M ssage from the President
Let me extend my wishes to you for your health and prosperity. We would
like to appreciate for your continued support of our business. We would liketo present to you an overall view of our company’s 40th year of operations,

Impossible mark the starting point of a challenge.

the fiscal year from April 1, 2012 to March 31, 2013.
June 2013
Susumu Kotani, Yushin’s FounderBusiness Results
In this fiscal year, althougheconomy in North America andAsia started to show strength in
the latter half of the period, theworld economy was faltering
through the period due to thedebt and financial instability inEurope and the deceleration of
growth in Chinese economy. In
Japan, the economy turned
upward toward the end of theperiod since the Japanese yen
depreciated against othercurrencies and the stock pricesrose. However, the real economy
through the year was under
severe conditions due to thedeteriorating Japan-China
relation and the electricity supply
instability.
As for industries related to
Yushin, demand was strong in
the automotive industry but
demand in the IT and Electronics
device industry was weak.
Against this background, theYushin Group increased sales oftake-out robots, with customers
recognizing the speed, weightand energy efficiency
advantages of the YC Series.

1

Mayumi Kotani
President

These robots were designed
using Yushin’s structural
optimization technology, which
has won a technology award
from the Japan Society of
Mechanical Engineers. Thus,
consolidated net sales increasedby 3.4% year on year to 14,721
million yen, although the sales in
China and the sales ofcustom-ordered equipment were
below the expectation.
Meanwhile, operating income
increased by 17.7% year on year
to 1,498 million yen, ordinary
income turned up by 38.0% to
1,746 million yen, and net
income increased by 43.2% to1,114 million yen.
For the year under review, afull-year dividend is 30 yen per
share, comprising an interim
dividend of 10 yen per share, a
year-end dividend of 10 yen per
share and a 40th year
commemorate dividend (at the
year-end) of 10 yen per share.

Medium and Long-Term Management Strategies

Outlook for Fiscal Year 2014
( Year ending March 31, 2014)

As for the businessenvironment surrounding the
Yushin Group, although theeconomic recovery is expected,
only a small increase in thecapital investment is anticipatedwithin Japan since
manufacturing shifted tooverseas due to the prolonged
appreciation of the yen. However,overseas capital investment is
expected to be strong
particularly in North America andSouth East Asia.
Under these circumstances,
Yushin will improve the productlineup by enhancing productdevelopment utilizing design
optimization and quickly bringing
the products and service
responding to customers’ needs.
Yushin will also attract newcustomer for the take-out robots
while promoting receiving orders
for custom-ordered equipmentsfrom the area such as medical
and semiconductor-related.
Furthermore, Yushin will increase
earnings by increasing overseas
sales and promote cost-cutting
including overseas procurement.
Yushin forecasts its businessperformance for the FY2014,
based on the current information
available, as follows.
(Millions of yen)

Net sales
Operating income
Ordinary income
Net income

16,400(Y/Y 11.4 %)1,800(Y/Y 20.1 %)2,130(Y/Y 22.0 %)1,310(Y/Y 17.5 %)Yushin aims at becoming
number one company acrossthe board in the “take-out
robot” industry, by speedilydeveloping products
differentiated by their quality
and superiority that meet ourcustomer needs, and by
conducting business even moreaggressively in the global
market. This will be achievedby the following strategies.

by appealing the performancesuperiority such as high-speed,
light weight and power-saving.
2) Develop businesses in thesemiconductor-related andmedical-related area as new
domains that havetechnological synergies.

Market strategies
1) Yushin has developed asales and service network for
take-out robots in Japan, theProduct strategies
U.S, Asia, and Europe. Expand
1) Yushin developedand strengthen the network inhigh-speed take-out robots
areas where business is“HSA” and “TSXA” utilizing
expected to grow, including
optimum design technology inSouth East Asia, Mexico and2010. This technology has
Turkey, to develop a global
been applied hereafter tobusiness that can adequately
general purpose take-out robot. respond to worldwide customer
It is the technology which canpurchases.
largely contribute to2) Increase the sales in
power-saving by reducing
semiconductor-related andweight and power consumption. medical-related area by
For this reason, take-out robot
maximally utilizing the“YC” won “the Japanproduction capacity of
Machinery Federation’s Energy
Technical center.
Efficient Machine Award”.
3) Start businesses in new
Yushin will offer thisdomains so as to generate
definitely-differentiated productsales-related synergies.

2

Outline of Yushin Precision Equipment Co., Ltd.
Our name “Yushin”, means to be both conscientious and trustworthy in Japanese. As these terms
suggest, our goal is to be a company that earns and deserves the trust of customers. This is why weConsolidated Financial Highlights
Yushin Precision Equipment Co., Ltd. and Subsidiaries
Years ended March 31

work constantly to develop products and systems based on what we call “Heartful Technology”, thatreaches heart to heart.
Since 1973, we have been striving to make the molding process more efficient, focusing on thedevelopment and manufacturing of take-out robots for plastic injection molding products. To us, thewords “impossible” or “it can’t be done” mark the starting point of a challenge.
To be successful, we must continue to introduce innovative products, for instance, ultra-high speed
robots and factory automation systems for bringing new capabilities into the customers.
As an innovator in the plastic molding process, Yushin intends to continue developing equipment thatwill improve quality, and simplify the molding new types of products. Taking advance with automation forplastic molding plants, Yushin has been expanding its service network throughout the world.

Thousands of
U.S. Dollars

Millions of Yen
2013

2012

2011

2010

2009

2013

￥ 14,721
1,498￥ 14,240
1,272￥ 12,567
1,097￥ 12,369
752￥ 19,272
2,829$ 156,613
15,943

1,779
1,114
591

1,265
778
565

1,055
729
477

870
487
478

2,353
1,468
686

18,932
11,8596,292

At Year end:
Total assets ・・・・・・・・・・・・・・・・・・・・・・・・・
Equity ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・

23,744
19,86522,641
18,787

21,583
18,495

20,593
18,115

21,977
17,864

252,600
211,336

Per share of common stock:
Net income ・・・・・・・・・・・・・・・・・・・・・・・・・・
Cash dividends ・・・・・・・・・・・・・・・・・・・・・
Equity ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・￥ 63.74
30.00
1,131.63￥ 44.50
20.00
1,072.24￥ 41.73
18.00
1,055.42￥ 27.87
15.00
1,034.11￥ 82.71
28.00
1,019.99

U.S. Dollars$ 0.680.32
12.03

For the year:
Net sales ・・・・・・・・・・・・・・・・・・・・・・・・・・・・
Operating income ・・・・・・・・・・・・・・・・・・
Income before income taxes
and minority interest ・・・・・・・・・・・・・・
Net income ・・・・・・・・・・・・・・・・・・・・・・・・・
R&D Expenses ・・・・・・・・・・・・・・・・・・・・・

Yen%

Equity ratio:
Return on assets ・・・・・・・・・・・・・・・・・・・
Return on equity ・・・・・・・・・・・・・・・・・・・・

3.5 %
4.2

4.8 %
5.8

3.5 %
4.0

2.3 %
2.7

6.3 %
8.2

Notes: The computation of net income per share is based on the weighted average number of shares of common stock outstanding during each year, retroactively adjusted for stock splits,
including those stock splits made after year-end.
Cash dividends per share are dividends applicable to the respective years including dividends to be paid after the end of the year.
The computation of equity per share is based on the number of shares of common stock outstanding each end of year, retroactively adjusted for stock splits, including those stock splits
made after year-end.
Translations of Japanese Yen amounts into U.S. dollar amounts are made at the rate of ¥94 to $1.

(millions of yen)

Net Sales
2009(millions of yen)

Net Income
2009

19,272

2010

12,3692010

2011

12,567

1,468
487

2011

729

2012

14,240

2012

778

2013

14,721

2013

0

5,000

10,00015,00020,00025,00030,000(millions of yen)

Total Assets
2009

21,977

2010

20,593

2011

21,583

2012

22,641

23,744

2013
0

5,000

10,00015,00020,00025,000

1,114
0

500

1,000

1,500

2,500

3,000

(millions of yen)

Equity2009

17,864

2010

18,1152011

18,495

2012

18,787

19,8652013
30,000

2,000

0

5,000

10,00015,00020,00025,00030,000Estimates, Forecasts, and Plans

Serving society through developing plastics industry.
3

The performance estimates, forecasts of the business environment, and business plans contained in this publication are based on the information available at the time of compilation.
Statements herein regarding these performance estimates, forecasts of the business enviorment,and business plans may contain inaccurate elements. In addition, there is a possibility of unknown
risks, uncertainties, and contingencies emerging that may invalidate these performance estimates, forecasts of the business environment, and business plans. As a result, the reader is requested
to understand that actual results / performance, the business environment and business plans in the future may differ materially from the content of this publication.

4

Review of Operations
Sales by product

Sales by region

Parts and maintenance service

Europe 5.6

Europe 5.6

Europe 5.3

Other 1.2

Other 1.2

Other 1.2

16.5

2013
68.9
14.6 Compositionof Sales(%)

2013
Take-out robots

Asia Composition Japan
34.6
of Sales
43.6

(%)
North
America
15.0

Asia
39.8

2012
Composition Japan
36.5
of Sales(%)
North
America
16.8

Asia
37.0

2011
Composition Japan
40.7
of Sales(%)
North
America
15.8

Custom-ordered equipments

Take-out Robots

Custom-ordered Equipments

Parts and maintenance service

Performance of geographic segments【Japan】
Net sales decreased by 5.4% to 12,393 million yen andoperating income also decreased by 2.9% from theprevious FY to 927 million yen, because sales of custom
ordered equipments was not so strong.

As the sales of YC series increased,
net sales of take-out robot increased
by 1,092 million yen (12.1%) from theprevious FY to 10,141 million yen.

Net sales of custom-ordered equipments
decreased by 941 million yen (30.5%) fromthe previous FY to 2,144 million yen due toslow sales in the semiconductor-related
equipments.

Net sales of parts and maintenanceservice increased by 330 million yen(15.7%) from the previous FY to2,436 million yen.

Net Sales

Net Sales

Net Sales(millions of yen)

2011

5,565

8,912

2011

2012

5,705

9,048

2012

2013
0

3,000

Overseas sales

5

6,767

10,141

6,000

9,000

918

1,670
2,281

2013
12,000(millions of yen)

1,581
0

3,085
2,144

2,000

Overseas sales

6,000

2011

963

2012

1,049

1,984
2,105

1,284
0

Overseas sales simply indicate the sales of Yushin for
countries or areas other than Japan. Overseas sales
increased by 6.6% year on year to ¥9,633 million. The
ratio of overseas sales on the total sales was 65.4%, 1.9
point increase from the previous year.
As for each region, sales to North America decreasedby 7.2% to ¥2,215 million, sales to Asia increased by
13.1% to ¥6,411 million and sales to Europe increased by
2.8% to ¥824 million. Southeast Asia, especially Thailand
and Indonesia, Korea and North America were strong.

【Asia】Net sales increased by 27.5% from the previous FY
to 3,460 million yen and operating income increased by
85.5% to 285 million yen due to the good performanceof the subsidiaries in Korea and Thailand.

(millions of yen)

2013
4,000

【North America】
As for the subsidiary in the United States, net sales
increased by 21.2% from the previous FY to 2,199 million
yen and operating income increased by 40.0% to 249
million yen.

Overseas sales

500

1,000

2,436
1,500

2,000

2,500

【Europe】
Net sales increased by 141.8% from the previous FY
to 580 million yen and operating income also increasedby 307.0% from the previous FY to 55 million yen.

Overseas sales

6Global Network (As of June 30, 2013)

Technical CenterTokyo General Sales Office

Headquarters & Factory

Kita-Kanto General Sales Office

USA

Korea

China (Shenzhen)

TaiwanChubu General Sales Office

Thailand

India

UK

China (Guangzhou)

Headquarters & Factory

Yushin Precision Equipment Co., Ltd.
11-260 Kogahonmachi, Fushimi-ku, Kyoto, Japan 612-8492
TEL: +(81)75-933-9555

USA <Ohio>
Canada <Toronto>
USA <Indiana>■■
USA <Rhode Island>
USA <Nebraska>■■■■ ■ USA <North Carolina>
USA <California> ■USA <Texas> ■USA <Tennessee>

UK <Birmingham>■■ Netherlands <Ede>■

Mexico <Guanajuato>

Korea <Seoul>
Korea <Daegu>
China■ Italy <Torino>
China <Shanghai> <Tianjin>■■
China <Guangzhou>
Spain
■
■
■ Japan <Kyoto>■<Barcelona>
China <Shenzhen>■■ Taiwan <Taipei>■■
India <Chennai> ■■Taiwan <Taichung>■■ Philippines <Manila>■■
Vietnam <Hanoi>
Thailand <Bangkok>
Malaysia <Kuala Lumpur>
Vietnam <Ho Chi Minh>

Subsidiaries (Sales)■ Korea■ Taiwan■ China■Indonesia<Jakarta>■■

Australia<Melbourne>

New Zealand<Auckland>■ Indonesia■ Malaysia

Headquarters & Factory
Technical Center

Chubu General Sales Office
Nagoya-Nishi Sales OfficeToyama Sales Office
Nagano Sales Office

Iwate Satellite Office

Fukuoka Sales Office

Tohoku Sales OfficeKita-Kanto General Sales Office

Ohita Satellite Office

Tsukuba Sales Office
Tokyo General Sales Office
Nishi-Kanto Sales Office
Shizuoka Sales Office7

Yushin Precision Equipment Trading (Shenzhen) Co., Ltd.
13F Tower 1, Yang Guang Hua Yi Building NO.3003,
Nan Hai Ave, Nan Shan District, Shen Zhen, China
TEL: +(86)755-8358-0139
Yushin Precision Equipment Trading (Shanghai) Co., Ltd.
Unit E2, 19/Floor, No.1800 Zhongshan West Road, Shanghai, 200235 China
TEL: +(86)21-6440-1586~7
Tianjin Office
PT. Yushin Precision Equipment Indonesia <Jakarta>
Plaza Sentral 19th Floor, Japan Jenderal Sudirman No.47, Jakarta 12930, Indonesia
TEL: +(62)21-571-1737
Yushin Precision Equipment Sdn. Bhd. (Malaysia) <Kuala Lumpur>
No. 13A, Jalan Kenari 17D, Bandar Puchong Jaya,
47170 Puchong, Selangor Darul Ehsan, Malaysia
TEL: +(60)3-8076-2177■ Thailand

Yushin Precision Equipment (Thailand) Co., Ltd. <Bangkok>
179/346 Supalai Place, Soi, Sukhumvit 39 (Prompong),
Sukhumvit Rd., Klongton Nua, Wattana, Bangkok 10110 Thailand
TEL: +(66)2-662-2580~2■ India

Yushin Precision Equipment (India) Pvt. Ltd. <Chennai>
Kalyani Towers, 3rd Floor, T2, New No. 69, Old No. 174C,
2nd Avenue, Ashok Nagar, Chennai 600 083 India
TEL: +(91)44-4231-8005
Yushin Automation Limited <Birmingham>
Unit 15-16 Aston Fields Industrial Estate, Aston Road,
Bromsgrove, Worcestershire B60 3EX, United Kingdom
TEL: +(44)1527-558-218

Nishi-Nihon General Sales Office
Hiroshima Sales Office

Yushin Korea Co., Ltd. <Seoul>
Tawon Techno-town F-101, 98 Okuchundong-Ro, Siheung-Shi,
Gyeonggi-Do, 429-450, Korea
TEL: +(82)31-433-9655~6
Daegu Office
Yushin Precision Equipment (Taiwan) Co., Ltd. <Taipei>
10F., No.45, Sec.1, Minquan E. Rd., Zhongshan District, Taipei City 104, Taiwan (R.O.C.)
TEL: +(886)2-2585-0507
Taichung Office

■ UK

■ USA

Yushin America, Inc. <Rhode Island>
35 Kenney Drive, Cranston, RI 02920 U.S.A.
TEL: +(1)401-463-1800
California Office
Ohio OfficeTexas Office
North Carolina Office
Indiana Office
Nebraska OfficeTennessee Office
Mexico Branch

Subsidiaries (Factory)■ ChinaGuangzhou Yushin Precision Equipment Co., Ltd.
No.2 Chuangli Road, XiangShan street, Zengcheng
Economic & Technological Development District,
Guangzhou City, Guangdong Province, China
TEL: +(86)20-8269-0091

Representative offices■ Vietnam Representative Office <Hanoi>

5th Floor NOZA Building, 243 Cau Giay Street, Cau Giay District,Hanoi, Vietnam
TEL: +(84)43-767-3844

Ho Chi Minh Representative Office
No 141 D3 St, Ward 25, Binh Thanh Dist, Ho Chi Minh City
TEL: +(84)83-899-0662■ Philippines Representative Office <Manila>

Unit 1-D, Grnd. Flr., APMC Bldg. 136 Amorsolo St., cor.
Gamboa Legaspi Village, Makati City, Philippines
TEL: +(63)2-893-7546

Agents■ New ZealandTasman Machinery <Auckland>
14-16 Auburn St, Grafton, Auckland 1023 (New Zealand)
TEL: +(64)9-379-5716■ Australia

Tasman Machinery Pty Limited <Melbourne>
3/51 Grange Road, Cheltenham Victoria 3192 (Australia)
TEL: +(61)3-9584-8355■ Itary

MACAM S.r.l. <Torino>
Via Asti, 88/A 10090 Rivoli (TO), Italia
TEL: +(39)11-959-50-57■ The Netherlands

Polymac-Robotics B.V. <Ede>
Morsestraat 20 Ede 6716 AH EDE, The Netherlands
TEL: +(31)318-648615■ SpainMecman Industrial <Barcelona>
Avda. Principal, 41 Pol. Ind. Can Clapers 08181 Sentmenat(Barcelona) Apdo, correos, 98, Spain
TEL: +(34)902-636-717■ Canada

En-Plas, Inc. <Toronto>
1395 Morningside Avenue Scarborough, (Toronto)
Ontario M1B 3J1, Canada
TEL: +(1)416-286-3030

8

Topics

Indonesia〈Jakarta〉

Energy-Saving YC Series Take-Out Robot for Injection Molding Machines
Earns Japan Machinery Federation’s Energy Efficient Machine Award
YC Series of take-out robots for plastic injection
molding machines received the Japan Machinery
Federation “Energy Efficient Machine” Chairman’s
Award in 2012. The JMF’s annual Energy Efficient
Machine awards recognize superior energy-saving
machines that have been developed andcommercialized within the past 5 years. Machines
eligible for the award are (1) general machinery as well
as facilities and systems (especially those that utilize
alternative natural resources or non-recycled resources
such as industrial waste or methane gas); (2) gauges
and control systems that contribute to energy
efficiency; and (3) commercial motor vehicles or air
conditioners.
Yushin engineers conceived the YC series withdesign optimization* via CAE (computer-aided
engineering). Engineers optimized moving
components to reduce weight from 133.6kg to 99.5kg,
a 25.5% weight reduction that led directly to energy
savings: the YC’s electrical consumption dropped
26%, from 420W to 312W per cycle. Also, the YC’s
9standard-equipped ECO Vacuum compressed-air
economizing tool lowered factory air usage from 19Nl
to 4.8Nl per cycle, a 75% reduction. Additionally,
engineers improved the YC’s vibration damping tonearly eliminate arm-end oscillations and reduce
settling time by 72%, thereby shortening overallmolding cycles. All these improvements raised therobot’s production merits considerably. YC series
robots debuted in July of 2011 and have already soldmore than 2,500 units.
* Yushin’s Design Optimization collaboration with Kyoto
University earned the Japan Society of MechanicalEngineers’ Technology Award in 2011.

Yushin Opens Subsidiary in Indonesia
Yushin has established a wholly-owned subsidiary inJakarta, Indonesia: PT. Yushin Precision Equipment
Indonesia in November 2012.
Yushin has studied the Indonesian market since first
opening a remote office there in 1998. Presently,
Indonesia has seen a remarkable influx of Japanese andKorean companies, mainly in the motorcycle,
automotive, and electronics industries. The new Yushin
subsidiary office promises to grow Indonesian domestic
sales and offer solid technical support for Yushin in thisgrowing market.
The Indonesian subsidiary houses a team of 2
Japanese and 8 local staff who conduct sales, offer
technical support, and perform installations andmaintenance of Yushin’s primary products: take-out
robots for injection molding machines. The office,located in Indonesia’s capital city Jakarta, isconveniently close to the region’s major industrial parks.
With the new Indonesian office, Yushin now has a
network of 11 subsidiaries outside of Japan.

New Technical Center to Expand
Business and Production
Yushin opened a new facility “Technical Center” about
eight minutes’ walk northeast of our headquarters in
Kyoto, Japan. The facility, newly built on a 10,850m2 lot,
was conceived as a manufacturing center for Yushin’s
enterprises in new high-tech markets and began
operations on April 1, 2013.
Yushin built Technical Center to strengthen production
capabilities for the semiconductor and medical fields.
Yushin purchased land for the facility in July 2011, andconstruction of the four-floor, 9,577m2 facility began inAugust 2012. Yushin invested approximately 1.1 billion
yen to construct the new location.
The technical center’s primary purpose is to house
Yushin’s production of semiconductor-related equipment
and specialized automation for medical applications.
Yushin’s annual net sales target for products in these new
fields is 5 billion yen by the fiscal year ending March 2016.
Through this and other measures around the world, Yushin
is dedicated to building an organization that reacts quickly
to emerging market demands with ever higher quality
products.

10Board of Directors and Auditors

Financial Review

Yushin Precision Equipment Co., Ltd. and Subsidiaries(As of June 30, 2013)

President and Representative Director
Mayumi Kotani

Executive Managing Director
Satoshi KimuraManaging Director
Yasuharu Odachi

Managing Director
Yasushi Kitagawa

Director
Yuji Tsujimoto

Full-time Corporate Auditor
Shujiro Sawada

1.Net Sales

4.Cash Flow

Net sales increased by 3.4% year on year to
14,721 million yen. By products, net sales oftake-out robot increased by 1,092 million yen(12.1%) from the previous FY to 10,141 million yen,with customers recognizing the speed, weight andenergy efficiency advantages of the YC Series.
These robots were designed using Yushin’s
structural optimization technology, which has won
a technology award from the Japan Society of
Mechanical Engineers. Net sales ofcustom-ordered equipments was decreased by
941 million yen (30.5%) from the previous FY to
2,144 million yen due to slow sales in thesemiconductor-related equipments. Net sales ofparts and maintenance service increased by 330
million yen (15.7%) from the previous FY to 2,436
million yen.

The balance of cash and cash equivalents on March
31, 2013 decreased by 448 million yen from the endof the previous fiscal year to 7,564 million yen. Main
reasons are as follows.

2.Operating Income and Net Income

Outside Corporate Auditor
Yasuhiro Orita

Outside Corporate Auditor
Takao Yoshikawa

Operating income increased by 17.7% year on year
to 1,498 million yen and net income increased by
43.2% to 1,114 million yen. This was achieved mainlyby the increased profitability and units of sales oftake-out robot, earnings expansion led by sales
increase in overseas subsidiaries and continuous
cost-cut activity.

Outside Corporate Auditor
Hiroho Kamakura

Organization Chart(As of June 30, 2013)

Board of Directors

Corporate Auditors

President

Executive
Managing Director

11

Quality
Control Dep.

【Cash flow from investment activities】
Due to the purchases of property (777 million yen),cash flow from investment activities for the fiscal year
ended March 31, 2013 was a net outflow of 781
million yen (it was a net outflow of 1,920 million yen in
the previous fiscal year).
【Cash flow from financing activities】
Due to the dividends paid of 350 million yen, cash
flow from financing activities was a net outflow of 351
million yen (it was a net outflow of 409 million yen in
the previous fiscal year).

3.Financial Condition
General meeting ofshareholders

Internal
Auditing Dep.

【Cash flow from operating activities】
Income before income taxes and minority interests
adjustment was 1,779 million yen, but due to thedecrease of 818 million yen in notes and accounts
payable, the increase of 258 million yen in inventories
and income taxes paid of 648 million yen, cash flowfrom operating activities for the fiscal year ended
March 31, 2013 was a net inflow of 520 million yen (itwas a net inflow of 584 million yen in the previous
fiscal year).

Corporate
Planning Dep.

Sales & Customer
service H.Q

Research &Development H.Q

Sales Dep.

Customer
Service Dep.

Production H.Q

Purchase H.Q

Administrative
H.Q

Total assets increased by 1,102 million yen from theend of the previous fiscal year to 23,744 million yen due
to the increase of 959 million yen in buildings andstructures by the construction of the Technical center,
285 million yen in work-in-process, and 179 million yen
in merchandise and finished goods. Cash and deposits
decreased by 401 million yen.
Total liabilities increased by 24 million yen from theend of the previous fiscal year to 3,878 million yen.
Net assets increased by 1,078 million yen from theend of the previous fiscal year to 19,865 million yen due
to the rise of retained earnings by 765 million yen andforeign currency translation adjustments by 263 million
yen.

12

Consolidated Balance Sheet
Yushin Precision Equipment Co., Ltd. and Subsidiaries
March 31, 2013ASSETS

Thousands of
U.S. Dollars(Note 1)Millions of Yen

2013

2012

2013

Cash and cash equivalents (Note 10) ・・・・・・・・・・・・・・・・・・・・・・・￥ 7,564￥ 8,013$ 80,476

Short-term investments (Notes 3 and 10)・・・・・・・・・・・・・・・・・・・・

81

33

861

CURRENT ASSETS:

Receivables (Note 10) :LIABILITIES AND EQUITYCURRENT LIABILITIES:

Thousands of
U.S. Dollars(Note 1)Millions of Yen

2012

2013

2013

Payables (Note 10) :Trade notes

・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・

Trade accounts

￥

72

￥

428

$

771

・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・

1,647

1,885

17,524

Trade notes ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・

933

868

9,927

Construction and other ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・

938

469

9,989

Trade accounts ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・

3,668

3,801

39,028

Income taxes payable (Note 10) ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・

280

300

2,988

Allowance for doubtful receivables ・・・・・・・・・・・・・・・・・・・・・・・・・

(16)

(18)

(170)

Accrued expenses ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・

316

294

3,368

Inventories (Note 4) ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・

4,028

3,615

42,854

Warranty reserve ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・

127

104

1,351

Deferred tax assets (Note 7) ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・

392

365

4,178

Other current liabilities (Note 7) ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・

316

245

3,369

Other current assets ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・

370

283

3,937

3,700

3,728

39,362

Total current assets ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・

17,022

16,964

181,094

Liability for retirement benefits to directors (Note 5) ・・・・・・・・・

66

66

710

Total current liabilities

・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・

LONG-TERM LIABILITIES:PROPERTY, PLANT AND EQUIPMENT:Land ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・

3,953

3,935

42,057

Deferred tax liabilities (Note 7) ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・

32

Buildings and structures ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・

3,972

2,915

42,264

Other (Note 5) ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・

79

59

843

Machinery and equipment ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・

333

289

3,552

Total long-term liabilities ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・

178

126

1,901

Furniture and fixtures ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・

1,205

1,079

12,819Construction in progress ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・

3

3

35

Total ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・

9,468

8,222

100,729

Accumulated depreciation ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・(3,332)(3,117)(35,448)

17,819,033 shares in 2013 and 2012 ・・・・・・・・・・・・・・・・・・・・・

1,985

1,985

21,124

Net property, plant and equipment ・・・・・・・・・・・・・・・・・・・・・・・・

6,136

5,105

65,281

Capital surplus ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・

2,023

2,023

21,530Retained earnings ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・

16,39015,625

174,367

(348)

(347)

(3,708)347

EQUITY (Notes 6 and 13):
Common stock, authorized, 40,000,000 shares; issued,

Treasury stock - at cost:
329,376 shares in 2013 and 328,960 shares in 2012 ・・・・・

INVESTMENTS AND OTHER ASSETS:

Accumulated other comprehensive income:Investment securities (Notes 3 and 10)・・・・・・・・・・・・・・・・・・・・・・・

246

241

2,620

Insurance funds ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・

135

123

1,437

Unrealized gain on available-for-sale securities ・・・・・・・・・・

58

47

619

Prepaid pension cost (Note 5) ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・

53

65

565

Foreign currency translation adjustments ・・・・・・・・・・・・・・・・

(317)

(581)

(3,381)

Deferred tax assets (Note 7) ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・

6

16

65

Total ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・

19,791

18,753

210,551

Other assets ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・

144

125

1,536

Minority interests ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・

73

33

785

Total investments and other assets ・・・・・・・・・・・・・・・・・・・・・・・

585

572

6,225

Total equity ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・

19,86518,787211,336

TOTAL ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・￥ 23,744￥ 22,641$ 252,600￥ 23,744￥ 22,641$ 252,600

TOTAL

・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・

See notes to consolidated financial statements.

13

14

Consolidated Statement of Income

Consolidated Statement of Changes in Equity

Yushin Precision Equipment Co., Ltd. and Subsidiaries
Year Ended March 31, 2013

Yushin Precision Equipment Co., Ltd. and Subsidiaries
Year Ended March 31, 2013

2012

2013
￥ 14,721
8,950
5,770

￥ 14,240
8,810
5,429

$ 156,613
95,221
61,391SELLING, GENERAL AND
ADMINISTRATIVE EXPENSES (Note 8) ・・・・・・・・・・・・・・・・・・
Operating income ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・

4,272
1,498

4,157
1,272

45,447
15,943

23
195
34
27
280

31
(71)
32
(7)

249
2,074
369
295
2,988

1,779

1,265

18,932

504
(20)
484
780
2

6,084
229
6,313
12,618759

INCOME TAXES (Note 7):
Current ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・
Deferred ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・
Total income taxes ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・
NET INCOME BEFORE MINORITY INTERESTS ・・・・・・・・
MINORITY INTERESTS IN NET INCOME ・・・・・・・・・・・・・・・・
NET INCOME ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・

571
21
593
1,186
71
￥

￥

1,114

778

Yen
PER SHARE OF COMMON STOCK (Notes 2.o and 12):Net income ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・
Cash dividends applicable to the year ・・・・・・・・・・・・・・・・・・・・・・・￥ 63.74
30.00$

11,859Millions of Yen
Accumulated otherComprehensive income

2013

NET SALES ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・
COST OF SALES ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・
Gross profit ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・

OTHER INCOME (EXPENSES):Interest and dividend income ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・
Foreign exchange gain (loss) ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・
Gain from the sale of short-term investment ・・・・・・・・・・・・・・・・
Other-net ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・
Other income (expenses) - net ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・
INCOME BEFORE INCOME TAXES AND
MINORITY INTERESTS・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・

Thousands

Thousands of U.S. Dollars(Note 1)Millions of Yen

Outstanding
Number of Common
Shares ofStock
Common Stock

BALANCE, APRIL 1, 2011 ・・・・・・・・・・・・・・・・・

CapitalSurplus

Unrealized
Foreign
Gain onCurrency
Retained Treasury
Available-forTranslation
Earnings
Stock
Sale Securities Adjustments

17,491 ￥ 1,985 ￥ 2,023 ￥15,249 ￥ (347)

Minority
Interests

Total

Total
Equity￥ 51 ￥ (503) ￥18,459￥35 ￥18,495

Net income ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・

778

778

778

Cash dividends, ￥23 per share・・・・・・・・・・・・・・・・・・

(402)

(402)

(402)

(0)

(0)

Purchase of treasury stock ・・・・・・・・・・・・・・・・・・・・・・(0)

Net change in the year・・・・・・・・・・・・・・・・・・・・・・・・・・(0)

BALANCE, MARCH 31, 2012・・・・・・・・・・・・・・・

17,4901,985

2,023 15,625

(347)

(3)

(78)

(81)

(2)

(83)

47

(581) 18,753

33

18,787

Net income ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・

1,114

1,114

1,114

Cash dividends, ￥20 per share・・・・・・・・・・・・・・・・・・

(349)

(349)

(349)

(0)

(0)

Purchase of treasury stock ・・・・・・・・・・・・・・・・・・・・・・
Net change in the year・・・・・・・・・・・・・・・・・・・・・・・・・・・
BALANCE, MARCH 31, 2013 ・・・・・・・・・・・・・・

(0)
(0)

10

17,490 ￥ 1,985 ￥ 2,023 ￥16,390 ￥ (348)

263

273

￥ 58 ￥ (317) ￥19,791

40

313

￥ 73 ￥19,865

U.S. Dollars￥ 44.50
20.00

$

0.68
0.32
Thousands of U.S. Dollars (Note 1)
Accumulated otherComprehensive income

Consolidated Statement of Comprehensive Income

CommonStock

Yushin Precision Equipment Co., Ltd. and Subsidiaries
Year Ended March 31, 2013

BALANCE, MARCH 31, 2012・・・・・・・・・・・・・・・
Thousands of U.S. Dollars(Note 1)Millions of Yen

15

Retained
Earnings

TreasuryStock$ 21,124 $ 21,530 $166,228 $ (3,701)

Unrealized
Foreign
Gain onCurrency
Available-for- Translation
Sale Securities Adjustments

Minority
Interests

Total

Total
Equity$ 506 $ (6,182) $199,506$ 359 $ 199,865

Net income ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・

11,85911,85911,859Cash dividends, $0.21 per share・・・・・・・・・・・・・・・・・(3,721)(3,721)(3,721)

(7)

(7)

2013

2012

2013

NET INCOME BEFORE MINORITY INTERESTS ・・・・・・・・￥ 1,186￥ 780$ 12,618

Net change in the year ・・・・・・・・・・・・・・・・・・・・・・・・・・

OTHER COMPREHENSIVE INCOME (Note 11) :Unrealized gain (loss) on available-for-sale securities ・・・・・・・
Foreign currency translation adjustments ・・・・・・・・・・・・・・・・・・・
Total other comprehensive income ・・・・・・・・・・・・・・・・・・・・・・・・

10
275
286

(3)
(81)
(85)

113
2,930
3,043

BALANCE, MARCH 31, 2013 ・・・・・・・・・・・・・・

COMPREHENSIVE INCOME (Note 11) ・・・・・・・・・・・・・・・・・・・￥ 1,472￥ 695$ 15,662

TOTAL COMPREHENSIVE INCOME
ATTRIBUTABLE TO (Note 11) :Owners of the parent ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・
Minority interests ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・￥ 1,388
83

￥ 696
(0)

$ 14,773
889

See notes to consolidated financial statements.

CapitalSurplusPurchase of treasury stock・・・・・・・・・・・・・・・・・・・・・・(7)
113$ 21,124 $ 21,530 $174,367 $ (3,708)

2,800

2,914

$ 619 $ (3,381) $ 210,551

425

3,340

$ 785 $ 211,336

See notes to consolidated financial statements.

16

Consolidated Statement of Cash Flows

Notes to Consolidated Financial Statements
Yushin Precision Equipment Co., Ltd. and Subsidiaries
Year Ended March 31, 2013

Yushin Precision Equipment Co., Ltd. and Subsidiaries
Year Ended March 31, 2013

Thousands of
U.S. Dollars(Note 1)Millions of Yen

2013

2012

2013

￥ 1,779￥ 1,265$ 18,932

(648)
221

(349)
219

(6,895)
2,356

226
(258)
(818)
(40)
58
(1,259)

(428)
(924)
476
1
324
(680)

2,410
(2,751)(8,702)(434)
620(13,396)

Net cash provided by operating activities ・・・・・・・・・・・・・・・・

520

584

5,536

INVESTING ACTIVITIES:
Increase in short-term investments ・・・・・・・・・・・・・・・・・・・・・・・・・・・
Purchases of property, plant and equipment ・・・・・・・・・・・・・・・・
Proceeds from sales of property, plant and equipment ・・・・・
Purchases of investment securities ・・・・・・・・・・・・・・・・・・・・・・・・・・
Proceeds from sales of investment securities・・・・・・・・・・・・・・・・・・・・
Other - net ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・
Net cash used in investing activities ・・・・・・・・・・・・・・・・・・・・・・

(71)
(777)
1
(1)
46
19
(781)

(2,008)1(1)
1
86(1,920)(755)(8,266)
19
(17)
497
206
(8,316)OPERATING ACTIVITIES:
Income before income taxes and minority interests ・・・・・・・・・
Adjustments for:
Income taxes - paid ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・
Depreciation and amortization ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・
Changes in assets and liabilities:
Decrease (increase) in trade receivables ・・・・・・・・・・・・・・・・・
Increase in inventories ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・(Decrease) increase in trade payables ・・・・・・・・・・・・・・・・・・・・(Decrease) increase in provision for doubtful receivables ・・・
Other - net ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・
Total adjustments ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・

FINANCING ACTIVITIES:Dividends paid ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・
Dividends paid to minority interests ・・・・・・・・・・・・・・・・・・・・・・・・・
Purchase of treasury stock ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・
Proceeds from stock issuance to minority shareholders ・・・・

(350)
(1)
(0)
0

(402)
(5)
(0)

(3,726)(12)(7)
2

Net cash used in financing activities ・・・・・・・・・・・・・・・・・・・・・・

(351)

(409)

(3,744)

164

(73)

1,752

(448)

(1,818)(4,771)

8,013

9,831

85,248￥ 7,564￥ 8,013$ 80,476

EFFECT OF EXCHANGE RATE CHANGES ON
CASH AND CASH EQUIVALENTS ・・・・・・・・・・・・・・・・・・・・・・・・・
NET DECREASE IN CASH AND CASH
EQUIVALENTS ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・
CASH AND CASH EQUIVALENTS,
BEGINNING OF YEAR ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・
CASH AND CASH EQUIVALENTS,
END OF YEAR ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・

1.BASIS OF PRESENTATION OF CONSOLIDATED FINANCIAL STATEMENTS
The accompanying consolidated financial statements have been
prepared in accordance with the provisions set forth in theJapanese Financial Instruments and Exchange Act and its related
accounting regulations and in conformity with accounting
principles generally accepted in Japan ("Japanese GAAP"), which
are different in certain respects as to the application anddisclosure requirements of International Financial ReportingStandards.
In preparing these consolidated financial statements, certain
reclassifications and rearrangements have been made to theconsolidated financial statements issued domestically in order topresent them in a form which is more familiar to readers outside
Japan. In addition, certain reclassifications have been made in
the 2012 consolidated financial statements to conform to theclassifications used in 2013.

The consolidated financial statements are stated in Japaneseyen, the currency of the country in which Yushin Precision
Equipment Co., Ltd. (the "Company") is incorporated andoperates. The translations of Japanese yen amounts into U.S.
dollar amounts are included solely for the convenience of readers
outside Japan and have been made at the rate of ¥ 94 to $1, theapproximate rate of exchange at March 31, 2013. Suchtranslations should not be construed as representations that theJapanese yen amounts could be converted into U.S. dollars atthat or any other rate.
Amounts less than one million yen and one thousand U.S. dollars
are rounded down, except for per-share data. Therefore, total or
subtotal amounts may not correspond with the aggregation ofsuch account balances.

2.SUMMARY OF SIGNIFICANT ACCOUNTING POLICIESa. Consolidation - The consolidated financial statements as ofMarch 31, 2013, include the accounts of the Company and allof its subsidiaries (together, the "Group").
Under the control or influence concept, those companies inwhich the Company directly is able to exercise control over
operations are fully consolidated.
All significant intercompany balances and transactions havebeen eliminated in consolidation. All material unrealized profit
included in assets resulting from transactions within the Groupis also eliminated.
In November 2012, Yushin Precision Equipment (Singapore)
Pte. Ltd. was removed from the scope of consolidation
following completion of the subsidiary's liquidation.
PT. Yushin Precision Equipment Indonesia was establishedduring the year ended March 31, 2013, and therefore became
consolidated subsidiary of the Company.
b. Unification of Accounting Policies Applied to Foreign
Subsidiaries for the Consolidated Financial
Statements - In May 2006, the Accounting Standards Boardof Japan (the "ASBJ") issued ASBJ Practical Issues Task Force(PITF) No. 18, "Practical Solution on Unification of Accounting
Policies Applied to Foreign Subsidiaries for the Consolidated
Financial Statements." PITF No. 18 prescribes that theaccounting policies and procedures applied to a parent
company and its subsidiaries for similar transactions andevents under similar circumstances should in principle beunified for the preparation of the consolidated financial
statements. However, financial statements prepared by foreignsubsidiaries in accordance with either International Financial
Reporting Standards or the generally accepted accounting
principles in the United States of America tentatively may be
used for the consolidation process, except for the following
items which should be adjusted in the consolidation process sothat net income is accounted for in accordance with Japanese
GAAP, unless they are not material: (a) amortization of goodwill;(b) scheduled amortization of actuarial gain or loss of pensions

that has been directly recorded in equity; (c) expensing
capitalized development costs of R&D; (d) cancellation of thefair value model accounting for property, plant and equipment
and investment properties and incorporation of the cost modelaccounting; and (e) exclusion of minority interests from net
income, if contained in net income.
c. Cash Equivalents - Cash equivalents are short-term
investments that are readily convertible into cash and that are
exposed to insignificant risk of changes in value. Cashequivalents include time deposits and certificate of deposits, allof which mature or become due within three months of thedate of acquisition.
d. Inventories - Inventories are principally stated at the lower ofcost, determined by the specific identification method forfinished products and work in processes, and by the averagemethod for raw materials and supplies, or net selling value.
e. Securities - Securities are investment securities in the
consolidated balance sheet. All investment securities areclassified as available-for-sale securities, which are notclassified as either trading securities or held-to-maturity debt
securities, and are reported at fair value, with unrealized gains
and losses, net of applicable taxes, reported in a separate
component of equity. The cost of securities sold is determinedbased on the moving-average method. For
other-than-temporary declines in fair value, investment
securities are reduced to net realizable value by a charge toincome.
f. Property, Plant and Equipment - Property, plant andequipment are stated at cost. Depreciation of property, plantand equipment of the Group is principally computed by the
declining-balance method at rates based on the estimateduseful lives of the assets. The range of useful lives is principallyfrom 13 to 40 years for buildings and structures and from 5 to
12 years for machinery and equipment.

See notes to consolidated financial statements.

1718

g. Long-Lived Assets - The Group reviews its long-lived
assets for impairment whenever events or changes incircumstance indicate the carrying amount of an asset or
asset group may not be recoverable. An impairment loss
would be recognized if the carrying amount of an asset or
asset group exceeds the sum of the undiscounted future
cash flows expected to result from the continued use andeventual disposition of the asset or asset group. The
impairment loss would be measured as the amount by which
the carrying amount of the asset exceeds its recoverable
amount, which is the higher of the discounted cash flows
from the continued use and eventual disposition of the asset
or the net selling price at disposition.
h. Warranty Reserve - In order to provide for future warranty
expenses for the Group's products, a warranty reserve isestimated and recorded principally on the basis of theCompany's historical experience.
i. Retirement Benefits - The Company has a funded defined
benefit pension plan and defined contribution pension plan
covering substantially all of its employees. Certain
subsidiaries have a defined benefit pension plan or a defined
contribution pension plan.
The Company has adopted an accounting standard for
employees' retirement benefits and accounted for the asset
for retirement benefits based on the projected benefit
obligations and plan assets at the balance sheet date.
Retirement benefits to directors are provided at the estimatedamount, which would be required if all directors retired at thebalance sheet date. The Company terminated its retirement
benefit plan on June 29, 2006, and no additional provisions
have been recorded since then. As of March 31, 2013, thebalance of the liability for retirement benefits to directors was¥66 million ($710 thousand), provided in proportion to theterm that present directors had been in place before June 29,
2006.
j. Research and Development Costs - Research anddevelopment costs are charged to income as incurred.
k. Bonuses to Directors - Bonuses to directors are accruedat the year-end to which such bonuses are attributable.
l. Income Taxes - The provision for income taxes iscomputed based on the pretax income included in the
consolidated statement of income. The asset and liability
approach is used to recognize deferred tax assets andliabilities for the expected future tax consequences of
temporary differences between the carrying amounts and thetax bases of assets and liabilities. Deferred taxes aremeasured by applying currently enacted tax laws to thetemporary differences.
m. Foreign Currency Transactions - All short-term andlong-term monetary receivables and payables denominated inforeign currencies are translated into Japanese yen at theexchange rates at the balance sheet date. The foreignexchange gains and losses from translation are recognized in
the consolidated statement of income to the extent that they
are not hedged by forward exchange contracts.
n. Foreign Currency Financial Statements - The balance
sheet accounts of the consolidated foreign subsidiaries aretranslated into Japanese yen at the current exchange rate as

19of the balance sheet date except for equity, which istranslated at the historical rate.
Differences arising from such translation are shown as"Foreign currency translation adjustments" underaccumulated other comprehensive income in a separate
component of equity.
Revenue and expense accounts of consolidated foreignsubsidiaries are translated into Japanese yen at the averageexchange rate.
o. Per-Share Information - Basic net income per share iscomputed by dividing net income available to commonshareholders by the weighted-average number of commonshares outstanding for the period.
Diluted net income per share is not disclosed because there
are no outstanding potentially dilutive securities.
Cash dividends per share presented in the accompanying
consolidated statement of income are dividends applicable to
the respective years, including dividends to be paid after theend of the year.
p. Accounting Changes and Error Corrections - In
December 2009, the ASBJ issued ASBJ Statement No. 24,"Accounting Standard for Accounting Changes and Error
Corrections" and ASBJ Guidance No. 24, "Guidance on
Accounting Standard for Accounting Changes and Error
Corrections." Accounting treatments under this standard andguidance are as follows: (1) Changes in Accounting Policies When a new accounting policy is applied following revision of an
accounting standard, the new policy is applied retrospectively
unless the revised accounting standard includes specifictransitional provisions, in which case the entity shall comply withthe specific transitional provisions. (2) Changes in Presentation When the presentation of financial statements is changed,
prior-period financial statements are reclassified in accordancewith the new presentation. (3) Changes in Accounting Estimates- A change in an accounting estimate is accounted for in the
period of the change if the change affects that period only, and isaccounted for prospectively if the change affects both the periodof the change and future periods. (4) Corrections of Prior-Period
Errors - When an error in prior-period financial statements is
discovered, those statements are restated.
q. New Accounting Pronouncements
Accounting Standard for Retirement Benefits - On
May 17, 2012, the ASBJ issued ASBJ Statement No. 26,"Accounting Standard for Retirement Benefits" and ASBJ
Guidance No. 25, "Guidance on Accounting Standard for
Retirement Benefits", which replaced the AccountingStandard for Retirement Benefits that had been issued by theBusiness Accounting Council in 1998 with effective date ofApril 1, 2000, and the other related practical guidance, andfollowed by partial amendments from time to time through2009.
Major changes are as follows:(a) Treatment in the balance sheet
Under the current requirements, actuarial gains and losses
and past service costs that are yet to be recognized in

profit or loss are not recognized in the balance sheet, andthe difference between retirement benefit obligations andplan assets (hereinafter, "deficit or surplus"), adjusted bysuch unrecognized amounts, is recognized as a liability orasset.
Under the revised accounting standard, actuarial gains
and losses and past service costs that are yet to berecognized in profit or loss shall be recognized withinequity (accumulated other comprehensive income), after
adjusting for tax effects, and the deficit or surplus shall berecognized as a liability (liability for retirement benefits) or
asset (asset for retirement benefits).
(b) Treatment in the statement of income and the statementof comprehensive income
The revised accounting standard does not change how torecognize actuarial gains and losses and past service
costs in profit or loss. Those amounts would berecognized in profit or loss over a certain period no longer
than the expected average remaining working lives of theemployees. However, actuarial gains and losses and past
service costs that arose in the current period and have
not yet been recognized in profit or loss shall be included
in other comprehensive income and actuarial gains andlosses and past service costs that were recognized inother comprehensive income in prior periods and thenrecognized in profit or loss in the current period shall betreated as reclassification adjustments.

(c) Amendments relating to the method of attributing
expected benefit to periods and relating to the discountrate and expected future salary increases
The revised accounting standard also made certain
amendments relating to the method of attributing
expected benefit to periods and relating to the discountrate and expected future salary increases.
This accounting standard and the guidance for (a) and (b)above are effective for the end of annual periods beginningon or after April 1, 2013, and for (c) above are effective forthe beginning of annual periods beginning on or after April 1,
2014, or for the beginning of annual periods beginning on orafter April 1, 2015, subject to certain disclosure in March
2015, both with earlier application being permitted from the
beginning of annual periods beginning on or after April 1,
2013. However, no retrospective application of thisaccounting standard to consolidated financial statements inprior periods is required.
The Company expects to apply the revised accounting
standard for (a) and (b) above from the end of the annual
period beginning on April 1, 2013, and for (c) above from the
beginning of the annual period beginning on April 1, 2014,
and is in the process of measuring the effects of applying therevised accounting standard in future applicable periods.

3.SECURITIES(1) Short-term Investments

Time deposits ・・・・・・・・・・・・・・・・・・・・

Millions of Yen

Thousands of U.S. Dollars

2013

2012

2013

￥

￥

$ 861

81

33

(2) Investment Securities
The carrying amounts and aggregate fair values of investment securities as of March 31, 2013 and 2012, were as follows:

Millions of Yen

2012

2013
Unrealized Unrealized Fair Value
Securities classified as:
Cost
Gains
LossesAvailable-for-sale:90￥ 246
Equity securities・・・・・・・・・・・・・・・・・・・ ￥ 155 ￥

Cost
￥ 166

Unrealized Unrealized Fair Value
Gains
Losses
￥

76

￥

0

￥ 241

Thousands of U.S. Dollars

2013
Unrealized Unrealized Fair Value
Securities classified as:
Cost
Gains
LossesAvailable-for-sale:$ 2,620$ 964
Equity securities・・・・・・・・・・・・・・・・・・・ $ 1,655(3) The proceeds, realized gains and realized losses of the available-for-sale securities which were sold during
the year ended March 31, 2013, were as follows:
Millions of Yen
March 31, 2013

Proceeds

Available-for-sale: Equity securities・・・・・￥

46

Realized Gains￥

Realized Loss

34

20

Millions of Yen
March 31, 2012

Proceeds

Available-for-sale: Equity securities・・・・・￥

Realized Gains￥

1

Realized Loss

March 31, 2013

Proceeds

Available-for-sale: Equity securities・・・・・$

Realized Gains

497$

Realized Loss

396

(4) There was no impairment loss on available-for-sale equity securities for the year ended March 31, 2013,and ¥0 million of impairment loss for the year ended March 31, 2012.

4.INVENTORIESInventories at March 31, 2013 and 2012, consisted of thefollowing:
Finished products ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・
Work in process ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・
Raw materials and supplies ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・
Total

・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・

Thousands of
U.S. Dollars

Millions of Yen

2012

2013
￥

1,077
1,142
1,808
￥ 4,028

￥

2013

898
856
1,861

$ 11,463
12,14919,241￥ 3,615$ 42,854

Service cost ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・
Interest cost ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・
Expected return on plan assets・・・・・・・・・・・・・・・・・・・・・
Recognized actuarial loss ・・・・・・・・・・・・・・・・・・・・・・・・・・・
Net periodic retirement benefit costs ・・・・・・・
Premium payments to defined
contribution pension plan ・・・・・・・・・・・・・・・・・・・・・￥

Total ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・

￥

40
6
(4)
14
57

￥

46
104

￥

2013
39
6
(4)
12
53

$

434
69
(48)
156
610

46

497

99

$ 1,108

Assumptions used for the years ended March 31, 2013 and 2012 are set forth as follows:
Discount rate ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・
Expected rate of return on plan assets ・・・・・・・・・・・・・・・・・・・
Allocation method of the retirement benefits
expected to be paid at the retirement date ・・・・・・・・
Recognition period of actuarial gain or loss ・・・・・・・・・・・・・・

2013

2012

1.3%
1.0%

1.3%
1.0%

Straight-line method basedon years of service
10 - 16 years

Straight-line method basedon years of service
10 - 16 years

6.EQUITY

5.RETIREMENT AND PENSION PLANS
The Company has severance payment plans for employees.
Under most circumstances, employees terminating their employment are entitled to retirement benefits determined based on therate of pay at the time of termination, years of service and certain other factors. Such retirement benefits are made in the form of
a lump-sum severance payment or annuity payments from a trustee. Employees are entitled to larger payments if the termination
is involuntary, by retirement at the mandatory retirement age, by death, or by voluntary retirement at certain specific ages prior tothe mandatory retirement age.
The Company has a funded defined benefit pension plan and a funded defined contribution pension plan for employees which
cover approximately 50% each of their benefits. Certain subsidiaries have a defined benefit pension plan or a defined contribution
pension plan. The Company recorded a liability for retirement benefit to directors the amount of ¥66 million ($ 710 thousand) and¥66 million as of March 31, 2013 and 2012, respectively.
The asset for employees' retirement benefits at March 31, 2013
and 2012, consisted of the following:Thousands of
U.S. Dollars

Millions of Yen

2013

2012

2013

Projected benefit obligation ・・・・・・・・・・・・・・・・・・・・・・・・・
Fair value of plan assets ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・
Unrecognized actuarial loss ・・・・・・・・・・・・・・・・・・・・・・・・

￥

547
(557)
(28)

￥ 511
(459)
(106)

$ 5,820(5,929)(304)

Net asset ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・

￥

(38)

￥

(54)

$

(413)

Prepaid pension cost ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・
Liability for employee's retirement benefits・・・・・・

￥
￥

53
(14)

￥
￥

65
(10)

$
$

565
(152)

The above liability for employee's retirement benefits is included in long-term liabilities - other.
The components of net periodic retirement benefit costs for the years ended March 31, 2013 and 2012, are as follows:

21

2012

2013

0

Thousands of U.S. Dollars

Thousands of
U.S. Dollars

Millions of Yen

Japanese companies are subject to the Companies Act ofJapan (the "Companies Act"). The significant provisions in
the Companies Act that affect financial and accounting
matters are summarized below:(a) Dividends
Under the Companies Act, companies can pay dividends at
any time during the fiscal year in addition to the year-end
dividend upon resolution at the shareholders meeting. For
companies that meet certain criteria such as (1) having theBoard of Directors, (2) having independent auditors, (3)having the Board of Corporate Auditors and (4) the term ofservice of the directors is prescribed as one year rather
than two years of normal term by its articles ofincorporation, the Board of Directors may declare dividends(except for dividends in kind) at any time during the fiscal
year if the company has prescribed so in its articles ofincorporation. The Company meets all the above criteria.
The Companies Act permits companies to distributedividends-in-kind (noncash assets) to shareholders subject
to a certain limitation and additional requirements.
Semiannual interim dividends may also be paid once a year
upon resolution by the Board of Directors if the articles ofincorporation of the company so stipulate. The Companies
Act provides certain limitations on the amounts available fordividends or the purchase of treasury stock. The limitation
is defined as the amount available for distribution to theshareholders, but the amount of net assets after dividends
must be maintained at no less than ¥3 million.

(b) Increases / decreases and transfer of common stock,reserve and surplus
The Companies Act requires that an amount equal to 10%
of dividends must be appropriated as a legal reserve (acomponent of retained earnings) or as additional paid-in
capital (a component of capital surplus) depending on theequity account charged upon the payment of such
dividends until the aggregate amount of legal reserve andadditional paid-in capital equals 25% of the common stock.
Under the Companies Act, the total amount of additional
paid-in capital and legal reserve may be reversed without
limitation. The Companies Act also provides that common
stock, legal reserve, additional paid-in capital, other capitalsurplus and retained earnings can be transferred among theaccounts under certain conditions upon resolution of theshareholders.
(c) Treasury stock and treasury stock acquisition rights
The Companies Act also provides for companies topurchase treasury stock and dispose of such treasury stockby resolution of the Board of Directors. The amount oftreasury stock purchased cannot exceed the amountavailable for distribution to the shareholders which isdetermined by specific formula. Under the Companies Act,
stock acquisition rights are presented as a separate
component of equity. The Companies Act also provides
that companies can purchase both treasury stockacquisition rights and treasury stock. Such treasury stockacquisition rights are presented as a separate componentof equity or deducted directly from stock acquisition rights.

22

7.INCOME TAXES

8.RESEARCH AND DEVELOPMENT COSTS

The Company is subject to Japanese national and local income taxes which, in the aggregate, resulted in a normal effective
statutory tax rate of approximately 38.1% and 40.6% for the years ended March 31, 2013 and 2012, respectively.
The tax effects of significant temporary differences and tax loss carry forwards, which resulted in deferred tax assets and liabilities
at March 31, 2013 and 2012, are as follows:
Thousands ofMillions of Yen
U.S. Dollars

2012

2013

175
37
64
23
23
38
23
68
15
81
(44)
￥ 506

$ 2,262
446
586
199
252
317
282
778

￥

$

2013
Deferred tax assets:
Inventories ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・
Building depreciation ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・
Software ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・
Enterprise tax payable ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・
Retirement benefits to directors ・・・・・・・・・・・・・・・・・・・・・・・・・
Warranty reserve ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・
Advances received ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・
Accrued bonuses ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・
Foreign exchange losses ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・
Other ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・
Less valuation allowance ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・
Total ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・
Deferred tax liabilities:
Undistributed earnings of foreign subsidiaries ・・・・・・・・・・
Prepaid pension cost ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・
Unrealized gain on available-for-sale securities・・・・・・・・・
Other ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・
Total ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・
Net deferred tax assets ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・

￥

￥

212
41
55
18
23
29
26
73

￥

72
(26)
527

￥

84
18
29
32
￥ 165
￥ 361

60
23
22
21
127
378

￥
￥

Deferred tax assets (liabilities) are included in the consolidated balance sheets as follows:

Current assets - Deferred tax assets・・・・・・・・・・・・・・・・・・・
Investments and other assets - Deferred tax assets ・・・・
Current liabilities - Other current liabilities ・・・・・・・・・・・
Long-term liabilities - Deferred tax liabilities ・・・・・・・・・
Net deferred tax assets ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・

￥

￥

392
6
(4)
(32)
361

898
200
312
349
$ 1,761$ 3,849
Thousands of
U.S. Dollars

Millions of Yen

2013

771
(283)
$ 5,611

2012
￥

365
16
(3)

￥

378

2013
$ 4,178
65
(46)
(347)
$ 3,849

Research and development costs charged to income were ¥ 591 million ($ 6,292 thousand) and ¥565 million for the years ended
March 31, 2013 and 2012, respectively.

9.LEASESThe Group leases certain computer equipment and other assets. Total rental expenses, including lease payments under financeleases for the years ended March 31, 2013 and 2012, were ¥ 146 million ($1,558 thousand) and ¥139 million, respectively.

10.FINANCIAL INSTRUMENTS AND RELATED DISCLOSURES(1) Group policy for Financial Instruments
The Group does not use financial instruments for speculative purposes based on its capital financing plan. Cash surpluses, if any,
are invested in low-risk financial assets, including short-term time deposits and certificates of deposit. Funds on hand are used tofund its ongoing operations. Derivatives are not used for speculative purposes, but to manage exposure to financial risks.
(2) Nature and Extent of Risks Arising from Financial Instruments
Receivables, such as trade notes and trade accounts, are exposed to customer credit risk. Receivables in foreign currencies
are exposed to the market risk of fluctuation in foreign currency exchange rates. Investment securities are exposed to the riskof market price fluctuations. Payment terms of payables, such as trade notes and trade accounts, are primarily less than fourmonths.
(3) Risk Management for Financial Instruments
Credit risk management
Credit risk is the risk of economic loss arising from counterparty's failure to repay or service debt according to the contractual
terms. The Group manages its credit risk from receivables on the basis of internal guidelines, which include monitoring of
payment term and balances of major customers by each business administration department to identify the default risk ofcustomers at an early stage. Investment securities are managed by monitoring market values and financial position of issuers
on a regular basis.

A reconciliation between the normal effective statutory tax rate and the actual effective tax rate reflected in the accompanying
consolidated statements of income for the years ended March 31, 2013 and 2012, is as follows:

Normal effective statutory tax rate ・・・・・・・・・・・・・・・・・・・・・・・・・・
Expenses not deductible for income tax purposes ・・・・・・・・・
Net change in valuation allowance ・・・・・・・・・・・・・・・・・・・・・・・・・
Changes in the effective statutory tax rate ・・・・・・・・・・・・・・・・・
Difference in income tax rates applicable to incomein certain foreign countries ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・
Undistributed earnings of foreign subsidiaries ・・・・・・・・・・・・・・
Tax credit for research and development expenses ・・・・・・・
Other - net ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・
Actual effective tax rate ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・

23

2013

2012

38.1 %
1.6(0.6)

40.6 %
2.0
1.9
1.1

(3.9)
1.6
(2.7)
(0.8)
33.3 %

(2.4)
0.3
(5.4)
0.2
38.3 %

24

(4) Fair Value of Financial Instruments(5) Maturity Analysis for Financial Assets with Contractual Maturities
Millions of Yen

March 31, 2013
Cash and cash equivalents ・・・・・・・・・
Short-term investments ・・・・・・・・・・・・・
Receivables ・・・・・・・・・・・・・・・・・・・・・・・・・
Investment securities ・・・・・・・・・・・・・・・

Thousands of U.S. Dollars

Carrying
AmountFair Value

Unrealized
Gain/Loss

Carrying
Amount

￥

￥

7,564
81
4,601
246

￥

$

7,564
81
4,601
246

80,476861
48,955
2,620

Fair Value

Unrealized
Gain / Loss

80,476861
48,9552,620$$ 132,914$

28,285
2,988$

31,273$$

Due in 1 Yearor Less
March 31, 2013
Cash and cash equivalents ・・・・・・・・・
Short-term investments ・・・・・・・・・・・・・
Receivables ・・・・・・・・・・・・・・・・・・・・・・・・・

Total

Total ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・￥ 12,493￥ 12,493￥$ 132,914

Payables ・・・・・・・・・・・・・・・・・・・・・・・・・・・・
Income taxes payable ・・・・・・・・・・・・・・

￥

2,658
280

￥

2,658
280

￥

$

Total ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・

￥

2,939

￥

2,939

￥

$

28,285
2,988$

31,273$

Millions of Yen

Carrying
AmountMarch 31, 2012
Cash and cash equivalents ・・・・・・・・・
Short-term investments ・・・・・・・・・・・・・
Receivables ・・・・・・・・・・・・・・・・・・・・・・・・・
Investment securities ・・・・・・・・・・・・・・・

Millions of Yen

￥

8,013
33
4,670
241

Fair Value￥

Unrealized
Gain/Loss

8,013
33
4,670
241

￥

・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・￥

Due after 1 Yearthrough 5 Years

Due after 5 Years
through 10 Years

Due after
10 Years

7,564
81
4,601

￥

￥

￥

￥ 12,247￥￥￥

Millions of Yen

Due in 1 Yearor Less
March 31, 2012
Cash and cash equivalents ・・・・・・・・・
Short-term investments ・・・・・・・・・・・・・
Receivables ・・・・・・・・・・・・・・・・・・・・・・・・・

Total

・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・￥

Due after 1 Yearthrough 5 Years

Due after 5 Years
through 10 Years

Due after
10 Years

8,013
33
4,670

￥

￥

￥

￥ 12,717￥￥￥

Thousands of U.S. Dollars

Due in 1 Yearor Less

Total ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・￥ 12,959￥ 12,959￥

Payables ・・・・・・・・・・・・・・・・・・・・・・・・・・・・
Income taxes payable ・・・・・・・・・・・・・・

￥

2,783
300

￥

2,783
300

￥

Total ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・

￥

3,083

￥

3,083

￥

March 31, 2013
Cash and cash equivalents ・・・・・・・・・
Short-term investments ・・・・・・・・・・・・・
Receivables ・・・・・・・・・・・・・・・・・・・・・・・・・

Total

・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・

Due after 1 Yearthrough 5 Years

Due after 5 Years
through 10 Years

Due after
10 Years$ 80,476
861
48,955$$$$ 130,294$$$

Cash and Cash Equivalents, Short-Term Investments, Receivables and Payables, and Income Taxes Payable
The carrying values of cash and cash equivalents, short-term investments, receivables and payables, and income taxes
payable approximate fair value because of their short maturities.

Investment Securities
The fair values of investment securities are measured at the quoted market price of the stock exchange for the equity
instruments. The information of the fair value for the investment securities by classification is included in Note 3.

25

26

11. COMPREHENSIVE INCOME

14.SEGMENT INFORMATIONThe components of other comprehensive income for the years ended March 31, 2013 and 2012, were as follows:
Millions of Yen
Unrealized gain (loss) on available-for-sale securities:
Gains arising during the year ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・
Reclassification adjustments to profit or loss ・・・・・・・・・・・・・・・・・・
Amount before income tax effect ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・
Income tax effect ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・
Total ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・
Foreign currency translation adjustments:
Adjustments arising during the year ・・・・・・・・・・・・・・・・・・・・・・・・・・・・
Reclassification adjustments to profit or loss ・・・・・・・・・・・・・・・・・・
Amount before income tax effect ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・
Total ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・
Total other comprehensive income ・・・・・・・・・・・・・・・・・・・・・・・

2013￥

Thousands of U.S. Dollars
2012

2013

49
(34)
15
(4)
￥ 10

￥

(9)
(0)
(9)
6
(3)

$

$

531
(369)
162
(48)
113

￥ 275

$

2,930

275
￥ 275

￥ (74)(6)(81)
￥ (81)

$

2,930
2,930

￥ 286

￥ (85)

$

3,043

￥

Under ASBJ Statement No. 17, "Accounting Standard for Segment Information Disclosures" and ASBJ Guidance No. 20,"Guidance on Accounting Standard for Segment Information Disclosures", an entity is required to report financial and descriptive
information about its reportable segments. Reportable segments are operating segments or aggregations of operating segmentsthat meet specified criteria. Operating segments are components of an entity about which separate financial information isavailable and such information is evaluated regularly by the chief operating decision maker in deciding how to allocate resources
and in assessing performance. Generally, segment information is required to be reported on the same basis as is used internallyfor evaluating operating segment performance and deciding how to allocate resources to operating segments.
1.

Description of reportable segments
Segments used for financial reporting are the Company's constituent units for which separate financial information isavailable and for which the Board of Directors performs periodic studies for the purposes of determining the allocation of
resources and evaluating performance.
The Company carries out the department, production, sales and after-sales maintenance of take-out robots forinjection-molded products and peripheral equipment, including labor-saving systems. In the domestic markets, these
operations are handled by the Company; overseas markets - Asia (South Korea, Taiwan, China, Indonesia, Malaysia,
Thailand and India), Europe (UK) and U.S.A. - are serviced by local subsidiaries, including Yushin America Inc. (US), Yushin
Korea Co., Ltd. (South Korea) and Yushin Automation Limited (Europe). The local subsidiaries are independently managed
units, with separately drafted strategies and activities.

12. NET INCOME PER SHARE

Accordingly, the Company's operations, based on its production, sales, and after-sales maintenance setups, aregeographically grouped into four reportable segments: Japan, Asia, Europe and U.S.A.

Details of the basic net income per share (EPS) for the years ended March 31, 2013 and 2012, were as follows:Year Ended March 31, 2013:
Basic EPS
Net income available to commonshareholders・・・・・・・・・・・・・・・・・・・・・・・・・・
Year Ended March 31, 2012:
Basic EPS
Net income available to commonshareholders・・・・・・・・・・・・・・・・・・・・・・・・・・

Millions of Yen

Thousands ofSharesNet Income

WeightedAverage Shares

U.S.
Dollars

Yen
EPS

Methods of measurement for the amounts of sales, profit (loss), assets and other items for each reportable segment
The accounting procedure for the business segment reported is as described in Note 2, "Summary of significant
accounting policies".
Segment profit by business segment reported is calculated based on operating income.
Intersegment sales and transfers are based on realized market price basis.

￥ 1,114

17,489￥ 63.74$ 0.68

3.

Information about sales, profit (loss), assets and other items is as follows.

Millions of Yen￥

778

17,4902013￥ 44.50

Reportable Segment

Diluted net income per share is not disclosed because there are no outstanding potentially dilutive securities.

13. SUBSEQUENT EVENTSAppropriation of Retained Earnings
The following appropriation of retained earnings at March 31, 2013, was approved at the Company's Board of Directors' meeting held on May 9, 2013:

Year-end cash dividends, ¥ 20 ($ 0.2 ) per share ・・・・・・・・・・・・・・・・・・・・・・・・・

27

2.

Millions of Yen

Thousands of
U.S. Dollars￥ 349$ 3,721

Sales:
Sales to external customers ・・・・・・・・・・
Intersegment sales or transfers ・・・・・・
Total ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・
Segment profit ・・・・・・・・・・・・・・・・・・・・・・・・・・・・
Segment assets ・・・・・・・・・・・・・・・・・・・・・・・・・・・
Other:
Depreciation ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・
Increase in property, plant andequipment and intangible assets ・・・

Japan

Asia

Europe￥ 8,733 ￥ 3,223 ￥
3,660
236
12,393
3,460
927
285
14,745
2,420

U.S.A.

Total

Reconciliations Consolidated￥14,721568 ￥ 2,195 ￥14,721 ￥(3,913)3,913
12
4(3,913) 14,721
18,635
580
2,199
(19)
1,518
1,498
55
249
4,887
18,857
23,744
380
1,310

132

12

5

19

170

170

1,177

22

7

17

1,225

1,225

28

Millions of Yen

4. Information about products and services

2012

Millions of Yen

Reportable Segment
Sales:
Sales to external customers ・・・・・・・・・・
Intersegment sales or transfers ・・・・・・
Total ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・
Segment profit ・・・・・・・・・・・・・・・・・・・・・・・・・・・・
Segment assets ・・・・・・・・・・・・・・・・・・・・・・・・・・・
Other:
Depreciation ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・
Increase in property, plant andequipment and intangible assets ・・・

Japan

Asia

Europe￥ 9,705 ￥ 2,505 ￥
3,399
208
13,104
2,713
954
153
13,495
2,246
134
1,877

U.S.A.

￥14,240229 ￥ 1,800 ￥14,240 ￥(3,633)3,633
10
14(3,633) 14,240
17,873
240
1,815
(27)
1,300
1,272
13
178
5,282
17,35822,641
316
1,299
4

8

18

4

117

Total

Reconciliations Consolidated

10

166

2013
Take-Out Robots Custom-Ordered
Equipments

Parts and
Maintenance
Service

Total￥ 10,141￥ 2,436￥ 14,721

Sales to external customers ・・・・・・・・・・・・￥ 2,144

Millions of Yen

2012

166

2,009

Take-Out Robots Custom-Ordered
Equipments

2,009￥ 9,048

Sales to external customers ・・・・・・・・・・・・

Parts and
Maintenance
ServiceTotal￥ 2,105￥ 14,240￥ 3,085

Thousands of U.S. Dollars

2013

Thousands of U.S. Dollars

2013

Take-Out Robots Custom-Ordered
Equipments

Reportable Segment
Sales:
Sales to external customers ・・・・・・・・・・
Intersegment sales or transfers ・・・・・・
Total ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・
Segment profit ・・・・・・・・・・・・・・・・・・・・・・・・・・・・
Segment assets ・・・・・・・・・・・・・・・・・・・・・・・・・・・
Other:
Depreciation ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・
Increase in property, plant andequipment and intangible assets ・・・

Japan

Asia

Europe$ 92,912 $ 34,297 $
2,515
38,93636,813
131,849
3,036
9,868
25,749156,868

U.S.A.

Total

Reconciliations Consolidated$ 156,613
6,051 $ 23,351 $ 156,613 $
41,632 (41,632)
128
51
6,180
23,403 198,246 (41,632) 156,613(206)
15,943
16,150592
2,651
51,991
252,600
4,045
13,945 200,609

Sales to external customers ・・・・・・・・・・・・$ 107,886$

22,808

Parts and
Maintenance
Service$

Total

25,918$ 156,613

Other

Total

5. Information about geographical areas(1) Sales
Millions of Yen

1,412
12,524

128
237

61
83

208
188

1,811
13,034

1,811
13,034Note 1: Reconciliations for the year ended March 31, 2013, are as follows:(1) The ¥(19) million ($(206) thousand) reconciliation to segment loss includes eliminations for intersegment transactions of ¥37 million($394 thousand) and inventory reconciliation of ¥(56) million ($(600) thousand).
(2) The ¥4,887 million ($51,991 thousand) reconciliation to segment assets includes eliminations for intersegment transactions of ¥(2,161) million($(22,991) thousand) and operating funds of surplus assets by the Company (cash and deposits, securities) of ¥7,048 million ($74,982 thousand).
Note 2: Segment profit is reconciled to be consistent with operating income shown in the consolidated statements of income.

2013
Japan

China
TaiwanOther Asia

￥ 5,088￥ 2,392￥ 4,019

Europe￥824

North America￥ 2,215￥181￥ 14,721

Millions of Yen

2012
Japan

China
TaiwanOther Asia

￥ 5,203￥ 2,332￥ 3,337

Europe￥801

North America￥ 2,387

Other
￥

177

Total
￥ 14,240

Thousands of U.S. Dollars

2013
Japan

China
TaiwanOther Asia

$ 54,128$ 25,451$ 42,758

Europe$8,769

North America$ 23,569

Other
$

1,935

Total
$ 156,613

Note: Sales are classified in countries or regions based on location of customers.
(2) Property, plant and equipment
Information is omitted because property, plant and equipment in Japan accounted for more than 90% of property, plant andequipment on the consolidated balance sheet.
6. Information about major customers
Information is omitted because there were no customers that accounted for 10% or more of total net sales recorded underconsolidated statements of operations and comprehensive income included in net sales to outside customers.
29

30

Independent Auditors' ReportCompany Profile(As of March 31, 2013)

Company Name : Yushin Precision Equipment Co., Ltd.
Establishment: October 1973

Capital: 1,985 million yen

Head Office: 11-260 Kogahonmachi, Fushimi-ku, Kyoto, Japan 612-8492,
Phone : (81)75-933-9555 Fax : (81)75-934-4033

Number of Employees : 588 (Including consolidated subsidiaries), 366 (Yushin Precision Equipment Co., Ltd.)
Number of Shareholders : 4,782
Listed Stock Exchange : First Section, Tokyo
Securities Identification Code : 6482

Major Shareholders

Number of Shares held
(thousand)

Percentage ofShares held (%)

Yushin Industry Co., Ltd. ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・

4,376

25.0

Mayumi Kotani ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・

2,217

12.7

The Nomura Trust and Banking Co., Ltd. (Trust Account 3071019) ・・・・・・・・・・・・・・・・・・・・・・・

774

4.4

The Master Trust Bank of Japan, Ltd. (Retail Trust Account 620021158) ・・・・・・・・・・・・・・・・

774

4.4

The Kyoto Chuo Shinkin Bank, Ltd. ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・

544

3.1

RBC IST LONDON - CLIENTS ACCOUNT ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・

529

3.0

Japan Trustee Service Bank, Ltd. (Trust Accounts) ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・

508

2.9

The Bank of Tokyo-Mitsubishi UFJ, Ltd. ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・

424

2.4

The Bank of Kyoto, Ltd. ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・

352

2.0

BNP Paribas Sec Services Luxembourg, Jasdec, Aberdeen Global Client Assets ・・・・・

345

2.0

(As of March 31, 2013)

Distribution of ownership among shareholders
Treasury stock:
1.8%
Foreign corporations and others:
19.2%
Other corporations:25.9%

Financial institutions: 1.1%
Individuals:
24.2%

Total
17,819,033
shares

Total
4,782
persons

Financial institutions:
28.9%

31

Others:2.8%

Individuals:
96.1%

32