The fiscal 2001 environmental accounting of our company was calculated in accordance with the "Environmental Accounting Guidelines 2002" of Japan's Ministry of the Environment with regard to the criteria and classification of the environmental protection cost and with addition of our own criteria. As a result, the following changes have been made in the cost calculation method.

With respect to the environmental protection cost, the calculation of depreciation was made by changing the method to the calculation according to the number of depreciation months for the fiscal year based on the depreciation expense per month in fiscal 2001 for enhancing the accuracy, although the calculation was made based on the fixed amount of 5 year write-off in fiscal 2000, so that the cost by investment may be matched with the period of accrued effect.

In the field of economic effect through environmental protection measures, the effect continuation period of substantial effect has been changed. In fiscal 2000, the period for the items created by capital investment was 3 years but it was changed to 5 years in fiscal 2001. Also, the period for the items created by the measures not through capital investment was 1 year in fiscal 2000 but it was changed and unified to 5 years in fiscal 2001 as the average period of technological innovation was reviewed.

As regards to economic effect, the profit and cost reduction through environmental protection measures as "substantial effects" are stated. In addition, "supposed effect" for contributing to the continuous improvement of corporate profit through environmental protection activities and corporate image enhancement and "risk avoidance effect" through pollution prevention measures are stated.

The outline of the environmental protection cost in fiscal 2001 is as follows:

1. The "management activity cost" has considerably decreased to 39% over last year as a result of the integration on environmental management system (ISO14001) between the head office and 5 domestic manufacturing subsidiaries aiming at the efficient operation of environmental management activities as an environmentally advanced corporate.
2. The stress has been focused on the development of environmentally-friendly products, such as the development of energy saving models of refrigerators, air conditioners and resource saving models of audio-visual equipment, and the "R&D cost" has been kept nearly equal to last year (102%) and the continuous research and development are progressing.
3. As a result of having had positively tackled the pollution prevention, ozone layer protection measures and global worming suppression up until fiscal 2000, the main environmental investments have wound up, so that out of the costs in business operations, the "pollution cost" and "global environmental protection cost" decreased to 59% and 78% respectively over last year.

The following main economic effects have been acquired through the environmental protection measures as "supposed effect".

1. The effects of facility maintenance management of electric household appliance recycling business (by Fuji Ecocycle Ltd.), which started in full scale last year, have been additionally stated.
2. The economic effects have increased to 153% over last year by efficient maintenance management activity through the integration on ISO14001 between the head office and 5 domestic manufacturing subsidiaries.

Environmental protection effects are shown by reduction of the energy used in business operations through environmental measures and recycled volume of valuables.

We will further strengthen the environmental activities making use of the results of costs and effects of environmental accounting by department.
We will also make efforts to develop the environmentally-friendly products and promote environmental harmonization in global market utilizing the technical know-how acquired by technical departments in addition to the accumulated technology through the electric household appliance recycling business started in full scale in April last year.
With regard to the environmental accounting, we will further review the calculation standard and endeavor to disclose information of the achievement through environmental activities while aiming to enrich the contents and enhance the accuracy.

(Reference Material)

Results of Costs and Effects