YEAR ENDED MARCH 31, 2013

ICOM INCORPORATED

Financial Highlights
ICOM INCORPORATED AND SUBSIDIARIES
Years ended March 31, 2013, 2012 and 2011

Thousands of
U.S. dollars

Millions of yen

2013
25,852
2,178
3,211
2,228

Net sales
Operating income
Income before income taxes
Net income¥

Total assets¥

Amounts per share:
Net assets
Net income – basic
Net income – diluted
Cash dividends¥ 3,313.79
150.37–30.00

54,866¥¥

2012
23,583
1,307
1,510
1,096

¥

51,213¥

2011
22,540
731
782
436

2013
$ 274,904
23,16034,14523,69249,807$ 583,433

Yen

U.S. dollars¥ 3,128.22
73.94
–
20.00

¥ 3,081.33
29.44
–
20.00

$

35.24
1.60
–
0.32

Notes:
1. All dollar amounts herein refer to U.S. dollars translated from Japanese yen at ¥94.04 = U.S.$1.00, the exchange rate prevailing on March 31, 2013.
2. Amounts shown in millions of yen and thousands of dollars are rounded off to the nearest million or thousand.

Net Sales

Operating Income(Millions of yen)

(Millions of yen)

2,178

2,500

28,00025,8522,000

26,00024,00022,5401,000

22,00020,000

1,307

1,500

23,583

731

500
2011

2012

2013

0

2011

Net Income

Total Assets(Millions of yen)

(Millions of yen)

2,228

2,500

57,0002013

54,86655,0002,000

53,000

1,500

1,096
51,0001,000

51,21349,80749,000

436
500
0

2012

47,00045,000
2011

2012

2013

2011

2012

2013

ICOM INCORPORATED ANNUAL REPORT 2013

1

Operating Highlights
GEOGRAPHICAL SEGMENT INFORMATION
Years ended March 31, 2013 and 2012
Millions of yen

Japan
North America
EuropeAsia & Oceania
Eliminations
Consolidated total

Net sales
2012
2013¥ 20,626¥ 22,534
7,618
7,697
875
753
1,585
1,717
(7,121)(6,849)¥ 23,583¥ 25,852

Thousands of U.S. dollars

Operating income (loss)
2012
2013
¥
848
¥ 1,963
263
339
(16)
(51)
164
163
48
(236)
¥ 1,307¥ 2,178

Net sales2013$ 239,621
81,848
8,007
18,259(72,831)$ 274,904

Operating income
2013$ 20,874
3,605
(543)
1,734
(2,510)$ 23,160

Notes:
1. All dollar amounts herein refer to U.S. dollars translated from Japanese yen at ¥94.04 = U.S.$1.00, the exchange rate prevailing on March 31, 2013.
2. Amounts shown in millions of yen and thousands of dollars are rounded off to the nearest million or thousand.

Net Sales(Millions of yen)

25,000Japan

22,534

20,626

North America
Europe20,000Asia & Oceania

15,000
7,618

10,000
5,000

7,697

875 1,585

0

753

2012

1,717

2013

Operating Income (Loss)(Millions of yen)

Japan

1,963

2,200
2,000
1,800

North America

1,600

Asia & Oceania

1,400
1,200

Europe

848

1,000
800
600

339

263
△ 16

400

164

△ 51

163

200
0
(200)

2012

2013

ICOM INCORPORATED ANNUAL REPORT 20132

Operating Highlights
OVERSEAS SALES
Years ended March 31, 2013 and 2012

Millions of yen

North America
EuropeAsia
OtherOverseas total
Domestic total
Consolidated total

2013 (Unaudited)¥ 7,069
27.3%
2,918
11.3
4,862
18.8
792
3.1
15,641
60.5
10,211
39.5¥ 25,852
100.0%

2012¥ 7,054
29.9%
3,364
14.3
5,439
23.1
785
3.3
16,642
70.6
6,941
29.4
¥ 23,583
100.0%

Thousands of U.S. dollars

2013 (Unaudited)$ 75,170
31,02951,701
8,422
166,322
108,582$ 274,904

Notes:
1. All dollar amounts herein refer to U.S. dollars translated from Japanese yen at ¥94.04 = U.S.$1.00, the exchange rate prevailing on March 31, 2013.
2. Amounts shown in millions of yen and thousands of dollars are rounded off to the nearest million or thousand.

Net Sales 2012

Net Sales 2013

ICOM INCORPORATED ANNUAL REPORT 2013

3

ICOM INCORPORATED AND SUBSIDIARIES

Consolidated Balance Sheets
March 31, 2013 and 2012

Thousands of
U.S. dollars(Note 1)Millions of yen

2013

2012

2013

Total current assets¥ 26,047
–
6,893
(27)
6,866
5,838
591
2,334
41,676¥ 27,543
199
4,805
(18)
4,787
5,370
456
1,055
39,410$ 276,978–73,299(287)
73,01262,0806,284
24,819443,173

Property, plant and equipment:
Land
Buildings and structures
Machinery and equipment
Vehicles and otherConstruction in progress
Property, plant and equipment, at costLess accumulated depreciation
Property, plant and equipment, net (Note 16)

4,119
6,390
11,535216
33
22,293(14,629)
7,664

3,831
5,988
11,428201
1321,461(14,436)
7,025

43,80067,950122,661
2,297
351
237,059(155,562)
81,497

Investments and other assets:
Investments in securities (Notes 5 and 6)
Other investments
Deferred income taxes (Note 9)
Other assets
Allowance for doubtful accounts
Total investments and other assets
Total assets (Note 16)

1,966
2,926
588
139
(93)
5,526
¥ 54,866

1,381
2,748
500
202
(53)
4,778
¥ 51,213

20,906
31,114
6,253
1,479
(989)
58,763$ 583,433

AssetsCurrent assets:
Cash and deposits (Notes 3 and 5)
Marketable securities (Notes 3, 5 and 6)
Notes and accounts receivable (Notes 4 and 5)
Allowance for doubtful accounts

Inventories (Note 7)
Deferred income taxes (Note 9)
Other current assets

See accompanying notes to consolidated financial statements.

ICOM INCORPORATED ANNUAL REPORT 2013

4

ICOM INCORPORATED AND SUBSIDIARIES

Consolidated Balance Sheets
March 31, 2013 and 2012

Thousands of
U.S. dollars(Note 1)Millions of yen

2013

2012

2013

Total current liabilities¥ 1,076
446
912
1,091
47
650
4,222

¥ 1,386
584
411
952
42
120
3,495

$ 11,442
4,743
9,698
11,602500
6,912
44,897Long-term liabilities:
Accrued retirement benefits for employees (Note 8)
Deferred income taxes (Note 9)
Other long-term liabilities
Total long-term liabilities

876
22
641
1,539

740
20
602
1,362

9,315
234
6,816
16,365

7,081
10,44931,641

7,081
10,44929,70975,298111,112336,463(103)
49,068(102)
47,137(1,096)
521,777(48)
85
3749,105¥ 54,866

(21)
(760)
(781)
46,356¥ 51,213

(510)
904
394
522,171$ 583,433

Liabilities and net assets
Current liabilities:
Accounts payable – trade (Note 5)
Accounts payable – otherAccrued income taxes (Note 9)
Accrued expenses
Warranty reserves
Other current liabilities

Net assets:
Shareholders’ equity (Note 10):
Common stock:
Authorized – 34,000,000 shares;
14,850,000 shares in 2013 and 2012
Issued –Capital surplus
Retained earnings (Note 18)
Less treasury stock, at cost:
31,583 shares in 2013 and 31,470 shares in 2012
Total shareholders’ equity
Accumulated other comprehensive income (loss)(Note 13):
Unrealized holding loss on securities (Note 6)
Translation adjustments
Total accumulated other comprehensive income (loss)
Total net assets
Total liabilities and net assets
See accompanying notes to consolidated financial statements.

ICOM INCORPORATED ANNUAL REPORT 2013

5

ICOM INCORPORATED AND SUBSIDIARIES

Consolidated Statements of Income
Years ended March 31, 2013 and 2012

Thousands of
U.S. dollars(Note 1)Millions of yen

Net sales (Note 16)
Cost of sales
Gross profit
Selling, general and administrative expenses(Notes 12 and 14)
Operating income (Note 16)
Other income (expenses):
Interest and dividend income
Gain on sales of securities, net (Note 6)
Foreign exchange gain, net
Gain on sales of property, plant and equipment
Sales discounts
Other, net

Income before income taxes
Income taxes (Note 9):
Current
Deferred
Net income

2013¥ 25,852
15,134
10,7182012¥ 23,583
14,3839,200

2013$ 274,904
160,932
113,972

8,540
2,178

7,893
1,307

90,812
23,160

235
4
793
57
(155)
99
1,033
3,211

232
0
39
1
(147)
78
203
1,510

2,499
43
8,432
606
(1,648)
1,053
10,98534,145

1,186
(203)
983
¥ 2,228

589
(175)
414
¥ 1,096

12,612(2,159)10,453$ 23,692

See accompanying notes to consolidated financial statements.

ICOM INCORPORATED ANNUAL REPORT 2013

6

ICOM INCORPORATED AND SUBSIDIARIES

Consolidated Statements ofComprehensive Income
Years ended March 31, 2013 and 2012

Thousands of
U.S. dollars(Note 1)Millions of yen

Net income
Other comprehensive income (loss) (Note 13):
Unrealized holding loss on securities
Translation adjustments
Total other comprehensive income (loss)
Comprehensive income
Total comprehensive income attributable to:Shareholders of ICOM INCORPORATED

2013¥ 2,2282012¥ 1,0962013$ 23,692

(27)
845
818
¥ 3,046

(33)
(71)
(104)
¥ 992

(287)
8,986
8,699
$32,391¥ 3,046¥$ 32,391

992

See accompanying notes to consolidated financial statements.

ICOM INCORPORATED ANNUAL REPORT 2013

7

ICOM INCORPORATED AND SUBSIDIARIES

Consolidated Statements of
Changes in Net Assets
Years ended March 31, 2013 and 2012

Millions of yen

Balance at April 1, 2011
Net income for the year
Cash dividends
Purchases of treasury stock
Sales of treasury stock
Other changes
Balance at April 1, 2012
Net income for the year
Cash dividends
Purchases of treasury stock
Other changes
Balance at March 31, 2013

Number ofshares in issue

Commonstock

CapitalsurplusRetainedearnings

Treasurystock, at cost

Unrealized
holding loss on
securities

Translation
adjustments

Total net
assets14,850,000¥ 7,081¥ 10,449¥ 28,910¥ (102)¥ 12¥ (689)¥ 45,661–––––
14,850,000

–
–
–
–
–
¥ 7,081–––––¥ 10,449

1,096
(297)
–
–
–
¥ 29,709

–
–
(0)
0
–
¥ (102)

–
–
–
–
(33)
¥ (21)

–
–
–
–
(71)
¥ (760)

1,096
(297)
(0)
0
(104)
¥ 46,356––––
14,850,000––––¥ 7,081––––¥ 10,449

2,228
(296)
–
–
¥ 31,641––(1)–¥ (103)–––(27)¥ (48)

–
–
–
845
85

2,228
(296)
(1)
818
¥ 49,105¥

Thousands of U.S. dollars (Note 1)

Balance at April 1, 2012
Net income for the year
Cash dividends
Purchases of treasury stock
Other changes
Balance at March 31, 2013

Commonstock

CapitalsurplusRetainedearnings

Treasurystock, at cost

Unrealized
holding loss on
securities

Translation
adjustments

Total net
assets$ 75,298––––$ 75,298$ 111,112––––$ 111,112$ 315,919
23,692(3,148)––$ 336,463$ (1,085)
–
–
(11)
–
$ (1,096)$ (223)–––(287)$ (510)$ (8,082)
–
–
–
8,986
$ 904

$ 492,939
23,692(3,148)(11)
8,699$ 522,171

See accompanying notes to consolidated financial statements.

ICOM INCORPORATED ANNUAL REPORT 2013

8

ICOM INCORPORATED AND SUBSIDIARIES

Consolidated Statements of Cash Flows
Years ended March 31, 2013 and 2012

Thousands of
U.S. dollars(Note 1)Millions of yen

Operating activities:
Income before income taxes
Adjustments for:
Depreciation and amortization
Interest and dividend income
Foreign exchange gain, net
Increase in notes and accounts receivable
Increase in inventories(Decrease) increase in accounts payable – trade
Other, net
Subtotal
Income taxes paid
Net cash (used in) provided by operating activities
Investing activities:
Increase in time deposits with original
maturities in excess of three months
Proceeds from sales of marketable securities
Purchases of property, plant and equipment
Purchases of other assets
Purchases of investments in securities
Proceeds from sales of investments in securities
Interest and dividend income received
Other, net
Net cash used in investing activities
Financing activities:
Purchases of treasury stock
Sales of treasury stock
Cash dividends paid
Net cash used in financing activities
Effect of exchange rate changes on cash and cash
equivalents
Net decrease in cash and cash equivalents
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year (Note 3)

2013

2012

2013

¥ 3,211¥ 1,510$ 34,145

973
(235)
(124)
(2,243)
(176)
(573)
(411)
422
(704)
(282)

1,025
(232)
(118)
(1,091)
(483)
127
343
1,081
(404)
677

10,347(2,499)(1,319)(23,852)(1,872)(6,093)(4,369)4,488(7,486)(2,998)(128)
200(1,586)
(35)
(823)
209
234
258
(1,671)

(203)
214
(760)
(51)
(817)
214
227
(127)
(1,303)(1,361)
2,127(16,865)(372)(8,752)
2,222
2,488
2,744
(17,769)

(1)
–
(296)
(297)

(0)
0
(297)
(297)

(11)
–
(3,148)(3,159)336(1,914)25,692¥ 23,778

69(854)
26,546¥ 25,692

3,573(20,353)
273,203$ 252,850

See accompanying notes to consolidated financial statements.

ICOM INCORPORATED ANNUAL REPORT 2013

9

ICOM INCORPORATED AND SUBSIDIARIES

Notes to Consolidated Financial Statements
March 31, 2013

1. Basis of Preparation
The accompanying consolidated financial statements of ICOM INCORPORATED (the “Company”) and its subsidiaries areprepared on the basis of accounting principles generally accepted in Japan, which are different in certain respects as to the applicationand disclosure requirements of International Financial Reporting Standards, and have been compiled from the consolidated financial
statements prepared by the Company as required by the Financial Instruments and Exchange Act of Japan.
In addition, the notes to the consolidated financial statements include certain information which is not required under accounting
principles generally accepted in Japan but is presented herein as additional information.
The translation of yen amounts into U.S. dollar amounts is included solely for the convenience of readers outside Japan, as amatter of arithmetic computation only, and has been made at ¥94.04 = U.S.$1.00, the approximate rate of exchange in effect on
March 31, 2013. This translation should not be construed as a representation that yen have been, could have been, or could in the
future be, converted into U.S. dollars at the above or any other rate.

2. Summary of Significant Accounting Policies(a) Principles of consolidation
The accompanying consolidated financial statements include the accounts of the Company and the companies which it
controls directly or indirectly. Two companies over which the Company exercises significant influence in terms of theiroperating and financial policies have been included in the accompanying consolidated financial statements on an equity basis.
All significant intercompany balances and transactions have been eliminated in consolidation. All material unrealizedintercompany gains and losses among the Company and the subsidiaries have been entirely eliminated.

(b) Cash and cash equivalents
For purposes of the consolidated statements of cash flows, cash and cash equivalents consist of cash on hand, deposits withbanks withdrawable on demand, and short-term investments which are readily convertible to cash subject to an insignificant riskof any changes in their value and which were purchased with an original maturity of three months or less.

(c) Foreign currency translation
The balance sheet accounts of the overseas subsidiaries are translated into yen at the rates of exchange in effect at the balance
sheet date except that the components of net assets are translated at their historical exchange rates. Adjustments resulting fromtranslating accounts denominated in foreign currencies are not included in the determination of net income in the accompanying
consolidated financial statements, but are reported as “Translation adjustments,” a component of net assets.
Revenue and expense accounts are translated at the average rates of exchange in effect during the year.
All monetary assets and liabilities denominated in foreign currencies are translated into yen at the rates of exchange in effectat the balance sheet date, except that receivables and payables hedged by qualified forward foreign exchange contracts aretranslated at the corresponding contract rates. Gain or loss on each translation is credited or charged to income.

(d) Marketable securities and investments in securities
In general, securities are classified into three categories: trading securities, held-to-maturity debt securities or other securities.
Trading securities, consisting of debt and marketable equity securities, are stated at fair value. Gain or loss, both realized andunrealized, are credited or charged to income. Held-to-maturity debt securities are stated at their amortized cost. Marketablesecurities classified as other securities are carried at fair value with any changes in unrealized holding gain or loss, net of theapplicable income taxes, reported as a separate component of net assets. Non-marketable securities classified as othersecurities are carried at cost determined by the moving average method.
Securities held by the Company and its subsidiaries including equity investments in an affiliate, which are not accounted foron an equity basis, are all classified as “other securities” and have been accounted for as outlined above.

(e) Inventories
Inventories are mainly stated at the lower of cost or net selling value, cost being determined by the moving average method,
except for goods held by certain overseas subsidiaries which are valued at the lower of cost or market, cost being determined by
the moving average method.

ICOM INCORPORATED ANNUAL REPORT 201310

ICOM INCORPORATED AND SUBSIDIARIES

Notes to Consolidated Financial Statements
2. Summary of Significant Accounting Policies (continued)(f) Property, plant and equipment (except for leased assets)
Property, plant and equipment are stated at cost. Depreciation of property, plant and equipment is computed principally by the
declining-balance method over the estimated useful lives of the respective assets as prescribed in the Corporation Tax Law ofJapan, except that the straight-line method is applied to buildings (other than structures attached to the buildings) acquired on
April 1, 1998 and thereafter. Small assets owned by the Company and its domestic subsidiaries, which are valued at ¥100
thousand or more and less than ¥200 thousand, are depreciated by the straight-line method over a three-year period.

(g) Software development costs (except for leased assets)
Expenditures relating to the development of computer software intended for internal use are charged to income when incurred,
except if it is anticipated that this software will contribute to the generation of income or to future cost savings. Suchexpenditures are capitalized as assets and amortized by the straight-line method over an estimated useful life of 3 years or 5
years. Small assets owned by the Company and its domestic subsidiaries, which are valued at ¥100 thousand or more and lessthan ¥200 thousand, are amortized by the straight-line method over a three-year period.

(h) Leased assets
Leased assets are depreciated by the straight-line method over respective lease periods with no residual value.

(i) Allowance for doubtful accounts
The allowance for doubtful accounts is computed based on the historical ratio of bad debts and an estimate of certain
uncollectible amounts determined after an analysis of specific individual receivables.

(j) Warranty reserves
Warranty reserves for certain overseas subsidiaries are calculated based on the historical ratio of the cost of repairs of the
products against net sales.

(k) Accrued retirement benefits
Accrued retirement benefits for employees are provided mainly at an amount calculated based on the retirement benefit
obligation and the fair value of the pension plan assets as adjusted for unrecognized actuarial gain or loss and unrecognized priorservice cost. The retirement benefit obligation is attributed to each period by the straight-line method over the estimatedremaining years of service of the eligible employees.
Actuarial gain or loss and prior service cost are amortized over a period of ten years commencing the year following the year
in which the gain or loss is recognized by the straight-line method. The amortization period is shorter than the average
estimated remaining years of service of the eligible employees.
The net retirement benefit obligation at transition of ¥592 million is being amortized over fifteen years.
Prior service cost is being amortized by the straight-line method over ten years within the average remaining years of service
at the time of occurrence.
Actuarial gain or loss is being amortized in the year following the year in which the gain or loss is recognized by thestraight-line method over ten years, which is within the average remaining years of service of employees.

(l) Hedge accounting
Under the accounting standard for financial instruments, gain or loss on derivatives designated as hedging instruments isdeferred until the loss or gain on the underlying hedged items is recognized. Derivatives such as forward foreign exchange
contracts are utilized to manage foreign currency risk. Forward foreign exchange contracts which meet certain conditions areaccounted for by a method under which foreign currency receivables or payables are translated at their corresponding forward
foreign exchange contract rates.

(m) Distribution of retained earnings
Under the Corporation Law of Japan and the Company’s Articles of Incorporation, the distribution of retained earnings withrespect to a given fiscal year end is made by resolution of the shareholders at a general meeting held subsequent to the close of
the financial period. The distribution of retained earnings with respect to interim financial periods is made by resolution of theBoard of Directors. (Please refer to Note 18.)

ICOM INCORPORATED ANNUAL REPORT 201311

ICOM INCORPORATED AND SUBSIDIARIES

Notes to Consolidated Financial Statements
2. Summary of Significant Accounting Policies (continued)(Accounting Change)
Effective the year ended March 31, 2013, the Company and its domestic subsidiaries have changed their method of
accounting for depreciation of property, plant and equipment based on an amendment to the Corporation Tax Law of Japan. The
effect of this change on operating income and income before income taxes was immaterial for the year ended March 31, 2013.

(Standards Issued but Not Yet Effective)
Accounting Standards for Retirement Benefits
On May 17, 2012, the Accounting Standards Board of Japan (“ASBJ”) issued ASBJ Statement No. 26, “Accounting Standard
for Retirement Benefits” and ASBJ Guidance No. 25, “Guidance on Accounting Standard for Retirement Benefits,” which
replaced the Accounting Standard for Retirement Benefits that had been issued by the Business Accounting Council in 1998,
with an effective date of April 1, 2000, and the other related practical guidance, which were followed by partial amendmentsfrom time to time through 2009.
Major changes are as follows:(A) Treatment in the balance sheet – Under the current requirements, actuarial gains and losses and past service costs that are yet
to be recognized in profit or loss are not recognized in the balance sheet, and the difference between retirement benefit
obligations and plan assets (“deficit or surplus”), adjusted by such unrecognized amounts, is recognized as a liability or asset.
Under the revised accounting standard, actuarial gains and losses and past service costs that are yet to be recognized in profit
or loss shall be recognized within net assets (accumulated other comprehensive income), after adjusting for tax effects, and the
deficit or surplus shall be recognized as a liability (liability for retirement benefits) or asset (asset for retirement benefits).
(B) Treatment in the statement of income - The revised accounting standard would not change how to recognize actuarial gains
and losses and past service cost in profit or loss. Those amounts would be recognized in profit or loss over a certain period nolonger than the expected average remaining years of service of the employees. However, actuarial gains and losses and past
service costs that arose in the current period and yet to be recognized in profit or loss shall be included in other comprehensive
income and actuarial gains and losses and past service costs that were recognized in other comprehensive income in priorperiods and then recognized in profit or loss in the current period shall be treated as reclassification adjustments.
The accounting standard and the guidance are effective the end of fiscal years beginning on or after April 1, 2013.
The Company and its subsidiaries (collectively, the “Group”) is in the process of measuring the effects of applying the revised
accounting standards for the year ending March 31, 2014.

ICOM INCORPORATED ANNUAL REPORT 201312

ICOM INCORPORATED AND SUBSIDIARIES

Notes to Consolidated Financial Statements
3. Cash and Cash Equivalents
In the preparation of the consolidated statements of cash flows, the relationship between the items included in cash and cash
equivalents and the corresponding amounts reflected in the consolidated balance sheets at March 31, 2013 and 2012 is summarized asfollows:
Thousands of
U.S. dollars

Millions of yen

Cash and deposits
Marketable securities
SubtotalTime deposits with original maturities in excess of threemonthsMarketable securities with original maturities in excess of
three months
Cash and cash equivalents

¥

¥

2013
26,047–26,047¥

2012
27,543
199
27,742$

2013
276,978–
276,978(2,269)(1,851)(24,128)–
23,778(199)
25,692–
252,850¥$

4. Notes Receivable
The balance sheet date for the year ended March 31, 2013 fell on a bank holiday. Consequently, notes receivable, trade of ¥7
million ($74 thousand) with a due date on March 31, 2013 were included in the balance and settled on the next business day.

5. Financial Instruments(1) General informationi) Policy for financial instruments
In consideration of plans for capital investment, which is mainly centered on radio manufacturing and sales, the Groupobtains necessary financing through its own funds. The Group manages surplus funds through financial assets that have highlevels of liquidity. The Group uses derivatives for the purpose of reducing risk and does not enter into derivatives for
speculative or trading purposes.

ICOM INCORPORATED ANNUAL REPORT 201313

ICOM INCORPORATED AND SUBSIDIARIES

Notes to Consolidated Financial Statements
5. Financial Instruments (continued)(1) General information (continued)ii) Types of financial instruments and related risk
Notes and accounts receivable are exposed to credit risk in relation to customers. In addition, the Group is exposed toforeign currency exchange rate fluctuation risk arising from receivables denominated in foreign currencies.
Marketable securities and investments in securities are exposed to market risk. Those securities are composed of mainly
corporate bonds in other securities and the shares of common stock of other companies with which it has business
relationships. Fair values of those securities are periodically reviewed and reported to board of directors meetings.
Trade accounts payable have payment due dates within two months. The Group is exposed to foreign currency exchange
rate fluctuation risk arising from those denominated in foreign currencies.
Regarding derivatives, the Group enters into forward foreign exchange contracts to reduce the foreign currency exchange
rate fluctuation risk arising from cash and deposits denominated in foreign currencies. Further information regarding themethod of hedge accounting, hedging instruments and hedged items, hedging policy, and the assessment of the effectivenessof hedging activities can be found in Note 11.
iii) Risk management for financial instruments(a) Monitoring of credit risk (the risk that customers or counterparties may default)
In accordance with the internal policies for managing credit risk of the Group arising from receivables, the credit
department monitors credit worthiness of main customers periodically, and monitors due dates and outstanding balancesby customer. In addition, the Group is making efforts to identify and mitigate risks of bad debt from customers who havefinancial difficulties.
In accordance with the internal policies for security management, the Group only acquires corporate bonds or othersecurities with high credit ratings. Accordingly, the Group believes that the credit risk deriving from such debt
securities is insignificant.
The Group also believes that the credit risk of derivatives is insignificant as the Group enters into derivativetransactions only with financial institutions with high credit ratings.
(b) Monitoring of market risks (the risks arising from fluctuations in foreign exchange rates, interest rates and others)
For cash and deposits denominated in foreign currencies arising from trade receivables denominated in foreign
currencies, the Group identifies the foreign currency exchange risk by each currency and enters into forward foreignexchange contracts to hedge such risk.
For marketable securities and investments in securities, the Group periodically reviews the fair values of such financial
instruments and the financial position of the issuers. In addition, the Group continuously evaluates whether securities
should be maintained taking into account their fair values and the relationships with the issuers.
For derivative transactions, the accounting department of the Company enters into and manages transactions, and a
representative director, in advance, approves them within the limits reported at the Board of Directors meeting. Resultsof derivative transactions are reported at the monthly Board of Directors meetings. Subsidiaries do not enter into
derivative transactions.
(c) Monitoring of liquidity risk (the risk that the Group may not be able to meet its obligations on the scheduled due dates)
Based on reports from each division, the accounting department of the Company prepares and updates its cash flowplans on a timely basis and maintains liquidity of assets for payment to manage liquidity risk. Subsidiaries monitor
liquidity risk in the same manner.
iv) Supplementary explanation of the estimated fair value of financial instruments
The fair value of financial instruments is based on their quoted market price, if available. When there is no quoted market
price available, fair value is reasonably estimated. Since various assumptions and factors are reflected in estimating the fairvalue, different assumptions and factors could result in different fair values. In addition, the notional amounts ofderivatives in Note 11 are not necessarily indicative of the actual market risk involved in derivative transactions.

ICOM INCORPORATED ANNUAL REPORT 201314

ICOM INCORPORATED AND SUBSIDIARIES

Notes to Consolidated Financial Statements
5. Financial Instruments (continued)(2) Estimated fair value of financial instruments
The carrying value, fair value and unrealized gains (losses) of the financial instruments on the consolidated balance sheets as ofMarch 31, 2013 and 2012 are shown in the following table. The following table does not include financial instruments forwhich it is extremely difficult to determine the fair value. (Please refer to Noteⅱ below).
Millions of yen

2013
Carrying
value
Assets(1) Cash and deposits(2) Notes and accounts
receivable(3) Marketable securities andinvestments in securities
Total assets
Liabilities(1) Accounts payable - trade
Total liabilities
Derivative transactions (*)¥

26,047

2012

Fair value

Unrealized
gain (loss)

¥

¥

6,893

26,047
6,893–

Carrying
value
¥

–

27,543

Fair value

Unrealized
gain (loss)

¥

¥

4,805

27,543
4,805

–
–

¥

1,861
34,801¥

1,861
34,801

¥

–
–

¥

1,506
33,854¥

1,506
33,854

¥

–
–

¥
¥
¥

1,076
1,076
–

¥
¥
¥

1,076
1,076
–

¥
¥
¥

–
–
–

¥
¥
¥

1,386
1,386
–

¥
¥
¥

1,386
1,386
–

¥
¥
¥

–
–
–

Thousands of U.S. dollars

2013
Carrying
value
Assets(1) Cash and deposits(2) Notes and accounts
receivable(3) Marketable securities andinvestments in securities
Total assets
Liabilities(1) Accounts payable - trade
Total liabilities
Derivative transactions (*)$

276,978

Fair value

Unrealized
gain (loss)$$

73,299276,978
73,299––$19,789370,066$

19,789370,066

$

–
–

$
$
$

11,442
11,442–$$$

11,442
11,442
–

$
$
$

–
–
–

(*) The value of assets and liabilities arising from derivatives is shown at net value.

ICOM INCORPORATED ANNUAL REPORT 201315

ICOM INCORPORATED AND SUBSIDIARIES

Notes to Consolidated Financial Statements
5. Financial Instruments (continued)(2) Estimated fair value of financial instruments (continued)
Notes:i) Methods to determine the fair value of financial instruments and other matters related to marketable securities
and derivative transactions are as follows:
Assets(1) Cash and deposits, and (2) Notes and accounts receivable
Since these items are settled in a short period of time, their carrying value approximate the fair value.
(3) Marketable securities and investments in securities
The fair value of equity securities is based on quoted market prices. The fair value of debt securities is based on either
quoted market prices or the prices provided by the financial institutions making markets for these securities. For
information on securities classified by holding purpose, please refer to Note 6.
Liabilities(1) Accounts payable - trade
Since this item is settled in a short period of time, its carrying value approximates the fair value.
Derivative Transactions
Please refer to Note 11.

ii) Financial instruments for which it is extremely difficult to determine the fair value are as follows:
Thousands of
U.S. dollars

Millions of yen

Unlisted equity securities

¥

2013
105

¥

2012
74

$

2013
1,117

Since there is no market price for unlisted equity securities and it is difficult to determine the fair value, they are notincluded in above (3) marketable securities and investments in securities in the preceding table in “(2) Estimated fair valueof financial instruments.”

ICOM INCORPORATED ANNUAL REPORT 201316

ICOM INCORPORATED AND SUBSIDIARIES

Notes to Consolidated Financial Statements
5. Financial Instruments (continued)(3) Redemption schedule
The redemption schedule for financial instruments receivable and marketable securities and investments in securities withmaturity dates is summarized as follows:
Millions of yen

Due within
one year
Cash and deposits
Notes and accounts
receivable
Marketablesecurities andinvestments insecurities:
Other securities
with maturity
dates
Corporate bonds
Total

¥

26,0472013
Due after
Due after
one yearfive years
throughthrough ten
five years
years
¥
–
¥
–

6,893

¥

–
32,940

–

¥

600
600

900
900

2012
Due after
five years
through ten
years
¥
–

4,805

–

–

Due after ten
years

Due within
one year

¥

¥

–

¥

27,543Due after
one yearthroughfive years
¥
–

–
–

¥

100
100

¥

200
32,548

¥

100
100

¥

700
700

Due after ten
years
¥

–
–

200
200

¥

Thousands of U.S. dollars

276,978

Due after
one yearthroughfive years
$
–

2013
Due after
five years
through ten
years
$
–

73,299––Due within
one year
Cash and deposits
Notes and accounts
receivable
Marketablesecurities andinvestments insecurities:
Other securities
with maturity
dates
Corporate bonds
Total

$

$

–
350,277

$

6,380
6,380

$

9,570
9,570

Due after ten
years
$

–
–

$

1,063
1,063

ICOM INCORPORATED ANNUAL REPORT 201317

ICOM INCORPORATED AND SUBSIDIARIES

Notes to Consolidated Financial Statements
6. Marketable Securities and Investments in Securities
Marketable securities classified as other securities at March 31, 2013 and 2012 are summarized as follows:
Millions of yen

2013
Acquisition
cost

Unrealized
gain (loss)

32
1,413
1,445

¥

¥

214
202
416
1,861

319
203
522
¥ 1,933

Carrying
value
Securities whose carrying value
exceeds their acquisition cost:
Equity securities¥
Corporate bonds
Subtotal
Securities whose carrying value
does not exceed their acquisition cost:
Equity securities
Corporate bonds
Subtotal
Total
¥

11
1,400
1,411

Carrying
value

21
13
34

¥

¥

¥

194
400
594

137
803
940
¥ 1,534

20
1
21

¥

ICOM INCORPORATED ANNUAL REPORT 2013

18

¥

99
792
891
1,506

Unrealized
gain (loss)

(38)
(11)
(49)
(28)

¥

(105)
(1)
(106)
(72)

214
401
615

2012
Acquisition
cost

Thousands of U.S. dollars

Carrying
value
Securities whose carrying value
exceeds their acquisition cost:
Equity securities$
340
15,025
Corporate bonds
Subtotal
15,365
Securities whose carrying value
does not exceed their acquisition cost:
Equity securities
2,276
Corporate bonds
2,148
Subtotal
4,424
Total
$ 19,789

2013
Acquisition
cost

Unrealized
gain (loss)

$

$

117
14,887
15,004

3,392
2,159
5,551
$ 20,555

$

223
138
361

(1,116)(11)(1,127)(766)

Sales of other securities for the years ended March 31, 2013 and 2012 are summarized as follows:
Thousands of
U.S. dollars

Millions of yen

Sales
Aggregate gain
Aggregate loss

¥

2013
9
4
0

¥

2012
14
0
–

$

2013
96
43
0

ICOM INCORPORATED AND SUBSIDIARIES

Notes to Consolidated Financial Statements
7. Inventories
Inventories at March 31, 2013 and 2012 consisted of the following:Thousands of
U.S. dollars

Millions of yen

Merchandise and finished products
Work in process
Raw materials and supplies
Total

¥

¥

2013
3,303
81
2,454
5,838

2012
3,004
62
2,304
5,370

¥

¥

$

$

2013
35,124861
26,09562,0808. Accrued Retirement Benefits for Employees
The Company and its domestic subsidiaries have employees’ defined benefit pension plans, i.e., corporate pension plans andlump-sum payment plans.
The Company and its domestic subsidiaries pay additional retirement benefits to employees under certain circumstances.
The funded and accrued status of the employees’ defined benefit pension plans of the Company and its domestic subsidiaries andthe amounts recognized in the accompanying consolidated balance sheets at March 31, 2013 and 2012 are summarized as follows:
Thousands of
U.S. dollars

Millions of yen

Retirement benefit obligation at end of year
Plan assets at fair value at end of year
Unfunded retirement benefit obligation
Unrecognized net retirement benefit obligation attransition
Unrecognized actuarial loss
Unrecognized prior service costAccrued retirement benefits for employees

¥

¥

2013
(3,881)
2,934
(947)
39
36
(4)
(876)

¥

¥

2012
(3,691)
2,478(1,213)
59
420
(6)
(740)

$

$

2013
(41,270)
31,199(10,071)
415
383
(42)
(9,315)Certain domestic subsidiaries have applied simplified methods for calculating their retirement benefit obligation, which arepermitted under the accounting standard for employees’ retirement benefits.

ICOM INCORPORATED ANNUAL REPORT 2013

19

ICOM INCORPORATED AND SUBSIDIARIES

Notes to Consolidated Financial Statements
8. Accrued Retirement Benefits for Employees (continued)
The components of retirement benefit expenses for the years ended March 31, 2013 and 2012 are outlined as follows:
Thousands of
U.S. dollars

Millions of yen

Service cost
Interest cost
Expected return on plan assets
Amortization of prior service cost
Amortization of net retirement benefit obligation attransition
Amortization of actuarial loss
Retirement benefit expenses, net

¥

¥

2013
199
70
(49)
(2)
20
111
349

¥

¥

2012
194
68
(46)
(2)
20
146
380

$

$

2013
2,116
744
(521)
(21)
213
1,180
3,711

Retirement benefit expenses of certain domestic subsidiaries, which have been calculated by simplified methods, are included inservice cost in the above table.
The assumptions used in accounting for the above plans were a discount rate of 2.0% and an expected rate of return on plan assetsof 2.0% for the years ended March 31, 2013 and 2012.

ICOM INCORPORATED ANNUAL REPORT 201320

ICOM INCORPORATED AND SUBSIDIARIES

Notes to Consolidated Financial Statements
9. Income Taxes
Income taxes applicable to the Company and its domestic subsidiaries comprise corporation, enterprise and inhabitants’ taxes which,in the aggregate, resulted in a statutory tax rate of approximately 38.0% for the year ended March 31, 2013 and 40.6% for the year
ended March 31, 2012. The overseas subsidiaries are subject to income taxes of the respective countries in which they operate.
Reconciliations of the statutory tax rate and effective tax rates for the years ended March 31, 2013 and 2012 as a percentage ofincome before income taxes are as follows:
2013
38.0%
0.3
0.7
(7.8)
–
(0.5)
–
(0.1)
30.6%

Statutory tax rate
Permanently non-deductible expenses
Per capita portion of inhabitants’ taxes
Tax credit for research and development costs
Unrealized loss on inventories
Differences in tax rates applicable to overseas subsidiaries
Effect of changes in corporate tax rates
Other
Effective tax rates

2012
40.6%
0.8
1.4
(5.0)
(13.2)
(2.4)
5.4
(0.1)
27.5%

The significant components of deferred tax assets and liabilities at March 31, 2013 and 2012 are summarized as follows:
Thousands of
U.S. dollars

Millions of yen

2013
Deferred tax assets:
Accrued retirement benefits for employees
Unrealized gain on inventories
Long-term accounts payable-otherAccrued bonuses
Accrued enterprise tax
Deferred revenue
Allowance for doubtful accounts
Accrued legal welfare expense on bonuses
Other
Total deferred tax assets
Deferred tax liabilities:
Depreciation
Accrued interest
Reserve for special depreciation
Other
Total deferred tax liabilities
Net deferred tax assets

¥

¥

310
282
182
165
85
49
42
23
125
1,263

(25)
(10)
(8)
(63)
(106)
1,157

2012
¥

¥

262
202
182
148
38
32
24
21
123
1,032

(37)
(12)
(11)
(36)
(96)
936

2013
$

$

3,296
2,999
1,935
1,755
904
521
447
245
1,329
13,431

(266)
(107)
(85)
(670)
(1,128)12,303ICOM INCORPORATED ANNUAL REPORT 201321

ICOM INCORPORATED AND SUBSIDIARIES

Notes to Consolidated Financial Statements
10. Shareholders’ Equity
The Corporation Law of Japan (the “Law”) provides that an amount equal to 10% of the amount to be disbursed as distributions ofcapital surplus (other than the capital reserve) and retained earnings (other than the legal reserve) be transferred to the capital reserveand the legal reserve, respectively, until the sum of the capital reserve and the legal reserve equals 25% of the capital stock account.
Such distributions can be made at any time by resolution of the shareholders, or by the Board of Directors if certain conditions aremet.
The Company’s legal reserve included in retained earnings at March 31, 2013 and 2012 amounted to ¥293 million ($3,116
thousand).
In addition, upon the issuance and sale of new shares of capital stock, the entire amount of the proceeds is required to be accounted
for as capital stock, although a company may, by resolution of the Board of Directors, account for an amount not exceeding one-halfof the proceeds of the sale of new shares as additional paid-in capital included in capital surplus.
Movements in treasury stock for the years ended March 31, 2013 and 2012 are summarized as follows:

Treasury stock

Treasury stock

April 1, 2012
31,470

Number of shares
2013
Increase
Decrease–
113

March 31, 2013
31,583

April 1, 2011
31,307

Number of shares
2012
Increase
Decrease
50
213

March 31, 2012
31,470ICOM INCORPORATED ANNUAL REPORT 201322

ICOM INCORPORATED AND SUBSIDIARIES

Notes to Consolidated Financial Statements
11. Derivatives and Hedging Activities
The estimated fair value of the derivatives positions outstanding which qualify for deferral hedge accounting at March 31, 2013 issummarized as follows:
Currency-related transactions
Millions of yen

Thousands of U.S. dollars

2013

Method ofhedge
accounting
Allocation
methodforforwardforeignexchange
contracts

Transaction
Forwardforeignexchange
contracts
Selling:
USD

Major
hedged item

Contract
value(notional
principal
amount)Contract value(notional
principal
amount)over one year

Deposits
denominatedin foreign
currencies

¥ 945
¥ 945

Total

2013

Estimated
fair value

Contract
value(notional
principal
amount)Contract value(notional
principal
amount)over one year

¥–

¥ 940

$10,049¥–¥ 940$10,049$－$－

Estimated
fair value$9,996$9,996

The fair value of forward foreign exchange contracts are calculated using the prices offered by the transacting financial institutions
and others.
There were no derivatives positions outstanding which qualify for deferral hedge accounting at March 31, 2012.

12. Research and Development Costs
Research and development costs included in selling, general and administrative expenses for the years ended March 31, 2013 and2012 were as follows:
Thousands of
U.S. dollars

Millions of yen

Research and development costs

¥

2013
2,977

¥

2012
2,667

$

2013
31,657ICOM INCORPORATED ANNUAL REPORT 201323

ICOM INCORPORATED AND SUBSIDIARIES

Notes to Consolidated Financial Statements
13. Other Comprehensive Income (Loss)
Reclassification adjustments and tax effects of other comprehensive income (loss) for the years ended March 31, 2013 and 2012were as follows:
Thousands of
U.S. dollars

Millions of yen

2013
Unrealized holding loss on securities:
Loss arising during the year
Reclassification adjustments
Before tax effects
Tax effects
Unrealized holding loss on securities
Translation adjustments:
Amount arising during the year
Other comprehensive income (loss)

¥

¥

(39)
(4)
(43)
(16)
(27)
845
818

2012
¥

¥

(52)
(0)
(52)
(19)
(33)
(71)
(104)

2013
$

(415)
(42)
(457)
(170)
(287)
8,986
8,699

$

14. Related Party Transactions
There were no related party transactions to be disclosed for the years ended March 31, 2013 and 2012.

15. Amounts per Share
Amounts per share at March 31, 2013 and 2012 and for the years then ended were as follows:Yen

Net assets
Net income:
Basic
DilutedCash dividends¥

2013
3,313.79
150.37–30.00¥

U.S. dollars

2012
3,128.22
73.94
–
20.00

$

2013
35.24
1.60
–
0.32

Net assets per share is computed based on the number of shares of common stock outstanding at the year end.
Basic net income per share is computed based on the weighted-average number of shares of common stock outstanding during eachyear. Diluted net income per share for the years ended March 31, 2013 and 2012 was not presented since no outstanding dilutive
securities existed at March 31, 2013 and 2012.
Cash dividends per share represent the cash dividends declared as applicable to the respective fiscal years.

ICOM INCORPORATED ANNUAL REPORT 201324

ICOM INCORPORATED AND SUBSIDIARIES

Notes to Consolidated Financial Statements
16. Segment Informationi) Outline of segment information
The Company’s reporting segments are divisions of the Company for which separate financial information is available, andwhose operating results are reviewed regularly by the board of directors meeting of the Company (the highest management
decision making body) in order to allocate management resources and assess performance of operations.
The Company and its subsidiaries are primarily engaged in the manufacture and sale of telecommunications equipment.
The subsidiaries are independent business units and formulate comprehensive strategies for products and operate businessgeographically.
Therefore, the group consists of four segments based on sales by region. The four segments are “Japan,” “North
America,” which primarily includes the United States and Canada; “Europe,” which primarily includes Germany and Spain;and “Asia and Oceania,” which primarily includes Australia and Taiwan.
ii) Calculation methods used for sales, income or loss, assets and other items on each reporting segment
The accounting policies of the segments are substantially the same as those described in the significant accounting policies
in Note 2. Segment performance is evaluated based on operating income or loss. Intersegment sales are recorded at thesame prices applied in transactions with third parties.
(Accounting Change)
As described in Note 2, effective the year ended March 31, 2013, the Company and its domestic subsidiaries have changed
their method of accounting for depreciation of property, plant and equipment based on an amendment to the Corporation Tax
Law of Japan. The effect of this change on segment performance was immaterial for the year ended March 31, 2013.
iii) Information as to sales, income or loss, assets and other items on each reporting segment
Information by reporting segment for the years ended March 31, 2013 and 2012 were as follows:
Millions of yen

Japan
I. Net sales and operating income(loss)
Sales to third parties
Intersegment sales
Net sales
Operating expenses
Operating income (loss)
II. Total assets
III. Other items
Depreciation and amortization
Investments in affiliatedcompany
Increase in tangible / intangible
fixed assets

North
America¥ 16,032
6,502
22,534
20,571¥ 1,963¥¥ 47,067
¥

902

2013
Asia &
Oceania

Europe

¥

¥

7,687
10
7,697
7,358
339

¥

¥

753
0
753
804
(51)

¥

1,380
337
1,717
1,554
163

¥

6,409

¥

734

¥

3,231

¥

58

¥

3

¥

10

Subtotal

Eliminations

Consolidated¥ 25,852
6,849
32,70130,287¥ 2,414¥¥¥–(6,849)(6,849)(6,613)(236)¥

25,852–25,852
23,6742,178¥ 57,441¥(2,575)¥54,866

¥

¥

–

¥

973

973

94

–

–

–

94

–

94

865

862

8

4

1,739

–

1,739

ICOM INCORPORATED ANNUAL REPORT 201325

ICOM INCORPORATED AND SUBSIDIARIES

Notes to Consolidated Financial Statements
16. Segment Information (continued)iii) Information as to sales, profit or loss, assets and other items on each reporting segment (continued)
Millions of yen

North
AmericaJapan
I. Net sales and operating income(loss)
Sales to third parties
Intersegment sales
Net sales
Operating expenses
Operating income (loss)
II. Total assets
III. Other Items
Depreciation and amortization
Investments in affiliatedcompany
Increase in tangible / intangible
fixed assets

¥

¥

¥

13,791
6,835
20,626
19,778848¥

45,136¥2012
Asia &
Oceania

Europe

¥

¥

7,613
5
7,618
7,355
263

¥

Subtotal

Eliminations

Consolidated

¥

¥

¥

–
(7,121)(7,121)(7,169)48¥

23,583–
23,583
22,276
1,307

¥

¥

874
1
875
891
(16)

¥

¥

1,305
280
1,585
1,421
164

¥

23,583
7,121
30,70429,445
1,259

5,043

¥

730

¥

2,741

¥

53,650¥(2,437)¥51,213

970 ¥

43

¥

3

¥

9

¥

1,025

¥

–

¥

1,025

64

–

–

–

64

–

64

808

34

5

12

859

–

859

Thousands of U.S. dollars

I. Net sales and operating
income (loss)
Sales to third parties
Intersegment sales
Net sales
Operating expenses
Operating income (loss)
II. Total assets
III. Other items
Depreciation and amortization
Investments in affiliatedcompany
Increase in tangible /intangible fixed assets

Japan

North
America$ 170,480
69,141
239,621
218,747$ 20,874$ 81,742
106
81,84878,243$ 3,605$$ 500,500$ 68,152

$

$

9,592

617

2013
Asia &
Oceania

Europe

$

$

8,007
0
8,007
8,550
(543)

$

7,805

$

32

Subtotal

Eliminations

Consolidated

$

$

$

$

14,675
3,584
18,25916,525
1,734$

274,904
72,831
347,735
322,065
25,670$–(72,831)(72,831)(70,321)(2,510)$274,904–
274,904
251,744
23,160$34,358$610,815$(27,382)$

583,433$

106$

10,347$–$

10,347

1,000

–

–

–

1,000

–

1,000

9,198

9,166

85

43

18,492–

18,492ICOM INCORPORATED ANNUAL REPORT 2013

26

ICOM INCORPORATED AND SUBSIDIARIES

Notes to Consolidated Financial Statements
16. Segment Information (continued)iv) Geographical information(a) Sales
Sales categorized by country and region based on locations of customers by the Group for the years ended March 31,
2013 and 2012 were summarized as follows:
Millions of yen

Japan
USA
North America (except USA)
EuropeAsia & Oceania
Other
Total

¥

¥

2013
10,211
5,720
1,349
2,918
4,862
792
25,852¥¥Thousands of U.S. dollars

2012
6,941
6,017
1,037
3,364
5,439
785
23,583$$

2013
108,582
60,825
14,34531,02951,701
8,422
274,904(b) Property, plant and equipment
Property, plant and equipment categorized by country and region as of March 31, 2013 and 2012 were summarized asfollows:
Millions of yen

Japan
North America
EuropeAsia & Oceania
Total

¥

¥

2013
6,531
901
14
218
7,664

¥

¥

Thousands of U.S. dollars

2012
6,506
312
9
198
7,025

$

$

2013
69,449
9,581
149
2,318
81,497(c) Information by major customer
Information by major customer for the years ended March 31, 2013 and 2012 were as follows:
Net sales
Thousands of
U.S. dollars

Millions of yen
2013

Customer name
NEC Engineering, Ltd.

¥

3,033

2013

2012
¥

2,967

Related segment
name$32,252Japan

ICOM INCORPORATED ANNUAL REPORT 201327

ICOM INCORPORATED AND SUBSIDIARIES

Notes to Consolidated Financial Statements
17. Significant Subsidiaries and Affiliates
The Company’s subsidiaries and significant affiliates as of March 31, 2013 are presented as follows:

Name
Icom America, Inc.
ICOM CANADA HOLDINGS INC.

Ownership
Interest
100.0%
100.0%Country of Incorporation
United States of America
CanadaIcom (Europe) GmbH
Icom (Australia) Pty., Ltd.
Icom Spain, S.L.
Asia Icom Inc.
Wakayama Icom Inc.
Icom Information Products Inc.

100.0%
100.0%
100.0%
100.0%
100.0%
100.0%

Germany
Australia
Spain
TaiwanJapan
Japan

Icom America License Holding LLC

100.0%

United States of America

ICOM DO BRASIL
RADIOCOMUNICACAO LTDA.

100.0%

BrazilComforce Inc.

49.0%

Japan

Position Co., Ltd.

33.3%

Japan

Subsidiaries/Affiliate
Consolidated subsidiary
Consolidated
sub-subsidiary
Consolidated subsidiary
Consolidated subsidiary
Consolidated subsidiary
Consolidated subsidiary
Consolidated subsidiary
Consolidated subsidiary
Consolidated
sub-subsidiary
Consolidated
sub-subsidiary
Affiliate accounted for by
the equity method
Affiliate accounted for by
the equity method

18. Subsequent Event
The following distribution of retained earnings of the Company, which has not been reflected in the accompanying consolidated
financial statements for the year ended March 31, 2013, was approved at the Company’s general shareholders’ meeting held on June25, 2013:
Thousands of
U.S. dollars

Millions of yen

Cash dividends (¥20 = U.S.$0.21 per share)

¥

2013
296

$

2013
3,148

ICOM INCORPORATED ANNUAL REPORT 201328

BOARD OF DIRECTORSAND AUDITORSTokuzo Inoue
Chairman and Representative Director

Tsutomu Fukui
President and Representative Director

Nobuo Ogawa
Executive Managing Director

Hiroshi Shimizu
Director

Taichiro Itoyama
Outside Director

Kenji Oono
AuditorHiroshi Umemoto
Outside Auditor

Katsunori Sugimoto
Outside Auditor

EXECUTIVE OFFICERS
Masataka Harima
Hiroshi Nakaoka
Takashi Tsujiuchi
Shinichi Matsuo
Shigeyoshi Tanabe
Kenichi Kojiyama
Yoshiteru Yano

DIRECTORY
Head Office:1-1-32, Kamiminami, Hirano-ku,
Osaka, 547-0003, JAPAN
Phone: 81-6-6793-5301
Fax: 81-6-6793-5305
URL http://www.icom.co.jp/

Subsidiaries:
Icom America, Inc.
2380 116th Avenue N.E., Bellevue,
WA 98004, U.S.A.
Phone: 1-425-454-8155
Fax: 1-425-454-1509
URL http://www.icomamerica.com/
Icom Canada, Inc.
#150-6165
Hwy, 17
Delta,BC V4K 5B8Phone: 1-604-952-4266
Fax: 1-604-952-0090
URL http://www.icomcanada.com/

Icom (Europe) GmbHAuf der Krautweide 24, 65812
Bad Soden am Taunus, GERMANY
Phone: 49-6196-76685-0
Fax: 49-6196-76685-50
URL http://www.icomeurope.com/
Icom (Australia) Pty., Ltd.
A.B.N. 88 006 092 575
Unit 1/103 Garden Road,
Clayton Victoria 3168, AUSTRALIA
Phone: 61-3-9549-7500
Fax: 61-3-9549-7505
URL http://www.icom.net.au/
Icom Spain, S.L.
“Edificio Can Castanyer” Ctra. Gracia
a Manresa km. 14, 750 08190
Sant Cugat Del Valles
Barcelona, SPAIN
Phone: 34-93-590-2670
Fax: 34-93-589-0446
URL http://www.icomspain.com/
Asia Icom Inc.
6F, No.68, Section 1, Cheng-Teh,
Road Taipei, TAIWAN R.O.C.
Phone: 886-2-2559-1899
Fax: 886-2-2559-1874
Wakayama Icom Inc.
1866-1, Oaza Tokuda, Aritagawa-chou
Arita-gun, Wakayama, 643-0801
JAPAN
Phone: 81-737-52-6600
Fax: 81-737-52-6603
Icom Information Products Inc.
3-8-15, Nipponbashi, Naniwa-ku,
Osaka, 556-0005, JAPAN
Phone: 81-6-6635-5701
Fax: 81-6-6635-5707
URL http://www.icom-jk.co.jp/
Icom America License Holding LLC
2380 116th Avenue N.E., Bellevue,
WA 98004, U.S.A.
Phone: 1-425-454-8155
Fax: 1-425-454-1509
Icom Do Brasil Radiocomunicacao
LTDA.
Rua Pernambuco, 353 - Sala 901 Belo
Horizonte, M.G. 30130-150 Brazil
Phone: 55-31-3582-8847

Affiliates:
Comforce Inc.
Sumitomofudousanhamatyou Bld.8F,
3-42-3, Nihombashihamacho, Chuo-ku,
Tokyo, 103-0007, Japan
Phone: 81-3-3662-1167
Fax: 81-3-3662-1168
URL http://www.comforce.co.jp/
Position Co.Ltd.
3-1-7 Mitatouhou Bld.5F, Mita ,Minato-ku, Tokyo, 108-0073, Japan
Phone: 81-3-5439-6011
Fax: 81-3-5439-6012
URL http://www.posit.co.jp/index.html

TRANSFER AGENT
Mitsubishi UFJ Trust and Banking
Corporation
Tokyo Office:4-5, Marunouchi 1-chome,
Chiyoda-ku, Tokyo 100-8212, JAPAN
Osaka Office:6-3, Fushimimachi 3-chome
Chuo-ku, Osaka, 541-0044, JAPANINVESTOR RELATIONS
Keiichi Uehata
General Manager of Business
Management Department
1-1-32, Kamiminami, Hirano-ku,
Osaka, 547-0003, JAPAN
Phone: 81-6-6793-5301
Fax: 81-6-6793-5305

CORPORATE FACTS(As of March 31, 2013)
Established: July 1964
Employees: 613
Paid-in capital: ¥7,081 million
Authorized shares: 34,000,000
Issued and outstanding shares:
14,850,000
Shareholders: 5,952
Stock listing: Tokyo Stock Exchange
and Osaka Securities Exchange(As of March 31, 2013)

Major shareholders
State Street Bank and Trust Company
Tokuzo Inoue
Gigapalace Inc.
The Icom Foundation
JPMorgan Chase & Co.
Japan Trustee Service Bank, Ltd.
JVC KENWOOD Corporation
Meiji Yasuda Life Insurance Company
The Master Trust Bank of Japan, Ltd.
Bank of Tokyo-Mitsubishi UFJ, Ltd.

Thousands of shares
1,906
1,868
1,472
1,000
808
588
445
326
297
243