Nihon Unisys : Notification of Revision to Full-Year Performance Forecast, Recording Allowance for Loss on Contract Development, Reversal of Deferred Tax Assets, and Revision to Dividend Forecast

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January 25, 2012
Company Name: Nihon Unisys, Ltd.
Representative: Shigeru Kurokawa, President & CEO Stock code: 8056
Stock listing: Tokyo Stock Exchange, First Section
For inquiries: Katsuhiro Ohtomo
General Manager
Corporate Communications

Nihon Unisys, Ltd. announced that in view of its recent business performance, it has revised the forecast of the consolidated performance results for the fiscal year ending March 2012 (from April 1, 2011 to March 31, 2012) that was announced on May 10, 2011 and disclosed the non-consolidated performance forecast for the same period. This announcement also notifies of recording allowance for loss on contract development, reversing deferred tax assets, and revising the dividend forecast.

1. Revision to Full-year Forecast
(1) Revision of Full-year Forecast for the FY2012 (From April 1, 2011 to March 31, 2012) Consolidated performance forecast

Non-consolidated performance forecast

(Note) The Company did not announce the non-consolidated performance forecast for the fiscal year ending March 2012. Therefore, it indicates the increase-decrease rate against the actual performance results of the previous fiscal year for a timely disclosure.

(2) Reasons for the Revision
A large-scale project is expected to generate losses due to postponing the cutover period. However, the impacts of recording the loss as allowance for loss on contract development have been outweighed by decreases in costs such as cost of sales and selling, general and administrative expenses. As a result, operating income and ordinary income for this period have not been changed since the forecast previously announced.
Net income is anticipated to be lower than the previous forecast. The downward revision is caused by reversing deferred tax assets in response to the promulgation of laws related to a decrease in corporate tax rate and due to the impacts of recording allowance for loss on contract development.
2. Recording Allowance for Loss on Contract Development
(1) Summary and Background
An increase in costs for a large-scale project is expected as a result of postponing the cutover period. In this regard, the estimated loss of 3.7 billion yen will be recorded in cost of sales as the provision of allowance for loss on contract
development for the third quarter of this fiscal year.
(2) Future Prospect
The arrangements for the relevant project will be further strengthened from February 1, 2012. Also, all the losses that are currently estimated through to the cutover period in future have been recorded in the form of the allowance for the third quarter for this fiscal year. Therefore, the future business results will not be impacted due to this matter. Please refer to "1. Revision of Full-year Forecast" for the full financial year performance forecast for the fiscal year ending March 2012.
3. Reversal of Deferred Tax Assets
(1) Summary and Background
Pursuant to the law to revise the income tax, etc., in order to construct a tax system addressing changes in the socio-economic structure and the act on special measures for securing financial resources necessary for
reconstruction from the Great East Japan Earthquake, both announced on December 2, 2011, the normal effective
statutory tax rate to be applied in and after the fiscal year ending March 2013 will be changed. As a result, deferred tax assets have been reversed. Furthermore, the deferred tax assets, which are not expected to be recovered due to the situation as described in "2. Recording Allowance for Loss on Contract Development", have also been reversed.
Thus, income taxes-deferred of 11.3 billion yen will be recorded in the consolidated financial statements for the third quarter of the fiscal year ending March 2012. Income taxes-deferred of 11.2 billion yen will be recorded in the
non-consolidated financial statements for the same term.
(2) Future Prospect
Please refer to "1. Revision of Full-year Forecast" for the full financial year performance forecast for the fiscal year ending March 2012.
4. Revision to Dividend Forecast
(1) Contents of the Revision

(2) Reason for the Revision
Recognizing that increasing corporate value is the most important return to its shareholders, the Company seeks to achieve a stable and continuous distribution of profits, with consideration of a gradual increase in dividends. This
approach is in line with a policy of paying dividends in accordance with its performance.
However, the Company regrets to announce that it has decided to change the previously forecasted dividend of 5.00 yen and not to pay year-end dividend, in view of the performance for this period.

(Note)

The above forecasts reflect the Company's judgments and assumptions based on the currently available information, and actual results could differ from the forecast for various reasons.

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