A n n u a l R e p o r t 2002 Y e a r E n d e d M a r c h 3 1 , 2 0 0 2

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Nichicon Corporation specializes in the development, manufacture, and marketing of capacitors, essential

components for a broad range of electronics.

Since 1950 when Nichicon commenced the manufacture of capacitors for power utilities in Kusatsu

City, Shiga Prefecture, the company has been extending its business scope in line with the development

of electronics. The company has grown into four business segments: Capacitors for Electronics,

Circuit Products, Capacitors for Electric Apparatuses and Power Utilities, and Others, which include

capacitor-related products.

During the current term, Nichicon has been implementing organizational reform to establish a business

structure for attaining improvements in our response to customer needs, while at the same time strengthening

business footholds in overseas markets by establishing new companies in Europe and China.

Nichicon is focusing its energies on product development to increase its share of other growing

markets. For example, it strives to accumulate technologies for automobile markets, in which hybrid

cars and other vehicles for the next generation are receiving attention. In addition, attention is being

paid to the information and communications markets, which are seeing the remarkably active development

of new models.

Profile

Nichicon’s R & D group, through the close

collaboration of its related groups, Production

and Sales strives for early commercialization

of new technologies and reinforcement of the

development system in order to meet customer

demands for increased sophistication.

As examples of achievements arising from

such efforts, Nichicon has developed various products and technologies

constituting firsts in Japan and the world. These include microminiature

or ultrahigh reliability products, as well as environmental load

reduction technology, which was put into commercial use.

Nichicon hopes to contribute toward creating an affluent society

while pursuing perfect customer satisfaction through taking full

advantage of advanced core technologies.

Profile

Financial Highlights

To Our Shareholders

Focus on R & D

Review of Operations

Capacitors for Electronics

Circuit Products

Capacitors for Electric Apparatus and Power Utilities

Others

News & Topics

Financial Section

Financial Review

Consolidated Balance Sheets

Consolidated Statements of Income

Consolidated Statements of Shareholders’ Equity

Consolidated Statements of Cash Flows

Notes to the Consolidated Financial Statements

Report of Independent Certified Public Accountants

Consolidated Subsidiaries

Corporate Data

Investor Information

C o n t e n t s

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8

10

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12

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Forward Looking Statements

Projections of operating results and changes in the operating environment are based on information available to management at the time this report was prepared. As such, these projections entail risks and uncertainties. Readers should be aware that actual results and events may differ substantially from these projections.

Cover :

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¥ 105,892 5,080 5,333 2,988

16,046 14,619

157,546 119,825

¥ 36.88 13.00

1,483.04

76.1% 2.5

¥ 121,201 10,280 11,898 6,703

25,929 13,026

174,901 119,603

¥ 80.06 13.00

1,453.78

68.4% 5.7

¥ 106,246 8,032 5,802 2,927

20,919 10,092

153,748 114,626

¥ 34.89 12.00

1,367.48

74.6% 2.6

¥ 103,123 11,544 12,390 5,377

10,581 7,923

142,582 111,056

¥ 63.92 12.00

1,319.82

77.9% 4.9

¥ 105,774 15,489 16,337 7,824 9,920 7,664

143,608 106,861

¥ 93.01 14.00

1,270.35

74.4% 7.6

$ 797,918 38,276 40,184 22,517

120,910 110,157

1,187,144 902,910

$ 0.28 0.10

11.18

76.1% 5.7

2002 2001 2000 1999 1998 2002

Yen U.S. dollars

For the year : Net sales Operating income Income before income taxes and minority interest Net income Capital expenditures Depreciation and amortization

At year-end : Total assets Shareholders’ equity

Per share of common stock : Net income (yen) Cash dividends (yen) Shareholders’ equity (yen)

Shareholders’ equity ratio Ratio of net income to shareholders’ equity

Notes: 1. Amounts less than 1 million yen have been rounded down. 2. The U.S.dollar amounts are provided solely for convenience at the rate of ¥132.71 to U.S. $1, the approximate exchange rate at March 31, 2002. 3. Certain reclassifications of previously reported amounts have been made to conform with current classifications.

NICHICON CORPORATION AND CONSOLIDATED SUBSIDIARIES Years ended March 31

Financial Highlights

Net Sales (Millions of Yen)

Net Income (Millions of Yen)

Total Assets (Millions of Yen)

Operating Income (Millions of Yen)

Capital Expenditures (Millions of Yen)

Total Shareholders’ Equity (Millions of Yen)

Millions of Yen Thousands of U.S. dollars

120,000

100,000

80,000

60,000

40,000

20,000

0 1998/3 1999/3 2000/3 2001/3 2002/3

105,774 103,123 106,246

121,201

105,892

8,000

1998/3 1999/3 2000/3 2001/3 2002/3

2,000

6,000

4,000

7,824

5,377

2,927

6,703

2,988

0

180,000

150,000

120,000

90,000

60,000

30,000

0 1998/3 1999/3 2000/3 2001/3 2002/3

143,608 142,582 153,748

174,901

157,546

8,000

16,000

1998/3 1999/3 2000/3 2001/3 2002/3

4,000

12,000

15,489

11,544

8,032

10,280

5,080

0

30,000

25,000

20,000

15,000

10,000

5,000

0 1998/3 1999/3 2000/3 2001/3 2002/3

9,920 10,581

20,919

25,929

16,046

120,000

100,000

80,000

60,000

40,000

20,000

0 1998/3 1999/3 2000/3 2001/3 2002/3

106,861 111,056

114,626 119,603 119,825

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To Our Shareholders

NICHICON CORPORATION President & C.E.O.

Ippei Takeda

The uncertainty over the future of the economic climate in this country has been amplified over this term (the year ended March 31, 2002). Along with the decline in exports influenced by the concurrent slowdown of the global economy that was triggered by the deterioration of business in IT-related industries, we also have felt the impact of the September 11 terrorist attacks in the U.S. As a result, capital investment in the private sector decreased, the overall unemployment rate increased and individual consumption slumped. In such circumstances, the electronic and electrical industry has also been suffering from the slump in demand and the drop of sales prices at home and abroad. Against the backdrop of this challenging business environment, the entire Nichicon Group, with an eye towards becoming a global winner in the electronic component industry, took action. Efforts were concentrated on cost reduction by cutting fixed costs and improving productivity, reconstruction of the production and sales system both in Japan and overseas and expansion and enrichment of its product development system. This year, we took a great step forward toward effective management, strong competitiveness, and improvement in customer satisfaction through these strategies. However, we cannot deny that fiscal 2002 was a very harsh year in terms of business performance. Consolidated net sales came in at ¥105,892 million. This, a 12.6% decline from the previous term, is the result of a slump in demand that began in the latter part of Q2 and harsh competition at home and abroad. Although there were some positive factors, such as an improvement in productivity and depreciation of the yen in the latter half of the year, resulting profits were not great. The consolidated operating income and the consolidated net income decreased to ¥5,080 million (a decline of 50.6% from the previous term) and ¥2,988 million (a 55.4% decline from the previous term), respectively, owing to the decline in sales and drop of sale prices.

Focusing on increasing management efficiency, competitiveness, and customer satisfaction in this severe business environment.

Achievements of the Current Term

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Fighting hard in adverse circumstances through organizational reinforcement and directing energies to several promising markets.

Implementation of three business policies in order to be a winner under the current state of adverse circumstances and increase corporate value for our shareholders.

The factories of many listed companies, especially ones in