 31, 2008)
• Fiscal Year 2007 (April 1, 2006 - March 31, 2007)
• Fiscal Year 2006 (April 1, 2005 - March 31, 2006)
• Fiscal Year 2005 (April 1, 2004 - March 31, 2005)