City City of of KawasakiKawasaki

Investor Presentation October 2008

Municipal Bond Subdivision

Financial Affairs Department City of Kawasaki

1

KawasakiKawasaki JapanJapan

Number of Households

640,241(as of Aug 1, 2008)

48.2 million(as of Oct. 1, 2005)

Area 144.35 km2 377,929.99 km2

GDP4,704.5 billion yen

(2003)503 trillion yen

(2005)

MajorIndustriesof Kawasaki

Manufacturing (Electronics & Telecommunications, Precision Machinery, Petrochemistry), and

Information Service Industries

DevelopingIndustriesof Kawasaki

New Manufacturing Technologies;Information and Telecommunications; Environmental;

Heath, Welfare, and Life Science;and Lifestyle and Cultural Industries

Registered ForeignResidents

28,775(117 nationalities)

(as of Dec. 31, 2006)

2,084,919(as of Oct 1, 2006)

Number of Foreign Affiliated Companies

115(with 83 headquarters, fifth-largest in Japan)

3,500

1. Investment Environment of Kawasaki1. Investment Environment of Kawasaki

KawasakiKawasaki JapanJapan

Population

1,389,059(as of Aug 1, 2008)

It corresponds to the population ofMunich (Germany),

Milano (Italy)

127.8 million(as of Oct. 1, 2005)

Population Growth Rate

6.2% (2005)(Rate of increase/

decrease of population from 2000 to 2005)

0.7% (2005)( Rate of increase/

decrease of population from 2000 to 2005 )

Average Age

40.7 (as of Oct. 1, 2007)

43.9(as of Oct. 1, 2005)

Labor ForcePopulation

730,600(2005)

65.5 million(2005)

2

2. Five Major Advantages of Investing in Kawasaki2. Five Major Advantages of Investing in Kawasaki

11 Convenient Access

22 Huge Market Potential

33 Excellent Track Record of Companies Sited in Kawasaki

44 Three Science Parks Giving Rise to New Businesses

55 Outstanding Cultural and Life Environment

3

• Easy Access to AirportsIt takes 90 min. to Narita and only 13 min. to Haneda (by train)

• Extensive Rail and Road NetworkIt takes 18 min. to Tokyo and 10 min. to Yokohama (by train)

• Further Expansion and Internationalization of Haneda Airport

(services tentatively scheduled to begin in 2010)Expand the departure and arrival capacities by 1.4 times.Begin regular, short-range international flight services.Expand international freight services.The “Kanagawa-Haneda International Airport Linking Project”aims to create a new base for exchange by constructinga new access route to Haneda Airport from Kawasaki (Kanagawa Prefecture), known as “the Kanagawa Gate”.

• New Station To Be Built By 2010(Shin Musashi-Kosugi Station on JR Yokosuka line)

Will reduce travel time between Kawasaki and Tokyo and Yokohama.

Advantage 1 – Convenient AccessAdvantage 1 – Convenient Access

Container TerminalPort of Kawasaki

Haneda Airport

Located immediately adjacent to Tokyo and Yokohama

Kawasaki is the center of the Tokyo metropolitan area, the largest consumer market in Japan!

Advantage 2 – Huge Market PotentialAdvantage 2 – Huge Market Potential

Runway C

International flights area

Runway B

Passenger Term

inal 1

Passenger Term

inal 2

Runway A

Tama River

Connecting taxiway

Tokyo B

ay

New runway

4

JFE Steel

Nisshin Seifun

Mitsubishi FusoTruck & Bus

Showa Denko

Kao

Tonen General Sekiyu

Tokyo Electric Power

Nippon ZEON

Nippon Oil

YAKIN Kawasaki

Advantage 3 – Excellent Track Record of Companies Sited in KawasakiAdvantage 3 – Excellent Track Record of Companies Sited in Kawasaki

TycoElectronics

AMP

Product Development Center

Information and Telecommunication Systems, Systems Development Kawasaki Laboratory

Headquarters, Kawasaki Plant

Tamagawa Office, Chuo Research Laboratories

Toshiba Research and Development CenterSoftware Engineering CenterKomukai PlantKomukai SA System PlantHamakawasaki PlantMicroelectronics Center

Kawasaki Office (Plant)Intellectual Property CenterTechnology and Engineering CenterLife Science LaboratoriesResearch Institute for Health FundamentalsProcessed Food Development and Technology CenterSeasoning Development and Technology CenterApplication CenterAminoScience CenterFermentation and Biotechnology LaboratoriesProduction Control CenterPharmaceutical Research Laboratories

Kawasaki PlantResearch and Development Center

Kawasaki Factory

Kawasaki Plant

Kawasaki Plant, Tonen Chemical Corp. Kawasaki Plant, Chuo Research and Development Center

Kawasaki Thermal Power StationHigashi-Ogijima Thermal Power Station

JFE Higashinihon

Kawasaki Office,Kawasaki Natural Gas Power Plant

Kawasaki Natural Gas Power Plant

Tsurumi Plant

Kawasaki OfficeR&D CenterProduction Technology Center

Yako OfficeTamagawa OfficeKosugi OfficeTechnology Development Center

R&D Center

Headquarter

Gunma Pref.

Saitama Pref.

TokyoYamanashi

Pref.

ShizuokaPref.

Kanagawa Pref. Chiba Pref.

Ibaraki Pref.

Tochigi Pref.

Kawasaki City

5

Advantage 4 –Three Science Parks Giving Rise to New Businesses

Advantage 4 –Three Science Parks Giving Rise to New Businesses

The first science park in Japan (established in 1989) andone of the largest technology incubators in Japan.It has 118 companies (as of Jan. 2006).http://www.ksp.or.jp/english/

Kanagawa Science Park (KSP)Kanagawa Science Park (KSP)

Academic-industrial alliance-typed science park.• Kawasaki Business Incubation Center (KBIC)• Keio University Shin-Kawasaki Town Campus (K2)

It has 21 companies and 7 laboratories (as of Jul. 2006).http://www.kawasaki-net.ne.jp/kbic/index-en2.htm

ShinShin--Kawasaki Science Park (KBIC, K2)Kawasaki Science Park (KBIC, K2)

Private-sector-led science park.Custom-made research space available.It has 55 companies (as of Mar. 2006).http://www.techno-hub-innovation.com/

Techno Hub Techno Hub INnovationINnovation Kawasaki (THINK)Kawasaki (THINK)

6

• City of Music and CinemaMUZA Kawasaki Symphony Hall andcinema complexes

• Growing number of new commercial establishmentsLazona Kawasaki Plaza (opened on Sept. 28, 2006)(about 300 tenants including a cinema complex, home appliance and general merchandise store, mega book store, restaurants and cafes)

Advantage 5 – Outstanding Cultural and Life EnvironmentAdvantage 5 – Outstanding Cultural and Life Environment

MUZA Kawasaki Symphony Hall (left)

MUZA Kawasaki Central Tower (right)

7

3. Developing Industries of Kawasaki – The Environment3. Developing Industries of Kawasaki – The Environment

Present

• Highlights1. The city has experience in overcoming pollution problems

2. Accumulation of companies with excellent environmental technologies

• Related News1. Approved as a “Special International

Environmental District” (May 2003)

2. Operation of the Zero-Emission Industrial Complex (Nov. 2002)

3. Holding of “Eco Industries Forum” (from Jul. 2005)

4. Approved as an “Eco-Town” (from Jul. 1997)

Keihin Waterfront Districtin the period of rapid growth (around 1970)

8

4. Developing Industries of Kawasaki – IT4. Developing Industries of Kawasaki – IT

• HighlightsAccumulation of world-famous IT companies such as NEC, Canon, Hitachi, Fujitsu, Dell and IBM.

• Related News1. Completion of “NEC Tamagawa Renaissance City” (May 2005)

(In order to strengthen the research and technology development structure,NEC compressed its sites into this intelligent building.)

2. Establishment of Canon’s R&D basein Kawasaki (currently in progress)

3. Relocation of Pioneer’s base ofhome electronics (spring 2007)

NEC Tamagawa Renaissance City*NEC press release

9

• Highlights1. Accumulation and network of bio/life-science related companies

(1) Setting up of “Kawasaki Life Science Network Meeting” (Oct. 2003)

Encourages meeting between industries and industry and academia.

A total of 91 groups and 185 persons participated (FY 2005).

(2) Setting up of “Kawasaki Salon for Scientists” (Apr. 2006)

Established as a base for sharing knowledge

and fostering of a R&D mindset.

2. Promotion of the health science industry around the “Kanagawa

Gate” of Haneda Airport

Attraction of high-tech medical facilities; and genome, bio, and allergy research institutes

and incubation facilities.

• Related News1. Siting of NEDO’s* head office in Kawasaki (Feb. 2004)

* The New Energy and Industrial Technology Development Organization. It is Japan's largest public R&D management organization for

promoting the development of advanced industrial, environmental, new energy and energy conservation technologies.

2. Expansion of Ajinomoto’s function related to the life science industry (currently in progress)

5. Developing Industries of Kawasaki – Life Science5. Developing Industries of Kawasaki – Life Science

10

Potential of Kawasaki City

130

133135

137

140

144146 147 146

125

130

135

140

145

150

2005 2006 2007 2008 2010 2015 2020 2025 2030

出典：川崎市将来推計人口調査

（万人）

人口1人あたり課税対象所得額（平成18年度）

1.99 1.98

1.85 1.83

1.75

1.621.57 1.56 1.55

1.52 1.521.49

1.38 1.37 1.36 1.35

1.24

1.0

1.2

1.4

1.6

1.8

2.0出典：2008年版個人所得指標

（百万円）

Actual numbers are those as of Jan. 1

predictionActual numbers

東京都

横浜市

川崎市川崎市

Tokyo

Yokohama

Unit: 10,000 Transition and prediction of population

Source: Kawasaki City FuturePopulation Estimates

Taxable income per capita (Fiscal 2006)Unit: ¥1 million

Source: 2008 Personal Income Index

Kaw

asaki

Yokoham

a

Nagoya

Saitama

Chiba

Ham

amatsu

Hiroshim

a

ShizuokaK

obe

Sendai

Fukuoka

Kyoto

Sakai

Sapporo

Niigata

Osaka

Kitakyushu

Kawasaki

11

51.1%42.5%

2.2%7.9%

13.0% 14.9%

10.7% 9.9%

23.0% 24.8%

0%

25%

50%

75%

100%

その他

市債

国庫支出金・都道府県支出金

地方譲与税・地方交付税

市税

0.681

0.835

1.016

1.060

0.974

0.934

1.022

0.720

0.929

0.799

0.690

0.794

0.686

0.830

1.004

0.5

0.6

0.7

0.8

0.9

1.0

1.1

札幌市

仙台市

さいたま市

千葉市

川崎市

横浜市

静岡市

名古屋市

京都市

大阪市

堺市

神戸市

広島市

北九州市

福岡市

Comparison of Kawasaki’s financial situation with other ordinance-designated cities

Strong tax revenue base

Comparison based on fiscal 2006 reports on closing accounts

FY2005-07 average

Others

Municipal bond

Treasury disbursement

Prefectural disbursement

Municipal tax

Kawasaki Ordinance-designated cities average

Sapporo

Yokoham

a

Sendai

Saitama

Chiba

Kaw

asaki

Hiroshim

a

Shizuoka

Kobe

Nagoya

Fukuoka

Kyoto

Sakai

Kitakyushu

Osaka

High ratio of independent source of funds (ordinary account)

Ratio of independent source of funds 68% (ranked 2nd)Ratio of independent source of funds 68% (ranked 2nd)

The number of local public bodies that are not granted ordinary local allocation tax

Financial power index of fiscal 2007: 1.060 (ranked 1st)Financial power index of fiscal 2007: 1.060 (ranked 1st)

Local transfer tax, local grand taxTax allocated to local governments

12

877 890 892 843 890 972 1,110 1,126

181 197 165 187 213 247294

308 291

1,169 1,167 1,150 1,100 1,096 1,0961,049

1,059 1,080

433 420 404 396 395 387391 392

860

430

2,8892,868

2,7022,6282,5482,5512,6272,6872,657

0

500

1,000

1,500

2,000

2,500

3,000

3,500

H12 H13 H14 H15 H16 H17 H18 H19 H20

個人市民税 法人市民税 固定資産税 その他（億円）

36.0%30.2%

10.9%15.4%

38.8%

14.3% 15.1%

39.3%

0%

25%

50%

75%

100%

川崎市 政令指定都市平均

その他

固定資産税

法人市民税

個人市民税

Analysis of taxation structure

Initial and supplementary budgets for FY2007Initial budget for FY2008

Others

Municipal tax on real estate

Municipal tax for corporations

Municipal tax for individuals

Comparison based on fiscal 2006 reports on closing accounts

Kawasaki City Ordinance-designated cities average

Unit: ¥100 million Municipal tax

for individualsMunicipal tax for corporations

Municipal tax on real estate Others

2000 2001 2002 2003 2004 2005 2006 2007 2008

The rate of individual municipal tax is high

Component ratio of individual municipal tax is high. Component ratio of individual municipal tax is high. (Ranked second in ordinance(Ranked second in ordinance--designated cities.)designated cities.)

Transition of municipal tax revenue.Transition of municipal tax revenue.Steadily increasing since fiscal 2004.Steadily increasing since fiscal 2004.

13

Analysis of expenditure structure (ordinary account)

14.5% 16.7%20.4%

15.5%19.6% 18.6% 19.6% 17.5% 17.6% 18.5% 16.4% 14.4% 11.7%

21.0%12.5%

13.2% 14.3%16.2%

16.4%12.5% 15.0%

19.9% 22.9% 25.1%17.1% 20.2%

15.5%16.4%

12.9%

16.0%10.4%

16.5%15.1% 13.4%

14.9%

11.7%13.1% 10.5%

19.9%13.5%

13.3% 16.7%

20.7%18.5%

16.2%

0%

10%

20%

30%

40%

50%

60%

70%

人件費 扶助費 公債費Personnel expense

assistance allowance

public debt expenditure

Sapporo Sendai Saitama Chiba Kawasaki ShizuokaYokohama

High ratio of personnel expenditure compared with other cities is the biggest problemin the city’s structure of expenses

Comparison of ratios of required expenses in annual expenditure

The comparison with other ordinanceThe comparison with other ordinance--designated cities is designated cities is based on fiscal 2006 report on closing accountsbased on fiscal 2006 report on closing accounts

Personnel expense ratio: Ranked 15th out of 15 citiesAssistance allowance ratio: Ranked 7th out of 15 citiesPublic debt expenditure ratio: Ranked 12th out of 15 citiesRequired expenses ratio: Ranked 12th out of 15 cities

Nagoya FukuokaKyoto Osaka Sakai Kobe Hiroshima KitakyushuRequired expenses

ratio48.4% 45.2% 43.9% 49.2% 53.1% 47.0% 45.5% 48.5% 51.3% 53.5% 53.2% 55.6% 50.1% 43.1% 44.7%

14

Current account ratio, Primary balance

The comparison with other ordinance-designated cities is based on fiscal 2006 report on closing accounts

93.2%

84.2%

85.5%

91.4%

83.5%

94.7%

99.7%

93.1%

96.6%

94.2%

89.0%

95.8%95.2%

94.3%

93.2%

80%

85%

90%

95%

100%

（

621

1,066

675 701

493

1,008

559521 534625553573

772813

307238254

104

-122

-492

-127

0

200

400

600

800

1000

1200（億円）

-600

-400

-200

0

200

400

600（億円）

市債発行額公債費プライマリーバランス（右軸）

Initial and supplementary budgets for fiscal 2002 to fiscal 2006Initial budgets for fiscal 2007 and fiscal 2008

Sapporo

Yokoham

a

Sendai

Saitama

Chiba

Kaw

asaki

Hiroshim

a

Shizuoka

Kobe

Nagoya

Fukuoka

Kyoto

Sakai

Kitakyushu

Osaka

Floatation price of municipal bondPublic debt expenditurePrimary balance (right-hand axis)Unit:

¥100 millionUnit: ¥100 million

2002 2003 2004 2005 2006 2007 2008

Low current account ratiomeans a resilient fiscal structure

Current account ratioCurrent account ratio

Primary balance continuing upward trend since fiscal 2005

Primary balance of general accountPrimary balance of general account

15

Balance sheet of general account of Kawasaki

－0.956.555.557.355.657.4Distribution ratio of net assets (%)

IndexIndex

2.3 28012,27811,99812,21511,68811,712Total of net assets

2.9 2729,6679,3952439,1759,197(3) General revenue source and others

(2.0)(5)2382432,360252255(2) Prefecturaldisbursements

0.6 13 2,3732,3609,6122,2602,260(1) Treasury disbursementsN

et assetsN

et assets

(1.5)(146)9,4669,6129,5779,3278,683Total liabilities3.1 18 579561475387374(2) Current liabilities

(1.7)(140)8,1198,2598,3068,1337,454Local government bonds

(1.8)(164)8,8879,0519,1028,9408,309(1) Long-term liabilitiesLiabilitiesLiabilities

0.6 134 21,74421,61021,33321,01520,395Total assets(25.5)(94)276370337321288(3) Current assets

2.1 41 2,0081,9671,9291,8331,675(2) Capitalization, others

(1.7)(5)281286291297258Expenses for commerce and industry

1.1 131 11,93911,80811,64411,45711,296Expenses for public construction works

(2.0)(21)1,0291,0501,0811,100882Expenses for general affairs

1.0 18719,46019,27319,06718,86018,432(1) Property, plant and equipment

Assets

Assets

Ratio of Ratio of increase/ increase/ decreasedecrease

BalanceBalanceEnd of fiscal End of fiscal 20062006

End of fiscal End of fiscal 20052005

End of fiscal End of fiscal 20042004

End of fiscal End of fiscal 20032003

End of fiscal End of fiscal 20022002SectionSection

（Unit:¥ million）

16

Consolidated Balance Sheet of Kawasaki City (as of end of FY2006)

Section FY2004 FY2005 FY2006

Assets

1. Property, plant and equipment 31,647 31,890 32,035

(Ordinary account of the abovementioned

assets)19,067 19,272 19,460

2. Investments 1,710 1,700 1,702

Investments and capital 489 480 501

Loans 366 373 350

Funds, others 855 847 851

3. Current assets 1,789 1,717 1,562

Cash and deposits 489 561 506

Accounts receivable, others 1,300 1,156 1,056

4. Deferred account 5 2 1

Total assets 35,151 35,309 35,300

Section FY2004 FY2005 FY2006

1. Fixed liabilities 16,322 15,945 15,421

Liabilities

Local government bonds 13,869 13,750 13,399

Reserve funds, others 2,453 2,195 2,022

2. Current liabilities 1,398 1,581 1,625

(Local government bonds, bonds to be redeemed in the

next fiscal year)901 1,070 1,168

Total liabilities 17,720 17,526 17,046

Difference betw

een assets and liabilities

1. Treasury disbursements 4,655 4,774 4,855

2. Prefectural disbursements 259 254 249

3. Funds financed by private firms and other organizations 71 71 72

4. General revenue sources, others 12,446 12,684 13,078

Total of difference between assets and liabilities 17,431 17,783 18,254

Total net assets and liabilities 35,151 35,309 35,300

Unit: ¥100 million

The whole cityThe whole city’’s balance sheet with ordinary account, special account (16) and s balance sheet with ordinary account, special account (16) and government government owned companiesowned companies’’ account (6) is consolidated with the balance sheets of Partial account (6) is consolidated with the balance sheets of Partial Administrative Administrative

Unions, local public corporations and the third sector.Unions, local public corporations and the third sector.

Consolidated balance sheet with associated cooperative groups (Draft)

17

Consolidated balance sheet with associated cooperative groups (Draft) (As of end of fiscal 2006)

Kawasaki municipal government provides services to citizens through the administration as well as associated corporate bodies financed by the municipal government.

To disclose the financial situation of the city and its associated organizations as a unified body, Kawasaki has consolidated partial administrative unions, local public corporation and the third sector to the city’s balance sheet, and draws up a consolidated balance sheet (draft).

When comparing the consolidated balance sheet with the total account balance sheet, the total liabilities are comparatively larger because the liabilities ratio of the associated organizations is larger.

35,300 36,574 1,967 11,137 1,726 21,744 Total assets1 1 1 0 0 4. Deferred account

1,056 1,108 639 178 149 142 Accounts receivable, others

506 480 94 232 21 133 Cash and deposits1,562 1,588 733 410 170 276 3. Current assets

851 851 305 80 110 356 Fund, others350 693 294 0 37 362 Loan

501 1,406 0 115 0 1,290 Capitalization and investment

1,702 2,950 600 195 147 2,008 2. Capitalization, others

(10,350)(Lands)

987 Others

1,029 Expenses for general affairs

1,643 Expenses for public health

3,863 Expenses for education

11,939 Expenses for public construction works

32,035 32,035 634 10,533 1,408 19,460 1. Property, plant and equipment

Assets

Total Total accountaccount

Simple Simple totaltotal

Third Third sector and sector and

othersothers

Municipal Municipal enterprise enterprise accountaccount

Special Special accountaccount

Ordinary Ordinary accountaccountSectionSection

35,300 36,574 1,967 11,137 1,726 21,744 Total net assets and liabilities

18,254 19,159 285 5,141 1,455 12,278 Total of difference between assets and

liabilities

13,078 13,983 214 2,648 1,455 9,667 4. 4General revenue sources, others

72 72 72 3. Funds financed by

private firms and other organizations

249 249 0 11 0 238 2.Prefecturaldisbursements

4,855 4,855 0 2,482 0 2,373 1.Treasury disbursements

Difference betw

een assets and liabilities

17,046 17,415 1,682 5,996 271 9,466 Total liabilities457 482 243 239 0 Others

1,168 1,168 89 473 28 579

Local governmentbonds, bonds to be

redeemed in the next fiscal year

1,625 1,650 332 711 28 579 2. Current liabilities1,961 2,304 1,350 223 25 707 Reserve fund, others

61 61 0 0 0 61 Carried-over expense

13,399 13,399 5,062 219 8,119 Local governmentbonds

15,421 15,765 1,350 5,285 243 8,887 1. Fixed liabilities

Liabilities

Total Total accountaccount

Simple Simple totaltotal

Third Third sector and sector and

othersothers

Municipal Municipal enterprise enterprise accountaccount

Special Special accountaccount

Ordinary Ordinary accountaccountSectionSection

（Unit:¥ million） （Unit:¥ million）

18

Balance sheet of Kawasaki (As of end of fiscal 2006)

From the fiscal 2000 period, we started drawing up a balance sheet which includes every account―general account, special account and public-sector companies accounts―in accordance with the central government standard to clarify the financial situation of the whole city of Kawasaki.

When compared with the balance sheet of the previous year, total assets have increased ¥15.8 billion, total liabilities have decreased ¥26.8 billon and total net assets/liabilities have increased ¥42.6 billion.

Of property, plant and equipment of Kawasaki, the ratio of net assets to total assets is 53.4 percent (an increase of 1 percentage point from the previous fiscal year).

When compared with the ordinary account, total liabilities are comparatively larger. As municipal bonds are issued at a high frequency to make funds to keep property, plant and equipment in good condition in the municipal enterprise account, the ratio of total liabilities is higher than in that of the general account

33,748 34,607 11,137 1,726 21,744 Total assets0 0 0 0 4. Deferred account

431 469 178 149 142 Accounts receivable, others

407 386 232 21 133 Cash and deposits837 856 410 170 276 3. Current assets

546 546 80 110 356 Fund, others

399 399 0 37 362 Loan

564 1,405 115 0 1,290 Capitalization and investment

1,509 2,350 195 147 2,008 2. Capitalization, others

(10,350)(Land)987 Others

1,029 Expenses for general affairs

1,643 Expenses for public health

3,863 Expenses for education

11,939 Expenses for publicconstruction works

31,401 31,401 10,533 1,408 19,460 1. Property, plant and equipment

Assets

Total Total accountaccount

Simple Simple totaltotal

Municipal Municipal enterprise enterprise accountaccount

Special Special accountaccountOrdinary Ordinary

accountaccountSectionSection

33,748 34,607 11,137 1,726 21,744 Total net assets and liabilities18,033 18,874 5,141 1,455 12,278 Total net assets

9,667 3. General revenue source, others

238 2. Prefectural disbursements2,373 1. Treasury disbursementsN

et assets

15,715 15,733 5,996 271 9,466 Total liabilities221 239 239 0 Others

1,079 1,079 473 28 579 Local government bonds, bonds to be redeemed in

the next fiscal year

1,300 1,318 711 28 579 2. Current liabilities955 955 223 25 707 Reserve funds, others61 61 0 0 61 Carried-over expenses

13,399 13,399 5,062 219 8,119 Local government bonds14,415 14,415 5,285 243 8,887 1. Fixed liabilities

Liabilities

Total Total accountaccount

Simple Simple totaltotal

Municipal Municipal enterprise enterprise accountaccount

Special Special accountaccountOrdinary Ordinary

accountaccountSectionSection

（Unit:¥ million） （Unit:¥ million）

19

Statement of local government administration costs (General account)

100.0 393,041 100.0 390,955 100.0398,367 Administrative costs A4.5 17,458 5.0 19,538 5.421,539 Subtotal

0.4 1,409 0.5 1,749 0.4 1,718 (2) Losses due to nonpayment

4.1 16,049 4.5 17,700 5.019,821 (1) Public debt

expenditure (Only for interests)

0.0 0 0.0 89 0.0 0 (1) Costs of restoring a devastated areaO

ther costs

42.1 165,498 40.5 158,327 40.7162,128 Subtotal

1.9 7,503 1.4 5,524 1.6 6,237 (4) Construction

operation fee (Grant-in-aid to other organizations)

7.8 30,625 7.3 28,567 7.831,220 (3) Transfers to special account

10.9 42,964 11.0 43,018 11.445,350 (2) Support fee21.5 84,406 20.8 81,218 19.979,321 (1) Assistance expense

Cost for transfer

payment

26.5 104,334 26.7104,481 26.2104,454 Subtotal

12.2 47,958 12.2 47,701 12.047,678 (3) Depreciation expense1.4 5,539 1.4 5,428 1.3 5,186 (2) Maintenance fee

12.9 50,837 13.151,352 12.951,590 (1) Cost of suppliesExpenses for properties

26.9 105,751 27.8 108,609 27.7110,246 Subtotal

2.6 10,153 2.6 10,181 2.6 10,325 (2) Reserve fund for employees' retirement

benefits

24.3 95,598 25.2 98,428 25.199,921 (1) Personnel expenseExpenses for personnel m

atters

DistributiDistribution ratioon ratioAmountAmountDistributioDistributio

n ration ratioAmountAmountDistributiDistribution ratioon ratioAmountAmount

FY2006FY2006FY2005FY2005FY2004FY2004Section/ FYSection/ FY

[Administration costs] Unit: ¥1million, %

100.0 420,231 100.0409,574 100.0401,732 Revenue (B + C + D + E)

1.9 8,150 2.08,091 2.0 8,068 (4) Net depreciation

expenditures of national (prefectural) treasury disbursement

80.1%77.9%74.1%D/A

74.9 314,776 73.7 304,406 73.5295,333 (3) General revenue source D

15.1%14.9%14.7%C/A

14.2 59,519 14.1 58,225 14.658,401 (2) Treasury (prefectural) disbursement C

9.6%9.9%10.0%B/A

9.0 37,786 10.2 38,852 9.939,930 (1) Usage charge, commission, etc B

DistributDistribution ratioion ratioAmountAmountDistributDistribut

ion ratioion ratioAmountAmountDistributiDistribution ratioon ratioAmountAmount

FY2006FY2006FY2005FY2005FY2004FY2004Section/ FYSection/ FY

[Revenue] Unit: ¥1million, %

20

Fiscal 2008 plan to issue Kawasaki municipal bond

To avoid financial risk, we evenly issue bonds with three different terms―mid-term, long-term and super-long-term bonds.While maintaining a certain scale of public-offering bonds, we will put on market private placement bonds on banks. (The ratio of public-offering bonds to private placement bonds on banks is 66:34.)While we expect the public fund to be decreased, we will secure a certain amount. (Ratio of private to public is 93:7.)

Of the account balance’s total amount of ¥180.2 billion, total amount of private funds is ¥166.8 billion (93 percent of the total).Of the total issued amount of publicly offered bonds of ¥110 billion (61 percent of the total), the bonds issued independently by Kawasaki amount to ¥75 billion (42 percent of the total).Total issued amount of private placement bonds in banks is ¥56.8 billion (32 percent of the total).

SectionSection TermTerm Amount Amount issuedissued

Apr Apr 20082008 MayMay JunJun JulJul AugAug SepSep OctOct NovNov DecDec Jan Jan

20092009 FebFeb MarMar MayMay

Public offering bonds

Issued independently by K

awasaki

Publicly offered local governm

ent bonds

5 years 350 100 150 10010

years 100 100

20years 100 Issuance of spot bonds on annual basis

20years 100 Issuance in the first half

20 years or 30 years

100 Issuance in the second half

Joint issue 10 years 350 50 50 50 50 50 50 50

Private placement bonds

on banks

Securities issue or

bond issue

5 years (some 4-

year bonds)

122 3 30 89

10 years 185 105 80

Super-long-term

bond261 161 100

Unit: ¥100 million

21

City of Kawasaki

Address: 1, Miyamoto-cho, Kawasaki-ku, Kawasaki-shi, 210-8577 E-mail: 23sikin@city.kawasaki.jphttp://www.city.kawasaki.jp/23/23sikin/home/ir/ir.htm