ANNUAL REPORT 2003
For the year ended March 31, 2003

MEIDENSHA CORPORATION

Ever since its founding in 1897, Meidensha Corporation has been working on the relentless pursuitof new technology and product developments and witnessed steady growth. Our product offerings
cover a wide area, such as generators, substation equipment, electronic equipment and informationequipment. Our mission is not only to provide these products but also to recommend the bestsolutions on the basis of what a customer values best. In order to realize these best solutions, we
engage in the supply of various products and provide related services such as engineering, facility
management (including operation and maintenance), repair and product-life support.

Financial Highlights .......................................................... 3
Message from Management ............................................... 4
Review of Operations......................................................... 6
R&D Review ................................................................... 12
Financial Section.............................................................. 13
Overseas Offices and Affiliates ......................................... 37
Consolidated Subsidiary Companies ................................ 38
Corporate Data ................................................................ 39
Board of Directors ........................................................... 39

Financial Highlights
Years ended March 31
Thousands of
U.S. dollars

Millions of yen
2003

2002

2001

2003

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

¥184,853¥200,075¥196,983$1,540,441

Net Income (Loss) ..............................................

924(3,906)(2,645)7,700

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

4.58

(19.34)(13.09)0.04

Cash Dividends Paid ..........................................

—

—

—

—

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

197,140

205,221212,105

1,642,833

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

7,465

7,622

8,192

—

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 ¥120 = U.S.$1, the approximate exchange rate prevailing on the Tokyo Foreign Exchange Market as of March 31, 2003. See No.1 of Notes to Consolidated Financial
Statements.
Net Sales (¥ millions)

Net Income (Loss) (¥ millions)

Total Assets (¥ millions)2003 Annual Report3Message from Management
The Japanese economy staged a modest export-driven recovery in fiscal 2002. Corporate earnings also recovered, because of efforts to cut fixed costs and aggressive corporate restructuring programs. However, domestic
private consumption was still sluggish and the employment situation remained severe, while corporate capital
investment slowed. At the same time, Iraq-related developments and the significant decline in share prices cameamid growing concerns that Japan would continue to experience deflation even from the latter half of the fiscal
year. As such, the business climate surrounding the corporate sector remained severe with uncertainty about theeconomic outlook.
Under these economic conditions, Meidensha Corporation made vigorous efforts to boost sales throughout
the company. However, sales for fiscal 2002 were 184,853 million yen (consolidated basis), or 7.6 % lower thanthose of the previous fiscal year.
We made corporation-wide efforts to cut expenses, reduce costs and raise productivity. As a result of these
efforts, we returned to profitability after six semiannual periods, with our income for the period before taxes andother adjustments amounting to 1,003 million yen (consolidated basis) and net income for the period amounting
to 924 million yen (consolidated basis).
With regard to dividends for shareholders, management regrets that the Company was unable to post a dividend.
Under these circumstances, Meidensha Corporation merged with Meiden Engineering Co., Ltd. on April 1,
2003. Demand in recent years has remained sluggish owing to such factors as the reduction in capital investment
by electric power companies, the decline trend of public investment and the prolonged recession. Meanwhile, ourcustomers have been accelerating their concentration of corporate resources in core business sectors as part oftheir efforts to improve their management efficiency. In addition, they are making progress in reducing the life
cycle costs of their facilities to improve their asset efficiency and are inclined to outsource their facility management which includes operation, administration, maintenance and other operations.
The aim of this merger is to allow us to respond to the change of market landscape to take advantage of themutual engineering resources comprehensively and efficiently, such as system and plant control technologies, andservice technologies, including those of maintenance, all within the MEIDEN Group. This merger will enable us
to provide high-quality, highly reliable solutions and services to address all stages of life cycle of the facilities of ourcustomers so that we could raise the added value of our businesses and strengthen our profitability.

2003 Annual Report4In addition, Meidensha Corporation commenced its new medium-term management plan, the “Challenge
and Create Plan” in July 2003. The basic policy of the medium-term management plan is to secure steady profits
through new business model and increase our corporate value. To this end, we will aim first to eliminate our losses
carried forward and to realize the dividend payments at the earliest possible time, these being the company’s
major challenges. Furthermore, we will strive to improve our capital efficiency by reducing liabilities to strengthen
our financial position. We will also create new businesses, streamline and reorganize our existing businesses andallocate our corporate resources by focusing on strategically important core business to increase corporate profitability.
While the efforts are being made at Meidensha Corporation, we will also have our group companies review
their businesses to strengthen the group strategy. We will put in place a system that will produce all our groupsynergy with our each business in order to enhance the overall corporate value of the MEIDEN Group.
We ask every shareholder as well as our customers and business partners to continue to give us your guidanceand support.

Shigeo Seko, Chairman

Keiji Kataoka, President
2003 Annual Report5Review of Operations

The Energy Sector is the coremarket segment of the Company with a major impact on
its profitability. Meidensha Corporation is continuously aiming to expand the conventional substationand power generation equipment
business as well as new business sectors. In particular, we are aiming to
be a total energy solutions provider
to address all customers’ energy-related issues.
In the energy sector, there are
growing sales in traction substations
for railways for the Japanese market, emergency generators, and AC/
DC converters for sodium-sulfur
batteries in the power-solutions
field.

500kW Diesel Engine High-Voltage
Generating System

In the renewable energy field,
we have supplied
a 1,500kW wind
power system in
Akita Prefecture.
The plant is popular with a nicknameof “Tenpu Maru.”
We have entered thewind farm businessand started the construction of a
3,000kW wind
power station. We
received several orders for wind en- 196kV Polymer Housed SORESTER
ergy converter
made by REpower
Systems AG in Gertion, in the U.S. market for gas turmany.
In the power generation field, we bine generators, we have received
have developed and orders for newly developed 2-poleinitiated sales of a new turbine generators.
In the transformer field,
type of high-efficiency
all-in-one package Meidensha Corporation has supgenerating system, in plied a newly developed polymer
which an engine, gen- housed surge arrester first unit for
erator, and control 154kV system. This marks a firstpanel are integrated such commercialized product forfor use as an on-site 154kV system in Japan.
continuous operation
generation. In addi-

UPS for NAS Batteries

Akita Civic Wind Turbine
Generator System, Tenpu Maru

2003 Annual Report6Review of Operations

Supervisory Control SystemMeidensha Corporation isenhancing its engineering capabilities to realize
a better water resource environment.
In particular, we have focused on upgrading the needs of water treatment
plants and on expanding the solutions business.
Important issues in this sector
include the wide-area integration ofwaterway facilities, more efficientuse of energy, and outsourcing ofwater treatment plant facility man-Micro Turbine Systemagement. We have been very active
in promoting solutions for this market.
In the wide-area integration field,
we have started selling a newly developed Web monitoring system
which has seen increasing orders. We
have also developed the OPS9000,
a monitoring and control system forour large-scale facilities in water
treatment and industrial processes.
In order to effectively use thepower energy in this sector, we re-ceived orders for a digestion gas
power generating system utilizing
30kW micro gas turbines by
Capstone Turbine Corporation in
California, and for a 1500kW wind
power generation system for a wastewater treatment plant.
In the field of outsourcing ofwater treatment plant facility management, Meidensha Corporation isincreasing its efforts to win orders
for such outsourcing services.

OPS9000 Multi-Windows

2003 Annual Report7Review of Operations

Wholesale-Fresh Produce
Market Information SystemMeidensha Corporation isin strong support of“open system architecture” concept. Following its entry
into wholesale-flowermarket information system, sales of the wholesale-fresh produce market information system commenced.
In addition, we have started
building a next-generation spatiotemporal information management
system called J-STIMS which en-

ables flexible application of geographic data changes in time-series.
In addition, a mobile CRM ASP service has been introduced, which is
aimed at customer management andsales promotion for retail stores, etc.
by utilizing cellular phones.
We have also added three newmodels to MEISWAY SW series ofindustrial switching hubs, andstarted deliveries of these products.
The semiconductor manufactur-

ing equipment market has seen wide
adoption of its products, which are
based on high-perform-ance embedded computers for control applications in various processes.
In addition, Meidensha Corporation
has developed and commenced thesale of a pure ozone generator for
semiconductor manufacturing.

Switching Hub, MEISWAY SW500

Switching Hub, MEISWAY SW700

Switching Hub, MEISWAY SW4000

Spatio-Temporal Information Management System,
J-STIMS

2003 Annual Report8Review of Operations

Low-Speed PM Dynamometer(PMDY-LV220)

In the Industrial Systems Sector,
in the electric motor application
field we have begun deliveriesof flat motors and inverters for HEV
automobiles, and have developed the
THYFREC–VT800 Series of flat
winders using PM motors and thininverters for driving them, for use
in machine-room-less elevators.
250kW PM servo motors andinverters, our record product, have

Flat Gearless Machine(for the machine-room-lesselevator)

also been supplied for kneaders (atype of machine which kneads andmixes together raw materials such as
those for resin molding) as well as
3,700kW motors and high-voltage
inverters for blowers.
In the logistics system field, we
have developed and delivered suchproducts as AGV kits for turning thecarriers used by customers into automated guided vehicles.

THYFREC–VT800

In the dynamometer field, we
have developed and delivered largesized engine benches and chassis
dynamometers complying with exhaust gas regulations for large diesel
engines. We have also developed
dynamometers for building superiortransient response performance systems, providing low inertia on parwith tires.

AGV Kits

2003 Annual Report9Review of Operations

medias Modelslim Model
Intra-Oral Camera, DentaShot

T

he Medical and Welfare Sector is a new emerging market
to Meidensha Corporation,
and we are aiming at expanding ourbusiness there. The following new
products are major product offeringsin order to ensure our growth. “Informed consent” is an important key
word in the medical field today andwe have timely developed and re-Main Menu of “Herusukekun”

leased “DentaShot,” an intra-oral
camera as an “informed consent
tool” between dentist and patient.
We have also developed the system
to support medical clinics realizing
computerization and centralizationof medical and clinical information.
This system provides solutions to integrate various systems such as EPR,
medical accounting, treatment assis-

System Overview
Including Options

tance and medical image data files.
Pr o d u c t s o n s a l e s u c h a s“Herusukekun,” an information aid
system for healthcare service provider and planner, and “Travel Partner,” lightweight fold-away motordriven scooter for the elderly, havebeen popular among various customers.

Dual Monitor Clinical Station

2003 Annual Report10Review of Operations

Thai Rice Hull Power PlantI

n fiscal 2002, the Asian market,
which is Meidensha Corporation’s
major market, showed the steadyeconomic recovery for the first half offiscal 2002 spurred by the increaseof export and private consumption,
but during the second half of fiscal
2002, the expansion momentum ofexport and private consumption subsided and the economy experienced
the gradual slowdown.
In the US power market sector, theindustry is still struggling the oversupply of generation that has depressed
wholesale power prices and further
weakened the demand of generators.
In the automotive market in the US,
which has a big impact on our dynamometer systems sales, the first half offiscal 2002 saw the steady growth of car
sales mostly due to the zero-percent financing and hefty rebates by major auto
manufacturers but the sales showed thegradual downward trend for the second
half of fiscal 2002 due to the economic
uncertainty.
Amid these circumstances, our export decreased, with order totaling

6,874 million yen, a change of 28.9%
down from the previous year and sales
reaching 7,728million yen, down
36.9% from the previous year.
The major products ordered in thefiscal 2002 were as follows:
In the power distribution field, we
received orders for 72 units of
HICLAD–30GA switchgear for Tenaga
National Berhad (TNB) in Malaysia.
In the power generation field, P.T.
Bridgestone Tire Indonesia in Indonesia placed an order for 2 units of 2 MWdiesel generating sets and GE Aero
Energy Products in Texas placed orders
for 23MVA generators to be used with
the GE LM2000PC gas turbine. We
received an order from Hitachi, Ltd.
for 1 unit of 35MVA generator to be
used with the Hitachi H25 gas turbine for Myanmar.
In the field of dynamometer for automobiles in the Korean markets,
Hyundai Motor Company in Korea
placed orders for automotive testing
dynamometer for R & D. We received
orders for torque converter end of line
tester for Korea Powertrain Co., Ltd.
and orders for rear axle tester from Kia
Steel Co. Ltd. In the North American
market, we received orders for FR automatic transmission dynamic tester
from AW North Carolina, Inc. inNorth Carolina and FR engine

dynamometor
from AW Technical Center
USA Inc. inMichigan.
The major
PCDY2
p r o d u c t s (permanent magnet typemanufactured dynamometer)and supplied for automatic transmission
during fiscal tester
2002 were as follows:
In the field of electric railroad substations, we supplied and installed traction substations for Metro Manila
Project, Philippines.
In the power generation field, we
manufactured and installed a 10MW
biomass power generation plant (using rice husk as resource) for Roi-et
Green Company Ltd., Thailand.
In the power distribution field, we
manufactured and supplied 16 unitsof 75MVA transformer for PowerGrid
Limited in Singapore.
In the dynamometer field, we supplied and installed and a HEV transmission tester for Hyundai Motor
Company and #4 end of the line automatic-transmission (A/T) tester for
Hyundai Power Tech Co., Ltd. in Korea. We also delivered a four-wheeldrive chassis dynamometer system inan anechoic room for TRI TechnicalCenter USA, Inc. in Michigan.

Manila Line No. 2

2003 Annual Report11Development Status of Electric Double Layer CapacitorsIn an effort to improve the power supply system,
Meidensha Corporation is developing a high-volt
age, large-capacity capacitor, to be used as an electric power storage medium, that uses electric double
layer capacitors (EDLC). Table 1 shows the specifications and Fig.1 shows the exterior of the newly developed EDLC. The internal resistance of the unit is halfthat of conventional EDLC, owing to the use of newly
developed microporous separators, and a system thatmakes the pressure inside the unit negative through theuse of aluminum laminated film. As a result, we cancut system costs for high power applications that reduces the necessary number of EDLC’s capacitors by
30%. We will further improve the reliability of these
EDLC and develop them for such applications as anenergy storage medium for DC electric railway systemor an anti-instantaneous-voltage-dip equipment.

Table 1 Specifications of the Capacitor (Type 600)
Rated voltage
CapacitanceInternal resistance
Mass
Dimensions

100VDC
7F
0.3Ω
4.6kg
245W × 45H × 350D mm

Fig. 1 EDLC (Type 600)

Laboratory-use Pure Ozone Generators

The pure ozone generator with an ozone
accumulation of 5cc
was developed under theguidance of National Industrial Institute of Advanced
Science and Technology
and generates pure ozone
gas with a purity of morethan 99.9%. The pureozone’s unprecedentedly superior oxidizing ability has
been proven when used in
the treatment process foroxide film formation on a silicon semiconductor thatmade it possible to perform the required task at a temperature 500°C below that used by conventional methods. The newly developed and commercialized equipment is assembled into a compact package of 600W ×
1300H × 700D mm, and intended primarily for use in alaboratory, having an ozone accumulation volume of 5cc,
the same as that of conventional generators. This volume provides high-purity ozone of 3.7kL at 100Pa. In
addition, the equipment uses an automatic operation
scheme, is provided with fail-safe features and has an
optimized experimental schedule made possible by theuse of a timing function.

Fig. 2
Laboratory-use Pure Ozone
Generator

2003 Annual Report12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
Independent Auditors’ Report ......................................... 36
2003 Annual Report13Consolidated
Financial Review
decrease. Selling, general and administrative expenses
totalled 36,322 million yen, a 0.6% decrease. Operating income, therefore, stood at 3,418 million yen.
The final result was a net income of 924 million
yen for this term.

Outline of Profits and Losses
The Japanese economy staged a modest exportdriven recovery in fiscal 2002. Corporate earnings also
recovered, thanks to efforts to cut fixed costs and theimpact of restructuring measures centered on aggressive corporate restructuring programs. However, domestic private consumption was still sluggish and theemployment environment remained severe, while corporate capital investment slowed. To make things
worse, the emergence of the problem in Iraq and thesignificant decline in share prices came amid growing
concerns over a continuation of deflation from thelatter half of the fiscal year. As such, we were unable
to actually feel that the economy had recovered.
Net sales totalled 184,853 million yen, a 7.6% decrease over the previous term. Business sector-based
net sales stood at 30.7% for the Energy Sector, 25.9%
for the Environment Sector, 7.9% for the Info andCommunications Sector, 17.6% for the Industrial Systems Sector, and 17.9% for Others.
The cost of sales was 145,113 million yen, a 9.3%

Financial Conditions
Total assets at the end of March 2003 were 197,140
million yen, a decrease of 8,081 million yen. As aresult of decreased cash and time deposits and marketable securities, of this figure current assets stood at
122,161 million yen, a decrease of 12,093 million
yen. Property, plant and equipment was 40,406 million yen, a decrease of 493 million yen. Total current
liabilities totalled 128,560 million yen, a decrease of
8,206 million yen, and shareholders’ equity stood at
36,827 million yen, an increase of 1,124 million yen.
As a result, shareholder capital ratio increased 1.3
points from 17.4% to 18.7%.

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

2003

2002

¥184,853¥200,075

Net income (loss)

924

Net income (loss) per share (Yen)
Cash dividends paid

4.58—

Depreciation and amortization

Millions of yen
2001

2000

1999

¥196,983¥204,376¥218,354(3,906)(19.34)(2,645)(13.09)(5,761)(28.52)(16,912)(83.71)

—

—

—

—

4,921

4,861

5,102

6,285

6,588

Total assets

197,140

205,221212,105

221,388

235,911

Net property, plant and equipment

40,40640,89939,496

39,61647,057

Shareholders’ equity per share (Yen)

182.36

176.74

192.50206.00182.21

Net sales

2003 Annual Report14

Operational Review
Energy Sector(Millions of yen)

Net sales ¥56,670 million ($473,000 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, and distribution facilities, in establishments ranging from national and local government facilities to railroads,
highways, buildings, construction sites, and so on.

30.7%
01

70,59702

71,587

03

56,76025.9%

Environment Sector

01

51,852

Net sales ¥47,809 million ($398,408 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.

02

47,39703

47,8097.9%
01

14,636

Info and Communications Sector
Net sales ¥14,550 million ($121,250 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

02

13,59503

14,55017.6%
0125,176

Net sales ¥32,547 million ($271,225 thousand)

The Company manufactures and markets products related to manufacturing processes in every typeof manufacturing industry, and, with a focus on electric motor power application products, extends todynamometer instrumentation, industrial robots, automated guided vehicles, and other such areas.

02

32,63403

32,54717.9%
0134,722

02

34,862Others
Net sales ¥33,187 million ($276,558 thousand)

03

33,187

2003 Annual Report15

Consolidated
Balance Sheets
MEIDENSHA CORPORATION AND CONSOLIDATED SUBSIDIARIESMarch 31, 2003 and 2002

Millions of yen
2003
2002

Thousands of
U.S. dollars (Note 1)
2003

AssetsCurrent assets:
Cash and time deposits (Note 15) ............................................
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 .........................................................

¥10,427
1,011¥15,033
1,086$86,892
8,425

5,758
63,109
671
1,046
(229)
27,257
6,590
6,521
122,161

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

47,983525,908
5,592
8,717(1,908)227,142
54,91754,3401,018,008

8,390
42,93865,6481,720(78,290)
40,406

8,278
42,636
74,204
3,369(87,588)
40,89969,917357,817547,067
14,333(652,417)
336,717

12,852
10,867
164
6,256
4,850
(416)
34,573

16,213
2,355
123
6,254
5,173
(50)
30,068107,100
90,558
1,367
52,13340,417(3,467)288,108¥197,140¥205,221$1,642,833

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

See accompanying notes.

2003 Annual Report

16Millions of yen
2003
2002
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 (Note 16) ...........................................
Total current liabilities ........................................................

Thousands of
U.S. dollars (Note 1)
2003¥45,494
5,566¥47,901
7,552$379,117
46,383

13,87929,4597,244
11,553356
4,251
10,758
128,560

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

115,658
245,492
60,367
96,2752,967
35,42589,649
1,071,333

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

10,387
10,931

12,617
9,992

86,55891,092

641

897

5,342

469
240

484
322

3,908
2,000

Minority interests ..........................................................................
Contingent liabilities (Note 10)
Shareholders’ equity (Note 9):
Common stock
Authorized— 576,000,000 shares
Issued and outstanding — 202,025,158 shares ..................
Capital surplus .........................................................................
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 ....................................................

9,085

8,440

75,70817,07012,751
5,756
433
1,145
(316)
(12)
36,827

17,07012,751
4,665
423
1,159
(362)
(3)
35,703

142,250
106,258
47,967
3,608
9,542(2,633)(100)
306,892¥197,140¥205,221$1,642,833

2003 Annual Report17Consolidated Statements of Operations
MEIDENSHA CORPORATION AND CONSOLIDATED SUBSIDIARIES
Years ended March 31, 2003, 2002 and 2001

2003

Millions of yen
2002

2001

Thousands of
U.S. dollars (Note 1)
2003

Net sales (Note 13) .........................................

¥184,853¥200,075¥196,983$1,540,441

Cost of sales (Notes 12 and 13) .....................
Selling, general and administrative
expenses (Notes 12 and 13) .......................

145,113160,016

157,366

1,209,275

36,32236,52535,708302,683

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

3,418

3,534

3,909

28,483

Interest and dividend income ......................
Interest expense ............................................
Gains on marketable securities sold ..............
Write-down of securities ...............................
Loss on disposal of fixed assets .....................
Gain on sales of property, fixed assets ...........
Accident insurance income ...........................
Casualty loss (Note 17) ................................
Gain from division of corporation (Note 18)
Loss from division of corporation (Note 19)
Other ...........................................................

420(1,020)4(2,633)
(134)
8
—
—
7,263
(3,197)(3,126)588(1,106)39(5,243)
(40)
3
7
60
—
—
(1,390)588(1,159)
1,207
(55)
(399)
1
325
(3,112)
—
—
(723)

3,500
(8,500)33(21,942)(1,117)67——
60,525(26,641)(26,050)

Income (loss) before income taxes ....

1,003

(3,548)

582

8,358

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

858
(901)
(43)
122

1,101
(932)
169
189

1,310
1,793
3,103
124

7,150
(7,508)
(358)
1,016

Net income (loss) ...............................

¥924¥(3,906)¥(2,645)$7,700

2003

Yen
2002

2001

U.S. dollars (Note 1)
2003

¥4.58

¥(19.34)¥(13.09)$0.04

Other income (expenses):

Income taxes (Note 14):
Current ........................................................
Deferred .......................................................

Amounts per share of common stock:
Net income (loss)........................................
See accompanying notes.

2003 Annual Report18Consolidated Statements ofShareholders’ Equity
MEIDENSHA CORPORATION AND CONSOLIDATED SUBSIDIARIES
Years ended March 31, 2003, 2002 and 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 ........................
Revaluation reserve for land ............................
Decrease (increase) in treasury stock ...............
Balance at March 31, 2001 ..................................
Net loss ...........................................................
Bonuses to directors and statutory auditors ....
Increase in retained eanings due toreduction of affiliated company ....................
Decrease in retained earnings due toaddition of consolidated subsidiaries .............
Adjustments from translation of foreign
currency financial statements ...............................
Adoption of new accounting standard forfinancial instruments .....................................
Decrease (increase) in treasury stock ...............
Decrease in retained earnings due toreduction of consolidated subsidiaries ...........
Balance at March 31, 2002 ..................................
Net income .....................................................
Bonuses to directors and statutory auditors ....
Increase in retained earnings due toaddition of affiliated companies ....................
Increase in retained earnings due toaddition of consolidated subsidiaries .............
Adjustments from translation of foreign
currency financial statements ........................
Decrease (increase) in treasury stock ...............
Increase in revaluation reserve for land, net of tax ....
Increase (decrease) in net unrealized holding
gains on securities .........................................
Balance at March 31, 2003 ..................................

Balance at March 31, 2002 ..................................
Net income .....................................................
Bonuses to directors and statutory auditors ....
Increase in retained earnings due to addition ..
of affiliated companies ..................................
Increase in retained earnings due to additionof consolidated subsidiaries ...........................
Adjustments from translation of foreign
currency financial statements ........................
Decrease (increase) in treasury stock ...............
Increase in revaluation reserve for land, net of tax ....
Increase (decrease) in net unrealized holding
gains on securities .........................................
Balance at March 31, 2003 ..................................

Millions of yen
Retained Revaluation Net unrealized Foreign currency Treasury
earnings reserve for holding gains
translation
stock
land, net of tax on securities
adjustment¥11,796
¥—
¥—
¥—
¥(0)
(2,645)
—
—
—
—
(55)
—
—
—
—

Number ofshares issued

Common stock

Capitalsurplus

202,025,158——¥17,070——¥12,751
—
—

—

—

—

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———12,751
—
—

(7)
4,665
924
(46)

—
423
—
—

—
1,159
—
—

—
(362)
—
—

—
(3)
—
—

—

—

—

16

—

—

—

—

—

—

—

197

—

—

—

—

—
—
—

—
—
—

—
—
—

—
—
—

—
—
10

—
—
—

46
—
—

—
(9)
—

—
202,025,158—¥17,070—¥12,751—¥5,756

—
¥433

(14)
¥1,145—¥(316)—¥(12)

Number ofshares issued

Common stock

202,025,158——$142,250
—
—

—

—

—

133

—

—

—

—

—

—

—

1,642

—

—

—

—

—
—
—

—
—
—

—
—
—

—
—
—

—
—
83

—
—
—

383
—
—

—
(75)
—

—
202,025,158—$142,250—$106,258—$47,967—$3,608(116)$9,542Thousands of U.S. dollars (Note 1)
CapitalRetained Revaluation Net unrealized Foreign currency Treasury
surplusearnings reserve for holding gains
translation
stock
land, net of tax on securities
adjustment$106,258 $38,875$3,525$9,658$(3,016) $(25)
—
—
—
—
—
7,700
—
(383)
—
—
—
—

—
—
$(2,633) $(100)2003 Annual Report19Consolidated Statements of Cash Flows
MEIDENSHA CORPORATION AND CONSOLIDATED SUBSIDIARIES
Years ended March 31, 2003, 2002 and 2001

2003

Millions of yen
2002

2001

Thousands of
U.S. dollars (Note 1)
2003

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 in allowancesInterest and dividends income
Interest expense
Loss arising from casualty
Accident insurance income
Gain from division of corporation
Loss from division of corporation
Write-down of securities
Merger expense
Decrease in receivables
Decrease (increase) in inventories
Increase (decrease) in payables
Other-net
Sub total¥1,003¥(3,548)¥582$8,358

4,921
894
(420)
1,020
–
–
(7,263)
3,197
2,633
118
10,474(1,744)2,494(2,593)
14,734

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)11,26541,0087,450(3,500)8,500––(60,525)
26,641
21,942983
87,283(14,533)
20,784(21,608)
122,783

Interest income and dividend received
Interest expense paid
Income taxes paid
Accident insurance income
Expenditures from casualty
Merger expense paid
Net cash provided by operating activities

422(1,042)
(480)
–
–
(101)
13,533559(1,094)(1,344)
7
(153)
–
4,426

594
(1,138)(1,152)
325
(721)
–
9,173

3,517
(8,683)(4,000)––(842)
112,775(6,881)(4,562)(6,492)

5,577(4,300)421

5,780(4,521)
402

8,192(73,342)283–
141(5,042)–336(2,565)(2,550)84(73,825)

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(17,809)–22,867(76,492)(10,608)(82,042)(183)(43,275)
129,8424,425$90,992

Investing activities:
Acquisition of marketable securities and investment securities (779)Proceeds from sales of marketable securities
and investment securities
983
Additions to property, plant and equipment(8,801)
Proceeds from sales of property, plant and equipment
34
Proceeds from sale of securities issued by subsidiaries
which caused the change of consolidation scope(306)
Other-net
10
Net cash used in investing activities(8,859)Financing activities:
Increase (decrease) in short-term bank loans
Decrease in commercial paper
Proceeds from long-term debt
Repayment of long-term debt
Other-net
Net cash used in financing activities
Effects of exchange rate changes on cash
Net 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 (Note 15)
See accompanying notes(2,137)–
2,744(9,179)(1,273)(9,845)(22)(5,193)
15,581531¥10,919

2003 Annual Report20Notes to Consolidated
Financial Statements
MEIDENSHA CORPORATION AND CONSOLIDATED SUBSIDIARIESMarch 31, 2003, 2002 and 2001

1. Basis of Consolidated
Financial Statements
MEIDENSHA CORPORATION (the “Company”) and its consolidated domestic subsidiaries maintain their official accounting records in Japanese yen
and in 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 countries of
domicile. Certain accounting principles and practices
generally accepted in Japan are different from International Accounting Standards and standards in othercountries in certain respects as to application and disclosure requirements. Accordingly, the accompanying consolidated financial statements are intended foruse 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 Japanese GAAP from theaccounts 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 madein the consolidated financial statements issued domestically in order to present them in a form which ismore familiar to readers outside Japan.
The consolidated statements of shareholders’ equity for 2003, 2002 and 2001 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, 2003, which was ¥120 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 2003 presentation. These changes had
no impact on previously reported results of operations
or shareholders’ equity.

2. Summary of Significant
Accounting Policiesa)Principles of Consolidation
The accompanying consolidated financial statements include the accounts of the Company and its
28 consolidated subsidiaries in 2003 (24 in 2002 and22 in 2001). 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
the aggregate 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, areevaluated using the fair value when the Company acquired control of the respective subsidiaries.

b)Equity Method
Investments in unconsolidated subsidiaries and affiliated companies (all 20% to 50% owned and cer-2003 Annual Report21

tain others 15% to 20% owned) are accounted for by
the equity method in the year ended March 31, 2003,
2002 and 2001.
Investments in six affiliated companies are accounted for by the equity method in 2003, investments
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. Investments in all other unconsolidated subsidiaries and affiliated companies, that would not have material effect on the consolidated financial statements are statedat cost.

c) Securities
Prior to April 1, 2000, securities listed in Japanesestock markets are mainly stated at the lower of cost or
market. Securities unlisted in stock markets are statedat cost. The cost is determined by the moving-averagemethod.
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 Business Accounting 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 be held tomaturity (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 havetrading securities and held-to-maturity debt securities.
Equity securities issued by subsidiaries and affiliatedcompanies which are not consolidated or accounted
for using the equity method are stated at moving-average cost. Available-for-sale securities are stated atmoving-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 arestated at fair market value and the difference between
fair market value and the carrying amount is recognized as loss in the period of the decline. If the fairmarket value of equity securities issued by unconsolidated subsidiaries and affiliated companies not on theequity 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, suchfair market value or the net asset value will be the carrying amount of the securities at the beginning of thenext 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.
Effective April 1, 2001, the Company and its consolidated subsidiaries applied a new accounting requirement for available-for-sale securities with available fairmarket values under the accounting standard for financial instruments which was adopted in the previous year.
Available-for-sale securities with available fair market values are stated at fair market value. Unrealized
gains and unrealized losses on these securities are reported, net of applicable income taxes, as a separate
component of shareholders’ equity. Realized gains andlosses on sale of such securities are computed 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,

2003 Annual Report22deferred income taxes decreased by ¥708 million, andminority interests in the balance sheets decreased by¥118 million.
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 fairvalue 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 receivable orpayable,(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 value ofthe receivable or payable is recognized 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 translated using 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 executedto hedge a future transaction denominated in a foreign 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 as hedge
and meet certain hedging criteria, the net amount tobe paid or received under the interest rate swap contract is added to or deducted from the interest on theassets or liabilities for which the swap contract is executed.

e)Inventories
Inventories are stated at cost, which is mainly determined by the average method as to raw materials
and supplies and the specific identification method as
to finished products, semi-finished products and workin process.

f ) Property, Plant and Equipment
and Depreciation
Depreciation is mainly computed using the declining-balance method over estimated useful lives except
for buildings acquired after March 31, 1998, which
are depreciated based on the straight-line method overestimated useful lives.

g)Allowance for Doubtful Accounts
Effective from the year ended March 31, 2001,
the Company and its consolidated subsidiaries provide the allowance for doubtful accounts in an amountsufficient to cover possible losses on collection by estimating individually uncollectible amounts and applying a percentage based on collection experience tothe remaining accounts. Previously, the Company
and its consolidated subsidiaries provided the allowance for doubtful accounts as to the individual un-

2003 Annual Report23

collectible amounts in addition to the general allowance calculated 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 theamount 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 thepension 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 and thefair 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 retire-

ment 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 decreased by ¥1,594 million compared with what would
have been recorded under the previous accounting
standard.

i) Income Tax
The Company and its consolidated subsidiaries recognize tax effects of temporary differences between the
carrying amounts of assets and liabilities for tax andfinancial reporting. The provision for income taxes iscomputed based on the pretax income included in the
consolidated statement of operations. The asset andliability approach is used to recognize expected future
tax consequences of temporary differences between the
carrying amounts of assets and liabilities for financial
reporting purposes and the amounts used for income
tax purposes.
Effective from the year ended March 31, 2003, theCompany and some subsidiaries adopted consolidated
tax return system. The Company and some subsidiaries account and represent in accordance with “Temporary Treatment of Accounting for Tax Effects to Be
Applied Under Consolidated Tax Return System(No.1),” issued by the Accounting Standards Board

2003 Annual Report24

of Japan on October 9, 2002, and “Temporary Treatments of Accounting for Tax Effects to Be Applied
Under Consolidated tax Return System (No.2),” issued by the Accounting Standards Board of Japan on
February 6, 2003.

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 BusinessAccounting Deliberation Council on October 22,
1999. Under the revised accounting standard, longterm 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 statements ofoperations 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 aretranslated 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)Treasury Stock and Statutory
Reserves

sal of statutory reserves (Accounting Standards Board
Statement No. 1, “Accounting Standard for Treasury
Stock and Reversal of Statutory Reserves,” issued by
the Accounting Standards Board of Japan on February 21, 2002).
The effect on net income of the adoption of the
new accounting standard was not material.

l) 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, 2003, 2002 and2001, diluted net income per share was not shownsince the Company had no securities with dilutive
effect.
Effective April 1, 2002, the Company and its consolidated subsidiaries adopted the new accounting
standard for net income per share and related guidance (Accounting Standards Board Statement No.
2, “Accounting Standards for Earnings Per Share”
and Financial Standards Implementation Guidance
No. 4, “Implementation Guidance for AccountingStandard for Earnings Per Share,” issued by the Accounting Standards Board of Japan on September
25, 2002).
The effect on net income per share of the adoption of the new accounting standard was immaterial.

m) Statements of Cash Flows
In preparing the consolidated statements of cash
flows, cash on hand, readily-available deposits andshort-term highly liquid investments with maturities that do not exceed three months at the time ofpurchase, are considered to be cash and cash equivalents.
See Note 15 as to reconciliation for cash and time
deposits.

Effective April 1, 2002, the Company adopted the
new accounting standard for treasury stock and rever-2003 Annual Report25

3. Securities
A. The following table summarizes acquisition costs and book values of securities with fair value as of March
31, 2003 and 2002.
(a) Available-for-sale securities;
Millions of yen
Acquisition Book Difference
2003
cost
value
Securities with fair value exceeding book value:
Equity securities¥4,123¥6,812 ¥2,689
Bonds
352
365
13
¥4,475¥7,177 ¥2,702
Other securities:
Equity securities¥4,500¥3,617¥(883)
Bonds
2,229
2,065
(164)
Others102
95(7)¥6,831¥5,777 ¥(1,054)(a) Available-for-sale securities;
Thousands of U.S. dollars
Acquisition Book Difference
2003
cost
value
Securities with fair value exceeding book value:
Equity securities$34,358 $56,766 $22,408
Bonds
2,933
3,042
109
$37,291 $59,808 $22,517
Other securities:
Equity securities$37,500 $30,142 $(7,358)
Bonds
18,575 17,208 (1,367)
Others
850
792(58)$56,925 $48,142 $(8,783)

Millions of yen
Acquisition Book Difference
2002
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)

B. The following table summarizes book values of securities without fair value as of March 31,
2003 and 2002.
(a) Available-for-sale securities;

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

2003
¥152
52
684
21
¥909

Book value
Millions of yen
Thousands of U.S. dollars
2002
2003
¥58
$1,267
144
433
577
5,700
16
175
¥795
$7,575(b) Equity securities issued by subsidiaries and affiliated companies

Non-listed subsidiary securities
Non-listed affiliated securities
Total

2003
¥81
10,786¥10,867

Book value
Millions of yen
Thousands of U.S. dollars
2002
2003
¥275
$675
2,080
89,883¥2,355$90,558

2003 Annual Report

26

C. Maturities of available-for-sale securities with maturities as of March 31, 2003 and 2002.
Year ended
March 31, 2003
Bonds

Year ended
March 31, 2002
Bonds

Year ended
March 31, 2003
Bonds

Within 1 year
¥744

Millions of yen
Over 1 year but
Over 5 years but
within 5 years
within 10 years¥1,093¥20

Over 10 years¥573

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
$6,200Thousands of U.S. dollars
Over 1 year but
Over 5 years but
within 5 years
within 10 years$9,108$167

Over 10 years$4,775

D. Total sales amounts of available-for-sale securities sold, gains and losses, in the years ended March 31,
2003, 2002 and 2001 are follows:

Sales amount
Gains
Losses

2003
¥362
4
(63)

Millions of yen
2002¥2,882
39
(68)

2001
¥5,7801,207—

Thousands of U.S. dollars
2003$3,01733(525)

4. Inventories
Inventories as of March 31, 2003 and 2002 were as follows.

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

Millions of yen
2003
2002
¥2,700¥3,353
4,087
3,378
18,76019,1381,710
2,140

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

¥27,257¥28,009

Thousands of
U.S. dollars
2003$22,500
34,058156,333
14,251$227,142

2003 Annual Report27

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, 2003 and 2002.

6. Long-Term Debt
Long-term debt as of March 31, 2003 and 2002 consisted of the following.

1.738% to 2.6% loans from banks and insurance companies .............
Loans from agricultural cooperative organizations ..............................
Less: Current portion .........................................................................

Millions of yen
2003
2002
¥15,953¥19,679—490(5,566)(7,552)

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

¥10,387

Thousands of
U.S. dollars
2003$132,941—(46,383)¥12,617$86,558

Millions of yen

Thousands of
U.S. dollars¥5,566
2,645
5,327
2,315
100

$46,383
22,04244,391
19,292
833

Millions of yen
¥672
74
3,021
3,010
39
¥6,816

Thousands of
U.S. dollars$5,600617
25,17525,083
325$56,800

The annual maturities of long-term debts as of March 31, 2003 were as follows.
Year ended March 31
2004 .........................................................................................................................
2005 .........................................................................................................................
2006 .........................................................................................................................
2007 .........................................................................................................................
2008 .........................................................................................................................

7. Pledged Assets
The following assets were pledged as collateral at March 31, 2003.
Buildings and structures less related accumulated depreciation ................................
Machinery and equipment less related accumulated depreciation ............................
Land .........................................................................................................................
Investment securities ................................................................................................
Others ......................................................................................................................
Total ....................................................................................................................

Obligations with collateral pledged at March 31, 2003 were as follows.
U.S. dollars
Short-term borrowings .............................................................................................
Long-term debt ........................................................................................................
Total ....................................................................................................................

Thousands ofMillions of yen¥2,7373,700¥6,437

2003 Annual Report$22,808
30,834$53,64228

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 sheets as of March 31, 2003 and 2002 consists of the following:

Projected benefit obligation ................................................................
Unrecognized prior service costs .........................................................
Unrecognized actuarial differences .....................................................
Prepaid pension cost ...........................................................................
Less fair value of pension assets ..........................................................
Less unrecognized net transition obligation ........................................
Liability for severance and retirement benefits ....................................

Millions of yen
2003
2002
¥82,835¥83,813—58(18,848)(6,882)
64—(25,921)(33,869)(27,199)(33,128)¥10,931¥9,992Thousands of
U.S. dollars
2003$690,292—(157,067)
533(216,008)(226,658)$91,092

Included in the consolidated statements of operations for the years ended March 31, 2003, 2002 and 2001 areseverance 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 ...........................................
Amortization of actuarial differences ..................................................
Employee’s contribution .......................................................................
Severance and retirement benefit expenses .........................................

Millions of yen
2003
2002
¥3,645 ¥3,606
2,528
2,652
(853) (1,217)
(4)
(5)
2,459
2,547
489
433
(564)
(583)
¥7,700 ¥7,433

Thousands of
U.S. dollars
2001
2003
¥3,752$30,374
2,658
21,067(1,487)(7,108)
(4)
(33)
2,655
20,492
—
4,075
(598)
(4,700)¥6,976$64,167

Amortization of net transition obligation amounted to ¥496 million ($4,133 thousand) and amortization of
actual differences amounted to ¥2,277 million ($18,975 thousand) due to division of corporation are not included the above table. These amount are included in loss from division of corporation.
The discount rate and the rate of expected return on plan assets used by the Company and its consolidated
subsidiaries are 2.7% to 3.5% and 3.5% to 4.5% for 2003, and 3.5% and 3.5% to 4.5% for 2002, and 3.5% and3.5% to 5.0% for 2001 respectively.
The estimated amount of all retirement benefits to be paid at the future retirement date is allocated equally toeach service year using the estimated number of total service years. Prior service costs are recognized as an expensein equal amounts over 14 years, and actuarial gains/losses are recognized in income statement using the straightline method over 10 to 15 years.

2003 Annual Report29

9. Shareholder’s Equity
Under the Commercial Code of Japan, the entire amount of the issue price of shares is required to be accounted for as capital, although a company may, by resolution of its Board of Directors, account for an amountnot exceeding one-half of the issue price of the new shares as additional paid-in capital, which is included incapital surplus.
Effective October 1, 2001, the Commercial Code provides that an amount equal to at least 10% of cash
dividends and other cash appropriations shall be appropriated and set aside as a legal earnings reserve until the
total amount of legal earnings reserve and additional paid-in capital equals 25% of common stock. The total
amount of legal earnings reserve and additional paid-in capital of the Company has been reached to 25% ofcommon stock, and therefore the Company is not required to provide legal earnings reserve any more. The legal
earnings reserve and additional paid-in capital may be used to eliminate or reduce a deficit by resolution of theshareholders’ meeting or may be capitalized by resolution of the Board of Directors. On condition that the total
amount of legal earnings reserve and additional paid-in capital remains being equal to or exceeding 25% ofcommon stock, they are available for distribution by the resolution of shareholders’ meeting. Legal earnings
reserve is included in retained earnings in the accompanying financial statements.
The maximum amount that the Company can distribute as dividends is calculated based on the nonconsolidated financial statements of the Company in accordance with the Commercial Code.

10. Contingent Liabilities
Contingent liabilities at March 31, 2003, were as follows.
Repurchase of note discounted and endorsed ...........................................................
Guarantees of loans from banks to employees ..........................................................
Repurchase of note transfered ...................................................................................

Millions of yen¥1,878918
2,613

Thousands of
U.S. dollars$15,650
7,650
21,775

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 same manner as operating leases. Certain related information are summarized as follows:(i) Assumed amounts (inclusive of interest) of acquisition cost, accumulated depreciation and net bookvalue as of March 31, 2003 and 2002, are summarized as follows.
Millions of yen
2003
2002
Assumed acquisition cost
Machinery and equipment .................................................
Others ................................................................................
Accumulated depreciation .......................................................

Thousands of
U.S. dollars
2003

¥162
1,611
(897)

¥174
1,736
(913)

$1,35013,425(7,475)

¥876

¥997

$7,3002003 Annual Report30

(ii) Future minimum lease payments, inclusive of interest, at March 31, 2003 totaled ¥876 million ($7,300
thousand), including ¥365 million ($2,792 thousand) due within one year.
(iii) Lease payments, which are equal to assumed depreciation charges for the years ended March 31,
2003, 2002 and 2001, were ¥335 million ($3,042 thousand), ¥438 million 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, 2003 totaled ¥1,192
million ($9,933 thousand), including ¥268 million ($2,233 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 theyears ended March 31, 2003, 2002 and 2001 stood at ¥7,012 million ($58,442 thousand), ¥8,765 million, and¥8,810 million, respectively.

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, 2002, a part of businesses, which was included in Energy in the previous year isreclassified to Industrial Systems, due to the change of Company’s organization.
As a result, net sales of Energy decreased by ¥7,997 million, net sales of Industrial Systems increased by sameamount, and, operating income of Energy increased by ¥1,826 million, operating loss of Industrial Systems
increased by same amount.
Information by industry segments for the years ended March 31, 2003, 2002 and 2001 are as follows:Year ended
March 31, 2003
Net sales:
Outsidecustomers
Inter-segment
Total
Operating expenses
Operating income(loss)
Identifiable assets
Depreciation andamortization
Capital expenditures

Millions of Yen
Industrial
Systems
Others

Total

EnergyEnvironment

Info andCommunications

Eliminations or
Corporate

Consolidated¥ 56,760¥ 47,809¥ 14,550¥ 32,547¥ 33,187¥ 184,853¥ ––¥ 184,853

3,948
60,70860,9832,477
50,28642,654

3,284
17,83420,203

4,115
36,66237,85030,014
63,201
61,436

43,838228,691
223,126(43,838)(43,838)(41,691)––
184,853
181,435¥ (275)¥ 7,632¥ (2,369)¥ (1,188)¥ 1,765¥ 5,565¥ (2,147)¥ 3,418¥ 44,053¥ 25,318¥ 20,430¥ 26,179¥ 38,653¥ 154,633¥ 42,507¥ 197,140

1,555

269

805

625

631

3,885

1,036

4,921

1,278

270

974

2,665

665

5,852

1,522

7,374

2003 Annual Report31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

Year ended
March 31, 2003
Net sales:
Outsidecustomers
Inter-segment
Total
Operating expenses
Operating income(loss)
Identifiable assets
Depreciation andamortization
Capital expenditures

Millions of yen
Industrial
Systems
Others

Total

EnergyEnvironment

Info andCommunications

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

Eliminations or
Corporate

Consolidated

Millions of yen
Industrial
Systems
Others

Total

EnergyEnvironment

Info andCommunications¥ 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

Eliminations or
Corporate

Consolidated

Thousands of U.S. dollars
Industrial
Systems
OthersEnergyEnvironment

Info andCommunications$473,000$398,408$121,250$271,225$276,558$1,540,441$–$1,540,441

32,900505,900
508,192

20,642
419,050
355,450

27,366
148,616
168,358

34,292
305,517
315,417250,117526,675
511,966

365,317
1,905,758
1,859,383(365,317)(365,317)(347,425)–
1,540,441
1,511,958$(2,292)$63,600$(19,742)$(9,900)$14,709$46,375$(17,892)$28,483$367,109$210,983$170,250$218,158$322,108$1,288,608$354,225$1,642,833

12,959

2,242

6,708

5,208

5,258

32,375

8,633

41,00810,650

2,250

8,117

22,208

5,542

48,767

12,68361,450Total

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

2003 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 42.69%, 40.87% and 40.87% for the years ended March 31, 2003, 2002
and 2001, respectively. Significant components of deferred tax assets and liabilities of the Company and its consolidated subsidiaries as of March 31, 2003 and 2002 are as follows.
Millions of yen
2003
2002
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 ......................................
Unrealized holding gains on securities .........................................................
Deferred gain from division of corporation .................................................
Other ...........................................................................................................
Gross deferred tax liabilities ......................................................................
Net deferred tax assets ..............................................................................

Thousands of
U.S. dollars

2003¥8,520
3,569
3,609
1,504
1,819
19,021(2,956)
16,065¥7,933
3,581
3,357
1,175
1,551
17,597(5,524)
12,073$71,000
29,74230,075
12,53315,158
158,508(24,633)
133,875

1,322
690
1,127
80
3,219
¥12,846

1,363
708
–
48
2,119
¥9,954

11,017
5,750
9,392
666
26,825$107,050

The following table summarizes the significant differences between the statutory tax rate and the Company’s effective tax rate financial statement purposes for the years ended March 31, 2003, 2002 and 2001.
Statutory tax rate
Permanent difference (Social expenses, etc.)
Per capita inhabitant tax
Net increase (decrease) in valuation allowance
Decrease in deferred tax assets due to the change of statutory tax rate
Increase in division of corporation
Decrease in net operating loss carry forwards of subsidiaries due toadoption of consolidated tax return system
Other-net
Effective tax rate2003
42.69%
11.35
14.08(233.83)(8.83)
116.15

2002
–%
–
–
–
–
–

2001
40.87%
34.62
23.97
433.80––56.90(2.79)–4.28%–––%–(0.17)
533.09%Difference between the statutory tax rate and the Company’s effective tax rate for the year ended March 31, 2002 is
not shown due to loss before income taxes.
Effective April 1, 2004, statutory tax rate in Japan will be changed to 39.54% because of the amendment of theJapanese local tax law. The effects on consolidated financial statements for 2003 resulted in a decrease of ¥150 million($1,250 thousand) in long-term deferred tax assets (net of long-term deferred tax liabilities), a increase of ¥162 million($1,350 thousand) in deferred income taxes, a increase of ¥11 million ($92 thousand) in net unrealized holding gains on
securities, a decrease of ¥15 million ($125 thousand) in deferred income tax liabilities on revaluation reserve for land, aincrease of ¥5 million ($42 thousand) in minority interests, and a increase of ¥9 million ($75 thousand) in revaluation
reserve for land, respectively.
By adoption of consolidated tax return system, during the consolidated accounting fiscal years which start during
the period from April 1, 2002 through March 31, 2004, it became necessary to add 2% of the surtax rate on theconventional the corporate tax. Reflecting this change, in calculating the deferred tax asset and deferred tax liability theaddition of surtax rate 2% was taken into account.
Due to this change, effective tax rate for the corporate tax in the fiscal 2003 to be used in the calculation of thedeferred tax asset and the deferred tax liability is mainly changed from 27.37% to 29.20%. The amount of deferred tax
asset at the end of the fiscal 2002 (amount deducting the deferred tax liability) showed the increase of ¥232 million($1,933 thousand) and the decrease of ¥232 million ($1,933 thousand) in the adjustment amount relating to corporate tax, etc. in the fiscal 2002.

2003 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, 2003 and 2002 are as follows:
Thousands of
U.S. dollars

Millions of yen

Cash and time deposits
Short-term securities
Other current assets (repurchase agreement)
Bonds with maturities of exceeding three months
Cash and cash equivalents

2003¥10,427
1,011
320
(839)
¥10,919

2002¥15,033
1,086
–
(538)
¥15,5812003$86,892
8,425
2,667(6,992)$90,992

16. Effect of Bank Holiday on March 31, 2002
As financial institutions in Japan were closed on March 31, 2002, amount 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

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

18. Gain from Division of Corporation
Gain from division of corporation is due to transfer substation business of the Company to Japan AE Power
Systems Corporation.

19. Loss from Division of Corporation
Loss from division of corporation for the year ended March 31, 2003 of the following:
Recognized actuarial differences
Recognized net transition obligation
Loss on disposal of inventories
Other

Millions of yen

Thousands of
U.S. dollars¥2,277496
255
169¥3,197$18,975
4,133
2,125
1,408
$26,641

2003 Annual Report3420. Related Party Transactions
Significant transaction with related parties for the year ended March 31, 2003 are as follows:
Millions of yen
Japan AE Power Systems Corporation
Japan Motor & Generator Co., Ltd.

Purchase offinished products

Accounts
payable¥5,5594,662¥4,5482,313

Purchase offinished products

Japan AE Power Systems Corporation
Japan Motor & Generator Co., Ltd.

$46,325
38,850Accounts
receivable

Division of
corporation¥1,855
¥823
4,585
1,702
Thousands of U.S.dollars¥7,263—

Accounts
payable$37,900
19,275

Supply ofMaterial

Supply ofMaterial$15,458
38,208

Accounts
receivable

Division of
corporation$6,85814,183$60,525—

21. Subsequent Event
The Company and MEIDEN ENGINEERING CO., LTD. merged at April 1, 2003. The Company took
over assets, liabilities, other rights and obligations and employee of MEIDEN ENGINEERING CO., LTD.
(1) The Company issued 44,227,546 shares.
(2) In connection with these mergers, common stock did not change and capital surplus increased to ¥13,933
million ($116,108 thousand).
(3) In connection with these mergers, assets acquired and liabilities assumed were as follows:
Thousands ofMillions of yen

U.S.dollars
Assets:Current assets¥17,500$145,833
Property, plant and equipment
6,846
57,050Intangible assets
114
950
Other assets
4,532
37,767
Total assets
28,992
241,600
Liabilities:
Current liabilities(8,630)(71,917)Long-term liabilities(4,802)(40,017)
Total liabilities(13,432)(111,934)
Net assets¥15,560$129,666
Delivered money due to merger is included in current liabilities.

22. Other Matters
The Company is facing litigations relating to bid-rigging cases in the water treatment projects. The citizens in
13 local governments including Machida-city, Tokyo filed lawsuits against nine (9) companies including theCompany for the indemnification for damage to each local government, total ¥2,062 million ($17,183 thousand)which includes the attorney’s fee and excludes the delay penalty of 5% per annum.
Out of these 13 cases of litigation, the Supreme Court referred the 11 cases back to the original courts underwhich 10 cases are still under dispute at the district courts and 1 case reached an out-of-court settlement with therepresentatives of the citizens on May 28, 2003 after the case was sent back to the Osaka High Court. The
settlement reached between the group of manufacturers including the Company and the representative was topay the total ¥54 million ($450 thousand) as the settlement money and the attorney’s fee and to terminate thelitigation by this settlement. The charged amount against the Company for the settlement was ¥24 million ($200
thousand).
The balance 2 cases are still in dispute at the district courts after the cases were sent back from the high court.

2003 Annual Report35Independent Auditors’ Report
To the Shareholders and the Board of Directors of MEIDENSHA CORPORATION:
We have audited the accompanying consolidated balance sheets of MEIDENSHA CORPORATION andsubsidiaries as of March 31, 2003 and 2002, and the related consolidated statements of operations, shareholders’equity and cash flows for each of the three years in the period ended March 31, 2003, expressed in Japanese yen.
These consolidated financial statements are the responsibility of the Company’s management. Our responsibility
is to express an opinion on these consolidated financial statements based on our audits.
We conducted our audits in accordance with auditing standards generally accepted in Japan. Those standards
require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements
are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes assessing the accounting principles used andsignificant estimates made by management, as well as evaluating the overall financial statement presentation. We
believe that our audits provide a reasonable basis for our opinion.
In our opinion, the consolidated financial statements referred to above present fairly, in all material respects,
the consolidated financial position of MEIDENSHA CORPORATION and subsidiaries as of March 31, 2003
and 2002, and the consolidated results of their operations and their cash flows for each of the three years in the
period ended March 31, 2003, in conformity with accounting principles generally accepted in Japan as describedin Note 1 to the consolidated financial statements.
Without qualifying our opinion, we draw attention to the following.
(1) As discussed in Notes 2(c), 2(d), 2(g), 2(h) and 2(j) to the consolidated financial statements, effective April
1, 2000, the MEIDENSHA CORPORATION and domestic subsidiaries prospectively adopted the newJapanese accounting standards for financial instruments, employees’ severance and retirement benefits,
and the revised Japanese accounting standard for foreign currency translation.
(2) As discussed in Note 2(c) to the consolidated financial statements, effective April 1, 2001, MEIDENSHACORPORATION and domestic subsidiaries adopted the new Japanese 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.
(3) As discussed in Note 21 to the consolidated financial statements, MEIDENSHA CORPORATION and
MEIDEN ENGINEERING CO LTD. merged at April 1, 2003.
The consolidated financial statements as of and for the year ended March 31, 2003 have been translated into
United States dollars solely for the convenience of the reader. We have recomputed the translation and, in our
opinion, the consolidated financial statements expressed in Japanese yen have been translated into United States
dollars on the basis set forth in Note 1 to the consolidated financial statements.

Tokyo, Japan
June 25, 2003

2003 Annual Report36Overseas Offices and Affiliates(As of July, 2003)● Overseas office / ● Affiliate

Hong Kong● 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

Indonesia● P.T. MEIDENENGINEERINGINDONESIA
19th Floor, Summitmas I,
Jl. Jenderal Sudirman Kaveling61-62, P.O.BOX 6920/KBY/
Summitmas I
Jakarta Selatan 12190, Indonesia
Phone: 21-520-0612/1239
Facsimile: 21-520-0240

Korea

Thailand● MEIDENSHACORPORATION● THAI MEIDENSHA CO.,LTD.

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

Malaysia● MEIDEN ELECTRIC
ENGINEERING SDN.
BHD.
G. 03, Ground Floor, Wisma Academy,
4A, Jalan 19/1
46300 Petaling Jaya,
Selangor Darul Ehsan, Malaysia
Phone: 3-79554646
Facsimile: 3-79546466

Singapore● MEIDEN SINGAPORE
PTE. 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● MEIDEN ELECTRIC(THAILAND) LTD.
898 Moo 2, Bangpa-in lndustrial
Estate, Udomsorayuth Rd.,
Klongjig,
Bangpa-in, Ayudhaya 13160, Thailand
Phone: 35-258258~262
Facsimile: 35-221388

The United Kingdom● MEIDEN EUROPE LTD.
New Wave Complex, Bradbourne
Drive, Tilbrook, Milton Keynes
MK7 8BN, England, U.K.
Phone: 1908-276000
Facsimile: 1908-276010

The United States● MEIDEN AMERICA, INC.
The American Center Building, Suite 1110
27777 Franklin Road,
Southfield, Michigan 48034, U.S.A.
Phone: 248-353-2540
Facsimile: 248-353-3150
2003 Annual Report37Consolidated Subsidiary Companies
MEIDEN ENGINEERING CO., LTD.
Capital ¥2,360 million

MEIDEN SOFTWARE CORPORATION
Capital ¥90 million

Meiden Sheet Metal Products Corporation
Capital ¥90 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

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

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.
Capital ¥50 million

MEIDEN HOIST SYSTEM COMPANY, LTD.
Capital ¥60 million

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

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

MEIDEN SYSTEM ENGINEERING Co., Ltd.
Capital ¥50 million※ MEIDEN SINGAPORE PTE. LTD.
Capital S$10 million

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, 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 ¥130 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 ¥100 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

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

Manufacture and sales of transformers,
switchgears and circuit-breakers andrelated 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$ 320thousand
Engineering and constructing service※ MEIDEN EUROPE LTD.
Capital £750 thousand

MEIDEN SYSCON Co., Ltd.
Capital ¥20 million

Sales of electric products and components

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 PACIFIC (CHINA) LTD.
Capital HK$10 million
Sales of electric products and components
and constructing service

Meiden Kiden Kogyo Co., Ltd.
Capital ¥20 million

Plus five domestic subsidiaries.

Machining and repairing service
127, Nishishinmachi,
Oota-shi, Gunma 373-0847 Japan
Phone: 276-20-6371 Fax: 276-32-7999※ : Please see page 37 to find contact information for overseas offices and affiliates.

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

2003 Annual Report

38Corporate
Data

Board of Directors

Corporate Name

ChairmanPresident

MEIDENSHACORPORATION(Kabushiki Kaisha Meidensha)

Shigeo Seko

Keiji Kataoka

Executive
Vice
President

Executive Vice
President(As of June 25, 2003)

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

Common Stock

Kensuke Ikuji

Koji Yano

Authorized 576,000,000 shares
Issued202,025,158 shares¥17,070 million($142,250 thousand)Shareholders
19,084

Transfer Agent
The Sumitomo Trust & Banking
Co., Ltd.

Executive
Vice
President

Executive
Vice
President

Masaaki Oishi

Masaoki Hino

Directors

Tetsuro Kawakami

Kenzo Nakamura

Senior Corporate Auditors
Masahiro Fuke

Takaharu Tokunishi

Tadashi Sanada

Corporate Auditors

Haruhisa Kawabe

Yojiro Yamashita

2003 Annual Report392003 Annual Report40