Imaging Solutions (1st Half Fiscal 2008 Earnings)

Regarding the Imaging Solutions segment, demand for color films and digital minilabs continued to decrease, but factors including a rise in market share enabled a rise in our color paper sales, and our sales of digital cameras were strong. These factors restrained the decrease in the Imaging Solutions segment's consolidated revenue from the level in the same period of the previous fiscal year to only 5.0%, and this revenue amounted to ¥291.7 billion.

Operating income for the segment amounted to ¥10.0 billion. Although the segment's operating profitability was negatively affected by the stubbornly high price of the raw material silver, this was offset by our progress in improving the segment's cost structure through such structural reform measures as those aimed at reorganizing manufacturing systems and streamlining workforces. The improved operating profitability also reflected the benefits of yen depreciation. Performance in the interim period of the previous fiscal year was affected by ¥29.8 billion in structural reform expenses, while performance in the interim period under review was impacted by “Slim and Strong Drive” expenses and the adoption of new depreciation methods. If the impact of such special factors is excluded, segment operating income in the period under review was up greatly.

• 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)