Consolidated Net Sales FY 2012 (Ended March 31, 2012)

Electronic Musical Instruments Business

With respect to synthesizers, sales of existing products, especially high-end models, were weak in the major markets of Japan, North America, and Europe, causing sales to significantly decline year on year. As for sales of electronic drums, new products with new sound engines were launched in the fourth quarter in Japan, where sales were roughly flat year on year. Despite this, sales of existing products were weak overall in North America and Europe.

With regard to guitar effects, in spite of robust sales in Central and South America and Asia, overall sales were flat year on year due to sluggish sales of multi-functional guitar effects, primarily in Europe.At the same time, sales of existing multi-track recorder products for guitars fell significantly year on year, but sales of new guitar synthesizer products rose substantially.

Sales of digital pianos stayed solid, thanks to sales expansion in Central and South America and Asia, and the launch of new products in our mainstay product series in Japan during the fourth quarter. However, flagging sales in Europe brought down overall sales, which fell below those of the previous consolidated fiscal year. Meanwhile, sales of new products of sound modules with automatic accompaniment for foreign countries were robust, primarily in Europe.

With respect to professional audio equipment, sales were sluggish against a backdrop of decreased corporate capital expenditure in Japan and Europe, but in the case of professional video equipment, sales of new all-in-one AV mixers for live online video streaming contributed to the posting of year-on-year sales growth. Computer music equipment, on the other hand, saw sales of music production software and portable recorders decline.

Sales of sound engines for online karaoke machines and music schools decreased in Japan. The decline in music class sales was because we transferred some of our music class operations as part of our efforts to expand our music schools through stronger partnerships with retailers.

Computer Peripherals Business

With respect to printers, our new compact size printers with metallic silver ink sold well, as did our new UV printer products, capable of directly printing on three-dimensional objects. We also launched new inkjet printers which use water-based ink in the Chinese and Korean markets, in order to capture Asian sign and display market demand. Nevertheless, owing to the reduced sales of high-end models in Europe due to decreased incentive for capital expenditure, as well as sluggish sales in Asia due to increasing competition from local manufacturers, sales decreased year on year on the whole.

In 3D products, sales of engraving machines were strong, and milling machines for the dental market contributed to sales. We also launched new compact milling machines for the hobby market, and are working to open up new markets.

As for supplies, sales especially of inks grew on the strength of such factors as rising demand in foreign countries and strong sales of UV curable inks with high elasticity that allows printing on packages of various shapes.