Shifting emphasis fromvalue to growth!

ANNUAL REPORT 2004
For the Year Ended March 31, 2004

エステー化学AR2004

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S.T. Chemical Co., Ltd. was founded in1948 as a producer of mothproofing
agents. Today, the Company principally
manufactures household products, including deodorizers and air fresheners aswell as mothproofing agents. As a firmthat contributes to improved lifestyles,
S.T. Chemical seeks to become theworld’s leading company in this nichemarket. Based on principles establishedby president Takashi Suzuki, who assumed office in September 1998, S.T.
Chemical has sought to foster “powerbrands,” create better lifestyles throughstronger global alliances, and enhance
corporate value.
Our “refreshing the air” management
reforms have enabled us
to transform the Company
by bestowing it with aleaner business structure.

Our
Value
Contents
Consolidated Financial Highlights
A Message from Management
S.T. Chemical at a Glance
Review of Operations
Management Reform and Hit Product Trajectory
A Strategy of Growth Through Alliances
Management’s Discussion and Analysis
Corporate Governance
Financial Section
Corporate Information
Investor Information

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Consolidated Financial Highlights
Thousands of
U.S. dollars (Note 2)

Millions of yen

2000

2001

2002

2003

2004

2004

¥26,550

37,89636,92138,06645,082$426,549

2,048

2,399

1,983

3,798

3,419

32,348Net Income

275

750

509

1,431

1,451

13,731

R&D Expenses

281

343

408

490

413

3,908

Capital Expenditures

1,160

1,600

1,137

733

404

3,819

Total Assets

34,53834,382

32,921

34,73236,269343,161

Shareholders’ Equity

26,16525,78225,606

26,04826,693

252,555

Equity Ratio (%)

75.8

75.0

77.8

75.0

73.6

73.6

ROE (Note 3)

1.00

2.90

1.99

5.50

5.50

5.50

ROA (Note4)

6.59

7.98

6.94

11.67

10.07

10.07

(Note 1)Net Sales
Operating Income

Per Share

Yen

Net Income¥

Shareholder’s Equity
Cash Dividends

U.S. dollars

8.45

23.60

16.37

46.53

48.87

$0.46

816.29822.21

833.01

874.85924.33

8.75

6.00

8.00

8.00

10.00

17.00

0.16

Notes: 1. During this period, S.T. Chemical changed its fiscal year from the 12-month period from July 1 though June 30 of the following year to the 12-monthfrom April 1 through March 31 of the following year. To adjust to this change, this period covered the nine months from July 1, 1999 through March
1, 2000.
2. All dollar figures herein refer to U.S. currency. Yen amounts have been translated, for convenience only, at ¥105.69= $1, the approximate exchange
rate as at March 31, 2004. Billion is used in the American sense of a thousand million.
3. ROE = Net Income / Shareholders’ Equity
4. ROA = (Operating Income + Interest and Dividends Received + Purchase Discount) / Total Assets.

Net Sales

Net Income(Millions of yen)

(Millions of yen)

26,550 37,896 36,921 38,066 45,082

275

750

Total Assets/Shareholders’ Equity
509

1,431 1,451

50,0001,500

40,00040,0001,200

32,00030,000900

24,00020,000600

16,00010,000

300

8,000

0

0

2000 2001

2002

2003

2004

(Millions of yen)
34,538 34,382 32,921
26,165 25,782 25,606

34,732 36,269
26,048 26,693

2000

2003

0

2000

2001

2002

2003

2004

2001

Total Assets

2002

2004

Shareholders’ Equity

1

A Message from Management

The management reforms we have pursued under the slogan, “Refreshing the air,” aresteadily showing results as our medium-term management plan enters its final stages.
We have had a great deal of favorable customer response to our Shoshu Plug series, which
was born of our concept, “Doing things nobody else is doing.”
Pursuing our alliance strategy, we have forged ties with Sumitomo 3M. This will not only
strengthen the capabilities of the Group, but will also further our efforts to become theworld’s leading company in this niche market.

Putting Innovative Management into Practice

We are at long last beginning to see some results fromthe management revolution pursued continuously
throughout the five and a half years of my tenure as president. We have standardized values throughout theCompany, put ourselves on a vector for renewed growth,and successfully implemented our management strategies.
In the fiscal year ended March 31, 2004, consolidated net sales increased by 18.4%, to ¥45,082 million, as
all areas except the cloth care business achieved sales
growth. Operating income declined by 10.0%, to ¥3,419
million, but net income rose 1.4%, to ¥1,451 million.
Riding the wave of our growth strategy, the alliance
we concluded with Mycoal Co., Ltd. in July 2003 hasafforded us access into the disposable warmer business,
net sales from which were ¥5,712 million, lower thanforecast at the beginning of the fiscal year as the resultof a mild winter. However, the Company’s market sharein this business area broke through the 20% level, moving us from 3rd largest to 2nd largest in the industry. At
the same time, though, intense competition in the disposable warmer business and with existing products has
forced an increase in marketing expenses, and operating profit declined as a result. The disposable warmer
business is an opening gambit in the expansion of a new
business model for S.T. Chemical. Issues facing S.T.

2

Chemical during this fiscal year included a sweeping
re-examination of the Company’s marketing strategy, in
response to an unprecedented market environment. In
addition, the air care business is replacing cloth care as
the Company’s mainstay, so we were able to shift our
main business from utility goods to high-value-added
products.
The fiscal year ended March 31, 2004 was the final
stage of our medium-term management plan, which established a goal of ¥50.0 billion in consolidated net sales.
However, consolidated net sales were a satisfactory¥45.0 billion, which serves to highlight an important
issue facing the Company. S.T. Chemical has pursued
management strategies and rationalization with the goalof becoming “A sinewy and compact company,” and has
implemented sweeping structural reforms. This fiscal
year we are changing to a strategy of “covering our flanks
while attacking,” with the objective of taking operational
reform to a higher level and putting aggressive management into practice.
(1) During the past five and a half years, the Company
has reduced the number of products in its lineup by
approximately one-third, and inventories have contracted accordingly. The concentration ofmanagement resources on new products has increased their contribution to total net sales to over
40%, approximately double their previous level.

(2) The various divisions are concentrating resources inthe seven power brands, typified by Shoshu Riki,
Shoshu Pot, and Dasshutan, and have persevered in(4) Out of the conviction that the Company must change
in order to survive, S.T. Chemical has changed its
business structure. Inescapable and worsening pricebolstering their brand power so that they now command the top shares of their respective markets. As
a result of these efforts, these products account forcompetition has cast a pall of risk over the market
for cloth care products and other utility goods. Therefore, the Company has placed the greatest emphasis

60% of total net sales.
(3) S. T. Chemical is aiming to become the world’s lead-on the air care business, pursuing those customers
for whom fragrance is a priority, who form the market for high-value-added fragrance products, and thising company in this niche market by doing things noother company in the world does. Although the Company has relatively high-priced products such as thehas become the Company’s largest operation. In January 2004, S.T. Chemical established the Japan
Aroma Laboratory Co., Ltd., an independent research

Negative Ion Plug, it places a high priority on thedevelopment of other high-value-added products thatsell regardless of the fierce competition. The Com-institution dedicated to the study of fragrance andair, which have strong effects on the human bodyand spirit. Japan Aroma Laboratory will make a major

pany’s product development efforts are backed by aquick grasp of emerging trends, which allows us tooffer our customers new products andcontribution to the development of S.T. Chemical’s
air care business.

services while the concepts are still
fresh. I firmly believe that all employees share my sense of focus on thecustomer.

Among our growth strategies is the forging of alliances
to build a new business model. New business
opportunities are born through the fusion of eachcompany’s strengths in win-win scenarios.

3(5) Through partnerships with firms that have high sharesof international markets and strong technology development capabilities, such as Reckitt Benckiser,
Mycoal, and Sumitomo 3M, with whom we concluded a marketing tie-up in May 2004, S.T. Chemical isusing its significant marketing capabilities tostrengthen its position as a marketing firm.
Corporate GovernanceIn pursuit of the most important objective of corporate
governance–fair and stable operations that realize growthin shareholder value S.T. Chemical adopted a “company-with-committees structure” in June 2004. To heighten
management transparency and strengthen oversightfunctions, S.T. Chemical established auditing, nominating, and compensation committees, and outside directors
will make up a majority of each committee.
Shareholder Returns

The Company’s fundamental policy is to maintain a stable and satisfactory dividend payout, and we will move
forward to a dividend policy based on performance. To
improve investment efficiency over the long term, andtherefore shareholder returns, we will continue to acquire treasury stock. With the growth of internal
reserves, S.T. Chemical will also make strategic investments in product development and promotion, as well
as systems implementation and expansion. This will contribute to the future growth of the Company’s earnings
and shareholder value.

4

The concept of “selling an emotion” is more importantto the long-term growth of a manufacturer than theconcept of “selling a product.” Therefore, our approachis to further strengthen “power brands” throughcommunications activities and interaction with themarketplace.

This Fiscal Year

The theme of fiscal 2004 through 2005 is “Refreshingplemented. In addition, the Company must pursue busi-

the Air.” This means injecting fresh air into the workplace, into family life, and even into Japan, pursuinginnovation in all spheres and making this a year of ex-

ness rationalization and work to strengthen costcompetitiveness. Finally, the increased cash flows generated by these measures must be shifted to growth

citement. The Company’s business objectives are tobuild a solid customer base, which will require fostering brands, making the “baby chick” trademark a trusted

fields.
Most of the Company’s product categories hold thelargest or second-largest shares of their markets, which

one, and building a good system for interaction with ourcustomer base.
The Company’s management strategy is to strive formeans that S.T. Chemical commands an overwhelming
share of its markets. We believe that this is because wehave shifted from “making things” to “making custom-earnings growth through streamlining its product lineup, strengthening core businesses, and increasing costcompetitiveness. With regard to its growth strategy, theers,” employing our ability to understand our customer
base, which is one of the Company’s greatest strengths.
We continue to evolve into an enterprise that routinely

Company needs to foster its power brands. This will
mean restructuring and accelerating R&D activities andconducting new product development from the perspec-

creates innovative products and new markets.
We are grateful for your enduring support as the Company faces new challenges, maintains its evolving

tive of the customer, while centralizing some marketing
activities. Efforts to reduce costs need to be further
strengthened, and, to give the Company that lean andmanagement strategies and corporate culture, and endeavors to increase corporate value.
S.T. Chemical requests your continued understand-sinewy structure, the number of products in its lineup
needs to be further reduced and the Focus strategy im-

ing of the Company’s management strategies, and yoursupport for our efforts.
July, 2004

Takashi Suzuki
President and Chief Executive Officer,
Representative Director

5

S.T. Chemical at a Glance

ST Chemical products bring a touch of excitement to everyday life. Product development emphasizes
the value of understanding through listening, seeing and using, delivering unique products that areboth exciting and beneficial. For the current fiscal year we have adopted the theme of “refreshing theair,” pursuing innovative product development as we strive to create a powerful brand.
CATEGORY

Cloth care (mothproofing agents)

CATEGORY SHARE
Composition of Net Sales

Mothproofing and hygiene-related products

37%

2001

Hand care (gloves)

Thermal care (disposable warmers)

MAJOR BRANDS•Mushuda•Neopara

23%

2004

Composition of Net Sales
8%

8%

2001

2004

Composition of Net Sales•Family•Onpacks

13%

2004

Air care (deodorizers and air fresheners)

Household environment-related products
6

Composition of Net Sales

37%

2001

Humidity care (dehumidifiers)

Home care (other products)

41%

2004

Composition of Net Sales
10%

7%

2001

2004

Composition of Net Sales

8%

8%

2001

2004

•Shoshu Pot•Shoshu Riki
•Dasshutan•Negative Ion Plug
•Shaldan•Ambipur Fresh•DryPet•Sheet-type DryPet•Gekipika•Finish•Powers•Kome–touban

HIGHLIGHTS OF FISCAL 2004
Cloth Care stands alongside Air Care as a marketing priority. The Mushuda brand of odorless mothproofing agents offers a variety of products in its lineup, such as a walk-in closet type with a small
electric fan, in response to diversification in storage space. The Mushuda line is the leading brand of
products to protect clothing from insects. The Neopara line, with its traditional Japanese paper andtrusted orange packaging, has for many years been a familiar sight to consumers.

This group is involved with gloves for household and commercial use. The Family series of household
gloves not only helps protect against rough, dry skin, but they also contain squalene and aloe extract
to help keep hands supple, which has established them in a new position as a skin care concept.
Sales of commercial gloves are also growing steadily as marketing channels expand.

This Group was created in the summer of 2003 to handle disposable warmers as a domestic sales
agent for Mycoal Co., Ltd. By utilizing Mycoal’s technological expertise and ST Chemical’s marketing
capabilities, we are seeking to establish the Onpacks brand in the disposable warmer market.

Air Care is one of ST Chemical’s core businesses, and like Cloth Care, is a marketing priority. Marketleading products such as Dasshutan, which holds a share of over 50%, along with Shoshu Pot andShoshu Riki, have achieved a high level of consumer acceptance. Shoshu Plug, a plug-type electricroom deodorizer born of our “Doing things nobody else is doing” concept, has created a new market.
In recent years, we have expanded the market through the launch of major new products, such as
Negative Ion Plug and Essential OilIn refills.

Humidity Care includes a rich lineup of products, such as Dry Pet, which as been a market leader since its
launch, and Dry Pet Compact, designed to reduce waste. It also includes dehumidifying sheets that canbe placed in closets, drawers, and under bedding, as well as products for shoes and boots. These
products keep storage spaces free of humidity, odor and mildew. During the fiscal year under review, themarket for dehumidifying agents expanded considerably due to the cool summer and prolonged rainyseason, significantly boosting sales, particularly of the Dry Pet Skit disposable tank-type dehumidifier.

The Home Care Group handles various products that have special characteristics. Popular products
include Finish, a dishwashing powder for automatic dishwashers that we market through an alliancewith Reckitt Benckiser of the United Kingdom, the Zippers line of food-storage bags, the Gekipika lineof cleaning sponges with attached scouring pad, and Kome–touban, to keep rice free of insects.
During the fiscal year under review, sales of these products grew steadily due to expanding markets
and rising market shares.

7

Review of Operations

In the fiscal year ended March 31, 2004, consolidated net sales increased by 18.4%, to ¥45,082
million, as all areas except the cloth care business achieved sales growth. Operating income declined by 10.0%, to ¥3,419 million, but net income rose 1.4%, to ¥1,451 million.

8

Air Care (deodorizers and air fresheners)

Net Sales(Millions of yen)
17,36018,506

15,861
13,916

Shoshu Pot

Shoshu Riki

Negative Ion Plug

The Air Care Group is the Company’s core business. Whenthe latent market is considered, high expectations for future growth are justified. This business is the Company’s
chief marketing priority, and we are working to expand its
sales through the concentration of management resourcesin this area. Products such as Dasshutan, which commands
more than 50% of its market, Shoshu Pot, and Shoshu Riki
are iconic brands in their markets and have achieved ahigh level of market acceptance. This was made possible

Shoshu Plug

Dasshutan

2001

2002

2003

2004

by the application of the Company’s technological and R&D
capabilities. Shoshu Plug created an entirely new market
for plug-type electric room deodorizers. In recent years theCompany has worked to expand and invigorate the market
through the introduction of innovative new products suchas the Negative Ion Plug and Essential OilIn refills.
The expansion of sales of the Air Care Group’s core
brands, Shoshu Riki, Shoshu Plug, and Dasshutan, brought
about a 6.6% growth in net sales, to ¥18,506 million.

Cloth Care (mothproofing agents)

Net Sales(Millions of yen)

14,168
12,167

Mushuda(for closets)

Mushuda(for drawers)

Mushuda Fan(for walk-in closets)

The Cloth Care Group is second only to the Air Care Group
as a marketing priority. Mushuda brand odorless mothproofing agents are for walk-in closets with small ventilationfans, and we have deployed a varied product lineup in response to the diversification of storage spaces. Mushuda
products are accepted as the most reliable brand for the

Neopara Ace

2001

2002

11,491

2003

10,6562004

protection of clothing from insects. Neopara Ace, in its
orange package of Japanese paper, has long been a familiar sight to consumers.
Due primarily to the effects of price competition, net
sales in the Cloth Care Group declined 7.3%, to ¥10,656
million.

Humidity Care (dehumidifiers)

Net Sales(Millions of yen)

3,766
3,200

3,078
2,766

Dr yPetDr yPet Sheet

Binchotan Dr yPet

S.T. Chemical has led this market since launching DryPet.
In addition to our DryPet Compact, with its environmentallyconscious design, our broad lineup includes products fordrawers and clothes closets, dehumidifier sheets for placing
underneath bedding, and products for shoes and boots.
To be released this fall, Dry Pet is an air care product

Dr yPet Compact

2001

2002

2003

2004

that removes humidity and odors.
A cool summer and a long rainy season lent significant
impetus to the dehumidifier market. Primarily on thestrength of the tank-type DryPet Skit, net sales grew 11.3%,
to ¥3,078 million.

9

10

Hand Care (gloves)

Family Thin

Family Moisturizing
Thin Vinyl Gloves

Net Sales

Family Moisturizing
Latex Dispo-Gloves(Millions of yen)

3,152

3,024

3,166

2001

2002

2003

3,460

2004

Family Moisturizing
Knit Gloves

The Family series of household gloves makes daily washing chores a pleasure. More than just protecting the hands,
these gloves help keep hands beautiful by preventing dryskin.
The Company introduced premium gloves impregnatedwith squalene oil or aloe extract, which is a new applica-tion for skin care products.
In response to the changes in demand described above,
new household glove products were promoted from a new
standpoint, while marketing channels for industrial gloves
expanded steadily. As a result, net sales in the Hand Care
Group increased 9.3%, to ¥3,460 million.

Home Care (other products)

Net Sales(Millions of yen)

3,666
3,279
2,884

2001

FinishUltra Powers

Zippers

Gekipika Sponge

This Group handles various special-purpose products. Hit
products include Finish, a dishwashing powder for automatic dishwashers that we market through an agreementwith Reckitt Benckiser of the United Kingdom, Ultra Powers that removes mildew from washing machine tubs, theZippers line of food-storage bags, Gekipika, a line of highperformance cleaning sponges with attached scouring pad,

2,667

2002

2003

2004

Kome–touban

and Kome–touban, which protects uncooked rice from insects.
This fiscal year, sales of Finish dishwashing powder increased as S.T. Chemical won a larger share of an expanding
market. Sales of Gekipika scourer sponges and Kome–
touban insect repellant were also healthy, and net sales inthe Home Care Group rose 11.8%, to ¥3,666 million.

Thermal Care (disposable warmers)

Net Sales(Millions of yen)

5,712

2004

Haru-Onpacks

Super-Onpacks withcharcoal powder

Onpacks for medicaluse (scentless)In the summer of 2003, S.T. Chemical became the exclusive domestic distributor for disposable warmers produced
by Mycoal Co., Ltd. Employing the marketing capabilities
of S.T. Chemical, the Company is seeking to establish theOnpacks brand in the disposable warmer market.
Katamomi Onpacks and Koshimomi Onpacks, which
use a newly developed gel with aloe supplements, are health

Ashipoka-Sheetcare products that are directly applied to the skin.
Adversely affected by a market slump produced by amild winter, the disposable warmer business did not meetits net sales target for the fiscal year. Net sales were ¥5,712
million. This Group commenced operations in July 2003,
so the previous year’s figure is not available for comparison.

11

Management reform•Medium-term management plan
(2000–2005) announced•Announced alliance strategy•Commenced balance-sheet
restoration and Focus strategy•Primary emphasis shifted to air
care field•Executive officer system implemented•Advocated the concept of“A sinewy and compact company”•Term of office for directors
reduced from two years to one•Marketing agreement reached for
Reckitt Benckiser's dishwashingpowder for automatic dishwashers•Auto care product, gift productand industrial product operations
spun off (S.T. Trading Co., Ltd.)•Personnel systems reformed/
Performance-based compensation
system introduced•Streamlining of organization commenced (into four Groups/four Levels)•Marketing alliance concluded with
Sara Lee (two-in-one liquid air
freshener and bowl cleaner)•Cost Reduction Team reinforced•R&D Center established

Hit products and sales
50,000Net Sales (millions of yen)

40,00037,896*35,44135,40037,336
26,55030,000

Shoshu Plug

Shoshu Pot

20,000This huge hit product uses
a super clear gel to absorb
odors and sets a new standard in toilet deodorizers.

Dasshutan
Shoshu Riki
Shoshu Riki’s product concept is “strong and longlasting.” For room and toilet, it has grown to be a
power brand selling 30 million units annually.

10,000*To adjust its fiscal yearchange, this period was a ninemonth period from July 1999
through March 2000. The dotted line shows where these figures have been projected to a
12-month period for purposesof comparison.

Market data

1998

1999

One of the Air Care Group’s
core brands, this series
uses binchoutan, a special
charcoal made from thequercus phyllyraeoides oak.
This product held morethan a 50% share of its
market this fiscal year.

2000

The Company created a
new market for this innovative plug-type electric room
deodorizer. Over 18 million
have been sold since theirintroduction (as of July2004).

2001

SRI Monthly data
Period : April 2003~March 2004
Area : The whole country,
by market category

Air Care (Air Fresheners)

Fridge Deodorizers

Toilet Bowl and Air Fresheners
S.T.Chemical

10.9 %
S.T.
ChemicalS.T.
Chemical37.7 %

53.6 %(Excluding cloth deodorizers)
12(Use : refrigerators)

•Product lineup reduced from high of
862 to 297•Idle assets sold•Stock option program introduced•Five manufacturing facilities consolidated into three•Emphasis placed on cloth care and air
care product strategy•“Refreshing the air” management
reforms•S.T. Mycoal Co. established to provide
disposable warmer marketing andsales support•Japan Aroma Laboratory Co., Ltd.
established•Car Chemical care product operations
spun off into subsidiary. (S.T. Auto
Co.,Ltd)•Sales agreement to be concluded
with Sumitomo 3M•Converted to a "company-with-committees" structure (June)•Shifting from a value-oriented management strategy to an expansion-centered, growth oriented management
strategy in connection with reform of
the business structure.

50,00045,08238,06636,921

Value Growth

Hit Products in 2004

Gekipika Metal and Sponge
Gekipika Sponge with Scourer
This unique product series
meets consumer demands
for metal scourers, sponges, and scrubbers, andnet sales have risen strongly.

Squalene Gloves
The lining of these gloves
is impregnated with squalene oil, taking them a step
above ordinary gloves. Thisis a new perspective on anecessar y item, and net
sales are growing.

2002

Negative Ion Plug

Kome–toubanThis insect repellant forrice uses red-pepper extract, and has cumulative
sales of 3.4 million units(as of February 2004). The
product won the “Best
Name Award” from the Nikkan Kogyo newspaper, andhas already become ahousehold name.

Our second plug-type electric room deodorizer, thisproduct is also a negative
ion generator. This is ahigher-priced product, butalso has high added value,
and we are working toboost sales.

2003

Cloth Care

2004

Humidity Care

S.T.
ChemicalS.T.
Chemical44.2 %

39.9 %We renewed and expanded our product lineup
for Shoshu Pot, Shoshu Riki and Shoshu Plug.
Our market share for these products grew asadvertising led to higher sales.

2005

Hand Care

S.T.
Chemical28.6 %(Excluding industrial gloves)13

A Strategy of Growth Through Alliances

S.T. Chemical is employing its marketing capabilities to develop strategic alliances. Domestically, the Company has established an alliance with Mycoal Co., Ltd., a manufacturer of disposable warmers; internationally, S.T. Chemical has forged ties with Reckitt Benckiser, a maker ofdishwashing powder for automatic dishwashers, and with Sara Lee, producer of Ambi-Pur
LiquiFresh. A new agreement with Sumitomo 3M in 2004 has made S.T. Chemical the domestic
agent for Scotchgard and Nexcare products. Within the year, S.T. Chemical will establish a joint
venture company with Sumitomo 3M to sell both companies’ household products.
Allied Firms

Type of Alliance

Reckitt Benckiser

Marketing Alliance,
1Domestic Agent

ProfileIn autumn 2000, concluded a business alliance covering Japanese domestic
sales with the world’s number one maker of household cleaners, Reckitt
Benckiser. The Company is marketing Finish dishwashing detergent for dishwashers, which has a 40% share of the world market. This was the first salvo
in our global alliance strategy, and with it the Company gained entry into this
rapidly growing new market.

Sara Lee Corporation

Marketing Alliance,
1Domestic Agent

Commenced sales of Sara Lee’s Ambi-Pur LiquiFresh in 2001. This productholds the top share of its markets in the principal economies of Europe andNorth America. The Company has also participated in joint development of aperipheral device for compatibility with Japanese tank-type toilets.

Mycoal Co., Ltd.

Marketing Alliance,
1Domestic Agent,
2Sales Subsidiary
Established

Sumitomo 3M

Established S.T. Mycoal Co., Ltd. in July 2003 with 100% capitalization by S.T.
Chemical to conduct planning and marketing of Mycoal’s core products–
disposable warmers and other heating devices. With this, we have entered a
new field of business.

Marketing Alliance,
1Domestic Agent,
2Joint Venture

From August 2004, S.T. Chemical will commence exclusive domestic sales ofSales Company
Establishedcal and Sumitomo 3M will jointly establish a sales company that will handle S.T.

Sumitomo 3M’s water- and oil-repellent household spray, Scotchgard, andNexcare first aid products for the home. Also, by the end of 2004, S.T. ChemiChemical’s Gekipika (household sponges), Zippers (food storage bags), andFamily (household gloves) brands, together with Sumitomo 3M’s Scotch-Britebrand products. This will strengthen the Company’s total merchandising capability in the household products category, and will expand the household products businesses of both and S.T. Chemical and Sumitomo 3M through thesynergies arising from brand power and marketing power.

Alliance with Reckitt Benckiser
Reckitt Benckiser, headquartered in London, manufactures and sells unique
household cleaners and laundry detergents. They pioneered the premium-cleaner niche market, and made themselves the world’s top household cleaner firm.
Having built up a marketing network that now extends to 45 countries, Reckitt
Benckiser has a 40% share of the world market for dishwashing detergent for
dishwashers, making it far and away the top firm in that field. In the fall of
2000, S.T. Chemical concluded an agreement with Reckitt Benckiser to market that company’s products in Japan, and is actively engaged in the new market
for specialty detergents for dishwashers, which is expected to grow rapidly.

14

Exclusive Marketing Agreement for Sara Lee Products
Ambi-Pur LiquiFresh is a two-in-one toilet bowl cleaner and air freshener
manufactured and sold by worldwide consumer product manufacturer Sara Lee,headquartered in Chicago. It commands the largest share of its market, whichis centered in the countries of Europe and North America.
This agreement coincides with the wide proliferation of tank-type flush
toilets in Japan. S.T. Chemical and Sara Lee jointly developed a holder to fit in
the tank for the Japan-market version called Ambi-Pur Fresh.
In addition to this joint development, S.T. Chemical has an exclusive agreement to market the products of Sara Lee Japan Ltd.

Marketing Alliance with Mycoal Co., Ltd. and Mycoal Products Co., Ltd.
S.T. Chemical became the exclusive domestic marketer of Mycoal products on
July 1, 2003. Mycoal’s core products are disposable warmers and other heating devices. S.T. Chemical has established a wholly owned subsidiary for the
purpose of conducting the planning and marketing for designated products.
S.T. Chemical’s product lineup was heavily biased toward summer, but thisalliance has strengthened the Company’s array of winter products. Mycoal has
an operational foundation in eastern Japan, but S.T. Chemical’s nationwide
marketing network is boosting distribution of Mycoal’s products. In addition,
Mycoal’s technology development capabilities and S.T. Chemical’s marketingstrength are being employed to develop new products for the disposable warmer market.

Marketing Alliance with Sumitomo 3M
Under the terms of S.T. Chemical’s marketing agreement with Sumitomo 3M,
on August 1, 2004 S.T. Chemical will commence exclusive domestic sales of
the water- and oil-repellent spray, Scotchgard, and Nexcare first aid products
for the home.
S.T. Chemical and Sumitomo 3M will by this autumn establish a new joint
venture company to market household consumables and sundries, such as
Gekipika, Zippers, and Family brand gloves, as well as household sponges andother Scotch-Brite products. This is expanding the household products businesses of both and S.T. Chemical and Sumitomo 3M.

15

Management’s Discussion and Analysis

Net sales

Other income (expenses)

Bolstered by the performance of the Thermal Care Group(disposable warmers), which commenced operations thisOther expenses declined by 42.9% to ¥673 million(US$6,363 thousand), chiefly because there were no pay-

fiscal year, net sales rose 18.4%, or ¥7,016 million, to¥45,082 million (US$426,549 thousand). Excluding thisgroup and the Cloth Care Group (mothproofing agents),

ments in connection with early retirement in the period
under review. Also, thanks to the rise in stock prices, theCompany posted virtually no loss on sale and write-down

where more intense competition shrank sales and forced
price reductions, a 5% gain in net sales was achieved.
The Humidity Care Group (dehumidifiers) and Homeof marketable securities for the first time in several years.

Care Group (other products) made notable contributions.

Net income increased from last fiscal year’s ¥1,431 million to ¥1,451 million (US$13,731 thousand).

Cost of sales
The increase in net sales brought a corresponding
26.7%, ¥5,266 million increase to ¥24,973 million

Income before income taxes and minority interests
were ¥2,746 million, an increase of ¥127 million overlast fiscal year’s ¥2,619 million. Income taxes increased(US$236,282 thousand) in cost of sales, and the cost of
sales ratio increased 3.6 percentage points to 55.5%.
This was principally due to the Cloth Care Group’s pricefrom last term’s ¥1,248 million to ¥1,273 million(US$12,043 thousand). Net income per share was ¥48.87(US$0.46), in comparison with last fiscal year’s ¥46.53.

revisions to match those of the current market, and anincrease in the percentage of products with comparatively low profit margins in total sales.

Financial position

Net income

Operating income

Total assets rose by ¥1,536 million to ¥36,269 million(US$343,161 thousand). Current assets contracted
2.3%, or ¥4,960 million, to ¥21,540 million

Selling, general and administrative expenses (SG&A)
rose 14.5%, or ¥2,107 million, to ¥16,660 million(US$157,633 thousand). As a percentage of net sales,(US$203,801 thousand). Principal factors in this included a 12.4%, ¥558 million increase to ¥5,079 million (US$48,053 thousand) in notes and accounts re-

SG&A declined 1.3 percentage points to 37.0%, but
this was insufficient to cover the rise in the cost of sales.
The principal factor in the increase was marketing ex-

ceivable, resulting from the growth in net sales. Thiswas mainly the result of an increase in notes receivablein the Thermal Care Group, resulting from strong sales

penses in connection with competition and core brandequity investment.
Research and development expenses, one element

near the end of the fiscal year. Inventories rose 0.2%,
or ¥7 million, to ¥3,668 million (US$34,709 thousand).
However, if the inventories of the Thermal Care Groupof SG&A, were reduced 15.8% to ¥413 million(US$3,905 thousand), and their ratio to net sales was
9.2%.

are excluded from that calculation, an actual reductionof 6% from the previous fiscal year emerges.
As a result of the scarcity of MMF and other short-

Operating income declined 10.0% to ¥3,419 million. This was chiefly due to lower-than-predicted net
sales in the new Thermal Care Group, resulting fromterm investment securities, marketable securities declined by ¥6,027 million.
Total fixed assets grew 16.0%, or ¥2,033 million, toadverse effects of the mild winter on the market, and aforced increase in marketing expenses to combat competition.

¥14,729 million. Property, plant and equipment contracted by 6.1%, or ¥530 million, to ¥8,154 million.
Investments and other assets grew 67.6%, or ¥2,569
million, to ¥6,368 million (US$60,251 thousand), prin-16

cipally as a result of a ¥1,303 million increase in in-previous fiscal year as a result of the recovery in thevestment securities stemming from purchases of government and corporate bonds.
Current liabilities increased 13.9%, or ¥960 million,

Company’s profitability.
Net cash used in investing activities was ¥1,964 million (US$18,584 thousand). As a result, the free cashto ¥7,887 million (US$74,628 thousand). Notes and accounts payable, as a result of disposable warmer procurement, grew 29.7%, or ¥933 million, to ¥4,075 mil-flow rose to declined to ¥698 million (US$660 thousand).
Net cash used in financing activities was ¥1,348 mil-lion. Borrowed money is connected with overseas subsidiaries, long- and short-term bank borrowing combined
totaled ¥116 million, down ¥117 million from the pre-lion. The primary uses of cash were payment of dividends to shareholders in the amount of ¥384 million
and the purchase of treasury stock at a cost of ¥951

vious fiscal year.
The book value of the publicly held stock among theCompany’s investment securities holdings has declined

million.
As a result of the foregoing, cash and cash equivalents declined by ¥659 million (US$6,232 thousand),markedly. However, rising stock prices at the end of the
fiscal year resulted in an increase on revaluation of othermarketable securities posted under shareholders’ eq-

at the end of the fiscal year totaling ¥8,772 million(US$82,998 thousand). This fiscal year, S.T. Chemicalsought to pursue a cash-flow-centered managementuity of ¥582 million. Treasury stock held by the Company at the end of the fiscal year, acquired either tobenefit shareholders or in preparation for the exercise

style.

of stock options, totaled 1,485,531 shares with a valueof ¥1,275 million. As a result of the foregoing, total
shareholders’ equity was ¥26,693 million.

The Company reduced the number of new products it
launched this fiscal year, while at the same time con-Financial indicators

Capital expenditures

centrating management resources in selected areas. As
a result, ROE was steady at 5.5%, and ROA declined
to 10.07%. Shareholders’ equity per share of common

Capital expenditures were reduced 45.0% in comparison with the previous fiscal year, to ¥404 million(US$381 thousand). The Household Environment Re-

stock rose from ¥874.85 to ¥924.33 (US$8.75). The
shareholders’ equity ratio declined to 73.6%, and theinterest coverage ratio was 712 times.

lated Products Segment was the object of 80% of total
capital expenditures, with the Mothproofing and Hygiene-Related Products Segment next.

Dividends

Cash flows
During the fiscal year ended March 31, 2004, net cash
provided by operating activities declined to ¥2,662 million. Sources of cash included the increased of income

Management has raised the year-end dividend by ¥4 to¥10 per share. The annual dividend, including the interim dividend of ¥7 per share, will be ¥17 (US$0.16)
per share.

before income taxes and minority interests to ¥2,746
million; an increase in trade payables that was ¥377
million more than the rise in accounts receivable; anddepreciation expenses of ¥867 million. The most significant use of cash was payment of income taxes in theamount of ¥1,641 million, up ¥1,263 million from the17

Corporate Governance

Converting to a “company-with-committees” structure
At the annual general meeting of shareholders convened in June 2004, the decision was taken to convert ST
Chemical to a “company-with-committees” structure, as described in the revised Commercial Code of Japan,
for the purpose of strengthening corporate governance systems. The Company will appoint four directors fromwithin, and four outside directors. A majority of each committee will be composed of outside directors whowill be objective judges of the Company’s management measures and policies. The committees will serve as
feedback mechanisms, while the Company strives to increase the speed of decision-making.
(1) Improving management
The Board of Directors concentrates on important decisions on fundamental management issues and on management oversight functions, seeking to improve management.
(2) Rapid decision-making and agile execution of operations
Executive officers have been given expanded authority regarding the execution of operations in pursuit of rapid decision-making and agile execution of operations.
(3) Enhanced management transparency and fairness
The Company is working to increase management transparency and fairness with regard to
the nomination, compensation, and auditing of directors by appointing outside directors.

“Refreshing the Air” Management Structure Reforms(1) Board of Directors
To achieve increased management transparency and fairness, the Board of Directors has
selected the Company’s first outside directors.
(2) Separating the functions of executive officers and directors
To clearly separate the operational functions of executive officers from the supervisionand oversight functions of the Board of Directors, and to achieve speed of decision-making and agility in the execution of operations, some authority over the execution ofoperations was transferred from the Board of Directors to the executive officers.
(3) Three committees established
In compliance with the law, the Board of Directors has established three internal organizations that have outside-director majorities:the Audit, Nominating, and Compensation
Committees. These committees will form an effective management oversight system.

In converting to this new system, the Company seeks tofurther strengthen corporate
governance, and to establish effective, transparent, and fairmanagement.

ST’s New Corporate Governance Structure
Board of Directors (8)Members of the three committees
Directors with duties as executive officers

Determination of fundamental management policy for the ST Group

Oversight of director andexecutive officer functions

Executive Officers (8)Appointment

Future management systems

Representative
executive officers (1)Executive officers (7)Company
representatives

Execution of ST
Group’s business
operations (within
scope of authority
granted by theboard of directors)

Nomination Committee (5)Audit Committee (3)Compensation Committee (3)Issuance of proposals for thenomination and dismissal of directors

Audits of execution of duties bydirectors and corporate executive officers

Determination of compensationof individual directors and executive officers

Outsidedirectors
Corporate
directors

18

Executive
directors

Financial Section
Contents
Consolidated Balance Sheets

20

Consolidated Statements of Income and Retained Earnings 22
Consolidated Statement of Cash Flows23

Notes to Consolidated Financial Statements

24

Report of Independent Auditors

35

19

Consolidated Balance Sheets
S.T. CHEMICAL CO., LTD. and consolidated subsidiaries
March 31, 2004 and 2003

ASSETS

Current assets:
Cash and time deposits (Note 10)
Marketable securities (Note 3)
Trade notes and accounts receivables
Less - allowance for doubtful receivables
Inventories
Deferred tax assets (Note 6)
Other current assets
Total current assets

Investments and other assets:
Investments in non-consolidated subsidiaries and affiliates
Investment securities (Note 3)Long-term loans
Deferred tax assets other than unrealized revaluation loss on land (Note 6)
Deferred tax asset - unrealized revaluation loss on land (Note 4)
Other assets
Less - allowance for doubtful accounts
Total investments and other assets

Property, plant and equipment, at cost (Notes 4 and 5):
Land
Buildings and structures
Machinery, equipment and vehicles
Tools, furniture and fixtures
Construction in progress
Less accumulated depreciation
Property, plant and equipment, net
Intangible assets, net of accumulated amortization
Total assets
See notes to consolidated financial statements.

20

Thousands of
U.S. dollars (Note 2)

Millions of yen

2004

2003

2004

¥ 8,795
3,236
5,079
(39)
3,668
366
434

¥ 9,431
3,863
4,520
(37)
3,661
355
242

$ 83,214
30,61648,053(366)
34,7093,468
4,107

21,54022,036

203,801

174
3,957
155
132
71
1,944
(66)

132
2,654
194
449
71
378
(79)

1,651
37,437
1,470
1,253
675
18,389
(622)

6,368

3,799

60,251

3,477
6,138
7,883
2,683
10
(12,037)

3,507
6,161
7,856
2,551
30
(11,421)32,902
58,072
74,59025,38791(113,892)

8,154

8,684

77,150

207

214

1,959

¥ 36,269¥ 34,732$ 343,161

LIABILITIES AND SHAREHOLDERS’ EQUITYCurrent liabilities:
Short-term bank loans (Note 5)
Current portion of long-term debt (Note 5)
Trade payables
Other payables
Income taxes payable (Note 6)
Consumption taxes payable
Accrued expenses
Allowance for sales returns
Other current liabilities
Total current liabilities

Thousands of
U.S. dollars (Note 2)

Millions of yen

2004

2003

¥

¥

51
31
4,075
2,248
633
79
556
159
55

103
30
3,142
1,825
1,002
174
482
128
41

2004
$

478
292
38,555
21,274
5,988
752
5,263
1,501
525

7,887

6,928

74,628

35
1,038
102

101
1,061
88

336
9,818
963

1,175

1,250

11,117

514

506

4,862

7,066
7,068
(107)
13,722582(363)(1,275)

7,066
7,068
(107)
12,694
84
(314)
(442)

66,851
66,873(1,012)
129,836
5,510(3,438)(12,066)

Total shareholders’ equity

26,693

26,048

252,555

Total liabilities and shareholders’ equity¥36,269¥34,732$343,161

Long-term liabilities:
Long-term debt, less current portion (Note 5)
Employees’ retirement and severance benefits (Note 7)
Directors’ retirement and severance benefits
Total long-term liabilities
Minority interests in consolidated subsidiaries
Contingent liabilities (Note 12)
Shareholders’ equity (Note 8):
Common stock
Authorized - 96,817,000 shares in 2004 and97,635,000 shares in 2003
Issued and outstanding - 30,346,851 shares in 2004 and 2003
Capital surplus
Unrealized revaluation loss on land, net of tax (Note 4)
Retained earnings
Unrealized holding profit on securities, net of tax
Translation adjustments
Treasury stock, at cost

See notes to consolidated financial statements.

21

Consolidated Statements of Income and Retained Earnings
S.T. CHEMICAL CO., LTD. and consolidated subsidiaries
For the years ended March 31, 2004 and 2003

Thousands of
U.S. dollars (Note 2)

Millions of yen

2004

2003

2004

¥45,082
24,973¥38,066
19,707$426,549
236,282

20,109(30)

18,358(7)

190,266(286)

20,07916,66018,351
14,553

189,981
157,633

3,419

3,798

32,348

45
(4)
189
(810)
17
(9)
(3)
—
(96)

56
(11)
198
(881)
8
10
(239)
(154)
(165)

423
(35)
1,784
(7,664)
159
(88)
(32)
—
(910)

(673)

(1,179)(6,363)

2,746

2,619

25,984

1,273
(29)

1,248
(98)

12,043(276)

Minority interests

1,244
51

1,149
38

11,767486

Net income

1,451

1,431

13,731

12,694

12,400120,103

385
17
21

246
1
891

3,642
157
200

¥13,722¥12,694$129,836

Net sales
Cost of sales
Gross profit before reversal of allowance for sales returns
Reversal of allowance for sales returns
Gross profit
Selling, general and administrative expenses (Note 9)
Operating income
Other income (expenses):
Interest and dividends received
Interest expenses
Cash purchase discountCash sales discount
Profit on sales of securities, net
Equity in income (loss) of affiliates
Write-down of securities
Special payment of early retirement benefits
Other, net
Income before income taxes and minority interests
Income taxes (Note 6)
Current
Deferred

Retained earnings at beginning of year
Decreases:
Cash dividends paid
Bonuses to directors
Redemption or disposition of treasury stock
Retained earnings at end of year (Note 8)
See notes to consolidated financial statements.

22

Consolidated Statement of Cash Flows
S.T. CHEMICAL CO., LTD. and consolidated subsidiaries
For the years ended March 31, 2004 and 2003

Thousands of
U.S. dollars (Note 2)

Millions of yen

2004

2003

2004

¥ 2,746¥ 2,619$ 25,984

867
5
(4)
(9)
(12)
(21)
14
30
(45)
4
38
9

956
27
(10)
241
(9)
(93)
(155)
7
(56)
11
31
(10)

8,204
44
(38)
(89)
(116)
(197)
129
286
(423)
35
358
88

(539)
(29)
915
297

1,146
(137)
571
383

(5,098)
(277)
8,660
2,810

4,266
42
(4)
(1,641)

5,521
55
(10)
(378)

40,361397(35)(15,528)

2,663

5,189

25,194

(22)
—
(376)
2,555
(382)
52
(2,165)67(1,694)(1,000)2,000(1,013)
2,217
(792)
1
(1,130)
0
(18)

(210)
—
(3,554)
24,178(3,619)496(20,483)
633(16,025)

Net cash provided (used in) investing activities(1,964)

265(18,584)

Cash flows from financing activities:
Increase in bank loans and current portion of long-term debt
Repayments of bank loans and current portion of long-term debt
Increase in long-term debt
Repayment of long-term debt
Purchase of treasury common stock
Proceeds from sale of treasury common stock
Payments of dividend
Payments of dividend to minority shareholders

—
(48)
22
(76)
(952)
97
(385)
(8)

33
(37)
—
(164)
(811)
36
(246)
(8)

—
(453)
209
(720)
(9,004)921(3,642)(72)(1,349)(1,196)(12,762)

Cash flows from operating activities:
Income before income taxes and minority interests
Adjustments to reconcile income before income taxes and minority interests
to net cash provided by operating activities:
Depreciation and amortization
Loss on sale of property, plant and equipment
Loss on sale and write-down of marketable securities
Loss (profit) on sale and write-down of investment securities
Allowance for doubtful receivables
Provision for employees’ retirement and severance benefits
Provision (reversal) for directors’ retirement and severance benefits
Provision for sales returns
Interest and dividends received
Interest expense
Foreign exchange loss
Equity in loss (income) of affiliates
Change in operating assets and liabilities:
Receivables
Inventories
Payables and accrued expenses
Others, net
Sub totalInterest and dividends received
Interest paid
Income taxes paid
Net cash provided by operating activities
Cash flows from investing activities:
Deposit of time deposits (more than 3 months)
Refund of time deposits (more than 3 months)
Purchase of marketable securities
Proceeds from sale of marketable securities
Purchase of property, plant and equipment
Proceeds from sale of property, plant and equipment
Purchases of investment securities
Proceeds from sale of investment securities
Other investments, net

Net cash used by financing activities
Effect of exchange rate changes on cash and cash equivalents

(9)

(12)

(81)

Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of year

(659)
9,431

4,246
5,185

(6,232)
89,230Cash and cash equivalents at end of year (Note 10)¥ 8,772¥ 9,431$ 82,998

See notes to consolidated financial statements.

23

Notes to Consolidated Financial Statements
S.T. CHEMICAL CO., LTD. and consolidated subsidiaries
March 31, 2004

1. Summary of Significant Accounting Policies(a) Basis of presentation
S.T. Chemical Co., Ltd. (the “Company”) and its domestic subsidiaries maintain their accounting records and prepare their financial statements in accordance with accounting principles and practices generally accepted in Japan, and its foreign subsidiaries maintain theirbooks of account in conformity with those of the countries of their
domicile.
The accompanying consolidated financial statements have been
prepared from the consolidated financial statements filed with the
Ministry of Finance as required by the Securities and Exchange Law
of Japan. Accordingly, the accounting principles and practices
adopted by the Company may differ in certain material respects, fromaccounting principles and practices generally accepted in countries
and jurisdictions other than Japan.
In preparing the accompanying consolidated financial statements, certain reclassifications have been made to the consolidated
financial statements issued domestically for readers outside Japan.
Furthermore, the notes to the consolidated financial statements include information which is not required under accounting principles
generally accepted in Japan but is presented herein as additional
information.
(b) Principles of consolidation and accounting for investments
in unconsolidated subsidiaries and affiliates
The consolidated financial statements for the year ended March 31,
2004 include the accounts of the Company and its five significant
subsidiaries with new consolidated subsidiaries of S.T. Mycoal Co.,
Ltd. and S.T. Auto Co., Ltd. and the consolidated financial statements for the year ended March 31, 2003 include the accounts of theCompany and its three significant subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation.
The equity method is applied to investments in significant affiliates in accordance with the provisions of the Regulations.
(c) Accounting period
The accounting period of the Company begins on April 1 and ends
March 31 of the following year. The two overseas subsidiaries havefiscal years ending on December 31. The necessary adjustments for
significant transactions, if any, during the intervening period are madeon consolidation.

24(d) Translation of foreign currency transactions and financial
statements
Monetary assets and liabilities denominated in foreign currencies
are translated into yen at the rates in effect at the balance sheet date
and the accounts of the overseas consolidated subsidiaries, etc., except for the components of shareholders’ equity, are translated into
yen at the rates of exchange in effect at the balance sheet date. Foreign exchange gains and losses are credited or charged to operations
and translation adjustments are included in shareholders’ equity andminority interests.
(e) Marketable securities and investment securities
Trading securities are carried at market value and held-to-maturity
securities are carried at amortized cost.
Other securities with determinable market value are carried atmarket value with any changes in unrealized holding gain or loss,
net of the related deferred income tax assets, in shareholders’ equity.
Other securities without determinable market value are stated at cost
determined principally by the moving average method and the costof other securities sold is principally computed based on the moving
average method. During the years ended March 31, 2004 and 2003,
the Company and its consolidated subsidiaries did not have any trading securities.
(f) Inventories
Inventories of the Company and its domestic subsidiaries are statedat cost determined by the average cost method and those of overseas
subsidiaries are stated at the lower of cost or market, cost being determined by the average cost method.
(g) Property, plant and equipment and depreciation
Property, plant and equipment are stated at cost. Depreciation ofproperty plant and equipment of the Company and its domestic subsidiaries except for buildings (excluding structures attached to thebuildings) acquired on and after April 1, 1998, is computed by the
declining-balance method in conformity with the Corporation Tax
Law of Japan. Depreciation of property and equipment of overseas
subsidiaries and buildings, excluding structures, acquired on andafter April 1, 1998 of the Company and domestic subsidiaries is computed by the straight-line method.
The estimated useful lives of the major depreciable assets are
as follows:
Buildings and structures
3 to 50 years
Machinery, equipment and vehicles
2 to 17 years
Tools, furniture and fixtures
2 to 20 years

(h) Intangible assets and long-term prepaid expenses
Intangible assets and long-term prepaid expenses are amortized by
the straight-line method. Cost of software purchased for internal use
is amortized by the straight-line method over 5 years, the useful life
applicable to commercially available software.
(i) Allowance for doubtful receivables
The Company and its domestic subsidiaries provide allowances for
estimated losses on bad debts at the amounts calculated based on
past experience for receivables other than doubtful receivables andamounts estimated specifically for each doubtful receivable. Overseas subsidiaries provide allowances for doubtful receivables principally based on estimated uncollectable amounts.
(j) Allowance for sales returns
The allowance for sales returns is generally provided for losses onsales returns subsequent to the balance sheet date at an amountequivalent to that calculated based on sales in conformity with the
Corporation Tax Law of Japan. The allowance for certain products is
estimated based on the actual percentage of returns in prior years.
(k) Employees’ retirement and severance benefits
Accrued retirement and severance benefits are provided based on
the estimated retirement and severance benefit obligation and thepension fund assets.
Actuarial gains and losses, and past service obligations areamortized using the straight-line method over 5 years, which is within
the estimated average remaining service years of employees.
In addition, one overseas subsidiary provides an allowance forpayment of employees’ retirement and severance benefits at 100%of the voluntary termination payment.

(m) Leases
Finance leases, except for those which transfer ownership of the property to the lessee, are accounted for as operating leases.
(n) Consumption taxes
Consumption taxes imposed on the Company’s and its subsidiaries’
sales to customers are withheld by the Company and its subsidiaries
at the time of sale and subsequently paid to the government. Consumption taxes withheld upon sale are not included in net sales in
the accompanying statements of income, but are recorded as a liability, “consumption taxes payable.” Consumption taxes which are paidby the Company and its subsidiaries on the purchases of goods andservices from outside the group are also not included in costs or expenses in the accompanying statements of income, but are offset
against consumption taxes payable. The net balance is reflected asconsumption taxes payable in the accompanying consolidated balance sheets at March 31, 2004 and 2003.
(o) Valuation of assets and liabilities of the consolidated
subsidiaries
Assets and liabilities of the consolidated subsidiaries acquired before April 1, 1999 have been valued at cost. It is the Company’s
policy to value assets and liabilities of subsidiaries acquired on andafter April 1, 1999 at fair value when the Company obtains control
over such subsidiaries, however, the Company has not acquired any
subsidiaries since April 1, 1999.
(p) Cash and cash equivalents
Cash and cash equivalents in the cash flow statements consist of
cash on hand, demand deposits and liquid short-term investmentswith a maturity of three months or less from their date of acquisition.

(l) Directors’ retirement and severance benefits
The Company has accrued directors’ retirement and severance benefits at the amount which would be required to be paid if all directors
resigned from their positions at the Company as of the balance sheet
date in accordance with internal regulations.

25

2. Basis of Translation
The consolidated financial statements presented herein are expressedin yen and, solely for the convenience of the reader, have been translated into U.S. dollars at ¥105.69 =U.S.$1.00, the approximate exchange rate prevailing on the Tokyo Foreign Exchange Market on
March 31, 2004. This translation should not be construed as a representation that the amounts shown could have been, or could in the
future be, converted into U.S. dollars at that or any other rate.

In the years ended March 31, 2004 and 2003, the Company
recognized impairment losses on nonmarketable securities of ¥0 million (U.S.$3 thousand) and ¥39 million if the net book value had
declined by 50% or more from the book value or if the issuers of thenon-marketable securities went bankrupt or were substantially bankrupt.
Other securities sold during the years ended March 31, 2004
and 2003 are summarized as follows:

3. Marketable Securities

Millions ofyen

The cost and related aggregate market value of other securities witha determinable market value at March 31, 2004 and 2003 are summarized as follows:
Millions of
yen

Cost
Market value
Total unrealized gain
Total unrealized loss

Thousands of
U.S. dollars

2004

2003

2004

¥4,3615,331
978
7¥2,863
3,002
176
36

$41,260
50,444
9,250
66

The Company recognized impairment losses on securities at thedifference between the market value and book value if the market
value had declined by 30% or more from the book value. Impairment
losses on securities for the years ended March 31, 2004 and 2003
were ¥3 million (U.S.$29 thousand) and ¥200 million, respectively.
Securities at March 31, 2004 and 2003 excluded from the abovetable are summarized at their respective book value as follows:
Millions ofyen

Current assets:
Unlisted investment trust
certificates within theclosed period
MMF
Commercial paper
Foreign securities
Unlisted stocks other thanthose traded on theover-the-counter market

26

Thousands of
U.S. dollars

2004

2003

2004

¥ 560
1,170
—
73

¥1,475
1,370
500
93

$ 5,303
11,069
—
686

58

77

550

Proceeds received
Total profit
Total loss

Thousands of
U.S. dollars

2004

2003

2004

¥2,62217—¥2,20810
2$24,811159—

The redemption schedule of other securities with maturity dates
at March 31, 2004 and 2003 are summarized as follows:
Millions ofyen

Thousands of
U.S. dollars

2004

2003

2004

One year or less
¥1,433More than 1 year and within
5 years
2,120
More than 5 years and within
10 years—More than 10 years
—

¥ 926

$13,557

1,537

20,05754———

4. Land Revaluation
In accordance with the Land Revaluation Laws (Proclamation No.
34 dated March 31, 1998), land used for business activities was revalued at March 31, 2002. The book value before revaluation was¥3,332 million and the book value after revaluation was ¥3,153 million and the difference, net of taxes, is stated as unrealized valuation
loss on land in shareholders’ equity. Deferred tax assets arising fromthis revaluation are presented separately from deferred tax assets forother temporary differences in the accompanying balance sheets. The
differences between the market value and the book value after revaluation were ¥153 million (U.S.$1,450 thousand) and ¥62 million
at March 31, 2004 and 2003, respectively.

5. Short-term Bank Loans and Long-term Debt
Short-term loans from banks at an average interest rate of 1.2%
amounted to ¥51 million (U.S.$478 thousand) at March 31, 2004.
Long-term debt at March 31, 2004 and 2003 consisted of thefollowing:
Millions ofyen

Loans, principally frombanks, maturing ininstallments through2008, at interest rates
ranging from 2.7% to 3.0%
Less current portion

Thousands of
U.S. dollars

2004

2003

2004

¥ 66
(31)

¥131
(30)

$ 628
(292)

¥ 35

¥101

$ 336

The aggregate annual maturities of long-term debt subsequent
to March 31, 2004 are summarized as follows:
Millions ofyen

Thousands of
U.S. dollars

Years ending March 31, 2005
2006
2007
2008
2009

¥31
17
11
4
3

$292
161
101
42
31

Total

¥66

$628

Assets pledged as collateral for long-term debt at March 31,
2004 are presented below:
Millions ofyen

Thousands of
U.S. dollars

Buildings and structures
Machinery and equipment andvehicles
Land

¥ 95

$ 900

35
109

335
1,031

Total

¥239

$2,26627

6. Income Taxes
At March 31, 2004 and 2003, the tax effect of the temporary differences which gave rise to a significant portion of the deferred tax
assets (excluding deferred tax on the unrealized revaluation loss onland) were as follows:
Millions of
yen

2004

Current assets:
Accrued employees’
bonuses¥ 174
Allowance for sales returns
64
Write-down of securities
4
Accrued business taxes
53
Other
87
Total current deferred tax
assetsValuation allowance
Current liabilities:
Deferred gain on sale ofproperty
Unrealized holding profit
on securities, net of taxes
Total current deferred tax
liabilities
Net current deferred tax
assets382(12)Thousands of
U.S. dollars

2003

2004

¥144
51
4
97
60

$ 1,647
602
37
502
828

356
—

3,614
(116)

(0)

(0)

(4)

(3)

—

(27)

(3)

(0)

(31)

366

355

3,468

Non-current assets:
Allowance for employees’
retirement and severance
benefits
Allowance for directors’
retirement and severance
benefits
Write-down of securities
Other
Total non-current deferred
tax assets
Non-current liabilities:
Deferred gain on sale ofproperty
Unrealized holding profit
on securities, net of taxes
Total non-current deferred
tax liabilities

382

370

3,612

41
87
29

35
86
36

385
822
277

539

526

5,096

(21)

(21)

(197)

(385)

(56)

(3,647)

(406)

(77)

(3,843)

¥ 132

¥449

$ 1,253

Net non-current deferred tax
assetsA reconciliation of the statutory tax rate to the Company’s effective tax rate for the year ended March 31, 2004 is as follows:
2004

Japanese statutory tax rate
Permanent differences such as entertainment
expenses, etc.
Permanent differences such as dividend income
Inhabitants’ per capita taxes, etc.
Other

42.00%

Effective tax rate

45.29%

1.21(0.12)
0.82
1.38

No reconciliation has been presented for the year ended March
31, 2003 as the difference was less than 5%.

28

7. Employees’ Retirement and Severance Benefits
The Company and its domestic subsidiaries have defined benefits
plans covering substantially all of its employees which are partially
funded through a qualified funded pension plan as described in Note
1(k). Under these plans, employees are entitled to lump sum or pension retirement or severance benefits, determined by points accumulated monthly based on the employees’ contributions, length ofservice and the conditions under which the termination occurs. In
addition, the Company and its domestic subsidiaries pay meritorious
service awards to employees in excess of the prescribed formula,which are charged to income as paid as it is not practicable to compute the liability for such future payments since the amounts varydepending on the circumstances.
The following table summarizes the funding status and amounts
recognized in the consolidated balance sheet at March 31, 2004 and2003.
Millions ofyen

Retirement and severance
benefit obligation
Plan assets
Unfunded benefit obligation
Unrecognized actuarial loss
Unrecognized past service
obligations
Accrued benefit obligation

Thousands of
U.S. dollars

2004

2003

2004

¥(2,563)
1,280(1,284)292¥(2,558)
1,114(1,444)452$(24,253)
12,108(12,145)
2,764

(46)

(70)

(436)

¥(1,038)¥(1,061)$ (9,818)

The following table summarizes the components of the net benefit retirement expenses for the years ended March 31, 2004 and2003.
Millions ofyenService cost
Interest cost on benefit
obligation
Expected return on plan
assetsAmortization of actuarial loss
Amortization of past service
obligation
Extraordinary additional
retirement payments

Thousands of
U.S. dollars

2004

2003

2004

¥153

¥165

$1,451

50

51

471

(33)
112

(35)
87

(316)
1,063

(24)

(24)

(225)

35

9

335

¥294

¥253

$2,778

Net retirement benefit
expenseThe assumptions used in determining the pension benefit obligation are shown below:
2004

Method of periodic
allocation of
estimated
retirement
benefits
Straight-line method
Discount rate
2.0%
Expected rate of
return on assets
3.0%

2003

Straight-line method
2.0%
3.0%

29

8. Shareholders’ Equity
In accordance with the Commercial Code of Japan (the “Code”), theCompany has provided a legal reserve which is included in retained
earnings. The Code provides that an amount equal to at least 10% of
the amount to be disbursed as a distribution of earnings be appropriated to the legal reserve until the total of such reserve and the additional paid-in capital account equals 25% of the common stock account.
Capital surplus and legal reserve are not available for dividends
but may be used to reduce a deficit or may be transferred to statedcapital. At March 31, 2004, the legal reserve of the Company included in retained earnings amounted to ¥550 million (U.S.$5,202
thousand).
The accompanying consolidated financial statements do not include any provision for cash dividends of ¥10.00 (U.S.$0.09) per
share totaling ¥289 million (U.S.$2,731 thousand) which were declared by the Company in June 2004.
The maximum amount which the Company can distribute as
dividends is calculated based on the non-consolidated financial statements of the Company and in accordance with the Commercial Codeof Japan.

At March 31, 2004, the Company had stock option plans, whichwere approved at the annual general meetings of the shareholders
and the Board of Directors as follows:
Date of approval

June 27, 2000

June 15, 2001

June 14, 2002
June 13, 2003
June 15, 2004

Number of shares
grantedEligible participants

Exercisable period

350,000
shares

6 directors andJuly 1, 2002–
4 employees
June 30, 2007
(all executive
officers)
140,000 1 director andJuly 1, 2003–
shares23 employees
June 30, 2008
(including 1
executive officer)
225,000 1 director andJuly 1, 2004–
shares43 employees
June 30, 2009
155,000 1 director andJuly 1, 2005–
shares
25 employees
June 30, 2010
130,000
Officers andJuly 1, 2006–
sharesemployees
June 30, 2011
(The Board of
Directors willapprove resolutions
designating eligible
officers and employees)

The option price per share was determined on the date the options were granted based on an established formula for determining
option prices. The options are exercisable during the above periods
provided that recipients are still directors, statutory auditors or employees of the Company or its subsidiaries.
Net assets per share as of March 31, 2004 and 2003 were ¥924.33(U.S.$8.75) and ¥874.85, respectively. Net income per share for theyears ended March 31, 2004 and 2003 were ¥48.87 (U.S.$0.46) and¥46.53, respectively.
Diluted net income per share for the years ended March 31,
2004 and 2003 was ¥48.62 (U.S.$0.46) and ¥46.50.

30

Basis for calculation of basic net income per share and diluted
net income per share for the years ended March 31, 2004 and 2003
were as follows:
Millions of
yen

2004

Basic net income per share:
Net income
Amounts not attributable
to shareholders ofcommon stock:
Directors’ bonuses byappropriation ofretained earnings
Amounts attributable
to shareholders ofcommon stock
Weighted-average
number of shares
outstanding (millionsof shares)
Diluted net income per share:
Adjustments arising from
dilution
Increase in number ofshares outstanding
Shares resulting in ananti-dilutive effect¥1,451

15

1,436

29

9. Major Expenses
Major expenses included in selling, general and administrative expenses for the years ended March 31, 2004 and 2003 were as follows:

Thousands of
U.S. dollars

2003¥1,431

16

1,415

30

Millions of
yen

2004

$13,731142

13,589

Sales promotion expenses
Advertising costs
Salaries
Shipment and storage
expenses
Provision for employees’
retirement and severance
benefits
Provision for directors’
retirement and severance
benefits
Provision for doubtful
accounts

Thousands of
U.S. dollars

2004

2003

2004

¥4,6013,052
1,777¥3,343
2,853
1,774$43,530
28,881
16,811

1,678

1,428

15,880

237

191

2,241

14

11

131

22

—

209

—

—

—

—

0

0

0

—

0

—

Research and development expenses included in general andadministrative expenses and cost of sales for the years ended March
31, 2004 and 2003 amounted to ¥413 million (U.S.$3,905 thousand)and ¥490 million.

10. Cash and Cash Equivalents
A reconciliation of cash and cash equivalents at March 31, 2004 and2003 to the accounts and amounts in the accompanying consolidatedbalance sheets is as follows:
Millions ofyen

Thousands of
U.S. dollars

2004

2003

2004

Cash and time deposits
Time deposits with amaturity in excess of threemonths¥8,795¥9,431$83,214

(23)

(1)

(216)

Cash and cash equivalents

8,772

9,431

82,998Deposits pledged as collateral mainly for leasing office space at
March, 31 2004 and 2003 amounted to ¥24 million (U.S.$230 thousand) and ¥1 million.

31

11. Leases

12. Commitments and Contingent Liabilities

Finance leases, except for those which transfer ownership of the property to the lessee, are accounted for as operating leases, and the assets and the related liability are not included in the balance sheets.
(1) A summary of the pro-forma amounts (inclusive of the related
interest) of acquisition cost, accumulated depreciation and net bookvalue at March 31, 2004 and 2003 primarily relating to tools, furniture and fixtures held under finance lease is as follows:
Millions ofyen

Thousands of
U.S. dollars

2004

2003

2004

Acquisition cost
Accumulated depreciation

¥310
176

¥392
200

$2,937
1,669

Net book value

¥134

¥192

$1,267(2) Future minimum lease payments, inclusive of the related interest, at March 31, 2004 and 2003 are summarized as follows:
Millions ofyen

Thousands of
U.S. dollars

2004

2003

2004

Payable in one year or less
Payable after one year

¥ 68
66

¥ 76
116

$ 641
627

Total

¥134

¥192

$1,267(3) Lease payments and pro-forma depreciation charges for the years
ended March 31, 2004 and 2003 were ¥78 million (U.S.$734 thousand) and ¥89 million, respectively.
(4) Depreciation is computed by the straight-line method over therespective lease terms assuming a nil residual value.
Operating leases
Future minimum lease payments at March 31, 2004 was as follows:

32

Millions ofyen

Thousands of
U.S. dollars

2004

2004

Payable in one year or less
Payable after one year

¥1
3

$10
33

Total

¥5

$43

At March 31, 2004 and 2003, trade notes discounted with banks inthe ordinary course of business amounted to ¥93 million (U.S.$875
thousand) and ¥83 million.

13. Derivatives
The Company has entered into forward foreign exchange contracts to
reduce its exposure to the risk of future adverse fluctuation in foreign exchange rates related to its trade receivables and payables andloans denominated in foreign currencies. It is the Company’s policy
not to enter into any speculative derivatives transactions and its subsidiaries and associated companies do not enter into any forward
foreign exchange contracts.
Unrealized gain or loss on a hedge instrument is deferred until
the Company recognizes gain or loss on the hedged item. Assets or
liabilities hedged by forward foreign exchange contracts are translated at the forward foreign exchange contract rates.
As the Company enters into such contracts only with domestic
banks with high credit ratings, the Company does not anticipate any
risk of non-performance by these counter-parties.
In addition, the execution and control over derivatives transactions are carried out by the Administrative Division in accordancewith internal control regulations which limit the nature of the transactions and the individuals authorized to be in charge of such transactions.
At March 31, 2004 and 2003, the Company had no outstanding
derivatives positions.

14. Segment Information
The Company and its consolidated subsidiaries operate in two business segments and the business segment information for the years ended
March 31, 2004 and 2003 is analyzed as follows:Year ended March 31, 2004
Millions of yen
Mothproofing
andhygiene-related
products

Householdenvironmentrelated
products

Total

1. Revenues(1) Operating revenues(2) Intra-group sales and transfers¥19,830—¥25,252—¥45,082—

Total revenues

19,83022,252

2. Operating expenses

17,904

Operating income

Eliminations
or corporate
assets¥Consolidated——¥45,082—

45,082—45,082

23,75941,663—

41,663

1,926

1,493

3,419

—

3,419

(1) Total assets

10,038

11,05021,08815,181

36,269(2) Depreciation

292

575

867

—

867

(3) Capital expenditures

74

329

404

—

404

Mothproofing
andhygiene-related
products

Householdenvironmentrelated
products

Total

Eliminations
or corporate
assetsConsolidated

1. Revenues(1) Operating revenues(2) Intra-group sales and transfers¥14,658—¥23,407—¥38,066—

Total revenues

14,65823,407

2. Operating expenses

12,495

Operating income

3. Assets, depreciation and capital expenditure;

Year ended March 31, 2003
Millions of yen¥——¥38,066—

38,066—38,066

21,77334,268—34,268

2,163

1,635

3,798

—

3,798

(1) Total assets

8,111

10,963

19,075

15,65834,732(2) Depreciation

351

605

956

—

956

(3) Capital expenditures

120

613

733

—

733

3. Assets, depreciation and capital expenditure;33

Year ended March 31, 2004
Thousands of U.S. dollars
Mothproofing
andhygiene-related
products

Householdenvironmentrelated
products

Total

1. Revenues(1) Operating revenues(2) Intra-group sales and transfers$187,625—$238,924—

Total revenues

187,625

2. Operating expenses

169,402

Operating income

Eliminations
or corporate
assetsConsolidated$426,549———$426,549—

238,924

426,549—

426,549

224,799394,201—

394,201

18,223

14,12532,348—32,348(1) Total assets

94,979104,548

199,527

143,634

343,161(2) Depreciation

2,761

5,443

8,204

—

8,204

704

3,115

3,819

—

3,819

3. Assets, depreciation and capital expenditure;(3) Capital expenditures

The business segments are classified according to the nature of the Company’s products and their markets.
Major products in the mothproofing and hygiene-related segment are Cloth Care, Hand Care and disposable warmers and those in the household
environment-related segment are Air Care, Humidity Care, and All Care.
Disposable warmers have been added as major products in the mothproofing and hygiene-related segment effective the year ended March
31, 2004.
Geographical segment information and overseas sales are not presented as the revenues and total assets in Japan exceeded 90% of the totals
for both segments and as overseas sales were less than 10% of consolidated sales for the years ended March 31, 2004 and 2003.

34

S.T. CHEMICAL CO., LTD and subsidiaries

Report of Independent Auditors
March 31, 2003 and 2002

The Board of Directors
S.T. Chemical Co., Ltd.

We have audited the accompanying consolidated balance sheets of S.T. Chemical Co., Ltd. and consolidated subsidiaries as of March 31, 2004
and 2003, and the related consolidated statements of income and retained earnings, and cash flows for the years then ended, all expressed inyen. These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on thesefinancial statements based on our audits.
We conducted our audits in accordance with auditing standards generally accepted in Japan. Those standards require that we plan and performthe audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining,
on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting
principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believethat our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in all material respects, the consolidated financial position of S.T.
Chemical Co., Ltd. and consolidated subsidiaries at March 31, 2004 and 2003, and the consolidated results of their operations and their cash
flows for the years then ended in conformity with accounting principles generally accepted in Japan.
The U.S. dollar amounts in the accompanying consolidated financial statements with respect to the year ended March 31, 2004 are presented
solely for convenience. Our audit also included the translation of yen amounts into U.S. dollar amounts and, in our opinion, such translation has
been made on the basis described in Note 2 to the consolidated financial statements.

Shin Nihon & Co.
June 15, 2004

35

Corporate Information(June 15, 2004)

Board of Directors and Corporate Executive Officers (June 15, 2004)
Takashi Suzuki

Motohiko Kogo

The chairman of the board & the member of nomination committee

Outside director, the member of audit committee

Yasushi Kajiwara

Nobuhiro Mine

Outside director, the member of nomination, audit & compensation committee

Director

Tunehachi Tagaya

Mitsuo Tsuchihashi

Outside director, the member of nomination & audit committee

Director & the member of nomination committee

Masanori Noro

Kanzo Kobayashi

Outside director, the member of nomination & compensation committee

Director & the member of compensation committee

Executive Officers
Takashi Suzuki

Noriaki Kageura

Representative Executive Officer

Executive Officer

President, Chief Executive Officer

Deputy general manager of Corporate Sales headquarters

Nobuhiro Mine

Michihiro Ishikawa

Senior Managing Executive Officer
General manager of Corporate Sales headquarters

Executive Officer
Tokyo branch general manager

Toshiharu Nagasawa

Masakazu Kinoto

Managing Executive Officer
In charge of R&D and consumables and sundries

Executive Officer,
Osaka branch general manager

Mitsuo Tsuchihashi

Kanzo Kobayashi

Managing Executive Officer

Executive Officer,

In charge of manufacturing and human resources

In charge of corporate staff and international businessCorporate Data
Company name:

S.T.Chemical Co., Ltd.

Headquarters:

4-10, Shimo-Ochiai, 1-Chome, Shinjuku-ku, Tokyo 161-8540, Japan

Establishment:

August 31, 1948

Paid-in capital:¥7,065,500,000

Employees:

687 (Consolidated)
529 (Non-consolidated)

Contact:

Kanzo Kobayashi, Accounting & Corporate Planning GroupE-mail:ir@st-c.co.jp

Tel:+81-3-5906-0734

Fax:+81-3-5906-0741

Group Companies
S.T. Trading Co., Ltd.
Sales of hand gloves, industrial paper wipe, lubricant spray and gift products

S.T. Auto Co., Ltd.
Sales of car chemical care products

S.T. Mycoal Co., Ltd.
Sales support and marketing of Mycoal disposable warmers

Family Glove (Thailand) Co., Ltd.
Manufacture and sale of hand gloves

Family Glove (Taiwan) Co., Ltd.
Manufacture and sale of hand gloves

36

Investor Information(August 1, 2004)

Fiscal year-end:

March 31

Shares issued and outstanding: 30,346,851
Listed exchange:

Tokyo Stock Exchange, First Section

Shareholders:

4,436

Primary shareholders:Sharehold(Thousands)(% of total)

Shaldan Co.,Ltd.

4,707

15.5

Messiah Investment

2,306

7.6

Nippon Life Insurance Company

1,689

5.6

Bear Sterns and Company

1,502

4.9

Seiichi Suzuki

1,387

4.6

Non-Japaneseinstitutions

Treasury Stock 4.89%

9.03%

Individuals

1,115

3.7

Financial
institutions

The Mizuho Bank, Limited.

884

2.9

18.86%

Hiroshi Fujii

740

2.4

The Bank of Tokyo Mitsubishi

681

2.2

The Master Trust Bank of Japan, Ltd.
(Securities Investment Trust Account)

530

1.7

Akio Suzuki

Registered transfer agent:Mizuho Trust & Banking Co., Ltd.

Auditor:Shin Nihon & Co.

35.47%

Other Japaneseinstitutions

31.75%

Annual shareholders’ meeting: Middle June of each year (June 15, 2004)
Stock chart:
Stock Price (Yen)

Nikkei 225 (Yen)

1,500

15,0001,200

12,000900

9,000
3,000,000

4,227,000

600

6,000
1,500,000

300

3,000
0

0

01/6 78

9 10 11 12 02/1 2

3

4

5

6

7

8

9 10 11 12 03/1 2

3

4

5

6

7

8

9 10 11 12 04/1 2

3

4

5

6

0

37

エステー化学AR2004

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http://www.st-c.co.jp/
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