FINANCIAL SECTION Consolidated Statements of ShareholdersGLYPH<213> Equity The accompanying Notes to Consolidated Financial Statements are an integral part of these statements. 37 U.S. Dollars Yen (thousands) (millions) (Note 3) Years ended March 31 2002 2003 2004 2004 Common stock: Balance at beginning of year · 314,652 · 324,624 · 324,624 $3,062,491 Conversion of bonds 9,707 GLYPH<209> — — Increase as a result of stock exchange 265 GLYPH<209> — — Balance at end of year · 324,624 · 324,624 · 324,624 $3,062,491 Capital surplus: Balance at beginning of year · 505,449 · 519,720 · 519,720 $4,903,019 Conversion of bonds 9,707 GLYPH<209> — — Increase as a result of stock exchange 4,564 GLYPH<209> — — Gain on sales of treasury stocks GLYPH<209> GLYPH<209> 16 151 Decrease as a result of deconsolidation of equity method affiliates GLYPH<209> GLYPH<209> (63,773) (601,632) Balance at end of year · 519,720 · 519,720 · 455,963 $4,301,538 Retained earnings (Deficit): Balance at beginning of year · 483,709 · 76,176 · (60,718) $ (572,811) Net income (loss) (382,542) (122,066) 49,704 468,906 Cash dividends paid (14,842) (5,005) — — Bonuses to directors and statutory auditors (998) (598) (620) (5,849) Decrease as a result of deconsolidation of equity method affiliates GLYPH<209> GLYPH<209> (27,706) (261,378) Other, net (9,151) (9,225) 3,606 34,019 Balance at end of year · 76,176 · (60,718) · (35,734) $ (337,113) Unrealized gains on securities, net of taxes: Balance at beginning of year · 19,035 · 10,417 · 2,152 $ 20,302 Increase (decrease) (8,618) (8,265) 147,477 1,391,292 Balance at end of year · 10,417 · 2,152 · 149,629 $1,411,594 Revaluation surplus on land, net of taxes: Balance at beginning of year · GLYPH<209> · 4,311 · 3,938 $ 37,151 Increase (decrease) 4,311 (373) (485) (4,576) Balance at end of year · 4,311 · 3,938 · 3,453 $ 32,575 Foreign currency translation adjustments: Balance at beginning of year ·(108,451) · (81,323) · (86,517) $ (816,198) Change during the period 27,128 (5,194) 16,616 156,755 Balance at end of year · (81,323) · (86,517) · (69,901) $ (659,443) Treasury stock: Balance at beginning of year · (11) · (169) · (809) $ (7,632) (Increase) decrease (158) (640) (48) (453) Balance at end of year · (169) · (809) · (857) $ (8,085)