Notes to Consolidated Financial Statements
1. Basis of Presenting Consolidated Financial Statements
The accompanying consolidated financial statements have been

made for presentation in a form which is more familiar to readers

prepared from accounts and records maintained by Toyoda

outside Japan. These reclassifications do not affect the values of total

Automatic Loom Works, Ltd. (the “Company”), and its domestic andassets, shareholders’ equity, net sales or net income.

overseas consolidated subsidiaries (together, hereinafter referred to

The accompanying financial statements are stated in Japanese yen,as the “Companies”) in accordance with generally accepted

the currency of the country in which the Company is incorporated

accounting principles in Japan. Furthermore, these consolidated

and operates, and solely for the convenience of readers outside

financial statements have been prepared based on the consolidated

Japan, yen amounts as of and for the year ended March 31, 2000,

financial statements prepared in accordance with the Japanese

have been translated into U.S. dollars at the rate of ¥106.15 toRegulations Concerning the Terminology, Forms and Preparation

U.S.$1, the exchange rate prevailing in Tokyo on March 31, 2000.

Methods of the Consolidated Financial Statements (the “Regulations”).

These translations should not be construed as representations that

Relevant notes have been added and certain reclassifications of the

yen amounts have been, could have been or could be converted into

accounts in the basic financial statements disclosed in Japan have been

U.S. dollars.

2. Summary of Significant Accounting Policies(a) Consolidation
The Company had 31, 30 and 26 subsidiaries as of March 31,

presented as consolidation difference. Such differences are amortizedon a straight-line basis over a period generally not exceeding 20 years,

2000, 1999 and 1998, respectively. The accompanying consolidated

except for insignificant amounts, which is charged to income asfinancial statements include the accounts of the Company and 27, 27

incurred. The differences incurred before fiscal 1999 are amortized

and 10 of them as of March 31, 2000, 1999 and 1998, respectively. In

on a straight-line basis over five years.

addition, for fiscal 2000, due to the amendment of the Regulations,
two other companies which had been classified as affiliates (meaning(b) Investments in unconsolidated subsidiaries and affiliates

20 percent to 50 percent ownership of company’s equity) until fiscal

For fiscal 2000, the Company had two (three for fiscal 1999 and 16

1999 were included as consolidated subsidiaries, because thefor fiscal 1998) unconsolidated subsidiaries and nine (11 for fiscal

Company had substantial control over them. The 29 consolidated

1999 and 13 for fiscal 1998) affiliates. The equity method is applied tosubsidiaries including the above-mentioned two companies are listed

the investments in two major affiliates since investments in theon page 39.

remaining unconsolidated subsidiaries and affiliates are not material

For fiscal 2000, two (three for fiscal 1999 and 16 for fiscal 1998)
subsidiaries, were not consolidated with the Company because their
combined assets, net sales, net income and retained earnings in thefor the consolidated financial statements.
The major affiliates accounted for under the equity method arelisted on page 39.

aggregate are not significant in relation to those set forth in the
consolidated financial statements of the Companies.

(c) Cash and cash equivalents

The fiscal years of the subsidiaries are not necessarily the same as

Cash and cash equivalents include all highly liquid investments,

the Company’s. Accounts of those subsidiaries, which have different

generally with original maturities of three months or less, that are

fiscal periods, have been adjusted for significant transactions toreadily convertible to known amounts of cash and are so nearproperly reflect their financial positions as of March 31, 2000, 1999

maturity that they present insignificant risk of changes in valueand 1998, respectively.

because of changes in interest rates, in accordance with the

For the purpose of preparing the consolidated financial statements,

Regulations.

all significant inter-company transactions, account balances andunrealized profits among the Companies have been eliminated, andthe portion attributable to minority interest has been credited/charged against it.
The differences between the cost and underlying net equity ofinvestments in consolidated subsidiaries at the time of acquisition are(d) Securities
Securities that are quoted on stock exchanges are stated mainly at
the lower of cost, as determined by the moving average method, ormarket value. Other securities are stated at cost, as determined by
the moving average method.

TOYODA AUTOMATIC LOOM WORKS, LTD. 27

Notes to Consolidated Financial Statements(e) Inventories
Inventories are stated mainly at cost determined by the moving
average method.

(l) Consumption tax
Principally, the consumption tax under the Japanese Consumption
Tax Law withheld by the Companies on sales of goods is not includedin the amount of net sales in the accompanying consolidated(f) Property, plant and equipment, and depreciation

statements of income, and the consumption tax borne by theProperty, plant and equipment are stated at cost.

Companies under the law on purchases of goods and services, andDepreciation of property, plant and equipment, for the Company

expenses is not included in the related amount.

and its domestic subsidiaries and affiliates, is computed mainly by the
declining-balance method and, for its overseas subsidiaries andaffiliates, is computed mainly by the straight-line method based on theestimated useful lives of the assets.

(m) Appropriation of retained earnings
In the accompanying consolidated statements of shareholders’equity, the approved amount during the relevant fiscal year isreflected for the appropriation of retained earnings of consolidated(g) Bond issue expenses

subsidiaries.

Bond issue expenses are charged to income as incurred.
(n) Income taxes(h) Allowances for doubtful accounts
Allowances for doubtful accounts are provided mainly at the
maximum amount deductible under the tax laws of Japan.

Income taxes are principally provided in amounts currently payablefor each year. Until fiscal 1999, deferred income taxes arising fromtiming differences between reporting for accounting purposes andthat for tax purposes had not been required to be accounted for(i) Provision for retirement and severance benefits
The annual provision for retirement and severance benefits isunder Japanese accounting principles and therefore had not beenrecorded in the financial statements by the Company and its domestic

calculated to state liability at the present value, based on the amountsubsidiaries and affiliates. (For overseas subsidiaries and affiliates,

which would be required if all employees voluntarily terminated theirdeferred income taxes have been recorded and reflected in theiremployment at each balance sheet date, less amounts compensatedrespective financial statements.)

by the qualified retirement pension plan which cover 50 percent of
the amount of the benefits of the retired employees after 20 years of
employment.

However, from fiscal 2000, tax effect accounting has been adopted
in Japan. See Note 4(b).
See also Note 4(a) for the presentation of enterprise taxes in theaccompanying consolidated statements of income.

(j) Lease transaction
Finance leases other than those that are deemed to transfer theownership of the leased assets to lessees are mainly accounted for by(o) Amounts per share
Net income per share is computed based on the average number

the method similar to that applicable to ordinary operating leases.

of outstanding shares of common stock during the fiscal year.

(k) Translation adjustment(p) Assets and liabilities of consolidated subsidiaries

Accounts of overseas consolidated subsidiaries and affiliates
accounted for under the equity method have been translated into
Japanese yen as follows:
1. Assets and liabilities have been translated at the prevailing fiscal
year-end rate.
2. Shareholders’ equity has been translated at the rate prevailingwhen equity was acquired or when a change in equity occurred.
3. Revenue and expenses have been translated at the prevailingfiscal average rate, although the prevailing fiscal year-end rate
had been used until fiscal 1999. See Note 3.

28

TOYODA AUTOMATIC LOOM WORKS, LTD.

Assets and liabilities of consolidated subsidiaries are evaluated byusing the market price method.

3. Change in Accounting
Until fiscal 1999, revenue and expenses accounts of overseas
consolidated subsidiaries had been translated into Japanese yen with

incurred throughout the fiscal years.
If the figures of fiscal 2000 had been presented based on thefiscal year-end rates. From fiscal 2000, the Company uses fiscal

method used until fiscal 1999, net sales for fiscal 2000 would beaverage rates. This change was made to present the operating results¥615,341 million ($5,796,902 thousand), income before income taxes

more precisely as the significance of the overseas consolidated

would be ¥26,611 million ($250,690 thousand) and net income

subsidiaries had been increasing and their revenue and expenses werewould be ¥13,488 million ($127,069 thousand).

4. Additional Information(a) From fiscal 1999, the Company has presented consolidated
financial statements as follows.

million ($92,957 thousand) (¥4,556 million ($42,922 thousand) incurrent assets and ¥5,311 million ($50,035 thousand) in investments

In the consolidated balance sheets, legal reserve and retained

and other assets), and deferred tax liabilities are recognized in theearnings have been combined and shown as retained earnings.

amount of ¥2,041 million ($19,233 thousand) and included in long-

Consolidation difference, which had been placed between theterm liabilities in the consolidated financial statements as of Marchliabilities section and the shareholders’ equity section until fiscal 1998,

31, 2000.

has been included in long-term liabilities from fiscal 1999.
In the consolidated statements of income, enterprise taxes (¥2,088

If the figures of fiscal 2000 had been presented based on themethod used until fiscal 1999, net income for fiscal 2000 and retained

million for fiscal 1999) had been included in selling, general andearnings as of March 31,2000 would be ¥10,716 million ($100,952

administrative expenses until fiscal 1998. For fiscal 1998, enterprisethousand) and ¥207,006 million ($1,950,124 thousand), respectively.

taxes were ¥3,343 million. However, they have been included in

In addition to the above, deferred tax assets relating to priorincome taxes from fiscal 1999. Amortization of consolidation

periods are recognized as prior years deferred tax adjustments ofdifference (¥120 million for fiscal 1999), which had been classified as a

¥5,487 million ($51,693 thousand) in retained earnings as of Marchdeductible item from income before income taxes until fiscal 1998,

31, 2000.

has been included in selling, general and administrative expenses.
Equity in earnings of affiliates (loss of ¥3,763 million for fiscal 1999),(c) Until fiscal 1999, consolidated statements of cash flows had

which had been added to or deducted from income before income

been prepared in conformity with the accounting principles

taxes until fiscal 1998, has been included in other, net of other incomeprescribed by the Company and accepted by the independent public

or expenses. These adjustments have not been applied to the financial

accountants. However, from fiscal 2000, they have to be prepared instatements presented prior to fiscal 1999 retroactively.

accordance with newly prescribed rules in the amended Regulations.

If the figures of fiscal 1999 had been presented based on the

Pursuant to the amendment, the consolidated statements of cash

method used until fiscal 1998, operating income and income before

flows for fiscal 1999 and 1998 were restated to make the figuresincome taxes for fiscal 1999 would have been ¥22,846 million andcomparable with those of fiscal 2000.

¥24,968 million, respectively.

According to this change, deposits and securities (for stocks, they
had been stated as marketable securities separately) with original(b) Tax effect accounting has been adopted from fiscal 2000 due
to the amendment of the Regulations. In conformity therewith,maturities of over three months have been classified as short-term
investments from fiscal 2000.

deferred tax assets are newly recognized in the amount of ¥9,867

TOYODA AUTOMATIC LOOM WORKS, LTD. 29

Notes to Consolidated Financial Statements
5. Marketable Securities
Current and non-current marketable securities included in current assets and in investments and other assets as of March 31, 2000
were as follows:
Millions of yen

Book
value

Current:
Stock
Bonds
Other

Thousands of U.S. dollars

Marketvalue

Valuation
profitBook
value

Marketvalue

Valuation
profit

¥

393
2
–

¥

1,256
3
–

¥

863
1
–

$

3,694
23
–

$

11,826
28
–

$

8,132
5
–

Sub-total

¥

395

¥

1,259

¥

864

$

3,717

$

11,854$

8,137

Non-Current:
Stock
Bonds
Other

¥162,983
2,000
50¥1,323,286
1,997
50

¥1,160,303(3)–$1,535,403
18,841471$12,466,190
18,812475$10,930,787(29)
4Sub-total¥165,033¥1,325,333¥1,160,300$1,554,715$12,485,477$10,930,762

Total¥165,428¥1,326,592¥1,161,164$1,558,432$12,497,331$10,938,899

Notes: 1. Market value is calculated mainly based on the closing price of the Tokyo Stock Exchange.
2. Book value of the securities which are excluded from disclosure above is as follows:

Millions of yen

Thousands of
U.S. dollars

Current:
Bonds used in repurchase agreements
Commercial paper used in repurchase agreements
Discount bank debenture
Foreign unlisted bondMoney management fund

¥ 3,994
3,993
3,491
810
632

$ 37,623
37,62032,889
7,628
5,958

Non-current:
Domestic private stock
Foreign private stock¥22,856
3,310$215,322
31,183

6. Inventories
Inventories as of March 31, 2000 and 1999 were as follows:
Millions of yen

Thousands of
U.S. dollars

2000

1999

2000

Finished goods
Raw materials
Work in process
Supplies¥ 3,342
4,615
18,104
4,154¥ 2,223
3,421
18,062
3,554$ 31,485
43,476
170,548
39,135

Total¥30,215¥27,260$284,644

30

TOYODA AUTOMATIC LOOM WORKS, LTD.

7. Long-term Debt(a) Long-term debt as of March 31, 2000 and 1999 was as follows:
Thousands of
U.S. dollars

Millions of yen

2000

1999

2000

¥ 75,748¥ 75,748$ 713,594

2.70% bonds due 2008 without collateral

30,00030,000282,619

1.50% bonds due 2003 without collateral

20,00020,000188,413

2.15% bonds due 2008 without collateral

20,00020,000188,413

1.50% bonds due 2006 without collateral

15,000–141,309

1.94% bonds due 2009 without collateral

15,000–141,309

1.80% bonds due 2005

300

300

2,826

Long-term bank loans

6,011

3,444

56,628

(987)

(874)

(9,300)¥181,072¥148,618$1,705,811

Parent company:
0.35% convertible bonds due 2003 without collateral

Consolidated subsidiaries:

Less: current portion of long-term debt
Total

Note: The conversion period of the 0.35 percent convertible bonds due 2003 is from May 1, 1996 to September 29, 2003 and the conversion price was¥2,020 per share as of March 31,2000. The aggregate number of shares issuable upon conversion thereof at such conversion price was 37,499
thousand shares.

(b) Annual maturities of long-term debt as of March 31, 2000 are as follows:

2001
2002
2003
2004
2005
2006 and thereafter
Total

Millions of yen

Thousands of
U.S. dollars

¥

$

987
1,053
857
97,129

9,300
9,917
8,071
915,020

418

3,942

81,615

768,861¥182,059$1,715,111

8. Assets Pledged as Collateral
Investment securities, land, buildings and structures at the bookvalue of ¥13,297 million ($125,265 thousand) were pledged ascollateral for bank loans or employees’ savings deposits or otherliabilities as of March 31, 2000.

9. Contingent Liabilities
Contingent liabilities for guarantees of loans of two companies andindustrial revenue bond issues of one village in Michigan, U.S.A.

amounted to ¥3,306 million ($31,144 thousand) as of March 31,
2000.

TOYODA AUTOMATIC LOOM WORKS, LTD. 31

Notes to Consolidated Financial Statements
10. Shareholders’ Equity
Under the Japanese Commercial Code, amounts equal to at least

held after the close of the fiscal year to which the dividends are

10 percent of the sum of the cash dividends and other external

applicable. In addition, semi-annual dividends may be paid upon

appropriations paid by the Company and its domestic subsidiaries

resolution of the Board of Directors, subject to limitations imposed

must be set aside as a legal reserve until it equals 25 percent ofby the Japanese Commercial Code.

common stock. The legal reserve may be used to reduce a deficit orProceeds from the conversions of convertible bonds have been

may be transferred to common stock by taking appropriate

accounted for in approximately equal amounts as common stock andcorporate action. In consolidation, the legal reserves of the Company

capital surplus. At least 50 percent of the proceeds have been

and its domestic subsidiaries are accounted for as retained earnings.

accounted for as common stock, in accordance with the provisions ofYear-end dividends are approved by the shareholders at a meeting

the Japanese Commercial Code.

11. Research and Development Expenses
Research and development expenses, which were included inamounted to ¥24,062 million ($226,676 thousand), ¥23,231 million

selling, general and administrative expenses and manufacturing costs,and ¥23,112 million for fiscal 2000, 1999 and 1998, respectively.

12. Income Taxes(a) The significant components of deferred tax assets and liabilities as of March 31, 2000 were as follows:
Millions of yen

Thousands of
U.S. dollars¥ 2,368
1,708
1,452
1,338
993
776
507
4,034

$ 22,305
16,092
13,67812,609
9,353
7,308
4,780
38,00013,176(2,394)

124,125(22,553)

Total deferred tax assets

10,782

101,572

Deferred tax liabilities:
Depreciation
Land
Reserve for advanced depreciation
Reserve for special depreciation
Other

1,304
1,112
409
59
72

12,281
10,475
3,852
555
686

Total deferred tax liabilities

2,956

27,849¥ 7,826$ 73,723

Deferred tax assets:
Net operating loss carry-forwards for tax purposes
Receivables – Trade
Accrued expenses
Depreciation
Provision for retirement and severance benefits
Enterprise tax payable
Securities
Other
Sub-total
Less: valuation allowance

Net deferred tax assets

32

TOYODA AUTOMATIC LOOM WORKS, LTD.

(b)Reconciliations of differences between the statutory rate of income taxes and the effective rate of income taxes for the year ended
March 31, 2000 were as follows:
Rate

Statutory rate of income taxes
Addition (reduction) in taxes resulting from:
Equity in loss of affiliates
Net loss before income taxes of consolidated subsidiaries
Elimination of dividend income
Dividend income and others not recognized as taxable income
Other

41.2%

Effective rate of income taxes

46.3%

7.6
3.5
1.3
(8.6)
1.3

13. Lease Transaction(a) Finance leases which do not transfer ownership of leased assets to lessees
1. Pro forma information of acquisition cost and accumulated depreciation of leased assets as of March 31, 2000 and 1999 were as follows:
Millions of yen

Machinery and equipment:
Acquisition costLess: accumulated depreciation
Net leased assets

Thousands of
U.S. dollars

2000

1999

2000

¥7,720¥8,075$72,730

3,585

3,603

33,778¥4,135¥4,472$38,952

2. Pro forma obligations under finance leases as of March 31, 2000 and 1999 were as follows:
Millions of yen

Thousands of
U.S. dollars

2000

1999

2000

¥1,501¥1,421$14,136

2,634

2,929

24,816¥4,135¥4,350$38,952

Millions of yen

Thousands of
U.S. dollars

2000¥1,749$16,479

1999

1,679

–

1998

1,591

–

Obligations under finance leases:
Due within one year
Due after one year
Total
Note: Obligations under finance leases include the imputed interest expense portion.

3. Total lease payments for the years ended March 31, 2000, 1999 and 1998 were as follows:

Note: Pro forma depreciation expenses, which are not reflected in the accompanying consolidated statements of income, were computed by thestraight-line method for fiscal 2000, 1999 and 1998 and were equivalent to the amount of total lease payments of the above.

TOYODA AUTOMATIC LOOM WORKS, LTD. 33

Notes to Consolidated Financial Statements(b) Operating leases
Pro forma obligations under operating leases as of March 31, 2000 and 1999 were as follows:
Thousands of
U.S. dollars

Millions of yen

Obligations under operating leases:
Due within one year
Due after one year
Total

2000

1999

2000

¥203

¥174

$1,917

165

156

1,552

¥368

¥330

$3,469

14. Subsequent Events(a) The Board of Directors, by its resolution adopted on April 4,

BT Industries AB, the Company on July 19, 2000, issued domestic

2000, approved that the Company would purchase 25.1 percent ofbonds without collateral in the aggregate amount of ¥40,000 million

the outstanding common stock of BT Industries AB in Sweden from($376,825 thousand), being 1.25 percent ¥20,000 million bonds due

its major shareholders and would make a tender offer for the2005 and 1.91 percent ¥20,000 million bonds due 2010.

remaining 74.9 percent. The Company concluded an agreement withthe then major shareholders of BT Industries AB on April 4, 2000.

(b) On June 29, 2000, the shareholders of the Company authorized

On May 31, 2000, the Company purchased the 25.1 percent or

the payment of a year-end cash dividend to shareholders of record as

7,021 thousand shares from such major shareholders forof March 31, 2000, of ¥8 ($0.075) per share, or a total of ¥2,266

approximately ¥23,000 million ($216,675 thousand), and on June 22,

million ($21,350 thousand), and bonuses to directors and corporate

2000 obtained 72.0 percent or 20,156 thousand shares by tender

auditors of ¥184 million ($1,733 thousand). Cash dividends for theoffer for approximately ¥66,100 million ($622,704 thousand).

year thus totaled ¥16 ($0.151) per share, including a semi-annual

To partially finance the purchase and tender offer of the shares in

34

TOYODA AUTOMATIC LOOM WORKS, LTD.

dividend of ¥8 ($0.075).

15. Segment Information(a) Business segments

Thousands of
U.S. dollars

Millions of yen

2000

1999

1998

2000

¥423,413
3,335
426,748¥364,269
2,431
366,700¥366,387
4,021
370,408$3,988,818
31,4214,020,239

149,085–
149,085

151,370–
151,370

160,117–160,117

1,404,470–
1,404,470

23,135–
23,135

18,947–
18,947–––217,946–
217,946

30,1402,613
32,75324,2902,974
27,264

46,194
1,060
47,254283,939
24,620308,559

631,721(5,948)564,281(5,405)

577,779(5,081)

5,951,214(56,041)

Total¥625,773¥558,876¥572,698$5,895,173

Operating Costs and Expenses:
Automobile
Materials Handling Equipment
Textile Machinery
OthersElimination of inter-segment transactions¥402,320
143,335
26,10732,001(6,857)¥349,302
142,918
22,40225,064(5,624)¥351,635
147,386–
45,895(4,947)$3,790,106
1,350,307
245,940
301,471(64,597)

Total¥596,906¥534,062¥539,969$5,623,227

Operating Income (Loss):
Automobile
Materials Handling Equipment
Textile Machinery
OthersElimination of inter-segment transactions¥ 24,429
5,749(2,971)752
908¥ 17,397
8,452(3,455)2,200
220¥ 18,773
12,731
–
1,359
(134)

$ 230,133
54,163(27,994)
7,089
8,556

Total

¥ 28,867¥ 24,814¥ 32,729$ 271,947

Assets:Automobile
Materials Handling Equipment
Textile Machinery
OthersCorporate¥266,839
81,34323,42718,012296,293¥254,087
78,51822,224
20,729241,513¥204,216
69,730–43,877275,181$2,513,787
766,302220,702
169,684
2,791,271

Total¥685,914¥617,071¥593,004$6,461,746

Depreciation and Amortization of Intangibles:
Automobile
Materials Handling Equipment
Textile Machinery
OthersCorporate or elimination of inter-segment transactions¥ 31,707
7,751
978
2,398
(82)

¥ 26,518
5,548
1,024
1,404
(114)

¥ 21,473
4,549
–
1,959
(23)

$ 298,701
73,0139,217
22,588
(773)

Total

¥ 42,752¥ 34,380¥ 27,958$ 402,746

Capital Expenditures:
Automobile
Materials Handling Equipment
Textile Machinery
OthersCorporate or elimination of inter-segment transactions¥ 33,058
5,426
1,042
5,794
(574)

¥ 47,635
11,691
663
875
(396)

¥ 50,918
7,660
–
3,586
(157)

$ 311,423
51,122
9,815
54,586(5,409)Total¥ 44,746¥ 60,468¥ 62,007$ 421,537

Sales:
Automobile
Outside customer sales
Inter-segment transactions
Materials Handling Equipment
Outside customer sales
Inter-segment transactions
Textile Machinery
Outside customer sales
Inter-segment transactions
Others
Outside customer sales
Inter-segment transactions
Sub-total
Elimination of inter-segment transactions

TOYODA AUTOMATIC LOOM WORKS, LTD. 35

Notes to Consolidated Financial Statements(b) Geographical segments
Thousands of
U.S. dollars

Millions of yen

2000

1999

¥531,274
25,309556,583¥465,444
18,860484,304–––$5,004,933
238,432
5,243,365

79,232–
79,232

78,264–78,264–––746,409–746,40915,268589
15,857

15,168551
15,719–––143,832
5,552
149,384

651,672(25,899)578,287(19,411)––

6,139,158(243,985)

Total¥625,773¥558,876¥572,698$5,895,173

Operating Costs and Expenses:
Japan
North America
OthersElimination of inter-segment transactions¥533,987
74,547
15,358(26,986)¥465,139
73,342
15,100(19,519)––––$5,030,498
702,276
144,683(254,230)

Total¥596,906¥534,062¥539,969$5,623,227

Operating Income:Japan
North America
OthersElimination of inter-segment transactions¥ 22,596
4,685
499
1,087

¥ 19,166
4,922
619
107

–
–
–
–

$ 212,867
44,133
4,701
10,246

Total¥ 28,867¥ 24,814¥ 32,729$ 271,947

Assets:Japan
North America
OthersCorporate¥361,459
44,035
17,322
263,098¥349,787
39,113
15,846
212,325––––$3,405,174
414,833
163,186
2,478,553

Total¥685,914¥617,071¥593,004$6,461,746

Sales:
Japan
Outside customer sales
Inter-segment transactions
North America
Outside customer sales
Inter-segment transactions
Others
Outside customer sales
Inter-segment transactions
Sub-total
Elimination of inter-segment transactions

1998

2000

Notes:(a) Business segments
1. Amounts of the textile machinery business had been included in the “Others” Segment until fiscal 1998.
However, from fiscal 1999, these amounts have been separated from the “Others” Segment and are presented as the Textile Machinery Segment
because these have become more material than until fiscal 1998.
2. Main products of each segment:
Automobile .... passenger vehicles, diesel and gasoline engines, car air-conditioning compressors
Materials Handling Equipment .... counterbalanced forklifts, skid steer loaders, automated storage and retrieval systems
Textile Machinery .... ring spinning frames, air jet looms, water jet looms
Others .... ball grid array-type plastic package substrates for IC chipsets(b) Geographical segments
Until fiscal 1998, both the amounts of the transactions in Japan and the assets belonging to the Company and its domestic subsidiaries had been morethan 90 percent of the total amounts of all segments. Therefore, geographical segments information had been omitted for periods prior to fiscal 1999.

36

TOYODA AUTOMATIC LOOM WORKS, LTD.