October 10, 2003

Notice of Change to Performance Forecasts
In view of the recent trends in the Company’s performance and other factors, we have made thefollowing adjustments to the interim and full-year performance forecasts for the fiscal year ending
March 2004 (from April 1, 2003 to March 31, 2004), which were announced simultaneously with thefinancial results for the previous year on May 14, 2003.
1. Adjustments to Interim Performance Forecasts for Fiscal Year ending March 2004 (fromApril 1, 2003 to Se ptember 30, 2003)(1) Consolidated
Sales
Previous Forecast (A)(Announced May 14, 2003)
Revised Forecast (B)Change (B-A)
Percentage change (%)
Previous Interim Results (for half year
ended September 2002)(Unit: million yen, %)Ordinary Income
Net Income

255,000

6,000

2,600

255,000
−
−

7,700
1,700
28.3

2,400(200)(7.7)

249,565

6,115

4,432

(2) Non-consolidated
Sales
Previous Forecast (A)(Announced May 14, 2003)
Revised Forecast (B)Change (B-A)
Percentage change (%)
Previous Interim Results (for half year
ended September 2002)(Unit: million yen, %)Ordinary Income
Net Income

210,000

4,100

1,800210,000−−5,4001,300
31.7

1,300(500)(27.8)

207,278

3,854

2,838

12. Adjustments to Full-year Performance Forecasts for Fiscal Year ending March 2004 (fromApril 1, 2003 to March 31, 2004)(1) ConsolidatedSales
Previous Forecast (A)(Announced May 14, 2003)
Revised Forecast (B)Change (B-A)
Percentage change (%)
Results for Previous Year (ended March2003)(Unit: million yen, %)Ordinary Income
Net Income

509,000

11,8006,000

509,000−−

12,600
800
6.8

7,000
1,000
16.7

503,688

11,284

4,186(Reference) Projected net income per share (on a full-year basis)¥54.56(2) Non-consolidated
Sales
Previous Forecast (A)(Announced May 14, 2003)
Revised Forecast (B)Change (B-A)
Percentage change (%)
Results for Previous Year (ended March2003)(Unit: million yen, %)Ordinary Income
Net Income

420,000

6,900

3,400

420,000
−
−

7,500
600
8.7

4,600
1,200
35.3

418,004

6,671

1,126

(Reference) Projected net income per share (on a full-year basis)¥35.76

3. Reasons for Adjustments(1) Interim Performance Forecasts
The Company’s non-consolidated business performance was better than initially expected in terms ofordinary income, owing to the increase in gross profit on sales, driven by the dramatic growth of thehighly profitable electronics business and the solid overall performance of the chemicals business,and due to the effects of reducing selling, general and administrative expenses. Due to the revisionof the accounting standards for retirement benefits*1 , however, expenses relating to retirement
benefits in the previous periods, such as unrecognized actuarial differences, etc., are to be written off
all at once. As a result, net income is expected to fall short of the level initially projected. The
forecasts have been adjusted accordingly, as shown above.
Adjustments to the consolidated performance forecasts have been made primarily due to adjustments
to the Company’s non-consolidated performance forecasts.

2

(2) Full-year Performance Forecasts
As for the Company’s non-consolidated performance forecasts, the future remains uncertain despitesome signs of recovery in its business environment, including the recovery of the stock market.
However, the forecasts have been adjusted as shown above, partly because gains on the return of thesubstitutional portion of welfare pension fund plans *2 are expected in the second half of the year.
Adjustments to the consolidated performance forecasts have been made primarily due to adjustments
to the Company’s non-consolidated performance forecasts.

*1: Revision of Accounting Standards for Retirement Benefits
The number of years over which unrecognized obligations are to be amortized are changed asfollows.
Unrecognized
Obligations
Actuarialdifferences
Past service
obligations

Before Revision

After Revision

Amortized in equal amounts over a periodof 10 years from the period subsequent tothe period in which it accrued.
Amortized in equal amounts over a periodof 3 years from the accrual date.

Written off in the period
subsequent to the period inwhich it accrued.
Written off at the time ofaccrual.

In conjunction with the revision stated above, unrecognized past service obligations accrued up until
the previous period amounting to ¥4.2 billion will be declared as an extraordinary gain, andunrecognized actuarial differences in the amount of ¥8.2 billion will be declared as an extraordinary
loss for the interim period.
*2: Return of the Substitutional Portion of Welfare Pension Fund Plans
Approval for the return of the substitutional portion of welfare pension fund plans is expected in thesecond half of the year. In conjunction with this, a gain on the return of the substitution portion ofwelfare pension fund plans in the amount of ¥2.8 billion is expected to be declared as anextraordinary gain.
<Notes on Performance Forecasts, etc.>
The performance forecasts and other figures stated in this document are based on the best
information currently available and are subject to a variety of uncertainties. For this reason, theactual business performance, etc. may differ from the projections indicated here, due to changes inbusiness conditions and other factors.

3