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Tomen's Fiscal 2002 Results and Fiscal 2003 Projection Reflect New Direction, Solid Future

2003-05-15

Tomen Corporation (8003), Japan's leading trading company, announced today financial results for the fiscal year 2002 which ended March 31, 2003. Tomen confirmed its commitment to full implementation of the "Tomen Group Medium-Term Management Plan," which began March 2003 (and ends March 2006).

Tomen Group Medium-term Management Plan
The Medium-Term Management Plan is an interim phase during which Tomen will prepare for its integration with Toyota Tsusho Corporation in the coming year. Tomen will strengthen its business structure and its cost competitiveness by combining the Toyota Group's management style with Tomen's business expertise. Toyota Group, including Toyota Tsusho, will invest 10 billion yen in Tomen in the first half of fiscal year 2003,when Tomen increases its capital by third-party allotment.

The financial result of fiscal 2002
The financial result reflects Tomen's decision to change its business portfolio, financial position and business policies under the plan.

[Consolidated Result of fiscal 2002, April 1, 2002 throughMarch 31, 2003]

Millions of Yen

Result Previous year* Difference (%) Total Trading Transaction 2,082,897 2,384,848 - 301,951(-12.7%) Ordinary Profit 13,704 23,174 -9,470(-40.9%) Net Income -66,969 4,710 -71,679 ( - )

*Previous year result of April 1, 2001 through March 31, 2002

Total trading transactions declined to 2,083 billion yen from 2,385 billion yen the previous year, due to stagnation in the Japanese economy and Tomen's withdrawal from non-performing or unprofitable business in energy, foodstuffs and textiles. However, the machinery business, including Tomen Electronics Corp. (7858) and Tomen Devices Corp. (2737), contributed positive sales growth to the company.

The ordinary profit decreased to 13.7 billion yen from 23.2 billion yen the previous year, due to a decline in total trading transactions. In chemical business, Styrindo Mono Indonesia (SMI) recovered to profitability in styrene monomer sales.

Tomen announced a net loss of 67.0 billion yen due to implementation of business structure reforms, including selling real estate assets and adjusting securities holdings in fiscal year 2002.

Business projection of fiscal 2003
Tomen also announced its business projection for the fiscal year ending March 31, 2004, projecting total trading transactions of 1,550 billion yen, ordinary profit of 20 billion yen and net income of 3.5 billion yen, following The Medium-Term Management Plan.

[Consolidated Business Projection of fiscal 2003 ending March 31, 2004]

Millions of Yen

6 month to September 30, 2003 12 month to March 31, 2004 Total Trading Transaction 800,000 1,550,000 Ordinary Profit 9,500 20,000 Net Income 1,700 3,500

Positive signs in the company thus far in 2003 support Tomen's business projection. For example, in the foodstuffs business, grain imports have maintained stable profitability. In the electronics business, group companies will continue steady growth.

Tomen Electronics Corp. projects record high sales and profit amid a recovery trend in the semiconductor market. Tomen Devices Corp. , a joint venture with Samsung Electronics, and listed on the JASDAQ market in June 2002, also projects record high sales and profit for fiscal 2003. Tomen Cyber-business Solutions Inc. (2356), listed on the Tokyo Stock Exchange's Mothers market in March 2003, continues to expand sales of Internet equipment to meet rising demand stemming from the growing high-speed telecom market.

Tomen president Mr. Morihiko Tashiro commented, "Moving toward integration with Toyota Tsusho is the final step in our Medium-Term Management Plan. We have laid the essential groundwork for growth and productivity in the future and I am confident that my successor, Mr. Kageyama, and our new management team will continue a successful implementation of all plans."

Progress of the Medium-Term Management Plan
By the end of Fiscal 2002, Tomen completed major steps of the plan:

1. Sales of real estate subsidiaries
In March 2003, Tomen completed disposal of real estate businesses by selling most of real estate assets of seven real estate subsidiaries.

2. Debt forgiveness 110 billion yen
In March 2003, Tomen received financial support of 110 billion yen in debt forgiveness from UFJ Bank Limited. UFJ Bank executed the necessary procedure in March 2003.

3. Preferred stock 72 billion yen
Tomen issued preferred stock totaling 72 billion yen in March2003 to major financial institutions in order to reinforce Tomen's shareholders'equity.

4. METI's approval for business restructuring plan
In March 2003, Tomen received approval from the Ministry of Economy, Trade and Industry (METI) for Tomen's business restructuring plan, filed in compliance with the Law on Special Measures for Industrial Revitalization. The positive decision by METI speeds up Tomen's business structure reform.

Information on Tomen's Medium-Term Management Plan can be reviewed on our Investor Relations website. [Link]

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