YUHO REPORT
AnnualFiscal Year Ended

March 31, 2005

TradedTSE1Stock Code6419

MARS ENGINEERING CORPORATIONYUHOREPORTMars Engineering Corporation

Fiscal Year Ended

March 31, 2005

TradedTSE1Stock Code

6419

MARS

ENGINEERING

CORP ORATI ON

This report is based on the Company’s Japanese-language annual filing with the Financial Services Agency andsupplemented with materials that facilitate comparison with the Company’s peers. The materials from the annual filingwith the Financial Services Agency have been edited and reorganized in a format more familiar to the international
investment community. All information contained in this report has been obtained from sources believed to be reliable,
but the accuracy of the data and the translation and the completeness and timeliness of the information are not warrantedby the Company, Pacific Associates, or Asia Securities Printing. None of the above parties shall be responsible for any
error or omission or for results obtained from the use of this information.

Table of Contents
COMPANY PROFILE............................................................................................................3
Financial highlights............................................................................................................................................3
Common size statements..................................................................................................................................4

BUSINESS OVERVIEW ........................................................................................................5
Description of business .....................................................................................................................................5Group companies..............................................................................................................................................5
History ...............................................................................................................................................................6
Risk factors .......................................................................................................................................................7
Research and development ..............................................................................................................................7
Important agreements with third parties............................................................................................................9
Analysis of financial condition and results of operations ..................................................................................9
Corporate governance ....................................................................................................................................11
Directors ..........................................................................................................................................................14
Employees ......................................................................................................................................................14
Union ...............................................................................................................................................................15
Stock option plan.............................................................................................................................................15

CASH FLOWS ....................................................................................................................16
Consolidated statement of cash flows ............................................................................................................16
Capital expenditures .......................................................................................................................................17
Dividend policy ................................................................................................................................................18

OPERATIONS .....................................................................................................................19
Consolidated statement of income..................................................................................................................19
Consolidated statement of retained earnings .................................................................................................20
Results of operations ......................................................................................................................................21
Issues requiring action ....................................................................................................................................24
Production and sales.......................................................................................................................................25
Leases.............................................................................................................................................................26

CAPITAL STRUCTURE ......................................................................................................28
Consolidated balance sheet............................................................................................................................28
Market value of securities ...............................................................................................................................30
Derivatives ......................................................................................................................................................31
Facilities ..........................................................................................................................................................32
Borrowings ......................................................................................................................................................33
Retirement benefits .........................................................................................................................................33
Deferred taxes.................................................................................................................................................34

NONCONSOLIDATED FINANCIAL STATEMENTS...........................................................35
Nonconsolidated statement of income............................................................................................................35
Nonconsolidated appropriation of retained earnings ......................................................................................37
Cost of goods sold ..........................................................................................................................................37
Nonconsolidated balance sheet......................................................................................................................38
Trade credits ...................................................................................................................................................41
Securities ........................................................................................................................................................42
Tangible fixed assets ......................................................................................................................................43
Reserves .........................................................................................................................................................43

ACCOUNTING POLICIES...................................................................................................44
SHARE-RELATED INFORMATION....................................................................................46
YUHOREPORT is a trademark of Pacific Associates and Asia Securities Printing.
The translation is copyrighted by Pacific Associates.

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Company Profile
Financial highlights
Years ended March 31;
Thousands of yen

2005

Change2005/2001

Net sales

19,774,357 21,404,851 24,959,669 30,723,810 35,208,425

178%

Ordinary profit

4,593,015

5,958,626

5,521,514

8,263,972 10,587,915

231%

Net income (loss)

1,810,623

3,030,640(714,837)

4,240,475

6,063,611

335%

Shareholders' equity

23,752,627 26,446,783 25,030,579 28,987,920 34,108,043

144%

Total assets

35,498,374 39,879,762

140%

2001

2002

2003

2004

Consolidated

38,699,119 45,280,360 49,668,130

Shareholders' equity per share (Yen)2,090.91

2,328.08

2,197.95

2,543.34

1,496.61

72%

Net income (loss) per share (Yen)

159.39266.78(68.38)364.85262.25165%

Net income per share, fully diluted (Yen)

-

-

-

-

-

-

Net cash provided by (used in) operating
activities
Net cash provided by (used in) investing
activities
Net cash provided by (used in) financing
activities

4,793,955

4,158,507

1,853,845

8,948,394

6,394,301

133%

Cash and cash equivalents, end of term
Employees(1,011,079) (1,286,444) (1,030,841)(823,020) (1,082,945)(2,195,483) (2,043,303)

1,343,337(873,677) (1,226,356)

5,688,148

6,513,699

8,680,028 15,931,724 19,787,424

448

483

510

520

543

348%
121%

The Company conducted a 2-for-1 stock split with a recording date of September 17, 2004. Calculations of shareholders' equity per shareand net income (loss) per share for the fiscal year ended March 2005 assume that the split occurred at the beginning of the year.

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Common size statements
Years ended March 31; Percent

2003

Consolidated
2004
2005

2003

Parent2004

2005

Balance sheet
Assets

100.0

100.0

100.0

100.0

100.0

100.0

Current assets

68.5

71.1

74.5

65.9

68.7

73.3

Tangible fixed assets

26.8

23.2

20.8

20.1

16.5

14.8

Intangible fixed assets

0.3

0.2

0.3

0.2

0.2

0.5

Investments and other assets

4.4

5.5

4.4

13.8

14.6

11.4

Total fixed assets

31.5

28.9

25.5

34.1

31.3

26.7

Liabilities and shareholders' equity

100.0

100.0

100.0

100.0

100.0

100.0

Current liabilities

26.3

27.8

24.9

11.3

16.6

15.6

Long-term liabilities

8.5

7.4

5.4

1.9

2.3

1.5

Total liabilities

34.8

35.2

30.3

13.2

18.9

17.1

Minority interests

0.5

0.8

1.0

Common stock

20.5

17.5

16.0

26.9

22.6

20.6

Capital reserves

21.6

18.5

16.9

28.4

23.9

21.7

Retained earnings

22.9

27.5

35.3

31.9

34.0

39.9

Unrealized gains or losses on other securities

(0.3)

0.5

0.5

(0.4)

0.6

0.7

Treasury stock

(0.0)

(0.0)

(0.0)

(0.0)

(0.0)

(0.0)

Total shareholders' equity

64.7

64.0

68.7

86.8

81.1

82.9

Net sales

100.0

100.0

100.0

100.0

100.0

100.0

Cost of sales

54.8

53.7

52.2

54.3

56.2

54.1

Gross profit

45.2

46.3

47.8

45.7

43.8

45.9

Selling, general and administrative expenses

23.2

19.7

18.0

22.1

20.5

19.4

Operating income

22.0

26.6

29.8

23.6

23.3

26.5

Nonoperating income

0.3

0.4

0.3

0.5

0.5

0.5

Nonoperating expenses

0.2

0.1

0.0

0.2

0.0

0.0

Ordinary profit

22.1

26.9

30.1

23.9

23.8

27.0

Extraordinary income

-

0.0

-

-

0.0

0.0

Extraordinary losses

24.2

2.4

0.6

29.4

2.9

1.0

Income (loss) before taxes and other adjustments

(2.1)

24.5

29.5

(5.5)

20.9

26.0

0.5

10.2

11.7

(2.1)

8.9

10.6

Minority interest in income of consolidated companies

0.3

0.5

0.6

Net income (loss)

(2.9)

13.8

17.2

(3.4)

12.0

15.4

Statement of income

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Business Overview
Description of business
The Mars Engineering Group consists of the Company (Mars Engineering
Corporation) and five subsidiaries (four consolidated subsidiaries and one
nonconsolidated subsidiary). Its primary business is the manufacture and sale ofpachinko-related electronic products.
The Group’s businesses and the relationship of the Company and its subsidiaries tothese businesses are outlined below.
(1) Pachinko business
The Company, Mars Corporation, Mars Techno-Science Corporation and WINTEC
Co., Ltd.
Because it did not meet the test of significance, Mars Line-Tech Corporation was eliminatedfrom the consolidated accounts in the year ended March 31, 2005.

(2) Other business
Hotel Sunroute Hakata, Inc.

Group companies
Name

Operations

Common stock,
Millions of yen

Percent
ownership(Consolidated subsidiaries)
Mars Corporation

Pachinko business

1,000

100

Mars Techno-Science Corporation

Pachinko business

250

87

WINTEC Co., Ltd.

Pachinko business

107

80

Hotel Sunroute Hakata, Inc.

Other business

10

100

Manufacture oftable-top auto
dispensers

10

100

(Nonconsolidated subsidiaries)
Mars Line-Tech Corporation

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History
Year

Month

Event

1974

September

1975

DecemberMars Engineering Corporation is established in Shinjuku-ku, Tokyo, to design,
trial-manufacture, manufacture and sell electronic devices.
Enters into an exclusive distributorship agreement with Casio Computer Co., Ltd. to sell
Casio business systems.

1980

AugustDevelops and begins selling a prize control system for amusement centers.

1981

OctoberEnters into a distributorship agreement with NEC Corp. to sell office computers.

1985
1987

February
October

1989

OctoberDevelops and begins selling counting machines.
Concludes an agreement with Nippon Signal Co., Ltd. related to the development,
manufacture and sale of small magnetic-card readers and writers; develops and begins
selling a magnetic card-based prize control system.
Opens Higashi Fuji Plant in Gotemba, Shizuoka Pref.

1990
1992

October
March

1993

March

1994

November
July

1995

October

Registers shares for over-the-counter trading with Japan Securities Dealers Association.
Develops and begins selling computers for pachinko parlor management (parlor computer
systems).
Opens Technology and Distribution Center in Gotemba, Shizuoka Pref.

1996

July

Obtains ISO 9001 certification for meeting quality control standards.

AugustDevelops and begins selling “personal systems.”

September

Lists shares on the Second Section of the Tokyo Stock Exchange.

November

AM Planning Corp., which was established to operate pachinko parlors as antenna outlets for
the Company, becomes an affiliated company.
Completes construction of a new headquarters building and moves its corporate
headquarters to the new site; establishes Mars Corporation (now a consolidated subsidiary)
to engage in real estate management and general leasing.
Opens Technology Center in Susono, Shizuoka Pref.
Acquires Asama Sangyo Inc., a leading developer and builder of pachinko ball replenishment
systems; incorporates this company into the Group as an affiliate (in Sept. 1998, changes its
trade name to ASAMA Engineering Corp.).
Develops and begins selling a reusable pachinko cycle card (PCC) system.
Establishes Hotel Sunroute Hakata Inc. (now a consolidated subsidiary) to develop andoperate a business hotel; establishes KARD Information System Inc. to provide card
issuance and data management services for third parties.
Completes construction of Hotel Sunroute Hakata.

December

1997

April
October

1998

July
October

1999

April

2000

AugustJuly

Develops and begins selling auto-dispenser systems; expands Higashi Fuji Plant.
Develops and begins selling a prize control system with membership management
capabilities.
Opens Technical Center in Mishima, Shizuoka Pref.

2001

September

Launches K1 Cycle Card system as part of the prepaid card business.
Acquires WINTEC Co., Ltd., a leading developer of peripheral devices for pachinko parlor
operations; incorporates this company (now a consolidated subsidiary) into the Group as anaffiliate.
Acquires RFID business (manufacture of IC cards and radio identification tags) from Toshiba
Chemical Corp.; establishes M&T Card Technology Corp. to sell RFID products.
Discontinues operations of AM Planning Corp. after concluding that it had achieved its
objectives.
Lists shares on the First Section of the Tokyo Stock Exchange.

2002

January

Liquidates AM Planning Corp.

March
April

KARD Information System Inc. absorbs operations of M&T Card Technology Corp.
KARD Information System Inc. changes its trade name to Mars Techno-Science Corp. (nowa consolidated subsidiary); ASAMA Engineering Corp. changes its trade name to Mars
Line-Tech Corp. (now a consolidated subsidiary).

October

Expands Higashi Fuji Plant.

September
December

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Risk factors(1) The Company is subject to certain indirect legal restrictions• On its ball-dispensing devices, installed between game consoles, which areconsidered to be a part of a pachinko machine• Specifically, ball-dispensing devices are subject to “type testing” under
National Public Safety Commission Regulation No. 4.
(2) Testing can have a significant impact on the manufacture and sale of newball-dispensing devices due to• The need to pass type testing overseen by the Security Electronics andCommunication Technology Association• The need to pass type testing overseen by prefectural public safetycommissions• The fact that the Company’s customers (pachinko parlors) are subject torestrictions established under the Law Regulating Adult Entertainment
Businesses

Research and development
The Mars Engineering Group has shifted the focus of its new product development tobasic and applied technologies in the area of radio frequency identification. It has
successfully commercialized a number of products based on RF technology.
The Group spent a total of 635 million yen on research and development during theyear ended March 2005.
The Group’s R&D activities during the year can be summarized as follows:(1) Organization: R&D takes place principally at the Susono Technical Center and
R&D Center, where work is conducted on hardware and software development
and on mechanical design.

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CORP ORATI ON(2) Major results of R&D—pachinko business• A series of new IC card-operated token-issuing machines for installation
between game consoles: the SL-740D, SL-745D, SL-740V, SL-745V,
SL-840R and SL-845R• MX-140K1-VI card unit for IC-card machines• MX-140K2-VI IC-card ball dispenser for installation between game consoles• MX-140K1-VII card unit for IC card machines• MX-140K2-VII IC card ball dispenser for installation between game consoles• e9600 1.5mm adapted stationary prize-redemption machine• e9600 1mm adapted stationary prize-redemption machine• e9600 TUC exchange booth adapted stationary prize-redemption machine• MX-575 IC card counting machine with personal identification capability• MX-575M magnetic card counting machine with personal identification
capability• RX-585 IC card coin-counting machine• M-7 parlor computer system• PC-150 prize reader adapted to IC cards• ICU-210 IC card reader adapted to USB ports• ICU-215 IC card reader adapted to USB ports• RB-70 bill reader adapted to Japan’s newly issued banknotes• FB-33 bill reader adapted to Japan’s newly issued banknotes• GBS-20 bill reader adapted to Japan’s newly issued banknotes
The hotel business has no R&D program.

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Important agreements with third parties(1) Technology development agreement
Name of licenser

Nature of agreement

Period of agreement

Nippon Signal Co., Ltd.

Joint development and manufacture ofsmall magnetic-card readers and writers

Three years, beginning January 9, 1996
(renewed automatically on an annual basis
thereafter)(2) Marketing agreements
Name of licenser

Nature of agreement

Period of agreement

Casio Computer Co., Ltd.

Exclusive distributorship agreement related
to business machines and personal
computers
Distributorship agreement related to officeprocessors

One year, beginning March 21, 1982 (renewed
automatically on an annual basis thereafter)

NEC Corp.

Exclusive rights to sell jointly-developed
magnetic-card readers and writers; joint
development and manufacture

Fifteen months, beginning January 1, 1989
(renewed automatically on an annual basis
thereafter)Three years, beginning January 9, 1996
(renewed automatically on an annual basis
thereafter)

Name of licenser

Nature of agreement

Period of agreement

Sunroute Co., Ltd.

Sunroute Co., Ltd. agrees to allow the
Twenty years, beginning June 1, 1999
Company to use the “Hotel Sunroute xxx”
(renewed automatically every five years
name and to conduct business using its
thereafter)
trademarks, services and other hotelmanagement know-how; the Company willcontinue to operate its hotels in accordancewith guidance and advice provided bySunroute, with the aim of achieving
prosperity for both companies.

Nippon Signal Co., Ltd.

(3) Franchise agreement

The franchise agreement noted above requires the Company to pay a certain percentage of its sales to cover franchise membership,
franchisee deposits, general planning charges and royalties.

Analysis of financial condition and results of operations
Analysis of financial condition (year-on-year comparisons)
Current assets: increased by 4,856 million yen to 37,031 million yen.
• 3,333 million yen increase in cash and deposits, reflecting strong operating
performance• 1,627 million yen increase in marketable securities (the “marketable securities”
account including 629 million in long-term bonds with maturities of less than
one year and 5,828 million yen in cash equivalents)• On the other hand, a 436 million decrease in notes and accounts receivable
Fixed assets: decreased by 468 million yen to 12,636 million yen, largely due to 439
million yen decrease in investment securities.
Current liabilities: decreased by 155 million yen to 12,410 million yen.

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Long-term liabilities: decreased by 700 million yen to 2,661 million yen.
• 300 million yen decrease in long-term debt
• 298 million yen decrease in long-term deferred income• 257 million yen decrease in interest rate swap liabilities
Shareholders’ equity: increased by 5,120 million yen to 34,108 million yen.
• 5,059 million yen increase in retained earnings• 61 million yen increase in unrealized gains or losses on other securities
Cash flow
Cash and cash equivalents increased by 3,855 million yen to 19,787 million yen, due
to an increase in income before taxes and other adjustments.
Net cash provided by (used in) operating activities amounted to 6,394 million yen, a2,554 million yen decline.
• 541 million yen decrease in allowances• 580 million yen increase in inventories• 3,811 million yen increase in income tax and others
Net cash provided by (used in) investing activities amounted to 1,082 million yen(compared to cash used in the previous term of 823 million yen).
• Purchase of 201 million yen worth of corporate bonds• Acquisition of 343 million yen in tangible fixed assets (primarily dies)
Net cash provided by (used in) financing activities amounted to 1,226 million yen(compared to cash used in the previous term of 873 million yen).
• 909 million yen in dividends payments• Repayment of long-term debt of 300 million yen (resulting in long-term
debt—including current portion—declining at term-end to 400 million yen)
Analysis of results of operation
Compared to a 14.6% increase in net sales, SG&A expenses increased by 5.0%. The
major components of the increase in SG&A expenses were the following:• 132 million yen increase in legal welfare expenses, related to events held incommemoration of the 30th anniversary of the Company’s founding• 50 million yen increase in entertainment expenses

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Corporate governanceFundamental thinking with regard to corporate governance(1) To maintain stable growth and maximize its corporate value, the Company has
established a nine-member Board of Directors capable of making speedy andaccurate decisions in response to changes in the operating environment. The
principal role of the Board of Directors is to create efficiency and health inmanagement through:• Effective decision-making concerning management policy and other important
issues• Strengthened oversight of operations(2) To achieve these goals, the Company instituted a system of corporate executive
officers in April 2002 that
• Clearly separates management decision-making from execution of operations• Enhances its ability to respond quickly to changes in the environment.
Measures adopted with regard to corporate governance(1) Related to decision-making, execution, oversight, etc.
• As concerns the question of “company with committees” or corporate auditors:
adopts a system of corporate auditors.
• Appointment of outside directors and corporate auditors: employs no outside
directors but includes two outside auditors among its three corporate auditors.
• Nature of committees (compensation, nominating, compliance, etc.): notapplicable• Full-time staff for outside directors or auditors: none specifically designated,but support provided by General Affairs Department.
• Mechanism for operations execution and oversight- Directors convey decisions made at regular and extraordinary meetings ofthe Board of Directors to corporate executive officers.
- When required, meetings between directors and corporate executive officers
are convened on specific issues.

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CORP ORATI ON• Internal controls
The Company has discontinued its dual-divisional structure (comprising the
Manufacturing and Sales Administration Division and the Sales
Administration Division) and has replaced it with a flatter departmentalorganization with lines of reporting directly to the president. This has createdan efficient system of interdepartmental checks and balances. The Company
has also created mechanisms that enable management decisions to be conveyed
rapidly and accurately to the rest of the organization and that encourage greater
unity of consciousness in the execution of operations. Furthermore, it hasestablished a system by which operating risks can be avoided through rapid
information gathering on such risks. This structure is supplemented by regular
operational audits by the Company’s Office of Internal Audits.
• Risk-management capabilities
By creating a departmental organization with lines of reporting directly to thepresident, the Company has established a structure that encourages the rapid
diffusion of risk-related information throughout the organization. Concerning
legal issues and matters related to regulatory compliance, the Company
consults with its outside legal advisers as necessary.
• Internal audits and audits by corporate auditors; financial audits
The corporate auditors participate in Board of Directors meetings and monitor
the manner in which the directors execute operations. They also exchange
opinions with the directors. With respect to internal audits, the Company has
established an Office of Internal Audits (with a staff of one), which conducts
periodic audits of the different departments. When necessary, the corporate
auditors and the Office of Internal Audits exchange information and coordinate
their actions with respect to audit-related issues.
The Company has entered into a financial auditing agreement with Tohmatsu& Co., which audits the Company’s financial statements in accordance with
the Commercial Code and the Securities and Exchange Law.
Information related to the certified public accountants directly involved in thefinancial audit is as follows:
Name of CPAs who carried out the audit:
Designated partners: Shigeki Yasunami; Yasuhiko Endo
Others who assisted in the audit:
3 CPAs; 4 junior accountants; 2 other staff

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CORP ORATI ON• Compensation to directors and auditors
For the year ended March 2005, the Company paid the following amounts ofcompensation to its directors and corporate auditors and to its financial auditor:
Compensation paid to directors: 109 million yen
Compensation paid to corporate auditors: 13 million yen
Auditing fees
Remuneration in accordance with Article 2-1 of the Certified Public
Accountants Law: 17 million yen(2) Statement regarding relationships between the Company and its outside directors
and corporate auditors (personal, share ownership-based, commercial or other)• The Company has no relationship—in terms of employment, financing,technology or commercial transactions—with any of its outside corporate
auditors or their close relatives, nor with any company in which its corporate
auditors or their close relatives serve as directors.
• None of the Company’s outside corporate auditors is a former employee of any
Mars Engineering Group company.
(3) Actions taken over the past year to enhance corporate governance• Regular monthly Board of Directors meetings, supplemented by special board
meetings as required• Regular Group management meetings, which contribute to expediting
management decision-making through information exchange and reports on the
progress of operations• Regular general managers’ meetings, attended by directors, corporate executive
officers and general managers

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Directors
Date joined
company

Previous or current
employers/occupations

Date of birth

Representative
Director

Sep-74

TAKACHIHO KOHEKI

9-Apr-38

1,405.6

Chairman and
Representative
Director
President andRepresentative
Director
Executive Vice
President

Sep-74

TAKACHIHO KOHEKI

19-Dec-50

490.0

Feb-95

Kawasho Corp.

1-Jul-65

1,000.0

Apr-75

Hitachi, TAKACHIHOKOHEKI

10-Mar-44

450.0

Yoshikiyo Kawakami

Managing Director

Nov-7827-Sep-46

260.0

Toshihisa Oya

Director

Sep-7429-Nov-44

388.0

Hiroshi Murakami

Director

Mar-96

5-Apr-62

248.0

Toshikatsu Terashima

Director

Jun-04

WINTEC

13-Mar-45-

Nobuo Takahashi

Director

Jun-04

Tokyo Tomin Bank

12-Apr-41

1.0

Toshiyuki Goto

Standing Corporate
AuditorSep-8922-Aug-41

10.0

Koichi Takemata

Corporate Auditor

Jun-91

18-Nov-52-

Chikawo Takashima

Corporate Auditor

Jun-054-Aug-33

-

Name

Title

Hirokazu Matsunami
Shigeo Komiya
Akihiro Matsunami
Teruo Gomi

Tokai Bank

Shares owned(1,000)4,252.6
Current assignments and previous positions in the Company have been omitted.

Employees
Consolidated
Business segment

NumberPachinko business

528

Other business

15
543

ParentTotal or average

Number455

Average age

32.6

Average years of service

8.6

Average annual salary (Yen)

5,640,278

The average annual salary includes bonuses.

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Union
The Group has no labor union and enjoys amicable labor relations.

Stock option plan
Date of resolution
Categories and numbers of persons to be granted rights

June 29, 2005
Directors, corporate auditors andemployees of the Company and its
subsidiaries
The actual decision as to number ofrecipients, etc. will be made at the Board of
Directors meeting that follows the Regular
General Meeting of Shareholders.

Type of shares subject to rights

Common stock

Number of shares

Maximum of 1,500,000 shares

Amount paid in at time of execution of rights(Note)

Period of execution of rights

July 1, 2007 - June 30, 2011

Item concerning the assignment of rights

Approval of Board of Directors required.

Payment per share is calculated by the “average closing price in previous month” x 1.01. However, if this amount is less than the closing
price of the Company’s stock in normal transactions on the Tokyo Stock Exchange on the day on which the stock acquisition rights areissued (or, in the event that the Company’s shares are not traded on the day of such issuance, then the closing price on the nearest
preceding day), then the closing price on the day of issuance shall be the amount paid in.

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Cash Flows
Consolidated statement of cash flows
Years ended March 31; Thousands of yen

2003

2004

2005

Net income (loss) before taxes and other adjustments(530,895)

7,531,525

10,369,558

Depreciation

689,002568,510511,257

Increase (decrease) in allowances(19,392)690,297

148,546

Interest and dividend income(46,437)(72,762)(28,568)

Interest expenses

45,591

12,996

5,557

12

-

-

Amortization of consolidation differences

9,529

9,529

8,565

Loss (gain) on sales of investment securities

52,18984,993-

Valuation loss on investment securities

59,539-38,879Loss on disposal and sales of fixed assets

12,1808,973

13,653

Valuation loss on tangible fixed assets

5,779,387--

Decrease (increase) in trade receivables(782,305)(340,062)

434,741

Decrease (increase) in inventories(309,532)

336,470(243,752)

Increase (decrease) in trade payables(872,402)(24,319)

145,181

Increase (decrease) in advances

415,200(168,670)(284,938)

Director's bonuses(47,000)(64,000)(99,000)

Others(414,756)

783,270(334,813)

4,039,911

9,356,752

10,684,868

46,76371,67627,333(265,176)(14,388)(40,775)(1,967,652)(465,645)(4,277,124)

1,853,845

8,948,394

6,394,301

Net change in holdings of marketable securities(299,566)

199,168(392,221)

Payments for acquisition of investment securities(50,000)(540,000)(201,800)

Proceeds from sales of investment securities

48,649172,483-(701,644)(695,092)(343,664)--(47,278)(28,280)

40,420(97,981)(1,030,841)(823,020)(1,082,945)

Net cash provided by (used in) operating activities

Foreign exchange losses (gains)

Interest and dividend income
Interest expenses
Income tax and others

Net cash provided by (used in) investing activities

Payments for acquisition of tangible fixed assets
Payments for acquisition of stock of a consolidated subsidiary
Others16

MARS

ENGINEERING

Years ended March 31; Thousands of yen

CORP ORATI ON

2003

2004

2005

913,368--

1,000,000---(300,000)(300,000)(566,031)(569,677)(909,716)(4,000)(4,000)(16,290)

-

-

(350)

1,343,337(873,677)(1,226,356)

(12)

-

-

Cash and cash equivalents

2,166,328

7,251,696

4,084,998

Cash and cash equivalents, beginning of term

6,513,699

8,680,028

15,931,724--(229,298)

8,680,028

15,931,724

19,787,424

Net cash provided by (used in) financing activities
Net increase (decrease) in short-term borrowings
Proceeds from increase in long-term debt
Payments of long-term debt
Dividends
Dividend payments to minority shareholders
Others

Effect of exchange rate changes on cash and cash equivalents

Net change due to elimination of a subsidiary from consolidation
Cash and cash equivalents, end of term

Relationship between balance of cash and cash equivalents as ofterm-end and balance sheet items
Years ended March 31; Thousands of yen

2003

2004

2005

Cash and deposit accounts at end of term

7,286,078

10,633,446

13,966,457

Money management funds and medium-term government bondfunds included in the marketable securities account1,393,949--

Marketable securities at end of term-

7,134,206

8,762,072

Short-term investments with redemption periods longer than 3months-(1,835,928)(2,941,104)

8,680,028

15,931,724

19,787,424

Cash and cash equivalents at end of term

Capital expenditures
The Group conducts necessary investments from a long-term perspective, focusing on
R&D projects and business operations that promise growth. During the fiscal year
ended March 2005, it spent 343 million yen on capital investments in these areas.
The Group’s principal investments in the pachinko business consisted of 119 million
yen for product-related dies and 23 million yen for the purchase of land adjacent to the
WINTEC Co., Ltd. plant (for the purpose of building a parking lot). The Group madeno significant investments in its other business division.
There were no significant disposals or sales of facilities during the fiscal year.

17

MARS

ENGINEERING

CORP ORATI ON

Capital expenditure and disposal plan

The Group adopts capital investment plans based on a comprehensive assessment of
economic conditions, industry trends, investment efficiency and other factors.
Generally, each consolidated subsidiary formulates its own capital expenditure plan,with Mars Engineering Corp. functioning as a coordinator to prevent duplication on aGroup-wide basis.
As of year-end, the Company had no plans to add any important new facilities or todispose of or sell any important existing facilities.

Dividend policy
The Company considers its policy on dividends to be extremely significant. Its goalwith respect to dividends is to make payouts in a manner that contributes to stablebusiness growth over the long term. This requires that it strengthen its financial
structure and pay dividends that more closely reflect changes in its financial
performance each term with due consideration given to maintaining a stable payout toits shareholders.
Accordingly, the Company took a number of factors into account to determine its
dividend for the year, including its achievement of two consecutive years of record
high sales and net income and its celebration of the milestone 30th anniversary of theCompany’s founding. To reward shareholders for their support, the Company will pay
a total dividend of 30 yen a share, an amount comprising a regular dividend of 15 yen,a commemorative dividend of 5 yen and a special dividend of 10 yen.
Addition to this of the 20 yen per share paid out as an interim dividend brings the total
dividends for the year to 50 yen per share.
Because of the two-for-one stock split the Company carried out effective September
17, 2004, this amounts in real terms to a 40 yen per share increase in dividends
compared to the previous term.
In further recognition of the support that our shareholders have provided us, we haveinaugurated a preferential program for shareholders who held unit shares (minimum
trading units) as of the end of March 2005.
The Company intends to invest retained earnings in areas that will foster stable growth,
including measures aimed at strengthening its balance sheet and capital investments.

18

MARS

ENGINEERING

CORP ORATI ON

Operations
Consolidated statement of income
Years ended March 31; Thousands of yen

2003

2004

2005

Net sales

24,959,669

30,723,810

35,208,425

Cost of goods sold

13,687,741

16,510,304

18,364,947

Gross profit on sales

11,271,928

14,213,505

16,843,478

Selling, general and administrative expenses

5,783,601

6,038,483

6,340,039

Operating income

5,488,327

8,175,022

10,503,438Interest income

43,832

69,364

24,831

Rental income

13,51017,40017,400--34,43336,69425,52824,151

94,037112,292

100,815Interest expenses

45,591

12,996

5,557

Others

15,258

10,345

10,78160,84923,342

16,3385,521,514

8,263,972

10,587,915

Gain on sale of investment securities

-

6,962

-

Reversal of allowance for doubtful accounts

-

2,200

-

Gain on sales of memberships

-

5,000

-

Others

-

1,000

-

-

15,162-

Valuation loss on fixed assets

5,779,387--

Loss on disposal of inventories

145,408

158,081

165,824

Valuation loss on investment securities

59,539-38,879Loss on sale of investment securities-

91,956-

Provision for directors' retirement allowances for prior years-

487,669-

68,075

9,902

13,653

6,052,410

747,610

218,357

Income (loss) before taxes and other adjustments(530,895)

7,531,525

10,369,558

Corporate, residents and enterprise taxes

434,9883,029,952

4,267,214

Deferred taxes(324,984)

104,940(150,540)

110,004

3,134,892

4,116,673

73,937

156,156

189,273(714,837)

4,240,475

6,063,611

Nonoperating income

Gain from conclusion of interest rate swap
OthersNonoperating expenses

Ordinary profit
Extraordinary income

Extraordinary losses

OthersMinority interest in income of consolidated companies
Net income (loss) for the term

19

MARS

ENGINEERING

CORP ORATI ON

Consolidated statement of retained earnings
March 31; Thousands of yen

2003

2004

2005

-

8,371,830

8,371,830

8,371,830--

8,371,830

8,371,830

8,371,830

8,371,830

8,371,830

8,371,830-

8,865,052

12,475,532

10,193,486--

10,193,486

-

-

-

4,240,475

6,063,611-

4,240,475

6,063,611

Net loss

714,837--

Dividends

567,996

567,996908,793

Directors' bonuses

45,60062,00095,8001,328,434

629,996

1,004,593

8,865,052

12,475,532

17,534,549

Capital reserves
Capital reserves, beginning of term
Additional paid-in capital, beginning of term

Capital reserves, end of term

Retained earnings
Retained earnings, beginning of term
Retained earnings, beginning of term

Increase in retained earnings
Net income

Decrease in retained earnings

Retained earnings, end of term

20

MARS

ENGINEERING

CORP ORATI ON

Results of operations
Fiscal year ended March 31, 2005
Economic and other factors affecting operations(1) Mixed economic picture• Capital spending continuing to increase, supported by ongoing recovery incorporate profits• Unimpressive recovery in consumer spending• Other factors weighing on the economy: sharply rising oil prices, fears ofpension system insolvency, etc.
(2) Trends in pachinko industry•

Increasing demand for peripheral equipment due to the government’s issuanceof new yen-denominated banknotes (10,000, 5,000 and 1,000 yen bills)•

Amendment of the Regulation Concerning Certification and Official Inspectionof Pachinko Game Machines (effective July 2004), giving rise to a flurry ofgame machine replacements, resulting in over-investment by pachinko parlor
operators

Marketing strategies and results(1) Continuing emphasis on Cycle Card prepaid systems—resulting in sales of Cycle
Card systems to 404 customers, mostly large parlors(2) Proposing and selling comprehensive system, which include prize-control systems
and table-top auto dispensers(3) Adapting rapidly to the government’s issuance of new banknotes in November
2004, using the Company’s nationwide maintenance capabilities to complete
adjustment of existing machines; and, by doing so, creating considerable goodwill
among customers because of the slower reaction by the rest of the industry
Financial analysis (year-on-year percentage change)(1) Second consecutive year of record high sales and profits(2) Income statement• Net sales: +14.6%• Operating income: +28.5%• Ordinary profit: + 28.1%• Net income: +43.0%

21

MARS

ENGINEERING

CORP ORATI ON

Segment breakdown (year-on-year percentage change)(1) Pachinko business: sales increase by 14.9% to 34,679 million yen, due principallyto:• Continued strong support in the market for the Company’s ability to offer
prize-control capabilities and Cycle Card functions; the Company’s large
market share for prize-control systems and its ability to set the industry
standard for convenience in relation to reusable cards (Cycle Cards)- Growth rate in new installations (based on machines in place and beingused) moderated, but sales of new Cycle Card systems to existingcustomers remained strong, resulting in sustained high growth levels interms of total installations- Cumulative installations, as of the end of March 2005, were 1,582,
accounting for 13.3% of the market.
• Staying attuned to market opinions and requests and translating these into
innovative new products(2) Other business: Hotel revenues decreased by 0.5% to 528 million yen.
• Both sales and occupancy rates fail to meet targets set by the Company,
reflecting:- Pricing pressures against the background of a growing trend toward Internet
reservations.
- A decline in leisure and other travel to Fukuoka, reflecting fewer
conventions and other special events during the year
• Despite this, higher average revenue per room, due to increases in the numbersof customers choosing more expensive rooms and repeat customers• Based on customer feedback, the hotel’s “front desk department” is ranked No.
1 in the Sunroute chain for the second consecutive year in 2004.
Fiscal year ended March 31, 2004
Economic and other factors affecting operations(1) Mixed economic picture• Recovery in corporate profits and rising capital investment• Offset by “structural” deflation in the economy, fostering:- Uncertainty among people concerning employment- Continued weakness in consumer spending

22

MARS

ENGINEERING

CORP ORATI ON(2) Trends in pachinko industry• Declining customer traffic• Year-on-year increases in bankruptcies and bankruptcy-related liabilities
reflecting- Shorter game-machine cycles- Pressure on operators to make larger capital investments• Polarization of industry- Growth of efficient large chains and a shakeout among smaller operators- Resulting decrease in number of pachinko parlors• Growing popularity of “pachislot” machines leading to- Reversal of long-term slide in size of pachinko market- Cessation of decline in number of persons who say they participate inpachinko as recreation
Marketing strategies and results (year-on-year percentage changes)(1) Development and sale of wide array of prepaid card (Cycle Card) systems to meetcustomer needs(2) Focus on prepaid card systems generating• 426 new customers for such systems during the year (+7.0%)• Higher sales per parlor reflecting:- Sales to customers wishing to convert all machines (pachinko andpachislot) to prepaid card systems- Increased pachinko parlor size
Financial analysis (year-on-year percentage changes)(1) Achievement of record high sales and profits(2) Return on equity: 15.7%(3) Income statement• Net sales: +23.1%• Operating income: +49.0%• Ordinary profit: +49.7%• Net income: 4,240 million yen (cf. deficit of 714 million yen)

23

MARS

ENGINEERING

CORP ORATI ON

Segment breakdown(1) Pachinko business: Sales increased 23.5% to 30,192 million yen, due principallyto• The Company’s increasing success in the market for prepaid card systems.
- Under conditions of intense competition, more installations than any othercompany every month during the past two years- As of the end of March 2004, 1,250 cumulative installations, constituting
10.6% of the market- Emergence of many key functions of the Company’s systems as de facto
industry standards• The Company’s involvement in all aspects of marketing—from development
and manufacture to sales and maintenance(2) Other business: Hotel revenues increased 1.9% to 531 million yen.
• Increase achieved despite flood-related suspension of operations in July
• Focus on enhancing quality (rooms, service) and on increasing room rates inaccordance with inflow of reservations• Based on customer feedback, the hotel’s “front desk department” is ranked No.
1 in the Sunroute chain in 2003.

Issues requiring action(1) With pachinko parlors continuing to operate in a weak economic environment, theCompany must create corporate value by generating satisfactory profit levels
while maintaining a stable rate of growth.
(2) Required actions—organizationally• With the Group involved in all aspects of development, manufacture, sales andmaintenance, clarifying the roles played by each company in order to optimize
results• Recognizing changes in the market and responding rapidly with strong productlines to differentiate the Company from other companies and establish
advantages in the market(3) Required actions—sales• Aiming for a 20% market share in prepaid card systems• Endeavoring to improve brand image and increase brand recognition

24

MARS

ENGINEERING

CORP ORATI ON

Production and sales
Production
2005
AmountYear-on-yearcomparison (%)

23,707,150

119.6

-

-

23,707,150

119.6

Thousands of yen

Pachinko business
Other business

Procurement
2005
Thousands of yen

AmountYear-on-yearcomparison (%)

Pachinko business

1,258,200

101.2

94,78495.0

1,352,984

100.8

Other business

Sales by product2005
AmountYear-on-yearcomparison (%)

34,679,727

114.9

528,698

99.5

35,208,425

114.6

Thousands of yen

Pachinko business
Other business

25

MARS

ENGINEERING

CORP ORATI ON

LeasesUnder generally accepted accounting principles in Japan, finance leases that do nottransfer ownership are accounted for in the same manner as operating leases when “asif capitalized” information is disclosed.
The Company’s main finance lease contracts are as follows:
Thousands of yen
ParentRent or lease

Number of
employees(Square meters)

Current
payments

78-

218,307Land

Head office
OfficeRent

OA equipment

Lease

-

14,419Vehicles and delivery equipment

Lease

-

6,395

-

73,473

Susono Technical Center
OfficeRent

38

OA equipment

Lease

-

193

Vehicles and delivery equipment

Lease

-

279

-

44,400

-

135

-

514

Mishima Technical Center
OfficeRent

OA equipment

Lease

6

Gotemba Technology and Distribution Center
Parking lot

Rent

35

OA equipment

Lease

-

136

Vehicles and delivery equipment

Lease

-

5,000

Gotemba Warehouse
Vehicles and delivery equipment

Lease

6

-

1,382

Office

Rent

261

-

180,301

OA equipment

Lease

-

5,720

Vehicles and delivery equipment

Lease

-

77,861

Tokyo Branch, etc.

Mars Corporation

Peripheral equipment

Lease

2

-

1,584,930

Office

Rent

37

-

58,718Peripheral equipment

Lease

-

1,610,538

OA equipment

Lease

-

2,155

Vehicles and delivery equipment

Lease

-

451

-

2,500

Mars Techno-Science Corporation

WINTEC Co., Ltd.

OfficeRent

34

OA equipment

Lease

-

105

Equipment and machinery

Lease

-

231

Vehicles and delivery equipment

Lease

-

1,118

26

MARS

ENGINEERING

Thousands of yen

Rent or lease

CORP ORATI ON

Number of
employees(Square meters)

Current
payments

15644

145,977

Land

Hotel Sunroute Hakata, Inc.

Buildings and structures

Rent

Equipment and machinery

Lease

-

1,661

OA equipment

Lease

-

310

Pro forma information on leased property is as follows:
LesseeThousands of yen
Tools, appliances and fixtures

2004

2005

Acquisition cost

2,276,714

1,924,493

Accumulated depreciation

1,336,272

1,246,469

940,442

678,023

Due within one year

1,829,531

1,804,235

Due after one year

2,664,180

2,291,107

4,493,712

4,095,343

2,020,757

2,241,511

Pro forma depreciation expenses (assuming
declining-balance method)

538,946

610,481

Pro forma interest expenses

384,482

189,439

Due within one year

1,003

1,003

Due after one year

2,340

1,337

3,343

2,340

2004

2005

Acquisition cost

485,598

148,139

Accumulated depreciation

419,357

128,441

Net leased property

66,241

19,698Due within one year

1,409,804

1,456,931

Due after one year

2,466,969

2,243,230

3,876,774

3,700,161

1,728,497

1,870,866

Depreciation expenses

67,76829,627

Revenues from interest

281,990234,655

Net leased property
Future minimum lease payments,
including interest portion

Lease payments

Operating leases - future minimum lease
payments

LessorThousands of yen
Tools, appliances and fixtures

Future minimum lease payments,
including interest portion

Lease payments received

27

MARS

ENGINEERING

CORP ORATI ON

Capital Structure
Consolidated balance sheet
AssetsMarch 31; Thousands of yen

2003

2004

2005

Cash and deposits

7,286,078

10,633,446

13,966,457

Notes and accounts receivable

10,313,582

10,518,982

10,082,028

Marketable securities

3,425,487

7,134,206

8,762,072

Inventories

3,519,687

3,184,929

3,367,321

Deferred tax assets

865,704

499,330

510,895

Income tax refunds receivable

933,050--

Others

190,165

239,754

403,424

Allowance for doubtful accounts(22,999)(36,021)(61,045)

26,510,757

32,174,627

37,031,152

5,723,107

6,147,187

6,214,459

1,657,960

1,913,295

2,151,362

4,065,146

4,233,891

4,063,097

198,411

246,231247,720

108,715

127,053

148,841

89,696

119,177

98,8792,348,959

2,357,083

2,241,066

1,866,976

1,981,340

1,883,713

481,983

375,742357,352

5,699,374

5,782,399

5,802,266

21,000--10,357,201

10,511,211

10,321,596

Consolidation translation adjustments

16,4306,901-

Others121,882

84,565

151,425

138,31391,466

151,425

Investment securities

706,010

1,575,342

1,135,722

Deferred tax assets

569,362

587,287

684,103

Others563,551

608,629

618,195

Allowance for doubtful accounts(146,077)(268,206)(274,065)

1,692,847

2,503,053

2,163,955

Total fixed assets

12,188,361

13,105,732

12,636,977

Total assets

38,699,119

45,280,360

49,668,130

Current assets

Fixed assets
Tangible fixed assets
Buildings and structures
Accumulated depreciation

Machinery and transportation equipment
Accumulated depreciation

Tools, appliances and fixtures
Accumulated depreciation

Land
Construction in progress

Intangible fixed assets

Investments and other assets

28

MARS

ENGINEERING

CORP ORATI ON

Liabilities and shareholders’ equity
March 31; Thousands of yen

2003

2004

2005

Notes and accounts payable

3,417,140

3,392,821

3,364,138

Short-term borrowings

1,000,000

1,000,000

1,000,000

Long-term debt due within 1 year

300,000

300,000

300,000

Income taxes payable272,670

2,836,977

2,826,977

Allowance for bonuses

254,359

285,551

348,710

4,177,561

4,008,890

3,723,951

749,509742,424

846,949

10,171,241

12,566,665

12,410,727

700,000

400,000

100,000

Reserve for directors' retirement allowances-

503,954522,741

Consolidation translation adjustments

-

-

1,664

2,584,459

2,458,826

2,037,376

3,284,459

3,362,781

2,661,782

13,455,701

15,929,447

15,072,510

212,837

362,992

487,576

Common stock

7,934,100

7,934,100

7,934,100

Capital reserves

8,371,830

8,371,830

8,371,830

Retained earnings

8,865,052

12,475,532

17,534,549

Unrealized gains or losses on other securities(140,110)

206,751

268,206

(292)

(292)

(642)

Total shareholders' equity

25,030,579

28,987,920

34,108,043

Total liabilities, minority interests and shareholders' equity

38,699,119

45,280,360

49,668,130

Current liabilities

Advances received
OthersLong-term liabilities
Long-term debt

OthersTotal liabilities

Minority interests
Shareholders' equity

Treasury stock

29

MARS

ENGINEERING

CORP ORATI ON

Market value of securities
Other quoted securities
2004
Thousands of yen

Securities valued on the consolidatedbalance sheet at amounts greater thanpurchase cost
SharesCost ofacquisition

170,949

2005

Book value

Unrealized
gain (loss)

Cost ofacquisition

Book value

Unrealized
gain (loss)

452,142

281,192

170,949

530,800

359,851

Bonds
JGB, local government bonds, etc.

-

-

-

-

-

-

Corporate bonds

-

-

-

-

-

-

OthersOthers

-

-

-

-

-

-

1,257,543

1,336,935

79,392

1,658,501

1,763,606

105,105

1,428,492

1,789,078

360,585

1,829,451

2,294,407

464,956

-

-

-

-

-

-

Securities valued on the consolidatedbalance sheet at amounts not greater thanpurchase cost
Shares
Bonds
JGB, local government bonds, etc.

-

-

-

-

-

-

Corporate bonds

-

-

-

-

-

-

OthersOthers

-

-

-

-

-

-

983,176

971,193(11,983)

983,176

970,436(12,739)

983,176

971,193(11,983)

983,176

970,436(12,739)2,411,669

2,760,271

348,6022,812,627

3,264,844

452,216

When the market value of a security at fiscal year-end has fallen to less than 50% of the acquisition price, a valuation write-off is madefor the full amount. When the market price has fallen by 30%-50% of the acquisition price, an amount deemed necessary is written off,taking into consideration the actual amount in question and the possibility of recovery.

Other marketable securities sold during the years ended March 31, 2004
Thousands of yen

2004

2005

172,483-

Total gains on sales

6,962

-

Total losses on sales

91,956-

Amount sold

Major investment securities without market prices
Thousands of yen

2004

2005

61,000253,661

4,018,802

4,548,439

90,00051,1201,169,328

1,169,570

Medium-term government bond funds

110,147

110,156

Bonds

500,000

500,000

Bonds being held to maturity
Corporate bonds
Commercial paper
Other securities
Unlisted stocks
Money management funds

The Company recognized impairment charges of 38,879,000 yen on unlisted stocks held in its “Other marketable securities” account.

30

MARS

ENGINEERING

CORP ORATI ON

Scheduled redemptions of bonds with maturity dates and bonds being
held to maturity (among holdings in the “other securities” account)
Thousands of yen
2005

Up to 1 year

Longer than 1 andup to 5 years

Longer than 5 andup to 10 years

Longer than
10 years

-

-

-

-

8,000

245,661--4,548,439---

701,518

216,705--

5,257,958

462,366

-

-

-

-

-

-

9,000

52,000--4,018,802

-

-

-

-

389,094--

4,027,802

441,094

-

-

Bonds
JGB, local government bonds, etc.
Corporate bonds
OthersOthers2004

Bonds
JGB, local government bonds, etc.
Corporate bonds
OthersOthersDerivatives
Thousands of yen
Total

2004
Over oneyear Market value

Unrealized
gain (loss)

Total

2005
Over oneyear Market value

Unrealized
gain (loss)

Interest rate swap

Pay floating and receive fixed

-

-

-

-

-

-

-

-

Pay fixed and receive floating

10,000,000-(257,379)(257,379)

-

-

-

-

10,000,000-(257,379)(257,379)

-

-

-

-

31

MARS

ENGINEERING

CORP ORATI ON

Facilities
Thousands of yen

Buildings
Tools,
and appliances
structures and fixtures

Land
Book value

Squaremeters

Other

Total bookvalue

Number of
employees

ParentHigashi Fuji Plant
Manufacturing equipment

498,639

157,056

597,253

11,447

1,719

1,254,668

31

600,944

15,961535,660

2,692

76,552

1,229,118

35

25,44934,916

-

-

1,388

61,75478-

23,292--620

23,913

38

263,2032,430

172,813

7,654

3,474

441,9226

291,078

676

-

-

-

291,754

-

-

1,112

-

-

-

1,112

6

173,481348

550,024

1,202

2,556

726,410-4,140

10,659---14,800261--

1,641,013

16,278-

1,641,013-

1,827,854-

2,214,745

5,398

-

4,042,599

2

Equipment and machinery

-

5,759

-

-

-

5,759

OA equipment

-

939

-

-

-

939

Peripheral equipment

-

-

-

-

104,318

104,318

1,250

29,593---30,844

OA equipment

-

6,552

-

-

-

6,552

Peripheral equipment

-

638

-

-

-

638

376,104-

90,757

4,038-

466,861

Equipment and machinery

-

6,705

-

-

11,976

18,681

OA equipment

-

2,416

-

-

-

2,416

Dies

-

3,923

-

-

-

3,923

Vehicles and delivery equipment

-

-

-

-

590

590

950

2,947

-

-

-

3,897

-

197

-

-

-

197

Gotemba Technology and Distribution Center
Manufacturing and distribution facilities
Head Office
Facilities for corporate administration
Susono Technical Center
R&D facilities
Gotemba Warehouse
Warehousing facilities
Fuji Training Center
Training facilities
Mishima Technical Center
Inactive
Dormitories
Employee recreation and welfare facilities
Tokyo Branch, etc.
Sales, installation and maintenancefacilities
Others
Unused landMars Corporation
Buildings and structures

Mars Techno-Science Corporation
Equipment and machinery

37

WINTEC Co., Ltd.
Buildings and structures

34

Hotel Sunroute Hakata, Inc.
Equipment and machinery
OA equipment

32

15

MARS

ENGINEERING

CORP ORATI ON

Borrowings
Thousands of yen

Previous term

Outstanding

Average rate

Maturity

1,000,000

1,000,000

0.3156%-

Current portion of long-term debt

300,000

300,000

0.44%-

Long-term debt (excluding current
portion of long-term debt)
Other interest-bearing liabilities

400,000

100,000

0.44%

2005 - 2006

-

-

-

-

1,700,000

1,400,000--

Short-term borrowings

Long-term debt repayable within 5 years of the end of the fiscal year to March 2005
(excluding the amount payable within one year) is as follows:
Thousands of yen

Longer than 1
and up to 2 years

Longer than 2
and up to 3 years

Longer than 3
and up to 4 years

Longer than 4
and up to 5 years

100,000---

Long-term debt

Retirement benefits
Summary of retirement benefit system

The Company has established a qualified defined-benefit pension plan. It has alsojoined a corporate pension plan formed by multiple employers (the National
Employers Welfare Pension Fund for the Information Service Industry).
Upon the retirement of an employee, the Company may make extra retirement
payments to the employee. These are unrelated to liabilities calculated on the basis ofactuarial assumptions, which the Company recognizes in accordance withretirement-benefit accounting guidelines.
Items related to retirement benefit liabilities
Thousands of yen

2004

2005

Retirement benefit liabilities(943,283)(1,041,911)

Pension assets

785,689

901,933

Unaccrued pension benefit liabilities(157,593)(139,978)Unrecognized actuarial gains or losses

288,956

248,237

Net amount shown on consolidated balance sheet

131,363108,259

Prepaid pension expenses

131,363108,259--

Allowance for retirement benefits

33

MARS

ENGINEERING

CORP ORATI ON

Items related to retirement benefit expenses
Thousands of yen

2004

2005

Current service costs

77,55584,501

Pension premiums paid under multi-party employers'
welfare pension fund

96,987

106,915Interest expenses

14,350

16,252--

Expensing of actuarial differences

33,62135,603Retirement benefit expenses

222,514243,272

Expected earnings on pension fund assets

Assumptions underlying the calculation of retirement benefit liabilities
Thousands of yen

2004

2005

Discount rate

1.7%

1.7%

Expected rate of return

0.0%

0.0%

Equal payments basis

Equal payments basis

Method of allocating prospective retirement benefits toeach period
Amortization period for actuarial gains or losses

10 years

10 years(Expensed beginning in the
consolidated fiscal year following
the year in which the expenses
arise, using straight-line
amortization over a prescribed
number of years that is equal toor less than the averageremaining period of service of
employees.)(Expensed beginning in the
consolidated fiscal year following
the year in which the expenses
arise, using straight-line
amortization over a prescribed
number of years that is equal toor less than the averageremaining period of service of
employees.)

Company’s share of pension assets based on percentage of premiums
contributed to multi-party employers’ pension system
Thousands of yen

2004

2005

980,330

1,146,296

Deferred taxes
Thousands of yen

2004

2005

Deferred tax assets (current)

499,650

551,732

Deferred tax liabilities (current)(319)

40,836

Deferred tax assets - net

499,330

510,895

Deferred tax assets (fixed)

786,692

884,995

Deferred tax liabilities (long-term)(199,404)

200,892

Deferred tax assets - net

587,287

684,10334

MARS

ENGINEERING

CORP ORATI ON

Nonconsolidated Financial Statements
Nonconsolidated statement of income
Years ended March 31; Thousands of yen

2003

2004

2005

Net sales - finished goods

20,167,621

25,900,391

28,918,150

Net sales - merchandise

413,258

212,688

209,679

20,580,880

26,113,079

29,127,830

993,386

1,562,263

1,547,961

11,653,380

14,650,062

15,840,204

12,646,766

16,212,326

17,388,165

128,937

90,512

126,391

1,562,263

1,547,961

1,599,592

10,955,565

14,573,851

15,662,181

4,017

4,207

5,384

213,602107,303107,359

217,620

111,511

112,743

4,207

5,384

4,654

213,412106,127

108,088

11,168,978

14,679,979

15,770,270

9,411,902

11,433,100

13,357,560

After-sales service expenses

356,981410,120

418,286

Directors' salaries

129,420

125,130

122,440

Employees' salaries

1,445,079

1,581,695

1,712,929

Bonuses272,611445,467

421,331

Provision for bonuses

181,378

210,956

266,520

Legal welfare expenses

245,466

299,583

310,882

Rent

171,551

525,460

515,069

Depreciation expenses

190,61483,811

84,721-

36,614

40,6291,558,302

1,626,330

1,744,882

4,551,406

5,345,169

5,637,694

4,860,496

6,087,931

7,719,866

Net sales

Cost of goods soldCost of finished goods sold
Finished goods inventory, beginning of term
Production costs for the term

Transfers to other accounts
Finished goods inventory, end of term

Cost of merchandise sold
Merchandise inventory, beginning of term
Merchandise purchased during term

Merchandise inventory, end of term

Gross profit on sales
Selling, general and administrative expenses

Provision for directors' retirement allowances
OthersOperating income

35

MARS

ENGINEERING

Years ended March 31; Thousands of yen

CORP ORATI ON

2003

2004

2005

Interest income

16,242

14,6096,719Interest income from securities

38,12365,975

22,135

Dividend income

18,604

19,37876,027

Income from contracted operations

10,600

9,600

9,600

-

-

34,433

17,546

21,733

10,587101,117

131,296

159,502

Interest expenses

45,956

6,143-

Miscellaneous losses

2,208

54

4,050

48,164

6,197

4,050

4,913,449

6,213,030

7,875,317

Gains on sales of investment securities

-

6,962

-

Reversal of allowance for doubtful accounts

-

2,200

2,459

-

9,162

2,459

5,779,387--

13,264

8,979

2,439

-

487,669-

Loss on disposal of inventories

139,023

158,081

163,841

Loss on sale of investment securities

52,18991,956-

Valuation loss on investment securities

59,539-38,879--100,000

6,043,404

746,687

305,161(1,129,954)

5,475,505

7,572,615

42,113

2,161,037

3,150,912(479,734)

171,440(63,563)(437,620)

2,332,478

3,087,349

Net income (loss) for the term

(692,333)

3,143,026

4,485,265

Retained earnings brought forward from previous term

5,345,863

4,031,533

6,409,965

227,198

227,198454,396

4,426,331

6,947,362

10,440,834

Nonoperating income

Gain from conclusion of interest rate swap
Miscellaneous income

Nonoperating expenses

Ordinary profit
Extraordinary income

Extraordinary losses
Loss on sale of fixed assets
Loss on removal of fixed assets
Provision for directors' retirement allowances for prior years

Valuation loss on shares in affiliates

Income (loss) before taxes and other adjustments
Corporate, inhabitants and enterprise taxes
Adjustment for income and other taxes

Interim dividends
Unappropriated retained earnings, fiscal year-end

36

MARS

ENGINEERING

CORP ORATI ON

Nonconsolidated appropriation of retained earnings
Thousands of yen

June 27, 2003

June 29, 2004

June 29, 2005

4,426,331

6,947,362

10,440,834

Dividends

340,797454,396

681,592

Directors' bonuses

54,00083,00075,000[Corporate auditors' bonuses][ 2,000 ][ 6,000 ][ 2,000 ]394,797

537,396756,592

4,031,533

6,409,965

9,684,241

Unappropriated profit, end of term
Appropriation of retained earnings

Retained earnings carried forward to following term

Cost of goods soldYears ended March 31; Thousands of yen

2003

%

2004

%

2005

%

10,186,258

86.6

13,092,715

88.1

14,262,441

87.7

Subcontracted processing expenses

823,935

7.0

1,112,824

7.5

1,300,164

8.0

Labor costs

307,987

2.6

335,2212.3

367,470

2.3

Manufacturing overhead

441,7373.8

314,684

2.1

322,570

2.0

11,759,919

100.0

14,855,444 100.0

16,252,646

100.0

Cost of materials

Total manufacturing costs for the term
Work-in-process inventory, beginning of term

185,964

34,447

66,296

11,945,883

14,889,893

16,318,942

Work-in-process inventory, end of term

34,447

66,296

159,192

Transfers to other accounts

258,055

173,534

319,546

Production costs for the term

11,653,380

14,650,062

15,840,204

26,242

26,271

27,260278,393

200,062

182,022

Selling, general and administrative expenses

223,288

107,689

156,150

Loss on disposal of inventories

31,496

65,84433,621--

129,774

216

-

-

3,053

-

-

258,055

173,534

319,546

Primary items and amounts included under Labor costs and Manufacturing overhead.

Labor costs
Provision for bonuses
Manufacturing overhead
Depreciation expenses
Transfers to other accounts

Software under development
Manufacturing expenses
Tools, appliances and fixtures

37

MARS

ENGINEERING

CORP ORATI ON

Nonconsolidated balance sheet
AssetsMarch 31; Thousands of yen

2003

2004

2005

Cash and deposits

5,755,222

8,217,074

10,950,330

Notes receivable

1,184,473

1,801,918

1,791,588

Accounts receivable - trade

4,205,551

3,988,099

3,744,326

Marketable securities

3,165,074

6,873,957

8,501,804

4,207

5,384

4,654

1,562,263

1,547,961

1,599,592

Materials

807,245463,288599,347

Work in process

34,447

66,296

159,192

Supplies

509,058

420,965

376,045

Advances paid

4,454

-

-

Prepaid expenses

56,11854,946102,274

Short-term loans

456,000

283,000

180,000

Deferred tax assets

724,580

344,647

279,518

Income tax refunds receivable

933,050--

Others13,035

14,591

14,493

Allowance for doubtful accounts(5,856)(10,341)(9,146)

19,408,927

24,071,791

28,294,021

3,506,666

3,507,299

3,534,278

1,503,591

1,613,388

1,717,374

2,003,075

1,893,910

1,816,904

191,175

191,175

192,451

137,047

145,425

152,416

54,12845,75040,034

166,207

216,723

218,388

82,224

109,156

133,845

83,983

107,566

84,543

Vehicles and delivery equipment

26,17818,304

12,324

Accumulated depreciation

21,81715,302

10,554

4,360

3,002

1,769

Tools, appliances and fixtures

1,641,258

1,633,514

1,756,557

Accumulated depreciation

1,360,217

1,406,291

1,510,103

281,041

227,223

246,453

3,496,763

3,496,763

3,496,763

5,923,352

5,774,217

5,686,468

Current assets

Merchandise
Finished goods

Fixed assets
Tangible fixed assets
Buildings
Accumulated depreciation

Structures
Accumulated depreciation

Machinery and equipment
Accumulated depreciation

Land

38

MARS

ENGINEERING

March 31; Thousands of yen

CORP ORATI ON

2003

2004

2005

Patents

15,785

17,461

14,276

Telephone subscription rights

15,214

15,214

15,214

Software36,763

23,819154,032--

18,921

67,76456,495

202,444706,010

1,575,342

1,135,722

2,476,860

2,476,860

2,424,138

1,610

454

5,454

Long-term loans to affiliates

103,000

410,000

60,000Rental and guarantee deposits

392,450

365,400

388,139

Claims in bankruptcy and substantial bankruptcy

52,79193,30962,390Long-term prepaid expenses

18,686

9,694

11,612

Deferred tax assets

186,296

151,271

237,803

Prepaid pension expenses

154,705

131,363108,259

Others

66,10066,10066,100(109,635)(141,895)(110,805)

4,048,876

5,137,902

4,388,814

Total fixed assets

10,039,993

10,968,615

10,277,728

Total assets

29,448,920

35,040,407

38,571,749

Intangible fixed assets

Software under development

Investments and other assets
Investment securities
Capital stock of affiliated companies
Investments other than securities

Allowance for doubtful accounts

39

MARS

ENGINEERING

CORP ORATI ON

Liabilities and shareholders’ equity
March 31; Thousands of yen

2003

2004

2005

15,830

4,160

10,658

Accounts payable - trade

2,656,365

2,939,070

3,137,342

Accounts payable - other104,911

158,023

135,485

Income taxes payable

17,4072,165,011

2,137,324

Consumption taxes payable

177,359

138,358

195,367

Accrued expenses

85,15090,51856,306

Advances from customers

31,91339,465

17,476

Deposits received

14,64625,546

16,663

Deferred income

15,241

3,534

2,957

Allowance for bonuses

207,621237,228

293,780

Others12,772--

3,339,219

5,800,916

6,003,361

511,266

257,379--

503,954522,741

34,50046,32059,234

545,766

807,655

581,976

3,884,986

6,608,571

6,585,338

7,934,100

7,934,100

7,934,100

8,371,830

8,371,830

8,371,830

8,371,830

8,371,830

8,371,830

372,109372,109372,1094,600,000

4,600,000

4,600,000

4,426,331

6,947,362

10,440,834

9,398,441

11,919,471

15,412,943(140,144)

206,726

268,180

(292)

(292)

(642)

Total shareholders' equity

25,563,934

28,431,835

31,986,411

Total liabilities and shareholders' equity

29,448,920

35,040,407

38,571,749

Current liabilities
Notes payable

Long-term liabilities
Interest rate swap liability
Reserve for directors' retirement allowances
OthersTotal liabilities

Shareholders' equity
Common stock
Capital reserves
Additional paid-in capital

Retained earnings
Legal income reserves
Voluntary reserves - total
Special reserve
Unappropriated retained earnings, fiscal year-end

Unrealized gains or losses on other securities
Treasury stock

40

MARS

ENGINEERING

CORP ORATI ON

Trade credits
Notes receivableThousands of yen

2005

GAIA

381,882

Amenities

76,708

Sanpo Shoji

71,809Purimeru Kaihatsu

64,000

Newgin Advance

60,480

Others1,136,707
1,791,588

Accounts receivable — trade
Thousands of yen

2005

Mitsui Leasing & Development, Ltd.

241,054

Dynam Co Ltd.

216,133

Hoshigaoka Shopping Center

136,546

Mars Techno-Science Corporation

132,465

Kinki Sangyo Lease

130,000

Others2,888,126
3,744,326

Turnover of accounts receivableThousands of yen

2005

Beginning balance

3,988,099

Increase

30,913,182

Collected

31,156,956

Ending balance

3,744,326

Turnover89.3%

Average days for collection

45.7

41

MARS

ENGINEERING

CORP ORATI ON

Securities
Marketable and investment securities
Thousands of yen

StocksInvestment securities
Other securities

Number of sharesBook value

Japan Cash Machine (6418)

120,752

332,068

Resona Holdings, Inc. (8038)

465,150

100,007

Atom Corp. (7412)

2,000

11,120Tokyo Tomin Bank (8339)

21,24260,964

P ARK

20,00040,00050

28,200

Nippon Signal (6741)

5,000

3,010

NAGANO KEIKI (7715)

1,610

2,849

Nissei Plastic Industrial (6293)

1,400

1,223

Daiwabo Information System (9912)

1,100

1,667

Taisei Oncho (1904)

1,500

810

TOKYO MAGTEK Inc.

30-

639,834

581,921

Total face value

Book value

5,058,000

5,056,439

244,000

245,661

5,302,000

5,302,101

Number of units
investedBook value

1,362,014

3,445,364

46,990308,139

1,409,004

3,753,503

UFJ Holdings, Inc. (8307)

Bonds
Marketable securities
Bonds being held to maturity
Investment securities
Bonds being held to maturity

OthersMarketable securities
Other securities
Investment securities
Other securities

42

MARS

ENGINEERING

CORP ORATI ON

Tangible fixed assets
Thousands of yen

Beginning ofterm

Increase

Decrease

End of term

End of term,
net

Depreciation
Accumulated

Current

Tangible fixed assets
Buildings

3,507,299

26,979-3,534,278

1,717,374

103,986

1,816,904

Structures

191,175

1,275-

192,451

152,416

6,991

40,034

Machinery and equipment

216,723

1,665-

218,388

133,845

24,68884,543

Vehicles and delivery equipment

18,304-

5,980

12,324

10,554933

1,769

Tools, appliances and fixtures

1,633,514

150,796

27,754

1,756,557

1,510,103

130,144

246,453Land

3,496,763--

3,496,763--

3,496,763-

28,822

28,822----

9,063,782

209,538

62,556

9,210,764

3,524,295

266,7435,686,468

Patents---

25,423

11,147

3,185

14,276

Telephone subscription rights

-

-

-

15,214--

15,214

Software---216,891

62,85816,499154,032

Software under development

-

-

-

18,921--

18,921---

276,450

74,006

19,685

202,444

69,988

6,670

5,580

71,07759,465

4,033

11,612

Construction in progress

Intangible fixed assets

Long-term prepaid expenses

Reserves
Beginning ofterm

Increase

Decrease

End of term

Allowance for doubtful accounts

152,236

30,432

62,716

119,951

Reserve for bonuses

237,228

293,780

237,228

293,780

Reserve for directors' retirement allowances

503,954

35,62916,843522,741

Thousands of yen

43

MARS

ENGINEERING

CORP ORATI ON

Accounting Policies
Summary of accounting policies: consolidated
Basis of presentation

Japanese GAAP

Marketable securities andinvestments in securities

Bonds held to maturity: cost amortization method (straight-line)
Other securities:
Quoted securities: The market value method is applied, based on the market value
as of the fiscal year-end. The entire positive or negative valuation difference with thepurchase price is booked directly as shareholders’ equity, and the cost of securities
sold is calculated using the moving-average method.
Unquoted securities: valued at cost using the moving-average method

Inventories

Valued at cost using the moving-average method

Depreciation

Tangible fixed assets: declining-balance method
Provided, however, that buildings acquired after April 1, 1998 (excluding
appurtenances) and assets used in hotel operations are depreciated on astraight-line basis.
Intangible fixed assets:
Software for sale: amortized over a period of three years from the commencementof sales, based on the projected number of sales. However, if the amount calculatedon this basis is less than straight-line amortization over the estimated economic lifeof the software, then the latter is recognized as the minimum amount ofamortization.
Other: straight-line method
Amortization of software for internal use is based on the period of potential use (5years); patent rights are amortized over 5 years.
Long-term prepaid expenses: amortized in equal installments over the period
coveredAllowance for doubtful accounts

Reserve for bonuses

To provide for potential losses from doubtful accounts, the Company recognizes anamount calculated on the basis of a historical bad debt ratio for general accounts
receivable, plus an amount for specific accounts for which collection appears
doubtful.
Recognition of the expense for the current term, based on the estimated bonus
expense for the bonus period

Retirement benefit accounting

To provide for employees’ retirement benefits, the Company recognizes an amountbased on retirement benefit liabilities and estimated pension assets as of the end of
the fiscal year to March 2005.

Opinion of independent auditors

Auditors: Tohmatsu & Co.
Opinion: unqualified

44

MARS

ENGINEERING

CORP ORATI ON

Summary of accounting policies: nonconsolidated
Basis of presentation
Marketable securities andinvestments in securities

Inventories
Depreciation

Japanese GAAP
Bonds held to maturity: cost amortization method (straight-line)
Shares in subsidiaries and affiliated companies: valued at cost using the moving
average method
Other securities:
Quoted securities: The market value method is applied, based on the market value
as of the fiscal year-end. The entire positive or negative valuation difference with thepurchase price is booked directly as shareholders’ equity, and the cost of securities
sold is calculated using the moving-average method.
Unquoted securities: valued at cost using the moving-average method
Merchandise, finished goods, work in process, raw materials and supplies: valued atcost using the moving-average method
Tangible fixed assets: declining-balance method
Provided, however, that buildings acquired after April 1, 1998 (excluding
appurtenances) are depreciated on a straight-line basis.
Intangible fixed assets:
Software for sale: amortized over a period of 3 years from the commencement ofsales, based on the projected number of sales. However, if the amount calculatedon this basis is less than straight-line amortization over the estimated economic lifeof the software, then the latter is recognized as the minimum amount ofamortization.
Others: straight-line method
Amortization of software for internal use is based on the period of potential use (5years); patent rights are amortized over 5 years.
Long-term prepaid expenses: amortized in equal installments over the period
coveredAllowance for doubtful accounts

To provide for potential losses from doubtful accounts, the Company recognizes anamount calculated on the basis of a historical bad debt ratio for general accounts
receivable, plus an amount for specific accounts for which collection appears
doubtful.

Reserve for bonuses

Recognition of the expense for the current term, based on the estimated bonus
expense for the bonus period

Reserve for directors' retirement
allowances
Retirement benefit accounting

Recognition of the full amount of liability at term-end based on employment
regulations
To provide for employees’ retirement benefits, the Company recognizes an amountbased on retirement benefit liabilities and estimated pension assets as of the end of
the fiscal year to March 2005.

Opinion of independent auditors

Auditors: Tohmatsu & Co.
Opinion: unqualified

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Share-related Information
Shares in issue
Class of shares

CommonNumber of shares authorized

67,620,000

IssuedAs of March 31, 2005

22,720,000

As of June 30, 2005

22,720,000

Stock exchange listings

Tokyo Stock Exchange, First Section

Comments-

Changes in common stock and number of shares outstanding
Thousands of shares
Thousands of yen
Date

Shares outstanding
Increase or
decrease
BalanceCommon stock
Increase or
decrease
Balance

Additional paid-in capital
Increase or
decrease
Balance Remarks

December 24, 1999

1,200

11,3602,433,600

7,934,100

2,432,400

September 17, 2004

11,36022,720-7,934,100-

8,371,830 Public offering of shares
8,371,830 Split 2 for 1

Shareholders by type of investor
Type of investor;
Hundred shares

Number ofshareholders

Number of units
owned% owned---Financial institutions

50

44,715

19.68

Securities companies

37

1,984

0.87

Business and other corporations

59

44,642

19.65

Non-residents (businesses and corporations)93

35,574

15.66

Non-residents (individuals)

1

2

0.00

5,899

100,280

44.14

6,139

227,197

100.00-300-

National and local government agencies

Individuals and others

Shares less than one unit

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ENGINEERING

CORP ORATI ON

Largest shareholders
Name

Thousands ofshares owned

Held in trust
accounts% of shares
outstanding

EM Planning

4,250.0

18.71

Hirokazu Matsunami

1,405.6

6.19

Japan Trustee Services Bank, Ltd. (Trust Account)

1,203.5

1,028.3

5.30

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

1,165.1

786.6

5.13

Kayoko Matsunami

1,028.0

4.52

Akihiro Matsunami

1,000.0

4.40

Mizuho Trust & Banking Co., Ltd., employee pension
trust; sub-trustee, Tokyo Tomin Bank, Ltd. asset
management service trust for sub-trustees

600.0

2.64

Shigeo Komiya

490.0

2.16

Teruo Gomi

450.0

1.98

Mika Nagai

432.0

1.90

12,024.2

52.92

Share information
Fiscal year-end

March 31

Ex-rights date

March 31

Ex-rights date for interim dividend

September 30

Annual general meeting of shareholders

June

Trading unit

100 shares

Types of share certificates

100, 1,000 and 10,000 shares

Transfer agent

The Sumitomo Trust & Banking Co., Ltd.
1-4-4, Marunouchi, Chiyoda-ku, Tokyo

Publication of record

Nihon Keizai Shimbun

By a resolution adopted at the 31st Regular General Shareholders Meeting held on June 29, 2005, the Company amended its Articles ofIncorporation with respect to official announcements. The gist of the amendment is as follows: “The Company’s official announcements
shall be made electronically. However, when matters arise which cannot be conveyed electronically or when electronic announcements
cannot be made for some other justifiable reason, the Company shall make its official announcements through the Nihon Keizai
Shimbun.”The Company’s electronic announcements can be accessed through the Company’s home page, which is located at:
http://www.mars-eng.co.jp/kessan/index.html.

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Contact
Toshiaki Sato
Executive Officer
Accounting Department
Mars Engineering Corporation
1-10-7, Shinjuku, Shinjuku-ku,
Tokyo, Japan
Telephone: 81-3-3352-8555
Facsimile: 81-3-3351-7368

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CORP ORATI ON

MARS ENGINEERING CORPORATION
1-10-7, Shinjuku, Shinjuku-ku, Tokyo 160-0022
Phone : 81-3-3352-8555
Facsimile : 81-3-3351-7368
URL : http://www.mars-eng.co.jp

Printed in Japan