FORM 6-K
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
REPORT OF FOREIGN PRIVATE ISSUER
INTERIM BUSINESS REPORT COVERING THE FIRST HALF OF THE 84TH FISCAL YEAR
PURSUANT TO RULE 13a-16 OR 15d-16
UNDER THE SECURITIES EXCHANGE ACT OF 1934
For the six-month ended September30, 2002
For the month of December 6 , 2002
---------------------
Commission File Number
-------------------
MITSUI & CO., LTD.
(Translation of registrant's name into English)
2-1, OHTEMACHI 1-CHOME CHIYODA-KU, TOKYO 100-0004 JAPAN
(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file annual reports
under cover of 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):
----
Note: Regulation S-T Rule 101(b)(1) only permits the submission in paper of a
Form 6-K if submitted solely to provide an attached annual report to security
holders.
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):
----
Note: Regulation S-T Rule 101(b)(7) only permits the submission in paper of a
Form 6-K if submitted to furnish a report or other document that the registrant
foreign private issuer must furnish and make public under the laws of the
jurisdiction in which the registrant is incorporated, domiciled or legally
organized (the registrant's "home country"), or under the rules of the home
country exchange on which the registrant's securities are traded, as long as the
report or other document is not a press release, is not required to be and has
not been distributed to the registrant's security holders, and, if discussing a
material event, has already been the subject of a Form 6-K submission or other
Commission filing on EDGAR.
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]
If "Yes" is marked, indicate below the file number assigned to the registrant in
connection with Rule 12g3-2(b): 82-
----------
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.
Date: December 6, 2002
MITSUI & CO., LTD.
By: /s/ Tasuku Kondo
-----------------------------
Name: Tasuku Kondo
Title: Executive Director
Senior Executive Managing Officer
Chief Financial Officer
INTERIM BUSINESS REPORT
Enclosed Herewith Is Our Interim Business Report
Covering the First Half of the 84th Fiscal Year.
MITSUI & CO., LTD.
2-1, Ohtemachi 1-chome,
Chiyoda-ku, Tokyo 100-0004,
Japan
CONTENTS
--------------------------------------------------------------------------------
To Our Shareholders and Friends ............................................ 1
Results of Operations ...................................................... 2
Corporate Data ............................................................. 5
Board of Directors and Corporate Auditors .................................. 6
Balance Sheet .............................................................. 7
Statement of Income ........................................................ 8
Results of Operations (Consolidated Basis) ................................. 9
Condensed Consolidated Financial Statements ................................ 10
Operating Segment Information .............................................. 12
Shareholder Information .................................................... 14
TO OUR SHAREHOLDERS AND FRIENDS
-------------------------------------------------------------------
I, Shoei Utsuda, am pleased to present this, my first report to shareholders
since assuming the office of President and Chief Executive Officer of Mitsui &
Co., Ltd., on October 1, 2002. I would like to take this opportunity to review
briefly developments during the interim period, which began April 1, 2002, and
ended September 30, 2002.
During the period, the world economy entered a period of gradual recovery,
supported by economic expansion in the United States. World trade and investment
also showed gradually increasing signs of bottoming out. In the U.S. economy,
rising incomes, low interest rates, and other factors led to strength in
consumer spending and private housing investment, while corporate profitability
began to increase, thus leading to firmness in economic trends. In Japan,
although the economy bottomed out--as exports expanded, supported by the
recovery in the world economy and the completion of inventory adjustments, stock
prices were weak owing to the problems arising with the disposal of
non-performing loans, and deflationary conditions continued to be unchecked.
Amid these conditions, net income on a non-consolidated basis rose
slightly from the interim period of the previous fiscal year, to Yen 8.5
billion. Similarly, on a consolidated basis, net income also increased year on
year, to Yen 24.8 billion. We declared a dividend of Yen 4 per share for the
interim period, the same as for the interim term of the previous fiscal year.
During the second half of the current fiscal year, we are forecasting a
more challenging business environment, as the U.S. economy shows signs of little
progress and uncertainties grow regarding the world economy, while deflationary
conditions continue in Japan. However, the management and all the staff of the
Company are committed to working toward further improving our earning
capability.
I would like to express my deepest apologies for the concern caused by the
series of incidents during the period in which Mitsui staff members were
involved, beginning with the indictment of certain personnel on charges of
having interfered illegally in the bidding process for a diesel-powered electric
power generation plant on Kunashiri Island. All management and staff will
continue to exert their utmost efforts to recover the trust and confidence of
society. We earnestly ask for the continuing support and encouragement of our
shareholders.
December 2002
Shoei Utsuda
President and Chief Executive Officer
1
RESULT OF OPERATIONS
-------------------------------------------------------------------
(For the interim period April 1, 2002, to September 30, 2002)
OPERATING ENVIRONMENT
The principal features of the economic environment influencing the performance
of Mitsui & Co., Ltd. (hereinafter, the Company), during the interim period
under review included the following: The world economy entered a period of
gradual, simultaneous recovery due to expansion in the U.S. economy, a bottoming
out of IT-related demand along with progress in inventory adjustments, the
adoption of active fiscal and monetary policies by various countries, and other
factors.
On the other hand, unsettled conditions continued in financial and
currency markets along with declines in stock prices, the weakening of the
dollar, and other developments, which caused increased uncertainty about future
trends, leading to a divergence between the monetary and real economies. In
international commodity markets, oil prices remained at a high level, owing to
growing tensions in the Middle East and other factors, and grain prices
continued to be strong because of unfavorable weather conditions.
By geographical area, the U.S. economy showed solid expansion and
corporate profits began to rise against a background of strong consumption and
housing investment. However, capital investment in the telecommunications sector
remained stagnant.
In the economies of Europe, recovery was under way, underpinned by
expansion in exports. But, the recovery pace was very modest because of sluggish
domestic demand. Consumption and capital investment failed to show strength due
to continued high unemployment and declines in stock prices.
The economies of Asia reported steady recoveries, thanks to increases in
exports as inventory adjustments in IT-related goods were completed and demand
began to bottom out. In addition, overall domestic demand in these economies was
firm, owing to the positive impact of fiscal and monetary policies and the
emergence of latent demand for durable consumption goods, which had been
suppressed since the currency crises. In the Chinese economy, rapid economic
growth continued as a result of a number of factors, including increased
incoming foreign direct investment as a result of China's entry into the WTO,
the positive impact of aggressive fiscal and monetary policies, and the increase
in exports supported by the movement of foreign companies into China.
The Japanese economy bottomed out as exports expanded, supported by the
recovery in the world economy and increases in industrial production following
the completion of inventory adjustments. However, domestic demand remained
relatively weak, and the economy lacked strong recovery momentum, while
deflation continued because of a combination of weakness in final demand and the
influx of low-cost goods from the rest of Asia.
Consumer spending in Japan remained relatively weak because of stagnation
in employment and income levels combined with uncertainty about future trends
among consumers. Private capital investment showed signs of bottoming out, as
corporate profitability reached bottom, but capital spending continued to be
restrained because of the movement of production facilities overseas and other
structural factors.
Measures to stimulate the domestic economy, principally monetary policies,
were continued, but their effects were marginal, and, owing to such developments
as further declines in stock prices because of uncertainties surrounding the
disposal of non-performing loans, the road to a sustainable recovery remains
steep and difficult.
OPERATING PERFORMANCE
Amid this environment, Mitsui's non-consolidated sales and profits for the
interim period were as follows.
SALES
Mitsui's non-consolidated sales for the interim period under review declined
4.6% in comparison with the first half of the previous fiscal year, to
Yen 4,433.3 billion. Sales of metal products and minerals as well as consumer
products and services increased, but as a result of declines in sales of
machinery, electronics and information as well as sales of domestic branches and
offices, overall sales declined Yen 214.1 billion.
By type of trade, exports rose 2.6% over the same period of the previous
year, owing to higher sales of chemicals, metals products and minerals, and
certain other categories, despite a decline in industrial plant exports within
machinery, electronics and information as well as certain other categories.
Imports dropped 5.8%, as declines were reported generally in imports of domestic
trading branches and offices as well as other categories. Offshore trade
increased 4.3%, despite declines in machinery, electronics and information, as
metal products and minerals as well as energy increased. Domestic transactions
in the consumer products and services as well as certain other categories
increased, but as a result of declines in sales of domestic trading branches and
offices and in the machinery, electronics and information, chemicals, and energy
categories, overall domestic sales fell 10.7%.
2
SALES BY TYPE OF TRADE (Millions of Yen)
---------------------------------------------------------------------------------------
84th 83rd Increase
Semiannual Year % Semiannual Year % (Decrease) %
---------------------------------------------------------------------------------------
Export Y 968,052 21.8 Y 943,855 20.3 Y 24,197 2.6
Import 1,146,036 25.9 1,216,517 26.2 (70,480) (5.8)
Offshore 684,914 15.4 656,782 14.1 28,132 4.3
Domestic 1,634,300 36.9 1,830,227 39.4 (195,926) (10.7)
Total Y4,433,304 100.0 Y4,647,381 100.0 Y(214,077) (4.6)
Note: Amounts are rounded down to the nearest million yen.
SALES IN OPERATING SEGMENTS (Millions of Yen)
---------------------------------------------------------------------------------------------------------------
84th 83rd Increase
Semiannual Year % Semiannual Year % (Decrease) %
---------------------------------------------------------------------------------------------------------------
Metal Products & Minerals Y 760,683 17.2 Y 705,342 15.2 Y 55,341 7.8
Machinery, Electronics & Information 907,555 20.5 1,067,494 23.0 (159,938) (15.0)
Chemicals 513,280 11.6 523,790 11.3 (10,510) (2.0)
Energy 448,892 10.1 463,083 9.9 (14,191) (3.1)
Consumer Products & Services 780,422 17.6 729,620 15.7 50,801 7.0
Domestic Branches and Offices 875,063 19.7 971,676 20.9 (96,612) (9.9)
Overseas Offices 144,238 3.2 178,991 3.8 (34,752) (19.4)
Corporate 3,167 0.1 7,381 0.2 (4,213) (57.1)
Total Y4,433,304 100.0 Y4,647,381 100.0 Y(214,077) (4.6)
Notes: 1. Amounts are rounded down to the nearest million yen.
2. Beginning with the interim period under review, sales have been
reported according to an operating segment classification, with five
segments by merchandise and two segments by geographic segment based
on the nature of the business of the Head Office.
PROFITS
Gross profit declined Yen 2.8 billion from the same period of the previous year,
to Yen 103.8 billion. Selling, general and administrative expenses rose because
of higher provisions for doubtful receivables, and, while dividends received
increased, ordinary profit declined Yen 1.7 billion, to Yen 29.6 billion.
Among extraordinary gains and losses, the Company reported a loss on the
write-down of securities of Yen 7.9 billion, owing to the decline in stock
market prices. In addition, the Company proceeded with a review of investments
in affiliated and other companies in Japan and overseas and, while reporting
gains from the sale of investment securities, also reported losses on the
write-down of investment securities and provisions to doubtful accounts against
affiliated and other companies. As a consequence of these measures to enhance
the soundness of its assets, the Company reported a net extraordinary loss of
Yen 29.7 billion.
After the deduction of income taxes, current, and adjustments for
tax-effect accounting, net income amounted to Yen 8.5 billion, representing an
increase of Yen 1.4 billion from the same period of the previous year.
A summary of consolidated financial results can be found at the end of
this report.
3
TRENDS IN COMPANY PERFORMANCE (NON-CONSOLIDATED) (Millions of Yen, except Net Income per Share)
--------------------------------------------------------------------------------------------------------
81st 82nd 83rd 84th
Semiannual Year Semiannual Year Semiannual Year Semiannual Year
--------------------------------------------------------------------------------------------------------
Sales Y5,023,973 Y5,117,338 Y4,647,381 Y4,433,304
Net Income 8,688 8,055 7,106 8,506
Net Income per Share Y5.48 Y5.08 Y4.48 Y5.37
Notes: 1. Net income per share is calculated based on the average number of
shares outstanding for the period.
2. Please note that for the 84th semiannual year, the average number of
shares outstanding during the period was computed after the deduction
of treasury shares from the total number of shares issued.
3. Amounts are rounded down to the nearest million yen. In the case of
net income per share, amounts less than Yen 1/100 are rounded down.
TRENDS IN COMPANY PERFORMANCE (CONSOLIDATED) (Millions of Yen)
--------------------------------------------------------------------------------------------------------
81st 82nd 83rd 84th
Semiannual Year Semiannual Year Semiannual Year Semiannual Year
--------------------------------------------------------------------------------------------------------
Total Trading Transactions Y6,471,522 Y6,660,626 Y6,338,966 Y6,243,676
Net Income 12,961 24,063 23,418 24,789
Notes: 1. These financial data have been prepared on the basis of accounting
standards generally accepted in the United States. Condensed
consolidated financial statements can be found at the end of this
report.
2. Because of a change in the method of accounting for investments in the
82nd interim period, the consolidated net income amount for the
interim periods of the 81st fiscal year has been restated for
comparability.
3. Beginning with the interim period under review, because the amount
after adjustments for tax effects arising due to gains and losses
accompanying the sale or withdrawal from subsidiaries has been
included in gains or losses from discontinued operations, the
consolidated figures for the three previous interim periods have been
reclassified according to the new method of presentation and shown as
a separate item.
4
CORPORATE DATA
-------------------------------------------------------------------
(As of September 30, 2002)
PRINCIPAL BUSINESS
The Company engages in domestic sales, export, import, and offshore transactions
in a wide spectrum of goods, notably, metal products & minerals, machinery,
electronics & information, chemicals, energy, consumer products & services as
well as in a wide range of other business areas.
MAJOR OFFICES
HEAD OFFICE: Chiyoda-ku, Tokyo
DOMESTIC OFFICES: Sapporo, Tohoku, Nagoya, Osaka, Hiroshima, Fukuoka
DOMESTIC BRANCHES: Niigata, Nagano, Shizuoka, Hokuriku, Takamatsu
OVERSEAS BRANCHES: Singapore, Kuala Lumpur, Manila, Johannesburg
Note: The Company has local overseas subsidiaries in various parts of the world
(Mitsui & Co. (U.S.A.), Inc.; Mitsui & Co. Europe PLC; Mitsui & Co.
(Middle East) E.C.; and Mitsui & Co., (Australia) Ltd.). Please note that
the operations of the Johannesburg Branch Office have been transferred to
the Company's subsidiary Mitsui & Co. Southern Africa (Pty) Ltd., and
operations of the branch were closed as of October 31, 2002.
SHARES
(1) Total number of shares authorized........................... 2,500,000,000
(2) Number of shares issued .................................... 1,583,674,837
(Including Treasury Stocks: 580,214)
(3) Number of shareholders...................................... 119,022
NUMBER OF EMPLOYEES
NUMBER OF EMPLOYEES: 6,426
Note: The above figure for the number of employees includes 1,240 people
seconded to other companies. In addition to this staff, Mitsui employs
1,270 foreign nationals at its overseas offices and 2,173 foreign
nationals at its overseas subsidiaries.
5
BOARD OF DIRECTORS AND CORPORATE AUDITORS
-------------------------------------------------------------------
(As of November 2002)
CHAIRMAN AND EXECUTIVE DIRECTOR
Nobuo Ohashi
PRESIDENT AND CHIEF EXECUTIVE OFFICER
Shoei Utsuda
REPRESENTATIVE DIRECTORS
Retsu Imaizumi
Hiroshi Nagata
Kazumi Nakagawa
Tasuku Kondo
DIRECTORS
Norio Shoji
Katsuto Momii
CORPORATE AUDITORS
Makoto Ejima
Ko Matsukata
Minoru Suzuki
Katsuro Hatoyama
OFFICERS
PRESIDENT AND CHIEF EXECUTIVE OFFICER
Shoei Utsuda *
EXECUTIVE VICE PRESIDENTS
Retsu Imaizumi *
Hiroshi Nagata *
Kazumi Nakagawa *
SENIOR EXECUTIVE MANAGING OFFICERS
Norio Shoji *
Tasuku Kondo *
Katsuto Momii *
Tetsuya Matsuoka
EXECUTIVE MANAGING OFFICERS
Junji Sato
Yasuo Hayashi
Toshihiko Sasahira
Masataka Suzuki
Gempachiro Aihara
Yushi Nagata
SENIOR MANAGING OFFICERS
Jun Moriyama
Hiroshi Tada
Yasunori Yokote
Yoshiyuki Izawa
Osamu Mori
Motohiro Yano
Kazuya Imai
Toshihiro Soejima
Motonori Saeki
Satoru Miura
Motokazu Yoshida
MANAGING OFFICERS
Junichi Masuda
Masayoshi Sato
Kenji Dewa
Michio Matsuda
Yoshiyuki Kagawa
Takeshi Ohyama
Takao Sunami
Hirokazu Mizukami
Ken Abe
Junichi Matsumoto
Kazuo Tasaka
Shunichi Miyazaki
Shinjiro Ogawa
Toshimasa Furukawa
Notes: 1. Executive Officers also holding the position of Director have been
indicated with an asterisk (*).
2. Ko Matsukata and Minoru Suzuki are the external Corporate Auditors, as
provided for in Clause 1, Article 18, of the "Law Concerning Special
Measures under the Commercial Code of Japan with Respect to Audit,
etc., of Corporations." Makoto Ejima and Katsuro Hatoyama are
full-time Corporate Auditors as provided for in Clause 2, Article 18,
of the aforementioned law.
3. Please note that Shigeji Ueshima, Shinjiro Shimizu, and Jun Tashiro
resigned as Directors as of September 30.
6
BALANCE SHEET
-------------------------------------------------------------------
(September 30, 2002)
(Millions of Yen)
--------------------------------------------------------------------------------
ASSETS
--------------------------------------------------------------------------------
CURRENT ASSETS:
Cash and Time Deposits Y 454,006
Notes Receivable 241,041
Accounts Receivable, Trade 1,174,186
Securities 43,197
Inventories 163,929
Advances to Suppliers 54,894
Deferred Tax Assets-Current 19,661
Other 348,931
Allowance for Doubtful Receivables (14,477)
----------
TOTAL CURRENT ASSETS 2,485,371
NON-CURRENT ASSETS:
Tangible Assets (Net) 135,762
Intangible Assets 16,598
Investments and Other Assets: 1,508,279
Investments in Securities 1,044,940
Long-Term Loans Receivable 239,240
Deferred Tax Assets-Non-Current 68,730
Other 299,793
Allowance for Doubtful Receivables (144,425)
----------
TOTAL NON-CURRENT ASSETS 1,660,639
--------------------------------------------------------------------------------
TOTAL ASSETS Y4,146,010
================================================================================
(Millions of Yen)
--------------------------------------------------------------------------------
LIABILITIES AND SHAREHOLDERS' EQUITY
--------------------------------------------------------------------------------
CURRENT LIABILITIES:
Notes Payable Y 87,568
Accounts Payable, Trade 874,896
Short-Term Borrowings 313,506
Commercial Paper 50,000
Accounts Payable, Other 210,614
Advances Received from Customers 54,974
Other 111,155
----------
TOTAL CURRENT LIABILITIES 1,702,715
LONG-TERM LIABILITIES:
Debentures and Bonds 466,286
Long-Term Borrowings 1,241,324
Liability for Retirement Benefits 5,933
Other 46,157
----------
TOTAL LONG-TERM LIABILITIES 1,759,700
----------
TOTAL LIABILITIES 3,462,415
SHAREHOLDERS' EQUITY:
Capital Stock 192,487
Capital Surplus 218,708
Retained Earnings, including
Net Income of Yen 8,506 Million 230,272
Net Unrealized Gain on
Available-for-Sale Securities 42,551
Treasury Stock (423)
----------
TOTAL SHAREHOLDERS' EQUITY 683,595
--------------------------------------------------------------------------------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY Y4,146,010
================================================================================
Notes: 1. Figures are rounded down to the nearest million yen.
2. Accumulated depreciation of tangible assets: Yen 103,250 million
3. Assets pledged as security: Yen 64,582 million
4. Guarantees and contingent liabilities:
(1) Guarantees: Yen 998,592 million
(including Yen 326,586 million of commitments and other letters
similar to guarantees)
(2) Notes Receivable discounted: Yen 36,681 million
5. Net income per share in the semiannual period: Yen 5.37
7
STATEMENT OF INCOME
-------------------------------------------------------------------
(Six-month period ended September 30, 2002)
(Millions of Yen)
--------------------------------------------------------------------------------------
ORDINARY INCOME AND EXPENSES:
OPERATING INCOME AND EXPENSES:
Sales Y4,433,304
Cost of Sales 4,329,467
------------------------
Gross Profit 103,836
Selling, General and Administrative Expenses 94,156
------------------------
OPERATING PROFIT 9,679
NON-OPERATING INCOME AND EXPENSES:
NON-OPERATING INCOME:
Interest Received 11,579
Dividends Received 24,734
Other 2,371
----------
Total Non-Operating Income 38,684
NON-OPERATING EXPENSES:
Interest Paid 11,778
Other 7,033
---------
Total Non-Operating Expenses 18,812
------------------------
ORDINARY PROFIT 29,552
EXTRAORDINARY GAINS AND LOSSES:
EXTRAORDINARY GAINS:
Gain on Sales of Tangible Assets 63
Gain on Sales of Investments in Securities 9,724
----------
Total Extraordinary Gains 9,787
EXTRAORDINARY LOSSES:
Loss on Disposal of Tangible Assets 304
Loss on Sales of Investments in Securities 136
Loss on Devaluation of Investments in Securities 26,052
Provision for Doubtful Receivables from
Subsidiaries and Associated Companies 12,992
---------
Total Extraordinary Losses 39,485
------------------------
LOSS BEFORE INCOME TAXES 145
Income Taxes, Current 6,408
Income Taxes, Deferred 15,061
------------------------
NET INCOME 8,506
UNAPPROPRIATED RETAINED EARNINGS AT BEGINNING OF PERIOD 2,730
------------------------
UNAPPROPRIATED RETAINED EARNINGS AT END OF PERIOD Y11,237
------------------------
Note: Figures are rounded down to the nearest million yen.
8
[Supplementary Information]
RESULTS OF OPERATIONS (CONSOLIDATED BASIS)
TOTAL TRADING TRANSACTIONS
On a consolidated basis, total trading transactions of the Company and its
subsidiaries for the six-month period ended September 30, 2002, declined 1.5%,
to Yen 6,243.7 billion. Higher transactions were reported in metal products and
minerals -- which were boosted by higher product exports and transactions in
iron ore and coal of subsidiaries -- and consumer products and services -- which
benefited from increases in retail and foods transactions. However, lower
transactions were reported in the machinery, electronics and information
category -- where plant exports declined -- and in the transactions of domestic
trading branches and offices -- which were affected by the weakness in domestic
demand as well as the split-off of the Company's construction materials sales
activities into a separate company. As a result, total trading transactions for
the interim period declined Yen 95.3 billion from the same period of the
previous year.
PROFITS
Net income on a consolidated basis amounted to Yen 24.8 billion, a 5.9% increase
from the same period of the previous year. Revenue -- gross trading profit on a
consolidated basis rose Yen 5.0 billion, to Yen 275.2 billion.
Operating income rose Yen 3.1 billion, to Yen 47.2 billion, despite an
increase in provisions for doubtful accounts, as selling, general and
administrative expenses dropped.
Among other income and expenses, losses on the write-down of securities
declined, the net interest expense improved, further losses on fixed assets were
reported as the Company moved forward with activities to enhance the soundness
of its assets, and gains on the sale of securities fell. As a result, net income
and expenses amounted to a net loss of Yen 16.3 billion.
Equity in earnings of associated companies amounted to Yen 11.2 billion
because of strong performances by companies in the energy and metal raw
materials industries. As a result, net income, after deducting the net loss from
discontinued operations of Yen 1.1 billion, increased Yen 1.4 billion, to Yen
24.8 billion.
9
CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
Condensed Consolidated Balance Sheet
(September 30, 2002)
(Millions of Yen)
ASSETS
CURRENT ASSETS:
Cash and Cash Equivalents Y697,527
Time Deposits and
Marketable Securities 125,400
Trade Receivables, Less Allowance
for Doubtful Receivables 2,083,121
Inventories 472,547
Other Current Assets 297,930
----------
Total Current Assets 3,676,525
INVESTMENTS AND
NON-CURRENT RECEIVABLES 1,931,069
PROPERTY AND EQUIPMENT AT COST,
LESS ACCUMULATED DEPRECIATION 611,534
OTHER ASSETS 178,584
----------
TOTAL Y6,397,712
==========
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Short-Term Loans and Current
Maturities of Long-Term Debt Y 974,276
Trade Payables 1,545,487
Other Current Liabilities 297,435
-----------
Total Current Liabilities 2,817,198
LONG-TERM DEBT, LESS CURRENT MATURITIES 2,571,626
OTHER LIABILITIES AND MINORITY INTERESTS 129,254
SHAREHOLDERS' EQUITY:
Common Stock 192,487
Capital Surplus 287,756
Retained Earnings 530,403
Accumulated Other
Comprehensive Income (Loss) (130,404)
-----------
Treasury Common Stock, at Cost (608)
Total Shareholders' Equity 879,634
-----------
TOTAL Y 6,397,712
===========
CONDENSED CONSOLIDATED STATEMENT OF INCOME
(Six-month period ended September 30, 2002)
(Millions of Yen)
Total Trading Transactions Y6,243,676
----------
Revenue -- Gross Trading Profit Y275,238
Expenses (228,048)
----------
Operating Income 47,190
Other (Loss) Income -- Net (16,311)
----------
Income from Continuing Operations before Income Taxes, Minority Interests and Equity in Earnings 30,879
Provision for Income Taxes (13,984)
----------
Income from Continuing Operations before Minority Interests and Equity in Earnings 16,895
Minority Interests in (Earnings) Losses of Subsidiaries (2,250)
Equity in Earnings of Associated Companies -- Net (After Income Tax Effect) 11,209
----------
Net Income from Continuing Operations 25,854
Net Loss from Discontinued Operations (After Income Tax Effect) (1,065)
----------
Net Income Y 24,789
Note: Beginning with the interim period under review, accompanying the
application of U.S. Statement of Financial Accounting Standards No. 144 (SFAS
144), "Accounting for the Impairment or Disposal of Long-Lived Assets," gains or
losses (after adjustments for tax effects) have been shown as a separate item.
10
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
(Six-month period ended September 30, 2002)
(Millions of Yen)
OPERATING ACTIVITIES:
Net Income Y 24,789
Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities
Net Loss from Discontinued Operations 1,065
Depreciation and Amortization 27,409
Provision for Doubtful Receivables 6,291
Equity in Loss of Non-Consolidated Subsidiaries and Affiliates (5,285)
Deferred Income Taxes (8,495)
Net Loss on Securities 1,864
Net Loss on Fixed Assets 17,473
Changes in Operating Assets and Liabilities 8,531
--------
Net Cash Provided by Operating Activities 73,642
--------
INVESTING ACTIVITIES:
Net Decrease in Time Deposits 43,842
Investments in and Advances to Associated Companies (25,904)
Net Decrease in Other Investments 19,663
Net Decrease in Long-Term Loan Receivables 8,293
Additions to Property Leased to Others and Property and Equipment, Net (7,928)
--------
Net Cash Provided by Investing Activities 37,966
--------
FINANCING ACTIVITIES:
Net Decrease in Short-Term Borrowings (9,595)
Net Proceeds from Long-Term Debt 1,127
Payment of Cash Dividends (6,334)
--------
Net Cash Used in Financing Activities (14,802)
--------
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS (7,266)
--------
NET INCREASE IN CASH AND CASH EQUIVALENTS 89,540
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD 607,987
--------
CASH AND CASH EQUIVALENTS AT END OF PERIOD Y697,527
========
11
OPERATING SEGMENT INFORMATION
The Company allocates its resources and evaluated performance by operating
groups, which are defined based on the nature of products and services
transacted by the Head Office and other considerations, with domestic and
overseas branches and offices and overseas trading subsidiaries as management
units. These management units are then classified into five product segments
(classification units) and four geographical segments (classification units).
Six-month period ended September 30, 2002
(Millions of Yen)
Metal Products Machinery, Consumer
& Electronics & Products &
Minerals Information Chemicals Energy Services
------------ ------------ ------------ ------------ ------------
Total Trading Transactions
External Customers Y805,633 Y1,027,679 Y523,214 Y1,261,258 Y1,021,135
Intersegment 127,526 89,459 152,891 32,625 63,507
------------ ------------ ------------ ------------ ------------
Total Y933,159 Y1,117,138 Y676,105 Y1,293,883 Y1,084,642
============ ============ ============ ============ ============
Revenue -- Gross Trading Profit Y34,458 Y54,404 Y27,933 Y27,364 Y50,439
------------ ------------ ------------ ------------ ------------
Operating Income (Loss) 12,451 518 6,003 13,809 9,799
------------ ------------ ------------ ------------ ------------
Net Income (Loss) 7,239 (8,723) (1,590) 13,144 4,222
------------ ------------ ------------ ------------ ------------
Total Assets as of
September 30, 2002 Y904,886 Y1,308,144 Y451,808 Y455,210 Y821,667
------------ ------------ ------------ ------------ ------------
Domestic Other Corporate
Branches Overseas and Consolidated
and Offices Americas Europe Areas Eliminations Total
------------- ------------- ------------- ------------- ------------ ------------
Total Trading Transactions
External Customers Y738,730 Y370,294 Y179,101 Y292,482 Y24,150 Y6,243,676
Intersegment 117,942 233,522 101,824 389,248 (1,308,544) --
------------- ------------- ------------- ------------- ------------ ------------
Total Y856,672 Y603,816 Y280,925 Y681,730 Y(1,284,394) Y6,243,676
============= ============= ============= ============= ============ ============
Revenue -- Gross
Trading Profit Y20,849 Y22,342 Y11,235 Y11,605 Y14,609 Y275,238
------------- ------------- ------------- ------------- ------------ ------------
Operating Income (Loss) 2,095 5,562 2,309 (1,116) (4,240) 47,190
------------- ------------- ------------- ------------- ------------ ------------
Net Income (Loss) 3,510 2,351 1,371 3,123 142 24,789
------------- ------------- ------------- ------------- ------------ ------------
Total Assets as of
September 30, 2002 Y485,830 Y417,393 Y260,422 Y233,592 Y1,058,760 Y6,397,712
------------- ------------- ------------- ------------- ------------ ------------
Notes: 1. In view of the full-scale introduction of the operating group
system beginning in April 2002 and the transition to new
management systems, starting with the interim period under review,
"Electronics & Information" has been merged into "Machinery,
Electronics & Information" and "Transportation Logistics", which
was formerly included in "Consumer Products & Services", has been
included in "Corporate and Eliminations". Accompanying these
changes, segment information for the same period of the previous
fiscal year has been restated and shown.
2. "Corporate and Eliminations" includes items pertaining to the
Headquarters and companies affiliated with the Headquarters, items
not allocated to the segments, eliminations due to sales between
segments, and other items.
12
Six-month period ended September 30, 2001 (Millions of Yen)
Metal Machinery, Consumer
Products & Electronics & Products &
Minerals Information Chemicals Energy Services
---------- ---------- ---------- ---------- ----------
Total Trading Transactions
External Customers Y747,623 Y1,164,029 Y522,778 Y1,241,560 Y956,873
Intersegment 125,287 75,647 134,336 46,102 72,301
---------- ---------- ---------- ---------- ----------
Total Y872,910 Y1,239,676 Y657,114 Y1,287,662 Y1,029,174
========== ========== ========== ========== ==========
Revenue -- Gross Trading Profit Y33,784 Y54,015 Y27,974 Y28,047 Y49,833
---------- ---------- ---------- ---------- ----------
Operating Income (Loss) 10,147 6,310 6,696 10,885 (2,058)
---------- ---------- ---------- ---------- ----------
Net Income (Loss) 3,473 2,441 (535) 16,406 (977)
---------- ---------- ---------- ---------- ----------
Total Assets as of
September 30, 2001 Y936,247 Y1,409,089 Y512,265 Y434,458 Y922,561
---------- ---------- ---------- ---------- ----------
(Millions of Yen)
Domestic Other Eliminations
Branches Overseas and Consolidated
and Offices Americas Europe Areas Corporate Total
------------ ------------ ------------ ------------ ------------ ------------
Total Trading Transactions
External Customers Y819,353 Y365,205 Y228,832 Y273,495 Y19,218 Y6,338,966
Intersegment 145,742 257,849 83,244 417,389 (1,357,897) --
------------ ------------ ------------ ------------ ------------ ------------
Total Y965,095 Y623,054 Y312,076 Y690,884 Y(1,338,679) Y6,338,966
============ ============ ============ ============ ============ ============
Revenue -- Gross
Trading Profit Y24,006 Y22,666 Y9,358 Y10,261 Y10,281 Y270,225
------------ ------------ ------------ ------------ ------------ ------------
Operating Income (Loss) 4,355 5,501 1,742 (2,502) 3,057 44,133
------------ ------------ ------------ ------------ ------------ ------------
Net Income (Loss) 2,880 3,005 1,297 2,385 (6,957) 23,418
------------ ------------ ------------ ------------ ------------ ------------
Total Assets as of
September 30, 2001 Y577,812 Y393,406 Y207,794 Y241,865 Y957,680 Y6,593,177
------------ ------------ ------------ ------------ ------------ ------------
13
SHAREHOLDER INFORMATION
FISCAL YEAR-END DATE: March 31
RECORD DATE FOR VOTING RIGHTS: March 31
RECORD DATE FOR CASH DIVIDENDS
(INTERIM PERIOD): September 30
ANNUAL GENERAL MEETING OF SHAREHOLDERS: June
TRANSFER AGENT: The Chuo Mitsui Trust & Banking Co., Ltd.
33-1, Shiba 3-chome, Minato-ku,
Tokyo 105-0014, Japan
TRANSFER OFFICE: The Chuo Mitsui Trust & Banking Co., Ltd.
Stock Transfer Agency Division
8-4, Izumi 2-chome, Suginami-ku,
Tokyo 168-0063, Japan
Tel.: (03) 3323-7111
SECONDARY TRANSFER OFFICE: The Chuo Mitsui Trust & Banking Co., Ltd.
Branch offices nationwide
STOCK EXCHANGES: Tokyo, Osaka, Nagoya, Sapporo, Fukuoka
14