RNS Number:3209R
Toshiba Corporation
27 October 2003


  Toshiba Corporation and its Subsidiaries                                                                            
  Consolidated Interim Financial Statements                                                                           
  For the First Half of Fiscal Year 2003(April 1,2003 to September 30,2003)                                           
  Outline                                                                                                             
                                                (Yen in millions, US$ in thousands, except for earnings per share)      
                                                                                                                 
                                              1st Half    1st Half    (A)-(B)   (A)/(B)      FY2002      1st Half
                                             FY2003(A)   FY2002(B)                                         FY2003
        Net sales                            2,608,316   2,635,063   (26,747)       99%   5,655,778   $23,498,342
        Operating income (loss)               (11,999)       2,874   (14,873)               115,542     -$108,099
        Income (loss) before income taxes     (17,601)    (43,813)     26,212                53,123     -$158,568
        Net income (loss)                     (32,175)    (26,407)    (5,768)                18,503     -$289,865
        Basic earnings per share               (10.00)      (8.20)     (1.80)                  5.75        -$0.09

        Notes:                                                                                                   
        1) Consolidated Financial Statements are based on generally accepted 
           accounting principles in the U.S.                                    
        2) The company has 320 consolidated subsidiaries.                    
        3) The U.S.dollar is valued at Yen111 throughout this statement for convenience only.                           
                    
                                                                                                         
  Comparative Consolidated Statements of Operations                                        
  
      1. First Half ended September 30                     (Yen in millions, US$ in thousands) 
                                                                                                                      
                                                  1st Half     1st Half    (A)-(B)   (A)/(B)      FY2002      1st Half
                                                FY2003 (A)   FY2002 (B)                                         FY2003
  Sales and other income                                                                                              
                       Net sales                 2,608,316    2,635,063   (26,747)       99%   5,655,778   $23,498,342
                       Interest                      1,523        2,530    (1,007)       60%       4,599       $13,721
                       Dividends                     3,061        4,029      (968)       76%       8,782       $27,577
                       Other income                 47,432       27,323     20,109      174%      65,937      $427,315
  Costs and expenses                                                                                                  
                       Cost of sales             1,918,769    1,931,210   (12,441)       99%   4,146,460   $17,286,207
                       Selling, general and        701,546      700,979        567      100%   1,393,776    $6,320,234
                       administrative                                                                                 
                       Interest                     10,485       12,336    (1,851)       85%      24,257       $94,460
                       Other                        47,133       68,233   (21,100)       69%     117,480      $424,622
  Income (loss) before income taxes,              (17,601)     (43,813)     26,212                53,123     -$158,568
  Income taxes                                       9,831     (11,141)     20,972                48,532       $88,567
  Minority interest in income (loss)               (1,872)      (3,193)      1,321              (11,330)      -$16,865
  Equity in earnings of affiliates                 (6,615)        3,072    (9,687)                 2,582      -$59,595
  Net income (loss)                               (32,175)     (26,407)    (5,768)                18,503     -$289,865
 

                                                                                                             
  Note: Comprehensive loss for the first half of FY2003 and FY2002 was Y33,628 million and Y52,662 
  million, respectively. Comprehensive loss for FY2002 wasY 133,480 million.                       
                                                                                                                      
  2. Second Quarter ended September 30 (Unaudited)                                                                    
                                                                                    (Y in millions, US$ in thousands) 
                                                  Three months ended September 30                                     
                                                              2003 (A)    2002 (B)    (A)-(B)   (A)/(B)          2003 
  Sales and other income                                                                                              
                              Net sales                      1,491,090   1,443,944     47,146      103%   $13,433,243 
                              Interest                             752       1,070      (318)       70%        $6,774 
                              Dividends                            542       1,653    (1,111)       33%        $4,883 
                              Other income                      40,731      15,671     25,060      260%      $366,946 
  Costs and expenses                                                                                                  
                              Cost of sales                  1,099,037   1,061,760     37,277      104%    $9,901,234 
                              Selling, general and             362,742     353,049      9,693      103%    $3,267,946 
                              administrative                                                                          
                              Interest                           5,128       6,304    (1,176)       81%       $46,198 
                              Other                             32,899      51,772   (18,873)       64%      $296,387 
  Income (loss) before income taxes                             33,309    (10,547)     43,856                $300,081 
  Income taxes                                                  24,740       (596)     25,336                $222,883 
  Minority interest in income (loss)                             (682)     (3,062)      2,380                 -$6,144 
  Equity in earnings of affiliates                             (4,579)       (723)    (3,856)                -$41,252 
  Net income (loss)                                              4,672     (7,612)     12,284                 $42,090 
 

                                                                                                     
  Note: Comprehensive loss for the second quarter of FY2003 and FY2002 was Y18,907 
  million and Y16,169 million, respectively.                                       
                                                                                
  Comparative Consolidated Balance Sheets 
 

                                                                                                                      
                                                                                                       (Y in millions,
                                                                                                     US$ in thousands)

                                                           FY2003              FY2002     (A)-(B)               FY2003
                                                      As of Sept.   As of Mar.31,2003              As of Sept. 30,2003
                                                          30,2003                                                     
                                                              (A)                 (B)                                 
  Assets                                                                                                              
  Current assets                                        2,465,276           2,621,216   (155,940)          $22,209,694
                         Cash and cash                    291,099             327,098    (35,999)           $2,622,514
                         equivalents                                                                                  
                         Notes and accounts               895,278           1,089,540   (194,262)           $8,065,568
                         receivable, trade                                                                            
                         Finance receivables,             158,944             166,190     (7,246)           $1,431,928
                         net                                                                                          
                         Inventories                      718,868             629,659      89,209           $6,476,288
                         Prepaid expenses and             401,087             408,729     (7,642)           $3,613,396
                         other current assets                                                                         
  Long-term receivables                                    20,933              27,153     (6,220)             $188,586
  Long-term finance                                       235,878             260,361    (24,483)           $2,125,027
  receivables, net                                                                                                    
  Investments                                             379,895             396,059    (16,164)           $3,422,478
  Property, plant and                                   1,179,082           1,199,285    (20,203)          $10,622,360
  equipment                                                                                                           
  Other assets                                            766,725             734,862      31,863           $6,907,432
  Total assets                                          5,047,789           5,238,936   (191,147)          $45,475,577
  Liabilities and                                                                                                     
  shareholders' equity                                                                                                
  Current liabilities                                   2,473,773           2,618,777   (145,004)          $22,286,243
                         Short-term                       698,031             771,342    (73,311)           $6,288,567
                         borrowings and                                                                                
                         current portion of                                                                           
                         long-term debt                                                                               
                         Notes and accounts               906,832             981,970    (75,138)           $8,169,658
                         payable, trade                                                                               
                         Other current                    868,910             865,465       3,445           $7,828,018
                         liabilities                                                                                  
  Accrued pension and                                     932,998             950,997    (17,999)           $8,405,388
  severance costs                                                                                                     
  Long-term debt and                                      943,528             922,153      21,375           $8,500,252
  other liabilities                                                                                                   
  Minority interest in                                    169,959             175,945     (5,986)           $1,531,162
  consolidated                                                                                                        
  subsidiaries                                                                                                        
  Shareholders' equity                                    527,531             571,064    (43,533)           $4,752,532
                         Common stock                     274,926             274,926           -           $2,476,811
                         Additional paid-in               285,738             285,736           2           $2,574,216
                         capital                                                                                      
                         Retained earnings                420,227             462,058    (41,831)           $3,785,829
                         Accumulated other              (452,228)           (450,775)     (1,453)          -$4,074,126
                         comprehensive loss                                                                           
                         Treasury stock                   (1,132)               (881)       (251)             -$10,198
  Total liabilities                                     5,047,789           5,238,936   (191,147)          $45,475,577
  and shareholders'                                                                                                   
  equity                                                                                                              
  Breakdown of accumulated other comprehensive income (loss)                                                          
                         Unrealized gains on               21,475              15,636       5,839             $193,468
                         securities                                                                                   
                         Foreign currency                (72,160)            (59,589)    (12,571)            -$650,090
                         translation                                                                                  
                         adjustments                                                                                  
                         Minimum pension                (402,171)           (405,069)       2,898          -$3,623,162
                         liability adjustment                                                                         
                         Unrealized gain                      628             (1,753)       2,381               $5,658
                         (loss) on derivative                                                                         
                         instruments                                                                                  
  Total debt                                            1,610,815           1,653,368    (42,553)          $14,511,847
                                                                                     
  Comparative Consolidated Statements of Cash Flows 
                                                                                                                        
                                                                                                       (/ in millions,
                                                                                                     US$ in thousands)
                                                                   1st Half    1st Half                       1st Half
                                                                     FY2003      FY2002    (A)-(B)              FY2003
                                                                        (A)         (B)                               
  Cash flows from operating activities                                                                                
                       Net income (loss)                           (32,175)    (26,407)    (5,768)           -$289,865
                                            Depreciation and        117,768     126,457    (8,689)          $1,060,973
                                            amortization                                                              
                                            Equity in income          6,615     (3,072)      9,687             $59,594
                                            of affiliates                                                             
                                            Decrease in notes       213,144     209,222      3,922          $1,920,216
                                            and accounts                                                              
                                            receivable, trade                                                         
                                            Increase in            (93,144)    (59,883)   (33,261)           -$839,135
                                            inventories                                                               
                                            Decrease in notes      (67,510)    (78,953)     11,443           -$608,198
                                            and accounts                                                              
                                            payable, trade                                                            
                                            Others                 (18,224)    (91,009)     72,785           -$164,180
                       Adjustments to reconcile net income          158,649     102,762     55,887          $1,429,270
                       (loss) to net cash provided by                                                                 
                       operating activities                                                                           
                       Net cash provided by operating               126,474      76,355     50,119          $1,139,405
                       activities                                                                                     
  Cash flows from investing activities                                                                                
                       Proceeds from sale of property and            49,133     138,043   (88,910)            $442,640
                       securities                                                                                     
                       Acquisition of property and equipment      (104,565)   (137,634)     33,069           -$942,027
                       Purchase of securities                      (41,530)    (10,688)   (30,842)           -$374,144
                       Decrease (increase) in investments in          9,995     (5,302)     15,297             $90,045
                       affiliates                                                                                     
                       Others                                      (20,716)    (14,816)    (5,900)           -$186,631
                       Net cash used in investing activities      (107,683)    (30,397)   (77,286)           -$970,117
  Cash flows from financing activities                                                                                
                       Proceeds from long-term debt                 139,843     197,736   (57,893)          $1,259,847
                       Repayment of long-term debt                (125,781)   (102,247)   (23,534)         -$1,133,162
                       Decrease in short-term borrowings           (52,797)   (193,949)    141,152           -$475,649
                       Dividends paid                              (10,876)        (17)   (10,859)            -$97,982
                       Others                                         (428)          84      (512)             -$3,855
                       Net cash used in financing activities       (50,039)    (98,393)     48,354           -$450,801
  Effect of exchange rate changes on cash and cash equivalents      (4,751)     (6,894)      2,143            -$42,802
  Net decrease in cash and cash equivalents                        (35,999)    (59,329)     23,330           -$324,315
  Cash and cash equivalents at beginning of the period              327,098     370,432   (43,334)          $2,946,829
  Cash and cash equivalents at end of the period                    291,099     311,103   (20,004)          $2,622,514
                                                                                               
  Industry Segment Information                                         
  
1. First Half ended September 30                                                     (/ in millions, US$ in thousands)
                                                                                                                      
                                                   1st Half    1st Half    (A)-(B)   (A)/(B)      FY2002      1st Half
                                                  FY2003(A)   FY2002(B)                                         FY2003
  Net sales (Share of   Digital Products            956,793     996,611   (39,818)       96%   2,072,971    $8,619,757
  total sales)                                          33%         34%        -1%                   33%                
                                                       
                        Electronic Devices          627,467     631,828    (4,361)       99%   1,274,443    $5,652,856
                                                        22%         21%         1%                   20%              
                        Social Infrastructure       730,034     759,235   (29,201)       96%   1,822,597    $6,576,883
                                                        25%         26%        -1%                   29%              
                        Home Appliances             313,467     320,492    (7,025)       98%     633,600    $2,824,027
                                                        11%         11%        (-)                   10%              
                        Others                      252,861     231,875     20,986      109%     491,111    $2,278,027
                                                         9%          8%         1%                    8%              
                        Total                     2,880,622   2,940,041   (59,419)       98%   6,294,722   $25,951,550
                                                       100%        100%                             100%              
                        Eliminations              (272,306)   (304,978)     32,672             (638,944)   -$2,453,208
                                                                                                                      
                        Consolidated              2,608,316   2,635,063   (26,747)       99%   5,655,778   $23,498,342
                                                                                                                      
  Operating income      Digital Products           (28,149)       9,388   (37,537)                24,828     -$253,595
  (loss)                                                                                                              
                        Electronic Devices           26,595       5,860     20,735      454%      31,853      $239,595
                        Social Infrastructure      (15,131)    (21,016)      5,885                39,178     -$136,315
                        Home Appliances             (4,709)       2,503    (7,212)                 4,134      -$42,424
                        Others                        9,207       6,384      2,823      144%      15,532       $82,946
                        Total                      (12,187)       3,119   (15,306)               115,525     -$109,793
                        Eliminations                    188       (245)        433                    17        $1,694
                        Consolidated               (11,999)       2,874   (14,873)               115,542     -$108,099
                                                                                                       
  2. Second Quarter ended September 30 (Unaudited)                                   (/ in millions, US$ in thousands)
 
                                                             Three months ended September 30                          
                                                              2003(A)     2002(B)    (A)-(B)   (A)/(B)            2003
  Net sales (Share of   Digital Products                      525,718     530,612    (4,894)       99%     $ 4,736,198
  total sales)                                                    32%         33%        -1%                            
                                                                  
                        Electronic Devices                    340,466     336,600      3,866      101%     $ 3,067,261
                                                                  21%         21%        (-)                          
                        Social Infrastructure                 464,290     457,467      6,823      101%     $ 4,182,793
                                                                  28%         28%        (-)                          
                        Home Appliances                       157,597     159,165    (1,568)       99%     $ 1,419,793
                                                                  10%         10%        (-)                          
                        Others                                141,541     123,302     18,239      115%     $ 1,275,144
                                                                   9%          8%         1%                          
                        Total                               1,629,612   1,607,146     22,466      101%     $14,681,189
                                                                 100%        100%                                     
                        Eliminations                        (138,522)   (163,202)     24,680             $ (1,247,946)
                                                                                                                    $-
                        Consolidated                        1,491,090   1,443,944     47,146      103%     $13,433,243
                                                                                                                      
  Operating income      Digital Products                     (10,803)       6,783   (17,586)                 $(97,324)
  (loss)                                                                                                              
                        Electronic Devices                     19,612      12,009      7,603      163%        $176,685
                        Social Infrastructure                  17,039       7,321      9,718      233%        $153,504
                        Home Appliances                       (3,230)          11    (3,241)                 $(29,099)
                        Others                                  6,996       3,652      3,344      192%         $63,027
                        Total                                  29,614      29,776      (162)       99%        $266,793
                        Eliminations                            (303)       (641)        338                 $ (2,730)
                        Consolidated                           29,311      29,135        176      101%        $264,063
  Notes:                                                                                                              
 

                                                                                                       
  1) Segment information is based on Japanese accounting standards.                     
  2) Certain reclassifications of previously reported amounts have been made to conform with current classifications.   
  3) Segment sales totals include intersegment transactions.                            
 

                                                                           
  Geographic Segment Information 
 

                                                                                                                      
                                                                                                   (/ in millions, US$
                                                                                                         in thousands)
                                         1st Half    1st Half    (A)-(B)   (A)/(B)        FY2002              1st Half
                                        FY2003(A)   FY2002(B)                                                   FY2003
  Net sales (Share     Japan            2,302,633   2,294,435      8,198      100%     4,943,111           $20,744,442
  of total sales)                             67%         65%         2%                     67%                        
                                             
                       North America      333,094     424,118   (91,024)       79%       804,735           $ 3,000,847
                                              10%         12%        -2%                     11%                      
                       Asia               558,342     545,273     13,069      102%     1,085,259           $ 5,030,108
                                              16%         16%        (-)                     15%                      
                       Europe             218,806     225,260    (6,454)       97%       491,827           $ 1,971,225
                                               6%          6%        (-)                      6%                      
                       Others              30,322      29,389        933      103%        57,810              $273,171
                                               1%          1%        (-)                      1%                      
                       Total            3,443,197   3,518,475   (75,278)       98%     7,382,742           $31,019,793
                                             100%        100%                               100%                      
                       Eliminations     (834,881)   (883,412)     48,531             (1,726,964)         $ (7,521,451)
                       Consolidated     2,608,316   2,635,063   (26,747)       99%     5,655,778           $23,498,342
  Operating income     Japan             (12,345)     (9,024)    (3,321)                  89,780            $(111,216)
  (loss)                                                                                                              
                       North America        (270)       4,838    (5,108)                  11,722             $ (2,433)
                       Asia                 3,478      14,837   (11,359)       23%        24,540               $31,333
                       Europe             (2,793)     (2,250)      (543)                 (3,197)             $(25,162)
                       Others               (462)       (200)      (262)                   (286)             $ (4,162)
                       Total             (12,392)       8,201   (20,593)                 122,559            $(111,640)
                       Eliminations           393     (5,327)      5,720                 (7,017)                $3,541
                       Consolidated      (11,999)       2,874   (14,873)                 115,542            $(108,099)
  Notes:                                                                                                              
                                                                                        
  1) Segment information is based on Japanese accounting standards.
  2) Segment sales totals include intersegment transactions.
                                                                                               
  Net Sales by Region                                                  
  1. First Half ended September 30                                          (/ in millions, US$ in thousands)
                                         1st Half    1st Half     (A)-(B)   (A)/(B)      FY2002      1st Half
                                        FY2003(A)   FY2002(B)                                          FY2003
          Japan                         1,593,884   1,516,620      77,264      105%   3,343,551   $14,359,315
                                              61%         58%          3%                   59%              
          Overseas                      1,014,432   1,118,443   (104,011)       91%   2,312,227   $ 9,139,027
                                              39%         42%         -3%                   41%              
                      North America       344,810     453,539   (108,729)       76%     860,306   $ 3,106,396
                                              13%         17%         -4%                   15%              
                      Asia                390,617     381,698       8,919      102%     837,845   $ 3,519,072
                                              15%         14%          1%                   15%              
                      Europe              222,633     234,356    (11,723)       95%     509,620   $ 2,005,703
                                               9%          9%         (-)                    9%              
                      Others               56,372      48,850       7,522      115%     104,456      $507,856
                                               2%          2%         (-)                    2%              
          Net Sales                     2,608,316   2,635,063    (26,747)       99%   5,655,778   $23,498,342
                                             100%        100%                              100%              
 

                                                                                                       
          2. Second Quarter ended September 30 (Unaudited)             (/ in millions, US$ in thousands) 
                                                                           
                                            Three months ended September 30 
                                               FY2003(A)   FY2002(B)    (A)-(B)   (A)/(B)          2003
                 Japan                           896,720     836,327     60,393      107%   $ 8,078,559
                                                     60%         58%         2%                        
                 Overseas                        594,370     607,617   (13,247)       98%   $ 5,354,685
                                                     40%         42%        -2%                        
                             North America       202,136     250,450   (48,314)       81%   $ 1,821,045
                                                     14%         17%        -3%                        
                             Asia                230,942     208,774     22,168      111%   $ 2,080,559
                                                     16%         14%         2%                        
                             Europe              125,652     124,136      1,516      101%   $ 1,132,000
                                                      8%          9%        -1%                        
                             Others               35,640      24,257     11,383      147%      $321,081
                                                      2%          2%        (-)                        
                 Net Sales                     1,491,090   1,443,944     47,146      103%   $13,433,244
                                                    100%        100%                                   
                 Notes:                                                                                
                                                                                                 
                 1) Segment information is based on Japanese accounting standards.               
                 2) Net sales by region is determined based upon the locations of the customers. 
                                                                                                 
                 Toshiba Corporation                                                       
                 Non-Consolidated Interim Financial Statements                             
                 For the First Half of Fiscal Year 2003(April 1,2003 to September 30,2003) 
 

                                                                                                                      
  Outline                                                                                                             
                                                                                                       (/ in millions,
                                                                                                     US$ in thousands,
                                                                                                      except for items
                                                                                                   marked by asterisk)
                              1st Half           1st Half    (A)-(B)   (A)/(B)             FY2002             1st Half
                             FY2003(A)          FY2002(B)                                                       FY2003
  Sales                      1,459,616          1,554,965   (95,349)       94%          3,408,251          $13,149,694
  Recurring profit            (14,014)           (22,489)      8,475                       43,378            -$126,252
  (loss)                                                                                                              
  Net income                   (2,466)             47,110   (49,576)                       83,364             -$22,216
  (loss) after                                                                                                        
  taxes                                                                                                               
  Net income                    (0.77)              14.64    (15.41)                        25.90               (0.01)
  (loss)per share*                                                                                                    
  Dividend per                (Interim           (Interim                               (Ordinary                     
  share*                     dividend)          dividend)                               dividend)                     
                                     -                  -          -                         3.00                $0.00
 

                                                                                                        
  Notes: The U.S.dollar is valued at Y111 throughout this statement for convenience only. 
                                                                                               
  Comparative Non-Consolidated Statement of Income And Retained Earnings 
 

                                                                                                                      
                                                                                                (/ in millions, US$ in
                                                                                                            thousands)
                                    1st Half    1st Half    (A)-(B)   (A)/(B)      FY2002                     1st Half
                                   FY2003(A)   FY2002(B)                                                        FY2003
  (Ordinary income)                                                                                                   
  Operating income & expenses                                                                                         
  Net sales                        1,459,616   1,554,965   (95,349)        94   3,408,251                  $13,149,694
  Cost of sales                    1,179,933   1,276,531   (96,598)        92   2,763,145                  $10,630,027
                                     308,735     308,343        392       100     609,916                  $ 2,781,396
  Net operating income              (29,052)    (29,908)        856         -      35,188                   $(261,730)
  (expenses)                                                                                                          
  (Non-operating income &                                                                                             
  expenses)                                                                                                           
  Non-operating income (a)            48,513      47,617        896       102      78,512                     $437,054
  Non-operating expenses (b)          33,476      40,197    (6,721)        83      70,322                     $301,586
  (a)-(b)                             15,037       7,419      7,618       203       8,189                     $135,468
  Recurring profit (loss)           (14,014)    (22,489)      8,475         -      43,378                   $(126,252)
                                                                                                                      
  (Extraordinary gains &                                                                                              
  losses)                                                                                                             
  Extraordinary gains(c)              26,130     112,627   (86,497)        23     133,672                     $235,405
  Extraordinary losses(d)             13,955      12,782      1,173       109      43,379                     $125,721
  (c)-(d)                             12,174      99,845   (87,671)        12      90,293                     $109,676
                                                                                                                      
  Income (loss) before taxes         (1,839)      77,355   (79,194)         -     133,671                    $(16,568)
  Net income (loss) after taxes      (2,466)      47,110   (49,576)         -      83,364                    $(22,216)
                                     129,449    (13,155)    142,604         -    (13,155)                  $ 1,166,207
  Transfer from earned surplus             -      68,730   (68,730)         -      68,730                           $-
  reserve                                                                                                             
  Losses on disposal of                    -           -          -         -        (15)                           $-
  treasury stock                                                                                                      
  Unappropriated retained            126,982     102,684     24,298       124     138,923                  $ 1,143,982
  earnings for the period                                                                                             
                                                                                  
  Comparative Non-Consolidated Balance Sheets 
 

                                                                                                                      
                                                                                                       (/ in millions,
                                                                                                     US$ in thousands)
                                                   FY 2003 (A)As of    FY 2002 (B)As of    (A)-(B)        FY 2003As of
                                                       Sept.30,2003         Mar.31,2003                   Sept.30,2003
  Assets                                                                                                              
                        Current assets                    1,164,826           1,232,957   (68,131)        $ 10,493,928
                        Fixed assets                      1,637,843           1,644,848    (7,005)        $ 14,755,342
  (Tangible fixed assets)                                   468,865             479,203   (10,338)          $4,224,009
  (Intangible fixed assets)                                  41,383              42,713    (1,330)           $ 372,820
  (Investments & others)                                  1,127,595           1,122,931      4,664        $ 10,158,514
  Total assets                                            2,802,670           2,877,805   (75,135)        $ 25,249,279
  Liabilities                                                                                                         
                        Current liabilities               1,299,022           1,384,089   (85,067)        $ 11,702,901
                        Long-term liabilities               811,931             785,133     26,798          $7,314,694
  Total liabilities                                       2,110,953           2,169,222   (58,269)        $ 19,017,595
  Capital                                                                                                             
                        Capital stock                       274,926             274,926          -          $2,476,811
                        Capital surplus                     262,653             262,650          3          $2,366,243
                        Retained earnings                   140,485             152,608   (12,123)          $1,265,631
                        (Unappropriated                     126,982             138,923   (11,941)          $1,143,982
                        retained                                                                                      
                        earnings for the                                                                              
                        period)                                                                                       
  Unrealized gains on revaluation,' net of                   14,784              18,481    (3,697)           $ 133,189
  tax effect                                                                                                          
  Treasury stock                                            (1,132)                (83)    (1,049)          $ (10,198)
  Total capital                                             691,716             708,583   (16,867)          $6,231,676
  Total liabilities & capital                             2,802,670           2,877,805   (75,135)        $ 25,249,279
                                                                                                               
  Accounting Policy                                                                                      
  
 1.Method of valuation of securities                                                                    
   Marketable securities are valued at the market value by the moving average method.                     
 2.Method of valuation of inventories                                                                   
   Finished and semi-finished products are valued at original cost based on the specific identification    
   method, or at lower-of -cost-or-market method based on the moving average method.Work-in-process       
   is valued at original cost based on the specific identification method, or at lower-of -cost-or-market 
   method based on the weighted average method. Raw materials are valued at original cost or              
   lower-of-cost-or-market method, based on the moving average method.                                    
 3.Method of depreciation for tangible fixed assets                                                     
   Method of depreciation for tangible fixed assets is the declining balance method. However, for         
   buildings acquired on or after April 1, 1998(excluding appurtenant equipment), the straight-line       
   method is applied. For example, the depreciable lives of buildings and structures are 3 to 50 years,   
   and the lives of machines and equipments are 3 to 18years.                                             


                      This information is provided by RNS
            The company news service from the London Stock Exchange
END

IR MRBATMMITMAJ