2008

ANNUAL REPORTFiscal year ended March 31, 2008

Profile
On the basis of “Creativity” and “Research and Development,” JEOL positively
Company
Philosophy

challenges the world’s highest technology, thus forever contributing to theprogress in both Science and Human Society through its products.

Corporate History
Japan Electron Optics Laboratory Co., Ltd. established

Product Development History

1949
1956

JEM-1 Electron microscope completed
JEM-5G Electron microscope first exported to the CEA Saclay Atomic Energy ResearchInstitute, France; JNM-1, Japan’s first nuclear magnetic resonance system, completed

Company name changed to JEOL Ltd.
JEOL listed on the Second Section of the Tokyo Stock Exchange

1961
1962

JXA-3 X-ray microanalyzer completed

1963

JMS-01 Double-focusing mass spectrometer completed; JLC-01 general-purpose

JEOLCO (USA) INC. established as the first overseas subsidiary
Automatic recording fluid chromatograph completed
JEOL listed on the First Section of the Tokyo Stock Exchange

1966

JSM-1 Scanning electron microscope completed; JEM-1000 1000kV ultrahigh voltage
electron microscope completed

1967
1968
1972
1974

JEBX-2A Electron beam exposure instrument completed
JLC-5AH, world’s first fully automated amino acid analyzer, completed
JCA-1KM “Clinalyzer” automated biochemical analyzer completed
JAMP-3 Auger micro probe, JIR-03F fourier transform infrared spectrometer, andJESCA-2 Photoelectron spectrometer diffraction system completed“Tokyo Meeting,” first overseas marketing meeting held

“JEOL 21” corporate management vision for the 21st century announced“BS EN ISO9001” obtained
Launch the JEOL Group web site (http://www.jeol.co.jp)“JEOL SPIRIT-1” management vision announced on JEOL’s 50th anniversary“Bright Plan 1000” medium-term management plan for the JEOL group, announced
New JEOL TECHNICS LTD. building completed

1976
1982
1983
1989
1990
1991
1993
1995
1996
1998
1999
2000
2001

JEPAS-1000 Electron beam measuring instrument completed
JIBL-100 Convergent ion beam equipment completed
JSTM-4000XV Ultrahigh vacuum scanning tunnel microscope completed
JWS-7500 Wafer process inspection system completed
JEIP-900F High-density reactive ion plating system completed
High-speed next-generation automated biochemical analyzer ‘‘Bio Majesty’’ completed
JBX-9000MV Electron beam lithography system completed
JSM-6700F Field emission scanning electron microscope completed
JSM-6500F Field emission scanning electron microscope completed
JMS-T100LC (AccuTOF) Time-of-flight mass spectrometer and the JNM-ECA series of
Nuclear magnetic resonance spectrometers completed
JEM-9310FIB Focused ion beam system for specimen preparation completed

YAMAGATA CREATIVE CO., LTD. (YMCC) established, and the New Datum Hall completed2002

JSM-6460 and 6360 series of Scanning electron microscopes completed
JPS-9200 Photoelectron spectrometer completed

BEIJING CREATIVE TECHNOLOGY CO. LTD. established

JBX-3030 series of Electron beam lithography system completed

Obtained ISO14001 certification for environmental management system
JEOL Group’s Environmental Statement announced

2003

Medium-term management plan for the JEOL Group: Focus Plan 2006 announced

2004

JEM2100F Field-emission transmission electron microscope completed
JMS-800D Mass spectrometer dedicated to dioxin analysis completed

Agreed to set up an industry-academia collaboration office with the University of TokyoJMS-T100GC Gas-chromatography time-of-flight mass spectrometer completed
JCM-5100 Carry scope (portable scanning electron microscope) completed

YMCC Tendo Factory completed

2005

JCA-BM8060 Clinical biochemistry analyzer completed
Ion source for mass spectrometers, DART completed

New YMCC Tendo Factory building completed

2006

Semiconductor failure analysis system “Beam Tracer” completedClinical chemical analyzer, JCA-BM6050 completed
BS-60050EBS, Evaporation source for backscattered electron completed

JEOL Group new medium-term Management plan, “ACTION 60” announced2007

JSM-7001F Thermal field emission scanning electron microscope completed

2008

JIB-4600F Multibeam milling/imaging system completed

New clean room in Building 3 completed
New building of JEOL FINETECH CO., LTD. completed
New plant of Beijing Creative Technolog Co., Ltd. completed
The third phase of construction work to enlarge YMCC completed

JSM-7600F Thermal field emission scanning electron microscope completedContents

1 Profile
2 Financial Highlights
3 To Our Shareholders
5 Medium-Term Management Plan
6 TOPICS
7 Research & Development
8 Environmental Activities
9 The JEOL Group Network
10 Board of Directors, Corporate
Auditors and Corporate Officers

1

JEOL ANNUAL REPORT 2008

11 Five-year Summary
12 Financial Analysis
17 Consolidated Balance Sheets
19 Consolidated Statements of Income
20 Consolidated Statements of Changes in Equity
21 Consolidated Statements of Cash Flows
22 Notes to Consolidated Financial Statements
31 Independent Auditors’ Report
32 Corporate Outline

Disclaimer Regarding Forward-Looking Statements
The information contained in this annual report is given for the sole
purpose of providing information regarding the business performanceof JEOL Ltd. during the fiscal year ended March 31, 2008, and is notintended to solicit investment in any securities issued by the Company.
Any statements with respect to JEOL’s current plans, strategies andforecasts are forward-looking statements based upon information
available as of March 31, 2008, and involve known and unknown risks
and uncertainties.
Actual events and results may differ materially from those anticipatedin these statements.

Financial Highlights

Serving Advanced Technology

JEOL Ltd. and consolidated subsidiaries, for the years ended March 31, 2008 and 2007

Thousands of
U.S. dollars*Millions of yen

2008

2007

2008

¥ 93,889¥ 101,776$ 937,011

Operating income

2,154

5,313

21,500

Income before income taxes and minority interests

1,648

4,790

16,445

113

2,816

1,123

Net income

1.42

35.50

0.01

Total equity

377.78409.19

3.77

Total assets

106,322

111,195

1,061,095

Total equity

29,69632,684296,361

For the year:
Net sales

Net income
Per share data (in yen and U.S. dollars):

At year-end:

Note: The U.S. dollar amounts have been translated from yen, for convenience only, at the rate of ¥100.2 to U.S.$1 (the approximate exchange
rate on March 31, 2008).

Net sales

Operating income

Net income

Total equity

Millions of yen

Millions of yen

Millions of yen

Millions of yen

120,000

6,000

100,000

5,000

35,0005,000
30,0004,000
25,00080,0004,000

60,000

3,000

3,000

20,00015,0002,000
2,000

40,00010,000
1,000

1,000

20,000

0

5,000

0

04 05 06 07 08

0

0

04 05 06 07 08

04 05 06 07 08

04 05 06 07 08

JEOL ANNUAL REPORT 2008

2

To Our Shareholders

Transmission electron microscopes satisfied the demand from a variety of
sectors, including the research and development of cutting-edge fields, thedevelopment of materials, the basic research of medical and biological fields, aswell as quality control. Regarding Analytical Instruments, the JEOL Group madeevery effort to maintain the market share of both Nuclear magnetic resonancespectrometers and Mass spectrometers, and successfully secured sharescomparable to those in the previous year. As for X-ray fluorescence
spectrometers, demand in environment-related markets was weak and sales fell.
In Industrial Equipment, Scanning electron microscopes met broad-ranging
demand not only in research and development in the latest nanotechnology
fields but also for material verification, evaluation, fault analysis, and quality
control, resulting in increased sales of both Field emission scanning electron
microscopes and General purpose/analytical scanning electron microscopes.
Regarding electron beam lithography systems, efforts were made to securesales, but the market was weak and sales greatly decreased. For medical-related
equipment, demand was strong in Japan for mainly large and medium sized
equipment, but sales decreased overseas. Regarding optical thin films andcoating products, Electron beam evaporation source and power supplies as well
as High-power electron beam source and power supplies met market needs andsales increased.

Q Please tell us about the medium-term management plan
“ACTION 60”.

Gon-emonKurihara

Yoshiyasu
HaradaPresident andRepresentative Director

Chairman and
Representative Director

Q What is your assessment of the Company’s performancefor the fiscal year ended March 31, 2008?

In this consolidated fiscal year, the economy in Japan progressed steadily,assisted by strong corporate profits, although uncertainties included rapid
fluctuations in exchange rates, steep rises in crude oil prices, and drops inprivate consumption.
Regarding the world economy, the US economy slowed due to the subprime
housing loan problem, whereas the Asian and European economies continued
to expand.
In the scientific instrument and industrial equipment markets, in which the
JEOL Group operates, capital investment as well as R&D investment was activein the electric machinery, chemical machinery, and general industrial machinerycompanies, but capital investment in semiconductors was weak.
The JEOL Group therefore focused on technology, production, andsales/service strategies as basic principles of its medium-term management plan
“ACTION 60” (FY 2007 to FY 2009), thereby raising the value of the company andstrengthening the management structure, while working to win orders and sales.
As a result, the JEOL Group posted consolidated net sales of ¥93,889 million(down 7.7% year-on-year), operating income of ¥2,154 million (down 59.5%
year-on-year), ordinary profit of ¥1,952 million (down 62.3% year-on-year), andnet income of ¥113 million (down 96.0% year-on-year).
The JEOL Group is comprised of the Scientific Instrument Segment and theIndustrial Equipment Segment. In the Scientific Instrument Segment,

3

JEOL ANNUAL REPORT 2008

Under its guidelines “JEOL SPIRIT-1”, the JEOL Group has formulated the
medium-term management plan “ACTION 60” (fiscal 2007 - 2009), following“Bright Plan 1000” (fiscal 2001 - 2003) and “Focus Plan 2006” (fiscal 2004 2006).
“ACTION 60” aims to enhance a restructuring strategy, the core of “Focus
Plan 2006”, and to achieve the targets of consolidated net sales of ¥120.0
billion, operating income of ¥7.5 billion and ordinary profit of ¥7.5 billion forfiscal 2009, which marks the 60th anniversary of JEOL.
Under the new plan, we will, as a basic policy, implement the strategy for afurther growth and strive to improve corporate value, while focusing ontechnology, production, and sales/service strategies. We will also strengthen our
Medium-term management plan

ACT ION 60(from April 1, 2007 to March 31, 2010)

To form a stable earnings structure with ordinary profit margin of 5% or above

F o cu s P l a n 2 0 0 6 (from April 1, 2004 to March 31, 2007)
Achieving net sales of ¥100 billion in size and ordinary profit margin of 5%

B r i g h t P l a n 1 0 0 0 (from April 1, 2001 to March 31, 2004)
Improving the corporate structure towards becoming a 21st century value-creating company,
expanding the operations and enhancing profitability

JEOL Group's Management Vision

JEOL SPIRIT-1(from October 1999)

50th anniversary of foundation— Twin Core / S-Core & I-CoreJEOL (established in 1949)

manufacturer of scientific instruments

ACTION 60
60
Network
Only One
Innovation
Teamwork
Customer Focus
Activity

With the words “ACTION 60”,
the JEOL Group not only expresses
its strong intention to “act” butalso puts various resolutions andfeelings as shown right into these words.

A
C
T

Activity; we act energetically

I
O
N
60

Innovation; we will change our business with new ideas

Customer Focus; we value customers
Teamwork; we will work together as a Group to address various issues under theconcerted efforts of the JEOL Group
Only One; we will provide products and solutions that no other companies can provide
Network; we will utilize our global network
60th Anniversary; thanks to your continued support, we mark the 60th anniversary of our foundation

management structure and establish a corporate structure that can earn profits
in any business environment.
Among the important strategies of the new plan, we will work on (1)enhancement of research and development capability, (2) reinforcement of thesemiconductor business by integrating the Scanning electron microscope(SEM) technology, (3) rationalization of manufacturing processes, and (4)strengthening of sales/service systems for small, mass-market products. We
will develop these strategies, focusing our efforts and resources on the four
fields, where markets are expected to grow, including nanotechnology, life
science, environment and information/communications. Furthermore, through
ACTION (acting), we aim to achieve our targets to meet the expectations of ourshareholders and other stakeholders.
In order to securely achieve the business goals of the medium-term
management Plan “ACTION 60”, the JEOL Group will carry out its technical,
production, and sales/service strategies as prioritized measures, thereby driving
forward development, business management and innovation.
• In the case of technical development, steps will be taken to supply precision
products and introduce strategic commodities into markets.
• Development personnel will be strengthened, and budget will be secured for
R&D of existing products as well as for developing new products that will
underpin the future growth of the JEOL Group.
• In April 2007, the Metrology Inspection Division was established for
expanding the I-Core (industrial equipment market), centering on thesemiconductor market, thereby strengthening the Scanning electron
microscope business.
• Regarding production, efforts will be made to reduce overall costs and stock,such as by shortening work periods. Moreover, production will be transferred
to YMCC, which is our wholly owned subsidiary, to accelerate cost reductions.
(The third phase of construction on the Tendo Plant was completed in March
2008.)• To reduce costs, a new plant for processing machined parts and producing
equipment for the Chinese market was built in the Beijing Economy andTechnology Development Region, with construction completed in November
2007.
• To raise production capacity for equipment such as Electron beam lithographysystems and Electron microscopes for semiconductors, a clean room was built
at the Akishima Head Office Plant (completed in September 2007).
• In terms of sales/service, sales and profits for small-size mass-market items
and for I-Core business items will be increased and new business models willbe created as the solution business.
• To boost sales in Asian markets, particularly in China, the Asia Division wasestablished in April 2007.
• Regarding medical equipment, we formed acapital tie-up with A&T Corporation to exploit
the business advantages of both companies
and to mutually complement each other for the
future growth of both companies.

Q What are your views on return of profits to shareholders,
dividends and financial policies?

For the fiscal year under review, in consideration of the performance andfinancial situation, the dividend will be reduced to ¥2.5 per share from theplanned ¥5 per share. The annual dividend for this fiscal year will therefore be¥7.5 per share.
We will maintain stable dividends from a long-term perspective, whileachieving the goals of the medium-term management plan “ACTION 60” andproviding shareholders with reasonable returns on their investments.

Q Please tell us about your new director arrangement.
A resolution on the new director arrangement was passed at the Board of
Directors’ meeting held after the 61st Ordinary Shareholders Meeting. We intend
to strengthen management more directly linked to market needs, thereby
meeting the expectations of all stakeholders including our shareholders.
Aiming to expand our business and make the earning stable in the future, wewill endeavor to further increase our corporate value. Please continue to place
your hopes in the JEOL Group. We will strive to meet your expectations.
July 1, 2008

Yoshiyasu Harada
Chairman and
Representative Director

Gon-emon Kurihara
President andRepresentative Director

JEOL ANNUAL REPORT 20084

Medium-Term Management Plan

Image of JEOL business environment

Basic Policy

Under “ACTION 60”, we will implement the strategy for further
growth and strive to improve our corporate value, while focusing
on technology, production, and sales/service strategies.
We will also strengthen management structure and establish a
corporate structure that can make stable earnings in any
business environment.
In fiscal 2009, which marks the 60th anniversary of JEOL, we
aim to achieve the targets of consolidated net sales of ¥120.0
billion and ordinary profit of ¥7.5 billion.

Electronics &electronic parts

Materials

Nanotechnology

Nanotechnology/
Information/
Semiconductors
materials
communications

Four priority fields of the basic plan for
scientific technologies

Business Targets

Consolidated net sales:¥120.0¥7.5

Environment

Life science

Medical treatment
andnew drug development

billionConsolidated ordinary profit:

1

EnergyJEOL’s position and fields

billionfor Technology Strategy

Environment

3

Enhancement of research and development capability

Biotechnology

for Sales / Service Strategy

Strengthening of sales/service systems for small,
mass-market products

1. To invest predominantly in growth fields
2. To maintain and improve core technologies
3. To strengthen technologies for improvement of usability,
enhancement of analysis performance, nano processing andhigh-speed data analysis

1. Response to expanding environment-related businesses
2. Response to expanding markets for small electron microscopes
and pre-processing equipment
3. Response to untapped overseas markets

Primary development themes
1. Transmission electron microscope applied equipment>>> Targeting the semiconductor market
2. Ion beam applied equipment>>> Targeting the SEM market
3. Pre-processing equipment for analyzers>>> Aiming to improve performance of pre-processing functions
4. Scanning electron microscope applied equipment>>> Targeting the biotechnology-related markets
5. Medical-related equipment>>> Targeting the inspection equipment market

Enhancement of the semiconductor business by
integrating SEM technology
1. To establish the Metrology Inspection Division
2. To concentrate the Group’s management resources (personnel,
manufacturing and money)
3. To pursue market-in with target of the semiconductor market

2

for Production Strategy

Rationalization of manufacturing processes
1. Improvement of the production efficiency of the Akishima Head
Office Plant in Tokyo
2. Enlargement of the functions at the Tendo Plant in Yamagata
Prefecture (YMCC)
3. Increase of production work at the Beijing Plant in China (BJCC)

5JEOL ANNUAL REPORT 2008

4

for Enhancement of Existing Businesses

Medical/biotechnology-related businesses
1. Further improvement of quality and cost cutting
2. Enhancement of consumables, reagents and service related
businesses
3. Strengthening cooperation and alliancesThin films, coating products, and semiconductorsrelated businesses
1. Expanding product lineups to increase market shares
2. Further improving the product quality and cost cutting

Environment-related businesses
1. Accommodation of EU and China directives on RoHS restrictions
2. Enhancement of domestic and international sales/services
networks
3. Further improvement of product quality and cost cutting

Scientific instrument-related businesses
1. Improving profitability by offering total solutions
2. Strengthening product development capability by utilizing eachof the Group company

TO P I C S

TOPICS

Rationalization of Manufacturing Processes

Positioning of all plants: Clarification of roles

Akishima Head Office Plant
in Tokyo

Beijing Plant in China (BJCC)
Increased production involving processingof machine parts. >>> Cost improvement
Production of equipment for the Chinese
marketProduction of high-end equipment
Development, pilot production, specialorder engineering work, and productionof new products(Products are manufactured at facilities having
production engineering functions so that engineeringand production are integrated.)(The new clean room was completed in September
2007.)(Construction work was completed in November 2007.)

JEM-2100F

Expansion of the Tendo Plant in Yamagata
Prefecture (YMCC)
Main plant for general-purpose devices and equipment
Group of products whose sales advantage is competitive
prices(Construction work was completed in March 2008.)

Business tie-up with A&T Corporation
As one of the world’s leading scientific instrument manufacturers, the JEOL Groupleverages its technical capabilities to produce equipment encompassing scientificinstruments for R&D, semiconductor-related equipment, medical equipment, andindustrial equipment. On the other hand, A&T Corporation is one of the few
comprehensive technology manufacturers in the world whose business ranges fromthe development of the whole spectrum of clinical inspection room products to the
manufacture, sales and customer support of these products.
The purpose of this business alliance is to exploit the business advantages ofeach company in medical field and to mutually complement each other for the future
growth of both companies.
The JEOL group will demonstrate to the utmost the synergy effects obtained bythis tie-up, thereby striving to further improve market competitiveness and maximize
the corporate value.

JCA-BM9130

Comprehensive cooperation agreement with the Faculty of Science of Yamagata University
The JEOL Group and the Faculty of Science of Yamagata University, which is a
National University Corporation, signed a comprehensive cooperation agreement oncollaboration for mutual growth.
The purpose is to mutually exchange the research results and modern educational
skills accumulated over the years by the Faculty of Science of Yamagata University,with the advanced technical capabilities centering on electron microscopes of the
JEOL Group. This will help advance education, science, and technology; stimulate
local communities, and provide international contributions.
Under the current Comprehensive cooperation agreement, both the company andthe university will create opportunities for interchanges to achieve mutual growth.

JEOL ANNUAL REPORT 20086

Research & Development
The JEOL Group, which sells cutting-edge equipment such as electron microscopes all over the world, continuously
introduces new products to increase product competitiveness.
In the fiscal year under review, the Group’s R&D costs totaled ¥6,486 million, of which the Scientific Instruments
Segment accounted for ¥2,809 million and the Industrial Equipment Segment accounted for ¥3,677 million.
The following are the results of major R&D activities in the fiscal year under review.

April 2007:

JNM-ECS400 FT-NMR equipment released.
World-class sensitivity by fully-automatic, high-sensitivity, auto-tune probes
The JNM-ECS-series FT-NMR equipment offers the world’s leading sensitivity thanks to advanced softwareand automation technologies and the use of high-sensitivity auto-tune probes that automate all daily measurement operations.
Furthermore, the downsized equipment requires only half the installation area. Spectrometers, which operate separately from the hostcomputer, can be remotely controlled through networks.
April 2007:

JSX-3100R , for screening RoHS controlled substances without using liquid nitrogen released.
JSX-3100R

energy dispersion type fluorescent X-ray analyzer with high-sensitivity performance

The JSX-3100R is an energy dispersion type fluorescent X-ray analyzer that does not use liquid nitrogen and is equipped within-house developed Si (Li) detectors. This world-class equipment for screening RoHS controlled substances went on sale in April.
December 2007:

JIB-4500 Multibeam milling/imaging system released.
Reliable, proven multibeam SEMs for ubiquitous needs
The JIB-4500 multibeam milling/imaging system meets the demand for high-precision analysis and assaying involved indeveloping modern materials and improving process technologies that support advanced industrial society. Data can beobtained easily and efficiently, regardless of the specimens.
February 2008:

Electron beam source for manufacturing solar battery silicon material released.
JEBG-3000UB, which has the highest power output among equivalent Japanese products delivered to
manufacturers in Japan.
The JEBG-3000UB, which is a high-power electron beam source, has the highest power output among equivalent devices
manufactured in Japan for solar battery silicon material, and has started to be sold to manufacturers in Japan.
Such beam source used to be sold in this business for vapor deposition on high-density magnetic recording tapes andwrapping films with oxide barriers. Now, the stability and controllability of electron beams in continuous operation are highly
valued.
Since the solar battery market is presumed to greatly expand to help address environmental issues, the JEBG-3000UB is
expected to contribute significantly to volume production of polycrystal silicon material.
May 2008:

JIB-4600F Multibeam milling/imaging system released.
There is increasing demand for high-resolution observation and high-precision cross-sectional analysis and assaying, as
well as for easy acquisition of highly reproducible data. The newly released JIB-4600F meets such needs.
May 2008:

JSM-7600F, the latest Thermal electron field emission type scanning electron microscope released.
There is increasing demand for high-resolution scanning electron microscopes as material development and processing
technologies continue to be downsized. The new JSM-7600F features the latest user interface functions to reduce theneed for expertise.

About Advanced Capacitor Technologies
Advanced Capacitor Technologies, Inc. is distributing samples of its high-capacity capacitors,“Premlis®” to enable many customers in various fields to evaluate its performance. Diverse applications
being studied include nighttime illumination systems where power-saving long-life LEDs are combinedwith solar photovoltaic power generation panel cells, as well as various display equipment.
These capacitors will continue to be developed to expand the business.

7

JEOL ANNUAL REPORT 2008

Environmental Activities
ISO policy of
the JEOLGroup

The JEOL Group engages in business activities with an awareness of its responsibility as a “global corporate
citizen” for harmonious coexistence with customers, local residents, shareholders and governmental agencies
to ultimately develop a suitable recycling-based society in the future.
Based on this corporate philosophy, the JEOL Group intends to conduct business activities that contribute toa better global environment by providing products such as environmental measurement and analyzing
equipment and related services.

Promotion of Environmental Conservation Activities
The IMS Management Committee plays a central role in carrying out the management system, which combines ISO 9001 and ISO
14001. The Group set up the WEEE / RoHS Committee in order to meet the requirements of European Union directives on Waste
Electrical and Electronic Equipment (WEEE) and Restrictions on Hazardous Substances (RoHS) contained in electrical and electronicequipment.
Recycling and recovery of gases discharged to the atmosphere during the manufacture and repair of our products have been carriedout since fiscal 2005. From April 2008, this practice is being reinforced to recover all these SF6 gases in principle.

Development of super-reductive water “RUMIC®”
In 1995, the JEOL Group totally eliminated the use of chlorine-based organic solvents (chlorofluorocarbon ethane),
which had been frequently used as an industrial cleaning agent.
Our environmental efforts include starting to use an alternative to chlorofluorocarbon, and we have also developed
an industrial cleaning agent, “RUMIC®”, as a substitute for chlorofluorocarbon which is environment-friendly andsafe for humans.
(The photograph shows a freesample for household use.)

Expansion of “Don’t-Throw-Away” Campaign (Campaign for cleaning up commuting routes)
Since 1994, the JEOL Group has been conducting a campaign that we clean up commuting routes from the Company to nearby stations,as well as around the Company on a regular basis, are cleaned periodically.

Participation in Network of Enterprises that Consider the Environment in Akishima City
To exchange environmental information with local companies, we actively participate in the “Network of Enterprises that Consider theEnvironment in Akishima City”, which was set up in April 2005 and which involves Akishima City and enterprises in this city.

Environmentrelated
website

URL http://www.jeol.co.jp/envi/index.htm
In order to present our approach toward environmental issues and to provide
various environment-related information, the JEOL Group offers useful, detailed
contents through its environment-related website.

CSR
Science Class Support and Science CampAs part of the project to commemorate the 60th anniversary of the founding of ourcompany, we supported science classes in six elementary schools in Hachioji City,
Tokyo, starting in December 2007.
In this project, we sent instructors into the schools with portable scanning electron
microscopes so that students could actually observe substances such as plant pollen.
We hope that more students will become interested in science.
Since March 2004, we have also been holding “Science Camp” activities sponsored by the Japan Science and Technology
Agency, which is an independent administrative corporation. In this Camp, we use our state-of-the-art devices to give practicaltraining on the subject of “Observing the Nanometer World by Electrons”.

Kazato Research Foundation
The Kazato Research Foundation was established in 1969 in commemoration of the 20th anniversary of the founding of ourcompany, through a donation from Mr. Kenji Kazato, the founder, for promoting research and development of electron
microscopes and other related devices in the fields of medical science, biology, material study, nanotechnologies, etc. This
Association bestows awards to encourage research.
JEOL ANNUAL REPORT 2008

8

The JEOL Group Network

Worldwide Network
With overseas branch offices based in more than 30 countries all over the world including America, Europe, Oceania, andAsia, we have established local sales systems and the best possible service systems. In particular, JEOL USA, INC. has
set up many offices since its inception in Boston in 1962, and has now become well established as a local company inwide area throughout North and South America. Also in Europe, JEOL has established service support systems using local
companies, with a large number of units of JEOL products delivered to date, since its first overseas delivery to France (in1956). Local offices in Europe were established earlier, starting with one in France (1964) followed by Britain, theNetherlands, Sweden, Italy, and Germany.
We develop our marketing by providing detailed responses to customers’ needs through our Asia Division.

Domestic

Corporate nameProduction

Sales

Development& Design

Service

Purchase

Training& Others

JEOL TECHNICS LTD.
JEOL DATUM LTD.
JEOL FINETECH CO., LTD.
JEOL SYSTEM TECHNOLOGY CO., LTD.
JEOL ENGINEERING CO., LTD.
JEOL ACTIVE CO., LTD.
JEOL TECHNOSERVICE CO., LTD.
YAMAGATA CREATIVE CO., LTD.
ADVANCED CAPACITOR TECHNOLOGIES, INC.
Notes: All Companies in the above table are consolidated subsidiaries.
JAPAN LASER CORPORATION has become exempt from the accounting for consolidation due to the sales of shares.
The consolidated subsidiaries merged SATSUKI INDUSTRIES CO., LTD. and TACHIBANA ELECTRONICS CO., LTD. and themerged company name is JEOL FINETECH CO., LTD.

Overseas

Corporate nameLocationFoundation

CapitalEquity ratio

JEOL USA, INC.

USA

1962

US$ 15,060 thousand

100%

JEOL (EUROPE) SAS

France1964

EUR 720 thousand

100%

JEOL (U.K.) LTD.

U.K.

1968

Stg. £ 400 thousand

100%

JEOL (EUROPE) B.V.

the Netherlands

1973

EUR 1,472 thousand

100%

JEOL (SKANDINAVISKA) A.B.

Sweden1973

S.Kr 3,160 thousand

100%

JEOL (GERMANY) GmbHGermany

1997

EUR 511 thousand

100%

Italy

1984

EUR 300 thousand

JEOL (ITALIA) S.p.A.
JEOL ASIA PTE. LTD.

Singapore

1995

S.$ 350 thousand

JEOL TAIWAN SEMICONDUCTORS LTD.

Taiwan1999

NT$ 7,000 thousand

JEOL (AUSTRALASIA) PTY.LTD.

Australia

1968

A.$ 500 thousand

JEOL DE MEXICO S.A. DE C.V.

Mexico1991

MXP 650 thousand

JEOL CANADA, INC.

Canada1993

C.$ 100 thousand

JEOL (MALAYSIA) SDN BHD

Malaysia

1995

RM 300 thousand

Beijing Creative Technology Co., Ltd.

China

2002

Yuan 4,800 thousand

JEOL Shanghai Semiconductors

China

2006

US$ 200 thousand

JEOL DATUM Shanghai Co., Ltd.

China

2007

US$ 200 thousand

JEOL KOREA LTD.

Korea

1994

Won 600,000 thousand

Notes: No mark: Consolidated subsidiaries.
Unconsolidated subsidiaries to which the equity method is applied.
Associated companies to which the equity method is applied.

9

JEOL ANNUAL REPORT 2008

100%
(JEOL DATUM 40%)60%
(JEOL DATUM 40%)60%
(JEOL ASIA 100%)—(JEOL USA 100%)—(JEOL USA 100%)—(JEOL ASIA 100%)—93.9%(JEOL TAIWAN SEMICONDUCTORS LTD. 100%)—(JEOL DATUM 100%)—(JEOL DATUM 12%)28%

Board of Directors, Corporate Auditors and Corporate Officers(As of June 27, 2008)

Chairman and
Representative Director

President andRepresentative Director

Gon-emon Kurihara

Yoshiyasu Harada

Executive Vice President
and Representative
Directors

Director and Chief
Executive Officer

Azuma Ohtsuka

Director and Executive
Officers

Director and Advisor

Masaki Saito

Masayuki Tajimi

Terukazu Eto

Corporate
Auditors

Standing
Corporate Auditors

Reisuke Izumiyama

Executive Officers

Masashi Iwatsuki

Hideaki Hirano

Norimasa Ishida

Mitsuo Kaneko

Corporate Officers

Hidetake Horikiri

Yoshiaki Ueda

Hirofumi Kusano

Koichi Fukuyama

Mikio Naruse

Keiji Ota

Wataru Wakamiya

Kazufumi Adachi

Tetsu Hinomoto

Yoshihiro Sawada

Shin-ichi Watanabe

Kunio Kamide

Tsutomu Morita

Youichi Shibuki

Toshihito Suzuki

Yasutoshi Nakagawa(Note) Mr. Hidetake Horikiri and Mr. Yoshiaki Ueda are external corporate auditors of the Company.

JEOL ANNUAL REPORT 200810

Five-year Summary
JEOL Ltd. and consolidated subsidiaries, for the years ended March 31, 2008, 2007, 2006, 2005, and 2004.

For the year (Millions of yen):

2008

2007

2006

2005

2004

93,889101,776

93,291

85,91487,097

Scientific instrument

39,09064,36458,50260,08357,935

Industrial equipment

54,79937,412

34,78925,831

29,162

Selling, general and administrative expenses

29,37228,755

26,912

25,205

24,629Operating income

2,154

5,313

2,013

1,985

2,068

Ordinary profit

1,952

5,183

1,913

1,629

1,638

Net income

113

2,816

1,289

1,245

784

6,118

3,092

3,192

3,775

3,366

Scientific instrument

1,911

1,698

1,514

1,485

2,077

Industrial equipment

4,191

1,379

1,671

2,207

1,163

16

15

7

83

126

Depreciation expense

2,923

2,672

2,583

2,622

2,438

Research and development costs

6,486

5,984

5,223

4,436

4,031

Scientific instrument

2,809

3,830

3,641

3,416

2,845

Industrial equipment

3,677

2,154

1,582

1,020

1,186

Total assets

106,322

111,195

103,940

95,211

95,310Total equity

29,69632,68429,752

27,07724,803

Net income

1.42

35.50

16.25

16.24

10.92

Total equity

377.78409.19375.14341.39324.88

7.50

10.00

5.00

5.00

2.50

Return on equity <ROE>

0.4

9.1

4.5

4.8

3.5

Return on assets <ROA>

0.1

2.6

1.3

1.3

0.8

Net sales

Capital expenditures

Eliminations/Corporate

At year-end (Millions of yen):

Per share data (yen):

Cash dividends

Value indicators (%):

(Information by business segment)
The JEOL Group conducts business in the two segments of Scientific Instrument and Industrial Equipment. In the past, scanning electron
microscopes (SEMs) were classified in the Scientific Instrument Segment, but from this fiscal year are moved to the Industrial Equipment
Segment. This is because the markets for SEMs now focus mainly on industrial fields, including quality control and semiconductors.

11

JEOL ANNUAL REPORT 2008

Financial Analysis
Overview of the fiscal year ended March 2008

In this consolidated fiscal year, the economy in JapanThe JEOL Group therefore focused on technology,

progressed steadily, assisted by strong corporate profits,

production, and sales/service strategies as the basic

although uncertainties included rapid fluctuations inprinciple of its medium-term management plan “ACTION

exchange rates, steep rises in crude oil prices, and60” (FY2007 to FY2009), thereby raising the value of thedrops in private consumption.

Company and strengthening the management structure,

Regarding the world economy, the US economy

while working to win orders and sales.

slowed due to the subprime housing loan problem,

As a result, the Company posted consolidated net

whereas the Asian and European economies continued

sales of ¥93,889 million (down 7.7% from ¥101,776

to expand.

million in the previous year), operating income of ¥2,154

In the scientific instrument and industrial equipment

million (down 59.5% from ¥5,313 million in the previous

markets, in which the JEOL Group operates, capitalyear), ordinary profit of ¥1,952 million (down 62.3% frominvestment as well as R&D investment was active in the¥5,183 milion in the previous year), and net income ofelectric machinery, chemical machinery, and general¥113 million (down 96.0% from ¥2,816 million in theindustrial machinery companies, but capital investment inprevious year).

semiconductors was weak.

Sales by geographical segment/Overseas sales ratio
Japan

North America and Latin America

Overseas sales ratio

Other(Millions of yen)

120,000

(%)

40.5

42.4

44.6

47.5
40

38.4
13,481

100,000
9,885

9,528

13,398

10,87965,50780,00012,95060,00014,957

8,546

71,79530
20

15,176

12,186
73,11963,814

66,74610
040,00020,000
0
04

05

06

07

08

(Note) The primary countries and regions included in geographic classifications outside Japan are as follows:• North America and Latin America: U.S.A., Canada and Mexico• Other: Europe, Asia and Australia
JEOL ANNUAL REPORT 2008

12

Segment Information(Information by business segment)

Transmission electron microscopes, continued to be

The JEOL Group conducts business in the two segments

steady.

of Scientific Instrument and Industrial Equipment. In the

Regarding Analytical instruments, the Group madepast, Scanning electron microscopes (SEMs) wereevery effort to maintain the market share of Nuclear

classified in the Scientific Instrument Segment, but frommagnetic resonance spectrometers and Mass

this fiscal year are moved to the Industrial Equipment

spectrometers, and successfully secured shares

Segment. This is because the markets for SEMs now

comparable to those in the previous year. As for X-ray

focus mainly on industrial fields, including quality control

fluorescence spectrometers, demand in environment-

and semiconductors. Furthermore, “reinforcement of therelated markets was weak and sales fell.

semiconductor business by integrating Scanning

As a result, net sales amounted to ¥39,090 million

electron microscope (SEM) technology” is stated as one(down 7.9% from ¥42,439 million in the previous year, asof the priority strategies in the medium-term management

based on the changed business category).

plan “ACTION 60”, and the headquarters for inspection
and measurement apparatus have been established,

2. Industrial Equipment

thereby strengthening the market-oriented business.

Scanning electron microscopes widely met demand not
only in research and development in the state-of-the-art

1. Scientific Instrument

field of nanotechnology but also in matters such as

As for Transmission electron microscopes, we metmaterial verification, evaluation, fault analysis, and quality

demand in a broad range of fields, including cutting-control, resulting in increased sales of Field emissionedge areas and material development, basic research inscanning

medicine and biology, and quality control. Sales of

purpose/analytical scanning electron microscopes.

electron[Main Products]
Scientific Instrument<Electron Optics Instruments>
Transmission electron microscopes (TEM), Energy filter electron microscopes,
Electron probe microanalyzers, Auger microprobes, Analytical electron
microscopes, Peripheral equipment<Analytical Instruments>
NMR spectrometers, ESR spectrometers, Mass spectrometers, Time-of-flight mass
spectrometers, Gas chromatograph mass spectrometers, Liquid chromatographmass spectrometers, Energy-dispersive X-ray fluorescence spectrometers,
Handheld X-rays fluorescence spectrometer, Portable gas chromatographs, Gasmonitor analyzer

microscopes

andGeneral

Sales(Millions of yen)

50,00040,00042,43939,09030,00020,00010,000

0
07

13

JEOL ANNUAL REPORT 200808

In the case of Electron beam lithography systems,

decreased for Electron beam lithography systems. As

efforts were made to secure sales, but the market was

regards medical-related equipment, solid changes wereweak and sales greatly decreased.

shown in the case of automated analyzers. Furthermore,

Regarding medical equipment, demand was strong insales increased for Electron beam evaporation source

Japan for large and medium sized equipment, but sales

and power supplies as well as High-power electron

decreased overseas.

beam source and power supplies.

In the optical thin film and coating products, sales ofElectron beam evaporation source and power supplies

As a result, sales in Japan amounted to ¥66,746 million(down 8.7% year-on-year).

as well as High-power electron beam source and power
supplies met the market needs and sales increased.

2. North America and Latin America

As a result, net sales amounted to ¥54,799 million yen

Sales of electron microscopes rose strongly, but sales of(down 7.6% from ¥59,337 million in the previous year, asElectron beam lithography systems decreased, resulting

based on the changed business category).

in lower sales overall.
As a result, sales in those regions amounted to(Information by geographical area)¥12,186 million (down 19.7% year-on-year).

1. JapanAs for the Scientific Instrument business, sales of

3. Others

Transmission electron microscopes increased, while

In the Asian and European regions, sales increased

those of Analytical Instruments were comparable to themainly for electron microscopes. As a result, net sales

previous year.

amounted to ¥14,957 million (up 11.0% year-on-year).

As for the Industrial Equipment business, sales[Main Products]
Industrial Equipment<Metrology Inspection Equipment>
Scanning electron microscopes (SEM), Analytical scanning electron microscopes,
Scanning probe microscopes, Peripheral equipment, Multibeam System, Focusedion beam system, Wafer process monitors (review SEM), Mask observation scanningmicroscope, Semiconductor failure analysis systems<Semiconductor Equipment>
Electron beam lithography systems (a variable-shaped electron beam), Electron
beam lithography systems (a spot beam lithography system)<Industrial Equipment>
High-frequency generator for thermal plasma, Electron beam evaporation sourceand power supplies, High-power electron beam source, High density reactive ion
plating systems, Built-in plasma source/Plasma source control power supplies<Medical Equipment>
Automated biochemical analyzers, Laboratory information system, Amino acidanalyzers

Sales(Millions of yen)

60,00059,33754,79950,00040,00030,00020,00010,000
0
07

08

JEOL ANNUAL REPORT 200814

Operating Income and Net Income

were ¥106,322 million, down ¥4,873 million from theprevious year.

Cost of sales in the fiscal year under review fell to

In the assets section, inventories increased ¥1,185¥62,363 million, down 7.9% from the previous year, but

million, while cash and deposits decreased ¥6,198

sales decreased further, reducing gross profit on sales tomillion and trade notes and accounts receivable¥31,526 million, down 7.5%.

decreased ¥2,756 million, with the result that current

R&D costs amounted to ¥6,486 million (up 8.4% year-

assets amounted to ¥76,267 million, down ¥7,810 million.

on-year), accounting for 6.9% of net sales, reflecting

Net property, plant and equipment amounted to

JEOL’s policy for energetically making future investment.

¥15,739 million, up ¥2,809 million. As for investments andSelling, general and administrative expenses, excluding

other assets, investment securities amounted to ¥7,441

R&D costs increased modestly 0.5%, to ¥22,886 million

million, down ¥1,319 million.

attributable to the entire Group’s efforts to reduce cost.

In the liabilities section, total current liabilities

However, operating income was ¥2,154 million, down

amounted to ¥52,594 million, down ¥3,455 million, chiefly

59.5%, and operating income margin was 2.3%, downbecause trade notes and trade accounts came to

2.9 points.

¥19,381 million, down ¥2,290 million, and income taxes

Income before income taxes was ¥1,648 million, down

payable amounted to ¥750 million, down ¥1,412 million.

¥3,142, and net income was ¥113 million, down ¥2,703

On the other hand, long-term liabilities amounted tomillion. Net income per share stood at ¥1.42.

¥24,032 million, up ¥1,570 million, mainly because longterm bank loans came to ¥5,999 million, down ¥1,048

Financial Position

million, whereas bonds amounted to ¥4,510 million, up¥2,940 million. As a result, total liabilities stood at

Total assets at the end of the fiscal year under review

Operating income
Operating income to net sales(Millions of yen)

(%)

6,000

R&D costs
R&D costs to net sales(Millions of yen)

6

6,000

5

5,000

Net income per share

6,486
5,984

5,313

5,000

¥76,626 million, down ¥1,885 million.

(%)

12

5,223

10

4,436
4,000

5.2

2.3

3,000
2.4

2.3

2,013

15

3,000

2

2,000

06

JEOL ANNUAL REPORT 2008

50

40
35.50

8

6.9
5.2

5.6

5.9

30
6
4

20

2,154

0
05

3

4,031

4.6

1,000

04

4,000

2.2

2,000
2,068 1,985

4

(Yen)

07

08

1

1,000

0

0

16.24

16.25

05

06

10.92

04

05

06

07

08

2

10

0

0

1.42
04

07

08

In the equity section, total equity amounted to ¥29,696

Outlook for Current Fiscal Yearmillion, down ¥2,988 million, for the following main
reasons: retained earnings of shareholders’ equity

As for the future outlook, uncertainties remain over thedecreased; acquisition of treasury stock and unrealized

U.S. economic outlook as well as trends of crude oilgains on available for-sale-securities decreased in terms

prices, raw materials costs, exchange rates, and interestof valuation and translation adjustments. capital ratio

rates. Given this, we may not be optimistic to believe thatstood at 27.8%, and net assets per share were ¥377.78.

the present favorable situation will continue.
Under these circumstances, the JEOL Group will

Cash Flows

forcefully implement various measures in its mediumterm management plan “ACTION 60”, secure orders,Cash flows from operating activities decreased to ¥1,391

increase sales, and surely reduce costs. Through thesemillion, for the following main reasons: inventories

efforts, we aim to achieve the plan.

increased although receivables decreased; payables
decreased; and income taxes, etc. were paid.

For the fiscal year ending March 2009, we forecast net

Cash flows from investing activities decreased tosales and operating income at ¥100,000 million (up 6.5%

¥5,370 million, due primarily to payments made forfrom the current year), and at ¥3,500 million (up 62.5%)

purchasing tangible fixed assets.

each, and ordinary profit and net income at ¥3,200

Cash flows from financial activities increased to ¥1,455
million, due mainly to financing through the issuance of

million (up 64.0%), and at ¥1,500 million (up 1,233.1%)
each.

corporate bonds and payment of dividends.

Shareholders’ equity ratio
Return on equity

Capital expenditures
Depreciation expense(%)(Millions of yen)

35

6,000

30
25

28.4

28.6

29.2

27.8

6,118

5,000

26.0
4,000

20

3,775
3,366

3,192

3,000
15

2,438

2,923

2,583

2,672

05

06

07

2,000

10
5

3,092

2,622

9.1
3.5

4.8

1,000

4.5

0.4
0

0
04

05

06

07

08

04

08

JEOL ANNUAL REPORT 200816

Consolidated Balance Sheets
JEOL Ltd. and Consolidated Subsidiaries
March 31, 2008 and 2007

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

ASSETS

2008

2007

2008

CURRENT ASSETS:
Cash and cash equivalents$

91,457

9,164¥ 15,092

107

377

1,065

Trade notes

1,748

2,952

17,449Trade accounts

22,176

23,790221,321

Unconsolidated subsidiaries and associated companies

820

758

8,188

Other

482

568

4,806

Allowance for doubtful receivables

(154)

(149)

(1,542)Inventories (Note 4)

37,82836,643

377,522

Deferred tax assets (Note 9)

2,401

2,761

23,959Prepaid expenses and other current assets

1,695

1,285

16,91876,267

84,077761,143

Land

1,445

1,387

14,419Buildings and structures

18,98915,886

189,508

Machinery and equipment

3,732

3,579

37,245Tools, furniture and fixtures

15,962

14,003

159,302

775

1,114

7,737

40,90335,969408,211(25,164)(23,039)(251,135)

15,73912,930157,076

Investment securities (Notes 3 and 6)

7,441

8,760

74,259Investments in unconsolidated subsidiaries and associated companies

1,553

913

15,502

307

393

3,063

Deferred tax assets (Note 9)

2,393

1,795

23,880

Other assets

2,622

2,327

26,172

14,31614,188142,876¥ 106,322¥ 111,195$ 1,061,095

Time deposits¥

Receivables:

Total current assets

PROPERTY, PLANT AND EQUIPMENT (Note 6):

Construction in progress
Total
Accumulated depreciation
Net property, plant and equipment

INVESTMENTS AND OTHER ASSETS:

SoftwareTotal investments and other assets
TOTAL
See notes to consolidated financial statements.

17

JEOL ANNUAL REPORT 2008

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

LIABILITIES AND EQUITY

2008

2007

2008

¥ 15,800¥ 13,518

1,960

2,045

19,566

460

2,200

4,591

Trade notes

12,327

12,262

123,028

Trade accounts

6,888

9,255

68,745

166

154

1,653

CURRENT LIABILITIES:
Short-term bank loans (Note 6)
Current portion of long-term bank loans (Note 6)
Current portion of bonds (Note 6)$

157,684

Payables:Unconsolidated subsidiaries and associated companies
Other (Note 6)

1,549

1,691

15,458

Income taxes payable

750

2,162

7,480

Advances received

5,881

6,732

58,691

Accrued bonuses to employees

1,159

1,503

11,568Other current liabilities (Notes 6 and 9)

5,654

4,527

56,42552,59456,049524,889

Bonds (Note 6)

4,510

1,570

45,010Convertible bonds (Note 6)

6,000

6,000

59,880Long-term bank loans (Note 6)

5,999

7,047

59,871

Liability for employees’ retirement benefits (Note 7)

6,374

6,593

63,608

689

648

6,878

Total current liabilities
LONG-TERM LIABILITIES:

Retirement allowances for directors, executive officers and corporate auditors (Note 7)
Negative goodwill
Other long-term liabilities (Notes 6 and 9)
Total long-term liabilities

3
460

601

4,598

24,032

22,462

239,845

6,740

6,740

67,265

COMMITMENTS AND CONTINGENT LIABILITIES (Notes 12, 13 and 14)
EQUITY (Notes 8 and 16):
Common stock—authorized, 136,080,000 shares;
issued, 79,365,600 shares in 2008 and 2007
Capital surplus

6,346

6,346

63,338Retained earnings

15,895

16,786

158,633

Unrealized gain on available-for-sale securities

2,030

3,127

20,261

142

(1)

1,417

(1,043)(506)(10,410)

(528)

(41)

(5,277)29,58232,451

295,227

114

233

1,134

29,69632,684296,361¥ 106,322¥ 111,195$ 1,061,095

Deferred gain (loss) on derivatives under hedge accounting
Foreign currency translation adjustments
Treasury stock—at cost, 1,062,355 shares in 2008 and58,802 shares in 2007
Total
Minority interests
Total equityTOTAL

JEOL ANNUAL REPORT 200818

Consolidated Statements of Income
JEOL Ltd. and Consolidated Subsidiaries
Years Ended March 31, 2008 and 2007

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

NET SALES (Note 11)

2008

2007

2008

¥ 93,889¥ 101,776$ 937,011

62,36367,708622,385

31,526

34,068314,626

29,37228,755

293,126

2,154

5,313

21,500COST OF SALES (Note 11)
Gross profit
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES (Notes 10 and 11)
Operating income
OTHER INCOME (EXPENSES):Interest and dividend income

362

293

3,614

Revenue from acceptance of research and development services

498

536

4,969

Insurance claim receipt

44

15

440

Interest expense

(479)

(392)

(4,779)Foreign exchange loss—net

(244)

(215)

(2,431)

Charge for sales of trade receivables

(427)

(379)

(4,265)

Loss on disposals of inventories

(53)

(79)

(531)

Loss on sales and disposals of property, plant and equipment—net

(36)

(162)

(360)

Gain on sales of investment securities

34

337

Loss on sales of investments in associated company(101)(1,003)

Loss on write-down of investment securities

(39)

(152)

(390)

Equity in earnings of unconsolidated subsidiaries and associated companies

80

76

802

Settlement of patent(140)

Other—net
Other expenses—net
INCOME BEFORE INCOME TAXES AND MINORITY INTERESTS(1,397)

(5)

(64)

(61)

(506)

(523)

(5,055)

1,648

4,790

16,445

1,331

2,553

13,282

INCOME TAXES (Note 9):
Current
Deferred
Total income taxes

278

(529)

2,776

1,609

2,024

16,058

74

50

736

MINORITY INTERESTS IN NET LOSSNET INCOME

¥

113

¥

2,816

Yen

$

1,123

U.S. Dollars

2008

2007

2008

PER SHARE OF COMMON STOCK (Notes 2.p and 15):
Basic net income

1.42

¥

35.50

$

0.01

Diluted net income

1.28

31.83

0.01

Cash dividends applicable to the year

7.50

10.00

0.07

See notes to consolidated financial statements.

19¥

JEOL ANNUAL REPORT 2008

Consolidated Statements of Changes in Equity
Jeol Ltd. and Consolidated Subsidiaries
Years Ended March 31, 2008 and 2007

Thousands

Millions of Yen

Issued Numberof Shares ofCommon Common
Stock
Stock

BALANCE, APRIL 1, 2006

79,366¥ 6,740

CapitalSurplus

Unrealized
DeferredForeign
Gain onGain (Loss) on Currency
Retained Available-for- Derivatives under Translation Treasury
Earnings sale Securities Hedge Accounting Adjustments
Stock¥ 6,346 ¥ 14,330¥ 3,140

¥

(764)

Total

Minority
Interests¥ (40) ¥ 29,752

Reclassified balance as of March 31, 2006 (Note 2.i)

Total
Equity¥ 29,752¥ 282

Net income

282

2,816

2,816

2,816

For prior year end, ¥2.5 per share

(198)

(198)

(198)

For current year interim, ¥3.5 per share

(278)

(278)

(278)

Cash dividends paid:

Treatment of the foreign consolidated subsidiary’s
liability for employees’ retirement benefits

116

Purchase of treasury stock
Net change in the year
BALANCE, MARCH 31, 2007

79,366

6,740

6,346

Net income

16,786

(13)

¥ (1)

258

3,127

(1)

(506)

116

116

(1)

(1)

(1)

244

(49)

195

(41)

32,451

233

32,684

113

113

113

For prior year end, ¥6.5 per share

(515)

(515)

(515)

For current year interim, ¥5.0 per share

(397)

(397)

(397)

(92)

(92)

(92)

Cash dividends paid:

Treatment of the foreign consolidated subsidiary’s
liability for employees’ retirement benefits
Purchase of treasury stock(487)

Net change in the year
BALANCE, MARCH 31, 2008

(1,097)79,366¥ 6,740¥ 6,346 ¥ 15,895

143¥ 2,030

(487)

(537)

(1,491)¥ 142 ¥ (1,043)¥ (528) ¥ 29,582

(487)
(119)

(1,610)¥ 114 ¥ 29,696

Thousands of U.S. Dollars (Note 1)

CommonStock

BALANCE, MARCH 31, 2007

CapitalSurplus

Unrealized
DeferredForeign
Gain onGain (Loss) on Currency
Retained Available-for- Derivatives under Translation Treasury
Earnings sale Securities Hedge Accounting Adjustments
Stock

$

Minority
Interests

Total
Equity(9) $ (5,051) $ (416) $323,864$ 2,325 $326,189

1,123

1,123

1,123

For prior year end, $0.06 per share(5,145)(5,145)(5,145)For current year interim, $0.05 per share(3,957)(3,957)(3,957)

(915)

(915)

(915)

Net income$ 67,265 $ 63,338 $167,527 $ 31,210

Total

Cash dividends paid:

Treatment of the foreign consolidated subsidiary’s
liability for employees’ retirement benefits
Purchase of treasury stock
Net change in the year
BALANCE, MARCH 31, 2008

(4,861)(10,949)$ 67,265 $ 63,338 $158,633 $ 20,261(4,861)(4,861)(14,882)(1,191) (16,073)$ 1,417 $ (10,410) $(5,277) $295,227$ 1,134 $296,361

1,426(5,359)See notes to consolidated financial statements.

JEOL ANNUAL REPORT 200820

Consolidated Statements of Cash FlowsJEOL Ltd. and Consolidated Subsidiaries
Years Ended March 31, 2008 and 2007

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

OPERATING ACTIVITIES:
Income before income taxes and minority interests
Adjustments for:
Income taxes—paidDepreciation and amortization
Loss on sales and disposals of property, plant and equipment—net
Loss on write-down of investment securities
Equity in earnings of unconsolidated subsidiaries and associated companies
Changes in assets and liabilities, net of effects from consolidation ofpreviously unconsolidated subsidiaries and net of effects fromdeconsolidation of previously consolidated subsidiaries:
Decrease in trade notes and accounts receivable
Increase in inventories(Decrease) increase in trade notes and accounts payable
Decrease in trade notes and accounts payable related to sales oftrade accounts by consolidated subsidiaries (Note 5)
Decrease in advances received(Decrease) increase in provision for accrued bonuses to employees(Decrease) increase in liability for employees’ retirement benefits
Increase in retirement allowances for directors, executive
officers and corporate auditors
Other—net
Total adjustments
Net cash (used in) provided by operating activities
INVESTING ACTIVITIES:
Decrease (increase) in time deposits—net
Payment for purchases of investment securities
Proceeds from sales of investment securities
Proceeds from sales of property, plant and equipment
Payment for purchases of property, plant and equipment
Payment for purchases of intangible assets
Other—net
Net cash used in investing activities
FINANCING ACTIVITIES:
Increase in short-term bank loans—net
Proceeds from long-term bank loans
Repayments of long-term bank loans
Proceeds from bonds issuance
Payment for redemption of bonds
Payment for acquisition of treasury stock
Cash dividends paid
Payments for sale and installment buyback agreement
Other—net
Net cash provided by (used in) financing activities
FOREIGN CURRENCY TRANSLATION ADJUSTMENTS
ON CASH AND CASH EQUIVALENTS
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS
CASH AND CASH EQUIVALENTS OF NEWLY CONSOLIDATEDSUBSIDIARIES, BEGINNING OF YEAR
CASH AND CASH EQUIVALENTS OF DECONSOLIDATED SUBSIDIARIESCASH AND CASH EQUIVALENTS, BEGINNING OF YEAR
CASH AND CASH EQUIVALENTS, END OF YEARNONCASH INVESTING AND FINANCING ACTIVITIES:Assets increased by consolidation of previously unconsolidated subsidiary
See notes to consolidated financial statements.

21

JEOL ANNUAL REPORT 2008

2008

2007

2008

¥ 1,648¥ 4,790$ 16,445(2,749)
2,923
36
39
(80)

(882)
2,672
162
152
(76)

(27,437)
29,171
360
390
(802)

1,297
(2,816)(1,003)2,435(3,014)
1,734

12,947(28,104)(10,008)

(404)
(318)
(158)

(1,000)
(409)
188
82

(4,030)(3,176)(1,580)81
113(3,039)(1,391)

43
464
2,551
7,341

808
1,131
(30,330)(13,885)

263
(572)
52
12
(3,953)(351)(821)(5,370)(127)(1,265)2,629(5,707)521
116(39,455)(3,506)(8,188)(53,590)

2,467
1,126
(2,115)3,720(2,330)
(485)
(910)

46
2,450
(2,580)97810(2,285)(75)(659)(4,401)

24,618
11,241(21,111)
37,124(23,253)(4,841)(9,082)

(18)
1,455

(479)
(465)
(16)
(66)

(622)
(5,928)263
3,137(6,210)(59,160)

15,092¥ 9,164

120(142)
11,977¥ 15,092

150,617$ 91,457

¥

30

(171)
14,525

Notes to Consolidated Financial Statements
JEOL Ltd. and Consolidated Subsidiaries
Years Ended March 31, 2008 and 2007

1. BASIS OF PRESENTING CONSOLIDATEDFINANCIAL STATEMENTS
The accompanying consolidated financial statements havebeen prepared in accordance with the provisions set forth in
the Japanese Financial Instruments and Exchange Law and its
related accounting regulations, and in conformity withaccounting principles generally accepted in Japan (“Japanese
GAAP”), which are different in certain respects as toapplication and disclosure requirements of International
Financial Reporting Standards.
In preparing these consolidated financial statements, certain
reclassifications and rearrangements have been made to theconsolidated financial statements issued domestically in orderto present them in a form which is more familiar to readers
outside Japan. In addition, certain reclassifications have been
made in the 2007 financial statements to conform to theclassifications used in 2008.
The consolidated financial statements are stated in Japaneseyen, the currency of the country in which JEOL Ltd. (the“Company”) is incorporated and operates. The translations ofJapanese yen amounts into U.S. dollar amounts are included
solely for the convenience of readers outside Japan and havebeen made at the rate of ¥100.2 to $1, the approximate rate ofexchange at March 31, 2008. Such translations should not be
construed as representations that the Japanese yen amounts
could be converted into U.S. dollars at that or any other rate.
2. SUMMARY OF SIGNIFICANT ACCOUNTINGPOLICIES

a. Consolidation—The consolidated financial statements
include the accounts of the Company and its 18 (20 in2007) significant subsidiaries (together, the “Companies”).
Consolidation of the remaining subsidiaries would nothave a material effect on the accompanying consolidated
financial statements. Under the control or influence
concept, those companies in which the Company, directly
or indirectly, is able to exercise control over operations are
fully consolidated, and those companies over which theCompanies have the ability to exercise significant influence
are accounted for by the equity method.
JAPAN LASER CORPORATION has become exempt
from the accounting for consolidation due to the sales ofshares.
The consolidated subsidiaries merged SATSUKI
INDUSTRIES CO., LTD. and TACHIBANAELECTRONICS CO., LTD. and the merged company
name is JEOL FINETECH CO., LTD.
Investments in 7 (6 in 2007) unconsolidated subsidiaries
and 2 associated companies are accounted for by the equity
method.
Negative goodwill represents the excess of the fair value ofthe net assets of the acquired subsidiaries at the date ofacquisition under their cost. Negative goodwill is credited

to income using the straight-line method over 5 years, withthe exception of minor amounts which are credited toincome when incurred.
All significant intercompany balances and transactions havebeen eliminated in consolidation. All material unrealized
profit included in assets resulting from transactions within
the Companies is eliminated.

b. Cash Equivalents—Cash equivalents are short-term
investments that are readily convertible into cash and thatare exposed to insignificant risk of changes in value.
Cash equivalents include time deposits and certificate ofdeposits, all of which mature or become due within threemonths of the date of acquisition.

c. Inventories—Inventories are stated at mainly cost
substantially determined by the moving-average cost
method and last purchased price method.
Inventories of consolidated foreign subsidiaries are stated at
the lower of cost or market, mainly determined by the
specific identification method.

d. Investment Securities—All securities are classified asavailable-for-sale securities and are reported at fair value,with unrealized gain and losses, net of applicable taxes,
reported in a separate component of equity. The cost of
securities sold is determined based on the moving-averagemethod.
Non-marketable available-for-sale securities are stated atcost determined by the moving-average method. For otherthan temporary declines in fair value, investment securities
are reduced to net realizable value by a charge to income.

e. Property, Plant and Equipment—Property, plant andequipment are stated at cost. Depreciation of property,
plant and equipment of the Company and its consolidated
domestic subsidiaries is computed by the declining-balancemethod over the estimated useful lives of the assets, while
the straight-line method is principally applied to theproperty, plant and equipment of consolidated foreignsubsidiaries. The range of useful lives is from 7 to 65 years
for buildings and structures and from 2 to 15 years fortools, furniture and fixtures.
Property, plant and equipment (except buildings) acquired
on and after April 1, 2007 are depreciated by the decliningbalance method in accordance with the revised corporate
tax law, which is effective April 1, 2007.
The effect of this treatment was to decrease income before
income taxes and minority interests for the year ended
March 31, 2008 by ¥142 million ($1,419 thousand).
Property, plant and equipment (except buildings) had been
depreciated up to 95% of acquisition cost with 5% ofresidual value carried until previous fiscal years. However,such 5% portion of property, plant and equipment issystematically amortized over 5 years starting in thefollowing year in which the carrying value of property,
plant and equipment (except buildings) reaches 5% of the

JEOL ANNUAL REPORT 200822

acquisition cost in accordance with the revised corporate
tax law, which is effective for fiscal years beginning on andafter April 1, 2007.
The effect of this treatment was to decrease income before
income taxes and minority interests for the year ended
March 31, 2008 by ¥86 million ($865 thousand).

f. Long-lived Assets—The Companies review their longlived 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 bywhich 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 dispositionof the asset or the net selling price at disposition.

g. Software—Development costs related to software for saleare deferred and amortized in proportion to the actual sales
volume of software sold during the current year to theestimated total sales volume. Software development costs
for internal use are deferred at cost less accumulated
amortization, which is calculated by the straight-line
method over the estimated useful lives (5 years).

h. Retirement and Pension Plans—Employees of theCompany and certain consolidated subsidiaries who retire
at or after the age of 60 are entitled to approximately 50%of their benefits in the form of an annuity. The funds forthe annuity payments are entrusted to an outside trustee.

equity. Under this accounting standard, certain items whichwere previously presented as liabilities or assets, as the casemay be, are now presented as components of equity. Suchitems include stock acquisition rights, minority interests, andany deferred gain or loss on derivatives accounted for underhedge accounting. This standard was effective for fiscal years
ending on or after May 1, 2006. The balances of such items
as of March 31, 2006 were reclassified as separate
components of equity as of April 1, 2006 in the consolidated
statement of changes in equity.

j. Research and Development Costs—Research anddevelopment costs are charged to income as incurred.

k. Leases—All leases, except for finance leases that deem totransfer ownership of the leased property to the lessee, areaccounted for as operating leases. Under Japanese
accounting standards for leases, finance leases that deem totransfer ownership of the leased property to the lessee are to
be capitalized, while other finance leases are permitted tobe accounted for as operating lease transactions if certain“as if capitalized” information is disclosed in the notes tothe lessee’s financial statements.

l. Income Taxes—The provision for income taxes iscomputed based on the pretax income included in the
consolidated statements 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 andthe tax bases of assets and liabilities. Deferred taxes aremeasured by applying currently enacted tax laws to thetemporary differences.

m. Foreign Currency Transactions—All short-term andEffective April 1, 2000, the Company and consolidated
domestic subsidiaries adopted a new accounting standard
for employees’ retirement benefits and accounted for theliability for retirement benefits based on the projected
benefit obligations and plan assets at the balance sheet date.
For the transitional obligation of ¥6,981 million in April
2000, the Company contributed certain available-for-salesecurities with a fair value of ¥3,601 million to theemployees’ retirement benefits trust for the Company’s
non-contributory pension plans, and recognized a non-cash
gain of ¥3,201 million. The securities held in this trust are
qualified as plan assets. The remaining transitional
obligation of ¥3,380 million ($33,733 thousand) is being
amortized over 15 years.
Retirement allowances for directors, executive officers andcorporate auditors of the Company and its domestic
consolidated subsidiaries are recorded to state the liability
at the amount that would be required if all directors,
executive officers and corporate auditors retired at thebalance sheet date.

i. Presentation of Equity—On December 9, 2005, the
Accounting Standards Board of Japan (the “ASBJ”)
published a new accounting standard for presentation of

23

JEOL ANNUAL REPORT 2008

long-term monetary receivables and payables denominatedin foreign currencies are translated into Japanese yen at theexchange rates at the balance sheet date. The foreignexchange gains and losses from translation are recognizedin the consolidated statements of income to the extent thatthey are not hedged by forward exchange contracts.

n. Foreign Currency Financial Statements—The
balance sheet accounts of the consolidated foreignsubsidiaries are translated into Japanese yen at the current
exchange rate as of the balance sheet date except for equity,which is translated at the historical rate.
Differences arising from such translation are shown as“Foreign currency translation adjustments” in a separate
component of equity.
Revenue and expense accounts of consolidated foreignsubsidiaries are translated into yen at the average exchange rate.

o. Derivatives and Hedging Activities—The
Companies use derivative financial instruments to manage
their exposures to fluctuations in foreign exchange andinterest rates. Foreign exchange forward contracts,
currency swaps and interest rate swaps are utilized by theCompanies to reduce foreign currency exchange andinterest rate risks. The Companies do not enter into
derivatives for trading or speculative purposes.
Gains or losses on derivatives used for hedging purposes, if
qualified for hedge accounting because of a highcorrelation and effectiveness between the hedging
instruments and the hedged items, are deferred until
maturity of the hedged transactions.
Forward contracts and currency swaps applied to forecasted(or committed) transactions are also measured at their fairvalue, but the unrealized gains/losses are deferred until theunderlying transactions are completed.
Interest rate swaps which qualify for hedge accounting andmeet specific matching criteria are not remeasured atmarket value, but the differential paid or received under
the swap agreements are recognized and included ininterest expense.

p. 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 reflects the potential dilutionthat could occur if securities were converted into common
stock. Diluted net income per share of common stock
assumes full conversion of the outstanding convertible
bonds at the beginning of the year with an applicableadjustment for related interest expense, net of tax.
Cash dividends per share presented in the accompanying
consolidated statements of income are dividends applicableto the respective years including dividends to be paid after
the end of the year.

q. New Accounting Pronouncements
Measurement of Inventories—Under Japanese GAAP,
inventories are currently measured either by the cost
method, or at the lower of cost or market. On July 5, 2006,
the ASBJ issued ASBJ Statement No. 9, “AccountingStandard for Measurement of Inventories,” which is effective
for fiscal years beginning on or after April 1, 2008 with early
adoption permitted. This standard requires that inventories
held for sale in the ordinary course of business be measured
at the lower of cost or net selling value, which is defined as
the selling price less additional estimated manufacturingcosts and estimated direct selling expenses. The replacement
cost may be used in place of the net selling value, if
appropriate. The standard also requires that inventories held
for trading purposes be measured at the market price.
Lease Accounting—On March 30, 2007, the ASBJ issued
ASBJ Statement No. 13, “Accounting Standard for Lease
Transactions,” which revised the existing accounting standard
for lease transactions issued on June 17, 1993. The revised
accounting standard for lease transactions is effective for fiscal
years beginning on or after April 1, 2008 with early adoption
permitted for fiscal years beginning on or after April 1, 2007.

deem to transfer ownership of the leased property to thelessee are to be capitalized, however, other finance leases are
permitted to be accounted for as operating leasetransactions if certain “as if capitalized” information isdisclosed in the note to the lessee’s financial statements.
The revised accounting standard requires that all financelease transactions shall be capitalized recognizing leaseassets and lease obligations in the balance sheet.
Unification of Accounting Policies Applied to Foreign
Subsidiaries for the Consolidated Financial Statements—
Under Japanese GAAP, a company currently can use thefinancial statements of its foreign subsidiaries which havebeen prepared in accordance with generally accepted
accounting principles in their respective jurisdictions for its
consolidation process unless they are clearly unreasonable.
On May 17, 2006, 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.”
The new standard prescribes: (1) the accounting policies
and procedures applied to a parent company and its
subsidiaries for similar transactions and events under similar
circumstances should in principle be unified for the
preparation of the consolidated financial statements, (2)financial statements prepared by foreign subsidiaries inaccordance with either International Financial ReportingStandards or the generally accepted accounting principles in
the United States tentatively may be used for the
consolidation process, (3) however, the following items
should be adjusted in the consolidation process so that net
income is accounted for in accordance with Japanese GAAP
unless they are not material;(1) Amortization of goodwill(2) Actuarial gains and losses of defined benefit plans
recognized outside profit or loss
(3) Capitalization of intangible assets arising fromdevelopment phases(4) Fair value measurement of investment properties, andthe revaluation model for property, plant andequipment, and intangible assets(5) Retrospective application when accounting policies arechanged(6) Accounting for net income attributable to a minority
interest
The new task force is effective for fiscal years beginning on
or after April 1, 2008 with early adoption permitted.
3. INVESTMENT SECURITIESInvestment securities as of March 31, 2008 and 2007,
consisted of the following:
Millions of Yen

Non-current:
Marketable equity securities
Non-marketable securities
Total

Thousands of
U.S. Dollars

2008

2007

2008

¥7,36972¥7,441¥8,674 $73,540
86
719¥8,760 $74,259

Under the existing accounting standard, finance leases thatJEOL ANNUAL REPORT 2008

24

The carrying amounts and aggregate fair values of investment
securities at March 31, 2008 and 2007, were as follows:

6. SHORT-TERM BANK LOANS AND LONG-TERM
DEBTMillions of Yen
March 31, 2008
Cost

Securities classified asavailable-for-sale
equity securities¥4,181

Unrealized Unrealized
Gains
Losses¥3,678

Fair
Value

¥490

¥7,369Long-term debt at March 31, 2008 and 2007, consisted of thefollowing:

March 31, 2007

Securities classified asavailable-for-sale
equity securities

Millions of Yen
2008

3,667

5,076

69

8,674

Thousands of U.S. Dollars
March 31, 2008
Cost

Securities classified asavailable-for-sale
equity securities

Unrealized Unrealized
Gains
LossesFair
Value$41,720 $36,710 $4,890 $73,540

Available-for-sale securities whose fair value was not readily
determinable as of March 31, 2008 and 2007 were as follows:
Carrying AmountMillions of Yen

Available-for-sale—Equity securities
Total

Thousands of
U.S. Dollars

2008

2007

2008

¥72
¥72

¥86
¥86

$719
$719

4. INVENTORIESInventories at March 31, 2008 and 2007, consisted of thefollowing:
Millions of Yen
2008

Merchandise
Finished products
Work in process
Raw materials and supplies
Total

Short-term bank loans at March 31, 2008 and 2007, consistedof notes to banks and bank overdrafts. The weighted averageannual interest rates for the short-term bank loans as of March
31, 2008 and 2007, were 3.5% and 4.0%, respectively.

Thousands of
U.S. Dollars

2007

2008

542
16,477
13,6585,966¥36,643$158,738
155,703
63,081$377,522¥¥15,906
15,601
6,321¥37,828

2007

Unsecured 0.54% yen bonds, due 2008
Unsecured 0.50% yen bonds, due 2009
Unsecured 0.90% yen bonds, due 2009
Unsecured 1.42% yen bonds, due 2011 ¥ 500
Unsecured 1.36% yen bonds, due 2012
800
Unsecured 1.40% yen bonds, due 2012900
Unsecured 1.50% yen bonds, due 2012500
Unsecured 1.24% yen bonds, due 2012270
Unsecured 1.29% yen bonds, due 2013
2,000
Unsecured zero coupon yen convertible
6,000
bonds, due 2009
Loans from banks and insurance companies,
due serially to 2013 with interest rates ranging
from 1.55% to 6.09%(2008 and 2007):
Collateralized
3,230
Unsecured
4,730
Lease obligations
2
Total
18,932Less current portion(2,423)Long-term debt, less current portion ¥16,509

Thousands of
U.S. Dollars
2008¥ 2,000
170
100
500 $ 4,990
1,000
7,984
8,982
4,990
2,695
19,9606,000

59,8803,225
32,236
5,867
47,20117
24
18,879 188,942(4,259) (24,181)¥14,620 $164,761

The unsecured zero coupon yen convertible bonds, due 2009
are convertible into common stocks on or after August 8, 2005
and up to including July 10, 2009. Unsecured zero coupon yen
convertible bonds outstanding at March 31, 2008, wereconvertible into 9,160,305 shares of common stock of theCompany. The conversion price was ¥655 per share at March
31, 2008. The conversion price of the unsecured zero coupon
yen convertible bonds is subject to adjustments to reflect stock
splits and certain other events. Under certain conditions, theunsecured zero coupon yen convertible bonds may be redeemed
prior to maturity in whole at the option of the Company at
prices ranging from 100% to 104% of the principal amount.

5. PAYABLES
Payables (trade notes and trade accounts) of the Company
which were sold to a third party (finance company) byconsolidated subsidiaries for financing are reported as “Payables(trade notes and trade accounts)” in the consolidated balance
sheets, if the due dates of settlement have not come as ofbalance sheet date.
Decreases in those payables are reported as “Decrease in tradenotes and accounts payable related to sales of trade accounts
by consolidated subsidiaries” in the consolidated statements ofcash flows.

25

JEOL ANNUAL REPORT 2008

The Company must maintain net assets in excess of ¥13,813
million ($137,854 thousand) as of every year-end and interim
closing dates. As of March 31, 2008, the Company was incompliance with this requirement.
Annual maturities of long-term debt as of March 31, 2008 forthe next five years were as follows:Year Ending March 31
2009
2010
2011
2012
2013
Total

Millions of Yen

Thousands of
U.S. Dollars¥ 2,423
9,023
1,521
3,180
2,785
¥18,932$ 24,181
90,047
15,18331,737
27,794$188,942

The carrying amounts of assets pledged as collateral for shortterm bank loans of ¥6,713 million ($66,991 thousand),current portion of long-term bank loans of ¥380 million($3,792 thousand), long-term bank loans of ¥2,850 million($28,443 thousand) and deposit received accounts which were
included in other current liabilities of ¥59 million ($587
thousand) and included in other long-term liabilities of ¥214
million ($2,132 thousand) at March 31, 2008, were as
follows:
Millions of Yen

Thousands of
U.S. Dollars¥ 632$ 6,303

2,167

21,6295
4,648¥7,452

53
46,383$74,368

Land
Buildings and structures—net of accumulated depreciation
Machinery and equipment—net of accumulated depreciation
Investment securities
Total

In addition to the above loan balances, in order to raiseliquidity, the Company entered into a committed loan facility
agreement, aggregated amount of ¥6,000 million ($59,880
thousand), with a syndicate of six Japanese banks, arranged by
The Bank of Tokyo-Mitsubishi UFJ, Ltd. The Company
must maintain net assets in excess of ¥13,813 million($137,854 thousand) as of every year-end and interim closing
dates. As of March 31, 2008, the Company was incompliance with this requirement.

The components of net periodic retirement benefit costs forthe years ended March 31, 2008 and 2007 were as follows:
Millions of Yen

Thousands of
U.S. Dollars

2008

2007

2008

Service cost
Interest cost
Expected return on plan assets
Recognized actuarial loss
Amortization of transitional obligation
Amortization of prior service cost

¥1,036
370
(329)
280
250
2

¥1,073
386
(329)
237
302
2

$10,345
3,693(3,286)
2,796
2,496
16

Net periodic retirement
benefit costs¥1,609¥1,671$16,060

The above service cost does not include additional retirement
payments of ¥197 million ($1,968 thousand) and ¥154 million
for the years ended March 31, 2008 and 2007, respectively.
Assumptions used for the years ended March 31, 2008 and2007 were set forth as follows:
Discount rate
Expected rate of return on plan assets
Recognition period of actuarial gain/loss
Amortization period of transitional obligation

2008

2007

2.0%
4.0%
12 years
15 years

2.0%
4.0%
12 years
15 years

Retirement allowances for directors and corporate auditors arepaid subject to approval of the shareholders in accordancewith a new corporate law of Japan (the “Corporate Law”).

7. RETIREMENT AND PENSION PLANS
8. EQUITYThe Company and its certain consolidated subsidiaries haveseverance payment plans for employees, directors, executive
officers and corporate auditors. The certain consolidated
foreign subsidiaries also have pension plans.
Under most circumstances, employees terminating theiremployment are entitled to retirement benefits determinedbased on the rate of pay at the time of termination, years ofservice and certain other factors. Such retirement benefits are
made in the form of a lump-sum severance payments from theCompany or from certain consolidated subsidiaries andannuity payments from a trustee. Employees are entitled tolarger payments if the termination is involuntary, by
retirement at the mandatory retirement age, by death, or byvoluntary retirement at certain specific ages prior to the
mandatory retirement age.
The liability for employees’ retirement benefits at March 31,
2008 and 2007, consisted of the following:
Millions of Yen
2008

2007

Thousands of
U.S. Dollars

Since May 1, 2006, Japanese companies have been subject to
the Corporate Law which reformed and replaced theCommercial Code of Japan. The significant provisions in the
Corporate Law that affect financial and accounting matters are
summarized below:

a. Dividends
Under the Corporate Law, 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 termof service 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. However, the Company cannot do so
because it does not meet all the above criteria.

2008

Projected benefit obligation ¥(17,684) ¥(19,312) $(176,481)
Fair value of plan assets
8,534
10,25485,169Unrecognized actuarial loss
2,495
1,841
24,898Unrecognized transitional obligation
1,587
1,821
15,836
Unrecognized prior service cost8
1283
Benefits paid
(1,314)(1,209) (13,113)
Net liability¥ (6,374) ¥ (6,593) $ (63,608)

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 Corporate
Law provides certain limitations on the amounts available
for dividends or the purchase of treasury stock. The
limitation is defined as the amount available for distribution
to the shareholders, but the amount of net assets after
dividends must be maintained at no less than ¥3 million.

JEOL ANNUAL REPORT 200826

b. Increases/Decreases and Transfer of Common
Stock, Reserve and Surplus
The Corporate Law requires that an amount equal to 10% of
dividends must be appropriated as a legal reserve (a componentof retained earnings) or as additional paid-in capital (acomponent of capital surplus) depending on the equity
account charged upon the payment of such dividends until the
total of aggregate amount of legal reserve and additional paidin capital equals 25% of the common stock. Under the
Corporate Law, the total amount of additional paid-in capitaland legal reserve may be reversed without limitation. The
Corporate Law also provides that common stock, legal reserve,
additional paid-in capital, other capital surplus and retained
earnings can be transferred among the accounts under certain
conditions upon resolution of the shareholders.

c. Treasury Stock and Treasury Stock Acquisition
RightsThe Corporate Law also provides for companies to purchasetreasury stock and dispose of such treasury stock byresolution 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 Corporate Law, stock acquisition rights, whichwere previously presented as a liability, are now presented asa separate component of equity.
The Corporate Law also provides that companies canpurchase both treasury stock acquisition rights and treasury
stock. Such treasury stock acquisition rights are presented
as a separate component of equity or deducted directly fromstock acquisition rights.
9. INCOME TAXESThe Company and its domestic subsidiaries are subject toJapanese national and local income taxes which, in the aggregate,
resulted in a normal effective statutory tax rate of approximately
40.7% for the years ended March 31, 2008 and 2007.
The tax effects of significant temporary differences and tax loss
carryforwards which resulted in deferred tax assets andliabilities at March 31, 2008 and 2007, were as follows:
Millions of Yen

Deferred tax assets—Current:
Accrued bonuses to employees
Research and development costAccrued enterprise taxes
Unrealized intercompany
profits of inventories
Loss on write-down of inventories
Tax loss carryforwards
Other
Less valuation allowance
Total
Deferred tax liabilities—Current
Net deferred tax assets—Current

27

JEOL ANNUAL REPORT 2008

Thousands of
U.S. Dollars

2008

2007

2008

¥ 459
474
18

¥ 599
435
183

$ 4,577
4,729
177

271
583
386
492
(2)
2,681
(280)
¥2,401

631
598

2,703
5,822
3,852
4,914
(16)
26,758(2,799)$23,959

490
(2)
2,934
(173)
¥2,761Millions of Yen
2008

Deferred tax assets—Non-current:
Amortization of software¥ 1,017
Loss on write-down of investment securities
279
Liability for employees’ retirement benefits
2,218
Retirement allowances for directors, executive
282
officers and corporate auditors
Tax loss carryforwards
323
Other
385
Less valuation allowance
(592)
Total
3,912
Deferred tax liabilities—Non-current (1,519)
Net deferred tax assets—Non-current ¥ 2,393
Deferred tax liabilities—Current:
Advances received¥ (52)
Other
(233)
Total
(285)
Deferred tax assets—Current
280
Net deferred tax liabilities—Current ¥(5)
Deferred tax liabilities—Non-current:
Unrealized gain on availablefor-sale securities¥(1,158)
Undistributed earnings of(278)
associated companies
Other
(144)
Total
(1,580)
Deferred tax assets—Non-current
1,519
Net deferred tax liabilities—Non-current ¥ (61)Thousands of
U.S. Dollars

2007

2008

¥ 971
263
2,337

$ 10,153
2,787
22,135

265
2,810
200
3,223
376
3,839
(468)
(5,905)
3,944
39,042(2,149) (15,162)¥ 1,795 $ 23,880¥(53) $ (526)(156)(2,328)(209)(2,854)173
2,799¥ (36) $(55)¥(1,880) $(11,558)(212)(2,771)(94)(1,437)(2,186) (15,766)
2,149
15,162¥ (37) $ (604)

A reconciliation between the normal effective statutory tax
rates and the actual effective tax rates reflected in theaccompanying consolidated statement of income for the years
ended March 31, 2008 is as follows:
2008

Normal effective statutory tax rate
Expenses not deductible for income tax purposes
Capitation of local inhabitant tax
Unrealized inter company profits
Difference in tax rates of foreign subsidiaries
Less valuation allowance
Other – net
Actual effective tax rate

40.7%
8.5
1.6
26.6
6.8
7.4
6.0
97.6%

A reconciliation for the year ended March 31, 2007 is notpresented as the difference was not material.
At March 31, 2008, certain subsidiaries had tax loss
carryforwards aggregating approximately ¥1,754 million($17,501 thousand) which were available to be offset against
taxable income of such subsidiaries in future years.
The tax loss carryforwards, if not utilized, will expire in years
ending in 2013 and thereafter.
10. RESEARCH AND DEVELOPMENT COSTS
Research and development costs charged to income were
¥6,486 million ($64,728 thousand) and ¥5,984 million forthe years ended March 31, 2008 and 2007, respectively.

11. RELATED PARTY TRANSACTIONS

Obligations under finance leases:

Transactions with unconsolidated subsidiaries and associatedcompanies for the years ended March 31, 2008 and 2007,
were as follows:
Thousands of
U.S. Dollars

Millions of Yen

Sales
Purchases
Selling, general and administrative expenses

2008

2007

2008

¥2,726225
202¥3,269143
285$27,206
2,246
2,016

Millions of Yen

Due within one year
Due after one year
Total

2008

2007

2008

¥142
270
¥412

¥241
318
¥559

$1,412
2,695$4,107

Depreciation expense and interest expense under financeleases:Millions of Yen

12. LEASES

Depreciation expense
Interest expense
Total

The Companies lease certain machinery, computerequipment, office space and other assets.
Total rental expenses, primarily for lease agreements for officespace which were cancelable at the option of the Company or
upon expiration, for the years ended March 31, 2008 and2007, were ¥1,839 million ($18,352 thousand) and ¥1,937
million, respectively, including ¥268 million ($2,678
thousand) and ¥327 million of lease payments under financeleases.

Thousands of
U.S. Dollars

2008

2007

2008

¥191
18
¥209

¥224
19
¥243

$1,905
184$2,089Depreciation expense and interest expense, which are notreflected in the accompanying consolidated statements ofincome, were computed by the declining-balance method andthe interest method, respectively.
The minimum rental commitments under noncancelable
operating leases at March 31, 2008 and 2007 were as follows:
Millions of Yen

Pro forma information of leased property such as acquisition
cost, accumulated depreciation, obligations under financeleases, depreciation expense and interest expense of financeleases that do not transfer ownership of the leased property to
the lessee on an “as if capitalized” basis for the years ended
March 31, 2008 and 2007 was as follows:

Thousands of
U.S. Dollars

Due within one year
Due after one year
Total

Thousands of
U.S. Dollars

2008

2007

2008

¥191
200
¥391

¥231
172
¥403

$1,9101,991$3,901

13. DERIVATIVES
Year Ended March 31, 2008
Millions of Yen
Buildings Machinery Tools,
andand Furniture andStructures Equipment Fixtures Software

Acquisition cost
Accumulated depreciation
Net leased property

¥7
5
¥2

¥84
24
¥60

¥672
475
¥197

Total

¥393 ¥1,156
292
796¥101 ¥ 360

Thousands of U.S. Dollars
Buildings Machinery Tools,
andand Furniture andStructures Equipment Fixtures Software

Acquisition cost
Accumulated depreciation
Net leased property

$68
54
$14

Total

$839 $6,708 $3,918 $11,533
234 4,739 2,912 7,939$605 $1,969 $1,006 $ 3,594

Year Ended March 31, 2007
Millions of Yen
Buildings Machinery Tools,
andand Furniture andStructures Equipment Fixtures Software

Acquisition cost
Accumulated depreciation
Net leased property

¥7
5
¥2

¥34
13
¥21

¥616
441
¥175

The Companies enter into derivative financial instruments(“derivatives”), including foreign currency forward contracts
and currency swaps, to hedge foreign exchange risk associatedwith certain assets and liabilities denominated in foreign
currencies. The Companies also enter into interest rate swap
agreements as a means of managing their interest rate exposure.
It is the Companies’ policy to use derivatives only for the
purpose of reducing market risks associated with assets andliabilities. The Companies do not hold or issue derivatives for
trading purposes.
Derivatives are subject to market risk. Market risk is the
exposure created by potential fluctuations in market
conditions, including foreign exchange rates and interest rates.
Because the counterparties to those derivatives are limited tomajor international financial institutions, the Companies do
not anticipate any losses arising from credit risk.

Total¥826 ¥1,483
611 1,070¥215 ¥ 413

The basic policies for the use of derivatives are approved by
the Board of Directors and the execution and control ofderivatives are controlled by the Financial Department.
Foreign currency forward contracts, interest rate swaps andcurrency swaps which qualified for hedge accounting for theyears ended March 31, 2008 and 2007, are excluded from thedisclosure of market value information.

JEOL ANNUAL REPORT 200828

14. CONTINGENT LIABILITIES(1)Industry Segments
a. Sales and Operating Income

At March 31, 2008, the Companies had the following
contingent liabilities:

Millions of Yen

Millions of Yen

Thousands of
U.S. Dollars¥5,399$53,886¥ 203$ 2,025

Trade notes discounted
Guarantees of advance received of
unconsolidated subsidiary

15 NET INCOME PER SHARE
Reconciliation of the differences between basic and diluted net
income per share (“EPS”) for the years ended March 31, 2008
and 2007 was as follows:Year Ended March 31, 2008

Basic EPS—Net income available
to common shareholders
Effect of dilutive securities—
Convertible bonds
Diluted EPS—Net income
for computation

Millionsof YenThousandsof Shares

Net
IncomeWeightedaverage
Shares¥113 78,977

Yen

U.S. Dollars

EPS

¥1.42

2008

Sales to customers
Intersegment sales
Total sales
Operating expenses
Operating income

Scientific
Instrument

Industrial
Equipment

Eliminations/
Corporate¥39,090¥54,799¥93,889

39,09037,971¥ 1,119

54,79950,837¥ 3,962

93,889¥ 2,927
91,735¥(2,927) ¥ 2,154

Consolidatedb. Total Assets, Depreciation and Capital Expenditures
Millions of Yen
2008

Total assets
Depreciation
Capital expenditures

Scientific
Instrument

Industrial
Equipment

Eliminations/
Corporate¥33,812
1,149
1,911

¥54,384
1,699
4,191

¥18,126 ¥106,322
75
2,923
16
6,118

Consolidated$0.01
a. Sales and Operating Income

9,160

Thousands of U.S. Dollars
2008¥113 88,137

¥1.28

$0.01

Industrial
Equipment

Eliminations/
Corporate

Consolidated¥35.50

Sales to customers
Intersegment sales
Total sales
Operating expenses
Operating income¥31.83b. Total Assets, Depreciation and Capital Expenditures

Year Ended March 31, 2007

Basic EPS—Net income available
to common shareholders ¥2,816 79,308
Effect of dilutive securities—
Convertible bonds
9,160
Diluted EPS—Net income
for computation¥2,816 88,468

Scientific
Instrument$390,119 $546,892$937,011

390,119 546,892
937,011
378,945 507,351 $ 29,215 915,511$ 11,174 $ 39,541 $(29,215) $ 21,500

Thousands of U.S. Dollars
2008

16. SUBSEQUENT EVENT

Scientific
Instrument

The following appropriation of retained earnings at March 31,
2008, was approved at the Company’s shareholders meeting
held on June 27, 2008:
Millions of Yen

Year-end cash dividends,¥2.5 ($0.02) per share

Thousands of
U.S. Dollars

Total assets
Depreciation
Capital expenditures

Industrial
Equipment

Eliminations/
Corporate

Consolidated$337,446 $542,753 $180,896 $1,061,095
11,464
16,955752
29,171
19,072
41,831
155
61,058a. Sales and Operating Income
Millions of Yen

¥196

2007

$1,954

17. SEGMENT INFORMATION
Information about operations in different industry segments,
geographical segments and sales to foreign customers of theCompanies for the years ended March 31, 2008 and 2007,
was as follows:

Sales to customers
Intersegment sales
Total sales
Operating expenses
Operating income

Scientific
Instrument

Industrial
Equipment

Eliminations/
Corporate¥64,364¥37,412¥101,776

64,36460,729¥ 3,635

37,412
32,920¥ 4,492

101,776¥ 2,81496,463¥(2,814) ¥ 5,313

Consolidatedb. Total Assets, Depreciation and Capital Expenditures
Millions of Yen
2007

Total assets
Depreciation
Capital expenditures

29

JEOL ANNUAL REPORT 2008

Scientific
Instrument

Industrial
Equipment

Eliminations/
Corporate¥51,538
1,612
1,698

¥34,516
996
1,379¥25,141 ¥111,195
64
2,672
15
3,092

Consolidated

Beginning in the year ended March 31, 2008, certain of theelectron microscopes traditionally included in scientificinstrument were classified under a new division,
measurement/inspection, under the industrial equipment
segment. Reasons for these changes are: (a) these microscopes
are primarily used in industrial applications such as quality
control of semiconductors; and (b) one of the goals in our mid
term plan, Action 60, is to strengthen our semiconductor
equipment business by integrating scanning electron
microscopy(SEM) to respond to market demands.
Consolidated accounting results of the previous year, adjusted
under the new business divisions, are as follows:

Thousands of U.S. Dollars
2008
North America
Eliminations/Japan Latin America Other Corporate Consolidated

Sales to customers
Interarea transfer
Total sales
Operating expenses
Operating income
Total assets

2007
North America
Eliminations/Japan Latin America Other Corporate Consolidated

Millions of Yen
2007
Scientific
Instrument

Industrial
Equipment

Eliminations/
Corporate¥42,439¥59,337¥101,776

42,43940,281¥ 2,158

59,33753,368¥ 5,969

101,776¥ 2,81496,463¥(2,814) ¥ 5,313

Consolidatedb. Total Assets, Depreciation and Capital Expenditures
Millions of Yen
2007

Total assets
Depreciation
Capital expenditures$121,617 $149,271$ 937,011
2,534 5,086 $(139,043)
124,151 154,357 (139,043) 937,011
114,485 147,891 (105,227) 915,511$ 9,666 $ 6,466 $ (33,816) $ 21,500$ 61,241 $ 93,413 $ 140,091 $1,061,095
Millions of Yen

a. Sales and Operating Income

Sales to customers
Intersegment sales
Total sales
Operating expenses
Operating income$666,123
131,423
797,546758,362$ 39,184$766,350

Scientific
Instrument

Industrial
Equipment

Eliminations/
Corporate¥33,429952
987¥52,625
1,656
2,090

¥25,141 ¥111,195
64
2,672
15
3,092

Consolidated

Sales to customers
Interarea transfer
Total sales
Operating expenses
Operating income
Total assets¥73,119
13,997¥87,116
79,5397,577¥74,226¥15,176 ¥13,481
189
449
15,365 13,930
15,092 13,472¥ 273 ¥ 458¥ 6,163 ¥ 7,929¥101,776¥(14,635)(14,635) 101,776(11,640) 96,463¥ (2,995) ¥ 5,313¥ 22,877 ¥111,195

Note:

Each area primarily refers to the following countries:
North America, Latin America: U.S.A., Canada and Mexico
Other:
Europe, Southeast Asia and Australia(3)Sales to Foreign Customers
The sales to foreign customers of the Companies for the years
ended March 31, 2008 and 2007 were summarized as follows:
Millions of Yen
2008

Note:

The Companies primarily engage in the manufacture and saleof products in two major segments, grouped on the basis ofsimilarities in the type, nature and market of the products.
The two segments, namely, scientific instrument andindustrial equipment, consist of the following main products:

North America
Latin America

Overseas sales (A)Consolidated sales (B)(A)/(B)

Other

Total

¥19,716¥24,915

21.0%

26.5%

¥44,631
93,88947.5%

Thousands of U.S. Dollars

Scientific instrument:
Transmission Electron Microscopes, NMR
Spectrometers, Mass Spectrometers, etc.
Industrial equipment:
Scanning Electron Microscopes, Electron
Beam Lithography System, Wafer Inspection
Systems, High Frequency Plasma Generators,
Clinalyzers, etc.
(2)Geographical Segments
The geographical segments of the Companies for the years
ended March 31, 2008 and 2007 were summarized asfollows:

2008
North America
Latin America

Overseas sales (A)Consolidated sales (B)(A)/(B)

Other

Total

$196,768 $248,656 $445,424
937,011
21.0%
26.5%
47.5%
Millions of Yen
2007
North America
Latin America

Overseas sales (A)Consolidated sales (B)(A)/(B)

Other

Total

¥23,797¥21,569

23.4%

21.2%

¥45,366
101,776
44.6%

Millions of Yen

Note:

2008
North America
Eliminations/Japan Latin America Other Corporate Consolidated

Sales to customers
Interarea transfer
Total sales
Operating expenses
Operating income
Total assets¥66,746
13,16879,91475,988¥ 3,926¥76,789¥12,186 ¥14,957
254
510
12,440 15,467
11,472 14,819¥ 968 ¥ 648¥ 6,136 ¥ 9,360¥ 93,889¥(13,932)(13,932) 93,889(10,544) 91,735¥ (3,388) ¥ 2,154¥ 14,037 ¥106,322

The Companies are summarized in these segments bygeographic area and the countries where the customers arelocated. The segments consisted of the following countries:
North America, Latin America: U.S.A., Canada and Mexico
Other:
Europe, Asia and Australia

JEOL ANNUAL REPORT 200830

Independent Auditors’ Report

31

JEOL ANNUAL REPORT 2008

Corporate Outline(As of March 31, 2008)

Corporate Name:JEOL Ltd.

Address:

1-2, Musashino 3-chome, Akishima, Tokyo 196-8558, Japan
TEL: +81-42-543-1111 FAX: +81-42-546-3353

Establishment:

May 30, 1949

Capital:¥6,740 million

Number of Employees:

Consolidated 3,047 Non-consolidated 1,326

Stock Information:

Authorized shares: 200,000,000
Issued shares: 79,365,600
Number of shareholders: 11,835

Domestic Subsidiaries
and Affiliated Companies:

Head Officeand Branch Offices:

Head Office: FactoryTokyo Office
Tokyo Branch Office
Sapporo Branch OfficeSendai Branch Office
Tsukuba Branch Office
Yokohama Branch Office
Nagoya Branch OfficeOsaka Branch OfficeKansai Application Research Center
Hiroshima Branch Office
Fukuoka Branch Office

JEOL TECHNICS LTD.
JEOL DATUM LTD.
JEOL FINETECH CO., LTD.
JEOL SYSTEM TECHNOLOGY CO., LTD.
JEOL ENGINEERING CO., LTD.
JEOL ACTIVE CO., LTD.
JEOL TECHNOSERVICE CO., LTD.
YAMAGATA CREATIVE CO., LTD.
ADVANCED CAPACITOR TECHNOLOGIES, INC.

Overseas Subsidiaries
and AffiliatedCompanies:

JEOL USA, INC. [USA]11 Dearborn Road, Peabody, MA. 01960, USA
TEL. 1-978-535-5900

JEOL (EUROPE) SAS [France]

Espace Claude Monet, 1 Allee de Giverny 78290 Croissy-sur-Seine, France
TEL. 33-13015-3737

JEOL (U.K.) LTD. [U.K.]

JEOL House, Silver Court, Watchmead, Welwyn Garden City, Herts AL7 1LT, U.K.
TEL. 44-1707-377117

JEOL (EUROPE) B. V. [the Netherlands]

Lireweg 4, NL-2153 PH Nieuw-Vennep, The Netherlands
TEL. 31-252-623500

JEOL (SKANDINAVISKA) A.B. [Sweden]

Hammarbacken 6A Box 716 191 27 Sollentuna, Sweden
TEL. 46-8-28-2800

JEOL (GERMANY) GmbH [Germany]

Oskar-Von-Miller-Strasse 1, 85386 Eching, Germany
TEL. 49-8165-77512

JEOL (ITALIA) S.p.A. [Italy]

Centro Direzionale Green Office Via Dei Tulipani, 1, 20090 Pieve, Emanuele (MI), Italy
TEL. 39-2-9041431

JEOL ASIA PTE. LTD. [Singapore]

2 Corporation Road #01-12 Corporation Place, Singapore 618494
TEL. 65-6565-9989

JEOL TAIWAN SEMICONDUCTORS LTD. [Taiwan] 11F, No.346, Pei-Ta Road, Hsin-Chu City300, Taiwan, Republic of China
TEL. 886-3-523-8490

JEOL (AUSTRALASIA) PTY. LTD. [Australia] Unit 9, 750-752 Pittwater Road, Brookvale, N.S.W. 2100, Australia
TEL. 61-2-9905-8255

JEOL DE MEXICO S.A. DE C.V. [Mexico]

Av. Amsterdam #46 DEPS. 402 Col Hipodromo, Mexico 06100, Mexico D.F. Mexico
TEL. 52-5-55-211-4511

JEOL CANADA, INC. [Canada]5757 Cavendish Boulevard, Suite 504, Montreal, Quebec H4W 2W8, Canada
TEL. 1-514-482-6427

JEOL (MALAYSIA) SDN BHD [Malaysia]

205, Block A, Mezzanine Floor, Kelana Business Center 97, Jalan SS 7/2, Kelana Jaya, 47301 Petaling Jaya, Selangor, Malaysia
TEL. 60-3-7492-7722

Beijing Creative Technology Co., Ltd. [China] Room 415, Building B, No.18 Xihuannan Road, BDA (Beijing Economic-technological Development Area) Beijing, China
TEL. 86-10-6737-2198

JEOL Shanghai Semiconductors Ltd. [China] 34A World Plaza No.855 PuDong Nan Road. Shanghai, China
TEL. 86-21-6888-0770

JEOL DATUM Shanghai Co., Ltd. [China]

Room No.2201,Suncome Liauw’s Plaza No.738 ShangCheng Road, PuDong New Area. Shanghai 200122, China
TEL. 86-21-5836-6350

JEOL KOREA LTD. [Korea]

Sunmin Building. 6th F1., 218-16, Nonhyun-Dong, Kangnam-Ku, Seoul 135-010, Korea
TEL. 82-2-511-5501

JEOL ANNUAL REPORT 200832

Serving Advanced Technology
1-2, Musashino 3-chome Akishima, Tokyo 196-8558, Japan
TEL: +81-42-543-1111 FAX: +81-42-546-3353
E-mail: ir@jeol.co.jp
URL http://www.jeol.co.jp/

This annual report is printed on recycled paper using soy ink.

Printed in Japan