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Net non-operating income and expenses increased 3.4 billion yen on a year on year basis.
We gained 1.3 billion yen on equity in earnings of affiliates such as our Chinese subsidiaries, etc..
Financial revenue and expenditures rose 0.3 billion yen above the previous year’s balance.
Foreign exchange fluctuations had a significant impact on non-operating income and expenses mainly in the following two areas: (1) gains and losses on revaluation of derivatives, and (2) foreign exchange gains and losses, resulting in a gain of 1.3 billion yen.
Net of gain and loss on valuation of derivatives were up 4.0 billion yen year on year to generate a gain of 4.0 billion yen.
Net of foreign exchange gains and losses decreased 2.7 billion yen year on year. This figure includes a year on year decrease of 2.4 billion yen due to the difference between market and hedge rates as well as a year on year decrease of 0.3 billion yen due to the foreign exchange adjustments between FHI and overseas subsidiaries.