Please turn to slide five. I will now compare our second quarter result with our results of last years in more detail. Changes in the exchange rate had a negative impact on both net sales and operating profit. As for changes in sales volumes, the effect was positive compared with the second quarter last year’s period, which reflects the impact of the earthquake.
In the other categories, the negative figures under the net sales represent price declines. This negative figures and the operating profit represents price declines and the increases in expenses to expand sales. Through this effort we achieved net sales and operating profit growth reserving the impacts of the Yen’s appreciations.
Please refer to Slide 6. This slide shows our exchange rate assumptions and their estimated impact on projected net sales and operating profit for the remaining six months of this year.
Please turn to Slide 7. This slide highlights some key points regarding our revised projections. From July on we expect a situation of economic stagnation in Europe and a gradual recovery in Japan and in the United States to continue. In emerging market, we forecast a relatively high growth to continue, but at a slower pace. As a result, global economic growth will be related through gradual recovery. As for exchange rate, we expect the basic trend of Yen appreciation to persist for the time being.Under this outlook, marked by a business environment that is rapidly changing and becoming increasingly more challenging, we cautiously revised reference for the later half of this year. Even in this environment, we aim to expand our market shares leveraging our strong product competitiveness and maintaining the momentum we have recently generated. In line with this, we’ve also enhanced our profitability making further advancement in the areas of manufacturing by improving our production technologies. Through these measures, we’ve overcome the challenging situation to finally achieve sales and profit growth.