Consolidated Financial Statements

Consolidated Balance Sheets
(Years ended March 31)

Assets			(Millions of yen)
			2003	2004	2005	2006	2007
Current assets:
	Cash and cash equivalents		1,167,470	1,275,014	1,169,756	1,667,396	1,236,639
	Time deposits		395,559	170,047	144,781	11,001	225,458
	Short-term investments		1,196	2,684	11,978	56,753	93,179
	Trade receivables:
		Notes	67,440	62,822	107,317	66,707	8,522
		Accounts	1,132,508	1,052,718	1,188,257	1,117,508	1,101,549
		Allowance for doubtful receivables	-53,043	-47,873	-43,836	-37,400	-29,061
		Net trade receivables	1,146,905	1,067,667	1,251,738	1,146,815	1,141,010
	Inventories		783,262	777,540	893,425	915,262	949,399
	Other current assets		491,786	482,025	558,854	609,326	553,164
	Total current assets		3,986,178	3,774,977	4,030,532	4,406,553	4,198,849
Noncurrent receivables			299,239	280,398	246,201	-	-
Investments and advances			1,020,137	1,237,427	1,146,505	1,100,035	1,206,082
Property, plant and equipment:
		Land	264,148	251,419	393,635	374,989	371,154
		Buildings	1,280,448	1,253,350	1,665,243	1,667,764	1,633,747
		Machinery and equipment	2,840,184	2,705,251	3,087,155	3,142,607	3,126,397
		Construction in progress	64,792	46,037	84,139	71,037	105,487
		Less accumulated depreciation	3,150,677	3,046,555	3,572,092	3,624,058	3,594,492
		Net property, plant and equipment	1,298,895	1,209,502	1,658,080	1,632,339	1,642,293
Other assets			1,230,244	935,708	975,563	825,713	849,734
Total assets			7,834,693	7,438,012	8,056,881	7,964,640	7,896,958

Liabilities and Stockholders' Equity			(Millions of yen)
			2003	2004	2005	2006	2007
Current liabilities:
	Short-term borrowings, including current portion of long-term debt		333,686	290,208	385,474	339,845	223,190
	Trade payables:
		Notes	34,218	40,604	37,099	66,316	51,602
		Accounts	693,066	744,130	828,920	914,963	883,375
		Total trade payables	727,284	784,734	866,019	981,279	934,977
	Accrued income taxes		33,499	44,179	47,916	51,128	61,524
	Accrued payroll		150,095	141,932	145,871	142,594	139,719
	Other accrued expenses		683,569	696,741	789,999	842,467	863,428
	Deposits and advances from customers		100,469	83,798	92,089	90,600	83,676
	Employees' deposits		125,024	124,800	118,441	14,065	406
	Other current liabilities		417,206	403,394	383,082	423,090	434,947
	Total current liabilities		2,570,832	2,569,786	2,828,891	2,885,068	2,741,867
Noncurrent liabilities:
	Long-term debt		588,202	460,639	477,143	264,070	226,780
	Retirement and severance benefits		1,375,143	801,199	597,163	414,266	280,958
	Other liabilities		11,939	26,697	113,491	112,024	179,458
	Total noncurrent liabilities		1,975,284	1,288,535	1,187,797	790,360	687,196
Minority interests			110,177	128,115	495,941	501,591	551,154
Stockholders' equity:
	Common stock		258,738	258,740	258,740	258,740	258,740
	Capital surplus		1,219,686	1,230,476	1,230,701	1,234,289	1,220,967
	Legal reserve		80,700	83,175	87,838	87,526	88,588
	Retained earnings		2,432,052	2,442,504	2,461,071	2,575,890	2,737,024
	Accumulated other comprehensive income (loss):
		Cumulative translation adjustments	-161,124	-282,287	-245,642	-162,331	-99,538
		Unrealized holding gains (losses) of available-for-sale securities	-18,082	88,104	72,608	145,306	160,831
		Unrealized gains (losses) of derivative instruments	-1,090	6,676	6,403	1,326	862
		Minimum pension liability adjustments	-525,346	-211,995	-71,746	10,420	-
		Pension liability adjustments	-	-	-	-	44,942
		Total accumulated other comprehensive income (loss)	-705,642	-399,502	-238,377	-26,119	107,097
	Treasury stock, at cost		-107,134	-163,817	-255,721	-342,705	-495,675
	Total stockholders' equity		3,178,400	3,451,576	3,544,252	3,787,621	3,916,741
Total liabilities and stockholders' equity			7,834,693	7,438,012	8,056,881	7,964,640	7,896,958

Consolidated Statements of Operations
(Years ended March 31)

		(Millions of yen)
		2003	2004	2005	2006	2007
Net sales		7,401,714	7,479,744	8,713,636	8,894,329	9,108,170
Cost of sales		5,323,605	5,313,065	6,176,046	6,155,297	6,394,418
	Gross profit	2,078,109	2,166,679	2,537,590	2,739,032	2,713,752
Selling, general and administrative expenses		1,951,538	1,971,187	2,229,096	2,324,759	2,254,211
	Operating profit	126,571	195,492	308,494	414,273	459,541
Other income (deductions) :
	Interest and dividend income	26,773	25,039	24,873	34,783	38,150
	Gain from the transfer of the substitutional portion of Japanese Welfare Pension Insurance	-	72,228	31,509	-	-
	Interest expense	-32,805	-27,744	-22,827	-21,686	-20,906
	Other, net	-51,623	-94,193	-95,136	-56,058	-37,641
	Income before income taxes	68,916	170,822	246,913	371,312	439,144
Provision for income taxes :
	Current	51,704	77,375	96,529	96,341	119,465
	Deferred	19,572	21,160	56,805	70,748	72,398
	Total provision for income taxes	71,276	98,535	153,334	167,089	191,863
Minority interests		5,505	19,618	27,719	-987	31,131
Equity in earnings (losses) of associated companies		-11,588	-10,524	-7,379	-50,800	1,035
	Net income (loss)	-19,453	42,145	58,481	154,410	217,185

Other income (deductions) for fiscal 2003 includes restructuring charges of ¥12.5 billion associated with the implementation of early retirement programs and a ¥52.6 billion loss for write-down of investment securities.
Other income (deductions) for fiscal 2004 includes restructuring charges of ¥54.1 billion associated with the implementation of early retirement programs and the closure and integration of locations, ¥11.7 billion for impairment losses, and a ¥52.5 billion loss for write-down of investment securities.
Other income (deductions) for fiscal 2005 includes restructuring charges of ¥110.6 billion associated with the implementation of early retirement programs and the closure and integration of locations, and a ¥16.2 billion loss for write-down of investment securities.
Other income (deductions) for fiscal 2006 includes restructuring charges of ¥37.0 billion associated with the implementation of early retirement programs and a ¥24.9 billion related to the kerosene fan heater recall.
Other income (deductions) for fiscal 2007 includes ¥14.2 billion associated with the implementation of early retirement programs, a ¥27.3 billion gain from the sale of the investments regarding cable broadcasting business and ¥49.2 billion as impairment losses on long-lived assets.
In order to be consistent with financial reporting practices generally accepted in Japan, operating profit is presented as net sales less cost of sales and selling, general and administrative expenses. Under U.S. generally accepted accounting principles, certain additional charges (such as impairment and restructuring charges) are included as part of operating profit in the consolidated statements of operations. See Notes 1,2,3,4 and 5 above.

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