Appended Note 2-1 Corporate Debts by Type of Industry and by Size

1. Quarterly Report on Incorporated Enterprises, Ministry of Finance. Large enterprises are those with capital of ¥100 million or more and small and medium-sized enterprises (SME) are those with capital of less than ¥100 million.

2. Debts = Long- and short-term loans + corporate bonds + balance of bills receivable discount--cash/deposits

3. Value added = Personnel expenses + interest paid + operating profits + depreciation expenses

4. Debts and value added are seasonally adjusted. Value added is on an annualized basis.

5. Excessive debt = Deviation of the "financial debts / values added" ratio in January-March 2001 from the average "financial debts / values added" ratio in 1980~85 multiplied by the values added in January-March 2001.

6. All industries refer to the value of piled-up excessive debts of all sizes of all industries and it different from the value in Figure 2-1-9.

7. Three industries refer to construction, wholesale/retail, and real estate.