Note 1-94

(94) According to listed companies' earnings forecasts for FY2002 (consolidated business results for March-end business year of 1,664 companies, excluding financial institutions, etc. compiled by Nihon Keizai Shimbun as of June 2002), ordinary profits are forecast to increase by 6.4 trillion yen from FY2001 (10.3 trillion yen -> 16.8 trillion yen) and net profits by 9.4 trillion yen (minus 0.4 trillion yen -> 9.0 trillion yen). If tax burden is taken into account, the magnitude of increase of ordinary profits is normally larger than that of net profits. It is believed that the larger improvement in net profits is due to the fact that the corporations forecast a decrease in extraordinary losses. However, in view of the financial institutions' move to promote the disposal of non-performing loans, the possibility that the corporations will be forced to book a greater amount of extraordinary losses cannot be ruled out.