Could you provide us with an analysis, by causal factor, of the changes, compared with the previous fiscal year, in the operating income of the musical instruments business segment in FY2010.3?
• A1: Operating income of the musical instruments segment declined ¥14.1 billion, from ¥19.2 billion to ¥5.1 billion. In FY2010.3, factors reducing operating income included ¥10.4 billion due to foreign currency fluctuations, ¥2.2 billion due to losses on retirement severance benefit obligations, and ¥19.4 billion due to the decline in sales and production. These factors came to a total of ¥32.0 billion. On the other hand, factors increasing operating income included ¥1.3 billion owing to cost reductions in materials, ¥0.2 billion owing to newly consolidated subsidiaries, ¥1.4 billion improvement in profitability because of structural reforms implemented in the previous fiscal year, ¥7.3 billion because of the positive impact of increases in product prices, and ¥7.7 billion owing to a reduction in selling, general and administrative expenses. These factors contributing to improvement in operating income were unable to compensate for the factors reducing operating income, and, thus, Yam
