FORM 6-K
SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
Report of Foreign Private Issuer
Pursuant to Rule 13a-16 or 15d-16 of
the Securities Exchange Act of 1934
For the month of November 2002
COMMISSION FILE NUMBER: 1-7239
KOMATSU LTD.
. . . . . . . . . . . . . . . . . . . . . . .
Translation of registrant's name into English
3-6 Akasaka 2-chome, Minato-ku, Tokyo, Japan
. . . . . . . . . . . . . . . . . . . . . . .
Address of principal executive offices
Indicate by check mark whether the registrant files or will file annual reports
under cover Form 20-F or Form 40-F.
Form 20-F X Form 40-F
----- -----
Indicate by check mark if the registrant is submitting the Form 6-K in paper as
permitted by Regulation S-T Rule 101(b)(1): ____
Indicate by check mark if the registrant is submitting the Form 6-K in paper as
permitted by Regulation S-T Rule 101(b)(7): ____
Indicate by check mark whether by furnishing the information contained in this
Form, the registrant is also thereby furnishing the information to the
Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
Yes No X
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If "Yes" is marked, indicate below the file number assigned to the registrant in
connection with Rule 12g3-2(b): 82-________
INFORMATION TO BE INCLUDED IN REPORT
1. A company announcement made on November 8, 2002
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
KOMATSU LTD.
-----------------------------
(Registrant)
Date: November 8, 2002 By: /s/ Kenji Kinoshita
-------------------------------
Kenji Kinoshita
Executive Officer
November 8, 2002
For Immediate Release
Komatsu Ltd.
2-3-6 Akasaka, Minato-ku,
Tokyo 107-8414, Japan
Corporate Communications Dept.
Tel: +81-(0)3-5561-2616
URL: http://www.komatsu.com/
KOMATSU ANNOUNCES CONSOLIDATED INTERIM RESULTS
FOR FISCAL 2003 AND OUTLOOK FOR THE REST OF THE YEAR
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The accompanying consolidated financial information is prepared in accordance
with generally accepted accounting principles in the United States of America.
Komatsu Ltd. posted consolidated net sales of (Yen)518.4 billion
(US$4,249 million, at US$1=(Yen)122) for the interim period of fiscal 2003
ending March 31, 2003, an increase of 2.6% from the corresponding period last
year. Income before income taxes for the period reached (Yen)5.6 billion (US$46
million) from loss before income taxes of (Yen)50.8 billion for the
corresponding period last year. Similarly, net income advanced to (Yen)1.8
billion (US$15 million) from a net loss of (Yen)42.6 billion.
Millions of yen and US dollar, except per share amounts
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2003 2002 2003
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Net sales (Yen) 518,429 (Yen) 505,455 $ 4,249
Japan 211,924 239,542 1,737
Overseas 306,505 265,913 2,512
Income (loss) before income taxes 5,652 (50,857) 46
Net income (loss) 1,858 (42,665) 15
Net income (loss) per share --- Basic (Yen) 1.95 (Yen) (44.69) (cents) 1.6
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1. Management Environment
Interim Results
In the construction and mining equipment business, China and the Middle East
generated high growth in demand. Market demand in Southeast Asia also sustained
a recovering momentum. Meanwhile, demand declined in the major markets of Japan,
North America and Europe from the corresponding period a year ago.
Under these conditions, Komatsu enjoyed high marks for its new
GALEO-series construction equipment also in overseas markets, which the Company
first launched in Japan last year, thus improving its overseas market shares
including North America and Europe. In addition to growing Chinese and Southeast
Asian markets, the Company also expanded sales of its construction equipment in
the Middle East and Africa where it has maintained its advantages as a full-line
manufacturer over competitors.
As a result, while global demand for construction equipment declined,
Komatsu successfully improved sales from the corresponding period last year and
achieved a significant improvement of operating income for the interim period,
supported also by benefits of reduced capacity costs.
In the electronics business, having removed major risks by recording
impairment losses on fixed assets in the previous fiscal year, Komatsu
proactively promoted reinforcement of the management structure for each unit for
self-driven reconstruction during the interim period.
When the semiconductor market recovered in the early part of the interim
period, Komatsu Electronic Metals Co., Ltd. improved earnings substantially by
increasing the ratio of prime wafers*
1
for Formosa Komatsu Silicon Corporation, while enhancing product competitiveness
mainly for 200mm wafers and improving productivity. Advanced Silicon Materials
LLC in the United States has consolidated production at its Butte Plant and
engaged in exclusive production of high value-added polycrystalline silicon for
semiconductors and monosilane gas, thereby facilitating the transformation of
its earnings structure. Meanwhile, Komatsu Electronics, Inc. experienced
sluggish sales of thermoelectric modules, reflecting continued restraints for
facilities investment by the telecommunications industry in the United States.
In other business segments, Komatsu Forklift Co., Ltd., the outdoor
power equipment machinery business of Komatsu Zenoah Co. and Komatsu Industries
Corporation implemented aggressive sales of new products with unique features in
Japan and overseas. While interim sales declined from the corresponding period
last year as adversely affected by sluggish market conditions mainly in Japan,
they expanded operating income over the previous corresponding period, thanks in
part to benefits of reduced capacity costs.
--------------------------------------------------------------------------------
* Prime wafers are delivered to customers not for testing but have the quality
for actual use in semiconductor devices.
2. Business Results by Operation
Construction and Mining Equipment
Consolidated net sales of the construction and mining equipment business totaled
(Yen)371.3 billion (US$3,044 million) for the interim period under review, up
5.2% from the corresponding period last year. Of this amount, Japanese sales
decreased 13.0%, to (Yen)112.7 billion (US$925 million), while overseas sales
expanded 15.7%, to (Yen)258.5 billion (US$2,120 million).
In the Japanese market, demand for construction equipment continued
to drop during the period. Under such a market environment, Komatsu broadened
the product range of the GALEO-series equipment and worked to secure sufficient
sales. The Company also continued its efforts to develop new demand in the
downstream markets such as the rental business, used equipment, parts and
services. The rental business of the Company doubled its efforts to promote the
comprehensive rental of civil engineering equipment through affiliated rental
companies. While accelerating export sales, particularly to Southeast Asia,
Komatsu worked to expand earnings by stepping up collaborations with Komatsu
Used Equipment Corp., a wholly owned subsidiary in charge of buying and selling
used equipment, and with Komatsu distributors in Japan. During the period,
Komatsu Used Equipment hosted its regular auctions, attracting many Japanese and
foreign customers and enjoying better results compared to previous auctions. In
the service business, Komatsu aggressively introduced the Komatsu All Support
product, a contract-based service package, which covers a wide range of areas,
from maintenance and repairs to compensations for damages caused by theft and
accidents. To meet the structural change of the Japanese market, the Company
also reassessed its sales operations and implemented a variety of new measures
including greater area coverage for major distributors. However, such efforts
fell short of overcoming the drop in demand. With respect to Japanese
production, the Company strove to improve and strengthen its earnings structure
by reducing production costs thoroughly under the company-wide Reform of
Business Structure project. While buoyant exports kept Komatsu's Japanese plants
busy during the period, compensating for the drop in Japanese demand, total
Japanese production by the Company for the period declined from the
corresponding period last year.
In North America, demand for construction equipment continued to
slide during the interim period. Against this backdrop, Komatsu America Corp.
steadily expanded its market share by reinforcing the sales capability of its
distributors, launching the GALEO-series equipment and accelerating their sales.
The company also established the North American Development Division, building
up its product development and support capabilities. For utility equipment, the
company embarked on full-scale production of backhoe loaders at the Newberry
Plant in South Carolina.
While demand for mining equipment downturned during the period from
strong demand in 2001, Komatsu America Corp. emphasized sales of large
bulldozers and other equipment whose demand showed a relatively moderate drop,
and repair and maintenance service contracts. As a
2
result, the company sustained total North American sales for the period at about
the same level from the corresponding period last year.
In Europe, construction equipment markets continued to decline as
affected by the sluggish demand in Germany, the largest European market.
However, Komatsu successfully expanded its market share and sales by launching
new models centering on locally produced ones such as wheel loaders by Komatsu
Hanomag AG, hydraulic excavators by Komatsu UK Ltd. and skid steer loaders by
Komatsu Utility Europe S.p.A.
In China, demand for construction equipment continued to advance
briskly, and Komatsu boosted sales of hydraulic excavators centering on those
made by Komatsu Shantui Construction Machinery Co., Ltd., a jointly owned
company with a Chinese partner. To meet market expansion, the Company also
placed further efforts to strengthen the sales and after-sales service
capabilities of Komatsu distributors.
In August 2002, Komatsu raised Komatsu Group's equity holding ratio
in Komatsu Shantui Construction Machinery to 60%, transforming the company into
a consolidated subsidiary of Komatsu. As a result, Komatsu is positioned to
expand the business of this new subsidiary more aggressively by playing a
leading role.
In Southeast Asia, Komatsu substantially enlarged its market share by
launching a renewed model of the GALEO-series equipment. Coupled with expanded
sales of mining equipment in Indonesia, Komatsu boosted sales of construction
and mining equipment at a rate higher than that of market demand in this region.
In the Oceania, Komatsu enjoyed brisk sales of PC200 renewed models,
and also expanded sales of mining equipment. As to Middle Eastern sales, the
Company enjoyed outstanding growth in sales by capturing market expansion in the
region. In Africa, in spite of falling demand, Komatsu implemented locally
tailored marketing particularly in South Africa, the largest African market,
gained substantial market shares and increased sales over the corresponding
period last year. In these regions where strong demand is generated for
bulldozers, wheel loaders, dump trucks and some other equipment including, of
course, hydraulic excavators, Komatsu capitalized on its advantages as a
full-line manufacturer of construction equipment and expanded sales.
Electronics
Consolidated sales of the electronics business improved 5.6% over the
corresponding interim period last year, to (Yen)43.3 billion (US$355 million)
for the interim period under review.
Komatsu Electronic Metals Co., Ltd. continued its efforts to secure
profits and improve its corporate strength. While reinforcing the product
competitiveness of 200mm silicon wafers, the main product of the company, and
undertaking aggressive sales activities in Japan and abroad, the company worked
to reorganize its production system for discrete wafers during the period. As a
result, Komatsu Electronic Metals improved consolidated sales for the period to
(Yen)32.5 billion (US$267 million) over the corresponding period last year,
thanks in part to recovered demand in the first half part of the interim period.
In terms of earnings, the company posted ordinary profit of (Yen)1.2 billion
(US$10 million), returning to the black. Anticipating the future market
expansion, the company also took phased steps forward to reinforce its
production capacity for 300mm wafers as scheduled. The company plans to increase
its monthly production capacity of 300mm wafers to 45,000 pieces by 2005.
Formosa Komatsu Silicon Corporation, a subsidiary of Komatsu
Electronic Metals, continued its efforts to further penetrate the market in not
only Taiwan but also China and Southeast Asia, while working to enhance its
production efficiency. As a result, the subsidiary improved the ratio of prime
wafers and reduced the amount of loss considerably.
Advanced Silicon Materials LLC. (ASiMI) consolidated production at
the end of the previous six-month period, based on its assessment that it would
take a long time until the present supply-and-demand gap for polycrystalline
silicon would be resolved. And ASiMI worked to convert its earnings structure by
focusing its production on high value-added products such as FZ rods and
monosilane gas and improving their productivity. As a result, sales for the
period remained
3
at about the same level from the previous corresponding period,
while the amount of loss was substantially reduced from the previous six-month
period.
In September this year, ASiMI established Solar Grade Silicon LLC, a
50-50 joint venture with Silicon Technologies AS, a subsidiary of Renewable
Energy Corporation AS of Norway. Solar Grade Silicon will produce
polycrystalline silicon for solar applications at the Moses Lake Plant which was
contributed by ASiMI as investment in kind. Renewable Energy Corporation plans
to finance the joint venture's technology development program and a majority of
their working capital requirements. ASiMI plans to steadily reduce its equity
holdings in the joint venture in the future, cutting back its holdings ratio to
25% in three years.
As for Komatsu Electronics, Inc., sales of thermoelectric modules
fell as adversely affected by continued restraints in investment in
telecommunication facilities in North America. As a result, earnings declined
from the corresponding period last year.
Others
Consolidated interim sales from other businesses totaled (Yen)103.6 billion
(US$850 million) for the interim period, down 6.9% from the previous
corresponding period.
Industrial Machinery Division of Komatsu faced further intensified
competition with Japanese and foreign press builders against the backdrop of a
growing shift to offshore production by Japanese automobile and automotive parts
manufacturers as well as progress of restructuring of the industry worldwide.
Under such an environment, the amount of facilities investment by the automobile
manufacturing industry also declined, and Division's sales of large presses for
the period decreased from the previous corresponding period. Meanwhile, sales to
Japan's Defense Agency remained strong with a slight decline from the
corresponding period last year.
Komatsu Industries Corporation concerted efforts to implement
proposal-oriented sales centering on products with unique features, such as the
H1F and H2F Hybrid AC Servo Press Series, while building up its overseas
business. Although sales of sheet metal machinery decreased, sales of
medium-sized presses and services continued to expand. As a result, the company
posted profits for the period at about the same level from the corresponding
period last year.
Komatsu Forklift Co., Ltd. launched Japanese sales of renewed models
of engine-driven forklift trucks, its stronghold product line, under the LEO-NXT
series. The company carried out aggressive sales activities of the LEO-NXT with
enhanced handling and traveling capabilities as well as the battery-driven ARION
Plus series. As a result, when total Japanese demand for forklift trucks fell
considerably, the company sustained sales for the period at a minimal decline.
Overseas, while demand dropped in the United States, the largest market of the
world, the company worked to secure sufficient sales volume and increased its
market share there. While European sales declined against the backdrop of
sluggish market conditions, Chinese, Southeast Asian and Middle Eastern sales
expanded. As a result, total overseas sales of forklift trucks were at about the
same level from the corresponding period last year. Consolidated sales of
Komatsu Forklift totaled (Yen)44.1 billion (US$362 million) for the period,
registering a slight decline from the previous corresponding period. However,
ordinary profit improved to (Yen)0.8 billion (US$7 million), thanks in part to
benefits of reduced capacity costs.
Komatsu Zenoah Co. advanced sales of outdoor equipment centering on EZ
Start brushcutters and chainsaws, which feature significantly improved ignition.
However, sales of ecology-oriented products such as chipper-shredders declined,
falling short of covering a drop in demand. Overseas, U.S. sales of outdoor
equipment decreased due to inventory adjustments as affected by the drought and
other factors. Meanwhile, European and Chinese sales of brushcutters, OEM-based
hobby engines and other products were buoyant, contributing to an increase in
overseas sales over the previous corresponding period. As a result, total sales
of agricultural and forestry equipment improved to (Yen)6.5 billion (US$53
million) from the corresponding period last year.
--------------------------------------------------------------------------------
Note: Financial figures of consolidated subsidiaries described above are based
on generally accepted accounting principles in Japan.
4
3. Conditions of Consolidated Cash Flows
For the interim period ended September 30, 2002, net cash provided by operating
activities amounted to (Yen)10.7 billion (US$88 million), primarily supported by
improved business results and reduced working capital, in spite of the
retirement benefits paid to voluntary retirees during the period in association
with the Reform of Business Structure project which was carried out in fiscal
2002. Net cash used in investing activities totaled (Yen)27.2 billion (US$223
million), largely as a result of production and sales investment as well as
purchase of assets under operating lease. Net cash provided by financing
activities increased to (Yen)27.7 billion (US$227 million) due to the issuance
of a 30-billion yen straight bond and other initiatives in preparation for
payments of retirement benefits to voluntary retirees as well as uncertainty of
the financial environment in the future. As a result, cash and cash equivalents
at the end of the interim period reached (Yen)56.3 billion (US$462 million), an
increase of (Yen)11.0 billion (US$90 million) from the previous fiscal year end,
including (Yen)5.3 billion (US$43 million) resulting from changes in
consolidation.
4. Important Decisions Made or Important Occurrences during the Year and
Important Subsequent Events
Komatsu Shantui Construction Machinery Transformed into Consolidated Subsidiary
In August 2002, Komatsu transformed Komatsu Shantui Construction Machinery Co.,
Ltd. a joint-venture manufacturing and sales company of medium-sized hydraulic
excavators in the rapidly growing Chinese market, into a consolidated
subsidiary. Komatsu (China) Ltd., a wholly owned subsidiary, acquired 20% of the
equity of the joint venture from Shantui Construction Machinery Co., Ltd., a
Chinese partner who previously owned 50% of the joint venture. Komatsu and
Komatsu (China) together own 60% of the equity of Komatsu Shantui Construction
Machinery now. Komatsu is determined to expand the business of this consolidated
subsidiary more aggressively in the Chinese hydraulic excavator market which
should sustain its rapid growth into the future.
Komatsu Forklift and Komatsu Zenoah Become Wholly Owned Subsidiaries
Effective October 1, 2002, Komatsu transformed Komatsu Forklift Co., Ltd. and
Komatsu Zenoah Co., both previously listed companies, into wholly owned
subsidiaries, each through stock for stock exchanges. As a result, Komatsu will
build a highly dynamic management structure based on more unified operations in
the area of construction equipment, transportation-related equipment and other
machinery businesses. As for the utility equipment business for which Komatsu
Zenoah is responsible, Komatsu and Komatsu Zenoah will further refine
cooperation in development and production capabilities to enhance their
management efficiency while maintaining their cost competitiveness. Concerning
the forklift truck business, Komatsu and Komatsu Forklift agreed on closer
cooperation within the Komatsu Group and will conduct more dynamic management in
order to facilitate further growth of the business in the market where
competition is intensifying on a global scale. Furthermore, Komatsu plans to
transform Komatsu Forklift into a joint-venture company to be owned by Komatsu
and Linde AG in order to strengthen its competitiveness on a global basis and
improve its profits.
Hitachi Construction Machinery and Komatsu Reach Basic Agreement for
Collaboration
In October 2002, Hitachi Construction Machinery Co., Ltd. and Komatsu reached a
basic agreement to collaborate in production and procurement, involving six
areas including common designs and cross supply of undercarriages for
super-large and mini hydraulic excavators. The collaboration aims at further
strengthening the cost competitiveness of the two companies. By defining this
agreement as the first phase of collaboration, the two are going to study the
ways to materialize collaborative relations. Both companies have no plans for
collaboration in sales and services or mutual capital participation.
5
5. Outlook for the Rest of Fiscal 2003
Komatsu anticipates its business environment will remain uncertain because of
growing concerns over future developments of the United States economy, further
reduction of Japanese construction investments resulting from structural
problems, and other unfavorable factors. Meanwhile, the Company is well
positioned to capitalize on its advantages as a full-line manufacturer of
construction equipment in the rapidly growing Chinese market, Southeast Asia,
the Middle East and Africa where signs for market recovery are emerging.
With the significantly improved interim results, Komatsu was able to make
the first footing toward a V-shaped recovery of its business performance. By
implementing important management tasks promptly and boldly, the Company is
determined to accomplish further improvement of business results.
Consolidated and nonconsolidated results for fiscal 2003 are projected as
follows as of today.
1) Consolidated
Net sales: (Yen) 1,070 billion (up 3.3%)
Income before income taxes: (Yen) 13 billion (up (YEN)119.7 billion)
Net income: (Yen) 7 billion (up (YEN)87.6 billion)
2) Nonconsolidated (Japanese GAAP)
Net sales: (Yen) 375 billion (down 2.1%)
Ordinary profit: (Yen) 7 billion (up 84.5%)
Net income: (Yen) 6 billion (up (YEN)47.8 billion)
Foreign exchange rates are premised at (YEN)121 to US$1 and (YEN)116 to EUR1 for
fiscal 2003.
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Cautionary Statement
The announcement set forth herein contains forward-looking statements
which reflect management's current views with respect to certain future
events, including expected financial position, operating results, and
business strategies. These statements can be identified by the use of
terms such as "will," "believes," "should," "projects" and similar terms
and expressions that identify future events or expectations. Actual
results may differ materially from those projected, and the events and
results of such forward-looking assumptions cannot be assured.
Factors that may cause actual results to differ materially from those
predicted by such forward-looking statements include, but are not limited
to, unanticipated changes in demand for the Company's principal products,
owing to changes in the economic conditions in the Company's principal
markets; changes in exchange rates or the impact of increased competition;
unanticipated cost or delays encountered in achieving the Company's
objectives with respect to globalized product sourcing and new Information
Technology tools; uncertainties as to the results of the Company's
research and development efforts and its ability to access and protect
certain intellectual property rights; and, the impact of regulatory
changes and accounting principles and practices.
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6
Management Policy
1. Basic Management Policy
The cornerstone of Komatsu's management lies in its commitment to Quality and
Reliability in order to maximize the corporate value of the Company. This
commitment is not limited to delivering safe and innovative products, services
and systems, which incorporate the viewpoints of customers. Komatsu is
continuing its efforts to enhance the Quality and Reliability of all
organizations, businesses, employees and management of the entire Komatsu Group.
It is the top management task of Komatsu to continue improving the Quality and
Reliability of these mentioned above.
2. Mid- and Long-Range Management Strategy and Issues Ahead
By defining the following four basic strategies as our mid-range management
strategy, we have been aggressively implementing a variety of measures to
facilitate growth and strengthen our corporate structure.
1) New growth strategy for the construction and mining equipment business,
2) Reduction of environmental stress and expansion of environmental business,
3) Focused attention to businesses in which Komatsu can maintain a
technological edge on a global scale, and
4) Attainment of competitive advantage by deploying IT or e-KOMATSU
During the interim period under review, while demand for construction
equipment in Asia and the Middle East expanded, we faced difficult business
conditions in our major markets as represented by the prolonged sluggish economy
in Japan and the economic slow down in the United States and Europe. To recover
our profitability and accomplish a V-shaped recovery, we have pressed on our
Reform of Business Structure project centering on the reduction of capacity
costs, sizeable cutbacks in production costs and acceleration of our New Growth
Strategy for the Construction and Mining Equipment Business.
We are committed to further strengthening our corporate governance to
enhance the corporate value of the entire Komatsu Group. At the same time, we
are determined to focus our efforts on the following four tasks to improve
Komatsu's profitability and ensure a V-shaped recovery of its business results.
1) To accelerate the implementation of the New Growth Strategy for the
Construction and Mining Equipment Business,
2) To reinforce the base for competitiveness by reducing capacity and
production costs,
3) To facilitate self-driven reconstruction of the electronics business, and
4) To promote reform based on the "Spirit of Manufacturers" concept.
Overseas demand for construction and mining equipment is set for medium and
long-term growth, while we should anticipate the ups and downs affected by
changing economic and business conditions. Under such an environment, it is most
important for Komatsu to constantly enhance its product competitiveness in order
to accelerate the implementation of the New Growth Strategy. As part of the
reform based on the "Spirit of Manufactures" commitment, our Development and
Production divisions are taking up the challenge of developing unrivaled
products and reinforcing our cost competitiveness as a unified team. We are well
prepared to enhance our presence in all markets around the world as we continue
to launch such products steadily.
In Japan, we are going to capitalize on the structural change of the market
for our business chance. By accelerating the pace of developing new business
models in the after-sales downstream markets such as rental, used equipment,
parts and services, in addition to the launching of new products, we are
determined to shape the construction and mining equipment business of the
future.
To strengthen our cost competitiveness, we reached a specific agreement
with Hitachi Construction Machinery Co., Ltd. for collaboration in the
production and joint procurement primarily of components for hydraulic
excavators in October this year. We are also going to consign the production of
wheel loader cabs to Volvo Construction Equipment in Europe. While keeping
7
fair competition with these alliance partners in sales and services, we are
going to build on collaborative relations within a framework that won't affect
our product originality, and get specific results in each collaboration.
While working to reduce costs at our overseas plants, we are also
determined to further add on the benefits of reduced capacity costs, thereby
reinforcing the earnings foundation of each business.
With respect to our electronics business, we will ensure that each business
unit will establish a management structure capable of meeting changes in the
respective market, thereby further promoting self-driven reconstruction.
3. Basic Policy for Dividends
Komatsu works to build a sound and stable financial position and flexible and
agile corporate strength. Concerning cash dividends to shareholders, the Company
maintains the basic policy of redistributing profits by taking payout ratios
into account and reflecting business results, as it secures sufficient internal
reserve for reinvestment.
4. Stance on the Lowering of Trading Unit of Shares
Komatsu has a policy to decide on the trading unit of shares of the Company
after considering the shareholder composition, liquidity, invested amounts and
the like. The Company will continue to study the matter while closely monitoring
developments on the stock market.
5. Measures to Strengthen Corporate Governance
To establish a system capable of quickly responding to the changes of its
business environment and fierce competition, Komatsu has been working to
strengthen corporate governance through such measures as the reform of its Board
of Directors and subsequent introduction of the Executive Officers and Global
Officers systems. To facilitate sufficient deliberation and quick decision
making on important management matters, Komatsu minimized the number of members
of the board. An external board director was also appointed to ensure the
transparency and objectivity of management.
Komatsu publishes the Komatsu's Code of Worldwide Business Conduct and
ensures all employees of Komatsu Group companies around the world understand how
important it is to observe the Rules of the Business Community. Komatsu,
primarily through the Compliance Committee and Compliance Department, has
organizationally been promoting complete observance of the laws of the countries
where the Company conducts business and the rules stipulated in the Komatsu's
Code of Worldwide Business Conduct.
8
Consolidated Financial Highlights
(For the six months ended September 30, 2002 and 2001)
Millions of yen & US dollars
except per share amounts
------------------------------------------------------------------------------------------------------------------------
Changes (2003-2002)
2003 2002 Increase (Decrease)
----------------------------------------------------------------------------------------------
Yen Dollar Yen Yen (%)
------------------------------------------------------------------------------------------------------------------------
Net sales 518,429 4,249 505,455 12,974 2.6
Japan 211,924 1,737 239,542 (27,618) (11.5)
Overseas 306,505 2,512 265,913 40,592 15.3
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Income (loss) before
Income taxes 5,652 46 (50,857) 56,509 ---
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Net income (loss) 1,858 15 (42,665) 44,523 ---
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Net income (loss)
Per share
Basic (Yen) 1.95 (cent) 1.6 (Yen) (44.69) (Yen) 46.64 ---
Diluted --- --- --- --- ---
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Notes: 1) Number of consolidated subsidiaries: 126 companies
Number of companies accounted for by the equity method: 50 companies
2) The translation of Japanese yen amounts into US dollar amounts is
included solely for convenience and has been made for 2003 at the rate
of (Y)122 to $1, the approximate rate of exchange at September 30,
2002.
Financial Position
(As of September 30, 2002 and 2001)
--------------------------------------------------------------------------------
2003 2002
--------------------------------------------------------------------------------
Total assets (Millions of yen) 1,301,373 1,300,430
--------------------------------------------------------------------------------
Shareholders' equity (Millions of yen) 383,123 424,210
--------------------------------------------------------------------------------
Equity ratio (%) 29.4 32.6
--------------------------------------------------------------------------------
Shareholders' equity per share (Yen) 401.87 444.45
--------------------------------------------------------------------------------
Projection for FY2003
(From April 1, 2002 to March 31, 2003)
Millions of yen
---------------------------------------------------------------------------------------------
Net sales Income before income taxes Net income
---------------------------------------------------------------------------------------------
The entire FY2003 1,070,000 13,000 7,000
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9
Condensed Consolidated Balance Sheets
(As of September 30, 2002 and 2001)
Millions of yen
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Changes
2003 2002 Increase (Decrease)
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(A) (B) (A)-(B)
Assets
Current assets:
Cash and cash equivalents (Yen) 56,396 (Yen) 29,138 (Yen) 27,258
Time deposits 682 2,764 (2,082)
Trade notes and accounts receivable 308,069 342,228 (34,159)
Inventories 260,451 253,713 6,738
Other current assets 102,534 102,195 339
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Total current assets 728,132 730,038 (1,906)
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Investments 63,393 83,483 (20,090)
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Property, plant, and equipment -
Less accumulated depreciation 415,698 397,665 18,033
-------------------------------------------------------------------------------------------------------------------------
Other assets 94,150 89,244 4,906
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Total 1,301,373 1,300,430 943
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Liabilities and Shareholders' Equity
Current liabilities:
Short-term debt (including current 180,626 191,595 (10,969)
maturities of long-term debt)
Trade notes and accounts payable 176,157 178,308 (2,151)
Income taxes payable 4,594 4,584 10
Other current liabilities 117,851 134,051 (16,200)
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Total current liabilities 479,228 508,538 (29,310)
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Long-term liabilities 389,786 321,564 68,222
-------------------------------------------------------------------------------------------------------------------------
Minority interests 49,236 46,118 3,118
-------------------------------------------------------------------------------------------------------------------------
Shareholders' equity:
Common stock 67,870 67,870 ---
Capital surplus 117,439 117,439 ---
Retained earnings 230,155 271,980 (41,825)
Accumulated other (28,947) (30,167) 1,220
Comprehensive income (loss) (*)
Treasury stock (3,394) (2,912) (482)
-------------------------------------------------------------------------------------------------------------------------
Total shareholders' equity - net 383,123 424,210 (41,087)
-------------------------------------------------------------------------------------------------------------------------
Total (Yen) 1,301,373 (Yen) 1,300,430 (Yen) 943
-------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------
Changes
2003 2002 Increase (Decrease)
-------------------------------------------------------------------------------------------------------------------------
(*) Accumulated other comprehensive income (loss):
Foreign currency translation adjustments (Yen) (18,000) (Yen) (23,022) (Yen) 5,022
Net unrealized holding gains on securities available 2,781 3,741 (960)
for sale
Pension liability adjustments (11,876) (10,518) (1,358)
Net unrealized holding gains (losses) on derivative (1,852) (368) (1,484)
instruments
10
Condensed Consolidated Statements of Income
(For the six months ended September 30, 2002 and 2001)
Millions of yen
---------------------------------------------------------------------
2003 2002 Changes
Increase(Decrease)
--------------------------------------------------------------------------------------------------------------------------
(A) (B) (A)-(B) (%)
Revenues
Net sales (Yen) 518,429 (Yen) 505,455 (Yen) 12,974 2.6
Interest and other income 7,753 15,993 (8,240)
--------------------------------------------------------------------------------------------------------------------------
Total 526,182 521,448 4,734 0.9
--------------------------------------------------------------------------------------------------------------------------
Costs and expenses
Cost of sales 384,909 381,666 3,243
Selling, general and administrative expenses 119,160 129,109 (9,949)
Interest expense 7,117 9,045 (1,928)
Other expense 9,344 52,485 (43,141)
--------------------------------------------------------------------------------------------------------------------------
Total 520,530 572,305 (51,775) (9.0)
--------------------------------------------------------------------------------------------------------------------------
Income (loss) before income taxes, minority
interests, and equity in earnings 5,652 (50,857) 56,509 ---
--------------------------------------------------------------------------------------------------------------------------
Income taxes 2,611 (5,502) 8,113
--------------------------------------------------------------------------------------------------------------------------
Minority interests in income (loss) of
consolidated subsidiaries - net (1,123) 2,123 (3,246)
--------------------------------------------------------------------------------------------------------------------------
Equity in earnings of
affiliated companies - net 205 567 (362)
--------------------------------------------------------------------------------------------------------------------------
Income (loss) before cumulative effect of change in
accounting principle 2,123 (42,665) 44,788
--------------------------------------------------------------------------------------------------------------------------
Cumulative effect of change in accounting principle (265) --- (265) ---
(*Notes2)
--------------------------------------------------------------------------------------------------------------------------
Net income (loss) (Yen) 1,858 (Yen) (42,665) (Yen) 44,523 ---
--------------------------------------------------------------------------------------------------------------------------
Notes: 1) Aggregated net comprehensive income (loss) for the periods ended
September 30, 2002 and 2001 were (8,696) million yen and (53,075)
million yen, respectively.
2) Goodwill impairment change as of April 1, 2002 from the adoption of
SFAS142.
11
Condensed Consolidated Statements of Cash Flows
(For the six months ended September 30, 2002 and 2001)
Millions of yen
---------------------------------------------------------------------------------------------------------------------------------
2003 2002 Changes
Increase(Decrease)
---------------------------------------------------------------------------------------------------------------------------------
(A) (B) (A)-(B)
---------------------------------------------------------------------------------------------------------------------------------
Operating activities
Net income (loss) (Yen) 1,858 (Yen) (42,665) (Yen) 44,523
Depreciation and amortization 33,411 31,474 1,937
Impairment loss on long-lived assets --- 38,394 (38,394)
Decrease (increase) in trade receivables 32,555 45,219 (12,664)
Decrease (increase) in inventories (706) 10,177 (10,883)
Increase (decrease) in trade payables (14,182) (32,278) 18,096
Others, net (42,147) (8,528) (33,619)
---------------------------------------------------------------------------------------------------------------------------------
Net cash provided by operating activities 10,789 41,793 (31,004)
---------------------------------------------------------------------------------------------------------------------------------
Investing activities
Capital expenditures (39,471) (24,316) (15,155)
Proceeds from sales of property 1,756 7,128 (5,372)
Others, net 10,504 (2,413) 12,917
---------------------------------------------------------------------------------------------------------------------------------
Net cash used in investing activities (27,211) (19,601) (7,610)
---------------------------------------------------------------------------------------------------------------------------------
Financing activities
Increase (decrease) in short- and long-term debt 31,068 (31,985) 63,053
Sales (repurchase) of common stock, net (460) 201 (661)
Dividends paid (2,864) (2,867) 3
---------------------------------------------------------------------------------------------------------------------------------
Net cash provided by (used in) financing activities 27,744 (34,651) 62,395
---------------------------------------------------------------------------------------------------------------------------------
Effect of exchange rate change on cash and cash equivalents (318) 19 (337)
---------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in cash and cash equivalents 11,004 (12,440) 23,444
Cash and cash equivalents, beginning of period 45,392 39,760 5,632
---------------------------------------------------------------------------------------------------------------------------------
Adjustments for change of fiscal period on consolidated --- 1,818 (1,818)
subsidiaries
---------------------------------------------------------------------------------------------------------------------------------
Cash and cash equivalents, end of period (Yen) 56,396 (Yen) 29,138 (Yen) 27,258
---------------------------------------------------------------------------------------------------------------------------------
12
Basis of Financial Statements (Consolidated)
1) Changes in group of entities
Consolidated subsidiaries
Addition: Komatsu Italia S.p.A, Komatsu Shantui Construction
Machinery Co., Ltd, and fourteen other companies
Removal: (merger) Komatsu Mining Systems, Inc., Komatsu Reman North
America, Inc. and other six companies
(liquidation) Komatsu Parts Ltd and one other company
(exclusion) Komatsu Miyagi Ltd.
Companies accounted for by the equity method
Addition: Solar Grade Silicon LLC and other eight companies
Removal: Komatsu Shantui Construction Machinery Co., Ltd
2) Adoption of New Accounting Standards
Starting in the interim period under review, the Company adopted the provisions
of Statement of Financial Accounting Standards ("SFAS") No. 142, "Goodwill and
Other Intangible Assets."
3) Subsequent Events
According to the stock-for-stock exchange agreement reached by Komatsu Ltd.,
Komatsu Forklift Co., Ltd and Komatsu Zenoah Co. on May 10, 2002, the three
companies carried out the concerned exchanges on October 1, 2002, and Komatsu
has issued common stock to shareholders of Komatsu Forklift and Komatsu Zenoah.
13
Business Segment Information
1. Information by Business Unit
(1) Sales and Operating Profit (Loss)
(For the six months ended September 30, 2002 and 2001)
Millions of yen
------------------------------------------------------------------------------------------------------------------------
2003 2002
------------------------------------------------------------------------------------------------------------------------
Operating Margin Operating Margin
Sales Profit (Loss) % Sales Profit(Loss) %
------------------------------------------------------------------------------------------------------------------------
Construction &
Mining Equipment 374,301 13,622 3.6 356,892 282 0.1
------------------------------------------------------------------------------------------------------------------------
Electronics 43,414 (46) (0.1) 41,199 (4,850) (11.8)
------------------------------------------------------------------------------------------------------------------------
Others 121,955 2,840 2.3 125,683 2,390 1.9
------------------------------------------------------------------------------------------------------------------------
Subtotal 539,670 16,416 3.0 523,774 (2,178) (0.4)
------------------------------------------------------------------------------------------------------------------------
Corporate &
Elimination (21,241) (2,056) --- (18,319) (3,142) --
------------------------------------------------------------------------------------------------------------------------
Total 518,429 14,360 2.8 505,455 (5,320) (1.1)
------------------------------------------------------------------------------------------------------------------------
Interest and other income 7,753 15,993
Interest expense 7,117 9,045
Other expenses 9,344 52,485
------------------------------------------------------------------------------------------------------------------------
Consolidated income (loss)
before income taxes 5,652 (50,857)
------------------------------------------------------------------------------------------------------------------------
Note: Sales amount of Construction & Mining Equipment, Electronics and Others
includes inter-segment transactions of 2,913, 63 and 18,265 millions of
yen in 2003 and 3,820, 151 and 14,348 millions of yen in 2002,
respectively.
(2) Assets, Depreciation, and Capital Expenditures
Millions of yen
-------------------------------------------------------------------------------------------------------------------------
2003 2002
-------------------------------------------------------------------------------------------------
As of For the six months ended As of For the six months ended
Sept. 30, 2002 Sept.30, 2002 Sept.30, 2001 Sept.30, 2001
-------------------------------------------------------------------------------------------------
Assets Depreciation Capital Assets Depreciation Capital
and Expenditures and Expenditures
Amortization Amortization
-------------------------------------------------------------------------------------------------------------------------
Construction &
Mining Equipment 853,190 21,090 23,568 836,855 18,051 20,241
-------------------------------------------------------------------------------------------------------------------------
Electronics 173,414 7,235 5,095 186,226 9,092 2,843
-------------------------------------------------------------------------------------------------------------------------
Others 227,869 3,933 6,223 241,184 3,772 5,606
-------------------------------------------------------------------------------------------------------------------------
Subtotal 1,254,473 32,258 34,886 1,264,265 30,915 28,690
-------------------------------------------------------------------------------------------------------------------------
Corporate &
Elimination 46,900 --- --- 36,165 14 ---
-------------------------------------------------------------------------------------------------------------------------
Total 1,301,373 32,258 34,886 1,300,430 30,929 28,690
-------------------------------------------------------------------------------------------------------------------------
Note: In fiscal 2002, the Company recorded impairment losses on assets in the
electronics segment.
14
2. Information by Region
(1) Sales and Operating Profit (Loss)
(For the six months ended September 30, 2002 and 2001)
Millions of yen
--------------------------------------------------------------------------------------------------------------------
2003 2002
-------------------------------------------------------------------------------------
Sales Operating Margin Sales Operating Margin
Profit % Profit (Loss) %
--------------------------------------------------------------------------------------------------------------------
Japan 339,091 10,043 3.0 336,342 (1,311) (0.4)
--------------------------------------------------------------------------------------------------------------------
Americas 137,953 107 0.1 133,174 (2,390) (1.8)
--------------------------------------------------------------------------------------------------------------------
Europe 69,550 1,707 2.5 57,967 1,388 2.4
--------------------------------------------------------------------------------------------------------------------
Others 66,051 3,122 4.7 49,555 (420) (0.8)
--------------------------------------------------------------------------------------------------------------------
Subtotal 612,645 14,979 2.4 577,038 (2,733) (0.5)
--------------------------------------------------------------------------------------------------------------------
Corporate & Elimination (94,216) (619) --- (71,583) (2,587) ---
--------------------------------------------------------------------------------------------------------------------
Total 518,429 14,360 2.8 505,455 (5,320) (1.1)
--------------------------------------------------------------------------------------------------------------------
Note: Sales amount of each region segment includes inter-segment transactions.
(2) Assets
(As of September 30, 2002 and 2001)
Millions of yen
----------------------------------------------------------------------------------------------------------
2003 2002
---------------------------------------------------------------------------
Assets Ratio(%) Assets Ratio(%)
----------------------------------------------------------------------------------------------------------
Japan 943,187 72.5 971,306 74.7
----------------------------------------------------------------------------------------------------------
Americas 328,263 25.2 314,375 24.2
----------------------------------------------------------------------------------------------------------
Europe 87,198 6.7 78,157 6.0
----------------------------------------------------------------------------------------------------------
Others 112,955 8.7 95,352 7.3
----------------------------------------------------------------------------------------------------------
Subtotal 1,471,603 113.1 1,459,190 112.2
----------------------------------------------------------------------------------------------------------
Corporate & Elimination (170,230) (13.1) (158,760) (12.2)
----------------------------------------------------------------------------------------------------------
Total 1,301,373 100.0 1,300,430 100.0
----------------------------------------------------------------------------------------------------------
3. Overseas Sales
(1) For the six months ended September 30, 2002
Millions of yen
------------------------------------------------------------------------------------------------------------------------
Americas Europe Others Total
------------------------------------------------------------------------------------------------------------------------
Overseas sales 128,118 71,728 106,659 306,505
------------------------------------------------------------------------------------------------------------------------
Consolidated net sales --- --- --- 518,429
------------------------------------------------------------------------------------------------------------------------
Ratio of overseas sales to consolidated net sales 24.7 13.8 20.6 59.1
------------------------------------------------------------------------------------------------------------------------
(2) For the six months ended September 30, 2001
Millions of yen
------------------------------------------------------------------------------------------------------------------------
Americas Europe Others Total
------------------------------------------------------------------------------------------------------------------------
Overseas sales 120,470 62,248 83,195 265,913
------------------------------------------------------------------------------------------------------------------------
Consolidated net sales --- --- --- 505,455
------------------------------------------------------------------------------------------------------------------------
Ratio of overseas sales to consolidated net sales 23.8 12.3 16.5 52.6
------------------------------------------------------------------------------------------------------------------------
Note: Overseas sales represent the sales of the company and its consolidated
subsidiaries to areas other than Japan.
15
Consolidated Sales by Operation
(For the six months ended September 30, 2002 and 2001)
Millions of yen
---------------------------------------------------------------------------------------------------------------------
2003 2002 Changes
Increase (Decrease)
----------------------------------------------------------------------------------
Sales Ratio(%) Sales Ratio(%) Sales (%)
---------------------------------------------------------------------------------------------------------------------
Construction
& Mining Japan 112,790 21.8 129,635 25.7 (16,845) (13.0)
Equipment -----------------------------------------------------------------------------------------------
Overseas 258,598 49.9 223,437 44.2 35,161 15.7
-----------------------------------------------------------------------------------------------
371,388 71.7 353,072 69.9 18,316 5.2
---------------------------------------------------------------------------------------------------------------------
Electronics Japan 23,468 4.5 23,789 4.7 (321) (1.3)
-----------------------------------------------------------------------------------------------
Overseas 19,883 3.8 17,259 3.4 2,624 15.2
-----------------------------------------------------------------------------------------------
43,351 8.3 41,048 8.1 2,303 5.6
---------------------------------------------------------------------------------------------------------------------
Others Japan 75,666 14.6 86,118 17.0 (10,452) (12.1)
-----------------------------------------------------------------------------------------------
Overseas 28,024 5.4 25,217 5.0 2,807 11.1
-----------------------------------------------------------------------------------------------
103,690 20.0 111,335 22.0 (7,645) (6.9)
---------------------------------------------------------------------------------------------------------------------
Total Japan 211,924 40.9 239,542 47.4 (27,618) (11.5)
-----------------------------------------------------------------------------------------------
Overseas 306,505 59.1 265,913 52.6 40,592 15.3
-----------------------------------------------------------------------------------------------
518,429 100.0 505,455 100.0 12,974 2.6
---------------------------------------------------------------------------------------------------------------------
16
Financial Instruments
(As of September 30, 2002 and 2001)
1. Derivative Financial Instruments
Millions of yen
-------------------------------------------------------------------------------------- ------------------------------------
2003 2002
-------------------------------------- ------------------------------------
Contract, Carrying Estimated Contract, Carrying Estimated
Notional Amounts Fair Value Notional Amounts Fair Value
Amounts Amounts
-------------------------------------------------------------------------------------- ------------------------------------
Foreign exchange contracts and 14,273 (602) (602) 5,081 112 112
option contracts
FY 2002
Purchase of foreign currencies
the equivalent of yen 20,636
Sale of foreign currencies
the equivalent of yen 23,700
Option contracts (Purchased)
the equivalent of yen 2,017
FY 2003
Purchase of foreign currencies
the equivalent of yen 22,968
Sale of foreign currencies
the equivalent of yen 31,985
Option contracts (Purchased)
the equivalent of yen 4,017
Option contracts (Sold)
the equivalent of yen 1,238
Interest rate swap, currency swap and 261,766 (4,706) (4,706) 290,080 (3,333) (3,333)
interest rate cap agreements
-------------------------------------------------------------------------------------- ------------------------------------
2. Marketable Securities and Investment Securities
Millions of yen
---------------------------------------------------------------------------------------- --------------------------------
2003 2002
---------------------------------------------------------------------------------------- --------------------------------
Investment securities available for sale
Marketable equity securities
Cost 23,171 32,789
Fair value 29,751 42,282
Gross unrealized holding gains 6,580 9,493
Marketable debt securities
Cost 1,407 1,004
Fair value 1,407 1,004
Gross unrealized holding gains 0 0
---------------------------------------------------------------------------------------- --------------------------------
17
Financial Highlights of the Parent Company
The following financial information is prepared based on the non-consolidated
financial results of the parent company in accordance with generally accepted
accounting principles and practices in Japan.
Financial Results
(For the six months ended September 30, 2002 and 2001)
Millions of yen & US dollars
except per share amounts
-------------------------------------------------------------------------------------------------------------------------
Changes(2003-2002)
2003 2002 Increase (Decrease)
---------------------------------------------------------------------------------------------------
Yen Dollar Yen Yen (%)
-------------------------------------------------------------------------------------------------------------------------
Net sales 174,491 1,430 183,367 (8,876) (4.8)
Japan 86,877 712 117,074 (30,196) (25.8)
Overseas 87,613 718 66,293 21,319 32.2
-------------------------------------------------------------------------------------------------------------------------
Operating Income 2,548 21 1,941 607 31.3
-------------------------------------------------------------------------------------------------------------------------
Ordinary Income 4,864 40 2,587 2,276 88.0
-------------------------------------------------------------------------------------------------------------------------
Net income (loss) 4,426 36 (21,909) 26,335 ---
-------------------------------------------------------------------------------------------------------------------------
Net income (loss) (Yen) 4.64 (cents) 3.8 (Yen) (22.85) (Yen) 27.49 ---
per share
-------------------------------------------------------------------------------------------------------------------------
Notes: 1) The translation of Japanese yen amounts into United States dollar
amounts is included solely for convenience and has been made for 2003
at the rate of (Yen) 122 to $1, the approximate rate of exchange at
September 30, 2002.
2) The numbers of average common shares outstanding were as follows:
. September 30, 2002 ---953,930,723
. September 30, 2001 ---958,921,701
. March 31, 2002 ---954,720,148
Dividends
(For the six months ended September 30, 2002 and 2001)
-------------------------------------------------------------------------------------------------------------
2003 2002
-------------------------------------------------------------------------------------------------------------
Cash dividends per share (Yen)
Interim 3.00 3.00
Year-end --- 3.00
-------------------------------------------------------------------------------------------------------------
Financial Position
(As of September 30, 2002 and 2001)
-------------------------------------------------------------------------------------------------------------
2003 2002
-------------------------------------------------------------------------------------------------------------
Total assets ((Yen) million) 676,642 704,622
-------------------------------------------------------------------------------------------------------------
Shareholders' equity ((Yen) million) 419,515 445,007
-------------------------------------------------------------------------------------------------------------
Equity ratio (%) 62.0 63.2
-------------------------------------------------------------------------------------------------------------
Shareholders' equity per share (Yen) 440.04 464.07
-------------------------------------------------------------------------------------------------------------
18
Sales by Operation
(For the six months ended September 30, 2002 and 2001)
Millions of yen
--------------------------------------------------------------------------------------------------------------------
2003 2002 Changes(2003-2002)
Increase (Decrease)
---------------------------------------------------------------------------------
Sales Ratio(%) Sales Ratio(%) Sales (%)
--------------------------------------------------------------------------------------------------------------------
Construction Japan 68,960 39.5 93,838 51.2 (24,877) (26.5)
& Mining ----------------------------------------------------------------------------------------------
Equipment Overseas 83,746 48.0 63,120 34.4 20,626 32.7
----------------------------------------------------------------------------------------------
152,707 87.5 156,958 85.6 (4,251) (2.7)
--------------------------------------------------------------------------------------------------------------------
Electronics Japan 1,421 0.8 2,001 1.1 (579) (29.0)
----------------------------------------------------------------------------------------------
Overseas 162 0.1 265 0.1 (102) (38.8)
----------------------------------------------------------------------------------------------
1,583 0.9 2,266 1.2 (682) (30.1)
--------------------------------------------------------------------------------------------------------------------
Others Japan 16,494 9.5 21,234 11.6 (4,739) (22.3)
----------------------------------------------------------------------------------------------
Overseas 3,704 2.1 2,908 1.6 796 27.4
----------------------------------------------------------------------------------------------
20,199 11.6 24,142 13.2 (3,942) (16.3)
--------------------------------------------------------------------------------------------------------------------
Total Japan 86,877 49.8 117,074 63.8 (30,196) (25.8)
----------------------------------------------------------------------------------------------
Overseas 87,613 50.2 66,293 36.2 21,319 32.2
----------------------------------------------------------------------------------------------
174,491 100.0 183,367 100.0 (8,876) (4.8)
--------------------------------------------------------------------------------------------------------------------
Projection for FY2003
(From April 1, 2002 to March 31, 2003)
Millions of yen
--------------------------------------------------------------------------------------------------------------------
Net sales Ordinary Income Net income
--------------------------------------------------------------------------------------------------------------------
The entire FY2003 375,000 7,000 6,000
--------------------------------------------------------------------------------------------------------------------
19