Financial Statements for the Fiscal Year ended March 31, 2003

Transcription

1 May 15, 2003 Financial Statements for the Fiscal Year ended March 31, 2003 Contents: Page Summary of Consolidated Results 1 Summary of Non-Consolidated Results 2 Subsidiaries & Affiliates 3 Operating Results & Financial Position 4-7 Consolidated Statements of Operations 8-9 Consolidated Balance Sheets Consolidated Statements of Capital Surplus and Retained Earnings 12 Consolidated Statements of Cash Flows 13 Breakdown of Consolidated Net Sales 14 Segment Information Non-Consolidated Statements of Operations Non-Consolidated Balance Sheets Notes; (1) Throughout this report, the term "the Company" is used to refer to Nichimen Corporation and its affiliates. (2) Both consolidated and non-consolidated financial statements have been prepared in accordance with the provisions set forth in the Securities and Exchange Law of Japan and in conformity with accounting principles and practices generally accepted in Japan, which may differ in some material respects and jurisdictions other than Japan. (3) This report is translation of the Financial Summary filed with Tokyo Stock Exchange by Nissho Iwai - Nichimen Holdings Corporation on May 15, 2003 for conveniences of investors outside of Japan. The original version of this report is written in Japanese. In case of any discrepancies between this report and the original, the Japanese version shall govern.

2 Summary of consolidated results for the fiscal year ended March 31, 2003 (*The accounting methods used in this report are not consistent with U.S. standard accounting methods) May 15, 2003 Nichimen Corporation 1. Results for the fiscal year ended March 31, 2003 ( April 1, 2002 to March 31, 2003) 1) Consolidated Operating Results Net sales Operating income Recurring profit For the year ended Millions of yen change(%) Millions of yen change(%) Millions of yen change(%) March 31, ,888,126 (8.1) 21,567 (34.8) 13,214 (50.7) March 31, ,055,240 (15.0) 33, , Net income EPS EPS(diluted) ROE For the year ended Millions of yen change(%) Yen (%) March 31, 2003 (48,532) - (114.14) - (86.9) March 31, , Equity in earnings of unconsolidated subsidiaries and affiliates for; (yen) the fiscal year ended March 31, 2003 (311) million the fiscal year ended March 31, 2002 (781) million Average number of shares for; the fiscal year ended March 31, ,192,371 shares the fiscal year ended March 31, ,954,891 shares Changes in accounting policies during the period: No (%) for net sales, operating income, recurring profit, and net income are expressed as an increase or decrease compared with the previous fiscal year 2)Assets and Shareholders' equity Total assets Shareholders' equity Shareholders' equity ratio Shareholders' equity per share For the year ended Millions of yen Millions of yen % Yen March 31, ,174,634 30, March 31, ,404,359 81, Number of shares issued at the end of; March ,806,636 shares March ,025,736 shares 3) Consolidated Cash Flows Cash flows from operating activities Cash flows from investing activities Cash flows from financing activities Cash and cash equivalents at the end of period For the year ended Millions of yen Millions of yen Millions of yen Millions of yen March 31, ,983 66,151 (119,442) 193,324 March 31, , ,141 (224,410) 178,682 4) Number of consolidated companies Consolidated subsidiaries : 163 Non-consolidated subsidiaries accounted for by equity method : 21 Affiliated companies accounted for by equity method : 108 5) Changes in status of consolidated companies and companies accounted for by equity method Newly consolidated : 11 Removed from consolidation : 23 Newly accounted for by equity method : 15 Removed from the equity method : 27 1

3 Summary of non-consolidated results for the fiscal year ended March 31, 2003 May 15, 2003 Nichimen Corporation 1. Results for the fiscal year ended March 31, 2003 ( April 1, 2002 to March 31, 2003) 1) Non-Consolidated Operating Results Net sales Operating income Recurring profit For the year ended Millions of yen change(%) Millions of yen change(%) Millions of yen change(%) March 31, ,327,335 (11.6) 9,697 (39.3) 9,633 (54.5) March 31, ,501,834 (14.3) 15, , Net income EPS EPS(diluted) ROE For the year ended Millions of yen change(%) Yen (%) March 31, 2003 (39,509) - (92.46) - (53.5) March 31, , Average number of shares for ; the fiscal year ended March 31, ,311,821 shares the fiscal year ended March 31, ,954,891 shares Changes in accounting policies during the period: No (%) for net sales, operating income, recurring profit, and net income are expressed as an increase or decrease compared with the previous fiscal year 2) Dividends Dividends per share total(full year) interim year-end Total amount of dividends Payout ratio(%) Dividends to shareholders' equity ratio For the year ended Yen Yen Yen Millions of yen % % March 31, March 31, ) Assets and Shareholders' equity Total assets Shareholders' equity Shareholders' equity ratio Shareholders' equity per share For the year ended Millions of yen Millions of yen % Yen March 31, ,603 55, March 31, ,086,160 92, Number of shares issued at the end of; March ,928,518 shares March ,025,736 shares Number of treasury shares at the end of; March ,582,661 shares March ,977,221 shares 2

4 Subsidiaries and Affiliates The list below shows the number of subsidiaries and affiliates and names of principal subsidiaries and affiliates in each business segment of the Company. As of March 31, 2003, the total number of subsidiaries and affiliates are 205 and 111 respectively. (* As of March 31, 2003, the listed subsidiary on the domestic stock exchanges are Pla Matels Corp. and Nakau Co., Ltd.) Industry Segment Major business areas / products Number of Principal Subsidiaries & Affiliates Companies Plastics Chemicals <Plastics> sub. domestic 16 Pla Matels Corp. (Japan) * Electronics materials 27 overseas 11 Pla -Net Holdings, Inc.(Japan) Film affi. domestic 9 Nissho Iwai Plastics Corp. (Japan) Compound 25 overseas 16 Chori Pla-Techno Co.,Ltd. (Japan) PP resin Nichimen Plastics (China) Ltd. (Hong Kong) <Chemicals> Agrochemical Nichimen Energy Company Limited. (Japan) Pharmaceutical chemical Global Chemical Holdings, Inc. Japan Arysta LifeScience Corporation (Japan) Textiles Apparels sub. domestic 7 Nichimen infinity Inc. (Japan) Fabrics and bedding 14 overseas 7 Nichimen Orient Wear Ltd. (Hong Kong) affi. domestic 1 8 overseas 7 Foodstuffs Imported grain sub. domestic 1 Granplex, Inc. (U.S.A) Confectionery 2 overseas 1 Yamazaki-Nabisco Co., Ltd. (Japan) Foodstuffs for convenience stores and affi. domestic 5 food-service restaurant 18 overseas 13 Construction <Construction> sub. domestic 9 Nichimen Real Estate Corp. (Japan) & Forest Products Condominium construction including 19 overseas 10 Suncrown Development, Inc. (U.S.A) planning and development businesses affi. domestic 4 NICOM Property Management Corp. (Japan) <Forest Products> 8 overseas 4 Imported round logs Nichimen Home Materials Corporation (Japan) Imported lumber Sun Building Materials Corp. (Japan) Tachikawa Forest Products (N.Z.) Ltd. (New Zealand) Machinery <Machinery> sub. domestic 23 Nichimen Machinery Corporation (Japan) & Metals Power & petrochemical plant 80 overseas 57 Fuji Machine MFG.,(Europe)GmbH. (Germany) Semiconductor facility related business affi. domestic 5 Nichimen Aviation Corp. (Japan) <Metals> 29 overseas 24 Nichimen Metals Co., Ltd. (Japan) Specialty steel Nichimen Jewelry Co., Ltd. (Japan) Precious metals Others Japanese style fast food chain, sub. domestic 19 Nakau Co., Ltd.(Japan) * (Consumer Business Dept. ) Internet-Infrastructure tools & services, 22 overseas 3 Nichimen Computer Systems Corp.(Japan) (IT Business Division) Satellite, Mobile, IP Network affi. domestic 2 Nichimen Business Support Corp. (Japan) (Corporate Division) Software development, 7 overseas 5 Nichimen Cash Management Corp.(Japan) Information processing services, Venture capital, Shared services to group companies Besides the above, both overseas and domestic trading subsidiary offices, such as Nichimen America Inc. (U.S.A), Nichimen Europe PLC(U.K.), and Nichimen Asia Oceania Pte. Ltd. (Singapore), engage in trading businesses and provide services in various fields making the most of their geographical features, strengths, and the group network. Overseas Trading Subsidiaries 52 Domestic Trading Subsidiaries 5 3

5 Operating Results and Financial Position Nichimen Corporation 1. Operating Results (1) Overview Despite positive signs in the overall economic environment, spurred by inventory adjustments from the beginning of the year, the U.S. economy remained soft during the fiscal year ended March 31, 2003, with little indication of a full-fledged recovery. European economies also exhibited mixed results with the modest recovery seen in the first half giving way to growing uncertainty and a slowdown in operating conditions in the second half. In Asia, on the other hand, led by China, which continued to show high growth, driven by strong domestic demand and an increase in exports, markets rebounded to record steady growth. Taiwan and Singapore, which had suffered negative growth in the previous year, returned a positive performance, while other ASEAN countries such as Indonesia, Malaysia, the Philippines, and Thailand, recorded increases in year-on-year growth, on the back of strong personal consumption. On the domestic front, from the nadir of early 2002, the Japanese economy showed modest signs of recovery. This however gave way to overall stagnant conditions reflecting anxieties over the future of global economies and the sharp deterioration in securities markets. Against the backdrop of such economic conditions, the Company enhanced reorganization of its business portfolios, underpinned by a policy of selection and concentration. Based on the reduction of inefficient and low-profit transactions and the transfer of non-strategic businesses, consolidated net sales for the fiscal year ended March 31, 2003, decreased 8.1% to 1,888,126 million. Examined by type of transaction, export sales decreased 17.8% year-on-year due mainly to sluggish sales of plastics and chemicals, and machinery and metals. Import sales declined 16.7% as a result of slow sales of machinery and metals, and textiles. Compared with the previous fiscal year, domestic sales climbed 63.9% and offshore sales dropped 67.6%, owing to a reclassification of petroleum-related transactions from offshore sales to 4

6 domestic sales. Examined by business segment, foodstuffs sales declined 19.6%, owing to a fall in offshore grain transactions. Sales of machinery and metals decreased 18.0% due to a fall in domestic sales resulting from withdrawal from inefficient and low-profit transactions. Textiles sales fell 12.5% due to lower import sales from slack domestic demand. Consolidated gross trading profit decreased 12.0% to 111,422 million, compounded by the adverse effects of selling the LP gas, petroleum and carbon businesses, as well as the transfer of the chemical business to an equity-method affiliate, and a decline in land sale transactions, which had boosted profits in the previous fiscal year. Selling, general and administrative (SG&A) expenses were reduced 3,643 million from the previous fiscal year, owing to a stringent review of costs Group-wide, despite an increase in transfers to reserves and the write off of doubtful receivables emerging from strict asset reassessment. Adversely affected by the fall in consolidated gross trading profit, operating income decreased 34.8% to 21,567 million. Consequently, recurring profit declined 50.7% to 13,214 million, owing in part to a decrease in interest income and the decline in operating income. The Company recorded a net extraordinary loss of 46,339 million. Prior to the establishment of Nissho Iwai - Nichimen Holdings Corporation, the Company concluded strict asset assessments and incurred 9,386 million in restructuring losses and 6,883 million in loss on disposal of investments in & provision for subsidiaries/affiliates, in order to achieve quick realization of management integration effects and to enhance management/financial flexibilities. Other extraordinary losses included 28,651 million in losses on investment securities and 1,815 million in expenses for employee early retirement benefit. As a result, consolidated loss before income taxes was 33,125 million. Minority interests in net income were 287 million, and income tax adjustments were 10,546 million from a decrease in deferred tax assets due to stricter asset valuation standards. Consequently, consolidated net loss after taxes and minority interests was 48,532 million. (2) Consolidated Results by Business Segment Plastics and Chemicals The purchase of Chori Co. Ltd. s plastic business by the consolidated subsidiary, Pla-Net 5

7 Holdings, Inc., contributed to earnings. However, net sales declined 2.7%, compared with the previous fiscal year, to 960,812 million, owing to the sale of the LP gas, petroleum and carbon businesses, as well as the transfer of the Company s chemical businesses to Global Chemical Holdings, Inc., an equity-method affiliate, in line with the alliance with Nissho Iwai Corporation in the chemical business field. Operating income dropped 31.5% to 4,848 million. Textiles Net sales decreased 12.5%, compared with the previous fiscal year to 159,553 million, and operating income declined 34.6% to 4,970 million, owing to a deceleration in import transactions for some apparel products due to slack domestic demand. Foodstuffs Net sales decreased 19.6%, compared with the previous fiscal year to 182,609 million, due to significant cutbacks of unprofitable offshore grain transactions. Operating income plummeted 83.3% to 332 million, owing to a fall in gross trading profit from profit deterioration in import grain transactions. Construction & Forest Products Despite continued strong performance in condominiums, net sales decreased 7.6% to 176,860 million, owing to a decline in land sale transactions, which had pushed up profits in the previous fiscal year. Operating income slipped 26.3% to 11,555 million. Machinery & Metals Net sales declined 18.0%, compared with the previous fiscal year, to 352,996 million due to a slowdown in some plant exports, slow sales of semiconductor manufacturing equipment, and continued efforts to withdrawal from inefficient and low-profit transactions such as domestic mild steel transactions. Operating income surged 89.1% to 2,358 million, owing to significant reductions in SG&A expenses. 6

8 Others Net sales rose 52.7%, compared with the previous fiscal year, to 55,296 million stemming from the purchase of Nakau Co., Ltd. by the Consumer Business Department, which was newly established to build new businesses for the retail industry and general consumers. Operating loss was 1,498 million, due to weakness in IT operations and at some subsidiaries. 2. Financial Position (1) Consolidated Balance Sheet Total assets as of March 31, 2003, decreased 229,725 million, compared with the previous fiscal year-end, to 1,174,634 million. Decreases in accounts receivables were mainly due to withdrawal from non-strategic businesses, in line with the strategy of selection and concentration. Decreases in inventories were mainly due to reduction in real estate for sales. Decreases in fixed assets were primarily due to write-offs of evaluation losses on investment securities, and stricter standards for deferred tax assets. In accordance with these asset reductions, interest-bearing debt decreased 131,367 million, compared with the previous fiscal year-end, to 889,336 million. Net interest-bearing debt (less cash and time deposits) was 694,140 million, a decrease of 149,458 million from the previous fiscal year-end. Shareholders equity declined 51,426 million to 30,109 million owing to considerable retained losses resulting from the posting of a net loss. (2) Consolidated Cash Flows Regarding cash flows for the fiscal year ended March 31, 2003, net cash inflow from operating activities was 70,983 million. Net cash inflow from investing activities was 66,151 million. Net cash outflow used in financing activities was 119,442 million due to reductions in interest-bearing debt. After adjustments for effects of changes from exchange rates and increases due to changes in the scope of consolidation, cash and cash equivalents at the end of the fiscal year stood at 193,324 million. 7

9 Consolidated Statements of Operations for the year ended March 31, 2003 and 2002 Millions of yen Mar-02 decrease Yen/$ Net sales 1,888,126 2,055,240 (167,114) 15,708 Cost of sales (1,776,704) (1,928,687) 151,983 (14,781) Gross trading profit 111, ,552 (15,130) 927 Gross trading profit margin 5.90% 6.16% Selling, general & administrative expenses (89,855) (93,498) 3,643 (748) Operating income 21,567 33,054 (11,487) 179 Interest income 9,164 16,055 (6,891) 76 Dividends 1,502 1, Other income 10,546 12,407 (1,861) 88 Non-operating income 21,213 29,910 (8,697) 176 Interest expenses (20,887) (26,363) 5,476 (174) Interest expenses on commercial papers (136) (403) 267 (1) Equity in losses of unconsolidated subsidiaries and affiliates-net (311) (781) 470 (3) Other expenses (8,231) (8,627) 396 (68) Non-operating expenses (29,565) (36,176) 6,611 (246) Recurring profit 13,214 26,788 (13,574) 110 Extraordinary income/loss-net(*) (46,339) (17,584) (28,755) (386) Income before income taxes (33,125) 9,203 (42,328) (276) Income taxes; Current (4,573) (7,635) 3,062 (38) Deferred (10,546) 218 (10,764) (88) Minority interests in net income (287) (446) 159 (2) Net Income (48,532) 1,340 (49,872) (404) (*) refer to p.9 for the breakdown of extraordinary income and loss 8

10 Breakdown of Consolidated Extraordinary Income and Loss for the year ended March 31, 2003 and 2002 Millions of Yen Mar-02 (Extraordinary Income) Gain on property & equipment 109 2,305 Gain on sale of investment securities 1,302 7,219 Gain on transfer of business 3,086 17,913 Total extraordinary income 4,497 27,438 (Extraordinary Loss) Loss on property & equipment (1,312) (3,841) Loss on sale of investment securities (2,788) (4,248) Evaluation loss on investment securities & investments other than securities (28,651) (33,383) Loss on disposal of investments in & provision for subsidiaries & affiliates (6,883) (1,397) Restructuring loss (9,386) - Expenses for employee early retirement benefit (1,815) (2,151) Total extraordinary loss (50,837) (45,022) Extraordinary income/loss-net (46,339) (17,584) Reference: the following accounts are not included in the above extraordinary items. Millions of Yen Mar-02 Provision for doubtful receivables (1,844) (652) (Included in Selling, general & administrative expenses) Gain on marketable securities-net (641) 121 (Included in Non-operating income & expenses) 9

11 Consolidated Balance Sheets March 31, 2003 and March 31, 2002 Assets Millions of yen Mar-02 decrease Yen/$ Current assets; Cash & time deposits 195, ,105 18,091 1,624 Trade notes & trade accounts receivables 318, ,350 (67,233) 2,647 Marketable securities 11,267 30,058 (18,791) 94 Inventories 107, ,441 (32,361) 891 Deferred tax assets-current 4,028 4,712 (684) 34 Other current assets 90, ,234 (23,679) 753 Allowance for doubtful receivables (3,192) (2,869) (323) (27) Total current assets 723, ,032 (124,979) 6,015 Fixed assets; Tangible assets 187, ,899 (1,967) 1,563 Intangible assets; Goodwill 16,297 16,974 (677) 136 Other intangible assets 4,956 4, Total intangible assets 21,254 21,678 (424) 177 Investments & other fixed assets; Investment securities 126, ,301 (68,062) 1,050 Long-term loans 43,316 49,028 (5,712) 360 Deferred tax assets-non-current 29,894 42,720 (12,826) 249 Deferred tax assets-revaluation 2,007 2,058 (51) 17 Others 97, ,602 (25,078) 811 Allowance for doubtful receivables (56,645) (66,260) 9,615 (471) Total investments & other fixed assets 242, ,450 (102,115) 2,016 Total fixed assets 451, ,027 (104,506) 3,756 Long term deferred assets; (240) 0 Total assets 1,174,634 1,404,359 (229,725) 9,772 10

12 Consolidated Balance Sheets March 31, 2003 and March 31, 2002 Liabilities & shareholders' equity Millions of yen decrease Yen/$ Mar-02 Liabilities Current Liabilities; Trade notes & trade accounts payables 177, ,675 (47,115) 1,477 Short-term borrowings from banks 525, ,238 26,566 4,374 Commercial paper 2, , Bonds - current portion 40,500 53,048 (12,548) 337 Deferred tax liabilities-current (27) 0 Allowance for restructuring loss 4, , Other current liabilities 49,707 48, Total current liabilities 800, ,781 (25,499) 6,658 Long-term liabilities; Bonds, less current portion 41,659 86,771 (45,112) 347 Long-term borrowings from banks 279, ,646 (102,573) 2,322 Allowance for retirement benefits 8,332 6,025 2, Deferred tax liabilities - non-current 4,010 3, Other long-term liabilities 4,178 4,496 (318) 35 Total long-term liabilities 337, ,618 (145,364) 2,806 Total liabilities 1,137,537 1,308,399 (170,862) 9,464 Minority interest 6,987 14,424 (7,437) 58 Shareholders' equity Common stock 52,179 52, Capital Surplus 49,325 48,140 1, Retained earnings (39,660) 9,655 (49,315) (330) Land revaluation deifference (6,096) (6,534) 438 (51) Unrealized loss on other securities (6,726) (8,466) 1,740 (56) Foreign currency translation adjustments (17,868) (12,495) (5,373) (149) Treasury stock (1,043) (942) (101) (9) Total shareholders' equity 30,109 81,535 (51,426) 250 Total 1,174,634 1,404,359 (229,725) 9,772 Reference: Contingent liabilities Millions of yen Mar-02 decrease Guarantee or indebtedness 35,518 47,441 (11,923) 295 Repurchase of notes discounted and endorsed 35,029 21,905 13,

13 Consolidated Statements of Capital Surplus and Retained Earnings for the year ended March 31, 2003 Yen/$ Millions of yen Capital Surplus Consolidated balance at the beginning of the period 48, Increase; New issue of stocks by share exchange 1, Total 1, Decrease; Loss on desposals of treasury stock (106) (1) Total (106) (1) Consolidated balance at the end of the period 49, Retained Earnings Consolidated balance at the beginning of the period 9, Decrease; Net loss (48,532) (404) Bonuses to directors (61) (1) Effect from changes of consolidated subsidiaries and affiliates (30) (0) accounted for by use of the equity method Adjustments in land revaluation difference (492) (4) Minimum pension liability adjustments (198) (2) Total (49,315) (410) Consolidated balance at the end of the period (39,660) (330) 12

14 Consolidated Statements of Cash Flows for the year ended March 31, 2003 and 2002 Millions of yen Mar-02 decrease Yen/$ Operating activities Income from consolidated operations before income taxes (33,125) 9,203 (42,328) (276) Depreciation and amortization 7,888 8,333 (445) 66 Write-down of investment securities 28,651 33,383 (4,732) 238 Income from transfer of business (3,086) (17,913) 14,827 (26) Change in provision for doubtful receivables (4,063) (12,398) 8,335 (34) Change in allowanace for restructuring loss 4,392-4, Interest income & dividend (10,667) (17,502) 6,835 (89) Interest expense 21,023 26,767 (5,744) 175 Equity in earnings of affiliated companies (470) 3 Gain on marketable securities - net 2,128 (3,185) 5, Gain on property & equipment (109) (2,306) 2,197 (1) Change in notes and account receivable-trade 72, ,630 (33,152) 603 Change in inventories 31,186 (110) 31, Change in notes & account payable-trade (41,733) (42,909) 1,176 (347) Others-net (4,291) (17,236) 12,945 (36) Net cash provided by operating activities 70,983 70, Investing Activities Change in time deposit 2,152 (1,677) 3, Change in marketable securities 10,980 43,112 (32,132) 91 Payments for purchase of property & equipment (7,717) (7,738) 21 (64) Proceeds from sale of property & equipment 4,575 41,088 (36,513) 38 Payments for purchase of investment securities (41,344) (47,505) 6,161 (344) Proceeds from sale of investment securities 70,793 67,385 3, Change in short-term loans -net 10,774 (11,524) 22, Increase of long-term loans (3,260) (7,278) 4,018 (27) Collection of long-term loans 5,638 26,382 (20,744) 47 Others - net 13,558 19,896 (6,338) 113 Net cash provided by investing activities 66, ,141 (55,990) 550. Financing activities Change in short-term borrowings - net (297) (61,090) 60,793 (2) Change in commercial paper 2,300 (51,500) 53, Proceeds from long-term borrowings 137, ,892 (30,303) 1,145 Repayment of long-term borrowings (201,587) (249,252) 47,665 (1,677) Redemption of bonds (57,348) (31,392) (25,956) (477) Others-net (99) 932 (1,031) (1) Net cash used in financing activities (119,442) (224,410) 104,968 (994). Effect of Exchange rates change on cash & cash equivalents (2,919) 5,564 (8,483) (24). Net increase(decrease) in cash & cash equivalents 14,772 (26,167) 40, Cash & cash equivalents at the beginning of the period 178, ,826 (26,144) 1,487. Cash & cash equivalents of newly consolidated subsidiaries (130) 23 (153) (1). Cash & Cash equivalents at the end of the period 193, ,682 14,642 1,608 13

15 Breakdown of Consolidated Net Sales for the year ended March 31, 2003 and 2002 Net sales by type of transactions Millions of yen % Mar-02 % decrease Yen/$ Export 176, % 214, % (38,028) 1,465 Import 266, % 320, % (53,661) 2,221 Domestic 1,187, % 724, % 463,020 9,877 Overseas 257, % 796, % (538,445) 2,145 Total 1,888, % 2,055, % (167,114) 15,708 Net Sales by business segment Millions of yen % Mar-02 % decrease Yen/$ Plastics & Chemicals 960, % 987, % (26,782) 7,993 Textiles 159, % 182, % (22,723) 1,327 Foodstuffs 182, % 227, % (44,416) 1,519 Construction & Forest products 176, % 191, % (14,543) 1,471 Machinery & Metals 352, % 430, % (77,728) 2,937 Others 55, % 36, % 19, Total 1,888, % 2,055, % (167,114) 15,708 14

16 Segment Information for the year ended March 31, 2003 and 2002 Business Segments Yen/$ ( Yen : mil) ($ : mil) Mar-02 decrease (Plastics & Chemicals) Net sales 962, ,483 (29,918) 8,008 Operating income 4,848 7,074 (2,226) 40 Total assets 245, ,859 (65,138) 2,044 (Textiles) Net sales 159, ,294 (22,673) 1,328 Operating income 4,970 7,599 (2,629) 41 Total assets 98, ,608 (10,825) 822 (Foodstuffs) Net sales 184, ,751 (51,878) 1,538 Operating income 332 1,986 (1,654) 3 Total assets 41,169 48,488 (7,319) 343 (Construction & Forest Products) Net sales 177, ,665 (14,624) 1,473 Operating income 11,555 15,678 (4,123) 96 Total assets 213, ,115 (5,324) 1,779 (Machinery & Metals) Net sales 354, ,979 (80,533) 2,949 Operating income 2,358 1,247 1, Total assets 265, ,994 (81,886) 2,206 (Others) Net sales 56,470 36,220 20, Operating income (1,498) 81 (1,579) (12) Total assets 97,276 80,459 16, (Total) Net sales 1,895,016 2,074,392 (179,376) 15,766 Operating income 22,565 33,665 (11,100) 188 Total assets 961,848 1,115,523 (153,675) 8,002 (Elimination) Net sales (6,890) (19,152) 12,262 (57) Operating income (998) (611) (387) (8) Total assets 212, ,836 (76,050) 1,770 (Consolidated) Net sales 1,888,126 2,055,240 (167,114) 15,708 Operating income 21,567 33,054 (11,487) 179 Total assets 1,174,634 1,404,359 (229,725) 9,772 15

17 Segment Information for the year ended March 31, 2003 and 2002 Geographic Segments Yen/$ ( Yen : mil) ($ : mil) Mar-02 decrease (Japan) Net sales 1,733,076 1,886,204 (153,128) 14,418 Operating income 20,575 32,559 (11,984) 171 Total assets 912,562 1,059,495 (146,933) 7,592 (North & South America) Net sales 106, ,574 (22,013) 887 Operating income (330) 449 (779) (3) Total assets 69,726 83,680 (13,954) 580 (Europe, Africa & Middle East) Net sales 43,676 46,549 (2,873) 363 Operating income (219) 4 Total assets 34,132 34, (Asia) Net sales 94, ,580 (17,631) 790 Operating income 1, Total assets 44,070 36,969 7, (Oceania) Net sales 11,588 14,654 (3,066) 96 Operating income (15) 10 (25) (0) Total assets 1,101 1,272 (171) 9 (Total) Net sales 1,989,850 2,188,561 (198,711) 16,554 Operating income 22,265 34,372 (12,107) 185 Total assets 1,061,591 1,215,524 (153,933) 8,832 (Elimination) Net sales (101,724) (133,321) 31,597 (846) Operating income (698) (1,318) 620 (6) Total assets 113, ,835 (75,792) 940 (Consolidated) Net sales 1,888,126 2,055,240 (167,114) 15,708 Operating income 21,567 33,054 (11,487) 179 Total assets 1,174,634 1,404,359 (229,725) 9,772 16

18 Non-Consolidated Statements of Operations for the year ended March 31, 2003 and 2002 Millions of yen Mar-02 decrease Yen/$ Net sales 1,327,335 1,501,834 (174,499) 11,043 Cost of sales (1,285,880) (1,456,225) 170,345 (10,698) Gross trading profit 41,455 45,608 (4,153) 345 Gross trading profit margin 3.12% 3.04% Selling, general & administrative expenses (31,757) (29,632) (2,125) (264) Operating income 9,697 15,976 (6,279) 81 Interest income 4,632 6,634 (2,002) 39 Dividends 9,431 8, Other income 7,133 9,463 (2,330) 59 Non-operating income 21,197 24,807 (3,610) 176 Interest expenses (14,334) (14,022) (312) (119) Interest expenses on commercial papers (136) (403) 267 (1) Other expenses (6,792) (5,178) (1,614) (57) Non-operating expenses (21,262) (19,604) (1,658) (177) Recurring profit 9,633 21,179 (11,546) 80 Extraordinary income(*) 7,903 23,571 (15,668) 66 Extraordinary loss(*) (47,491) (42,815) (4,676) (395) Income before income taxes (29,954) 1,934 (31,888) (249) Income taxes; Current (476) (309) (167) (4) Deferred (9,077) (492) (8,585) (76) Net Income (39,509) 1,132 (40,641) (329) (*) refer to p.18 for the breakdown of extraordinary income and loss 17

19 Breakdown of Non-consolidated Extraordinary Income and Loss for the year ended March 31, 2003 and 2002 Millions of Yen Mar-02 (Extraordinary Income) Gain on property & equipment 43 1,087 Gain on sale of investments in subsidiaries & affiliates - 8,597 Gain on sale of investment securities 885 2,192 Gain on transfer of business 6,974 11,694 Total extraordinary Income 7,903 23,571 (Extraordinary Loss) Loss on property & equipment (810) (182) Loss on sale of investment securities (2,507) (4,113) Evaluation loss on investment securities & investments other than securities (27,429) (32,462) Loss on disposal of investments in & provision for subsidiaries & affiliates (10,930) (4,802) Restructuring loss (4,092) - Expenses for employee early retirement benefit (1,720) (1,253) Total extraordinary Loss (47,491) (42,815) Extraordinary income/loss-net (39,587) (19,244) Reference: the following account is not included in the above extraordinary items. Millions of Yen Mar-02 Provision for doubtful receivables (1,387) (247) (Included in Selling, general & administrative expenses) 18

20 Non-Consolidated Balance Sheets March 31, 2003 and March 31, 2002 Assets Millions of yen Mar-02 decrease Yen/$ Current assets; Cash & time deposits 131, ,520 11,933 1,094 Trade notes receivables 46,164 57,792 (11,628) 384 Trade accounts receivables 135, ,731 (52,172) 1,128 Marketable securities 430 5,198 (4,768) 4 Inventories 81, ,166 (26,970) 676 Advances paid 8,940 10,440 (1,500) 74 Deferred tax assets-current 2,449 2,726 (277) 20 Short-term loans 71,401 76,701 (5,300) 594 Other current assets 21,361 23,380 (2,019) 178 Allowance for doubtful receivables (1,483) (1,634) 151 (12) Total current assets 497, ,023 (92,550) 4,139 Fixed assets; Tangible assets 69,073 69,456 (383) 575 Intangible assets 2,036 1, Investments & other fixed assets; Investment securities 232, ,703 (27,497) 1,932 Long-term loans 79,887 82,774 (2,887) 665 Deferred tax assets-non-current 26,915 38,637 (11,722) 224 Others 88, ,701 (20,229) 736 Allowance for doubtful receivables (59,518) (65,163) 5,645 (495) Total investments & other fixed assets 367, ,654 (56,691) 3,061 Total fixed assets 439, ,855 (56,782) 3,653 Long term deferred assets; (226) 0 Total assets 936,603 1,086,160 (149,557) 7,792 19

21 Non-Consolidated Balance Sheets March 31, 2003 and March 31, 2002 Liabilities & shareholders' equity Millions of yen decrease Yen/$ Mar-02 Liabilities Current Liabilities; Trade notes payables 24,786 36,186 (11,400) 206 Trade accounts payables 88, ,162 (31,325) 739 Short-term borrowings from banks 357, ,575 15,729 2,973 Commercial paper 7, , Bonds - current portion 39,976 49,800 (9,824) 333 Advances received 9,667 5,878 3, Reserve for bonuses (493) 1 Other current liabilities 37,137 34,777 2, Total current liabilities 565, ,000 (23,864) 4,702 Long-term liabilities; Bonds, less current portion 40,900 84,876 (43,976) 340 Long-term borrowings from banks 267, ,279 (46,750) 2,226 Allowance for retirement benefits 6,797 4,714 2, Other long-term liabilities 594 1,142 (548) 5 Total long-term liabilities 315, ,012 (89,191) 2,627 Total liabilities 880, ,013 (113,055) 7,329 Shareholders' equity Common stock 52,179 52, Capital Surplus 49,561 48,140 1, Retained earnings (38,569) 813 (39,382) (321) Unrealized loss on other securities (6,730) (8,043) 1,313 (56) Treasury stock (795) (942) 147 (7) Total shareholders' equity 55,645 92,147 (36,502) 463 Total 936,603 1,086,160 (149,557) 7,792 Reference: Contingent liabilities Millions of yen Mar-02 decrease Guarantee or indebtedness 151, ,789 (43,938) 1,263 Repurchase of notes discounted and endorsed 15,168 14,