circuit products, capacitors for electric apparatuses and … · · 2015-04-0176.1% 2.5 ¥...

2

Nichicon Corporation specializes in the development, manufacture, and marketing of capacitors, essential

components for a broad range of electronics.

Since 1950 when Nichicon commenced the manufacture of capacitors for power utilities in Kusatsu

City, Shiga Prefecture, the company has been extending its business scope in line with the development

of electronics. The company has grown into four business segments: Capacitors for Electronics,

Circuit Products, Capacitors for Electric Apparatuses and Power Utilities, and Others, which include

capacitor-related products, and is now working on expansion of the share in four key markets, namely

“information and communication-related appliances,” “digital household appliances,” “automobile/railway

car-related appliances,” and “inverter household appliances.”

During the current term, Nichicon carried out the three business policies set up in January 2002,

those are; “Construction of a more trim and muscular corporate organization,” “Reinforcement of

technological and product development capabilities,” and “Enrichment of the group-wide systematization

using information technologies.” The company also upgraded and expanded the production/sales system

in the Chinese market; put a variety of highly value-added products on the market; and drastically

restructured the in-house information system.

In response to the reinforcement of

the overseas production for customers,

the company has been working to beef up our

overseas production/sales system. In regard

to the Chinese market, the company started

production of aluminum electrolytic

capacitors and switching power supplies, and

thus adopted thoroughgoing measures to meet local demand.

As a fruitful result, sales in the Asian region considerably

increased in this term. Furthermore, as the sales subsidiary

established in Austria in the last term started expanding the East

European market, the company aims at contributing to the world

electronics industries by pressing ahead with the process of

developing the current global business more positively in the future.

Profile

Financial Highlights

To Our Shareholders

Focus on Global Operations

Review of Operations

Capacitors for Electronics

Circuit Products

Capacitors for Electric Apparatus and Power Utilities

Others

News & Topics

Financial Section

Financial Review

Consolidated Balance Sheets

Consolidated Statements of Income

Consolidated Statements of Shareholders’ Equity

Consolidated Statements of Cash Flows

Notes to the Consolidated Financial Statements

Report of Independent Accountants

Consolidated Subsidiaries

Corporate Data

Investor Information

2

3

4

8

10

11

12

13

13

14

16

18

20

21

22

23

33

34

35

35

Forward Looking Statements

Projections of operating results and changes in the operating environment are based on information available to management at the time this report was prepared. As such, these projections entail risks and uncertainties. Readers should be aware that actual results and events may differ substantially from these projections.

CoverContents

Profile

3

¥ 105,8925,0805,3332,988

16,04614,619

157,546119,825

¥ 36.88

13.001,483.04

76.1% 2.5

¥ 121,20110,28011,898

6,70325,92913,026

174,901119,603

¥ 80.06

13.001,453.78

68.4% 5.7

¥ 106,2468,0325,8022,927

20,91910,092

153,748114,626

¥ 34.89

12.001,367.48

74.6%2.6

¥ 103,12311,54412,390

5,37710,581

7,923

142,582111,056

¥ 63.92

12.001,319.82

77.9%4.9

$ 924,89264,40058,35927,74268,045

111,017

1,303,119995,753

$ 0.340.11

12.47

76.4% 2.8

2002

¥ 110,0717,6646,9463,3028,098

13,212

155,084118,505

¥ 40.5713.00

1,483.68

76.4%2.8

2001 2000 1999

120,000

100,000

80,000

60,000

40,000

20,000

01999/3 2000/3 2001/3 2002/3

103,123 106,246

121,201

105,892

8,000

1999/3 2000/3 2001/3 2002/3

2,000

6,000

4,000

5,377

2,927

6,703

2,988

180,000

150,000

120,000

90,000

60,000

30,000

01999/3 2000/3 2001/3 2002/3

142,582153,748

174,901

157,546

8,000

16,000

1999/3 2000/3 2001/3 2002/3

4,000

12,000

8,032

10,280

5,080

30,000

25,000

20,000

15,000

10,000

5,000

01999/3 2000/3 2001/3 2002/3

10,581

20,919

25,929

16,046

120,000

100,000

80,000

60,000

40,000

20,000

01999/3 2000/3 2001/3 2002/3

111,056 114,626119,603 119,825

2003/3

110,071

2003/3

3,302

2003/3

155,084

2003/3 2003/3

8,098

2003/3

118,505

11,544

0

0

2003 2003

7,664

NICHICON CORPORATION AND CONSOLIDATED SUBSIDIARIES Years ended March 31

Yen U.S. dollars

For the year :Net salesOperating incomeIncome before income taxes and minority interestNet incomeCapital expendituresDepreciation and amortization

At year-end :Total assetsShareholders’ equity

Per share of common stock :Net income (yen)Cash dividends (yen)Shareholders’ equity (yen)

Shareholders’ equity ratioRatio of net income to shareholders’ equity

Notes: 1. Amounts less than 1 million yen have been rounded down. 2. The U.S.dollar amounts are provided solely for convenience at the rate of ¥119.01 to U.S. $1, the approximate exchange rate at March 31, 2003. 3. Certain reclassifications of previously reported amounts have been made to conform with current classifications.

Millions of Yen Thousands of U.S. dollars

Net Sales(Millions of Yen)

Net Income(Millions of Yen)

Total Assets(Millions of Yen)

Operating Income(Millions of Yen)

Capital Expenditures(Millions of Yen)

Total Shareholders’ Equity(Millions of Yen)

Financial Highlights

4

During this term (the year ended March 31, 2003), the tendency of stagnation in Japan’s economy became stronger. In spite of steady exports in the first half of the term, capital investment in the private sector and individual consumption did not recover due to the global downturn in stocks and the precarious situation in the financial market, influenced by the economic slump of the US in the latter half of the term. In the electronics and electric industries, export and domestic demand for digital household appliances such as PDPs (Plasma Display Panels), liquid crystal televisions, DVD players/recorders, digital still cameras, etc. increased. However, the sluggish condition, called “IT slump,” did not improve very much throughout the term because of the decrease in domestic and overseas consumption in the latter half of the term. Against the backdrop of this challenging business environment, the entire Nichicon Group, with an eye towards becoming “a global winner in the electronic components industry,” sought to carry out three business policies. These policies, which were set up in January 2002 are -Construction of a more trim and muscular corporate organization, Reinforcement of technological and product development capabilities, and Enrichment of the group-wide

systematization using information technologies (upgrading the information infrastructure like SCM). Furthermore, we changed the dates of settlement for 9 out of the total 17 consolidated subsidiaries to the consolidated settlement date in this term in order to reinforce our consolidated management. This change of the dates of settlement for the consolidated subsidiaries (for further information, refer to page 23) brought an increase of income amounting to ¥3,535 million and had an influence on the consolidated sales. And as a result, it rose to ¥110,071 million, an increase of ¥4,179 million from the previous term (up 3.9% from the previous term). Apart from influences exerted by the change to the dates of settlement, we can point out the considerable increase in sales in Asia as a factor for the increase in income. Even influenced by the fall in demand and the fiercer competition in the latter half of the term, the business performance of the consolidated subsidiaries in Asia could successfully make up forthe decreasing sales in Japan and the US. Moreover, thanks to efforts devoted to improving productivity and cost cutting that resulted in improvements in profitability and a decrease in the cost of retirement benefits (for details, see page 28), etc., the consolidated operating income and the consolidated net income increased to ¥7,664 million (an increase of 50.9% from the previous term) and ¥3,302 million (a 10.5% increase from the previous term), respectively. The EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) in the present term stood at ¥20,175 million, an increase of ¥211 million from

NICHICON CORPORATIONPresident & C.E.O.

Ippei Takeda

To Our Shareholders

5

¥ 5,37712,390

337,923

20,346545

¥ 20,891

¥ 2,9275,802

1910,09215,9133,031

¥ 18,944

¥ 6,70311,898

1313,02624,9372,880

¥ 27,817

¥ 2,9885,333

1214,61919,9642,204

¥ 22,168

2001/32000/31999/3 2002/3

¥ 10,581 ¥ 20,919 ¥ 25,929 ¥ 16,046

2001/32000/31999/3 2002/3

¥ 3,3026,946

1713,21220,175△1,667

¥ 18,508

2003/3

¥ 8,098

2003/3

30,000

25,000

20,000

15,000

10,000

5,000

01999/3 2000/3 2001/3 2002/3

27,817

22,168

2003/3

20,891 20,919

25,929

10,581

16,046

18,944

8,098

18,508

the previous term. When retirement benefits, which were added up as another large component of non-cash expenses alongside depreciation, are added in, the EBITDA figure for this term reaches ¥18,508 million because this term’s retirement benefits declined by ¥1,667 million. Subsequently in this term as well, the business environment has been harsh, but we were able to achieve increases in revenue and profit. This is due to the fact that we continuously adhered to the “Place Emphasis on Customers” policy in every aspect of our business activities. Owing to the current unstable and uncertain world economic situation, demand for many electronics appliances is struggling. We would not be able to remarkably increase sales only by our efforts as an electronics component manufacturer. In such uncertain times, I believe that steadily performing the three business policies while adhering to the “Place Emphasis on Customers” policy is the very best policy for us to survive as a winner.

The first one of the 3 business policies, “Construction of a more trim and muscular corporate organization,” means not only getting rid of extra weight, but refers to a reinforcement of various components, including projects, company bases, the work force, and production facilities. All this is done as the need arises while keeping the entire structure in an optimal condition. During this term, we upgraded and expanded the production bases in addition to strengthening the sales network in China in order to meet the needs of our customers, many of whom are reinforcing their production in China. As for upgrading and expanding the production bases, our production subsidiary, NICHICON ELECTRONICS (WUXI) CO., LTD., began production in August 2002. And in March 2003, our joint venture company, SUZHOU TAICON CORPORATION, started production. Furthermore, in October 2002, through a joint venture company, TIANJIN SAMHWA

ELECTRIC CO., LTD., jointly set up by Nichicon and SAMWHA ELECTRIC CO., LTD. in Korea, we took over the aluminum electrolytic capacitors division of Samsung Electro-Mechanics in Tianjin which is one of the principal firms of the Korea Samsung group. To strengthen the sales network, we elevated the Shanghai representative office to the status of a sales subsidiary, NICHICON ELECTRONICS TRADING (SHANGHAI) CO., LTD., in June 2002. And in April 2003, its sub-branch was set up in Dalian. In December 2002, a sub-branch of NICHICON (HONG KONG) LTD. was also set up in Shenzhen City. As a result, the ratio of sales in Asia to our gross sales sharply rose to 32.9% from 23.3% in the previous term. The ratio of overseas sales expanded to 51.2% from 42.4% from the previous term, exceeding the 50% level for the first time ever. This drastic sales increase in Asia greatly contributed to the revenue increase of the whole group. For the time being, we will aim at reinforcing our company bases overseas in response to customers’ needs and circumstances and at the same time enhance the ratio of overseas sales up to 60%, while seeking to increase the gross sales of the whole group in the future.

Our second business policy, “Reinforcement of technological and product development capabilities,” aims at more prompt development of products that “customers need.” During this term, we developed highly value-added products one after another, such as high-ripple, low-impedance and long-life aluminum electrolytic capacitors, which came to be highly regarded by many customers. However, “what customers require” is not necessarily a new product with highly added value. As for “aluminum electrolytic capacitors,” many of them require a full-range supply from sophisticated high-end products to general-

(Millions of Yen)

Cash-based earnings is the sum of EBITDAand provisions for the reserve for retirement benefits. Capital expenditure trends

Net income

Income before income taxes＊Interest expense＊Depreciation and amortization＊EBITDA(＊Total)Provisions for retirement benefit reserve

Total cash-based earnings

Capital Expenditures

(¥ million)

(¥ million)

6

purpose low-end products. To meet the needs, during this term, we strengthened the full-range supply system of “aluminum electrolytic capacitors.” The establishment of the wholly owned factory and joint ventures/acquisition in China was based on the full-range supply system. As a result of these implementations, sales in Asia increased as mentioned before. From now on, we are determined to keep on expanding market share for the full-range supply from high-end products to low-end products in accordance with the notion of “thoroughly strengthening what is strong” with respects to the sales of “aluminum electrolytic capacitors.” In recent years, we have focused on the 3 main segments composed of “aluminum electrolytic capacitors,” “tantalum electrolytic capacitors,” and “circuit products.” Also we have concentrated our managerial resources on the 4 key markets, namely “information and communications products,” “automobile/railway car-related appliances,” “digital household appliances,” and “inverter household appliances.” Promptly developing/supplying “what customers require” is our policy commonly applied to all 3 segments and the 4 main markets. In the field of “tantalum electrolytic capacitors,” we developed a conformal resin-coated type and a face-down electrode type in response to the downsizing/weight-saving needs of mobile phones and digital still cameras. Our customers responded very favorably to these products. In the field of “circuit products” used in such devices as game consoles, OA-related appliances, and car electronics, we are focusing on the development of customized products to fulfill customers’requests. We are also building up a production system that enables us to distribute the products from a location near the customer’s assembly plant. This will enable us to meet the needs of customers in each industry by using our domestic factories and other overseas bases such as Nichicon Electronics (Wuxi) Co., Ltd.

As themes for the next term (March 2004), we enumerated the following 6 items: “Take a short-term view,” “Reduce costs everywhere,” “Develop new needs,” “Challenge/ passion/ education/ implementation/ victory/ ethics,” “Establish a global production/ sales system” and “Be a valuable supplier to customers.” “Take a short-term view” does not mean making light of the long-run viewpoint, but it means trying to promptly address changes in the business environment. The phrase “Dog Year” is often cited to point out the difference in the rate at which humans and dogs age: one year at present is equivalent to 5 to 7 years in the past. In times of such rapid changes, even if you are developing a new product to sell 5 or 10 years later, it comes to be doubtful whether it will be really required by the customer at that time. Therefore, it is necessary to produce “what customers require next” quickly, in other words, to emphasize “development to meet needs” and manufacture the products in the shortest period possible. In this term, the ratio of new products brought out within the last 3 years to consolidated sales rose to 24% from 23% in the previous term. But by trying to carry out Dog Year type Development, the figure will become 25% next term and later we will continuously get it closer to some 30%. And recently, many customers have come to consolidate suppliers and have thereby been trying to cut down their total costs. In this respect as well, we believe that the company, equipped with both technological and supplying abilities, can provide customers with sufficient merits. In the previous term, we introduced the division system, namely shifting from the conventional system of developing/ producing by factory to the new division system of handling the whole process from developing/ producing to selling consistently to speed up development of products and reduce costs. By employing this system, the delivery lead time was shortened and services improved. We really feel that we have come one step closer toward complete customers’ satisfaction. In this way, to become “Be a Valuable Supplier to Customers,” it is indispensable that we establish a “global production/ sales system.” Furthermore, not only management but each employee is required to pursue a spirit of “Challenge/ passion/ education/ implementation/ victory/ ethics.” The third of our business policies, “Enrichment of the group-wide systematization using information technologies,” aims at “Be a Valuable Suppliers to Customers” as well, in other words “Promoting IT system from the viewpoint of customers.” As a part of it, we are establishing the Supply Chain Management System.

Outlook and Strategies for Fiscal 2004

To Our Shareholders

7

I believe that to survive the harsh environment, it is important to positively carry out corporate social responsibilities as well as to strengthen our profit-earning capacity. For this reason, the CSR division was established in June 2003. CSR stands for “Corporate Social Responsibility.” The CSR division is devoted to improving corporate value by grasping the actual conditions in execution of environment management. Areas cited for improvement are preserving activities/ ensuring compliance, social contribution, corporate ethics, and risk management. As for the environment preserving activities, to date,the Nichicon Group has performed environmental management based on the international standard for environment management, ISO 14001. But from now on, the CSR division will manage the activities and assume the role of an examiner to further strengthen the activities. The division will positively and continuously work on development of products that contribute to minimization of environmental loads. Such products as lead-free, PVC (polyvinyl chloride)-less and energy-serving products, as well as recycling wastes, green procurement and delivery. By so doing we will aim at “living together with the earth” and creating “a society friendly to man andthe environment.” In October 2002, the company enacted the “Conduct Code” for the entire Nichicon Group of companies. From this point forward, the CSR division will take a leading role in ensuring compliance by all the employees.

Nichicon is pursuing a fair and highly transparent management. We have 4 auditors and 2 of them are external auditors. In addition to audits by the auditors, the Audit division seeks to enhance the quality of the internal audit in consultation with the independent accounting auditors and in cooperation with other segments. From the next term, in an effort to make business decisions more quickly, we reduced the number of directors from 10 to 7. This will help facilitate quick board meetings according to need. We will have consultations between the board of directors and operating officers as often as necessary. On April 1, 2003, the company spun off the Kameoka factory and established "Nichicon (Kameoka) Corporation. This reorganization was intended to strengthen technological ability and cost competitiveness under financial self-sufficiency. In addition, it will help establish valuable corporate qualities that can be highly regarded by customers. In similar fashion, we closed the factory segment of NICHICON (SINGAPORE) PTE. LTD., thus allowing

consolidation for production of aluminum electrolytic capacitors in South East Asia into NICHICON (MALAYSIA) SDN. BHD. From this point forward, the Nichicon Group of companies is determined to continually pursue “Construction of a more trim and muscular corporate organization” and strengthen where necessary and rationalize as required.

Though the big fall in the former term was made up to some extent in this term, the future economic picture of Japan and the US is still uncertain. There is little sign of recovery in demand for the components for mobile phones, personal computers, cars, etc. But we cannot expect a remarkable pickup. In light of the fiercer competition among companies,I predict that the business environment surrounding companies will be getting severer in the future. I forecast that full-scale recovery will take another 3 to 5 years, and acknowledge that the next term in particular will be “the year of patience.” The company must stand firmly on the ground, hang on no matter what strong adverse wind blows, and continually advance steadily step by step. Specifically speaking, we will support the “Emphasis on customers” policy more thoroughly, distinguish strictly “what to increase,” “what to extend,” and “what to organize,” implement distinct management, and advance “Construction of a more trim and muscular corporate organization” one step farther. While many companies are forced to have a tough game, we are determined to train ourselves and to prepare for making another jump to the future. In closing, I ask for your continued understanding and support as we take the actions needed to sustain our long-term growth.

June 27, 2003

Ippei TakedaPresident & C.E.O.

8

ASIA

EUROPE

NICHICON (TAIWAN) CO., LTD.

TAIWAN CAPACITOR LTD.

NICHICON (THAILAND) CO., LTD.

NICHICON (AUSTRIA) GmbH

NICHICON (EUROPE) LTD.

NICHICON (MALAYSIA) SDN. BHD.

NICHICON (SINGAPORE) PTE. LTD.

NICHICON ELECTRONICS (WUXI) CO., LTD.

NICHICON (HONG KONG) LTD.

NICHICON ELECTRONICS TRADING(SHANGHAI) CO., LTD.

SAMWHA ELECTRIC CO., LTD.

SUZHOU TAICON CORPORATION

TIANJIN SAMWHA ELECTRIC CO., LTD.

During the previous and current terms, Nichicon established an operational system to meet global demand with a focus on Asia by greatly upgrading and expanding the overseas production/sales bases.





Focus on Global Operations

9

U.S.A.

NICHICON (AMERICA) CORP.

NICHICON (AMERICA) CORP.SAN DIEGO OFFICE

As many customers are beefing up their production abroad Nichicon has been reinforcing its overseas production system in order to distribute electronic components from the most appropriate location nearest to each customer’s production base. In Southeast Asia, NICHICON (MALAYSIA) SDN. BHD. is producing aluminum electrolytic capacitors and meeting demands in neighboring countries. In China, the “World’s factory”, where many Japanese-affiliated firms can be found (especially in the Central China, suburbs of Shanghai), NICHICON ELECTRONICS (WUXI) CO., LTD., our totally owned subsidiary, started production of aluminum electrolytic capacitors and switching power supply. Also during this term SUZHOU TAICON CORPORATION, our joint venture, started production of aluminum electrolytic capacitors. In Nichicon’s local joint venture, TIANJIN SAMWHA ELECTRIC CO., LTD. is producing aluminum electrolytic capacitors. During this term the production capacity of this facility has been increased as a result of the take over of the aluminum electrolytic capacitor division of Samsung Electro-Mechanics located in the same Tianjin City. Samsung Electro-Mechanics is one of the principal firms of the Korea Samsung group. In Dong Guan City, Guangdong in southern China, Nichicon’s circuit products are being produced on a consignment basis. At each of the production bases, we have managed to successively reinforce production capacity. As we increase our manufacturing presence in China we dispatch quality control specialists from Japan to insure Nichicon’s rigid high quality standards are met.

Nichicon has set up sales bases in many parts of the world in order to fulfill its responsibility of supplying products as an electronic component manufacturer. In addition to NICHICON (AMERICA) CORP. in North America and NICHICON (EUROPE) LTD. in England, during the first half of the current term we set up NICHICON (AUSTRIA) GmbH in Vienna with an eye to supplying the Eastern European market. In Southeast Asia, we have set up NICHICON (SINGAPORE) PTE. LTD. and NICHICON (THAILAND) CO., LTD. During the first half of the term, we continued to upgrade and expand our sales network in the Chinese market where Japanese-affiliated firms and companies from other countries have branched out in abundance in recent years. NICHICON ELECTRONICS TRADING (SHANGHAI) CO., LTD. and its newly established Dalian sub-branch are cultivating the market in northern and central China. NICHICON (HONG KONG) LTD., its Shenzhen sub-branch and NICHICON (TAIWAN) CO., LTD. are responding to the needs of customers in Hong Kong, southern China, and Taiwan. In addition to the 10 worldwide sales bases mentioned above, two of our production subsidiaries NICHICON ELECTRONICS (WUXI) CO., LTD. and NICHICON (MALAYSIA) SDN. BHD., have successful sales organizations.

NICHICON (THAILAND) CO., LTD.

NICHICON (HONG KONG) LTD.

NICHICON (AMERICA) CORP.

NICHICON (TAIWAN) CO., LTD.

10

125,000

100,000

75,000

50,000

25,000

01999/3 2000/3 2001/3 2002/3

6,625

22,938

20,264

103,1235,506

54,415

36,231

20,413

58,684

5,837106,246 105,891

121,201

21,312

13,537

53,678

125,000

100,000

75,000

50,000

25,000

01999/3 2000/3 2001/3 2002/3

103,123 106,246 105,891

121,201

2003/3

110,071

2003/3

110,07120,152

24,984

69,873

6,192

14,334

24,669

61,008

5,880

4,88017,618

2,930

77,694

4,9564,102

19,017

78,171

5,59622,221

89,304

4,080

24,658

73,505

2,8394,889

80,064

23,220

4,4682,319

Results by Business Segment

Regional Sales Breakdown

Nichicon’s operations are divided into four business segments. “The Capacitors for Electronics Segment” represents plastic film capacitors and positive thermistors, as well as the company’s mainstay, aluminum electrolytic capacitors and tantalum electrolytic capacitors. “The Circuit Products Segment” includes switching power supplies and hybrid ICs, circuit modules, etc., which are developing into a new core business for Nichicon. “The Capacitors for Electric Apparatuses and Power Utilities Segment” consists of low and high voltage capacitors for industrial power utilities and other electric power control equipment for buildings, factories, and automobile/railway cars. The Others Segment deals in capacitor-related equipment. In this term, the sales rate of the Capacitors for Electronics Segment rose to 72.7%, 3.3 percentage points up from the previous term thanks to the steady demand of digital household appliances and information-related appliances.

Gross domestic sales for the term stood at ¥53,678 million, a decline of 12% from the previous term because of the continuous slump of our domestic economy. On the other hand, overseas sales rose to ¥56,393 million, 25.6% up from the previous term, which came to occupy 51.2% of overall sales. This is the first time in the company’s history that overseas sales surpassed 50%. The primary factor contributing to the increase in overseas markets was steady sales in Asia, especially in the Chinese market, while sales were sluggish in the markets of the Europe and the U.S. In this term, a production subsidiary in China, Nichicon Electronics (Wuxi) Co., Ltd., and a local Nichicon joint venture company started their operations. In addition, the company took over the aluminum electrolytic capacitor division from the Samsung’s subsidiary in Tianjin, which is one of the central firms of the Korea Samsung group, through our another joint venture company in Tianjin. This joint venture will reinforce our China production capacity. Furthermore, we upgraded and expanded our sales bases to strengthen the production/sales system in the Chinese market which has greatly contributed to the increase in overseas sales.

Sales Breakdown by Operating Segments

Regional Sales Breakdown

Aluminum electrolytic capacitorsTantalum electrolytic capacitorsPlastic film capacitorsPositive thermistors “Posi-R”

Capacitor-related devicesCapacitor raw materials

Capacitors for electric apparatus and power utilities: 4.1%Plastic film capacitors

Others 2.1%

Capacitors for electronics: 72.7%

Circuit products: 21.1%Switching power suppliesHybrid ICs Circuit modules

Net Sales by Product Category (Millions of Yen)

Capacitors for electronics

Circuit products

Others

Capacitors for electric apparatus and power utilities

Net Sales by Location (Millions of Yen)

Japan

Asia

The Americas

Europe and others

Britain, France, Germany

Asia: 32.9%China and ASEAN

The Americas: 12.3%The U.S., Brazil, Mexico

Europe and others: 6.0%

Japan: 48.8%


11

0

20,000

40,000

60,000

80,000

100,000

2002/31999/3 2000/3 2001/3

77,694 78,17173,505

89,304

2003/3

80,064

In this term, the sales of this segment amounted to ¥80,064 million, up 8.9% from the previous term. This was attributed to a steady demand for digital household appliances and information and communications products such as PDPs (Plasma Display Panels), liquid crystal televisions, DVD players/recorders, digital still cameras, car navigation systems, and an increase in sales in Southeast Asian countries and China. In this term, we introduced a number of new products to our such key markets as information and communication-related, automobile/railway car-related appliances, digital household appliances, and inverter household appliances. In the field of aluminum electrolytic capacitors, we developed for the first time in the industry “Ultra low 3mm chip aluminum electrolytic capacitors ZD series ,” which contributes to the downsizing/thinning of electronic appliances. Another “first” is Nichicon’s “Ultra low-impedance aluminum electrolytic capacitors HZ series ,” which realizes the lowest impedance in the industry allowing the user to achieve the delivery of a smooth supply of power to personal computers/AV appliances, etc. Also introduced was. Nichicon’s “High ripple/long-life small-size

aluminum electrolytic capacitors PZ/CS series ,” which contributes to the downsizing/thinning/weight-economizing of information and communication electronic appliances. In the field of automobiles, we began manufacturing “Ultra-highly reliable aluminum electrolytic capacitors PX series ,” which achieved for the first time in the industry a 105°C and 20,000-hour warranty (four-fold over the highly reliable conventional standard). We developed “Large-sized aluminum electrolytic capacitors for automobiles EV series ,” for use in electrical vehicle batteries. This product provides high thermostability under high-temperature environment, and features performance characteristics such as surge resistance, vibration proof, compliance with large power currents, and excellent high ripple functions all in an industry desired downsized package. In the field of tantalum electrolytic capacitors, we developed “Ultra thin frameless chip tantalum electrolytic capacitors ,” which boasts a distinguished volumetric efficiency and excellent high frequency properties. This series has already contributed to the thinning/weight-economizing of mobile phones.

Current Term Review

Outlook for the Next Term

Capacitors for Electronics

Sales of Capacitors for Electronics (Millions of Yen)

Ultra low 3mm chip aluminum electrolytic capacitors ZD series

Ultra low-impedance aluminum electrolytic capacitors HZ series

High ripple/long-life small-size aluminum electrolytic capacitors PZ/CS series

Ultra-highly reliable aluminum electrolytic capacitors PX series

Large-sized aluminum electrolytic capacitors for automobiles EV series

Ultra thin frameless chip tantalum electrolytic capacitors

The future of the world economy is still uncertain. And the difficult situation is expected to continue for some time. Even in such circumstances, this segment will continuously focus on our key markets, as mentioned above. We will also further strengthen the overseas production/sales of aluminum electrolytic capacitors, and promote a full range of measures. As for tantalum electrolytic capacitors, we are planning to enhance the production capacity by 20% during the next term by emphasizing our efforts in the growth markets.

12

17,618

22,22123,220

0

5,000

10,000

15,000

20,000

25,000

2002/31999/3 2000/3 2001/3 2003/3

24,658

19,017

In this term, the sales of this segment declined by 5.8% from the previous term to ¥23,220 million. The circuit products segment is subdivided into “switching power supplies” and “hybrid ICs/circuit modules.” Sales of the entire segment fell because of a downturn in sales of switching power supplies in spite of the steady sales of hybrid ICs/circuit modules for information and communication-related and automobile/railway car-related appliances. Sales of “switching power supplies” amounted to ¥16,982 million (13.3% decline), and the sales of “hybrid ICs/circuit modules” stood at ¥6,238 million (22.8% increase). “Switching power supplies” convert AC power to DC sending power to specific circuitry. They are the heart of electronic equipment and are used in various products, including information and communications equipment as well as digital household appliances. In this term, our production subsidiary in China, Nichicon Electronics (Wuxi) Co., Ltd., started production of switching power supplies to meet local demand. “Hybrid ICs/circuit modules” place a variety of electronic

components on a ceramic or resin circuit board to create a module that can perform a certain function. These devices have been widely used for various applications, such as car electronics, OA equipment, telecom and industrial appliances. During this term demand we saw increases in the telecom sector, specifically, mobile phones and for car engine controllers in the automotive sector. Several new products were unveiled during the year. In the field of switching power supplies, we developed “Power Supply for X-ray sensor .” This is a DC/DC converter developed for use with medical appliances that enable X-ray measurements to be taken in a simple manner. It features low noise for use in X-ray image processing and has a thin structure, measuring only 17.5 mm in thickness. And in the switching power supply field we also developed “IGBT-compliant IH power supply (Induction Heating System) .” This is a power supply unit for IH (electromagnetic induction heating) type color laser beam printers compliant with a large power transistor, the IGBT (Insulated Gate Bipolar Transistor) component. This product also greatly contributes to the energy-saving efforts of such printers by converting large electric power to heat energy promptly and efficiently.

Current Term Review


At the end of the term, there is an indication that demand centering on mobile phones, an area that leads the information and communication-related appliances market, is going to recover. This segment seeks to maintain stable and expanding domestic production by heightening the added value of products and to reinforce the overseas production of switching power supplies with a focus on the production subsidiary in Wuxi, China. With respect to switching power supplies, we will seek to especially focus on the OA/document appliances market and decrease our dependence on the game consoles appliance markets.

Circuit Products

Power Supply for X-ray sensor IGBT-compliant IH power supply (Induction Heating System)

Sales of Circuit Units (Millions of Yen)


0

1,000

2,000

3,000

4,000

5,000

13

2,8392,930

2,319

2002/31999/3 2000/3 2001/3 2003/3

4,102 4,080

0

2,000

3,000

4,000

1,000

5,000

6,000

2002/31999/3 2000/3 2001/3 2003/3

4,8894,880 4,956

5,596

4,468

Others

Capacitors for Electric Apparatuses and Power Utilities

Low voltage type Geo DRY

DC power supply for high frequency transmitter for Klystron

Power supply for S-band Klystron

Current Term Review


During the next term, the level of capital investments by the private sector is expected to stay low. Although the future of this segment will remain troubled, Nichicon will positively focus its energies on demand creation of new products. And we will continuously focus on the development of products that will effectively contribute to the protection of the environment.

In this term, the sales of this segment were ¥4,468 million, an 8.6% decline from the previous term owing to sluggish capital investment in the private sector. As a new product for this term, we developed and attempted to sell “Low voltage type Geo DRY”. This is a dry type advanced phase power capacitor that adopts nitrogen (N2) gas instead of sulfur hexafluoride (SF6) gas, the emissions of which are regulated due it’s greenhouse gas status. This product is a

disaster prevention capacitor most suitable for electric power control equipment used in buildings, hotels, hospital, segment stores, and other facilities that emphasize disaster prevention. Furthermore, it is an environmentally friendly product because it employs lead-free solder in connecting capacitor elements and PVC (polyvinyl chloride)-less caps for terminal protection. With the launch of this product, Nichicon became the only manufacturer to offer a full lineup of disaster prevention and low to high voltage dry type power capacitors.

Current Term Review


In the next term, this segment plans to concentrate its attention especially on receiving orders for accelerator-related equipment and power supplies for industrial equipment.

In this term, sales of capacitor-related equipment, etc. amounted to ¥2,319 million, an 18.3% decline from the previous term. This decrease was a result of large reductions in orders from research institutions. This segment develops and manufactures special apparatuses for universities and research institutions applying high voltage and large current control technology. During this term, the segment delivered “DC power supply for

high frequency transmitter for Klystron ” to the High Energy Accelerator Research Organization of the Ministry of Education, Science and Culture. Nichicon’s “Power supply for S-band Klystron ”, was delivered to the Independent Administrative Institution of the National Institute of Radiological Sciences.

Sales of Capacitors for Electric Apparatusand Power Utilities (Millions of Yen)

Sales of Others (Millions of Yen)

14

Automatic high-speed inspection Chip-bonding

Electro-magnetic power supplies

Nichicon spun off KAMEOKA FACTORY, which produces hybrid ICs and positive thermistors, into a separate company and let it start as a newly established subsidiary, “NICHICON (KAMEOKA) CORPORATION,” on the 1st of April 2003. This restructuring is a part of the performance of our business policy “Construction of a more trim and muscular corporate organization.” From now on, this new company will take responsibility for business performance as a manufacturing firm and further strengthen technological capabilities and cost competitiveness under the financial self-sufficiency system. NICHICON (KAMEOKA) CORPORATION is our wholly owned subsidiary and was capitalized at ¥80 million. The new company will employ all the workers of the factory, and will continue its manufacturing activities. As for sales activities, Nichicon will assume the sales activities in the same way as in the past. The goal of sales for the next term (ending March 2004) is ¥10,000 million. We intend as a matter of policy to enhance the technological development capabilities and release new products that promptly serve the needs of the changing times.

KAMEOKA FACTORY Spun Off

The “B-factory project” promoted by the High Energy Accelerator Research Organization of the Ministry of Education, Science and Culture is known as a project designed to reveal the mystery of the birth of the universe. Nichicon delivered electro-magnetic power supplies to stabilize the beam orbit of the accelerators (KEKB accelerator) for the B factory over the period from 1998 to 1999. In celebration of the accelerators attaining the world record in both performance and accumulated experimental data, a ceremony was held in December 2002, where the cooperative companies, including Nichicon, were given Certificates of Appreciation by the High Energy Accelerator Research Organization. This is a sign that the company’s technological capabilities are highly regarded. Our power supplies for accelerators are used in the big collaborative project of the High Energy Accelerator Research Organization and Japan Atomic Energy Research Institute, “Japan Proton Accelerator Research Complex (J-PARC),” which is now in progress. Furthermore, our products played a role in the generation of artificial neutrinos for a K2K experiment conducted by the 2002 Nobel Prize physics scientist Masatoshi Koshiba, who is a professor emeritus at Tokyo University. Nichicon will continue to contribute to scientific progress in Japan by positively utilizing the technology we own.

Nichicon Received Certificate of Appreciationfrom High Energy Accelerator Research Organization

Certificates of Appreciation by the High Energy Accelerator

Research Organization

News & Topics

15

President Takeda of NICHICON CORPORATION played the role of host.

2002 Kyoto Symposium Plant tour ( Information on the production process was given.)

TECHNO-FRONTIER 2003~Power Supply System Exposition

CEATEC JAPAN 2002

In October 2002, the “2002 Kyoto Symposium” was held under the auspices of TIC (Tantalum-Niobium International Study Center) over two days, with some 250 participants consisting of tantalum capacitor producers, tantalum/ niobium-related materials producers, and members of related academic societies attended from all over the world. At this symposium, our president, Ippei Takeda, played the role of host. He proposed that the whole business world address improvements in customer satisfaction, and received a tremendous ovation from the participants at the welcoming party. Moreover, at the technology conference, our general manager of technical and engineering division made a presentation on niobium capacitor technology and thus made an appeal to the world about our technological capabilities concerning a study of anodic formed niobium oxide film. On the second day of the symposium, NICHICON TANTALUM CORPORATION, our consolidated subsidiary in Shiga Prefecture, handled a plant tour, at which some 90 industry persons from the world over participated and enjoyed the tour for information on the production process of tantalum electrolytic capacitors. After the tour, Dr. Axel Hoppe, the TIC official, gave a word of appreciation for the tour. We believe that we fulfilled our leadership role in the area of the world's tantalum/niobium-related industries through this symposium.

TIC2002 Kyoto Symposium Held

Nichicon participated at “CEATEC JAPAN 2002,” the international exposition of electronics-related appliances/components held at Makuhari Messe from October 7-11, 2002. We introduced up-to-date products and technology that suit the changing needs of the times for high-frequency, digitization, minimization, environmental protection, and other attributes by each of our emphasizing markets. These markets include communication-related appliances, digital household appliances, automobile/railway car-related appliances, and inverter household appliances. The show attracted the attention of worldwide visitors. Nichicon also participated in “TECHNO-FRONTIER 2003 - Power Supply System Exposition,” an exposition showcasing power supply-related professional technology held at Makuhari Messe from April 16-18, 2003. We introduced “Ultra low impedance aluminum electrolytic capacitors,” “chip type tantalum solid electrolytic capacitors with high-capacitance FRAMELESS Series,” “low power consumption switching power supplies,” and many other new products. The show was well attended and the Nichicon booth attracted the attention of many visitors each day. Our plan is to continue participation in expositions such as those mentioned above in order to advertise our new products and technology in a strong and positive manner thereby enhancing Nichicon’s brand power and recognition.

Nichicon Positively Exhibited at Various Expositions

16

In this fiscal year ended March 31, 2003, net sales increased by ¥4,179 million (3.9%) to ¥110,071 million. Although the sluggish condition, called an “IT slump” in the first half of the term, did not improve so much throughout the term because of the decrease in domestic and overseas consumption in the latter half of the term, the expansion of sales in the Asian region made up for the sales decline in Japan and the US, and the date of settlement for the consolidated subsidiaries was changed, which factors contributed to the increase in net sales. Additionally, ¥3,535 million out of the total increase of the net sales is attributed to the change in the date of settlement for the consolidated subsidiaries. The company unified the date of settlement for each company of the group to March 31, the date of the consolidated financial settlement. The purpose of this change is to grasp their operational conditions, including those of inter-group transactions, more correctly and thereby strengthen the consolidated management. This change in the date of settlement was applied to 14 (overseas: 7, domestic: 7) out of the 17 consolidated subsidiaries, and all of the dates of settlement became March 31. (For more information about the changes in the financial year for consolidated subsidiaries, please see page 23, note 2.) Sales of capacitors for electronics rose 8.9% to ¥80,064 million, thanks to the steady sales of digital household appliances, such as PDPs (Plasma Display Panels)/liquid crystal television sets, DVD players/recorders, and digital cameras, and information and communication-related appliances, and increasing sales in the Southeast Asian and Chinese markets, etc. Sales of circuit products decreased by 5.8% to ¥23,220 million as a result of being plagued by the sluggish increase in orders of switching power supplies in spite of the favorable progress in sales of hybrid ICs for information and communication appliances and automobile/railway car-related appliances. Sales of capacitors for electric apparatuses and power utilities fell 8.6% to ¥4,468 million, owing to the doldrums affecting capital investment in the private sector. Overseas sales rose greatly 25.6% to ¥56,393 million, sustained by the steady sales in the Chinese and other Asian markets in spite of the decreasing level of demand in the US and European markets. The ratio of domestic sales to total sales was 48.8% whereas the ratio of overseas sales to total sales was 51.2%. The overseas sales ratio rose sharply compared to the last term (57.6% vs. 42.4%) and surpassed the domestic sales ratio for the first time. (Please see pages 10-13 for more information on

sales by geographical region and product segment.)

Cost of sales rose 2.3% to ¥90,454 million in accordance with the increasing sales. But the cost of sales ratio decreased 1.3 percentage points to 82.2% due to our continuous achievement in this term of the high-rate in-house production of aluminum electrode foil - a major material and one of our mainstay products, the company-wide improvement of productivity and cost reduction in materials purchased, etc. Selling, general, and administrative expenses decreased 3.3% to ¥11,953 million, and the ratio of selling, general, and administrative expenses to sales declined 0.9 percentage point to 10.8% due to the great decrease in retirement benefit liabilities by ¥6 million compared to ¥1,633 million in the previous term as a result of having given up the surrogate service for the employees’ pension fund and the upturn of financial operations, in spite of the increase in transportation expenses along with increasing sales. The deficit balance in connection with the retirement benefit liabilities was caused by the decline in benefit obligations due to having given up the surrogate service compared to the previous term and an increase in the outstanding pension. (Refer to page 28, note 8).

Operating income for this term rose 50.9% to ¥7,664 million and operating profit on sales increased 2.2 percentage points to 7.0% due to the decline in selling, general, and administrative expenses, in spite of the increase in cost of sales. The increased amount due to the change in the date of settlement for consolidated subsidiaries was ¥321 million. In the non-operating (expenses) items, ¥718 million was added up as the non-operating expenses. This is because interest and dividends income declined from ¥855 million to ¥443 million; ¥788 million in foreign exchange losses occurred in this term while foreign exchange profit was recorded in the previous term; on the other hand ¥670 million in losses from securities revaluation was caused subsequent to the previous term by the worsening stock market conditions; ¥161 million in gains from the sale of fixed assets occurred while losses from the sale of fixed assets was ¥186 million. However, income before income taxes and minority interest rose 30.2% to ¥6,946 million owing to large increases in operating profits. Income tax expenses were reduced by ¥1,532 million in the previous term as a result of the adoption of tax effect accounting that caused an income tax adjustment. But in

Net SalesCost of Sales, and SG&A Expenses

Operating Income and Net Income

Financial Review This section reviews Nichicon’s consolidated financial statements.

17

this term, ¥807 million was added up, and as a result net income rose 10.5% to ¥3,302 million, which pushed up the Return On Sales (ROS) by 0.2 percentage points to 3.0%. Earnings per share (EPS) increased by ¥3.69 to ¥40.57.

At the end of this term, total assets decreased 1.6% to ¥155,084 million compared to the end of the previous term. Current assets decreased by 2.3% to ¥76,459 million. This was mainly attributable to the decrease in note and account receivables, which amount to ¥2,574 million. Also, the other current assets were reduced by ¥947 million from ¥2,690 million in the previous term to ¥1,743 million in this term. Tangible fixed asset decreased 12.0% to ¥50,354 million compared to the end of the previous term. This is mainly due to depreciation. The total amount of capital expenditures during this term was ¥8,098 million, a decrease of ¥7,948 million from the previous year. Major elements of these expenditures were ¥6,322 million for rationalization, labor-saving initiatives, and the development of capacitor production for electronic appliances. All expenditures were funded internally. Also, depreciation expenses for the year decreased 9.6% from the previous fiscal year to ¥13,212 million. Investments and others increased 28.2% to ¥28,271 million. This was mainly because investment in securities rose to ¥21,517 million, an increase of ¥6,067 million from the previous term. On the other hand, as for liabilities, current liabilities increased 2.3% to ¥24,319 million. This is mainly because trade notes and accounts payable increased by ¥1,405 million to ¥16,921 million owing to the increasing purchases caused by the rise in sales. Also, notes and accounts payable for construction decreased by ¥166 million to ¥1,489 million owing to a decrease in capital expenditures. Fixed liabilities decreased 12.4% to ¥12,160 million compared to the end of the previous term. This is mainly because the reserve for retirement benefits (for employees) decreased by ¥1,686 million to ¥11,399 million. Working capital, the difference between current assets and current liabilities, was ¥52,140 million and the current ratio was 314.4%, a decline of 15.0 percentage points from the previous fiscal year’s 329.4%. The year’s retained earnings balance at the end of the term rose to ¥88,322 million, an increase of ¥2,222 million from the previous term. The application of market value accounting resulted in the inclusion of ¥897 million, a decline of ¥582 million

from the previous fiscal year’s ¥1,479 million. This figure is obtained by subtracting the book value of securities holdings from their market value, and then further subtracting a provision for deferred taxes. Due to these factors, shareholders’ equity decreased to ¥118,505 million, a decline of ¥1,320 million from the previous term’s ¥119,825 million. The shareholders’ equity ratio improved 0.3 percentage points from the previous fiscal year to 76.4%. The shareholders’ equity per share climbed 0.04% to ¥1,483.68. The return on equity (ROE) for the year rose 0.3 percentage points to 2.8% and the return on total assets (ROA) rose 0.3 percentage points to 2.1%.

The cash and equivalents for the year increased ¥1,454 million to ¥14,403 million, up from the previous year’s ¥12,949 million. The factors behind this fluctuation are as follows: Net cash flow provided by operating activities was ¥18,474 million, a decrease of ¥1,254 million. Major causes of this decline were a ¥1,613 million increase in income before income taxes and minority interest to ¥6,946 million; a ¥2,064 million increase in trade payable; a ¥2,163 million decrease in trade receivable; a ¥1,407 million decrease in depreciation expenses to ¥13,212 million; and a ¥3,871 million decrease to ¥1,667 million in retirement benefit expenses due to having given up the surrogate service for the employees’ pension fund and an upturn in financial operations. The main reason was that these decreasing factors outnumbered the increasing factors. Net cash flow used in investing activities decreased ¥2,457 million to ¥14,030. This was mainly because of the payment of ¥19,163 million for the acquisition of investment securities and ¥8,183 million for the acquisition of tangible fixed assets, both of which contributed to the decrease of ¥15,234 million from the previous consolidated fiscal year. Net cash flow used in financing activities decreased to ¥2,363 million, ¥1,174 million down from the previous term. The primary items accounting for this cash outflow were dividend payments of ¥1,051 million and use of retained earnings to repurchase treasury stocks amounting to ¥1,299 million. On the other hand, retirement of treasury stocks was not carried out during this term, which was performed in the previous term with a profit of ¥2,569 million.

Financial Position

Cash Flows

Note: All percentage changes are rounded to the nearest tenth of a percent. However, if the first decimal place is “0,” they are rounded to the nearest hundredth of a percent.

18

)

)

)

14,403

13

6,653

22,266

158

28,761

9,953

18,940

2,646

1,743

76,459

5,394

29,589

133,850

445

169,278

118,924

50,354

21,517

2,815

2,707

1,511

279

28,271

155,084

¥

(

(

(

¥

)

)

)

12,949

14

6,331

25,162

284

31,209

10,563

18,357

2,512

2,690

78,294

5,485

30,022

135,427

480

171,414

114,214

57,200

15,450

2,204

3,237

1,443

282

22,052

157,546

¥

(

(

(

¥

)

)

)

$

(

(

(

$

121,026

112

55,900

187,096

1,329

241,667

83,628

159,143

22,235

14,644

642,455

45,324

248,628

1,124,697

3,743

1,422,392

999,279

423,113

180,797

23,655

22,748

12,694

2,343

237,551

1,303,119

2003 20032002

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Current assets:

Cash and cash equivalents

Time deposits

Trade receivable:

Notes

Accounts

Less: allowance for doubtful accounts

Short-term investments (Note 4)

Inventories (Note 5)

Deferred tax assets (Note 14)

Other current assets

Total current assets

Property, plant and equipment :

Land

Buildings and structures

Machinery and equipment

Construction in progress

Less: accumulated depreciation

Net property, plant and equipment

Investments and other assets :

Investments in securities (Note 4)

Investments in and advances to unconsolidated

subsidiaries and affiliates

Deferred tax assets (Note 14)

Other

Less: allowance for doubtful accounts

Total investments and other assets

Total assets

ASSETS

Millions of Yen Thousands of U.S. Dollars

(Note 3)

March 31, March 31,

The accompanying notes are an integral part of these statements.

NICHICON CORPORATION AND CONSOLIDATED SUBSIDIARIESMarch 31, 2003 and 2002

Consolidated Balance Sheets

19

)

)

5,119

11,802

16,921

1,489

1,407

3,533

7

962

24,319

11,663

6

491

12,160

100

14,287

17,065

88,322

897

138

1,928

—

118,505

155,084

¥

(

(

¥

)

)

6,195

9,321

15,516

1,655

2,239

3,237

—

1,119

23,766

13,330

50

497

13,877

78

14,287

17,065

86,100

1,479

1,523

—

629

119,825

157,546

¥

(

¥

)

$

(

(

$

43,008

99,170

142,178

12,513

11,829

29,689

58

8,075

204,342

97,996

53

4,128

102,177

847

120,046

143,392

742,141

7,533

1,159

16,200

—

995,753

1,303,119

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . .

Current liabilities:

Trade payable:

Notes

Accounts

Notes for construction

Accrued income taxes (Note 14)

Accrued expenses

Deferred tax liabilities (Note 14)

Other current liabilities

Total current liabilities

Long-term liabilities:

Accrued severance indemnities (Note 8)

Deferred tax liabilities (Note 14)

Other long-term liabilities

Total long-term liabilities

Minority interest

Shareholders’ equity (Note 10):

Common stock,

Authorized:

-137,000,000 shares at March 31, 2003 and 2002

Issued:

-81,144,372 shares at March 31, 2003 and 2002

Additional paid-in capital

Retained earnings

Unrealized holding gains on securities (Note 11)

Adjustments on foreign currency statement

translation

Less: treasury stock

-1,291,261 shares at March 31, 2003

-347,207 shares at March 31, 2002

Total shareholders’ equity

Total liabilities and shareholders’ equity

LIABILITIES AND SHAREHOLDERS’ EQUITY

2003 20032002


(Note 3)

March 31, March 31,

20

110,071

90,454

11,953

102,407

7,664

443

17

788

51

670

25

288

718

6,946

2,836

808

3,644

0

3,302

40.57

—

13.00

80,687

—

¥

(

(

(

(

(

(

¥

¥

)

)

)

)

)

)

105,892

88,451

12,361

100,812

5,080

855

12

313

80

739

90

6

253

5,333

3,853

1,532

2,321

24

2,988

36.88

36.72

13.00

81,021

81,367

¥

(

(

(

(

(

¥

¥

)

)

)

)

)

$

(

(

(

(

(

(

$

$

)

)

)

)

)

)

924,892

760,052

100,440

860,492

64,400

3,729

143

6,623

432

5,634

212

2,410

6,041

58,359

23,834

6,785

30,619

2

27,742

0.34

—

0.11

Millions of Yen

For the years ended March 31, For the year ended March 31,

Yen

U.S. Dollars

(Note 3)


Thousands of U.S. Dollars(Note 3)

20022003 2003

Net sales (Note 15)

Operating costs and expenses (Note 15) :

Cost of sales (Note 13)

Selling, general and administrative expenses (Note 12,13)

Total operating costs and expenses

Operating income (Note 15)

Other income (expenses):

Interest and dividend income on investments

Interest expenses

Foreign exchange gain, net

Equity in net gains (loss) of affiliated company

Loss on valuation of short-term investments

and investments in securities

Net loss on sales or disposal of property, plant

and equipment

Other, net

Total other income (expenses), net

Income before income taxes and minority interest

Income taxes (Note 14) :

Current

Deferred

Total income taxes

Minority interest

Net income

Amount per share:

Net income (Note 16) :

Basic

Diluted

Cash dividends

Weighted average number of shares (Thousands) :

Basic

Diluted

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . .

. . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

NICHICON CORPORATION AND CONSOLIDATED SUBSIDIARIESFor the years ended March 31, 2003 and 2002

Consolidated Statements of Income

21

14,287

—

—

—

—

—

—

—

14,287

—

—

—

—

—

—

14,287

82,624,372

—

—

—

—

—

—

1,480,000

81,144,372

—

—

—

—

—

—

81,144,372

17,065

—

—

—

—

—

—

—

17,065

—

—

—

—

—

—

17,065

649

—

—

—

—

—

2,549

2,569

629

—

—

—

—

—

1,299

1,928

(

(

(

(

(

)

)

)

)

)

(

(

)

)

(

(

)

)

(

(

(

(

(

)

)

—

—

—

)

)

)

)(

(

(

(

)

)

)

(

(

)

)

(

(

)

)

( )

86,732

2,988

1,019

32

2,569

86,100

3,302

1,051

29

—

—

—

88,322

81,144,372

—

—

—

—

—

—

81,144,372

120,046

—

—

—

—

—

—

120,046

1,988

—

—

—

509

—

—

—

1,479

—

—

—

582

—

—

897

12,426

—

—

—

4,893

—

—

7,533

180

—

—

—

—

1,343

—

—

1,523

—

—

—

—

1,661

—

138

12,800

—

—

—

—

13,959

—

1,159

143,392

—

—

—

—

—

—

143,392

723,470

27,742

8,827

244

—

—

—

742,141

5,284

—

—

—

—

—

10,916

16,200

Number ofshares of

common stock

Unrealizedholding gainson securities

Adjustments onforeign currency

statement translation

Unrealizedholding gainson securities

Adjustments onforeign currency


Millions of Yen

Common stock

Additionalpaid-in capital

Retainedearnings

Treasurystock

Net income

Cash dividends paid

Bonuses to directors

Decrease due to valuation of securities

Adjustments on foreign currency


Increase in treasury stock

Repurchase and retirement of

treasury stock

Net income

Cash dividends paid






Net income

Cash dividends paid






Balance at March 31, 2001





Thousands of U.S. Dollars (Note 3)

Number ofshares of

common stockCommon

stockAdditional

paid-in capitalRetainedearnings

Treasurystock


¥

¥

¥

¥

¥

¥

¥

¥

¥

¥

¥

¥

¥

¥

¥

¥

¥

¥

$

$

$

$

$

$

$

$

$

$

$

$


Consolidated Statements of Shareholders’ Equity

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . .

. . . . .

. . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . .

. . . . .

. . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . .

. . . . . . . . .

. . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . .

. . . . .

. . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . .

. . . . . . . . .

. . . . . . . . .

22

6,946

13,21225

1,66744317

2,163940

2,064337

21,71444117

3,66418,474

19,163

10,7408,183

02,576

14,030

1,299—

1,051

—13

2,363

6651,416

12,949

3814,403

58,359

111,017212

14,0073,729

14318,1757,901

17,3392,854

182,4623,704

14330,786

155,237

161,017

90,24368,757

321,642

117,892

10,916—

8,827

—117

19,860

5,58511,900

108,807

319121,026

2003

¥

((

(

((

(

((

(

(

(

((

(

¥

))

)

))

)

))

)

)

)

))

)

5,333

14,61990

2,20485512

10,1573,2119,720

20925,260

86412

6,38419,728

7,689

13,69923,417

0920

16,487

85105

1,019

2,56931

3,537

487191

12,758

—12,949

¥

(

(

((

(

(

(

(

(

(

(

¥

)

)

))

)

)

)

)

)

)

)

$

((

(

((

(

((

(

(

(

((

(

$

))

)

))

)

))

)

)

)

))

)

. . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . .

. . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . .

. . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . .

20032002

For the years ended March 31,

Millions of Yen

For the year ended March 31,


Thousands of U.S. Dollars(Note 3)

Operating activities: Income before income taxes and minority interestAdjustments for: Depreciation and amortization Net loss on sales or disposal of property, plant and equipment Provision for (reversal of) accrued severance indemnities Interest and dividend income Interest expenses Decrease in notes and accounts receivable (Increase) decrease in inventories Increase (decrease) in notes and accounts payable Other, net

Sub total Interest and dividend income received Interest expenses paid Income taxes paid

Net cash provided by operating activities Investing activities:

Payments for purchase of short-term investments and investments in securities Proceeds from sales of short-term investments and investments in securities Payments for purchase of property, plant and equipment Decrease in time deposits Decrease in other investments

Net cash used in investing activities

Financing activities: Payments for purchase of treasury stock Proceeds from sales of treasury stock

Cash dividends paid Payments for repurchase of treasury stock 　　for retirement

Other, netNet cash used in financing activitiesEffect of exchange rate changes on cash and

cash equivalentsNet increase in cash and cash equivalentsCash and cash equivalents at beginning of the yearCash and cash equivalents of Newly Consolidated SubsidiariesCash and cash equivalents at end of the year


Consolidated Statements of Cash Flows

23

Fiscal year-end

March 31March 31March 31March 31March 31March 31March 31March 31March 31March 31

December 31 March 31 March 31 March 31 March 31

December 31December 31

Country and jurisdictionof incorporation

Equity ownershippercentage at

March 31, 2003

NICHICON TANTALUM CORPORATIONASAHI ELECTRIC INDUSTRIES CO., LTD.NICHICON (IWATE) CORPORATION WAKASA ELECTLIC CORPORATIONDENDO CORPORATION NICHICON (FUKUI) CORPORATIONNICHICON (SHIGA) CORPORATIONNICHICON (AMERICA) CORP.NICHICON (HONG KONG) LTD.NICHICON (EUROPE) LTD.NICHICON (SINGAPORE) PTE. LTD.NICHICON (MALAYSIA) SDN. BHD.NICHICON (TAIWAN) CO., LTD.NICHICON (AUSTRIA) GmbHNICHICON (THAILAND) CO., LTD.NICHICON ELECTRONICS (WUXI) CO., LTD.NICHICON ELECTRONICS TRADING (SHANGHAI) CO., LTD.

JapanJapanJapanJapanJapanJapanJapanU.S.A

China(Hong Kong)United Kingdom

SingaporeMalaysiaTaiwanAustria

ThailandChinaChina

100.0%100.0%100.0%100.0%

95.0%100.0%100.0%100.0%100.0%100.0%100.0%100.0%100.0%100.0%

49.0%100.0%100.0%

Name

(1) Principles of Consolidation

The accompanying consolidated financial statements have been prepared based on the accounts maintained by NICHICON CORPORATION (the “Company”) and its domestic consolidated subsidiaries in accordance with the provisions set forth in the Japanese Commercial Code (the “Commercial Code”) and Japanese Securities and Exchange Law, and in conformity with accounting principles and practices generally accepted in Japan, which are different in certain respects as to application and disclosure requirements of International Accounting Standards. The accounts of overseas subsidiaries consolidated with the Company are based on the financial statements prepared in conformity with generally accepted accounting principles (the “GAAP”) and practices prevailing in the countries where the subsidiaries have been incorporated. Financial statements

have not been materially affected by the differences between the GAAP prevailing in these countries and Japanese GAAP. Therefore, no adjustments have been reflected in the accompanying consolidated financial statements to present the accounts of the subsidiaries in compliance with Japanese GAAP. Certain account balances, as disclosed in the basic consolidated financial statements in Japan, have been summarized or reclassified to the extent deemed necessary to enable presentation in a form which is more familiar to readers outside Japan. The consolidated financial statements are not intended to present the consolidated financial position, results of operations and cash flows in accordance with accounting principles and practices generally accepted in countries and jurisdictions other than Japan.

1. Basis of Presenting the Consolidated Financial Statements

Effective from the year ended March 31, 2003, NICHICON (THAILAND) CO., LTD., NICHICON ELECTRONICS (WUXI) CO., LTD. and NICHICON ELECTRONICS TRADING (SHANGHAI) CO., LTD, which increased their materiality of the impact on the consolidated financial statements, have been included in consolidation. Effective from the year ended March 31, 2002, NICHICON (AUSTRIA) GmbH, which was set up newly for 2002, has been included in consolidation. The remaining 2 subsidiaries as of March 31, 2002 were not consolidated because their combined assets, net sales, net income and retained earnings in the aggregate were not significant compared to those of the consolidated financial statements of the Companies. For the purpose of preparing the accompanying consolidated financial statements, all significant intercompany transactions, account balances and unrealized profits among the Companies have been eliminated. The amounts of certain subsidiaries have been included in consolidation on the basis of fiscal periods ended within three months prior to March 31. The Company had no unconsolidated subsidiaries and 12 affiliates as of March 31, 2003 and 2 unconsolidated subsidiaries and 12 affiliates as of March 31, 2002. The equity method is applied to the investments in 1 affiliate, SAMWHA ELECTRIC CO., LTD. since the total net income and retain earnings of the unconsolidated subsidiaries and affiliates other than SAMWHA ELECTRIC CO., LTD. are not material to the consolidated result of total net income and total retained earnings, respectively. The investments in the remaining unconsolidated subsidiaries and affiliates are carried at cost. ASAHI ELECTRIC INDUSTRIES CO., LTD., NICHICON

(EUROPE) LTD., NICHICON (MALAYSIA) SDN. BHD., NICHICON (TAIWAN) CO., LTD. and NICHICON (AUSTRIA) GmbH changed the date of its fiscal year end from December 31 to March 31 effective the fiscal year ended March 31,2003. Accordingly, the consolidated financial statements of these subsidiaries are presented for the year ended March 31,2003, for the fifteen-month period. NICHICON (IWATE) CORPORATION and NICHICON (FUKUI) CORPORATION changed the date of its fiscal year end from January 31 to March 31 effective the fiscal year ended March 31,2003. Accordingly, the consolidated financial statements of these subsidiaries are presented for the year ended March 31,2003, for the fourteen-month period. WAKASA ELECTLIC CORPORATION and DENDO CORPORATION changed the date of its fiscal year end from February end to March 31 effective the fiscal year ended March 31,2003. Accordingly, the consolidated financial statements of the subsidiaries are presented for the year ended March 31,2003, for the thirteen-month period.

(2) Translation of Foreign Currency Financial Statements The accounts of the overseas consolidated subsidiaries are translated into Japanese yen by the methods prescribed under the statements issued by the Business Accounting Deliberation Council of Japan. Under this method, all assets and liabilities are translated at current rates, while shareholders’ equity is translated at historical rates, and revenue and expense items are translated at the average rates during the year. The resulting translation adjustments are shown as “Adjustments on foreign currency statement translation” in the accompanying consolidated balance sheet.

The Company had 17 subsidiaries as of March 31, 2003 and 16 subsidiaries as of March 31, 2002. The accompanying consolidated financial statements include the accounts of the Company and 17 (14 for 2002) of its subsidiaries (together, the “Companies”), which are listed below:

2. Summary of Significant Accounting Policies

NICHICON CORPORATION AND CONSOLIDATED SUBSIDIARIES

Notes to the Consolidated Financial Statements

24

(3) Valuation of Securities Effective from the year ended March 31, 2001, the Company and its domestic consolidated subsidiaries have adopted the accounting standard for financial instruments issued by the Business Accounting Deliberation Council of Japan on January 22, 1999. Following the standard, securities held by them are classified as “held-to-maturity debt securities” or “Other securities”, which represents securities other than trading or “held-to-maturity debt securities”, based on the intent of holding each security for valuation. “Held-to-maturity debt securities” are stated at amortized cost. Marketable “Other securities” are stated at market value. Adjustments to market value as gains, on one by one basis, are recorded as increase in shareholders’ equity, net of tax, while adjustments to market value as losses, on one by one basis, are charged to income for the year. Costs of their sales are determined by the moving average method. “Other securities” which are not marketable are principally stated at cost, cost being determined by the moving average method.

(4) Inventories　　Finished goods and work in process are principally valued at cost determined by the average method. Other inventories are principally valued at cost determined by the moving-average method.

(5) Property, Plant and Equipment Depreciation for the Company and its domestic consolidated subsidiaries is computed by the declining-balance method except for depreciation of buildings acquired on or after April 1, 1998, at rates based on the estimated useful lives of assets. Depreciation of buildings acquired on or after April 1, 1998 for the Company and its domestic consolidated subsidiaries is computed by the straight-line method at rates based on the same above. Depreciation for the overseas consolidated subsidiaries is principally computed by the straight-line method at rates based on the estimated useful lives of assets. The range of estimated useful lives is principally from 7 to 50 years for buildings and structures and from 4 to 11 years for machinery and equipment. Normal repairs and maintenance including minor renewals and improvements are charged to income as incurred. Gain or loss on the disposal of property, plant and equipment is recognized in the period of disposal.

(6) Capitalized Computer Software Costs　　Capitalized computer software costs comprise costs of software used in the Companies’ business. Amortization of capitalized computer software costs, which are included in “Other” in investments and other assets, is computed on the straight-line method over 5 years, as the estimated useful lives. (7) Foreign Currency Translation　　Effective from the year ended March 31, 2001, the Company and its domestic consolidated subsidiaries have adopted the accounting standard for foreign currency transactions revised by the Business Accounting Deliberation Council of Japan on October 22, 1999, which required that all monetary assets and liabilities denominated in foreign currencies, whether short-term or long-term, should be, in principle, translated into Japanese yen at the relevant exchange rates prevailing at the respective balance sheet dates.

(8) Allowance for doubtful accounts　　The company and its consolidated subsidiaries provide for doubtful accounts principally at an amount computed based on the historical bad debt ratio during a certain reference period plus the estimated uncollectible amount based on the analysis of individual accounts.

(9) Hedge Accounting　　The Company enters into forward foreign exchange contracts on export transactions to hedge its exposure to fluctuation in foreign exchange rates. At the respective balance sheets dates, the forward foreign exchange contracts satisfying certain conditions are matched with receivables denominated in foreign currencies, which are translated into Japanese yen at the contracted rate of exchange. Effective from the year ended March 31, 2001, gains and losses arising from changes in fair value of the forward foreign exchange contracts other than those described above are deferred on the balance sheet to the period in which gains and losses on receivables hedged are recognized to match gains and losses on the forward foreign exchange contracts.

(10) Leases　　Where the financing leases do not transfer ownership of the leased property to the lessee during the terms of the leases, the leased property is not capitalized and the related lease expenses are charged to income in the periods in which they are incurred, as per the statements issued by the Business Accounting Deliberation Council.

(11) Accrued Severance Indemnities and Pension Plan　　Under the terms of the retirement plan of the Company, employees of the Company with more than 3 years of service are generally entitled to receive lump-sum payments on the time of retirement. The amount of the retirement benefit is, in general, determined based on the length of service, the cause of retirement, and the remuneration at the time of retirement. The Company also has a contributory pension plan which is interrelated with Japanese government social welfare program which consists of a basic portion requiring employee and employer contributions plus an additional portion established by the Company. The Company and its domestic consolidated subsidiaries have non-contributory pension plan. The amount of severance indemnities to be paid by the Company and its subsidiaries is reduced by the benefits payable under these pension plans. Certain overseas consolidated subsidiaries have defined contribution pension plans. On April 1, 2000, the Company and its domestic subsidiaries adopted the accounting standard for retirement benefits issued by the Business Accounting Deliberation Council of Japan on June 16, 1998. Following the standard, the amount of accrued severance indemnities for employees was provided based on the amount of projected benefit obligations minus pension plan assets at fair value at the end of the fiscal year. The directors and statutory auditors of the Company are covered by a retirement benefit plan under which the retiring directors and statutory auditors are entitled to receive lump-sum retirement benefits. The amount of such benefits is determined based on the Company’s internal rules. The accrued severance indemnities for the directors and statutory auditors represent the estimated amount to be paid if all directors and statutory auditors retired at the balance sheet dates. On June 15, 2001, the Japanese government issued a new law concerning the benefit plan. This law allows a company, at its own discretion, to apply for an exemption from the future benefit obligation of the substitutional portion of the employee pension fund to the government. Under the new law, a company may apply for the exemption from the future benefit on or after April 1, 2002 and the effective date of the return of the past benefit obligation and amount of pension assets to be returned to the government will be determined by the Minister of Health, Labour and Welfare by December 2003. In accordance with the new law, the Company obtained an approval for the exemption from the future benefit obligation on August 20, 2002 and will apply for the return of the past benefit obligation on or after the fiscal year beginning April 1, 2004. The effect of the return of the past benefit obligation will be to increase income before income taxes for the year ending March 31, 2004 by approximately ¥ 5,268 million ($ 43,761 thousand).

(12) Research and Development Expenses　　Research and development expenses are charged to income as incurred.

(13) Appropriation of Retained Earnings　　Under the Commercial Code and the Articles of Incorporation of the Company, proposals by the Board of Directors for the appropriation of retained earnings (principally the payment of annual cash dividends) should be approved by a shareholders’ meeting which must be held within three months after the end of each fiscal year. The appropriation of retained earnings reflected in the accompanying consolidated financial statements for each fiscal year represents the appropriations which were approved by the shareholders’ meeting and disposed of during that year but which related to the immediately preceding fiscal year. The payment of bonuses to directors and statutory auditors is made out of retained earnings instead of being charged to income for the year and constitutes a part of appropriations referred to above.

(14) Net Income and Dividend per Share　　Basic net income per share is based upon the weighted average number of shares of common stock outstanding during each year.Diluted net income per share is based upon the weighted average number of shares of common stock outstanding which includes the dilutive effect of treasury shares for the stock option plans during each year. Effective from the year ended March 31, 2003, the Company has adopted the Financial Accounting Standard on “Accounting for Earnings per Share”. Although the figures of “Amount per share” for the year ended March 31, 2003 were calculated in accordance with the new standard. The prior-year figures were calculated as before. The effect of this change is described in Note16. Cash dividends per share represent interim cash dividends paid and annual dividends declared as applicable to the respective years.

(15) Cash and Cash Equivalents　　Cash and cash equivalents are composed of cash on hands, bank deposits that are able to be withdrawn on demand and highly liquid time deposits with insignificant risk of changes in value which have maturities of three month or less when purchased.

25

The Company prepares its consolidated financial statements in Japanese yen. The U.S. dollar amounts included in the accompanying consolidated financial statements and notes thereto represent the arithmetical results of translating yen into dollars at the rate of ¥ 119.01 to U.S. $ 1, being the

effective rate of exchange at March 31, 2003. The inclusion of such dollar amounts is solely for the convenience of the reader and is not intended to imply that yen amounts have been or could be readily converted, realized or settled in dollars at the rate of ¥ 119.01 to U.S. $ 1 or at any other rate.

3. United States Dollar Amounts

　　Book value and market value information in respect of marketable “held-to-maturity debt securities” as of March 31, 2003 were as follows:

Millions of Yen Book value

perBalance sheet

Marketvalue Difference

Book value per

Balance sheet DifferenceMarketvalue

Thousands of U.S. Dollars

　Government bonds　Corporate bonds

　 Government bonds Corporate bonds

Total

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

5,71912,32518,044

8207,3248,144

26,188

5,74012,36618,106

8207,3158,135

26,241

214162

099

53

¥

¥

¥

¥

¥

¥

48,056103,562151,618

6,89561,54368,438

220,056

48,238103,903152,141

6,89261,46668,358

220,499

182341523

37780

443

$

$

$

$

$

$

2,030251

2,281

6362,917

3,545257

3,802

5634,365

1,5156

1,521

731,448

¥

¥

¥

¥

¥

¥( ) )

17,0572,110

19,167

5,34324,510

29,7902,159

31,949

4,72736,676

12,73349

12,782

61612,166

$

$

$

$

$

$

Securities whose book values on the accompanying consolidated Balance sheet exceed their acquisition costs

Debt securities whose market values exceed their book values on the accompanying consolidated Balance sheet

Debt securities whose market values do not exceed their book values on the accompanying consolidated Balance sheet

Equity securities Government and corporate bonds

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

　　Book values of the securities which are not marketable as of March 31, 2003 were mainly summarized as follows:

Other securities:　Equity securities

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Securities whose book values on the accompanying consolidated Balance sheet do not exceed their acquisition costs 　Equity securities　　　Total

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

925¥ 7,773$


Millions of Yen

Acquisition cost

Book value per

Balance sheet Difference Acquisition

cost

Book value per

Balance sheet Difference


　　Book value and acquisition cost information in respect of marketable “Other securities” as of March 31, 2003 were summarized as follows:

(

(((

)))

)))

(((

　　Short-term investments and investments in securities held by the Companies as of March 31, 2003 and 2002 were summarized as follows:

4. Short-term Investments and Investments in Securities

Short-term investments:　Government and corporate bonds

Investments in securities:　Equity securities　Government and corporate bonds　Other

. . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

9,9539,953

5,01716,243

25721,517

¥¥

¥

¥

10,56310,563

5,9019,549

—15,450

¥¥

¥

¥

83,62883,628

42,155136,484

2,158180,797

$$

$

$

2003 20032002


March 31,

Millions of Yen

March 31,

26

Securities whose book values on the accompanying consolidated Balance sheet exceed their acquisition costs

Government bonds Corporate bonds

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9,5476,132

15,679

9,6296,221

15,850

8289

171

¥

¥

¥

¥

¥

¥

Millions of Yen

Book value and market value information in respect of marketable “held-to-maturity debt securities” as of March 31, 2002 were as follows:

　Government bonds　Corporate bonds

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Millions of YenMaturities in Maturities in


3,5066,4479,953

¥

¥

3,54412,94916,493

¥

¥

29,45754,17183,628

$

$

29,775108,811138,586

$

$

2004 2005-2008 2004 2005-2008

Book value per Balance sheet

Market value Difference

Debt securities whose market values exceed their book values on the accompanying consolidated Balance sheet

Government bonds Corporate bonds Total

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .1,5152,6584,173

19,852

1,5152,6544,169

20,019

044

167

¥

¥

¥

¥

¥

¥

Debt securities whose market values do not exceed their book values on the accompanying consolidated Balance sheet

Equity securities Government and corporate bonds

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

2,194251

2,445

4,734260

4,994

2,5409

2,549

¥ ¥ ¥

Millions of Yen

Securities whose book values on the accompanying consolidated Balance sheet do not exceed their acquisition costs　Equity securities　　　Total

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,2493,694

9875,981

2622,287¥ ¥ ¥

Acquisition costBook value perBalance sheet Difference

　　The aggregate annual maturities of debt securities included in “Other securities” and “held-to-maturity debt securities” outstanding as of March 31, 2003 were as follows:

　　Book value and acquisition cost information in respect of marketable “Other securities” as of March 31, 2002 were summarized as follows:

)(

)))

(((

　　Book values of the securities which are not marketable as of March 31, 2002 were mainly summarized as follows:

Other securities: Equity securities

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 128¥

Millions of Yen

6,577¥ 90 64¥¥

Proceeds from sales Gain on sales Loss on sales

　　“Other securities” sold during the year ended March 31, 2002 were as follows:

Millions of Yen

Government bonds Corporate bonds

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Millions of Yen

Maturities in

6,7203,500

10,220

¥

¥

4,1004,9009,000

¥

¥

2003 2004-2007

　　The aggregate annual maturities of debt securities included in “Other securities” and “held-to-maturity debt securities”outstanding as of March 31, 2002 were as follows:

27

The Company enters into forward foreign exchange contracts on export transactions to hedge its exposure to fluctuations in foreign exchange rates. These hedging instruments are measured for effectiveness based on the

movement amounts of positions hedged during the hedging terms. The Company’s management believes that there is no credit risk since they are executed with creditworthy financial institutions.

6. Derivatives and Hedging Activities

(1) The Companies lease certain machinery and equipment and other assets. Total lease expenses under these leases were ¥ 46 million ($ 387 thousand) and ¥ 76 million for the years ended March 31, 2003 and 2002, respectively. Additional information such as the notional acquisition costs and

accumulated depreciation as of March 31, 2003 and 2002, requested by the Business Accounting Deliberation Council of Japan, to be disclosed as not included in the accompanying consolidated balance sheets was as follows:

7. Lease Commitments

Notional acquisition costs: Machinery and equipment Other

Less: accumulated depreciation

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . .

144 51

195 ( 144 )

51

¥

¥

1,208 435

1,643 ( 1,212 )

431

$

$

255 51

306 ( 215 )

91

¥

¥

2003 20032002


March 31,

Millions of Yen

March 31,

Forward foreign exchange contracts:Foreign currency sales (US$)

Contract amountsFair ValueUnrealized loss

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

9,450 9,408

42

¥

¥

79,405 79,052

353

$

$

— — —

¥

¥

2003 20032002


March 31,

Millions of Yen

March 31,

Finished goodsWork in processRaw materials and supplies

　　Inventories as of March 31, 2003 and 2002 consisted of the followings:

　　Forward foreign exchange contracts outstanding as of March 31, 2003 and 2002 were as follows:

5. Inventories

2003 20032002


March 31, March 31,

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

9,2054,8534,882

18,940

9,5954,7594,003

18,357

¥

¥

77,34740,78041,016

159,143

$

$

¥

¥

321951

¥

¥

267164431

$

$

593291

¥

¥

2003 20032002

The amount of notional acquisition costs and future lease payments under finance leases included the imputed interest expenses portion. Notional depreciation expenses for the years ended March 31, 2003 and 2002, which are not reflected in the accompanying consolidated statements of income, were ¥ 46 million ($ 387 thousand) and ¥ 76 million.

Notional acquisition costs means the costs which is characterized as the total lease payment, including interest due to the immateriality of the leased property. Notional depreciation expense is calculated by the straight-line method over the terms of the lease based on notional acquisition costs, assuming that there is no scrap value.

　　The aggregate future lease payments under finance leases as of March 31, 2003 and 2002 were as follows:

Due within one yearDue after one year

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .


March 31,

Millions of Yen

March 31,

28

(2) The aggregate future lease payments under ordinary operating leases as of March 31, 2003 and 2002 were as follows:

181533

¥

¥

154129283

$

$

263662

¥

¥

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

2003 20032002


March 31,

Due within one yearDue after one year

　　The following provided reconciliation of projected benefit obligations to net liabilities for employees’ retirement benefits recognized on the accompanying consolidated balance sheets as of March 31, 2003 and 2002:

8. Accrued Severance Indemnities

Millions of Yen

March 31,

Projected benefit obligations Fair value of plan assets Accrued severance indemnities for employees

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

2003 20032002


March 31,

( 26,066 ) 14,667

( 11,399 )

( 26,677 ) 13,592

( 13,085 )

( 219,031 ) 123,245

( 95,786 )

¥

¥

$

$

¥

¥

Millions of Yen

March 31,

　　The benefit obligations were determined using the discount rates of 2.1% for the years ended March 31, 2003 and 2002, and the expected rate of return on plan assets was 1.5% and 2.0% for the years ended March 31, 2003 and 2002, respectively. 　　The benefit obligations are attributed to periods based on years of service. Unrecognized past service cost and actuarial differences arising in the years are charged or credited to income for the years when they arise. Amortization of actuarial differences includes the losses of ¥ 2,690

million due to the changes of the discounts rates for the years ended March 2002. The projected benefit obligations of certain subsidiaries are calculated using simplified method, which is permitted to be applied by small size companies, in conformity with the accounting standard for retirement benefits. The Company obtained an approval for the exemption from the future benefit obligation on August 20, 2002 and will apply for the return of the past benefit obligation as of the effective date, which is described in Note 2. (11).

　　The accrued severance indemnities for the directors and statutory auditors amounting to ¥264 million ($2,210 thousand) and ¥245 million as of March 31,2003 and 2002 were excluded from the above schedule, respectively. Components of net periodic benefit cost for the years ended March 31, 2003 and 2002 were summarized as follows:

　　Service cost does not include employees’ contributions of contributory pension plan.

Service cost Interest cost Expected return on plan assets Amortization of actuarial differences Past service cost Net periodic benefit cost

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

2003 20032002


March 31,

953527189153891247

8,0164,4281,5891,2887,4892,078

¥

¥

$

$

¥

¥

Millions of Yen

March 31,

( ( (

)))

1,083644242

2,891583

3,793

(

(

)

)

( ( (

)))

As of March 31, 2003, there was no contingent liability.

9. Contingent Liabilities

29

　　Prior to October 1, 2001, the Commercial Code required at least 50 % of the issue price of new shares, with a minimum of the par value thereof, to be designated as stated capital. The portion which was to be designated as stated capital was determined by resolution of the board of directors. Proceeds in excess of the amounts designated as stated capital were credited to additional paid-in capital, which is a component of capital reserve. The Commercial Code was revised and went into effect in October 2001, and the provisions for par value stock were eliminated. Prior to October 1, 2001, the Commercial Code provided that an amount equal to at least 10 % of cash dividends and other appropriations of retained earnings paid out with respect to each financial period be appropriated as a earned reserve, which is included in retained earnings, until such reserve equals 25 % of stated capital. Effective from October 1, 2001, the revised Commercial Code requires such appropriations until the total amount of capital reserve and earned reserve (collectively, “legal reserves”) equals 25% of stated capital. Legal reserves may be transferred to stated capital by a resolution of the board of directors or used to reduce a deficit with the approval of a shareholders’ meeting as before the revision of the Commercial Code. In addition, under the revised Commercial Code, legal reserves may be available for dividends to the extent that legal reserves do not fall below 25% of stated capital, and the Company is allowed to repurchase its own shares to the extent that the aggregate cost of treasury shares does not exceed the maximum amount available for dividends. At the annual general meeting held in June 27, 2003, the shareholders of the Company approved the plan that the Company may repurchase up to

3,000 thousand shares of its common stock for the aggregate prices up to ¥ 4,500 million ($ 37,812 thousand) during the period from the date of this annual general meeting to the date of the next annual general meeting in accordance with the provisions of the revised Commercial Code. The shareholders of the Company approved stock option plans as the annual general meeting held in June 1999, 2000, 2001, 2002 and 2003. The plan approved in June 1999 allows eligible directors and employees of the Company to purchase up to 116 thousand shares and 204 thousand shares of the Company’s common stock in the aggregate respectively, and the stock options are exercisable from July 1, 2001 to June 30, 2004. The plan approved in June 2000 allows eligible employees of the Company to purchase up to 34 thousand shares of the Company’s common stock in the aggregate, and the options are exercisable from July 1, 2002 to June 30, 2005. The plan approved in June 2001 allows eligible directors and employees of the Company to purchase up to 52 thousand shares of the Company’s common stock in the aggregate, and the options are exercisable from July 1, 2003 to June 30, 2006. The plan approved in June 2002 allows eligible directors, statutory auditors and employees of the Company and eligible members of its major affiliates’ management to purchase up to 180 thousand shares of the Company’s common stock in the aggregate, and the options are exercisable from July 1, 2004 to June 30, 2007. The plan approved in June 2003 allows eligible directors, statutory auditors and employees of the Company and eligible members of its major affiliates’ management to purchase up to 280 thousand shares of the Company’s common stock in the aggregate, and the options are exercisable from July 1, 2005 to June 30, 2008.

10. Shareholders’ Equity

11. Unrealized Holding Gains on Securities　　Unrealized holding gains on securities, net of tax in shareholders’ equity as of March 31, 2003 and 2002 are analyzed as follows:

Market value in excess of costs Deferred tax liabilities Others Unrealized holding gains on securities, net of tax

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

2003 20032002


March 31,

1,521615

9897

2,5491,070

—1,479

12,7825,164

857,533

¥

¥

$

$

¥

¥

Millions of Yen

March 31,

((

))

( ) ( (

))

　　Selling, general and administrative expenses in the accompanying consolidated statements of income for the years ended March 31, 2003 and 2002 consisted of the following:

12. Selling, General and Administrative Expenses

13. Research and Development　　Research and development expenditures charged to income were ¥ 2,234 million ($ 18,771 thousand) and ¥ 2,385 million for the years ended March 31, 2003 and 2002, respectively.

Freight chargeAdvertisementsEmployees’ salary and bonusesResearch and development expensesOther

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

2,548205

3,506847

4,84711,953

1,939217

3,338813

6,05412,361

¥

¥

21,4081,726

29,4607,113

40,733100,440

$

$

¥

¥

2003 20032002

Thousands of U.S. DollarsFor the year ended March 31,

Millions of Yen For the years ended March 31,

　　The significant components of deferred tax assets and liabilities as of March 31, 2003 and 2002 were summarized as follows:

Deferred tax assets due to: Accrued severance indemnities Unrealized gain/loss on inventories Accrued enterprise taxes Operating loss carryforward for tax purpose Other

Deferred tax liabilities due to: Unrealized holding gains on “Other securities” Other

Net deferred tax assets

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

4,261350198587907

6,303

615348963

5,340

4,950453249661858

7,171

1,070402

1,4725,699

¥

¥

35,8042,9411,6674,9377,611

52,960

5,1642,9248,088

44,872

$

$

¥

¥

2003 20032002


March 31,

Millions of Yen

March 31,

30

(

(

)

)

(

(

)

)

　　Net deferred tax assets were included in the accompanying consolidated balance sheets as follows:

　　Significant differences between the normal cumulative statutory tax rate and effective tax rate in the consolidated statements of income for the year ended March 31, 2003 were as follows:

Current assets: Deferred tax assetsInvestments and other assets: Deferred tax assetsCurrent liabilities: Deferred tax liabilitiesLong-term liabilities: Deferred tax liabilities

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

2,646

2,707

7 6

5,340( )

2,512

3,237

—

505,699

¥

¥

22,235

22,748

58

5344,872

$

$

¥

¥

2003 20032002

　　The reconciliation of the differences between the statutory rate and the effective income tax rates as of March 31, 2002 was not disclosed because the differences between the statutory rate and the effective income tax rates were not material.

(

(

)

)

Normal cumulative statutory tax rate Non taxable dividends Per capital inhabitant tax Tax loss carry forwards of subsidiaries Foreign tax credit Future declining of the enterprise tax rate OtherEffective tax rate per consolidated statements of income

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

42.0%0.2 0.6

13.1 7.5 2.4 2.1

52.5%


March 31,

Millions of Yen

March 31,

14. Income Taxes　　The Company and its domestic consolidated subsidiaries are subject to a number of different taxes based on income, which in the aggregate indicate a normal effective statutory income tax rate of approximately 42% for the years ended March 31, 2003 and 2002. Foreign consolidated subsidiaries are subject to income taxes of the countries in which they operate. On March 31, 2003, law governing municipal tax has revised to impose enterprise taxes through ‘pro-forma standard taxation’ from April 1, 2004. Accoding to this tax reform acts, the tax rate of enterprise tax will decline

starting in the fiscal year beginning April 1, 2004. As a result of the declining of the enterprise tax rate, a normal effective tax rate will decline and the deferred tax assets, which will recover income taxes after the fiscal year beginning April 1, 2004, have been revalued based on this effective tax rate. The effect of this change is to decrease deferred tax assets by ¥ 107 million ($ 899 thousand) , and to increase tax expenses and unrealized holding gains on securities by ¥ 131 million ($ 1,100 thousand) and ¥ 24 million ($ 205 thousand), respectively.

31

　　Unallocated corporate assets which were included in “Elimination and corporate” were ¥ 34,282 million ($288,081 thousand) and ¥ 28,217 million as of March 31, 2003 and 2002, respectively.

(

)(

)

( ((

)))

Millions of Yen

Sales:　Outside customer　IntersegmentTotal sales Operating costs and expensesOperating income (loss)

Assets

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

66,96330,95297,91593,0364,879

115,076

14,30926

14,33514,868

533

11,933

19,4951,446

20,94120,762

179

12,352

¥

¥

¥

¥

¥

¥

¥

¥

¥

5,12511

5,1365,267

131

2,455

¥

¥

¥

— 32,43532,43533,121

686

15,730

¥

¥

¥

105,892—

105,892100,812

5,080

157,546

¥

¥

¥

Year ended March 31, 2002 Japan Asia Other Consolidated

Elimination and

corporateUnited statesof America

(

) (

) (

)

( (((

))))



Assets

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

512,778342,107854,885786,63868,247

921,094

113,628115

113,743114,220

477

83,835

247,11512,937

260,052260,522

470

131,548

$

$

$

$

$

$

$

$

$

51,371940

52,31154,1481,837

19,409

$

$

$

— 356,099356,099355,036

1,063

147,233

$

$

$

924,892—

924,892860,49264,400

1,303,119

$

$

$


Elimination and


(

) (

) (

)

( (((

))))

Segment information of the Company and its consolidated subsidiaries for the years ended March 31, 2003 and 2002 was presented below:

15. Segment Information

(1) Industry segment　　The Companies’ main operations are manufacturing and distributing capacitors and their related products. The Companies’ operations by business segment for the years March 31, 2003 and 2002 are not disclosed since the ratios of business other than main operations described above to

total in respect of sales, operating income and assets are not material, being less than 10% as stipulated in the Japanese Disclosure Rule of Consolidated Financial Statements.

(2) Geographic segment The foreign operations of the Companies for the years ended March 31, 2003 and 2002 were summarized as follows:

Millions of Yen


Assets

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

61,02640,714

101,74093,6188,122

109,619

13,52314

13,53713,593

56

9,977

29,4091,540

30,94931,005

56

15,655

¥

¥

¥

¥

¥

¥

¥

¥

¥

6,113112

6,2256,444

219

2,310

¥

¥

¥

— 42,38042,38042,253

127

17,523

¥

¥

¥

110,071—

110,071102,407

7,664

155,084

¥

¥

¥


Elimination and


17. Subsequent Event At the general shareholders’ meeting of the Company held on June 27, 2003, the payments of cash dividends (¥ 6.5 or $0.05 per share) and

directors’ bonuses were approved, which amounted to ¥ 519 million ($ 4,361 thousand) and ¥ 28 million ($ 235 thousand), respectively.

32

16. Amount Per Share The amounts of net income per share for the year ended March 31, 2003 and 2002 were as follows:

The figure of diluted net income per share is not disclosed since there was no potential share of common stock that had dilutive effect as of March 31, 2003.

The amounts of net income per share which were calculated in accordance with the new standard for the year ended March 31, 2002 were as follows:

The figure of diluted net income per share is not disclosed since there was no potential share of common stock that had dilutive effect.

The following figures are potential shares of common stock that were excluded from the net income per share computation because they had no dilutive effect.

The amounts and numbers used for the basic net income per share computation for the year ended March 31, 2003 were as follows:

Net income per share-Basic -Diluted

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

40.57—

36.8836.72

¥ 0.34—

$¥

2003 20032002

Net income per share-Basic -Diluted

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

36.52—

¥

Yen

Net income applicable to shareholders of common stock

. . . .


Yen U.S. Dollars

3,274¥ 27,507$

Weighted average number of shares of common stock

. . . . . . . .

Thousands of shares

80,687

Warrant for stock option

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Thousands of shares

180

(3) Sales to foreign customers　　Sales to foreign customers for the years ended March 31, 2003 and 2002 consisted of the followings:

Millions of Yen

United statesof America Asia Other Total

Sales to foreign customers Consolidated sales Ratio of sales to foreign customers　to consolidated sales

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Year ended March 31, 2003

13,537—

12.3%

¥ 36,231—

32.9%

¥ 6,625—

6.0%

¥ 56,393110,071

51.2%

¥

Millions of Yen



. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .


14,334—

13.5%

¥ 24,670—

23.3%

¥ 5,880—

5.6%

¥ 44,884105,892

42.4%

¥




. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .


113,750—

12.3%

$ 304,435—

32.9%

$ 55,668—

6.0%

$ 473,853924,892

51.2%

$

33

We have audited the accompanying consolidated balance sheets of NICHICON CORPORATION and its consolidated subsidiaries as of March 31, 2003 and 2002, and the related consolidated statements of income, shareholders’ equity and cash flows for the years then ended, all expressed in Japanese Yen. These consolidated financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on these consolidated financial statements based on our audits.

We conducted our audits in accordance with auditing standards, procedures and practices generally accepted and applied in Japan. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the consolidated financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall consolidated financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the consolidated financial position of NICHICON CORPORATION and its consolidated subsidiaries as of March 31, 2003 and 2002, and the consolidated results of their operations and their cash flows for the years then ended in conformity with accounting principles and practices generally accepted in Japan (see Note 1) .

The amounts expressed in U.S. dollars, which are provided solely for the convenience of the reader, have been translated on the basis set forth in Note 3 to the accompanying consolidated financial statements.

To the Board of Directors and Shareholders of NICHICON CORPORATION

ChuoAoyama Audit Corporation

Osaka, JapanJune 27, 2003

Report of Independent Accountants

34

Consolidated Subsidiaries

NICHICON TANTALUM CORPORATION 690-2, Miosato, Adogawa-cho, Takashima-gun, Shiga Pref., 520-1215, Japan.TEL.81-740-32-1250 FAX.81-740-32-1504Capital Stock : 316 million yenProduct line : Tantalum electrolytic capacitors ISO 9001, QS-9000 & ISO14001 certified

NICHICON (KAMEOKA) CORPORATION 15-1, 2-chome, Kitakose-cho, Kameoka-shi, Kyoto Pref., 621-0811, Japan.TEL.81-771-22-5541 FAX.81-771-29-2010Capital Stock : 80 million yenProduct line : Hybrid ICs, Circuit modules, Positive thermistors “Posi-R”ISO 9001 & ISO14001 certified

NICHICON (ASAHI) CORPORATION120 Hirasawa, Matoba, Shiwa-cho, Shiwa-gun, Iwate Pref., 028-3308, Japan.TEL.81-19-676-4511 FAX.81-19-676-6710Capital Stock : 100 million yenProduct line : Aluminum electrolytic capacitors (Miniature-sized type) ISO 9001, QS-9000 & ISO14001 certified

NICHICON (IWATE) CORPORATION8-17-1, Kubo, Iwate-cho Iwate-gun, Iwate Pref., 028-4305, Japan.TEL.81-195-62-5311 FAX.81-195-62-3400Capital Stock : 100 million yenProduct line : Aluminum electrolytic capacitors (Chip type)ISO 9001, QS-9000 & ISO14001 certified

NICHICON (WAKASA) CORPORATION35-1-1 Tada, Obama-shi, Fukui Pref., 917-0026, Japan.TEL.81-770-56-2111 FAX.81-770-56-2116Capital Stock : 84 million yenProduct line : Tantalum electrolytic capacitors, Switching power suppliesISO 9001& ISO 14001 certified

NICHICON (DENDO) CORPORATION2-27, Dendo, Nishine-cho Iwate-gun, Iwate Pref., 028-7112, Japan.TEL.81-195-76-2424 FAX.81-195-76-5252Capital Stock : 50 million yenProduct line : Switching power supplies ISO 9001& ISO14001 certified

Domestic : NICHICON (AMERICA) CORP.927 East State Parkway, Schaumburg, Illinois 60173, U.S.A.TEL.1-847-843-7500 FAX.1-847-843-2798Capital Stock : 3 million US$Business line : Sales of various kinds of capacitors

NICHICON (HONGKONG) LTD.Unit 308, Harbour Centre Tower 1, 1 Hok Cheung Street, Hunghom, Kowloon, Hong Kong.TEL.852-2363 4331 FAX.852-2764 1867Capital Stock : 5 million HK$Business line : Sales of various kinds of capacitors

NICHICON (EUROPE) LTD.Coliseum Business Centre, Riverside Way, Camberley, Surrey GU15 3YL, United Kingdom,TEL.44-1276-685393 FAX.44-1276-686531Capital Stock : 1 million STG£Business line : Sales of various kinds of capacitors

NICHICON (SINGAPORE) PTE. LTD.238A Thomson Road #12-01/02 Novena Square, Singapore 307684TEL.65-64815641 FAX.65-64816485Capital Stock : 8 million SP$Business line : Sales of various kinds of capacitors

NICHICON (MALAYSIA) SDN. BHD.No.4 Jalan P/10, Kawasan Perusahaan Bangi, 43650 Bandar Baru Bangi, Selangor Darul Ehsan, MalaysiaTEL.60-3-89250678 FAX.60-3-89250858Capital Stock : 63 million M$Business line : Production & sales of aluminium electrolytic capacitors　　　　　　(Miniature-sized and large can type)ISO9002, QS-9000 & ISO14001 certified

NICHICON (TAIWAN) CO., LTD.16F-12, No.6, Sec.4, Hsin-Yi Rd., Taipei, Taiwan TEL.886-2-2708-0200 FAX.886-2-2708-0959Capital Stock : 30 million NT$Business line : Sales of various kinds of capacitors

Overseas :

NICHICON (FUKUI) CORPORATIONNichicon Technology Center, 4 Tsuchifugo, Ohno-shi, Fukui Pref., 912-0805, Japan.TEL.81-779-65-8800 FAX.81-779-65-8801Capital Stock : 100 million yenProduct line : Aluminum electrolytic capacitors, Tantalum electrolytic capacitorsISO 9001& ISO14001 certified

NICHICON (SHIGA) CORPORATION3-1, Yagura 2-chome, Kusatsu-shi, Shiga Pref., 525-0053, Japan. TEL.81-77-563-1181 FAX.81-77-563-1208Capital Stock : 50 million yenProduct line : Tantalum electrolytic capacitors

NICHICON (THAILAND) CO., LTD.Empire Tower 15th Floor, Unit 1506, Tower 3, 195 South Sathorn Road,Yannawa, Bangkok 10120 ThailandTEL.66-2-670-0150 FAX.66-2-670-0153Capital Stock : 20 million BAHTBusiness line : Sales of various kinds of capacitors

NICHICON (AUSTRIA) GmbHAm Concorde Business Park C4 Top. Nr20 2320 Schwechat, AustriaTEL.43-1-706-7932 FAX.43-1-706-7933Capital Stock : 1 million EURBusiness line : Sales of various kinds of capacitors

NICHICON ELECTRONICS (WUXI) CO., LTD.Block 51-B, Wuxi National High & New Technology Industrial Development Zone, Wuxi, Jiangsu, 214028 ChinaTEL.86-510-5218222 FAX.86-510-5221170 Capital Stock : 20 million US$Business line : Production and sales of various kinds of capacitors and circuit productsISO9001 certified

NICHICON ELECTRONICS TRADING (SHANGHAI) CO., LTD.Room 1406-1407, Orient International Plaza (Part C) 85 Lou Shan Guan Road,Shanghai, 200336 ChinaTEL.86-21-6278-7658 FAX.86-21-6278-7657Capital Stock : 0.5 million US$Business line : Sales of various kinds of capacitors

ASAHI ELECTRIC INDUSTRIES CO., LTD., WAKASA ELECTRIC CORPORATION and DENDO CORPORATION changed their trade names respectively to NICHICON (ASAHI) CORPORATION, NICHICON (WAKASA) CORPORATION and NICHICON (DENDO) CORPORATION as of April 1st, 2003.

KAMEOKA FACTORY was spun off as of April 1st, 2003 and started as a NICHICON (KAMEOKA) CORPORATION.

Ippei Takeda

Hidetaka KurumizawaKoichi MitsuiSachihiko Araki

Shinzo Matsui

Takashi Hosomi

August 1, 1950

14,286 million yen (As of March 31, 2003)

4,642(Consolidated) 1,671(Non-consolidated) (As of March 31, 2003)

Tatou IwasaTadayoshi NishizawaSachito Umemura

Keiji Nishihata

Kozo Yamazaki

President & C.E.O.

Managing Director

Standing Auditor

Auditor

Date of Establishment

Capital Stock

Number of Employees

Board of Directors Factories

35

Corporate Data

Investor Information

Uehara Bldg., Oikedori, Karasumahigashi-iru, Nakagyo-ku, Kyoto, 604-0844, Japan.TEL.81-75-231-8461 FAX.81-75-256-4158

Head Office

As of 27 June, 2003

5-5, 2-Chome, Hamamatsu-cho, Minato-ku, Tokyo, 105-0013, Japan.TEL.81-3-5473-5611 FAX.81-3-5473-5651

18/F, Nishiki Park Bldg., 4-3, Nishiki 2-chome, Naka-ku, Nagoya, 460-0003, Japan.TEL.81-52-223-5581 FAX.81-52-220-1839

3-2, Sugahara-cho, Kita-ku, Osaka, 530-0046, Japan.TEL.81-6-6362-6421 FAX.81-6-6365-7033

Sapporo, Nagano, Shizuoka, Okayama, Fukuoka

EAST JAPAN SALES OFFICETOKYO BRANCH

EAST JAPAN SALES OFFICE, NAGOYA BRANCH

WEST JAPAN SALES OFFICE

Sales Branches

Offices

3-1, Yagura 2-chome, Kusatsu-shi, Shiga Pref., 525-0053, Japan.TEL.81-77-563-1181 FAX.81-77-563-1208Product line : Capacitors for electric apparatus and power utilities,

Capacitor-applied system and equipment ISO 9001 & ISO14001 certified

4085 Toyoshina, Toyoshina-cho, Minamiazumi-gun, Nagano Pref., 399-8205, Japan.TEL.81-263-72-2830 FAX.81-263-72-7140Product line : Aluminum electrolytic capacitors (Large can type) ISO 9001, QS-9000 & ISO14001 certified

1284-2, Kitahodaka Hotaka-cho, Minamiazumi-gun, Nagano Pref., 399-8302, Japan.TEL.81-263-82-2510 FAX.81-263-82-7536Product line : Electrode foil for aluminum electrolytic capacitorsISO9001 & ISO14001 certified

Yashiro, Ohmachi, Nagano Pref., 398-0003, Japan.TEL.81-261-21-3200 FAX.81-261-21-3206Product line : Electrode foils for aluminum electrolytic capacitorsISO 9001 & ISO14001certified

1-11-2 Shimoyoro, Ono-shi, Fukui Pref., 912-0095, Japan.TEL.81-779-66-0333 FAX.81-779-66-0312Product line : Aluminum electrolytic capacitors (Miniature-sized type) ISO 9001, QS-9000 & ISO14001 certified

Nichicon Technology Center, 4 Tsuchifugo, Ohno-shi, Fukui Pref., 912-0805, Japan.TEL.81-779-65-8000 FAX.81-779-65-8911Product line : Electrode foils for aluminum electrolytic capacitors ISO 9001 & ISO14001certified

1372 Konan, Suwa-shi, Nagano Pref., 392-0131, Japan.TEL.81-266-52-1816 FAX.81-266-52-3369Product line : Plastic film capacitors ISO 9001 & ISO14001certified

5-5, 2-Chome, Hamamatsu-cho, Minato-ku,Tokyo, 105-0013, Japan.TEL.81-3-3432-6561 FAX.81-3-3437-5769Product line : Development & design for switching power suppliesISO 9001 certified

KUSATSU FACTORY

NAGANOFACTORY

HOTAKAFACTORY

OHMACHI FACTORY

OHNOFACTORY

TOMITAFACTORY

SUWAFACTORY

POWERSUPPLYDIVISION

Authorized number of sharesIssued number of sharesNumber of shareholdersListings

137,000,000 shares 81,144,372 shares8,388First section, Tokyo Stock ExchangeFirst section, Osaka Securities ExchangeFirst section, Nagoya Stock Exchange

(Yen)

Japan Trustee Services Bank, Ltd. (trust account) The Master Trust Bank of Japan, Ltd. (investment trust account)Nippon Life Insurance CompanyBank of Kyoto, Ltd.Mizuho Corporate Bank, Ltd.The Chase Manhattan Bank N. A. LondonUFJ Bank, LimitedSumitomo Mitsui Banking CorporationNobuko HiraiState Street Bank and Trust Company

Major shareholdersNumber of shares held

Percentage of shares held

6,807,1005,555,4004,144,6123,370,0003,090,0002,670,1002,448,9892,200,0211,915,0001,509,900

8.39%6.84%5.11%4.15%3.81%3.29%3.02%2.71%2.36%1.86%

Common stock price range

As of 31 March, 2003

3,500

3,000

2,500

2,000

1,500

1,000

1998 1999 2000 2001 2002 2003

Printed on 100% recycled paper.This calalog is printed withenvironmentally friendly soy ink.

NICHICON CORPORATIONUehara Bldg., Oikedori, Karasumahigashi-iru, Nakagyo-ku, Kyoto, 604-0844, Japan.TEL.81-75-231-8461　FAX.81-75-256-4158

URL: http://www.nichicon.co.jp/ http://www.nichicon-us.com/

circuit products, capacitors for electric apparatuses and … · · 2015-04-0176.1% 2.5 ¥...

Documents