1KYOKUTO KAIHATSU KOGYO CO., LTD.
AND CONSOLIDATED SUBSIDIARIESAnnual Report 2008
Year ended March 31,2008

CONTENTS
Operational Results
Management Policy
Consolidated Statement of Income And Retained Earnings
Consolidated Balance Sheets
Consolidated Statement of Cash Flows
Basis of Presenting Consolidated Financial Statements
Report of Independent Certified Public Accountants
Corporate information
Board of Directors and Statutory Auditors

2
7
11
12
14
15
29
30
31

2

1. Operational Results(1) Analysis of Operational Results<Summary of Operational Results for the Consolidated Fiscal Year ended March 31, 2008 >The outlook of the Japanese economy has gradually
become uncertain in the consolidated fiscal year ended
March 31, 2008, due to the turmoil in the financial markets
triggered by the U.S. subprime loan problem as well as acutback in expenditure for public work and a sharp risein crude oil and steel products prices.
Under such a circumstance, the Kyokuto Kaihatsu Kogyo Group
has strived to strengthen its management base and enhance
corporate value in accordance with its medium-term business plan
“Plan2007” (from April 2007 to March 2010).

President and Representative of
the Board of Directors, CEO
Takaaki Fudetani

The Specialty Truck Division, a mainstay of its business, experienced a difficult businessenvironment, since demand for trucks in the domestic market decreased substantially. The
company strengthened cooperation with Nippon Trex Co., Ltd. that the company consolidated
as a subsidiary undertaking from April 1, 2007 and made efforts to expand overseas business.
The Environment Equipment and Systems Division saw its profitability of a recycling plant
construction deteriorate greatly due to the effects from local governments’ worsening financial
situation and a huge increase in raw material prices. The Real Estate Rental Division went
through difficult times, since demand for the multistory parking garage system declined due tothe amendment of the Building Standards Law. However, the division tried to ensureprofitability with cost-cutting efforts.
Products of Nippon Trex

Trailers

Van bodies

Gull-wing bodies

As a result, in the current consolidated fiscal year ended March 31, 2008, sales increased by
27,294 million yen (46.7%) over the preceding consolidated fiscal year to 85,685 million yen,
thanks to the consolidation of Nippon Trex Co., Ltd. Operating income decreased by 492
million yen (14.1%) to 2,997 million yen due to an operating loss incurred by the Environment
Equipment and Systems Division. Ordinary income declined by 403 million yen (12.7%) to
2,780 million yen, while net income grew by 119 million yen (7.7%) to 1,662 million yen.
We would like to present the summary of business on a consolidated basis by segment incomparison with the preceding fiscal year.

3i) Specialty Truck Division
The Specialty Truck Division saw demand for trucks in the domestic market decrease
substantially, due to the completion of replacement demand supported by more stringent
regulations on exhaust gas emissions from diesel engine cars, declining customer interests
triggered by concerns over the economic outlook, rising crude oil prices and a decrease inconstruction works caused by the amendment of the Building Standards Law.
Under such a circumstance, the company strengthened product lines by development of new
products and took several measures to enhance production efficiency and to reduce production
costs. The company also strived for establishing cooperation with Nippon Trex (joint
development and procurement, strengthening cooperation among sales, service and production
divisions, and integration of footholds). In oversea market, the company tried to increase
exports by actively wrestling the expansion of sales in South East Asia, Russia, the Middle East
and Africa, the regions where demand are expected to grow. In Kunshan Plant in China, thecompany made efforts to expand business by strengthening its production system and putting
new products on the market
As a result, sales, domestic and foreign, in the Specialty Truck Division increased by 22,874
million yen (51.6%) to 67,172 million yen over the preceding consolidated fiscal year, thanks tothe consolidation of Nippon Trex Co., Ltd., expanding production in Kunshan Plant as well as
steady exports to Africa, the Middle East and Russia. Operating income grew by 741 million
yen (32.6%) to 3,019 million yen.
New Products

Single-car carrier “FLATOP Zero”

New Squeeze-out type concrete pump
“PH55-18”

New-type single-axis aluminum-tank(20kL) Semitrailer
jointly developed with Nippon Trex

New underfloor-housed type tailgate lifter“Power Gate CG800TS”

4ii) Environment Equipment and Systems Division
The Environment Equipment and Systems Division saw its profitability a recycling plant
construction deteriorate greatly due to a decline in prices of orders received caused by local
governments’ worsening financial situation and a huge increase in raw material prices.
As a result, orders the division obtained decreased by 6,414 million yen (45.2%) to 7,762 million
yen. Revenues increased by 4,070 million yen (48.8%) to 12,409 million yen, thanks to theprogress of the plant construction that the company obtained in the preceding fiscal year andsteady growth in maintenance and system operation contracts. Operating income decreased
by 1,341 million yen and turned into a loss of 845 million yen, due to deteriorating profitabilityof the plant construction business.
Management will increase lucrative system operation and maintenance contracts and obtainplant construction orders by giving serious consideration on profitability.

Recycle Plaza

Pulverrizer for non-burnable wastesiii) Real Estate Rental Division
In the Real Estate Rental Division, the multistory parking garage system faced a harshbusiness environment, since the construction of condominiums declined due to the amendmentof the Building Standards Law. However, the division actively promoted after sales service
and maintenance business while it strived to reduce costs and obtain new orders.
As a result, revenues increased by 430 million yen (6.9%) to 6,653 million yen and operating
income grew by 105 million yen (14.8%) to 816 million yen.

Multistory parking garage system

Coin-operated parking

5<Forecast of Operations for the Next Consolidated Fiscal Year ending March 31, 2009>
With the public expenditures decreasing, raw material prices skyrocketing and the U.S.
economy slowing down, management expects the Japanese economy to enter into the recession
in the near future.
Regarding the operational results for the consolidated fiscal year ending March 31, 2009, thecompany expects total sales to increase by 415 million yen (0.5%) over the preceding fiscal year
to 86,100 million yen, due to the expansion of overseas sales in the Specialty Truck Division, themainstay of its business, offsetting a decrease in revenues from the Environment Equipment
and System Division and the Real Estate Rental Division. Management expects operating
income to remain almost flat to 3,000 million yen, thanks to an improvement of profitability inthe Environment Equipment and System Division, which helps to offset a decline in profit in
the Specialty Truck Division and the Real Estate Rental Division due to rising raw material
prices. The company estimates ordinary income to increase by 420 million yen (15.1%) to
3,200 million yen, because of a decrease in foreign exchange loss, while it forecasts net income
to grow by 228 million yen (13.7%) to 1,890 million yen.
(2) Analysis on Financial Conditionsi) Situations of Assets, Liabilities and Net WorthIn the current consolidated fiscal year, total assets increased by 19,901million yen (24.2%) fromthe end of the preceding fiscal year to 102,210 million yen.
Current assets increased by 13,358 million yen (29.9%) to 58,011 million yen, while fixed assets
grew by 6,542 million yen (17.4%) to 44,199 million yen. This is mainly because Nippon Trex
was consolidated as a subsidiary undertaking.
Regarding liabilities, current liabilities increased by 15,261 million yen (96.0%) to 31,163
million yen and fixed liabilities grew by 4,431 million yen (52.3%) to 12,912 million yen, mainly
due to the factor described above.
Although the company posted a net profit, this term’s net worth increased by a mere 208
million yen (0.4%) to 58,134 million yen, due to a decrease in valuation difference ofavailable-for-sale securities.
As a result, the capital adequacy ratio stood at 56.9% as of the end of the current fiscal year
(70.4% at the end of the preceding fiscal year).
ii) Cash Flow Situation
Consolidated cash and cash equivalents at the end of period decreased by 4,682 million yen(36.4%) over the balance at the beginning of period to 8,186 million yen. Cash flow by activity
type is summarized as follows:
Cash Flow from Operating Activities
The company recorded a cash outflow of 1,942 million yen (a decrease of 4,109 million yen overthe preceding period) for operating activities, due to the company posting net income before
income taxes for this term while an increase in trade accounts receivable and the company
paying corporate taxes.

6

Cash Flow from Investing Activities
The company recorded a cash outflow of 2,014 million yen (a decrease of 1,573 million yen) forinvesting activities, due to expenses related to the acquisition of fixed assets such as production
facilities and acquisition of shares of Nippon Trex Co., Ltd.
Cash Flow from Financial Activities
The company recorded a cash outflow of 751 million yen (an increase of 773 million yen) for
financial activities, due to expenses related to the acquisition of its own shares and dividend
payments.
(3) Principal policy for return of profits to shareholders and payment of dividends for thecurrent year and next year
The Kyokuto Kaihatsu Kogyo Group regards the return of profits to shareholders as one of themost important management’s policies. Taking the development of business in the future andbusiness environments into account, management has been striving to meet investors’
expectations through the improvement of business performance and the strengthening of its
financial position.
Regarding the return of profits to shareholders, the company has paid dividends and acquired
its own shares.
i) Dividend payment
Management plans to pay a dividend of five yen per share at the end of March 2008, making its
annual dividend 10 yen per share including an interim dividend.
For the year ending March 2009, management also plans to pay an annual dividend of 10 yen
per share (including an interim dividend of five yen).
ii) Acquisition of its own shares
The company acquired its own shares based on a resolution by its board of directors meeting in
the year ended March 2008 are as follows:
The total number of shares acquired: 912,700 shares
The total value of shares acquired: 798 million yen
The board of directors meeting held on March 27, 2008 resolved that the acquisition of its own
shares is as follows:
The total number of shares to be acquired: 2 (Two) million shares (maximum)
The total value of shares to be acquired: 1,200 million yen (maximum)
The acquisition period: From April 1, 2008 to September 30, 2008
Management will continue to increase the return of profits to shareholders to meet investors’
expectations.
(4) Business Risksi) Risks related to dependence on certain key customers, products, and technologies
The Specialty Truck Division sells various types of special-purpose vehicles to domestic truck7

manufacturers, their affiliated truck dealers and trading firms. Thus, fluctuation in demand
for trucks could affect the company’s business performance. In the technological field, thecompany has accumulated a wide range of expertise in manufacturing and marketing by themodel of a vehicle.
The Environmental Equipment and Systems Division is engaged in the construction of agarbage disposal plant and contracted business for maintenance and system operation for local
governments and industrial waste management companies.
ii) Risks related to possible legal restrictions, business practices and management policy
The Specialty Truck Division’s businesses are subject to the provisions of various laws andregulations, such as the Road Traffic Law, the Road Transport Vehicle Law and Motor Vehicle
Safety Standards. Since vehicles that fail to meet these laws and regulations after theenactment or revision will not be allowed to be used or owned in some cases, there will be alast-minute rise in demand and its eventual backlash. The rise and fall in demand due to legal
restrictions could affect the company’s business performance.
In the Environmental Equipment and Systems Division, since the construction of a garbage
disposal plant is subject to regulations under the Construction Industry Law, the company
conducts business with the license of a construction or cleaning facilities construction industry
which is authorized by the Minister of Land, Infrastructure, Transport and Tourism.
iii) Risk related to the fluctuation of raw material prices
The Kyokuto Kaihatsu Kogyo Group procures raw materials including steel products andcomponents for manufacturing the products from outside business entities. Therefore,
fluctuations in the prices of these materials could affect the Group’s business performance.
iv) Risks related to overseas business activities
The Kyokuto Kaihatsu Kogyo Group exports products, manufactures and markets products
and procures components at its overseas subsidiaries. There are risks involved in overseas
business activities such as unpredictable economic fluctuations, fluctuations in the value ofcurrencies, revisions of laws and regulations, the presence or occurrence of unfavorable
economic factors and social or political turmoil caused by terrorism, wars and other factors. A
realization of these risks could affect the Group business performance and plan.

8

2. Management Policy(1) Basic Management Policy of the Company
The basic management policy of the Kyokuto Kaihatsu Group is “To work together making every effort for thefurther development of the Company with strong emphasis on our unique technological expertise and strong
reliability, and providing considerable contribution to our society together with our group companies.”
Our ultimate goal in the management policy is to implement corporate policy recognizing a social role andresponsibility as a public company in a strong relationship with various stakeholders such as customers,
business partners, shareholders, employees, and local societies. In addition, by providing safe, effective andhigh quality products and services through our fair and sound business activities, the Kyokuto Kaihatsu Groupseeks to bring about greater contribution to our society and maximize corporate value.
With this management policy, we devote ourselves to three major business domains including Specialty Truck,
Environmental Equipment and Systems, and Real Estate Rental.
(2) Mid-to-Long Term Management Strategy and Major Challenges

About the Revision of “Plan2007”
The company has implemented its three-year medium-term business plan “Plan 2007” since April 2007.
Under the plan, the Kyokuto Kaihatsu Kogyo Group has been striving together to strengthen its managementbase and enhance corporate values.
However, business sentiments in industries, with which the company has a relationship, have rapidly
deteriorated due to a sharp rise in steel products and crude oil prices, a cutback in expenditure for public works,
a decrease in construction works due to the amendment to the Building Standards Law and the appreciation of
the yen.
The management has decided to revise the numerical target as follows, since demand for trucks in thedomestic market and orders for environmental equipment are likely to fall short of the initial forecast drastically
due to the reasons mentioned above.

Details of Revision (March 2010 [Consolidated])
Unit: Millions of yen
March 2010 (Consolidated)

Results for March2008

Differences

Before Revision

After RevisionSales

97,30089,200

U8,10085,685

Operating Income

6,400

4,660

U1,7402,997

Ordinary Income

6,490

4,850

U1,6402,780

Current net Income

3,910

2,830

U1,080

1,662

ROA (%)

3.5

2.7

U0.8

1.6

ROE (%)

6.0

4.7

U1.3

2.9

Segment Information (the same as the above)
Before Revision
Sales

Unit: Millions of yen
After Revision

Operating
IncomeSales

Differences

Operating
IncomeSales

Results for March 2008

Operating
IncomeSales

Operating
IncomeSpecialty Truck Division

77,0004,580

76,400

3,090

U600

U1,49067,172

3,019

Environmental Equipment andSystems Division

12,000

850

6,200

730

U5,800U120

12,409

U845

9,000

970

7,150

840

U1,850

U130

6,653

816

U700

−

U550

−

150

−

U550

6

97,3006,400

89,2004,660

U8,100U1,74085,685

2,997

Real Estate and Rental
Division
Retirement or whole
company
Total

9xSpecialty Truck Division
Overseas sales are expected to exceed the initial target, thanks to brisk exports to Asia, Africa, Middle Eastand Russia. However, demand for trucks in the domestic market, mainstay of the company, is expected to fallshort of the initial forecast sharply. As for earnings, the company expects production costs to increase further
due to a sharp rise in steel products and components prices, although it has been striving for cost reductions andrationalization to secure profits.

xEnvironmental Equipment and Systems Division
With governments facing the financial difficulties and reducing public work projects, the market forenvironmental equipment is likely to become smaller than initially anticipated. As for earnings, the company
expects a very hard business environment to continue, due to a decline in prices of orders received and a sharp
rise in production costs. Placing more emphasis on profitability, management will take orders after carefulselection of plants and control production costs strictly. The company will try to obtain more lucrative system
operation and maintenance contracts in order to improve profitability.

xReal Estate and Rental Division
Revenues are likely to fall short of the initial target figure, because of the deteriorating business environment
for the multistory parking garage system caused by a decline in construction works due to the amendment to the
Building Standards Law and intensifying competitions at the coin-operated parking lot business due to anincrease in new comers to the business.

Future Developments
Although the management has revised the numerical target, it will not change the basic policies and key
strategies of “Plan2007.” The company positions the period for “Plan2007” as an important phase to makenecessary investments for future growth and development of its business, and reinforce its management base.
Under the above concept, the whole Kyokuto Kaihatsu Kogyo Group will wrestle with the following tasks
together to achieve the plan and enhance corporate values from the medium and long-term perspectives.
Basic policies of the “Plan2007”
The Kyokuto Kaihatsu Kogyo Group will strive for further development of its business as the No.1 company inthe industry by actively devoting management resources to enhance its core business.
(i) To improve the Kyokuto Kaihatsu Kogyo’s brand value by realizing the customers’ trust andsatisfaction(ii) To accelerate global business activities based on core businesses(iii) To evolve our technological expertise toward “Future Creation”
Key strategies of the “Plan2007”(i) Expansion of overseas business(Improvement of Kunshan Plant in China, expansion of exports and cultivation of the market)(ii) Effects of integration with Nippon Trex Co., Ltd.
(Joint development, joint procurement, consolidation of production facilities and integration of sales
and service divisions)(iii) Improvement in profitability of Environmental Equipment and Systems Division(Expansion of system operation and maintenance contracts and taking orders after careful selectionof plants)

10(3) Other Important Matters Concerning Management
There are no other pertinent matters.

11

ＣＯＮＳＯＬＩＤＡＴＥＤ ＳＴＡＴＥＭＥＮＴＳ ＯＦ ＩＮＣＯＭＥ ＡＮＤ ＲＥＴＡＩＮＥＤ ＥAＲＮＩＮＧＳ
Thousands of
U.S. dollars(Note 1)Ｍｉｌｌｉｏｎｓ of ｙｅｎ
2008

2007

2008

Net sales…………………………………………

85,68558,390855,227

Cost of sales…………………………………………

71,96946,201

718,330

Gross profit…………………………………………

13,715

12,188136,897

Selling, general andadministrative expenses…………………………………………

10,718

8,698

106,981…………………………………………

2,997

3,490

29,916

Operating income (loss)
Other income (expenses)
Interest and dividend income…………………………………………

122

80

1,222

Interest expenses…………………………………………

(209)

(83)

(2,092)…………………………………………

150

10

1,503

Gain (loss) on sales ofproperty and equipment
Gain (loss) on sales ofinvestment in subsidiaries………………

-

227-

Gain (loss) on sales of securities…………………………………………

-

4

-

Write-down of investment securites…………………………………………

-

(7)

-

Special research and development expenditures………………

-…………………………………………

Other-net
Income (loss) before

income taxes

0

-

(373)

(360)

(3,731)……………………………

2,686

3,360

26,81810,807

Income taxes (Note 12)
current…………………………………………

1,082

1,859

deferred (prepaid),net…………………………………………

(58)

(42)

(585)

Total income taxes…………………………………………

1,024

1,817

10,221…………………………………………

--…………………………………………

1,662

1,543

16,596…………………………………………

32,22331,208

321,622…………………………………………

(423)

(423)

(4,227)

Bonuses to directors and statutory auditors ……………………………
Adjustment of retained earnings

(69)

(69)

(693)

Minority interest
Net income (loss)-

Retained earnings：
Balance at beginningof period

Cash dividends paid

for eliminations of treasury stock
Balance at endof period……………………………

(36)

(36)

(363)

…………………………………………

33,35632,223332,935

Yen

U.S. dollars

Per share of common stock：
Net income (loss)…………………………………………

39.73

36.57

0.40

Diluted net income (loss)…………………………………………

39.73

36.42

0.40

…………………………………………

10.00

10.00

0.10

Cash dividend,applicable toearnings of the year

The accompanying notes are an integral part of this statements.

12

ＣＯＮＳＯＬＩＤＡＴＥＤ ＢＡＬＡＮＣＥ ＳＨＥＥＴＳ
Thousands of
U.S. dollars(Note 1)
2008

Ｍｉｌｌｉｏｎｓ of ｙｅｎ
2007

2008
ASSETS
Current assets：
Cash and time deposits……………… ………………

6,361

5,352

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

1,830

7,515

18,267………………

36,76424,451

366,946

Trade note and accounts receivable
Less：Allowance for doubtful accounts

63,490………………

(97)

(166)

(977)

……………… ………………

9,485

6,305

94,670

Deferred income taxes (Note 12)……………… ………………

1,470

871

14,680Prepaid expenses……………… ………………

214

144

2,144

Other current assets……………… ………………

1,983

177

19,797……………… ………………

58,01144,653579,019

Investments in securities (Note 3)……………… ………………

5,265

6,959

52,554

Deferred income taxes (Note 12)……………… ………………

59

355

590

Other

……………… ………………

3,294

1,595

32,880………………

8,618

8,910

86,025Land……………… ………………

17,616

12,795

175,831

Buildings and structures……………… ………………

28,77523,820287,207

Machinery and equipment……………… ………………

13,043

7,355

130,186

Construction in progress……………… ………………

194

82

1,942

Other

……………… ………………

2,980
62,6102,017
46,07129,752624,921Less－Accumulated depreciation……………… ………………

(27,477)(19,006)(274,249)

Total property and equipment……………… ………………

35,13328,256350,672

Inventories

Total current assets
Investments and other assets：

Total investments and other assets
Property and equipment：

Intangible assets
Goodwill………………

01290……………… ………………

446

359

4,454

total intangible assets……………… ………………

446

489

4,454

Total assets……………… ………………

102,21082,309

1,020,171

other

13

ＣＯＮＳＯＬＩＤＡＴＥＤ ＢＡＬＡＮＣＥ ＳＨＥＥＴＳ
Thousands of
U.S. dollars(Note 1)Ｍｉｌｌｉｏｎｓ of ｙｅｎ
2007

2008

2008

LIABILITIES AND SHAREHOLDERS'EQUITYCurrent liabilities：
Short-term bank loans(Note 4)……………… ………………

Current portion of long-term bank loans (Note 4)………………

4,730

500

―

0

47,210―Trade note and account payable……………… ………………

19,668

10,463

196,314

Accrued income and other taxes……………… ………………

1,137

1,537

11,353

Accrued expenses……………… ………………

2,412

2,070

24,082Other current liabilities……………… ………………

1,958

1,331

19,548……………… ………………

31,163

15,902311,047

Total current liabilities

Long-term liabilities：
Long-term bannk loans (Note 4)……………… ………………

Accrued retirement benefits(Note 5)……………… ………………

―Directors' and statutory auditors' retirement benefits

0

―

2,398

1,624

23,943

247

283

2,465
28,606

Deferred income taxes (Note 12)……………… ………………

2,866

1,796

Other long-term liabilities (Note 4)……………… ………………

6,302

4,776

62,900Total long-term liabilities……………… ………………

12,912

8,480

128,880

Minority interrests……………… ………………

―

ー

－

Shareholders' equity：
Common stock, no par value (Note 10)
Authorized ― 170,950,672 shares
Issued ― 42,737,668 shares in 2006 and………………

11,89911,899118,773

Additional paid-in capital (Note 10)42,737,668 shares in 2007………………

11,718

11,718116,964Retained earnings………………

34,81433,619347,481

Treasury stock, at cost………………

(1,068)(919)(10,663)

Net unrealized holding gains on securities………………

524

1,391

5,232

Foreign currency translation adjustments………………

245

215

2,454

Total shareholders' equity……………… ………………

58,13457,925580,243

Total liabilities
and shareholders' equity……………… ………………

102,21082,309

1,020,171

14

CONSOLIDATED STATEMENT OF CASH FLOWS
Thousands of
U.S. dollars
Ｍｉｌｌｉｏｎｓ of ｙｅｎ
Operating activities：

2008

Net incom e before income taxes………………………………

(Note 1)

2007

2008

2,686

3360

26,818Adjustments to reconcile net income to net cash
provided by (used in) operating activities:
Dpreciation and am ortization………………………………

1,877

1,388

18,744

Write-down of investment securites

93

9

932

Net gains (loss) on sales of marketable securities and investments

0

(231)

0

(116)

22

(1,161)

Net gains (loss) on sales of proparty………………………………
………………

(336)

(96)

(3,354)

Interest and dividend incom e

Provision (reversal) for accrued retirem ennt benefits……………………………………………

(122)

(80)

(1,222)

Interrest expenses……………………………………………

209

83

2,092

………………………………

(3,621)(1,883)(36,142)

Decreease (increase) in accounts receivable
Decrease (increase) in inventories………………………………

(542)

(29)

(5,416)

Decrease (increase) in accounts payable………………………………

1,248

257

12,466

Decrease (increase) in incom e taxes payable………………………………

(38)

(76)

(384)

…………………………………………………………

(1,338)

1,222(13,361)…………………………………………………………

0

3,946

9

Interest and dividend income received ……………………………………………

116

54

1,167

Other,net
Sub totalInterest expenses paid……………………………………………

(189)

(16)

(1,895)

Income taxes paid……………………………………………

(1,619)(1,633)(16,157)…………………………………………………………

(251)

(183)

(2,510)Net cash provided by operating activities ………………………………

(1,942)

2,167(19,387)

Payment for purchase of marketable securities and investme n ………………

(681)

(346)

(6,799)Proceeds from sales of marketable securities and investment s………………

473

116

Other,net

Investing activities：

Proceeds from sales of investments in subsidiaries………………

Payment for purchase of investments in subsidiaries

ー

841

4,730
ー

………………

(644)

Payment for purchase of facilities……………………………………………

(1,556)

Proceeds from sale of facilities……………………………………………

517

63

5,161

Disbursement of loan receivables……………………………………………

(134)

(2)

(1,338)

10

97

107

(2,014)(440)(20,106)

Collection of loan receivables
Net cash provided by (used in) investing activities………………

ー(6,436)(1,209)(15,532)

Fainancing activities：
Increase (decrease) in short-term debt………………………………

600……………………………………………

1,349

ー

ー

Payment on long-term debt……………………………………………

(1,583)(1,000)(15,801)

Purchases of treasury stock……………………………………………

(801)

(644)

(7,998)………………………………

102

ー

1,023

…………………………………………………………

(418)

(422)

(4,173)(751)(1,524)(7,496)

(18)

(2)

(181)

(4,726)

198(47,171)

Proceeds from long-term debt

Proceeds from sales of treasury stock
Dividends paid

Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash equivalents
Net increase in cash and cash equivalents………………
………………

………………………………

500

5,988

15

１．Basis of Presenting Consolidated Financial Statements
Kyokuto Kaihatu Co.,Ltd (the ”Company”) and its domestic subsidiaries maintain theiraccounts and records in accordance with the provisions set forth in the Commercial Codeof Japan (the “Code”) and the Securities and Exchange Law and in conformity withaccounting principles and practices generally accepted in Japan.
The accompanying consolidated financial statements are prepared based on the
consolidated financial statements of the Company and its subsidiaries (the “Group”)
which were fi1ed with the Director of Kanto Local Finance Bureau as required by the
Securities and Exchange Law.
In preparing the accompanying consolidated financial statements, certain
reclassifications and rearrangements have been made to the consolidated financial
statements issued domestically in order to present them in a form which is more familiar
to readers outside Japan.
The translation of the Japanese yen amounts into U.S. dollars is included solely for theconvenience of the reader, using the approximate exchange rate at March 31, 2008, whichwas¥ 100.19 to US$1.00. These convenience translations should not be construed as
representations that the Japanese yen amounts have been, could have been, or could in
the future be, converted into U.S. dollars at this or any other rate of exchange.
As permitted by the regulations under the Securities and Exchange Law of Japan,
amounts of less than one million yen have been omitted. As a result, the totals shown in
the accompanying consolidated financial statements (both in yen and in U.S.dollars) do
not necessarily agree with the sums of the individual amounts.
２．Summary of Significant Accounting Policies(a) Consolidation Principles
The consolidated financial statements include the accounts of the Company and its significant
subsidiaries in accordance with the Securities and Exchange Law and related regulations of Japan.
The minor differences arising from the cost of the companies’ investments in subsidiaries andaffiliates over the equity in their net assets at fair value are charged or credited to income in theyear of acquisition. Significant differences are, as a rule, amortized over periods of 5 years. All
significant inter-company accounts and transactions have been eliminated.

Investments in associates are accounted for by the equity method whereby the Group includes in net
income its share of income or losses of these companies, and records its investments at cost adjusted for its
share of income, losses or dividends received.
(b) Consolidated Statement of Cash Flows
In preparing the consolidated statements of cash flows, cash on hand, readily-available
deposits and short-term highly liquid investments with maturity of not exceeding threemonths at the time of purchase are considered to be cash and cash equivalents.

16(c) Short-term investments and Investments in Securities
For the Accounting Standards for Financial Instruments which was issued by theBusiness Accounting Deliberation Council, securities are classified into three categories:
trading securities, held-to-maturity debt securities, equity investments in associates andother securities.
Those classified as other would be reported at fair value with unrealized gains, net of
related taxes reported in equity. Under the Code, unrealized holding gains on securities,
net of related taxes is not available for distribution as dividends and bonuses to directors
and corporate auditors.
Other investments are carried at cost. The cost is determined by the moving averagemethod.

(Trading securities)
Trading securities are held for resale in anticipation of short-term market movements.
Trade securities, consisting of debt and marketable equity securities, are stated at fairvalue. Gains and losses, both realized and unrealized, are charged to income.

(Held-to-maturity debt securities and other securities)
Management determines the appropriate classification of debt securities at the time ofpurchase and reevaluates the classification as of each balance sheet date. Debt securities
are classified as held-to-maturity when the Company has the positive intent and ability tohold the securities to maturity. Held-to-maturity debt securities are stated at amortizedcost adjusted for the amortization of premiums and the accretion of discounts to maturity.
Marketable equity securities and debt securities not classified as held-to-maturity areclassified as other securities. Other securities are carried at fair value with the unrealized
gains and losses, net of tax, reported in a separate component of shareholders’ equity. The
amortized cost of debt securities in this category is adjusted for the amortization ofpremiums and the accretion of discounts to maturity. Realized gains and losses anddeclines in value judged to be other than temporary on other securities are charged toincome.

(Golf club membership）
An impairment loss on deposits for golf club membership is required to be recognized inaccordance with the new standard.

(d) Inventories
Merchandise inventories are stated at cost, determined by the specific identification method.
Materials and work in process are stated at cost, determined by the periodic average method.
Supplies are stated at cost, determined by the last purchase cost method.
(e) Depreciation:
Depreciation is principally computed on the declining-balance method, based on the estimateduseful lives of assets which are prescribed by Japanese income tax laws. Buildings are depreciatedon a straight-line basis.

17

Amortization of intangible assets is computed by the straight-line method over periods prescribedprimarily by the Japanese Commercial Code or Japanese income tax laws.
(f) Stock and bond issue expenses
Stock and bond issue expenses are charged to income as incurred.
(g) Accrued Retirement Benefits
To provide for the payment of retirement benefits and pension plans to employees, theCompany and certain consolidated subsidiaries have entered an amount into a reserve
equivalent to the amount recognized as necessary at the end of the period under review
based on the expected retirement and severance obligations and the assets of pension
plans at fiscal year-end.
The Company and its domestic subsidiaries provide for lump-sum severance benefits withrespect to directors and corporate auditors. While the Company has no legal obligation, it
is a customary practice in Japan to make lump-sum payments to a director or a corporate
auditor upon retirement. Annual provisions are made in the accounts for the estimatedcosts of this termination plan, which is not funded. Any amounts payable to officers uponretirement are subject to approval at the shareholders’ meeting.

(h) Revenue recognition
The percentage of completion method is applied to the construction works which takelonger than one year and exceed ¥200million ($1,996 thousand) in contract amount.
(i) Leases
In Japan finance leases other than those that are deemed to transfer the ownership of theleased assets to lessees are accounted for by a method similar to that applicable toordinary operating leases.
(j) Research and Development and Computer Software
Research and development expenditure is charged to income when incurred.
Expenditure relating to computer software developed for internal use is charged to income
when incurred, except if it contributes to the generation of income or to future cost savings.
Such expenditure is capitalized as an asset is amortized using the straight-line method
over its estimated useful life which is in the range of 3 to 5 years.
(k) Income Taxes
Income taxes consist of corporation, inhabitants and enterprise taxes for domestic
companies and foreign income taxes.
Deferred income taxes are provided for the income tax expenses under the asset andliability method. Deferred income tax assets and liabilities are determined based on
temporary differences between the financial statements and tax bases of assets andliabilities, using enacted tax rates in effect during the years in which the differences are18

expected to reverse, and on available tax credits carryforward.

(l) Per Share Information
The computation of basic net income per share is based on the weighted average numberof shares of common stock outstanding during each period. The average number of sharesused in the computation was 41,847 thousand shares for 2008 and 42,215 thousand
shares for 2007(see Note 10).
For the year ended 31, 2007, fully diluted net income per share of common stock assumes
full exercise of right of the outstanding stock option plan at the beginning of the year.
Cash dividends per share shown in the statements of income are the amounts applicableto the respective years.

19

３．Short-term Investments, Investments in Securities and Investments in and advances toassociates
Short-term securities at March 31, 2008 and 2007 consisted of the following:Thousands of
U.S. dollars

Millions of yen
2008
Market value available:
Trading securities
Market value not available:
M.M.F. and F.F.F.

2007

2008

－

－

－

Other investment trust¥ 1,830－¥7,515－$ 18,265－

Total¥ 1,830¥ 7,515$ 18,265

The following is a summary of other securities at March 31, 2008 and 2007:

Millions of yen
March 31, 2008

Cost
Market value available:
Equity securities
Bonds and debentures
Other securities¥ 3,707－－¥ 3,707

Other securities
Gross
Gross
unrealized
unrealized
gains
losses¥ 1,263－－¥ 1,263

¥

¥

(472)
－
－
(472)

Market value not available:
Total

Book Value(Estimatedfair value)¥ 4,498－－¥ 4,498767¥ 5,265

Millions of yen
March 31, 2007

Cost
Market value available:
Equity securities
Bonds and debentures
Other securities
Market value not available:
Total¥ 2,419－－¥ 2,419

Other securities
Gross
Gross
unrealized
unrealized
gains
losses¥ 2,380－－¥ 2,380

¥

¥

(35)
－
－
(35)

Book Value(Estimatedfair value)¥ 4,764－－¥ 4,764894¥ 5,659

20

Thousands of U.S. dollars
March 31, 2008
Other securities
Gross
Gross
unrealized
unrealized
gains
losses

Cost
Market value available:
Equity securities
Bonds and debentures
Other securities

Book Value(Estimatedfair value)$ 37,000－－$ 12,606－－(4,711)－－$ 44,895－－$ 37,000$ 12,606(4,711)$ 44,895
7,655

Market value not available:$ 52,550

Total

４．Short-term bank loans and long-term debt
The annual average interest rates applicable to short-term bank loans at March 31, 2008, and 2007
are 1.51％ and 0.89％, respectively.
Long-term debt at March 31, 2008 and 2007 consisted of the following:

0.58％ bank loans due 2009
0.48％ bank loans due 2013
1.50％ guarantee money due 2023

Millions of yen
2008
2007
¥ 1,256¥ 1,028
1,098
86
3,299
3,072
¥ 5,427¥ 4,414

Thousands of
U.S. dollars
2008$ 12,538
10,96330,667$ 54,18

Aggregate annual maturities of long-term debt subsequent to March 31, 2008 are as
follows:
Thousands ofMillions of yen
Year ending March 31
U.S. dollars¥ 1,256$ 12,538
2009
1,048
10,465
2010
504
5,032
2011
235
2,353
2012
2,382
23,7792013 and thereafter¥
5,452$ 54,16821

５．Accrued Retirement Benefits
The following tables sets forth the changes in benefit obligation, plan assets and funded status of
the Company and its subsidiaries at March 31, 2008 and 2007.

Benefit obligation at end of year
Fair value of plan assets at end of year
Funded status:
Benefit obligation in excess of plan assets
Unrecognized prior service cost
Unrecognized actuarial loss
Prepaid expenses for plan assets at end of year
Accrued pension liability recognizedin the consolidation balance sheets

Millions of yen
2008
2007
¥ 7,000 ¥ 4,560
4,013
3,024

Thousands of
U.S. dollars
2008$ 69,867
40,054

2,987
98
(687)
―

1,535
―
(107)
―

29,813
978(6,857)
―

2,398

1,642

23,935

Note: Some domestic subsidiaries have adopted allowed alternative treatment of theaccounting standards for retirement benefit for small business entity.
Severance and pension costs of the Company and its subsidiaries included the following
components for the year ended March 31, 2008 and 2007.
Thousands ofMillions of yen
U.S. dollars
2008
2007
2007
Service cost
¥ 368
¥ 238
$ 3,673
Interest cost
146
96
1,457
Expected return on plan assets
( 99)
( 61)
( 988)
Amortization:
Prior service cost
( 19)―
( 250)( 25)
6( 190)
Actuarial losses¥ 279$ 3,703
Net periodic benefit cost
¥ 371
Assumption used in the accounting for the defined benefit plans for the year ended March
31, 2008 and 2007 is as follows:
2007
2008
straight –line basis straight –line
Method of attributing benefit to periods of service
basis
Discount rate
2.0 %
2.0 %
Long-term rate of return on fund assets
2.0 %
2.0 %
Amortization period for prior service cost
10 years―
10 years
10 years
Amortization period for actuarial losses

22

６．Contingencies
At March 31, 2008 and 2007, the Group was contingently liable as follows:
Millions of yen
2007
2008

Thousands of
US dollars
2008

As an endorser of notes discounted or endorsed¥ 2,482¥ 2,649$ 24,776

As a guarantor of indebtedness of :Associates
Others¥ 4,51180¥ 4,933227$ 45,026
798¥ 4,561¥ 5,160$ 45,824

７．Cash and cash equivalents
Cash and cash equivalents at March 31, 2008 and 2007 are as follows:
Millions of yen
2008
2007
Cash and time deposits

Thousands of
U.S. dollars
2008¥ 6,361¥ 5,352$ 63,490

1,830

7,515

18,267

( 5)
―

―
―

( 50)
―

¥ 8,186¥12,868$ 81,708

Short-term investment
Less-Time deposits with original maturities
more than three months
Less-Stock

８．Leases
The Group leases certain machinery and equipment, and other assets. Total lease
payments under these leases were ¥ 515 million ($ 5,143 thousand) , and ¥ 468 million forthe years ended March 31, 2008 and 2007, respectively.
Pro forma information relating to acquisition costs, accumulated depreciation and future
minimum lease payments for property held under finance leases which do not transfer
ownership of the leased property to the lessee on an “as if capitalized” basis for the years
ended March 31, 2008 and 2007, are as follows:

Acquisition costs
Accumulated
Depreciation
Net leased property

MachineryandEquipment¥ 1,568

¥

768
804

Millions of yen
2008
Other
¥
606

Total
¥ 2,174

319
286

1,083
¥ 1,090¥

23

Acquisition costs
Accumulated
Depreciation
Net leased property

Acquisition costs
Accumulated
Depreciation
Net leased property

MachineryandEquipment¥ 1,607

¥

681
925

Millions of yen
2007
Other
¥
430

Total
¥ 2,037

164
265

845
¥ 1,191¥

Thousands of U.S. dollars
2008
MachineryandEquipment
Other$ 15,657$ 6,049

7,632$ 8,025

3,185$ 2,864

Total$ 21,709
10,817$ 10,889

Future minimum lease payments under finance leases as of March 31, 2008 and 2007
were as follows:
Thousands ofMillions of yen
U.S. dollars
2008
2007
2008
Due within one year
¥ 432
¥ 422
$ 4,313
Due after one year
658
769
6,576
Total
¥ 1,090¥ 1,191$ 10,889

The acquisition costs and future minimum lease payments under finance leases include theimputed interest expense portion.
Depreciation expense, which is not reflected in the accompanying consolidated statements ofincome, computed by the straight-line method, would have been ¥ 515 million ($5,158 thousand)for the year ended March 31, 2008.
９．Derivatives and Hedging Activities
Derivative financial instruments are utilized by the Company principally to reduce interest rate andforeign exchange rate risks. The Company has established a control environment which includes
policies and procedures for risk assessment and for the approval, reporting and monitoring oftransactions involving derivative financial instruments. The Company does not hold or issue
derivative financial instruments for trading purposes.
At March 31, 2008 and 2007, all forward exchange contracts outstanding were enteredinto in order to hedge receivables and payables denominated in foreign currencies whichhave been translated and reflected at the corresponding contracted rates in theaccompanying consolidated balance sheets at March 31, 2008 and 2007.

24

１０．Shareholders’ Equity(1) Changes in common stock and additional paid-in capital have resulted from the following.
Number of
SharesMillions of yen
Additional
Commonpaid-inStockcapitalBalance of March 31, 2006……

42,737,668

11,89911,718Retirement of stock during 2007

……

－

－

－

Balance of March 31, 2007……

42,737,668

11,89911,718Retirement of stock during 2008

……

－

－

－

Balance of March 31, 2008……

42,737,668

11,89911,718

Thousands of
U.S.dollars
Additional
Commonpaid-inStockcapitalBalance of March31, 2007……

118,773

116,965

Retirement of stock during 2008

……

－

－

Balance of March31, 2008……

118,773

116,965

The Company adopted 100 shares of common stock as “low unit”. A holder of shares representing
less than one unit cannot exercise any voting rights with respect to such shares. However, theholder is entitled to receive dividends and other distributions. A holder of a fraction of a unit may
at any time require the Company to purchase such shares at the prevailing market price. Shares sopurchased must be sold or otherwise transferred to a third party within a reasonable time.
１１．Research and Development and Computer Software
Research and development expenditure charged to income was ¥ 1,045 million ($ 10,431
thousand) and ¥ 897 million for the years ended March 31, 2008 and 2007, respectively.
１２．INCOME TAXESThe Company and its domestic subsidiaries are subject to several taxes based on income, which in
the aggregate resulted in statutory tax rates of approximately 40.6％ and 40.6 % for the years
ended March 31, 2008 and 2007, respectively. Foreign subsidiaries are subject to income taxes of
the countries in which they operate.
The effective rate for the two years ended March 31, 2008 differs from the Company’s statutory
tax rate for the following reasons:
2008
2007
Statutory tax rate
40.6
40.6
%
Dividend income ……………………………………
(0.5)
(0.3)
Expenses not deductible for income tax purposes ……
2.1
1.7
Per capital inhabitant tax
2.9
1.8
Other …………………………………………………
(7.0)
10.3
Effective tax rate …………………………………………

38.1

45.4

%

25

The tax effects of temporary differences that give rise to significant portions of the deferred tax assets at
March 31, 2008 and 2007 are presented below:
Millions of yen
2008
2007
Deferred tax assets:
Accrued expenses

¥

480

¥

Thousands of
US dollars
2008

403

$ 4,791

Accrued retirement benefits
Depreciation
Unrealized profits
Tax loss carryforwards
Other
Total gross deferred tax assets
Less valuation allowance

1,059
299
302
－
1,157
3,298
(916)

780
216
302
86
565
2,355
(160)

10,570
2,984
3,021
－
11,552
32,917( 9,143)

Net deferred tax assets

2,382

2,195

23,775

Deferred tax liabilities:
Special tax-purpose reserve for condensed
booking of fixed assets
Unrealized gains of other securities
Intercompany profit
Total gross deferred tax liabilities(1,705)(1,811)(17,018)( 359)(1,654)(3,718)(952)－(2,764)( 3,583)(16,509)(37,109)

Net deferred tax assets¥ (1,336)¥ ( 569)$ (13,335)

In assessing the realizability of deferred tax assets, management of the Company considers
whether it is more likely than not that some portion or all of the deferred tax assets will not berealized. The ultimate realization of deferred tax assets is entirely dependent upon the generationof future taxable income in specific tax jurisdictions during the periods in which those temporary
differences become deductible. Although realization is not assured, management considered the
projected future taxable income in making this assessment. Based on these factors, management
believes it is more likely than not that the Company will realize the benefits of these deductible
differences, net of the existing valuation allowance as of March 31, 2008.

26

１３．Segment Information
Information about operations in different industry segments of the Group for the years ended
March 31, 2008 and 2007, are as follows:
Industry Segmentsa.

Sales and Operating Income

Industry A

Industry B

Sales to customers
Intersegment¥67,1710¥ 12,409－

Total sales

67,171Millions of yen
2008
Eliminations/C
Industry C
orporate¥ －¥ 6,104

Consolidated

549( 550)¥ 85,685－

12,4096,653( 550)

85,68564,152

13,2555,837( 557)

82,687¥ 3,019¥ ( 845)¥ 816

Operating expenses
Operating income

Industry A

Industry B

Sales to customers
Intersegment¥44,2960¥ 8,338－

Total sales

44,29742,019¥6

Millions of yen
2007
Eliminations/C
Industry C
orporate¥ －¥ 5,754¥

2,997

Consolidated

468( 468)¥ 58,390
－

8,338

6,223

( 468)

58,390

7,843

5,511

( 473)

54,900495¥ 711

Operating expenses
Operating income¥ 2,277

Industry A

¥

¥

5

Thousands of U.S. dollars
2008
Eliminations/C
Industry B
Industry C
orporate$123,861$ 60,929
$
－
－
5,484
( 5,493)¥3,490

Consolidated

Sales to customers
Intersegment$670,438

Total sales

670,447

123,861

66,413( 5,493)855,228

640,309132,301

58,262( 5,561)825,311$ 30,138$ (8,441)$ 8,15168$ 29,916

9$855,228－

Operating expenses

Operating income

$

27

b.

Assets, Depreciation and Capital Expenditures

Industry A

AssetsDepreciation
Capital expenditure

Industry B¥ 10,853

1,380

66

327

－

1,774

1,118

31

52

－

1,202

Industry B

Consolidated¥ 4,546

916

64

294

－

1,275

749

21

716

－

1,487

Industry A

Depreciation
Capital expenditure

Millions of yen
2007
Eliminations/C
Industry C
orporate¥10,565¥ 19,699¥ 102,210¥47,497

Depreciation
Capital expenditure

AssetsConsolidated¥69,209

Industry A

AssetsMillions of yen
2008
Eliminations/C
Industry C
orporate¥10,289¥ 11,857$690,784

Thousands of U.S. dollars
2008
Eliminations/C
Industry B
Industry C
orporate$ 108,332$ 102,702$118,352¥ 82,309

Consolidated$1,020,171

13,775

661

3,270

－

17,707

11,163

318

524

－

12,006

Notes: Industry A consists of special equipment car.
Industry B consists of environmental equipment and systems.
Industry C consists of real estate business.
Corporate assets consist primarily of cash and cash equivalents, investment inandadvances to affiliates, investments in securities and the corporate headquarters
assets.

28

１４．Subsequent Event
The following appropriations of the Company’s retained earnings in respect of the year
ended March 31, 2008 were as proposed by the Board of Directors and approved by theshareholders at the annual general meeting held on
June, 2008:

Appropriations
Cash dividends (¥ 10 per share)

Millions of yen¥

207

Thousands of
U.S. dollars$ 2,066

29

REPORT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS
To the Shareholders andBoard of Directorsof Kyokuto Kaihatsu Kogyo Co., Ltd.

We have audited the accompanying consolidated balance sheets of Kyokuto
Kaihatsu Co., Ltd. and subsidiaries as of March 31, 2007 and 2008, and the related
consolidated statements of income, stockholders’ equity and cash flows for each of
the years in the two-year period ended March 31, 2008. These consolidated
financial statements are the responsibility of the Company’s management. Our
responsibility is to express an opinion on these consolidated financial statements
based on our audits.
We conducted our audits in accordance with auditing standards generally
accepted in Japan. Those standards require that we plan and perform the audit toobtain reasonable assurance about whether the financial statements are free ofmaterial misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements. An audit also
includes assessing the accounting principles used and significant estimates madeby management, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the consolidated financial statements referred to above present fairly, in all material
respects, the financial position of Kyokuto Kaihatsu Kogyo Co.,Ltd. and subsidiaries as of March 31,
2007 and 2008, and the results of their operations and their cash flows for each of the years in the
two-year period ended March 31, 2008 in conformity with accounting principles generally acceptedin Japan, except at noted in the following paragraph.

The accompanying consolidated financial statements as of and for the year ended
March 31, 2008 have been translated into United States dollars solely for theconvenience of the reader. We have recomputed the translation and, in our opinion,
the consolidated financial statements expressed in yen have been translated into
dollars on the basis set forth in note 1 to the consolidated financial statements.
Osaka Audit

Osaka, Japan
June 26, 2008

Corporation

30

CORPORATE INFORMATION
Kyokuto Kaihatsu Kogyo Co.,Ltd.
Established: June,1955
Paid-in Capital: ¥11,899 million (at March 31,2008)
Number of Shares Issued: 42,737,668shares (at March 31,2008)
Number of Employees: consolidated 2,156 non-consolidated 847 (at March 31,2008)
Headquarters:
1-45,Koshienguti 6-chome,Nishinomiya City,
Hyogo Prefecture,663-8545 Japan
Tel.+81-798-66-1000, Fax.+81-798-66-8146
Tokyo Head Office:
1-1,Asahicho,Haneda,Ota-ku,Tokyo,144-0042,Japan
Tel.+81-3-5737-2271, Fax+81-3-5737-7791
Plants:Yokohama Plant
Occupies 62,400 ㎡, Since March,1962
Located in Yamato,Kanagawa
Nagoya Plant
Occupies 132,537 ㎡, Since June,1970
Located in Komaki,Aichi
Miki Plant
Occupies 98,274 ㎡, Since October,1979
Located in Miki,Hyogo
Fukuoka Plant
Occupies 66,832 ㎡, Since September,1970
Located in Iizuka,Fukuoka
Hachinohe Plant
Occupies 57,600 ㎡, Since April,1999
Located in Hachinohe,Aomori

31

BOARD OF DIRECTOR AND STATUTORY AUDITORS
Katsushi Tanaka,
Chairman and Representative of the Board of Directors
Takaaki Hudetani,
President and Representative of the Board of Directors,CEO
Motohachi Hashimoto,Director, Senior Managing Executive Officer
Tomoki Ueyama,
Director, Managing Executive Officer
Kazuyoshi Nakai,
Director, Managing Executive Officer
Akira Yamashita,
Director, Managing Executive Officer
Yoshinori Takashima,
Director, Managing Executive Officer
Taro Okamoto,
Masatoshi Yoshida,
Norihiro Kumazawa,
Yoshihiro Yasuoka,
Takahisa Tsuda,
Osami Ikeda,
Masakazu Nishida,
Ryuichiro Nishikawa,Executive Officer
Executive Officer
Executive Officer
Executive Officer
Executive Officer
Executive Officer
Executive Officer
Executive Officer

Shunji Nakamura,Kozo Ueda,
Rikuyuki Tentaku,
Akira Michigami,Standing Auditor
Auditor
Auditor
Auditor