In the light of our recent business performance, we have revised the forecasts of our business performance for fiscal 2007, (from January 1 to December 31, 2007) which we announced on February 14, 2007 together with our account settlements for fiscal 2006. The current estimates are shown below.
 

Consolidated

1. Forecasts of business performance for the first half of fiscal 2007
(i.e. the six-month period from Jan. 1 to June 30, 2007)
on a consolidated basis

(¥Million, %)

2. Forecasts of business performance for the fiscal 2007 full term
(i.e. the twelve-month period from Jan. 1 to Dec. 31, 2007)
on a consolidated basis

Non-consolidated

1. Forecasts of business performance for the first half of fiscal 2007
(i.e. the six-month period from Jan. 1 to June 30, 2007)
on a non-consolidated basis

(¥Million, %)

2. Forecasts of business performance for the fiscal 2007 full term
(i.e. the twelve-month period from Jan. 1 to Dec. 31, 2007)
on a non-consolidated basis

Reasons for the Revisions

Strong growth in sales volume to large-lot customers (exceeding our original forecasts) has been more than offset by sluggish growth in the volume of sales to small-lot customers owing to comparatively warm climate in this winter. As a result, total sales are now expected to fall below our initial forecasts. Additionally, despite considerable efforts to cut costs, the Company is expected to experience an increase in overall expenses as a result of the continuing high price of crude oil and upward revisions of the LNG pricing formula, as well as costs occurred from the adoption of the new accounting policy for depreciation. The consequence of this is that both ordinary income and net income, on both a consolidated and non-consolidated basis, are projected to fall short of the initial forecasts.

Disclaimer: The above forecasts are based on information currently available to the management. Accordingly, actual financial results may substantially differ from these forecasts owing to a number of uncertain factors.