This is the waterfall chart for Y/Y changes in components of operating income.
On the far left, we show H1 FY2019 OP of ￥25.7 bn.
The negative impact of forex on added value was ￥5.5 bn. The decline in sales depressed added value by ￥12.5 bn. Despite this, we were able to improve the added value ratio Y/Y, for a positive contribution of ￥0.7 bn.
We reduced fixed costs by ￥17.1 bn in H1, through cuts to manufacturing fixed costs as well as substantial reductions to SG&A. On R&D spending, we reassessed the content of our plans, making dynamic adjustments. As a result, in H1 we achieved roughly 80% of our initial full-year target to reduce fixed costs by ￥20 bn.
We note that as indicated at the results briefing in July, we increased strategic investments, primarily for IT, by ￥0.7 bn.