RNS Number:2155L
Kajima Corporation
16 May 2003
++W.NON-CONSOLIDATED FINANCIAL STATEMENTS
(The 106th Financial Year from April 1, 2002 to March 31, 2003)
1.Date of the Board of Directors' Meeting to Approve
the Non-Consolidated Financial Statements: May 16, 2003
2.Date of Ordinary Stockholders' Meeting: June 27, 2003
3.Financial Highlights for the Years Ended March 31:
Millions of Yen Thousands of
U.S. Dollars
2003 2002 2003
Revenues Yen 1,458,086 Yen 1,550,317 $12,150,717
Operating Income 31,086 29,729 259,050
Net Income (Loss) 8,515 (47,794) 70,958
Total Assets 1,680,439 1,826,910 14,003,658
Stockholdersf Equity 184,011 206,013 1,533,425
Equity / Assets Ratio (%) 11.0 11.3 11.0
Contract Awards 1,139,509 1,200,432 9,495,908
Contract Backlog 1,385,832 1,704,409 11,548,600
Yen U.S. Dollars
Per Share:
Net Income (Loss) Yen 8.86 Yen (49.72) $0.07
Equity 191.59 214.32 1.60
Cash Dividends:
Total Annual 5.00 7.00 0.04
Year-End 2.50 3.50 0.02
Interim 2.50 3.50 0.02
4.Forecast for the 107th Financial Year from April 1, 2003 to March 31, 2004
Forecast for the 107th Financial Year
Millions of Yen Thousands of
U.S. Dollars
Revenues Yen 1,200,000 $10,000,000
Net Loss (15,000) (125,000)
Contract Awards 1,130,000 9,416,667
Yen U.S. Dollars
Cash Dividends per Share
Total Annual Yen 5.00 $0.04
Interim 2.50 0.02
Year-End 2.50 0.02
5. KAJIMA CORPORATION
NON-CONSOLIDATED BALANCE SHEETS
Millions of Yen Thousands of
U.S. Dollars
2003 2002 2003
ASSETS
CURRENT ASSETS:
Cash and cash equivalents Yen 49,196 Yen 68,572 $409,967
Marketable securities 285 602 2,375
Receivables:
Notes receivable-trade 24,279 45,043 202,325
Accounts receivable-trade 369,980 331,501 3,083,166
Short-term loans - 3 -
Short-term loans to subsidiaries and affiliates 11,165 582 93,042
Allowance for doubtful accounts (9,409) (9,245) (78,408)
Inventories:
Construction projects in progress 189,241 319,627 1,577,008
Development projects in progress 91,203 80,673 760,025
Real estate for sale 48,623 48,782 405,192
Materials and supplies 180 129 1,500
Deferred income taxes 71,256 73,383 593,800
Prepaid expenses and other current assets 199,594 157,389 1,663,283
Total current assets 1,045,593 1,117,041 8,713,275
PROPERTY AND EQUIPMENT:
Land 153,060 158,893 1,275,500
Buildings and structures 231,870 239,536 1,932,250
Machinery and equipment 41,860 44,193 348,833
Construction in progress 1,565 1,030 13,042
Total 428,355 443,652 3,569,625
Accumulated depreciation (162,728) (164,743) (1,356,067)
Net property and equipment 265,627 278,909 2,213,558
INVESTMENTS AND OTHER ASSETS:
Investments in securities 136,773 212,171 1,139,775
Investments in and long-term loans 114,535 123,226 954,458
to subsidiaries and affiliates
Long-term loans receivable 34,735 34,324 289,458
Allowance for doubtful accounts (61,289) (72,869) (510,742)
Deferred income taxes 96,952 86,435 807,933
Other 47,513 47,673 395,943
Total investments and other assets 369,219 430,960 3,076,825
TOTAL Yen 1,680,439 Yen 1,826,910 $14,003,658
Millions of Yen Thousands of
U.S. Dollars
2003 2002 2003
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Short-term borrowings Yen 87,247 Yen 94,724 $727,058
Commercial paper 54,000 84,000 450,000
Current portion of long-term debt 47,869 47,080 398,908
Payables:
Notes payable-trade 21,383 107,749 178,192
Accounts payable-trade 421,067 296,137 3,508,892
Advances received:
Construction projects in progress 199,178 344,327 1,659,817
Development projects in progress,
real estate and other 37,509 30,659 312,575
Income taxes payable 1,446 379 12,050
Accrued expenses 12,438 16,164 103,650
Employees' savings deposits 24,546 25,786 204,550
Other current liabilities 206,530 160,046 1,721,083
Total current liabilities 1,113,213 1,207,051 9,276,775
LONG-TERM LIABILITIES:
Long-term debt 210,684 227,085 1,755,700
Deferred income taxes on revaluation of land 9,922 9,717 82,683
Liability for retirement benefits 83,789 83,451 698,242
Allowance for loss on development projects 21,695 22,847 180,792
Allowance for loss on investments 20,742 28,341 172,850
in subsidiaries and affiliates
Other long-term liabilities 36,383 42,405 303,191
Total long-term liabilities 383,215 413,846 3,193,458
CONTINGENT LIABILITIES (See Note (7))
STOCKHOLDERS' EQUITY:
Common stock, authorized, 1,920,000,000 shares;
shares,
issued 961,312,022 shares 64,071 64,071 533,925
Additional paid-in capital 32,147 32,147 267,892
Retained earnings:
Legal reserve 16,018 16,018 133,483
Unappropriated 50,568 48,359 421,400
Revaluation surplus of land 14,414 13,697 120,117
Unrealized gain on available-for-sale securities 7,071 31,753 58,925
Treasury stock-at cost, 889,665 shares in 2003 (278) (32) (2,317)
and 88,948 shares in 2002
Total stockholders' equity 184,011 206,013 1,533,425
TOTAL Yen 1,680,439 Yen 1,826,910 $14,003,658
6. KAJIMA CORPORATION
NON-CONSOLIDATED STATEMENTS OF OPERATIONS
Millions of Yen Thousands of
U.S. Dollars
2003 2002 2003
REVENUES:
Construction projects Yen 1,363,431 Yen 1,460,025 $11,361,925
Real estate and other 94,655 90,292 788,792
Total revenues 1,458,086 1,550,317 12,150,717
COST OF REVENUES:
Construction projects 1,269,486 1,358,228 10,579,050
Real estate and other 84,259 83,168 702,159
Total cost of revenues 1,353,745 1,441,396 11,281,209
Gross profit 104,341 108,921 869,508
SELLING, GENERAL 73,255 79,192 610,458
AND ADMINISTRATIVE EXPENSES
Operating income 31,086 29,729 259,050
OTHER INCOME (EXPENSES):
Interest and dividends 4,160 4,831 34,667
Interest expense (7,115) (8,072) (59,292)
Valuation loss on marketable (2,027) (4,624) (16,892)
and investment securities
Gain (loss) on sales of marketable 3,432 (14,938) 28,600
and investment securities-net
Gain (loss) on sales or disposals of property (691) 160 (5,758)
and equipment-net
Valuation loss on investments - (5,797) -
in subsidiaries and affiliates
Provision for loss on investments - (6,907) -
in subsidiaries and affiliates
Provision for doubtful accounts (4,258) (33,374) (35,483)
Write-down of real estate and other - (14,427) -
Provision for loss on development projects - (22,847) -
Foreign currency exchange gain (loss) (906) 911 (7,550)
Other-net (2,977) (3,259) (24,809)
Other expenses-net (10,382) (108,343) (86,517)
INCOME (LOSS) BEFORE INCOME TAXES 20,704 (78,614) 172,533
INCOME TAXES:
Current 2,550 900 21,250
Deferred 9,639 (31,720) 80,325
Total income taxes 12,189 (30,820) 101,575
NET INCOME (LOSS) Yen 8,515 Yen (47,794) $70,958
7.Notes to Non-Consolidated Financial Statements
(1)Basis of Presentation
The accompanying non-consolidated financial statements have been prepared from
the accounts maintained by Kajima Corporation (the 'Company') in accordance with
the provisions set forth in the Japanese Commercial Code (the 'Code') and in
conformity with accounting principles and practices generally accepted in Japan,
which are different in certain respects as to application and disclosure
requirements of International Financial Reporting Standards (IFRSs).
Differences between the accounting policies followed by the Company and IFRSs
are described in Note (3). The non-consolidated financial statements are not
intended to present the financial position and results of operations in
accordance with accounting principles and practices generally accepted in
countries and jurisdictions other than Japan.
In preparing the non-consolidated financial statements, certain
reclassifications and rearrangements have been made to the Company's financial
statements issued domestically in order to present them in a form which is more
familiar to readers outside Japan. In addition, certain reclassifications have
been made in 2002 non-consolidated financial statements to conform to the
classifications used in 2003. In accordance with accounting procedures
generally accepted in Japan, certain comparative disclosures are not required to
be and have not been presented herein.
The accounts of the Company are maintained in Japanese yen, the currency of the
country in which it is incorporated and principally operates. The U.S. dollar
amounts included herein are presented solely for the convenience of the reader.
Such dollar amounts have been translated from yen at the approximate exchange
rate in Tokyo on March 31, 2003 of Yen 120 = U.S.$1. The translations should
not be construed as representations that Japanese yen have been, could have
been, or could in the future be, converted into U.S. dollars at that or any
other rate.
(2)Summary of Significant Accounting Policies
(a)Non-consolidation
The non-consolidated financial statements do not include the accounts of
subsidiaries. Investments in subsidiaries and affiliates are stated at cost.
Such investments are written down to a reasonable value, if the investments have
been significantly impaired. Profits of these companies are reflected in the
Companyfs books only to the extent dividends are received.
(b)Cash Equivalents
Cash equivalents are short-term investments that are readily convertible into
cash and that are exposed to insignificant risk of changes in value. Cash
equivalents include time deposits and certificate of deposits, all of which
mature or become due within three months of the date of acquisition.
(c)Inventories
Inventories other than materials and supplies are stated at cost as determined
on a specific project basis. Related general and administrative expenses and
financial charges are excluded from such costs. Materials and supplies are
stated at cost determined by the moving-average method.
(d)Marketable Securities and Investments in Securities
The accounting standard for financial instruments requires all applicable
securities to be classified and accounted for, depending on management's intent,
as follows:
i)Trading securities, which are held for the purpose of earning capital gains in
near term, are reported at fair value and the related unrealized gains and
losses are included in the earnings;
ii)Held-to-maturity debt securities, which are expected to be held to maturity
with the positive intent and ability to hold to maturity, are reported at
amortized cost;
iii)Available-for-sale securities, which are not classified as either of the
aforementioned securities, are reported at fair value, with unrealized gains and
losses, net of applicable taxes, reported in a separate component of
stockholders' equity.
Under this standard, all securities held by the Company are classified as
available-for-sale securities. The cost of securities sold is determined based
on the moving-average method. Non-marketable available-for-sale securities are
stated at amortized cost or at cost determined by the moving-average method
according to the nature. For other than temporary declines in fair value,
available-for-sale securities are reduced to net realizable value by a charge to
income.
(e)Property and Equipment
Property and equipment are principally stated at cost. Depreciation has been
computed using the declining-balance method while the straight-line method is
applied to buildings acquired after April 1, 1998. The estimated useful lives
for buildings and structures range from 2 to 50 years and for machinery and
equipment range from 2 to 20 years.
(f)Allowance for Doubtful Accounts
Allowance for doubtful accounts is stated in amounts considered to be
appropriate based on the Companyfs past credit loss experience and an evaluation
of potential losses in the receivables and others outstanding.
(g)Retirement Benefits
Under the employees' retirement benefit plans, the Company has funded and
unfunded retirement benefit plans covering all employees.
The employees' retirement benefits are accounted for the liability for
retirement benefits based on projected benefit obligations and plan assets at
the balance sheet date in conformity with the accounting standard for the
employees' retirement benefits.
Retirement benefits to directors and corporate auditors are recorded to state
the liability at the amount which would be required if all directors and
corporate auditors retired at the balance sheet date as stipulated in the
retirement regulations.
(h)Allowances for Loss on Development Projects
The Company provides for foreseeable losses arising from certain real estate
projects.
(i)Allowances for Loss on Investments in Subsidiaries and Affiliates
The Company provides for losses arising from subsidiaries and affiliates, which
will be attributable to the Company.
(j)Recognition of Revenues and Related Costs
Individual construction projects, whose contract amounts are not less than Yen
100 million and the contract periods are beyond one year, are recorded using the
percentage-of-completion method without provision for remaining foreseeable
losses, while individual construction projects except the aforementioned are
recorded using the completed-construction method.
The revenues posted by way of the percentage-of-completion method for the years
ended March 31, 2003 and 2002 were Yen 709,983 million ($5,916,525 thousand) and
Yen 449,711 million, respectively.
(k)Costs of Research and Development and Debenture Issuance
All research and development costs and debenture issuance costs are charged to
income as incurred.
(l)Leases
All leases are accounted for as operating leases. Under the Japanese accounting
standards for leases, finance leases that deem to transfer ownership of the
leased property to the lessee are to be capitalized, while other finance leases
are permitted to be accounted for as operating lease transactions if certain 'gas
if capitalized' information is disclosed in the notes to the lessee's
non-consolidated financial statements. Accordingly, the Company will disclose
'Lease' related information in the annual report covering the financial years
ended March 31, 2003 and 2002.
(m)Income Taxes
The provision for income taxes is computed based on the pretax income included
in the non-consolidated statements of operations. The asset and liability
approach is used to recognize deferred tax assets and liabilities for the
expected future tax consequences of temporary differences between the carrying
amounts and the tax bases of assets and liabilities. Deferred income taxes are
measured by applying currently enacted tax laws to the temporary differences.
(n)Appropriations of Retained Earnings
Appropriations of retained earnings are reflected in the accompanying
non-consolidated financial statements for the following year upon stockholders'
approval.
(o)Foreign Currency Transactions
All short-term and long-term monetary receivables and payables denominated in
foreign currencies are translated into Japanese yen at the exchange rates at the
balance sheet date. The foreign exchange gains and losses from translation are
recognized in the non-consolidated statements of operations to the extent that
they are not hedged by forward exchange contracts or currency swaps.
(p)Derivatives and Hedging Activities
The Company uses derivative financial instruments to manage its exposures to
fluctuations in foreign exchange, interest rates and listed equity securities.
Foreign exchange forward contracts, currency swaps, interest rate swaps and
contracts for future delivery of the equity securities are utilized by the
Company to reduce the risks arising from the factors mentioned above. The
Company does not enter into derivatives for trading or speculative purposes.
Derivative financial instruments and foreign currency transactions are
classified and accounted for as follows:
i)All derivatives be recognized as either assets or liabilities and measured at
fair value, and gains or losses on derivative transactions are recognized in the
statements of operations, and
ii)For derivatives used for hedging purposes, if derivatives qualify for hedge
accounting because of high correlation and effectiveness between the hedging
instruments and the hedged items, gains or losses on derivatives are deferred
until maturity of the hedged transactions, however the contracts for future
delivery engaged in to hedge fluctuations in listed equity securities are
measured at fair value and the unrealized gains and losses are charged to
income.
The derivative instruments applied for forecasted or committed transactions are
also measured at the fair value but the unrealized gains/losses are deferred
until the underlying transactions are completed.
The monetary debts and credits denominated in foreign currencies, for which
foreign exchange forward contracts or currency swaps are used to hedge the
foreign currency fluctuations, are translated at the contracted rate if the
forward contracts or currency swaps qualify for hedge accounting.
The interest rate swaps, which qualify for hedge accounting and meet specific
matching criteria, are not remeasured at market value but the differential paid
or received under the swap agreements are charged to income.
(q)Per Share Information
The computation of net income (loss) per share is based upon the weighted
average number of shares of common stock outstanding during each year. The
weighted average number of common shares used in the computation for the years
ended March 31, 2003 and 2002 was 960,900,118 shares and 961,286,163 shares,
respectively.
Diluted net income per share is not disclosed because the Company has nothing
which might dilute the per share information for the year ended March 31, 2003
and because of the net loss for the year ended March 31, 2002, respectively.
(3)Differences between Japanese Accounting Principles and International
Financial Reporting Standards (IFRSs)
The accompanying non-consolidated financial statements are prepared in
conformity with accounting principles generally accepted in Japan. The main
differences between such accounting principles and IFRSs are as follows:
(a)Recognition of Revenues and Related Costs
IAS 11 requires revenues and related costs to be recognized by reference to the
stage of completion of contract activity where the outcome of a construction
contract can be estimated reliably. Also, it demands the provision for
foreseeable losses on contract backlog.
The Company's reporting policy in relation to the recognition of revenues and
related costs, which is in accordance with Japanese accounting principles, is
set out in Note (2)(j).
(b)Impairment Loss
IAS 36 requires impairment loss on assets including property and equipment to be
recognized whenever the recoverable amount is less than its carrying amount.
The Company's reporting policy in relation to property and equipment, which is
in accordance with Japanese accounting principles, is set out in Note (2)(e).
(4)Revaluation of Land
Under the 'Law of Land Revaluation', promulgated on March 31, 1998 and revised
on March 31, 1999 and 2001, the Company adopted a one-time revaluation of its
own-use land in Japan including land under trust estate to a value based on real
estate appraisal information as of March 31, 2002.
The resulting land revaluation excess represents unrealized appreciation of land
and is stated, net of income taxes, as a component of stockholders' equity.
There is no effect on the statements of operations. Continuous readjustment is
not permitted unless the land value subsequently declines significantly such
that the amount of the decline in value should be removed from the land
revaluation excess account and related deferred tax liabilities.
As of March 31, 2003, the carrying amount of the land after one-time revaluation
exceeded the market value by Yen 9,489 million ($ 79,075 thousand).
(5)Pledged Assets
As of March 31, 2003, the following assets of the Company were pledged.
Millions of Yen Thousands of
U.S. Dollars
Accounts receivable-trade Yen 366 $3,050
Land 45 375
Investments in and long-term loans to 2 16
subsidiaries and affiliates
Long-term loans receivable 6,110 50,917
Total Yen 6,523 $54,358
(6)Retirement Benefits
The Company has retirement benefit plans for employees, directors and corporate
auditors. The amount of the employeesf retirement benefits is, in general,
determined on the basis of length of service and current basic salary at the
time of termination of service. If the termination of service is involuntary,
an employee is entitled to greater payments than in the case of voluntary
termination. The allowance of retirement benefits for employees of the Company
is partially funded in the Kajima Pension Fund as the contributory pension plan,
the assets of which are administrated by the board of trustees composed of
management and employee representatives. The fund is established under the
Japanese Welfare Pension Insurance Law, which covers a substitutional portion of
the governmental pension program managed by the Company on behalf of the
government.
According to the enactment of the Defined Benefit Enterprise Pension Plan Law in
April 2002, the Company applied for an exemption from obligation to pay benefits
for future employee services related to the substitutional portion which would
result in the transfer of the pension obligations and related assets to the
government by another subsequent application. The Company obtained an approval
of exemption from future obligation from the Ministry of Health, Labor and
Welfare on November 15, 2002.
The Company did not apply the transitional measurement of the accounting
standard for employeesf retirement benefits, which permits the company to
recognize a gain on exemption from future pension obligation of the governmental
program for the year ended March 31, 2003. If the Company were to apply the
transitional measurement, the Company would have recognized a gain of
approximately Yen 11,866 million ($98,883 thousand) in the non-consolidated
statements of operations for the year ended March 31, 2003.
Liability for retirement benefits as of March 31, 2003 and 2002 includes
retirement benefits for directors and corporate auditors of Yen 4,382 million
($36,517 thousand) and Yen 4,310 million, respectively. The retirement benefits
for directors and corporate auditors are paid subject to the approval of
stockholders.
(7)Contingent Liabilities
As of March 31, 2003, contingent liabilities for loans guaranteed including
related items of similar nature amounted to Yen 187,564 million ($1,563,033
thousand).
(8)Research and Development Costs
Costs of research and development for the years ended March 31, 2003 and 2002
totaled Yen 11,179 million ($93,158 thousand) and Yen 11,166 million,
respectively.
(9)Income Taxes
The Company is subject to Japanese national and local income taxes which, in the
aggregate, resulted in a normal effective statutory tax rate of approximately
41.5% for the years ended March 31, 2003 and 2002.
The tax effects of significant temporary differences and loss carryforwards
which result in deferred tax assets and liabilities as of March 31, 2003 and
2002 were as follows:
Millions of Yen Thousands of
U.S. Dollars
2003 2002 2003
Deferred Tax Assets:
Inventories Yen 42,054 Yen 46,429 $350,450
Liability for retirement benefits 40,043 35,236 333,692
Valuation loss on securities 29,825 26,222 248,541
Allowance for doubtful accounts 25,500 31,195 212,500
Other 53,683 61,912 447,358
Total Deferred Tax Assets 191,105 200,994 1,592,541
Deferred Tax Liabilities:
Gain on securities contributed to (10,137) (10,137) (84,475)
employeesf retirement benefit trusts
Other (12,760) (31,039) (106,333)
Total Deferred Tax Liabilities (22,897) (41,176) (190,808)
Net Deferred Tax Assets Yen 168,208 Yen 159,818 $1,401,733
On March 31, 2003, a tax reform law was enacted and promulgated in Japan which
changed the normal effective statutory tax rate from approximately 41.5% to
40.8%, effective for the year beginning April 1, 2004.
The effects of this change in the non-consolidated balance sheets for the year
ended March 31, 2003 are as follows:
Deferred income taxes: Decrease by Yen 2,342 million ($19,517 thousand)
Deferred income taxes on revaluation of land: Decrease by Yen 177 million ($1,475 thousand)
Unrealized gain on available-for-sale securities: Increase by Yen 84 million ($700 thousand)
Revaluation surplus of land: Increase by Yen 177 million ($1,475 thousand)
Also, the effect on deferred income taxes in the non-consolidated statements of
operations for the year ended March 31, 2003 is Yen 2,426 million ($20,217
thousand).
The end of documents
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FR UNASRORRVAAR