For the year ended March 31, 2002

ANNUAL REPORT2002
MEIDENSHA CORPORATIONProfile
As a heavy electric machinery manufacturer, Meidensha Corporation has
steadily developed excellent engineering resources, advancing toward total
system engineering in a variety of technical fields. The Company’s noteworthy
policy is to consistently focus on a key technical concept, to be referred to as
POWERTRONICS, a fusion of heavy electric technology with electronics
technology. This concept is further joined with MECHATRONICS and
ELECTRONICS, thus creating the three essential pillars of its overall
operations.
Supported by the Four Business Groups—Energy, Environment, Info andCommunications, and Industrial Systems—the Company also strives for“speedy” decision-making and being “agile” in its organization by uniting
sales, engineering, and manufacturing.
We constantly bear in mind that we must contribute to society as a reliable
solution provider to ensure that our technologies and products will be usefuland effective in the creation of a well-to-do society and a comfortableenvironment.

Contents
Financial Highlights ..................................................................................... 3
Message from Management.......................................................................... 4
Review of Operations.................................................................................... 6
R&D Review................................................................................................ 12
Financial Section ........................................................................................ 13
Overseas Offices and Affiliates................................................................... 36
Consolidated Subsidiary Companies ......................................................... 38
Corporate Data ........................................................................................... 39
Board of Directors ...................................................................................... 39
2002 Annual Report2Financial Highlights
Years ended March 31
Thousands of
U.S. dollars

Millions of yen
2002

2001

2000

2002

Net Sales ...........................................................

¥200,075¥196,983¥204,376$1,504,323

Net Loss ............................................................

(3,906)(2,645)(5,761)(29,368)

Net Loss Per Share (yen, U.S. dollars) .............

(19.34)(13.09)(28.52)(0.15)Cash Dividends Paid .........................................

—

—

—

—

Total Assets .......................................................

205,221212,105

221,388

1,543,015

Number of Employees ......................................

7,622

8,192

8,542

—

The consolidated figures in this Annual Report are expressed in yen and solely for the convenience of thereader, translated into United States dollars at the rate of ¥133 = U.S.$1, the approximate exchange rate
prevailing on the Tokyo Foreign Exchange Market as of March 31, 2002. See No.1 of Notes to Consolidated
Financial Statements.
Net Sales (¥ millions)

Net Loss (¥ millions)

Total Assets (¥ millions)
250,000

250,000

235,911
221,388

218,354
204,376 196,983 200,075

200,000

212,105

205,221200,000

150,000

150,000

100,000

100,000

50,00050,000
0

0

99

00

01

(2,645)02

0(3,906)–5,000

99

00

01

02

(5,761)–10,000–15,000(16,912)–20,000

99

00

01

02

2002 Annual Report3Message from Management
The Japanese economy during fiscal 2001 continued to deteriorate as a whole. The adjustments in economic activity, starting from the decline in IT-related sector, broadly affected thedomestic demand. While corporate profits were falling, business fixed investment decreased. The
world economy was aggravated by the September 11 terrorist attacks and Japan’s exports declined. Public investment and private consumption remained sluggish. At the end of fiscal 2001,
the world economy was progressing toward a recovery and the inventory adjustment progressed
further in Japan’s economy. There had been increasing signs that the Japanese export and industrial production had bottomed out but there was no sign of recovery in business fixed investment
and private consumption. As such, the economic conditions surrounding the corporate sector
remained cautiously severe.
Under these economic conditions, Meidensha Corporation made vigorous marketing efforts toboost sales across the Company. As a result of these efforts, sales for fiscal 2001 were 200,075
million yen (consolidated basis), or 1.6% higher than the previous fiscal year.
Corporation-wide efforts were made to cut expenses, reduce costs, and raise productivity. However, due to the loss on valuation of securities caused by sluggish stock prices, we regret to reportthat our losses for the period before taxes and other adjustments amounted to 3,548 million yen(consolidated basis) and net losses for the period amounted to 3,906 million yen (consolidated
basis).
With regard to dividends for shareholders, the management regrets that the Company was
unable to post a dividend.
Meidensha Corporation has been implementing the New Construction 21 (NC21) mediumterm management plan that commenced in April 2000 with the aim of returning to profitability
and dividend payment. However, as a result of such losses as the torrential downpour damage
that hit the Tokai Region in September 2000 and the loss on valuation of securities caused bysluggish stock prices, etc., the NC21 plan is in a difficult phase for timely implementation. However, we shall spare no efforts in reaching the aim of NC21 at the earliest possible time throughour continuous innovations and necessary changes.
As part of this commitment, we will make a serious review of how we should devote our corporate resources to the existing business sectors as well as new business sectors under development
such as medical and welfare sector, IT-based various solutions business, etc. We would like toallocate our corporate resources focusing on the strategically important business sectors to increase profitability.
With regard to the strategic alliances with other corporations, which we have been actively
promoting since 2000, Meidensha jointly formed “Japan AE Power Systems Corporation” with
Hitachi, Ltd. (NYSE: HIT) and Fuji Electric Co., Ltd. (TSE: 6504) in July 2001. The three companies have transferred their manufacturing operations for the transmission and distribution
business into this new company. In October 2001, the same three companies transferred their
manufacturing operations of high-voltage motors and small to medium-capacity generators to a
joint venture company called Japan Motor & Generator Co., Ltd. which was formed by the threecompanies in July 2000. By making the best use of these two joint venture companies, Meidensha

2002 Annual Report

4Corporation will make these products competitive, streamline the product lineups, and realize the efficient production network.
On the financial management front, we will reduce the interest-bearing liabilities by effectively utilizing the assets and improving the credit collection management so that we improve
the financial conditions.
By strengthening group strategy, raising management efficiency, and expanding the range ofour business activities, we will work toward the growth of the MEIDEN Group as a whole.
We ask every shareholder as well as our customers and business partners to continue toshare your guidance and advice.

Shigeo Seko, Chairman

Keiji Kataoka, President

2002 Annual Report5Review of Operations

The Energy Sector is our core market segment of
the Company with an impact to its profitability.
Meidensha Corporation is continuously aiming to expand theconventional substation and power generation equipment
business as well as new business sectors. Especially, we areaiming to be a total energy solutions provider to address
customers’ energy-related issues.
In this sector, there is marked growth of our generationequipment (i.e., emergency generators, mobile generator
mounted on vehicle), traction substations for railways for
the Japanese market and gas-turbine generators for the U.S.
market. We kicked off an extensive marketing campaign ofmicro turbine systems as distributed generation , and haveincreased the spectrum of product offerings. These include
micro cogeneration systems and waste heat driving type desiccant-based air conditioning (DBAC) systems utilizing waste
heat, and systems with UPS functionality. Micro turbine systems shipments have exceeded 100 sets. We have received
orders for biomass (rice hulls) power systems from Thailand.
In the field of renewable energy business, we have initiated a focused marketing of wind power systems, and haveacquired the distributorship of wind power systems made by
REpower Systems AG of Germany for
the Japanese market.
In the energy sector, the eco-conscious features in the products are important. We saw high demand for cubicle-type gas-insulated switchgear (CGIS), which uses less SF6 gas, and wehave shipped a large number of theseswitchgears. We have also shipped
high-efficiency transformers.
In the area of electric power solutions, we have increased shipment of
power conversion system for use withsodium-sulfur (NAS) batteries.
We have also developed dynamic
voltage compensator and started marketing.
Dynamic voltage
compensator

Waste heat driving type desiccant-based air
conditioning system

36kV cubicle-type gas-insulated switchgear (C-GIS)

300MVA transformer

Power conversion system for NAS batteries

2002 Annual Report6Review of Operations

Multi-functional type digital relay

EIC integration system, process control station,
UNISEQUE ADC5000

Meidensha Corporation is enhancing the engineering to realize a better water environment. We focused on
the upgrading needs of existing water treatment plants.
With respect to the upgrading business with retrofitting, we introduced OPS9000 and UNISEQUE
ADC5000 which are dispersed control system products utilizing Web computing technology compatible with
open network architecture. We started marketing of these systems, and saw steady sales growth.
In the power solutions business, we saw shipment increase of power storage systems utilizing 1000kW NAS
batteries for sewage treatment plants. These systems result in lower power costs and a reduced impact to theenvironment. We are providing customers with proposals especially engineered to give an effective combined
use of natural energy (such as photovoltaic power generating system and wind turbine generating system) andunutilized energy sources (such as digestion gas power generation system).
We have received orders for the dry-distillation type of thermal decomposition disposal systems meeting thelatest emission regulations on dioxin type substances. By applying this treatment system, we have begun theconstruction of a pilot plant to perform carbonization of sludge produced at a sewage treatment plant.
Meidensha Corporation is engaging in the outsourcing service of the total facility management of water
purification plants to realize efficient facility management for the customer.

Digestion gas power generating
system2002 Annual Report7Review of Operations

Meidensha Corporation is pursuing the open system architecture. We have developed such computer-applied system products as the Wholesale-flowermarket information system. Our
products in this sector were shipped to a large number of customers.
We have produced a series of communications and networkassociated products, such as routers and industrial switchinghubs and increased our supply record of our IT-related products. These include the web-based live and voice communication system, REALFIELD RF4500 and the switching hub forthe power industry (MEISWAY SW400-FX) which complies with
the B-402 standard for electrical power applications.
On the industrial computer products, we have been expanding the spectrum of product lineup on compact, high-performance controllers. We started marketing these products to thecontroller sector , including those for semiconductor production equipment, etc.
Meidensha Corporation has increased the performance level
further in exposure power supply units for excimer lasers usedin the stepper. We have also developed and shipped a newseries of more compact, higher performance vacuum capacitors for RF automatic matching units.

Wholesale-flowermarket information system

Web-based live and voice communication system

Switching hub, MEISWAY SW400-FX
Industrial computer, μPIBOC-I

2002 Annual Report8Review of Operations

PM motor

PM motors for elevators without a machine room

In the motor application field, we have increased the
product offerings with unique features using the permanent magnet type synchronous motor (PM Motor). These
include high-efficiency, energy-saving speed control equipment, PM motors for elevators without a machine room,
PM motors for electric vehicles, and PM motors for dynamometers. We have supplied a large number of systems that utilize these products, including electricalequipment for elevators with a maximum shaft load of
100 tons.
In the logistic business field, we have delivered AGVs
(Automated Guided Vehicles), palletizers, and warehousefacilities for use on automobile parts manufacturing lines,
as well as comprehensive systems for monitoring, control, and management of our supplied products.
In the dynamometer field, we have supplied drive train
evaluation devices for electric automobiles and braketesters for Formula One Racing Cars. We have also manufactured and shipped brake noise evaluation systems applying water-cooled type dynamometers, water-cooled typethree-axis powertrain noise-testing systems, and HEVtransmission testing systems, etc.

Evaluation devices for electricautomobiles

AGV2002 Annual Report9Review of Operations

Aid information control system,
Herusukekun seriesThis sector represents challenges at Meidensha Corporation for
new market sectors.
With the aging of Japanese society, the medical and welfare sector shows its market size increase. Meidensha Corporation is developing the business in three fields: home nursing management
system, life support, and medical aid.
On the home nursing management systems, we have upgradedand enhanced the functions of aid information control system series “Herusukekun” which meets the latest requirements of Japan’sLong-term Care Insurance.
With respect to the life support sector, we started marketing the“Travel Partner” which is the world’s lightest (28 kg) motor-powered scooter designed for use by the elderly.
With respect to the medical aid field, we started the sales of
medical accounting systems for hospitals and clinics. Our goal is
to link these billing data with electronic medical records to create
a total medical accounting system.
Motor-powered scooter, Travel Partner

Screen of medical accounting system

2002 Annual Report10Review of Operations

JABOTABEK railway substation

Fiscal 2001 showed a steady increase in electricity demand in Southeast Asia, which is a major market for Meidensha
Corporation, and each country was actively promoting infrastructure improvements to public transport by building
Mass Rapid Transit (MRT) and Light Rail Transit (LRT) systems.
The world market for power generation plant in the first half of fiscal
2001 was driven by the US market due its surging economy since fiscal 2000
and its replacement need for outdated electricity infrastructure. However, inthe second half of fiscal 2001 in the US, the demand for power plant construction was slowed by the influence of the sluggish IT business and lower electricity prices.
The dynamometer systems market in the US, which is another vital market, experienced a moderation in consumer demand for cars in April 2001,
and to achieve sales growth, the major automobile manufacturers offered zeropercent financing and hefty rebates to attract customers. These sales promotions produced fiscal 2000 level car production but its cost impacts were felt in
2-pole turbine generator
the car industry. As a result, dynamometer systems projects were cancelled,deferred or scaled down.
These circumstances coupled with the impact of transferring the transmission and distribution business to JapanAE Power Systems Corporation, resulted in decreased exports, with orders totaling 12,250 million yen, a change of
34.3% up from the previous year, and sales reaching 9,671 million yen, down 22.3% from the previous year.
The major products ordered in the fiscal 2001 were as follows:
In the power distribution field, CLP Power Hong Kong Ltd. in Hong Kong placed orders for 1500 kVA & 2000
kVA transformers. We also received an order for sixteen 75 MVA transformers from PowerGrid Limited in Singapore.
In the field of electric railway substations, we received orders for traction substations from Kowloon-Canton Railway
Corporation in Hong Kong. In the power generation field, GE Aero Energy Products of Texas placed orders for 56
MVA generators to be used with the GE LM6000PC gas turbine.
In the Asian market for automobile dynamometers, we received orders for an automatic-transmission (A/T)
tester from Hyundai Powertech Co., Ltd. of Korea and orders for three motorcycle engine testing systems and two
chassis dynamometers from Kwang Yang Motor Co., Ltd. of Taiwan. In the North American market, Ford Motor
Company placed an order for an engine bench dynamometer system in an anechoic room for the Essex Engine Plant
in Canada. We received orders for two engine dynamometer systems from Toyota Motor Manufacturing Alabama, Inc.
in Alabama, and for a four-wheel-drive chassis dynamometer system
in an anechoic room from TRI Technical Center USA, Inc. in Michigan. In the European market, AW Europe S.A. of Belgium placed anorder for an end-of-line automatic transmission tester.
The major products manufactured and shipped during fiscal 2001
were as follows:
In the field of electric railroad substations, we supplied and installed eight traction substations for JABOTABEK Railway Project,
Ministry of Communications, Indonesia.
Engine bench dynamometer2002 Annual Report11R&D Review
Development of Electric Double layer Capacitors and their Practical Applications
Meidensha Corporation is developing electric double layer capacitors withthe objective of effective energy utilization in power facilities and industrial
equipment. Last year, we developed and delivered a capacitor cubicle to the
Railway Technical Research Institute for use with a mini-model of a rail powerfeeding system that was designed to investigate practical application to electric railways.
The characteristics of electric double layer capacitors give them a numberof advantages, including the following : (1) They are environmentally friendly
because they do not use any heavy metals. (2) They have a long cycle life andgood maintainability. (3) They can be easily applied for high voltage use,
because the standard units are composed for 100 V and they can be connected in series. (4) They can be fitted easily into a cubicle because of theirsquare shape, and the cubicle is capable of delivering 40 kW for ten seconds.
Meidensha intends to develop these capacitors for an application to power
conditioner anti-instantaneous-voltage-dip equipment that take advantage of
their rapid charge-discharge performance, for an application to high energydensity electric power storage systems, and for many other applications.

Capacitor cubicle

Control System for the Disinfection of Primary Effluent
In Japan, there is a regulation that the number of coliform group in the final effluent must be no greaterthan 3,000/mL according to the sewerage law. Consequently, every sewage treatment plant chlorinates treatedwater before releasing it. When controlling the dosage of the chlorine injection into primary effluent (in rainy
weather), in particular, the initial chlorine feed ratio is usually set to a level 5-10 times higher than the feed
ratio for advanced treated water (in dry weather). This chlorination takes place by treated-water ratio control,
whereby the dosage is proportional to the volume of treated water. The coliform group for advanced treatedwater is measured in advance in a short time by using enzyme immunoassay and chemiluminescence techniques, and chlorine injection is quantified on the basis of thosemeasured results.
Meidensha Corporation has improved the enumeration process used by the automatic coliform bacteria-counting device.
We have developed a method that reduces the time taken tocount coliform group in primary effluent water to approximately 25% of the time taken for advanced treated water (approximately 30 minutes). We have further established a system capable of controlling the chlorine injection dosage on
the basis of those measured results.
Control system for the disinfection of primary effluent

2002 Annual Report12Financial
SectionConsolidated Financial Review .................................................................. 14
Five-Year Summary ..................................................................................... 14
Operational Review .................................................................................... 15
Consolidated Balance Sheets ..................................................................... 16
Consolidated Statements of Operations .................................................... 18
Consolidated Statements of Shareholders’ Equity .................................... 19
Consolidated Statements of Cash Flows .................................................... 20
Notes to Consolidated Financial Statements ............................................. 21
Report of Independent Public Accountants ............................................... 35

2002 Annual Report13Consolidated Financial Review
Outline of Profits and Losses
During the period, Japan’s economy experienced
a broad downward adjustment which began with adepression in the IT industries. As corporate profits
suffered, the added effects of the September 11 terrorist attacks in the United States led to a downturnin business fixed investments and exports. Public
investment and private consumption likewise remained sluggish, resulting in a continuing economic
malaise of extremely serious proportions.
Net sales totalled 200,075 million yen, a 1.6% risecompared with the previous term. Business sectorbased net sales stood at 35.8% for the Energy Sector, 23.7% for the Environment Sector, 6.8% for the
Info and Communications Sector, 16.3% for the Industrial Systems Sector, and 17.4% for Others.
The cost of sales was 160,016 million yen, a 1.7%
increase. Sales, general and administrative expenses
totalled 36,525 million yen, a 2.3% increase. Operating income, therefore, stood at 3,534 million yen.
The final result was a net loss of 3,906 million
yen for this term.

Financial Conditions
Total assets at the end of March 2002 were
205,221 million yen, a decrease of 6,884 million yen.
As a result of decreased cash and time deposits andmarketable securities, of this figure current assets
stood at 134,254 million yen, a decrease of 7,994
million yen. Property, plant and equipment was
40,899 million yen, an increase of 1,403 million yen.
Total current liabilities totalled 136,766 million yen,
an increase of 574 million yen, and shareholders’equity stood at 35,703 million yen, a decrease of
3,186 million yen. As a result, shareholder capitalratio decrease 0.9 points from 18.3% to 17.4%.

Five-Year Summary
MEIDENSHA CORPORATION AND CONSOLIDATED SUBSIDIARIES
Years ended March 31

2002

2001

Net sales¥200,075¥196,983

Net loss(3,906)Net loss per share (Yen)
Cash dividends paid
Depreciation and amortization

Millions of yen
2000

1999

1998

¥204,376¥218,354¥222,772(2,645)(5,761)(16,912)(4,767)(19.34)(13.09)(28.52)(83.71)(23.60)

—

—

—

—

1,818

4,861

5,102

6,285

6,588

6,666

Total assets

205,221212,105

221,388

235,911

253,671

Net property, plant and equipment

40,89939,496

39,61647,05747,391

Shareholders’ equity per share (Yen)

176.74

192.50206.00182.21

266.302002 Annual Report14

Operational Review
Energy Sector
Net sales ¥71,587 million ($538,248 thousand)
The Company manufactures and markets generators, transformers, switching devices, lightning
arresters, power conversion equipment, and products to control these devices, for use in electric
power facilities ranging from power company generating stations to transmission, transforming, anddistribution facilities, in establishments ranging
from national and local government facilities to railroads, highways, buildings, construction sites, andso on.

Environment Sector
Net sales ¥47,397 million ($356,368 thousand)
The Company provides “environment-friendly
products and technologies” for the development of
IT networks involved in the control of treatment
equipment and processes for city water and sewage water systems operated by local governments,
as well as for energy conservation, recycling, waste
treatment, and so on.

Info and Communications Sector
Net sales ¥13,595 million ($102,218 thousand)

35.8%
00

81,18401

70,59702

71,58723.7%
55,57700

01

51,852

0247,39700

11,6356.8%

01

14,63602

13,595The Company manufactures and markets computer systems and all types of electronic equipment
and crystal-related products primarily for the information and telecommunications market.

16.3%
00

Industrial Systems Sector
Net sales ¥32,634 million ($245,368 thousand)
The Company manufactures and markets products related to manufacturing processes in every
type of manufacturing industry, and, with a focus
on electric motor power application products, extends to dynamometer instrumentation, industrial
robots, automated guided vehicles, and other suchareas.

Others
Net sales ¥34,862 million ($262,121 thousand)

01

02

21,92525,17632,63417.4%
00

34,05501

34,722

02

34,862

2002 Annual Report15

Consolidated Balance Sheets
MEIDENSHA CORPORATION AND CONSOLIDATED SUBSIDIARIESMarch 31, 2002 and 2001
Millions of yen
2002
2001

Thousands of
U.S. dollars (Note 1)
2002

AssetsCurrent assets:
Cash and time deposits ...........................................................
Marketable securities (Note 3) ...............................................
Receivables:
Trade notes (Note 16) ........................................................
Trade accounts ...................................................................
Loans and advances ...........................................................
Due from unconsolidated subsidiaries and affiliates ........
Allowance for doubtful accounts .......................................
Inventories (Note 4) ................................................................
Deferred income taxes (Note 14) ............................................
Other current assets .................................................................
Total current assets .......................................................

¥15,033
1,086¥16,174
3,668$113,030
8,165

12,886
68,204
476
802
(544)
28,0093,700
4,602
134,254

14,272
68,393
542
1,123
(244)
31,466
4,570
2,284
142,248

96,887
512,812
3,579
6,030(4,090)210,594
27,82034,602
1,009,429

8,278
42,636
74,204
3,369(87,588)
40,899

7,897
42,10473,361
1,085(84,951)
39,496

62,241
320,571557,924
25,331(658,556)
307,511

16,213
2,355
123
6,254
5,173
(50)
30,06818,069
977
157
5,158
6,009
(9)
30,361

121,90217,707925
47,02338,894(376)
226,075¥205,221¥212,105$1,543,015

Property, plant and equipment (Note 7):
Land.........................................................................................
Buildings and structures .........................................................
Machinery and equipment ......................................................
Construction in progress .........................................................
Less: Accumulated depreciation .............................................

Investment and other assets:
Investment securities (Notes 3 and 7) ....................................
Investments in unconsolidated subsidiaries and affiliates (Note 3) .
Long-term loans ......................................................................
Deferred income taxes (Note 14) ............................................
Other assets (Note 7) ...............................................................
Allowance for doubtful accounts ............................................

Total assets
See accompanying notes.

2002 Annual Report

16Millions of yen
2002
2001
Liabilities and Shareholders’ Equity
Current liabilities:
Short-term borrowings (Notes 5 and 7) ..................................
Current portion of long-term debt (Notes 6 and 7) ................
Payables:Trade notes (Note 16) ........................................................
Trade accounts ...................................................................
Due from unconsolidated subsidiaries and affiliates ........
Advances received from customers ........................................
Accrued income taxes .............................................................
Accrued bonuses .....................................................................
Other current liabilities ...........................................................
Total current liabilities .......................................................

Thousands of
U.S. dollars (Note 1)
2002¥47,901
7,552¥44,878
4,761$360,158
56,782

16,92130,365
1,811
13,398504
4,676
13,638
136,766

17,42535,419546
13,944837
5,508
12,874
136,192

127,226
228,308
13,617100,737
3,789
35,158102,541
1,028,316

Long-term debt (Notes 6 and 7) .............................................
Employees’ severance and retirement benefits (Note 8) ............
Reserve for retirement allowance for directors
and auditors ........................................................................
Deferred income tax liabilities on revaluation reserve
for land ...............................................................................
Other long-term debt ...............................................................

12,617
9,992

19,247
7,903

94,86575,128

897

811

6,744

484
322

484
86

3,639
2,420

Minority interests .......................................................................
Contingent liabilities (Note 10)
Shareholders’ equity (Note 9):
Common stock
Authorized — 576,000,000 shares
Issued and outstanding — 202,025,158 shares ...........
Additional paid-in capital .......................................................
Retained earnings ....................................................................
Revaluation reserve for land, net of tax .................................
Net unrealized holding gains on securities .............................
Foreign currency translation adjustment ................................
Less: Treasury stock ................................................................
Total shareholders’ equity ..................................................

8,440

8,493

63,45917,07012,751
4,665
423
1,159
(362)
( 3)
35,703

17,07012,751
8,968
423
—
(323)
(0)
38,889128,346
95,87235,075
3,181
8,714(2,721)(23)
268,444

Total liabilities and shareholders’ equity .................................

¥205,221¥212,105$1,543,015

2002 Annual Report17Consolidated Statements of Operations
MEIDENSHA CORPORATION AND CONSOLIDATED SUBSIDIARIES
Years ended March 31, 2002, 2001 and 2000

2002

Millions of yen
2001

2000

Thousands of
U.S. dollars (Note 1)
2002

Net Sales ..........................................................

¥200,075¥196,983¥204,376$1,504,323

Cost of sales (Note 12) ....................................
Selling, general and administrative
expenses (Note 12) ......................................

160,016

157,366

164,221

1,203,128

36,52535,70838,394

274,624

Operating income .................................

3,534

3,909

1,761

26,571

Interest and dividends income ....................
Interest expense ...........................................
Gains on securities sold ..............................
Write-down of securities .............................
Special retirement benefits to employees ..........
Provision for employees’ pension liability ........
Loss on disposal of fixed assets ..................
Gain on sales of property, fixed assets .......
Loss arising from liquidation ofsubsidiaries and affiliates .......................
Accident insurance income .........................
Casualty loss (Note 17) ...............................
Miscellaneous, net .......................................

588(1,106)39(5,243)
—
—
(40)
3

588
(1,159)
1,207
(55)
—
—
(399)
1

669
(1,183)966(618)(1,650)
(8)
(684)
1,185

4,421
(8,316)
293(39,421)
—
—
(301)
23

—
7
60
(1,390)—325(3,112)(723)(4,457)
—
—
(666)

—
54
451
(10,452)

Income (loss) before income taxes ......

(3,548)582(4,685)(26,677)

Minority interests .............................................

1,101
(932)
169
189

1,310
1,793
3,103
124

1,438
(314)
1,124
(48)

8,278
(7,007)
1,271
1,420

Net loss .......................................................

¥(3,906)¥(2,645)¥(5,761)$(29,368)

2002

Yen
2001

2000

U.S. dollars (Note 1)
2002¥(19.34)——¥(13.09)——¥(28.52)——$(0.15)——

Other income (expenses):

Income taxes (Note 2):
Current ........................................................
Deferred ......................................................

Amounts per share of common stock:
Net loss ........................................................
Diluted net income ......................................
Cash dividends applicable to the year ........
See accompanying notes.

2002 Annual Report18Consolidated Statements of Shareholders’EquityMEIDENSHA CORPORATION AND CONSOLIDATED SUBSIDIARIES
Years ended March 31, 2002, 2001 and 2000

Balance at March 31, 1999 .................................
Net loss ...........................................................
Bonuses to directors and statutory auditors ..
Cumulative effect of adopting deferredincome tax accounting (Note 2) ..................
Increase in retained earnings due toaddition of consolidated subsidiaries ..........
Decrease in retained earnings due toreduction of consolidated subsidiaries ........
Decrease in retained earnings due toownership change of affiliates .....................
Decrease (increase) treasury stock ................
Balance at March 31, 2000 .................................
Net loss ...........................................................
Bonuses to directors and statutory auditors ..
Increase in retained earnings due tomerger of consolidated subsidiaries ............
Decrease in retained earnings due toaddition of consolidated subsidiaries ..........
Adjustments from translation of foreign
currency financial statements (Note 2) ................
Revaluation reserve for land .........................
Decrease (increase) treasury stock ................
Balance at March 31, 2001 .................................
Net loss ...........................................................
Bonuses to directors and statutory auditors ..
Increase in retained earnings due toreduction of affiliated company ..................
Decrease in retained earnings due toaddition of consolidated subsidiaries ..........
Adjustments from translation of foreign
currency financial statements (Note 2) .........
Adoption of new accounting standard forfinancial instruments (Note 2) .....................
Decrease (increase) treasury stock ................
Decrease in retained earnings due toreduction of consolidated subsidiaries ........
Balance at March 31, 2002 .................................

Millions of yen
Retained Revaluation Net unrealized Foreign currency Treasury
earnings reserve for holding gains
translation
stock
land, net of tax on securities
adjustment¥6,990
¥—
¥—
¥—
¥(1)
(5,761)
—
—
—
—
(69)
—
—
—
—

Number of Common stock
shares issued

Additional
paid-in capital

202,025,158——¥17,070——¥12,751
—
—

—

—

—

10,631

—

—

—

—

—

—

—

238

—

—

—

—

—

—

—

(29)

—

—

—

—

—
—
202,025,158————
17,070————12,751——(204)—
11,796(2,645)
(55)

—
—
—
—
—

—
—
—
—
—

—
—
—
—
—

—
0
(0 )
—
—

—

—

—

13

—

—

—

—

—

—

—

(141)

—

—

—

—

—
—
—
202,025,158
—
—

—
—
—
17,070—————12,751
—
—

—
—
—
8,968
(3,906)
(75)

—
423
—
423
—
—

—
—
—
—
—
—

(323)
—
—
(323)
—
—

—
—
0
(0)
—
—

—

—

—

61

—

—

—

—

—

—

—

(376)

—

—

—

—

—

—

—

—

—

—

(39)

—

—
—

—
—

—
—

—
—

—
—

1,159
—

—
—

—
(3)

—
202,025,158—¥17,070

Number of Common stock
shares issued
Balance at March 31, 2001 ................................. 202,025,158
Net loss ...........................................................
—
Bonuses to directors and statutory auditors ..
—Increase in retained earnings due to reductionof affiliated company ...................................
—
Decrease in retained earnings due to additionof consolidated subsidiaries .........................
—
Adjustments from translation of foreign
currency financial statements (Note 2) .........
—
Adoption of new accounting standard forfinancial instruments (Note 2) .....................
—
Decrease (increase) treasury stock ................
—
Decrease in retained earnings due toreduction of consolidated subsidiaries .......
—
Balance at March 31, 2002 .......................... 202,025,158$128,346
—
—

—
(7)
—
—
—
—
¥12,751¥4,665¥423¥1,159¥(362)¥(3)
Thousands of U.S. dollars (Note 1)
Additional
Retained Revaluation Net unrealized Foreign Currency Treasury
paid-in capital earnings reserve for holding gains
translation
stock
land, net of tax on securities
adjustment$95,872 $67,428$3,181$—$(2,428)$(0)— (29,368)
—
—
—
—
—
(564)
—
—
—
—

—

—

459

—

—

—

—

—

—

(2,827)

—

—

—

—

—

—

—

—

—

(293)

—

—
—

—
—

—
—

—
—

8,714
—

—
—

—
(23)

—
$128,346—$95,872(53)$35,075—$3,181—$8,714—$(2,721)—$(23)

2002 Annual Report19Consolidated Statements of Cash Flows
MEIDENSHA CORPORATION AND CONSOLIDATED SUBSIDIARIES
Years ended March 31, 2002, 2001 and 2000
Thousandsof U.S. dollars

Millions of yen
Operating activities:
Income (loss) before income taxes
Adjustments to reconcile income (loss) before income
taxes to net cash provided by operating activities:
Depreciation and amortization
Increase (Decrease) in allowancesInterest and dividends income
Interest expense
Loss arising from casualty
Accident insurance income
Write-down of securities
Decrease in receivables
Decrease (Increase) in inventories
Increase (Decrease) in payables
Other-net
Sub totalInterest income and dividends received
Interest expense paid
Special retirement benefits to employees paid
Income taxes paid
Accident insurance income
Expenditures from casualty
Net cash provided by operating activities
Investing activities:
Acquisition of marketable securities and investment securities
Proceeds from sales of marketable securities and investment securities
Additions to property, plant and equipment
Proceeds from sales of property, plant and equipment
Decrease in investments in and advances tounconsolidated subsidiaries and affiliates
Other-net
Net cash provided by (used in) investing activities
Financing activities:
Decrease in short-term bank loans
Decrease in commercial paper
Proceeds from long-term debt
Repayment of long-term debt
Repayment of bonds
Other-net
Net cash used in financing activities
Effects of exchange rate changes on cash
Increase (Decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of year
Increase due to change in consolidated subsidiaries
Cash and cash equivalents at end of year
See accompanying notes.

(Note 1)

2002

2001

2000

2002

¥(3,548)¥582¥(4,685)$(26,677)

4,861
1,665
(588)
1,106
(60)
(7)
5,243
1,548
4,132
(5,772)(2,129)
6,451

5,102
1,205
(588)
1,159
3,312
(325)
55
476
(3,763)
5,119(1,069)11,265

6,285(1,386)
(669)
1,183
—
—
618
12,542
3,957(4,545)
5,440
18,74036,54912,519(4,421)
8,316
(451)
(54)
39,421
11,63931,068(43,398)(16,007)48,504559(1,094)—(1,344)
7
(153)
4,426

594
(1,138)—(1,152)
325
(721)
9,173

675
(1,231)(4,053)(1,628)——12,5034,203(8,226)—(10,106)53(1,150)33,278(6,881)
5,577(4,300)421(4,562)
5,780(4,521)402(5,301)
10,697(4,799)1,817(51,736)
41,932(32,331)
3,165

—
141
(5,042)—336(2,565)

1,561
(438)
3,537

—
1,060
(37,910)

2,439
—
4,672
(8,512)—303(1,098)34(1,680)17,150111¥15,581

1,885(17,000)
6,583(8,710)—33(17,209)19(10,582)
27,273459¥17,150(3,556)(6,000)
7,405(3,203)(4,000)(1,337)(10,691)(82)
5,267
21,549457¥27,273

18,338—35,128(64,000)—
2,278(8,256)256(12,632)
128,947
835$117,150

2002 Annual Report20Notes to Consolidated Financial Statements
MEIDENSHA CORPORATION AND CONSOLIDATED SUBSIDIARIESMarch 31, 2002, 2001 and 2000

1. Basis of Consolidated Financial
Statements
MEIDENSHA CORPORATION (the “Company”)
and its consolidated domestic subsidiaries maintaintheir official accounting records in Japanese yen andin accordance with the provisions set forth in theJapanese Commercial Code and accounting principles
and practices generally accepted in Japan (“Japanese
GAAP”). The accounts of overseas subsidiaries are
based on their accounting records maintained in conformity with generally accepted accounting principles
and practices prevailing in the respective countriesof domicile. Certain accounting principles and practices generally accepted in Japan are different fromInternational Accounting Standards and standards inother countries in certain respects as to applicationand disclosure requirements. Accordingly, the accompanying financial statements are intended for use by
those who are informed about Japanese accounting
principles and practices.
The accompanying consolidated financial statements are a translation of the audited consolidated
financial statements of the Company which were prepared in accordance with accounting principles andpractices generally accepted in Japan from the accounts and records maintained by the Company andits consolidated subsidiaries and were filed with the
Minister of Finance (“MOF”) as required by the Securities and Exchange Law.
In preparing the accompanying consolidated financial statements, certain reclassifications have been
made in the consolidated financial statements issued
domestically in order to present them in a form which
is more familiar to readers outside Japan.
The consolidated statements of shareholders’ equity for 2002, 2001 and 2000 have been prepared forthe purpose of inclusion in the accompanying consolidated financial statements, although such statements were not required for domestic purposes andwere not filed with the regulatory authorities.
The translation of the Japanese yen amounts into
U.S. dollars are included solely for the convenienceof the reader, using the prevailing exchange rate at
March 31, 2002, which was ¥133 to U.S. $1. The convenience translations should not be construed as representations that the Japanese yen amounts havebeen, could have been, or could in the future be, converted into U.S. dollars at this or any other rate ofexchange.
Certain prior years’ amounts have been reclassified to conform to 2002 presentation. These changes
had no impact on previously reported results of operations or shareholders’ equity.

2. Summary of Significant Accounting
Policiesa) Principles of Consolidation
Effective from the year ended March 31, 2000, allcompanies are required to consolidate all significant
investees which are controlled through substantial
ownership of majority voting rights or existence of
certain conditions. Previously only majority-owned
companies were consolidated. The prior years’ consolidated financial statements have not been restated.
The accompanying consolidated financial statements include the accounts of the Company and its
24 consolidated subsidiaries in 2002 (22 in 2001 and2000). All significant intercompany accounts andtransactions have been eliminated on consolidation.
The Company’s remaining subsidiaries, whose net andgross assets and net sales are not significant in theaggregate in relation to the comparable figures in the
consolidated financial statements, have not been consolidated.
In the elimination of investments in subsidiaries,
the assets and liabilities of the subsidiaries, including the portion attributable to minority shareholders, are evaluated using the fair value when the Com
2002 Annual Report21

pany acquired control of the respective subsidiaries.

b) Equity Method
Investments in unconsolidated subsidiaries andaffiliated companies (all 20% to 50% owned and certain others 15% to 20% owned) are accounted for by
the equity method in the year ended March 31, 2002,
2001 and 2000. Prior to April 1, 1999, only investments in companies of which the Company owns 20%
to 50% of the voting rights and has the ability to significantly influence financial, operational or business
policies were accounted for using the equity method.
Effective April 1, 1999, in accordance with the revised
Accounting Principles for Consolidated Financial
Statements, investments in companies of which theCompany has at least 15% and less than 20% of thevoting rights are also accounted for using the equity
method in the cases where the Company has the ability to exercise significant influence over operating andfinancial policies of the investees. The effect of the
adoption of this new accounting is immaterial. Investment in an affiliated company are accounted for by
the equity method in 2002, and investments in an
unconsolidated subsidiary and an affiliated company
are accounted for by the equity method in 2001 and2000. Investments in all other unconsolidated subsidiaries and affiliated companies, that would nothave material effect on the consolidated financial
statements, are stated at cost.
c) Securities
Prior to April 1, 2000, securities listed in Japanese stock markets are mainly stated at the lower ofcost or market. Securities unlisted in stock markets
are stated at cost. The cost is determined by themoving-average method.
Effective April 1, 2000, the Company and its consolidated subsidiaries adopted the new Japanese accounting standard for financial instruments (“Opinion Concerning Establishment of Accounting Standard

for Financial Instruments” issued by the BusinessAccounting Deliberation Council on January 22,1999).
Upon applying the new accounting standard, allcompanies are required to examine the intent of holding each security and classify those securities as (a)securities held for trading purposes (hereafter, “trading securities”), (b) debt securities intended to beheld to maturity (hereafter, “held-to-maturity debt securities”), (c) equity securities issued by subsidiaries and affiliated companies, and (d) all other securities that are not classified in any of the above categories (hereafter, “available-for-sale securities”).
The Company and its subsidiaries do not have trading securities. Held-to-maturity debt securities arestated at amortized cost. Equity securities issued bysubsidiaries and affiliated companies which are notconsolidated or accounted for using the equity method
are stated at moving-average cost. Available-for-salesecurities are stated at moving-average cost.
If the market value of held-to-maturity debt securities, equity securities issued by unconsolidated subsidiaries and affiliated companies, and available-forsale securities declines significantly, such securities
are stated at fair market value and the difference between fair market value and the carrying amount isrecognized as loss in the period of the decline. If thefair market value of equity securities issued by unconsolidated subsidiaries and affiliated companies
not on the equity method is not readily available, suchsecurities should be written down to net asset value
with a corresponding charge in the income statementin the event net asset value declines significantly. In
these cases, such fair market value or the net asset
value will be the carrying amount of the securities atthe beginning of the next year.
As a result of adopting the new accounting standard for financial instruments, income before income
taxes increased by ¥2,208 million in the year ended
March 31, 2001. Also, based on the examination of
2002 Annual Report22the intent of holding each security upon applicationof the new accounting standard on April 1, 2000, trading securities as well as held-to-maturity debt securities and available-for-sale securities maturing within
one year from the balance sheet date are included incurrent assets, and other securities are included ininvestments and other assets. As a result, at March
31, 2001, securities in current assets decreased by¥19,056 million and investment securities increasedby the same amount compared with what would havebeen reported under the previous accounting policy.
Effective April 1, 2001, the Company and its consolidated subsidiaries applied a new accounting requirement for available-for-sale securities with available fair market values under the accounting standard for financial instruments which was adopted in
the previous year.
Available-for-sale securities with available fairmarket values are stated at fair market value. Unrealized gains and unrealized losses on these securities are reported, net of applicable income taxes, asa separate component of shareholders’ equity. Realized gains and losses on sale of such securities arecomputed using moving-average cost.
As a result of applying the new accounting requirement, as at March 31, 2002, net unrealized holding
gains on securities increased by ¥1,159 million($8,714 thousand), deferred income taxes decreasedby ¥708 million ($5,330 thousand), and minority interests in the balance sheets decreased by ¥118 million ($887 thousand).
See Note 3 as to detail information on securities.

d) Derivatives and Hedge Accounting
The new accounting standard for financial instruments, effective from the year ended March 31, 2001,
requires companies to state derivative financial instruments at fair value and to recognize changes in
the fair value as gains or losses unless derivative financial instruments are used for hedging purposes.

If derivative financial instruments are used ashedges and meet certain hedging criteria, the Company and its consolidated subsidiaries defer recognition of gains or losses resulting from changes in fairvalue of derivative financial instruments until the related losses or gains on the hedged items are recognized.
However, in cases where forward foreign exchange
contracts are used as hedges and meet certain hedging criteria, forward foreign exchange contracts andhedged items are accounted for in the following manner:
1. If a forward foreign exchange contract is executedto hedge an existing foreign currency receivableor payable,(a)the difference, if any, between the Japanese yenamount of the hedged foreign currency receivableor payable translated using the spot rate at the
inception date of the contract and the book valueof the receivable or payable is recognized in theincome statement in the period which includes the
inception date, and(b)the discount or premium on the contract (that is,the difference between the Japanese yen amountof the contract translated using the contracted forward rate and that translated using the spot rate
at the inception date of the contract) is recognizedover the term of the contract
2. If a forward foreign exchange contract is executedto hedge a future transaction denominated in aforeign currency, the future transaction will be recorded using the contracted forward rate, and nogains or losses on the forward foreign exchange
contract are recognized.
Also, if interest rate swap contracts are used ashedge and meet certain hedging criteria, the net
amount to be paid or received under the interest rate
swap contract is added to or deducted from the interest on the assets or liabilities for which the swap contract is executed.
2002 Annual Report

23e) Inventories
Inventories are stated at cost, which is mainly determined by the average method as to raw materials
and plant supplies and the specific identification
method as to finished products, semi-finished products and work in process.
f ) Property, Plant and Equipment andDepreciation
Depreciation is computed using the declining-balance method over estimated useful lives except forbuildings acquired after March 31, 1998, which are
depreciated based on the straight-line method.
g) Allowance for Doubtful Accounts
Effective from the year ended March 31, 2001, theCompany and its consolidated subsidiaries provide
the allowance for doubtful accounts in an amountsufficient to cover possible losses on collection by
estimating individually uncollectible amounts andapplying a percentage based on collection experienceto the remaining accounts. Previously, the Company
and its consolidated subsidiaries provided the allowance for doubtful accounts as to the individual uncollectible amounts in addition to the general allowancecalculated using the formula provided by the Corporate Tax Law.
h) Employees’ Severance and Retirement
Benefits
The Company and its consolidated subsidiaries
provide two types of post-employment benefit plans,
unfunded lump-sum payment plans and funded contributory pension plans, under which all eligible employees are entitled to benefits based on the level ofwages and salaries at the time of retirement or termination, length of service and certain other factors.
At March 31, 2000, the Company and its consolidated subsidiaries accrued liabilities for lump-sum
severance and retirement payments equal to 40% of

the amount required had all eligible employees voluntarily terminated their employment at the balance
sheet date. The Companies recognized pension expense when, and to the extent, payments were madeto the pension plans.
Effective April 1, 2000, the Company and its consolidated subsidiaries adopted the new accounting
standard, “Opinion on Setting Accounting Standard
for Employees’ Severance and Pension Benefits”, issued by the Business Accounting Deliberation Council on June 16, 1998.
Under the new accounting standard, the liabilities
and expenses for severance and retirement benefits
are determined based on the amounts actuarially calculated using certain assumptions.
The Company and its consolidated subsidiaries
provided allowance for employees’ severance and retirement benefits at March 31, 2001 based on the estimated amounts of projected benefit obligation andthe fair value of the plan assets at that date.
The excess of the projected benefit obligation over
the total of the fair value of pension assets as of April
1, 2000 and the liabilities for severance and retirement benefits recorded as of April 1, 2000 (the “nettransition obligation”) amounted to ¥38,222 million.
It has been recognized in expenses in equal amounts
over 15 years commencing with the year ended March
31, 2001. Prior service costs are recognized in expenses in equal amounts over the average of the estimated remaining service lives of the employees, andactuarial gains and losses are recognized in income
or expenses using the straight-line method over the
average of the estimated remaining service lives commencing with the following period.
As a result of the adoption of the new accounting
standard, in the year ended March 31, 2001, severance and retirement benefit expenses increased by¥1,729 million, operating income decreased by ¥1,399
million and income before income taxes decreasedby ¥1,594 million compared with what would have2002 Annual Report24been recorded under the previous accounting standard.

i) Income Taxes
The Company provided income taxes at theamounts currently payable for the year ended March
31, 1999. Effective April 1, 1999, the Company andits consolidated subsidiaries adopted the new accounting standard, which recognizes tax effects of
temporary differences between the carrying amountsof assets and liabilities for tax and financial reporting. Under the new accounting standard, the provision for income taxes is computed based on the pretax
income included in the consolidated statement ofoperations. The asset and liability approach is used
to recognize expected future tax consequences of temporary differences between the carrying amounts ofassets and liabilities for financial reporting purposes
and the amounts used for income tax purposes.
The cumulative effect of adopting the new accounting standard at April 1, 1999 was 10,631 million,
which was directly added to the retained earnings
brought forward from March 31, 1999. The effect for
the year ended March 31, 2000 was a decrease in net
income of ¥2,606 million.
j) Foreign Currency Translation
Short-term receivables and payables denominatedin foreign currencies are translated into Japanese yenat the year-end rates. Prior to April 1, 2000, longterm receivables and payable denominated in foreign
currencies were translated at historical rates.
Effective April 1, 2000, the Company and its consolidated subsidiaries adopted the revised accounting standard for foreign currency translation, “Opinion Concerning Revision of Accounting Standard for

Foreign Currency Translation”, issued by the Business Accounting Deliberation Council on October 22,
1999. Under the revised accounting standard, longterm receivables and payables denominated in foreign currencies are also translated into Japanese yenat the year-end rate.
There was no effect on the consolidated statementsof operations of adopting the revised accounting standard.
Financial statements of consolidated overseas subsidiaries are translated into Japanese yen at the yearend rate, except that shareholders’ equity accounts
are translated at historical rates and income statement items resulting from transactions with the Company at the rates used by the Company.
Due to the adoption of the revised accounting standard, the Company and its domestic subsidiaries report foreign currency translation adjustments in theshareholders’ equity and minority interests.

k) Amounts Per Share of Common Stock
The computation of net income (loss) per share isbased on the weighted average number of shares ofcommon stock outstanding during the year.
For the years ended March 31, 2002, 2001 and
2000, diluted net income per share were not shownsince operations resulted in net loss.
l) Statement of Cash Flows
In preparing the consolidated statements of cash
flow, cash on hand, readily-available deposits andshort-term highly liquid investments with maturities
that do not exceed three months at the time of purchase, are considered to be cash and cash equivalents.
See Note 15 as to reconciliation for cash and time
deposits.

2002 Annual Report25

3. Securities
A. The following table summarizes acquisition costs and book values of securities with fair value as ofMarch 31, 2002.
(a) Available-for-sale securities;
Millions of yen
Acquisition Book Difference
cost
value
Securities with fair value exceeding book value:
Equity securities¥7,385 ¥10,473 ¥3,088
Bonds
136
139
3
¥7,521 ¥10,612 ¥3,091
Other securities:
Equity securities¥3,761¥2,792¥(969)
Bonds
3,195
2,946
(249)
Others159
154(5)¥7,115¥5,892 ¥(1,223)(a) Available-for-sale securities;
Thousands of U.S. dollars
Acquisition Book Difference
cost
value
Securities with fair value exceeding book value:
Equity securities$55,526 $78,744 $23,218
Bonds
1,023
1,045
22
$56,549 $79,789 $23,240
Other securities:
Equity securities$28,278 $20,992 $(7,286)
Bonds
24,023 22,150 (1,873)
Others
1,195
1,159
(36)
$53,496 $44,301 $(9,195)

B. The following table summarizes book values of securities without fair value as of March 31, 2002.
(a) Available-for-sale securities;

Money management fundNon-listed foreign securities
Non-listed equity securities
Others
Total

Millions of yen
Book value
¥58
144
577
16
¥795

Thousands of U.S. dollars
Book value
Money management fund$436
Non-listed foreign securities
1,083
Non-listed equity securities
4,338
Others120
Total$5,977(b) Equity securities issued by subsidiaries and affiliated companies;
Millions of yen
Thousands of U.S. dollars
Book value
Book value
Non-listed subsidiary securities¥275
Non-listed subsidiary securities$2,068Non-listed affiliated securities
2,080
Non-listed affiliated securities
15,639Total¥2,355
Total$17,707

C. Maturities of available-for-sale securities with maturities at March 31, 2002, are as follows.

Bonds

Bonds

Within 1 year
¥434

Millions of yen
Over 1 year but
Over 5 years but
within 5 years
within 10 years¥1,478¥120

Over 10 years¥562

Within 1 year
$3,263Thousands of U.S. dollars
Over 1 year but
Over 5 years but
within 5 years
within 10 years$11,113$902

Over 10 years$4,226

D. Total sales amounts of available-for-sale securities sold in the year ended March 31, 2002 amounted to¥2,882 million ($21,669 thousand) and the net losses amounted to ¥30 million ($226 thousand).

2002 Annual Report26

4. Inventories
Inventories as of March 31, 2002 and 2001 were as follows.

Finished products ..............................................................................
Semi-finished products .....................................................................
Work-in-process ................................................................................
Materials and supplies ......................................................................

Millions of yen
2002
2001
¥3,353¥2,622
3,378
3,013
19,13823,8342,140
1,997

Total ..................................................................................................

¥28,009¥31,466

Thousands of
U.S. dollars
2002$25,21125,398143,895
16,090$210,594

5. Short-Term Borrowings
Short-term borrowings are bank loans and represented by notes. The weighted average interest rate was
1.1% as of March 31, 2002 and 2001.

6. Long-Term Debt
Long-term debt as of March 31, 2002 and 2001 consisted of the following.

1.48% to 4.45% loans from banks and insurance companies ..........
2.2% to 2.5% loans from agricultural cooperative organizations ....
Less: Current portion ........................................................................

Millions of yen
2002
2001
¥19,679¥22,944490
1,064(7,552)(4,761)

Total ..................................................................................................

¥12,617¥19,247

Thousands of
U.S. dollars
2002$147,963
3,684(56,782)$94,865

The annual maturities of long-term debts as of March 31, 2002 were as follows.

Year ended March 31
2003 .........................................................................................................................
2004 .........................................................................................................................
2005 .........................................................................................................................
2006 .........................................................................................................................
2007 .........................................................................................................................

Millions of yen

Thousands of
U.S. dollars¥7,552
4,969
1,922
5,666
60

$56,782
37,361
14,45142,601
452

2002 Annual Report27

7. Pledged Assets
The following assets were pledged as collateral at March 31, 2002.

Buildings and structures less related accumulated depreciation .................
Machinery and equipment less related accumulated depreciation ..............
Land ..............................................................................................................
Investment securities ....................................................................................
Others ...........................................................................................................
Total .............................................................................................................

Millions of yen
¥896
91
2,837
3,012
49
¥6,885

Thousands of
U.S. dollars$6,737684
21,331
22,647368$51,767

Obligations with collateral pledged at March 31, 2002 were as follows.
Millions of yen
Short-term borrowings .................................................................................
¥2,600Long-term debt .............................................................................................
3,807
Total .............................................................................................................
¥6,407

Thousands of
U.S. dollars$19,549
28,624$48,173

8. Employees’ Severance and Pension Benefits
As explained in Note 2., Effective April 1, 2000, the Company and its consolidated subsidiaries adopted the
new accounting standard for employees’ severance and retirement benefits, under which the liabilities andexpenses for severance and retirement benefits are determined based on the amounts obtained by actuarial
calculations.
The liabilities for severance and retirement benefits included in the liability section of the consolidatedbalance sheets as of March 31, 2002 consists of the following:
Projected benefit obligation .........................................................................
Unrecognized prior service costs .................................................................
Unrecognized actuarial differences .............................................................
Less fair value of pension assets ..................................................................
Less unrecognized net transition obligation ................................................
Liability for severance and retirement benefits ...........................................

Millions of yen¥83,81358(6,882)(33,869)(33,128)¥9,992Thousands of
U.S. dollars$630,168436(51,737)(254,654)(249,085)$75,128

2002 Annual Report28Included in the consolidated statements of operations for the year ended March 31, 2002 are severance andretirement benefit expenses comprised of the following:
Service costs – benefits earned during the year ..........................................
Interest cost on projected benefit obligation ...............................................
Expected return on plan assets .....................................................................
Amortization of prior service costs .............................................................
Amortization of net transition obligation ....................................................
Amortization of actuarial differences ..........................................................
Employee’s contribution ..............................................................................
Severance and retirement benefit expenses .................................................

Millions of yen¥3,593
2,652(1,217)
( 5)
2,547
433
(583)
¥7,420Thousands of
U.S. dollars$27,015
19,939(9,150)(38)
19,1503,256(4,383)$55,789

The discount rate and the rate of expected return on plan assets used by the Company and its consolidated
subsidiaries are 3.5% and 3.5% to 4.5%, respectively. The estimated amount of all retirement benefits to be
paid at the future retirement date is allocated equally to each service year using the estimated number of total
service years. Past service costs are recognized as an expense in equal amounts over 14 years, and actuarial
gains/losses are recognized in income statement using the straight-line method over 10 to 15 years.

9. Shareholder’s Equity
Under the Commercial Code of Japan (the “Code”), at least 50% of the issue price of new shares is required
to be designated as stated capital. The portion which is to be designated as stated capital is determined byresolution of the Board of Directors. Proceeds in excess of the amounts designated as stated capital are to becredited to additional paid-in capital.
Under the Code, amounts equal to at least 10% of cash dividends and other cash appropriations of retained
earnings must be set aside as a legal reserve until the total of the legal reserve and additional paid-in-capitalequals 25% of stated capital. The legal reserve may be used to reduce deficits by resolution of the shareholders
or may be transferred to stated capital by resolution of the Board of Directors. On condition that the total
amount of legal reserve and additional paid-in-capital remains being equal to or exceeding 25% of common
stock, they are available for distribution by the resolution of shareholders’ meeting. Legal reserve is included
in retained earnings in the accompanying consolidated financial statements.
The Code of Japan provides that the maximum amount that the Company can appropriate as dividends is
calculated based on the non-consolidated financial statements of the Company.

10. Contingent Liabilities
Contingent liabilities at March 31, 2002, were as follows.

Repurchase of note discounted and endorsed .........................................................
Guarantees of loans from banks to employees .......................................................

Millions of yen¥2,476
1,254

Thousands of
U.S. dollars$18,617
9,428

Total ........................................................................................................................

¥3,730$28,045

2002 Annual Report2911. Non-Capitalized Finance Leases:(1) Financial leases, which do not transfer ownership of properties to lessees, are not capitalized and areaccounted for in the same manner as operating leases. Certain related information are summarized asfollows:(i) Assumed amounts (inclusive of interest) of acquisition cost, accumulated depreciation and net bookvalue as of March 31, 2002 and 2001, are summarized as follows:
Millions of yen
2002
2001
Assumed acquisition cost:
Machinery and equipment ................................................
Other .................................................................................
Accumulated depreciation .....................................................

Thousands of
U.S. dollars
2002

¥174
1,736
(913)

¥252
1,824
(1,287)$1,30813,053(6,865)

¥997

¥789

$7,496(ii) Future minimum lease payments, inclusive of interest, at March 31, 2002 totalled ¥997 million($7,496 thousand), including ¥438 million ($3,293 thousand) due within one year.
(iii) Lease payments, which are equal to assumed depreciation charges for the years ended March 31,
2002 and 2001, were ¥438 million ($3,293 thousand) and ¥431 million, respectively.
(iv) Assumed depreciation charges are computed using the straight-line method over lease terms assuming no residual value.
(2) Future operating lease payments under non-cancelable operating leases as of March 31, 2002 totalled ¥1,460
million ($10,977 thousand), including ¥268 million ($2,015 thousand) due within one year.

12. Research and Development Expenses
Research and development expenses are charged to income as incurred. The amount charged to income forthe year ended March 31, 2002, 2001 and 2000 stood at ¥8,765 million ($65,902 thousand), ¥8,810 million,and ¥8,372 million respectively.

2002 Annual Report30

13. Segment Information
Industry segments:
The Company and its consolidated subsidiaries operate principally in five industrial sectors: Energy, Environment, Info and Communications, Industrial Systems, and Other Sectors. In the year ended March 31, 2000,
the Company and its consolidated subsidiaries modified its classification of products (previously classified as
rotary machine, transmission and distribution equipment, control equipment, construction and wiring andothers) among the sectors. The change was brought about by the Company’s restructuring.
In the year ended March 31, 2002, a part of businesses, which was included in Energy in the previous year
is reclassified to Industrial Systems, due to the change of the Company’s organization.
As a result, net sales of Energy decreased by ¥7,997 million ($60,238 thousand), net sales of Industrial
Systems increased by same amount, and, operating income of Energy increased by ¥1,825 million ($13,722
thousand), operating loss of Industrial Systems decreased by same amount.
Information by industry segments for the years ended March 31, 2002, 2001 and 2000 are as follows:Year ended
March 31, 2002
Net sales:
Outsidecustomers
Inter-segment
Total
Operating expenses
Operating income(loss)
Identifiable assets
Depreciation andamortization
Capital expenditures

Year ended
March 31, 2001
Net sales:
Outsidecustomers
Inter-segment
Total
Operating expenses
Operating income(loss)
Identifiable assets
Depreciation andamortization
Capital expenditures

EnergyInfo andEnvironment Communications

Millions of Yen
Industrial
Systems
Other

Total

Eliminations or
Corporate Consolidated¥ 71,587¥ 47,397¥ 13,595¥ 32,634¥ 34,862¥ 200,075¥ ––¥ 200,075

4,712
76,29974,8992,320
49,717
41,613

2,908
16,503
19,776

3,976
36,61038,68735,47470,33668,43349,390249,465
243,408(49,390)(49,390)(46,867)––
200,075
196,541¥ 1,400¥ 8,104¥ (3,273)¥ (2,077)¥ 1,903¥ 6,057¥ (2,523)¥ 3,534¥ 54,342¥ 23,772¥ 18,363¥ 28,472¥ 34,649¥ 159,598¥ 45,623¥ 205,221

1,221

204

711

694

824

3,654

1,207

4,861

1,251

402

672

2,196

494

5,015

1,302

6,317

EnergyEnergyMillions of yen
Info and IndustriaIndustriallEEnvironment
nvironment Communications
Systems SystemsOther Other Total

E l i mEliminations
i n a t i o n s o r orate
ConConsolidated
solidated
Total corporCorporate¥ 70,597¥ 51,852¥ 14,636¥ 25,176¥ 34,722¥ 196,983¥ ––¥ 196,983

5,380
75,97776,043

1,549
53,401
44,161

2,843
17,47919,875

2,502
27,67829,261

36,34571,067
69,96948,619245,602239,309(48,619)(48,619)(46,235)––
196,983
193,074¥ (66)¥ 9,240¥ (2,396)¥ (1,583)¥ 1,098¥ 6,293¥ (2,384)¥ 3,909¥ 54,207¥ 23,070¥ 21,335¥ 22,222¥ 43,189¥ 164,023¥ 48,082¥ 212,105

1,376

190

839

743

645

3,793

1,309

5,102

1,248

144

624

766

980

3,762

1,219

4,981

2002 Annual Report31Year ended
March 31, 2000
Net sales:
Outsidecustomers
Inter-segment
Tot a lOperating expenses
Operating income(loss)
Identifiable assets
Depreciation andamortization
Capital expenditures

Year ended
March 31, 2002
Net sales:
Outsidecustomers
Inter-segment
Total
Operating expenses
Operating income(loss)
Identifiable assets
Depreciation andamortization
Capital expenditures

EnergyInfo andEnvironment Communications

Millions of yen
Industrial
Systems
Other

Total

Eliminations or
Corporate Consolidated¥ 81,184¥ 55,577¥ 11,635¥ 21,925¥ 34,055¥ 204,376¥ ––¥ 204,376

5,322
86,50685,996

2,178
57,75547,336

2,538
14,173
18,2002,481
24,40628,09436,95771,012
68,71849,476
253,852
248,344(49,476)(49,476)(45,729)––
204,376
202,615¥ 510¥ 10,419¥ (4,027)¥ (3,688)¥ 2,294¥ 5,508¥ (3,747)¥ 1,761¥ 57,625¥ 22,305¥ 18,103¥ 18,152¥ 44,396¥ 160,581¥ 60,807¥ 221,388

1,466

179

1,372

801

605

4,423

1,862

6,285

381

392

987

309

1,328

3,397

695

4,092

Thousands of U.S. dollars
Industrial
Systems
Other

Total

EnergyInfo andEnvironment Communications

Eliminations or
Corporate Consolidated$538,248$356,368$102,218$245,368$262,121$1,504,323$–$1,504,323

35,429573,677
563,151

17,444
373,812
312,880

21,865
124,083
148,692

29,895275,263
290,880

266,721528,842
514,533

371,354
1,875,677
1,830,136(371,354)(371,354)(352,377)–
1,504,323
1,477,759$10,526$60,932$(24,609)$(15,617)$14,309$45,541$18,970$26,571$408,586$178,737$138,068$214,075$260,511$1,199,977$343,038$1,543,015

9,180

1,534

5,346

5,218

6,196

27,474

9,075

36,549

9,406

3,023

5,053

16,511

3,714

37,707

9,789

47,496

Geographic information and overseas sales are not disclosed due to its insignificance.

2002 Annual Report3214. Income Taxes
Japanese income taxes, which consist of corporate, enterprise and inhabitants taxes, would normally resultin an aggregate statutory tax rate of approximately 41%, 41% and 42% for the years ended March 31, 2002, 2001
and 2000, respectively. Significant components of deferred tax assets and liabilities of the Company and its
consolidated subsidiaries as of March 31, 2002 and 2001 are as follows.
Millions of yen
2002
2001
Deferred tax assets:
Net operating loss carry forwards .......................................
Allowance for retirement benefits ......................................
Unrecognized intercompany profit .....................................
Bonuses ...............................................................................
Other ....................................................................................
Gross deferred tax assets .................................................
Less: Valuation allowance ..................................................

Deferred tax liabilities:
Deferred gain on sales of property for tax purpose ............
Other ....................................................................................
Gross deferred tax liabilities ..........................................
Net deferred tax assets ...................................................

Thousands of
U.S. dollars
2002¥7,933
3,581
3,357
1,175
1,551
17,597¥6,522
3,020
3,334
1,174
1,306
15,356$59,648
26,92525,242
8,835
11,663132,313(5,524)
12,073(4,149)
11,207(41,530)
90,783

2,071
48
2,119
9,954

1,425
54
1,479
9,728

15,571369
15,94074,843

The following table summarizes the significant differences between the statutory tax rate and the Company’s
effective tax rate for financial statement purposes for the year ended March 31, 2001:

Statutory tax rate
Permanent difference (Social expenses, etc.)
Per capita inhabitant tax
Net increase in valuation allowance
Other - net
Effective tax rate

2001
40.87%
34.62
23.97
433.80(0.17)
533.09%Difference between the statutory tax rate and the Company’s effective tax rate for the year ended March 31,
2002 and 2000 is not shown due to loss before income taxes.

2002 Annual Report3315. Cash and Cash Equivalents
Reconciliations of cash and time deposits shown in the consolidated balance sheets and cash and cash
equivalents shown in the consolidated statements of cash flows as of March 31, 2002 and 2001 are as follows:

Cash and time deposits .....................................................................
Short-term securities ........................................................................
Bonds with maturities of exceeding three months ..........................
Cash and cash equivalents ................................................................

Millions of yen
2002
2001
¥15,033¥16,174
1,086
3,668
(538)
(2,692)¥15,581¥17,150

Thousands of
U.S. dollars
2002$113,030
8,165(4,045)$117,150

16. Effect of Bank Holiday on March 31, 2002
As financial institutions in Japan were closed on March 31, 2002, amounts that would normally be settled
on March 31, 2002 were collected or paid on the following business day, April 1, 2002.
The effect of the settlements on April 1 instead of March 31 included the following:Notes receivable, trade
Notes payable, trade
Notes payable, other930 million
688 million
375 million($6,992 thousand)($5,173 thousand)($2,820 thousand)

17. Casualty Loss
The Company and 4 domestic consolidated subsidiaries were damaged by a flood in Nagoya area in September 2000.

18. Subsequent Event
On March 22, the Board of Directors of the Company resolved to separates its substation business, which iscomprised of such operations as transformers, circuit breakers and switching devices, in order to assign it toJapan AE Power Systems Corporation, a joint venture company established on July 1, 2001 by Hitachi, Ltd.,
Fuji Electric Co., Ltd. and the Company. These three companies have agreed to strengthen business structure
and management practices of their substation businesses by separating and transferring them to Japan AE
Power Systems Corporation in order to survive in the increasingly competitive substation market. Simplified
merger/demerger rules in the regulation for division of corporation prescribed in the Japanese Commercial
Code will be applied to the transaction. Its outline is as follows.
(1) Date of division of corporation
October 1, 2002
(2) Method of division of corporation
Simplified division of corporation(3) Allocation of shares to be issued by Japan AE Power Systems Corporation
250,000 shares to Hitachi, Ltd.
150,000 shares to Fuji Electric Co., Ltd.
100,000 shares to the Company(4) Rights and obligations transferred to Japan AE Power Systems Corporation
Hitachi, Ltd., Fuji Electric Co., Ltd. and the Company transfer all of assets and liabilities and contractual rights and obligations belonged to substation businesses of respective companies to Japan AE Power
Systems Corporation.
2002 Annual Report34Report of Independent Public
Accountants
To the Shareholders and the Board of Director of Meidensha Corporation:
We have audited the accompanying consolidated balance sheets of MEIDENSHA CORPORATION (a Japanese corporation) and subsidiaries as of March 31, 2002 and 2001, and the related consolidated statements of operations, shareholders’equity and cash flows for each of the three years in the period ended March 31, 2002, expressed in Japanese yen. Our audits
were made in accordance with generally accepted auditing standards in Japan and, accordingly, included such tests of theaccounting records and such other auditing procedures as we considered necessary in the circumstances.
In our opinion, the consolidated financial statements referred to above present fairly the consolidated financial position of
MEIDENSHA CORPORATION and subsidiaries as of March 31, 2002 and 2001, and the consolidated results of their operations and their cash flows for each of the three years in the period ended March 31, 2002, in conformity with accounting
principles generally accepted in Japan (Note 1) applied on a consistent basis, during the periods, except as noted in thefollowing paragraph.
As explained in Note 2, MEIDENSHA CORPORATION and its consolidated subsidiaries prospectively adopted new Japanese accounting standards for consolidation and equity method accounting, and income taxes in the year ended March 31,
2000, and new Japanese accounting standards for employees’ severance and pension benefits, financial instruments, and therevised accounting standards for foreign currency translation in the year ended March 31, 2001. In addition, a new accounting
requirement for available-for-sale securities with available fair market values was applied effective April 1, 2001 under theaccounting standard for financial instruments, which was adopted in the previous year. Also, MEIDENSHA CORPORATION
changed the method of segmentation by industry segment, made in the year ended 31, 2000, as referred to in Note 13, withwhich we concur.
Also, in our opinion, the U.S. dollar amounts in the accompanying consolidated financial statements have been translated
from Japanese yen on the basis set forth in Note 1.
As explained in Note 18, the MEIDENSHA CORPORATION decided to separate and assign its substation business toJapan AE Power Systems Corporation on October 1, 2002.
Tokyo, Japan
June 26, 2002

2002 Annual Report35Overseas Offices and Affiliates(As of July, 2002)

Hong Kong

Indonesia

Malaysia※● MEIDENSHACORPORATION※● P.T. MEIDENENGINEERINGINDONESIA※● MEIDEN ELECTRIC
ENGINEERING SDN. BHD.

Unit 01-02A, 16/F Tower 1,
Ever Gain Plaza,88 Container Port Road,
Kwai Chung, N.T., Hong Kong
Phone: 2503-2468
Facsimile: 2887-8046※● MEIDEN PACIFIC (CHINA)LTD.
Unit 01-02A, 16/F Tower 1,
Ever Gain Plaza,88 Container Port Road,
Kwai Chung, N.T., Hong Kong
Phone: 2503-2468
Facsimile: 2887-8046

19th Floor, Summitmas I,
Jl. Jenderal Sudirman Kaveling 61-62
P.O.BOX 6920/KBY/Summitmas I
Jakarta Selatan 12190, Indonesia
Phone: 21-520-0612/1239
Facsimile: 21-520-0240

Korea※● MEIDENSHACORPORATIONRoyal Building. No.410,
5 Dangju-Dong,
Chongro-ku, Seoul, Korea
Phone: 2-736-0232~3
Facsimile: 2-736-0234

G. 03, Ground Floor, Wisma Academy,
4A, Jalan 19/1
46300 Petaling Jaya,
Selangor Darul Ehsan, Malaysia
Phone: 3-79554646
Facsimile: 3-79546466● MEIDEN METALENGINEERING SDN. BHD.
Lot 6, Peringkat 3,
Kawasan Perindustrian Alor Gajah,
78000 Melaka, Malaysia
Phone: 6-5568790~2
Facsimile: 6-5568795

2002 Annual Report36For inquiries, please contact the office/company marked ※.
● Overseas office / ● Affiliate

Singapore

ThailandThe United Kingdom※● MEIDEN SINGAPORE PTE.
LTD.

※● THAI MEIDENSHA CO.,LTD.

※● MEIDEN EUROPE LTD.

5, Jalan Pesawat,
Jurong Industrial Estate,
Singapore 619363
Phone: 6268-8222
Facsimile: 6264-4292

11th Floor, TST Tower Building,
21 Viphavadi-Rangsit Road,
Soi Chuei Phung, Jatujak,
Bangkok 10900, Thailand
Phone: 2-273-8954~61
Facsimile: 2-273-8966
Cable Address: THAI MEIDENBANGKOK● MEIDEN ELECTRIC(THAILAND) LTD.
898 Moo 2,
Bangpa-in lndustrial Estate,
Udomsorayuth Rd., Klongjig,
Bangpa-in, Ayudhaya 13160,
ThailandPhone: 35-258258~262
Facsimile: 35-221388

New Wave Complex,
Bradbourne Drive, Tilbrook,
Milton Keynes MK7 8BN,
England, U.K.
Phone: 1908-276000
Facsimile: 1908-276010

The United States※● MEIDENSHACORPORATIONThe American Center Building,Suite 1110
27777 Franklin Road,
Southfield, Michigan 48034, U.S.A.
Phone: 248-353-2540
Facsimile: 248-353-3150

2002 Annual Report37Consolidated Subsidiary Companies
MEIDEN ENGINEERING CO., LTD.

MEIDEN SOFTWARE CORPORATION

Meiden Sheet Metal Products Corporation

Capital ¥2,360 million
Engineering service and other service affairs
7-9, Osaki 3-chome, Shinagawa-ku,
Tokyo 141-8607 Japan
Phone: 3-3490-7201 Fax: 3-3490-5550

Capital ¥90 million
Engineering and programming of software
809, Oka-Isshikitorimachi, Numazu-shi, Shizuoka
410-0012 Japan
Phone: 559-23-4966 Fax: 559-23-1191

Capital ¥90 million
Manufacture and sales of sheet metal
515, Kaminakamizo, Higashimakado-aza,
Numazu-shi, Shizuoka 410-0865 Japan
Phone: 559-29-5555 Fax: 559-29-5566

SHINKO SEISAKUSHO CO., LTD.

MEIDEN FOUNDRY INDUSTRIAL Co., Ltd.

MEIDEN HOIST SYSTEM COMPANY, LTD.

Capital ¥50 million

Capital ¥90 million
Manufacture and sales of hoist
1-17, Osaki 2-chome, Shinagawa-ku, Tokyo
141-0032 Japan
Phone: 3-3492-1201 Fax: 3-3492-1943

Capital ¥800 million
Manufacture, sales, and maintenanceservicing of communication equipment,
peripherals and terminals
Kokuryu Shibakoen Building,
6-15, Shibakoen 2-chome,
Minato-ku, Tokyo 105-0011 Japan
Phone: 3-3436-1211 Fax: 3-3436-1881

MEIDEN SHOJI Co., Ltd.
Capital ¥300 million
Sales of electric products and components
Mitomi New Building, 20-18,
Ebisu 1-chome, Shibuya-ku,
Tokyo 150-0013 Japan
Phone: 3-5449-3700 Fax: 3-5449-3701

KOFU MEIDENSHA CORPORATION
Capital ¥200 million
Manufacture and sales of electric motors,
mainly15-11 Joto 3-chome, Kofu-shi,
Yamanashi 400-0861 Japan
Phone: 55-233-5161 Fax: 55-233-5171

Meiden Plant Engineering &Construction Co., Ltd.
Capital ¥150 million
Constructing service
Meiko Building, 5-5, Osaki 5-chome,
Shinagawa-ku, Tokyo 141-8616 Japan
Phone: 3-5487-6426 Fax: 3-5487-6487

MEIDEN CHEMICAL CO., LTD.

Casting
4, Nyogetsu, Heisaka-cho, Nishio-shi,
Aichi 444-0305 Japan
Phone: 563-59-6181 Fax: 563-59-4132

MEIDEN SYSTEM ENGINEERING Co., Ltd.
Capital ¥50 million
System engineering of plant
Meiko Building, 5-5, Osaki 5-chome,
Shingawa-ku, Tokyo 141-8616 Japan
Phone: 3-5487-6500 Fax: 3-5487-6516

Meiden Kankyo Service Co., Ltd.
Capital ¥30 million
Maintenance and control service of water
treatment equipment
Meiko Building, 5-5, Osaki 5-chome,
Shinagawa-ku, Tokyo 141-8616 Japan
Phone: 3-3490-0630 Fax: 3-3490-0623

HOKUTO DENKO CORPORATION
Capital ¥25 million
Manufacture and sales of electric sensors
22-13, Himonya 4-chome, Meguro-ku,
Tokyo 152-0003 Japan
Phone: 3-3716-3235 Fax: 3-3793-8787

MEIDEN SYSCON Co., Ltd.
Capital ¥20 million
Manufacture and sales of switchgear and relays
726-1, Osuwa, Numazu-shi,
Shizuoka 410-0873 Japan
Phone: 559-24-4630 Fax: 559-22-4013

Meiden Kiden Kogyo Co., Ltd.

Capital ¥95 million
Insulating varnish and molded instrumenttransformer
1-17, Osaki 2-chome, Shinagawa-ku,
Tokyo 141-0032 Japan
Phone: 3-3492-5251 Fax: 3-3492-5280

Capital ¥20 million
Machining and repairing service
127, Nishishinmachi,
Oota-shi, Gunma 373-0847 Japan
Phone: 276-20-6371 Fax: 276-32-7999

Meiden Kohsan Co., Ltd.

MEIDEN MEDIAFRONTCORPORATION

Capital ¥130 million
Sales of products and materials and agent
service of insurance
Meiko Building, 5-5, Osaki 5-chome,
Shingawa-ku, Tokyo 141-8616 Japan
Phone: 3-3490-3737 Fax: 3-3490-3906※ MEIDEN SINGAPORE PTE. LTD.
Capital S$10 million
Manufacture and sales of transformers,
switchgears and circuit-breakers and related
engineering and constructing service※ THAI MEIDENSHA CO., LTD.
Capital TB10 million
Engineering and constructing service※ MEIDEN ELECTRIC (THAILAND) LTD.
Capital TB70 million
Manufacture and sales of switchgears※ P.T.MEIDEN ENGINEERING INDONESIA
Capital US$ 320 thousand
Engineering and constructing service※ MEIDEN EUROPE LTD.
Capital £750 thousand
Sales of electric products and components※ MEIDEN PACIFIC (CHINA) LTD.
Capital HK$10 million
Sales of electric products and components
and constructing service※ MEIDEN METAL ENGINEERING
SDN. BHD.
Capital RM 7 million
Manufacture and sales of tank andradiators for power transformer※: Please see pages 36 – 37 to find contact
information for overseas offices and affiliates.

Capital ¥40 million
Printing and copy service
Maruki Building, 13-7, Nishigotanda 1-chome,
Shinagawa-ku, Tokyo 141-0031 Japan
Phone: 3-3490-4767 Fax: 3-3779-3083

2002 Annual Report

38Corporate
Data

Board of Directors

Corporate NameMEIDENSHA

ChairmanPresident

Shigeo Seko

Keiji Kataoka

Executive
Vice
President

Executive
Vice
President

Koji Yano

Toru Nakamura

SeniorManaging
Director

SeniorManaging
Director

Kensuke Ikuji

Hiroyasu Yagi

(As of June 26, 2002)

CORPORATION(Kabushiki Kaisha Meidensha)

Head OfficeRiverside Building, 36-2,
Nihonbashi Hakozakicho,
Chuo-ku, Tokyo 103-8515
Japan

Founded
1897

Common Stock
Authorized576,000,000 shares
Issued202,025,158 shares¥17,070 million($128,346 thousand)Shareholders

SeniorManaging
Director
Masaoki Hino

17,330Transfer Agent
The Chuo Mitsui Trust andBanking Co., Ltd.

Managing Directors

Jiro Iwashita Toru Niwa
Kennosuke Goto
Tatsujiro Matsumoto

Directors

Tetsuro Kawakami
Kosuke Sato
Kenji Sasaki
Masayuki Terashima
Akinori Nomura

Kenzo Nakamura
Tadashi Sanada
Naoto Miyajima
Masami Asayama

Senior Corporate Auditors

Masaaki Obana
Masahiro Fuke

Takaharu Tokunishi

Corporate Auditors

Haruhisa Kawabe

Yojiro Yamashita

2002 Annual Report39