May 26, 2003 Consolidated Financial Results For the Fiscal Year Ended March 31, 2003 today reported the company's consolidated financial results for the fiscal year ended March 31, 2003. Total Revenue for the fiscal year was 2,520 billion yen, compared with 3,163 billion yen for the previous fiscal year. Net Loss for the fiscal year was 608 billion yen, compared with 1,227 billion yen for the previous fiscal year. FINANCIAL HIGHLIGHTS Fiscal year ended March 31, 2003 2002 Millions of yen (Unaudited) RESULTS Total Income 2,520,659 3,163,431 Income (Loss) before Income Taxes (618,946) (1,638,415) Net Income (Loss) (608,923) (1,227,424) BALANCE SHEETS Total Assets 80,207,409 79,772,980 Stockholders' Equity 1,864,344 2,600,779 PER SHARE Net Income (126,805.12) (262,851.12) Stockholders' Equity 67,382.40 202,404.35 Notes: (1) Net Income per Share = Net Income - Dividends for Preferred Stock Weighted Average Number of Shares of Common Stock * (2) Stockholders' Equity Stockholders' Equity - Number of Shares of Preferred Stock Issue Price - Dividends for Preferred Stock = per Share Number of Shares of Common Stock *Outstanding as of the end of the fiscal year *Excluding treasury stocks and stocks held by subsidiaries (3) Equity in earnings of affiliates as of March 31, 2003 is 321 million yen. (4) For Net Income per Share and Stockholders' Equity per Share, the third decimal is omitted. (5) Amounts less than one million yen are omitted. - 1 -
(NOTES) Scope of Consolidation and Application of the Equity Method (1) Consolidated Companies (Consolidated Subsidiaries) UFJ Bank Limited UFJ Trust Bank Limited UFJ Tsubasa Securities Co., Ltd. The Senshu Bank, Ltd. UFJ International plc UFJ Partners Asset Management Co., Ltd. (2) Companies accounted for under the Equity Method (Companies accounted for under the equity method) The Chukyo Bank, Ltd. Dah Sing Financial Holdings Limited The board of directors of the Company approved and resolved at the board meeting held on May 26, 2003, the Company's non-consolidated financial results for the fiscal year ended March 31, 2003. 115 Companies The Consolidated Net Income and Dividend per Share for the fiscal year ending March 31, 2004 are forecasted as follows: 24 Companies Net Income (million yen) 150,000 Dividend per Share (yen) Common Stock 2,500 Class I Preferred Shares 37,500 Class II Preferred Shares 15,900 Class III Preferred Shares 68,750 Class IV Preferred Shares 18,600 Class V Preferred Shares 19,400 Class VI Preferred Shares 5,300 Class VII Preferred Shares 11,500-2 -
CONSOLIDATED BALANCE SHEETS As of March 31, Millions of yen 2003 2002 Variance (Unaudited) Assets: Cash and Due from Banks 4,663,012 6,404,825 (1,741,813) Call Loans 209,082 383,919 (174,837) Receivables under Resale Agreements 789,772 614,314 175,458 Collateral Deposits on Securities Borrowed 2,440,978-2,440,978 Monetary Receivables Bought 222,380 127,674 94,706 Trading Assets 3,045,053 2,680,244 364,808 Money Held in Trust 35,928 111,429 (75,501) Securities 18,132,858 15,606,367 2,526,490 Loans and Bills Discounted 44,178,615 46,024,625 (1,846,009) Foreign Exchanges 566,249 551,005 15,244 Other Assets 2,243,009 3,584,120 (1,341,110) Premises and Equipment 725,725 770,063 (44,337) Deferred Tax Assets 1,522,606 1,458,282 64,323 Goodwill 15,382 21,534 (6,152) Customers' Liabilities for Acceptances and Guarantees 3,092,455 3,106,505 (14,049) Reserve for Cridit Losses (1,674,377) (1,671,269) (3,108) Reserve for Losses on Securities (1,324) (663) (661) Total Assets 80,207,409 79,772,980 434,428 Liabilities, Minority Interests and Stockholders' Equity Liabilities: Deposits 51,149,640 50,794,085 355,554 Negotiable Certificates of Deposit 4,928,697 6,365,802 (1,437,104) Call Money 5,183,204 3,561,500 1,621,703 Payables under Repurchase Agreements 1,422,205 504,186 918,018 Collateral Deposits on Securities Loaned 2,909,178-2,909,178 Commercial Paper 343,775 575,262 (231,487) Trading Liabilities 1,965,375 1,743,440 221,934 Borrowed Money 1,462,536 1,355,518 107,018 Foreign Exchanges 88,833 167,519 (78,685) Corporate Bonds and Notes 2,276,313 2,672,663 (396,350) Borrowed Money from Trust Account 1,250,246 1,692,839 (442,593) Other Liabilities 1,288,432 3,294,490 (2,006,058) Reserve for Employee Bonus 23,564 20,425 3,138 Reserve for Retirement Benefits 13,165 8,599 4,565 Reserve for Contingent Liabilities Related to Loans Sold 18,807 56,716 (37,909) Reserve for Losses on Supports of Specific Borrowers - 579,157 (579,157) Other Reserves 207 82 125 Deferred Tax Liabilities 306 1,992 (1,685) Deferred Tax Liabilities for Revaluation Reserve for Land 82,762 83,936 (1,173) Acceptances and Guarantees 3,092,455 3,106,505 (14,049) Total Liabilities 77,499,707 76,584,726 914,980 Minority Interests 843,357 587,474 255,883 Stockholders' Equity: Capital Stocks 1,000,000-1,000,000 Capital Surplus 1,233,702-1,233,702 Ratined Earnings (359,380) - (359,380) Revaluation Reserve for Land, Net of Taxes 121,792-121,792 Net Unrealized Profit (Loss) on Available-for-sale securities, Net of Tax (65,722) - (65,722) Foreign Currency Translation Adjustments (64,132) - (64,132) Treasury Stock (1,913) - (1,913) Total Stockholders' Equity 1,864,344-1,864,344 Capital Stocks - 1,000,000 (1,000,000) Capital Surplus - 1,266,626 (1,266,626) Revaluation Reserve for Land, Net of Taxes - 130,638 (130,638) Ratined Earnings - 254,225 (254,225) Net Unrealized Profit (Loss) on Available-for-sale securities, Net of Tax - 60,110 (60,110) Foreign Currency Translation Adjustments - (37,834) 37,834 Total Stockholders' Equity - 2,600,779 (2,600,779) Total Liabilities, Minority Interests and Stockholders' Equity 80,207,409 79,772,980 434,428-3 -
Notes: (1) Transactions for trading purposes are those seeking to capture gains arising from short-term market changes or from differences between markets for interest rates, currency exchange rates or securities. Such transactions are reported as "Trading Assets" and "Trading Liabilities" in the consolidated balance sheet as of March 31, 2003, on a trade date basis. Trading account securities and monetary receivables, etc. held for trading purposes are stated at market value at the end of the fiscal year. Trading-related financial derivatives such as swaps, futures and options are valued on the assumption that they were settled at the end of the fiscal year. (2) Held-to-maturity Debt Securities are carried at amortized cost, as determined by the moving average method (straight line method). "Investments in Non-consolidated Subsidiaries and Affiliates which are not accounted for under the equity method" are carried at the moving average cost. "Available-for-sale Securities" with market value are carried at market value (cost of securities sold is determined by the moving average method), and "Available-for-sale Securities" with no market value are carried at cost or amortized cost, as determined by the moving average method. Net unrealized profits or losses on available-for-sale securities are directly reflected in the stockholders' equity after considering the tax effect. (3) As regards the valuation of securities held in independently operated Money Held in Trust mainly for securities investment, securities are stated at market value. (4) Derivatives transactions, excluding those for trading purposes, are carried at fair value. (5) "Reserve for Credit Losses" of domestic consolidated banking subsidiaries is provided based on the results of the self-assessment, as follows in accordance with internal criteria regarding write-offs and providing reserves for possible credit losses : (a) The reserve for claims on debtors who are legally or substantially bankrupt is provided based on the remaining amount of the claims after the charge-off described below and the deductions of the amount expected to be collected through the disposal of collateral or the execution of guarantees. (b) The reserve for claims on debtors who are not currently legally bankrupt but are likely to become bankrupt is provided based on the amount necessary, given the overall solvency assessment of the debtors after deducting the amount expected to be collected through the the disposal of collateral or the execution of guarantees. (c) The reserve for claims on debtors with Restructured Loans and the certain amount of claims or more, or debtors with Doubtful Loans and the certain amount of claims or more, is provided by calculating the difference between the present value of expected future cash flows discounted by the loan s original contractual interest rate before restructuring and the carrying value of that claims. The reserve for claims on debtors other than the above is provided primarily based on the default rate, calculated by the actual defaults during a certain period in the past. (d) The specific reserve for loans to certain refinancing countries is provided based on the expected loss amount considering the political and economic situations of such countries. With respect to the claims with collateral or guarantees on debtors who are legally or substantially bankrupt, the remaining amount of the claims after deduction of the amount which is deemed collectible through the disposal of collateral or the execution of guarantees was charged-off against the respective claims for the fiscal year ended March 31, 2003. The amount of the charge-off as of March 31, 2003 was 1,408,066 million yen. With the application of DCF method, there was a decrease in Net Income of 347,279 million yen as compared with the amount under previous reserve policy for claims. (6) "Reserve for Possible Losses on Securities" is provided for possible losses on securities and other investments based on the amount necessary, considering the financial conditions of the issuing companies and collateral and guarantees on the securities. - 4 -
(7) "Reserve for Employee Bonuses" is provided for payment of bonuses to employees. Within the estimated amount payable to employees, the necessary amount corresponding to the fiscal year ended March 31, 2003, is recorded. (8) "Reserve for Retirement Benefit" is provided for future pension and lump-sum severance indemnity payment to employees. The reserve is recorded based on the projected benefit obligation and the pension plan asset amount at the end of the fiscal year ended March 31, 2003. The unrecognized net obligation at transition 162,817 million yen, the amount in consideration of exemption from payment of future benefit regarding the substituted portion, is amortized over 5 years. Unrecognized net actuarial gains/losses and prior service costs are amortized using the straight-line method over the average remaining service period of the employees. UFJ Holdings and some of its consolidated domestic subsidiaries, on September 1, 2002, in conjunction with enforcement of the Defined Benefit Enterprise Pension Plan Law, received approval from the Minister of Health, Labor and Welfare, for exemption from payment of futurre benefit regarding the substituted portion of the employee pension fund. As a result, UFJ Holdings and some of its consolidated domestic subsidiaries applied the transitional accounting treatment specified in paragraph 47-2 of the "Practical Guidelines of Accounting for Retirement Benefits(Interim Report)" and recognized an extinguishment of retirement benefit obligation with respect to such substituted portiion as of the date of approval. substituted portion were 126,504 million yen. (9) "Reserve for Contingent Liabilities related to Loans Sold" is provided based on the estimated liabilities of possible losses for the loans sold, considering the fair value of collateral of loans sold to the Cooperative Credit Purchasing Company, Limited. (10) Domestic consolidated subsidiaries adopt a macro hedging methodology using derivatives to manage the overall interest rate risk arising from various financial assets and liabilities held, such as loans and deposits. This macro hedging methodology is a risk management method stipulated as a "Risk Adjusted Approach" in "Tentative Accounting and Auditing Treatment relating to Adoption of 'Accounting for Financial Instruments' for Banks" (Japanese Institute of Certified Public Accountants. Industry Audit Committee Report No.15). Accordingly hedging items are accounted for using the deferral method of hedge accounting. Hedge effectiveness is assessed by monitoring (i) whether the total market risk on derivatives instruments, used for hedging purposes, is within established risk limits as set out in the risk management policies and (ii) whether the interest rate risk from hedged items has been mitigated. Hedging against risks of forex fluctuations on foreign currency securities (other than bonds) is accounted for using the deferral and fair value method of hedge accounting. The deferral method for hedge accounting is also applied to certain assets or liabilities other than the abobe. Other hedging of the domestic consolidated subsidiaries adopt the deferral method for hedge accounting. (11) Loans to Bankrupt Companies and Other Delinquent Loans were 135,436 million yen and 1,583,872 million yen, respectively. Among these loans, the entrusted amount to the Resolution and Collection Corporation were 41,795 million yen, and this act of trust was recognized as the process of measures to remove loans from balance sheet. (12) Loans Past Due 3 Months or More, other than Loans to Bankrupt Companies and Other Delinquent Loans, were 67,872 million yen. (13) Restructured Loans were 2,487,021 million yen. (14) The net realized and unrealized profits and losses arising on hedging instruments are included in Other Liabilities as deferred hedge profits. The gross amounts of deferred hedge profits and losses are 383,692 million yen and 273,910 million yen, respectively. (15) Principal amount of indemnified trusts is 920,374 million yen in Jointly Operated Designated Money Trusts and 1,221,909 million yen in Loan Trusts. - 5 -
(16) The following includes "Securities", trading account securities, negotiable due from banks and commercial paper in "Trading Assets", negotiable due from banks in "Cash and Due from Banks" and commodity funds in "Monetary Receivables Bought". Trading Securities Book value as of March 31, 2003 Valuation gain (loss) during the fiscal year ended March 31, 2003 2,557,872 million yen (2,292) million yen Held-to maturity Debt Securities with Market Value Unrealized Gain(Loss) (Millions of Yen) Book value Market value Net Gain Loss Japanese National Government Bonds 19 19 0 0 - Japanese Local Government Bonds - - - - - Japanese Corporate Bonds and Financial Deventures - - - - - Others 37,462 38,556 1,094 1,192 97 Total 37,482 38,576 1,094 1,192 97 Available-for-sale Securities with Market Value Unrealized Gain(Loss) (Millions of Yen) Aggregate Cost Market value Net Gain Loss Japanese Equities 2,602,713 2,420,706 (182,006) 142,478 324,484 Japanese Bonds 10,848,239 11,001,074 152,835 156,334 3,499 Japanese National Government Bonds 10,293,026 10,417,759 124,733 128,195 3,462 Japanese Local Government Bonds 310,392 328,169 17,777 17,777 - Japanese Corporate Bonds and Financial Debentures 244,821 255,145 10,324 10,361 36 Others 3,060,694 3,067,424 6,729 51,170 44,440 Total 16,511,647 16,489,206 (22,441) 349,983 372,424 Net Unrealized Profit on Available-for-sale Securities, Net of Taxes, as of March 31, 2003, is 65,722 million yen: Net Unrealized Loss on Available-for-sale Securities shown in the above table of 22,441 million yen, plus Deferred Tax Assets of 230 million yen, minus Deferred Tax Liabilities of 43,145 million yen, less Minority Interests equivalent of 966 million yen, plus Parent Company's interest of 600 million yen in Net Unrealized Profit/ Loss of Available-for-sale Securities held by affiliates accounted for under the equity method., revaluation losses on Available-for-sale Securities were 184,332 million yen. The principle for recognition of revaluation losses are as follows: 1. Market price of a share falls down by more than 50% of book value. 2. Market price of a share falls down by more than 30% and the issuing company of the share is categorized as Doubtful Borrower or below. 3. Market price of a share falls down by more than 40% and the issuing company of the share is categorized as Special mention Borrower including Sub-standard Borrower. Other Expenses for the fiscal year ended March 31, 2003 includes realized loss on sale of Available-for-sale Securities held by UFJ Bank, consolidated banking subsidiary of UFJ Holdings, to UFJ Equity Investments Co.Ltd., consolidated domestic subsidiary of UFJ Bank, of 182,547 million yen. (17) Avaliable-for-sale Securities sold during the fiscal year ended March 31, 2003 Proceeds from Sales 41,192,201 million yen Realized Profit 313,705 million yen Realized Loss 337,602 million yen (18) Held-to-maturity Debt Securities and Available-for-sale Securities whose Market Value is not readily determinable (Millions of Yen) Book value Held-to-maturity Debt Securities Unlisted Japanese Bonds 44 Available-for-sale Securities Unlisted Japanese Bonds 1,064,014 Unlisted Japanese Equites other than Over-the-counter 430,801 Negotiable Due from Banks 44,213 Beneficiary Securities Loaned in Trust 31,140-6 -
(19) Rredemption Schedule of Held-to-maturity Debt Securities and Available-for-sale securities with Maturity (Millions of Yen / Year) 1 or less over 1 to 5 over 5 to 10 over 10 Japanese Bonds 3,848,108 4,420,298 3,541,351 255,395 Japanese National Government Bonds 3,684,385 3,522,398 3,020,597 190,398 Japanese Local Government Bonds 32,976 38,632 261,856 6,043 Japanese Corporate Bonds and Financial Debentures 130,746 859,267 258,897 58,954 Others 674,999 1,589,605 143,791 566,233 Total 4,523,107 6,009,904 3,685,143 821,629 (20) Money Held in Trust Money Held in Trust for Trading Purposes Book value as of March 31, 2003 35,928 million yen Valuation Gain (Loss) during the fiscal year ended March 31, 2003 - (21) Pursuant to overdraft agreements and commitments to provide loans, the Company may provide loans with customers up to certain limits. Among such limits, 21,955,153 million yen remains unused of which 20,616,472 million yen is based on contracts to be terminated within a year or revocable by consolidated banking subsidiaries' options. (22) Employee Retirement Benefits (Millions of Yen) Projected Benefit Obligation (768,711) Fair Value of Plan Assets 419,008 Security held in Trust 192,480 Funded Status (157,223) Unrecognized Transitional Obligation 59,785 Unrecognized Net Actuarial Loss 409,679 Unrecognized Prior Service Cost (24,698) Net Amount Recognized on the Consolidated Blance Sheet 287,543 Prepaid Pension Cost 300,709 Reserve for Retirement Benefits (13,165) (23) With the implementation of the Metropolitan ordinance regarding the imposition of enterprise taxes through external standards taxation on banks in Tokyo" (Tokyo Meteropolitan Ordinance No.145, April 1, 2000) ( the metropolitan ordinance ), enterprise taxes which were hitherto levied on income are now levied on Gross Operating Profit. On October 18, 2000 UFJ Bank and UFJ Trust Bank, the consolidated banking subsidiaries, of UFJ Holdings filed a lawsuit with the Tokyo District Court against the Tokyo metropolitan government and the Governor of Tokyo seeking to void the metropolitan ordinance. The banking subsidiaries won the case eventually entirely on March 26, 2002 with a decision of the Tokyo District Court in the Bank s favor, on the grounds that the metropolitan ordinance was illegal. The District Court ordered the metropolitan government to return to the Banks advance tax payments of 11,178 million yen and also awarded to the Banks damages of 300 million yen. On March 29, 2002 the metropolitan government lodged an appeal with the Tokyo High Court against the decision, and on April 9, 2002 the plaintiff banks at the first trial including the Bank also lodged an appeal. The Bank won the second-trial case eventually on January 30, 2003 with a decision of the Tokyo High Court in the Bank s favor, on the grounds that the metropolitan ordinance was illegal. The High Court ordered the metropolitan government to return to the Bank advance tax payments of 23,235 million yen. On February 10, 2003 the metropolitan government lodged a final appeal with the Supreme Court against the decision, and on February 13, 2003 the plaintiff banks at the first trial including the Bank also lodged a final appeal. It is the opinion of the both banks that the metropolitan ordinance is both unconstitutional and illegal. Those banks have asserted this opinion in the courts and the matter is still in litigation. The fact that during this term the both banks have applied the same treatment as in the previous term, accounting for enterprise taxes through external standards taxation on banks in Tokyo in accordance with the metropolitan ordinance, is because the both banks have deemed it appropriate at this stage to continue with the same accounting treatment as before. This accounting treatment does not constitute in any way an admission on the part of the both banks either of the constitutionality or of the legality of the metropolitan ordinance. - 7 -
With the implementation of the municipal ordinance, enterprise taxes relating to banks in Tokyo were recorded in Other Expenses in the amounts of 11,951 million yen in the this term. As a result, there was a respective decrease in Ordinary Profit as compared with the previous standards under which enterprise taxes were levied on income. With the implementation of the Municipal Ordinance regarding the imposition of enterprise taxes through external standards taxation on banks in Osaka (Osaka Municipal Ordinance No.131, 2000) ( the municipal ordinance ), enterprise taxes which were hitherto levied on income are now levied on gross operating profit. On April 4, 2002, the both banks filed a lawsuit with the Osaka District Court against the Osaka municipal government and the Governor of Osaka seeking to void the municipal ordinance. With the implementation of the Revision of Municipal Ordinance regarding the imposition of enterprise taxes through external standards taxation on banks in Osaka (Osaka Municipal Ordinance No.77, 2002) ( the revised municipal ordinance 2002 ) on May 30, 2002, and the implementation of the Revision of Municipal Ordinance regarding the imposition of enterprise taxes through external standards taxation on banks in Osaka (Osaka Municipal Ordinance No.14, 2003) ( the revised municipal ordinance 2003 ) on April 1, 2003, the special treatment regarding the tax basis is to be applicable from the fiscal year starting on April 1, 2003. The enterprise taxes which the banks should pay to Osaka municipal government this term are subject to the supplementary provision 2 of the revised municipal ordinance 2003, which provides the banks shall pay the enterprise taxes based on the lesser of gross operating profit or income. The Banks, therefore, filed and paid the enterprise taxes based on income. The fact that the Banks filed and paid the enterprise taxes according to the revised municipal ordinance does not constitute in any way an admission on the part of the Banks either of the constitutionality or of the legality of the revised municipal ordinance 2002 and 2003 as well as the municipal ordinance. With the implementation of the Revision of the Local Tax Law (Legislation No.9, 2003) on March 31, 2003, the tax basis of enterprise taxes, which was stipulated as income and liquidation income by the 12th paragraph of Article 72 of the Local Tax Law before the revision, is to be a combination of amount of added value, amount of capital and income and liquidation income from the fiscal year starting April 1, 2004. The enterprise taxes that have tax bases of the amount of added value and the amount of capital are not pertinent to the enterprise taxes that have tax bases of income-related amounts. The Revision of the Local Tax Law also stipulates that the metropolitan ordinance and the municipal ordinance are to be abolished from the fiscal year starting April 1, 2004. In connection with the Revision of the Local Tax Law, the effective statutory tax rate used in the calculations of deferred tax assets and liabilities from the fiscal year starting April 1, 2004 decreased from 42.0% to 40.6%, and, thus, there were an increase in Deferred Tax Assets of 4,990 million yen, a decrease in Deferred Tax Liabilities of 15 million yen, and a decrease in Deferred Income Taxes of 4,897 million yen. There were also an increase in Deferred Tax Liabilities for Revaluation Reserve for Land of 2,750 million, a decrease in the Revaluation Reserve for Land, Net of Taxes of the same amount, and a decrease in Net Unrealized Losses on Available-for-sale Securities, Net of Taxes of 1,639 million yen. (24) Amounts less than one million yen are omitted. - 8 -
CONSOLIDATED STATEMENTS OF OPERATIONS Millions of yen Fiscal year ended March 31, 2003 2002 Variance (Unaudited) Revenue: Interest Income 1,156,993 1,652,315 (495,321) Interest on Loans and Discounts 856,002 1,105,010 (249,008) Interest on and Dividends from Securities 187,289 308,145 (120,856) Trust Fees 58,458 68,944 (10,485) Fees and Commissions 361,047 315,361 45,685 Trading Revenue 140,612 104,847 35,765 Other Operating Income 549,561 508,806 40,755 Other Income 253,985 513,156 (259,170) Total Revenue 2,520,659 3,163,431 (642,772) Expenses: Interest Expenses 288,542 607,751 (319,209) Interest on Deposits 111,591 345,921 (234,329) Fees and Commissions 68,538 65,537 3,000 Trading Expenses 438-438 Other Operating Expenses 314,447 373,685 (59,238) General and Administrative Expenses 775,121 855,239 (80,118) Other Expenses 1,692,518 2,899,633 (1,207,115) Total Expenses 3,139,606 4,801,847 (1,662,241) Income (Loss) before Income Taxes & Minority Interests (618,946) (1,638,415) 1,019,468 Provision for Income Taxes 7,675 21,266 (13,591) Deferred Income Taxes (37,903) (455,793) 417,889 Minority Interests in Net Income (Loss) 20,204 23,534 (3,330) Net Income (Loss) (608,923) (1,227,424) 618,500-9 -
Notes: (1) Profits and losses on transactions for trading purposes are shown as "Trading Revenue" or "Trading Expenses" on the consolidated statements of operations on a trade date basis. In the case of securities and monetary receivables, etc. held for trading purposes, "Trading Revenue/Expenses" includes the interest received/paid during the fiscal year ended March 31, 2003 and the increase/decrease of the valuation profits/losses at the end of the fiscal year ended March 31, 2003 from those at the end of the fiscal year ended March 31, 2002. In the case of trading-related financial derivatives, "Trading Revenue/Expenses" includes the interest received/paid during the fiscal year ended March 31, 2003 and the increase/ decrease of the amounts of profits/losses based on the assumption that transactions were settled at the end of the fiscal year ended March 31, 2003 from the fiscal year ended March 31, 2002. (2) Other Expenses for the fiscal year ended March 31, 2003 includes Revaluation Losses on Securities of 372,357 million yen, Losses on Sales of Securities of 304,457 million yen, Write-off of Loans of 274,081 million yen and Losses on Supporting Specific Borrowers of 137,581 million yen. Also, Expenses for Amortization of Unrecognized Net Pension Obligation of 30,446 million yen, pursuant to a change in accounting policy, and costs on merger of their consolidated subsidiaries and affiliates of 6,206 million yen are included. (3) Other Income for the fiscal year ended March 31, 2003 includes Gains on Establishment of Retirement Benefit Trusts of 17,428 million yen and Gains on Return of Substitutional Portion of Public Pension Fund of 10,997 million yen and Reversal of Reserve for Possible Losses on Support of Specific Borrowers of 10,306 million yen. (4) Amounts less than one million yen are omitted. - 10 -
CONSOLIDATED STATEMENTS OF CAPITAL SURPLUS AND RETAINED EARNINGS Fiscal Year ended March 31, 2003 2002 Variance Millions of yen (Unaudited) Capital Surplus Balance, at Beginning of the Period 1,266,626-1,266,626 Loss on Sales of Treasury Stocks (32,924) (32,924) Balance, at End of the Period 1,233,702-1,233,702 Retained Earnings Balance, at Beginning of the Period 254,225-254,225 Reversal of Revaluation Reserve for Land 6,158-6,158 Merger of Consolidated Subsidiaries 12,449-12,449 Dividend Declared (23,282) - (23,282) Bonuses for Directors and Statutory Auditors (8) - (8) Net Loss (608,923) (608,923) Balance, at End of the Period (359,380) - (359,380) Retained Earnings Balance, at Beginning of the Period - 417,025 (417,025) Transfer from Capital Surplus - 1,000,000 (1,000,000) Reversal of Revaluation Reserve for Land 72,875 (72,875) Cash Dividends - (8,246) 8,246 Bonuses for Directors and Statutory Auditors (5) 5 Net Loss - (1,227,424) 1,227,424 Balance, at End of the Period - 254,225 (254,225) - 11 -
CONSOLIDATED STATEMENTS OF CASH FLOWS Fiscal year ended March 31, 2003 2002 Variance Millions of yen (Unaudited) Cash Flows from Operating Activities Income Before Income Taxes & Minority Interests (618,946) (1,638,415) 1,019,468 Depreciation 28,005 36,881 (8,875) Amortization of Goodwill 3,433 4,018 (584) Equity in Earnings of Affiliates 380 18,893 (18,513) Net Increase (Decrease) in Reserve for Credit Losses (5,759) 348,911 (354,671) Net Increase (Decrease) in Reserve for Losses on Securities 661 (2,859) 3,520 Net Increase (Decrease) in Reserve for Contingent Liabilities Related to Loans Sold (37,909) (67,870) 29,961 Net Increase (Decrease) in Reserve for Possible Losses on Support of Specific Borrowers (579,157) 579,157 (1,158,314) Net Increase (Decrease) in Reserve for Employee Bonuses 1,277 2,740 (1,462) Net Increase (Decrease) in Reserve for Retirement Benefit 21,968 84,214 (62,245) Interest Income (1,156,993) (1,652,315) 495,321 Interest Expenses 288,542 607,751 (319,209) Net (Gain) Loss on Securities 419,023 134,618 284,404 Net (Gain) Loss on Money Held in Trust 595 (477) 1,073 Net (Gain) Loss on Foreign Currency Translation Adjustments 58,893 (197,505) 256,399 Net (Gain) Loss on Sales of Premises and Equipment 26,941 45,539 (18,597) Net (Gain) Loss on Establishing Retirement Benefit Trust (17,428) (50,527) 33,099 Net (Increase) Decrease in Trading Assets (270,782) 1,707,746 (1,978,529) Net Increase (Decrease) in Trading Liabilities 193,410 (424,210) 617,620 Net (Increase) Decrease in Loans and Bills Discounted 1,932,023 7,193,312 (5,261,289) Net Increase (Decrease) in Deposits 354,979 (3,496,130) 3,851,110 Net Increase (Decrease) in Negotiable Certificates of Deposit (1,437,104) (3,434,516) 1,997,411 Net Increase (Decrease) in Borrowed Money (Non-subordinated) 171,072 (327,183) 498,256 Net (Increase) Decrease in Due from Banks Excluding Due from Central Bank 1,113,153 2,642,773 (1,529,619) Net (Increase) Decrease in Call Loans and Monetary Receivables Bought (54,643) (557,760) 503,117 Net (Increase) Decrease in Collateral Deposits on Securities Borrowed (646,167) (152,345) (493,822) Net Increase (Decrease) in Call Money and Other Fundings Related to Operating Activities 2,539,721 (2,649,806) 5,189,528 Net Increase (Decrease) in Commercial Paper (250,487) (257,448) 6,961 Net Increase (Decrease) in Collateral Deposits on Securities Lent 713,087 (2,111,371) 2,824,458 Net (Increase) Decrease in Foreign Exchange Assets (15,244) 78,387 (93,631) Net Increase (Decrease) in Foreign Exchange Liabilities (78,685) 31,233 (109,919) Net Increase (Decrease) in Corporate Bonds Resulted from Issuance, Redemption and Repurchase 342,343 661,810 (319,466) Net Increase (Decrease) in Borrowed Money from Trust Account (442,593) (1,097,385) 654,792 Interest Received 1,238,860 1,890,309 (651,448) Interest Paid (338,450) (715,095) 376,644 Others, Net (228,204) (118,958) (109,245) Sub-total 3,269,818 (2,883,885) 6,153,704 Income Taxes Paid (7,832) (29,317) 21,484 Net Cash Provided by (Used in) Operating Activities 3,261,985 (2,913,202) 6,175,188-12 -
CONSOLIDATED STATEMENTS OF CASH FLOWS (CONTINUED) Millions of yen Fiscal year ended March 31, 2003 2002 Variance (Unaudited) Cash Flows from Investing Activities Purchases of Securities (50,778,318) (41,899,542) (8,878,776) Proceeds from Sales of Securities 36,361,278 30,910,908 5,450,370 Proceeds from Maturities of Securities 11,152,674 16,183,009 (5,030,335) Increase in Money Held in Trust (70,846) (86,784) 15,937 Decrease in Money Held in Trust 184,818 132,833 51,984 Expenditures for Premises and Equipment (25,215) (101,535) 76,319 Proceeds from Sales of Premises and Equipment 41,337 147,440 (106,103) Expenditures for Purchases of Consolidated Subsidiaries (13,275) 0 (13,275) Proceeds from Sales of Consolidated Subsidiaries 9,487 250,298 (240,810) Others, Net - (188) 188 Net Cash Provided by (Used in) Investing Activities (3,138,059) 5,536,440 (8,674,500) Cash Flows from Financing Activities Proceeds from Issuance of Subordinated Debt 163,500 162,000 1,500 Expenditures for Repayment of Subordinated Debt (465,500) (237,500) (228,000) Proceeds from Issuance of Subordinated Bonds 34,932 637,331 (602,399) Redemption and Repurchase of Subordinated Bonds (719,937) (606,304) (113,633) Proceeds from Issuance of Capital Stocks to Minority Interests 231,000 219,845 11,154 Dividends Paid (23,282) (8,246) (15,036) Dividends Paid to Minority Interests (26,667) (7,811) (18,855) Expenditures for Purchase of Treasury Stocks (256) (6,882) 6,626 Proceeds from Sales of Treasury Stocks 8,280 6,564 1,715 Proceeds from Sales of Stocks of Parent held by Consolidated Subsidiaries - 86,265 (86,265) Net Cash Provided by (Used in) Financing Activities (797,931) 245,261 (1,043,193) Effect of Exchange Rate Changes on Cash and Cash Equivalents (1,425) 11,763 (13,188) Net Increase (Decrease) in Cash and Cash Equivalents (675,431) 2,880,262 (3,555,694) Cash and Cash Equivalents at Beginning of Fiscal Year 4,378,042 1,497,781 2,880,261 Increase in Cash and Cash Equivalents due to Change of Scope of Consolidated 1,338-1,338 Increase in Cash and Cash Equivalents due to Merger of Consolidated Subsidiaries 0-0 Decrease in Cash and Cash Equivalents due to Exclusion of Consolidated Subsidiaries (18) (1) (17) Cash and Cash Equivalents at End of Fiscal Year 3,703,931 4,378,042 (674,111) Notes: (1) Amounts less than one million yen are omitted. (2) For the purpose of the consolidated statements of cash flows, "Cash and Cash Equivalents" is "Cash and Due from Banks" in the consolidated balance sheets. - 13 -
SEGMENT INFORMATION 1.Segment Information by Type of Business Fiscal Year ended Banking and Elimination and March 31, 2003 Trust Business Leases Others Total Corporate Assets Consolidated I Ordinary Income 1,951,985 238,464 313,090 2,503,540 (102,964) 2,400,575 (1)Outside Customers 1,932,971 222,022 245,581 2,400,575-2,400,575 (2)Internal-Business Transfer 19,014 16,441 67,509 102,964 (102,964) - Ordinary Expense 2,636,137 243,658 287,146 3,166,942 (96,974) 3,069,968 Ordinary Profit (Loss) (684,151) (5,194) 25,943 (663,402) (5,990) (669,392) II Assets 75,133,370 785,225 9,753,143 85,671,739 (5,464,330) 80,207,409 Depreciation 56,243 540 11,386 68,171-68,171 Capital Expenditure 51,592 1,884 13,149 66,626-66,626 2.Segment Information by Location Fiscal Year ended Elimination and March 31, 2003 Japan The Americas Europe Asia/Oceania Total Corporate Assets Consolidated I Ordinary Income 2,161,932 146,335 122,747 96,237 2,527,252 (126,676) 2,400,575 (1)Outside Customers 2,112,403 90,066 106,515 91,591 2,400,575-2,400,575 (2)Internal-Business Transfer 49,529 56,268 16,231 4,646 126,676 (126,676) - Ordinary Expense 2,966,547 85,469 101,989 39,812 3,193,819 (123,850) 3,069,968 Ordinary Profit (Loss) (804,615) 60,865 20,757 56,245 (666,567) (2,825) (669,392) II Assets 77,135,987 3,477,705 4,407,687 2,986,658 88,008,037 (7,800,628) 80,207,409 Notes: (1) Ordinary Income represents "Total Revenues" less certain items such as "Gain on Sales of Premises and Equipment" and "Collection of Written off Claims." Ordinary Expenses represents "Total Expenses" less certain items such as "Loss on Sales of Premises and Equipment" and "Amortization of Net Transitional Obligation for Employee Retirement Benefits." (2) "Americas" includes the United States and Canada. "Europe" includes United Kingdom and Germany. "Asia/Oceania Excluding Japan includes Hong Kong, Singapore and Australia. - 14 -
SEGMENT INFORMATION 1.Segment Information by Type of Business Fiscal Year ended Banking and Elimination and March 31, 2002 Trust Business Leases Others Total Corporate Assets Consolidated I Ordinary Income 2,659,004 229,367 378,203 3,266,575 (195,765) 3,070,810 (1)Outside Customers 2,619,801 216,183 234,825 3,070,810-3,070,810 (2)Internal-Business Transfer 39,203 13,183 143,378 195,765 (195,765) - Ordinary Expense 4,275,795 231,271 290,499 4,797,566 (123,029) 4,674,536 Ordinary Profit (Loss) (1,616,790) (1,903) 87,703 (1,530,990) (72,735) (1,603,726) II Assets 76,635,442 685,360 8,436,045 85,756,848 (5,983,867) 79,772,980 Depreciation 62,043 421 4,772 67,238-67,238 Capital Expenditure 146,331 768 6,813 153,913-153,913 2.Segment Information by Location Fiscal Year ended Elimination and March 31, 2002 Japan The Americas Europe Asia/Oceania Total Corporate Assets Consolidated I Ordinary Income 2,680,435 367,266 173,092 249,728 3,470,523 (399,712) 3,070,810 (1)Outside Customers 2,456,445 272,237 164,010 178,117 3,070,810-3,070,810 (2)Internal-Business Transfer 223,990 95,029 9,082 71,610 399,712 (399,712) - Ordinary Expense 4,288,313 328,552 168,355 255,547 5,040,768 (366,231) 4,674,536 Ordinary Profit (Loss) (1,607,877) 38,713 4,737 (5,819) (1,570,245) (33,480) (1,603,726) II Assets 74,811,763 4,199,638 3,152,883 4,423,886 86,588,171 (6,815,191) 79,772,980 Notes: (1) Ordinary Income represents "Total Revenues" less certain items such as "Gain on Sales of Premises and Equipment" and "Collection of Written off Claims." Ordinary Expenses represents "Total Expenses" less certain items such as "Loss on Sales of Premises and Equipment" and "Amortization of Net Transitional Obligation for Employee Retirement Benefits." (2) "Americas" includes the United States and Canada. "Europe" includes United Kingdom and Germany. "Asia/Oceania Excluding Japan includes Hong Kong, Singapore and Australia. - 15 -
3. Ordinary Income from Overseas Operations Ordinary Income Consolidated Ratio of Ordinary Income from Overseas Ordinary from Overseas Operations Operations Income over Consolidated Ordinary Income Fiscal year ended March 31, 2003 288,172 2,400,575 12.0% Fiscal year ended March 31, 2002 614,364 3,070,810 20.0% Notes: (1) Ordinary Income form Overseas Operation is shown, instead of Overseas Sales Amount for non-financial companies. (2) Ordinary Income from Overseas Operations primarily includes income from transactions of the domestic consolidated subusidiaries' overseas branches, and income from transactions of the overseas consolidated subsidiaries (excluding Internal Ordinary Income between consolidated entities). Segment Information by Location on Ordinary Income from Overseas Operations is not shown here since Ordinary Income from Overseas Operations is not classified by the domicile of obligators. - 16 -
MARKET VALUE INFORMATION ON SECURITIES AND MONEY HELD IN TRUST (as of March 31, 2003) A. Securities The following includes Securities, "negotiable due from banks," contained in Cash and Due from Banks, and "commodity funds," contained in Monetary Receivables Bought. 1. Trading Securities Book value as of March 31, 2003 2,557,872 million yen Valuation gain (loss) during the fiscal year ended March 31, 2003 (2,292) million yen 2. Held-to-Maturity Bonds with Market Value Book Market Unrealized Gain(Loss) Type Value Value Net Gain Loss Japanese National Government Bonds 19 19 0 0 - Japanese Local Government Bonds - - - - - Japanese Corporate Bonds and Financial Debentures - - - - - Others 37,462 38,556 1,094 1,192 97 Total 37,482 38,576 1,094 1,192 97 3. Available-for-Sale Securities with Market Value Aggregate Market Unrealized Gain(Loss) Type Cost Value Net Gain Loss Japanese Equities 2,602,713 2,420,706 (182,006) 142,478 324,484 Japanese Bonds 10,848,239 11,001,074 152,835 156,334 3,499 Japanese NationalGovernment Bonds 10,293,026 10,417,759 124,733 128,195 3,462 Japanese Local Government Bonds 310,392 328,169 17,777 17,777 - Japanese Corporate Bonds and Financial Debentures 244,821 255,145 10,324 10,361 36 Others 3,060,694 3,067,424 6,729 51,170 44,440 Total 16,511,647 16,489,206 (22,441) 349,983 372,424 4. The Bank sold avaliable-for-sale securities during the fiscal year ended March 31, 2003 as follows: Book value 41,192,201 million yen Profits on sale 313,705 million yen Losses on sale 337,602 million yen - 17 -
5. Held-to-maturity Debt Securities and Available-for-sale Securities whose Market Value is not readily determinable Type Book Value Held-to-maturity Debt Securities Unlisted Bonds 44 Available-for-sale Securities Unlisted Bonds 1,064,014 Unlisted Stocks (excluding over-the-counter stocks) 430,801 Negotiable due from Banks 44,213 Beneficiary Securities Loaned in Trust 31,140 6. Redemption Schedule of Held-to-maturity Debt Securities and Available-for-sale securities with Maturity (Millions of Yen / Year) 1 or less over 1 to 5 over 5 to 10 over 10 Japanese Bonds 3,848,108 4,420,298 3,541,351 255,395 Japanese National Government Bonds 3,684,385 3,522,398 3,020,597 190,398 Japanese Local Government Bonds 32,976 38,632 261,856 6,043 Japanese Corporate Bonds and Financial Debentures 130,746 859,267 258,897 58,954 Others 674,999 1,589,605 143,791 566,233 Total 4,523,107 6,009,904 3,685,143 821,629 B. Money Held in Trust 1. Held-to-Maturity Money Held in Trust Book value as of March 31, 2003 35,928 million yen Valuation gain (loss) during the fiscal year ended March 31, 2003-2. Held-to-Maturity Money Held in Trust There is no Held-to-Maturity Money Held in Trust. 3. Available-for-Sale Money Held in Trust (other than Held-to-Maturity Money Held in Trust and Investment Money Held in Trust) There is no Available-for-Sale Money Held in Trust (other than Held-to-Maturity Money Held in Trust and Investment Money Held in Trust). - 18 -
C. Net Unrealized Profit (Loss) on Available-for-Sale Securities Type Book Value Net Unrealized Gains (22,441) Available-for-Sale Securities (22,441) Available-for-Sale Money Held in Trust - Deferred Tax Assets 230 Less: Deferred Tax Liabilities 43,145 Net Unrealized Gains (Losses), Net of Taxes (65,356) (before adjustment for minority interest) Less: Minority Interests 966 Parent Company's Interest in Net Unrealized Profit (Loss) of Available-for-Sale Securities Held by Affiliates Accounted 600 for under Equity Method Net Unrealized Gains (Loss) on Available-for-sale Securities, Net of Taxes (65,722) - 19 -
MARKET VALUE INFORMATION ON SECURITIES AND MONEY HELD IN TRUST (as of March 31, 2002) A. Securities The following includes Securities, "negotiable due from banks," contained in Cash and Due from Banks, and "commodity funds," contained in Monetary Receivables Bought. 1. Trading Securities Book value as of March 31, 2002 2,194,333 million yen Valuation gain (loss) during the fiscal year ended March 31, 2002 (7,188) million yen 2. Held-to-Maturity Bonds with Market Value As of March 31, 2002 Book Market Unrealized Gain(Loss) Type Value Value Net Gain Loss Japanese National Government Bonds - - - - - Japanese Local Government Bonds - - - - - Japanese Corporate Bonds and Financial Debentures 2,002 2,010 7 7 - Others 23,981 24,034 52 68 15 Total 25,984 26,045 60 76 15 3. Available-for-Sale Securities with Market Value As of March 31, 2002 Aggregate Market Unrealized Gain(Loss) Type Cost Value Net Gain Loss Japanese Equities 4,307,018 4,411,761 104,743 542,569 437,825 Japanese Bonds 7,917,619 7,930,110 12,490 23,954 11,463 Japanese NationalGovernment Bonds 7,085,085 7,090,785 5,699 13,299 7,599 Japanese Local Government Bonds 574,842 578,459 3,616 6,259 2,642 Japanese Corporate Bonds and Financial Debentures 257,691 260,865 3,174 4,395 1,221 Others 1,849,417 1,842,679 (6,737) 52,008 58,745 Total 14,074,054 14,184,551 110,496 618,531 508,035 4. The Company sold avaliable-for-sale securities during the fiscal year ended March 31, 2002 as follows: Book value 33,089,672 million yen Profits on sale 420,849 million yen Losses on sale 260,418 million yen - 20 -
5. Held-to-maturity Debt Securities and Available-for-sale Securities whose Market Value is not readily determinable As of March 31, 2002 Type Book Value Held-to-maturity Debt Securities Unlisted Foreign Bonds 2,383 Available-for-sale Securities Unlisted Bonds 771,631 Unlisted Stocks (excluding over-the-counter stocks) 211,029 Beneficiary Securities Loaned in Trust 260,673 Negotiable due from Banks 54,621 Unlisted Foreign Securities 33,148 6. Redemption Schedule of Held-to-maturity Debt Securities and Available-for-sale securities with Maturity (Millions of Yen / Year) 1 or less over 1 to 5 over 5 to 10 over 10 Japanese Bonds 2,136,849 2,605,279 3,667,914 293,701 Japanese National Government Bonds 1,981,034 1,901,116 2,957,696 250,937 Japanese Local Government Bonds 45,526 129,582 555,097 5,744 Japanese Corporate Bonds and Financial Debentures 110,287 574,580 155,119 37,019 Others 1,030,543 698,572 219,650 75,848 Total 3,167,392 3,303,852 3,887,564 369,549 B. Money Held in Trust 1. Held-to-Maturity Money Held in Trust Book value as of March 31, 2002 111,429 million yen Valuation gain (loss) during the fiscal year ended March 31, 2002 (11) million yen 2. Held-to-Maturity Money Held in Trust There is no Held-to-Maturity Money Held in Trust. 3. Available-for-Sale Money Held in Trust (other than Held-to-Maturity Money Held in Trust and Investment Money Held in Trust) There is no Available-for-Sale Money Held in Trust (other than Held-to-Maturity Money Held in Trust and Investment Money Held in Trust). - 21 -
C. Net Unrealized Profit (Loss) on Available-for-Sale Securities As of March 31, 2002 Type Book Value Net Unrealized Profit (Loss) 110,496 Available-for-Sale Securities 110,496 Available-for-Sale Money Held in Trust - Less: Deferred Tax Liabilities 50,777 Net Unrealized Profit (Loss), Net of Taxes 59,718 (before adjustment for minority interests) Less: Minority Interests 570 Parent Company's Interest in Net Unrealized Profit (Loss) of Available-for-Sale Securities Held by Affiliates Accounted 962 for under Equity Method Net Unrealized Gains (Loss) on Available-for-sale Securities, Net of Taxes 60,110-22 -
MARKET VALUE INFORMATION ON DERIVATIVES TRANSACTIONS (as of March 31, 2003) 1. Interest Rate Related Transactions Exchange-traded Interest Rate Futures Sold 21,896,723 (169,400) (169,400) Bought 22,199,019 176,058 176,058 Interest Rate Options Sold 13,079,285 16,691 (10,000) Bought 12,013,648 19,974 12,786 Over-the-Counter Forward Rate Agreement Sold 1,738,979 2,805 2,805 Bought 1,592,441 (2,876) (2,876) Interest Rate Swaps Receipts Fixed /Payments Fixed 41,737 1,767 1,767 Receipts Fixed /Payments Floating 82,172,007 2,389,315 2,389,315 Receipts Floating /Payments Fixed 80,140,686 (2,432,797) (2,432,797) Receipts Floating /Payments Floating 10,117,785 (2,036) (2,036) Interest Rate Options Sold 51,229 1,675 (650) Bought 98,262 2,438 483 Others Sold 4,743,231 50,748 (17,520) Bought 4,547,852 74,383 52,813 Total (9,482) 748 Notes: (1) The above Gain (Loss) is stated on the Consolidated Statements of Income. Derivatives transactions to which hedge accounting is applied are excluded. 2. Currency Related Transactions Over-the-Counter Currency Swaps 5,828,183 (32,716) (32,716) Foreign Exchange Forward Contracts Sold 51,796 1,130 1,130 Bought 321,937 1,545 1,545 Currency Options Sold 212,835 2,292 132 Bought 238,489 2,539 (457) Total (29,793) (30,365) Notes: (1) The above Gain (Loss) is stated on the Consolidated Statements of Income. Derivatives transactions, to which hedge accounting is applied, and transactions stated in the Note (2) below are excluded. (2) Certain Currency Swaps have been excluded from table 2. Above, since such Currency Swaps have been accounted for by using the accrual method of accounting based on "Tentative Auditing Treatment relating to Adoption of 'Revised Accounting for Foreign Currency Transaction' for Banks." (The Japanese Institute of Certified Public Accountants April 10, 1999) The Contractual Value etc. of such Currency Swaps accounted for on an accrual method is as follows: - 23 -
Type Currency Swaps 1,641,231 2,425 2,425 (3) Foreign exchange forward contracts, currency options and some other transactions are excluded from the above table, since they are revalued at the end of the fiscal year and their profits and losses are reflected in the Consolidated Statements of Income of the Bank or they are attached to foreign currency based receivables/payables, which are reflected in Consolidated Balance Sheets or eliminated in consolidation process. Set forth below are contractual values of foreign exchange related transactions reflected in the Statements of Income by revaluation at the dates indicated. Book Value Exchange-traded Currency Futures Sold - Bought 2,374 Over-the-Counter Foreign Exchange Forward Contracts Sold 4,470,577 Bought 4,232,189 Currency Options Sold 2,489,827 Bought 2,676,413 3. Equity Related Transactions Exchange-traded Equity Index Futures Sold 44,984 936 936 Bought 5,975 (125) (125) Equity Index Options Sold 90,597 8,058 (2,964) Bought 12,831 364 (159) Equity Options Sold 3,439 191 34 Bought 37,723 3,523 359 Over-the-Counter Forward Securities Agreement Sold - - - Bought 1,396 (40) (40) Equity Options Sold 20,728 1,618 2,815 Bought 7,135 2,565 2,438 Equity Index Swaps Fixed Interest Received / Dividends Equivalent Paid 1,493 52 52 Dividends Equivalent Received / Fixed Interest Paid 2,357 (11) (11) Receive or Pay Depending on Stock Price at Fixing Date 20,862 6,672 6,672 Total 4,067 10,006 Notes: The above Gain (Loss) is stated on the Consolidated Statements of Income. Derivatives Transactions to which hedge accounting is applied are excluded. - 24 -