27 Consolidated Statements of Shareholders’ Equity U.S. Dollars Yen (thousands) (millions) (Note 3) Years ended March 31 1998 1999 2000 2000 Common stock: Balance at beginning of year ¥237,674 ¥249,347 ¥261,222 $2,464,359 Exercise of warrants 9,547 11,635 34,649 326,877 Conversion of bonds 2,126 181 10,375 97,877 Increase as a result of merger — 59 — — Balance at end of year ¥249,347 ¥261,222 ¥306,246 $2,889,113 Capital surplus: Balance at beginning of year ¥424,578 ¥436,023 ¥447,948 $4,225,925 Exercise of warrants 9,576 11,744 41,133 388,047 Conversion of bonds 2,126 180 10,375 97,877 Other, net (257) 1 (4,383) (41,349) Balance at end of year ¥436,023 ¥447,948 ¥495,073 $4,670,500 Retained earnings: Balance at beginning of year ¥519,238 ¥499,883 ¥456,240 $4,304,151 Net income (loss) 5,587 (13,638) 42,734 403,151 Cash dividends paid (18,508) (18,686) (19,112) (180,302) Bonuses to directors and statutory auditors (940) (925) (739) (6,972) Decrease in cumulative translation adjustments (Note 2) — (5,927) — — Increase as a result of newly consolidated subsidiary — — 6,112 57,661 Other, net (5,494) (4,467) 5,174 48,811 Balance at end of year ¥499,883 ¥456,240 ¥490,409 $4,626,500 Treasury stock: Balance at beginning of year ¥ (87) ¥ (24) ¥ (98) $ (924) (Increase) decrease 63 (74) (198) (1,868) Balance at end of year ¥ (24) ¥ (98) ¥ (296) $ (2,792) The accompanying Notes to Consolidated Financial Statements are an integral part of these statements.