March 31, 2001 and 2000

·ASSETS    ·LIABILITIES AND SHAREHOLDERS' EQUITY

ASSETS   Millions of Yen Thousands of U.S. Dollars (Note 1)   2001 2000 2001 Current Assets:       Cash (Note 2.c) ¥59,193 ¥56,792 $477,363    Time deposits (Note 2.c) 99,347 110,993 801,185    Marketable securities (Notes 2.c and 3) 6,120 14,116 49,355    Notes and accounts receivable:         Trade 80,586 66,705 649,887      Allowance for doubtful accounts (301) (312) (2,427)    Inventories 2,178 2,610 17,565    Deferred tax assets (Note 7) 7,634 5,446 61,564    Prepaid expenses and other current assets 10,893 7,557 87,847      Total current assets 265,650 263,907 2,142,339   Property, Plant and Equipment-at Cost (Note 4):      Land 156,133 154,373 1,259,137    Buildings and structures 196,016 185,913 1,580,774    Vehicles 132,232 123,487 1,066,387    Machinery and equipment 86,237 87,687 695,460    Construction in progress 3,217 6,403 25,944      Total 573,835 557,863 4,627,702    Accumulated depreciation (257,735) (246,161) (2,078,508)     Net property, plant and equipment 316,100 311,702 2,549,194   Investments and Other Assets:       Investment securities (Notes 3 and 4) 17,535 16,008 141,411    Investments in and advances to non-consolidated subsidiaries and affiliates, net of valuation allowance of ¥800 million ($6,452 thousand) in 2001 and 2000 4,001 6,007 32,266    Long-term loans 5,426 5,932 43,758    Lease deposits 29,684 29,392 239,387    Deferred tax assets (Note 7) 24,150 1,272 194,758    Other assets 7,700 8,257 62,097     Total investments and other assets 88,496 66,868 713,677   Total ¥670,246 ¥642,477 $5,405,210 See notes to consolidated financial statements.

LIABILITIES AND SHAREHOLDERS' EQUITY   Millions of Yen Thousands of U.S. Dollars (Note 1)   2001 2000 2001 Current Liabilities:       Short-term bank loans (Note 4) ¥9,459 ¥9,377 $76,282    Current portion of long-term debt (Note 4) 17,629 41,334 142,169    Notes and accounts payable:         Trade 65,431 62,942 527,669      Construction 7,984 10,104 64,387    Income taxes payable (Note 7) 16,726 10,870 134,887    Employees' savings deposits 3,915 4,211 31,573    Accrued expenses 37,798 37,870 304,823    Other current liabilities (Note 4) 13,174 12,000 106,242      Total current liabilities 172,116 188,708 1,388,032      Long-Term Liabilities:       Long-term debt (Note 4) 87,869 106,625 708,621    Liability for employees’ retirement benefits (Note 5) 63,245 6,457 510,040    Deferred tax liabilities (Note 7) 1,124 1,153 9,065    Other long-term liabilities (Note 4) 321 871 2,589      Total long-term liabilities 152,559 115,106 1,230,315       Minority Interest 1,362 368 10,984    Contingent Liabilities (Note 9)      Shareholders' Equity (Notes 4, 6 and 11):       Common stock, ¥50 par value—authorized,530,000,000 shares; issued and outstanding,461,278,477 shares in 2001 and 445,440,546 shares in 2000 116,155 108,477 936,734    Additional paid-in capital 128,947 121,269 1,039,895    Retained earnings 97,982 108,551 790,177    Unrealized gain on available-for-sale securities 1,511 - 12,186    Foreign currency transaction adjustments (385) - (3,105)      Total 344,209 338,297 2,775,887    Treasury stock-at cost (1) (2) (8)      Total shareholders' equity 344,210 338,295 2,775,879   Total ¥670,246 ¥642,477 $5,405,210