P E ACE

JAPAN

HARM O N Y

ANNUAL REPORT 2002
For the year ended March 31, 2002

S UM

阪和興業 株式会社

Corporate Profile

Since its establishment in 1947, Hanwa has contributed to the development of the Japanese
economy as a trading company handling industrial materials, such as steel — the company’s
leading product — and nonferrous metals, food products, lumber, machinery, petroleum,chemical products, and cement. Our steel division in particular is equipped with quay andwarehouse transportation facilities as well as complete processing sites that enable us toboth handle large quantities purchased from major steel manufacturers and to cater to thespecial needs of our customers. This is why we have long been known in Japan as a “steel
trading company.”
Recently, with the changes and diversification of the domestic market, we havedemonstrated new capabilities as a trading company by handling seafood products, rides foramusement parks, and nonferrous metal recycling. We have created numerous businesses inthese fields that command the top market share. The basic strategies underlying suchsuccess are internationalization, business diversification, and value enhancement.
Hanwa’s ideal function as a trading company is to be more than just a distributor. Based on
our insight of the international market and information-gathering capabilities, we aim todevelop new products, as well as coordinate ventures among businesses. As a trading company
with such operating skills at our disposal, we will continue to develop new unique businesses.

About the CoverContents

The Chinese character for the syllable wa
of Hanwa’s name has four meanings inJapanese: Japan, harmony, sum (as inaddition) and peace.
These key words capture the essence ofHanwa’s ideals: to trade products that meetthe needs of customers through a business
relationship with the countries of the world,
incorporating new ideas into the products tobring peace and harmony to people’s lives.

Financial Highlights ......................................................... 1
President’s Message ........................................................ 2
Review of Operations ..................................................... 4
Topics ................................................................................... 8
Financial Section ............................................................... 9
Network of Hanwa Co., Ltd. ....................................... 28
Directors and Statutory Auditors ................................ 29

HANWA CO., LTD., AND CONSOLIDATED SUBSIDIARIES

Financial Highlights
For the years ended March 31, 2002 and 2001

Thousands of
U.S. dollars

Millions of yen

Net sales
Operating income
Net income

¥

2002

2001

2002

2001

625,614 ¥
6,517
3,587

689,106 $ 4,695,039 $ 5,171,527
10,283
48,90877,171
1,945
26,91914,597

Note: The U.S. dollar amounts represent translations, for convenience only, of yen amounts at the rate of ¥133.25=$1.00.

Net sales

Operating income

Net income(Millions of yen)

(Millions of yen)

(Millions of yen)

689,106
700,000

11,000629,717625,6144,000

10,283

3,587

10,000

8,727

6,517
1,945
5,000

595

0

0

’00

’01

’02

0

’00

’01

1

’02

’00

’01

’02

President’s Message

The Japanese economy suffered from steadily
worsening deflationary pressures during the last fiscal
year, with declining exports and equipment investment
caused by the slowdown of the US economy, bydecreased demand from the information andtelecommunications industries, and by the lack ofimprovement in consumer demand in light of theincreasingly uncertain labor situation. In addition,
financial institutions had to cope with a poor credit
situation caused by the need to decrease bad debts andby a sudden increase of hidden losses in their stock
holdings caused by the decline of stock prices.
Overseas, the situation is also quite difficult, with
the impact of last year’s terrorist attacks in the U.S.
adding to that economy’s slowdown, as well as similar
trends in Asia and Europe.
Our group (Hanwa Co., Ltd. and its consolidated
subsidiary companies) aggressively promoted ourmarketing efforts by making the best use of ourmanagement resources, bolstering our financial
strength, taking extraordinary care in extending tradecredits, and by strengthening our customer
relationships. In spite of all this, our consolidated sales
reached only ¥625,614 million (down 9.2% from lastyear). This was largely due to the poor businessenvironment characterized by weak demand anddeclining market prices.
Despite our considerable efforts to carefully scrutinizeof our current trades and to emphasize profitability in
trading, operating income dropped to ¥6,517 million(down 36.6% year to year). At the same time, financial
income improved drastically and we accounted for aloss of ¥2,037 million, which was a reserve for losses
incurred by the repurchase of previously sold real estate
and we adopted the tax effect accounting method.
Consequently, we arrived at a net income of ¥3,587
million (up 84.4% year/year). Business results by productsegment are explained below.

Steel
The environment for the steel business has not been
good: public investment and private sector equipment
investment were both slow; domestic demand for
housing, automobiles and electric appliances remained
stagnant; and market prices in general, and for steel
sheets in particular, remained weak. As a result, sales inthis segment were down by ¥33,853 million (9.1%)
from the previous year to ¥338,591 million, andoperating income decreased by ¥916 million (14.9%
year/year) to ¥5,228 million.
Non-ferrous Metals
Production adjustments by IT-related equipment
manufacturers and the shift in market conditions for
non-ferrous metals led to a sales decline of ¥8,988
million (down 14.2% year/year) to ¥54,247 million, andoperating income by ¥560 million (down 30.8%
year/year) to ¥1,262 million.
Foods
As deflationary pressures mounted and cheapermerchandise became more popular, sales for the fiscal
year decreased by ¥13,848 million (down 13.8% fromthe previous year) to ¥86,171 million, and income
declined by ¥747 million (33.6%) to ¥1,477 million.
Petroleum and Chemicals
Chemicals in this division benefited from the increase inimports and from new customer accounts, butpetroleum encountered a sudden decline in demand in
the latter half of the fiscal year. Consequently, sales fellby ¥2,480 million (2.3%) to ¥106,528 million, andoperating income by ¥718 million (60.8%) to ¥463
million.

2

Other businessAmong other sectors, lumber has been performing
poorly due to the slowdown of housing demand andthe decline of unit prices. Sales decreased by ¥4,323
million (9.7%) from the previous year to ¥40,077
million, and operating income by ¥980 million (33.1%)
to ¥1,984 million.
In the current economic environment, marked byincreasing globalization and borderless business, we asa trading company have an important role to play in thelogistics economy. Our Group intends to strengthen our
various businesses, our logistics and our processing
capabilities. At the same time, we will strive to create
new lines of business and to expand our capabilities
into related areas.
We intend to speed up our decision-making process
and execution in order to strengthen ourcompetitiveness. We will build up an organization inwhich the check-and-balance function helps to properly
control our business. We are determined to implementa management style that emphasizes increasing
profitability and a more substantial return on equity.
In January 2001, we set out a three-year mediumterm business plan for the period from fiscal 20022004, and we are working hard to achieve the targets
and to realize the vision embodied in this plan.
In July of 2001, we concluded a program to decrease
the amount of our paid-up capital and wrote off theaccumulated losses on our balance sheet. Based on a
resolution adopted at our General Stockholders
Meeting held on June 27, 2002, we resumed dividend
payments of 5 yen per share. We intend to continue
regular dividend payments and will try not only tomaintain a stable financial profile but actually to
improve it. In addition, we will boost the functionalityof our own unique electronic commerce trading system,“hanwa-steel.com” and expand the lines of products
traded there. We plan to improve customer
relationships while simultaneously strengthening andrationalizing our logistics capability. We will also be

aggressively pursuing new business plans in such areas
as recycling and other new and peripheral areas as partof an effort to fortify our corporate structure andproduce stable profits.
While the Japanese economy seems to have halted
its downward trend, no significant improvement has
been seen in the level of corporate profits, personal
incomes, or the overall employment situation. It is likelythat the current difficult situation will continue forsome time to come, which precludes us sounding
optimistic at this stage.
Our corporate group will continually strive torationalize our management across a broad front,
pursuing efficiency, working to emphasize theimportance of profits, managing trade risks toovercome the current difficulties in the businessenvironment, and building a firm managementfoundation to support a profitable corporate structure.
August 2002

Shuji Kita
President & C.E.O.
Hanwa Co., Ltd.
北 修爾
取締役社長
阪和興業株式会社

3

Review of Operations

Net Sales by Product (Billions of yen)
Lumber, machinery, and other¥40 (6.4%)

Petroleum and chemicals ¥107 (17.1%)

Foods

Steel bars and shapes

Net sales¥626(100.0%)¥86 (13.7%)

Non-ferrous metals¥127 (20.3%)

Steel plates and sheets ¥142 (22.7%)
Special steels,
wire products, steel pipes, andsteelmaking raw materials ¥70 (11.2%)¥54 (8.6%)

Steel related products

Year ended March 31, 2002

¥339 (54.2%)

¥689
45

¥630
39

¥626
9
10

75

40
10

Lumber, machinery, and other7
Petroleum and chemicals

10

4

1

00

86
Foods
63
52

68

16

2

54

Non-ferrous metals

70

Special steels,
wire products, steel pipes, andsteelmaking raw materials

72

16

6
14

2
Steel plates and sheets

13

0

13

4

12

7
Steel bars and shapes

’00

4

’01

’02

Steel (Domestic)
Review of fiscal year 2002
In fiscal year 2002, total steel productionin Japan decreased by approximately
4.5% over the previous year. In parallelwith this, the Division’s sales value
showed a decrease of 10.6% from theprevious year due to the sluggish
demand in the domestic market and thecollapse of unit prices due to excess
production capacity.
Steel Bars and Shapes
The first half of this fiscal year saw adecrease in demand both from publicworks projects due to financial reforms
in government expenditures and fromweak investments in the private sector,
as well as weakness in housing
construction.
However, there were increasing orders
for steel scrap and steel billets fromneighboring countries. This helped tobolster the domestic market price in thelast half of the year.
Sheet Products and Special SteelThe automobile industry andshipbuilding industry remained
comparatively firm. Production in theelectric appliance industry was weak as
more factories were transplanted toChina. This resulted in a collapse of steel
prices and a huge deficit among major
Japanese blast furnace mills.

Steel (Overseas)
Outlook for fiscal year 2003
In fiscal year 2003, expect that sales inthe Domestic Steel Division will recovergradually. There will be announcementsof an upturn in prices in all steel
products, supported by increasing
demand from active markets like China,
Korea and Taiwan, and the higher prices
will be accepted by distributors and eventhe biggest end users like theautomobile industry.
The automobile and shipbuilding
industries are expected to be active,
while the electric home appliances andconstruction materials sectors may see
some decline. There is a sign that theovercapacity of Japanese blast furnacemills will be restructured under the huge
deficit in fiscal 2003.
Logistic systems based on our
distribution network and processing
capability are our greatest strength. We
are continuously upgrading them in both
capacity and efficiency. We will further
build up our e-commerce site, “hanwasteel.com,” which was successfully
introduced two years ago.
While maintaining the basic steelbusinesses that are already in place, wewill diversify into new areas such as steel
houses, steel pallets, and the leasing ofsteel construction materials.

5

Review of fiscal year 2002
In fiscal year 2002, the Division exported
863,000 tons of steel, a 16.8% increasein volume from the previous year.
Exports to China and Korea were very
brisk in the second half, but the price
was sharply depressed due to a hugevolume of steel products that wereredirected from the newly protected U.S.
market to the Asian market.
Sales, however, were stable year toyear, reaching ¥50,318 million. The
worldwide price decrease of steel
products started in the first half of 2002
and reached bottom at the end of thesecond half of the term. The weaker
Japanese yen and increasing sales volume
helped to maintain the sales amount.
Outlook for fiscal year 2003
We will focus on China and ASEAN
markets.
China announced import restrictions
on ordinary steel and stainless products
which may be affecting the market
fluctuations. We will diversify, however,into more value-added products andcultivate new markets. We will further
reinforce our staff in the overseas
offices, particularly in China, Thailand
and Vietnam.

Non-ferrous Metals

Food Products

Petroleum and Chemicals

Review of fiscal year 2002
Sales fell 14.2% to ¥54,024 million due
to major production cuts at many firms
caused by decreasing demand forcopper, nickel, rare earths, andmagnesium from IT-related industries
and also by a weakening of prices in thecommodity market.
The business of recycling aluminumcans developed satisfactorily. The scopeof operations grew and operations havebeen improving.
The business of supplying raw
materials for stainless steel was
supported thanks to our success insecuring new supply sources and finding
new materials.

Review of fiscal year 2002
Japan’s import of fishery products
increased in terms of volume to ahistorically high level of 3,820,000 tons
(108% of the volume in the previousyear), while the value declined for thethird consecutive year to ¥1,720 billion(only 99.2% of the previous year’s level).
Our company’s results were down inboth volume and value, registering
172,000 tons (down 7% from theprevious year), and ¥86,171 million(down 13.7% year/year).
Among products that rose both involume and value were processed fish
products, horse mackerel, smelts,
sardines, etc. Products that wereconspicuously weak were shrimps andprawns, salmon, octopus, etc. During
the first half of the term, prices of somemajor merchandise such as prawns,
shrimps and eels declined severely,
hurting this segment seriously. But thegeneral price recovery in the latter halfbrought the results back up, leading to
the numbers shown above.

Review of fiscal year 2002
The terrorist attacks in the United States
last year were a serious blow to world
demand for petroleum. Demand inJapan decreased by 2.6% from theprevious year, falling to a level last seen
7 years ago. With the background of
declining prices and an increasing
number of petroleum-related companies
disappearing, our company was
remarkably successful in keeping sales
flat at our year-ago level. Much of thecredit for this goes to our proactive
marketing strategy.

Outlook for fiscal year 2003
The decrease of supply to IT-relatedindustries bottomed out and we can
now be somewhat optimistic about arapid recovery. The aluminum canrecycling business can be expected to
grow steadily.
The following two lines of businesses
should be noted:•Growing demand from the solar
energy industry is promising and wehave higher hopes for growth in thelatter half of the year.
•Importing ferroalloys from South Africa
is very practical from a medium-term
standpoint and can become a stablebusiness segment.

Outlook for fiscal year 2003
Prices in general have bottomed out.
But the market is not strong enough forprices to rise. While demand remains
weak, prices have stopped declining,although they are still quite low. There
are some brighter signs in the market,
however. While the general situation ofcheaper mainstream products persists,
we are now seeing some special “hit”
products appear. We will export fish to
third countries to make processed products for export back to Japan, and wewill try to increase such imports. Our
sales target in this segment is to return tothe ¥100,000 million level that we
attained in the fiscal 2001 term.
6

Outlook for fiscal year 2003
Disturbances are continuing worldwide
and the business environment for the
petroleum industry remains unstable.
Against this weak forecast for the world
economy, it is difficult to expect any
recovery of demand in the near term. We
will maintain our sales volume at a level
similar to the previous year, and plan tocontinue our efforts to rationalize ourmarketing strategies.

Lumber

Machinery

Review of fiscal year 2002
Both sales and volume declined 12%
from the previous year, with sales
registering ¥25,456 million and a total
volume of 745,000 cubic meters.
Declining demand from the housing
sector was the main reason. In addition,
the relative strength of both the euro
and dollar against the yen raised costs
and depressed earnings.
Although imports in the broader
market generally declined, lumber
imports from Russia, China and Chili
showed strong growth, up 37% fromthe previous year. Plywood imports from
China showed particularly strong growthand became one of the major items in
the lumber sector.

Review of fiscal year 2002
Leisure Sector: During fiscal year 2002,
Tokyo Disney Land and Disney Sea
attracted a combined 21 million visitors,
and Universal Studios Japan attracted 12
million. While these two major
attractions were outstandingly
successful, other medium-sized themeparks have suffered a 10% to 20%
decline in visitors compared with theprevious year, and some have been
forced to close down their facilities.
Every one of these theme parks has
continued to decrease active investment,
just as they did in the previous year. We
sold Flume Ride made by Hopkins Rides
Inc., a slider made by Proslide, and afountain made by Atomizing Co. to
Laguna Gamagouri. Also we restarted
export of used rides to Middle America,
Middle East , South Africa, and othercountries. Even so, our sales remained
15% below last year’s level.

Outlook for fiscal year 2003
We forecast housing starts to be around1 million units during calendar year
2002, which would be a decline of 10%
compared with 2001. Still, we plan toachieve sales of ¥28,000 million, a 10%
increase year to year, through aggressive
sales promotion.
One major matter of concern in the
lumber industry is the uncertain financial
conditions at some companies.
Consequently, we will be highly selective
in providing credit to our customer base.

Industrial Machinery: Faced with anuncertain economic outlook and dismal
prospects for our customers’ ownbusinesses, there is little inclination forcompanies to make capital investments.
Equipment investments are still lagging
with no sign of a reversal in sight. In
spite of this gloomy forecast, we stillachieved a 7% year to year sales
increase in this sector.
1) Sales to recycling centers were positive:
crushers, cutters, pressing machine,volume-reducing equipments,
magnetic separator, refuse cranes, bagfilters, etc.
2) Sales of steel processing machineries
such as cutters, drills, and bevellingmachines to steel fabricating andshearing industries.
73) Exports to the Middle East of Yanmar
Diesel’s marine engines, and land-use
engines and pumps made by Fuji
Heavy Industries.
Outlook for fiscal year 2003
In the leisure area, sales are targeted toremain unchanged. We have a numberof basic orders in hand, i.e., providing
the Tokyo Dome Redevelopment Projectwith three kinds of equipment, Flume
Ride to be made by Hopkins and MusicalFountain created by Waltzing Water andHorror House (production coordinatedby Hanwa). Also, as part of the Huis Ten
Bosch 10th anniversary renewal project,
we will be involved in the renovation of
its Aqualint, and will supply two kids
attractions, Foam Factory made by SCS
and Cycle Monorail (production
coordinated by Hanwa). We arescheduled to start concession business at
Woobang Tower Land in Korea. In
addition, we plan to explore newopportunities among financially stronger
theme parks in the Chukyo and Kanto
areas.
In the industrial sector we willcontinue our efforts to1) sell environmental machinery andequipment to recycling industries,2) increase sales of steel fabrication
machinery,3) expand markets for ozone creating
equipment for sterilizing andbleaching.
We aim to increase sales by 50% to¥2,000 million.

Topics

1. Electronic commerce trading system
By December of last year, our electroniccommerce trading system, “hanwasteel.com,” had extended its dealing
areas beyond the Kanto and Chubu
areas to Kansai, Hokkaido, and Shikoku.

Our aggressive sales promotion activities,e.g., our Hit Campaign and Point Back
Campaign, helped to increase sales
volume to more than 24,000 tons in
October of 2001. The site has gained areputation as the place where users canfeel the personal presence of asalesman. We intend to continue toexpand its service area and increase sales
through this system.

2. Promotion of environment-related businessIn line with the global movement
towards recycling of industrial waste,
our company is actively engaged indeveloping various business models
related to recycling. We obtained ISO
14001 certification back in April 2000.
In December this year, the provisions ofa law providing special measures to deal

with dioxin-related problems will bestrengthened. Our company function asa secretariat office in a research groupthat include 20 organizations, among
them a university and companies fromthe construction, chemical and otherindustries. Everyone is working together
to overcome the problems of dioxin andheavy metals tainted furnaces, looking
for safe, economical ways to eliminate
furnaces. The practical outcomes of thestudy are likely to be adopted asbusiness projects operated by local
governments.

3. Founding of Hanwa Steel Services Ltd.
On April 4, 2002, our company founded
a 100%-owned subsidiary, Hanwa Steel
Services Ltd. in the Second Techno Parkin Omi Minakuchi of Shiga Prefecture tooperate as a slitter and leveler plant. This
company operates as the core of oursteel sheet fabrication services to better
serve steel sheet users in the Shiga and
Mie areas. Its aim is to cut the lead time
between the receipt of orders anddelivery and to respond to small-lot
orders with quick turnaround. Suchservices are an important part of themedium-term business plan announced
last year, strengthening company’s
capabilities in logistics and fabrication
strategies. They also serve to create astable supply and exploit potential
demand. The company is capable offabricating 10,000 tons a month and will

start its operations in December of thisyear.

President Kita at “Jichinsai” (the ceremony of purifying a building site). June 2002

8

Financial Section

Contents
Consolidated Balance Sheets ........................................................................................... 10
Consolidated Statements of Income ............................................................................. 12
Consolidated Statements of Stockholders’ Equity ................................................... 13
Consolidated Statements of Cash Flows ..................................................................... 14
Notes to Consolidated Financial Statements ............................................................. 15
Report of Independent Public Accountants ............................................................... 27
9

HANWA CO., LTD. AND CONSOLIDATED SUBSIDIARIES

Consolidated Balance Sheets
As at March 31, 2002 and 2001

Thousands of
U.S. dollars (Note 1)

Millions of yen

Assets2002

Current assets:
Cash and cash equivalents
Marketable securities (Note 3)
Receivables:
Trade notes and accounts:
Unconsolidated subsidiaries and affiliates
Other
Loans:
Unconsolidated subsidiaries and affiliates
Other
Allowance for doubtful receivables
Inventories
Deferred income taxes (Note 8)
Other current assets (Note 5)
Total current assets

¥

2001

2002

2001

35,183 ¥3,304

27,701 $6,185

264,038 $
24,795

207,888
46,416

2,499
127,1442,542
148,608

18,754
954,176

19,077
1,115,257

2,233
2
(581)
27,605
1,952
16,451
215,792

1,735
66
(479)
33,81937
13,811
234,025

16,75815(4,360)207,167
14,649123,460
1,619,452

13,021495(3,595)
253,801
278
103,647
1,756,285

Investments and non-current receivables:
Investment securities (Notes 3 and 5):
Unconsolidated subsidiaries and affiliates
Other
Loans receivable:
Unconsolidated subsidiaries and affiliates
Other
Other investments and non-current receivables
Allowance for doubtful receivables
Total investments and non-current receivables

1,437
9,572

1,527
12,277

10,784
71,835

11,46092,135723
1,155
15,123(4,972)
23,038191
1,274
13,765(3,855)25,1795,426
8,668
113,493(37,313)
172,893

1,433
9,561
103,302(28,931)
188,960

Property and equipment (Note 5):
Land (Note 9)
Buildings and structures
Other
Accumulated depreciation
Total property and equipment

28,421
18,901
6,084(8,323)45,083

13,89822,165
5,882(13,332)
28,613

213,291
141,846
45,659(62,462)
338,334

104,300
166,342
44,143(100,053)
214,732

Other assets:
Deferred income taxes — noncurrent (Note 8)
Intangibles and other assets
Total other assets
Total

115
487
602
284,515 ¥

8
863
60
350
3,655
2,627
358
4,518
2,687
288,175 $ 2,135,197 $ 2,162,664¥

See accompanying Notes to Consolidated Financial Statements.

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

Millions of yen

Liabilities and Stockholders’ Equity

2002

Current liabilities:
Bank loans (Note 6)Long-term debt due within one year (Note 6)
Trade notes and accounts payable:
Unconsolidated subsidiaries and affiliates
Other
Accrued bonuses to employees
Income taxes payable
Other current liabilities
Total current liabilities¥

Non-current liabilities:
Long-term debt due after one year (Note 6)
Employees’ retirement benefits (Note 7)
Directors’ retirement benefits
Reserve for loss on sale-repurchase agreement of landDeferred income taxes (Note 8)
Other non-current liabilities
Total non-current liabilities
Minority interest

2001

2002

2001

96,119 ¥1,336

108,545 $
4,769

721,343 $10,026

814,597
35,790382
84,891
1,329
382
10,141
194,580311
101,099
1,247
269
9,836
226,076

2,867
637,080
9,974
2,867
76,105
1,460,262

2,334
758,7179,358
2,019
73,816
1,696,631

34,979
1,222
280
2,037
—
2,229
40,74734,315
759
314
—
34
1,229
36,651

262,507
9,171
2,101
15,287—
16,728305,794

257,523
5,696
2,357
—
255
9,223
275,054

—

—

—

—

Contingent liabilities (Note 12)
Stockholders’ equity (Note 9):
Common stock,
Authorized: 570,000,000 shares
Issued: 211,663,200 shares
Additional paid-in capitalLand revaluation difference
Retained earnings (Undisposed deficit)
Net unrealized holding losses on securities
Foreign currency translation adjustments
Treasury stock, at cost: 7,832 shares (3,723 in 2001)
Total stockholders’ equity
Total

¥

11

45,651
—
(418)
5,141
(808)
(377)
(1)
49,188284,515 ¥82,646
342,597620,233
19,227—
144,292—(3,137)—(72,892)
38,581(547,032)—(6,063)—(3,533)(2,829)(26,514)—(8)—
25,448369,141
190,979
288,175 $ 2,135,197 $ 2,162,664

HANWA CO., LTD. AND CONSOLIDATED SUBSIDIARIES

Consolidated Statements of Income
For the years ended March 31, 2002 and 2001

Thousands of
U.S. dollars (Note 1)

Millions of yen

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income

¥

2002

2001

625,614 ¥
597,750
27,864
21,347
6,517

689,106 $ 4,695,039 $ 5,171,527
659,044
4,485,929
4,945,921
30,062
209,110
225,606
19,779160,202148,435
10,283
48,90877,171

2002

2001

Other income (expenses):
Interest and dividend income
Interest expense
Gain on sale of land
Provision for doubtful receivables
Loss on loans receivable
Loss on write-down of investment securities
Loss on sale of investment securities
Loss on write-down of investment
Loss on write-down of golf club memberships
Loss on sale of golf club memberships
Net transition obligation of retirement plans (Note 7)
Provision for loss on sale-repurchase agreement of land
Other, net

1,700(2,733)
—
—
—
(498)
—
—
(157)
—
—
(2,037)
(848)

2,931
(7,428)4,315(2,100)(1,525)
(836)
(591)
(115)
(163)
(50)
(495)
—
(1,896)

12,758(20,510)———(3,738)——(1,178)——(15,287)(6,364)

21,996(55,746)
32,383(15,760)(11,445)(6,274)(4,435)(863)(1,223)(375)(3,715)—(14,228)

Income before income taxes

1,944

2,330

14,58917,486388(2,031)(1,643)
3,587 ¥

338
47
385
1,945 $

2,912
(15,242)(12,330)
26,919 $

2,536
353
2,889
14,597

Income taxes (Note 8):
Current
Deferred
Net income

¥

Yen

2002

Net income per share
Cash dividends per share¥

See accompanying Notes to Consolidated Financial Statements.

12

16.95 ¥
5.00

U.S. dollars (Note 1)

2001

9.19 $—

2002

0.127 $
0.038

2001

0.069
—

HANWA CO., LTD. AND CONSOLIDATED SUBSIDIARIES

Consolidated Statements of Stockholders’ Equity
For the years ended March 31, 2002 and 2001

Balance at March 31, 2000
Net income
Adjustments from translationof foreign currency
financial statements
Treasury stock
Balance at March 31, 2001
Common stock
reduction (Note 9)
Disposition of deficit (Note 9)
Land revaluationdifference (Note 9)
Effect arising from merger ofconsolidated subsidiary
Net income
Net unrealized holding losses
on securities
Adjustments from translationof foreign currency
financial statements
Treasury stock
Balance at March 31, 2002

Thousands

Millions of yen

Number of shareof common stock

Retained earnings(Undisposed
deficit)Common stock

Land revaluationdifference

Net unrealized
holding losses on
securities

Foreign currencytranslation
adjustments

Treasury stock

211,663 ¥ 82,646 ¥ 19,227 ¥———— ¥ (74,837) ¥
—
1,945

— ¥
—

—
—
211,663——
82,646——
19,227—————(72,892)———(3,533)—(3,533)

—
—
—

—
—

(36,995)——(19,227)——

36,995
19,227

—
—

—
—

—
—

—

—

—

(418)

—

—

—

—

—
—

—
—

—
—

—
—

18,224
3,587

—
—

—
—

—
—

—

—

—

—

—

(808)

—

—

—
—
— ¥

—
—
(418) ¥——
5,141 ¥——
(808) ¥

3,156—(377) ¥

—
(1)
(1)

—
—
—
—
211,663 ¥ 45,651 ¥Common stock

Balance at March 31, 2000
Net income
Adjustments from translationof foreign currency
financial statements
Treasury stock
Balance at March 31, 2001
Common stock
reduction (Note 9)
Disposition of deficit (Note 9)
Land revaluationdifference (Note 9)
Effect arising from merger ofconsolidated subsidiary
Net income
Net unrealized holding losses
on securities
Adjustments from translationof foreign currency
financial statements
Treasury stock
Balance at March 31, 2002

Additional
paid-in capital

Additional
paid-in capitalThousands of U.S. dollars (Note 1)
Retained earnings
Net unrealized
Land revaluation(Undisposed
holding losses on
difference
deficit)securities$ 620,233 $ 144,292 $
—
—

— ¥
—

Foreign currencytranslation
adjustments— $ (561,629) $—14,597— $———Treasury stock

— $
—

—
—

—
—
620,233——
144,292—————(547,032)———(26,514)—(26,514)———(277,636)——(144,292)——

277,636
144,292

—
—

—
—

—
—

—

—

(3,137)

—

—

—

—

—
—

—
—

—
—

136,766
26,919

—
—

—
—

—
—

—

—

—

—

(6,063)————$ 342,597 $

—
—
— $

13

—
—
—
—
(3,137) $ 38,581 $—
23,685——(6,063) $ (2,829) $

—
(8)
(8)

HANWA CO., LTD. AND CONSOLIDATED SUBSIDIARIES

Consolidated Statements of Cash Flows
For the years ended March 31, 2002 and 2001

Thousands of
U.S. dollars (Note 1)

Millions of yen

2002

Cash flows from operating activities:
Income before income taxes
Adjustments to reconcile income before income taxes to net cash
provided by operating activities
Depreciation
Increase (decrease) in allowance for doubtful receivables
Interest and dividend income
Interest expense
Gain on sale of land
Provision for loss on sale-repurchase agreement of land
Loss on loans receivable
Loss on write-down of investment securities
Loss on sale of investment securities
Loss on write-down of investment
Loss on write-down of golf club memberships
Loss on sale of golf club memberships
Net transition obligation of retirement plans
Decrease (increase) in trade receivables
Decrease in inventories
Increase (decrease) in trade notes and accounts payable
Other, net
Sub total
Cash flows during the year for:
Interest and dividends received
Interest paid
Income taxes paid
Net cash provided by operating activities
Cash flows from investing activities:
Additions to securities
Proceeds from redemption and sale of securities
Additions to property and equipment
Proceeds from sale of property and equipment
Additions to investment securities
Proceeds from redemption and sale of investment securities
Additions to loans receivable
Repayment of loans receivable
Other, net
Net cash provided by investing activities
Cash flows from financing activities:
Decrease in bank loans, net
Proceeds from long-term debt
Repayments of long-term debt
Net cash used in financing activities
Effect of exchange rate changes on cash and cash equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year¥¥

See accompanying Notes to Consolidated Financial Statements.

14

1,944 ¥

2001

2,330 $

2002

14,589 $2001

17,4861,877
1,212(1,700)
2,733
—
2,037
—
498
—
—
157
—
—
19,247
6,327(16,368)
2,594
20,5581,547(604)(2,931)
7,428(4,315)
—
1,525
836
591
115
163
50
495
(13,150)
727
5,975
7,848
8,630

14,086
9,096(12,758)
20,510—15,287
—
3,738
—
—
1,178
—
—
144,443
47,482(122,837)
19,467
154,281

11,610(4,533)(21,996)
55,746(32,383)—
11,445
6,274
4,435
863
1,223
375
3,715
(98,687)
5,456
44,84158,89664,766

1,811(2,730)(312)
19,3272,887(7,883)
(903)
2,731

13,591(20,488)(2,341)145,043

21,666(59,159)(6,777)
20,496(3,103)
7,363
(548)
15
(243)
437
(2,144)
1,782(2,207)
1,352(9,688)39,531(836)
4,950(2,186)
6,447(1,388)6,276(1,471)
41,635(23,287)
55,257(4,113)113(1,824)
3,280(16,090)
13,373(16,563)
10,146(72,705)
296,668(6,274)
37,148(16,405)
48,383(10,417)47,099(11,039)
312,458(11,861)
3,000(5,769)(14,630)
1,433
7,482
27,70135,183 ¥(12,321)49,400(89,287)(52,208)
1,108(6,734)34,43527,701 $(89,013)22,514(43,294)(109,793)
10,75456,150207,888
264,038 $(92,465)
370,731(670,071)(391,805)
8,315(50,536)
258,424
207,888

HANWA CO., LTD. AND CONSOLIDATED SUBSIDIARIES

Notes to Consolidated Financial Statements

1. Basis of presenting consolidated financial statements
and translated into English (with some expanded descriptions andthe inclusion of statements of stockholders’ equity) from theconsolidated financial statements of the Company prepared inaccordance with Japanese GAAP and filed with the appropriate
Local Finance Bureau of the Ministry of Finance as required by the
Securities and Exchange Law. Some supplementary information
included in the statutory Japanese language consolidated financial
statements, but not required for fair presentation is not presented in
the accompanying financial statements.
The translation of the Japanese yen amounts into U.S. dollars areincluded solely for the convenience of readers, using the prevailingexchange rate at March 31, 2002, which was ¥133.25 to U.S.$1.00.
The convenience translations should not be construed as
representations that the Japanese yen amounts have been, could
have been, or could in the future be, converted into U.S. dollars at
this or any other rate of exchange.

Hanwa Co.,Ltd. (the “Company”) and its consolidated domestic
subsidiaries maintain their accounts and records in accordance withthe provisions set forth in the Japanese Commercial Code and the
Securities and Exchange Law and in conformity with accounting
principles and practices generally accepted in Japan (“Japanese
GAAP”). The accounts of overseas consolidated subsidiaries are
based on their accounting records maintained in conformity withgenerally accepted accounting principles and practices prevailing in
the respective countries of domicile.
Certain accounting principles and practices generally accepted inJapan are different from International Accounting Standards andstandards in other countries in certain respects as to application anddisclosure requirements. Accordingly, the accompanying
consolidated financial statements are intended for use by those whoare informed about Japanese accounting principles and practices.
The accompanying financial statements have been restructured

2. Significant accounting policies
by subsidiaries and affiliated companies are not consolidated or
accounted for using the equity method are stated at movingaverage cost. Available-for-sale securities with available fair market
values are stated at fair market value. Unrealized gains andunrealized losses on these securities are reported, net of applicable
income taxes, as a separate component of stockholders’ equity.
Realized gains on sale of such securities are computed using
moving-average cost.
However, available-for-sale securities with available fair market
values were not stated at fair market value as the new standard
allowed one year grace period for implementation provided thefollowing information was disclosed. Book value, fair value, net
unrealized holding losses and deferred tax assets for these securities
on March 31, 2001 were as follows:

Consolidation — The consolidated financial statements include theaccounts of the Company and its eight (nine in 2001) significant
subsidiaries. The accounts of three foreign subsidiaries are included
at their respective fiscal years ending the last day of February.
Necessary adjustments for significant transactions occurring between
the last day of February and March 31 have been made in the
preparation of the consolidated financial statements.
Intercompany transactions and accounts have been eliminated.
The Company doesn’t apply the equity method, because nonconsolidated subsidiaries and affiliated companies are immaterial.
Cash and cash equivalents — In preparing the consolidated
statements of cash flows, cash on hand, readily-available deposits
and short-term highly liquid investments with maturities of notexceeding three months at the time of purchase are considered tobe cash and cash equivalents.
Allowance for doubtful receivables — The allowance for
doubtful receivables is provided to cover possible losses oncollection. With respect to normal trade accounts receivable, it isstated at an amount based on the actual rate of historical bad debts,
and for certain doubtful receivables, the uncollectible amount has
been individually estimated.
The allowance for doubtful receivables of overseas consolidated
subsidiaries is determined by estimates of management.
Securities — Prior to April 1, 2000, marketable equity securities
were stated at the lower of moving average cost or market value.
Other securities were stated at moving average cost.
Effective April 1, 2000, the Company and its consolidated
subsidiaries adopted the new Japanese accounting standard forfinancial instruments (“Opinion Concerning Establishment of
Accounting Standard for Financial Instruments” issued by theBusiness Accounting Deliberation Council on January 22, 1999).
Upon applying the new accounting standard, all companies are
required to examine the intent of holding each security and classify
those securities as (a) securities held for trading purposes (hereafter,“trading securities”), (b) debt securities intended to be held tomaturity (hereafter, “held-to-maturity debt securities”), (c) equity
securities issued by subsidiaries and affiliated companies, and (d) allother securities that are not classified in any of the above categories(hereafter, “available-for-sale securities”).
The Company and its consolidated subsidiaries do not hold heldto-maturity debt securities. Trading securities are stated at fairmarket value. Gains and losses realized on disposal and unrealized
gains and losses from market value fluctuations are recognized asgains or losses in the period of the change. Equity securities issued

Millions of yen

Book value
Fair value
Net unrealized holding losses on
securities, net of tax
Deferred tax assets¥

Thousands of
U.S. dollars

17,400 $16,674

130,581
125,133

700
26

5,253
195

As a result of adopting the new accounting standard for financial
instruments, operating income increased by ¥2,014 million ($15,114
thousand) and income before income taxes decreased by ¥1,247
million ($9,358 thousand), including the effect of the new
accounting policy for derivatives and golf club memberships.
And upon applying the new standard, the Company and its
consolidated subsidiaries examined the intent of holding eachsecurity at the beginning of the period and classified available-forsale securities with maturities of one year or less as marketablesecurities and the other securities as investment securities. As aresult, securities included in the current assets decreased by ¥5,085
million ($38,161 thousand) and investment securities increased by
the same amount at April 1, 2001.
At March 31, 2002, as a result of adoping the new accounting
standard for available-for-sale securities, net unrealized holding
losses on securities of ¥808 million ($6,063 thousand) wererecorded in stockholders’ equity.
Inventories — Inventories are principally stated at the lower of costor market value. Cost is determined by the moving average cost
method or the specific identification cost method.
15

Translation of foreign currencies — Short-term receivables andpayables denominated in foreign currencies are translated into
Japanese yen at the year-end rates. Prior to April 1, 2000, long-term
receivables and payables denominated in foreign currencies weretranslated 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 AccountingStandard for Foreign Currency Translation,” issued by the BusinessAccounting Deliberation Council on October 22, 1999. Under therevised accounting standard, long-term receivables and payables
denominated in foreign currencies are also translated into Japanese
yen at the year-end rate.
As a result of adopting the revised accounting standard,
operating income decreased by ¥1,505 million ($11,295 thousand)and income before income taxes decreased by ¥574 million ($4,308
thousand).
Balance sheets of consolidated overseas subsidiaries aretranslated into Japanese yen at the year-end rates except for
stockholders’ equity accounts, which are translated at the historicalrates. Income statements of consolidated overseas subsidiaries aretranslated at average rates except for transactions with theCompany, which are translated at the rates used by the Company.
Due to the adoption of the revised accounting standard, theCompany and its domestic subsidiaries report foreign currencytranslation adjustments in the stockholders’ equity.
Finance leases — Finance leases which do not transfer ownershipand do not have bargain purchase provisions are accounted for in
the same manner as operating leases in accordance with generally
accepted accounting principles in Japan.
Derivatives and hedge accounting — The new accounting
standard for financial instruments, effective April 1, 2000, requires
the Company to state derivative financial instruments at fair value
and to recognize changes in the fair value as gains or losses unlessderivative financial instruments are used for hedging purposes.
If derivative financial instruments are used as hedges and meetcertain hedging criteria, the Company defers recognition of gains orlosses resulting from changes in fair value of derivative financial
instruments until the related losses or gains on the hedged items arerecognized.
Also, if interest rate swap agreements are used as hedges andmeet certain hedging criteria, the net amount to be paid or received
under the interest rate swap agreement is added to or deductedfrom the interest on the assets or liabilities for which the swap
agreement was executed.
The following summarizes hedging derivative financial
instruments used by the Company and items hedged:

Property and equipment — Property and equipment are carried atcost. Depreciation is principally provided on the declining balancemethod over estimated useful lives. Major renewals andimprovements are capitalized. Maintenance, repairs and minor
renewals are expensed as incurred.
Software costs — The Company and its consolidated subsidiaries
include software in intangible and other assets, and depreciate itusing the straight-line method over the estimated useful Life of five
years.
Bonuses — The Company and its domestic consolidated
subsidiaries follow the Japanese practice of paying bonuses to
employees in June and December. As at the balance sheet date, thebonus liabilities are estimated and accounted for on an accrual basis.
Bonuses to directors and statutory auditors, which are subject toapproval at the stockholders’ meeting, are accounted for as an
appropriation of retained earnings.
Income taxes — The Company and its consolidated subsidiaries
recognize tax effects of temporary differences between the carrying
amounts of assets and liabilities for tax and financial reporting. The
asset and liability approach is used to recognize deferred tax assets
and liabilities for the expected future tax consequences of temporary
differences between the carrying amounts of assets and liabilities forfinancial reporting purposes and the amounts used for income tax
purposes.
Retirement benefits — Substantially all employees of theCompany and its consolidated subsidiaries are covered by qualified
funded pension plans. The amount of the retirement benefit is, ingeneral, based on length of service, base salary at the time ofretirement, and cause of retirement. Annual contributions, which
consist of normal cost and amortization of prior service cost are
charged to income when paid.
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 theamounts actuarially calculated using certain assumptions.
The Company and its consolidated subsidiaries provided for
employees’ severance and retirement benefits at the day of adoption
based on the estimated amounts of projected benefit obligation andthe fair value of the plan assets.
The net transition obligation at the adoption of the new
accounting standard amounting to ¥495 million ($3,715 thousand),
which mainly consisted of the actuarial losses for the prior year, wasfully expensed for the year ended of March 31, 2001.
As a result of adopting the new accounting standard, in the year
ended March 31, 2001,severance and retirement benefit expenses
decreased by ¥101 million ($758 thousand), operating income
increased by the same amount and income before income taxes
decreased by ¥394 million ($2,957 thousand) compared with what
would have been recorded under the previous accounting standard.
Directors and statutory auditors are not covered by these plans.
However, the liability for retirement benefits represents
management’s estimate of the amounts payable to them at thebalance sheet date if they retired at that date. Amounts payable todirectors and statutory auditors upon retirement are subject to theapproval of stockholders.
Reserve for loss on sale-repurchase agreement of land —Reserve for loss on sale-repurchase of land reflects an estimate ofpossible losses based on an exercise of a sale-repurchase agreementthat the Company sold land to the Organization for Promoting
Urban Development.

Hedging instruments:
Interest rate swap agreements
Commodity futures contracts
Foreign exchange forward contracts
Hedged items:
Interest expense on borrowings
Inventories and commitments
Equity investment in subsidiary
The Company evaluates hedge effectiveness by comparing the
cumulative changes in cash flows or the changes in fair value ofhedged items and the corresponding changes in the hedging
derivative instruments.
Reclassification — Certain reclassification have been made to prioryear amounts to conform to the current-year presentation.

16

meeting of stockholders held after the end of the fiscal year.
Therefore, cash dividends per share shown in the consolidated
statements of income reflect the dividends approved after the end of
the fiscal year.

Amounts per share — Computations of net income per share ofcommon stock are based on the weighted average number of shares
outstanding during each period. The Commercial Code of Japanrequires that the declaration of dividends be approved at the general

3. Securities(A) The following tables summarize acquisition costs and book values (fair values) of securities with available fair values as of March 31, 2002:

Available-for-sale securities
Securities with book values exceeding acquisition costs

Millions of yen
Book value

Acquisition cost

Equity securities
Bonds
Government bonds
Corporate bonds
Other
Total

Acquisition costThousands of U.S. dollars
Book value

Difference¥

1,373 ¥

1,847 ¥

474 $

10,304 $13,861 $

3,557

¥

2,969
1,555
254
6,151 ¥

3,397
1,809
254
7,307 ¥

428
254—
1,156 $

22,281
11,6701,906
46,161 $25,493
13,576
1,906
54,836 $

3,212
1,906
—
8,675

Other securities

Millions of yen
Book value

Acquisition cost

Equity securities
Total

Difference¥¥

3,926 ¥
3,926 ¥

Difference

3,185 ¥
3,185 ¥

Acquisition cost(741) $
(741) $

Thousands of U.S. dollars
Book value

29,463 $29,463 $Difference

23,902 $23,902 $(5,561)(5,561)(B) The following tables summarize book values of securities whose fair values are not determinable as of March 31, 2002:(a) Equity securities issued by unconsolidated subsidiaries and affiliatedThousands of
U.S. dollars
Book value

Millions of yen
Book value

Equity securities issued by unconsolidated subsidiaries and affiliated
Total

¥
¥

1,437 $
1,437 $

10,784
10,784(b) Available-for-sale securities
Thousands of
U.S. dollars
Book value

Millions of yen
Book value

Unlisted stocks (excluding over-the-counter securities)
Other
Total

¥
¥

1,040 $
1,344
2,384 $

7,805
10,086
17,891(C) Available-for-sale securities with maturities as of March 31, 2002 will mature as follows:
Millions of yen
Within one year

Government bonds
Corporate bonds
Other
Total

¥

¥

Over one year but
within five years

453 ¥
1,707
254
2,414 ¥

Thousands of U.S. dollars
Over five years but
within ten years

1,812 ¥
102
1,343
3,257 ¥(D) Total sales of available-for-sale securities in the year ended March
31, 2002 amounted to ¥51 million ($383 thousand) and the net
losses amounted to ¥11 million ($83 thousand).

17

Within one year

1,132 $——
1,132 $

Over one year but
within five years

3,400 $
12,8101,906
18,116 $Over five years but
within ten years

13,599 $765
10,07924,443 $

8,495
—
—
8,495

(A) The following table summarizes book values of securities whose fair values are not determinable as of March 31, 2001:

Available-for-sale securities
Thousands of
U.S. dollars
Book value

Millions of yen
Book value

Unlisted stocks (excluding over-the-counter securities)
Other
Total

¥
¥

1,046 $
16
1,062 $

7,850
120
7,970

(B) Available-for-sale securities with maturities as of March 31, 2001 will mature as follows:
Millions of yen
Within one year

Government bonds
Corporate bonds
Other
Total

¥

¥

Over one year but
within five years

1,607 ¥
4,713
338
6,658 ¥

Thousands of U.S. dollars
Over five years but
within ten years

1,959 ¥
1,667—
3,626 ¥

Within one year

1,714 $
595—
2,309 $

Over one year but
within five years

12,060 $35,3702,536
49,966 $Over five years but
within ten years

14,702 $12,510—27,212 $12,863
4,465—
17,328(C) Total sales of available-for-sale securities in the year ended
March 31, 2001 amounted to ¥6,906 million ($51,827 thousand)and the net losses amounted to ¥416 million ($3,122 thousand).

4. Derivatives
The Company enters into foreign exchange forward contracts, in its
normal business, to hedge foreign exchange risk associated withcertain assets and liabilities denominated in foreign currencies. The
Company enters into foreign exchange forward contracts, foreign
currency swap agreements and interest rate swap agreements ashedges against bonds and loans denominated in foreign currencies.
And the Company enters into commodity futures contracts as ameans of hedging risks associated with certain inventories andcommitments.
It is the Company’s policy to use derivatives only for the purposeof reducing market risks associated with assets and liabilities.
Derivatives are subject to market risk and credit risk. Since thepurpose of using derivatives is to reduce market risks associated withassets and liabilities, market risks of the derivatives are effectively
offset. And, as the counterparties to those derivatives are limited tomajor financial institutions, the Company does not anticipate any
losses arising from credit risk.
Derivatives entered into by the Company have been made inaccordance with internal policies which regulate the authorizationand credit limit amount. Each derivative transaction is periodicallyreported to the management, where evaluation and analysis ofderivatives are made.
The contracts or notional amounts of derivatives which are
shown in the following table do not represent the amounts
exchanged by the parties and do not measure the Company’s
exposure to credit or market risks.

18

The following tables summarize market value information as of March 31, 2002 and 2001, of derivatives for which hedge accounting has not been
applied:Year ended March 31, 2002
Currency related

Millions of yen
Contract ornotional amountForeign exchange forward contracts:
Selling
U.S. dollars
Other currencies
BuyingU.S. dollars
Other currencies
Currency swap agreements:
Japanese yen received for U.S. dollars
Total

¥

880 ¥
42

890 ¥
42

24,372
1,326

26,3901,341

16,888(1,954)¥

Commodity related

Contract ornotional amount(10) $—¥

Fair value

785 ¥
1,224

Net recognized
gains (losses)

Fair value

6,604 $
315

6,679 $
315

2,018
15

182,904
9,951

198,048
10,064(1,954)
69

126,739(14,664)(75)—
15,144
113(14,664)
518$

Millions of yen
Contract ornotional amount

Futures:Petroleum
Selling
Buying
Total

Fair value

Thousands of U.S. dollars
Net recognized
gains (losses)

Thousands of U.S. dollars
Net recognized
gains (losses)

817 ¥
1,346
¥

Contract ornotional amount(32) $
122
90

Net recognized
gains (losses)

Fair value

5,891 $
9,186

6,131 $
10,101
$

(240)
915
675

Year ended March 31, 2001
Currency related

Millions of yen
Contract ornotional amountForeign exchange forward contracts:
Selling
U.S. dollars
Other currencies
BuyingU.S. dollars
Other currencies
Currency swap agreements:
Japanese yen received for U.S. dollars
Total

¥

Contract ornotional amount

22,286 ¥12(2,431) $—149,006 $90

167,249 $90(18,243)—

43,5162,804

47,527
2,862

4,011
58

326,574
21,043356,675
21,47830,101435

14,162(2,267)(2,267)(629)

106,281(17,013)¥

Fair value

966 ¥
1,002

Thousands of U.S. dollars
Net recognized
gains (losses)

977 ¥
1,112
¥

19

(17,013)(4,720)$Millions of yen
Contract ornotional amount¥

Net recognized
gains (losses)

Fair value

19,855 ¥12Commodity related
Futures:Petroleum
Selling
Buying
Total

Fair value

Thousands of U.S. dollars
Net recognized
gains (losses)

Contract ornotional amount(11) $
110
99

7,249 $
7,519

Fair value

Net recognized
gains (losses)

7,332 $
8,345
$

(83)
826
743

5. Pledged assets
At March 31, 2002 and 2001, assets pledged as collateral for long-term bank loans of ¥25,000 million ($187,617 thousand) in both 2002 and2001, and guarantees were as follows:
Thousands of
U.S. dollars

Millions of yen

2002

Other current assets
Investment securities
Property and equipment, net of accumulated depreciation
Total

¥

¥

2001

10
1,702
25,23826,950 ¥

10 $
1,356
11,097
12,463 $

2002

2001

75
12,773
189,403202,251 $75
10,176
83,28093,531

6. Bank loans and long-term debt
Bank loans at March 31, 2002 and 2001, were represented
principally by short-term notes bearing interest at rates from 0.63%
to 1.63% and from 0.72% to 6.33%, respectively.
Long-term debt at March 31, 2002 and 2001, consisted of the following:Thousands of
U.S. dollars

Millions of yen

2002

Loans from banks, at March 31, 2002 and 2001, bearing interest at rates
from 0.76% to 1.76% and from 0.73% to 1.76%, respectively,
maturing serially through 2007¥

Less amounts due within one year¥
The annual maturities of long-term debt outstanding at March 31,
2002, were as follows:

Years ending March 31,
Millions of yen

2003
2004
2005
2006
2007

¥

Total

¥

1,336 $
28,979
1,000
2,000
3,000
36,315 $Thousands of
U.S. dollars

10,026
217,479
7,505
15,00922,514
272,533

20

36,315 ¥36,315
1,336
34,979 ¥2001

39,084 $39,084
4,769
34,315 $

2002

2001

272,533 $272,533
10,026
262,507 $293,313
293,31335,790257,523

7. Employees’ retirement benefits
As explained in Note 2. Significant accounting policies, effective
April 1, 2000, the Company and its consolidated subsidiaries
adopted the new accounting standard for employees’ severance andretirement benefits, under which the liabilities and expenses forseverance and retirement benefits are determined based on theamounts 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, 2002
and 2001, consists of the following:Thousands of
U.S. dollars

Millions of yen

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

¥

¥

2002

2001

2002

2001

18,534 ¥(12,470)(6,056)840
374
1,222 ¥

16,874 $(13,087)(3,387)
—
359
759 $

139,092 $(93,584)(45,448)
6,304
2,807
9,171 $

126,634(98,214)(25,418)
—
2,694
5,696

Included in the consolidated statements of income for the years ended March 31, 2002 and 2001, are severance and retirement benefit
expenses comprised of the following:Thousands of
U.S. dollars

Millions of yen

2002

Service costs -benefits earned during the year
Interest cost on projected benefit obligation
Expected return on plan assets
Amortization of actuarial difference
Net transition obligation of retirement plans
Premium retirement benefit
Severance and retirement benefit expenses¥¥

Prior service cost and actuarial difference are amortized orrecognized over stated years that do not exceed the average

738 ¥
504
(457)
242
—
263
1,290 ¥

2001

721 $
449
(651)
—
495
176
1,190 $

2002

5,539 $
3,782
(3,430)
1,816
—
1,974
9,681 $

2001

5,411
3,370
(4,886)
—
3,715
1,321
8,931

remaining service period of active employees expected to receive
benefits under the plan.

Assumptions used for the years ended March 31, 2002 and 2001, are as follows:

Discount rate
Expected rate of return on plan assets
Amortization period of prior service costs
Amortization period of actuarial differences

21

2002

2001

2.5%
3.5%
14 years
14 years

3.0%
4.5%
—
14 years8. Income taxes
The Company is subject to a number of taxes based on income,which, in the aggregate, indicate statutory rates in Japan ofapproximately 42.1% for the years ended March 31, 2002 and2001.

The following table summarizes the significant differences between the statutory tax rate and the Company’s effective tax rates for financial
statement purposes for the years ended March 31, 2002 and 2001:

Statutory tax rate
Tax effect of permanent differences
Valuation allowance recognized for deferred tax assets
Effect of taxation on dividends
Tax effect of unrealized intercompany profit
Difference of tax rates for consolidated subsidiaries
Other
Effective tax rate

2002

2001

42.1%
12.0
(164.0)
25.8
(0.6)
(2.7)
2.9
(84.5)%

42.1%
7.9(26.7)
—
(4.3)
(2.7)
0.2
16.5%

Significant components of the Company’s and its consolidated subsidiaries’ deferred tax assets and liabilities as of March 31, 2002 and 2001
are as follows:
Thousands of
U.S. dollars

Millions of yen

2002

Deferred tax assets:
Net operating loss carryforwards
Temporary differences pertaining with a consolidated subsidiary
Loss on loans receivable
Temporary differences pertaining to investments
in consolidated companies
Loss on write-down of golf club memberships
Other
Total deferred tax assets
Valuation allowance
Net deferred tax assets
Deferred tax liabilities
Net deferred tax assets

¥

¥

2001

2002

2001

44,407 ¥24,3154,227

47,357 $—
4,228

333,261 $
182,476
31,722355,400—
31,730

1,185
—
4,069
78,203(75,972)
2,231

25,469451
1,309
78,814(78,761)
53

8,893
—
30,537
586,889(570,146)
16,743

191,1373,384
9,824
591,475(591,077)
398

165
2,066 ¥

42
11 $

1,238
15,505 $315
83

9. Stockholders’ equity
The maximum amount that the Company can distribute as
dividends is calculated based on the unconsolidated financial
statements of the Company in accordance with the Commercial
Code of Japan.

Under the Commercial Code of Japan, the entire amount of theissue 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 amount not exceeding one-half of the issue price ofthe new shares as additional paid-in capital.
Effective October 1, 2001, the Japanese Commercial Codeprovides that an amount equal to at least 10% of cash dividends
and other cash appropriations shall be appropriated and set aside asa legal reserve until the total amount of legal reserve and additional
paid-in capital equals 25% of common stock. The legal reserve andadditional paid-in capital may be used to eliminate or reduce a
deficit by resolution of the stockholders’ meeting or may becapitalized by resolution of the Board of Directors. On condition thatthe total amount of legal reserve and additional paid-in capitalremains being equal to or exceeding 25% of common stock, they
are available for dividends by the resolution of stockholders’meeting.

Common stock — The Company reduced its capital by ¥36,995
million ($277,636 thousand) to cover the undisposed deficit.
The capital reduction was approved at the ordinary general
meeting of stockholders of the Company held on June 28, 2001.
Additional paid-in capital — The Company used its additional
paid-in capital of ¥19,227 million ($144,292 thousand) to reduce
the undisdosed deficit.
The use of additional paid-in capital was approved at the ordinary
general meeting of stockholders of the Company held on June 28,
2001.

22

The book value of land revalued on March 31, 2002 was asfollows:

Land revaluation difference — Pursuant to the Law Concerning
Land Revaluation, the Company revaluated land used for businessactivities at March 31, 2002.
Unrealized loss on land revaluation is recorded as Landrevaluation difference in stockholders’ equity of the accompanying
consolidated balance sheets.
The revaluation of the land was determined based on a declared
land value in accordance with Article 2, Paragraph 1, of the
Enforcement Ordinance Concerning Land Revaluation, and theappraisal value made by certified real estate appraisers in accordancewith Article 2, Paragraph 5 of the same Ordinance with certain
necessary adjustments.

Millions of yen

Book value before revaluation
Carrying amount after revaluation¥

Thousands of
U.S. dollars

27,993 $27,575210,079
206,942

10. Leases
Finance leases
As lessee
Total lease payments ,including financing charges, under financeleases that do not transfer ownership of the leased property to theCompany and its consolidated subsidiaries for the years ended

March 31, 2002 and 2001, were ¥455 million ($3,415 thousand)and ¥630 million ($4,728 thousand), respectively.

Pro forma information of leased property such as acquisition cost, accumulated depreciation, obligations under finance leases, depreciation
expense and interest expense of finance leases that do not transfer ownership of the leased property to the lessee on an “as if capitalized”
basis as of and for the year ended March 31, 2002 and 2001, were as follows:

As of March 31, 2002
Acquisition
cost

Other property and equipment
Other investments
Total

¥
¥

2,217 ¥
95
2,312 ¥

As of March 31, 2001
Acquisition
cost

Other property and equipment
Other investments
Total

¥
¥

Millions of yen
Accumulated
depreciation

Net leased
property

986 ¥
55
1,041 ¥
Millions of yen
Accumulated
depreciation

2,767 ¥
103
2,870 ¥

Depreciation expense, which is not reflected in the accompanying
statements of income, computed by the straight-line method was

1,231 $
40
1,271 $Net leased
property

1,653 ¥
61
1,714 ¥

Acquisition
cost

Thousands of U.S. dollars
Accumulated
depreciation

16,637 $713
17,350 $Acquisition
cost

1,114 $
42
1,156 $

7,399 $
413
7,812 $

Thousands of U.S. dollars
Accumulated
depreciation

20,765 $773
21,538 $Net leased
property

9,238
300
9,538

Net leased
property

12,405 $458
12,863 $

8,360
315
8,675

¥413 million ($3,099 thousand) and ¥566 million ($4,248 thousand)for the years ended of March 31, 2002 and 2001, respectively.

Obligations, excluding financing charges, under such non-capitalized finance leases as of March 31, 2002 and 2001, were as follows:
Thousands of
U.S. dollars

Millions of yen

2002

Due within one year
Due after one year
Total

¥
¥

23

406 ¥
912
1,318 ¥

2001

372 $
836
1,208 $

2002

3,047 $
6,844
9,891 $

2001

2,792
6,274
9,066

As lessor
Lease payments, excluding financing charges, to be received under finance leases as of March 31, 2002 and 2001, were as follows:
Thousands of
U.S. dollars

Millions of yen

2002

Due within one year
Due after one year
Total

¥

2001

2002

3 ¥
7
10 ¥

¥

14 $
42
56 $

2001

22 $
53
75 $

105
315
420

Operating leases
As Lessee
Obligations under operating leases as of March 31, 2002 and 2001, were as follows:
Thousands of
U.S. dollars

Millions of yen

2002

Due within one year
Due after one year
Total

¥
¥

2001

40 ¥
104
144 ¥

2002

36 $
117
153 $

300 $
781
1,081 $

2001

270
878
1,148

11. Segment information
Non-ferrous metals: Nickel, copper, aluminium, lead, zinc, tin,
antimony, and other alloys
Foods: Frozen seafoods and meat products
Petroleum and chemicals: Petroleum products, chemical products,
and cement
Other business: Machinery, lumber, and other.

Industry segment information
The Company’s and its consolidated subsidiaries’ operations areclassified into five industry segments as follows:
Steel: Steel bars and shapes, steel plates and sheets, special steels,
wire products, steel pipes, and steelmaking raw materials

Segment information by business category for the years ended March 31, 2002 and 2001, is as follows:Year ended March 31, 2002
Steel

Net sales
Costs and expenses
Operating income
AssetsDepreciation
Capital expenditure¥¥¥338,591 ¥
333,363
5,228 ¥
141,775 ¥
1,281
468

Non-ferrous
metals54,247 ¥52,985
1,262 ¥
16,339 ¥
88
26

Foods

86,171 ¥84,694
1,477 ¥
28,283 ¥52
25

Year ended March 31, 2002
Steel

Net sales
Costs and expenses
Operating income
AssetsDepreciation
Capital expenditure$ 2,541,020 $2,501,786$
39,234 $$ 1,063,978 $
9,614
3,512

Non-ferrous
metals407,107 $397,636
9,471 $
122,619 $660
195

Millions of yen
Petroleum
Other
and chemicals
business

Foods

106,528 ¥106,065463 ¥
16,537 ¥22
1340,077 ¥38,093
1,984 ¥
11,314 ¥355
144

Thousands of U.S. dollars
Petroleum
Other
and chemicals
business

Total

625,614 ¥615,200
10,414 ¥214,248 ¥
1,798
676

Total

Corporate

Consolidated— ¥ 625,614
3,897
619,097(3,897) ¥6,517
70,267 ¥ 284,515
79
1,877
34
710

Corporate

Consolidated

646,687 $ 799,460 $ 300,765 $ 4,695,039 $— $ 4,695,039
635,602795,985
285,876
4,616,885
29,246
4,646,131
11,085 $3,475 $ 14,889 $
78,154 $ (29,246) $48,908212,255 $ 124,105 $ 84,908 $ 1,607,865 $ 527,332 $ 2,135,197
390
165
2,664
13,493593
14,086
188
97
1,081
5,073
255
5,328

Corporate costs and expenses mainly consist of expenses ofadministrative departments.
Corporate assets mainly consist of cash and equivalents,
investment securities and assets of administrative departments.

As explained in Note 2, as of March 31, 2002, the Company andits consolidated subsidiaries adopted the new accounting standard
for financial instruments with respect to available-for-sale securities.
As a result of adopting the new accounting standard, Corporate
assets decreased by ¥808 million ($6,063 thousand).

24

Year ended March 31, 2001
Steel

Net sales
Costs and expenses
Operating income
AssetsDepreciation
Capital expenditure¥¥¥372,443 ¥366,300
6,143 ¥
141,239 ¥
1,087
569

Non-ferrous
metalsFoods

63,235 ¥ 100,019 ¥
61,413
97,796
1,822 ¥
2,223 ¥
14,891 ¥ 28,986 ¥
75
39
40
74

Year ended March 31, 2001
Steel

Net sales
Costs and expenses
Operating income
AssetsDepreciation
Capital expenditure$ 2,795,069 $2,748,968$
46,101 $$ 1,059,955 $
8,158
4,270

Millions of yen
Petroleum
Other
and chemicals
business

Non-ferrous
metals474,559 $
460,886
13,673 $111,752 $
563
300

Foods

109,009 ¥107,827
1,182 ¥
18,985 ¥2224

44,400 ¥41,436
2,964 ¥
17,585 ¥242
263

Thousands of U.S. dollars
Petroleum
Other
and chemicals
business

Total

689,106 ¥674,772
14,334 ¥221,686 ¥
1,465
970

Total

Corporate

Consolidated— ¥ 689,106
4,051
678,823(4,051) ¥ 10,283
66,489 ¥ 288,175
82
1,547
108
1,078

Corporate

Consolidated

750,612 $ 818,079 $ 333,208 $ 5,171,527 $— $ 5,171,527
733,929809,208
310,964
5,063,955
30,401
5,094,356
16,683 $8,871 $ 22,244 $ 107,572 $ (30,401) $77,171
217,531 $ 142,477 $ 131,970 $ 1,663,685 $ 498,979 $ 2,162,664
293
165
1,816
10,995615
11,610
555
180
1,974
7,279
811
8,090
in Steel, ¥1 million ($8 thousand) in Non-ferrous metals, ¥1,859
million ($13,951 thousand) in Foods, ¥103 million ($773 thousand)in Petroleum and chemicals and ¥39 million ($293 thousand) in
Other business. Assets increased by ¥13 million ($98 thousand) in
Steel, ¥41 million ($308 thousand) in Non-ferrous metals, ¥1,859
million ($13,951 thousand) in Foods, ¥103 million ($773 thousand)in Petroleum and chemicals and ¥39 million ($293 thousand) in
Other business and decreased by ¥649 million ($4,871 thousand) in
Corporate.
As explained in Note 2, effective April 1, 2000, the Company andits consolidated subsidiaries adopted the revised accounting
standard for foreign currency translation. As a result of adopting therevised accounting standard, operating income decreased by ¥9million ($68 thousand) in Steel, ¥1,495 million ($11,220 thousand)in Foods, ¥2 million ($15 thousand) in Other business. Corporate
assets increased by ¥969 million ($7,272 thousand).

Corporate costs and expenses mainly consist of expenses ofadministrative departments.
Corporate assets mainly consist of marketable securities,
investment securities and assets of administrative departments.
As explained in Note 2, effective April 1, 2000, the Company andits consolidated subsidiaries adopted the new accounting standards
for employees’ retirement benefits. As a result of adopting the new
accounting standard, operating income increased by ¥58 million($435 thousand) in Steel, ¥6 million ($45 thousand) in Non-ferrous
metals, ¥8 million ($60 thousand) in Foods, ¥5 million ($38
thousand) in Petroleum and chemicals, ¥7 million ($53 thousand) in
Other business and ¥17 million ($128 thousand) in Corporate.
Corporate assets increased by ¥359 million ($2,694 thousand).
As explained in Note 2, effective April 1, 2000, the Company andits consolidated subsidiaries adopted the new accounting standard
for financial instruments. As a result of adopting the new accounting
standard, operating income increased by ¥12 million ($90 thousand)25

Overseas net sales
Overseas net sales include exports and offshore sales by theCompany and its consolidated subsidiaries, excluding sales byforeign subsidiaries to Japan.

Overseas net sales of the Company and its consolidated subsidiaries for the years ended March 31, 2002 and 2001, were as follows:Year ended March 31, 2002

Millions of yen
Other
areas

Asia

Overseas net sales
Percentage of consolidated net sales¥

71,093 ¥
11.3%

Total

10,411 ¥
1.7%

Asia

81,504 $13.0%

Thousands of U.S. dollars
Other
areas

533,531 $78,131 $Total

611,662“Asia” consists principally of sales to China, South Korea, Thailand and Singapore.
“Other areas” consist principally of sales to U.S.A. and Saudi Arabia.

Year ended March 31, 2001

Millions of yen
Asia

Overseas net sales
Percentage of consolidated net sales¥

Thousands of U.S. dollars

Other
areas

77,729 ¥
11.3%

Total

10,786 ¥
1.5%

Asia

88,515 $12.8%

583,332 $

Other
areas

Total

80,946 $664,278“Asia” consists principally of sales to China, South Korea and Thailand.
“Other areas” consist principally of sales to U.S.A. and Saudi Arabia.

12. Contingent liabilities
At March 31, 2002 and 2001, the Company and its consolidated subsidiaries were contingently liable as follows:
Thousands of
U.S. dollars

Millions of yen

2002

As endorsers of export letters of credit and notes discounted
As guarantors of indebtedness¥

13. Subsequent events
At the ordinary general meeting of stockholders of the Company
held on June 27, 2002, the following appropriation of retained
earnings was approved:
Millions of yen

Cash dividends
Transfer to legal reserve¥¥

1,058 $
106 $Thousands of
U.S. dollars

7,940
795

26

4,982 ¥
1,679

2001

4,498 $
1,295

2002

37,388 $12,6002001

33,756
9,719

Report of Independent Public Accountants

To the Stockholders and the Board of Directors of
Hanwa Co., Ltd.:We have audited the accompanying consolidated balance sheets of Hanwa Co., Ltd. (aJapanese corporation) and subsidiaries as of March 31, 2002 and 2001, and the related
consolidated statements of income, stockholders’ equity and cash flows for the years thenended, expressed in Japanese yen. Our audits were made in accordance with generally
accepted auditing standards in Japan and, accordingly, included such tests of the accounting
records and such other auditing procedures as we considered necessary in the circumstances.
In our opinion, the consolidated financial statements referred to above present fairly the
consolidated financial position of Hanwa Co., Ltd. and subsidiaries as of March 31, 2002 and2001, and the consolidated results of their operations and their cash flows for the years thenended in conformity with accounting principles generally accepted in Japan (Note 1) applied
on a consistent basis during the periods, except for the new accounting policies in thefollowing paragraph.
As explained in Note 2, in the year ended March 31, 2001, Hanwa Co., Ltd., and subsidiaries
prospectively adopted new Japanese accounting standards for retirement benefits, financial
instruments and foreign currency translation.
Also, in our opinion, the U.S. dollar amounts in the accompanying consolidated financial
statements have been translated from Japanese yen on the basis set forth in Note 1.

Osaka, Japan
June 27, 200227

Network of Hanwa Co., Ltd.

Domestic Offices
OFFICE
Osaka
Tokyo
NagoyaTohokuKyushuADDRESS
Hanwa Bldg., 4-3-9 Fushimi-machi, Chuo-ku, Osaka 541-8585, Japan
1-13-10 Tsukiji, Chuo-ku, Tokyo 104-8429, Japan
Chunichi Bldg., 4-1-1 Sakae, Naka-ku, Nagoya 460-8441, Japan
Sendai Daiichi Seimei Tower Bldg., 4-6-1 Ichiban-cho, Aoba-ku, Sendai 980-0811, Japan
Nihon Seimei Hakataekimae 2nd Bldg., 4-1-1, Hakataekimae, Hakata-ku, Fukuoka 812-0011, JapanTELEPHONE
06-6206-3270
03-3544-2171
052-262-2371
022-227-7981
092-471-7121

FACSIMILE
06-6206-3371
03-3544-2351
052-262-8819
022-227-7969
092-471-7060

Overseas Offices
OFFICENew York
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Vancouver
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Beijing
Qingdao
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Chongqing
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Hong Kong
Taipei
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Bangkok
Kuala Lumpur
Singapore
Tawau
Jakarta
Mumbai
TehranKuwaitRiyadhJeddahLas Palmas
LondonADDRESSTELEPHONE
FACSIMILE
Parker Plaza, 6th Floor, 400 Kelby Street, Fort Lee, New Jersey 07024, U.S.A.
1-201-363-4500
1-201-346-9890
900 4th Avenue, Suite 1640, Seattle, Washington 98164, U.S.A.
1-206-622-2102
1-206-622-6464
Suite 515, 9800 Richmond Avenue, Houston, Texas 77042, U.S.A.
1-713-978-7904
1-713-978-7790
18300 Vonkarman Avenue, Suite 405, Irvine, California 92612, U.S.A.
1-949-955-2780/2781
1-949-955-2785
Suite 502, 1001 West Broadway Vancouver, British Columbia, V6H 4B1, Canada
1-604-876-1175
1-604-876-1085
Carrera 9A No. 99-02, Oficina 804, Edificio CITIBANK Bogota, D.E. Colombia
57-1-618-2059
57-1-618-2059
Room 2501-1, Korea World Trade Center Bldg., 159-1, Samsung-Dong, Kangnam-ku, Seoul, 135-729, R.O.Korea
82-2-551-5387
82-2-551-5575
Room 801, Beijing Fortune Building, 5 Dong San Huan Bei-lu, Chaoyang District, Beijing 100004, P.R.China 86-10-6590-8331~33
86-10-6590-8340
Crowne Plaza Qingdao, Room No.601, Hongkong Middle Road 76, Qingdao City, Shangdon Province 266071, P.R.China
86-532-577-9990
86-532-577-9630
Senmao Bldg., 13F, 147 Zhongshan Street, Dalian, Liaoning Province 116011, P.R.China
86-411-368-6954
86-411-368-6934
Room 905/906, Aetna Tower,No.107 Zhunyi Road, Shanghai 200335, P.R.China
86-21-6237-5260/5265~7 86-21-6237-5268/5269
Room 2203, Metropolitan Tower, 68 Zhon Rong Lu, Central District, Chongqing 400010 P.R.China
86-23-6381-1101
86-23-6381-7385
Room 2501, Lippo Tianma Plaza, No.1 Wu Yi Road, Fuzhou City, Fujian Province, P.R. China
86-591-3354165
86-591-3345202
Unit 3006-3007,30th Floor, Dong Shan Plaza, 69 Xian Lie Zhong Road, Guangzhou City,
86-20-8384-3885
86-20-8384-8875
Guangdong Province 510095, P.R. China
Longxi Industrial Zone, Zhouxi Management Area, Huangcun District, Dongguan, Guangdong Province 511715 P.R.China
86-769-240-6428
86-769-240-6448
Unit 1909-1910, 19th Floor, Bank Of China Tower, 18 Zhongshan 3rd Road, Zhongshan, Guangdong Province P.R.China
86-760-332-0706
86-760-332-0696
Unit 3201-3 32nd Floor, Vicwood Plaza, 199 Des Voeux Road Central, Hong Kong852-25450110
852-25422544
Room 303 3rd Floor. No. 79, Chung Shan North Road Sec.2, Taipei, Taiwan, R.O.C.
886-2-2560-2214~17886-2-2571-0693
Room B, 17th Floor, No.7 Su-Wei 4th Road, Kaohsiung, Taiwan, R.O.C.
886-7-338-5508~10
886-7-338-5433
17th Floor, Vorawat Bldg., 849 Silom Road, Bangrak, Bangkok, 10500 Thailand
66-2-635-1230
66-2-635-1220/1221
Suite 8-12B-3, Level 14 (12B), Menara Olympia 8, Jalan Raja Chulan, 50200 Kuala Lumpur, Malaysia
60-3-2078-2311
60-3-2078-2380
20 Cecil Street, #11-02 SINGAPORE EXCHANGE, Singapore, 049705
65-536-7822
65-536-7855
P.O. Box 1231 91037 Tawau, Sabah, Malaysia
60-89-750016~7
60-89-750019
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62-21-3902293
62-21-3902294
c/o M.D. Jagat A/5 Kamdar Building, Gokhale Road South, Dadar, Mumbai 400 028, India
91-22-4305083
91-22-4308531
6th Floor, Building, No.10 8th Street, Mirzaye-Shirazi Avenue, Tehran 15967, Iran
98-21-890-3537
98-21-890-4723
c/o Al-Sabih Engineering & Trading Co. P.O. Box No. 1366, Safat 13014, Kuwait
965-243-7259
965-243-7263
Room 24, 6th Floor, Danat Trading Center, Abdullah Al-Ahmad Street, Sharq, Kuwait
P.O. Box 68974, Riyadh 11537, Saudi Arabia
966-1-478-3022
966-1-479-2459
c/o Office No. 219, Kaki Center P.O. Box 1224, Jeddah 21431, Saudi Arabia
966-2-661-0796
966-2-661-0796
C/Luis Morote, NO.6-3F , Edf. Catalunia 35007-Las Palmas De Gran Canaria, Spain
34-928-270894
34-928-275735
5th Floor, Finland House, 56 Haymarket, London, SW1Y 4RN. U.K.
44-20-7839-4448
44-20-7839-3994●London●Vancouver
Seattle ●DalianBeijing●Teheran●Las Palmas●Kuwait●Riyadh●Jeddah● Seoul●●Chongqing
Qingdao●
Guangzhou● ●Shanghai
FuzhouDongguan● ●●Taipei
Zhongshan●● ●Kaohsiung●●MumbaiHong Kong●Bangkok

Kuala Lumpur ●Singapore ●●Tawau●New York

Los Angeles●●Houston●Bogota●Jakarta

28

Directors and Statutory Auditors

Investor Information(As of March 31, 2002)

Company Name
Hanwa Co., Ltd.
阪和興業株式会社
Hanwa Bldg., 4-3-9 Fushimi-machi,
Chuo-ku, Osaka 541-8585, Japan

President and C.E.O.

Shuji Kita

北

修爾

中林

満之

Date of Establishment
April 1947

嘉本

隆行

休井

匡

Stated Capital¥45,651 million ($342,597 thousand)Senior Managing Director

Mitsuyuki Nakabayashi
Managing Directors

Takayuki Kamoto
Takashi Kyui
Shosaburo Bando
Kunio Matsuda
Noriyuki Hanafusa

坂東祥三郎
松田

邦雄

花房

伯行

Number of Shares of Common Stock Issued
211,663,200 shares
Number of Shareholders
26,810

Directors

Minoru Masuda
Kazuo Yokota
Masaomi Amao
Tatsuyuki Yamasaki
Hiroshi Omoto
Hironari Furukawa
Shinsuke Kitamura
Satoru Hara
Tetsuro Akimoto
Yoshifumi Nishi
Takuji Kita

増田

実

横田

和夫

天尾

正臣

山崎

達之

大本

博

古川

弘成

北村

信輔

原

惺

秋元

哲郎

西

吉史

北

卓治

Stock Exchange Listings
The First Section of the Tokyo Stock Exchange
The First Section of the Osaka Stock Exchange
Transfer Agent
The Sumitomo Trust and Banking Co., Ltd.
AuditorAsahi & Co.
Number of Employees
844

Statutory Auditors

Minoru Kifuku
Kazushi Higashida
Takao Ikematsu
Hironari Masago

喜福

稔

東田

和四

池松

孝雄

真砂

博成

29

http: // www.hanwa.co.jp

Printed in Japan