デュエルビッツ カジノ デュエルビッツ カジノ
デュエルビッツ カジノ

デュエルビッツ カジノL'S FINANCIAL HIGHLIGHTS FOR FISCAL 1996

デュエルビッツ カジノl, Ltd.                   Media contact: Gary Tsuchida
Tokyo, Japan                       tel (03) 3218-6055
Tokyo Stock Exchange No. 5406      fax (03) 5252-7961
                                   e-mail www-admin@kobelco.co.jp

デュエルビッツ カジノL'S FINANCIAL HIGHLIGHTS FOR FISCAL 1996
(unaudited, April 1, 1996 - March 31, 1997)

NON-CONSOLIDATED FINANCIAL SUMMARY
デュエルビッツ カジノ6
デュエルビッツ カジノ5
% change
Net sales 1,141,965
1,146,356
(0.4%)
Operating income 80,030
100,012
(20.0%)
Ordinary income* 26,665
36,043
(26.0%)
Net income 21,689
69,324
(68.7%)

CONSOLIDATED FINANCIAL SUMMARY
デュエルビッツ カジノ6
デュエルビッツ カジノ5
% change
Net sales 1,533,459
1,476,968
3.8%
Operating income 97,534
137,293
(29.0%)
Ordinary income* 20,980
58,795
(64.3%)
Net income 17,505
90,313
(80.6%)

* also known as pretax recurring profit

Figures in parentheses denote decreases.

Figures are in millions of yen unless otherwise noted.



デュエルビッツ カジノL'S NON-CONSOLIDATED FINANCIAL RESULTS FOR FISCAL 1996

TOKYO (May 22, 1997) -- The Japanese economy continued its modest recovery
supported by government economic stimulus measures デュエルビッツ カジノe first half of the fiscal year,
record low interest rates, and a correction デュエルビッツ カジノe high yen. Despite these positive
 factors,
full recovery did not materialize.

デュエルビッツ カジノis environment, Kobe Steel focused on maximizing sales, rapidly recovering from the
Great Hanshin Earthquake, and eliminating its accumulated deficit under the 1995-1997
Management Plan. Through lowering production costs, decreasing the workforce, and
reducing total assets, デュエルビッツ カジノl was able to achieve its cost reduction goals one year
ahead of schedule. In fiscal 1996, デュエルビッツ カジノl was able to eliminate its accumulated
deficit incurred デュエルビッツ カジノe quake.

Non-consolidated net sales were 1,141,965 million yen, nearly the same as デュエルビッツ カジノe previous
fiscal period, despite the steel tube and cutting tool businesses having become
subsidiaries. Ordinary income (also known as pretax recurring profit) decreased to
26,665 million yen due to lower performance デュエルビッツ カジノe Machinery and Information Sector.

Extraordinary loss on the revaluation of marketable securities and other items was offset
by a gain on the sale of assets. As a result, net income amounted to 21,689 million yen.
デュエルビッツ カジノl was able to eliminate its accumulated deficit of 16,298 million yen and
recorded unappropriated retained earnings of 5,391 million yen デュエルビッツ カジノe period under
review.

In fiscal 1997, the Japanese economy is expected to be stimulated by firm capital
investment spending. However, weak personal spending following the April, 1997
consumption tax increase and the discontinuation of special tax reductions, combined
with a shrinking public works budget, will hinder prospects for a full-scale recovery.

From a global perspective, the rise of China and Southeast Asia デュエルビッツ カジノe world market has
produced an era of great competition, encompassing Japan as well as western nations.
Within Japan, stiff price competition, the hollowing out of the industrial base, and market
deregulation are causing the nation
's economic structure to change rapidly.

Responding to these changes, Kobe Steel implemented a new management plan in April
called
"KOBELCO-21," incorporating the 1997-1999 Action Plan.

Through this plan, デュエルビッツ カジノl aims for product excellence in its current businesses.
Cost reduction, rationalization of distribution systems, and optimum production systems
both in and outside Japan are aimed at strengthening its international competitiveness
and maintaining stable profitability. The company also places a high priority on
fostering new businesses with future potential, applying management resources to fields
in which the company excels.

By applying the new management plan to all areas of its operations, デュエルビッツ カジノl is aiming
to create a solid management base capable of facing the challenges of the 21st century.




NON-CONSOLIDATED SECTOR PERFORMANCE

Sales デュエルビッツ カジノe Iron and Steel Sector were 506,008 million yen, up 1.2% from 499,949 million yen
デュエルビッツ カジノe previous period. デュエルビッツ カジノe domestic market, demand デュエルビッツ カジノe first half of the year was
lackluster as inventory adjustments continued. デュエルビッツ カジノe second half, the increase デュエルビッツ カジノe
consumption tax from April, 1997 boosted demand and a moderate rise in capital
investment also contributed to firm demand, primarily デュエルビッツ カジノe automotive and
construction markets.

Sales volume rose slightly owing to higher shipments デュエルビッツ カジノe domestic market. Exports
declined as shipments to mainly China fell. Domestic sales prices went down in
comparison to the same period last year due to the sluggish market primarily デュエルビッツ カジノe first
half of the fiscal year. Although export prices on a dollar basis went down due to the
 soft
overseas market, they rose in yen terms owing to the weaker yen.

デュエルビッツ カジノe Aluminum and Copper Sector, sales dipped 2.2% to 264,678 million yen, from
270,558 million yen in fiscal 1995. Rolled aluminum sales were nearly the same as in
the previous fiscal period with firm demand for can stock and aluminum computer disk
blanks. Rolled copper products registered a slight decline, as demand デュエルビッツ カジノe
semiconductor field went down.

デュエルビッツ カジノe Machinery and Information Sector, sales dipped 1.2% to 371,278 million yen,
versus 375,848 million yen in fiscal 1995. Sales rose for overseas plant projects and
construction machinery. However, turning the cutting tool business into a subsidiary
and lower demand デュエルビッツ カジノe semiconductor field contributed to the overall decrease in sales.

DIVIDENDS

デュエルビッツ カジノl's Board of Directors has decided to propose at the annual shareholders'
meeting that no year-end dividends be paid. While the accumulated deficit has been
eliminated, the amount of unappropriated retained earnings is deemed to be insufficient.
デュエルビッツ カジノl regrets having to take this measure and aims for the early resumption of
dividend payments.

Notes

i. Sums of less than 1 million have been omitted.
ii. Average number of shares in デュエルビッツ カジノ6 and デュエルビッツ カジノ5: 2,835,437,000
iii. Number of shares issued in デュエルビッツ カジノ6 and デュエルビッツ カジノ5: 2,835,437,000
iv. No changes have been made in accounting policies.
v. Under the Commercial Code and in common with most of the Japanese companies
whose shares are listed on Japanese stock exchanges, デュエルビッツ カジノl has adopted 1,000
shares as 1 unit of shares.
vi. The difference between the market value of marketable securities and the balance
sheet amount of the securities as of March 31, 1997 was 42,804 million yen of unrealized
gain.
vii. The difference between the market value of derivatives and the contract amount as
of March 31, 1997 was an unrealized loss of 2,267 million yen.




1.1 SUMMARY OF FISCAL 1996 NON-CONSOLIDATED FINANCIAL RESULTS
(in millions of yen)
デュエルビッツ カジノ6
デュエルビッツ カジノ5
% change
FY96/95
% change
FY95/94
Net sales 1,141,965
1,146,356
(0.4%) 7.6%
Export sales 210,067 196,423 6.9%
Percentage of export
sales to net sales

18.4%

17.1%


Operating income 80,030 100,012 (20.0%)
75.1%
Ordinary income* 26,665 36,043 (26.0%)
---
Income before income taxes 27,689 71,624

Net income 21,689 69,324 (68.7%)
---
Net income per share 7.64 yen
24.44 yen


Fully diluted earnings per share
---
---


Return on average equity 5.4% 19.6%

Ordinary income/total liabilities & stockholders' equity
1.5%

1.9%




Ordinary income/net sales 2.3% 3.1%

SALES BY SECTOR
デュエルビッツ カジノ6
デュエルビッツ カジノ5
% change
FY96/95
Iron & Steel 506,008 499,949 1.2%
Aluminum & Copper 264,678 270,558 (2.2%)
Machinery & Information 371,278 375,848 (1.2%)
Total 1,141,965 1,146,356
1.2 DIVIDENDS
デュエルビッツ カジノ6
デュエルビッツ カジノ5
Dividends per share
-0-
-0-
Dividends
-0-
-0-
Payout ratio
-0-
-0-
Dividends/stockholders' equity
-0-
-0-
1.3 FINANCIAL POSITION
デュエルビッツ カジノ6
デュエルビッツ カジノ5
Total assets 1,777,349
1,824,211
Total stockholders' equity 409,165 387,475
Stockholders' equity/total assets 23.0% 21.2%
Stockholders' equity per share 144.30 136.65

2. NON-CONSOLIDATED FORECAST FOR FISCAL 1997 (ending March 1998)
Half-year
Full year
Net sales 560,000 1,150,000
Ordinary income* 10,000 27,000

Notes
* Ordinary income is also known as pretax recurring profit.
Figures in parentheses denote decreases.


デュエルビッツ カジノL'S CONSOLIDATED FINANCIAL RESULTS FOR FISCAL 1996
(unaudited, April 1, 1996 - March 31, 1997)

TOKYO (May 22, 1997) -- デュエルビッツ カジノl, Ltd.'s consolidated net sales for fiscal 1996 rose to
1,553,459 million yen, an increase of 3.8% over the previous fiscal period. Sales from
US-based companies increased, while decreasing for semiconductor-related firms.

Ordinary income (also known as pretax recurring profit) dropped to 20,980 million yen.
Lower parent-company profits as well as sharp decreases デュエルビッツ カジノe performance of
semiconductor-related companies contributed to the lower profitability. Consolidated
net income was 17,505 million yen.

1.1 SUMMARY OF FISCAL 1996 CONSOLIDATED FINANCIAL RESULTS
デュエルビッツ カジノ6
デュエルビッツ カジノ5
% change
FY96/95
% change
FY95/94
Net sales 1,533,459
1,476,968
3.8% 10.6%
Operating income 97,534 137,293 (20.9%) 49.9%
Ordinary income* 20,980 58,795 (64.3%) --
Income before income taxes 20,973 102,722

Net income 17,505 90,313 (80.6%) --
Net income per share 6.17 yen
31.85%

Fully diluted earnings
per share

--

--


Return of average equity 4.7% 25.6%

Ordinary income/total liabilities
& stockholders' equity

0.9%

2.5%


Ordinary income/net sales 1.4% 4.0%


1.2 FINANCIAL POSITION
デュエルビッツ カジノ6
デュエルビッツ カジノ5
Total assets 2,338,122
2,371,292
Total stockholders' equity 370,258 352,207
Stockholders' equity/total assets 15.8% 14.9%
Stockholders equity per share 130.58 yen 124.21

1.3 SCOPE OF CONSOLIDATION
Consolidation is based on 109 significant, majority-owned subsidiaries and 51 significant
affiliates.

MAJOR CONSOLIDATED SUBSIDIARIES EQUITY-VALUED AFFILIATES
Shinko Kenzai, Ltd. Nippon Koshuha Steel Co., Ltd.
Sun Aluminium Industries, Ltd. Shinko Electric Co., Ltd.
Shinko Pantec Co., Ltd. NABCO Ltd.
Kobelco Construction Machinery Co., Ltd. Shinsho Corporation
Yutani Heavy Industries, Ltd.
KTI Semiconductor, Ltd.
Shinko Lease Co., Ltd.

Number of non-consolidated subsidiaries: 55 (none of which are equity-valued)
Number of affiliates: 58 (51 of which are equity-valued)

1.4 CHANGES IN CONSOLIDATION POLICY
New consolidated subsidiaries: 7
Consolidated subsidiaries excluded: 1
New equity-valued affiliates: 3
Equity-value affiliates excluded: 0

2. CONSOLIDATED FORECAST FOR FISCAL 1997 (ending March 1998)
Net sales: 1,580,000
Ordinary income*: 33,000

3. SEGMENT INFORMATION (in millions of yen)


デュエルビッツ カジノ6
デュエルビッツ カジノ5
Sales to customers: Iron & Steel 554,994 515,784

Aluminum & Copper 335,249 316,156

Machinery 510,878 451,461

Electronics & Information 62,730 114,343

Other businesses 69,605 79,223

Consolidated net sales 1,533,459
1,476,968




Inter-segment sales: Iron & Steel 9,495 10,229

Aluminum & Copper 1,226 1,362

Machinery 9,854 12,398

Electronics & Information 13,565 3,357

Other businesses 35,391 21,018

Total 69,533 48,365




Total sales: Iron & Steel 564,490 526,013

Aluminum & Copper 336,476 317,518

Machinery 520,733 463,860

Electronics & Information 76,295 117,700

Other businesses 104,997 100,241

Eliminations (69,533) (48,365)

Consolidated net sales 1,533,459
1,476,968




Operating expenses: Iron & Steel 511,417 470,713

Aluminum & Copper 316,104 294,321

Machinery 490,214 427,222

Electronics & Information 86,261 102,098

Other businesses 98,313 91,506

Eliminations (66,387) (46,188)

Consolidated operating expenses 1,435,924
1,339,674




Operating income: Iron & Steel 53,073 55,299

Aluminum & Copper 20,371 23,197

Machinery 30,518 36,637

Electronics & Information (9,966) 15,601

Other businesses 6,683 8,734

Eliminations (3,145) (2,177)

Consolidated operating income 97,534 137,293

4. SEGMENT INFORMATION BY GEOGRAPHICAL AREA
In fiscal 1995, sales from consolidated overseas subsidiaries and the value of the assets of
consolidated overseas subsidiaries were not deemed significant and were not reported.

SEGMENT INFORMATION OF OVERSEAS COMPANIES-FISCAL 1996
(in million of yen)
Sales to customers: Domestic 1,373,849

Overseas 159,610

Eliminations
--

Consolidated net sales 1,533,459



Inter-segment sales: Domestic 36,067

Overseas 8,187

Eliminations (44,255)

Total
--



Total sales: Domestic 1,409,917

Overseas 167,798

Eliminations (44,255)

Consolidated net sales 1,533,459



Operating expenses: Domestic 1,324,082

Overseas 157,123

Eliminations (45,281)

Consolidated operating expenses 1,435,924



Operating income: Domestic 85,834

Overseas 10,674

Corporate and eliminations 1,026

Consolidated operating income 97,534


Assets: Domestic 1,951,301

Overseas 207,562

Corporate and eliminations 179,258

Total 2,338,122

  1. TOTAL OVERSEAS SALES (in millions of yen)


デュエルビッツ カジノ6
デュエルビッツ カジノ5
Overseas sales 339,359 349,247
Consolidated net sales 1,533,459
1,476,968
Percentage of overseas sales to net sales 22.1% 23.6%

("Total overseas sales" consist of sales of デュエルビッツ カジノl, Ltd. and its consolidated
subsidiaries derived from outside of Japan.)

NOTES
i. * Ordinary income is also known as pretax recurring profit
ii. In fiscal 1996 the equity value of the net income of affiliates was 1,178 million yen.
In fiscal 1995, the equity value of the net income was 2,385 million yen.
iii. Sums of less than 1 million have been omitted.
iv. No changes have been made in accounting policies.

ADDITIONAL INFORMATION
By the end of September 1997, デュエルビッツ カジノl intends to send annual reports for fiscal 1996
to its overseas shareholders through their proxies in Japan. This report will also be
available upon request from:

デュエルビッツ カジノl, Ltd.
Investor Relations
8-2, Marunouchi 1-chome
Chiyoda-ku, Tokyo 100 Japan
tel (03) 3218-6882

デュエルビッツ カジノl Europe Ltd.
Alton House
174/177 High Holborn
London WC1V 7AA
United Kingdom
tel (0171) 836-1225

デュエルビッツ カジノl USA Inc.
535 Madison Ave.
New York, NY 10022 USA
tel (212) 751-9400

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