The AIFUL Group's consolidated operating revenue for the first half of fiscal year 2011 fell 27.1% compared with corresponding period of the previous fiscal year to 59,102 million yen. The principal components and their movements were interest on loans, which contracted 31.8% year on year to 40,468 million yen, revenue from the credit card business, which declined 17.7% to 5,487 million yen and revenue from the credit guarantee business, which decreased 19.4% to 2,455 million yen. Also, the collection of purchased receivables climbed 2.8% to 1,919 million yen and the recovery of loans previously charged off declined 12.9% to 5,853 million yen.
Operating expenses fell 34.5% compared with corresponding period of previous fiscal year to 49,686 million yen. After accounting a provision for doubtful accounts of 17,172 million yen, down 34.7% year on year, general administrative expenses including personnel expenses fell 21.1% year on year to 25,940 million yen which was primarily attributable to successful efforts to reform the Group's cost structure as a part of the Group's management rationalization strategy.
As a result, the AIFUL Group's consolidated operating income for the first half of fiscal year 2011 was 9,416 million yen (up 81.0% year-on-year) and ordinary income amounted to 8,554 million yen (up 107.1% year-on-year), while net income totaled 11,148 (up 227.8% year-on-year) million yen.

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Q2

Please give us an consolidated outlook for the FY2011.

A2

The operating environment of the consumer finance industry is currently riddled with uncertainty. Besides the market contraction caused by the Money Lending Business Act, there are also other destabilizing factors, such as the changes in the market environment caused by industrial restructuring and the persistently high level of claims for interest repayment. Recognizing the difficulty in ascertaining a reasonable forecast amid this current uncertainty, the AIFUL Group is not currently in a position to determine a consolidated forecast for fiscal 2011 (period from April 1, 2011 to March 31, 2012). In the event that AIFUL is in a position to disclose its earnings forecast, it undertakes to do so in a timely manner.

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