2001 Annual Report1Profile
As a heavy electric machinery manufacturer, Meidensha Corporation has steadily
developed excellent engineering resources, advancing toward total system engineeringin 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 ofheavy electric technology with electronics technology. This concept is further joinedwith 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 useful and effective in thecreation of a well-to-do society and a comfortable environment.

Contents
Financial Highlights ......................................
Message from Management...........................
Review of Operations ....................................
R&D Review .................................................
Financial Section ...........................................
Overseas Offices and Affiliates .....................
Consolidated Subsidiary Companies .............
Corporate Data ...............................................
Board of Directors .........................................

3
4
6
12
13
36
38
39
39
2001 Annual Report2Financial Highlights
Years ended March 31
Thousands of
U.S. dollars

Millions of yen
2001

2000

1999

2001

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

¥196,983¥204,376¥218,354$1,588,573

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

(2,645)(5,761)(16,912)(21,331)

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

(13.09)(28.52)(83.71)(0.11)Cash Dividends Paid .........................................

—

—

—

—

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

212,105

221,388

235,9111,710,524

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

8,192

8,542

9,493

—

The consolidated figures in this Annual Report are expressed in yen and solely for the convenience of the reader, translated
into United States dollars at the rate of ¥124= U.S.$1, the approximate exchange rate prevailing on the Tokyo Foreign Exchange
Market as of March 31, 2001. See No.1 of Notes to Consolidated Financial Statements.

Net Sales (¥ millions)

Net Loss (¥ millions)

Total Assets (¥ millions)
300,000

250,000

222,772

253,671

218,354
204,376

250,000

196,983

235,911200,000

221,388

212,105

200,000

150,000
150,000

100,000

100,000

50,00050,0000(2,645
0

98

99

00

01

0

-5,000

98

99

00

01

(4,767)(5,761)-10,000-15,000(16,912)-20,000
98

99

00

01

2001 Annual Report3Message from Management
The Japanese economy during fiscal 2000 was driven by business fixed investment fueled by steady information technology (IT)-related investment. However, public investment and private consumption remained weak.
In the second half of fiscal 2000, exports became sluggish reflecting a sharp slowdown in the U.S. economy.
Overall, the economy remained continuously stagnant throughout the year. At the end of the fiscal year in March,
the Japanese government announced that there was a risk that Japan would slip into a deflationary spiral. This
caused concern about declining business fixed investment due to a fall in demand. The high future uncertainties
and downward risks still surround the corporate sector.
Under these economic conditions, Meidensha Corporation conducted vigorous marketing efforts to boost sales
across the Company. In spite of these efforts, however, sales for fiscal 2000 were 196,983 million yen (consolidated basis), or 3.6% lower than the previous fiscal year.
As a result of the corporation-wide efforts in cutting expenses, reducing costs, and raising productivity, ordinary profits were 2,942 million yen (consolidated basis), which is up 313.8% from the previous fiscal year. However, as a result of such losses as the torrential downpour damage that hit the Tokai Region in September last year,
we regret to report our losses for the period amounted to 2,645 million yen (consolidated basis).
With regard to dividends for shareholders, the management regrets that the Company was unable to post a
dividend.
Meidensha Corporation is now implementing the New Construction 21 (NC21) medium-term management
plan that commenced in April last year. The NC21 plan aims to realize “Renovation of the Company” by company-wide efforts. We are committed to working harder to achieve better management and relentless improvement so that we can make a return to profitability and dividend payment.
As part of this commitment, we have actively promoted strategic alliances with other corporations to meet thechanging competitive environment in the industry in order to survive in the global mega-competition. In July oflast year, Meidensha jointly formed “Japan Motor & Generator Co. Ltd.” as a joint venture in the fields of highvoltage motors and small to medium-capacity generators with Hitachi Ltd. (NYSE: HIT) and Fuji Electric Co.
Ltd. (TSE: 6504). This is intended to accelerate development and increase price competitiveness, as well as tobuild excellent presence in overseas markets. We have also formed a strategic alliance in the transmission anddistribution fields with these same two companies in order to strengthen product competitiveness and speed up thedevelopment of new products by combining mutual competitive technologies. In this way, we are determined tokeep a leading position in the heavy electric industry.

2001 Annual Report4Apart from forming these alliances, Meidensha Corporation is also taking a variety of measures to increase
its profit-earning capacity by consolidating and eliminating factories and product lines, and by restructuring
production for greater efficiency. We are also moving into new areas of business to improve profitability by
expanding our information and telecommunications operations, developing medical and social service businesses, and developing various other businesses that utilize IT. On the financial management front, we will
reduce the size of interest-bearing liabilities and implement other reforms to improve the financial condition.
By strengthening group strategy, raising management efficiency, and expanding the range of our businessactivities, we will work toward growth for the MEIDEN Group as a whole.
We ask every shareholder as well as our customers and business partners to continue to share your guidance
and advice.

Keiji Kojima, Chairman

Shigeo Seko, President

2001 Annual Report5Review of Operations

Energy Sector is our core market segment and the source of major profitability. In this
sector, we are promoting enhancement of the digital control and networking features of power
generation equipment. We are also developing the business of distributed generation andnew energy sources. We also promote solutions for power supply in various facilities.
The demand for high-quality power supply with high reliability is growing more andmore with the progress of information technology (IT). Meidensha Corporation is making
use of its accumulated knowledge and expertise to provide the optimum power supply equipment to meet the needs of customers who have particular requirements for energy saving,reliability, quality, and maintainability.
One such customer, for example, is the Earth Simulator Facility of the Japan Marine
Science and Technology Center. We have delivered an extra-high-voltage power substation
to this facility to provide a highly reliable power supply incorporating redundancy and noise
control measures and constructed to be suitable for outdoor application.
As an example of the application of digital control and networking in power plants andsubstations, we delivered in 2000 a system with fully integrated control and protection devices and digital control of all substations for a hydro-power plant.
Also in this field, we have record growth in the delivery of distributed generation equipment such as generators for gas-turbine cogeneration systems as well as the delivery oftraction substations for railways in Japan and the Southeast Asia.
Last year, we established a Micro Gas Turbine Business Development Office. We are
actively marketing in Japan and the sales of micro turbine systems are showing good results.
Fuels for micro turbines include kerosene and natural gas. Further, we have proved by fieldtesting that it is also possible to use methane gas obtained from fermented sewerage sludge
as fuel. This resource-recovery application will contribute in the future to global environmental protection.
We have also developed a new type of high-voltage metal-clad switchgear incorporating
vacuum circuit-breakers to enable energy saving and space saving. Sales of this equipment
have begun, and it is expected that it will become a principal product in the future. We
intend to develop the energy sector business with the introduction of new energy-compliant
products such as wind power, photovoltaic power, biomass power, and other products that
promote energy saving.

Emergency power generating facility

Extra-high voltage power
substation facility

Micro turbine system

Cogeneration system

Hydraulic power synthetic
digital control system

2001 Annual Report6Review of Operations

Ozone generating Unit for
deodorization

Screen of chaos technology-based
demand prediction system

Meidensha Corporation is devoting R&D resources for the development of waterquality control technology to realize a better water environment. Last year, we delivered products that use applied chaos technology-based demand prediction for the operation of distribution reservoirs and that incorporate pipe network analysis to monitor and control water-distribution facilities, while applying fuzzy logic for the controlof rainwater pumps. As our new offerings, we have also begun deliveries of the microwave turbidimeter and total nitrogen/total phosphorus analyzer.
The Company’s efforts are being directed toward eco-solutions to build a sustainable society, as can be seen from our work in sophisticated processing at sewage andwater-treatment plant, and our systematization of dry distillation-type thermal-decomposition treatment systems that comply with restrictions on the release of dioxins, etc.
We are working to establish methods for analyzing endocrine disruptors (also known
as “environmental hormones”), which have a bad effect on the human body, and we
Microwave turbidimeterare conducting research into the applications of photocatalysis. As such, we are meeting the demands ofthe times for environmental issues.
Meidensha Corporation has further established Solutions Provider Business Development Office to address the trend ofprivatization in the field of maintenancemanagement and the operation of sewage
and water supply facilities.

Dry-distillation typethermal decomposition
disposal system

2001 Annual Report7Review of Operations

Meidensha Corporation has rich experiences in the fields of energy and the environment.
We are promoting the effective use of IT for facility management and maintenance in theenergy and environment fields. We are, therefore, constructing the necessary IT platforms
and developing new fields of IT-related business.
We have, for example, developed an intranet Web-SCADA system for use in electric
power applications.
Our new IT-related business developments include the MAIDO-Web Machine Auction
System, a comprehensive information system for wholesale markets that has the potential
for electronic commerce (EC) application. We have already made these communications
and networking products and started shipment. Another example is the image streaming
system that we have developed for live streaming of sound and images from portable video
dispatch system (PVDS) mobile terminals to clients.
We have upgraded the popular µPORT series of industrial computers and the µPIBOC
series of industrial controllers, and expanded
the product line-up. We have also developed new switching hubs that are built into
industrial devices.
We have expanded the line-up of stabilized power supply units for excimer lasersthat are used as exposure tools in semiconductor production equipment, and of
vacuum capacitor products for use withhigh-frequency RF matchers. These products have achieved goodsales records.

Industrial computer, µPORT-M2

PC/AT compatible controller,µPIBOC-III

Embedded controller, µPIBOC-C1

Image distribution system,
REALFIELDMEIDO-Web machine auction system

Switching hub,
MEISWAY SW1000

2001 Annual Report8Review of Operations

PMD400 Series

PM servo drive, GORIKI Series

Ultra-high-speed FREC
dynamometer

Ultra-small-diameter dynamometer fortransaxle test

Automatic material handling system

This year has marked the outstanding results in the industrial systems sector, especiallyfor motor power applications, logistics, and dynamometers.
In the field of motor power applications, we are seeking expanded uses for permanent
magnet exciter-type synchronous motors (PM motors) in all types of applications, and have
expanded related work into a series of servo drives. The GORIKI Series of Meiden PM
servo drives features high torque, high response, and large capacity comparable to that ofhydraulic drive units. Last year, we developed a 189kW PM motor which ranks among thelargest such motors in the world.
In the field of logistics systems, we provide AGVs (Automated Guided Vehicles),palletizers, and other such distribution systems that offer highly space-efficient vertical stacking as well as ease and flexibility of layout design.
In the area of electric-powered vehicles, a change to AC power is underway in the drive
system for forklifts. Meidensha Corporation is developing AC motors and controllers foruse in such systems, and we have already begun deliveries of these products.
Our work in dynamometers has produced the world’s ultra-small-diameter dynamometer (220 kW, 240 mm diameter) for transaxle test, and the world’s fastest high-speed dynamometer (150 kW, 20,000 min-1) for use in electric vehicles. We have developed and alreadydelivered these products.
Another product in this area is the dynamic load simulator which we developed throughwork on virtual test systems. We are currently carrying out the development of engine andtransmission simulators as well. Our development of ultra-low-inertia dynamometers has
provided a key to the creation of these simulators.

Bottle case palletizer

2001 Annual Report9Review of Operations

With the introduction of “Long-term Care Insurance” in 2000 and the aging society inJapan, Meidensha Corporation has entered a new business in the health care and welfare sector
which is expected to become a strategic business in the future.
We are expanding this business with:• The Home Nursing Management System (software packages for home helper services,
short-stay service, care management, etc.)• Assistive Equipment for the Aged (transfer aid, training aid, rehabilitation aid, etc.)• Medical Information Management System (management system for graphic data, medical claims, etc.)• Assistive Equipment for Medical Service (aid for medical services)• Information Service for Health Care and Welfare (Web-based researches and publications)• Business Consulting for Care Houses
We intend to promote the expansion of our health care and welfare business.

Motor-powered scooter,
Travel Partner

Rehabilitation game, Miniyard

Aid information control system, Herusukekun Series

2001 Annual Report10Review of Operations

KL Monorail

Gas turbine generator for
GE LM6000PC

Fiscal 2000 saw a sharper slowdown the U.S. and E.U. economies. This significantly
reduced export growth to the Southeast Asian countries, which are Meidensha Corporation’s
major markets. Amid concerns over the future outlook, delays in business recovery, andsluggish stock prices, a deceleration of business fixed investment in Southeast Asia became
evident. Despite these circumstances, we increased our exports, with orders totaling 12,443
million yen, a change of 46.4% up from the previous year, and sales reaching 9,118 million
yen (unconsolidated basis), down 32.3% from the previous year.
The major products ordered in fiscal 2000 were as follows:
In the power distribution field, CLP Power Hong Kong Ltd. in Hong Kong placed orders
for 680 units 1500 kVA transformers.
In the field of electric railroad substations, we received orders for traction substations
from the Light Rail Transit Authority in the Philippines for Metro Manila Line 2, and for a
traction substation for KL Monorail in Malaysia. We also received an order for reinforcement of traction substations from the Ministry of Communications in Indonesia for the
JABOTABEK Railway Project.
In the power generation field, we received orders for three 48 MVA gas turbine generators from the Department of Electrical Services, Ministry of Development, in Brunei.
Also in the power generation field, we received orders from GE Aero Energy Products
for 10 units 56 MVA generators to be used with the GE LM6000PC gas turbine.
The major products manufactured and shipped during fiscal 2000 were as follows:
In the field of dynamometers for automobiles, we delivered three new-generation autotransmission (A/T) line testers to Kia Motors Corporation in South Korea.
In the field of electric railroad substations, we delivered a traction substation to the Land
Transport Authority of Singapore for the Changi Extension Line Project.

22kV gas-insulated switchgear for traction
substation

Automatic transmission tester for end of production line

2001 Annual Report11R&D Review
Eddy Current Loss Reduction Technology for Permanent Magnet Dynamometers
The use of ultra-low inertia dynamometers, which are used totest automobile drive train components, allows simulation of engine torque fluctuation. This is accomplished by superposing highfrequencies on the current through the stator coil of the motor.
The resulting changes in the magnetic field, however, cause eddy
current losses in the rotor that determine the performance limitsof the simulation.
This problem was approached by three-dimensional eddy current analysis using the finite element method. The results showedthat eddy current losses could be reduced by changing the composition of the metal separators inserted between the rare-earth permanent magnets that make up the rotor. The figure on the rightshows one example of the distribution of the eddy current density
vector together with average eddy current losses for different separator materials.
Working from these results, it was possible to reduce losses toapproximately one-quarter their former level by changing the separator material from aluminum to titanium.

Stator coil
Permanent
magnets

Metal separator

Metal
separator
Permanent
magnets
Aluminum

Titanium

Eddy current
density vector

Comparison of eddy
current losses

Example of rotor eddy current loss analysis

High-purity Liquid Ozone Oxidation Treatment Technology
The micro-miniaturization and high-order integration of LSI
chips requires the use of thinner for gate oxidation films. Conventional thermal oxidation films contain structural transition layers(asymmetrical layers) and regions of oxides (compositional transition layers) which are thought to limit the film thinness.
It has been confirmed that layers containing defects of thiskind are far thinner in oxidized films using ozone. As this will
also allow lower-temperature processes, it is anticipated to becomea major breakthrough.
Meidensha Corporation has developed high-purity liquid ozone
generating apparatus with semiconductor applications in mind.
This apparatus is capable of generating high-purity ozone with nometallic impurities at a concentration of about 100% in a vacuum.
At present, we are evaluating silicon oxide film formation andthe electrical characteristics of the oxide film. We plan to actively
promote the application of this technology to semiconductor fabrication processing.

High-purity liquid ozone generating
apparatus

2001 Annual Report12Financial Section
Consolidated 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
2001 Annual Report13Consolidated Financial Review
Outline of Profits and Losses
The Japanese economy in fiscal 2000 showed that the business fixed investment played a locomotive role in the economy
spurred by the information technology (IT)-related investment.
On the other hand, the public investment and private consumption showed a declining trend. In the second half of fiscal 2000, the exports fell rapidly reflecting a sharp economic
slowdown in the United States. On the whole, the economy
of fiscal 2000 continued to be sluggish.
Net sales totalled 196,983 million yen, a 3.6% decreaseover the previous term. Business sector-based net sales stoodat 35.8% for the Energy Sector, 26.3% for the Environment
Sector, 7.4% for the Info and Communications Sector, 12.8%
for the Industrial Systems Sector, and 17.7% for Others.
The cost of sales was 157,366 million yen, a 4.2% decrease. Sales, general and administrative expenses totalled
35,708 million yen, a 7.0% decrease. Operating income, therefore, stood at 3,909 million yen.
The final result was a net loss of 2,645 million yen forthis term.

Financial Conditions
Total assets at the end of March 2001 were 212,105 million yen, a decrease of 9,283 million yen. As a result of decreased cash and time deposits and marketable securities, of
this figure current assets stood at 142,248 million yen, a decrease of 19,776 million yen. Property, plant and equipment
was 39,496 million yen, a decrease of 120 million yen. Total
current liabilities totalled 136,192 million yen, a decrease of
10,305 million yen, and shareholders’ equity stood at 38,889
million yen, a decrease of 2,728 million yen. As a result, shareholder capital ratio decrease 0.5 points from 18.8% to 18.3%.

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

2001

2000

¥196,983¥204,376

Net income (loss)(2,645)

Net income (loss) per share (Yen)Net sales

Cash dividends paid
Depreciation and amortization

Millions of yen
1999

1998

1997

¥218,354¥222,772¥235,104(5,761)(16,912)1,348(13.09)(28.52)(83.71)(4,767)(23.60)

—

—

—

1,818

1,616

6.68

5,102

6,285

6,588

6,666

6,538

Total assets

212,105

221,388

235,911

253,671

245,003

Net property, plant and equipment

39,496

39,61647,05747,39147,932

Shareholders’ equity per share (Yen)

192.50206.00182.21

266.30300.11

2001 Annual Report14

Operational Review
35.8%

Energy Sector
Net sales ¥70,597 million ($569,331 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, and so on.

Environment Sector

99

85,131

81,18400

01

70,59726.3%
9951,414

Net sales ¥51,852 million ($418,161 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

55,57700

01

51,85299

17,896

7.4%

Net sales ¥14,636 million ($118,032 thousand)

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

Industrial Systems Sector

00

01

11,635

14,636

12.8%
27,54199

Net sales ¥25,176 million ($203,032 thousand)00

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, andother such areas.

01

25,176

17.7%
99

Others
Net sales ¥34,721 million ($280,008 thousand)

21,92536,37200

34,05501

34,721

2001 Annual Report15

Consolidated Balance Sheets
MEIDENSHA CORPORATION AND CONSOLIDATED SUBSIDIARIESMarch 31, 2001 and 2000

Millions of yen
2001
2000

Thousands of
U.S. dollars (Note 1)
2001

AssetsCurrent assets:
Cash and time deposits ...........................................................
Marketable securities (Note 3) ...............................................
Receivables:
Trade notes .........................................................................
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 .......................................................

¥16,174
3,668¥25,666
21,807$130,435
29,581

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

10,587
69,670
205
1,634
(499)
28,511
1,723
2,720
162,024

115,097
551,556
4,371
9,056(1,968)
253,758
36,855
18,4201,147,161

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

6,440
41,51275,427713(84,476)
39,616

63,686
339,548591,6218,750(685,089)
318,516

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

18,069
977
157
5,158
6,009
(9 )
30,361

773
972
223
9,792
7,453
(17)
19,196

145,718
7,879
1,266
41,59748,460(73)
244,847

Foreign currency translation adjustment ................................

—

552

—

Total assets ..................................................................................

¥212,105¥221,388$1,710,524

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

Investment and other assets:

See accompanying notes.

2001 Annual Report

16Millions of yen
2001
2000
Liabilities and Shareholders’ Equity
Current liabilities:
Short-term borrowings (Note 5) .............................................
Commercial paper ...................................................................
Current portion of long-term debt (Note 6) ............................
Payables:Trade notes .........................................................................
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)
2001¥44,878—
4,761¥42,993
17,0008,078$361,919—
38,395

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

14,36932,166638
10,828700
5,920
13,805
146,497

140,524
285,637
4,403
112,452
6,750
44,419103,823
1,098,322

Long-term debt (Note 6) .........................................................
Employees’ severance and retirement benefits (Note 8) ............
Reserve for retirement allowance for directors
and auditors ........................................................................
Deferred income tax liabilities on revaluation reserve
for land (Note 17) ..............................................................
Other long-term debt (Note 6) ................................................

19,247
7,903

18,052
894

155,218
63,734

811

788

6,540

484
86

—
5,114

3,903
694

Minority interests .......................................................................
Contingent liabilities (Note 10)
Shareholders’ equity (Note 9):
Common stock, par value ¥50 per share:
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 (Note 17) .................
Foreign currency translation adjustment ................................
Less: Treasury stock................................................................
Total shareholders’ equity ..................................................

8,493

8,426

68,492

17,07012,751
8,968
423
(323)
( 0)
38,88917,07012,751
11,796——(0)41,617

137,661
102,831
72,3233,411(2,605)( 0)313,621

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

¥212,105¥221,388$1,710,524

2001 Annual Report17Consolidated Statements of Operations
MEIDENSHA CORPORATION AND CONSOLIDATED SUBSIDIARIES
Years ended March 31, 2001, 2000 and 1999

2001

Millions of yen
2000

1999

Thousands of
U.S. dollars (Note 1)
2001

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

¥196,983¥204,376¥218,354$1,588,573

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

157,366

164,221

175,308

1,269,081

35,70838,39444,979287,968

Operating income (loss) .......................

3,909

1,761

(1,933)31,524

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 18) ...............................
Miscellaneous, net.......................................

588(1,159)
1,207
(55)
—
—
(399)
1

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

786
(1,623)91(1,520)(2,118)(5,661)(1,107)24

4,742(9,347)
9,734
(444)
—
—
(3,217)8—
325(3,112)(723)(4,457)
—
—
(666)

—
—
—
(1,488)—2,621(25,097)(5,830)

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

582(4,685)(14,549)

4,694

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

1,310
1,793
3,103
124

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

1,629
—
1,629
734

10,565
14,46025,0251,000

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

(¥2,645)(¥5,761)(¥16,912)($21,331)

2001

Yen
2000

1999

U.S. dollars (Note 1)
2001(¥13.09)——(¥28.52)——(¥83.71)——($0.11)——Other income (expenses):

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

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

2001 Annual Report18Consolidated Statements of Shareholders’EquityMEIDENSHA CORPORATION AND CONSOLIDATED SUBSIDIARIES
Years ended March 31, 2001, 2000 and 1999

Balance at March 31, 1998 .................................
Net loss ...........................................................
Bonuses to directors and statutory
auditors .........................................................
Increase in retained earnings due toaddition of consolidated subsidiaries ..........
Decrease (increase) treasury stock ................
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 (Note 17) ..........
Decrease (increase) treasury stock ................
Balance at March 31, 2001 ...............................

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 (Note 17) ..........
Decrease (increase) treasury stock ................
Balance at March 31, 2001 ...............................

Millions of yen
Additional Retained
Revaluation
Foreign currency Treasury stock
paid-in capital earnings
reserve fortranslation
land, net of tax
adjustment¥12,751 ¥23,980
¥—
¥—
(¥1)
— (16,912)———

Number ofshares issued

Common stock

202,025,158—¥17,070
—

—

—

—

(92)

—

—

—

—
—
202,025,158———
17,070———12,751
—

14
—
6,990
(5,761)

—
—
—
—

—
—
—
—

—
0
(1 )
—

—

—

—

(69)

—

—

—

—

—

—

10,631

—

—

—

—

—

—

238

—

—

—

—

—

—

(29)

—

—

—

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

—
—
—
—

—
—
—
—

—
0
(0 )
—

—

—

—

(55)

—

—

—

—

—

—

13

—

—

—

—

—

—

(141)

—

—

—

—
—
—
202,025,158———¥17,070———¥12,751———¥8,968

—
423
—
¥423

(323)
—
—
(¥323)——
0(¥0)

Number ofshares issued

Common stock

202,025,158—$137,661
—

—

—

—

(443)

—

—

—

—

—

—

105

—

—

—

—

—

—

(1,137)

—

—

—

—
—
—
202,025,158———$137,661———$102,831———$72,323—$3,411—$3,411($2,605)——($2,605)

—
—
0
($0)

Thousands of U.S. dollars (Note 1)
Additional Retained
Revaluation
paid-in capital earnings
reserve forland, net of tax$102,831 $95,129—— (21,331)—

Foreign currency Treasury stocktranslation
adjustment
—
($0)
—
—

See accompanying notes.

2001 Annual Report19Consolidated Statements of Cash Flows
MEIDENSHA CORPORATION AND CONSOLIDATED SUBSIDIARIES
Years ended March 31, 2001 and 2000

Millions of yen
2001
2000

Thousands of
U.S. dollars (Note 1)
2001

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 allowances ......................................
Interest and dividends income .............................................
Interest expense ...................................................................
Loss arising from casualty ...................................................
Accident insurance income ..................................................
Decrease in receivables .......................................................
Decrease (Increase) in inventories ......................................
Increase (Decrease) in payables ..........................................
Other-net ..............................................................................
Sub total .............................................................................

¥582(¥4,685)$4,694

5,102
1,205
(588)
1,159
3,312
(325)
476
(3,763)
5,119(1,014)
11,265

6,285(1,386)
(669)
1,183
—
—
12,542
3,957(4,545)
6,058
18,74041,145
9,718(4,742)
9,347
26,710(2,621)
3,839(30,347)
41,282(8,178)90,847

Interest 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 .........................

594(1,138)—(1,152)
325
(721)
9,173

675
(1,231)(4,053)(1,628)——12,503

4,790(9,177)—(9,290)2,621(5,815)73,976(4,562)(5,301)(36,790)

5,780(4,521)
402

10,697(4,799)1,817

46,613(36,460)
3,242

—
336
(2,565)

1,561
(438)
3,537

—
2,710
(20,685)

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

15,202(137,097)
53,089(70,242)—
266(138,782)
153(85,338)
219,943
3,701$138,306

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.

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

1. Basis of Consolidated Financial
Statements
MEIDENSHA CORPORATION (“the Company”) and its
consolidated domestic subsidiaries maintain their accounts andrecords in accordance with the provisions set forth in the Japanese Commercial Code and the Securities and Exchange Law
and in conformity with accounting principles and practices
generally accepted in Japan, which are different from the accounting and disclosure requirements of International Accounting Standards. The accounts of overseas consolidated subsidiaries are based on the accounting records of these entities, inconformity with generally accepted accounting principles andpractices prevailing in the respective countries of domicile.
The accompanying consolidated financial statements area translation of the audited consolidated financial statementsof the Company which were prepared in accordance with accounting principles and practices generally accepted in Japan
from the accounts and records maintained by the Company
and its consolidated subsidiaries and were filed with the Minister of Finance (“MOF”) as required by the Securities andExchange Law.
In preparing the accompanying consolidated financial statements, certain reclassifications have been made in the consolidated financial statements issued domestically in order topresent them in a form which is more familiar to readers outside Japan.
The consolidated statements of shareholders’ equity for
2001, 2000 and 1999 have been prepared for the purpose ofinclusion in the accompanying consolidated financial statements, although such statements were not required for domestic purposes and were not filed with the regulatory authorities.
The translation of the Japanese yen amounts into U.S. dollars are included solely for the convenience of the reader, using the prevailing exchange rate at March 31, 2001, whichwas ¥124 to U.S. $1. The convenience translations should not
be construed as representations that the Japanese yen amounts
have been, could have been, or could in the future be, con-verted into U.S. dollars at this or any other rate of exchange.
Certain prior years’ amounts have been reclassified to conform to 2001 presentation. These changes had no impact onpreviously reported results of operations or shareholders’ equity.

2. Summary of Significant
Accounting Policiesa) Principles of Consolidation
Effective for the year ended March 31, 2001, all companies 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 22 (2001 and 2000,
21 for 1999) consolidated subsidiaries. All significant intercompany accounts and transactions have been eliminated on
consolidation. The Company’s remaining subsidiaries, whose
net and gross 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 thefair value at the Company acquired control of the respective
subsidiaries.

b) Equity Method
Investments in unconsolidated subsidiaries and affiliatedcompanies (all 20% to 50% owned and certain others 15% to
20% owned) are accounted for by the equity method in theyear ended March 31, 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 were2001 Annual Report21

accounted for using the equity method. Effective April 1, 1999,
in accordance with the revised Accounting Principles for Consolidated Financial Statements, investments in companies ofwhich the Company has at least 15% and less than 20% of thevoting rights are also accounted for using the equity methodin the cases where the Company has the ability to exercise
significant influence over operating and financial policies of
the investees. The effect of the adoption of this new accounting is immaterial. In the case of the Company, investments inan unconsolidated subsidiary and an affiliated company areaccounted for by the equity method in 2001 and 2000. Investments in all other unconsolidated subsidiaries and affiliatedcompanies, that would not have 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 of cost or market. Securities unlisted in stock markets are stated at cost. The costis determined by the moving-average method.
Effective April 1, 2000, the Company and its consolidated
subsidiaries adopted the new Japanese accounting standard forfinancial instruments (“Opinion Concerning Establishment of
Accounting Standard for Financial Instruments” issued by theBusiness Accounting Deliberation Council on January 22,1999).
Upon applying the new accounting standard, all companies 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 be held to maturity (hereafter, “held-to-maturity debt securities”), (c) equity securities issued by subsidiaries and affiliated companies, and (d) for 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 are stated at amortized cost. Equity securities issued by subsidiaries and af-

filiated companies which are not consolidated or accounted
for using the equity method are stated at moving-average cost.
Available-for-sale securities are stated at moving-average cost.
See Note 3 as to detail information on securities.
If the market value of held-to-maturity debt securities, equity securities issued by unconsolidated subsidiary and affiliated company, and available-for-sale securities, declines significantly, such securities are stated at fair market value andthe difference between fair market value and the carrying
amount is recognized as loss in the period of the decline. If thefair market value of equity securities issued by unconsolidated
subsidiary and affiliated company not on the equity method is
not readily available, such securities should be written down
to net asset value with a corresponding charge in the income
statement in the event net asset value declines significantly. In
these cases, such fair market value or the net asset value willbe the carrying amount of the securities at the beginning of
the next year.
As a result of adopting the new accounting standard forfinancial instruments, income before income taxes increasedby ¥2,208 million ($17,806 thousand). Also, based on the examination of the intent of holding each security upon application of 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 in current assets, and other securities are included in investments and other assets. As a result,at March 31, 2001, securities in current assets decreased by¥19,056 million ($153,677 thousand) and investment securities increased by the same amount compared with what would
have been reported under the previous accounting policy.

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 andto recognize changes in the fair value as gains or losses unlessderivative financial instruments are used for hedging purposes.
2001 Annual Report22

If derivative financial instruments are used as hedges andmeet certain hedging criteria, the Company and its consolidated subsidiaries (the “Companies”) defer recognition of gains
or losses resulting from changes in fair value of derivative
financial instruments until the related losses or gains on thehedged items are recognized.
However, in cases where forward foreign exchange contracts are used as hedges and meet certain hedging criteria,
forward foreign exchange contracts and hedged items are accounted for in the following manner: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, Equipment and Depreciation
Depreciation is computed using the declining-balancemethod over estimated useful lives except for buildings acquired after March 31, 1998, which are depreciated based on
the straight-line method.

g) Allowance for Doubtful Accounts
1. If a forward foreign exchange contract is executed to hedge
an existing foreign currency receivable or payable,(a) the difference, if any, between the Japanese yen amount of
the hedged foreign currency receivable or payable translated using the spot rate at the inception date of the contract and the book value of the receivable or payable isrecognized in the income 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 amount of the contract translated using the contracted forward rate and that translatedusing the spot rate at the inception date of the contract) is
recognized over the term of the contract
2. If a forward foreign exchange contract is executed to hedge
a future transaction denominated in a foreign currency, thefuture transaction will be recorded using the contracted
forward rate, and no gains or losses on the forward foreignexchange contract are recognized.
Also, if interest rate swap contracts are used as hedge andmeet 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.

e) Inventories
Inventories are stated at cost, which is mainly determined

Effective from the year ended March 31, 2001, theCompany and its consolidated subsidiaries provide the allowance for doubtful accounts in an amount sufficient tocover possible losses on collection by estimating individually uncollectible amounts and applying a percentage basedon collection experience to the remaining accounts. Previously, the Company and its consolidated subsidiaries
provided the allowance for doubtful accounts as to theindividual uncollectible amounts and as to the general allowance 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 lumpsum payment plans and funded contributory pension plans,
under which all eligible employees are entitled to benefits
based on the level of wages 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 made to the2001 Annual Report23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 andPension Benefits”, issued by the Business Accounting Deliberation Council on June 16, 1998 (the “New Accounting Standard”).
Under the New Accounting Standard, the liabilities andexpenses for severance and retirement benefits are determinedbased 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 and the fair value of the plan assets atthat date.
The excess of the projected benefit obligation over the total of the fair value of pension assets as of April 1, 2000 andthe liabilities for severance and retirement benefits recorded
as of April 1, 2000 (the “net transition obligation”) amounted
to ¥38,330 million ($309,113 thousand). The amount will berecognized 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, and actuarial 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 ($13,944
thousand), operating income decreased by ¥1,399 million($11,282 thousand) and income before income taxes decreasedby ¥1,594 million ($12,855 thousand) compared with what
would have been recorded under the previous accounting standard.

i) Income Taxes
The Company provided income taxes at the amounts currently payable for the year ended March 31, 1999. Effective
April 1, 1999, the Company and its 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 of income. The asset and liability approachis used to recognize expected future tax consequences of temporary differences between the carrying amounts of assets andliabilities 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 is ¥10,631 million, which is directly added
to the retained earnings brought forward from March 31, 1999.
The effect for the year ended March 31, 2000 was a decreasein net income of ¥2,606 million. Prior years’ financial statements have not been restated.

j) Foreign Currency Translation
Short-term receivables and payables denominated in foreign currencies are translated into Japanese yen at the yearend rates. Prior to April 1, 2000, long-term receivables andpayable denominated in foreign currencies were translated athistorical 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 (the “Revised Accounting Standard”). Under the Revised Accounting Standard, long-term receivables
and payables denominated in foreign currencies are also translated into Japanese yen at the year-end rate.
There was no effect on the consolidated income statementof adopting the Revised Accounting Standard.
2001 Annual Report24Financial statements of consolidated overseas subsidiaries are translated into Japanese yen at the year-end 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 the shareholders’ equity andminority interests. The prior year’s amount, which was included in assets has not been reclassified.

k) Amounts Per Share of Common Stock
The computation of net income (loss) per share is basedon the weighted average number of shares of common stock
outstanding during the year.

For the years ended March 31, 2001, 2000 and 1999, diluted net income per share were not shown since operation
resulted in net loss.

l) Statement of Cash Flows
The Company prepared the 2001 and 2000 consolidated
statement of cash flow as required by and in accordance withthe “Standards for Preparation of Consolidated Cash Flow
Statements, etc.”, effective from the year ended March 31,
2000. In preparing the consolidated statements of cash flow,
cash on hand, readily-available deposits and short-term highly
liquid investments with maturities that do not exceed threemonths at the time of purchase, are considered to be cash andcash equivalents.
See Note 15 as to reconciliation for cash and time deposits.

2001 Annual Report25

3. Securities
A. The Company and its consolidated subsidiaries do not reflect fair value etc. on the financial statements as to available-forsale securities allowed by the new accounting standard. The following tables summarize book value, fair value, etc. ofavailable-for-sale securities with available fair values as of March 31, 2001:

Book value .....................................................................................................
Fair value .......................................................................................................
Net unrealized holding gains on securities ...................................................
Deferred tax liabilities ...................................................................................
Minority interests ...........................................................................................

Millions of yen¥20,161
22,925
1,590
1,130
44

Thousands of
U.S. dollars$162,589
184,879
12,822
9,113
355

B. The following tables summarize book values of securities without fair values as of March 31, 2001:(a) Equity securities issued by subsidiaries and affiliated companies:
Type

Book value
Thousands ofMillions of yen
U.S. dollars

Non-listed equity securities ...........................................................................

¥977$7,879(b) Available-for-sale securities:
Type

Book value
Thousands ofMillions of yen
U.S. dollars
Money management fund ..............................................................................
¥406$3,274
Beneficiary certificates ..................................................................................

50

403

Non-listed foreign securities .........................................................................

401

3,234

Non-listed equity securities ...........................................................................

720

5,807

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

¥1,577$12,718

C. Available-for-sale securities with maturities are as follows:
Type
Corporate bonds

Type
Corporate bonds

Within one year
¥2,121Millions of yen
Over one year
but within five years¥1,149Over five years
but within ten years¥100

Thousands of U.S. dollars (Note 1)
Within one year
Over one year
Over five years
but within five years
but within ten years$17,105$9,266

Over ten years¥20

Over ten years

$806

$161

D. Total sales of available-for-sale securities sold in the year ended March 31, 2001 amounted to ¥5,780 million ($46,613
thousand) and the related gains amounted to ¥1,207 million ($9,734 thousand).
2001 Annual Report26

4. Inventories
Inventories as of March 31, 2001 and 2000 were as follows.

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

Millions of yen
2001
2000
¥2,622¥1,902
3,013
2,868
23,834
22,2481,997
1,493

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

¥31,466¥28,511

Thousands of
U.S. dollars
2001$21,415
24,298
192,210
16,105$253,758

5. Short-Term Borrowings
Short-term borrowings are bank loans and represented by notes. The weighted average interest rate was 1.2% as of March 31,
2001 and 2000.

6. Long-Term Debt
Long-term debt as of March 31, 2001 and 2000 consisted of the following.

1.48% to 4.45% loans from banks and insurance companies ..........
2.2% to 2.7% loans from agricultural cooperative organizations ....
Less: Current portion ........................................................................

Millions of yen
2001
2000
¥22,944¥24,290
1,064
1,840(4,761)(8,078)

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

¥19,247¥18,052

Thousands of
U.S. dollars
2001$185,032
8,581(38,395)$155,218

The annual maturities of long-term debts as of March 31, 2001 were as follows.

Year ended March 31
2002 .........................................................................................................................
2003 .........................................................................................................................
2004 .........................................................................................................................
2005 .........................................................................................................................
2006 .........................................................................................................................
2007 and thereafter .................................................................................................

Millions of yen

Thousands of
U.S. dollars¥4,761
7,542
8,609
1,190
1,906
—

$38,395
60,82369,427
9,597
15,371—

2001 Annual Report27

7. Pledged Assets
The following assets were pledged as collateral at March 31, 2001.

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

Millions of yen
¥928
103
2,837
3,013
49
¥6,930Thousands of
U.S. dollars$7,484831
22,87924,298395$55,887

Obligations with collateral pledged at March 31, 2001 were as follows.

Short-term borrowings .................................................................................
Long-term debt .............................................................................................
Repurchase of note discounted ....................................................................
Total .............................................................................................................

Millions of yen¥2,6503,966
250¥6,866

Thousands of
U.S. dollars$21,371
31,984
2,016$55,371

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 and expenses 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 consolidated balance sheet as ofMarch 31, 2001 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¥83,072
62(6,488)(33,068)(35,675)¥7,903Thousands of
U.S. dollars$669,935
500(52,323)(266,677)(287,701)$63,734

2001 Annual Report28Included in the consolidated statement of income for the year ended March 31, 2001 are severance and retirement 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 ....................................................
Employee’s contribution ..............................................................................
Severance and retirement benefit expenses .................................................

Millions of yen¥3,752
2,658(1,487)
( 4)
2,655
(598)
¥6,976

Thousands of
U.S. dollars$30,258
21,435(11,992)(32)
21,411(4,822)$56,258

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 5.0%, respectively. The estimated amount of all retirement benefits to be paid at the future retirement date isallocated 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, with a minimum of the parvalue thereof, is required to be designated as stated capital. The portion which is to be designated as stated capital is determinedby resolution of the Board of Directors. Proceeds in excess of the amounts designated as stated capital are to be credited toadditional 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 such reserve equals 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.

10. Contingent Liabilities
Contingent liabilities at March 31, 2001, were as follows.

Repurchase of note discounted and endorsed ....................................................
Guarantees of loans from banks to unconsolidated subsidiaries and affiliates ......
Employees ...............................................................................................................

Millions of yen¥2,338550
1,540

Thousands of
U.S. dollars$18,855
4,436
12,419Total ........................................................................................................................

¥4,428$35,7102001 Annual Report2911. Non-Capitalized Finance Leases:(1) Financial leases, which do not transfer ownership of properties to lessees, are not capitalized and are accounted for in the samemanner as operating leases. The relevant calculations follow:(i) Assumed amounts (inclusive of interest) of acquisition cost, accumulated depreciation and net book value as ofMarch 31, 2001 and 2000, are summarized as follows:
Millions of yen
2001
2000
Assumed acquisition cost:
Machinery and equipment ................................................
Other .................................................................................
Accumulated depreciation .....................................................

Thousands of
U.S. dollars
2001

¥252
1,824
(1,287)¥207
2,034(1,181)$2,032
14,710(10,379)¥789¥1,060$6,363(ii) Future minimum lease payments, inclusive of interest, at March 31, 2001 totalled ¥789 million ($6,363 thousand),including ¥359 million ($2,895 thousand) due within one year.
(iii) Lease payments, which are equal to assumed depreciation charges for the years ended March 31, 2001 and 2000,
were ¥431 million ($3,776 thousand) and ¥608 million ($4,903 thousand), 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, 2001 totalled ¥1,729 million ($13,944
thousand), including ¥268 million ($2,161 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 for the year ended
March 31, 2001 and 2000 stood at ¥8,372 million ($78,981 thousand) and ¥8,372 million ($67,516 thousand), respectively.

2001 Annual Report30

13. Segment Information
Industry segments:

The Company and its consolidated subsidiaries operate principally in five industrial sectors: Energy, Environment, Info andCommunications, Industrial Systems, and Others Sectors. In the year ended March 31, 2000, the Company and its consolidated
subsidiaries modified its classification of products (rotary machine, transmission and distribution equipment, control equipment,
construction and wiring and others) among the sectors. The change was brought about by the Company’s restructuring.
Information by industry segments for the years ended March 31, 2001, 2000 and 1999 were as follows:Year ended
March 31, 2001

Millions of yen
Info and IndustriaIndustriallCommunications
Systems Systems Other Other Total

Total

E l i mEliminations
i n a t i o n s o ror
corporCorporate
ate
ConConsolidated
solidated

EnergyEnergyEnEnvironment
vironment

Outsidecustomers¥ 70,597¥ 51,852¥ 14,636¥ 25,176¥ 34,722¥ 196,983¥ ––¥ 196,983

Inter-segment

5,380

1,549

2,843

2,502

36,345

48,619(48,619)

––

Total

75,97753,401

17,47927,67871,067

245,602(48,619)

196,983

Operating expenses

76,04344,161

19,87529,261

69,969239,309(46,235)

193,074

Operating income(loss)(¥ 66)¥ 9,240(¥ 2,396)(¥ 1,583)¥ 1,098¥ 6,293(¥ 2,384)¥ 3,909

Identifiable assets¥ 54,207¥ 23,070¥ 21,335¥ 22,222¥ 43,189¥ 164,023¥ 48,082¥ 212,105

Depreciation andamortization

1,376

190

839

743

645

3,793

1,309

5,102

Capital expenditures

1,248

144

624

766

980

3,762

1,219

4,981

Eliminations or
Corporate

Consolidated

Net sales:Year ended
March 31, 2000

Millions of yen
Industrial
Systems
Other

EnergyEnvironment

Info andCommunications

Outsidecustomers¥ 81,184¥ 55,577¥ 11,635¥ 21,925¥ 34,055¥ 204,376¥ ––¥ 204,376Inter-segment

5,322

2,178

2,538

2,481

36,95749,476(49,476)

––

Total

86,50657,755

14,173

24,40671,012

253,852(49,476)

204,376

Operating expenses

85,99647,33618,20028,09468,718248,344(45,729)

202,615

Operating income(loss)¥ 510¥ 10,419(¥ 4,027)(¥ 3,688)¥ 2,294¥ 5,508(¥ 3,747)¥ 1,761

Identifiable assets¥ 57,625¥ 22,305¥ 18,103¥ 18,152¥ 44,396¥ 160,581¥ 60,807¥ 221,388

Depreciation andamortization

1,466

179

1,372

801

605

4,423

1,862

6,285

Capital expenditures

381

392

987

309

1,328

3,397

695

4,092

Total

Net sales:

2001 Annual Report31Millions of Yen
Industrial
Systems
Other

Total

EnergyEnvironment

Info andCommunications

Outsidecustomers¥ 85,131¥ 51,414¥ 17,896¥ 27,541¥ 36,372

Inter-segment

5,400

1,423

1,161

3,699

Total

90,531

52,837

19,057

Year ended
March 31, 1999

Eliminations or
Corporate

Consolidated¥ 218,354¥ ––¥ 218,354

36,06747,750(47,750)––

31,24072,439266,104(47,750)

218,354

Net sales:

Operating expenses

91,91745,976

21,45634,24270,074

263,665(43,379)

220,286

Operating income(loss)(¥ 1,386)¥ 6,861(¥ 2,400)(¥ 3,001)¥ 2,365¥ 2,439(¥ 4,372)(¥ 1,933)

Identifiable assets¥ 66,718¥ 24,049¥ 26,130¥ 25,534¥ 39,767¥ 182,198¥ 53,714¥ 235,912

Depreciation andamortization

1,628

199

1,524

890

531

4,772

1,817

6,589

Capital expenditures

1,223

257

1,505

699

1,065

4,749

1,164

5,913

Eliminations or
Corporate

Consolidated

Year ended
March 31, 2001

Thousands of U.S. dollars (Note 1)
Info andIndustrial
Communications
Systems
Other

EnergyEnvironment

Total

Outsidecustomers$569,331$418,161$118,032$203,032$280,017$1,588,573$––$1,588,573

Inter-segment

43,387

12,492

22,927

20,177

293,105

392,088(392,088)

––

Total

612,718

430,653

140,959

223,209573,122

1,980,661(392,088)

1,588,573

Net sales:

Operating expenses

613,250

356,137

160,282

235,975

564,267

1,929,911(372,862)

1,557,049

Operating income(loss)($532)$74,516($19,323)($12,766)$8,855$50,750($19,226)$31,524

Identifiable assets$437,153$186,048$172,056$179,210$348,299$1,322,766$387,758$1,710,524

Depreciation andamortization

11,097

1,532

6,766

5,992

5,202

30,58910,55641,145

Capital expenditures

10,065

1,161

5,032

6,177

7,904

30,3399,830

40,169Geographic information is not disclosed due to its insignificance.

2001 Annual Report3214. Income Taxes
Japanese income taxes, which consist of corporate, enterprise and inhabitants taxes, would normally result in an aggregate
statutory tax rate of approximately 41%, 42% and 48% for the years ended March 31, 2001, 2000 and 1999, respectively. Significant components of deferred tax assets and liabilities of the Company and its consolidated subsidiaries as of March 31, 2001 are
as follows.
Millions of yen
2001
2000
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
2001¥6,522
3,020
3,334
1,174
1,306
15,356$5,858
2,375
3,450
689
700
13,072$52,597
24,35526,887
9,468
10,532
123,839(4,149)
11,207—
13,072(33,460)
90,379

1,425
54
1,479
9,728

1,492
65
1,557
11,515

11,492435
11,92778,452

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, 2000 is not shown
due to loss before income taxes.

2001 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 inthe consolidated statements of cash flows as of March 31, 2001 and 2000 are as follows:

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

Millions of yen
2001
2000
¥16,174¥25,6663,668
21,807(2,692)(20,200)¥17,150¥27,273

Thousands of
U.S. dollars
2001$130,435
29,581(21,710)$138,306

16. Effect of Bank Holiday on March 31, 2001
As financial institutions in Japan were closed on March 31, 2001, amounts that would normally be settled on March 31, 2001
were collected or paid on the following business day, April 2, 2001.
The effects of the settlements on April 2 instead of March 31 included the following:Notes receivable, trade
Notes payable, trade

Increased by approximately ¥1,435 million ($11,573 thousand)Increased by approximately ¥558 million ($4,500 thousand)

17. Land Revaluation
A consolidated subsidiary revalued the land used for its business operations on March 31, 2001, under the Law Concerning
Revaluation for Land. As a result of the revaluation, certain land (which book value was ¥1,046 million ($8,435 thousand) wasvalued at the amount of ¥2,207 million ($17,798 thousand) primarily based on the official notice prices as provided for in the Law
Concerning Public Notification of Land Prices. The consolidated subsidiary reported unrealized gains, net of income taxes andminority interest, in the amount of ¥423 million ($3,411 thousand) in a separate component of shareholders’ equity, which were
excluded from earnings, and the tax effect for the unrealized gains in the amount of ¥484 million ($3,903 thousand) as deferred tax
liability on revaluation reserve for land in the accompanying consolidated balance sheet as of March 31, 2001.

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

19. Subsequent Event
On May 7, 2001, the Board of Directors of the Company resolved that the Company would establish a joint venture company
with Hitachi, ltd and Fuji Electric Co., Ltd. and signed on a joint venture agreement on the same day. The Joint venture will
manufacture products for transmission and distribution of electric power.

2001 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, 2001 and 2000, and the related consolidated statements of operations, and shareholders’ equity for each of the three years in the period ended March 31, 2001, and the related consolidated statement ofcash flows for each of the two years ended March 31, 2001, expressed in Japanese yen. Our audits were made in accordance with generally accepted auditing standards in Japan and, accordingly, included such tests of the accounting 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 positionof MEIDENSHA CORPORATION and subsidiaries as of March 31, 2001 and 2000, and the consolidated results of theiroperations for each of the three years in the period ended March 31, 2001, and the consolidated results of their cash flows
for each of the two years ended March 31, 2001 in conformity with accounting principles generally accepted in Japanapplied on consistent basis, except for the change, with which we concur, in the method of segmentation by industry
segment, made in the year ended March 31, 2000, as described in Note 14.
As explained in Note 2, the Company 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 newJapanese accounting standards for employees’ severance and pension benefits, financial instruments, and the revised accounting standards for foreign currency translation in the year ended March 31, 2001.
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.
Tokyo, Japan
June 28, 2001

Statement on Accounting Principles and Auditing Standards:
This statement is to remind users that accounting principles and auditing standards and their application in practice
may vary among nations and therefore could affect, possibly materially, the reported financial position and results ofoperations. The accompanying financial statements are prepared based on accounting principles generally accepted inJapan, and the auditing standards and their application in practice are those generally accepted in Japan. Accordingly, theaccompanying financial statements and the auditors’ report presented above are for users familiar with Japanese accounting principles, auditing standards and their application in practice.

2001 Annual Report35Overseas Offices and Affiliates(As of July, 2001)

Hong Kong

Indonesia

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

6/F Kerry Godown,
4-6 Kwai Tai Road,
Kwai Chung, N.T., Hong Kong
Phone: 2503-2468
Facsimile: 2887-8046● MEIDEN PACIFIC(CHINA) LTD.
6/F Kerry Godown,
4-6 Kwai Tai 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 12069, Indonesia
Phone: 21-520-0612/1584
Facsimile: 21-520-0240

G. 03, Ground Floor, Wisma Academy,
4A, Japan 19/1
46300 Petaling Jaya,
Selangor Darul Ehsan, Malaysia
Phone: 3-79554646
Facsimile: 3-79546466

Korea※● MEIDENSHACORPORATIONRoyal Building. No.410,
5 Dangju-Dong,
Chongro-ku, Seoul, Korea
Phone: 2-736-0232~3
Facsimile: 2-736-0234● MEIDEN METALENGINEERING SDN.
BHD.
Lot 6, Peringkat 3,
Kawasan Perindustrian Alor Gajah,
78000 Melaka, Malaysia
Phone: 6-5568790~2
Facsimile: 6-5568795

2001 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.

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

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

5, Jalan Pesawat,
Jurong Industrial Estate,
Singapore 619363
Phone: 268-8222
Facsimile: 264-4292

Taiwan※● MEIDENSHACORPORATION
Room 1103, 11th Floor,
No.142 Chung Hsiao East Road,
Sec.4, Taipei, Taiwan, R.O.C.
Phone: 2-2775-3337~8
Facsimile: 2-2775-3339● MEIDEN ELECTRIC(THAILAND) LTD.
896 Moo 2,
Bangpa-in lndustrial Estate,
Udomsorayuth Rd., Klongjig,
Bangpa-in, Ayudhaya 13160,
ThailandPhone: 35-258258~262
Facsimile: 35-221388

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

2001 Annual Report37Consolidated Subsidiary Companies
MEIDEN ENGINEERING CO., LTD.

MEIDEN SOFTWARE 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 ¥70 million
Engineering and programming of software
809, Oka-Isshikitorimachi, Numazu-shi, Shizuoka
410-0012 Japan
Phone: 559-23-4966 Fax: 559-23-1191

SHINKO SEISAKUSHO CO., LTD.

MEIDEN FOUNDRY INDUSTRIAL Co., Ltd.

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

Capital ¥50 million
Casting
4, Nyogetsu, Heisaka-cho, Nishio-shi,
Aichi 444-0305 Japan
Phone: 563-59-6181 Fax: 563-59-4132

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, mainly
15-11 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.
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

Meiden Kohsan Co., Ltd.
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 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

Nagoya Meiden Kohsan Co., Ltd.
Capital ¥10 million
Sales of products and materials and buildings
maintenance service496-1, Ittan-gosewari, Nishi-biwajima-cho,Nishikasugai-gun, Aichi 452-0007 Japan
Phone: 52-503-7016 Fax: 52-504-2785

Meiden Information Systems, Ltd.
Capital ¥50 million
Engineering and programming of software
1-17, Osaki 2-chome, Shinagawa-ku,
Tokyo 141-8565 Japan
Phone: 3-5487-2331 Fax: 3-5487-2104

Meiden Sheet Metal Products Corporation
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

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

MEIDEN HOIST SYSTEM COMPANY,
LTD.
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

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

MEIDEN MEDIAFRONTCORPORATION
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

MEIDEN SINGAPORE PTE. LTD.
Capital S$10 million
Manufacture of transformer and constructing
service5, Jalan Pesawat Jurong Industrial Estate,
Singapore 619363
Phone: 268-8222 Fax: 264-4292

THAI MEIDENSHA CO., LTD.
Capital TB10 million
Constructing service
11th floor, TST Tower Building,
21 Viphavadi-Rangsit Road, Soi Cuei Phung
Jatujak, Bangkok 10900, Thailand
Phone: 2-273-8954 Fax: 2-273-8966

MEIDEN ELECTRIC (THAILAND) LTD.
Capital TB70 million
Constructing service
896 Moo 2, Bangpa-in Industrial Estate,
Udomsorayuth Rd., Klongjig, Bangpa-in,
Ayudhaya 13160, Thailand
Phone: 35-258258 Fax: 35-221388

2001 Annual Report

38Corporate
Data

Board of Directors(As of June 28, 2001)

Corporate Name

ChairmanPresident

MEIDENSHACORPORATION(Kabushiki Kaisha Meidensha)

Keiji Kojima

Shigeo Seko

Executive
Vice President

Executive
Vice President

Keiji Kataoka

Mineo Itakura

SeniorManaging
Director

SeniorManaging
Director

Koji Yano

Toru Nakamura

Head OfficeRiverside Building, 36-2,
Nihonbashi Hakozakicho, Chuoku,
Tokyo 103-8515 JapanFounded
1897

Common StockPar Value ¥50 ($0.40)
Authorized 576,000,000 shares
Issued202,025,158 shares¥17,070 million($137,661 thousand)SeniorManaging
Director
Toyoaki Ishii

Shareholders
19,049Transfer AgentManaging Directors

Kensuke Ikuji
Masaaki Oishi
Jiro Iwashita

Hiroyasu Yagi
Masaoki Hino
Toru Niwa

Directors

Masao Kamei
Kennosuke Goto
Kosuke Sato
Kenji Sasaki

Kenzo Nakamura
Tatsujiro Matsumoto
Tadashi Sanada

Senior Corporate Auditors

Masaaki Obana
Masahiro Fuke

Takaharu Tokunishi

Corporate Auditors

Haruhisa Kawabe

Yojiro Yamashita

The Chuo Mitsui Trust andBanking Co., Ltd.

2001 Annual Report39