|To all the members|
|Loss on Reevaluation of Subsidiaries and Revision of Interim Results Forecast|
|Recently Daiwabo Information System Co., Ltd., accounted for loss on reevaluation of its subsidiary DIS System Trading Co., Ltd., (of which it holds 83.9% of the stock) as an extraordinary loss. As a result, the interim results for the fiscal year ending in March of 2004 (April 1, 2003 to September 30, 2003) forecasted in the settlement statement published on May 15, 2003, have been revised as indicated below.|
|1.Details Regarding Loss on Reevaluation of Subsidiary|
|DIS System Trading Co., Ltd., is a subsidiary of Daiwabo Information System Co., Ltd., conducting system development. Although DIS System Trading has made efforts to improve its profits, it has recorded cumulative losses for the past fiscal year and in the current business environment it will have difficulty recovering short term net assets value. Therefore, we have decided to record a loss on reevaluation of subsidiaries.|
|2.Revision of Interim Results Forecast for Fiscal Year Ending March 2004 (April 1, 2003 to September 30, 2003)|
|(Values indicated in millions of yen or %)|
|Reason for Revision|
|The demand for computers in Japan increased compared
to the previous year in terms of quantity but decreased
in terms of monetary value due to large decreases
in sales price. We were able to secure increased
income over the previous year by supplementing the
reduced sales volume of computer main units by concentrating
aggressively on sales of items other than computer
main units. However, our gross profit rate decreased
due to vigorous competition from other companies
in the field. By recording the aforementioned loss
on reevaluation of subsidiaries as an extraordinary
loss, it is expected that the numbers shown above
will be achieved.
The revision of the consolidated results forecast was executed because the revision of the non-consolidated results forecast and the system integration business conducted by DIS System Trading did not reach the planned results. Since the loss on reevaluation of subsidiaries is eliminated from the consolidated balance sheet, it will not affect the consolidated results.
Forecasts for the non-consolidated and consolidated yearend results will be published in the midyear balance statement.
Dividends are scheduled to be disbursed as previously announced (10 yen at midyear and 10 yen at yearend (total 20 yen)).
Direct inquiries to
Osamu Koyama, Finance Department
|Oct. 29, 2003|