Document Solutions (Fiscal Year 2007 Earnings)

Revenue* / Operating Income
[graph] Revenue* / Operating Income
Breakdown of Revenue
[graph] Breakdown of Revenue

Strong exports of color digital multifunction devices to North American and European markets and robust sales of such devices in the Asia-Pacific region including China were primary factors contributing to a 4.6% increase in consolidated revenue in this segment compared with the previous fiscal year, to ¥1,151.0 billion.

Operating income in the segment was affected by the ¥16.7 billion in expenses associated with the “Slim & Strong Drive” cost reform program begun in the latter half of the fiscal year. However, excluding this impact, pro-forma operating income grew considerably-by 16.2%, to ¥77.9 billion, up ¥10.9 billion compared with the previous fiscal year.

Although SG&A expenses increased due to measures aimed at expanding business in such growth markets as those of China and other Asian countries, a rise in office product business sales volume, such as that of color digital multifunction devices, and an improvement in manufacturing costs contributed to an increase in the gross profit.

Consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States of America.

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