Outlook for Fiscal Year 2000

Owing to further measures pertaining to withdrawal from low-margin transactions, we expect non-consolidated sales revenue to fall, thus causing a decrease in consolidated net sales to ¥6,900 billion, falling short of previous forecasts by ¥400 billion (a decrease of ¥381.3 billion (5.2%) over the previous year). Though gross profit is expected to fall on a non-consolidated basis, consolidated gross profit is expected to increase by ¥20.3 billion (7.6%) over the previous year. SG&A expenses will decline slightly to ¥218 billion, a decrease of ¥0.6 billion (0.3%). As a result, operating profit is expected to increase to ¥70 billion (an increase of ¥20.9 billion, or 42.6%). Other loss is expected to amount to ¥26 billion (a decrease of ¥9 billion, or 52.9%, over the previous fiscal year) in spite of improved interest income emanating from the reduction in interest-bearing liabilities. The figures for last year were higher because of one-time sale of marketable securities. As a result, the previous forecast for net income (¥23 billion) is expected to be achieved successfully, which will be an increase of ¥12.8 billion (125.5%) over the previous year. NOTE: These computations are based on the premise that the ¥/$ exchange rate will be ¥108 to a dollar through the second-half of fiscal 2000, and that crude oil prices will average around $29.5/BBL (Dubai). The above forecast is based on rational conclusions drawn from information available to management at the time of writing. However, actual results may vary depending on external factors such as the economic conditions of the markets in which the company operates in, exchange rate fluctuations, etc.

Consolidated Financial Statements Non-Consolidated Financial Statements To Our Stakeholders Results of Operations Outlook for Fiscal Year 2000