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1 ANNUAL REPORT FISCAL YEAR ENDED MARCH 31, 2004

2 ANNUAL REPORT w e t i o #0 #1 $2 11 1

3 MORI SEIKI Mission Statement 2

4 3 A Message from the President

5 4

6 a s d 5

7 f g a s 6

8 d f g h 95,000 4,200 4,200 3,600 47,500 2,100 2,100 1,800 7

9

10 Quality For Total 9

11 10

12 11

13 q w e r t y 12

14 !3!2!1 i!0 o!5!4!6!7!8 u t e q w r y 13

15 14

16 KYOJI UMEOKA HIROSHI MIZUGUCHI Sales & Marketing HQ Manufacturing HQ Sales & Marketing HQ Manufacturing HQ Development HQ Administrative HQ Purchasing & Logistics HQ

17 Development HQ KAZUYUKI HIRAMOTO Administrative HQ HIROAKI TAMAI Purchasing & Logistics HQ KENJI OISHI 16

18 NL2500 SuperMILLER % 8, % 2, % 38, % 7,772 NV4000 DCG % 30,658 17

19 NH4000 DCG ULTIMILL V3000 MAPPS II % 46, % 7, % 20, % 41,321 87, % 18,619 46,236 18

20 TREVOR W.MORGAN Ñ Ü MORI SEIKI AUSTRALIA PTY LTD Regional Manager 19

21 MORI SEIKI U.S.A., INC. Vice President National Sales Manager MARK H. MOHR THOMAS R. DILLON MORI SEIKI U.S.A., INC. C.O.O. MORI SEIKI MID-AMERICAN SALES INC. President SYLVAIN BADIN MS SYFRAMO S.A. Sales Director WILLIAM FRANZEN Boston T.C. Regional Manager DTL MORI SEIKI, INC. ROBERT NAKASH New Jersey T.C. Regional Manager MORI SEIKI ITALIANA S.R.L. Regional Manager & Vice President for Sales VILIAM BIGHI JIANCHENG LIU, Ph.D MORI SEIKI MID-AMERICAN SALES INC. 20

22 MORI SEIKI MID-AMERICAN SALES INC. 21

23

24 , ,864 (5,555) $ 828,825 6, (61.96) $ ,166 86, ,123 86,875 $ 1,156, , ~ ~ ~ ~ , % 29, % 27, % 38, % 37, % 28, % 22, % 30, % 1, % 3, % 5, % 7, % 1, % 1, % 2, % % % % % 4, % 4, % 5, % 5, % % 1, % 1, % 1, % % % % 1, % 86, % 69, % 63, % 87, % ~ ~ ~ ~

25 ~ ~ ~ ~ , % 46, % 36, % 46, % ~ ~ ~ ~ ~ ~ ~ ~ ~ ,092 (2,436) 5,795 1,119 5,679 (16,607) 5,114 (5,555) 4, ,158 5,690 5,226 4,862 6, ~ ,200 3,600 6, ~ ~ ~ ~ ~ ~

26 2003.4~ ~ ~ ~ ~ ~ , % 24, ,166 86,912 56,561 41,240 63,864 (5,555) (8.7%) 22, ,123 86,875 56,977 23,970 69,656 (16,607) (23.8%) 19, ,415 93,551 59,575 36,728 86,878 1, % 18, , ,171 73,333 49,255 70,878 (2,436) (3.4%) 17, , ,467 75,038 47,941 $828,825 6, % 234,112 8,368 1,156, , ,415 $390, (61.96) 5.00 (178.93) (25.32) 6.00 $

27 $151, ,658 (1,831) 190, ,804 3,334 13, , , , ,011 5,966 1,153,135 (617,720) 535,415 3,180 56,754 59, ,563 19,774 (391) 34,946 94,930 $1,156,433 15,968 20,352 (193) 20,159 17, ,476 55,576 20,886 62,269 38, ,817 (65,256) 56, ,996 6, ,644 2,089 (41) 3,692 10, ,166 8,453 17,398 (107) 17,291 21, ,670 49,630 20,656 60,360 37, ,483 (62,506) 56, ,722 4, ,000 1,550 3,550 8, ,123 26

28 $ 24,461 61,208 3,407 5,161 1,093 40, , ,421 11,756 17, , , ,461 (128,508) 361,685 14,452 (27,100) (52,129) 822,716 $1,156,433 2,584 6, ,266 14,336 17,792 1,241 1,824 20, ,191 40,931 (13,576) 38,208 1,527 (2,863) (5,506) 86, ,166 7,000 5,159 5, , ,114 25, ,824 2, ,191 40,931 (13,576) 37, (1,605) (5,028) 86, ,123 27

29 $828, , , ,112 22, (973) (443) (2,480) (11,149) (642) 7,779 1,804 (937) (169) $ 6,743 87,557 60,424 27,133 24,732 2, (103) (47) (262) (1,177) (68) (99) (18) ,864 45,122 18,742 22,755 (4,013) 80 (117) (1,214) (62) (251) (4,532) 67 (198) 1,147 (7) (5,555) 28

30 94,775,427 94,775,427 94,775,427 28,191 28,191 28,191 40,931 40,931 40,931 (13,617) 41 (13,576) (13,576) 43,920 (5,555) (450) 5 37, (445) 21 38,208 (15) ,485 1,527 (1,546) (59) (1,605) (1,258) (2,863) (4,313) (715) (5,028) (478) (5,506) $266,855 $266,855 $387,461 $387,461 $(128,508) $(128,508) $358,953 6,743 (4,215) 204 $361,685 $ ,057 $14,452 $(15,192) (11,908) $(27,100) $(47,595) (4,534) $(52,129) 29

31 $ 7,779 47, ,235 (14,385) (737) 973 2,097 (32,428) 33,863 7,189 (10,990) 42, (925) ,309 (42,312) 4,040 14,029 (947) (8,082) (776) (34,048) (66,263) 189,322 (48,836) (4,533) (4,215) 61 65,536 (1,363) 72,434 79,333 (636) $151, , (1,520) (78) (3,426) 3, (1,161) 4, (97) 14 4,470 (4,470) 427 1,482 (100) (854) (82) (3,597) (7,000) 20,000 (5,159) (479) (445) 6 6,923 (144) 7,652 8,381 (68) 15,965 (4,532) 5,114 1,214 (702) (2,538) 547 (80) 117 (380) (3,495) (4,676) 2,567 3,151 (3,693) 79 (117) (23) (3,754) (3,103) 28 (537) 1,164 (40) (337) (2,450) (103) (5,378) 7,000 (1,922) (715) (450) 45 3,958 (50) (5,224) 13, ,381 30

32 a s d 31

33 f g h j k l

34 $151,159 (28) $151,131 15,968 (3) 15,965 8,453 (72) 8, ,512 2, $ ,138 37,598 57,806 $166, ,515 3,972 6,106 17, ,018 3,941 4,932 21,944 33

35 $14,029 2,537 1, , $ ,873 2,873 1,756 1,756 4,629 2,975 2,975 1,724 1,724 4, (32) (32) 70 a s ,420 3,420 3,420 5,986 5,986 5,986 2,566 2,566 2,566 $32,384 32,384 $32,384 $56,664 56,664 $56,664 $24,280 24,280 $24,280 a s

36 $ 5,187 5,187 $5, (139) 151 1,469 (517) 952 a s 19,180 (16,572) (1,292) 1,316 35

37 10,000 7,000 3, ,332 $ 20,376 20,376 2,584 17, ,535 5, , ,882 24,461 $168,421 2,584 5,084 5,084 5,084 2,540 20,376 $ 24,461 48,126 48,126 48,126 24,043 $192,882 36

38 % (13.48) 2.21 (29.64) (1.14) % $ , ,825 (51) (602) (491) ,334 (63) $ 3,334 (203) $ (115) (113) (1,093) (115) (316) (1,093) 63 (115) (253) $ (1,093) 1,048 2,321 $ 9,925 7,598 6,661 71, ,718 9,092 82,528 (8,510) (8,882) (80,553) ,975 (203) (140) (1,925) 5 70 $ 50 (124) (182) $ (1,180) (130) (135) (1,233) (1,038) (29) (9,833) (152) (162) (1,432) (1,444) (508) (13,678) ,922 (1,241) (368) $ (11,756) (1,824) (1,824) $ (17,266) 37

39 2004 3, , $30, , $14,502 1,244 5, , ,228 5, , $11,776 52,366 5, $70,313 $11,630 51,360 5, $68,941 $ 146 1, $1, ,891 2,350 5,241 2,830 2,452 5, (102) (41) 38

40 $ (61.96) a 2, , , , , , , ,697 $21,645 2,252 $23,897 $6,815 1,018 $7,833 $14,830 1,234 $16, s $ 2,833 9,040 $11, ,254 $ 4,284 11,780 $16, ,244 1,697 39

41 87,557 87,557 85,156 2, , (28,788) (28,788) (29,472) 684 (2,051) 87,557 28, , ,628 1, ,217 1, ,217 2,252 (35) 1,914 19, ,390 20,623 (233) 13,072 17, ,947 18,612 (665) 10,212 48,438 27,353 75,791 73,141 2,650 99,019 $ 828, , ,096 22,729 $1,156, $ (272,505) (272,505) (278,978) 6,473 $ (19,415) $ 828, ,505 1,101,330 1,085,074 16,256 $1,175,848 $15,752 5,233 20,985 21,316 (331) $18,118 $189,170 3, , ,214 (2,204) $123,744 $165,380 4, , ,182 (6,298) $ 96,665 $458, , , ,362 25,089 $937,321 63,864 63,864 67,877 (4,013) 115, (26,896) (26,896) (26,891) (5) (12,440) 63,864 26,896 90,760 94,768 (4,008) 127, ,070 (158) 1,369 16, ,436 16,946 (510) 15,802 13, ,090 14,953 (863) 12,706 33,684 25,638 59,322 61,799 (2,477) 97,686 40

42 $8,368 $

43 42

44 ANNUAL2004-JA01 Created in Japan

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