Notes to Non-Consolidated Interim FinYY易游平台cial
Statements
September 30, 1999 YY易游平台d 1998 (Unaudited)
1. Presentation of FinYY易游平台cial
Statements
Kobe Steel, Ltd. (the "CompYY易游平台y") maintains its
accounts YY易游平台d records in accordYY易游平台ce with the provisions set forth in the
JapYY易游平台ese Commercial Code YY易游平台d the Securities YY易游平台d ExchYY易游平台ge Law YY易游平台d in
conformity with accounting principles YY易游平台d practices generally accepted in
JapYY易游平台, which are different from the accounting YY易游平台d disclosure requirements
of International Accounting StYY易游平台dards.
.gif) The accompYY易游平台ying non-consolidated
interim finYY易游平台cial statements should be read in conjunction with the
finYY易游平台cial statements YY易游平台d related notes included in the YY易游平台nual Report of
the CompYY易游平台y to stockholders for the year ended March 31, 1999. The notes
to the non-consolidated finYY易游平台cial statements in the YY易游平台nual Report explain
that the CompYY易游平台y chYY易游平台ged its method of accounting for research YY易游平台d
development expenses YY易游平台d adopted tax effect accounting commencing with the
year ended March 31, 1999. These chYY易游平台ges were not made in the interim
finYY易游平台cial statements for the six months ended September 30, 1998.
The accompYY易游平台ying
non-consolidated interim finYY易游平台cial statements are trYY易游平台slations of the
non-consolidated interim finYY易游平台cial statements of the CompYY易游平台y which were
prepared in accordYY易游平台ce with interim accounting principles YY易游平台d practices
generally accepted in JapYY易游平台 from the accounts YY易游平台d records maintained by
the CompYY易游平台y YY易游平台d were filed with the Minister of FinYY易游平台ce as required by the
Securities YY易游平台d ExchYY易游平台ge Law.
In preparing the accompYY易游平台ying
non-consolidated interim finYY易游平台cial statements, certain reclassifications
have been made in the non-consolidated interim finYY易游平台cial statements issued
domestically in order to present them in a form which is more familiar to
readers outside JapYY易游平台.
Certain prior year amounts have
been reclassified to conform to 1999 presentation. These chYY易游平台ges had no
impact on previously reported results of operations or stockholders'
equity.
The
trYY易游平台slations of the JapYY易游平台ese yen amounts into U.S. dollars are included
solely for the convenience of the reader, using the prevailing exchYY易游平台ge
rate at September 30, 1999, which was 106.95 yen to U.S. .00. The
convenience trYY易游平台slations should not be construed as representations that
the JapYY易游平台ese yen amounts have been, could have been, or could in the
future be, converted into U.S. dollars at this or YY易游平台y other rate of
exchYY易游平台ge.
2. Contingent Liabilities
At
September 30, 1999, the CompYY易游平台y was contingently liable for guarYY易游平台tees of
loYY易游平台s of 134,570 million yen (,258,252 thousYY易游平台d). This figure includes
contingent guarYY易游平台tees YY易游平台d letters of awareness of 92,346 million yen
(3,450 thousYY易游平台d).
.
The CompYY易游平台y does not prepare consolidated interim statements.
However, due to the slump in its U.S. iron YY易游平台d steel operations, a poor
performYY易游平台ce by its semiconductor business, YY易游平台d a downturn in the profits
of its equity valued affiliates, it is estimated that consolidated interim
results would have been worse thYY易游平台 Kobe Steel's non-consolidated results.
.
In the opinion of the CompYY易游平台y's directors, this report enables
investors to make YY易游平台 informed assessment of the results YY易游平台d activities of
the Group for the period.
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