In the light of our recent business performance, we have revised our business performance forecasts for fiscal 2008 (from January 1 to December 31, 2008) which we announced on February 13, 2008 together with our account settlements for fiscal 2007. The revised figures are shown below.

Consolidated

1. Forecasts of business performance for the fiscal 2008 full term
(January 1 to December 31, 2008)

2. Forecasts of business performance for the first half of fiscal 2008
(January 1 to June 30, 2008)

Non-consolidated

1. Forecasts of business performance for the fiscal 2008 full term
(January 1 to December 31, 2008)

2. Forecasts of business performance for the first half of fiscal 2008
(January 1 to June 30, 2008)

*Net loss per share



Reasons for the Revisions

Although gas sales volume is now expected to fall slightly short of the original projections, upward revisions of gas unit selling prices under the current system for offsetting rises in raw material costs have surpassed the initial forecasts, and net sales are predicted to exceed the previously forecast figure.
Meanwhile, as the price of crude oil is now trending at a substantially higher level than the initial forecast, the cost of raw materials procured is projected to record a sharp increase, particularly in the second half of the term.
As the rise in unit gas selling prices corresponding to the expected rise in the price of raw materials in the second half of the term will be delayed until the next term for the most part, declines on a year-on-year comparison are forecast in operating income, ordinary income, and net income on both a consolidated and non-consolidated basis.
 

First-half business performance forecasts

Although crude oil prices for the first half of the current term thus far have exceeded our initial projections, the effect of this factor on raw material prices has been partially offset by the strength of the yen on the foreign exchange market, as a result of which figures posted under operating income, ordinary income, and net income are expected to improve compared with the previous forecasts on both a consolidated and non-consolidated basis.
 

Reference: Forecasts of oil prices and the yen's exchange rate

Disclaimer: The above forecasts are based on information available to the management as of the time of writing. Accordingly, actual business performance figures may differ substantially from these forecasts owing to a number of unforeseeable factors.