ANNUAL REPORT 2011

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.

38th year of operations, the fiscal year from April 1, 2010 to March 31, 2011.
June 2011
Susumu Kotani, Yushin’s FounderBusiness Results
In this fiscal year as for the world
economy, economic expansions in
Asian countries, especially in China
continued by strong domestic
demand, while employment
situation was hard to increase,considering the recovery ofcompanies' results, and there
were unstable factors of thefinancial crisis in the emerging
countries in Europe and the rise ofoil price by the political unrest in
the Middle East. As for domestic
economy, environment of
employment and income was still
hard, and the prospects ofdomestic economy was veryvague by deflation and yen's
appreciation since last summer.
And what was ever worse that2011 Tohoku earthquake andtsunami brought anunprecedented disaster and madethe future economy more opaque.
As for industries related to Yushin,in Asia sales for digital appliancefield was in good condition and in
the United States the demand in
the car industry showed a recovery
trend and also the demand in the
medical products and the sundry
products field remained strong
despite the effects of sharp yen's

1

Mayumi Kotani
President

appreciation.
Under these circumstances,
Yushin Group maintained goodresults in take-out robot sales by
the remained strong demand in
Asia and by the special automationneeds in the background ofelevated labor cost in Asian
countries, while sales of thecustom- ordered equipments havedecreased from the corresponding
period of previous year due to thedecrease in backlog of orders in
the end of last Fiscal Year.
As a result, consolidated net sales
increased by 1.6% from theprevious FY to ¥12,567 million.
Operating income increased by
45.8% from the previous FY to¥1,097 million by the effect of costcutting activity despite the effects of
yen's appreciation. Ordinary income
increased by 20.9% from theprevious FY to ¥1,055 million andnet income increased by 49.7%
from the previous FY to ¥729 million.
For the year under review, a fullyear dividend is planned to be ¥18
per share, comprising an interim
dividend of ¥5 per share and a
year-end dividend of ¥13 per share.

Medium-Term Objectives

Outlook for Fiscal Year 2012

( year ending March 31, 2012 )As for the business environment
surrounding the Yushin Group, inJapan though the revival demand
for the disaster is expected to berisen, demand for the equipment
investment should be weak byunrest for the electricity service,while economic environment in the
United States and Asia should keep
good condition.
Under these circumstances,
Yushin Group will develop
competitive machines for themarket in a great demand andprogress the activity for receiving
order of general-purpose machines
and also take-out robots for the
new business categories andcustom-ordered equipments.

Yushin has set medium-termtargets of net sales of ¥30 billion
and ordinary income of ¥5 billion,
and as an earnings index, ordinary
income on net sales of 15% ormore.
Yushin aims at becoming number
one across the board in the “takeout robot” industry, by speedilydeveloping products differentiatedby their quality and superiority thatmeet our customer needs, and by
conducting business even moreaggressively in the global market.
Enhancement of products
We will meet wide-ranging
customer needs for take-out robots
by providing a full line of products
from entry to high-end machines inall sizes, by changing the model ofmain products and bystrengthening the lineup of

dedicated machines to support the
optimum production of molded
goods for mass consumption.
For this purpose optimum design
technology should be applied to thenext term take-out robot as a whole.
We will develop businesses in the
medical-related and semiconductorrelated area as new domains thathave technological synergies.
Enhancement of global network
The target of our company is the
top class companies in the world
as customers.
We aim to increase market share in
China by the following strategies.
Expansion to the inland area (New
service office opened in Wuhan).
Expansion of supply system by fullscale operation of Guangzhon
Factory.
We will enhance sales inThailand,

Indonesia and India (New sales
office opened in Gurgaon), and alsoenhance sales to the global Korean
companies.
Human resource development
We will cultivate our designers withhigh level technology by thecollaboration (Product Design) with
Kyoto university.
We will enhance high level technicaltraining program all over the world.
In order to enhance the products
and the global network, we will
improve human resource
development.

Medium-term Objectives
Sales (Consolidated) :Ordinary Income :Ordinary profit rate :EPS :FY2011FY2014¥ 12.5 billion¥ 1.1 billion
8.4%
41.7 yen¥ 30 billion or more
¥ 5 billion or more
15% or more
150 yen or more

＊Ordinary income is used as one of the important performance indicator in Japanese GAAP. This classification consists of operati
foreign exchange gain (loss) etc.

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”, that
2011

2010

2009

2008

2007

2011

￥ 12,567
1,097￥ 12,369
752￥ 19,272
2,829￥ 21,108
3,522￥ 19,548
2,893$ 151,417
13,227

1,055
729
477

870
487
478

2,353
1,468
686

3,494
2,023
449

3,002
1,713
423

12,716
8,793
5,749

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

21,583
18,495

20,593
18,115

21,977
17,864

24,867
17,99722,863
16,557260,043
222,841

Per share of common stock:
Net income ・・・・・・・・・・・・・・・・・・・・・・・・・・
Cash dividends ・・・・・・・・・・・・・・・・・・・・・
Equity ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・￥ 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￥ 96.2424.00
928.07

U.S. Dollars$ 0.500.22
12.71

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

reaches heart to heart.
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 ・・・・・・・・・・・・・・・・・・・・

2.3 %
2.7

3.5 %
4.0

6.3 %
8.2

8.5 %
11.7

7.7 %
10.8

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 ¥83 to $1.

(million yen)

Net Sales
2007

Serving society through developing plastics industry.

2007

19,5482008
2010

12,3692010

2011

12,567

2011

5,000

10,00015,00020,000

2,023

2009

19,272

0

1,713

2008

21,108

2009

25,00030,000

1,468
487

729
0

Total Assets(million yen)

Equity2007

22,8632007

2008

24,867

2009

21,977

2010

20,593

21,583

2011
0

5,000

10,00015,00020,000(million yen)

Net Income

25,00030,000

500

1,000

1,500

2,000

2,500

3,000

(million yen)
16,557

2008

17,997

2009

17,864

2010

18,1152011

18,4950

5,000

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

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.

3

4

Review of Operations
Sales by product

Sales by region

Parts and maintenance service

Europe 17.3

Europe 15.7

Europe 5.3

Other 1.0

Other 1.8

Other 1.2

15.8

13.3

2011
70.9
Compositionof Sales(%)

Take-out robots

Asia
18.7

2009
Composition Japan
39.7
of Sales(%)
North
America
23.3

Asia
19.1

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

2011
Asia Composition Japan
40.7
of Sales
37.0

(%)
North
America
15.8

Custom-ordered Equipments

Take-out Robots

Custom-ordered Equipments

Parts and maintenance service

Performance of geographic segments【Japan】
Net sales increased by 1.6% to ¥11,703 million due togood performance of general-purpose machines , while
operating income decreased by 1.8% from the previous
FY to ¥770 million.

Net sales of take-out robot
increased by ¥2,883 million (47.8%)
from the previous FY to ¥8,912
million by the good performance oftraverse type take-out robot (mainproduct).

Net sales of custom-ordered
equipments was totally poor by thelower level sales of medical-related
and semiconductor-related field tothe budget and it decreased by¥3,087 million (64.9%) from theprevious FY to ¥1,670 million.

Net sales of parts and maintenanceservice increased by ¥402 million(25.4%) from the previous FY to¥1,984 million.

Net Sales

Net Sales(million yen)

Net Sales

8,112

2009

2009

(million yen)
4,805

2010

3,523

2011

5,564
0

3,000

Overseas sales

5

2009

9,126

9,000

3,590 4,757

2011 918

8,912
6,000

6,027

2010

6,029

12,0000

3,000

Overseas sales

888

2010

1,670

(million yen)

6,000

9,000

1,582
963

0

500

Overseas sales

Overseas sales simply indicate the sales of Yushin for
countries or areas other than Japan. Overseas sales
decreased by 3.4% year on year to ¥7,446 million. The ratioof overseas sales on the total sales was 59.3%, 3.0%
decrease from the previous year.
As for each region, sales to North America decreased by
37.6% to ¥1,986 million, sale to Asia increased by 96.6% to¥4,648 million and sale to Europe decreased by 66.1% to¥658 million.

【Asia】Net sales increased by 130.1% from the previous FY
to ¥2,039 million and operating income was ¥204
million (¥63 million- operating loss in the previous FY)
due to the good performance of the subsidiaries in
China, Korea and Thailand.

2,034

592

2011

【North America】
As for the subsidiary in the United States , net sales
increased by 43.8% from the previous FY to ¥1,919 million
and operating income was ¥176 million (¥24
million-operating loss in the previous FY).

Overseas sales

1,000

1,984
1,500

2,000

2,500

【Europe】
Net sales decreased by 9.2% from the previous FY to¥225 million and operating income also decreased by
11.2% from the previous FY to ¥7 million.

6

Global Network (As of June 30, 2011)

SaitamaYushin America, Inc.

Yushin Korea Co., Ltd.

Yushin Precision Equipment Trading (Shenzhen) Co.,Ltd.

Yushin Precision Equipment (Taiwan) Co.,Ltd.

Yushin Precision Equipment Sdn. Bhd.

Yushin Precision Equipment (India) Pvt. Ltd.

Yushin Automation Limited

Guangzhou Yushin Precision Equipment Co.,Ltd.

Tokyo

Kyoto Head Office & Factory

Aichi

Japan

Asia

Toyama Toyama Sales Office
Aichi Chubu General Sales Office
Mie Nagoya-Nishi Sales Office
Kyoto Head Office & Factory / Nishi-nihon General Sales Office
Hiroshima Hiroshima Sales Office
Fukuoka Fukuoka Sales Office

Nagano Nagano Sales Office

Yushin Precision Equipment Co., Ltd. Kyoto Head Office & Factory

Tochigi Tochigi Sales Office11-260 Kogahonmachi, Fushimi-ku, Kyoto, Japan 612-8492
Tel:(81)75-933-9555 Fax:(81)75-934-4033

Saitama Kita-kanto General Sales Office

Yushin Korea Co., Ltd.

Tokyo Tokyo General Sales Office

Ibaraki Tsukuba Sales Office＃606-2BL 4Ma, 715-9, Shi-Hwa Ind Complex, Sungkok Dong, Ansan-city, Kyunggi-Do, 425-836, Korea
Tel:(82)31-433-9655 / 9656 Fax:(82)31-433-9663

Fukushima Touhoku Sales Office

14/E, BlockB,Winson Plaza, No.146 Weidi Road, Hexi District, Tianjin, 300203, China
Tel:(86)22-8823-8713 Fax:(86)22-8823-8517

Yushin Precision Equipment Co., Ltd. Tianjin Representative Office

Iwate Iwate Satellite Office

Yushin Precision Equipment Co., Ltd. Philippines Representative Office

Oita Oita Satellite Office
Shizuoka Shizuoka Sales Office

EuropeYushin Automation Limited

Unit 15/16, Aston Fields Industrial Estate, Aston Road, Bromsgrove, Worcestershire, B60 3EX, England.
Tel:(44)1527-558-218 Fax:(44)1527-558-219

Polymac-Yushin B. V.

Unit 1-D, Grnd. Flr., APMC Bldg. 136 Amorsolo St., Cor. Gamboa Legaspi Village, Makati City, Philippines
Tel:(63)2-893-7546 Fax:(63)2-893-7549

Kanagawa Nishi-kanto Sales Office

Yushin Precision Equipment (Taiwan) Co., Ltd.

10F., No.45,Sec.1, Minquan E.Rd Zhongshan District, Taipei City 104, Taiwan
Tel:(886)2-2585-0507 Fax:(886)2-2585-0527

North America

Yushin Precision Equipment Co., Ltd. Indonesia Representative Office
Plaza Sentral 19th Floor, Jalan Jenderal Sudirman No. 47, Jakarta 12930, Indonesia
Tel:(62)21-571-1737 Fax:(62)21-571-1763

En-Plas,Inc.

1395 Morningside Avenue Scarborough,(Toronto) Ontario M1B3J1, Canada
Tel:(1)416-286-3030 Fax:(1)416-286-5963

Yushin Precision Equipment (Singapore) Pte. Ltd.

No.19 Burn Road, ＃03-03B Advance Building, Singapore 369974
Tel:(65)6753-7377 Fax:(65)6752-7727

Morsestraat 20 Ede, 6716 Ah Ede, The Netherlands
Tel:(31)318-648615 Fax:(31)318-648619

Yushin Precision Equipment Trading (Shanghai) Co., Ltd.
Yushin Precision Equipment (India) Pvt. Ltd.
Yushin America, Inc.

35 Kenney Drive, Cranston, RI 02920 U.S.A.
Tel:(1)401-463-1800 Fax:(1)401-463-1820

Yushin America, Inc. North Carolina Office
Yushin America, Inc. Ohio Office
Yushin America, Inc. Indiana Office
Yushin America, Inc. Texas Office
Yushin America, Inc. California Office

Kalyani Towers, 3rd Floor, T2, New No.69, Old No.174C,
2nd Avenue, Ashok Nagar, Chennai 600 083 India
Tel:(91)44-4231-8005 Fax:(91)44-4231-8006

Yushin Precision Equipment (India) Pvt. Ltd. North India Branch

B36-37 (First Floor), IDC, Mehrauli - Gurgaon Road, Opposite Sector14
Gurgaon - 12200 Haryana India
Tel:(91)124-474-8237 Fax:(91)124-474-8238

Yushin Precision Equipment (Thailand) Co., Ltd.

179/346 Supalai Place Condominium, Soi Sukhumvit 39 (Prompong),
Sukhumvit Rd, Klongton Nua, Wattana, Bangkok 10110
Tel:(66)2-662-2580〜2 Fax:(66)2-662-2583

Yushin Precision Equipment Co., Ltd. Vietnam Representative Office in Hanoi
5th Floor NOZA Building, 243, Cau Giay Street, Cau Giay District, Hanoi, Vietnam
Tel:(84)43-767-3844 Fax:(84)43-767-3845

Unit E2, 19/Floor, No.1800 Zhongshan West Road, Shanghai, 200235, China
Tel:(86)21-6440-1586〜7 Fax:(86)21-6440-1806

Yushin Precision Equipment Co., Ltd. Vietnam Representative Office in Ho Chi Minh
No 141 D3 St, Ward 25, Binh Thanh Dist. Ho Chi Minh City
Tel:(84)83-899-0662 Fax:(84)83-899-0648

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 Fax:(86)755-8358-0159

Yushin Precision Equipment Sdn. Bhd.

No.13A, Jalan Kenari 17D, Bandar Puchong Jaya, 47170 Puchong, Selangor Darul Ehsan, Malaysia
Tel:(60)3-8076-2177 Fax:(60)3-8070-6151

Guangzhou Yushin Precision Equipment Co., Ltd.

South ChuangLi road, XiangShan street, Zengcheng Economic & Technological Development
District, Guangzhou City, Guangdong Province, 511340 China
Tel:(86)20-8269-0091 / 0092 Fax:(86)20-8269-0001

Subsidiaries

7

Representative Offices

Agents8Topics

New models displayed at K-2010(plastics & rubber tradeshow)
The latest occurrence of the world's largest plastics
and rubber industry tradeshow, the “K-show,” washeld in Dusseldorf, Germany on October 27 toNovember 3, 2010.
This massive tradeshow opens once every 3 years,
and Yushin was one of over 3,000 companies
exhibiting products there. As “High-Speed” was themain concept for Yushin's booth, our exhibit centeredon the premiere of the HSA and TSXA series ofhigh-speed take-out robots.
Modern Plastics Magazine reported on the HSA in theirarticle “0.32-second take-out: Is this K's fastest robot?”and our robots were well-received by booth visitors.
K-2010 was very effective for promoting our company's
technology and it was an important part of our strategy
to expand Yushin's share of the European market.
9

Application of Optimum Design Technology to
the next generation of Yushin take-out robots
Yushin plans to employ Optimum Design Technology ,first introduced in the development of our HSA series
robots, on our entire next generation of take-out
robots. Yushin initially applied the design
optimization process to pursue the most suitablerobot form possible. The result of that endeavor was
the high-performance HSA robot, which achieves
speed and stability beyond that of all its
predecessors.
Now Yushin has incorporated this technology into
the new YC series of standard robots, which officiallygo on sale in July 2011. It is Yushin's desire toenhance our customers' productivity by employing
the highest possible levels of technology across ourfull product line.

Wafer Support System Business1 year has passed since Yushin entered into anagreement with 3M as their supplier of Wafer
Support Systems (WSS), and we continue to receive
many WSS inquiries and orders.
There is higher demand for WSS equipment now
that LED applications have increased in addition to
ongoing demand for power device and memory
device applications. The WSS market is very active
and many customers are giving Yushin requests fortest runs.
To serve the higher demand, Yushin has prepareda full line-up of mounter, demounter, and recyclersystems in sizes up to 12 inches.

Full-scale expansion of Guangzhou factory
to increase Yushin supply in China
Yushin is planning a large expansion of the
manufacturing plant we opened in November 2010
in Guangzhou, China. We estimate the expansion,adjacent to the existing factory, will double the sizeof the facility and aims to triple its production output.
More Chinese companies are moving away frommanual processes and toward automation as laborcosts continue to rise there. This factory expansion
is part of Yushin's plan to increase our share of theChinese market, where demand for automation is
expected to rise greatly in the automotive industry
and others.

10Boad of Directors and Auditors

Financial Review

Yushin Precision Equipment Co., Ltd. and Subsidiaries(As of June 30, 2011)

1.Net Sales

President and Representative Director
Mayumi Kotani

Net sales increased by 1.6% from the previous FY to12,567 million yen. Take-out robot sales increased by
47.8% from the previous FY to ¥8,912 million.
Custom-ordered equipment decreased 64.9% from theprevious FY to ¥1,670 million.
There was some effect of yen's appreciation, but
take-out robot sales kept good level by strong demandin Asia, especially by the needs for automation in China.
Special take-out robot for Asia contributed to develop
new customers. Semiconductor-related products weresold in the second half.

Managing Director
Yasuharu Odachi

Executive Managing Director
Satoshi Kimura

2.Cost of Sales and Selling, General and
Administrative Expenses
Director
Yuji Tsujimoto

Director
Yasushi Kitagawa

Though a steep rise of raw materials pushed up cost,
we absorbed the effect by maintained cost-cutting
activity and gross profit ratio was improved by 3.4%
from the previous FY.
And strict cost reduction on expenses wasmaintained.

Full-time Corporate Auditor
Shujiro Sawada

3.Operating Income and Net Income
Outside Corporate Auditor
Yasuhiro Orita

By the recovery of profit of overseas subsidiaries
and the effort for cost-cutting mentioned above,
operating income increased by 45.8% from theprevious FY to ¥1,097 million and net income
increased by 49.7% from the previous FY to ¥729
million.

Outside Corporate Auditor
Takao Yoshikawa

Organization Chart(As of June 30, 2011)
General meeting ofshareholders

Net assets increased by ¥380 million from the end of
the previous FY to ¥18,495 million due to the rise ofretained earnings by ¥554 million.

5.Cash Flow
The balance of cash and cash equivalents on March
31, 2011 decreased by ¥365 million from the end of theprevious FY to ¥9,831 million. Main reason is as follows.
【Cash flow from operating activities】
Income before income taxes and minority interests
adjustment was ¥1,055 million, but due to the increaseof ¥1,076 million in receivables and the increase of ¥556
million in inventories, total amount of taxes was ¥213
million. As a result, cash flow from operating activities for
the FY ended March 31, 2011 was a net inflow of ¥149
million (it was a net inflow of ¥2,143 million in theprevious FY).
【Cash flow from investment activities】
Due to the purchases of property (¥254 million), cash
flow from investment activities flow from investment
activities for the FY ended March 31, 2011 was a net
outflow of ¥254 million (it was a net inflow of ¥322
million in the previous FY).
【Cash flow from financing activities】
Due to the dividends paid of ¥176 million, cash flowfrom financing activities was a net outflow of ¥174
million (it was a net outflow of ¥349 million in theprevious FY).

4.Financial Condition
Board of Directors

Corporate Auditors

President

Executive
Managing Director

Internal
Auditing Dep.

11

Quality
Controll Dep.

Corporate
Planning 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 ¥989 million from the endof the previous FY to ¥21,583 million. Current assets
increased by ¥1,126 million from the end of theprevious FY to ¥17,649 million due to the increase of¥1,005 million in trade notes and accounts receivable.
Fixed assets didn't have big change to be explained.
Total liabilities increased by ¥609 million from the end of
the previous FY to ¥3,087 million.
Current liabilities increased by ¥623 million from theend of the previous FY to ¥2,965 million. This is due tothe increase of ¥460 million in trade notes and accounts
payable. Fixed liabilities didn't have big change.

12Consolidated Balance Sheets
Yushin Precision Equipment Co., Ltd. and Subsidiaries
March 31,2011 and 2010

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

ASSETS

2011

2010

2011

Cash and cash equivalents ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・￥ 9,831￥ 10,197$ 118,457

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

121

134

1,466

CURRENT ASSETS:

Receivables:

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

LIABILITIES AND EQUITY

2010

2011

CURRENT LIABILITIES:

2011

Payables:Trade notes

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

Trade accounts

￥

275

￥

207

$

3,319

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

1,642

1,251

19,794

1,001

903

12,070Construction and other ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・

371

256

4,470

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

3,287

2,380

39,603

Income taxes payable

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

154

30

1,860

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

(17)

(14)

(213)

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

282

297

3,400

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

2,744

2,264

33,064

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

104

135

1,259

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

134

164

1,622

2,965

2,342

35,728

corporate auditors (Note 5) ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・

66

66

804

Trade notes

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

Trade accounts

Income taxes receivable ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・

234

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

339

284

4,090

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

340

137

4,103

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

17,64916,522

212,641

Total current liabilities

・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・

LONG-TERM LIABILITIES:
Liabilitiy for retirement benefits to directors and

PROPERTY, PLANT AND EQUIPMENT:・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・

2,044

2,049

24,638Other (Note 5) ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・

55

69

670

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

2,880

2,836

34,708

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

122

136

1,474

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

293

291

3,533

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

983

1,013

11,849Construction in progress ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・

97

25

1,169

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

6,299

6,215

75,899

Accumulated depreciation ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・(2,971)(2,882)(35,801)

Common stock, authorized 40,000,000 shares; issued,

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

3,328

3,333

40,097

17,819,033 shares in 2011 and 200

・・・・・・・・・・・・・・・・・・・・・

1,985

1,985

23,923

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

2,023

2,023

24,384Retained earnings ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・

15,24914,694

183,728

(347)

(346)

(4,183)Land

INVESTMENTS AND OTHER ASSETS:
Investment securities (Note 3) ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・

EQUITY (Notes 6 and 14):

Treasury stock - at cost:
250

278

3,024

77

Software ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・

328,497 shares in 2011 and 327,772 shares in 2010 ・・・・・
Accumulated other comprehensive income:Insurance funds ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・

112

102

1,358

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

51

68

615

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

84

101

1,023

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

(503)

(338)

(6,060)

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

19

43

235

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

18,45918,087

222,408

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

138

133

1,662

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

35

27

432

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

606

737

7,304

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

18,495

18,115

222,841

TOTAL ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・￥ 21,583￥ 20,593$ 260,043￥ 21,583￥ 20,593$ 260,043

TOTAL

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

See notes to consolidated financial statements.

13

14

Consolidated Statements of Income

Consolidated Statements of Changes in Equity

Yushin Precision Equipment Co., Ltd. and Subsidiaries
Years Ended March 31,2011 and 2010

Yushin Precision Equipment Co., Ltd. and Subsidiaries
Years Ended March 31, 2011 and 2010

Thousands

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

Millions of Yen
Accumulated othercomprehensive income

Outstanding
Number of Common
Shares ofStock
Common Stock

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

2011

2010

2011

・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・￥ 12,567￥ 12,369$ 151,417

BALANCE, APRIL 1, 2009 ・・・・・・・・・・・・・・・・・

COST OF SALES ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・

7,709

8,000

92,883

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

487

487

487

Gross profit ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・

4,858

4,368

58,534

Cash dividends, ￥20 per share ・・・・・・・・・・・・・・・・・

(349)

(349)

(349)

(0)

(0)

NET SALES

17,492 ￥ 1,985 ￥ 2,023￥14,556 ￥ (345)

Purchase of treasury stock ・・・・・・・・・・・・・・・・・・・・・・
SELLING, GENERAL AND

CapitalSurplus(0)￥ 3 ￥ (383)￥17,841￥ 22(0)

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

ADMINISTRATIVE EXPENSES (Note 8) ・・・・・・・・・・・・・・・・・・

3,760

3,616

45,307

Operating income ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・

1,097

752

13,227BALANCE, MARCH 31, 2010・・・・・・・・・・・・・・・

OTHER INCOME (EXPENSES):

17,491

1,985

2,023 14,694

Minority
Interests

Total

(346)

Total
Equity￥17,86464

44 1094 114

68(338) 18,087

27

18,115

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

729

729

729

Interest and dividend income ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・

44

69

530

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

(174)

(174)

(174)

Foreign exchange gain (loss) ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・

(119)

28

(1,438)Purchase of treasury stock ・・・・・・・・・・・・・・・・・・・・・・

(1)

(1)

Other-net ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・

33

19

397

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

Other income (expenses)-net ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・

(42)

(1)
(0)

INCOME BEFORE INCOME TAXES AND

BALANCE, MARCH 31, 2011 ・・・・・・・・・・・・・・ 17,491

MINORITY INTERESTS・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・

(17)

(164)

8

(181)

(173)

(510)

117

1,055

870

12,716247

4,116￥ 1,985 ￥ 2,023￥15,249 ￥ (347)￥ 51 ￥ (503)￥18,459￥ 35 ￥18,495

INCOME TAXES (Note 7):
Current

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

341

Deferred・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・(28)

Total income taxes ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・

313

NET INCOME BEFORE MINORITY INTERESTSMINORITY INTERESTS IN NET INCOME

・・・・・・・

Accumulated othercomprehensive income

3,772

380

742

8,944
12

・・・・・・・・・・・・・・・

Thousands of U.S. Dollars (Note 1)

(343)

132

Common
Stock

151

2

BALANCE, MARCH 31, 2010 ・・・・・・・・・・・・・・
NET INCOME

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

￥

￥

729

487

$

8,793

Yen

・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・￥ 41.73￥ 27.87

Cash dividends applicable to the year ・・・・・・・・・・・・・・・・・・・・・・・

18.00

15.00

Net income

See notes to consolidated financial statements.

15

U.S. Dollars$

0.50

Retained
Earnings

TreasuryStock$ 23,923 $ 24,384 $177,043 $ (4,169)

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

Total

Minority
Interests

Total
Equity$ 823 $ (4,078) $217,926$ 328 $ 218,254

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

8,793

8,793

8,793

Cash dividends, $0.12 per share ・・・・・・・・・・・・・・・・(2,107)(2,107)(2,107)

(13)

(13)

Purchase of treasury stock ・・・・・・・・・・・・・・・・・・・・・
PER SHARE OF COMMON STOCK (Notes 2.p and 13):

CapitalSurplus

(13)
(208)

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

BALANCE, MARCH 31, 2011 ・・・・・・・・・・・・・・

0.22$ 23,923 $ 24,384 $183,728 $ (4,183)(1,982)(2,190)$ 615 $ (6,060) $ 222,408

103(2,087)$ 432 $ 222,841

See notes to consolidated financial statements.

16

Consolidated Statements of Cash Flows

Notes to Consolidated Financial Statements
Yushin Precision Equipment Co., Ltd. and Subsidiaries
Years Ended March 31, 2011 and 2010

Yushin Precision Equipment Co., Ltd. and Subsidiaries
Years Ended March 31, 2011 and 2010

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) decrease in trade receivables ・・・・・・・・・・・・・・・・・・(Increase) decrease in inventories ・・・・・・・・・・・・・・・・・・・・・・・・・
Increase (decrease) in trade payables・・・・・・・・・・・・・・・・・・・・・
Increase in provision for doubtful receivables ・・・・・・・・・・・・・・
Other - net ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・
Total adjustments ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・
Net cash provided by operating activities ・・・・・・・・・・・・・・・・
INVESTING ACTIVITIES:
Decrease in short-term investments ・・・・・・・・・・・・・・・・・・・・・・・・・
Purchases of property, plant and equipment ・・・・・・・・・・・・・・・・
Proceeds from sales of property, plant and equipment ・・・・・
Purchases of investment securities ・・・・・・・・・・・・・・・・・・・・・・・・・・
Proceeds from sale of investment in an associated company ・・・
Other - net ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・
Net cash provided by (used in) investing activities ・・・・・・・

2011

2010

2011

￥ 1,055￥ 870$ 12,716

(213)
224
260

(661)
304

(2,566)
2,700
3,136

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

1,065
2,047
(1,407)
40
(116)
1,272

(12,971)(6,702)6,770(15)(1,262)(10,911)

149

2,143

1,805

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

513
(127)
3
(1)
(65)
322

(3,071)
12
(17)
31
(23)
(3,067)

FINANCING ACTIVITIES:Dividends paid ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・
Purchase of treasury stock ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・
Proceeds from stock issuance to minority share holders ・・・

(176)
(1)
2

(349)
(0)

(2,121)(13)
33

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

(174)

(349)

(2,101)(86)

29(1,040)

(365)

2,145

(4,403)

10,197

8,051

122,860￥ 9,831￥ 10,197$ 118,457

EFFECT OF EXCHANGE RATE CHANGES ON
CASH AND CASH EQUIVALENTS ・・・・・・・・・・・・・・・・・・・・・・・・・
NET INCREASE (DECREASE) IN CASH AND CASH
EQUIVALENTS ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・
CASH AND CASH EQUIVALENTS,
BEGINNING OF YEAR ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・
CASH AND CASH EQUIVALENTS,
END OF YEAR ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・

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 in certain
respects as to application and disclosure requirements ofInternational Financial Reporting Standards.
Under Japanese GAAP, a consolidated statement of comprehensive
income is required from the fiscal year ended March 31, 2011 andhas been presented herein. Accordingly, accumulated othercomprehensive income is presented in the consolidated balance
sheet and the consolidated statement of changes in equity.
Information with respect to other comprehensive income for the year
ended March 31, 2010 is disclosed in Note 20. In addition, “netincome before minority interests” is disclosed in the consolidated
statement of income from the year ended March 31, 2011.
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.
The consolidated financial statements are stated in Japanese yen,
the currency of the country in which Yushin Precision Equipment
Co., Ltd. (the "Company") is incorporated and operates. The
translations of Japanese yen amounts into U.S. dollar amounts areincluded solely for the convenience of readers outside Japan andhave been made at the rate of ¥ 83 to $1, the approximate rate ofexchange at March 31, 2011. 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.
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 of suchaccount balances.

2.SUMMARY OF SIGNIFICANT ACCOUNTING POLICIESa. Consolidation - The consolidated financial statements asof March 31, 2011 include the accounts of the Company andits all subsidiaries (together, the "Group").
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 eliminated.
b. Unification of Accounting Policies Applied toForeign 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 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: 1)
amortization of goodwill;
2) scheduled amortization of actuarial gain or loss ofpensions 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 andincorporation of the cost model accounting; 5) recording theprior years' effects of changes in accounting policies in theincome statement where retrospective adjustments tofinancial 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 orafter April 1, 2008.
The Company applied this accounting standard effective
April 1, 2008.
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 sheets. 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 computed by
the declining-balance method at rates based on theestimated useful lives of the assets. The range of useful lives
is principally from 13 to 38 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 theundiscounted future cash flows expected to result from thecontinued use and eventual disposition of the asset or asset
group. The impairment loss would be measured as theamount 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 dispositionof 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 and corporate auditors areprovided at the estimated amount which would be required if
all directors and corporate auditors retired at the balance
sheet date. The Company terminated its retirement benefit
plan on June 29, 2006 and no additional provisions havebeen recorded since then. As of March 31, 2011, thebalance of the liability for retirement benefits to directors andcorporate auditors was \66 million ($ 804 thousand),provided in proportion to the term that present directors had
been in place before June 29, 2006.
j. Asset Retirement Obligations - In March 2008, the
ASBJ published the 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 the normal operation of atangible fixed asset and is associated with the retirement ofsuch tangible fixed asset. The asset retirement obligation isrecognized as the sum of the discounted cash flows required
for the future asset retirement and is recorded in the period inwhich the obligation is incurred if a reasonable estimate canbe made. If a reasonable estimate of the asset retirement
obligation cannot be made in the period the asset retirement
obligation is incurred, the liability should be recognized whena reasonable estimate of asset 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 through depreciation over
the remaining useful life of the asset. Over time, the liability is
accreted to its present value each period. Any subsequent
revisions to the timing or the amount of the original estimateof undiscounted cash flows are reflected as an increase or adecrease in the carrying amount of the liability and the19capitalized amount of the related asset retirement cost.
This standard was effective for fiscal years beginning on orafter April 1, 2010.
The Company applied this accounting standard effective April
1, 2010. There was no effect on profit or loss from this change.
k. Research and Development Costs - Research anddevelopment costs are charged to income as incurred.
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 iscomputed based on the pretax income included in the
consolidated statements 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.
n. 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 statements of income to the extent that they
are not hedged by forward exchange contracts.
o. Foreign Currency Financial Statements - The balance
sheet accounts of the consolidated foreign subsidiaries aretranslated into Japanese yen at the current exchange rate asof the balance sheet date except for equity, which istranslated at the historical rate.
Differences arising from such translation were 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.
p. 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 statements of income and 2) for derivatives
used for hedging purposes, if such derivatives qualify forhedge accounting because of high correlation andeffectiveness between the hedging instruments and thehedged items, gains or losses on derivatives are deferred
until maturity of the hedged transactions.

(2) Changes in Presentations
When the presentation of financial statements is changed,
prior period financial statements are reclassified inaccordance with the new presentation.

to the respective years including dividends to be paid after
the end of the year.
r. New Accounting Pronouncements(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 is accounted for prospectively if the change
affects both the period of the change and future periods.

Accounting Changes and Error Corrections - In
December 2009, 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
and guidance 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 specific transitional provisions. When the revised
accounting standards include specific transitional
provisions, an entity shall comply with the specifictransitional provisions.

(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 toaccounting changes and corrections of prior period errors
which are made from the beginning of the fiscal year thatbegins on or after April 1, 2011.

3.SECURITIES(1) Short-term Investments

Millions of Yen

2010

2011
Time deposits ・・・・・・・・・・・・・・・・・・・・￥

Thousands of U.S. Dollars
￥

121

2011

134

$ 1,466(2) Investment Securities
The carrying amounts and aggregate fair values of investment securities as of March 31, 2011 and 2010 were as follows:

Millions of Yen

2010

2011
Unrealized Unrealized Fair Value
Securities classified as:
Cost
Gains
LossesAvailable-for-sale:
89 ￥
4
￥ 250
Equity securities・・・・・・・・・・・・・・・・・・・ ￥ 165 ￥Cost￥ 1 64

Unrealized Unrealized Fair Value
Gains
Losses
￥ 113

￥

0

￥ 278

Thousands of U.S. Dollars

2011
Securities classified as:
Cost
Available-for-sale:
Equity securities・・・・・・・・・・・・・・・・・・・ $ 1,998

Unrealized Unrealized Fair Value
Gains
Losses$ 1,077$ 52$ 3,024

q. 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 applicable20

Assumptions used for the years ended March 31, 2011 and 2010 are set forth as follows:

4.INVENTORIES
Thousands of
U.S. Dollars

Millions of Yen

Inventories at March 31, 2011 and 2010 consisted of the following:

2011

2010

2011

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

￥

￥

436
560
1,267

$ 7,590
7,599
17,874

Total￥ 2,744￥ 2,264$ 33,064

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

630
630
1,483

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 ・・・・・・・・・・・・・・

2010

1.3%
1.0%

2.0%
1.0%

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

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

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

2011

stock, legal reserve, additional paid-in capital, other capitalsurplus and retained earnings can be transferred among theaccounts under certain conditions upon resolution of theshareholders.

The Company has severance payment plans for employees, directors and corporate auditors.
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 and corporate auditors in the amount of¥ 66 million ($ 804 thousand), and ¥66 million as of March 31, 2011 and 2010, respectively.
The asset for employees' retirement benefits at March 31, 2011 and 2010 consisted of the following:Thousands of
U.S. Dollars

Millions of Yen

2011

2010

2011

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

￥

470
(432)
(116)

￥ 382
(426)
(48)

$ 5,672(5,207)(1,404)

Net asset ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・

￥

(78)

￥

(93)

$

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

￥
￥

84
(6)

￥
￥

101
(8)

$ 1,023
$
(83)

(939)

The above liability for employee's retirement benefits is included in other long-term liabilities - other.
The components of net periodic retirement benefit costs for the years ended March 31, 2011 and 2010 are as follows:

2011

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・・・・・・・・・・・・・・・・・・・・・・・・・￥

Total ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・￥

Thousands of
U.S. Dollars

Millions of Yen

2011

2010
32
7
(4)
8
43

￥

41
85

￥

28
6
(3)
11
42

$

388
90
(51)
96
524

40

505

83

$ 1,029(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 (non-cash assets) to shareholders subject
to a certain limitation and additional requirements.
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.

(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 now presented as a separate
component of equity.
The Companies Act also provides that companies canpurchase both treasury stock acquisition rights and treasury
stock. Such treasury stock acquisition rights are presented
as a separate component of equity or deducted directlyfrom stock acquisition rights.

(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 total of aggregate amount of legal
reserve and additional paid-in capital equals 25% of thecommon stock.
Under the Companies Act, the total amount of additional
paid-in capital and legal reserve may be reversed without
limitation. The Companies Act also provides that common

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 normal effective statutory
tax rate of approximately 40.6% for the years ended March 31, 2011 and 2010.
The tax effects of significant temporary differences and tax loss carryforwards which resulted in deferred tax assets and liabilities at
March 31, 2011 and 2010 are as follows:
Thousands ofMillions of Yen
U.S. Dollars

2011
Deferred tax assets:
Inventories ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・
Buildings ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・
Software ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・
Enterprise tax payable ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・
Retirement benefits to directors and corporate auditors・・・
Warranty reserve ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・
Advances received ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・
Accrued bonuses ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・
Tax loss carryforwards ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・
Foreign exchange losses ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・
Other ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・
Less valuation allowance ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・
Total ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・
Deferred tax liabilities:
Undistributed earnings of foreign subsidiaries ・・・・・・・・・・
Account receivable for enterprise tax refund ・・・・・・・・・・・
Prepaid pension cost ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・
Unrealized gain on available-for-sale securities・・・・・・・・・
Other ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・
Total ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・
Net deferred tax assets ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・

￥

￥

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

￥

59

￥
￥

34
28
28
149
357

2010

2011

126
33
120
4
26
50

$ 2,070
463
1,010
163
321
443
195
862

￥

84
29
74
(52)
498

￥
￥

52
17
40
39
21
171
326

￥
￥

168
909
(500)
$ 6,108
$

411
337
341
$ 1,802$ 4,306

Thousands of
U.S. Dollars

Millions of Yen
Current assets - Deferred tax assets・・・・・・・・・・・・・・・・・・・
Investments and other assets - Other assets ・・・・・・・・・
Current liabilities - Other current liabilities ・・・・・・・・・・・
Net deferred tax assets ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・

￥

￥

339
19
(1)
357

2010
￥

￥

284
43
(1)
326

2011
$ 4,090
235(19)$ 4,306

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, 2011 and 2010 is as follows:

Normal effective statutory tax rate ・・・・・・・・・・・・・・・・・・・・・・・・・・
Expenses not deductible for income tax purposes ・・・・・・・・・
Accrued bonuses to directors and corporate auditors ・・・・・
Inhabitants' per capita levy ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・
Net change in valuation allowance ・・・・・・・・・・・・・・・・・・・・・・・・・
Foreign tax credit ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・
Difference of 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 ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・
23

2011

2010

40.6 %
0.2
0.5
1.6
(2.3)
(0.1)

40.6 %
0.3
0.5
2.0
6.0
(0.2)

(3.6)
0.9
(8.3)
0.2
29.7 %

9.LEASESThe Group leases certain computer equipment and other assets.
Total rental expenses including lease payments under finance leases for the years ended March 31, 2011 and 2010 were¥147 million ($1,772 thousand) and ¥156 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, the ASBJ Statement No. 13 permits leases
without ownership transfer of the leased property to the lessee and whose lease inception was before March 31, 2008 to continue
to be accounted for as operating lease transactions if certain “as if capitalized” information is disclosed in the note to the financial
statements. 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

(0.8)
0.5
(6.0)
0.8
43.7 %

Thousands of U.S. Dollars

2010

2011
Furnitureand Fixtures

711

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

2011

Research and development costs charged to income were ¥477 million ($5,749 thousand) and ¥478 million for the years ended
March 31, 2011 and 2010, respectively.

Acquisition cost・・
Accumulated
depreciation・・・・・
Net leased
property ・・・・・・・・・

￥

9

￥

8
￥

1

￥

Total

Total

￥ 15

￥ 15

$ 115

$ 115

11

11

96

96

3

￥ 3

9
8

Total

1

2011
Furnitureand Fixtures

Furnitureand Fixtures

￥

$

18

Obligations under finance leases:

2011

2010

2011

￥

1

￥

$

￥

1

￥

2
1
3

The amount of obligations under finance leases includes the imputed interest expense portion.
Depreciation expense and other information under finance leases;

$

16
2
18

Thousands of
U.S. Dollars

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

18

Thousands of
U.S. Dollars

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

$

2011

2010

2011

￥
￥

￥
￥

$
$

2
2

4
4

29
29

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 noncancellable operating leases at March 31, 2011 were as follows:

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

Millions of Yen

Thousands of
U.S. Dollars

￥ 10
1
￥ 11

$ 123
18
$ 141

24

10.FINANCIAL INSTRUMENTS AND RELATED DISCLOSURESOn March 10, 2008, the ASBJ revised ASBJ Statement No. 10 "Accounting Standard for Financial Instruments" and issued
ASBJ Guidance No. 19 "Guidance on Accounting Standard for Financial Instruments and Related Disclosures". Thisaccounting standard and the guidance are applicable to financial instruments and related disclosures at the end of the fiscal
years ending on or after March 31, 2010 with early adoption permitted from the beginning of the fiscal years ending before
March 31, 2010. The Group applied the revised accounting standard and the new guidance effective March 31, 2010.
(1) Group policy for Financial Instruments
The Group does not use financial instruments for speculative purposes based on its capital financing plan. Cash surpluses, ifany, are invested in low risk financial assets including short-term time deposits and certificate of deposits. Funds on hand areused to fund 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 risk ofmarket price fluctuations.
Payment terms of payables, such as trade notes and trade accounts, are primarily less than 4 months.
(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 indentify 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.
(4) Fair Value of Financial Instruments

Carrying
AmountFair Value

March 31, 2010
Cash and cash equivalents ・・・・・・・・・
Short-term investments ・・・・・・・・・・・・・
Receivables ・・・・・・・・・・・・・・・・・・・・・・・・・
Investment securities ・・・・・・・・・・・・・・・
Income taxes receivable ・・・・・・・・・・・・￥ 10,197
134
3,283
278
234

￥ 10,197
134
3,283
278
234

￥

Total ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・￥ 14,128￥ 14,128￥

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

￥

1,714
30

￥

1,714
30

￥

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

￥

1,745

￥

1,745

￥

Cash and cash equivalents, short-term investments, receivables and payables, income taxes receivable and income taxes
payableThe carrying values of cash and cash equivalents, short-term investments, receivables and payables, income taxes receivableand income taxes payable approximate fair value because of their short maturities.
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.

Thousands of U.S. Dollars

Carrying
AmountFair Value

Unrealized
Gain / Loss

Carrying
AmountFair Value

￥

￥

9,831
121
4,288
250

￥

$ 118,457
1,466
51,674
3,024$ 118,457
1,466
51,674
3,024

$

9,831
121
4,288
250

Millions of Yen

Unrealized
Gain / Loss

Total ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・￥ 14,493￥ 14,493￥$ 174,621$ 174,621$

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

￥

2,289
154

￥

2,289
154

￥

$ 27,584
1,860$ 27,584
1,860$

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

￥

2,443

￥

2,443

￥

$ 29,445$ 29,445$

Due in One
Year or LessMarch 31, 2010
Cash and cash equivalents ・・・・・・・・・
Short-term investments ・・・・・・・・・・・・・
Receivables ・・・・・・・・・・・・・・・・・・・・・・・・・

Total

・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・

Due after One Yearthrough Five Years

Due after Five Years
through Ten Years

Due after
Ten Years￥ 9,831
121
4,288

￥

￥

￥

￥ 14,242￥￥￥

Thousands of U.S. Dollars

Due in One
Year or LessMarch 31, 2010
Cash and cash equivalents ・・・・・・・・・
Short-term investments ・・・・・・・・・・・・・
Receivables ・・・・・・・・・・・・・・・・・・・・・・・・・

Total
25

Unrealized
Gain / Loss

(5) Maturity Analysis for Financial Assets with Contractual Maturities
Millions of Yen

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

Millions of Yen

・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・

Due after One Yearthrough Five Years

Due after Five Years
through Ten Years

Due after
Ten Years$ 118,457
1,466
51,674$$$$ 171,597

$

$

$
26

11.DERIVATIVES

15.SEGMENT INFORMATIONThe 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.
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, 2011 and 2010.

12. COMPREHENSIVE INCOME
For the year ended March 31, 2010
Other comprehensive income for the year ended March 31, 2010 consists of the following:

Millions of Yen

2010

Other comprehensive income:Unrealized gain on available-for-sale securities ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・
Foreign currency translation adjustments ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・
Total other comprehensive income ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・

￥ 65
47
￥ 112

Total comprehensive income for the year ended March 31, 2010 comprises the following:

Millions of Yen

2010

Total comprehensive income attritutable to:
Owners of the parent ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・
Minority interests ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・
Total comprehensive income ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・

￥ 597
5
￥ 602

13. NET INCOME PER SHARE
Details of the basic net income per share ("EPS") for the years ended March 31, 2011 and 2010 were as follows:

For the year ended March 31, 2011:
Basic EPS
Net income available to commonshareholders・・・・・・・・・・・・・・・・・・・・・・・・・・

Millions of Yen

Thousands ofSharesNet Income

Weighted
Average Shares

Yen

Dollars

For the year ended March 31,2010
In March 2008, the ASBJ revised ASBJ Statement No. 17 "Accounting Standard for Segment Information Disclosures" andissued ASBJ Guidance No. 20 "Guidance on Accounting Standard for Segment Information Disclosures". Under the standard
and guidance, an entity is required to report financial and descriptive information about its reportable segments. Reportablesegments are operating segments or aggregations of operating segments that meet specified criteria. Operating segments arecomponents of an entity about which separate financial information is available and such information is evaluated regularly by thechief 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 internally for evaluating operating segment performance anddeciding how to allocate resources to operating segments. This accounting standard and the guidance are applicable tosegment information disclosures for the fiscal years beginning on or after April 1, 2010. The segment information for the year
ended March 31, 2010 under the revised accounting standard is omitted, because the consolidated financial statement segment
information disclosed based on the handling of segment information to date is equivalent to information disclosed based on the
Accounting Standards for Segment Information Disclosure.
1. 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.
Yushin carries out the department, production, sales, and after-sales maintenance of take-out robots for injection-molded
products and peripheral equipment, including labour-saving systems. In the domestic markets, these operations arehandled by the Company; overseas markets - U.S.A., Asia (South Korea, Taiwan, Malaysia, Singapore, Thailand, China, andIndia), 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, Yushin's operations, based on its production, sales, and after-sales maintenance setups, are geographicallygrouped into four reportable segments: Japan, U.S.A., Asia, and Europe.
2. 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.
3. Information about sales, profit (loss), assets, and other items is as follows.

EPS

Millions of Yen￥ 729

17,490￥ 41.732011$ 0.50

Reportable Segment
For the year ended March 31, 2010:
Basic EPS
Net income available to commonshareholders・・・・・・・・・・・・・・・・・・・・・・・・・・￥ 487

17,491

Sales:
Sales to external customers ・・・・・・・・・・
Intersegment sales or transfers ・・・・・・
Total ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・
Segment profit ・・・・・・・・・・・・・・・・・・・・・・・・・・・・
Segment assets ・・・・・・・・・・・・・・・・・・・・・・・・・・・
Other:
Depreciation ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・
Increase in property, plant andequipment and intangible assets ・・・￥ 27.87

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

14. SUBSEQUENT EVENTSAppropriations of Retained Earnings
The following appropriation of retained earnings at March 31, 2011 was approved at the Company's Board of Directors' meeting held on May 11, 2011:

Year-end cash dividends, ￥13 ($0.15) per share ・・・・・・・・・・・・・・・・・・・・・・・・・

27

Millions of Yen

Thousands of
U.S. Dollars￥ 227$ 2,739

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

Total

Reconciliations Consolidated￥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

176

20

6

3

207

207

159

24

46

8

239

239

28

5. Information about geographical areas

Thousands of U.S. Dollars

2011(1) Sales

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

EuropeTotal

Reconciliations Consolidated$ 151,417
2,500 $ 151,417 $
39,995 (39,995)
215
2,715 191,412 (39,995) 151,417(735)
13,962
93
13,22791,4202,185 168,623
260,043$ 104,001 $ 23,084 $ 21,830 $
2,736
43
36,99824,567
23,128141,000
2,463
2,125
9,280
20,62814,805131,004
2,128

243

82

40

2,495

2,495

1,917

299

557

106

2,880

2,880

Notes 1: Reconciliations are as follows.
(1) The ¥(61) million ($(735) thousand) reconciliation to segment loss includes eliminations for intersegment transactions of ¥10 million($131 thousand) and inventory reconciliation of ¥(71) million ($(867) thousand).
(2) The ¥7,587 million ($91,420 thousand) reconciliation to segment assets includes eliminations for intersegment transactions of ¥(1,888) million($22,757) thousand) and operating funds of surplus assets by the Company (cash and deposits, securities and others) of ¥9,476 million($114,177 thousand).
Notes 2: Segment profit is reconciled to be consistent with operating income shown in the consolidated statements of income.

2011
Japan

North America

China Taiwan

Other Asia

￥ 5,120￥ 1,986￥ 2,640￥ 2,009

Europe
￥

Other
￥

658

152

Total
￥ 12,567

Thousands of U.S. Dollars

2011
Japan

North America

China Taiwan

Other Asia

$ 61,697$ 23,937$ 31,808$ 24,207

Europe
$

Other

7,929

$

1,837

Total
$ 151,417

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 sheets.
6. Information about major customers

4. Information about products and services

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.

Millions of Yen

2011

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

Millions of Yen

For the year ended March 31, 2010

Take-Out Robot

Custom Ordered
Equipments

Parts and
Maintenance
ServiceTotal￥ 8,912￥ 1,670￥ 1,984￥ 12,567

Information about operations in different industry segments is not required to be disclosed, since the Group is only engaged in theindustrial machinery business, such as manufacturing and distributing take-out robots for plastic injection molding products.
(1)Geographical Segments

Thousands of U.S. Dollars

Millions of Yen

2011
Take-Out Robot
Sales to external customers ・・・・・・・・・・・・$ 107,382

Custom Ordered
Equipments$

20,121

Parts and
Maintenance
Service$

23,9132010
Total$ 151,417

Japan
Sales to customers ・・・・・・・・・・・・・・・・・・・・・・・
Interarea transfer ・・・・・・・・・・・・・・・・・・・・・・・
Total sales ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・
Operating expenses ・・・・・・・・・・・・・・・・・・・・・・
Operating income (loss)・・・・・・・・・・・・・・・・・・
Total aseets ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・

North
America￥ 10,053 ￥ 1,330 ￥
1,460
3
11,513
1,334
10,729
1,359
￥
784 ￥
(24) ￥￥ 8,892 ￥Asia

Europe

746 ￥
139
886
949
(63) ￥

927 ￥ 1,140￥

Eliminations /Corporate Consolidated

239 ￥￥ 12.369
9(1,613)248(1,613)12,369239(1,660)11,6178 ￥47 ￥752
145 ￥ 9,487 ￥ 20,593(2)Sales to Foreign Customers
Sales to foreign customers for the years ended March 31, 2010 amounted to ¥7,706 million ($82,863 thousand).

29

30

Independent Auditors' ReportCompany Profile(As of March 31, 2011)

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 : 546 (Including consolidated subsidiaries), 373 (Yushin Precision Equipment Co., Ltd.)
Number of Shareholders : 5,388
Listed Stock Exchange : First Sections, Tokyo / Osaka
Securities Identification Number : 6482

Major Shareholders

Number of Shares held
(thousand)

Percentage ofShares held (%)

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

4,376

25.0

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

2,259

12.9

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) ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・

576

3.3

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) ・・・・・・・・・・・・・・・・・

410

2.3

The Master Trust Bank of Japan, Ltd. (Trust Accounts) ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・

401

2.3

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

381

2.2

(As of March 31,2011)

Distribution of ownership among shareholders
Treasury stok:
1.8%
Foreign corporations and others:
15.8%
Other corporations:26.3%

Financial institutions: 1.0%
Individuals:
25.6%

Total
17,819,033
sharesTotal
5,388
persons

Financial institutions:
30.5%

31

Others:2.5%

Individuals:
96.5%

32

http://www.yushin.com

2011.06