ANNUAL REPORT 2012
Year Ended March 31, 20122011
Japan Society of MechanicalEngineers Technology Award

Yushin Precision Equipment Co., Ltd.
Securities Identification Number : 6482

To Our Shareholders
Let me extend my wishes to you shareholders for your health andprosperity. We would like to appreciate for your continued support of ourbusiness. We would like to present to you an overall view of our company’s

Impossible mark the starting point of a challenge.

39th year of operations, the fiscal year from April 1, 2011 to March 31, 2012.
June 2012
Susumu Kotani, Yushin’s FounderBusiness Results
In this fiscal year as for theworld economy, although the
U.S. economy was on therecovery trend, the prospects
were vague due to the anxiety
about debt in Europe whichcaused the economic growth ofthe emerging countries plateau.
The domestic economy was on
the recovery trend led by the
restoration demand from theearthquake.
As for industries related to
Yushin, demand from Asia andNorth America were strong. By
industry, automotive, home
appliance, medical and daily
products were strong.
Under these circumstances,
Yushin Group linked demand
from Southeast Asia to order,
and increased sales to theindustries such as Automotive,
electronic component, andoptical and precision equipment.
As a result, consolidated net
sales increased by 13.3% fromthe previous FY to ¥14,240
million. By introducing new
products, operating income
increased by 15.9% from the1

Mayumi Kotani
President

Medium-Term Objectives

previous FY to ¥1,272 million,
ordinary income increased by
20.0% from the previous FY to¥1,265 million and net income
was by 6.6% from the previous FY
to ¥778 million despite the effectsof yen’s appreciation.
For the year under review, afull-year dividend is ¥20 per share,comprising an interim dividend of¥10 per share and a year-end
dividend of ¥10 per share.

Outlook for Fiscal Year 2013

( year ending March 31, 2013 )As for the businessenvironment surrounding the
Yushin Group, in Japan, demandis expected for industries suchas Automotive, electronic
component and home appliance,
and it is anticipated that capital
investment on power-saving
equipment will grow due to theanxiety about power supply.
Globally, it is anticipated that
Southeast Asia, Korea and North
America will stay strong.
Under these circumstances,
Yushin Group will enhance theproduct lineup utilizing design
optimization while promoting
receiving orders forgeneral-purpose robot targetingat growing market. Profit
increase is expected by sales
increase in semiconductor
related equipment and inoverseas subsidiaries.
Furthermore, we will progresscost-cutting including
purchasing from China.

Yushin has set medium-termtargets of net sales of ¥30
billion and ordinary income of¥5 billion, and as an earningindex, ordinary income on net
sales of 15% or more.
Yushin aims at becoming
number one across the board
in the “take-out robot” industry,by speedily developing
products differentiated by their
quality and superiority thatmeet our customer needs, andby conducting business evenmore aggressively in the global
market.

Enhancement of products
We have developed
high-speed take-out robot
utilizing design optimization
technology in 2010. This
technology will be applied
hereafter to general purpose
take-out robot. It is thetechnology which can largely
contribute to power-saving by
reducing weight and power
consumption. We will transmit
information of thedefinitely-differentiatedproducts by appealing theperformance superiority suchas high-speed, light weight andpower-saving.
We will also develop
businesses in thesemiconductor-related andmedical-related area as new
domains that havetechnological synergies.

Human resource development
In order to enhance theproducts and the global
network, we will improve
human resource development
such as continuing high leveltechnical training program (inall over the world) andinternational trainee program.

Enhancement of global network
We have developed a sales
and service network for
take-out robots in Japan, theU.S, Asia, and Europe. We will
expand and strengthen the
network in areas wherebusiness is expected to grow,including Inland China, India,
Mexico and Brazil, to develop a
global business that canadequately respond toworldwide customer purchases.
We will also increase of
supplies from Guangzhou
Factory in China to prepare thesales expansion in China.

2

Outline of Yushin Precision Equipment Co., Ltd.
Our name “Yushin”, means to be both conscientious and trustworthy in Japanese. As these terms
suggest, our goal is to be a company that earns and deserves the trust of customers. This is why weConsolidated Financial Highlights
Yushin Precision Equipment Co., Ltd. and Subsidiaries
Years ended March 31

work constantly to develop products and systems based on what we call “Heartful Technology”, thatreaches heart to heart.
Since 1973, we have been striving to make the molding process more efficient, focusing on thedevelopment and manufacturing of take-out robots for plastic injection molding products. To us, thewords “impossible” or “it can’t be done” mark the starting point of a challenge.
To be successful, we must continue to introduce innovative products, for instance, ultra-high speed
robots and factory automation systems for bringing new capabilities into the customers.
As an innovator in the plastic molding process, Yushin intends to continue developing equipment thatwill improve quality, and simplify the molding new types of products, such as large-capacity recording
media and IT-related equipment. Taking advance with automation for plastic molding plants, Yushin has
been expanding its service network throughout the world.

Thousands of
U.S. Dollars

Millions of Yen
2012

2011

2010

2009

2008

2012

￥ 14,240
1,272￥ 12,567
1,097￥ 12,369
752￥ 19,272
2,829￥ 21,108
3,522$ 173,658
15,523

1,265
778
565

1,055
729
477

870
487
478

2,353
1,468
686

3,494
2,023
449

15,4279,491
6,891

At Year end:
Total assets ・・・・・・・・・・・・・・・・・・・・・・・・・
Equity ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・

22,641
18,787

21,583
18,495

20,593
18,115

21,977
17,864

24,867
17,997276,117229,113

Per share of common stock:
Net income ・・・・・・・・・・・・・・・・・・・・・・・・・・
Cash dividends ・・・・・・・・・・・・・・・・・・・・・
Equity ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・￥ 44.50
20.00
1,072.24￥ 41.73
18.00
1,055.42￥ 27.87
15.00
1,034.11￥ 82.71
28.00
1,019.99￥ 113.68
35.00
1,008.30

U.S. Dollars$ 0.540.24
13.07

For the year:
Net sales ・・・・・・・・・・・・・・・・・・・・・・・・・・・・
Operating income ・・・・・・・・・・・・・・・・・・
Income before income taxes
and minority interest ・・・・・・・・・・・・・・
Net income ・・・・・・・・・・・・・・・・・・・・・・・・・
R&D Expenses ・・・・・・・・・・・・・・・・・・・・・

Yen%

Equity ratio:
Return on assets ・・・・・・・・・・・・・・・・・・・
Return on equity ・・・・・・・・・・・・・・・・・・・・

3.5 %
4.0

3.5 %
4.2

2.3 %
2.7

6.3 %
8.2

8.5 %
11.7

Notes: The computation of net income per share is based on the weighted average number of shares of common stock outstanding during each year, retroactively adjusted for stock splits,
including those stock splits made after year-end.
Cash dividends per share are dividends applicable to the respective years including dividends to be paid after the end of the year.
The computation of equity per share is based on the number of shares of common stock outstanding each end of year, retroactively adjusted for stock spilits, including those stock splits
made after year-end.
Translations of Japanese Yen amounts into U.S. dollar amounts are made at the rate of ¥82 to $1.

(million yen)

Net Sales
2008

2008

21,1082009(million yen)

Net Income

2,023

2009

19,272

1,468

2010

12,3692010

2011

12,567

2011

729

2012

778

14,240

2012
0

5,000

10,00015,00020,000Total Assets

25,0005,000

10,00015,00020,0002,000

17,997

2009

17,864

2010

18,1152011

18,495

2012

18,78722,641
0

1,500

2008

21,583

2012

1,000

24,867
20,5932011

500

Equity21,97720100(million yen)

2008
2009

30,000487

25,00030,000

0

2,500

3,000

(million yen)

5,000

10,00015,00020,00025,00030,000Estimates, Forecasts, and Plans

Serving society through developing plastics industry.
3

The performance estimates, forecasts of the business environment, and business plans contained in this publication are based on the information available at the time of compilation.
Statements herein regarding these performance estimates, forecasts of the business enviorment,and business plans may contain inaccurate elements. In addition, there is a possibility of unknown
risks, uncertainties, and contingencies emerging that may invalidate these performance estimates, forecasts of the business environment, and business plans. As a result, the reader is requested
to understand that actual results / performance, the business environment and business plans in the future may differ materially from the content of this publication.

4

Review of Operations
Sales by product

Sales by region

Parts and maintenance service

Europe 5.6

Europe 5.3

Europe 15.7

Other 1.2

Other 1.2

Other 1.8

14.8

2012
63.5
Composition
21.7
of Sales(%)

2012
Take-out robots

Asia Composition Japan
36.5
of Sales
39.8

(%)
North
America
16.8

Asia
37.0

2011
Composition Japan
40.7
of Sales(%)
North
America
15.8

Asia
19.1

2010
Composition Japan
37.7
of Sales(%)
North
America
25.8

Custom-ordered equipments

Take-out Robots

Custom-ordered Equipments

Parts and maintenance service

Performance of geographic segments【Japan】
Net sales increased by 12.0% to ¥13,104 andoperating income increased by 24.0% to ¥954 million due
to good performance of custom-ordered equipments.

Net sales of take-out robot
increased by ¥135 million (1.5%) fromthe previous FY to ¥9,048 million as
YC, new product of flagship traverse
type take-out robot in which design
optimization was applied, increased
its sales after August.

Net sales of custom-ordered equipments
increased by ¥1,415 million (84.8%) fromthe previous FY to ¥3,085 million thanks tothe progress as planned in sales of disc
related equipment, which was in thebacklog of orders from the previous year,
and the semiconductor related equipment.

Net sales of parts and maintenanceservice increased by ¥121 million(6.1%) from the previous FY to¥2,105 million.

Net Sales

Net Sales

Net Sales

2010(million yen)

3,523

2011

8,912

2011

2012

5,705

9,048

2012

3,000

Overseas sales

5

2010

6,029
5,565

0

6,000

(million yen)

9,000

12,000

3,590
918

2,281
0

4,757

2,000

Overseas sales

3,085
4,000

592

2010

1,670

6,000

(million yen)Overseas sales simply indicate the sales of Yushin for
countries or areas other than Japan. Overseas sales
increased by 21.3% year on year to ¥9,036 million. The
ratio of overseas sales on the total sales was 63.5%,
4.2% increase from the previous year.
As for each region, sales to North America increased by
20.2% to ¥2,387 million, sales to Asia by 22.0% to¥5,669 million and sales to Europe increased by 21.8% to¥801 million. Southeast Asia, especially Thailand andIndonesia, Korea and North America were strong.

【Asia】Net sales increased by 33.1% from the previous FY
to ¥2,713 million due to the good performance of thesubsidiaries in Korea and Thailand, but operating
income decreased by 24.7% to ¥153 million due to theeffects of yen’s appreciation on imports from Japan.

1,582

2011

963

2012

1,049
0

【North America】
As for the subsidiary in the United States, net sales
increased by 4.0% from the previous FY to US$ 22 million,
but in yen, net sales decreased by 5.4% from the previous
FY to ¥1,815 million. Operating income increased by 0.9%
to ¥178 million.

Overseas sales

500

Overseas sales

1,000

1,984
2,105
1,500

2,000

2,500

【Europe】
Net sales increased by 6.6% from the previous FY to¥240 million and operating income increased by 75.7%
from the previous FY to ¥13 million.

6

Global Network (As of June 30, 2012)

Kita-Kanto General Sales Office

U.S.A.

Korea

China (Shenzhen)

Taiwan

Malaysia

India

England

China (Guangzhou)

Tokyo General Sales Office

Headquarters & Factory

Chubu General Sales Office

Headquarters & Factory

Yushin Precision Equipment Co., Ltd.
11-260 Kogahonmachi, Fushimi-ku, Kyoto, Japan 612-8492
TEL: +(81)75-933-9555

England <Birmingham>■■ Netherlands <Ede>

Korea <Seoul>
Korea <Daegu>
U.S.A. <Indiana>
China■ Italy <Torino>
U.S.A. <Ohio> ■ ■ ■ Canada <Tronto>
China <Shanghai> <Tianjin>■■■
U.S.A. <Rhode Island> Spain
China <Guangzhou>■■■ Japan <Kyoto>■<Barcelona>
China <Shenzhen>■
U.S.A. <California> ■■U.S.A. <North Carolina>■■ Taiwan <Taipei>■■
U.S.A. <Texas>
India <Chennai> ■■Taiwan <Taichung>■■ Philippines <Manila>■■
Vietnam <Hanoi>
Thailand <Bangkok>
Malaysia <Kuala Lumpur>
Vietnam <Ho Chi Minh>

Chubu General Sales Office
Headquarters & Factory

Nagoya-Nishi Sales OfficeSubsidiaries (Sales)
■ USA

■ UK

Yushin Automation Limited <Birmingham>
Unit 15-16 Aston Fields Industrial Estate, Aston Road,
Bromsgrove, Worcestershire B60 3EX, United Kingdom
TEL: +(44)1527-558-218■ India

Yushin Precision Equipment (India) Pvt. Ltd. <Chennai>
Kalyani Towers, 3rd Floor, T2, New No. 69, Old No. 174C,
2nd Avenue, Ashok Nagar, Chennai 600 083 India
TEL: +(91)44-4231-8005■ Thailand

Yushin Precision Equipment (Thailand) Co., Ltd. <Bangkok>
179/346 Supalai Place, Soi, Sukhumvit 39 (Prompong),
Sukhumvit Rd., Klongton Nua, Wattana, Bangkok 10110 Thailand
TEL: +(66)2-662-2580~2■

Indonesia<Jakarta>

Toyama Sales Office
Nagano Sales Office■ Malaysia

Yushin Precision Equipment Sdn. Bhd. (Malaysia) <Kuala Lumpur>
No. 13A, Jalan Kenari 17D, Bandar Puchong Jaya,
47170 Puchong, Selangor Darul Ehsan, Malaysia
TEL: +(60)3-8076-2177■ China

Yushin Precision Equipment Trading (Shenzhen) Co., Ltd.
13F Tower 1, Yang Guang Hua Yi Building NO.3003,
Nan Hai Ave, Nan Shan District, Shen Zhen, China
TEL: +(86)755-8358-0139
Yushin Precision Equipment Trading (Shanghai) Co., Ltd.
Unit E2, 19/Floor, No.1800 Zhongshan West Road, Shanghai, 200235 China
TEL: +(86)21-6440-1586~7
Tianjin Office

Nishi-Nihon General Sales Office
Hiroshima Sales Office

Iwate Satellite Office

Fukuoka Sales Office

Tohoku Sales OfficeTochigi Sales OfficeKita-Kanto General Sales Office

Ohita Satellite Office

Tsukuba Sales Office
Tokyo General Sales Office
Nishi-Kanto Sales Office
Shizuoka Sales Office7

Yushin America, Inc. <Rhode Island>
35 Kenney Drive, Cranston, RI 02920 U.S.A.
TEL: +(1)401-463-1800
Yushin America, Inc. California Office
Yushin America, Inc. Ohio Office
Yushin America, Inc. Texas Office
Yushin America, Inc. North Carolina Office
Yushin America, Inc. Indiana Office■ Taiwan

Yushin Precision Equipment (Taiwan) Co., Ltd. <Taipei>
10F., No.45, Sec.1, Minquan E. Rd., Zhongshan District, Taipei City 104,
Taiwan (R.O.C.)
TEL: +(886)2-2585-0507
Taichung Office■South Korea Yushin Korea Co., Ltd. <Seoul>
Tawon Techno-town F-101, 98 Okuchundong-Ro, Siheung-Shi,
Gyeonggi-Do, 429-450, Korea
TEL: +(82)31-433-9655~6
Daegu OfficeSubsidiaries (Factory)■ ChinaGuangzhou Yushin Precision Equipment Co., Ltd.
No.2 Chuangli Road, XiangShan street, Zengcheng
Economic & Technological Development District,
Guangzhou City, Guangdong Province, China
TEL: +(86)20-8269-0091

Representative offices■ Indonesia Representative Office <Jakarta>
Plaza Sentral 19th Floor, Jalan Jenderal Sudirman No. 47, Jakarta
12930, Indonesia
TEL: +(62)21-571-1737■Vietnam Representative Office <Hanoi>
5th Floor NOZA Building, 243 Cau Giay Street, Cau Giay District,Hanoi, Vietnam
TEL: +(84)43-767-3844
Ho Chi Minh Representative Office
No 141 D3 St, Ward 25, Binh Thanh Dist, Ho Chi Minh City
TEL: +(84)83-899-0662■Philippines Representative Office <Manila>
Unit 1-D, Grnd. Flr., APMC Bldg. 136 Amorsolo St., cor.
Gamboa Legaspi Village, Makati City, Philippines
TEL: +(63)2-893-7546

Agents■CanadaEn-Plas, Inc. <Tronto>
1395 Morningside Avenue Scarborough, (Toronto)
Ontario M1B 3J1, Canada
TEL: +(1)416-286-3030■The Netherlands

Polymac-Robotics B.V. <Ede>
Morsestraat 20 Ede 6716 AH EDE, The Netherlands
TEL: +(31)318-648615■Itary

MACAM S.r.l. <Torino>
Via Asti, 88/A 10090 Rivoli (TO), Italia
TEL: +(39)11-959-50-57■SpainMecman Industrial <Barcelona>
Avda. Principal, 41 Pol. Ind. Can Clapers 08181 Sentmenat(Barcelona) Apdo, correos, 98, Spain
TEL: +(34)902-636-717

8

Topics

Yushin Earns 2011 Japan Society of Mechanical Engineers Technology Award for“Invention of Take-Out Robot for High-Performance Injection Molding Machines Using
Structural Optimization Technology”
Yushin Precision Equipment Research andDevelopment Dept. members Takayo Kotani and
Hiroyuki Arai were presented with the Japan Society of
Mechanical Engineers Technology Award by the JSMEat a ceremony held at Tokyo’s Meiji Kinenkan on April
20, 2012.
In order to recognize and encourage excellence inmechanical engineering and technical research, theJSME bestows its Technology Award upon technicallysuperior projects such as new techniques, products, or
systems which often require years of development.
Judging criteria are 1) Ingenuity and novelty, 2) Relative
superiority in quality or performance, 3) Benefit to societyor economy through increased productivity, 4) Relevanceto fields of mechanical engineering or manufacturing, and5) Ripple effect or success in the field.
Receiving such high praise was Yushin's "HSA
Series" of high-speed robots, newly-developed withdesign optimization technology to boost production
output. By incorporating Design Optimization* - one of
the world's newest engineering methods - into its
design, the HSA was developed in 2010 to be lighter,9thinner, and more resistant to vibration:- Robot body design optimized for high speed andlight weight- End-of-arm tool design optimized for thinness torequire less mold-opening width- Uses vibration-reduction technology to fightvibration
Upon accepting the award, Takayo Kotani reflectedthat "From the moment we decided to employ a newtechnology called Design Optimization toward thedesign of a new robot, right up until the productroll-out, our entire company worked together on thisproject. By introducing design optimization, we createdconstructs that differed from conventional designs andsucceeded in building a lighter, faster robot. Motivatedby this award, I am sure Yushin Precision Equipment
will continue to produce useful devices for the world."* Design Optimization is what Yushin calls the practice ofapplying CAE (Computer-Aided Engineering) to seek the mosttheoretically optimal form for a robot based on its mechanismand motions. This approach is used to design lighter weightand increased reliability into automobiles and aircraft.

Yushin Korea Moves to New Facility to
Expand Production Capabilities- Open House Held on March 21
Yushin Korea Co., Ltd., the Korean subsidiary of
Yushin Precision Equipment, Co., Ltd. of Kyoto, Japan,
has moved to a new, larger facility to keep pace withvigorous demand for take-out robots in Korea. With816 sq. m (8,783 sq. ft) of floor space, the new plant isroughly twice the size of Yushin Korea’s former
location. Yushin Korea welcomed its businessassociates to an open house event at thejust-completed facility on March 21st 2012, to tour thebrand-new building and equipment prior to the start ofproduction.
Yushin Korea uses a “knockdown” system of
production where it assembles components and parts
shipped from the Kyoto main office into finishedproducts. Completion of the new factory will increase
Yushin Korea’s production capacity: up to 1,000
robots may be shipped annually.

Yushin Acquired Land for
New Technical Center
Yushin Precision Equipment has acquired land
(10,849.65 sq.m) for constructing the technical centernear its headquarters factory in Kyoto, Japan. The
technical center will be equipped with clean rooms
which are required for semiconductor and medical
field. The construction is planned to be completed inspring 2013.

10

Board of Directors and Auditors

Financial Review

Yushin Precision Equipment Co., Ltd. and Subsidiaries(As of July 1, 2012)

1.Net Sales

President and Representative Director
Mayumi Kotani

Managing Director
Yasuharu Odachi

Executive Managing Director
Satoshi Kimura

Director
Yuji Tsujimoto

Net sales increased by 13.3% from the previous
FY to ¥14,240 million. Yushin Group linked demand
from Southeast Asia to order, and increased sales
to the industries such as Automotive, electronic
component, and optical and precision equipment.
By products, Net sales of take-out robot increasedby ¥135 million (1.5%) from the previous FY to¥9,048 million as YC, new product of flagshiptraverse type take-out, increased its sales after
August. Net sales of custom-ordered equipments
increased by ¥1,415 million (84.8%) from theprevious FY to ¥3,085 million thanks to theprogress as planned in sales of disc related
equipment, which was in the backlog of orders
from the previous year, and the semiconductor
related equipment.

Director
Yasushi Kitagawa

Full-time Corporate Auditor
Shujiro Sawada

2.Cost of Sales and Selling, General and
Administrative Expenses

Outside Corporate Auditor
Yasuhiro Orita

Outside Corporate Auditor
Takao Yoshikawa

Highly functional new YC series contributed tomaintain the robot price even under the downward
pricing pressure led by yen’s appreciation. Cost-cut
activity including purchasing from China was continued
and cost reduction on expenses was also maintained.

Outside Corporate Auditor
Hiroho Kamakura

3.Operating Income and Net Income

Organization Chart

By introducing new products, operating income
increased by 15.9% from the previous FY to ¥1,272
million and net income increased by 6.6% from theprevious FY to ¥778 million despite the effects of
yen’s appreciation.

(As of June 30, 2012)
General meeting ofshareholders

Board of Directors

Net assets increased by ¥291 million from the end of
the previous FY to ¥18,787 million due to the rise ofretained earnings by ¥376 million. Foreign currencytranslation adjustments decreased by ¥78 million.

5.Cash Flow
The balance of cash and cash equivalents on March
31, 2012 decreased by ¥1,818 million from the end of
the previous FY to ¥8,013 million. Main reason is asfollows.
【Cash flow from operating activities】
Income before income taxes and minority interests
adjustment was ¥1,265 million, but due to theincrease of ¥428 million in receivables and ¥924
million in inventories and total amount of taxes of¥349 million, cash flow from operating activities for
the FY ended March 31,2012 was a net inflow of¥584 million ( it was a net inflow of ¥149 million in theprevious FY ).
【Cash flow from investment activities】
Due to the purchases of property (¥2,008 million),cash flow from investment activities for the FY ended
March 31,2012 was a net outflow of ¥1,920 million ( itwas a net outflow of ¥254 million in the previous FY ).
【Cash flow from financing activities】
Due to the dividends paid of ¥402 million, cash flowfrom financing activities was a net outflow of ¥409
million ( it was a net outflow of ¥174 million in theprevious FY ).

Corporate Auditors

4.Financial Condition
President

Executive
Managing Director

Internal
Auditing Dep.

11

Quality
Controll Dep.

Corporate
Planning Dep.

Business
Promotion Dep.

Sales & Customer
service H.Q

Research &Development H.Q

Sales Dep.

Customer
Service Dep.

Production H.Q

Purchase H.Q

Administrative
H.Q

Total assets increased by ¥1,058 million from the endof the previous FY to ¥22,641 million due to theincrease of ¥1,890 million in land, ¥377 million in raw
materials and supplies, ¥268 million in finished goods
and ¥225 million in work-in-process. Cash and time
deposits decreased by ¥1,906 million.
Total liabilities increased by ¥766 million from the endof the previous FY to ¥3,854 million mainly due to theincrease of ¥395 million in trade notes and accounts
payable.

12

Consolidated Balance Sheets
Yushin Precision Equipment Co., Ltd. and Subsidiaries
March 31,2012

ASSETS

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

2012

2011

2012

Cash and cash equivalents (Note 10) ・・・・・・・・・・・・・・・・・・・・・・・￥ 8,013￥ 9,831$ 97,723

Short-term investments (Note 3 and 10) ・・・・・・・・・・・・・・・・・・・・

33

121

411

CURRENT ASSETS:

Receivables (Note 10) :Thousands of
U.S. Dollars(Note 1)Millions of Yen

LIABILITIES AND EQUITY

2011

2012

CURRENT LIABILITIES:

2012

Payables (Note 10) :Trade notes

・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・

Trade accounts

￥

428

￥

275

$

5,226

・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・

1,885

1,642

22,993

Trade notes ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・

868

1,001

10,593

Construction and other ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・

469

371

5,719

Trade accounts ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・

3,801

3,287

46,363

Income taxes payable (Note 10) ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・

300

154

3,670

Allowance for doubtful receivables ・・・・・・・・・・・・・・・・・・・・・・・・・

(18)

(17)

(221)

Accrued expenses ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・

294

282

3,588

Inventories (Note 4) ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・

3,615

2,744

44,094

Warranty reserve ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・

104

104

1,279

Deferred tax assets (Note 7) ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・

365

339

4,453

Other current liabilities (Note 7) ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・

245

134

2,989

Other current assets ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・

283

340

3,461

3,728

2,965

45,467

Total current assets ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・

16,964

17,649206,880

Liability for retirement benefits to directors (Note 5) ・・・・・・・・・

66

66

814

Total current liabilities

・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・

LONG-TERM LIABILITIES:PROPERTY, PLANT AND EQUIPMENT:Land ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・

3,935

2,044

47,992Other (Note 5) ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・

59

55

722

Buildings and structures ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・

2,915

2,880

35,552

Total long-term liabilities ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・

126

122

1,536

Machinery and equipment ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・

289

293

3,529

Furniture and fixtures ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・

1,079

983

13,160Construction in progress ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・

3

97

39

Total ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・

8,222

6,299

100,274

Accumulated depreciation ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・(3,117)(2,971)(38,015)

17,819,033 shares in 2012 and 2011 ・・・・・・・・・・・・・・・・・・・・・

1,985

1,985

24,215

Net property, plant and equipment ・・・・・・・・・・・・・・・・・・・・・・・・

5,105

3,328

62,258

Capital surplus ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・

2,023

2,023

24,681Retained earnings ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・

15,625

15,249190,554

(347)

(347)

(4,242)EQUITY (Notes 6 and 14):
Common stock, authorized 40,000,000 shares; issued,

Treasury stock - at cost:
328,960 shares in 2012 and 328,497 shares in 2011 ・・・・・

INVESTMENTS AND OTHER ASSETS:

Accumulated other comprehensive income:Investment securities (Note 3 and 10) ・・・・・・・・・・・・・・・・・・・・・・・

241

250

2,944

Insurance funds ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・

123

112

1,500

Unrealized gain on available-for-sale securities ・・・・・・・・・・

47

51

580

Prepaid pension cost (Note 5) ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・

65

84

796

Foreign currency translation adjustments ・・・・・・・・・・・・・・・・

(581)

(503)

(7,087)

Defered tax assets (Note 7) ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・

16

19

205

Total ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・

18,75318,459228,702

Other assets ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・

125

138

1,532

Minority interests ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・

33

35

411

Total investments and other assets ・・・・・・・・・・・・・・・・・・・・・・・

572

606

6,979

Total equity ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・

18,787

18,495229,113TOTAL ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・￥ 22,641￥ 21,583$ 276,117￥ 22,641￥ 21,583$ 276,117

TOTAL

・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・

See notes to consolidated financial statements.

13

14

Consolidated Statement of Income

Consolidated Statement of Changes in Equity

Yushin Precision Equipment Co., Ltd. and Subsidiaries
Years Ended March 31,2012

Yushin Precision Equipment Co., Ltd. and Subsidiaries
Years Ended March 31,2012

2011

2012
￥ 14,240￥ 12,567$ 173,658

COST OF SALES ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・
Gross profit ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・

8,810
5,429

7,709
4,858

107,439
66,218SELLING, GENERAL AND
ADMINISTRATIVE EXPENSES (Note 8) ・・・・・・・・・・・・・・・・・・
Operating income ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・

4,157
1,272

3,760
1,097

50,695
15,523

Outstanding
Number of Common
Shares ofStock
Common Stock

BALANCE, APRIL 1, 2010 ・・・・・・・・・・・・・・・・・

CapitalSurplus

Unrealized
Foreign
Gain onCurrency
Retained Treasury
Available-forTranslation
Earnings
Stock
Sale Securities Adjustments

17,491 ￥ 1,985 ￥ 2,023 ￥14,694 ￥ (346)

INCOME TAXES (Note 7):
Current ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・
Deferred ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・
Total income taxes ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・
NET INCOME BEFORE MINORITY INTERESTS ・・・・・・・・
MINORITY INTERESTS IN NET INCOME ・・・・・・・・・・・・・・・・￥

Cash dividends, ￥10 per share・・・・・・・・・・・・・・・・・・

(174)

(174)

(174)

(1)

(1)

(1)

Net change in the year ・・・・・・・・・・・・・・・・・・・・・・・・・・

(0)

1,265

1,055

15,427BALANCE, MARCH 31, 2011・・・・・・・・・・・・・・・

17,491

341
(28)
313
742
12

6,152
(245)
5,906
9,521
30

Yen
￥ 44.50
20.00

$

729

9,491

￥27 ￥18,115
729

384
(876)
396
(95)

￥

￥ 68 ￥ (338) ￥18,087
729

44
(119)
33
(42)

778

Total
Equity

729

31
(71)
32
(7)

504
(20)
484
780
2

Minority
Interests

Total

Net income ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・
Purchase of treasury stock ・・・・・・・・・・・・・・・・・・・・・・

OTHER INCOME (EXPENSES):Interest and dividend income ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・
Foreign exchange loss ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・
Other-net ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・
Other expenses-net ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・
INCOME BEFORE INCOME TAXES AND
MINORITY INTERESTS・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・

PER SHARE OF COMMON STOCK (Notes 2.p and 13):
Net income ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・
Cash dividends applicable to the year ・・・・・・・・・・・・・・・・・・・・・・・

Millions of Yen
Accumulated othercomprehensive income

2012

NET SALES ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・

NET INCOME ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・

Thousands

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

1,985

2,023 15,249

(347)

(17)

(164)

(181)

8

(173)

51

(503) 18,459

35

18,495

Net income ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・

778

778

778

Cash dividends, ￥23 per share・・・・・・・・・・・・・・・・・・

(402)

(402)

(402)

(0)

(0)

Purchase of treasury stock ・・・・・・・・・・・・・・・・・・・・・・
Net change in the year・・・・・・・・・・・・・・・・・・・・・・・・・・・

BALANCE, MARCH 31, 2012 ・・・・・・・・・・・・・・

(0)
(0)

(3)

17,490 ￥ 1,985 ￥ 2,023 ￥15,625 ￥ (347)

(78)

(2)

(81)

￥ 47 ￥ (581) ￥18,753(83)￥ 33 ￥18,787

U.S. Dollars￥ 41.73
18.00

$

0.54
0.24
Thousands of U.S. Dollars (Note 1)
Accumulated othercomprehensive income

Consolidated Statement of Comprehensive Income

CommonStock

Yushin Precision Equipment Co., Ltd. and Subsidiaries
Years Ended March 31,2012

BALANCE, MARCH 31, 2011・・・・・・・・・・・・・・・
Thousands of U.S. Dollars(Note 1)Millions of Yen

15

Retained
Earnings

TreasuryStock$ 24,215 $ 24,681 $185,969 $ (4,234)

Unrealized
Foreign
Gain onCurrency
Available-for- Translation
Sale Securities Adjustments

Minority
Interests

Total

Total
Equity$ 622 $ (6,134) $225,120$ 437 $ 225,558

Net income ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・

9,491

9,491

9,491

Cash dividends, $0.28 per share・・・・・・・・・・・・・・・・・(4,905)(4,905)(4,905)

(8)

(8)

2012

2011

2012

NET INCOME BEFORE MINORITY INTERESTS ・・・・・・・・

￥ 780

￥ 742

$ 9,521

Net change in the year ・・・・・・・・・・・・・・・・・・・・・・・・・・

OTHER COMPREHENSIVE INCOME (Note 12) :Unrealized gain on available-for-sale securities ・・・・・・・・・・・・・
Foreign currency translation adjustments ・・・・・・・・・・・・・・・・・・・
Total other comprehensive income ・・・・・・・・・・・・・・・・・・・・・・・・

(3)
(81)
(85)

(17 )
(165)
(183)

(42)
(994)
(1,037)BALANCE, MARCH 31, 2012 ・・・・・・・・・・・・・・

COMPREHENSIVE INCOME (Note 12) ・・・・・・・・・・・・・・・・・・・

￥ 695

￥ 559

$ 8,483

TOTAL COMPREHENSIVE INCOME
ATTRIBUTABLE TO (Note 12) :Owners of the parent ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・
Minority interests ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・

￥ 696
(0)

￥ 547
11

$ 8,495(11)

See notes to consolidated financial statements.

CapitalSurplusPurchase of treasury stock・・・・・・・・・・・・・・・・・・・・・・

(8)
(42)
$ 24,215 $ 24,681 $190,554 $ (4,242)

(953)

(995)

$ 580 $ (7,087) $ 228,702(25)(1,021)$ 411 $ 229,113

See notes to consolidated financial statements.

16

Consolidated Statement of Cash Flows

Notes to Consolidated Financial Statements
Yushin Precision Equipment Co., Ltd. and Subsidiaries
Years Ended March 31, 2012

Yushin Precision Equipment Co., Ltd. and Subsidiaries
Years Ended March 31, 2012

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

OPERATING ACTIVITIES:
Income before income taxes and minority interests ・・・・・・・・・
Adjustments for:
Income taxes - paid ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・
Income taxes - refund ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・
Depreciation and amortization ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・
Changes in assets and liabilities:
Increase in trade receivables ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・
Increase in inventories ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・
Increase in trade payables ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・
Increase (decrease) in provision for doubtful receivables・・・
Other - net ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・
Total adjustments ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・
Net cash provided by operating activities ・・・・・・・・・・・・・・・・
INVESTING ACTIVITIES:
Purchases of property, plant and equipment ・・・・・・・・・・・・・・・・
Proceeds from sales of property, plant and equipment ・・・・・
Purchases of investment securities ・・・・・・・・・・・・・・・・・・・・・・・・・・
Proceeds from sale of investment securities ・・・・・・・・・・・・・・・・・・・・
Other - net ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・
Net cash used in investing activities ・・・・・・・・・・・・・・・・・・・・・・

2012

2011

2012

￥ 1,265￥ 1,055$ 15,427(349)(4,257)

219

(213)
224
260

(428)
(924)
476
1
324
(680)

(1,076)
(556)
561
(1)
(104)
(905)

(5,229)(11,268)
5,810
13
3,951
(8,304)

584

149

7,123

2,675

1.BASIS OF PRESENTATION OF CONSOLIDATED FINANCIAL STATEMENTS
The accompanying consolidated financial statements have been
prepared in accordance with the provisions set forth in theJapanese 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 in certain respects as to the application anddisclosure requirements of International Financial ReportingStandards.
In preparing these consolidated financial statements, certain
reclassifications and rearrangements have been made to theconsolidated financial statements issued domestically in order topresent them in a form which is more familiar to readers outside
Japan. In addition, certain reclassifications have been made in
the 2011 consolidated financial statements to conform to theclassifications used in 2012.

a. Consolidation - The consolidated financial statements asof March 31, 2012, include the accounts of the Company
and its all subsidiaries (together, the "Group").

(254)
1
(1)
2
(1)
(254)

(24,489)
21
(23)
21
1,049
(23,420)FINANCING ACTIVITIES:Dividends paid ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・
Purchase of treasury stock ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・
Proceeds from stock issuance to minority share holders ・・・

(408)
(0)

(176)
(1)
2

(4,981)(8)

In October 2011, Yushin Precision Equipment (Slovakia) s.r.o
was removed from the scope of consolidation following
completion of the subsidiary's liquidation.

Net cash used in financing activities ・・・・・・・・・・・・・・・・・・・・・・

(409)

(174)

(4,989)b. Unification of Accounting Policies Applied toForeign Subsidiaries for the Consolidated Financial
Statements - In May 2006, the Accounting Standards
Board of Japan (ASBJ) issued ASBJ Practical Issues Task
Force (PITF) No. 18, "Practical Solution on Unification of
Accounting Policies Applied to Foreign Subsidiaries for theConsolidated Financial Statements". PITF No. 18 prescribes(1) the accounting policies and procedures applied to aparent company and its subsidiaries for similar transactions
and events under similar circumstances should in principle
be unified for the preparation of the consolidated financial
statements, (2) financial statements prepared by foreignsubsidiaries in accordance with 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 in accordancewith Japanese GAAP, unless they are not material: a)amortization of goodwill; b) scheduled amortization of
actuarial gain or loss of pensions that has been directly

(73)

(86)

(892)

(1,818)(365)(22,178)

9,831

10,197

119,901￥ 8,013￥ 9,831$ 97,723

Amounts less than one million yen and one thousand U.S. dollars
are rounded down, except for per-share data. Therefore, total or
subtotal amounts may not correspond with the aggregation ofsuch account balances.

2.SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES(2,008)1(1)
1
86(1,920)EFFECT OF EXCHANGE RATE CHANGES ON
CASH AND CASH EQUIVALENTS ・・・・・・・・・・・・・・・・・・・・・・・・・
NET DECREASE IN CASH AND CASH
EQUIVALENTS ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・
CASH AND CASH EQUIVALENTS,
BEGINNING OF YEAR ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・
CASH AND CASH EQUIVALENTS,
END OF YEAR ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・

The consolidated financial statements are stated in Japaneseyen, the currency of the country in which Yushin Precision
Equipment Co., Ltd. (the "Company") is incorporated andoperates. 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 ¥82 to $1, theapproximate rate of exchange at March 31, 2012. Suchtranslations should not be construed as representations that theJapanese yen amounts could be converted into U.S. dollars atthat or any other rate.

Under the control or influence concept, those companies inwhich the Company directly is able to exercise control over
operations are fully consolidated.
All significant intercompany balances and transactions havebeen eliminated in consolidation. All material unrealized
profit included in assets resulting from transactions within theGroup is also eliminated.

recorded in the equity; c) expensing capitalized development
costs of R&D; d) cancelation of the fair value modelaccounting for property, plant, and equipment andinvestment properties and incorporation of the cost modelaccounting; and e) exclusion of minority interests from net
income, if contained in net income.
c. Cash Equivalents - Cash equivalents are short-term
investments that are readily convertible into cash and thatare exposed to insignificant risk of changes in value. Cashequivalents include time deposits and certificate of deposits,
all of which mature or become due within three months ofthe date of acquisition.
d. Inventories - Inventories are principally stated at the lowerof cost, determined by the specific identification method forfinished products and work in processes, and by theaverage method for raw materials and supplies, or net selling
value.
e. Securities - Securities are investment securities in the
consolidated balance sheet. All investment securities areclassified as available-for-sale securities, which are notclassified as either trading securities or held-to-maturity debt
securities, and are reported at fair value, with unrealized
gains and losses, net of applicable taxes, reported in a
separate component of equity. The cost of securities sold isdetermined based on the moving-average method. For
other-than-temporary declines in fair value, investment
securities are reduced to net realizable value by a charge toincome.
f. Property, Plant, and Equipment - Property, plant, andequipment are stated at cost. Depreciation of property,
plant, and equipment of the Group is principally computedby the declining-balance method at rates based on theestimated useful lives of the assets. The range of useful lives
is principally from 13 to 40 years for buildings and structuresand from 5 to 12 years for machinery and equipment.

See notes to consolidated financial statements.

1718

g. Long-Lived Assets - The Group reviews its long-lived
assets for impairment whenever events or changes incircumstance indicate the carrying amount of an asset or
asset group may not be recoverable. An impairment loss
would be recognized if the carrying amount of an asset or
asset group exceeds the sum of the undiscounted future
cash flows expected to result from the continued use andeventual disposition of the asset or asset group. The
impairment loss would be measured as the amount by which
the carrying amount of the asset exceeds its recoverable
amount, which is the higher of the discounted cash flows
from the continued use and eventual disposition of the asset
or the net selling price at disposition.
h. Warranty Reserve - In order to provide for future warranty
expenses for the Group's products, a warranty reserve isestimated and recorded principally on the basis of theCompany's historical experience.
i. Retirement Benefits - The Company has a funded defined
benefit pension plan and defined contribution pension plan
covering substantially all of its employees. Certain
subsidiaries have a defined benefit pension plan or a defined
contribution pension plan.
The Company has adopted an accounting standard for
employees' retirement benefits and accounted for the asset
for retirement benefits based on the projected benefit
obligations and plan assets at the balance sheet date.
Retirement benefits to directors are provided at the estimatedamount which would be required if all directors retired at thebalance sheet date. The Company terminated its retirement
benefit plan on June 29, 2006, and no additional provisions
have been recorded since then. As of March 31, 2012, thebalance of the liability for retirement benefits to directors was¥66 million ($814 thousand), provided in proportion to theterm that present directors had been in place before June 29,
2006.
j. Research and Development Costs - Research anddevelopment costs are charged to income as incurred.
k. Bonuses to Directors - Bonuses to directors are accruedat the year-end to which such bonuses are attributable.
l. Income Taxes - The provision for income taxes iscomputed based on the pretax income included in the
consolidated statement of income. The asset and liability
approach is used to recognize deferred tax assets andliabilities for the expected future tax consequences of
temporary differences between the carrying amounts and thetax bases of assets and liabilities. Deferred taxes aremeasured by applying currently enacted tax laws to thetemporary differences.
m. Foreign Currency Transactions - All short-term andlong-term monetary receivables and payables denominated inforeign currencies are translated into Japanese yen at theexchange rates at the balance sheet date. The foreignexchange gains and losses from translation are recognized in
the consolidated statement of income to the extent that they
are not hedged by forward exchange contracts.
n. Foreign Currency Financial Statements - The balance
sheet accounts of the consolidated foreign subsidiaries aretranslated into Japanese yen at the current exchange rate as

19of the balance sheet date except for equity, which istranslated at the historical rate.
Differences arising from such translation are shown as"Foreign currency translation adjustments" underaccumulated other comprehensive income in a separate
component of equity.
Revenue and expense accounts of consolidated foreignsubsidiaries are translated into Japanese yen at the averageexchange rate for the year.
o. Derivative Financial Instruments - The Group uses
derivative financial instruments to manage its exposures tofluctuations in foreign exchange rates. The Group does notenter into derivatives for trading or speculative purposes.
Derivative financial instruments are classified and accounted
for as follows: 1) all derivatives are recognized as either
assets or liabilities and measured at fair value, and gains orlosses on derivative transactions are recognized in the
consolidated statement of income and 2) for derivatives used
for hedging purposes, if such derivatives qualify for hedge
accounting because of high correlation and effectivenessbetween the hedging instruments and the hedged items,
gains or losses on derivatives are deferred until maturity of
the hedged transactions.
p. Per Share Information - Basic net income per share iscomputed by dividing net income available to commonshareholders by the weighted-average number of commonshares outstanding for the period.
Diluted net income per share is not disclosed because there
are no outstanding potentially dilutive securities.
Cash dividends per share presented in the accompanying
consolidated statements of income are dividends applicableto the respective years, including dividends to be paid after
the end of the year.
q. Accounting Changes and Error Corrections - In
December 2009, the ASBJ issued ASBJ Statement No. 24,"Accounting Standard for Accounting Changes and Error
Corrections" and ASBJ Guidance No. 24, "Guidance on
Accounting Standard for Accounting Changes and Error
Corrections". Accounting treatments under this standard andguidance are as follows: (1) Changes in accounting policies when a new accounting policy is applied with revision of
accounting standards, the new policy is applied retrospectively
unless the revised accounting standards include specifictransitional provisions. When the revised accounting standards
include specific transitional provisions, an entity shall comply withthe specific transitional provisions. (2) Changes in presentations- when the presentation of financial statements is changed,
prior-period financial statements are reclassified in accordancewith the new presentation. (3) Changes in accounting estimates- a change in an accounting estimate is accounted for in the
period of the change if the change affects that period only, and isaccounted for prospectively if the change affects both the periodof the change and future periods. (4) Corrections of prior-period
errors - when an error in prior-period financial statements is
discovered, those statements are restated. This accounting
standard and the guidance are applicable to accounting changes
and corrections of prior-period errors, which are made from the
beginning of the fiscal year that begins on or after April 1, 2011.

r. New Accounting Pronouncements(b) Treatment in the statement of income and the statementof comprehensive income (or the statement of income
and comprehensive income)Accounting Standard for Retirement Benefits - On
May 17, 2012, the ASBJ issued ASBJ Statement No. 26,"Accounting Standard for Retirement Benefits" and ASBJ
Guidance No. 25, "Guidance on Accounting Standard for
Retirement Benefits", which replaced the AccountingStandard for Retirement Benefits that had been issued by theBusiness Accounting Council in 1998 with effective date ofApril 1, 2000, and the other related practical guidance, being
followed by partial amendments from time to time through2009.

The revised accounting standard would not change how
to recognize actuarial gains and losses and past service
costs in profit or loss. Those amounts would berecognized in profit or loss over a certain period no longer
than the expected average remaining working lives of theemployees. However, actuarial gains and losses and past
service costs that arose in the current period and yet tobe recognized in profit or loss shall be included in othercomprehensive income and actuarial gains and losses
and past service costs that were recognized in othercomprehensive income in prior periods and thenrecognized in profit or loss in the current period shall betreated as reclassification adjustments.

Major changes are as follows:(a) Treatment in the balance sheet
Under the current requirements, actuarial gains andlosses and past service costs that are yet to berecognized in profit or loss are not recognized in thebalance sheet, and the difference between retirement
benefit obligations and plan assets (hereinafter, "deficit or
surplus"), adjusted by such unrecognized amounts, arerecognized as a liability or asset.

This accounting standard and the guidance are effective
for the end of annual periods beginning on or after April 1,
2013, with earlier application being permitted from the
beginning of annual periods beginning on or after April 1,
2013. However, no retrospective application of thisaccounting standard to consolidated financial statements
in prior periods is required.
The Company expects to apply the revised accounting
standard from the end of the annual period beginning on
April 1, 2013, and is in the process of measuring theeffects of applying the revised accounting standard for theyear ending March 31, 2014.

Under the revised accounting standard, actuarial gains
and losses and past service costs that are yet to berecognized in profit or loss shall be recognized withinequity (accumulated other comprehensive income), after
adjusting for tax effects, and the deficit or surplus shall berecognized as a liability (liability for retirement benefits) or
asset (asset for retirement benefits).

3.SECURITIES(1) Short-term Investments

Millions of Yen

2011

2012
Time deposits ・・・・・・・・・・・・・・・・・・・・￥

Thousands of U.S. Dollars
￥

33

2012

121

$ 411

(2) Investment Securities
The carrying amounts and aggregate fair values of investment securities as of March 31, 2012 and 2011, were as follows:

Millions of Yen

2011

2012
Unrealized Unrealized Fair Value
Gains
LossesSecurities classified as:
Cost
Available for sale:
Equity securities・・・・・・・・・・・・・・・・・・・ ￥ 166 ￥

76

￥

0

￥ 241

Cost
￥ 165

Unrealized Unrealized Fair Value
Gains
Losses
￥

89

￥

4

￥ 250

Thousands of U.S. Dollars

2012
Unrealized Unrealized Fair Value
Securities classified as:
Cost
LossesGains
Available for sale:$ 929$ 10 $ 2,944
Equity securities・・・・・・・・・・・・・・・・・・・ $ 2,024(3) The impairment losses on available-for-sale equity securities for the year ended March 31, 2012,was ¥0 million ($7 thousand).

20

Assumptions used for the years ended March 31, 2012 and 2011 are set forth as follows:

4.INVENTORIESInventories at March 31, 2012 and 2011, consisted of thefollowing:Thousands of
U.S. Dollars

Millions of Yen

2012

2011

Finished products ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・
Work in process ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・
Raw materials and supplies ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・

￥

￥

Total

￥ 3,615・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・

898
856
1,861

2012

630
630
1,483

$ 10,953
10,44022,700￥ 2,744$ 44,094

Discount rate ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・
Expected rate of return on plan assets ・・・・・・・・・・・・・・・・・・・
Allocation method of the retirement benefits
expected to be paid at the retirement date ・・・・・・・・・・・・・
Recognition period of actuarial gain or loss ・・・・・・・・・・・・・・

The Company has severance payment plans for employees.
Under most circumstances, employees terminating their employment are entitled to retirement benefits determined based on therate of pay at the time of termination, years of service, and certain other factors. Such retirement benefits are made in the form of
a lump-sum severance payment or annuity payments from a trustee. Employees are entitled to larger payments if the termination
is involuntary, by retirement at the mandatory retirement age, by death, or by voluntary retirement at certain specific ages prior tothe mandatory retirement age.
The Company has a funded defined benefit pension plan and a funded defined contribution pension plan for employees which
cover approximately 50% each of their benefits. Certain subsidiaries have a defined benefit pension plan or a defined contribution
pension plan. The Company recorded a liability for retirement benefit to directors the amount of ¥66 million ($814 thousand) and¥66 million as of March 31, 2012 and 2011, respectively.
The asset for employees' retirement benefits at March 31, 2012
and 2011, consisted of the following:Thousands of
U.S. Dollars

Millions of Yen

2012

2011

2012

Projected benefit obligation ・・・・・・・・・・・・・・・・・・・・・・・・・
Fair value of plan assets ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・
Unrecognized actuarial loss ・・・・・・・・・・・・・・・・・・・・・・・・

￥

511
(459)
(106)

￥ 470
(432)
(116)

$ 6,239(5,607)(1,299)Net asset ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・

￥

(54)

￥

(78)

$

(666)

Prepaid pension cost ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・
Liability for employee's retirement benefits・・・・・・

￥
￥

65
(10)

￥
￥

84
(6)

$
$

796
(129)

The above liability for employee's retirement benefits is included in long-term liabilities - other.
The components of net periodic retirement benefit costs for the years ended March 31, 2012 and 2011, are as follows:21

Service cost ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・
Interest cost ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・
Expected return on plan assets・・・・・・・・・・・・・・・・・・・・・
Recognized actuarial loss ・・・・・・・・・・・・・・・・・・・・・・・・・・・
Net periodic retirement benefit costs ・・・
Premium payments to defined
contribution pension plan・・・・・・・・・・・・・・・・・・・・・・・・・

￥

2011

Total ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・

￥

39
6
(4)
12
53

￥

46
99

1.3%
1.0%

1.3%
1.0%

Straight-line method basedon years of service
10〜16 years

Straight-line method basedon years of service
10〜16 years(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 theBoard of Directors, (2) having independent auditors, (3)having the Board of Corporate Auditors, and (4) the term ofservice of the directors is prescribed as one year rather
than two years of normal term by its articles ofincorporation, the Board of Directors may declare dividends(except for dividends in kind) at any time during the fiscal
year if the company has prescribed so in its articles ofincorporation. The Company meets all the above criteria.
The Companies Act permits companies to distributedividends-in-kind (noncash assets) to shareholders subject
to a certain limitation and additional requirements.

paid-in capital and legal reserve may be reversed without
limitation. The Companies Act also provides that common
stock, legal reserve, additional paid-in capital, and othercapital surplus and retained earnings can be transferredamong the accounts under certain conditions upon
resolution of the shareholders.
(c) Treasury stock and treasury stock acquisition rights
The Companies Act also provides for companies topurchase treasury stock and dispose of such treasury stockby resolution of the Board of Directors. The amount oftreasury stock purchased cannot exceed the amountavailable for distribution to the shareholders which isdetermined by specific formula. Under the Companies Act,
stock acquisition rights are presented as a separate
component of equity. The Companies Act also provides
that companies can purchase both treasury stockacquisition rights and treasury stock. Such treasury stockacquisition rights are presented as a separate componentof equity or deducted directly from stock acquisition rights.

Semiannual interim dividends may also be paid once a year
upon resolution by the Board of Directors if the articles ofincorporation of the company so stipulate. The Companies
Act provides certain limitations on the amounts available fordividends or the purchase of treasury stock. The limitation
is defined as the amount available for distribution to theshareholders, but the amount of net assets after dividends
must be maintained at no less than ¥3 million.

Thousands of
U.S. Dollars

Millions of Yen

2012

2011

6.EQUITY
Japanese companies are subject to the Companies Act ofJapan (the "Companies Act"). The significant provisions in
the Companies Act that affect financial and accounting
matters are summarized below:

5.RETIREMENT AND PENSION PLANS

2012

￥

2012
32
7
(4)
8
43

$

477
73
(52)
151
649

41

561

85

$ 1,210(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 (acomponent of retained earnings) or as additional paid-in
capital (a component of capital surplus) depending on theequity account charged upon the payment of such
dividends until the aggregate amount of legal reserve andadditional paid-in capital equals 25% of the common stock.
Under the Companies Act, the total amount of additional

22

7.INCOME TAXES

8.RESEARCH AND DEVELOPMENT COSTS

The Company is subject to Japanese national and local income taxes which, in the aggregate, resulted in a normal effective
statutory tax rate of approximately 40.6% for the years ended March 31, 2012 and 2011.
The tax effects of significant temporary differences and tax loss carryforwards, which resulted in deferred tax assets and liabilities at
March 31, 2012 and 2011 are as follows:
Thousands ofMillions of Yen
U.S. Dollars

2012
Deferred tax assets:
Inventories ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・
Buildings depreciation ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・
Software ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・
Enterprise tax payable ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・
Retirement benefits to directors ・・・・・・・・・・・・・・・・・・・・・・・・・
Warranty reserve ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・
Advances received ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・
Accrued bonuses ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・
Foreign exchange losses ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・
Other ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・
Less valuation allowance ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・
Total ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・
Deferred tax liabilities:
Undistributed earnings of foreign subsidiaries ・・・・・・・・・・
Prepaid pension cost ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・
Unrealized gain on available-for-sale securities・・・・・・・・・
Other ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・
Total ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・
Net deferred tax assets ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・

￥

2011

2012

175
37
64
23
23
38
23
68
15
81
(44)
506

￥

171
38
83
13
26
36
16
71
13
75
(41)
￥ 507

$ 2,142
453
781
281
289
467
285
836
185
991
(537)
$ 6,175

60
23
22
21
￥ 127
￥ 378

￥

$

￥
￥

59
34
28
28
149
357

￥
￥

Deferred tax assets (liabilities) are included in the consolidated balance sheets as follows:

Thousands of
U.S. Dollars

Millions of Yen

2012
Current assets - Deferred tax assets・・・・・・・・・・・・・・・・・・・
Investments and other assets - Deferred tax assets ・・・・
Current liabilities - Other current liabilities ・・・・・・・・・・・
Net deferred tax assets ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・

￥

￥

365
16
(3)
378

741
282
270
264
$ 1,558$ 4,616

2011
￥

￥

339
19
(1)
357

2012
$ 4,453205(42)$ 4,616

A reconciliation between the normal effective statutory tax rate and the actual effective tax rate reflected in the accompanying
consolidated statements of income for the years ended March 31, 2012 and 2011, is as follows:
Normal effective statutory tax rate ・・・・・・・・・・・・・・・・・・・・・・・・・・
Expenses not deductible for income tax purposes ・・・・・・・・・
Net change in valuation allowance ・・・・・・・・・・・・・・・・・・・・・・・・・
Foreign tax credit ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・
Changes in the effective statutory tax rate ・・・・・・・・・・・・・・・・・
Difference in income tax rates applicable to incomein certain foreign countries ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・
Undistributed earnings of foreign subsidiaries ・・・・・・・・・・・・・・
Tax credit for research and development expenses ・・・・・・・
Other - net ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・
Actual effective tax rate ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・

2012

2011

40.6 %
2.0
1.9

40.6 %
2.3
(2.3)
(0.1)

9.LEASESThe Group leases certain computer equipment and other assets. Total rental expenses, including lease payments under financeleases for the years ended March 31, 2012 and 2011, were ¥139 million ($1,699 thousand) and ¥147 million, respectively.
Pro forma Information of Leased Property Whose Lease Inception was before March 31, 2008
ASBJ Statement No. 13, "Accounting Standard for Lease Transactions" requires that all finance lease transactions be capitalized
to recognize lease assets and lease obligations in the balance sheet. However, ASBJ Statement No. 13 permits leases withoutownership transfer of the leased property to the lessee and whose lease inception was before March 31, 2008, to continue to beaccounted for as operating lease transactions if certain "as if capitalized" information is disclosed in the note to the financial
statement. The Company applied ASBJ Statement No. 13 effective April 1, 2008, and accounted for such leases as operatinglease transactions. Pro forma information of leased property whose lease inception was before March 31, 2008, was as follows:

Millions of Yen

Thousands of U.S. Dollars

2011

2012
Furnitureand Fixtures
Acquisition cost・・
Accumulated
depreciation・・・・・
Net leased
property ・・・・・・・・・

￥

3

￥

3
￥

0

￥

Total

Total

￥ 9

￥ 9

$ 46

$ 46

8

8

44

44

3
3

Total

0

2012
Furnitureand Fixtures

Furnitureand Fixtures

￥

￥

1

1

$

2

Obligations under finance leases:

2012

2011

2012

￥
￥

￥
￥

$
$

0
0

1
1

The amount of obligations under finance leases includes the imputed interest expense portion.
Depreciation expense and other information under finance leases is as follows:22

Thousands of
U.S. Dollars

Millions of Yen
Depreciation expense ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・
Lease payments ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・

2

Thousands of
U.S. Dollars

Millions of Yen
Due within one year ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・
Total ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・

$

2012

2011

2012

￥
￥

￥
￥

$
$

1
1

2
2

16
16

1.1
(2.4)
0.3
(5.4)
0.2
38.3 %

(3.6)
0.9
(8.3)
0.2
29.7 %On December 2, 2011, new tax reform laws were enacted in Japan, which changed the normal effective statutory tax rate from approximately
40.6% to 38.1% effective for the fiscal years beginning on or after April 1, 2012 through March 31, 2015, and to 35.5% afterwards. The effectof this change was to decrease deferred taxes in the consolidated balance sheet as of March 31, 2012, by ¥10 million ($133 thousand) and toincrease income taxes - deferred in the consolidated statement of income for the year then ended by ¥13 million ($161 thousand).
23

Research and development costs charged to income were ¥565 million ($6,891 thousand) and ¥477 million for the years ended
March 31, 2012 and 2011, respectively.

Depreciation expense, which is not reflected in the accompanying consolidated statements of income, is computed by
the straight-line method.
The minimum rental commitments under noncancelable operating leases at March 31, 2012, were as follows:

Due within one year ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・
Total ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・

Millions of Yen

Thousands of
U.S. Dollars

￥ 1
￥ 1

$ 18
$ 18

24

10.FINANCIAL INSTRUMENTS AND RELATED DISCLOSURES
Millions of Yen(1) Group policy for Financial Instruments
The Group does not use financial instruments for speculative purposes based on its capital financing plan. Cash surpluses, if any,
are invested in low-risk financial assets, including short-term time deposits and certificate of deposits. Funds on hand are used tofund its ongoing operations. Derivatives are used, not for speculative purposes, but to manage exposure to financial risks.
(2) Nature and Extent of Risks Arising from Financial Instruments
Receivables, such as trade notes and trade accounts, are exposed to customer credit risk. Receivables in foreign currencies
are exposed to the market risk of fluctuation in foreign currency exchange rates. Investment securities are exposed to the riskof market price fluctuations. Payment terms of payables, such as trade notes and trade accounts, are primarily less than fourmonths.
(3) Risk Management for Financial Instruments
Credit risk management
Credit risk is the risk of economic loss arising from counterparty's failure to repay or service debt according to the contractual
terms. The Group manages its credit risk from receivables on the basis of internal guidelines, which include monitoring of
payment term and balances of major customers by each business administration department to identify the default risk ofcustomers at an early stage. Investment securities are managed by monitoring market values and financial position of issuers
on a regular basis.

March 31, 2011
Cash and cash equivalents ・・・・・・・・・
Short-term investments ・・・・・・・・・・・・・
Receivables ・・・・・・・・・・・・・・・・・・・・・・・・・
Investment securities ・・・・・・・・・・・・・・・

Carrying
AmountFair Value

Unrealized
Gain/Loss

￥

￥

9,831
121
4,288
250

￥

9,831
121
4,288
250

Total ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・￥ 14,493￥ 14,493￥

Payables ・・・・・・・・・・・・・・・・・・・・・・・・・・・・
Income taxes payable ・・・・・・・・・・・・・・

￥

2,289
154

￥

2,289
154

￥

Total ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・

￥

2,443

￥

2,443

￥

Cash and Cash Equivalents, Short-Term Investments, Receivables and Payables, and Income Taxes Payable
The carrying values of cash and cash equivalents, short-term investments, receivables and payables and income taxes
payable approximate fair value because of their short maturities.

(4) Fair Value of Financial Instruments
Millions of Yen

March 31, 2012
Cash and cash equivalents ・・・・・・・・・
Short-term investments ・・・・・・・・・・・・・
Receivables ・・・・・・・・・・・・・・・・・・・・・・・・・
Investment securities ・・・・・・・・・・・・・・・

Thousands of U.S. Dollars

Carrying
AmountFair Value

Unrealized
Gain/Loss

Carrying
Amount

￥

￥

8,013
33
4,670
241

￥

$

8,013
33
4,670
241

97,723411
56,9572,944

Fair Value

Unrealized
Gain / Loss

97,723411
56,9572,944$$ 158,036$$

Investment Securities
The fair values of investment securities are measured at the quoted market price of the stock exchange for the equity
instruments. The information of the fair value for the investment securities by classification is included in Note 3.
(5) Maturity Analysis for Financial Assets with Contractual Maturities
Millions of Yen

Due in 1 Yearor Less

Total ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・￥ 12,959￥ 12,959￥$ 158,036

Payables ・・・・・・・・・・・・・・・・・・・・・・・・・・・・
Income taxes payable ・・・・・・・・・・・・・・

￥

2,783
300

￥

2,783
300

￥

$

33,9393,670$

33,9393,670$

Total ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・

￥

3,083

￥

3,083

￥

$

37,610$37,610$March 31, 2012
Cash and cash equivalents ・・・・・・・・・
Short-term investments ・・・・・・・・・・・・・
Receivables ・・・・・・・・・・・・・・・・・・・・・・・・・

Total

・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・￥

Due after 1 Yearthrough 5 Years

Due after 5 Years
through 10 Years

Due after
10 Years

8,013
33
4,670

￥

￥

￥

￥ 12,717￥￥￥

Thousands of U.S. Dollars

Due in 1 Yearor Less
March 31, 2012
Cash and cash equivalents ・・・・・・・・・
Short-term investments ・・・・・・・・・・・・・
Receivables ・・・・・・・・・・・・・・・・・・・・・・・・・

Total
25

・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・

Due after 1 Yearthrough 5 Years

Due after 5 Years
through 10 Years

Due after
10 Years$ 97,723
411
56,957$$$$ 155,092

$

$

$
26

11.DERIVATIVES

14. SUBSEQUENT EVENTSThe Group uses foreign currency forward contracts to hedge foreign exchange risk associated with certain assets and liabilities
denominated in foreign currencies. The Group does not hold or issue derivatives for trading or speculative purposes.

Appropriations of Retained Earnings
The following appropriation of retained earnings at March 31, 2012, was approvedat the Company's Board of Directors' meeting held on May 9, 2012:

Such contracts, however, are marked to market with changes in value recognized in exchange gain (loss) in the accompanying
consolidated statements of income since the hedged items are intercompany transactions which are eliminated in consolidation.
Derivative transactions entered into by the Group have been made in accordance with internal policies which regulate theauthorization and credit limit amount. The Group policy limits the amount of these contracts not to exceed total invoices andpurchase orders placed with the Company.
The Group did not have derivative contracts outstanding at March 31, 2012 and 2011.

12. COMPREHENSIVE INCOME
The components of other comprehensive income for the year ended March 31, 2012 ,were as follows:
Unrealized gain (loss) on available-for-sale securities:
Gains arising during the year ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・
Reclassification adjustments to profit or loss ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・
Amount before income tax effect ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・
Income tax effect ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・
Total ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・
Foreign currency translation adjustments:
Adjustments arising during the year ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・
Reclassification adjustments to profit or loss ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・
Amount before income tax effect ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・
Income tax effect ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・
Total ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・
Total other comprehensive income ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・

Thousands of
U.S. Dollars

Millions of Yen
￥

(9)
(0)
(9)
6
(3)

$

￥ (74)
(6)
(81)

$

(911)
(83)
(994)

￥ (81)$(994)￥ (85)$ (1,037)￥$

Year-end cash dividends, ¥10 ($0.12) per share

Millions of Yen

Thousands of
U.S. Dollars￥ 174$ 2,132

・・・・・・・・・・・・・・・・・・・・・・・・・

15.SEGMENT INFORMATION
Under ASBJ Statement No. 17, "Accounting Standard for Segment Information Disclosures" and ASBJ Guidance No. 20,"Guidance on Accounting Standard for Segment Information Disclosures", an entity is required to report financial and descriptive
information about its reportable segments. Reportable segments are operating segments or aggregations of operating segmentsthat meet specified criteria. Operating segments are components of an entity about which separate financial information isavailable and such information is evaluated regularly by the chief operating decision maker in deciding how to allocate resources
and in assessing performance. Generally, segment information is required to be reported on the same basis as is used internallyfor evaluating operating segment performance and deciding how to allocate resources to operating segments.
1.

(117)
(0)
(118)
75
(42)

Description of reportable segments
Segments used for financial reporting are the Company's constituent units for which separate financial information isavailable and for which the Board of Directors performs periodic studies for the purposes of determining the allocation of
resources and evaluating performance.
The Company carries out the department, production, sales, and after-sales maintenance of take-out robots forinjection-molded products and peripheral equipment, including labor-saving systems. In the domestic markets, these
operations are handled by the Company; overseas markets - U.S.A., Asia (South Korea, Taiwan, Malaysia, Singapore,
Thailand, China, and India), and Europe (UK and Slovakia) - are serviced by local subsidiaries, including Yushin America Inc.
(US), Yushin Korea Co., Ltd. (South Korea), and Yushin Automation Limited (Europe). The local subsidiaries are
independently managed units, with separately drafted strategies and activities.
Accordingly, the Company's operations, based on its production, sales, and after-sales maintenance setups, aregeographically grouped into four reportable segments: Japan, U.S.A., Asia, and Europe.

2.

The corresponding information for the year ended March 31, 2011, was not required under the accounting standard forpresentation of comprehensive income as an exemption for the first year of adopting that standard and not disclosed herein.

Methods of measurement for the amounts of sales, profit (loss), assets, and other items for each reportable segment
The accounting procedure for the business segment reported is as described in Note 2, "Summary of significant
accounting policies".
Income by business segment reported is calculated based on operating income.
Intersegment income and transfer is based on realized market price basis.

13. NET INCOME PER SHARE
3.

Information about sales, profit (loss), assets, and other items is as follows.

Details of the basic net income per share (EPS) for the years ended March 31, 2012 and 2011, were as follows:Year Ended March 31, 2012:
Basic EPS
Net income available to commonshareholders・・・・・・・・・・・・・・・・・・・・・・・・・・
Year Ended March 31, 2011:
Basic EPS
Net income available to commonshareholders・・・・・・・・・・・・・・・・・・・・・・・・・・

Millions of Yen

Thousands ofSharesNet Income

Weighted
Average Shares

Millions of Yen

2012
EPS

￥ 778

17,490￥ 44.50￥ 729

17,490￥ 41.73

Diluted net income per share is not disclosed because there are no outstanding potentially dilutive securities.

27

U.S.
Dollars

Yen

Reportable Segment$ 0.54

Sales:
Sales to external customers ・・・・・・・・・・
Intersegment sales or transfers ・・・・・・
Total ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・
Segment profit ・・・・・・・・・・・・・・・・・・・・・・・・・・・・
Segment assets ・・・・・・・・・・・・・・・・・・・・・・・・・・・
Other:
Depreciation ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・
Increase in property, plant andequipment and intangible assets ・・・

Japan

U.S.A.

Asia

Europe￥ 9,705 ￥ 1,800 ￥ 2,505 ￥
3,399
14
208
13,104
1,815
2,713
954
178
153
13,495
1,299
2,246

Total

Reconciliations Consolidated￥14,240229 ￥14,240 ￥(3,633)
3,633
10(3,633) 14,240
17,873
240
(27)
1,300
1,272
13
5,282
17,35822,641
316

134

18

8

4

166

166

1,877

10

117

4

2,009

2,009

28

Millions of Yen

4. Information about products and services

2011

Millions of Yen

Reportable Segment
Sales:
Sales to external customers ・・・・・・・・・・
Intersegment sales or transfers ・・・・・・
Total ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・
Segment profit ・・・・・・・・・・・・・・・・・・・・・・・・・・・・
Segment assets ・・・・・・・・・・・・・・・・・・・・・・・・・・・
Other:
Depreciation ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・
Increase in property, plant andequipment and intangible assets ・・・

Japan

U.S.A.

Asia

Europe￥ 8,632 ￥ 1,916 ￥ 1,811 ￥
3,070
3
227
11,703
1,919
2,039
770
176
204
10,873
1,228
1,712
176
159

20
24

￥12,567207 ￥12,567 ￥(3,319)3,319
17(3,319) 12,567
15,887
225
(61)
1,158
1,097
7
7,587
13,995
21,583
181
3

6

8

46

Total

Reconciliations Consolidated

207
239

2012
OrderedTake-Out Robots Custom
Equipments￥ 9,048

Sales to external customers ・・・・・・・・・・・・

Parts and
Maintenance
ServiceTotal￥ 2,105￥ 14,240￥ 3,085

Millions of Yen

2011

207

OrderedTake-Out Robots Custom
Equipments

239￥ 8,912

Sales to external customers ・・・・・・・・・・・・

Parts and
Maintenance
ServiceTotal￥ 1,984￥ 12,567￥ 1,670

Thousands of U.S. Dollars

2012

Thousands of U.S. Dollars

2012

OrderedTake-Out Robots Custom
Equipments

Reportable Segment
Sales:
Sales to external customers ・・・・・・・・・・
Intersegment sales or transfers ・・・・・・
Total ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・
Segment profit ・・・・・・・・・・・・・・・・・・・・・・・・・・・・
Segment assets ・・・・・・・・・・・・・・・・・・・・・・・・・・・
Other:
Depreciation ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・
Increase in property, plant andequipment and intangible assets ・・・

Japan

U.S.A.

Asia

Europe$ 118,356 $ 21,955 $ 30,549 $
2,538
180
41,45833,08822,136
159,814
1,876
2,171
11,646
27,401
15,843
164,583

Total

Reconciliations Consolidated$ 173,658
2,797 $ 173,658 $
44,311 (44,311)
133
2,930 217,969 (44,311) 173,658(338)
15,523
15,861
166
64,425276,117
3,862 211,692

Sales to external customers ・・・・・・・・・・・・$ 110,347$

37,628

Parts and
Maintenance
Service$

Total

25,682$ 173,658

Other

Total

5. Information about geographical areas(1) Sales
Millions of Yen

1,643

228

102

55

2,028

2,028

22,901

123

1,430

57

24,511

24,511

Notes 1: Reconciliations are as follows.
(1) The ¥(27) million ($(338) thousand) reconciliation to segment loss includes eliminations for intersegment transactions of ¥7 million($91 thousand) and inventory reconciliation of ¥(35) million ($(429) thousand).
(2) The ¥5,282 million ($64,425 thousand) reconciliation to segment assets includes eliminations for intersegment transactions of ¥(2,277) million($22,780) thousand) and operating funds of surplus assets by the Company (cash and deposits, securities) of ¥7,178 million($87,547 thousand).
Notes 2: Segment profit is reconciled to be consistent with operating income shown in the consolidated statements of income.

2012
Japan

North America

China Taiwan

Other Asia

￥ 5,203￥ 2,387￥ 2,332￥ 3,337

Europe
￥

801

￥

177

￥ 14,240

Millions of Yen

2011
Japan

North America

China Taiwan

Other Asia

￥ 5,120￥ 1,986￥ 2,640￥ 2,009

Europe
￥

658

Other
￥

152

Total
￥ 12,567

Thousands of U.S. Dollars

2012
Japan

North America

China Taiwan

Other Asia

$ 63,458$ 29,111$ 28,445$ 40,699

Europe
$

9,778

Other
$

2,164

Total
$ 173,658

Note: Sales are classified in countries or regions based on location of customers.
(2) Property, plant and equipment
Information is omitted because property, plant, and equipment in Japan accounted for over 90% property, plant, and equipment
on consolidated balance sheet.
6. Information about major customers
Information is omitted because there were no customers that accounted for 10% or more of total net sales recorded underconsolidated statements of operations and comprehensive income included in net sales to outside customers.
29

30

Independent Auditors' ReportCompany Profile(As of March 31, 2012)

Company Name : Yushin Precision Equipment Co., Ltd.
Establishment: October 1973

Capital: 1,985 million yen

Head Office: 11-260 Kogahonmachi, Fushimi-ku, Kyoto, Japan 612-8492,
Phone : (81)75-933-9555 Fax : (81)75-934-4033

Number of Employees : 571 (Including consolidated subsidiaries), 369 (Yushin Precision Equipment Co., Ltd.)
Number of Shareholders : 5,021
Listed Stock Exchange : First Sections, Tokyo
Securities Identification Number : 6482

Major Shareholders

Number of Shares held
(thousand)

Percentage ofShares held (%)

Yushin Industry Co., Ltd. ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・

4,376

25.0

Mayumi Kotani ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・

2,239

12.8

The Nomura Trust and Banking Co., Ltd. (Trust Account 3071019) ・・・・・・・・・・・・・・・・・・・・・・・・

774

4.4

The Master Trust Bank of Japan, Ltd. (Retail Trust Account 620021158) ・・・・・・・・・・・・・・・・・

774

4.4

Japan Trustee Service Bank, Ltd. (Trust Accounts) ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・

605

3.5

The Kyoto Chuo Shinkin Bank, Ltd. ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・

544

3.1

Tha Bank of Tokyo-Mitsubishi UFJ, Ltd. ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・

424

2.4

RBC DEXIA INVESTOR SERVICES TRUST LONDON (Client Accounts) ・・・・・・・・・・・・・・・・・・

423

2.4

The Chase Manhattan Bank NA, London SL, Omnibus Accounts ・・・・・・・・・・・・・・・・・・・・・・・・・・

361

2.1

The Bank of Kyoto, Ltd. ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・

352

2.0

(As of March 31,2012)

Distribution of ownership among shareholders
Treasury stok:
1.9%
Foreign corporations and others:
18.0%
Other corporations:25.9%

Financial institutions: 1.0%
Individuals:
24.6%

Total
17,819,033
sharesTotal
5,021
persons

Financial institutions:
29.6%

31

Others:2.6%

Individuals:
96.4%

32

Yushin Precision Equipment Co., Ltd.
11-260 Kogahonmachi, Fushimi-ku, Kyoto, Japan 612-8492
Phone:(81)75-933-9555 Fax:(81)75-934-4033

http://www.yushin.com

2012.07