Japan Securities Depository Center, Inc.

FINANCIAL STATEMENTS (JASDEC)
Balance Sheets
March 31, 2002 and 2001

Thousands ofYen

2002
AssetsCurrent Assets:
Cash and Deposits
Accounts Receivable
Advance Payment
Securities
Other
Fixed Assets:
Capital Assets
Other Fixed Assets:
Building and Structures
Furniture and Tools
Security Deposits
Computer Software
Other
Total Fixed Assets
Total Assets
Liabilities
Current Liabilities:
Short-term Loan Payable
Accounts Payable
Accrued Income Taxes
Other
Fixed Liabilities:
Long-Term Debt
OtherTotal Liabilities¥2001¥17,155
2,358,614
14,886
2,042,027
98,7544,531,436

2002

$

14,74024,586604—
239,932

3,019,000

3,019,000

22,657

66,7012,228,692
374,061
4,774,486
42,0907,486,030
10,505,030¥ 15,826,023

69,2762,136,300
355,234
3,266,326
1,155,241
6,982,377
10,001,377¥ 14,532,813

500
16,7262,807
35,831316
56,18078,837$ 118,769¥¥$

9,000,000
2,454,394
228,658
79,71911,762,771—
106,252
106,252¥ 11,869,023—
3,944,447—
74,386
4,018,833

67,542
18,4201,716
598
88,276

6,433,570
123,4106,556,980¥ 10,575,813

$

—
797
797
89,0733,019,000¥3,019,000$

22,657

938,000—
938,000¥ 3,957,000¥ 15,826,023

1,014,943(76,943)938,000¥ 3,957,000¥ 14,532,813

Net Assets
Capital Assets¥
Other Net Assets:
Retained Earnings brought Forwardfrom the Preceding Term
Net Income (Loss) for the Current Term
Total Net Assets
Total Liabilities and Net Assets

1,964,037
3,276,134
80,522—300
5,320,993

Thousands of
U.S.dollars

7,039
—
7,039
$ 29,696$ 118,769

U.S. dollar amounts have been translated, for convenience only, at the rate of ¥133.25=US$1 as of March 31, 2002.

ANUUAL REPORT 2002

Statements of Revenue and Expenditure
Years ended March 31, 2002 and 2001

Thousands ofYen2002
RevenueFund Operations
Account-Opening Fees
Income from Fees (before Refund):Deposits
Book-Entry Delivery
Withdrawals
Custody
Other
Refund of Fees
Income from Fees (after Refund)
Other Income
Total Revenue (A)Revenue before Refund (A’)
Expenditure
General Administration Expenses
Business Expenses:
Computers
Outsourcing Services
Stock Name Transfer Expenses
Other¥5,340
37,600Thousands ofU.S.dollars

2001¥6,823
38,800

2002
$

40
282

504,480
8,990,297
150,532
5,184,338
2,567,495
17,397,142

446,205
6,102,618
143,259
5,681,481
1,679,441
14,053,004

3,785
67,4691,130
38,907
19,268130,560(5,810,146)
11,586,996
14,634¥ 11,644,570¥ 17,454,716(3,235,322)
10,817,682
35,743¥ 10,899,048¥ 14,134,370(43,603)
86,957110$ 87,389
130,992¥¥$

1,348,850

1,157,436

10,123

3,145,294
2,723,130
1,729,789
424,453
8,022,666
2,038,310
6,086

3,081,891
2,678,035
1,881,970
265,933
7,907,829
1,117,697
793,029

Total Expenditure (B)¥ 11,415,912
Net Income (Loss) Before Income Taxes (A)-(B) 228,658
Provision for Income Taxes
228,658
Net Income (Loss)¥—Net Income Before Income Taxes
before Refund (A’)-(B)¥ 6,038,804¥ 10,975,991(76,943)—¥(76,943)$

85,673
1,716
1,716—¥$

45,319Depreciation
Other Expenses

3,158,379

23,604
20,436
12,982
3,185
60,207
15,297
46$

U.S. dollar amounts have been translated, for convenience only, at the rate of ¥133.25=US$1 as of March 31, 2002.

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Japan Securities Depository Center, Inc.

Notes to Financial Statements
NOTES TO THE STATEMENTS OF REVENUE AND EXPENDITURE
1. Japan Securities Depository Center (JASDEC) is a non-profit foundation and does not operatea profit-making business as defined by Japanese tax law.
2. The fee charged to participants for opening the initial account with JASDEC is ¥1 million, andthat for additional sub-accounts is ¥300,000 each.

NOTES TO THE BALANCE SHEETS
1. The capital assets appearing under “Fixed Assets” consist of fixed bank deposits and Money Management Fund.
2. Cumulative depreciation charges for the other fixed assets are as follows:

Thousands ofYen

2002
Building and structures
Furniture and tools
OtherTotal¥

63,454
2,344,159
2,832¥ 2,410,446

Thousands of
U.S.dollars

2001¥

217,637
3,727,628
2,266¥ 3,947,531

2002
$$

476
17,592
21
18,089

3. Short-term loan payable and long-term debt as of March 31, 2002 and 2001 consist of the follows:
Thousands of
Yen

2002

Thousands of
U.S.dollars

2001

2002

Short-term debt:
Japan Securities Depository Center Inc.
Banks¥ 2,400,000
6,600,000¥——$18,01149,531¥ 9,000,000¥—$67,542¥¥ 6,433,570$—

Long-term debt:
Members of the Stock exchangesof Tokyo, Osaka and Nagoya—

ANUUAL REPORT 2002

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Report of Independent Accountants

Chairman of the Board of Directors
Japan Securities Depository CenterWe have audited the accompanying balance sheets of Japan Securities Depository Center(JASDEC) as of March 31, 2002 and 2001, and the related statements of revenue and expenditure for the years then ended, all expressed in Japanese Yen. Our audits were made in accordance with auditing standards generally accepted in Japan and, accordingly, included such testsof the accounting records and such other auditing procedures as we considered necessary in thecircumstances.
In our opinion, the financial statements referred to above present fairly the financial positions ofJASDEC as of March 31, 2002 and 2001 and the results of its operations for the years thenended in conformity with accounting principles generally accepted in Japan for Public-ServiceCorporation and Business Corporation , and with the Articles of Association of JASDEC.

ChuoAoyama Audit Corporation
Tokyo, JapanMay 18, 2002

Notice to Readers:
The accompanying financial statements are not intended to present the financial positions of the JASDEC andresults of its operations in accordance with accounting principles and practices generally accepted in countries andjurisdictions other than Japan. The standards, procedures and practices used to audit such financial statements arethose generally accepted and applied in Japan.