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THK Co Ltd (47WH)

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Thursday 27 November, 2003

THK Co Ltd

Interim Results

THK Company Limited
27 November 2003


FY2003 Interim Consolidated Results                           November 19, 2003

(Six months ended September 30,2003)



This is summarized and translated financial information that the Company posted to the Tokyo Stock Exchange in 
accordance with their rules that governs the disclosure of financial information.

The Company maintains an internet website at www.thk.co.jp. The Company makes available free of charge on the website 
its financial information in Japanese language. Those information translated in English language will be disclosed as 
soon as reasonably practicable after disclosing materials in Japanese language.



Company Name: THK Co., Ltd. (TSE:6481)                      URL: http://www.thk.co.jp/

Head Office: Tokyo, Japan (Tel:+81-03-5434-0300)

President and CEO: Akihiro Teramachi

Director/General Manager of Corporate Strategy Department: Kotaro Yoshihara

Date of the board meeting: November 19,2003

Adoption of U.S. GAAP : No



Consolidated Financial Highlights (Unaudited)

                                      (Millions of yen, except earnings per share date)
                                                         Six months ended September 30            Fiscal 2002,
                                                                                                     ended
                                                         2002                    2003
                                                                                                 March 31, 2003
                                                      Yen      Changes       Yen        Changes         Yen
Net sales                                            45,308    (11.8)%       55,924       23.4%           94,599
Operating income                                      1,754    (55.2)%        6,447      267.5%            4,893
Ordinary income                                       1,508    (63.5)%        6,088      303.6%            4,827
Net income                                              253    (86.3)%        2,977    1,074.3%            1,891

Total assets                                        181,289                 177,956                      193,197
Total shareholders' equity                          101,210                 105,299                      102,478


Total shareholders' equity/total assets               55.8%                   59.2%                        53.0%

Earnings per share (yen)
 Net income-basic                                      2.13                   25.19                        15.65
 Net income-diluted                                       -                   21.98                        15.12
 Shareholders' equity                                850.60                  892.26                       860.80

Net cash provided by operating activities             9,679                   5,995                       16,012
Net cash provided by (used in) investing            (1,941)                 (2,651)                      (3,909)
activities
Net cash provided by (used in) financing            (2,335)                (25,911)                        5,423
activities
Cash and cash equivalents at the end of the          60,191                  50,129                       72,533
period



Notes to the Financial Information:

1.       Change of accounting policy: None

2.       Equity in earnings of affiliates:

FY2003 first half: 40 million yen, FY2002 first half: (56) million yen, FY2002: (12) million yen

3.       Net average number of shares issued and outstanding during the term (consolidated)

FY2003 first half: 118,223,451 shares, FY2002 first half: 118,987,560 shares, FY2002: 118,990,147shares

4.       Regarding net sales, operating income, ordinary income and net income, percent indications show percentage 
changes from the same period of the previous year.

5.       Net number of shares issued and outstanding at the end of the fiscal year (consolidated)

FY2003 first half: 118,013,568 shares, FY2002 first half: 118,986,110 shares, FY2002: 119,015,253 shares.




6.       Scope of consolidation and equity method

The number of consolidated subsidiaries: 14

The number of unconsolidated subsidiaries accounted for by equity method: 0

The number of affiliates accounted for by equity method: 2

7.       Changes in scope of consolidation and equity method of accounting

The number of newly consolidated subsidiaries: 1

The number of consolidated subsidiaries excluded from consolidation: 0

The number of affiliates newly accounted for by equity method: 1

The number of affiliates excluded from the equity method of accounting: 0

8.       The Financial statements are unaudited.







Projections of Consolidated Results for the Fiscal Year ending March 31, 2004



                                                   (Millions of yen, except earnings per share date)

                                              Year ending March 31, 2004
Net sales                                                                   116,000
Operating income                                                             14,400
Ordinary income                                                              13,700
Net income                                                                    7,100
Net income per share (yen)                                                    59.85



*Forward-Looking Statements:

This release contains forward-looking statements that are based on management's estimates, assumptions and projections 
at the time of release. Some factors, which include, but are not limited to, the risks and uncertainty associated with 
the worldwide economy, competitive activity and currency fluctuation, could cause actual results to differ materially 
from expectations.







                                             Interim Consolidated Balance Sheets

                                    As of September 30, 2003 and 2002, and March 31, 2003



(Unit / Millions of yen, %)
                                                September 30,         September 30,                March 31,

                                                2002                  2003                           2003
Assets
Current assets:
Cash on hand and in banks                             54,414                50,082                66,459
Notes and accounts receivable-trade                   31,261                40,389                35,063
Short-term investment in securities                    6,844                    77                 7,003
Inventories                                           25,029                23,415                23,747
Deferred tax assets                                    1,936                 2,578                 2,248
Short-term loans                                         234                   205                   260
Other                                                  1,781                 1,734                 1,213
Less: Allowance for doubtful accounts                  (440)                 (362)                 (383)
Total current assets                                 121,063     66.8      118,119      66.4     135,613      70.2
Fixed assets:
Tangible fixed assets:                                43,185     23.8       43,113      24.2      42,390      21.9
Buildings and structures                              14,546                15,388                14,152
Machinery, equipment and vehicles                     16,265                14,660                15,292
Land                                                  10,240                10,218                10,258
Construction in process                                  688                 1,350                 1,303
Other                                                  1,444                 1,496                 1,384
Intangible fixed assets                                2,217      1.2        1,715       1.0       1,925       1.0
Investments and others:                               14,814      8.2       15,008       8.4      13,266       6.9
Investment in securities                               9,682                 8,379                 8,511
Deferred tax assets                                    2,379                 1,666                 2,134
Other                                                  3,420                 5,402                 3,097
Less: Allowance for doubtful accounts                  (667)                 (440)                 (476)
Total fixed assets                                    60,217       33.2     59,837       33.6      57,583      29.8
Deferred assets:
Bond discounts and premiums                                8                     -                     0
Total deferred assets                                      8       0.0           -          0.0        0        0.0
Total assets                                         181,289      100.0    177,956        100.0  193,197      100.0



                                             Interim Consolidated Balance Sheets

                                    As of September 30, 2003 and 2002, and March 31, 2003


                                                                      (Unit / Millions of yen, %)


                                                September 30,         September 30,                March 31,

                                                2002                  2003                           2003
Liabilities
Current liabilities:
Notes and Accounts payable-trade                16,011                20,206                 16,960
Short-term debt                                 7,694                     99                  3,305
Current portion of long-term debt               2,870                    243                  2,406
Current portion of bonds                       11,000                      -                  3,443
Current portion of convertible bonds           13,905                      -                 13,905
Corporate income taxes payable and other          839                 3,074                   1,668
Accrued bonus                                   1,147                 1,298                   1,243
Other                                           5,034                 6,251                   5,216
Total current liabilities                      58,502       32.3     31,174        17.5      48,149      24.9
Long-term liabilities:
Bonds                                          15,441                15,000                  15,000
Bonds with stock acquisition rights                 -                23,000                  23,000
Long-term debt                                  2,911                     -                   1,192
Allowance for retirement and                    1,408                 1,507                   1,483

severance benefits
Allowance for directors' and auditors'          1,163                 1,254                  1,193

retirement benefits
Other                                             317                   395                   389
Total long-term liabilities                    21,242     11.7       41,158      23.1      42,259      21.9
 Total liabilities                             79,745     44.0       72,333      40.6      90,409      46.8
 Minority interest                                333      0.2          324       0.2         309       0.2
Shareholders' equity
Common stock                                   23,106     12.7       23,106      12.9      23,106      12.0
Capital surplus                                30,962     17.0       30,962      17.4      30,962      16.0
Earned surplus                                 47,943     26.4       51,118      28.7      48,686      25.2
Unrealized gains/losses on other securities      (121)    (0.0)          333      0.2       (355)     (0.2)
Foreign currency translation adjustments         (111)    (0.0)        1,550      0.9         481       0.2
Treasury stock                                  (568)     (0.3)       (1,771)    (0.9)       (403)     (0.2)
Total shareholders' equity                      101,210   55.8        105,299    59.2     102,478      53.0
Total liabilities, minority interest &          181,289  100.0        177,956   100.0     193,197     100.0
shareholders'

equity




                                          Interim Consolidated Statements of Income

                        For Six Months to September 30, 2003 and 2002, and Years Ended March 31, 2003



(Unit/ Millions of yen, %)
                                               September 30,         September 30,             March 31,
                                               2002                  2003                    2003

Net sales                                      45,308       100.0    55,924       100.0    94,599        100.0
Cost of sales                                  31,814       70.2     37,443       67.0     66,646         70.5
Gross profit                                   13,493       29.8     18,481       33.0     27,953         29.5
Selling, general and administrative expenses   11,739       25.9     12,033       21.5     23,060         24.3
Operating income                               1,754        3.9      6,447        11.5     4,893           5.2


Non-operating income                           520          1.1      424          0.7      1,226           1.3
Interest income                                64                    61                             169
Dividend income                                34                    14                              49
Foreign exchange gain                           -                     -                             351
Equity earnings of unconsolidated subsidiaries  -                    40                               -
and affiliates
Rental income                                  72                    78                             148
Other                                          349                   229                            507
Non-operating expenses                         766          1.7      783          1.4             1,291      1.4
Interest expenses                              474                   283                            888
Bond expense                                   -                       -                             95
Foreign exchange loss                          45                    294                              -
Equity fluctuation loss                        56                    -                               12
Other                                          190                   206                            295
Ordinary income                                1,508        3.3      6,088        10.8     4,827        5.1
Extraordinary profit                           6            0.0      45           0.1                56      0.0
Gain on sales of property and equipment        6                     4                               56
Gain on sales of investment in securities      -                     35                               -
Reversal of allowance for doubtful accounts    -                      5                               -
Extraordinary loss                             97           0.2      254          0.4             1,287      1.3
Loss on sales/disposal of property and         13                    137                            459
equipment
Loss on write-down of investment in securities 83                    99                             510
Equity in losses of affiliated companies       -                      -                             318
Other                                          -                     17                               -
Income before income taxes and minority        1,417        3.1      5,879        10.5            3,596      3.8
interest
Income taxes-current                           674                   3,132                        1,179
Adjustment of corporate income taxes and other 520                   (244)                          593
Minority interests in income(loss) of          (30)        (0.0)       14         0.0              (68)     (0.0)
consolidated subsidiaries
Net income                                     253          0.5      2,977        5.3             1,891      2.0




                                     Interim Consolidated Statements of Retained Earnings

                         For Six Months to September 30, 2003 and 2002, and Year Ended March 31, 2003


(Unit/ Millions of yen)
                                                             September 30,     September 30,       March 31,

                                                                 2002              2003              2003
Capital surplus :
Balance at beginning of period                                        30,962            30,962            30,962
Balance at end of the interim period (end of period)                  30,962            30,962            30,962
Retained earnings :
Balance at beginning of period                                        48,585            48,686            48,585
Increase in retained earnings                                            253             3,356             1,891
Net income                                                               253             2,977             1,891
Increase due to recognition of goodwill amortization                       -               378                 -
arising on applying equity method to an investment in
affiliate
Decrease in retained earnings                                            895               925             1,790
Cash dividends paid                                                      895               895             1,790
Bonuses paid to directors and corporate auditors                           -                30                 -
Balance at end of interim period (end of period)                      47,943            51,118            48,686


                                        Interim Consolidated Statements of Cash Flows

                         For Six Months to September 30, 2003 and 2002, and Year Ended March 31, 2003



(Unit/ Millions of yen)
                                                               September 30,    September 30,        March 31,

                                                               2002             2003                   2003
1.Cash Flows from operating activities:
Income before income taxes and minority interests              1,417            5,879             3,596
Depreciation and amortization expenses                         2,997            2,646             6,163
Loss on sales or disposals of property,plant assets and        7                132               402

equipment,net
(Increase)/Decrease in allowance for doubtful accounts         (331)            66                (390)
Interest and dividend income                                   (98)             (75)              (218)
Interest expenses                                              474              283               888
Foreign exchange gain (loss)                                   (55)             21                (140)
Equity earnings of unconsolidated subsidiaries and affiliates  56               (40)              12
(Increase)/Decrease in accounts and notes receivables          (6,596)          (5,058)           (10,253)
(Increase)/Decrease in inventories                             886              710               2,502
Increase/(Decrease) in accounts and notes payable              5,530            2,920             5,220
Other                                                          478              455               3,388
Subtotal                                                       4,766            7,942             11,170
Interest income and dividend income received                   113              118               220
Interest expenses paid                                         (459)            (337)             (902)
Income taxes paid                                              5,258            (1,727)           5,524
Net cash provided by operating activities                      9,679            5,995             16,012
2.Cash Flows from investing activities:
Increase in time deposits due over three months                328              -                 468
Payments for purchases of short-term investments in securities (1,199)          -                (1,199)
Proceeds from sales of short-term investments in securities    1,301            919               1,328
Payments for purchases of property, plants and equipment       (2,578)          (2,500)           (4,759)
Proceeds from sales of property, plants and equipment          160              61                148
Payments for purchases of investment in securities             (4)              (293)             (9)
Proceeds from sales of investment in securities                5                244               103
Increase in short-term loans                                   -               (1,180)           (335)
Collection of short-term loans receivable                      45               98                345
Net cash provided by (used in) investing activities            (1,941)          (2,651)           (3,909)
3.Cash Flows from financing activities:
Increase/(Decrease) in short-term debt                         1,169            (3,210)           (2,887)
Repayment of long-term debt                                    (2,603)          (3,354)           (4,786)
Proceeds from issuance of bonds                                -                     -         22,904
Redemption of bonds                                            -               (17,344)          (8,000)


Cash dividends paid                                            (895)            (895)             (1,790)
Other                                                          (6)              (1,106)           (17)
Net cash provided by (used in) financing activities            (2,335)          (25,911)          5,423
4.Effect of exchange-rate change on cash and cash equivalents  (218)            162               0
5.Net increase in cash and cash equivalents                    5,184            (22,404)          17,526
6.Cash and cash equivalents at the beginning of the period     55,007           72,533            55,007
7.Cash and cash equivalents at the end of the period           60,191           50,129            72,533






                                         Basis for Consolidated Financial Statements



1.      Scope of Consolidation

(1)    The consolidated subsidiaries:  14

Talk System Co., Ltd., Beldex Corporation, THK Yasuda Co., Ltd., THK Holdings of America, L.L.C., THK America, Inc., THK
Manufacturing of America, Inc., THK Neturen America, L.L.C., THK Europe B.V., THK GmbH, THK Manufacturing of Europe 
S.A.S.,
THK FRANCE S.A.S., PGM Ballscrews Ltd., PGM Ballscrews Ireland Ltd., and THK TAIWAN CO., LTD.(THK and these consolidated
subsidiaries as the 'Companies')

Note: THK FRANCE S.A.S. has been consolidated with the Companies since this interim

reporting period ended September 30, 2003.

(2)     The main non-consolidated subsidiary: Nihon Slide Kogyo Co., Ltd.

(3)     The reason excluding from consolidation:

    The non-consolidated subsidiaries are small in size, meaning that these accounts have not been consolidated with the
Company since the consolidated assets, net sales, net income / loss ( amount reflecting equity ) and retained earnings (
amount reflecting equity ) of these companies, in the aggregate, are not significant in relation to those of the 
Companies.



2.      Scope of Equity Method

(1)     The affiliates applied by the equity method:  2

        Daito Seiki Co., Ltd.,

 SAMICK LMS CO., LTD.

The investment in SAMICK LMS CO.,LTD. has been accounted for under the equity method effective this interim reporting 
period ended September 30, 2003.

(2)    The major investments in non-consolidated subsidiaries and affiliates excluded from applying the equity method

       The major non-consolidated subsidiary:  Nihon Slide Kogyo Co., Ltd.

(3)    The reason excluding from the equity method

The accounts of the company listed above and remaining affiliates and subsidiaries are not accounted for equity method 
in the consolidated financial statements since the accounts of these companies do not have material effects in the 
consolidated financial statements.






3.      Information about the balance sheet date of consolidated subsidiaries

The balance sheet date for the following subsidiaries is as of June 30,2003.

THK Holdings of America, L.L.C., THK America, Inc.,

THK Manufacturing of America, Inc., THK Neturen America, L.L.C.,

THK Europe B.V., THK GmbH, THK Manufacturing of Europe S.A.S.,

THK FRANCE S.A.S., PGM Ballscrews Ltd., PGM Ballscrews Ireland Ltd.

and THK TAIWAN CO., LTD.

All significant inter-company transactions, account balances and others conducted between the balance sheet dates 
June30, 2003 and September 30, 2003, have been properly eliminated and adjusted in order to prepare consolidated 
financial statements.



4.    Summary of Significant Accounting Policies

(1)   Evaluation of significant assets

1. Investment in securities

      Other securities with market prices available:

Other securities, for which market prices are available, are stated at fair value.Net unrealized gains/losses on these
securities are reported as a separate item in the shareholders' equity. Cost of securities is computed using the moving
average.

       Other securities with market prices unavailable:

Other securities, for which market prices are unavailable, are stated at cost

by using the moving average.



2. Inventories
            Company Name               Evaluation of inventories           Stated at
THK Co.,Ltd.                          Weighted average cost       Cost basis
Talk System Co., Ltd.                 Weighted average cost       Cost basis
Beldex Corporation                    Actual cost                 Cost basis
THK Yasuda Co., Ltd.                  Weighted average cost       Cost basis
THK America, Inc.                     First-in first-out          Lower of cost or market
THK Manufacturing of America, Inc.    First-in first-out          Lower of cost or market
THK Neturen America L.L.C.            First-in first-out          Lower of cost or market
THK Europe B.V.                       Moving average              Lower of cost or market
THK Manufacturing of Europe S.A.S.    Weighted average cost       Cost basis
THK FRANCE S.A.S.                     Moving average              Lower of cost or market
THK GmbH                              Moving average              Lower of cost or market
PGM Ballscrews Ltd.                   First-in first-out          Lower of cost or market
PGM Ballscrews Ireland Ltd.           First-in first-out          Lower of cost or market
THK TAIWAN CO., LTD                   Moving average              Lower of cost or market






(2)   Depreciation and amortization of significant assets

1. Tangible fixed assets

For the Company and its domestic subsidiaries in the scope of consolidation, depreciation is computed using the
declining-balance method at the rate based on the estimated useful lives of assets. For its overseas subsidiaries,
depreciation is computed using the straight-line and accelerated methods in accordance with their local accounting 
standards
and regulations.

The Company and its domestic subsidiaries utilize the straight-line method to compute depreciation for buildings, 
excluding
fixtures to buildings, acquired on and after April 1,1998.

The useful lives of major properties are as follows:

        Buildings and structures               5-50 years

        Machinery, equipment and vehicles      4-10 years

2. Intangible fixed assets

The amortization of intangible assets is computed using the straight-line method.

Software costs for internal use are amortized over their estimated useful lives, less than 5 years, on a straight-line 
basis.
For its overseas subsidiaries, depreciation is computed with respective accounting standards and regulations.



(3)  Deferred charges

Bond discounts and premiums are amortized over the outstanding period using straight-line method.

(4)  Leases

Leases that transfer substantially all the risks and rewards of ownership of the assets are accounted for as capital 
leases
except that the leases that do not transfer ownership of assets at the end of term are accounted for operating leases.




(5)  Basis for recognizing significant allowances

1.  Allowance for doubtful accounts:

The Company and its domestic subsidiaries recognize allowance for doubtful accounts for general accounts and notes
receivables, in amounts considered to be appropriate, based primarily upon the Companies' past credit losses in each
receivable outstanding. For receivables which are deemed to be uncollectible with a high possibility, estimated amount 
will be
recognized after considering the collectivity of receivables respectively.

2.  Accrual for bonus:

The Company recognized an allowance (accrual) for bonus payment for employees. For the interim period, the company 
recognizes the potion that is allocated to reporting period upon the estimates provided by the Company.

3.  Allowance for retirement and severance benefits:

The Company (and certain overseas subsidiaries) recognize an allowance for employees retirement benefits, the portion 
that is allocated to this interim reporting period based upon the projected future benefit obligations and fair value of
pension assets as at the end of this interim reporting period. The unrecognized actuarial differences are amortized 
using straight-line method over the period of 10 years from the next year in which they arise.

4.  Allowance for directors' and auditors' retirement benefits:

The Company record a allowance for directors' and statutory auditors' retirement benefits equivalent to the liability 
the Company would have to pay (if all eligible directors and statutory auditors resigned at the end of the interim 
reporting period) in accordance with internal rules that governs the operation of this retirement benefits plans.




(6)   Hedge accounting

1.  Method of hedge accounting:

Fair value presentation for interest-rate-swap needed at the end of this interim period has been omitted since the swap
agreements qualitied the condition for hedge accounting in accordance with the related Japanese accounting standards.

Currency-swap transactions qualified the conditions for hedge accounting, and

those are treated as assignment treatment.

2.  Means of hedging and hedged items

Interest-rate-swap: hedging interest fluctuating on borrowing.

Currency swap: Money claims denominated in foreign currency.

3.  Policy for hedge transactions:

The company utilizes these instruments in order to reduce interest rate and foreign exchange rate risks.

4.  Method of evaluating hedge effectiveness:

In terms of interest, the evaluation of hedge effectiveness is omitted, since hedge

accounting applies only to those interest-rate-swaps agreements that meet the conditions for exceptional treatment.

In terms of currency, the evaluation of hedge effectiveness is omitted, since hedge

accounting applies only to those currency-swaps that are the same in significant conditions regarding the transaction 
and the assets covered by hedge, and assume in advance to offset market price fluctuations and cash-flow changes during 
hedge
transactions.



(7)   Other significant items

The consumption tax withheld upon sales and paid upon purchase of goods or services are not included in either of net 
sales, expenses or costs.





5.      Scope of Funds on Statements of Interim Consolidated Cash Flows

Cash and cash equivalents in the consolidated cash flow statements are composed of cash on hand, bank deposits that can 
be with drawn on demand and short-term investments with original maturity of three months or less and which represent a 
minor risk of fluctuations in value.




                                                            Notes


   (Consolidated Balance Sheets)                                                          (Millions of yen)

                                                                             FY2002           FY2003           FY2002
                                                                            interim          interim
   1.Depreciation and amortization of                                         63,678           66,136           64,012

   Tangible fixed assets
   2.Discounts on notes receivable                                                13                 -               -
   3.Liabilities for guarantee                                                   375              300              302



(Consolidated Statements of Cash Flows)

1.       The connection between cash and cash equivalents at end of the period and accounts of
              consolidated balance sheets
                                                                                        (Millions of yen)

                                                           FY 2002                FY2003              FY2002
                                                           interim               interim

                    Cash on hand and in banks             54,414                   50,082             66,459
                    Short-term investments in              6,844                      77               7,003
                    securities
                    Total                                 61,259                  50,159              73,463
                    Time deposits (due over                (168)                     (30)                (30)
                    three months)
                    Short-term investments in              (899)                       -                (899)
                    securities, except MMF
                    Cash and cash equivalents             60,191                     50,129            72,533




(Lease Transactions)

1.   Finance lease transaction that do not transfer ownership of the leased property to the lessee

on an 'as if capitalized' basis is as follows:

(1)   Acquisition costs, accumulated depreciation and net leased property at interim of period ( fiscal year )

(Millions of yen)
                                                     FY 2002                 FY2003                 FY2002

                                                     interim                interim
                                                  Machinery and          Machinery and          Machinery and

                                                    equipment              equipment              equipment
            Acquisition costs                           62                               54                     54
            Accumulated depreciation                    45                               46                     42
            Net leased property                         16                                7                     11
                                                      Other                  Other                  Other

                                                (Tangible assets)      (Tangible assets)      (Tangible assets)
            Acquisition costs                                  3,016                  2,936                  2,901
            Accumulated depreciation                           1,614                  1,159                    932
            Net leased property                                1,402                  1,776                  1,969
                                                    Intangible             Intangible             Intangible

                                                    fix assets             Fix assets             fix assets
            Acquisition costs                                     71                     71                     71
            Accumulated amortization                              26                     40                     33
            Net leased property                                   45                     30                     38
                                                      Total                  Total                  Total
            Acquisition costs                                  3,150                  3,062                  3,027
            Accumulated depreciation                           1,686                  1,246                  1,009
            Net leased property                                1,463                  1,815                  2,018

Note: The amounts of acquisition cost are computed by interest payment method since the balance of future

minimum lease payment is small portion of tangible fixed assets .



(2)   Future minimum lease payments under finance leases

(Millions of yen)
                                                      FY 2002               FY2003                FY2002

                                                      interim               interim
             Due within one year                                 586                   605                   607
             Due after one year                                  876                 1,210                 1,411
             Total                                             1,463                 1,815                 2,018

Note: The amounts equivalent to future minimum lease payments under finance leases are computed by interest

payment method since the balance of future minimum lease payment is small portion of tangible fixed assets.




(3)   Lease payments and implied depreciation

(Millions of yen)
                                                               FY 2002           FY2003                FY2002
                                                               Interim          interim
             Lease payments                                      341              310                   666
             Depreciation                                        341              310                   666



(4)   Depreciation

Depreciation is computed by using straight-line method.



2.Transactions of operating leases

Future minimum lease payments under operating leases


(Millions of yen)
                                                      FY 2002               FY2003                FY2002
                                                      interim               interim
             Due within one year                         580                   759                   710
             Due after one year                        1,915                 1,756                 1,839
             Total                                     2,495                 2,516                 2,549




(Segmented Information)

(1)  Segmented Information by Operating Segments

      As the net sales and operating income of the machinery parts segment are over 90% of total sales and total 
operating
income of the Companies, general information about its operating segments information is not required to be disclosed.



(2)  Segmented Information by Geographical Areas

Net sales, operating expenses, and operating income of the Companies for the six months ended September 30, 2002 and 
September
30, 2003 were summarized as follows:


Six months ended September 30, 2002                                                 Six months ended September 30, 2002

                          Japan  Americas Europe     Asia        Total         Elimination            Consolidated
                                                  and other
 Net sales:
Customers                33,805    5,176  5,490           835     45,308              -                  45,308
Inter-segment             5,476       98     29              -      5,604               (5,604)               -
Total                    39,281    5,275  5,520           835     50,912                (5,604)          45,308
Operating expenses       36,543    5,906  6,323           801     49,575                (6,021)          43,554
Operating income/(loss)   2,737    (630)  (803)            33      1,337                    417           1,754

Six months ended September 30, 2003                                                                   (Millions of yen)
                              Japan     Americas    Europe      Asia       Total     Elimination   Consolidated

                                                              and other
 Net sales:
Customers                       43,107      5,021      6,632       1,163     55,924            -         55,924
Inter-segment                    5,976         31         63           -      6,071       (6,071)             -
Total                           49,084      5,052      6,695       1,163     61,996       (6,071)         55,924
Operating expenses              42,124      5,129      7,081       1,128     55,463       (5,986)         49,476
Operating income/(loss)          6,959       (76)      (385)          34      6,532          (85)          6,447

Year ended March 31, 2003                                                                             (Millions of yen)
                   Japan  Americas Europe       Asia         Total          Elimination             Consolidated

                                              and other
 Net sales:
Customers          71,059   10,732  10,981          1,825       94,599              -                           94,599
Inter-segment      12,193      147      97             -       12,439               (12,439)                         -
Total              83,253   10,880  11,079          1,825      107,039               (12,439)                    94,599
Operating expenses 76,434   11,502  12,848          1,758      102,543               (12,836)                    89,706
Operating income    6,819    (622) (1,768)             67        4,495                    397                     4,893



Note:

1. Classification of countries and areas determined in accordance with the degree of geographical proximity.

2.    Major countries and areas in each category are summarizes as follows:

(1)  Americas---------United States

(2)  Europe------------Germany, United Kingdom, the Netherlands

(3)  Asia and other---Taiwan



(3)  Export Sales and Sales by Overseas Subsidiaries

     Overseas sales of the Companies, meaning that the amounts of exports made by the Company and the sales made by the
overseas consolidated subsidiaries, for the 6 months ended September 30, 2002 and September 30, 2003 are summarized in 
the
following tables:


                                                               Millions of yen
                                               The half-year ended September 30, 2002 (FY2002)
                                                                             
                              America                     Europe             Asia and Other                  Total

  Overseas sales               5,191                      5,485                      3,725                     14,401

  Consolidated net                                                                                             45,308
  sales

  Overseas sales
  as a percentage
  of consolidated              11.5 %                     12.1 %                     8.2 %                     31.8 %
  net sales



                                                               Millions of yen
                                               The half-year ended September 30, 2003 (FY2003)
                                                                             Asia and Other

                             America                     Europe                                               Total

  Overseas sales               5,073                      6,630                      4,857                     16,562

  Consolidated net                                                                                             55,924
  sales

   Overseas sales              9.1 %                      11.8 %                     8.7 %                     29.6 %
  as a percentage
  of consolidated
  net sales


                                                                         Millions of yen
                                                             The year ended March 31, 2003 (FY2002)
                                                                                    
                                                                                      
                                                    America          Europe         Asia and Other     Total

               Overseas sales                       10,775          10,780          7,764            29,319

               Consolidated net sales                                                                94,599

               Overseas sales as a percentage of
               consolidated net sales
                                                    11.4 %          11.4 %          8.2 %            31.0 %







Note:

1.  Classification of countries and areas are determined in accordance with the degree

of geographical proximity.

2.  Major countries and areas in each category are summarizes as follows:

(1)  Americas----------------United States

(2)  Europe-------------------Germany, United Kingdom, the Netherlands

(3)  Asia and other----------South Korea, Taiwan




(Investments in securities)

1. As of September 30, 2002 and 2003, and March 31, 2003 market value available in other investment securities is as 
follows:
                                                                   Millions of yen
                                                               As of September 30, 2002
                                                Acquisition cost    Carried amount      gain (loss)
Other securities
Equities                                             3,026              2,757              (269)
Others                                                 15                 20                 4
Total                                                3,041              2,777              (264)


                                                                   Millions of yen
                                                               As of September 30, 2003
                                                Acquisition cost    Carried amount      gain (loss)
Other securities
Equities                                             2,399              2,750               351
Others                                                 15                 18                 2
Total                                                2,414              2,769               354


                                                                   Millions of yen
                                                                 As of March 31, 2003
                                                Acquisition cost    Carried amount      gain (loss)
Other securities
Equities                                             2,604              2,148              (456)
Others                                                 15                 20                 4
Total                                                2,620              2,169              (451)

Note:

Beside the above listed securities, the Company recognizes unrealized gains/(losses) on  investments in fund portfolio
(toshi-jigyo kumiai) as follows: 1H/2002 (34) million yen, FY2002 (24) million yen and 26 million yen in this interim 
period.
These figures are reported as a separate item in shareholders' equity and net of tax effect.



In case where the fair value of equity securities has declined 50% or greater of the acquisition cost and the impairment
deemed to be not temporary, these securities are written down to the fair value and the resulting losses are included in
income statements.



In the case where the fair value of equity securities has declined to 30-50% of the acquisition cost, the Company will 
conduct an 'impairment test' that factors each investment comparing acquisition costs with the recent financial 
condition and performance over the last two years and the market average price at the end of the month over last 24 
months.



The Company recorded charges of unrealized losses on other securities of 83 million yen in 1H/2002, and 510 million yen 
in FY2002.




2. Market value not available in investment securities is as follows:

 (Millions of yen)
                                           As of September 30,  As of September 30,  As of  March 31,

                                                   2002         2003                         2003
                                              Carried amount       Carried amount       Carried amount
Other investment in securities
Money management funds
                                                    2,507                   -                2,507
Free financial funds
                                                    3,309                   -                3,309
Discount financial bonds
                                                      899                   -                  899
Unlisted equities (ex.OTC equities)
                                                      175                 175                  175
Unlisted foreign bonds
                                                    1,500               1,500                1,500
Unlisted foreign equities
                                                      131                  77                  286



(Contingency Events)

None


FY2003 Interim Non-Consolidated Results                                                        November 19, 2003

(Six months ended September 30,2003)



This is summarized and translated financial information that the Company posted to the Tokyo Stock Exchange in 
accordance with
their rules that governs the disclosure of financial information.

The Company maintains an internet website at www.thk.co.jp. The Company makes available free of charge on the website 
its
financial information in Japanese language. Those information translated in English language will be disclosed as soon 
as
reasonably practicable after disclosing materials in Japanese language.



Company Name: THK Co., Ltd. (TSE:6481)                      URL: http://www.thk.co.jp/

Head Office: Tokyo, Japan (Tel:+81-03-5434-0300)

President and CEO: Akihiro Teramachi

Director/General Manager of Corporate Strategy Department: Kotaro Yoshihara

Date of the board meeting: November 19,2003

Date of interim dividend: conducted on December 8,2003                 Number of trading lot: 100 shares



 Non-Consolidated Financial Highlights (Unaudited)

(Millions of yen, except earnings per share date)
                                                     Six months ended September 30           Fiscal 2002, ended
                                                     2002                     2003             March 31, 2003

                                                    Yen      Changes       Yen       Changes          Yen
Net sales                                          35,724     (7.7)%       44,895      25.7%             75,921
Operating income                                    2,716    (10.7)%        6,938     155.5%              6,757
Ordinary income                                     2,796     (7.3)%        6,833     144.4%              7,291
Net income                                          1,522      16.1%        3,801     149.7%              4,277


Total assets                                      169,636                 167,630                       183,196
Total shareholders' equity                         97,151                 101,127                        98,894
Shareholders' equity/total assets                   57.3%                   60.3%                         54.0%

Earnings per share (yen)
 Net income-basic                                   12.75                   32.06                         35.59
 Cash dividends                                      7.50                    7.50                         15.00
 Shareholder's equity                              813.95                  854.48                        828.36



Notes to the Financial Information:

1.       Change of accounting policy: None

2.       Net average number of shares issued and outstanding during the term (non-consolidated)

FY2003 first half: 118,558,752 shares, FY2002 first half: 119,359,860 shares, FY2002: 119,356,771shares

3.       Regarding net sales, operating income, ordinary income and net income, percent indications show percentage 
changes
from the same period of the previous year.

4.       Net number of shares issued and outstanding at the end of fiscal year (non-consolidated)

FY2003 first half: 118,348,869 shares, FY2002 first half: 119,358,410 shares, FY2002: 119,350,553 shares

5.       The number of treasury stock at the end of the fiscal year

FY2003 first half: 1,014,149 shares, FY2002 first half: 4,608 shares, FY2002: 12,465 shares

6.       The Financial statements are unaudited.




Projections of Non-Consolidated Results for Fiscal Year ending March 31, 2004

                                                                    (Millions of yen, except earnings per share date)
                                                          Year ending March 31, 2004
Net sales                                                                    95,000
Operating income                                                             15,500
Ordinary income                                                              15,000
Net income                                                                    8,300
Net income per share (yen)                                                    69.81



*Forward-Looking Statements

This release contains forward-looking statements that are based on management's estimates, assumptions and projections 
at the time of release. Some factors, which include, but are not limited to, the risks and uncertainty associated with 
the worldwide economy, competitive activity and currency fluctuation, could cause actual results to differ materially 
from expectations.

                                           Interim Non- Consolidated Balance Sheets

                                    As of September 30, 2003 and 2002, and March 31, 2003



(Unit / Millions of yen, %)
                                             September 30,                        September 30,            March 31,

                                                  2002                                   2003                 2003
Assets
Current assets:
Cash on hand and in banks                       47,305                               43,386                 58,726
Notes receivable-trade                          12,263                               15,297                 13,698
Accounts receivable-trade                       16,639                               21,613                 20,043
Short-term investment in securities              6,716                                   -                  6,716
Inventories                                     15,988                              13,749                 14,204
Deferred tax assets                                715                               1,327                  1,092
Short-term loans                                 2,567                               6,840                  4,279
Other                                              721                               1,104                    435
Less: Allowance for doubtful accounts            (209)                               (131)                  (157)
Total current assets                           102,708  60.6                      103,188    61.6        119,040   65.0
Fixed assets:
Tangible fixed assets:                          32,207  19.0                        30,652    18.2         30,969   16.9
Buildings and structures                         9,459                               8,836                  9,081
Machinery and equipment                         12,046                              10,834                 11,156
Land                                             9,169                               9,104                  9,169
Other                                            1,531                               1,876                  1,562
Intangible fixed assets                          2,118   1.2                         1,603     1.0          1,826    1.0
Investments and others:                         32,593  19.2                        32,186    19.2         31,359   17.1
Investment in securities                         4,402                               4,389                  3,807
Investment in share of subsidiaries             12,401                              12,058                 13,061
Investment in subsidiaries                       5,506                               6,720                  5,506
Deferred tax assets                              2,258                               1,626                  2,028
Other                                            8,610                               7,789                  7,351
Less: Allowance for doubtful accounts            (586)                                (397)                  (397)
Total fixed assets                              66,919   39.4                       64,442     38.4        64,155   35.0
Deferred assets:
Bond discounts and premiums                          8                                   -                      0
Total deferred assets                                8   0.0                             -      0.0             0   0.0
 Total assets                                   169,636 100.0                      167,630     100.0      183,196 100.0




                                           Interim Non- Consolidated Balance Sheets

                                    As of September 30, 2003 and 2002, and March 31, 2003



(Unit / Millions of yen, %)
                                      September 30,           September 30,                                    March 31,

                                      2002                    2003                                               2003
Liabilities
Current liabilities:
Notes payable-trade                               4,135                              4,205                3,922
Accounts payable-trade                            9,934                             12,490               11,202
Short-term debt                                   5,000                                -                  1,605
Current portion of long-term debt                 2,826                                -                  2,163
Current portion of bonds                         11,000                                -                  3,000
Current portion of convertible bonds             13,905                                -                 13,905
Accounts payable-other                              559                              1,035                  639
Accrued expenses                                  2,709                              3,149                2,808
Corporate income taxes payable and                  786                              3,006                1,591
other                                                                                
Accrued bonus                                     1,070                              1,219                1,125
Accounts payable-equipment and other                258                                376                  461
Other                                               246                                405                  225
Total current liabilities                        52,432  30.9                       25,888    15.5       42,649   23.3
Long-term liabilities:
Bonds                                            15,000                             15,000               15,000
Bonds with stock acquisition rights                   -                             23,000               23,000
Long-term                                         2,667                                -                  1,170
Allowance for retirement and                      1,208                              1,355                1,279

severance benefits
Allowance for directors' and                      1,163                              1,254                1,193
auditors'

retirement benefits
Other                                                12                                 4                     8
Total long-term liabilities                      20,052  11.8                       40,615    24.2         41,651   22.7
 Total liabilities                               72,484  42.7                       66,503    39.7         84,301   46.0
Shareholders' equity
Common stock                                     23,106  13.6                       23,106    13.8         23,106   12.6
Capital surplus                                  30,962  18.3                       30,962    18.5         30,962   16.9
Additional paid-in capital                       30,962                             30,962                 30,962
Earned surplus                                   43,226  25.5                       47,963    28.6          45,086  24.6
Earned reserve                                    1,958                              1,958                  1,958
Voluntary reserve                                37,426                             40,523                 37,426
Unappropriate retained earnings                   3,841                              5,480                  5,701
Valuation adjustment for marketable                (133) (0.1)                         223     0.1          (239)  (0.1)
securities
Treasury stock                                      (10) (0.0)                      (1,127)   (0.7)          (20)  (0.0)
Total shareholders' equity                        97,151 57.3                      101,127    60.3        98,894   54.0
Total liabilities and shareholders'              169,636 100.0                     167,630   100.0        183,196 100.0
equity




                                        Interim Non-Consolidated Statements of Income

                        For Six Months to September 30, 2003 and 2002, and Years Ended March 31, 2003



(Unit/ Millions of yen, %)
                                                 September 30,     September 30,      March 31,

                                                 2002              2003               2003
Net sales                                        35,724    100.0   44,895     100.0   75,921     100.0
Cost of sales                                    25,888    72.5    30,606     68.2    55,304     72.8
Gross profit                                     9,836     27.5    14,288     31.8    20,617     27.2
Selling, general and administrative expenses     7,120     19.9    7,349      16.4    13,859     18.3
Operating income                                 2,716     7.6     6,938      15.4    6,757      8.9


Non-operating income                             497       1.4     433        1.0     1,415      1.9
Interest income                                  63                81                 138
Dividend income                                  47                56                 62
Foreign exchange gain                            14                -                  448
Other                                            372               294                765
Non-operating expenses                           417       1.2     538        1.2     881        1.2
Interest expenses                                86                9                  138
Bond interest                                    215               118                421
Foreign exchange loss                            -                 246                -
Other                                            115               163                322
Ordinary income                                  2,796     7.8     6,833      15.2    7,291      9.6
Extraordinary profit                             3         0.0     61         0.2     76         0.1
Gain on sales of property and equipment          3                 0                  32
Reversal of allowance for doubtful accounts      -         25                 43
Other                                            -         35                 -
Extraordinary loss                               96        0.2     229        0.6     1,173      1.5
Loss on sales/disposal of property and equipment 12                112                453
Loss on write-down of investment in securities   83                -          510
Loss on write-down of investment in share of     -         99                 165
subsidiaries
Other                                            -         17                 44
Income before income taxes and other             2,703     7.6     6,665      14.8    6,194      8.2
Income taxes-current                             870               3,023              1,677
Adjustment of corporate income taxes and other   309               (159)              239
Net income                                       1,522     4.3     3,801      8.5     4,277      5.6
Unappropriated retained earnings carried over    2,318             1,679              2,318
from previous year
 Interim cash dividends                          -                     -                895
Unappropriated retained earnings at the period   3,841             5,480              5,701




                                       Basis for Non-Consolidated Financial Statements



1.  Evaluation of significant assets

(1)  Investments in securities

Subsidiaries and Affiliates:

Subsidiaries and Affiliates are stated at cost by using the moving average.



Other securities with market prices available:

Other securities, for which market prices are available, are stated at fair value.Net unrealized gains/losses on these
securities are reported as a separate item in the shareholders' equity. Cost of securities is computed using the moving
average.

               Other securities with market prices unavailable:

Other securities, for which market prices are unavailable, are stated at cost

by using the moving average.



   (2)  Inventories
           Company Name              Evaluation of inventories           Stated at
Finished goods                      Weighted average            Cost basis
Purchase                            First-in first-out          Cost basis
Raw material                        Weighted average            Cost basis
Work in process                     Weighted average            Cost basis
Supplies                            Last purchase               Cost basis



2.   Depreciation and amortization of the fixed assets

(1)  Tangible fixed assets

For the Company depreciation is computed using the declining-balance method at the rate based on the estimated useful 
lives of
assets.

The Company utilize the straight-line method to compute depreciation for buildings, excluding fixtures to buildings, 
acquired
on and after April 1, 1998.

The useful lives of major properties are as follows:

Buildings and structures                         5-50 years

Machinery and equipment                         10 years

Vehicles                                         4-6 years

Implements and tools                             2-10 years


(2)  Intangible fixed assets

The amortization of intangible assets is computed using the straight-line method.

Software costs for internal use are amortized over their estimated useful lives, less than 5 years, on a straight-line 
basis.

(3)  Long-term prepaid expenses

Straight-line method



3.   Deferred charges

 Bond discount and premiums are amortized over the outstanding period by straight-line method.



4.   Basis for recording allowances

(1)  Allowance for doubtful accounts:

The Company recognizes allowance for doubtful accounts for general accounts and notes receivables, in amounts considered
to be appropriate, based primarily upon the Company's past credit losses in each receivable outstanding. For receivables
which are deemed to be uncollectible with a high possibility, estimated amount will be recognized after considering the 
collectivity of receivables respectively.

(2)  Accrual for bonus:

The Company recognized an allowance (accrual) for bonus payment for employees. For the interim period, the company 
recognizes the potion that is allocated to reporting period upon the estimates provided by the Company.

(3)  Allowance for retirement and severance benefits:

The Company recognizes an allowance for employees' retirement benefits, the portion that is allocated to this interim
reporting period based upon the projected future benefit obligations and fair value of pension assets as at the end of 
this interim reporting period. The unrecognized actuarial differences are amortized using straight-line method over the 
period of 10 years from the next year in which they arise.

(4)  Allowance for directors' and auditors' retirement benefits:

The Company record a allowance for directors' and statutory auditors' retirement benefits equivalent to the liability 
the Company would have to pay (if all eligible directors and statutory auditors resigned at the end of the interim 
reporting period) in accordance with internal rules that governs the operation of this retirement benefits plans.





5.   Leases

The operating-lease accounting method, except lease agreements that stipulate the transfer of ownership of leased 
property to the lessee, is accounted for finance leases.



6.   Hedge accounting

(1)  Method of hedge accounting:

Fair value presentation for interest-rate-swap needed at the end of this interim period has been omitted since the swap
agreements qualitied the condition for hedge accounting in accordance with the related Japanese accounting standards.

Currency-swap transactions qualified the conditions for hedge accounting, and

those are treated as assignment treatment.

(2)  Means of hedging and hedged items

Interest-rate-swap: hedging interest fluctuating on borrowing.

Currency swap: Money claims denominated in foreign currency.

(3)  Policy for hedge transactions:

The company utilizes these instruments in order to reduce interest rate and foreign exchange rate risks.

(4)  Method of evaluating hedge effectiveness:

In terms of interest, the evaluation of hedge effectiveness is omitted, since hedge

accounting applies only to those interest-rate-swaps agreements that meet the conditions for exceptional treatment.

In terms of currency, the evaluation of hedge effectiveness is omitted, since hedge

accounting applies only to those currency-swaps that are the same in significant conditions regarding the transaction 
and the assets covered by hedge, and assume in advance to offset market price fluctuations and cash-flow changes during 
hedge transactions.



7.   Other significant items

(1)  Treatment of national and local consumption taxes:

Tax-exclusion accounting method is applied. Temporary payments of purchases and

temporary receipts of sales are offset and included in other section of current liabilities.

(2)    Treatment of reserve fund:

Tax payments and adjustment amounts of corporate taxes in the interim period are computed by the amount related with the
interim period on the assumption that accumulation and reversal for special depreciation reserve through appropriation 
of earnings.




                                                            Notes



(Non-Consolidated Balance Sheets)


                                                                                     (Millions of yen)
                                                                   FY 2002           FY2003            FY2002
                                                                  interim           Interim
                  1. Discounts on notes receivable                   13                  -               -
                  2.Accumulated depreciation of                  59,005            60,067            58,565
                  tangible fixed assets
                  3.Advanced depreciation by                        150               150               150
                  national subsidy
                  4. Security-presented assets
                  Investments in securities                         899                 -               899
                  Tangible fixed assets                          15,471                 -            14,723
                  Long-term investments                             847                 -               377
                   in securities
                  5.Liabilities for guarantee, etc.
                  Liabilities for guarantee                       2,951             1,911             1,891
                  Guarantee engagement, etc.                        600               200               500




(Lease Transactions)

1.   Finance lease transaction that do not transfer ownership of the leased property to the lessee

       on an 'as if capitalized' basis is as follows:

 (1)   Acquisition costs, accumulated depreciation and net leased property at interim period ( fiscal year )




                                                                                (Millions of yen)

                                                          FY 2002               FY2003                FY2002

                                                          interim               interim
                                                       Machinery and         Machinery and         Machinery and
                                                          equipment             equipment             equipment
             Acquisition costs                                    54                    54                    54
             Accumulated depreciation                             38                    46                    42
             Net leased property                                  15                     7                    11


                                                              Other                 Other                 Other
                                                      (Tangible fixed       (Tangible fixed       (Tangible fixed
                                                             assets)               assets)               assets)
             Acquisition costs                                 2,859                 2,814                 2,784
             Accumulated depreciation                          1,515                 1,075                   860
             Net leased property                               1,344                 1,738                 1,923


                                                          Intangible            Intangible            Intangible
                                                        Fixed Assets          Fixed Assets          Fixed Assets
             Acquisition costs                                    37                    37                    37
             Accumulated depreciation                             12                    19                    16
             Net leased property                                  25                    17                    21


                                                               Total                 Total                 Total
             Acquisition costs                                 2,951                 2,906                 2,876
             Accumulated depreciation                          1,566                 1,142                   919
             Net leased property                               1,385                 1,764                 1,957



Note: The amounts of acquisition costs and future minimum lease payments under finance leases include the portion of 
imputed interest expense.




(2)   Future minimum lease payments under finance leases


                                                                                            (Millions of yen)

                                                               FY 2002               FY2003                FY2002
                                                              interim               interim
             Due within one year                                 555                   574                   576
             Due after one year                                  830                 1,189                 1,380
             Total                                             1,385                 1,764                 1,957



Note: The amounts equivalent to acquisition costs and future minimum lease payments under finance leases include the 
portion
of imputed interest expense.



(3)   Lease payments and implied depreciation


                                                                                               (Millions of yen)

                                                               FY 2002               FY2003                FY2002
                                                               interim               interim
             Lease payments                                      320                   295                   629
             Depreciation                                        320                   295                   629



(4)  Depreciation

Depreciation is computed using the straight-line method.



2.   Operating lease transactions

Future minimum lease payments under operating lease


(Millions of yen)
                                                             FY 2002               FY2003                FY2002
                                                             interim               interim
             Due within one year                                   2                     2                     2
             Due after one year                                    5                     3                     4
             Total                                                 8                     5                     6




(Investments in securities)

Market value of stocks in subsidiaries and affiliates are as follows:

1.   At September 30, 2002
               Classification                                     Millions of yen
                                                              As of September 30, 2002
                                               Carried amount       Market value      Net unrealized

                                                                                        gain (loss)
Stocks of affiliates                         1,229               1,066              (162)



2.   At September 30, 2003
               Classification                                     Millions of yen
                                                              As of September 30,2003
                                               Carried amount       Market value      Net unrealized

                                                                                        gain (loss)
Stocks of affiliates                                   1,374              2,284                 909



3.    At March 31, 2003
               Classification                                     Millions of yen
                                                                As of March 31,2003
                                               Carried amount       Market value      Net unrealized

                                                                                        gain (loss)
Stocks of affiliates                                   1,085               822                (263)




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