Annual Report 2002 [PDF/1.6MB]

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Fundamental Business Policies1. Enhanced business selectivity /acceleration of asset disposals(1) Steel businessThis remains Kawasho's core area of operations. Our aim is tolead the industry in terms of sales competitiveness as theleading sales agent for the products of the JFE Group.1. Amid significant change within the steel distribution industry,we are leveraging our superior expertise in customer servicesand sales to boost our competitiveness and adopt anincreasingly localized sales response to user requirements.2. We are working to strengthen our domestic and overseasaffiliates to boost our capabilities in terms of sales, localproduct processing and distribution; with this aim in mind,we are reviewing the intra-group distribution of roles in orderto reorganize and consolidate these operations.consolidated liabilities by ¥74.6 billion, to ¥307.8 billion.Since our original target was to achieve a figure of ¥320billion by the end of March 2004, this represented aconsiderable acceleration of the debt-reduction program.We have set a new target figure for outstanding consolidatedinterest-bearing debt of ¥200 billion at the end of March2005. The increased pace of the debt-reduction program willderive principally from a greater drive on the asset-disposalfront, notably with our real estate business, together with agreater focus on enhancing business selectivity andaccelerating disposals.3. Boosted earnings power through cost reductionsWithin a business environment in which sales growth isdifficult to achieve, our focus has switched towardstrengthening cost-reduction efforts in a bid to boostearnings flow and thus help to raise shareholders' equity.(2) Non-steel businessesWe are reviewing these areas in terms of sales potential andrelative competitiveness with a view to promoting enhancedbusiness selectivity. We intend to complete this aspect of ourbusiness restructuring by the end of March 2003.1. We are strengthening the capabilities of our raw materialsbusiness to better support steel trading operations, with anaim to expand JFE Group trading operations.2. In our foods, commodities, machinery, aerospace andelectronics businesses, we are promoting the re-evaluationof individual sectors in terms of their profitability and returnon assets; as well as boosting efficiency and streamliningthese businesses to improve cost-competitiveness, we areconstructing an optimized divisional structure that alsoaccommodates Kawasho Group subsidiaries and affiliates.New Performance Targets( for year ending March 2005)400300Recurring income(consolidated) ¥10.0 billion(parent) ¥6.5 billionInterest-bearing debt(consolidated) ¥200 billion(parent) ¥130 billionbillion yen¥382.4 billionINTEREST-BEARING DEBT (CONSOLIDATED)¥307.8 billionORIGINAL TARGET¥320 billionNEW TARGET2. Significant short-term improvements in RoA and RoEAchieving reductions in our consolidated interest-bearing debtburden is the major goal of the Second Step Plan. In the year2000March 2001 March <strong>2002</strong> March 2004¥200 billionMarch 2005ended March <strong>2002</strong>, we succeeded in reducing total8
REVIEWS OF OPERATIONSDOMESTIC STEEL BUSINESS 10OVERSEAS STEEL BUISINESS 12TERRE ARMÉE CIVIL ENGINEERING BUSINESS 14RAW MATERIALS, FUELS & CHEMICALS BUSINESS 16FOODS BUSINESS 18MACHINERY BUSINESS 20ELECTRONICS BUSINESS 22AEROSPACE BUSINESS 24
Page 2 and 3: COMPANY PROFILEOriginally founded i
Page 5 and 6: BUSINESS ENVIRONMENTDuring the year
Page 7: position as a leading steel trader,
Page 11 and 12: Domestic SteelOverseas SteelTerre A
Page 27 and 28: All Domestic Kawasho Offices Acquir
Page 29 and 30: CONSOLIDATED BALANCE SHEETSKawasho
Page 31 and 32: CONSOLIDATED STATEMENTS OF OPERATIO
Page 33 and 34: CONSOLIDATED STATEMENTS OF CASH FLO
Page 35 and 36: NOTES TO CONSOLIDATED FINANCIAL STA
Page 37 and 38: 2. SUMMARY OF SIGNIFICANT ACCOUNTIN
Page 39 and 40: 4. SHORT-TERM BORROWINGS AND LONG-T
Page 41 and 42: 6. ACCRUED RETIREMENT BENEFITSThe f
Page 43 and 44: 10. LEASE TRANSACTIONSFinance lease
Page 45 and 46: 11. DERIVATIVE FINANCIAL INSTRUMENT
Page 47 and 48: 12. SEGMENT INFORMATIONThe Companie
Page 49: JapanThousands of U.S. DollarsOther
Page 52 and 53: IndonesiaMiddle EastNorth AmericaJA
Page 54 and 55: COMPANY DATANameKAWASHO CORPORATION

Annual Report 2002 [PDF/1.6MB]

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