Summary of Consolidated Financial Results for Year to January 2005
March 15, 2005

Company name:

Pigeon Corporation

Listings: Tokyo Stock Exchange (First Section)

Stock code: 7956
(URL http://www.pigeon.co.jp)
President:
Seiichi Matsumura
Contact:
Yasushi Takashima, Managing Officer

Headquarters: Tokyo

TEL ++81-3-3252-4114

BOD meeting for approving financial result March 15, 2005
U.S. accounting standards:
Not applicable

１. Consolidated Financial Results (Years to January 31 2005 and 2004)(¥ millions, rounded down)(1) Performance (year to January 31)
Net sales

Operating income

Change (%)

2005
2004

40,71934,156

(
(

19.2)
3.3)

Net income

Ordinary income

Change (%)

2,714
2,651

(
(

2.4)
6.2)

Net income pershare (¥)

Net income
per share(fully diluted)
(\)

74.22
63.59

74.10
63.53

Change (%)

2,621 (
2,504 (
Return on
equity (%)

4.7)
8.0)

Ordinary
Ordinary
income toincome tototal assets
net sales (%)(%)

Change (%)

2005
2004

1,494
1,270

( 17.6 )( 49.5 )

7.7
7.0

8.1
8.1

6.4
7.3

Notes: 1. Equity in earnings of affiliates:¥44 million (Jan. 2005); ¥28 million (Jan. 2004)
2. Average shares outstanding (cons.):
20,138,055 (year to Jan. 2005); 19,985,943 (year to Jan. 2004)
3. Changes in accounting principles:
Not applicable
4. Figures in parentheses represent year-on-year percentage change.

(2) Financial Position (at January 31)
Total assets

2005
2004

34,38230,212(¥ millions, rounded down)
Shareholders' equity

19,997
18,647

Equity-assets ratio (%)

58.2
61.7

Equity per share (¥)

989.43932.65

Note: Shares outstanding at year-end (consolidated): 20,211,283 (Jan. 2005); 19,994,017 (Jan. 2004)(3) Cash Flows (year to January 31)
Cash flows fromoperating activities

2005
2004

4,286
2,156

(¥ millions, rounded down)
Cash flows frominvesting activities(2,850)374

Cash flows fromfinancing activities(1,881)(2,427)

Cash and cash equivalents
at year-end

2,768
3,223

(4) Scope of Consolidation and Equity-Method Application
Consolidated subsidiaries: 13; Nonconsolidated subsidiaries (equity method): 0; Affiliates (equity method): 2(5) Changes in Scope of Consolidation and Equity-Method Application
Consolidated: 3 (newly included); 1 (excluded)
Equity method application: 0 (newly included); 0 (excluded)
２. Forecast for Fiscal (Year to January 31, 2006)
Net salesInterimFull year

20,90042,700(¥ millions, rounded down)

Ordinary income

1,350
3,000

Net income

700
1,650

(Reference) Forecast net income per share (full year): ¥81.63
In this document, statements other than historical facts related to plans, forecasts, and strategies are based on information
available at the time of writing. The corporation cannot provide guarantees or commitments for these forward-looking
statements. Due to various factors, actual results may differ significantly from those anticipated in this document.
-1-

Corporate Group
The Pigeon Group consists of the Pigeon Corporation (the parent company), 13
consolidated subsidiaries, and two equity-method affiliates. The Group is engaged
mainly in the manufacture, purchase, and sale of baby care, child care, and healthcare
products, as well as in the provision of child-rearing and healthcare support services.

Management Policies
Basic Policies
Based on its corporate commitment, “providing the gift of love to all,” thePigeon Group is dedicated to helping those in need—while pregnant, giving birth, andrearing children, as well as in old age. Our policy is to develop our business bydelivering products and services that address the needs of these people. Fulfilling ourrole as a “lifestyle support company focusing on child rearing,” we are leveraging the
Pigeon brand and the quality of our management to build a high corporate profile that isrecognized worldwide. This is our medium-term corporate vision.
The period under review was the final year of our medium-term management
plan, Corporate Value Creation 21, covering the three years to January 2005. During theyear, we steadily implemented top-priority business initiatives and maximized synergies
derived from the Group’s comprehensive strengths.

Profit Appropriation Policy
The Pigeon Group regards the return of profits to shareholders—made possible byongoing improvements to Groupwide profitability—as an important management
priority. Our policy is to make the most effective use of retained earnings. We actively
invest these funds in growth areas, new businesses, and research and development, as
well as in reinforcing our operating foundation by streamlining production facilities tolower costs and raise product quality. With respect to appropriating earnings, our policy
is to actively return profits to shareholders. We do this by paying stable and ongoing
cash dividends, with the emphasis on raising dividend levels where possible. In the year
under review, we shifted our emphasis from stable dividends based on parent-company
results to a dividend policy centering on consolidated results—as announced on March-2-

7, 2004. Based on this policy, we plan to pay annual dividends of ¥20.00 per share,including the ¥8.00 interim dividend already paid.

Medium-Term Strategies
Building on the achievements of Corporate Value Creation 21, our medium-termbusiness plan just ended, we announced our second business plan for the 21st century
on January 19, 2005. Under the new plan, we are seeking achieve annual consolidated
revenues of ¥50 billion within the next three years. Below is an outline of the new plan.

Second Medium-Term Plan of the 21st Century(February 2005–January 2008)
Basic Policy
Our aim is to reinforce the individuality and competitiveness of our core business—thebaby and child care segment—while strengthening Groupwide synergies by actively
developing businesses in growth areas. In the process, we will seek to maximize ourcorporate value on a global scale.
(1) The baby and child care segment is central to our Group management plan and acore part of our effort to improve corporate value. In this business, our basic strategic
focus will be on “value creation.”(2) We will position the following three businesses as growth areas: child-rearing
support, overseas operations, and home healthcare.
(3) We will reform our internal systems and reallocate managerial resources to best
address the changing composition of our earnings.
Key Performance Targets (Consolidated)
Our consolidated performance targets for the year ending January 2008, the final termof the plan, are as follows.
Net sales: ¥50 billion
Gross profit ratio: 39.5%
Operating income ratio: 8%
Ordinary income ratio: 7.5%
ROA (ratio of ordinary income to total assets): 10%-3-

Issues to Address
In the second half of the year under review, the pace of economic expansion began toslow, creating a less-than-optimistic business environment for the Pigeon Group.
Meanwhile, the number of births showed no signs of recovering despite various
measures by the government to support child-rearing. For these reasons, we feel thatconditions will remain severe. Despite the difficult operating environment, the Groupwill strive to achieve performance targets outlined in its new medium-term businessplan and thus meet the expectations of all shareholders.

Corporate Governance
Basic Stance
Pigeon recognizes that sustained improvements in corporate value require enhanced
management efficiency and transparency. It is also crucially important to reinforce themanagement surveillance function to ensure that the Corporation pursues its
performance targets while maintaining an appropriate balance between shareholder,customer, and employee value. To this end, Pigeon is undertaking various initiatives
aimed at ensuring sound corporate governance.
Current Status
The Corporation is building a corporate governance framework based on a system ofBoard of Directors and Board of Corporate Auditors, as well as an internal auditing
system.
The task of the eight-member Board of Directors is to address changes in thebusiness environment by ensuring that management decisions are made rationally andefficiently. Its overall aim is to ensure sustained growth and establish a robust operating
foundation.
In addition to the Board of Directors, which handles control and supervision,
Pigeon has a system of executive officers, responsible for execution of business. By
separating the decision-making and supervision function from the business executionfunction, we are working to ensure sound corporate governance. Problems are quickly
solved at weekly Executive Council meetings, where issues are discussed based on-4-grass-roots perspectives. In addition, Board of Directors meetings are attended byexternal and internal auditors, whose opinions are actively sought in an effort toreinforce the Board’s ability to supervise the execution of business.
The Board of Corporate Auditors, which has four members (including two
external ones), performs a meticulous auditing function. Depending on their specificresponsibilities, auditors attend Board of Directors meetings, where they listen to
discussions, receive important documents for perusal, and scrutinize the Corporation’s
business and financial position. In addition, the Audit Office, which handles the internal
auditing function, conducts various audits of legal compliance, job implementation, andinternal surveillance systems, as well as information security and other items. The
Office makes evaluations and proposals as necessary.
The Pigeon Group is currently working to improve its information security
and personal information protection systems, which it regards as crucial to the effective
delivery of products, services, and information to customers. For example, we are
striving to acquire the Privacy Mark, which is bestowed upon businesses withappropriate mechanisms in place to protect personal information. To this end, we have
set up a Personal Information Protection Committee and plan to form a Groupwideorganizational structure aimed at earning Privacy Mark status.
Keen to enhance the transparency of our operations, we maintain proactive
investor relations (IR) activities and pursue swift and accurate information disclosurefor individual and institutional investors. Our IR activities include information meetings
to announce our business results (held semiannually), explain our medium-termbusiness plan, and describe new products and businesses. We also regularly update our
website and in 2004 launched overseas IR activities. On January 16, 2005, weundertook a reorganization. This entailed upgrading the Corporate Planning Office todivisional status in order to reinforce its responsibilities and functions. Within the new
Corporate Planning Division, we also set up an IR Office, whose role is actively
communicate with Pigeon Group stakeholders and spearhead information disclosure andresponses pertaining to overall operations.

-5-Performance and Financial Position

Performance
Environment and Results
In the latter half of the fiscal year under review, growth in the Japanese economy
showed signs of slowing, due to rising oil prices and other factors. Nevertheless, adramatic improvement in corporate earnings helped boost capital spending, andpersonal consumption generally expanded, albeit moderately.
It was the final year of the period covered by the Pigeon Group’s
medium-term management plan, Corporate Value Creation 21. During year, we pursued
aggressive business strategies and built internal frameworks allowing swift, correct
decision-making even in times of drastic changes in the operating environment. We also
focused on reinforcing the cost-competitiveness of the Group.
The trend of declining prices continued, giving rise to difficult businessconditions. This was particular evident in the area of consumables in the baby and childcare and healthcare markets—the Pigeon Group’s principal areas of involvement. In thechild-rearing support segment, by contrast, we broadened the scope of our business bytaking advantage of deregulation and our competitive edge. Overseas, as well, we built
on our positive interim results, making particular progress in China and elsewhere in
East Asia.
Consolidated net sales for the year totaled ¥40,719 million, up 19.2% from theprevious year. Ordinary income grew 4.7%, to ¥2,621 million, and net income jumped
17.6%, to ¥1,494 million.

Segment Review
Baby and Child Care
Sales in this segment amounted to ¥31,100 million, up 11,4% from the previous year.
This segment is classified into three categories: baby and child care services, overseas
business, and child-rearing support services.

-6-Baby and child care services: In this category, the Group’s principal area of businessdevelopment, market conditions remained difficult as domestic birthrates declined andprices, especially of consumables, continued falling. Under these conditions, we
actively introduced new products as we sought to enhance the emotion and joy ofcustomers, from giving birth to raising children. New products launched during the year
included the market’s first electric toothbrush from babies. We also unveiled a line ofbaby shoes, the result of intensive research into the feet shape and walking habits of
toddlers. These and other new products earned solid support from retailers andconsumers alike.
Overseas business: While exports to Taiwan, Hong Kong, and elsewhere fell below
expectations, we reported favorable performances in China and South Korea. Sales ofbreastfeeding-related products, baby bottles and nipples, and skincare products wereparticularly good. U.S.-based Lansinoh Laboratories, Inc., which became a subsidiary in
April 2004, took advantage of its competitive edge in breast creams and breast pads toenter the European market and report a solid performance.
Child-rearing support: In April 2004, all of Japan’s national hospitals and nursing
homes were privatized, and the operation of their 116 child-minding centers was
entrusted to Pigeon Corporation. Our performance in this category improved
significantly as a result. During the year, we also made good progress in the area of
in-company child-minding operations. We opened our second center within the facilitiesof Toyota Motor Corp. and our second center for a financial institution—Saikyo Bank,
Ltd., based in Yamaguchi Prefecture. We will use our competitive edge to accelerate
expansion of this business in the future. Meanwhile, the pace of privatization of publicchild-minding centers is quickening. In January 2005, Pigeon Hearts Co., Ltd., a wholly
owned subsidiary, took over the operations of its first Tokyo Metropolitan Government-approved child-minding center—now named Pigeon Land Fuchu.
Healthcare
Sales in this segment slipped 73.3%, to ¥6,458million.
Price competition among manufacturers of consumables, centering on our-7-mainstay incontinence pads, remains fierce. Although we undertook proactive
marketing efforts to raise market share and expand sales, our results fell short of our
projections. In February 2004, we acquired Tahira Co., Ltd., a maker oflifestyle-enhancement products for the elderly. Our plan is to make healthcare a central
part of the Pigeon Group’s operations by exploiting synergies with Tahira in the areas ofproduct development, sales, and distribution. In the year under review, however, we
incurred slight losses due to the liquidation of some unprofitable businesses.
Nevertheless, Pigeon Manaka Co., Ltd., a consolidated subsidiary that provides
healthcare dispatch services for the elderly, continued building close ties with its local
communities in Tochigi Prefecture. That company became profitable as a result.

OthersSales from other operations totaled ¥2,860 million, up 22.3%.
Pigeon Will Co., Ltd., a consolidated subsidiary that sells maternity
undergarments, expanded its operations in the year under review. During the period, we
also launched a new series of cosmetics for mothers who put their babies first. Thisdrew a warm market response, which contributed to increased segment revenues.
Sales by Segment (Consolidated)(¥ millions)Year to Jan. 05

Year to Jan. 04

ChangeChange (%)

Baby & child care

31,10027,919

3,181

11,4

Healthcare

6,758

3,898

2,859

73.3

Others

2,860

2,338

522

22.3

Total

40,71934,156

6,563

19.2

Outlook
The fiscal period to January 2006 is the first year of our second medium-term businessplan for the 21st century, announced on January 19, 2005. For the year, we expect
conditions to remain difficult in the domestic baby and child care business, with little
prospect of recovery in the birthrate. In response, we will harness synergies among
Group companies to maintain a framework conducive to increased revenues and-8-earnings and thus maximize our corporate value on a global basis.
For the year, we forecast consolidated net sales of ¥42.7 billion (up 4.9%),
ordinary income of ¥3.0 million (up 14.4%), and net income of ¥1.65 billion (up10.4%).

In this document, statements other than historical facts related to plans, forecasts, and strategies
are based on information available at the time of writing. The Corporation cannot provide
guarantees or commitments for these forward-looking statements. Due to various factors, actual
results may differ significantly from those anticipated in this document.

-9-Consolidated Balance Sheets
At January 31, 2004(¥ thousands)
ASSETSI Current Assets
1. Cash and time deposits
2. Notes and accounts receivable
3. Inventories
4. Deferred tax assets
5. Other receivables
6. Other
7. Allowance for doubtful accounts
Total Current Assets
II Fixed Assets
1. Tangible Fixed Assets(1) Buildings and structures
Accumulated depreciation(2) Machinery and transportation equipment
Accumulated depreciation(3) Tools, furniture and fixtures
Accumulated depreciation(4) Land(5) Construction in progress
Total Tangible Fixed Assets
2. Intangible Fixed Assets(1) Consolidation adjustment account(2) Software(3) Other
Total Intangible Fixed Assets
3. Investments and Other Assets(1) Investment securities(2) Insurance reserve(3) Bankruptcy claims(4) Deferred tax assets(5) Other(6) Allowance for doubtful accounts
Total Investments and Other Assets
Total Fixed Assets
Total Assets

3,223,703
7,544,352
2,876,839
415,040
371,559
144,016(158,743)
14,416,767

9,190,609
4,878,035
6,946,569
4,617,112
3,407,838
2,869,104

At January 31, 2005
% of
total

2,123,616(205,840)

540,045
6,102,501
52,582
13,299,140

1,310
275,678
25,661
264,630

2,351,346
764,345
55,1403,170,832

2,351,346
160,623
21,2762,533,246

1,021,838
516,726
715,561
135,812318,669(585,185)
2,123,423
15,795,518 52.3
30,212,286 100.0

1,067,568
499,891
647,555
248,730
327,009(623,123)
2,167,631
18,637,604 54.2
34,382,522 100.0

45,729(16,835)(68,005)
112,918
8,339(37,938)
44,2082,842,085
4,170,235

4,900,092
1,055,645
483,840
1,187,984
145,930
337,31430,955729,851
8,871,615

6,160,627
859,903657,946
1,258,967
753,861
517,332
31,200879,589
11,119,426

1,260,534(195,742)
174,106
70,982607,930
180,017244
149,737
2,247,811

2,329,457
538,734
5,826,823
26,921
13,034,510

29.4

32.3

1,473,212
401,531
167,152
329,339

570,672
90,34731,562
28,23057,067－(57,067)

637,125
2,344,616
11,216,231

7.7
37.1

507,7422,878,977
13,998,404

8.4
40.7

(129,382)
534,361
2,782,172

348,5441.2

386,383

1.1

37,8395,199,597 15.1
5,145,608 15.0
10,149,781 29.5
(5,159) (0.0)(431,795) (1.2)(60,296) (0.2)
19,997,734 58.2
34,382,522 100.0－
10,7701,173,316
8,365(55,020)
212,792
1,350,223
4,170,235

5,199,597 17.2
5,134,837 17.0
8,976,465 29.7
(13,525) (0.0)(376,775) (1.3)(273,089) (0.9)
18,647,510 61.7
30,212,286 100.0- 10 -(455,411)
1,052,774
550,741
164,287(139,691)
14,138141,311
1,328,150

167,821902,540
311,184
135,590
301,109

SHAREHOLDERS' EQUITYI Capital stock
II Additional paid-in capital
III Retained earnings
IV Net unrealized gains (losses) on securities
V Foreign currency translation adjustment
VI Treasury stock, at cost
Total Shareholders' Equity
Total Liabilities, Minority Interests and Shareholders' Equity

45.8(¥ thousands)

4,480,395－
603,72233,863
637,585

LIABILITIESI Current Liabilities
1. Notes and accounts payable
2. Short-term borrowings
3. Current portion of long-term debt
4. Accrued amount payable
5. Income taxes payable
6. Accrued bonuses to employees
7. Returned goods adjustment reserve
8. Other current liabilities
Total Current Liabilities
II Long-Term Liabilities
1. Long-term borrowings
2. Deferred tax liabilities
3. Employees' retirement benefits
4. Retirement benefits for directors and corporate auditors
5. Difference between investments costs and equity in net
assets acquired
6. Other
Total Long-Term Liabilities
Total Liabilities
MINORITY INTERESTS
Minority Interests

2,768,291
8,597,127
3,427,581
579,327
231,868
158,154(17,432)
15,744,917

9,921,489
5,441,094
7,248,697
5,125,080
3,487,094
2,947,048

4,312,574

% of
total

(¥ thousands)

47.7

ChangeConsolidated Statements of Income

I Net Sales
II Cost of Sales
Gross Profit
Reversal of returned goods adjustment reserve
Transfer to returned goods adjustment reserve
Gross Profit (adjusted)

III Selling, General and Administrative Expenses
Operating Income

Year ended January 31, 2004

Year ended January 31, 2005

% of
total
100.0
59.5
40.5

% of
(¥ thousands)
total
40,719,607 100.0
25,047,114
61.5
15,672,492
38.5
30,95531,200(244)
0.0
15,672,248
38.5
12,957,900
31.8
2,714,348
6.7(¥ thousands)
34,156,379
20,322,935
13,833,444
36,20030,955
5,244
13,838,688
11,186,876
2,651,812

0.0
40.5
32.7
7.8

Change(¥ thousands)
6,563,227
4,724,179
1,839,048(5,488)
1,833,560
1,771,024
62,535

IV Other Income
1. Interest income
2. Dividend income
3. Rental income
4. Amortization of consolidation adjustment account
5. Equity in earnings of nonconsolidated subsidiaries
and affiliates
6. Other

4,504
10,701
177,506

4,853
10,189149,106

7,762－

28,97444,098102,911332,3620.9

131,129

339,377

0.8

7,015

431,898
2,621,827

1.1
6.4(47,371)
116,922

168,5190.4

11,254

177,145
2,613,202

0.4
6.4(484,365)
612,542

1,027,026

2.5

398,703

V Other Expenses
1. Interest expense
2. Sales discounts
3. Rental income-related costs
4. OtherOrdinary Income

77,515
185,320
139,596
76,836479,269
2,504,905

1.4
7.3

86,899204,525
115,317
25,156

VI Extraordinary Income
1. Reversal of allowance for doubtful accounts
2. Gain on sales of investment securities
3. Other

102,400
44,642
10,221

157,2640.5

158,774－9,745

VII Extraordinary Loss
1. Loss on dispoal of fixed assets
2. Loss on business adjustment
3. Amortization of difference arising from change inaccounting for retirement benefits
4. Devaluation loss on investment securities
5. Retirement benefit system modification expense
6. Other
Income before Income Taxes
Income Taxes
Adjustment for Corporate Tax
Less: Minority Interests in Earnings of Consolidated
Subsidiaries
Net Income

45,551－

100,076
56,38088,505－20,000473,654
33,799－－20,688389,555
238,767

661,5102,000,659

1.9
5.9

628,323

1.9

101,3810.3

91,4360.2(9,944)

1,270,955

3.7

1,494,738

3.7

223,783- 11 -

980,197
46,829

Consolidated Retained Earnings
Year ended January 31, 2004 Year ended January 31, 2005(¥ thousands)(¥ thousands)

Change(¥ thousands)

CAPITAL SURPLUS
I

Balance at Beginning of Year
Addition paid-in capital at
beginning of year

5,133,608

5,133,608

5,134,837

5,134,837

1,229

1,229

1,229

10,77010,7709,540

5,145,608

10,770II Increase in Capital Surplus
Gain on disposal of treasury
stock
III Balance at End of Year5,134,837

RETAINED EARNINGSI Balance at Beginning of Year
Consolidated surplus at
beginning of year

8,033,592

8,033,592

8,976,465

8,976,465

942,872

1,270,955

1,270,955

1,494,738

1,494,738

223,783

321,422(6,660)10,149,781

1,173,316

II Increase in Retained Earnings
Net income
III Decrease in Retained Earnings
Cash dividends paid
Bonuses for directors andcorporate auditors
IV Balance at End of Year319,674
8,408

321,422
328,082
8,976,465- 12 -－

Consosidated Statements of Cash Flows
Year ended January 31,
2004(¥ thousands)

Year ended January 31,
2005(¥ thousands)(¥ thousands)

2,000,659
1,461,246

2,613,202
1,316,123

612,542(145,123)(7,762)

282,591

290,354(99,788)(117,997)(18,208)(694)

167,934

168,628(471,324)(231)

471,093(8,060)(26,567)(18,506)(15,206)
5,293(15,042)－

163(5,293)(28,974)(44,098)(15,123)

77,515(44,642)
20,00045,551(75,322)(109,103)(345,163)(69,183)

86,899－－100,076(109,475)(37,843)554,984
106,166

9,383
44,642(20,000)
54,525(34,152)
71,259900,147
175,350(8,408)－

8,408(1,807)110,393112,200

810,068(246,549)(1,056,618)

27,914
3,162,807
14,675(70,375)(950,947)
2,156,160(13,136)
4,727,430
14,535(83,122)(372,555)
4,286,288(41,051)
1,564,623(140)(12,746)578,391
2,130,127－(681,877)

393,607(843,796)

393,607(161,919)

47,597

13,476(34,120)(277,131)(580,009)
2,363,869(70,781)(383,209)(4,990)71,391(82,201)(106,078)
575,019(2,292,478)(11,420)

I Cash Flows from Operating Activities
Income before income taxes
Depreciation
Amortization of difference between investment
costs and equity in net assets acquired
Increase (decrease) in allowance for doubtful
accounts
Increase (decrease) in accrued bonuses to
employees
Increase (decreas) in employees' retirement
benefits
Increase (decrease) in reserve for retirement
benefits to directors and corporate auditors
Interest and dividend income
Gain on sales of securities
Equity in losses of nonconsolidated subsidiaries
and affiliates
Interest expense
Gain on sales of investment securities
Loss on devaluation of investment securities
Loss on disposal of fixed assets
Decrease (increase) in trade receivables
Decrease (increase) in inventories
Increase (decrease) in trade payables
Increase (decrease) in consumption tax payable
Payment of bonuses to directors and corporate
auditors
Decrease (increase) in bankruptcy claims
Increase (decrease) in employees' accrued
retirement benefits
Other
SubtotalInterest and dividends received
Interest paid
Income taxes paid
Net Cash Provided by Operating Activities
II Cash Flows from Investing Activities
Proceeds from reversal of time deposits
Acquisition of property, plant and equipment
Proceeds from sales of property, plant andequipment
Acquisition of intangible fixed assets
Acquisition of investment securities
Proceeds from sales of investment securities
Payment to life insurance fund for directors
Proceeds due to maturity/cancellation of
insurance reserve
Acquisition of shares in subsidiaries
Acquisition of shares in newly consolidated
subsidiaries
Loans advanced
Collection of loan receivables
Other
Net Cash Provided by (Used in) Investing
Activities
III Cash Flows from Financing Activities
Increase (decrease) in short-term bank loans
Repayment of short-term bank loans
Increase (decrease) in long-term debt
Repayment of long-term debt
Payment of cash dividends
Payment of cash dividends to minority
shareholders
Proceeds from sales of treasury stock
Acquisition of treasury stock
Net Cash Used in Financial Activities
IV Effect of exchange rate changes on Cash andCash Equivalents
V Net Change in Cash and Cash Equivalents
VI Cash and Cash Equivalents at Beginning of Year
VII Cash and Cash Equivalents at End of Year- 13 -

Change74,235

246,773

172,537(478,613)(97,400)

381,213－(2,195,936)(2,195,936)(194,036)
180,001(9,116)(11,134)
37,181
5,611

182,902(142,820)
14,727374,138(2,850,626)(3,224,765)

2,627,100(2,775,005)
300,000(2,214,180)(320,154)

5,873,296(6,839,181)
1,300,000(2,082,796)(325,238)

3,246,195(4,064,176)
1,000,000
131,384(5,083)(69,766)(31,495)

38,27025,850(1,184)(2,427,339)

226,446(2,883)(1,881,853)

200,596(1,698)545,486(17,193)(9,219)7,974

85,766
3,137,936
3,223,703(455,411)
3,223,703
2,768,291(541,177)
85,766(455,411)