I. Consolidated Results

 The breakdown of the 21.9 billion yen difference in operating income between fiscal 2000 and fiscal 2001 is shown above.

 We were unable to offset the increase in fixed costs caused by the dramatic fall in sales volume of bearings and precision machinery with the cutbacks in capital expenditure, factory cost cutting measures such as the reduction of contract workers, and improved profitability of exports due to the weaker yen. As a result, operating income of both the parent company and domestic subsidiaries fell dramatically. Profitability in the Americas, Europe and Asia also deteriorated.