Non-Consolidated Financial Results for the six-month period ended October 31, 2001 (Figures are rounded down to million yen.)

Transcription

1 ITO EN, LTD. Non-Consolidated Financial Results for the six-month period ended October 3, 200 December 4, 200 ITO EN, LTD. (Securities number: 2593) 47-0 Honmachi 3-chome Shibuya-ku, Tokyo Contact: Minoru Watanabe Managing Director Phone: (8) For immediate Release. Date of the Board of Directors' Meeting for the semi-annual results held: December 4, Date of the interim dividends payable: January 5, For information purpose: The prevailing exchange rate as of October 3, 200 is 22.0US$.00. () Results of operations (May, October 3, 200) Net sales Percentage Operating change income Percentage change Ordinary income 07, % 8, % 8,206 0, % 8, % 7,822 90,242 5,85 4,598 Percentage change +4.9% +9.8% Net income Percentage Net income change per share Yen 4,02-7.4% , % , Notes:. Average number of shares issued0/200 45,606,07., 0/2000: 45,606,90., 4/200: 45,606, There is no change in an accounting policy in this period. 3. Percentage figures represent fluctuation from the previous period ended October 3, (2) Cash dividends Interim dividends Year-end dividends per share Yen per share Yen (3) Financial position assets 88,920 89,762 9,539 Stockholders' equity Stockholders' equity ratio 50, % 44, % 47,49 5.9% Stockholders' equity per share Yen, ,04.33 Notes: Number of common stock issued is as below 45,606,042 45,606,90 Common stock with par value is traded in the unit of 00 shares. Number of treasury stock as of October 3, 200 is ,606,90 4. Projected non-consolidated business results for the year ending April 30, /30/2002 Net sales 207,500 Ordinary income Net income 5,900 8,300 (May, 200April 30, 2002) Dividends Interim Year-end Yen Yen Reference:. Projected net income par share for the year ending 4/30/2002 is 8.99 yen. 2. Projected operating income for the year ending 4/30/2002 is 6,500 million yen.

2 Breakdown of sales by segment as of October 3, 200, 2000, and April 30, 200. SEGMENT Tea leaves: Green tea leaves Oolong tea leaves Beverages: Japanese tea Chinese tea Vegetable Fruit Coffee Black tea Carbonated products products Merchandise net sales 0,226,057,906 3,90 48,400 9,557 5,844 5,048 7,042 2,620,66 2,576 92, , ,393 0,44,05,620 3,4 43,0 0,72 5,755 5,485 6,040 2,9,80 2,383 86,868,27 0, 58 0,629 Note: From the period ended October 3, 2000, expressions of 'Green tea' and 'Oolong tea' in beverage segment have been changed to 'Japanese tea' and 'Chinese tea', respectively. 23,438,972 2,624 28,035 78,07 7,257 28,099 9,005 3,36 4,335 2,427 6,523 59,073 2,08 89,27,5 90,242

3 Non-Consolidated Balance Sheets (Unaudited) as of October 3, 200, 2000, and April 30, 200 ASSETS Current assets: Cash and deposits 2,255,434 5,56 2 Notes receivable-trade,677 2,803 2,03 3 Accounts receivable-trade 6,424 4,807 4,04 4 Treasury stock 5 Inventories 6,06 6,7 6,806 6 Deferred income taxes, Advances to suppliers (*2) 5,64 7,633 6,504 8,90,420,489 9 Allowance for doubtful accounts (60) (59) (56) 54,4 55,647 57,93 Fixed Assets: Property, plant and equipment; (*) Buildings Land 9,575 7,753 8,453 7,749 8,530 7,753 Intangible assets; Software,334 8, ,97 8, ,360 8, Investments and other assets; Investments in securities,836 2,682 2,305 2 Investments in affiliates 4,547 3,703 3,703 3 Deferred income taxes 954,5,035 4 Deferred income taxes related to revaluated land 2,79 2,79 2,79 5 5,82 5,653 5,785 6 Allowance for doubtful accounts (92) (48) (77) 5,37 5,286 4,932 assets 34,508 88,920 34,4 89,762 34,346 9,539

4 Non-Consolidated Balance SheetsContinued (Unaudited) as of October 3, 200, 2000, and April 30, 200. LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable 2 Short-term borrowings 3 Income taxes payable 4 Accrued expenses 5 Accrued bonuses 6 Non-current liabilities: Long-term debt 2 Retirement and severance benefits for employees 3 Retirement and severance benefits for directors and statutory corporate auditors 4 liabilities 4,200 8,909 9,434,652,240,90 3,372 3,92 3,777 6,326 5,725 5,757 2,38 2,385,939, ,062 33,077 33,079 6,753,36, ,92 38,255 8,305 2,305,0 26 8,255,55,34 28,738 0,969 44,86 44,048 Common stock Additional paid-in capital Legal reserve Land revaluation, net of deferred tax assets Retained earnings: General reserve Unappropriated retained earnings Unrealized gains (losses) on investments in marketable securities stockholders' equity liabilities and stockholders' equity 2,655 2,655 2,655 3,002 3,002 3,002,320,30,20 (3,034) (3,034) (3,034) 20,5 4,896 4,896 6,8 6,279 8,922 26, ,665 88,920 2, ,945 89,762 23,89 (6) 47,49 9,539

5 Non-Consolidated Statements of Income (Unaudited) for the six-month periods ended October 3, 200, 2000, and for the period ended April 30, 200 Operating income and expenses: Net sales Cost of sales (*4) Gross profit Selling, general and administrative expenses (*4) 07,393 0,629 54,359 5,843 90,242 97,292 53,034 49,785 92,950 44,576 4,779 77,764 Operating income Non-operating income and expenses: Non-operating income (*) 8, , , Non-operating expenses (*2) Ordinary income Special gains and losses: Special gains 8,206 7, ,598 2 Special losses (*3), Income before income and enterprise taxes Income taxes and enterprise taxes-current Income taxes and enterprise taxes-deferred Net income Retained earnings brought forward Interim dividends Transfer of retained earnings to legal reserve related to interim dividends Unappropriated retained earnings 6,875 7,753 4,43 3,99 3,838 6,66 (337) (47) (00) 4,02 2,05 6,8 4,332,947 6,279 7,852, ,922

6 Non-Consolidated Statements of Cash Flows for the six-month periods ended October 3, 200, 2000, and the period ended April 30, 200 Cash flows from operating activities: Income before income and enterprise taxes for the period Depreciation and amortization Gain on foreign currency translation Loss on disposal of fixed assets Loss on devaluation of investments in securities Loss on sales of equity securities Loss on devaluation of golf memberships Loss on sales of golf memberships Allowance for doubtful accounts Accrued bonuses Retirement and severance benefits for employees Retirement and severance benefits for directors and statutory corporate auditors Interests and dividends receivable Interest expenses Bonuses paid to directors Increase in notes and accounts receivable-trade Decrease (increase) in inventories Decrease (increase) in other current assets Decrease (increase) in other non-current assets Decrease (increase) in notes and accounts payable Increase (decrease) in consumption tax payable Increase in other current liabilities Decrease (increase) in other non-current liabilities Interests and dividends income received Interests expenses paid Income taxes paid Net Cash provided by (used in) operating activities 6,875 7,753 4, ,02 (0) , (234) (28) (783) (49) 3 64 (63) (72) (04) (66) (62) (62) (,956) (4,08) (2,552) 790 (4,382) (4,478),47 (2,623) (,62) 95 (64) (207) (5,234) 4,252 4, (53) 432 (20) 56 (2) 2 4,57 2,42, (8) (00) (72) (3,603) (2,90) (5,868) 895 (57) 5,536 Cash flows from investing activities: Acquisition of equity in securities Sales of equity securities Acquisition of fixed assets, and long-term prepaid expenses Sales of fixed assets, and long-term prepaid expenses Acquisition of investments in affiliates Long-term loans Collection of loans to affiliates Acquisition of golf memberships Sales of golf memberships Net cash used in investing activities (207) (6) (8) 2 (630) (784) (,98) 23 (843) (47) (47) (4) (2) (9) (29) (202) (75) (75) 2 (2,088) (,004) (2,088) Cash flows from financing activities Net decrease in short-term borrowings Repayment of long term debt Dividends paid Net cash used in financing activities (50) (450) (990) (2,090) (,026) (798) (2,066) (3,337) (500) (2,40) (,596) (4,237) Effect of exchange rate fluctuation on cash and cash equivalents Net decrease in cash and cash equivalents Cash and cash equivalents at beginning of period Cash and cash equivalents at end of period () 0 (3,26) (4,860) (778) 5,56 6,294 6,294 2,255,434 5,56 Note: The statement above is based on the Japanese standard for preparation of non-consolidated statements of cash flow.

7 Notes to financial statements. Significant accounting policies A. ()Marketable, and investments in securities Securities of subsidiaries and one affiliated company are stated at cost determined by the moving average method. Securities with market value other than securities of subsidiaries and one affiliated company are revaluated at the market value. Differences between revaluated amounts and original purchase prices are presented in the section of stockholders' equity and the sales price is determined by the moving average method. Securities without market value are stated at cost determined by the moving average method. (2)Inventories are stated at cost determined by the average method. B. Depreciation and amortization ()Property, plant and equipment: declining balance method For buildings (excluding accompanying equipment), acquired after April, 998, the straight line method is applied. (2)Intangible assets: straight line method over estimated useful lives The useful life for 'Software' is estimated for five years. (3)Long-term prepaid expenses: straight line method C. Allowances ()Sufficient allowance for doubtful accounts is provided to cover possible losses by estimating uncollectible amounts individually in addition to possible losses based on actual losses on collection in the past. (2)Accrued bonus is recorded as an estimate for the future payment to employees. (3)ITO EN accrues difference between the present value of the future obligations required for both of lump-sum severance retirement plan and non-contributory defined pension plan supported by the government and the pension plan assets at the fiscal year-end. Prior service costs are amortized over one year from incurred. Actuarial gains and losses are also recognized as expense using the straight line method over the estimated average remaining service life of employees commencing from the succeeding period. (4)Retirement benefits for directors and statutory auditors are accrued for the amount in conformity to internal rules. D. Conversion of foreign currency Receivables and liabilities denominated in foreign currencies are translated into Japanese yen on the basis of the period-end rate and translation differences are charged to income or expenses. E. Finance lease transaction Finance lease transactions, unless the ownership is transferred to the lessee, are accounted for in the same manner as operating leases. F. Financial instruments and hedging ()Hedge accounting Unrealized gains and losses on foreign currency exchange forward contracts which are net procured as of balance sheet dates are deferred. Accounts payable hedged by foreign currency exchange forward contracts is recorded at the contract rate. (2) Hedge method; Foreign currency exchange contracts Hedge target; Foreign debt or Foreign currency contracts (3)Hedging policy ITO EN makes foreign currency exchange forward contract to hedge its exposure on anticipated transactions, in accordance with internal 'derivative transaction regulation'. No other derivative transactions are entered into by ITO EN. There is no other derivatives done except for foreign currency exchange forward contracts. G. Cash and cash equivalents on the non-consolidated statements of cash flows include cash on hand, time deposits and highly liquidated investments with maturities of three months or less with little fluctuation risks. H. ()ITO EN participates in non-contributory defined pension plan supported by Government. The plan covers 85% of retirement benefit plans. (2)Consumption tax (including local consumption tax) received and paid are netted in the consumption tax payable.

8 3. Notes to Non-Consolidated Balance Sheets () Accumulated depreciation Accumulated depreciation (2) Details of advances to suppliers Inventories provided to outside suppliers 8,562 7,927 8,309 5,093 6,447 6,284 7, ,64 7,633 6, Notes to Non-Consolidated Statements of Income () Main items of non-operating income Interest income Dividend income form securities Compensation for transferring plants (2) Main items of non-operating expenses Interest expenses Loss on disposal of obsolete inventories (3) Main items of special losses Loss on disposal of fixed assets Loss on devaluation of investments in securities Loss on devaluation of golf memberships Allowance for doubtful accounts , (4) Depreciation and amortization Property, plant, and equipment Intangible assets Investments ,02 5. Notes to Non-Consolidated Statements of Cash Flows Breakdown of cash and cash equivalents Cash and cash equivalents include cash on hand and time deposits with maturities of three months or less in banks. Cash and deposits Deposits with maturities more than three months Cash and cash equivalents at end of period 2,255,434 5,56 2,255,434 5,56

9 6. Financial lease transactions without ownership transfer to lessee Purchase price equivalents, accumulated depreciation equivalents, and book value equivalents of leased properties as of October 3, 200, 2000, and April 30, 200. Purchase price equivalents Accumulated depreciation equivalents Book value equivalents Machines & vehicle 7,243 3,450 3,793 Tools & furniture 33,976 5,075 8,900 s (), ,296 43,65 9,74 23,990 Purchase price equivalents Accumulated depreciation equivalents Book value equivalents Machines & vehicle 6,668 3,288 3,380 Tools & furniture 29,402 2,769 6,632 s ,93 6,558 20,373 Purchase price equivalents Accumulated depreciation equivalents Book value equivalents 2. Lease obligations Due within one year Due after one year Machines Tools & & vehicle furniture s 7,30 3,502,53 39,967 3,4 4, ,377 3,899 7, ,590 8,7 7,096 7,508 6,62 4,008 4,833 24,784 2,05 22,34 3. Lease payments, depreciation equivalents and interest expense equivalents Lease payments Depreciation equivalents Interest expense equivalents 4,775 4,47 8,553 4,82 3,648 7, , Calculation method of depreciation equivalents and interest expense equivalents Depreciation equivalents are calculated by the straight line method over the lease period with no residual value. Difference between the total lease payment and the purchase price equivalents is accounted for as interest expense equivalents and allocated to the appropriate period based on interest method. 7. Market value information of securities There are no marketable securities of subsidiaries or affiliates with current value.