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SUBWO OFER

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AV CONTROLLER
AAC PCM DIGITAL DTS PL DSP STEREO(GRN ) MULTI IN( RED) MASTER VOLUME

STANDBY

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SW LVL CTRL MEMORY

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PHONES

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PR-155SP

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SWA-055

POWERED SUBWOOFER

POWERED SUBWOOFER SYSTEM

FRONT SPEAKERS

SUBWOOFER CONTROL

MAIN IN

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DVDSETUP

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ANTENNA

CDR/TAPE/TV/VIDEO

OUT IN

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DVD/CD CDR/TAPE/ LINE/GAME TV/VIDEO

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DVD PLAYER

REMOTE CONTROL

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CDR-201A

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AIWA AKAI AUDIO SONIC BELL&HOWELL BLAUPUNKT BRIONVEGA CENTURION COLTINA CORONAD CROWN DAEWOO DUAL EMERSON FENNER FERGUSON FISHER FUNAI FUJITSU GENERAL GEPANA GERCA GOLD STAR GOODMANS GRUNDIG HITACHI HYPER INNO-HIT IRRADIO JVC KENDO KTV LUXOR MAGNAVOX 100
100,101 102,103,108,111,112,115,116 117,118,119,120,123,124,125,126,127 128,129 130,133,134,135 136,137,138 139,142,145,146 147,148,149,153,154,155,156,159,162,163
MARANTZ MARK MATSUI MITSUBISHI MIVAR NEC NOKIA NOKIA OCEANIC NORDMENDE OKANO ORION PANASONIC PHILIPS PIONEER PROSCAN QUASAR RADIOSHARX RCA SABA SAMSUNG SANYO SCHNEIDER SEARS SELECO SHARP SONY SYMPHONIC TELEFUNKEN THOMSON TOSHIBA UNIVERSUM ZENITH
166,167,168,169 170,171,172,173 174,175 176,177 178,179,180,182,184,185,186 187,188,,189,190 162,191,152 192,141,197,198,110,199,200 201,182,183 202,203,204,205,206,207,208 209,210,211,213 214,215 216,217 216,219,220,221,222,223 224,225 201,225,213,231,232

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(C) Copyright 2003 ONKYO CORPORATION Japan. All rights reserved.

Printed in Japan

G0305-1

03.4.16, 8:42 AM

Brief Report on Closing of Accounts for the Term Ended March 31, 2004 (Consolidated)
May 26, 2004 Name of Listed Company: ONKYO CORPORATION Name of Stock Exchange: JASDAQ Code No.: 6729 (URL: http://www.onkyo.com/jp/ ) Prefecture of Head Office: Osaka Representative: Naoto Ohtsuki Inquiries to be made to: President and CEO Masatomi Ozeki Director and Executive Officer Deputy-Director, Administrative Division Telephone No.: 072-831-8001 Date of Board of Directors' Meeting on Closing of Accounts: May 26, 2004 Whether or not U.S. Accounting Standard was adopted: Not adopted
1. Consolidated Business Results for the Fiscal Year Ended March 31, 2004 (from April 1, 2003 to March 31, 2004) (1) Consolidated Operating Results
(Amounts less than one million yen are omitted.) Sales March 2004 term March 2003 term million 44,870 50,909 (11.9) 6.2 % Operating income million 2,828 2,818 0.3 135.4 % Ordinary income million 2,237 2,185 Ratio of ordinary income to total capital % 5.2 5.3 2.4 171.2 %
Net income million March 2004 term March 2003 term Notes: 1,268 1,305 % (2.9) 736.4

Basic EPS 125.96 135.98

Diluted EPS 122.86 132.89
Return on equity % 16.4 20.6
Ordinary income margin % 5.0 4.3
1. Investment gains and losses based on equity method March 2004 term March 2003 term March 2004 term March 2003 term 3. Changes in accounting methods: None 4. The percentages of sales, operating income, ordinary income and net income show changes from the previous term. -6 million -23 million 10,069,408 shares 9,602,731 shares
2. Average number of shares outstanding during the term (consolidated):
(2) Consolidated Financial Status
Total assets million March 2004 term March 2003 term Note: 43,680 42,083 Shareholders' equity million 8,423 7,051 March 2004 term March 2003 term 19.3 16.8 10,094,600 shares 10,054,600 shares Shareholders' equity ratio % 834.46 701.30 Shareholders' equity per share
Number of shares issued at the term-end (consolidated):
(3) Consolidated Cash Flow
Cash flow from operating activities million March 2004 term March 2003 term 1,894 7,398 Cash flow from investing activities million (1,732) (1,928) Cash flow from financing activities million 1,343 (1,678) Cash and cash equivalents at end of the term million 8,260 6,936
(4) Scope of Consolidation and Application of Equity Method
Number of consolidated subsidiaries: Number of unconsolidated subsidiaries accounted for by the equity method: Number of affiliates accounted for by the equity method:
(5) Change in scope of consolidation and application of equity method
Number of companies newly consolidated: Number of companies excluded from consolidation: Number of companies newly accounted for by the equity method: Number of companies excluded from the accounting by the equity method: 0 0
2. Forecasts for the March 2005 Term (from April 1, 2004 to March 31, 2005)
Sales million Interim Term Full Term 20,000 46,000
Ordinary income million 1,120 2,250
Net income million 620 1,270
Note: Estimated net income per share for the full term: 62.90 yen In addition, the number of shares issued and outstanding was changed to 20,189,200, due to the share split effective on May 20, 2004. The above estimates were based on the available information as of the date of publication of this material, so the actual results might be different from these figures due to various factors afterwards. Please see the attached material regarding forecasts of earnings.
1. Organization Structure
The Onkyo group consists of Onkyo Corp., 14 subsidiaries, and one affiliated company. Its main businesses are consumer electronics and industrial components. The position of Onkyo Corp. and related companies and the business contents of Onkyo group are as follows:

Business Field Consumer Electronics Main Products Home Theater Home Audio Home Network Main Businesses Onkyo Corp. CE Division Tottori Onkyo Corp. Onkyo Asia Electronics SDN. BHD. Onkyo U.S.A. Corp. Onkyo Europe Electronics GmbH Shanghai Onkyo International Trading Ltd. Onkyo China Ltd. Industrial Components Automotive Audio Speakers Household Audio Speakers Speaker Parts Onkyo Corp. IC Division Onkyo Electronics Corp. Onkyo Electric (Malaysia) SDN. BHD. Shanghai Onkyo Electronics Corp. Onkyo Industrial Components, Inc. Purasu Industrial Co., Ltd. Zhongshan Purasu Acoustic Co., Ltd. Real Estate Leasing Other Real Estate Leasing Sales of Home Electronic Devices, etc. Metal Molds Onkyo Corp. Onkyo Liv Corp. Liv Precision Corp.
The CE Division and IC Division are the formal names of the Group; CE stands for Consumer Electronics and IC stands for Industrial Components. Besides the above, Onkyo (Malaysia) SDN. BHD., a subsidiary in Malaysia, is now in liquidation.
Onkyo groups business distribution diagram is as follows:
Domestic subsidiary Tottori Onkyo Corp.; Production of home theater, etc. Subsidiary in the U.S. Onkyo U.S.A. Corp.; Sale of home theater, etc.
Consumer electronics business
Subsidiary in Malaysia Onkyo Asia Electronics SDN. BHD.; Production of home theater, etc.
Subsidiary in Germany Onkyo Europe Electronics GmbH; Sale of home theater, etc. Subsidiary in China Shanghai Onkyo International Trading Ltd.; Sale of home theater, etc.
Affiliated company in China (Hong Kong) Onkyo China Ltd.; Sale of home theater, etc.
Industrial components business

Onkyo Corporation

Domestic subsidiary Onkyo Electronics Corp.; Production of speakers, etc. Subsidiary in Malaysia Onkyo Electric (Malaysia) SDN. BHD.; Production of speakers, etc. Subsidiary in China Shanghai Onkyo Electronics Corp.; Production of speakers, etc. Domestic subsidiary Purasu Industrial Co., Ltd.; Production of speaker parts

Other business

Subsidiary in China Zhongshan Purasu Acoustic Co., Ltd.; Production of speaker parts
Real estate leasing business

systems thoroughly by narrowing their product lineups and reducing costs, in order to maintain their competitiveness even if the market continues its contraction. The Company believes that its mission is to continue providing high value-added, highquality products and uphold a market strategy to prevent low-priced products from sweeping the global market, precisely because relentless price-cutting competition is under way throughout the world. As for the home network business, the advent of a full-scale broadband era has made it possible to distribute images through networks. The Company took an equity stake in Gaga Communications Inc., Japans largest independent movies distributor, in February 2004. The Company plans to create home theater environments and an image distribution system for the new era by combining Gaga Communications abundant image software and image distribution know-how and Onkyos home network technology. 2. Industrial components business In the industrial components business, the Company, as in the past, intends to secure stable business performance in the auto parts industry and strengthen marketing activities in order to increase orders received for household speakers, such as flat-screen TVs. The move toward flat-screen digital TVs and home theater systems is a new trend of the times and it is expected to further expand demand for middle- and high-class speakers in which the Company excels. As part of the efforts to promote horizontal development of micro speakers for use in portable game machines, which began to contribute to the Companys business performance in the current business year, the Company plans to enter new markets, such as mobile phones and household wireless speakers. (5) Basic stance on corporate governance and the status of measures implemented The Company established the following corporate behavior charter at a board meeting on May 26, 2004. Charter of Corporate Ethics of Onkyo Group Member corporations of Onkyo Group (Onkyo hereinafter) are expected to conduct themselves in a socially responsible manner, observing both the spirit as well as the letter of all laws and regulations applying to their activities both domestically and overseas in accordance with the following six (6) principles. Furthermore, it is declared and affirmed that Onkyo will pursue profit only through fair market competition and that every effort will be made to remain a corporate entity that is beneficial to all people concerned, the society and the environment. 1. Onkyo will encourage the confidence of its customers, dealers and employees by providing safe, beneficial products and services. 2. Onkyo will engage in fair and ethical competition, and will have no contact with any person who would hinder such effort by Onkyo. 3. Onkyo will make every effort to disclose relevant information appropriately, fairly, and on a timely basis to all people concerned. 4. Onkyo will promote the conservation of resources and energy for the purpose of improving the environment. 5. Onkyo will strive to respect the customs and cultures of each nation and local area where they conduct business while pursuing social contribution to the maximum possible extent. 6. Onkyo will respect the personality and rights of all individuals within the Onkyo

receiver equipped with Net-Tune, a network protocol developed by the Company. The Company has decided to include sales of home network products in the sale of home theater products starting with the current business year, because most of the sales are accounted for by home theater products equipped with network functions. (ii) Industrial components business Sales in the industrial components business, which mainly handles production of speakers on an OEM basis, decreased 1,583 million yen from the previous year to 8,795 million yen and operating income decreased 370 million yen to 318 million yen. The smaller sales and income from car stereo speakers, the main products in this segment, are attributable to the facts that carmakers, as part of their cost-cutting efforts, have reduced the number of speakers used per vehicle and that the prices of speakers have dropped due to intensifying competition. As for speakers for use in home electric appliances, the sales of TV speakers decreased due to the shift of production of large-screen TVs to China. However, sales of micro speakers fared well in the newly cultivated market for portable video game players. (iii) Real estate business Sales in this segment increased 87 million yen from the previous year to 656 million yen and operating income increased 41 million yen to 395 million yen thanks to a full-year contribution of income from the lease of the sports facility that opened in December 2002. (iv) Other business Sales in the other business segment increased 1,429 million yen from the previous year to 1,900 million yen and operating income increased 33 million yen to 50 million yen. The business results reflect the revision of the Companys business control unit implemented at the beginning of the current fiscal year. The Company reclassified part of Onkyo Liv Corp.s consumer electronics business into the other business and the whole of Liv Precision Corp.s industrial components business into the other business. As a result of the revision, the other business now consists of Onkyo Liv Corp. and Liv Precision Corp. The revision of business control unit boosted sales of the other business by 1,424 million yen and operating income by 28 million yen. Country-by-country business results are as follows: (i) Japan In the consumer electronics business, the Company posted almost the same amount of sales as in the previous year thanks to its steady performance in the home theater market, with an improvement in profit margin greatly contributing to the business performance. However, sales to external customers decreased due to the contraction of the home audio market. Internal sales increased owing to an increase in exports to the U.S. subsidiaries against the background of steady activity of the home theater market in the United States. In the industrial components business in Japan, the Company suffered smaller sales and income due to a decrease in the shipment of mainstay car speakers and a decline in product prices. As a result, sales in Japan decreased 2,783 million yen from the previous year to 24,882 million yen. But, operating income increased 1,006 million yen to 2,643 million yen on the strength of greater profit margins of home theater products.

(ii) North America In the consumer electronics business in North America, sales at Onkyo U.S.A. Corp., Companys sales subsidiary in the U.S., increased because of continued steady sales of Home Theater in a Box (HTiB). Sales in the industrial components business also increased, contributed to increased sales at Onkyo Industrial Components Inc., another sales subsidiary in the U.S. As a result, sales in North America increased 306 million yen to 15,273 million yen. However, operating income decreased 132 million yen to 46 million yen, as the newly established Onkyo Industrial Components Inc. has yet to register in the black. (iii) Europe Most of the Companys businesses in Europe are consumer electronics business. Sales in Europe decreased 1,937 million yen from the previous year to 3,463 million yen due to the impact of the review of sales agent contracts and the sluggish German market. Operating income was affected by the sharp decrease in sales, decreasing 263 million yen from the previous year. As a result, the Company experienced an operating loss of 43 million yen. (iv) Asia Sales to external customers decreased 1,624 million yen from the previous year to 1,250 million yen, as sales of household speakers at Onkyo Electric (Malaysia) SDN. BHD., the Companys production subsidiary in Malaysia, were sluggish in the industrial components business. Operating income increased 117 million yen to 1,019 million yen, however, as a production subsidiary in Malaysia (Onkyo Asia Electronics SDN. BHD.) fared well in the consumer electronics business on the strength of the buoyant home theater market in the United States. Internal sales decreased 656 million yen to 14,841 million yen, as the strong performance of Onkyo Asia Electronics SDN. BHD. was offset by the sluggish performance of Onkyo Electric (Malaysia) SDN. BHD. (2) Financial Position (i) Financial position The consolidated financial position of Onkyo Group as of the end of the business year under review was as follows: total assets increased 1,596 million yen to 43,680 million yen; total liabilities increased 49 million yen to 35,081 million yen; and total shareholders equity increased 1,372 million yen to 8,423 million yen. The main reasons for fluctuations in assets are an increase in cash and deposits and investment securities, and a decrease in notes receivables and accounts receivables. As for liabilities, long-term loans increased and, as for capital, retained earnings increased. Incidentally, net interest-bearing debts, or interest-bearing debts minus cash and deposits, increased 176 million yen from the previous year to 10,210 million yen. (ii) Cash flow Consolidated cash and cash equivalents at the end of the term increased 1,323 million yen from the end of the previous term to 8,260 million yen. The followings are descriptions of each cash flow category and its changing factors for the year.

(Cash flow from operating activities) Net cash in-flow from operating activities decreased 5,504 million yen from the previous year to 1,894 million yen. The decrease in cash flow was due mainly to decreases in income before income taxes, accounts payable - trade and an increase in inventory assets. (Cash flow from investing activities) Net cash out-flow from investing activities decreased 195 million yen from the previous year to 1,732 million yen. The main expenditure for investment in securities was 1,600 million yen for the purchase of new shares issued by Gaga Communications Inc. The factor behind the decrease in expenditures for investment in tangible fixed assets from the previous year was that there were 863 million yen in expenditures for construction of a sports building for lease in the previous term. The main expenditures for investment in tangible fixed assets were for capital investment by production subsidiaries. (Cash flow from financing activities) Net cash in-flow from financing activities for the term increased 3,022 million yen from the previous term of net cash out-flow to 1,343 million yen. This was due to the fact that the Company increased long-term loans to secure stable, low-interest funds. Trend of cash-flow indices
79th Term Ended March 31, 2002 80th Term Ended March 31, 2003 81st Term Ended March 31, 2004
Equity ratio (%) Market value-based equity ratio (%) Net interest-bearing debts ( million) Debt retirement (year) Interest coverage ratio (%)

Notes:

16,005 26.1 1.7
16.8 26.3 10,033 2.3 19.4

19.3 25.2 10,210 9.8 6.8

1. Each index was calculated by using the following formula. Equity ratio: Shareholders equity/Total assets Market value-based equity ratio: Total market capitalization/Total assets Net interest-bearing debts: Interest-bearing debts Cash and deposits Debt retirement: Interest-bearing debts/Net operating cash flow Interest coverage ratio: Net operating cash flow/Interest payment 2. The total market capitalization was calculated as follows: Closing price per share at the end of the term multiplied by the number of outstanding stocks (excluding treasury stock) at the end of the term. Incidentally, a market value-based equity ratio for the 79th term is not listed because the Company was not a listed company nor an OTC company.
(3) Forecast for the Term ending in March 2005 Based on the actual performance in the business year under review and the current market environment, the Company forecasts its performance in the next business year as follows: Although the U.S. market remains steady by and large, buying power in the Japanese and European markets is not likely to improve. Accordingly, the Company projects sales for the next year at about 46,000 million yen, or almost unchanged from the current year, and ordinary income at about 2,250 million yen, also almost unchanged from the current year. Taking extraordinary losses and tax effect involved in depreciation of metal molds and other equipment into consideration, the Company projects net income at 1,270 million yen.

Consolidated Business Forecasts Forecast for the Term Ending March 2005 Sales Operating income Net income 46,000 2,250 1,270

(Unit: million yen)

Results for the Term Ended March 2004 44,870 2,237 1,268

Changes to Results 1,2

The above estimates were based on the available information as of the date of publication of this material, so the actual results might be different from these figures due to various subsequent factors.
4. Purpose of Funds Raised through Public Issuance of New Shares at Market Price and their Actual Use
The actual use of funds raised through public issuance of new shares at market price (in the amount of 493 million yen) implemented on February 25, 2003 is as follows: Actual use The usage plan for the funds raised through public issuance of new shares at market price on February 25, 2003 was designed for capital investments and loans to production subsidiaries for equipment, including metal molds, and was completed as per schedule.
5. Consolidated Financial Statements
(1) Consolidated Balance Sheet
Previous Consolidated Term (as of March 31, 2003) Item (Assets) I. Current assets 1. Cash and deposits 2. Notes receivable and accounts receivable 3. Inventory assets 4. Deferred tax assets 5. Other Allowance for doubtful accounts Total current assets II. Fixed assets 1. Tangible fixed assets (1) Buildings and structures Accumulated depreciation (2) Machinery and transport equipment Accumulated depreciation (3) Tools, furniture and fixtures Accumulated depreciation (4) Land (5) Buildings for rent Accumulated depreciation (6) Land for rent (7) Construction in progress Total tangible fixed assets 2. Intangible fixed assets (1) Consolidation adjustments (2) Other Total intangible fixed assets 3. Investments and other assets (1) Investment securities (2) Deferred tax assets (3) Other Allowance for doubtful accounts Total investments and other assets Total fixed assets Total assets 1,443,837 20,771,515 42,083,019 3.4 49.4 100.0 3,710,124 22,961,439 43,680,006 8.5 52.6 100.0 2,266,287 2,189,924 1,596,987 179,252 978,178 322,174 (35,767) 2,444,950 938,445 335,853 (9,124) 2,265,698 (39,733) 13,679 26,643 454,565 170,923 625,488 1.5 418,200 198,238 616,438 1.4 (36,365) 27,315 (9,050) 4,361,298 442,778 3,918,519 6,597,344 9,453 18,702,190 44.5 3,421,747 2,630,125 5,599,560 4,855,888 743,672 4,429,702 4,361,299 587,243 3,774,055 6,597,344 54,047 18,634,877 42.7 (144,464) 791,622 3,412,023 2,668,973 5,733,376 4,986,495 746,881 4,512,932 3,209 83,230 743,050 (48,572) 3,912,036 1,700,158 2,211,878 4,224,042 2,017,475 2,206,568 (5,310) 8,656,174 3,724,764 561,858 1,598,472 (166,675) 21,311,504 50.6 7,215,236 4,434,100 420,967 500,414 (112,221) 20,718,567 47.4 (1,440,938) 709,336 (140,891) (1,098,058) 54,454 (592,937) 6,936,911 8,260,071 1,323,160 Amount (thousand yen) Rate (%) Current Consolidated Term (as of March 31, 2004) Amount (thousand yen) Rate (%) Changes Amount (thousand yen)

44,594 (67,313)

Previous Consolidated Term (as of March 31, 2003) Item (Liabilities) I. Current liabilities 1. Notes payable and accounts payable 2. Short-term loans 3. Account payable-other 4. Accrued expenses 5. Accrued corporate taxes 6. Allowance for product warranty 7. Other Total current liabilities II. Fixed liabilities 1. Long-term loans 2. Long-term accounts payable-other 3. Long-term deposit received for guarantee 4. Deferred tax liabilities for revaluation 5. Allowance for retirement benefits 6. Other Total fixed liabilities Total liabilities (Minority interest) Minority interest (Shareholders equity) I. II. Capital stocks Capital surplus 1,359,240 615,994 686,474 4,865,294 (818) (474,700) (232) 7,051,253 42,083,019 3.2 1.5 1.6 11.6 (0.0) (1.1) (0.0) 16.8 100.0 3,423,111 595,238 30,126 15,714,454 35,031,766 37.3 83.2 4,022,797 7,483,232 159,950 6,385,884 9,487,456 1,415,584 896,556 257,063 669,116 205,653 19,317,312 45.9 Amount (thousand yen) Rate (%)
Current Consolidated Term (as of March 31, 2004) Amount (thousand yen) Rate (%)
Changes Amount (thousand yen)
5,895,667 8,989,992 1,328,201 517,508 93,172 429,982 195,329 17,449,851 9,480,290 159,950 3,992,839 3,426,231 543,597 28,510 17,631,418 35,081,269 175,212 1,374,280 630,994 1,900,124 4,869,729 312,068 (663,440) (232) 8,423,525 43,680,006 40.4 80.3 0.4 3.1 1.4 4.4 11.2 0.7 (1.5) (0.0) 19.3 100.0 39.9
(490,217) (497,464) (87,383) (379,048) (163,891) (239,134) (10,324) (1,867,461) 1,997,058
(29,958) 3,120 (51,641) (1,616) 1,916,964 49,503 175,212
III. Retained earnings IV. Differences from land revaluation V. Other differences from securities valuation VI. Adjustments for foreign exchange conversion VII. Treasury stock Total shareholders equity Total liabilities, minority interest and shareholders equity

1,372,272 1,596,987

(2) Consolidated Statement of Income
Previous Consolidated Term (from April 1, 2002 to March 31, 2003) Item I. Sales 1. Sales of manufactured products 2. Income from rent on real estate II. Cost of sales 1. Cost of sales for products 2. Cost of sales for rent on real estate Gross profit on sales III. Selling, general & administrative expenses Operating income IV. Non-operating income 1. Interests received 2. Dividends received 3. Rents received 4. Other V. Non-operating expenses 1. Interest paid 2. Sales discount 3. Cost of sales for rent 4. Exchange loss 5. Investment loss on equity method 6. Other Ordinary income VI. Extraordinary income 1. Gain on sale of fixed assets 2. Gain on sale of investment securities 3. Gain from reversal of allowance for doubtful accounts 4. Gain from reversal of allowance for product warranty VII. Extraordinary expenses 1. Loss on sale of fixed assets 2. Loss on retirement of fixed assets 3. Valuation loss on investment securities 4. Loss on annulment of contracts with sales agents in Europe Income before income taxes Corporate, inhabitants and enterprise taxes Corporation tax adjustments Net income 553,964 215,983 769,947 1,305,750 1.5 2.6 383,795 196,392 580,187 1,268,358 1.3 2.8 (189,760) (37,392) 14,445 75,472 93,579 11,522 15,635 64,879 8,813 3,023 379,838 108,081 33,323 230,704 23,898 40,727 816,571 2,185,501 1.6 4.3 297,688 86,887 25,746 366,056 6,501 20,066 802,944 2,237,141 1.8 5.0 (13,627) 51,640 28,561 2,060 103,945 48,673 183,239 0.4 36,197 1,470 98,313 75,790 211,770 0.5 28,531 13,237,340 2,818,833 26.0 5.5 12,483,893 2,828,315 27.8 6.3 (753,447) 9,482 34,671,591 182,071 34,853,662 16,056,173 68.5 31.5 29,314,525 244,159 29,558,684 15,312,208 65.9 (5,294,978) 34.1 (743,965) 50,340,718 569,117 50,909,835 100.0 44,214,699 656,193 44,870,892 100.0 (6,038,943) Amount (thousand yen) Rate (%) Current Consolidated Term (from April 1, 2003 to March 31, 2004) Amount (thousand yen) Rate (%) Amount (thousand yen) Changes

(74,406) (218,116) (51,640) (37,667) 297,688 107,714 8,500 15,635 6,501 1,026,903 (766,154) (193,191) (439,468) (112,193) 2,682,274 37,360 (280,432) (545,093) 1,894,109
(2,044,632) 137,243 (45,270) (22,158) 34,985 11,600 (1,928,232)
42,574 (956,016) 938,321 (51,555) (1,751,000)
42,574 1,088,616 801,078 (6,285) (1,728,842) (34,985) 33,581 195,737

45,181 (1,732,495)

(2,153,136) 3,726,200 (3,840,576) 476,154 (47,774) 160,729 (232) (1,678,635) (84,251) 3,707,599 3,229,312 6,936,911
(1,675,000) 6,850,000 (3,800,616) 30,040 (50,273) (10,396)
478,136 3,123,800 39,960 (446,114) (2,499) (171,125) 232 3,022,390 (97,959) (2,384,439) 3,707,599 1,323,160
1,343,755 (182,210) 1,323,160 6,936,911 8,260,071

(5) Segment Information

<Segment information by type of business> Previous consolidated term (from April 1, 2002 to March 31, 2003)

(Unit: thousand yen)

Consumer electronics business Industrial components business Real estate leasing business Other business Total Elimination or group Consolidated
I Sales & operating income/loss Sales: (1) Sales to outside customers (2) Inter-segment sales or transfer sales Total Operating expenses Operating income II Assets, depreciation expenses, and capital expenditures Assets Depreciation expenses
18,275,070 932,899 5,672,490 319,564 10,515,863 99,999 265,378 2,261 34,728,801 1,354,724 7,354,217 50,037 42,083,019 1,404,761 2,092,455 452,674 39,942,349 37,536,105 2,406,244 198,003 10,577,474 9,888,541 688,933 39,489,675 10,379,471 569,118 471,571 6,255 477,826 460,761 17,065 50,909,835 656,932 51,566,767 48,100,318 3,466,449
(656,932) (656,932) (9,315) (647,617)

50,909,835

569,118 214,910 354,208
50,909,835 48,091,002 2,818,833
636,076 525,831 863,2,025,601 66,854 Capital expenditures Notes: 1. Method of business segment: Business segment is made in consideration of types of products and similarity of markets. 2. Main products of individual business segment
Business segments Consumer electronics business Industrial components business Real estate leasing business Other business
Main products Home theater, home audio, home network products, etc. Automotive audio speakers and household audio speakers Real estate leasing Sale of home electrical devices
3. The amounts and main details included in the elimination or group account are as follows: (Unit: thousand yen) Previous consolidated Main details term Expenses related to management and Unallocated operating 716,085 administrative departments in our company, such expenses as the General Affairs Department Funds for the management of surplus funds (cash and deposits), long-term investment funds Group assets 7,446,640 (investment securities), and assets belonging to management and administrative departments in the Group, etc. 4. Long-term prepaid expenses and depreciation expenses thereof are included in depreciation expenses and capital expenditures.

Current consolidated term (from April 1, 2003 to March 31, 2004)
I Sales & operating income/loss Sales: (1) Sales to outside customers (2) Inter-segment sales or transfer sales Total Operating expenses Operating income II Assets, depreciation expenses, and capital expenditure Assets Depreciation expenses
15,157,985 780,355 5,010,416 237,779 10,371,399 154,248 1,887,969 29,130 32,427,769 1,201,511 11,252,237 33,154 43,680,006 1,234,665 1,024,565 513,812 34,031,934 31,129,668 2,902,266 115,104 8,910,901 8,592,733 318,168 33,518,122 8,795,797 656,193 1,900,779 247,386 2,148,166 2,097,910 50,256 44,870,892 876,302 45,747,194 42,081,115 3,666,079
(876,302) (876,302) (38,538) (837,764)

44,870,892

656,193 260,804 395,389
44,870,892 42,042,577 2,828,315
813,272 158,876 21,973 994,121 30,444 Capital expenditures Notes: 1. Method of business segment: Business segment is made in consideration of types of products and similarity of markets. 2. Main products of individual business segment
Main products Home theater, home audio, home network products, etc. Automotive audio speakers, household audio speakers, and Industrial components business speaker parts Real estate leasing business Real estate leasing service Other business Home electrical devices, etc., and metal molds, etc. 3. The amounts and main details included in the account of elimination or group are as follows: (Unit: thousand yen) Current consolidated Main details term Expenses related to management and administrative Unallocated operating 837,798 departments in our company, such as the General expenses Affairs Department Funds for the management of surplus funds (cash and deposits), long-term investment funds Group assets 11,333,721 (investment securities), and assets belonging to management and administrative departments in the Group, etc. 4. Long-term prepaid expenses and depreciation expenses for them are included in depreciation expenses and capital expenditures.
Business segments Consumer electronics business
5: In the current term, the Company revised its business management unit and reclassified part of Onkyo Liv Corp.s consumer electronics business into the other business and the whole of Liv Precision Corp.s industrial components business into the other business. The impacts of the reclassification are as follows. (Unit: thousand yen)
Consumer electronics business Industrial components business (314,528) (78,189) (392,717) (343,739) (48,978) (1,128,717) (1,789) (16,893) Other business Elimination or group
Sales: (1) Sales to outside customers (2) Inter-segment sales or transfer sales Total Operating expenses Operating income Assets Depreciation expenses Capital expenditures
(1,110,376) 291,874 (818,502) (839,309) 20,808 (234,168) (3,018) (3,556) 1,424,904 240,167 1,665,071 1,636,900 28,170 1,643,807 4,807 20,449
(453,852) (453,852) (453,852)

(280,921)

<Segment information by geographical location> Previous consolidated term (from April 1, 2002 to March 31, 2003)
Japan I Sales & operating income/loss Sales (1) Sales to outside customers (2) Inter-segment sales Total Operating expenses Operating income (loss) II Assets Notes: North America Europe Asia Total (Unit: thousand yen) Elimination Consolidated or group
27,666,088 15,739,350 43,405,438 41,768,364 1,637,074 26,855,307
14,966,921 6,160 14,973,081 14,793,882 179,199 3,859,096
5,401,361 5,671 5,407,032 5,186,819 220,213 2,320,948
2,875,465 15,498,093 18,373,558 17,472,100 901,458 7,745,289
50,909,835 31,249,274 82,159,109 79,221,165 2,937,944 40,780,640
(31,249,274) (31,249,274) (31,130,162) (119,112) 1,302,378
50,909,835 48,091,002 2,818,833 42,083,019
1. Segments are based on geographical proximity of countries and areas. 2. The main countries included in the areas (except Japan) are as follows: (1) North America: U.S.A (2) Europe: Germany (3) Asia: Malaysia, China 3. The amounts and main details included in the account of elimination or group are as follows: (Unit: thousand yen) Previous Main details consolidated term Expenses related to management and Unallocated operating 716,085 administrative departments in our company, expenses such as the General Affairs Department Funds for the management of surplus funds (cash and deposits), long-term investment funds Group assets 7,446,640 (investment securities), and assets belonging to management and administrative departments in the Group, etc.
Japan I North America Europe Asia Total (Unit: thousand yen) Elimination Consolidated or group
Sales & operating income/loss Sales (1) Sales to outside customers 24,882,806 15,273,533 3,463,664 1,250,889 44,870,892 44,870,892 (2) Inter-segment sales 14,841,934 30,819,935 15,975,036 2,965 (30,819,935) Total 40,857,842 15,276,498 3,463,664 16,092,823 75,690,827 (30,819,935) 44,870,892 Operating expenses 38,214,299 15,229,966 3,506,959 15,073,490 72,024,714 (29,982,137) 42,042,577 Operating income (loss) 2,643,543 46,532 (43,295) 1,019,333 3,666,113 (837,798) 2,828,315 II Assets 24,354,568 3,084,078 1,483,925 6,776,503 35,699,074 7,980,932 43,680,006 Notes: 1. Segments are based on geographical proximity of countries and areas. 2. The main countries included in the areas (except Japan) are as follows: (1) North America: U.S.A (2) Europe: Germany (3) Asia: Malaysia, China 3. The amounts and main details included in the elimination or group account are as follows: (Unit: thousand yen) Current consolidated Main details term Expenses related to management and Unallocated operating 837,798 administrative departments in our company, expenses such as the General Affairs Department Funds for the management of surplus funds (cash and deposits), long-term investment funds Group assets 11,333,721 (investment securities), and assets belonging to management and administrative departments in the Group, etc.

<Overseas sales> Previous consolidated term (from April 1, 2002 to March 31, 2003)
North America I II III Overseas sales (thousand yen) Consolidated sales (thousand yen) Percentage of consolidated sales made up by overseas sales (%) 32.6 11.8 9.2 1.7 55.3 16,576,030 Europe 6,011,178 Asia 4,698,570 Other regions 860,291 Total 28,146,071 50,909,835
North America I II III Overseas sales (thousand yen) Consolidated sales (thousand yen) Percentage of consolidated sales made 16,222,935 Europe 3,931,926 Asia 3,692,050 Other regions 586,763 Total 24,433,674 44,870,892
up by overseas sales (%) 8.2 1.3 54.5 36.2 8.8 Notes: 1. Segment of countries and areas is based on geographical proximity. 2. The main countries and regions included in the areas (except Japan) are as follows: (1)North America: U.S.A, Canada (2)Europe: Germany, France, Italy (3)Asia: Malaysia, Singapore, China, Korea, India (4) Other regions: Oceania, Latin America 3. Overseas sales refer to the sales by our company and consolidated subsidiaries in countries and regions except Japan (excluding inter-company sales).
(11) Transactions with Related Parties

Nothing to be noted.