Japan Transcity Corporation
Consolidated Financial Statements
March 31, 2010 and 2009

Independent Auditors' Report

To theBoard of Directors of Japan Transcity Corporation:

We have audited the accompanying consolidated balance sheets of Japan Transcity Corporation andconsolidated subsidiaries as of March 31, 2010 and 2009, and the related consolidated statements ofincome, changes in net assets and cash flows for the years then ended expressed in Japanese yen.
These consolidated financial statements are the responsibility of the Company’s management. Our
responsibility is to independently express an opinion on these consolidated financial statements basedon our audits.
We conducted our audits in accordance with auditing standards generally accepted in Japan. Thosestandards require that we plan and perform the audit to obtain reasonable assurance about whether thefinancial statements are free of material misstatement. An audit includes examining, on a test basis,
evidence supporting the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by management, as well as
evaluating the overall financial statement presentation. We believe that our audits provide a
reasonable basis for our opinion.
In our opinion, the consolidated financial statements referred to above present fairly, in all material
respects, the financial position of Japan Transcity Corporation and subsidiaries as of March 31, 2010
and 2009, and the results of their operations and their cash flows for the years then ended, inconformity with accounting principles generally accepted in Japan.
The U.S. dollar amounts in the accompanying consolidated financial statements with respect to theyear ended March 31, 2010 are presented solely for convenience. Our audit also included thetranslation of yen amounts into U.S. dollar amounts and, in our opinion, such translation has been
made on the basis described in Note 1 to the consolidated financial statements.

KPMG AZSA & Co.
Nagoya, Japan
June 29, 2010

Japan Transcity Corporation and Consolidated Subsidiaries
Consolidated Balance Sheets
March 31, 2010 and 2009

Millions of yen
2010
2009
Current assets:
Cash and cash equivalents (Note 3)
Short-term investments (Notes 3,4 and 5)
Trade receivables (Note3) :Notes
Accounts
Allowance for doubtful accounts¥

Inventories
Deferred tax assets (Note 10)
Other current assets
Total current assets

Property and equipment (Note 5):Land
Buildings and structures
Machinery and equipment
Vehicles and vessels
Construction in progress
Total property and equipment
Less accumulated depreciation
Net property and equipment

Investments and other assets:
Investment securities (Notes 3 and 4)
Investments in unconsolidated subsidiaries andaffiliates
Deferred tax assets (Note 10)
Lease deposits
Other assets
Allowance for doubtful accounts
Total investments and other assets

Total assets¥

10,878395

10,702
251$

116,968
4,247

545
11,732(23)
12,25496480
1,333
25,436611
10,352(16)
10,947
117
472
1,449
23,9385,860
126,151(247)
131,764
1,032
5,161
14,334
273,506

30,15047,07011,981
6,922
34
96,157(46,269)
49,88829,02847,149
11,2047,118
194,500(44,177)
50,323324,193
506,129
128,828
74,430366
1,033,946(497,516)
536,430

5,728

5,337

61,591

3,937
621
931
2,021
(16)
13,222

3,442
701
978
1,731
(35)
12,15442,333
6,678
10,011
21,731(172)
142,172

88,546

See accompanying Notes to Consolidated Financial Statements.

-2-¥

Thousands of
U.S. dollars
2010¥

86,415$952,108

Millions of yen
2010
2009
Current liabilities:
Short-term borrowings (Notes 3 and 5)¥
Current maturities of long-term debt (Notes 3 and 5)
Trade payables (Note 3) :Notes
Accounts
Accrued expenses
Income taxes payable
Other current liabilities
Total current liabilities
Long-term debt (Notes 3 and 5)
Employee retirement benefit liability (Note 6)
Guarantee deposits received (Note 3)
Deferred tax liabilities for revaluation
Deferred tax liabilities (Note 10)
Accrued severance indemnities for directors andcorporate auditors
Other long-term liabilities
Total liabilities
Commitments and contingent liabilities (Notes 8 and 9)
Net assets (Note 7):
Shareholders’ equity:
Common stock: 240,000,000 shares authorized
and 67,142,417 shares issued
Capital surplus
Retained earnings
Less treasury stock, at cost: 2,179,265 shares in2010 and 2,169,742 shares in 2009
Total shareholders’ equity
Accumulated losses from valuation and translation
adjustment
Minority interests
Total net assets
Total liabilities and net assets

¥

-3-

4,058
3,599

¥

3,661
3,495

Thousands of
U.S. dollars
2010$

43,634
38,699

1,135
5,861
6,996
1,530
844
1,552
18,579

1,232
5,027
6,259
1,605
123
1,289
16,432

12,20463,02275,226
16,452
9,075
16,688
199,774

21,220
1,853
3,935
5,281
883

22,884
2,015
4,115
5,281
528

228,172
19,92542,31256,785
9,495

43
540
52,33452
663
51,970462
5,806
562,731

8,428
6,735
22,458

8,428
6,735
20,93390,62472,419241,484(944)
36,677(941)
35,155(10,150)
394,377(1,487)
1,022
36,212(1,731)
1,021
34,445(15,989)
10,989389,377

88,546¥86,415$952,108

Japan Transcity Corporation and Consolidated Subsidiaries
Consolidated Statements of Income
For the Years Ended March 31, 2010 and 2009

Operating revenue (Note 12)¥

Operating costs and expenses(Notes 6, 9 and 12)
Operating income
Other income (expenses):
Interest and dividend income
Interest expenses
Equity in net earnings of unconsolidated
subsidiaries and affiliates
Loss on sale or disposal of property andequipment
Impairment loss on fixed assets (Note 2(i))
Other, net
Income before income taxes andminority interests
Income taxes:
Current
Deferred
Total income taxes
Less minority interests in net income of
consolidated subsidiaries
Net income¥

Millions of yen
2010
2009

Thousands of
U.S. dollars
2010

76,446$¥82,49673,0793,367

80,1782,318

785,796
36,204

205
(388)

230
(391)

2,204
(4,172)

289

349

3,108

(89)
80
97

(61)
(47)
2
82

(957)
860
1,043

3,464

2,400

37,247

1,074
292
1,366

514
382
896

11,5483,140
14,688

21

51

226

2,077

¥

1,453

$

Yen
Per share:
Net income:-Basic-Diluted
Cash dividends

¥

31.98
8.50

See accompanying Notes to Consolidated Financial Statements.

-4-822,000¥

22,333

U.S. dollars

22.21
21.03
8.50

$

0.34
0.09

Japan Transcity Corporation and Consolidated Subsidiaries
Consolidated Statements of Changes in Net Assets
For the Years Ended March 31, 2010 and 2009
Accumulated (losses) gains from valuationand translation adjustment

Shareholders' equity
Number ofshares ofcommonstock issued

Balance at March 31, 2008
Net income for the year
Cash dividends
Increase in retained earnings upon changes inscope of consolidation
Purchase of treasury stock and fractional shares, net
Reversal of land revaluation decrement
Net changes other than shareholders’ equity
Balance at March 31, 2009
Net income for the year
Cash dividends
Purchase of treasury stock and fractional shares, net
Net changes other than shareholders’ equity
Balance at March 31, 2010

67,142,417
67,142,417
67,142,417

Total
gains onTreasury shareholders’ available-forequity
stock
sale securities
Millions of yen

Landrevaluation
decrement

Foreigncurrencytranslation
adjustment

¥

¥

¥

Net unrealized

Common
stock

¥

¥

8,428
8,428
8,428

Capitalsurplus

¥

¥

6,738
(3)
6,735
6,735

Retainedearnings¥¥

19,978
1,453
(558)
59
1
20,933
2,077(552)
22,458

¥

(645)
(296)
(941)
(3)
(944)

¥

¥

34,499
1,453
(558)
59
(299)
1
35,155
2,077
(552)
(3)
36,677

¥

¥

1,839
-

(2,018)-(1,395)
444
198
642

(1)
(2,019)(2,019)

¥

4,774
2,129
6,903

$ (21,710)$ (21,710)

¥

84
(240)
(156)
46
(110)

Total
accumulated
losses fromvaluation andtranslation
adjustment

¥

¥

(95)
(1,636)(1,731)244(1,487)

Minority
interests

¥

¥

1,118
-

Total net
assets¥35,522
1,453
(558)

(97)
1,021
1
1,022

59
(299)
1
(1,733)34,445
2,077
(552)
(3)
245
36,212¥

10,978
11
10,989$ 370,376
22,333(5,935)(32)
2,635$ 389,377

Thousands of U.S. dollars
Balance at March 31, 2009
Net income for the year
Cash dividends
Purchase of treasury stock and fractional shares, net
Net changes other than shareholders’ equity
Balance at March 31, 2010$$

90,62490,624$$72,41972,419$ 225,086
22,333(5,935)$ 241,484$ (10,118)(32)$ (10,150)

See accompanying Notes to Consolidated Financial Statements.

-5-$ 378,011
22,333(5,935)(32)$ 394,377

$

$

$

$

(1,677)495(1,182)$ (18,613)
2,624$ (15,989)$$

Japan Transcity Corporation and Consolidated Subsidiaries
Consolidated Statements of Cash Flows
For the Years Ended March 31, 2010 and 2009

Millions of yen
2010
2009
Cash flows from operating activities:
Income before income taxes and minority interests
Adjustments for:
Depreciation
Net reversal of employee retirement benefit liability
Loss on sale or disposal of property and equipment
Impairment loss on fixed assets(Increase) decrease in trade receivables
Decrease (increase) in inventories
Increase (decrease) in trade payables
Increase in prepaid pension cost
Other, net
Sub-totalInterest and dividend received
Interest paid
Income taxes paid
Net cash provided by operating activities

¥

3,464

¥

2,400

Thousands of
U.S. dollars
2010$

37,247

3,121
(164)
89
(1,281)
22
852
(332)
(189)
5,582
248
(388)
(378)
5,064

3,137
(728)
61
47
2,861
(37)
(1,968)
(79)
(578)
5,116
358
(401)
(755)
4,318

33,559(1,763)957(13,774)
237
9,161(3,570)(2,032)60,022
2,667(4,172)(4,065)54,452

Cash flows from investing activities:
Increase in property and equipment and intangible assets
Decrease in property and equipment and intangible assets
Increase in investments in subsidiaries(Increase) decrease in short-term investments
Other, net
Net cash used in investing activities(2,771)
138
(10)
(141)
(325)
(3,109)(5,444)
95
(23)
128
(214)
(5,458)(29,796)
1,484
(107)
(1,516)(3,495)(33,430)

Cash flows from financing activities:
Increase in long-term debt
Repayment of long-term debt
Redemption of bonds
Increase in short-term borrowings
Purchase of treasury stock and fractional shares, net
Dividends paid
Other, net
Net cash (used in) provided by financing activities
Effect of exchange rate changes on cash and cash equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of year
Increase in cash and cash equivalents upon inclusion of additional subsidiary on consolidation
Cash and cash equivalents at end of year

2,000
(2,073)(1,500)
397
(3)
(552)
(83)
(1,814)35
176
10,702
10,878

11,050(2,364)(8,000)
986
(299)
(558)
(46)
769
(139)
(510)
11,14369
10,70221,505(22,290)(16,129)4,269(32)(5,935)(893)(19,505)
376
1,893
115,075
116,968¥

See accompanying Notes to Consolidated Financial Statements.
-6-

¥

$

Japan Transcity Corporation and Consolidated Subsidiaries
Notes to Consolidated Financial Statements

1. Basis of Consolidated Financial Statements
The accompanying consolidated financial statements of Japan Transcity Corporation (the“Company”) and its consolidated subsidiaries (together with the Company, the “Japan Transcity
Group”) have been prepared in accordance with the provisions set forth in the Financial Instrumentand Exchange Law of Japan and its related accounting regulations and in conformity withaccounting principles generally accepted in Japan (“Japanese GAAP”), which are different incertain respects as to application and disclosure requirements from International Financial
Reporting Standards.
The accounts of the Company’s overseas subsidiaries are based on their accounting records
maintained in conformity with generally accepted accounting principles prevailing in therespective countries of domicile. The accompanying consolidated financial statements have been
restructured and translated into English from the consolidated financial statements of the Company
prepared in accordance with Japanese GAAP and filed with the appropriate Local Finance Bureauof the Ministry of Finance as required by the Financial Instrument and Exchange Law of Japan.
Certain supplementary information included in the statutory Japanese language consolidated
financial statements, but not required for fair presentation, is not presented in the accompanying
consolidated financial statements.
Comparative figures have been reclassified to conform to the current year’s presentation.
The translation of the Japanese yen amounts into U.S. dollar amounts is included solely for theconvenience of readers outside Japan, using the prevailing exchange rate at March 31, 2010, which
was approximately ¥93 to U.S. $1.00. The translation should not be construed as a representationthat the Japanese yen amounts have been, could have been or could in the future be converted into
U.S. dollars at this or any other rate of exchange.
2. Summary of Significant Accounting Policies(a) Principles of consolidation
The accompanying consolidated financial statements include the accounts of the Company and its
significant subsidiaries. Investments in significant unconsolidated subsidiaries and affiliates areaccounted for by the equity method. Investments in unconsolidated subsidiaries and affiliates notaccounted for by the equity method are stated at cost. Differences between the acquisition cost ofinvestments in subsidiaries and the underlying equity in their net assets, adjusted based on the fairvalue at the time of acquisition, are principally deferred as goodwill or negative goodwill andamortized over five years.
The number of consolidated subsidiaries, unconsolidated subsidiaries and affiliates for the years
ended March 31, 2010 and 2009 was as follows:
2010
2009
Consolidated subsidiaries:
Domestic
24
24
Overseas33
Unconsolidated subsidiaries and affiliates accounted forby the equity method
65
Unconsolidated subsidiaries stated at cost
14
13
Affiliates stated at cost
5
5

-7-

All intercompany accounts and transactions have been eliminated on consolidation.
The accompanying consolidated financial statements include the accounts of overseas consolidated
subsidiaries (three subsidiaries in 2010 and 2009). These overseas consolidated subsidiaries close
their books at December 31, three months earlier than the Company and the domestic consolidated
subsidiaries. The Company consolidated the overseas subsidiaries’ financial statements as of theiryear-end. Significant transactions for the period between the subsidiaries’ year-end and theCompany’s year-end are adjusted for on consolidation.
(Unification of Accounting Policies Applied to Foreign Subsidiaries for Consolidated Financial
Statements)
On March 17, 2006, the Accounting Standards Board of Japan issued Practical Issues Task Force
No. 18 “Practical Solution on Unification of Accounting Policies Applied to Foreign Subsidiaries
for Consolidated Financial Statements” (“PITF No. 18”). PITF No. 18 requires that accounting
policies and procedures applied by a parent company and its subsidiaries to similar transactions
and events under similar circumstances should, in principle, be unified for the preparation of theconsolidated financial statements. PITF No. 18, however, as a tentative measure, allows a parent
company to prepare consolidated financial statements using foreign subsidiaries’ financial
statements prepared in accordance with either International Financial Reporting Standards or U.S.
generally accepted accounting principles. In this case, adjustments for the following six items are
required in the consolidation process so that their impact on net income is accounted for inaccordance with Japanese GAAP unless the impact is immaterial.
(a) Goodwill not subject to amortization(b) Actuarial gains and losses of defined-benefit retirement plans recognized outside profit or loss(c) Capitalized expenditures for research and development activities(d) Fair value measurement of investment properties and revaluation of property, plant andequipment and intangible assets(e) Retrospective treatment of changes in accounting policies(f) Accounting for net income attributable to minority interests
The adoption of PITF No. 18 had no effect on the consolidated financial statements for the year
ended March 31, 2009.
(b) Cash equivalents
The Japan Transcity Group considers cash equivalents to be highly liquid debt instrumentspurchased with an original maturity of three months or less.
(c) Investments and marketable securities
The Japan Transcity Group classifies certain investments in debt and equity securities as“held-to-maturity”, “trading” or “available-for-sale”, the classification of which determines therespective accounting method as stipulated by the accounting standard for financial instruments.
Marketable securities with available market quotations for available-for-sale securities are stated atfair value and net unrealized gains or losses on these securities are reported as a component of net
assets, net of applicable income taxes. Gains and losses on the disposition of available-for-salesecurities are computed based on the moving-average method. Non-marketable securities without
available market quotations for available-for-sale securities are carried at cost determined by themoving-average method. Adjustments in carrying values of individual securities are charged toincome through write-downs, when a decline in value is deemed other than temporary.
(d) Accounting for derivatives
Derivatives are valued at fair value, if hedge accounting is not appropriate or where there is no
hedging designation, and the gains or losses on the derivatives are recognized in current earnings.

-8-

According to the special treatment permitted by the accounting standard for financial instruments,
hedging interest rate swaps are accounted for on an accrual basis and recorded net of interest
expenses generated from the hedged borrowings if certain conditions are met.
(e) Inventories
Inventories consisted of supplies and other.
method.

Supplies are stated at cost, using the moving-average(New accounting standard for inventories)
On July 5, 2006, the Accounting Standards Board of Japan issued ASBJ Statement No. 9,“Accounting Standard for Measurement of Inventories”. As permitted under the superseded
accounting standard, the Company and domestic consolidated subsidiaries previously statedinventories at cost. The new accounting standard requires that inventories held for sale in theordinary course of business be measured at the lower of cost or net realizable value. Replacement
cost may be used in lieu of the net realizable value, if appropriate.
The adoption of the new standard had no effect on the consolidated financial statements for theyear ended March 31, 2009.
(f) Allowance for doubtful accounts
An allowance for doubtful accounts is provided at the aggregate amount of estimated credit loss
based on an individual financial review of certain doubtful or troubled receivables and a generalreserve for other receivables calculated based on historical loss experience for a certain past
period.
(g) Property and equipment, and depreciation (except for leases)
Property and equipment, including significant renewals and additions, are stated at cost, anddepreciated principally by the declining-balance method at rates based on the estimated useful lifeof the asset. Buildings acquired on and after April 1, 1998 are depreciated by the straight-line
method. Property with the cost of not less than ¥100,000 but below ¥200,000 each is capitalized
and depreciated over three years on a straight-line basis.
Expenditures on maintenance and repairs are charged to operating income as incurred.
The capital gains directly offset against the acquisition costs of tangible fixed assets to obtain tax
benefits were ¥100 million ($1,075) for the year ended March 31, 2010 and 2009.
(Additional information)
In accordance with the amendment of the Corporation Tax Law of Japan, the Company and its
domestic consolidated subsidiaries changed the useful life of machinery from a range of 5 to 7
years to 10 to 12 years based on the reassessment of the useful lives in light of the change in the
Corporation Tax Law of Japan. As a result, operating income and income before income tax andminority interests increased by ¥71 million for the year ended March 31, 2009 as compared withthe previous accounting method. The effects on segment information are described in Note 12.
(h) Accounting for leases
Prior to April 1, 2008, the Company and its domestic consolidated subsidiaries accounted forfinance leases which do not transfer ownership of the leased property to the lessee as operatingleases with disclosure of certain “as if capitalized” information in the notes to the consolidated
financial statements.
On March 31, 2007, the Accounting Standards Board of Japan issued Statement No. 13,-9-

“Accounting Standard for Lease Transactions” and Guidance No. 16, “Guidance on AccountingStandard for Lease Transactions”. The new accounting standards require that all finance leasetransactions be treated as capital leases.
Effective April 1, 2008, the Company and its domestic consolidated subsidiaries adopted the new
accounting standards for finance leases commencing after March 31, 2008 and capitalized assets
used under such leases, except for certain immaterial or short-term finance leases, which areaccounted for as operating leases. As permitted, finance leases which commenced prior to April
1, 2008 and have been accounted for as operating leases, continue to be accounted for as
operating leases with disclosure of certain “as if capitalized” information.
The adoption of the new standards had no effect on income or loss for the year ended March 31,
2009.
(i) Accounting standard for impairment of fixed assets
The Company and its domestic consolidated subsidiaries adopted the“Accounting Standard for
Impairment of Fixed Assets”issued by the Business Accounting Council of Japan and the related
practical guidance issued by ASBJ. The standard requires that fixed assets be reviewed for
impairment whenever events or changes in circumstances indicate that the carrying amount of anasset may not be recoverable. Impairment loss is to be recognized in the income statement by
reducing the carrying amount of the impaired asset or group of assets to the recoverable amount,measured as the higher of the asset’s net selling price or value in use. Fixed assets include land,buildings and other forms of property, as well as intangible assets, and are to be grouped at thelowest level for which there are identifiable cash flows. For the purpose of recognition andmeasurement of impairment loss, fixed assets are principally grouped into cash-generating units,
such as regional business divisions, other than idle or unused property. For the year ended March
31, 2009, the Japan Transcity Group recognized impairment loss as follows:
Millions ofyen
Buildings and structures to be disposed¥

47(j) Revaluation of land
In accordance with the Law Concerning Revaluation of Land (“Law”), the Company elected the
one-time revaluation to restate the cost of land used for the Company’s business at values
rationally reassessed effective on March 31, 2002, reflecting adjustments for land shape and otherfactors and based on municipal property tax bases. According to the Law, an amount equivalent
to the tax effect on the difference between the original book value and the reassessed value isrecorded as deferred tax liability for revaluation account. The rest of the difference, net of the tax
effect and minority interests portion, is recorded as a component of the net assets section in theland revaluation decrement account in the accompanying consolidated balance sheets. At March
31, 2010 and 2009, the difference between the carrying value of land used for the Company’sbusiness after reassessment and the current market value at the fiscal year-end amounted to ¥7,826
million ($84,151 thousand) and ¥7,223 million, respectively.
(k) Employee retirement benefits
Employees who terminate their service with the Japan Transcity Group are entitled to retirement
benefits generally determined by current basic rates of pay, length of service and conditions underwhich the termination occurs.
In accordance with the accounting standard for employee retirement benefits, the Japan Transcity
Group recognizes retirement benefits for employees, including pension cost and related liability,- 10 -

based on actuarial present value of projected benefit obligation using actuarial appraisal approachand the value of pension plan assets available for benefits at the fiscal year-ends. Unrecognizedactuarial differences as changes in the projected benefit obligation or pension plan assets resulting
from the experience different from that assumed and from changes in the assumptions areamortized on a straight-line basis over ten years, a period within the remaining service years of theemployees, from the year after which they arise. Unrecognized prior service cost is amortizedusing the straight-line method over ten years from the year in which it occurs.
(l) Accrued severance indemnities for directors and corporate auditors
The Japan Transcity Group may pay severance indemnities to directors and corporate auditors,
which are subject to the approval of the shareholders. The Japan Transcity Group has provided forthe full amount of the liabilities for directors’ and corporate auditors’ severance indemnities at therespective balance sheet dates.
(Additional information)
The Company has abolished the system of retirement benefits for directors and corporate auditors
and was approved to pay the liabilities which were recognized prior to the abolishment by the
resolution of shareholder’s meeting at June 27, 2008. With this change, the liabilities in “Accrued
severance indemnities for directors and corporate auditors” were reclassified to “Other long-term
liabilities”.
(m) Translation of foreign currency accounts
Receivables, payables and securities, other than stocks of subsidiaries and certain other securities,
are translated into Japanese yen at year-end exchange rates. Transactions in foreign currencies arerecorded at the prevailing exchange rates on the transaction dates. Resulting translation gains orlosses are included in current earnings.
For financial statement items of overseas consolidated subsidiaries, all asset and liability accounts
are translated into Japanese yen by applying the exchange rates in effect at the fiscal year-end.
All income and expense accounts are translated at the average rates of exchange prevailing during
the fiscal year. Translation differences are reported as foreign currency translation adjustment in acomponent of net assets in the accompanying consolidated balance sheets.
(n) Income taxes
Income taxes are accounted for under the asset and liability method. Deferred tax assets andliabilities are recognized for the future tax consequences attributable to differences between the
carrying amounts of existing assets and liabilities and their respective tax bases and operating loss
carryforwards. Deferred tax assets and liabilities are measured using the enacted tax rates expected
to apply to taxable income in the years in which those temporary differences are expected to be
recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates isrecognized in the period that includes the enactment date.
(o) Enterprise taxes
The Japan Transcity Group records enterprise taxes based on the “added value” and “capital”
amounts when levied as size-based corporate taxes for local government enterprise taxes, which
are included in selling, general and administrative expenses.
(p) Appropriations of retained earnings
Cash dividends are recorded in the fiscal year when a proposed appropriation of retained earnings
is approved by the Board of Directors and/or shareholders.

- 11 -

(q) Per share data
Basic net income per share is computed by dividing income available to common shareholders by
the weighted-average number of shares of common stock outstanding during the fiscal year.
Diluted net income per share is computed assuming convertible bonds were converted at the timeof issue unless having anti-dilutive effects. Cash dividends per share for each fiscal year in theaccompanying consolidated statements of income represent dividends declared by the Company asapplicable to the respective years. Diluted net income per share is not presented as of March 31,
2010 due to not having any dilutive shares.
3.

Fair values of financial instruments(Additional information)
Effective from the fiscal year ended March 31, 2010, the Company and its domestic subsidiaries
adopted the revised Accounting Standard, “Accounting Standard for Financial Instruments”(Accounting Standards Board of Japan (“ASBJ”) Statement No. 10 revised on March 10, 2008)
and the “Guidance on Disclosures about Fair Value of Financial Instruments” (ASBJ Guidance
No.19 revised on March 10, 2008). Information on financial instruments for the year ended March
31, 2010 required pursuant to the revised accounting standards is as follows.
(a) Qualitative information on financial instruments① Policies for using financial instruments
The capital operation of the Company is limited to short-term deposits and Company
raises capital through bank loans and bond issuances. Derivative instruments are mainly
used for hedging against variable interest rate risk and compensate a loss when an
earthquake occurs, not for speculation details.
② Details of financial instruments, risks, and risk management system
Trade receivables (notes and accounts) carry credit risk of trading partners. Regarding thesaid risk, pursuant to internal regulations of the Company, due dates and balances aremanaged appropriately for each counterparties and the credit risks of main trading
partners are identified every half year.
Although investments in securities are exposed to market price fluctuation risk, theCompany regularly understands fair values of shares of companies with which theCompany has business relationships.
Trade payables (notes and accounts) are due within one year.
With regard to loans payable, short-term loan payable are mainly used to raise capital for
operating dealings and long-term loans payable fund capital investment.
Loans with a variable interest rate involved the risk of an interest rate fluctuation. For
hedging purposes, the Japan Transcity Group is a party to derivative instruments such as
interest rate swap contracts in the normal course of business to reduce its own exposure
to fluctuations in interest rates. The method of evaluating the effectiveness of the hedge isomitted because of the exceptional treatment of interest rate swaps.
Guarantee deposits received is mainly deposited money of golf club.
The Company entered into a derivative contract with high creditworthiness financial
institutions to reduce credit risk.
The Japan Transcity Group controls liquidity risk associated with operating payables andloans by cash management system which controls the capital of the group unitary.
③ Supplemental information on fair values
Contract amounts of derivative instrument in “Fair value of financial instruments” don’t
show its own marketable price.
(b) Fair values of financial instruments
Book values of the financial instruments included in the consolidated balance sheet and theirvalues at March 31, 2010 are as follows. Some financial instruments are excluded because itis extremely difficult to identify their fair value.
- 12 -

Consolidatedbalance sheet
amounts(1)Cash and cash equivalents(2)Short-term investments(3)Trade receivables(4)Investment securities
marketable securities
Total assets(1)Trade payables(2)Short-term borrowings(3)Long-term debt
Total liabilities

¥

¥
¥

¥

fair value
Millions of yen

differences

10,878 ¥395
12,277

10,878 ¥395
12,277-

4,924
28,474 ¥6,996 ¥
4,058
24,81935,873 ¥4,924
28,474 ¥6,996 ¥
4,058
24,78735,841 ¥

(32)
(32)

Thousands of U.S. dollars(1)Cash and cash equivalents(2)Short-term investments(3)Trade receivables(4)Investment securities
marketable securities
Total assets(1)Trade payables(2)Short-term borrowings(3)Long-term debt
Total liabilities

$

$
$

$

116,968 $
4,247
132,011

116,968 $
4,247
132,011-52,946306,172 $
75,226 $43,634
266,871385,731 $

52,946306,172 $
75,226 $43,634
266,527
385,387 $

(344)
(344)

Note1. Method of calculating fair value of financial instruments and other mattersconcerning securities and derivatives.
Assets(1) Cash and cash equivalents, (2) Short-term investments and (3) Trade receivables
The carrying values of cash and cash equivalents, short-term investments and tradereceivable are approximate fair value because of their short maturities.
(4) Investment securities
The fair values of listed equity shares in investment securities are based on quoted
market prices. For matters concerning securities according to the purpose for which
they are held, please see Note 4.
Liabilities(1) Trade payables and (2) Short-term borrowings
The carrying values of trade payables and short-term borrowings are approximate
fair value because of their short maturities.
(3) Long-term debt
The fair value of long-term debt is computed on the basis of the total amount ofprincipal and interest discounted at the interest rate applicable to new loans carrying
the same conditions.
Derivatives① Derivative transactions to which hedge accounting is not applied: Not applicable.
② Derivative transactions to which hedge accounting is applied: The contract
amount or amount equivalent to the principal set forth in the contract, as of theconsolidated closing date, are as follows:- 13 -

Method of hedge
accounting
Hedge accounting(Exceptional
treatment ofinterest rate swap)

Method of hedge
accounting
Hedge accounting(Exceptional
treatment ofinterest rate swap)

Type of derivativetransaction
Interest rate swap
(fixed rate
payment, floating
rate receipt)

Type of derivativetransaction
Interest rate swap
(fixed rate
payment, floating
rate receipt)

Contract
amountdue
afterContract
one yearamountMillions of yen

Hedgeditem
Long-term
debt

Hedgeditem
Long-term
debt¥

18,189¥15,689 ¥Contract
amountContract
due after
one yearamountThousands of U.S. dollars
$

Fair
value

(278)

Fair
value

195,581 $ 168,699 $ (2,989)

The Company uses the price presented by financial institution.
Note2. Financial instruments whose fair value cannot be reliably determined.
Thousand of U.S.
dollars
Millions of yen
Non-marketable securities
¥
804
$
8,645
(*1)
Guarantee deposits received
¥
3,935
$
42,312(*2)
Derivative relating to
¥
14
$
151
earthquakes (*3)(*1) It is extremely difficult to determine the fair values of non-marketable securities
because they do not have quoted market prices and their future cash flow cannot be
estimated. Therefore, they are excluded from (4) Investment securities.
(*2)

It is extremely difficult to determine the fair values of guarantee deposits received
because their scheduled redemption cannot be estimated.

(*3)

During the year ended March 31, 2007, the Company entered into a derivative
contract relating to earthquakes for hedging purposes. The outstanding contract
amount was ¥300 million ($3,226 thousand) at March 31, 2010 and 2009,
respectively. As the fair value for such a contract is not considered determinable,that derivative contract has not been accounted for at fair value.

Note3. Scheduled redemption amounts after the consolidated closing date for monetaryclaims and securities with maturity period.
Due afterone
Due in one
Due in one
Due after
year or lessyear
year or lessone year
Millions of yen
Thousand of U.S. dollars
Cash and cash equivalents ¥ 10,878¥$
116,968$
Short-term investments
395
4,247
Trade receivables
12,277132,011
Total¥ 23,550¥$
253,226$-- 14 -

4.

Investments
At March 31, 2010 and 2009, short-term investments consisted of time deposits with an original
maturity of more than three months.
At March 31, 2010 and 2009, investment securities consisted of the following:

Millions of yen
2010
2009
Marketable securities:
Equity securities
Other

¥

Other non-marketable securities
¥

4,916
8
4,924
804
5,728

¥

Thousands of
U.S. dollars
2010

4,393 $
7
4,400
937
5,337 $¥

52,86086
52,946
8,645
61,591Marketable investment securities classified as available-for-sale are stated at fair value withunrealized gains and losses excluded from the current earnings and reported as a net amount within
the net assets account until realized. At March 31, 2010 and 2009, gross unrealized gains andlosses for marketable securities classified as available-for-sale were as follows:

Cost

Available-for-sale securities at March 31, 2010:
Equity securities
¥
3,762
Other
10
¥
3,772
Available-for-sale securities at March 31, 2009:
Equity securities
¥
3,572
Other
10
¥
3,582

Cost

Available-for-sale securities at March 31, 2010:
Equity securities$
40,452
Other
107$
40,559- 15 -

Gross
Gross
unrealized
unrealized
gains
lossesMillions of yen

Fair andcarrying
value

¥

(219)
(2)
(221)

¥

(317)
(3)
(320)

¥

¥

¥
¥

1,373
1,373

1,138
1,138

¥
¥

¥
¥

¥

¥

4,916
8
4,924

4,393
7
4,400

Gross
Gross
unrealized
unrealized
gains
lossesThousands of U.S. dollars

Fair andcarryingvalue$$ 52,860
86$ 52,946$

14,763
14,763$ (2,355)(21)$ (2,376)

5.

Short-term Borrowings and Long-term Debt
At March 31, 2010 and 2009, short-term borrowings consisted of the following:

Millions of yen
2010
2009
Short-term bank loans and bank overdrafts withinterest rates ranging from 0.50% to 1.10%
per annum at March 31, 2010:
Unsecured¥

4,058 ¥

Thousands of
U.S. dollars
2010

3,661 $

43,634At March 31, 2010 and 2009, long-term debt consisted of the following:Thousands of
U.S. dollars
2010

Millions of yen
2010
2009
Zero coupon unsecured convertible bonds due
September 2009¥
Long-term loans from banks and other financial
institutions due through 2022 with interest rates
ranging from 0.86% to 6.97% per annum at
March 31, 2010:
Collateralized
UnsecuredLess current maturities
¥

-

378
24,441
24,819(3,599)21,220

¥

1,500

¥

409
24,47026,379(3,495)22,884

$

-

$

4,065
262,806
266,871(38,699)
228,172

At March 31, 2009, the current conversion price of zero coupon convertible bonds due September
2009 was ¥410 per share, all of which are subject to adjustment under certain circumstances,including stock splits. At March 31, 2009, the number of shares of common stock necessary forconversion of all convertible bonds outstanding was approximately 4 million.
The aggregate annual maturities of long-term debt at March 31, 2010 were as follows:
Millions ofyenYear ending March 31,
2011
2012
2013
2014
2015
2016 and thereafter¥¥- 16 -

Thousands of
U.S. dollars

3,599 $
887
7,723
4,073
1,125
7,412
24,819 $38,6999,537
83,043
43,796
12,097
79,699266,871

The aggregate annual maturities of long-term lease obligations at March 31, 2010 were as follows:
Millions ofyenYear ending March 31,
2011
2012
2013
2014
2015
2016 and thereafterThousands of
U.S. dollars

104 $
104
90
61
17
21
397 $

¥

¥

1,118
1,118
968
656
183
226
4,269

At March 31, 2010 and 2009, the following assets were pledged as collateral for short-termborrowings and long-term liabilities:

Millions of yen
2010
2009
Time deposits included in short-term
investments
Buildings and structures

¥

32
696

¥

Thousands of
U.S. dollars
2010

32 $
743

344
7,484

As is customary in Japan, substantially all loans from banks (including short-term loans) are madeunder general agreements which provide that, at the request of the relevant bank, the Japan
Transcity Group is required to provide collateral or guarantors (or additional collateral or
guarantors, as appropriate) with respect to the loans and that all assets pledged as collateral undersuch agreements will be applicable to all present and future indebtedness to the bank concerned.
The Japan Transcity Group has not received such requests. The general agreements further providethat the banks have the right, as indebtedness matures or becomes due prematurely by reason ofdefault thereon, to offset deposits at the banks against indebtedness due to the banks.
6.

Employee Retirement Benefits
The Company has defined benefit retirement plans that cover 100% of the retirement benefits forthe employees of the Company who terminate at the compulsory retirement age and 80% of otherretirement benefits of the Company. Some of the consolidated subsidiaries have similar retirement
benefit plans. In addition, two consolidated subsidiaries have a defined contribution pension planin certain pension funds organized by others.

- 17 -

The following table reconciles the benefit liability and net periodic retirement benefit expense asat or for the years ended March 31, 2010 and 2009:
Thousands ofMillions of yen
U.S dollars
2010
2009
2010
Reconciliation of benefit liability:
Projected benefit obligation
Less fair value of pension plan assets at endof yearUnrecognized actuarial differences (loss)
Unrecognized prior service cost of
retroactive benefits granted by the pension
plan amendment
Accrued retirement and severance benefits
Prepaid pension cost
Net amount of employee retirement
benefit liability recognized on the
consolidated balance sheets
Note:

¥

¥

12,014¥

12,969$129,183(9,565)2,449(1,723)(8,468)4,501(3,341)(102,850)
26,333(18,527)

358
1,084
769

418
1,578
437

3,850
11,656
8,269

1,853

¥

$

2,015

19,925

Projected benefit obligation of the consolidated subsidiaries was calculated using thesimplified calculation method as permitted by the accounting standard for employee
retirement benefits.
Thousands of
U.S dollars
2010

Millions of yen
2010
2009
Components of net periodic retirement benefit expense:¥
Service cost
Interest cost
Expected return on pension plan assets
Amortization of actuarial differences
Amortization of prior service cost
Net periodic retirement benefit expense
¥

446 ¥
223
(155)
(60)
437
891 ¥

575
234
(201)
153
(46)
715

$

$

4,796
2,398
(1,667)
(645)
4,699
9,581

Major assumptions used in the calculation of the above information for the years ended March 31,
2010 and 2009 were as follows:

Method to attribute the projected benefits tothe periods of service
Discount rate
Expected rate of return on pension plan assets
Amortization of actuarial differences
Amortization of prior service cost
7.

2010

2009

Straight-line method
2.0%
2.0%
10 years
10 years

Straight-line method
2.0%
2.0%
10 years
10 years

Net Assets
The Japanese Corporate Law (“the Law”) became effective on May 1, 2006, replacing the former
Japanese Commercial Code. The Law is generally applicable to events and transactions occurring
after April 30, 2006 and for fiscal years ending after that date.

- 18 -

Under Japanese laws and regulations, the entire amount paid for new shares is required to be
designated as common stock. However, a company may, by a resolution of the Board of
Directors, designate an amount not exceeding one-half of the price of the new shares as additional
paid-in capital, which is included in capital surplus.
Under the Law, in cases where a dividend distribution of surplus is made, the smaller of an amountequal to 10% of the dividend or the excess, if any, of 25% of common stock over the total of
additional paid-in capital and legal earnings reserve must be set aside as additional paid-in capitalor legal earnings reserve. Legal earnings reserve is included in retained earnings in theaccompanying consolidated balance sheets.
Under the Law, legal earnings reserve and additional paid-in capital can be used to eliminate or
reduce a deficit by a resolution of the shareholderｓ’meeting. Additional paid-in capital and legal
earnings reserve may not be distributed as dividends. All additional paid-in-capital and all legal
earnings reserve may be transferred to other capital surplus and retained earnings, respectively,
which are potentially available for dividends.
At March 31, 2010 and 2009, respectively, capital surplus principally consisted of additional
paid-in capital. In addition, retained earnings included legal earnings reserve of the Company inthe amount of ¥1,200 million ($12,903 thousand) at March 31, 2010and 2009, respectively.
The maximum amount that the Company can distribute as dividends is calculated based on the
non-consolidated financial statements of the Company in accordance with Japanese laws andregulations.
During the year ended March 31, 2010, the Company paid interim dividends of ¥4.00 per share.
In addition, at the annual shareholders’ meeting held on June 29, 2010, the shareholders approved
cash dividends of ¥4.50 per share, amounting to ¥292 million ($3,140 thousand). These
appropriations have not been accrued in the consolidated financial statements as of March 31, 2010
as such appropriations are recognized in the period in which they are approved by the shareholders.
8.

Contingent Liabilities
At March 31, 2010 and 2009, the Japan Transcity Group was contingently liable for guarantees ofindebtedness of others in the amounts of ¥994 million ($10,688 thousand) and ¥934 million,
respectively. Such amounts included the guarantees of indebtedness of 50%-ownded affiliates in
the amount of ¥601 million ($6,462 thousand) and ¥911 million at March 31, 2010 and 2009,
respectively.

9.

Lease Commitments (Contracted before March 31, 2008)
The Japan Transcity Group leases, as lessee, land and buildings to be used for office spaces andwarehouses principally under long-term cancelable or non-cancelable operating lease agreements.
The Japan Transcity Group also leases computer equipment, other equipment and vehicles underleases which are not generally cancelable.
Total rental and lease expenses, including cancelable and non-cancelable leases, for the years
ended March 31, 2010 and 2009 were ¥6,241 million ($67,108 thousand) and ¥4,641 million,
respectively. For the years ended March 31, 2010 and 2009, the lease expenses for non-cancelable
lease agreements which were categorized as financing leases amounted to ¥491 million ($5,280
thousand) and ¥516 million, respectively.
The aggregate future minimum payments for non-cancelable operating leases and financing leases,
including the imputed interest, at March 31, 2010 and 2009 were as follows:- 19 -

Thousands of
U.S. dollars
2010

Millions of yen
2010
2009
Operating leases:
Due within one year
Due after one year

¥

742
2,591
3,333

¥
Financing leases:
Due within one year
Due after one year

¥

448
1,506
1,954

¥

¥

757
3,343
4,100

¥
¥

494
1,956
2,450

¥

$

7,979
27,86035,839$$

4,817
16,19421,011$

10. Income Taxes
The tax effects of temporary differences that gave rise to a significant portion of the deferred tax
assets and liabilities at March 31, 2010 and 2009 were as follows:

Millions of yen
2010
2009
Deferred tax assets:
Enterprise tax accruals¥
Accrued bonuses to employees
Employee retirement benefit liability
Accrued severance indemnities for directors andcorporate auditors
Long-term accounts payable
Intercompany capital gains
Net operating loss carryforwards
Impairment loss on fixed assets
Other
Less valuation allowance
Deferred tax assets
Deferred tax liabilities:
Deferred capital gain
Unrealized gains on available-for-salesecurities
Other
Deferred tax liabilities
Net deferred tax assets

¥

66
407
1,355

¥

11
446
1,526

Thousands of
U.S. dollars
2010
$

710
4,376
14,570

18
72
275
196
1,187
330
3,906
(1,582)
2,324

21
148
322
175
1,187
381
4,217
(1,556)
2,661

194
774
2,957
2,108
12,7633,548
42,000(17,011)24,989

1,215

1,263

13,064

466
425
2,106
218

333
420
2,016
645

5,011
4,570
22,6452,344¥$

At March 31, 2010 and 2009, deferred tax assets and liabilities were as follows:

Millions of yen
2010
2009
Deferred tax assets:
Current
Non-current
Deferred tax liabilities:
Non-current

¥

480
621
883

- 20 -

¥

472
701
528

Thousands of
U.S. dollars
2010
$

5,161
6,678
9,495

In assessing the realizability of deferred tax assets, management of the Japan Transcity Groupconsiders whether some portion or all of the deferred tax assets will not be realized. The ultimate
realization of deferred tax assets is dependent upon the generation of the future taxable income
during the periods in which those temporary differences become deductible. At March 31, 2010
and 2009, a valuation allowance was provided to reduce the deferred tax assets to the extent thatmanagement believes that the deferred tax assets were realizable.
A reconciliation of the difference between the Japanese statutory effective tax rate and the actual
effective income tax rate on pre-tax income reflected in the accompanying consolidated statements
of income for the year ended March 31, 2009 was as follows:
Percentage ofpre-tax income
Japanese statutory effective tax rate
40.1%
Increase (decrease) due to:Permanently non-deductible expenses
2.3
Tax exempt income(4.9)
Local minimum taxes per capita levy
1.6
Equity in net earnings of unconsolidated
subsidiaries and affiliates(5.8)
Change in valuation allowance
0.5
Other
3.5
Actual effective income tax rate
37.3%
A reconciliation for the year ended March 31, 2010 was not disclosed because the difference was
immaterial.
11. Related Party Transaction
Information on related party transactions for the year ended March 31, 2009 and the related
amounts as of this date is summarized as follows:
Millions of
Yen
Guarantees of indebtedness¥- 21 -

761

(Additional information)
ASBJ Statement No. 11, “Accounting Standard for Related Party Disclosures” and ASBJ
Guidance No. 13, “Guidance on Accounting Standard for Related Party Disclosures” issued by
the Accounting Standards Board of Japan on October 17, 2006, require certain additional related
party disclosures effective for years beginning on or after April 1, 2008. Pursuant to the new
accounting standards, information on Chubu Coal Center Co., Ltd. is disclosed for the year ended
March 31, 2010 and 2009.

Millions of yen
2010
2009

Thousands of
U.S. dollars
2010

Total current assets
Total fixed assets

¥
¥

739 ¥
10,494 ¥537 $9,633 $

7,946
112,839

Total current liabilities
Total fixed liabilities¥¥

2,842 ¥
3,422 ¥

2,363 $
3,199 $

30,55936,796

Total net assets¥

4,969 ¥

4,608 $

53,430Operating revenue
Income before income taxes
Net income¥¥¥

3,013 ¥
757 ¥
452 ¥

3,350 $
1,003 $
599 $

32,3988,140
4,860- 22 -

12.

Segment Information
The Japan Transcity Group’s operations are classified into two major segments: “Integrated logistics services” and “Other services”. The “Other
services” segment includes the real estate trading operations, golf club operations and other services. Information by industry segment for theyears ended March 31, 2010 and 2009 is summarized as follows:Integrated logistics
services
For the year ended March 31, 2010:
Operating revenue:
External customers
Intersegment sales
Total operating revenue
Operating costs and expenses
Operating income
Identifiable assets
Depreciation
Capital expenditures
For the year ended March 31, 2009:
Operating revenue:
External customers
Intersegment sales
Total operating revenue
Operating costs and expenses
Operating income
Identifiable assets
Depreciation
Impairment loss on fixed assets
Capital expenditures¥

Others75,00624
75,03071,812
3,218¥¥

88,625
3,071
2,773

¥

¥

¥
¥

Total
Millions of yen

1,440
1,016
2,456
2,297
159

¥

¥

2,216
50
4

81,38426
81,41079,2602,150¥

87,474
3,085
47
5,272

¥

¥

¥

Elimination

76,446
1,040
77,486
74,1093,377¥¥

90,841
3,121
2,777

¥

(2,295)-¥88,546
3,121
2,777

1,112
1,077
2,189
2,066
123

¥

82,496
1,103
83,59981,326
2,273¥(1,103)(1,103)(1,148)45¥

82,49682,49680,178
2,318

1,760
52
11

¥

89,234
3,137
47
5,283

¥

(2,819)-¥86,415
3,137
47
5,283

(11,183)(11,183)(11,075)(108)$822,000
822,000
785,796
36,204¥¥¥¥(1,040)(1,040)(1,030)(10)

Consolidated

¥

¥

¥

76,44676,44673,0793,367

Thousands of U.S. dollars
For the year ended March 31, 2010:
Operating revenue:
External customers
Intersegment sales
Total operating revenue
Operating costs and expenses
Operating income
Identifiable assets
Depreciation
Capital expenditures$$$

806,516
258
806,774
772,172
34,602
952,957
33,021
29,817$$$

15,484
10,92526,40924,6991,710
23,828
538
43

$

$
$

822,000
11,183
833,183
796,871
36,312976,785
33,55929,860$$$(24,677)-$$

952,108
33,55929,860(Additional information)
In accordance with the amendment of the Corporation Tax Law of Japan, the Company and its domestic consolidated subsidiaries change
the useful life of machinery from in a range of 5 to 7 years to in the range of 10 to 12 years based on the reassessment of the useful lives inlight of the change in the Corporation Tax Law of Japan. As a result, operating income for the “Integrated logistics services” segment andfor the “Other” segment increased by ¥69 million and ¥2 million, respectively, for the year ended March 31, 2009 as compared with the- 23 -

previous accounting method.
Geographic segment information is not shown, as operating revenue of the overseas subsidiaries was immaterial. Information for overseas sales
is not disclosed, as such sales were also immaterial.

- 24 -

13. Condensed Financial Statements of Japan Transcity Corporation (Parent)
Presented below are the condensed nonconsolidated balance sheets, nonconsolidated statements ofincome and changes in net assets of Japan Transcity Corporation, the parent company.
Nonconsolidated Balance Sheets（Unaudited）
Japan Transcity Corporation (Parent)

Millions of yen
2010
2009
Current assets:
Cash and cash equivalents
Short-term investments
Trade receivables, net of allowance for
doubtful accounts
Inventories
Deferred tax assets
Other current assets
Total current assets
Property and equipment, at costLess accumulated depreciation
Net property and equipment
Investments and other assets:
Investment securities
Investments in and long-term loans to
subsidiaries and affiliates
Lease deposits
Other assets
Allowance for doubtful accounts
Total investments and other assets
Total assets¥¥- 25 -

9,054
36

¥

8,542
38

Thousands of
U.S. dollars
2010$

97,355387

11,62517
269
1,361
22,36273,555(31,951)
41,604

10,39016
262
1,879
21,127
71,962(30,513)41,449125,000
183
2,892
14,634240,451
790,914(343,559)
447,355

5,298

4,934

56,968

3,730
893
1,970
(15)
11,87675,842

3,081
938
1,689
(35)
10,60773,183

40,107
9,602
21,183(161)
127,699815,505¥$

Millions of yen
2010
Current liabilities:
Short-term borrowings
Current maturities of long-term debt
Trade payables
Accrued expenses
Income taxes payable
Other current liabilities
Total current liabilities
Long-term debt
Employee retirement benefit liability
Deferred tax liabilities for revaluation
Deferred tax liabilities
Other long-term liabilities
Total liabilities¥

Net assets:
Common stock
Capital surplus
Retained earnings
Less treasury stock, at cost
Total shareholders’ equity
Accumulated losses from valuation
adjustment
Total net assets
Total liabilities and net assets¥- 26 -

7,094
3,269
7,508
761
595
1,360
20,587
17,675
776
5,281
813
459
45,591Thousands of
U.S. dollars

2009

¥

5,885
3,165
6,623
836
18
1,050
17,577
19,018
913
5,281
465
629
43,883

2010$

76,28035,15080,731
8,183
6,398
14,624
221,366
190,054
8,344
56,785
8,742
4,935
490,226

8,428
6,735
17,430(944)
31,6498,428
6,735
16,663(941)
30,88590,62472,419187,419(10,150)
340,312(1,398)30,25175,842(1,585)29,30073,183(15,033)
325,279
815,505¥$

Nonconsolidated Statements of Income (Unaudited)Japan Transcity Corporation (Parent)
For the Years Ended March 31, 2010 and 2009¥

Operating revenue
Operating costs and expenses
Operating income
Other income (expenses):
Interest and dividend income
Interest expense
Miscellaneous, net
Income before income taxes
Income taxes:
Current
Deferred
Total income taxes
Net income¥

Millions of yen
2010
2009

Thousands of
U.S. dollars
2010

71,391$¥

76,507

69,111
2,280

74,974
1,533

743,129
24,516

278
(313)
(27)
(62)
2,218

394
(314)
(79)
1
1,534

2,989
(3,366)(290)(667)
23,849

683
216
899

227
380
607

7,344
2,323
9,667

1,319

¥

927

Yen
Per share:
Net income:-Basic-Diluted
Cash dividends¥- 27 -

767,645

20.31
8.50

¥

$

14,182

U.S. dollars

14.17
13.42
8.50

$

0.22
0.09

Nonconsolidated Statements of Changes in Net Assets (Unaudited)Japan Transcity Corporation (Parent)
For the Years Ended March 31, 2010 and 2009

Shareholders’ equity

Common stock

Balance at March 31, 2008
Net income for the year
Cash dividends
Purchase of treasury stock and fractional shares, net
Reversal of land revaluation decrement
Net changes in items other than shareholders’ equity
Balance at March 31, 2009
Net income for the year
Cash dividends
Purchase of treasury stock and fractional shares, net
Net changes in items other than shareholders’ equity
Balance at March 31, 2010

¥

¥

¥

8,428
8,428
8,428

¥

¥

¥

6,738
(3)
6,735
6,735

Total
shareholder’s
Treasury stock
equityMillions of yen

Retained
Earnings

Capital surplus

¥

¥

¥

16,293927(558)
116,663
1,319(552)
17,430

Accumulated (losses) gains from valuation adjustment
Net unrealized
Total
gains (losses)
accumulatedongains (losses)
Land
available-forfrom valuation
revaluation
sale securities
decrement
adjustment

¥

¥

¥

(645)
(296)
(941)
(3)
(944)

¥

¥

¥

30,814
927
(558)
(299)
1
30,885
1,319
(552)
(3)
31,649

¥

¥

¥

1,726
(1,292)
434
187
621

¥

4,667
2,010
6,677

$

¥

¥

(2,018)(1)(2,019)(2,019)¥(21,710)(21,710)

$

¥

¥

(292)
(1,293)(1,585)
187(1,398)Total
net assets

¥

¥

¥

30,522
927
(558)
(299)
1
(1,293)29,300
1,319
(552)
(3)
187
30,251Thousands of U.S. dollars
Balance at March 31, 2009
Net income for the year
Cash dividends
Purchase of treasury stock and fractional shares, net
Net changes in items other than shareholders’ equity
Balance at March 31, 2010$$

90,62490,624$$72,41972,419$$179,172
14,182(5,935)
187,419$$- 28 -(10,118)(32)(10,150)$$

332,097
14,182(5,935)(32)
340,312

$

$

$

$

(17,043)
2,010(15,033)$$

315,054
14,182(5,935)(32)
2,010
325,279