FINANCIAL HIGHLIGHTS MANAGEMENT PERSPECTIVE TOPICS REVIEW OF OPERATIONS FINANCIAL SECTION (2) Geographical Segments The foreign operations of the Companies for the years ended March 31, 2001 and 2000 are summarized below: Millions of yen Asia and Eliminations For the year ended March 31, 2000 Japan Oceania Europe Americas Other and Corporate Consolidated Sales to outside  customers .......................... ¥349,001 ¥32,098 ¥54,859 ¥25,679 ¥1,432 ¥ 00,0— ¥463,069 Interarea transfers ................ 56,379 17,444 115 746 (74,684) Total sales ....................... 405,380 49,542 54,974 26,425 1,432 (74,684) 463,069 Operating expenses .............. 390,594 46,891 49,913 26,410 1,336 (77,963) 437,181 Operating income.............. ¥014,786 ¥02,651 ¥05,061 ¥00,015 ¥0,096 ¥03,279 ¥025,888 Assets ................................. ¥314,563 ¥33,756 ¥33,373 ¥27,350 ¥1,056 ¥20,911 ¥431,009 Millions of yen Asia and Eliminations For the year ended March 31, 2001 Japan Oceania Europe Americas Other and Corporate Consolidated Sales to outside  customers .......................... ¥392,772 ¥37,760 ¥68,045 ¥32,141 ¥1,190 ¥ ,000— ¥531,908 Interarea transfers ................ 69,062 22,571 281 1,245 (93,159) Total sales ....................... 461,834 60,331 68,326 33,386 1,190 (93,159) 531,908 Operating expenses .............. 437,028 56,464 61,115 30,658 1,223 (94,394) 492,094 Operating income (loss)..... ¥024,806 ¥03,867 ¥07,211 ¥02,728 ¥ 0,(33) ¥01,235 ¥039,814 Assets ................................. ¥317,415 ¥44,036 ¥45,110 ¥30,280 ¥0,886 ¥15,415 ¥453,142 The above amounts are summarized by geographic area based on the countries where sub- sidiaries are located. Sales to foreign customers for the years ended March 31, 2001 and 2000 were as follows: (3) Sales to Foreign Customers Millions of yen 2001 2000 Asia and Oceania ...................................................................................... ¥057,879 ¥049,044 Europe ..................................................................................................... 68,820 55,738 Americas .................................................................................................. 37,790 29,946 Other........................................................................................................ 5,711 5,793 Total sales to foreign customers ............................................................ ¥170,200 ¥140,521 CORPORATE DATA DAIKIN INDUSTRIES, LTD. ANNUAL REPORT 2001 40