RNS Number:3385S
Kajima Corporation
21 November 2003
IV.NON-CONSOLIDATED FINANCIAL STATEMENTS
(The First Half of the 107th Financial Year from April 1 to September 30, 2003)
1. Date of the Board of Directors' Meeting to Approve
the Interim Non-Consolidated Financial Statements: November 21, 2003
2. Financial Highlights:
First Half of Financial Years from April 1 to September 30
------------------------------------------------------------
------------
Millions of Yen Thousands of
U.S. Dollars
------------------------------------- --------------
2003 2002 2003
------------ ------------ --------------
Revenues Yen 548,069 Yen 618,821 $ 4,937,559
Operating Income 9,077 8,188 81,775
Net Income 1,786 1,213 16,090
Total Assets 1,578,712 1,723,528 14,222,631
Stockholders?f 202,010 196,121 1,819,910
Equity
Equity / Assets 12.8 11.4 12.8
Ratio (%)
Contract Awards 597,835 538,071 5,385,901
Contract Backlog 1,435,598 1,623,659 12,933,315
Yen U.S. Dollars
------------------------- -------------
Per Share:
Basic Net Income Yen 1.86 Yen 1.26 $ 0.02
Equity 210.35 204.07 1.90
3. 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 $ 10,810,811
Net Loss 15,000 135,135
Contract Awards 1,150,000 10,360,360
---------------- ------------
Yen U.S. Dollars
------------ ------------
Cash Dividends per Share
Total Annual Yen 5.00 $ 0.0450
Interim (Approved on November 21, 2003) 2.50 0.0225
Year-End 2.50 0.0225
4. KAJIMA CORPORATION
NON-CONSOLIDATED BALANCE SHEETS
As of September 30
--------------------------
--- ---------
Millions of Yen Thousands of
U.S. Dollars
------------------------------ ---------
2003 2002 2003
------------------------ --------- --- --------- --- ---------
ASSETS
------------------------ --------- --- --------- --- ---------
CURRENT ASSETS:
Cash and cash Yen 77,942 Yen 59,147 $ 702,180
equivalents
Marketable securities 120 784 1,081
Receivables:
Notes receivable-trade 19,070 18,254 171,802
Accounts 266,684 247,446 2,402,559
receivable-trade
Short-term loans to 826 9,953 7,441
subsidiaries and
affiliates
Allowance for doubtful (9,419) (9,258) (84,856)
accounts
Inventories:
Construction projects in 190,696 320,482 1,717,982
progress
Development projects in 95,589 82,396 861,162
progress
Real estate for sale 45,136 47,172 406,631
Materials and supplies 168 125 1,513
Deferred income taxes 64,164 72,506 578,054
Prepaid expenses and 162,026 183,809 1,459,694
other current assets --------- --------- ---------
Total current assets 913,002 1,032,816 8,225,243
--------- --------- ---------
PROPERTY AND EQUIPMENT:
Land 153,684 159,345 1,384,541
Buildings and 232,872 243,731 2,097,946
structures
Machinery and equipment 41,298 42,363 372,054
Construction in 1,118 2,606 10,072
progress --------- --------- ---------
Total 428,972 448,045 3,864,613
Accumulated (165,536) (166,975) (1,491,315)
depreciation --------- --------- ---------
Net property and 263,436 281,070 2,373,298
equipment --------- --------- ---------
INVESTMENTS AND OTHER
ASSETS:
Investments in 176,958 190,232 1,594,216
securities
Investments in and 115,047 113,425 1,036,460
long-term loans
to subsidiaries and
affiliates
Long-term loans 34,591 33,636 311,631
receivable
Allowance for doubtful (62,696) (64,362) (564,829)
accounts
Deferred income taxes 90,942 91,209 819,297
Other 47,432 45,502 427,315
--------- --------- ---------
Total investments and 402,274 409,642 3,624,090
other assets ----------- ----------- -----------
TOTAL Yen 1,578,712 Yen 1,723,528 $ 14,222,631
=========== =========== ===========
As of September 30
-------------------------------------------------
-------------
Millions of Yen Thousands of
U.S. Dollars
------------------------------- -------------
2003 2002 2003
------------------------ ----------- ------------ -------------
LIABILITIES AND
STOCKHOLDERS' EQUITY
------------------------ ----------- ------------ -------------
CURRENT LIABILITIES:
Short-term borrowings Yen 94,467 Yen 109,798 $ 851,054
Commercial paper 28,000 84,500 252,252
Current portion of 26,974 62,238 243,009
long-term debt
Payables:
Notes payable-trade 13,962 67,765 125,784
Accounts payable-trade 334,360 265,416 3,012,252
Advances received:
Construction projects in 194,325 325,983 1,750,676
progress
Development projects in
progress,
real estate and other 34,018 20,365 306,468
Income taxes payable 3,343 103 30,117
Accrued expenses 10,533 14,573 94,892
Employees' savings 23,918 25,323 215,478
deposits
Other current 176,470 168,363 1,589,820
liabilities --------- --------- ---------
Total current 940,370 1,144,427 8,471,802
liabilities --------- --------- ---------
LONG-TERM LIABILITIES:
Long-term debt 240,316 204,312 2,165,009
Deferred income taxes on 10,621 9,676 95,685
revaluation of land
Liability for retirement 86,689 83,296 780,982
benefits
Allowance for loss on 21,695 21,695 195,450
development projects
Allowance for loss on 20,742 21,798 186,865
investments
in subsidiaries and
affiliates
Other long-term 56,269 42,203 506,928
liabilities --------- --------- ---------
Total long-term 436,332 382,980 3,930,919
liabilities --------- --------- ---------
CONTINGENT LIABILITIES
(See Note (7))
STOCKHOLDERS' EQUITY:
Common stock, authorized,
1,920,000,000 shares;
shares,
issued 961,312,022 64,071 64,071 577,216
shares
Additional paid-in 32,147 32,147 289,613
capital
Retained earnings:
Legal reserve - 16,018 -
Unappropriated 64,932 46,265 584,973
Revaluation surplus of 15,490 13,640 139,550
land
Unrealized gain on 25,676 24,074 231,315
available-for-sale
securities
Treasury stock-at cost, (306) (94) (2,757)
983,497 shares in 2003
and 266,980 shares in
2002 --------- --------- ---------
Total stockholders' 202,010 196,121 1,819,910
equity --------- --------- ---------
TOTAL Yen 1,578,712 Yen 1,723,528 $ 14,222,631
========= ========= =========
5. KAJIMA CORPORATION
NON-CONSOLIDATED STATEMENTS OF INCOME
First Half of Financial Years from April 1 to September 30
-----------------------------------------------------------
-------------
Millions of Yen Thousands of
U.S. Dollars
------------------------------ -------------
2003 2002 2003
--------- --------- -------------
------------------------ --------- --- --------- --- -------------
REVENUES:
Construction projects Yen 504,605 Yen 562,803 $ 4,545,991
Real estate and other 43,464 56,018 391,568
--------- --------- ---------
Total revenues 548,069 618,821 4,937,559
COST OF REVENUES:
Construction projects 467,241 524,722 4,209,379
Real estate and other 37,559 48,957 338,369
--------- --------- ---------
Total cost of revenues 504,800 573,679 4,547,748
--------- --------- ---------
Gross profit 43,269 45,142 389,811
--------- --------- ---------
SELLING, GENERAL 34,192 36,954 308,036
AND ADMINISTRATIVE
EXPENSES: --------- --------- ---------
Operating income 9,077 8,188 81,775
--------- --------- ---------
OTHER INCOME (EXPENSES):
Interest and dividends 1,929 2,671 17,378
Interest expense (3,429) (3,663) (30,892)
Valuation loss on (270) (1,888) (2,433)
marketable
and investment
securities
Gain on sales of 1,420 1,884 12,793
marketable
and investment
securities-net
Provision for doubtful (2,216) (2,104) (19,964)
accounts
Other-net (1,037) (1,915) (9,342)
--------- --------- ---------
Other expenses-net (3,603) (5,015) (32,460)
--------- --------- ---------
INCOME BEFORE INCOME 5,474 3,173 49,315
TAXES: --------- --------- ---------
INCOME TAXES:
Current 2,520 450 22,703
Deferred 1,168 1,510 10,522
--------- --------- ---------
Total income taxes 3,688 1,960 33,225
--------- --------- ---------
NET INCOME Yen 1,786 Yen 1,213 $ 16,090
========= ========= =========
6. 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 non-consolidated financial position and the non-consolidated 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?fs financial
statements issued domestically in order to present them in a form which is more
familiar to readers outside Japan. In addition, certain reclassifications and
rearrangements have been made in the 2002 non-consolidated financial statements
to conform to classifications and presentations 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 September 30, 2003 of Yen 111 = 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
Company's 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
Marketable securities and investments in securities are 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.
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 Company's 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 at semiannual closing accounts are accounted
for the estimated liability for retirement benefits based on projected benefit
obligations and plan assets at the financial year end 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) Allowance for Loss on Development Projects
The Company provides for foreseeable losses arising from certain real estate
projects.
(i) Allowance 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 first
half of financial years from April 1 to September 30, 2003 and 2002 were
Y302,210 million ($2,722,613 thousand) and Y322,358 million, respectively.
(k) Costs of Research and Development
All research and development 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.
(m) Income Taxes
The provision for income taxes is computed based on the pretax income included
in the non-consolidated statements of income. Effective from April 1, 2003, the
Company adopted a consolidated taxation system. 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 income 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
Basic net income per share is computed by dividing net income available to
common stockholders by the weighted-average number of common shares outstanding
for the period. The weighted average number of common shares used in the
computation for the first half of financial years from April 1 to September 30,
2003 and 2002 was 960,383,863 shares and 961,152,348 shares, respectively.
Diluted net income per share is not disclosed because the Company has nothing
which might dilute the per share information for the first half of financial
years from April 1 to September 30, 2003 and 2002.
(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", 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 income. 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.
(5) Pledged Assets
As of September 30, 2003, the following assets of the Company were pledged.
--------- ---------
Millions of Yen Thousands of
U.S. Dollars
--------- ---------
Accounts receivable-trade Yen 365 $3,288
Land 62 559
Investments in and long-term loans to 2 18
subsidiaries and affiliates
Long-term loans receivable 6,110 55,045
Other (Investments and other assets) 155 1,396
--------- ---------
Total Yen 6,694 $60,306
========= =========
(6) Retirement Benefits
The Company has retirement benefit plans for employees, directors and corporate
auditors. The amount of the employees' 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.
Liability for retirement benefits as of September 30, 2003 and 2002 includes
retirement benefits for directors and corporate auditors of Yen 4,150 million
($37,387 thousand) and Yen 4,174 million, respectively. The retirement benefits
for directors and corporate auditors are paid subject to the approval of
stockholders.
(7) Contingent Liabilities
As of September 30, 2003, contingent liabilities for loans guaranteed including
related items of similar nature amounted to Yen 153,012 million ($1,378,486
thousand).
(8) Subsequent Event
The Board of Directors of the Company, at its meeting held on October 15, 2003,
resolved that the Company issue new shares by public offering pursuant to the
following terms. As of November 1, 2003, the number of issued and outstanding
shares increased to 1,057,312,022 shares and the amount of common stock
increased to Yen 81,447 million ($733,756 thousand) as a result of the capital
increase by public offering.
Number of shares issued: 96,000,000 shares of common stock
Method of offering: Public offering
Offer price for the public Yen 377.00 per share ($ 3.40 per share)
offering:
Aggregate amount of the Yen 36,192 million ($326,054 thousand)
offer price for the public
offering:
Issue price: Yen 361.60 per share ($3.26 per share)
Aggregate amount of the Yen 34,713.6 million ($312,735 thousand)
issue price:
Amount of the issue price Yen 17,376 million ($156,541 thousand)
capitalized:
Dividend accruing date: October 1, 2003
Use of proceeds from the The entire amount of the net proceeds will be used
share offering: for investment in stand-alone projects including
development projects and PFI projects.
No underwriting commission was paid to underwriters. The disparity between the
aggregate amount of the offer price for the public offering and the aggregate
amount of the issue price paid by the underwriters to the Company was for the
account of the underwriters.
The end of documents
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