Trust Recovery Growth Vitalization - Marubeni

Notes to Consolidated Financial Statements
The future minimum rentals to be received under noncancelable
subleases corresponding to the above future minimum rental
payments were not significant at March 31, 2005.
For the year ended March 31, 2003, the Company sold to a third
party the buildings and property of Osaka headquarters and Nagoya
branch for ¥12,500 million and ¥2,900 million, respectively, and
leased back these facilities. The lease terms are 10 years and 2
years, respectively. The Company does not have continuing
involvement under the sale-leaseback transactions.
The Company had commitments to make additional investments
or loans in aggregate amounts of approximately ¥53,000 million
($495,327 thousand) and ¥4,000 million at March 31, 2005 and 2004,
respectively.
The Company guarantees debt of affiliated companies and third
parties in the ordinary course of business. Should the guaranteed
parties fail to make payments, the Company would be required to
make such payments under these guarantees. The term of the
guarantees is basically one year. The related guarantee fees are
primarily received quarterly or semi-annually. Certain of these
19 Subsequent Events
guarantees were secured by secondary guarantees issued to the
Company by other parties. The outstanding balance of guarantees,
which approximated the maximum potential payment under these
guarantees, was ¥96,806 million ($904,729 thousand), including
¥42,183 million ($394,234 thousand) to affiliated companies, at
March 31, 2005, net of the amount secured by secondary guarantees
issued to the Company by other parties of ¥17,246 million ($161,178
thousand). The comparable amounts at March 31, 2004 were
¥180,230 million, ¥110,557 million and ¥19,507 million, respectively.
The Company, its subsidiaries and affiliated companies conduct
business activities on a global scale and are involved in transactions
which are subject to review and jurisdiction by a wide range of
authorities, both in Japan and abroad. Such business activities are
not without risk and, from time to time, may involve legal actions,
claims or other disputes. Although there are various matters pending
at any one time, management is of the opinion that settlement of all
such matters pending at March 31, 2005 would not have a material
effect on the consolidated financial position or results of operations
of the Companies.
At the June 24, 2005 annual meeting, the shareholders approved the payments of cash dividends of ¥4 ($0.04) per share of common stock or
¥5,973 million ($55,822 thousand) in aggregate and of ¥20 ($0.19) per share of Class I preferred stock issued in 2003 or ¥1,510 million ($14,112
thousand) in aggregate.