Note: These figures include inter-segment sales.

Through 42 consolidated and unconsolidated subsidiaries and 10 affiliated companies, we are active in a wide range of other business activities, primarily in such service industries as transportation, materials inspection, leasing, plant and equipment installation, trading, real estate, and travel. In fiscal 1997, consolidated sales in this sector declined 6.4%, to 98.3 billion yen, due to sluggishness in the domestic economy and intensifying competition. Operating income slipped 2.6%, to 6.5 billion yen.