Financial Information: Annual Report 2002

The Company and its subsidiaries are primarily engaged in the manufacture and sales of products in the machine components segment. As the net sales, operating income and total assets of the machine components segment constituted more than 90% of the consolidated totals for the year ended March 31, 2001, the disclosure of business segment information was omitted.

Effective the year ended March 31, 2002, the Company has redefined its business segments in line with its medium-and long-term business strategy and commenced disclosure of its business information in the following four segments. This change was made in order to achieve a better presentation of the operations of the Company and its subsidiaries based on profitability and management accountability:

• Bearings segment: which includes standard ball bearings, miniature and small-sized ball bearings, roller bearings, wheel hub unit bearings, needle bearings;
• Automotive components segment: which includes steering columns, electric power assisted steering systems, automatic transmission components, seat belts;
• Precision machinery and parts segment: which includes ball screws, linear guides, X-Y tables, and Megatorque motors; and
• Other segment: which includes plant and equipment and other products.

Millions of yen
For the year ended March 31, 2002	Bearings	Automotive components	Precision machinery and parts	Other	Total	Eliminations and other	Consolidated
Sales to third parties	¥302,360	¥128,168	¥33,974	¥16,398	¥480,902	¥ -	¥480,902
Intersegment sales and transfers	-	-	-	10,529	10,529	(10,529)	-
Total	302,360	128,168	33,974	26,928	491,432	(10,529)	480,902
Operating expenses	291,075	127,784	39,302	25,123	483,286	(6,331)	476,954
Operating income (loss)	¥11,285	¥383	¥(5,328)	¥1,805	¥8,145	¥(4,198)	¥3,947
Total assets	¥349,890	¥103,790	¥58,798	¥22,746	¥535,226	¥107,596	¥642,823
Depreciation	¥20,160	¥4,264	¥3,789	¥326	¥28,541	¥(1,005)	¥27,536
Capital expenditure	¥28,312	¥4,586	¥5,350	¥105	¥38,355	¥(1,285)	¥37,070

Thousands of U.S. dollars
For the year ended March 31, 2002	Bearings	Automotive components	Precision machinery and parts	Other	Total	Eliminations and other	Consolidated
Sales to third parties	$2,273,383	$963,669	$255,444	$123,293	$3,615,805	$ -	$3,615,805
Intersegment sales and transfers	-	-	-	79,165	79,165	(79,165)	-
Total	2,273,383	963,669	255,444	202,466	3,694,977	(79,165)	3,615,805
Operating expenses	2,188,534	960,782	295,504	188,895	3,633,729	(47,602)	3,586,120
Operating income (loss)	$84,850	$2,880	$(40,060)	$13,571	$61,241	$(31,564)	$29,677
Total assets	$2,630,752	$780,376	$442,090	$171,023	$4,024,256	$808,992	$4,833,256
Depreciation	$151,579	$32,060	$28,489	$2,451	$214,594	$(7,556)	$207,038
Capital expenditure	$212,872	$34,481	$40,226	$789	$288,383	$(9,662)	$278,722

The geographical segment information for the Company and its subsidiaries for the years ended March 31, 2002 and 2001 is summarized as follows:

Millions of yen
For the year ended March 31, 2002	Japan	The Americas	Europe	Asia	Total	Eliminations and other	Consolidated
Sales to third parties	¥291,088	¥73,021	¥76,472	¥40,319	¥480,902	¥ -	¥480,902
Interarea sales and transfers	75,635	316	3,360	13,439	92,752	(92,752)	-
Total	366,724	73,338	79,833	53,759	573,655	(92,752)	480,902
Operating expenses	358,711	71,373	86,492	50,129	566,707	(89,752)	476,954
Operating income (loss)	¥8,012	¥1,965	¥(6,659)	¥3,630	¥6,948	¥(3,000)	¥3,947
Total assets	¥501,589	¥70,769	¥84,462	¥61,523	¥718,345	¥(75,521)	¥642,823

Thousands of U.S. dollars
For the year ended March 31, 2002	Japan	The Americas	Europe	Asia	Total	Eliminations and other	Consolidated
Sales to third parties	$2,188,632	$549,030	$574,977	$303,150	$3,615,805	$ -	$3,615,805
Interarea sales and transfers	568,684	2,376	25,263	101,045	697,383	(697,383)	-
Total	2,757,323	551,414	600,248	404,203	4,313,195	(697,383)	3,615,805
Operating expenses	2,697,075	536,639	650,316	376,910	4,260,955	(674,827)	3,586,120
Operating income (loss)	$60,241	$14,774	$(50,068)	$27,293	$52,241	$(22,556)	$29,677
Total assets	$3,771,346	$532,098	$635,053	$462,579	$5,401,090	$(567,827)	$4,833,256

Millions of yen
For the year ended March 31, 2001	Japan	The Americas	Europe	Asia	Total	Eliminations and other	Consolidated
Sales to third parties	¥347,065	¥76,446	¥70,258	¥39,373	¥533,144	¥ -	¥533,144
Interarea sales and transfers	90,995	543	3,461	14,063	109,064	(109,064)	-
Total	438,061	76,990	73,720	53,437	642,209	(109,064)	533,144
Operating expenses	413,581	72,599	76,663	49,126	611,971	(104,668)	507,303
Operating income (loss)	¥24,479	¥4,390	¥(2,942)	¥4,310	¥30,238	¥(4,396)	¥25,841
Total assets	¥675,492	¥65,332	¥71,813	¥54,629	¥867,269	¥(186,811)	¥680,457

As a result of the adoption of the new standard for retirement benefits as explained in Note 1(i), operating expenses for Japan decreased by ¥1,943 million and operating income increased by the same amount for the year ended March 31, 2001 as compared with the corresponding amounts for the previous year.

Overseas sales, which include export sales of the Company and its domestic subsidiaries and sales (other than exports to Japan) of the foreign subsidiaries, for the years ended March 31, 2002 and 2001 are summarized as follows:

For the year ended March 31, 2002	The Americas	Europe	Asia	Total
Millions of yen
Overseas	¥76,495	¥76,964	¥69,818	¥223,278
Consolidated net sales				¥480,902
Thousands of U.S. dollars
Overseas sales	$575,150	$578,677	$524,947	$1,678,782
Consolidated net sales				$3,615,805
Overseas sales as a percentage of consolidated net sales	15.9%	16.0%	14.5%	46.4%

For the year ended March 31, 2001	The Americas	Europe	Asia	Total
Millions of yen
Overseas sales	¥81,448	¥72,004	¥73,727	¥227,180
Consolidated net sales				¥533,144
Overseas sales as a percentage of consolidated net sales	15.3%	13.5%	13.8%	42.6%