See page 57 for Analyst Certification and Important Disclosures EQUITY RESEARCH: JAPAN Equity Strategy February 13, 2004 Lead Analyst Tsutomu “Tom” Fujita, CFA (81 3) 5574-4889
[email protected] The Global Environment and Takao Kanai (81 3) 5574-4754
[email protected] Socially Responsible Kiyotaka Teranishi Yoshihiko Yamamoto Investment Environmental Technologies Fueling Zones of Growth Global warming is a grave problem, and the heat island effect in Japanese cities is becoming increasingly serious Interest in the environment is growing, but it is no easy matter to manage the trade-off between environmental problems and economic growth Needs for technologies and products to solve environmental problems are growing and are creating a major environmental market For instance, because of the need to solve environmental problems, the shift from gasoline-powered cars to fuel-cell cars is occurring, and natural gas is in the spotlight as an energy source for the electric power industry Toyota Motor is at the global cutting-edge when it comes to low-emission vehicle (LEV) technologies, and we think it stands to benefit more than any other Japanese company Tokyo Gas, Honda Motor, and Mitsubishi Corp. also have an advantage in this area, in our opinion We explore environmental activities in the chemicals, consumer electronics, and pharmaceuticals sectors, spotlighting work by Mitsubishi Gas Chemical (MGC), Ube Industries, Matsushita Electric Industrial (MEI), Sharp, Sanyo Electric, Terumo, and others US investors should contact Smith Barney is a division of Citigroup Global Markets Inc. (the “Firm”), which does and Nikko Citigroup Limited Koichiro Chiwata seeks to do business with companies covered in its research reports.