DAIKIN INDUSTRIES, LTD. ANNUAL REPORT 2001 26 CORPORATE DATA TOPICS REVIEW OF OPERATIONS FINANCIAL SECTION MANAGEMENT PERSPECTIVE FINANCIAL HIGHLIGHTS Consolidated Statements of Income Daikin Industries, Ltd. and Consolidated Subsidiaries Years Ended March 31, 2001 and 2000 Millions of yen 2001 2000 Net sales ............................................................................................................................... ¥531,908 ¥463,069 Cost of sales ......................................................................................................................... 356,325 313,549 Gross profit ........................................................................................................................... 175,583 149,520 Selling, general and administrative expenses .......................................................................... 135,769 123,632 Operating income ............................................................................................................... 39,814 25,888 Other income (expenses): Interest and dividends ........................................................................................................ 1,108 759 Interest expense ................................................................................................................ (5,216) (4,728) Gains on sales of investment securities............................................................................... 6 1,632 Royalty income................................................................................................................... 1,428 329 Exchange losses ................................................................................................................ (261) (1,463) Loss on disposals of property, plant and equipment ............................................................. (898) (755) Write-off of investment securities......................................................................................... (436) (1,828) Write-off of other assets ..................................................................................................... (728) Equity in earnings (losses) of associated companies............................................................. 325 (369) Other—net......................................................................................................................... 92 (47) Other expenses—net ................................................................................................. (4,580) (6,470) Income before income taxes and minority interests ................................................................ 35,234 19,418 Income taxes (Note 9): Current .............................................................................................................................. 17,537 8,503 Deferred ............................................................................................................................ (3,216) (101) Total ......................................................................................................................... 14,321 8,402 Minority interests in net income of subsidiaries ...................................................................... (974) (563) Net income ............................................................................................................................ ¥019,939 ¥010,453 Yen Per share of common stock  (Note 2): Net income ........................................................................................................................ ¥75.60 ¥39.62 Cash dividends applicable to the year .................................................................................. 12.00 10.00 See notes to consolidated financial statements.