| June 6, 2003 |
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| Company Name: |
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ISEKI & CO., LTD. |
| Company representative: |
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Hiroyuki Nakano, President |
| Company code: |
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6310 |
| Stock Exchange Listings: |
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First Section, Tokyo Stock Exchange |
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First Section, Osaka Securities Exchange |
| Enquiries: |
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Kazuyoshi Sonoda, Director
(Telephone: +81-3-5604-7710) |
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| To whom it may concern, |
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Notice concerning partial devolution of subsidiary's operations
and formation of new business alliance |
| Iseki & Co., Ltd. and Isec Co., Ltd., one of Iseki's consolidated subsidiaries,
hereby give notice that decisions were resolved at respective meetings of the
boards of directors, on June 6, 2003, to devolve to NTT Auto Leasing Co., Ltd.,
the vehicle leasing component of Isec Co., Ltd.'s leasing business operations,
and also to form a new business alliance with the aforementioned company for the
vehicle lease business for the Iseki Group. An agreement on the basic terms was
also signed on this date. Details are as follows. |
| 1. |
Reason for devolution of business |
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The Iseki Group has decided to devolve the operations and subsequently enter
into an agreement for a new business alliance in order to reduce our interest-bearing
liabilities and also to improve our consolidated financial position. |
| 2. |
Subsidiary overview |
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(1) |
Company name |
Isec Co., Ltd. |
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(2) |
Principal activities |
Purchasing installment loans, Financing business activities, Leasing, Brokering
insurance, Selling general merchandise |
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(3) |
Date of foundation |
August 25, 1984 |
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(4) |
Head office |
3-14, Nishi-Nippori 5-chome, Arakawa-ku, Tokyo, Japan |
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(5) |
Representative |
Hachiro Suwa, President |
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(6) |
Capital |
 2,352 million |
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(7) |
Shareholders |
Iseki & Co., Ltd. (100% owned) |
| 3. |
Details of devolution of operations |
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(1) |
Operations to be devolved |
Vehicle leasing |
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(2) |
Operating results of operations to be devolved |
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(Units: millions of yen) |
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| Result as at March 31, 2003 |
| Sales |
616 |
| Gross profit on sales |
79 |
| Lease assets |
455 |
| Lease receivables |
893 |
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(3) |
Assets to be devolved |
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Lease receivables, lease assets, goodwill, etc, related
to vehicle leasing |
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(4) |
Value of devolution and method of payment |
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To be determined |
| 4. |
Details of business alliance |
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Once the abovementioned devolution has been concluded, the Iseki Group will
give priority to NTT Auto Leasing Co., Ltd. when entering new leases for vehicles.
Details will be discussed hereafter. |
| 5. |
Overview of the company receiving
the devolved operations and entering into the new business alliance |
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(1) |
Company name |
NTT Auto Leasing Co., Ltd. |
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(2) |
Principal activities |
Leasing vehicles, renting vehicles, outsourcing service for maintenance |
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(3) |
Head office |
2-9-18 Misaki-cho, Chiyoda-ku, Tokyo, Japan |
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(4) |
Representative |
Tokio Nakajima, President |
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(5) |
Capital |
300 million |
| 6. |
Schedule |
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(1) |
June 6, 2003 |
Meeting of Board of Directors to approve the agreement of basic terms |
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(2) |
June 6, 2003 |
Signing of agreement of basic terms |
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(3) |
end of August 2003 (tentative) |
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Meeting of Board of Directors to approve the Contract to devolve operations
and the basic contract concerning the business alliance
Signing of both contracts
Settlement date for devolution of operations
Start date for new alliance |
| 7. |
Future outlook |
| (1) |
By devolving these operations, Isec Co., Ltd. is proposing to repay its interest-
bearing liabilities. Herewith we plan to achieve a real reduction in the consolidated
interest-bearing liabilities and make an even greater improvement to the consolidated
financial position. |
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| (2) |
Outlook for performance of group following devolution
At this stage, it is still undetermined what effect the transfer of income and
expenses which are attributable to the devolved operations will have upon consolidated
performance. |
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