In the consolidated fiscal year under review (April 1, 2010 to March 31, 2011), the business climate was characterized by the bottoming out of the economic recession and a mild recovery trend in individual consumption in Japan and North America. In Europe, although the financial and economic conditions differed for each country, future prospects remained uncertain as a whole. Meanwhile, continual economic growth in the emerging countries, in China and Brazil in particular, is expanding demand.

In this business climate, the Electronic Musical Instruments Business took initiatives to stimulate new demand by introducing many new high-value-added products into the market as well as marketing directly to a wide range of customers through contests and product events, etc. The Company also continued to focus its efforts on expanding its sales and distribution network through the promotion of global expansion of shop-in-shops and proposal of applications in the education field.

By product, even though sales of electronic drums were down year on year, sales of digital piano products, whose expressive capabilities were enhanced by new sound engines, were robust throughout the year. In the growth field of professional video, professional audio and computer music equipment on which we are focusing our efforts, sales grew substantially.

By region, although sales were flat year on year in our main markets of Japan, the United States, and Europe, sales have increased in Asia and other regions (including Central and South America).

As a result, along with the effect of the strong yen, net sales for the current fiscal year increased by 0.7% year on year, to ¥45,815 million. Concerning the profit and loss, despite the improvements of cost-to-sales ratio through an increase in production output, the Company posted operating loss of ¥128 million (from operating loss of ¥ 1,870 million for the previous consolidated fiscal year).

The Computer Peripherals Business positioned the creation of new value as its strategy, which will be attained through the creation of a corporate culture that generates innovation and “Co-Creation” of which the Company cooperates with customers, retailers, etc. beyond industries, markets and borders. Also, the Company continued to focus its efforts on global branding activities centered on “Imagine.,” a brand message the Company has adopted since January of last year, in a bid to reform its corporate structure with an eye to medium and long term growth.

In the field of color (large-format color printers for business use), sales rose significantly as a result of the proposal of new value and the expansion of its lineup. Meanwhile, in the field of 3D (3D image input and output equipment), the Company endeavored to broaden its customer base through such measures as the introduction of examples of utilization of principal equipment and the proposal of applications to the manufacturing industry. At the same time, the Company worked to cultivate new markets by introducing products for the dental market.

By region, sales grew in North America due to vigorous sales efforts relating to application solutions and the like, mainly focused on printers. Sales also remained solid, and increased year on year in Japan and Europe. Furthermore, sales rose significantly in Asia and other regions (including South America) as well.

As a result, net sales in this segment increased by 9.8 % year on year, to ¥32,454 million. Concerning the profit and loss, operating income increased by 126.8% year on year, to ¥2,398 million partly due to the effect of higher revenue.

As a result of the factors described above, overall net sales for the consolidated fiscal year under review increased by 4.3% year on year, to ¥78,270 million, and operating income was ¥2,270 million (from operating loss of ¥813 million for the previous consolidated fiscal year). In addition, affected by foreign exchange losses due to the strong yen and increase in tax expenses, ordinary income was ¥909 million (from ordinary loss of ¥541 million for the previous consolidated fiscal year), and net loss was ¥694 million (from net loss of ¥2,090 million for the previous consolidated fiscal year).