Brief Summary of the Interim Consolidated Statement

Transcription

1 Brief Summary of the Interim Consolidated Statement August 29, 2001 Name of listed company: Okabe Co., Ltd. Address of head office: Tokyo Code number: 5959 Stock exchange: (listed in) Tokyo Stock Exchange (first section) Information Name of title of responsible person Name: Director, Accounting & Financial Group Hiroshi Kanou Tel: (03) Date of board meeting for statement: August 29, 2001 Name of parent company (code No. : ) Parent company's holding ratio of the Company's stocks : % 1. Consolidated business results for period of June, (January 1, 2001 to June 30, 2001) (1) Consolidated Business Results (Note) under one million yen discarded Sales amount Operating profit Ordinary profit Million Yen % Million Yen % Million Yen % Interim fiscal term ended June , Interim fiscal term ended June 2000 Fiscal term ended December ,572 2,457 2,617 Interim profit (this time) Interim profit (current term) per stock) Interim (this term) net profit per stock after adjustment of latent stocks Million Yen % Yen Sen Yen Sen Interim fiscal term ended June , Interim fiscal term ended June 2000 Fiscal term ended December , (Notes). Investment profit or loss for equity method Period of June, 2001: one million yen Period of June, 2000: one million yen Period of Dec., 2000: 73 million yen. Appraisal profit or loss of derivative transactions at interim term-end: one million yen. Change of accounting method : changed. Percentages of sales, operating income, recurring profit and interim (this term) net profit show increase/decrease ratio as compared with the previous term.. As the interim consolidation is applied from the interim term of June, 2001, each column of the interim term of June, 2000 is blank. (2) Consolidated Financial Status Total assets Stockholder's equity Ratio of stockholder's equity Stockholder's equity per stock Million Yen Million Yen % Yen Sen Interim fiscal term ended June ,766 20, Interim fiscal term ended June 2000 Fiscal term ended December ,869 23, ,

2 (3) Consolidated cash flow status Cash flow by sales activities Cash flow by investment activities Cash flow by financial activities Cash and the equivalent Term-end balance Million Yen Million Yen Million Yen Million Yen Interim fiscal term ended June ,802 3, ,187 Interim fiscal term ended June 2000 Fiscal term ended December , ,448 (4) Applicable scope of consolidated subsidiaries and equity method Number of consolidated subsidiaries: 19 Number of non-consolidated subsidiaries with equity method applied: none Number of affiliated companies with equity method applied: 3 (5) Change of consolidation range and of application of equity method Consolidated (newly): Excluded from consolidation: Equity method applied (newly): Excluded from application of equity method: none 17 companies one company none 2. Prospects for consolidated results for the period of December, 2001 (January 1, 2001 to December 31, 2001) Sales amount Ordinary profit Profit of current term Million Yen Million Yen Million Yen Through period 59,000 1, (Reference) Forecast of profit of current term per share ( Through period ) (Yen. Sen) -2-

3 1. State of Cooperate Group and Management Policy etc. Okabe Co, Ltd. (1) Consolidated Group and Outline of Business The Company's group is composed of the Company, 27 subsidiaries (19 consolidated) and 12 affiliated companies (three companies with equity method applied). The main handling line includes manufacture and sale of building materials such as temporary setting form products, civil engineering products and construction equipment/materials /materials products. The group expands the business intended for general consumers as main customers. Positions of the Company and the main affiliated companies in the group, and the relation with segments by kinds of business are as follows. Business A <Production> Okabe Kiko Co., Ltd. manufactures temporary setting form products, civil engineering products, construction equipment/materials products and industrial fasteners, and purchases particular related articles. Okabe Techno- System Co., Ltd. designs and manufactures large type system setting form (wall former) for civil engineering of civil engineering products. Hirooka Seisakujyo Co., Ltd, and other three companies manufacture temporary setting form products. <Sale> Products/articles manufactured/purchased by Okabe Kiko Co., Ltd. are all sold to Okabe Building Materials Co., Ltd. through the Company (the main item is temporary setting form products). Similarly, products mainly including civil engineering products are sold to Okabe Civil Engineering Co., Ltd., and products mainly including construction equipment/materials products are sold to Okabe Struct Co., Ltd. Of such products, temporary setting form products of relatively higher durability are sold to Okabe Lease Co., Ltd. which is a rental company, and accessory products of large type system setting form products for civil engineering are done to Okabe Techno-System Co., Ltd. And part of industrial fasteners is exported to Okabe Co., Inc., an overseas affiliated firm in US. The Company became a holding company from July 1, 2001 and does not participate in commercial activities. In addition, on the same date Okabe Kiko Co., Ltd. was merged into Okabe Building Materials Co., Ltd. Business B <Hotel business> Okabe North America, Inc., an overseas affiliated firm in Canada, leases the real estate of the hotel facilities to its subsidiary company, Coast Hotel Ltd., and the Coast Hotel Ltd. engages in hotel business. Business C <Services> Okabe Color Co., Ltd. is developing the mini-laboratory shops as chain stores and engages in DPE (development, printing and enlarging) of photos and sale of materials for photos. <Real estate business, damage insurance agency and selling of OA equipment> Okabe Development Co., Ltd. engages in sale/purchase, mediation, and management of real estate, damage insurance agency and sale of OA equipment. <Development of real estate and management of Golf links> Hong Kong Okabe Co., Ltd, an overseas affiliated firm in China (Hong Kong), is a regional holding company in the locale, and the subsidiary companies, Meikou Investment Co., Ltd., Aiun Co., Ltd. and Keishuu Golf Links Co., Ltd., manage golf links in China. Excelink Investment Ltd. conducts the business of real estate development in China. (2) Basic Management Policy A basic concept of the Company's group is to contribute not only to the construction industry, direct users, but also to the society in wide range. In the construction area, this will be achieved through development of new construction methods and provision of high quality products making a contribution to safety, labor-saving and environmental preservation to respond to higher construction technologies. Moreover, also in the business for general consumers, the group tackles such operations as expected by customers, shareholders and local communities and as reliable for them, with business potentiality and investment efficiency taken into account. -3-

4 2. Business Results (In the following explanations, values of the previous interim consolidation which compare with those of this interim term are based on the in-house data prepared according to the consolidation. And in preparing the data, the procedures for eliminating unrealized income profit of the companies with equity method applied are partly simplified, and the tax effect accounting is not applied.) (1) Business results of this interim term With regard to the Japanese economy for the current interim period, the sluggishness of business activity has been deepening suddenly accompanied with a deadlock of policies, under the following situation. (1) IT (information technology)-related area which has been relatively stable became more stagnant due to a rapid change of the US economy, (2) personal consumption was not recovered because of worsened long-term employment environment and fall in the stock market and (3) deflation trend became more apparent. In the building and construction industries that are major customers of the Company, volumes of construction works were active in some parts such as metropolitan area, but private sector's investment in plant and equipment mainly in local area was sluggish, and public works were obliged to be further restrained due to such as the financial situation. In addition, there was a concern about impact of so-called bad loans upon general contractors, thus feelings of slowdown spread all over the industries. Under such circumstances, the Company changed significantly the "Management by Divided Organizations" which has been a concept in management, and clarified major three fields to be tackled, namely building materials, structure and civil engineering. Concretely, the company aimed at a system by which prompt and right supply of products is efficiently carried out. This was realized by narrowing 20 "divided organizations" throughout Japan down to Okabe Building Materials Co., Ltd., Okabe Struct Co., Ltd. and Okabe Civil Engineering Co., Ltd. and by integrating development function to this. In addition, production of some products in overseas market started mainly in the area of building materials, and in structure field the Company made efforts to make products line complete and the market share higher in cooperation with other companies. Moreover, all the companies took measures to strengthen and foster the brand power. The consolidated sales including the Company and the group companies amounted to 27,756 million yen, a 7.5% decrease over the year-ago level. When this is analyzed in terms of each product and each business, the sales of temporary setting form products recorded a 12.1% drop as compared with the preceding interim term due to price competition and decreased volume of construction works. The sales of civil engineering products and construction equipment/materials products supported by development of construction methods registered a 5.7% and 5.8% respectively from the same period last year, but the percentage was rather lower in decline as compared with such sluggish demand. The sales of merchandise for building materials purchased from other companies recorded a 4,3% decrease from the preceding interim term. In spite of lower rate of yen exchange, the sales of industrial fasteners mainly for the automobile industry in US dropped by 15.4% over the corresponding preceding term, because the sales could not overcome the local slowdown. On the other hand, in the hotel business of which customers are general consumers, the hotel chain in Canada indicated only a slight decrease of 4.3% over the year-ago level with impact of stagnation in US absorbed to some extent, due to sales efforts of advertisement in cooperation with airline companies. Other sectors including golf links in China, mini-laboratory chain in the domestic market and business related to real estate dipped 23.2% from the preceding year, and business was slowing down as a whole. In terms of profit or loss in consolidation, the ratio of gross income on sales was improved by 0.9 point over the year-ago level due to higher component ratio of relatively high profitable products. But this was not enough to cover decrease in entire sales and the recurring profit amounted to 329 million yen, a 58.9% drop from the same period last year. And, the extraordinary loss totaling 3,336 million yen was recorded due to lump sum amortization of retirement benefit liabilities and appraisal loss of investment securities carried out to meet the market-value accounting in future. As a result, net loss for this interim period totaled 1,619 million yen partly influence by the tax effect accounting. The interim dividend was fixed to be 5.00 yen per stock, the same as the preceding interim term, with special situation for this interim term considered. (2) Prospects for the entire fiscal period In the construction industry which is a major business of the Company's group, the situation can not be optimistic. This is because curbed private sector's investment in plant and equipment caused by business stagnation, a tendency toward decrease in public investment arisen from financial restrictions and so-called bad loan problems. Under such circumstances, the Company predicts the consolidated business results for the entire accounting period closed in December, 2001, as follows. Consolidated sales : 59,000 million yen Consolidated ordinary profit : 1,800 million yen Consolidated net profit of this term: 850 million yen -4-

5 3. Interim Consolidated Financial Statements. (1) Interim Consolidated Balance Sheet (Unit: thousand yen) Term Current interim consolidation fiscal period (as of June 30, 2001) Preceding consolidation fiscal period (as of Dec. 31, 2000) Increase/decreas e by comparison Distribut ion ratio Distribut ion ratio Assets % % Current assets 1. Cash and deposits 2. Acceptance receivables and account sales 3. Securities 4. Inventory 5. Deferred tax assets 6. Others 7. Reserve for dead loans 11,268,997 16,232,957 5,069, , ,097 92,903 11,639,333 20,037, ,936 4,830, , , , ,335 3,804, , , , ,797 14,394 Total current assets 33,425, ,818, ,392,994 Fixed assets (1) Tangible fixed assets 1. Buildings and constructions 2. Minority shareholders interest 3. Land 4. Temporary account for construction 5. Others 8,498,529 1,773,958 5,751, ,789 1,675,258 6,636,872 1,852,860 4,312, ,229 1,517,832 1,861,657 78,902 1,438, , ,426 Total tangible fixed assets 18,364, ,789, ,575,556 (2) Intangible fixed assets 1. Others 827, ,357 93,847 Total intangible fixed assets 827, , ,847 (3) Investment and other assets 1. Investment securities 2. Deferred tax assets 3. Others 4. Reserve for dead loans 3,601,377 1,198,396 3,171, ,747 3,058, ,940 2,839, , ,338 1,063, , ,051 Total investment and other assets 7,132, ,331, ,800,392 Total fixed assets 26,324, ,854, ,469,796 Deferred assets 1. Initial cost of business 16,752 25,966 9,214 Total deferred assets 16, , ,214 Foreign exchange adjustment account 2,170, ,170,655 Grand total of assets 59,766, ,869, ,103,068-5-

6 Term Current interim consolidation fiscal period (as of June 30, 2001) Preceding consolidation fiscal period (as of Dec. 31, 2000) (Unit: thousand yen ) Increase/decreas e by comparison Distribut ion ratio Distribut ion ratio Liabilities % % Circulating liabilities 1. Payment bills and trade accounts payable 2. Short-term borrowings 3. Corporate tax payable 4. Deferred tax liabilities 5. Reserve fund for bonus 6. Others 15,548,013 9,133, ,095 47, ,297 2,017,144 17,747,421 7,043, , ,228 86,997 1,767,841 2,199,408 2,090, ,241 93,634 16, ,303 Total current liabilities 27,146, ,721, ,182 Fixed liabilities 1. Long-run borrowing 2. Deferred tax liabilities 3. Reserve fund for retirement lump sum grant 4. Allowance of severance benefit 5. Reserve for Directors' retirement allowance 6. Consolidated adjustment account 7. Others 5,754, ,700 3,542,679 34, ,221 1,116,583 6,402, , , , ,661 1,049, , , ,236 3,542,679 79,027 25,439 67,486 Total fixed liabilities 11,395, ,879, ,516,623 Grand total of liabilities 38,542, ,600, ,942,441 Minority shareholders interest 306, , ,386 Stockholders' equity Paid in capital 5,329, ,329, Capital appropriation 4,467, ,467, Consolidated surplus 12,487, ,409, ,922,057 Difference from appreciation of securities, etc 62, ,113 Exchange conversion adjustment account 1,155, ,155,343 Other surplus 24, , Parent company's stocks 249, , Grand total of stockholder's equity 20,917, ,932, ,015,123 Grand total of liabilities minority shareholders interest and stockholder's equity 59,766, ,869, ,103,068-6-

7 (2) Interim Consolidated Income Statement Term Current consolidation accounting period (From Jan 1, 2001 to June 30, 2001 ) (Unit: thousand yen ) Previous consolidation accounting period (From Jan 1, 2000 to Dec. 31, 2000 ) Distribution ratio Distribution ratio % % Sales amount 27,756, ,572, Cost of sales 20,990, ,093, Gross profits on sales 6,766, ,478, Sales cost and general administrative cost 6,449, ,021, Operating profit 316, ,457, Non-Operating revenue 1. Received interest 51,847 53, Dividend receivable 45,704 17, Profits on securities sold 45, Exchange gains 12,161 74, Rent income 52, , Return on invested capital by equity method 73, Others 74, , , , Non-operating expenses 1. Interest paid 188, , Loss on sale of bills 39, Amortization of discount on bonds 60, Loss on investment based on equity method 1, Others 39, , , , Ordinary profit 329, ,617, Extraordinary profit 1. Fixed assets disposition revenue 3,707 1,445, Dividends from liquidation of subsidiaries 115, Return profit of pre-emptive right 482, Others 6, , ,597 1,961, Extraordinary loss 1. Loss by fixed assets sales 112, , Loss from appreciation of investment securities 349,037 33, Amortization of difference when retirement benefit is applied 2,791, Special retirement pay 459, Provision for bad debts 554, Bad debts loss 611, Others 83,262 3,336, ,221 2,207, Interim net loss ( ) before adjustment of tax or current term net profit before adjustment of tax 2,881, ,371, Corporate, residential and business taxes 356,892 1,479,507 Corporate and other tax adjustment 882,572 1,239, ,008 1,051, Loss of minority shareholders 22, , Interim net loss ( ) or current term net profit 1,619, ,326,

8 (3) Consolidated Statement of Earned Surplus Beginning balance of consolidated surplus Term 1. Prior period tax effect adjustment Current consolidation accounting period (From Jan 1, 2001 to June 30, 2001 ) 14,409,862 14,409,862 (Unit: thousand yen ) Previous consolidation accounting period (From Jan 1, 2000 to Dec. 31, 2000 ) 13,934, ,463 13,679,917 Increased consolidated surplus 1. Rising of surplus by increased 316,448 Increased amount of consolidated earned surplus reserve 1. Dividend 2. Director's bonus (for auditors of said amount) 3. Decreased surplus by increased number of consolidated subsidiaries 4. Dipped surplus by decreased number of consolidated subsidiaries 5. Decreased surplus by increased number of companies to which equity method is applied 6. Dipped surplus by decreased number of companies to which equity method is applied 7. Reduced amount by cancelled stocks of the Company 115,772 30,713 (2,100) 156, , ,948 30,479 (1,020) 90,658 90, , , ,047 Interim net loss( ) or current term net profit 1,619,400 1,326,543 Interim term-end balance of consolidated surplus 12,487,805 14,409,862-8-

9 (4) Interim Consolidated Cash flow Statement Term Current consolidation accounting period (from January 1, 2001 to June 30, 2001) (Unit: thousand yen ) Previous consolidation accounting period (from January 1, 2000 to December 31, 2000) s Cash flow by operating activities 1. Interim net loss () before adjustment of tax or current term net profit 2. Depreciation expenses 3. Increase in reserve for bad debts 4. Increases/decrease ( ) in reserve for retirement benefit (salary) 5. Interest expense 6. Exchange gains 7. Loss on retirement of tangible fixed assets 8. Appraisal loss of investment securities 9. Gain from sale of tangible fixed assets 10. Return profit of pre-emptive right 11. Decrease of trade receivable 12. Increase/decrease ( ) in trade payable 13. Increase/decrease ( ) in inventories 14. Others Sub-total 15. Corporate tax paid Cash flow by operating activities 2,881, , ,656 2,674, , , , ,037 3,707 3,865,746 2,284, , ,198, ,498 1,802,798 2,371,563 1,154, , , , ,719 98,937 51,780 1,445, , , , , ,013 3,616,737 1,161,919 2,454,818 Cash flow by investment activities 1. Expenditure by depositing of time deposits 2. Income by repayment of time deposits 3. Expenditure by acquisition of tangible fixed assets 4. Income by sale of tangible fixed assets 5. Expenditure by acquisition of investment securities 6. Income by sale of investment securities 7. Expenditure by acquisition of subsidiaries' stocks involved in change of consolidation range 8. Increase by added consolidated subsidiaries 9. Decrease by excluded consolidated subs idiaries 10 Expenditure by loan 11. Income by collection of loan 12. of interest/dividends received 13. Others Cash flow by investment activities 81, ,672 3,631,106 59, ,467 90, , , , ,594 3,287, , , ,412 1,447, , , ,989 86,895 92, , ,889 95, , ,151 Cash flow by financial activities 1. Income by short-term loan 2. Expenditure by repayment of loan 3. Income by long-term loan 4. Expenditure by repayment of long-term loan 5. Expenditure by redemption of bonds 6. Expenditure by acquisition of treasury stocks 7. Dividends paid 8. Interest paid 9. Others 3,963,374 3,448,818 1,434, , , , ,549 45,419 5,069,389 4,810,700 4,100,000 1,107,639 3,330, , ,958 24,347 Cash flow by financial activities 977, ,073 Conversion difference of cash and cash equivalent Increase/decrease () of cash and cash equivalent Beginning balance of cash and cash equivalent 246, ,943 11,448,660 50,448 2,026,344 9,422,316 Interim term-end balance of cash and cash equivalent 11,187,717 11,448,660-9-

10 1. Information on Segment (Current year) 1) Information on Segment by Kinds of Business Current consolidation accounting period (From January 1, 2001 to June 30, 2001) Segment s Business A Business B Business C Total Retirement / elimination or all companies (Unit: thousand yen ) Consolidated I. Sales and operating profit / loss Sales (1) Sales for outside clients 24,989,206 1,942, ,335 27,756,482 27,756,482 (2) Inside sales and transfer 2 12,983 12,985 (12,985) amounts among segments Total 24,989,209 1,942, ,319 27,769,468 (12,985) 27,756,482 Operating expenses 24,376,332 2,085, ,702 27,453,136 (12,985) 27,440,150 Operating profit or loss () 612, , , ,332 ( ) 316,332 (Note) 1. Methods to segment business The methods to segment business adopted by the Company are based on the unit of sales summary, and segmented taking account of purpose for use of products etc. and similarity of selling methods etc. 2. Main lines of each business Business A: Business B: Business C: Temporary setting products, civil engineering products, products of equipment and materials for construction, building materials and merchandise, industrial fastening products and rent of real. Hotel management Each operations such as mini-laboratory chains, selling of OA equipment, real estate, damage insurance agency and development of real estate/operation of golf links in China. 3. As described in the ad ditional information, the accounting principle of retirement benefit is applied from the current interim consolidation fiscal period. As a result, the operating incomes for "Business A" and "Business C" are recorded up 132,392 thousand yen and up 81 thousand yen respectively, as compared with calculation by traditional method. Previous consolidation accounting period (From January 1, 2000 to December 31, 2000 ) Segment s Business A Business B Business C Total Retirement / elimination or all companies (Unit: thousand yen ) Consolidated I. Sales and operating profit / loss Sales (1) Sales for outside clients 56,899,354 4,675,047 1,998,059 63,572,461 63,572,461 (2) Inside sales and transfer 11 36,716 36,727 (36,727) amounts among segments Total 56,899,365 4,675,047 2,034,775 63,609,188 (36,727) 63,572,461 Operating expenses 54,735,941 4,451,870 1,963,958 61,151,770 (36,727) 61,115,043 Operating profit 2,163, ,177 70,817 2,457,418 ( ) 2,457,418 (Note) 1. Methods to segment business The methods to segment business adopted by the Company are based on the unit of sales summary, and segmented taking account of purpose for use of products etc. and similarity of selling methods etc. 2. Main lines of each business Business A: Business B: Business C: Temporary setting form products, civil engineering products, construction equipment/materials products, building materials, industrial fasteners, exclusive agency operation and lease of real estate Hotel management Each operation such as mini-laboratory chains, selling of OA equipment, real estate, damage insurance agency and development of real estate/operation of golf links in China. -10-

11 2) Information on segment by location of business Current consolidation accounting period (From January 1, 2001 to June 30, 2001) (Unit: thousand yen ) Segm Retirement/ Domestic North Other Total elimination Consolidated America or all companies I. Sales and operating profit / loss Sales (1) Sales for outside clients 24,699,057 2,983,443 73,982 27,756,482 27,756,482 (2) Inside sales and 19,084 10,771 29,856 (29,856) transfer amounts among segments Total 24,718,141 2,994,215 73,982 27,786,339 (29,856) 27,756,482 Operating expenses 24,245,048 3,043, ,612 27,470,006 (29,856) 27,440,150 Operating profit or loss () 473,093 49, , ,332 ( ) 316,332 (Notes) 1 The dividing method of countries or territories is based on geographical proximity. 2. Main countries or territories belonged to the section other than Japan North America USA, Canada Other China 3. As described in the additional information, the accounting principle of retirement benefit is applied from the current interim consolidation fiscal period. As a result, the operating income for "Japan" is recorded up 132,392 thousand yen, as compared with calculation by traditional method. Current consolidation accounting period (From January 1, 2000 to December 31, 2000 ) (Unit: thousand yen ) Segment Retirement/ Domestic North America Total elimination or Consolidated all companies I. Sales and operating profit / loss Sales (1) Sales for outside clients 56,507,081 7,065,379 63,572,461 63,572,461 (2) Inside sales and transfer 183,009 16, ,297 (199,297) amounts among segments Total 56,690,091 7,081,667 63,771,759 (199,297) 63,572,461 Operating expenses 54,672,944 6,641,396 61,314,340 (199,297) 61,115,043 Operating profit 2,017, ,271 2,457,418 ( ) 2,457,418 (Notes) 1 The dividing method o f countries or territories is based on geographical proximity. 2. Main countries or territories belonged to the section other than Japan North America USA, Canada Other China 3) Overseas sales Current consolidation accounting period (From January 1, 2001 to June 30, 2001) (Unit: thousand yen) North America Others Total Overseas sales 2,974,409 88,688 3,063,097 Consolidated sales 27,756,482 Rate of overseas sales to consolidated sales 10.7% 0.3% 11.0% (Note) 1. The dividing method of countries or territories is based on geographical proximity. 2. Main countries or territories belonged to each section North America USA, Canada Others China, France, Mexico, Colombia, Australia, Singapore and Malaysia 3. The overseas sales represents the sales of our Company and its consolidated subsidiary companies located in countries other than Japan and in some other regions. Current consolidation accounting period (From January 1, 2000 to December 31, 2000 ) (Unit: thousand yen) North America Others Total Overseas sales 7,042,519 39,627 7,082,146 Consolidated sales 63,572,461 Rate of overseas sales to consolidated sales 11.1% 0.0% 11.1% (Note) 1. The dividing method of countries or territories is based on geographical proximity. 2. Main countries or territories belonged to each section North America USA, Canada Others France, Mexico, Colombia, Australia, Singapore and Malaysia 3. The overseas sales represents the sales of our Company and its consolidated subsidiary companies located in -11-

12 countries other than Japan and in some other regions. 2. Status of production, orders received and sale (1) Production results The following table shows the production results of each segment by kinds of business in the current interim consolidation fiscal period. (unit: thousand yen) Name of each segment by kinds of business Current interim term Previous term Business A 8,048,687 14,009,278 Business B Business C Total 8,048,687 14,009,278 (Notes) 1. The amounts are based on selling prices. 2. The amounts exclude consumption tax etc. (2) Results of order received The Company's group (the Company and the subsidiaries) produces on a basis of market production in the main segment of Business A. Though a part of the production is based on orders received, no importance is recognized and the descriptions are omitted. (3) Sales results The following table shows the sales results of each segment by kinds of business in the current interim consolidation fiscal period. (unit: thousand yen) Name of each segment by kinds of business Current interim term Previous term Business A 24,989,206 56,899,354 Business B 1,942,940 4,675,047 Business C 824,335 1,998,059 Total 27,756,482 63,572,461 (Notes) 1. The amounts exclude consumption tax etc. -12-

13 Okabe Co., Ltd. 3. Market prices of securities etc. Current interim consolidation accounting period (as of June 30, 2001) Claims with current prices to be held until maturity (unit: thousand yen) on interim consolidated balance sheet Current prices Difference (1) National/municipal bonds 15,585 15, (2) Corporate debentures (3) Others Sub-total 15,585 15, Other securities with current prices (unit: thousand yen) Acquisition cost on interim consolidated balance sheet Difference (1) Stocks 630, ,623 49,586 (2) Bonds (3) Others 150, ,103 15,708 Sub-total 780, ,726 33,877 Contents of main "securities" not evaluated based on current prices (excluding above ) and amounts on the interim consolidated balance sheet (1) Claims to be held until maturity: None (2) Other securities: Unlisted stocks: 264,422 thousand yen Previous consolidation accounting period (as of December 31, 2000) (unit: thousand yen) in consolidated balance sheet Current prices Appraisal profit or loss 1. Current assets Stocks 570, ,386 58,883 Bonds 15,585 15, Others 5,081 3,335 1,746 Sub-total 590, ,532 60, Fixed assets Stocks 1,840,387 1,094, ,790 Bonds Others Sub-total 1,840,387 1,094, ,790 Total 2,431,324 1,625, ,194 (Notes) 1. Calculating methods of current prices (including amounts corresponding to the current prices) Listed securities: Final prices mainly at the Tokyo Stock Exchange Securities of over-the-counter transactions: Published sale/purchase prices of the Japan Security Business Association 2. s recorded in balance sheet of securities excluded from disclosure s of fixed assets Unlisted stocks excluding stocks of over-the-counter transactions 325,766 thousand yen Beneficiary certificates of securities investment trust within closed period 50,892 thousand yen 4. Contracted amounts etc. of derivative transactions, current prices and appraisal profit or l oss Current interim consolidation accounting period (Jan. 1, 2001 to June 30, 2001) As the Company do not perform any derivative transactions, no related matters are described. Previous consolidation accounting period Matters for transactions (Jan. 1, 2000 to December 31, 2000) The purpose of the Company's derivative transactions is only to execute exchange contracts in order to hedge the risk of money claims and debts quoted in foreign currency, and any speculative transactions are not performed. In addition, the above derivative transactions are carried out and managed by the accounting department and shall be subject to approval of the representative director in accordance with the accounting rules. Matters for current prices etc. (as of December 31, 2000). As there exists no contracted amounts etc. in the derivative transactions, at the end of the current consolidation accounting period, the description is omitted. -13-

14 Okabe Co., Ltd. [Reference] Comparative Details for Sales of Each Product (Consolidated) Term Current interim consolidation accounting period (Jan. 1, 2001 to June 30, 2001) Distribution ratio Previous interim consolidation accounting period (Jan. 1, 2000 to June 30, 2000) Distribution ratio (Unit: thousand yen) Previous consolidation accounting period (Jan. 1, 2000 to Dec. 31, 2000) Distribution ratio % % % Temporary setting form products 4,443, ,057, ,506, Civil engineering products 4,534, ,810, ,200, Construction materials 7,263, ,710, ,782, Construction merchandises 7,352, ,682, ,272, Industrial fastening materials 1,392, ,645, ,119, Rent of real estate 2, , , Hotel business 1,942, ,031, ,675, Others 824, ,073, ,998, Total 27,756, ,019, ,572, (Note) s in other sections include the sales of each business such as mini-laboratory chains, selling of OA equipment, real estate agency, damage insurance agency, and development of real estate/operation of golf links in China. -14-