Millea Holdings, Inc. (the "Company") hereby announces that it has revised its previous forecast of its consolidated business results under Japanese GAAP for the fiscal year ended March 31, 2003 (from April 1, 2002 to March 31, 2003) as follows. The previous forecast was made public on December 3, 2002.
1. Revised forecast of consolidated business results for the fiscal year ended March 31, 2003 (Billion yen)
| | Ordinary income | Ordinary profit | Net income |
| Previous forecast (A) | 2,825 | 148 | 88 |
| Revised forecast (B) | 2,930 | 100 | 56 |
| Difference (B-A) | 105 | - 48 | - 32 |
| Rate of increase / decrease | 3.7 % | - 32.4 % | - 36.4 % |
2. Reasons for the revision | (A) | Due to the impact of declines in the Japanese stock market, the Company expects to incur a loss on devaluation of securities in the amount of approximately 110 billion yen for the fiscal year ended March 31, 2003. |
| (B) | In preparing its consolidated financial statements for the year ended March 31, 2003, the Company has adopted the purchase method of accounting as defined in the "Accounting Committee Research Report No.6 Consolidation Procedures for Full Parent-subsidiary Relationship Established Utilizing Share Exchange and Transfer System (Japanese Institute of Certified Public Accountants, August 31, 2000, last amended February 14, 2001)." As a result, the amount of the loss on devaluation of securities is computed using the book value of those securities for purposes of applying the purchase method of accounting. Accordingly, while the Company expects to incur a loss on devaluation of securities on a consolidated basis for the fiscal year ended March 31, 2003, it does not expect a corresponding loss to be reflected in the non-consolidated financial statements of its subsidiaries. |
The Company does not expect to revise its previous forecasts of business results for its subsidiaries, The Tokio Marine and Fire Insurance Company, Limited and The Nichido Fire and Marine Insurance Company, Limited, for the fiscal year ended March 31, 2003.
