Kaga Electronics Co., Ltd.
and Subsidiaries
Consolidated Financial Statements for theYears Ended March 31, 2009 and 2008,
and Independent Auditors' ReportINDEPENDENT AUDITORS' REPORTTo the Board of Directors of
Kaga Electronics Co., Ltd.:We have audited the accompanying consolidated balance sheets of Kaga Electronics Co., Ltd. and subsidiaries asof March 31, 2009 and 2008, and the related consolidated statements of operations, changes in Equity, and cash
flows for the years then ended, all expressed in Japanese yen. These consolidated financial statements are theresponsibility of the Company's management. Our responsibility is to express an opinion on these consolidated
financial statements based on our audits.
We conducted our audits in accordance with auditing standards generally accepted in Japan. Those standards
require that we plan and perform the audit to obtain reasonable assurance about whether the financial 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 andsignificant 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, theconsolidated financial position of Kaga Electronics Co., Ltd. and subsidiaries as of March 31, 2009 and 2008, andthe consolidated results of their operations and their cash flows for the years then ended in conformity withaccounting principles generally accepted in Japan.
Our audits also comprehended the translation of Japanese yen amounts into U.S. dollar amounts and, in our
opinion, such translation has been made in conformity with the basis stated in Note 1. Such U.S. dollar amounts
are presented solely for the convenience of readers outside Japan.

June 26, 2009

Kaga Electronics Co., Ltd. and Subsidiaries
Consolidated Balance Sheets
March 31, 2009 and 2008
Millions of Yen
2009
2008

ASSETS
CURRENT ASSETS:
Cash and cash equivalents
Marketable securities (Note 3)
Notes and accounts receivables:
Trade
Other
Allowance for doubtful receivables
Inventories (Note 4)
Deferred tax assets (Note 9)
Other current assets
Total current assets
PROPERTY, PLANT AND EQUIPMENT(Note 2.f):Land
Buildings and structures
Machinery, equipment and vehicles
Molding dies and furniture
Construction in progress
Total
Accumulated depreciation
Net property, plant and equipment¥

Thousands of
U.S. Dollars(Note 1)
2009

11,36959¥ 14,012
84$

61,054
6,159(159)
18,296994
1,867

72,5304,606(162)
20,178570
1,329

623,000
62,847(1,622)
186,694
10,14319,051

99,639113,147

1,016,725

LIABILITIES AND SHAREHOLDERS' EQUITYCURRENT LIABILITIES:
Short-term bank loans (Note 5)
Current portion of long-term debt (Notes 6 and 12)
Notes and accounts payables:
Trade
Other
Income taxes payables (Note 9)
Other current liabilities

116,010
602

1,324
3,348
3,622
2,760
7
11,061(4,892)

1,324
1,887
3,760
1,946
606
9,523
(4,108)13,51034,16336,95928,163
72
112,867(49,918)

6,169

5,415

62,949INVESTMENTS AND OTHER ASSETS:
Investment securities (Notes 3 and 13)
Guarantee deposits
Refundable insurance premium
Deferred tax assets (Note 9)
Other assets

4,854
2,411
965
346
2,867

6,596
1,946
872
213
2,234

49,531
24,602
9,847
3,531
29,254

Total investments and other assets

11,443

11,861

116,765

Total current liabilities
LONG-TERM LIABILITIES:Long-term debt (Notes 6 and 12)
Liability for employees' retirement benefits (Note 7)
Retirement benefits for directors and corporate auditors (Note 7)
Deferred tax liabilities (Note 9)
Other long-term liabilities
Total long-term liabilities
CONTINGENT LIABILITIES (Note 15)
EQUITY (Notes 8 and 17)
Common stock−authorized, 80,000,000 shares;
issued, 28,702,118 shares in 2009 and 2008
Capital surplus
Retained earnings
Unrealized gain (loss) on available-for-sale securities
Deferred gain on derivatives under hedge accounting
Foreign currency translation adjustments
Treasury stock—at cost, 1,105,038 shares in 2009 and
643,305 shares in 2008
Total
Minority interests
Total equity

TOTAL¥ 117,251¥ 130,423

TOTAL$ 1,196,439

See notes to consolidated financial statements.

-2-

Millions of Yen
2009
2008

Thousands of
U.S. Dollars(Note 1)
2009

¥ 7,386
1,912¥ 10,073
1,624$

75,367
19,51044,772
1,369
950
4,132

56,110
1,207
2,239
3,208

456,857
13,9699,694
42,16560,521

74,461

617,562

3,635
1,343
1,122
355
714

625
1,159
1,005
546
435

37,092
13,704
11,449
3,622
7,286

7,169

3,770

73,153

12,134
13,91225,159(364)

123,816
141,959
256,725(3,714)(1,738)12,134
13,912
27,41337
3(515)(1,332)
47,771
1,790(843)
52,141
51(13,592)
487,459
18,26549,561

52,192505,724¥ 117,251¥ 130,423$ 1,196,439(17,735 )Kaga Electronics Co., Ltd. and Subsidiaries
Consolidated Statements of Operations
Ended March 31 , 2009 and 2008
Thousands of
U.S. Dollars(Note 1)
2009

Millions of Yen
2009
2008
NET SALES (Note 18)¥ 273,610¥ 291,331$ 2,791,939

COST OF SALES (Notes 7, 10, 11, and 18)

243,226

256,090

2,481,898

Gross profit

30,38435,241

310,041SELLING, GENERAL AND ADMINISTRATIVE
EXPENSES (Notes 7, 10, 11, and 18)

28,13427,455

287,082

Operating income

2,250

7,786

22,959OTHER INCOME (EXPENSE):
Interest and dividend income
Commission received
Gain on liquidation of subsidiaries
Gain on sales of investment securities
Cash surrender on insurance dissolution
Devaluation loss on golf membership
Devaluation loss on trading securities
Devaluation loss on investment securities
Interest expense
Exchange loss
Loss on operation of investment partnership
Loss on retirement of fixed assets
Impairment loss
Headquarter moving expenses
Others—net

241
134
39
17
6
(8)
(25)
(1,203)
(192)
(496)
(93)
(130)
(350)
(330)
189

314
153

498

2,459
1,367
398
173
61
(82)
(255)
(12,276)(1,959)(5,061)(949)(1,327)(3,571)(3,367)1,930(2,201)(373)(22,459)

49

7,413

500

1,459
(365)

3,694
99

14,888(3,724)

1,094

3,793

11,164

(238)

(64)

(2,429)Other expenses—net
INCOME BEFORE INCOME TAXES AND
MINORITY INTERESTSINCOME TAXES (Note 9)
Current
Deferred
Total income taxes
MINORITY INTERESTS IN NET LOSSNET INCOME (LOSS)

¥

(807)

31
501
(70)
(180)
(128)
(1,275)
(111)
(92)
(14)

¥

3,684

Yen
2009
PER SHARE OF COMMON STOCK (Note 2.r):Basic net income (loss)
Cash dividends applicable to the year (Note 8)¥

See notes to consolidated financial statements.
.

-3-(28.91)
40.00

2008
¥

128.9350.00$(8,235)
U.S. Dollars
2009$ (0.30)
0.41

Kaga Electronics Co., Ltd. and Subsidiaries
Consolidated Statements of Changes in Equity
Years Ended March 31, 2009 and 2008

BALANCE, APRIL 1, 2007
Net income
Cash dividends, ¥50 per share
Repurchase of treasury stock
Disposal of treasury stock
Net change in the year
BALANCE, MARCH 31, 2008
Adjustment of retained earnings due to an adoption of
PITF No.18 (Note 2.b)
Net income (loss)
Cash dividends, ¥40 per share
Repurchase of treasury stock
Disposal of treasury stock
Net change in the year
BALANCE, MARCH 31, 2009

BALANCE, MARCH 31, 2008

Thousands
Outstanding
Numberof
Shares ofCommonStockMillions of Yen

CommonStockCapitalSurplusRetained
Earnings

28,657¥ 12,134¥ 13,912¥

25,162¥758¥

Foreign
Currency
Translation
Adjustments(1 )TreasuryStock¥ 1,030

¥

(80 )

Total
¥

(602)
4

(770)
7
(721)

28,059¥ 12,134¥ 13,912¥

27,413

¥

37

¥

4

(1,545 )3¥ (515)

¥

(843)

¥

(44)
(807)
(1,403)(462)

27,597¥ 12,134¥ 13,912¥

25,159

¥

(3)

(364)

(1,223 )¥(1,738)¥(1,332)Thousands of U.S. Dollars (Note 1)
DeferredGain (Loss)on
Foreign
Derivatives
Currency
Under Hedge
Treasury
Translation
Accounting
Adjustments
Stock

CommonStockCapitalSurplusRetained
Earnings

Unrealized
Gain (Loss)on
Available-for-sale
Securities$123,816$141,959$279,724

$378

$31

$

(5,255)$123,816$141,959$256,725$(3,714)

See notes to consolidated financial statements.
-4-

(31)

52,141¥

51

53,0503,684(1,433)(770)
7(2,346 )¥52,192

¥

(44 )
(807)
(1,403)(489)(1,627)

1,739

47,771 ¥

1,790$ (8,602 )$ 532,051$(4,990)(448 )(8,235)(14,316)(4,990)$(13,592)

¥

(84 )

Minority
Interests(12,480)$(17,735)

135

Total

(448 )(8,235 )(14,316)(4,092)¥

Total
Equity(44 )(807)(1,403)
(489)

(489)
(401 )

52,915

Minority
Interests

3,684(1,433)(770)
7(2,262)

3,684(1,433)Adjustment of retained earnings due to an adoption of
PITF No.18 (Note 2.b)
Net income (loss)
Cash dividends, $0.41per share
Repurchase of treasury stock
Disposal of treasury stock
Net change in the year
BALANCE, MARCH 31, 2009

DeferredGain Loss)on
Derivatives
Under Hedge
Accounting

Unrealized
Gain Loss)on
Available-for-sale
Securities

520

112
¥

49,561

Total
Equity$532,571(448 )(8,235 )(14,316 )(4,990)(16,603)

17,745

1,142$487,459$18,265$505,724

Kaga Electronics Co., Ltd. and Subsidiaries
Consolidated Statements of Cash Flows
Years Ended March 31, 2009 and 2008
Thousands of
U.S. Dollars(Note 1)
2009

Millions of Yen
2009
2008
OPERATING ACTIVITIES:
Income before income taxes and minority interests
Adjustments for:
Income taxes-paid
Depreciation and amortization
Impairment loss
Loss on retirement of fixed assets
Provision for directors’ and corporate auditors’ bonuses
Gain on sales of investment securities
Devaluation loss on investment securities
Gain on sales of property, plant and equipment
Provision for employees' retirement benefits
Provision (Reversal of) for directors' and corporate
auditors'retirement benefits
Provision for doubtful accounts
Payment of directors' and corporate auditors' bonuses
Other-net
Changes in assets and liabilities:
Decrease (Increase) in notes and accounts receivable
Decrease (Increase) in inventories
Increase in advance
Decrease in interest and dividend receivable
Increase (Decrease) in prepaid expenses and other current assets
Decrease (Increase) in trade notes and accounts payable
Increase in accrued expenses and other current liabilities
Increase in interest payable
Total adjustments
Net cash provided by operating activities-(Forward)

¥

¥

-5-

49

¥ 7,413(3,817)
1,978
350
130
(128)
(16)
1,203
(3)
42

(3,319 )
1,438
14
92
(20 )
(31 )
180
(1,163 )79(38,949)
20,184
3,571
1,327(1,306)(163)
12,276
(31)
429

84
198

(144 )
267

857
2,020

210

99

2,143

13,149
2,981
(312)
240
(592)
(11,578)
1,459
(193)
5,385

(6,051 )(1,265 )(430 )
374
63
2,784
394
(133 )(6,772 )

134,173
30,418(3,184)2,449(6,041)(118,143)
14,888(1,969)54,949

5,434

¥

641

$

$

500

55,449(Continued)

Kaga Electronics Co., Ltd. and Subsidiaries
Consolidated Statements of Cash Flows
Years Ended March 31, 2009 and 2008
Thousands of
U.S. Dollars(Note 1)
2009

Millions of Yen
2009
2008
Net cash provided by operating activities-(Forward)
INVESTING ACTIVITIES:
Purchases of property, plant and equipment
Purchases of trading securities
Purchases of investment securities
Purchases of intangible assets
Proceeds from sales of property, plant and equipment
Proceeds from sales of trading securities
Proceeds from sales of investment securities
Purchases of stocks of consolidated subsidiaries
Increase (Decrease) in short term loan receivable
Increase in long-term loan receivable
Increase in refundable insurance premium-net
Increase (Decrease) in guarantee deposits-net
Payment for sale of subsidiaries stock related to changes
in the scope of consolidation
Others-net

¥

5,434

641

$

55,449

121
(440)
(202)
(73)
(76)
(270)

(1,503)(850)(1,401)
(321)
2,120
961
331
(150)
77
(91)
(42)
65

(109)

(2)
87

(1,112)(4,211)(719)(42,970)(4,310)2,876(1,450)
(489)
(35)

5,584
(2,660)(1,443)(770)
7(43,980)
29,347(14,796)(4,990)(357)

Net cash (used in) provided by financing activities(3,408)718(34,776)

FOREIGN CURRENCY TRANSLATION ADJUSTMENTS
ON CASH AND CASH EQUIVALENTS(458)(1,186)(4,673)

NET DECREASE IN CASH AND CASH EQUIVALENTS(2,643)(546)(26,970)

CASH AND CASH EQUIVALENTS, BEGINNING BALANCE OF
YEAR

14,012

14,558142,980¥ 11,369¥ 14,012$ 116,010

Net cash used in investing activities
FINANCING ACTIVITIES:
Decrease (Increase) in short-term bank loans-net
Increase (Decrease) in long-term bank loans-net
Dividends paid
Purchases of treasury stock-net
Others-net

CASH AND CASH EQUIVALENTS, END OF YEAR

-6-

(2,541)

¥

(195)
(656)
230

(25,929)(1,990)(6,694)2,347
1,235(4,490)(2,061)(745)(776)(2,755)(Continued)

Kaga Electronics Co., Ltd. and Subsidiaries
Consolidated Statements of Cash Flows
Years Ended March 31, 2009 and 2008

Millions of Yen
2009
2008
ADDITIONAL CASH FLOW INFORMATION:
Purchase of a newly consolidated subsidiary:
Fair value of assets acquired
Liabilities assumed
Minority interests
Cash paid for the capital¥ 8,366
4,467
1,834
440

Effect of deconsolidation of subsidiaries uponsales of their stocks to third parties:
Assets decreased
Liabilities decreased
Loss on sales of investment in and advances to subsidiaries
Cash paid in the capital¥ 1,793785
1,009

Thousands
ofU.S. Dollars(Note 1)
2009

$ 85,367
45,582
18,714
4,490

80
28
(3)
49

See notes to consolidated financial statements.

-7-(Concluded)

Kaga Electronics Co., Ltd. and Subsidiaries
Notes to Consolidated Financial Statements
Years Ended March 31, 2009 and 2008

1.

BASIS OF PRESENTING CONSOLIDATED FINANCIAL STATEMENTS
The accompanying consolidated financial statements have been prepared in accordance with the provisions set
forth in the Japanese Financial Instruments and Exchange Act and its related accounting regulations, and in
conformity with accounting principles generally accepted in Japan (“Japanese GAAP”), which are different incertain respects as to application and disclosure requirements of International Financial Reporting Standards.
In preparing these consolidated financial statements, certain reclassifications and rearrangements have been
made to the consolidated financial statements issued domestically in order to present them in a form which ismore familiar to readers outside Japan. In addition, certain reclassifications have been made in the 2008
financial statements to conform to the classifications used in 2009.
The consolidated financial statements are stated in Japanese yen, the currency of the country in which Kaga
Electronics Co., Ltd. (the “Company”) is incorporated and operates. The translations of Japanese yen amounts
into U.S. dollar amounts are included solely for the convenience of readers outside Japan and have been made at
the rate of ¥98 to $1, the approximate rate of exchange at March 31, 2009. Such translations should not be
construed as representations that the Japanese yen amounts could be converted into U.S. dollars at that or any
other rate.

2.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIESa.

Consolidation—The consolidated financial statements include the accounts of the Company and all of its
subsidiaries (48 in 2009 and 42 in 2008 (together, the “Group”).
Under the control and influence concept, those companies in which the Company, directly or indirectly, isable to exercise control over operations are fully consolidated, and those companies over which the Group
has the ability to exercise significant influence are accounted for by the equity method.
Investments in thirteen (eight in 2008) associated companies are accounted for by the equity method.
The excess of the cost of an acquisition over the fair value of the net assets of the acquired subsidiary at thedate of acquisition is being amortized over a period of five years.
All significant intercompany balances and transactions have been eliminated in consolidation. All material
unrealized profit included in assets resulting from transactions within the Group is eliminated.

b.

Unification of Accounting Policies Applied to Foreign Subsidiaries for the Consolidated Financial
Statements―In May 2006, the Accounting Standards Board of Japan (the “ASBJ”) issued ASBJ Practical
Issues Task Force (PITF) No.18, “Practical Solution on Unification of Accounting Policies Applied toForeign Subsidiaries for the Consolidated Financial Statements”. PITF No.18 prescribes: (1) the
accounting policies and procedures applied to a parent company and its subsidiaries for similar transactions
and events under similar circumstances should in principle be unified for the preparation of theconsolidated financial statements, (2) financial statements prepared by foreign subsidiaries in accordancewith either International Financial Reporting Standards or the generally accepted accounting principles in
the United States of America tentatively may be used for the consolidation process, (3) however, thefollowing items should be adjusted in the consolidation process so that net income is accounted for inaccordance with Japanese GAAP unless they are not material: 1) amortization of goodwill; 2) scheduled
amortization of actuarial gain or loss of pensions that has been directly recorded in the equity; 3) expensing
capitalized development costs of R&D; 4) cancellation of the fair value model accounting for property,
plant, and equipment and investment properties and incorporation of the cost model accounting; 5)recording the prior years' effects of changes in accounting policies in the income statement whereretrospective adjustments to financial statements have been incorporated; and 6) exclusion of minority
interests from net income, if contained. PITF No.18 was effective for fiscal years beginning on or after
April 1, 2008 with early adoption permitted. The Company applied this accounting standard effective April
1, 2008. The effect of this change was to decrease operating income by ¥63 million ($643 thousand) and-8-

income before income taxes and minority interests by ¥68 million ($694 thousand). In addition, theCompany adjusted the beginning balance of retained earnings at April 1, 2008 as if this accounting
standard had been retrospectively applied.

c.

Cash Equivalents—Cash equivalents are short-term investments that are readily convertible into cash andthat are exposed to insignificant risk of changes in value. Cash equivalents include time deposits andshort-term investments, all of which mature or become due within three months of the date of acquisition.

d.

Inventories—Prior to April 1 2008, inventories were stated at cost, determined by the average method. In
July 2006, the ASBJ issued ASBJ Statement No.9, “Accounting Standard for Measurement of Inventories”.
This standard requires that inventories held for sale in the ordinary course of business be measured at thelower of cost or net selling value, which is defined as the selling price less additional estimatedmanufacturing costs and estimated direct selling expenses. The replacement cost may be used in place ofthe net selling value, if appropriate. The standard also requires that inventories held for trading purposes
be measured at the market price. The standard was effective for fiscal years beginning on or after April 1,2008 with early adoption permitted. The Company applied this new accounting standard for measurementof inventories effective April 1, 2008. The effect of this change was to decrease operating income andincome before income taxes and minority interests by ¥83 million ($847 thousand).

e.

Marketable and Investment Securities—Marketable and investment securities are classified andaccounted for, depending on management's intent, as follows: (1) trading securities, which are held for the
purpose of earning capital gains in the near term are reported at fair value, and the related unrealized gains
and losses are included in the earnings, and (2) available-for-sale securities, which are not classified as theaforementioned securities are reported at fair value, with unrealized gains and losses, net of applicabletaxes, reported in a separate component of shareholders' equity. Non-marketable available-for-salesecurities are stated at cost determined by the moving-average method. For other than temporary declines
in fair value, investment securities are reduced to net realizable value by a charge to income.

f.

Property, Plant and Equipment—Property, plant and equipment are stated at cost. Significant
replacements and additions are capitalized; maintenance and repairs, and minor replacements andimprovements are charged to income as incurred.
Depreciation of property, plant and equipment of the Company and its consolidated domestic subsidiaries
is computed substantially by the declining-balance method at rates based on the estimated useful lives of
the assets, while the straight-line method is applied to buildings and lease assets of the Company and its
consolidated domestic subsidiaries, and all property, plant and equipment of foreign subsidiaries.
The range of useful lives is principally as follows:
Buildings and structures
Machinery, equipment and vehicles
Molding dies and furniture

10 to 50 years
8 to 12 years
2 to 20 yearsg.

Long-lived Assets— The Group reviewed its long-lived assets for impairment as for the year ended March
31, 2009 and, as a result, recognized an impairment loss of ￥ 350 million ($3,571 thousand) for certain
project processing buildings and structures group for several shops due to a continuous operating loss of
the unit' and the carrying amount of the relevant buildings and structures and molding dies and furniture
was written down to the recoverable amount. The recoverable amount of the project's group was measured
at its value in use and the discount rate used for computation of present value of future cash flows was
4.2%.

h.

Goodwill—Purchased goodwill is amortized on a straight-line basis over five years.

i.

Software—Software was recorded as other assets and is amortized over five years.

j.

Retirement and Pension Plans—The Company and certain consolidated subsidiaries have defined
contribution pension plans. Other consolidated subsidiaries have unfunded retirement benefit plans.
Retirement allowances for directors and corporate auditors are recorded to state the liability at the amountthat would be required if all directors and corporate auditors retired at each balance sheet date.
-9-

k.

Leases— In March 2007, the ASBJ issued ASBJ Statement No.13, “Accounting Standard for Lease
Transactions”, which revised the previous accounting standard for lease transactions issued in June 1993.
The revised accounting standard for lease transactions is effective for fiscal years beginning on or after
April 1, 2008 with early adoption permitted for fiscal years beginning on or after April 1, 2007.
Under the previous accounting standard, finance leases that deem to transfer ownership of the leased
property to the lessee were to be capitalized. However, other finance leases were permitted to be accounted
for as operating lease transactions if certain “as if capitalized” information is disclosed in the note to thelessee’s financial statements. The revised accounting standard requires that all finance lease transactions
should be capitalized to recognize lease assets and lease obligations in the balance sheet. In addition, theaccounting standard permits leases which existed at the transition date and do not transfer ownership of theleased property to the lessee to be accounted for as operating lease transactions.
The Company applied the revised accounting standard effective April 1, 2008. In addition, the Company
accounted for leases which existed at the transition date and do not transfer ownership of the leased
property to the lessee as operating lease transactions. All other leases are accounted for as operating leases.

l.

Bonuses to directors and corporate auditors―Bonuses to directors and corporate auditors are accrued at
the year end to which such bonuses are attributable.

m. Income Taxes—The provision for income taxes is computed based on the pretax income included in the
consolidated statements of operations. The asset and liability approach is used to recognize deferred tax
assets and liabilities for the expected future tax consequences of temporary differences between the
carrying amounts and the tax bases of assets and liabilities. Deferred taxes are measured by applying
currently enacted tax laws to the temporary differences.
n.

Appropriations of Retained Earnings—Appropriations of retained earnings are reflected in the financial
statements for the following year upon shareholders' approval.

o.

Foreign Currency Transactions—All short-term and long-term monetary receivables and payables
denominated in foreign currencies are translated into Japanese yen at the exchange rates at the balance
sheet date. The foreign exchange gains and losses from translation are recognized in the income statement
to the extent that they are not hedged by forward exchange contracts.

p.

Foreign Currency Financial Statements—The balance sheet accounts of the foreign subsidiaries aretranslated into Japanese yen at the current exchange rate as of the balance sheet date of subsidiaries except
for shareholders' equity, which is translated at the historical rate.
Differences arising from such translation were shown as "Foreign currency translation adjustments" in a
separate component of shareholders' equity.
Revenue and expense accounts of foreign subsidiaries are translated into yen at the average exchange rate.

q.

Derivatives and Hedging Activities—The Group uses derivative financial instruments to manage its
exposures to fluctuations in foreign exchange and interest rates. Foreign exchange forward contracts are
utilized by the Group to reduce foreign currency exchange risk. The Group does not enter into derivatives
for trading or speculative purposes.
Derivative financial instruments and foreign currency transactions are classified and accounted for as
follows: (a) all derivatives be recognized as either assets or liabilities and measured at fair value, and gains
or losses on derivative transactions are recognized in the consolidated income statement; and (b) for
derivatives used for hedging purposes, if derivatives qualify for hedge accounting because of highcorrelation and effectiveness between the hedging instruments and the hedged items, gains or losses onderivatives are deferred until maturity of the hedged transactions.
The foreign currency forward contracts are utilized to hedge foreign exchange exposures for export sales
and in procurement of inventories from overseas suppliers. Trade receivables and payables denominated inforeign currencies are translated at the forward contract rates if the forward contracts qualify for hedge
accounting. Forward contracts that hedge for forecasted transactions are measured and recorded at fairvalue but unrealized gains/losses are deferred until the underlying transactions are completed.

r.

Per Share Information—Basic net income (loss) per share is computed by dividing net income (loss)-10-

available to common shareholders by the weighted-average number of common shares outstanding for theperiod. Diluted net income per share is not disclosed because it is anti-dilutive. Cash dividends per sharepresented in the accompanying consolidated statements of operations are dividends applicable to therespective years including dividends to be paid after the end of the year.
s. New Accounting Pronouncements
Business Combinations―On December 26, 2008, the ASBJ issued a revised accounting standard forbusiness combinations, ASBJ Statement No.21, “Accounting Standard for Business Combinations.” Major
accounting changes under the revised accounting standard are as follows;(1) The current accounting standard for business combinations allows companies to apply the pooling ofinterests method of accounting when certain specific criteria are met such that the business combination isessentially regarded as a uniting-of-interests. The revised standard requires to account for such businesscombination by the purchase method and the pooling of interests method of accounting is no longer
allowed.
(2) The current accounting standard accounts for the research and development costs to be charged toincome as incurred. Under the revised standard, an in-process research and development (IPR&D)
acquired by the business combination is capitalized as an intangible asset.
(3) The current accounting standard accounts for a bargain purchase gain (negative goodwill) to besystematically amortized within 20 years. Under the revised standard, the acquirer recognizes a bargain
purchase gain in profit or loss on the acquisition date after reassessing whether it has correctly identified allof the assets acquired and all of the liabilities assumed with a review of such procedures used.
This standard is applicable to business combinations undertaken on or after April 1, 2010 with early
adoption permitted for fiscal years beginning on or after April 1, 2009.
Unification of Accounting Policies Applied to Foreign Associated Companies for the Equity
Method―The current accounting standard requires to unify accounting policies within the consolidationgroup. However, the current guidance allows to apply the equity method for the financial statements of its
foreign associated company which have been prepared in accordance with generally accepted accounting
principles in their respective jurisdictions without unification of accounting policies.
On December 26, 2008, the ASBJ issued ASBJ Statement No.16 (Revised 2008), “Revised AccountingStandard for Equity Method of Accounting for Investments”. The new standard requires adjustments to bemade to conform the associate’s accounting policies for similar transactions and events under similar
circumstances to those of the parent company when the associate’s financial statements are used inapplying the equity method unless it is impractible to determine adjustments. In addition, financial
statements prepared by foreign associated companies in accordance with either International Financial
Reporting Standards or the generally accepted accounting principles in the United States tentatively may be
used in applying the equity method if the following items are adjusted so that net income is accounted forin accordance with Japanese GAAP unless they are not material: 1) amortization of goodwill; 2) scheduled
amortization of actuarial gain or loss of pensions that has been directly recorded in the equity; 3) expensing
capitalized development costs of R&D; 4) cancellation of the fair value model accounting for property,
plant, and equipment and investment properties and incorporation of the cost model accounting; 5)recording the prior years' effects of changes in accounting policies in the income statement whereretrospective adjustments to the financial statements have been incorporated; and 6) exclusion of minority
interests from net income, if contained.
This standard is applicable to equity method of accounting for investments effective on or after April 1,2010 with early adoption permitted for fiscal years beginning on or after April 1, 2009.
Asset Retirement Obligations―On March 31, 2008, the ASBJ published a new accounting standard for
asset retirement obligations, ASBJ Statement No.18 “Accounting Standard for Asset Retirement
Obligations” and ASBJ Guidance No.21 “Guidance on Accounting Standard for Asset Retirement
Obligations”. Under this accounting standard, an asset retirement obligation is defined as a legal obligation
imposed either by law or contract that results from the acquisition, construction, development and thenormal operation of a tangible fixed asset and is associated with the retirement of such tangible fixed asset.
The asset retirement obligation is recognized as the sum of the discounted cash flows required for the future
asset retirement and is recorded in the period in which the obligation is incurred if a reasonable estimate
can be made. If a reasonable estimate of the asset retirement obligation cannot be made in the period theasset retirement obligation is incurred, the liability should be recognized when a reasonable estimate ofasset retirement obligation can be made. Upon initial recognition of a liability for an asset retirement
obligation, an asset retirement cost is capitalized by increasing the carrying amount of the related fixed
asset by the amount of the liability. The asset retirement cost is subsequently allocated to expense throughdepreciation over the remaining useful life of the asset. Over time, the liability is accreted to its present-11-value each period. Any subsequent revisions to the timing or the amount of the original estimate ofundiscounted cash flows are reflected as an increase or a decrease in the carrying amount of the liability
and the capitalized amount of the related asset retirement cost. This standard is effective for fiscal years
beginning on or after April 1, 2010 with early adoption permitted for fiscal years beginning on or before
March 31, 2010.
3.

MARKETABLE AND INVESTMENT SECURITIESMarketable and investment securities as of March 31, 2009 and 2008 consisted of the following:
Millions of Yen
2009
2008
59

Thousands of
U.S. Dollars
2009

Current—Marketable equity securities¥

Non-current:
Marketable equity securities
Non-marketable equity securities
Government and corporate bonds
Investments in associated companies
Others¥ 2,965
962
423
117
387

¥ 4,420
1,100
498
50
528

$ 30,255
9,816
4,316
1,194
3,950

Total

¥ 4,854¥ 6,596$ 49,531

¥

84

$

602

The carrying amounts and aggregate fair values of marketable and investment securities at March 31, 2009 and2008 were as follows:
Millions of Yen
Unrealized
Unrealized
Gains
LossesMarch 31, 2009

Cost

Securities classified as:
Trading
Available-for-sale—equity securities
Government and corporate bonds¥ 3,405
556

¥

199

¥ (639 )(133)¥ 3,936558¥ 1,243¥ (759 )
(60)

Fair
Value
¥

59
2,965
423

¥

84
4,420
498

March 31, 2008
Securities classified as:
Trading
Available-for-sale—equity securities
Government and corporate bonds

March 31, 2009
Securities classified as:
Trading
Available-for-sale—equity securities
Government and corporate bonds

Thousands of U.S. Dollars
Unrealized
Unrealized
Gains
Losses

Cost

Fair
Value
$

$ 34,745
5,673$ 2,030$ (6,520)(1,357)602
30,255
4,316

Available-for-sale securities and others whose fair value is not readily determinable as of March 31, 2009 and2008 were as follows:
Millions of Yen
2009
2008
Available-for-sale—Equity securities
Others

¥
-12-

962
387

¥ 1,100
528

Thousands of
U.S. Dollars
2009
$

9,816
3,950

Proceeds from sales of available-for-sale securities were ¥99 million ($1,010 thousand) in 2009 and ¥214
million in 2008, Gross realized gains and losses on these sales, computed on the moving average cost basis,
were ¥17 million ($173 thousand) and ¥2 million ($20 thousand) in 2009, respectively, and ¥34 million and ¥3
million in 2008, respectively.
The carrying values of debt securities with contractual maturities for securities classified as available-for-sale atMarch 31, 2009 are as follows:
Millions of Yen
Available for Sale

Thousands of
U.S. Dollars
Available for Sale

¥ 380

$ 3,878

Due after ten years
4.

INVENTORIESInventories at March 31, 2009 and 2008 consisted of the following:
Millions of Yen
2009
2008

5.

Merchandise
Finished products
Semi-processed products
Work in process
Raw materials
Supplies¥ 12,878
1,091

Total

Thousands of
U.S. Dollars
2009$ 131,408
11,133

577
3,728
22

¥ 14,179
1,818
2
507
3,665
7

¥ 18,296¥ 20,178$ 186,694

5,888
38,041224

SHORT-TERM BANK LOANS
The annual average interest rates applicable to the bank loans were 1.2% for the years ended March 31, 2009
and 2008, respectively.
As is customary in Japan, the Company maintains deposit balances with banks with which it has bank loans.
Such deposit balances are not legally or contractually restricted as to withdrawal.
Under certain basic agreements with banks, collateral must be provided if requested by the lending banks andcertain banks have the right to offset cash deposited with them against any bank loan or obligation that becomesdue and, in case of default and certain other specified events, against all other debt payable to the bankconcerned. The Company has never received any such request.

6.

LONG-TERM DEBT
Long-term debt at March 31, 2009 and 2008 consisted of the following:
Millions of Yen
2009
2008
Unsecured loans from banks and insurancecompanies, 0.62% to 1.48%, due seriallythrough June 2013
Obligations under finance leases
Less current portion
Total long-term debt, less current portion¥ 5,525
22(1,912)¥ 3,635¥ 2,249¥(1,624 )625

Thousands of
U.S. Dollars
2009$ 56,378
224(19,510)$ 37,092

Annual maturities of long-term debt ,excluding obligations under finance leases (see Note 12) at March 31,
2009, were as follows:-13-Year Ending
March 31

7.

Millions of Yen
2009

Thousands of
U.S. Dollars
2009

2010
2011
2012
2013
2014

¥1,905
1,120
1,000
1,000
500

$19,439
11,42910,204
10,204
5,102

Total

¥5,525$56,378

RETIREMENT AND PENSION PLANS
Under the pension plan, employees terminating their employment are, in most circumstances, entitled topension payments based on their average pay during their employment, length of service and certain otherfactors.
The liability for retirement benefits at March 31, 2009 and 2008 for directors and corporate auditors is¥1,122 million ($11,449 thousand) and ￥1,005 million, respectively. The retirement benefits for directors andcorporate auditors are paid subject to the approval of the shareholders.
The liability (asset) for employees' retirement benefits at March 31, 2009 and 2008 consisted of the following:
Millions of Yen
2009
2008

Thousands of
U.S. Dollars
2009

Projected benefit obligation
Fair value of plan assets
Unrecognized actuarial loss
Unrecognized prior service cost

¥ 3,539(1,359)
(269)
(568)

¥ 3,165(1,050)
(323)
(633)

$ 36,112(13,867)(2,745)(5,796)Net liability¥ 1,343¥ 1,159$ 13,704

The components of net periodic benefit costs for the years ended March 31, 2009 and 2008 are as follows:
Millions of Yen
2009
2008

Thousands of
U.S. Dollars
2009Service cost
Interest cost
Expected return on plan assets
Recognized actuarial loss
Amortization of prior service cost

¥ 466
46
(19)
42
65

¥ 500
26
(18)
18
16

$ 4,755
469
(194)
429
663

Net periodic benefit costs

¥ 600

¥ 542

$ 6,122

Assumptions used for the years ended March 31, 2009 and 2008 are set forth as follows:

Discount rate
Expected rate of return on plan assets
Recognition period of actuarial gain/loss
Amortization period of prior service cost

-14-

2009

2008

2.0%
2.0%
10 years
10 years

2.0%
2.0%
10 years
10 years

8.

EQUITY
Since May 1, 2006, Japanese companies have been subject to the Companies Act of Japan (the “CompaniesAct”). The significant provisions in the Companies Act that affect financial and accounting matters are
summarized below:a.

Dividends
Under the Companies Act, companies can pay dividends at any time during the fiscal year in addition to
the year-end dividend upon resolution at the shareholders meeting. For companies that meet certain
criteria such as: (1) having the Board of Directors, (2) having independent auditors, (3) having the Boardof Corporate Auditors, and (4) the term of service of the directors is prescribed as one year rather than two
years of normal term by its articles of incorporation, the Board of Directors may declare dividends (except
for dividends in kind) if the company has prescribed so in its articles of incorporation. However, theCompany cannot do so because it does not meet all the above criteria.
Semiannual interim dividends may also be paid once a year upon resolution by the Board of Directors if
the articles of incorporation of the company so stipulate. The Companies Act also provides certain
limitations on the amounts available for dividends or the purchase of treasury stock. The limitation isdefined as the amount available for distribution to the shareholders, but the amount of net assets after
dividends must be maintained at no less than ¥3 million.

b.

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

c.

Treasury Stock and Treasury Stock Acquisition Rights
The Companies Act also provides for companies to purchase treasury stock and dispose of such treasury
stock by resolution of the Board of Directors. The amount of treasury stock purchased cannot exceed theamount available for distribution to the shareholders which is determined by specific formula. Under theCompanies Act, stock acquisition rights are presented as a separate component of shareholders' equity.
The Companies Act also provides that companies can purchase both treasury stock acquisition rights andtreasury stock. Such treasury stock acquisition rights are presented as a separate component ofshareholders' equity or deducted directly from stock acquisition rights.

9.

INCOME TAXESThe Company and its domestic subsidiaries are subject to Japanese national and local income taxes which, inthe aggregate, resulted in a normal effective statutory tax rate of approximately 41% for the years ended March
31, 2009 and 2008.

-15-

The tax effects of significant temporary differences and tax loss carryforwards which resulted in deferred tax
assets and liabilities at March 31, 2009 and 2008 are as follows:
Thousands of
U.S. Dollars
2009

Millions of Yen
2009
2008
Deferred tax assets:
Devaluation loss on investment securities
Accrued enterprise tax
Devaluation loss on unlisted stock
Retirement benefit for directors
Allowance for doubtful accounts
Accrued bonuses
Retirement benefit for employees
Tax loss carryforwards
Devaluation of golf membership
Unrealized loss on available-for-sale securities
Devaluation of inventories
Impairment loss
Other
Sub-total
Less valuation allowance

¥
¥

457
446
296
541
3,189

23
172
98
408
278
240
427
1,643
74
32

$

4,663
4,551
3,020
5,520
32,541

168
311
284
1,300
6,992
(4,785)329
3,724(1,995)

1,714
3,173
2,898
13,26571,345(48,826)

Deferred tax assets—total

2,207

1,729

22,521

Deferred tax liabilities:
Undistributed earnings of overseas subsidiaries
Unrealized gain on property and equipment
Unrealized gain on available-for-sale securities
Advanced depreciation on fixed assets
Other

(573)
(208)
(36)
(375)
(30)

(812)
15
(245)
(422)
(40)

(5,847)(2,122)(367)(3,827)(306)(1,222)(1,504)(12,469)

Deferred tax liabilities—total
Net deferred tax assets

¥

985

¥

225

$

10,052

A reconciliation between the normal effective statutory tax rate and the actual effective tax rate reflected in theaccompanying consolidated statements of operations for the years ended March 31, 2009 and 2008 is asfollows:
2009
Normal effective statutory tax rate
Dividend received deduction
Expenses not deductible for income tax purposes
Foreign tax credit
Tax benefits not recognized on operating losses of subsidiaries
Increase of valuation allowance
Deferred income taxes on retained profits of overseas subsidiaries
Recognized devaluation loss on subsidiaries stocks
Lower income tax rates applicable to income in certain
foreign countries
Other—net
Actual effective tax rate

2008
41 %

361
3,561
631
(487)
(2,332)

41%
2
3
(2)
17

449

(9)
(7)

2,224 %

45%

At March 31, 2009, the company and certain subsidiaries have tax loss carryforwards aggregating
approximately ¥8,472 million ($86,449 thousand) which are available to be offset against future taxable incomeof the company and such subsidiaries in future years. These loss carryforwards, if not utilized, will expire as
follows:-16-

Year Ending
March 31

Millions of Yen

Thousands of
U.S. Dollars

166
1,285
7,021
¥ 8,472

1,694
13,112
71,643$ 86,449201320142015 and thereafter
Total
10.

DEPRECIATION OF PROPERTY, PLANT AND EQUIPMENT
Depreciation of property, plant and equipment was ¥1,235 million ($12,602 thousand) and ¥893 million for theyears ended March 31, 2009 and 2008, respectively.

11.

RESEARCH AND DEVELOPMENT COSTS
Research and development costs charged to income were ¥2,154 million ($21,980 thousand) and ¥1,455 million
for the years ended March 31, 2009 and 2008, respectively.

12.

LEASESThe Group leases buildings, machinery, equipment and vehicles and other assets. Total lease payments underfinance leases for the years ended March 31, 2009 and 2008 were ¥201 million ($2,051 thousand) and¥186 million, respectively.
An impairment loss that the companies recorded for the year ended March 31, 2009 and 2008 were ¥57 million($581 thousand) and ¥7 million ($70 thousand), respectively, on certain leased property held under financeleases that do not transfer ownership and an allowance for impairment loss on less on leased property.
As discussed in Note 2.m, the Company accounts for leases which existed at the transition date and do nottransfer ownership of the leased property to the lessee as operating lease transactions. Pro forma informationof such leases, such as acquisition cost, accumulated depreciation, accumulated impairment loss, obligations
under finance leases, depreciation expense, interest expense and other information, on a “as if capitalized”
basis for the years ended March 31, 2009 and 2008 was as follows.
Millions of Yen
2009

Acquisition cost
Accumulated
depreciation
Accumulated
impairment loss
Net leased
property

2008

Machinery,
Equipment
andVehiclesMolding
Dies andFurnitures

¥ 97
(37)

¥ 60

Total

Machinery,
Equipment
andVehiclesMolding
Dies andFurnitures

Total

¥ 668

¥ 765

¥ 97

¥ 805

¥ 902

(364)

(401)

(27 )

(397)

(424)

(57)

(57)

(7)

(7)

¥ 247

¥ 307

¥ 401

¥ 471

¥ 70

Thousands of U.S. Dollars
2009
Machinery,
Equipment
MoldingandDies and
VehiclesFurnitures
Acquisition cost
Accumulated depreciation

$
-17-

990
(378)

$ 6,816(3,714)

Total$ 7,806(4,092)

Accumulated impairment loss
Net leased property$

612(581 )(581)$ 2,521$ 3,133

Obligations under finance leases:
Millions of Yen
2009
2008

Thousands of
U.S. Dollars
2009

Due within one year
Due after one year

¥ 128
248

¥ 161
332

$ 1,306
2,531

Total

¥ 376

¥ 493

$ 3,837

Depreciation expense which is not reflected in the accompanying consolidated statements of operations,computed by the straight-line method was ¥187 million ($1,908 thousand) and ¥173 million for the years
ended March 31, 2009 and 2008, respectively.
The imputed interest expense portion which is computed using the interest method is excluded from the above
obligations under finance leases.
The minimum rental commitments under noncancellable operating leases at March 31, 2009 and 2008 were as
follows:
Thousands of
U.S. Dollars
Millions of Yen
2009
2008
2009

13.

Due within one year
Due after one year

¥780
4,273

¥ 34
49

$ 7,959
43,602

Total¥5,053¥ 83$51,561ASSETS PLEDGED AS COLLATERALAt March 31, 2008, investment securities of ¥16 million and time deposit of ¥10 million were deposited withvendors as collateral for trade guarantees. At March 31, 2009, there are no such collateral any more.

14.

DERIVATIVESThe Group enters into foreign exchange forward contracts to hedge foreign exchange risk associated with assets
and liabilities denominated in foreign currencies.
It is the Group's policy to use derivatives for the purpose of reducing market risks associated with assets andliabilities. The Group does not enter into derivative contracts for trading or speculative purposes.
Derivatives are subject to market and credit risk. The Group, however, does not anticipate any credit losses,
because the counterparties to those derivatives are limited to major financial institutions.
Each business department executes foreign exchange forward contracts, which are limited to the normal courseof business. The administrative department controls the position of derivative transactions. The manager of theaccounting department periodically provides detailed reports of derivative transactions to management.

15.

CONTINGENT LIABILITIESContingent liabilities at March 31, 2009 for employees' loans guaranteed, amounted to ¥53 million($541 thousand) and for bank loans guaranteed of ELATEC VERTRIEBS GMBH, which is equity-method
affiliate, amounted to ¥32 million ($327 thousand).

-18-

16.

CONTINGENT LOSS
Regarding software development project entrusted to the domestic subsidiary, KAGA SOLNET, the delivery
was delayed, and the contract cancellation was informed from certain customer on May 7, 2008. The entrusted
amount of the project was ¥475 million ($4,847 thousand). KAGA SOLNET was accused at the Tokyo District
Court on January 29, 2009 and is required for the compensation loss of ¥513 million ($5,235 thousand).
Although it is impossible to estimate the reasonable impact at this points, there is a possibility that it will affectthe results of the company's operation depending on the result of the trial. The work-in-process for the project is
15 million yen ($153 thousand) and the advance payment to the consignee is 124 million yen($1,265 thousand),
which are recognized on the balance sheet as of March 31, 2009.

17.

SUBSEQUENT EVENT
The following appropriations of retained earnings at March 31, 2009 was approved at the Company's
shareholders meeting held on June 26, 2009:
Millions of Yen

Thousands of
U.S. Dollars

Year-end cash dividends, ¥15.00 ($0.15) per share
Other reserve

¥

413
1,200

$ 4,214
12,245

Total¥ 1,613$ 16,459

-19-

18.

SEGMENT INFORMATIONa.

Operations in Different Industries
The Company and subsidiaries operate within one business segment, which is the electronic component trading business.

b.

Operations by Geographic Area
The following table shows segment information by geographic area for the years ended March 31, 2009 and 2008:
Millions of Yen
2009
Japan

North
America

EuropeEast Asia

Eliminations
or Corporate

326
205

¥ 3,62555¥ 45,847
9,945¥ (24,531 )Consolidated(1) Sales and operating income
Sales:
Outside customers
Interarea¥ 223,812
14,326

Total sales

238,138

531

3,680

55,792(24,531 )273,610

Operating expenses

236,628

629

3,731

54,976(24,604 )271,360

Operating income (loss)(2) Total assets¥¥ 273,610

¥

1,510

¥

(98 )

¥

(51 )

¥

816

¥

73

¥

2,250

¥

98,543

¥

277

¥

819

¥ 20,545¥(2,933)¥ 117,251

Consolidated

Thousands of U.S. Dollars
2009
Japan

North
America

EuropeEast Asia

Eliminations
or Corporate

Sales:
Outside customers
Interarea$ 2,283,796
146,184$ 3,326
2,092$ 36,990
561$ 467,827
101,480$ (250,317 )Total sales

2,429,980

5,418

37,551

569,307(250,317 )

2,791,939

Operating expenses

2,414,572

6,418

38,071560,980(251,061 )

2,768,980

15,408$ (1,000 )$$ 1,005,541$ 2,827$ 8,357(1) Sales and operating income

Operating income(loss)(2) Total assets$(520 )$$ 2,791,939

8,327

$

744

$ 209,643$(29,929 )$

22,959$ 1,196,439

Note:1) As discussed in Note 2.b., effective April 1, 2008, the Company applied PITF No.18, “Practical Solution on Unification of Accounting Policies Applied to Foreign Subsidiaries
for the Consolidated Financial Statements”. The effect of this change was to decrease operating income of East Asia by ¥63 million ($643 thousand) for the year ended March 31, 2009.
2) As discussed in Note 2.d., effective April 1, 2008, the Company applied ASBJ Statement No.9, “Accounting Standard for Measurement of Inventories”. The effect of this change
was to decrease operating income of Japan by ¥83 million ($847 thousand) for the year ended March 31, 2009.

- 20 -

Millions of Yen
2008
Japan

North
America

EuropeEast Asia

Eliminations
or Corporate

Sales:
Outside customers
Interarea¥ 234,106
16,505¥ 1,012404¥ 2,545143¥ 53,668
9,425¥ (26,477 )Total sales

250,611

1,416

2,688

63,093(26,477 )291,331

Operating expenses

245,201

1,549

2,872

60,756(26,833 )283,545

5,410¥ (133 )¥ (184 )¥ 2,337¥356¥¥ 1,853¥ 25,604¥(4,468)

Consolidated(1) Sales and operating income

Operating income(loss)¥(2) Total assetsc.

¥ 107,045

389

Sales to Foreign Customers
Sales to foreign customers for the years ended March 31, 2009 and 2008 are as follows:
Millions of Yen
2009
2008

Thousands of
U.S. Dollars
2009

Sales to:
North America
EuropeEast Asia¥ 3,094
4,840
63,088¥ 2,533
4,646
65,260$Total¥ 71,022¥ 72,439$ 724,714- 21 -

31,571
49,388643,755¥ 291,331

¥

7,786

¥ 130,423

- 21 -