Questions and Answers at the Conference Call (August 06, 2014)

Q1: What were your forecasts for net sales and operating income for the first quarter?

A1: We do not disclose quarterly forecasts of net sales and operating income. However, from our experience, the first quarter tends to have a slow start. In the first half, the second quarter accounts for a relatively larger percentage of net sales and operating income.

Q2: Analysis of the factors of operating income change shows that improvement in the cost of sales ratio has boosted operating income by one billion yen. What are the principal factors driving down the cost of sales?

A2: Rising ratio of overseas production is the primary reason. We are promoting further reduction of the cost of sales by increasing overseas production ratio utilizing our expanded production facilities in China and the Philippines.

Q3: GLORY’s “Long-Range Vision 2018” envisions net sales of 260 billion yen in fiscal 2018. Which business segments do you think will grow?

A3: Up to fiscal 2018, that is, for the next four years, we expect the Overseas Market segment to show the highest growth.