Annual Report 2011
Year ended March 31, 2011

CONTENTS
Operational Results
Management Policy
Consolidated Balance Sheets
Consolidated Statements of Income
Consolidated Statements of Comprehensive Income
Consolidated Statements of Changes in Shareholders’ Equity
Consolidated Statements of Cash Flows
Basis of Presenting Consolidated Financial Statements
Report of Independent Certified Public Accountants
Corporate information
Board of Directors and Statutory Auditors

2
8
11
13
14
15
16
17
41
42
43

Operational Results

2

１．Operational Results（１）Analysis of Operational Results<Summary of Operational Results for the Consolidated fiscal Year ended March 31, 2011>
First of all, we would like to express our deepest sympathy to all those who have been affected by the Great
East-Japan Earthquake on March 11, 2011, and pray for earlier revival for the stricken area.
Despite the general trend of slow recovery based on improving business profitsand expanding exports particularly to newly emerging markets, the overall
Japanese economy in the current consolidated fiscal year continued to present
an unclear outlook due to abrupt appreciation of yen and soaring crude oil prices.
Under this business environment, the domestic economy, hit by theunprecedented disaster caused by the Great East-Japan Earthquake, plummeted
toward the end of the fiscal year. With the lingering effects of the Great
East-Japan Earthquake, our domestic plants were unable to resume ordinary
operations, for a few months, particularly for the Specialty Truck Segment,a mainstay of the Company, as it became difficult to secure components andmaterials, including chassis, due to damages suffered by our business partners, etc. Representative Director,
President, CEO
Our plants, branches, and service bases, etc., for example, Sendai Business Office
Takaaki Fudetani(Miyagino-ku, Sendai-shi, Miyagi) and Fukushima Business Office (Koriyama-shi,
Fukushima) were also directly hit. We thus marked an extraordinary loss of 117 million yen in the current
consolidated fiscal year to cover the losses and expenses for buildings and facilities damaged by the disaster.
Despite the above negative effects of the Earthquake toward the end of the fiscal year, we incessantly continued
our efforts in strengthening the corporate constitution, so that we can generate profits even in the dwindlingscale of the domestic specialty truck market, in the consolidated fiscal year under review, which was also thefirst year of the new medium-range management planning, “Plan 2010” (April 2010 - March 2013),
commenced in April last year. These unified efforts of the entire Group were made, specifically, by means ofintegration/elimination and consolidation of production system, cost reduction, promotion of in-houseproduction, improvement of profitability by suppressing fixed costs, etc., promotion of overseas businessdeployment, and product development, etc., based on the keywords of “environment,” “safety,” and “global.”.
Although the Specialty Truck Segment, a mainstay of our business, continued to see a severe businessenvironment due to dwindling domestic demands for specialty trucks, a recovery became palpable, owing
partly to special subsidies for new vehicle purchases and partly to last-minute rush demands before
implementation of stricter emission controls. The Environment Equipment and Systems Segment and the Real
Estate Rental Segment continued to show unfavorable performances due to persistently harsh market
conditions.
As a result, in the current consolidated fiscal year, net sales increased by 3,615 million yen (6.7%) comparedwith the preceding consolidated fiscal year to 57,686 million yen. As for profit and loss status, operating income
reached 1,195 million yen, an improvement of 3,767 million yen due to our profit improvement efforts
specifically targeted at the Specialty Truck Segment, our mainstay category, in the past three years. Thus, thecurrent net income reached 882 million yen, an improvement of 3,310 million yen over the level marked in theprevious term, primarily due to the steady increases in our main operations, despite the fact that the special lossof 117 million yen incurred, as mentioned above, due to the earthquake disaster.

Operational Results

3

We would like to present the summary of business on a consolidated basis by segment in comparison
with the preceding fiscal year.

ⅰ) Specialty Truck Segment
Even during the continuously declining domestic market for specialty vehicles, the Specialty Truck Segment
had shown a sign of recovery due to the subsidies for new vehicle purchases, and other favorable effects.
However, since the latter half of March, the production plummeted because of the Great East-Japan Earthquake,
forcing our business partners to stop their factory production and making it extremely difficult for us to procurenecessary components and materials.
However, the Company aggressively strived to improve profits through not only securing demands, but also
promoting cost reduction and in-house production initiatives throughout the fiscal year. Furthermore, in order toenhance production efficiency, Nippon Trex Co., Ltd. acquired Kyushu Trex Co., Ltd., a Group company,
through a merger, as of January 1, 2011, and integrated production bases in Kyushu into our Fukuoka Plant. As
part of our overseas development efforts, the Company established “MITHRA KYOKUTO SPECIALPURPOSEE VEHICLE COMPANY PRIVATE LIMITED” in Vijayawada, Andhra Pradesh, India as of
October 7, 2010. The plant construction started on the same month, and is scheduled to start commercial
production by the end of fiscal 2011, as the second overseas production site following the first in Kunshan,
China.
As a result, net sales in the Specialty Truck Segment increased by 5,382 million yen (13.4%) to 45,646
million yen. The Company saw segment profit (loss) increase by 3,631 million yen and posted
segment loss of 674 million yen due to the above various profit improvement measures taken. We
would like to improve our profitability in the same Segment by concentrating on these profit
improvement measures.

Perspective of the Plant in India(MITHRA KYOKUTO SPECIAL PURPOSE VEHICLE COMPANY PRIVATE LIMITED)ⅱ) Environment Equipment and Systems Segment
For the Environment Equipment and Systems Segment, management tried to secure profits by strengthening
the maintenance and system operation business and, for the plant construction business, obtaining orders withserious consideration on profitability and on PFI projects.
As a result, orders the Segment obtained increased by 2,424 million yen (25.5%) to 11,934 million yen

Operational Results

4

due to obtaining orders of recycle center from Saitama, Funabashi, and Noda cities. Net sales
decreased by 943 million yen (11.3%) to 7,369 million yen due to temporary reduction of POCM.
Segment profit increased by 17 million yen to 1,297 million yen due to various profit improvement
measures taken.

Pulverizer system for demonstrationin Kunshan Plant (China)ⅲ) Real Estate Rental Segment
For the Real Estate Rental Segment, in the severe environment due to the sluggish market, we focusedon maintenance and renewal of multistory parking equipment, promotion of cost reduction andenforcement of sales organization for toll parking lots.
As a result, net sales decreased by 807 million yen (13.6%) to 5,146 million yen and segment profit increased
by 15 million yen (1.9%) to 861 million yen due to improvement of its profitability.

Multistory parking equipment

Toll parking (coin-operated)<Forecast of Operations for the Next Consolidated Fiscal Year ending March 31, 2012>Management expects the overall national economic conditions to remain unclear in the aftermath of the Great
East-Japan Earthquake, the electricity shortage and the appreciation of the yen.
Although demands will continue for a while in nation-wide recovery efforts after the disaster, it’s difficult toestimate its effect accurately, so we have to watch the market trends carefully. In this situation, we will continue
our efforts aggressively to obtain orders and emphatically promote overseas initiatives.
Regarding the forecast of consolidated business performance for March 2012, the Company estimates net sales
to increase by 3,814 million yen (6.6%) over March 2011 to 61,500 million yen, since the Specialty Truck
Segment is likely to increase sales. Management expects the overall operating income to increase by 505
million yen to 1,700 million yen, due to an improvement in the Specialty Truck Segment, etc., while net income

Operational Results

5

is estimated to grow by 618 million yen to 1,500 million yen.

（２）Analysis on Financial Conditionsⅰ) Situations of Assets, Liabilities and Net WorthIn the current consolidated fiscal year, total assets increased by 2,821 million yen (3.3%) from the end of thepreceding fiscal year to 88,119 million yen.
Current assets increased by 2,851 million yen (6.9%) to 44,277 million yen, due to increases in trade notes andaccounts receivable, and in short-term securities, etc.
Non-current assets (property, plant and equipment, intangible assets and investments and other assets)
decreased by 30 million yen (0.1%) to 43,842 million yen, due to depreciation, despite acquisition of land,
investment in foreign subsidiaries and acquisition of national bond as guarantee deposit for plant construction.
Regarding liabilities, current liabilities increased by 1,196 million yen (6.0%) to 21,054 million yen, due toincreases in trade notes and accounts payable and in current portion of long-term bank loans, etc.
Non-current liabilities increased by 1,091 million yen (8.3%) to 14,172 million yen due to an increase inlong-term bank loans, etc.
Total shareholder’s equity increased by 534 million yen (1.0%) to 52,893 million yen, due to an increase inunrealized gain on available-for-sale securities as well as posting of net profit.
As a result, the capital adequacy ratio stood at 60.0% as of the end of the current fiscal year (61.4% at the end of
the preceding fiscal year).

ⅱ) Cash Flow Situation
Consolidated cash and cash equivalents at the end of period increased by 1,991 million yen (18.0%) over thebalance at the beginning of period to 13,058 million yen. Cash flow by activity type is summarized asfollows:
Cash Flow from Operating Activities
Net cash provided by operating activities amounted to 2,476 million yen (a decrease of 3,282 million yen
compared with the preceding fiscal year). This was because of a posting of income before income taxes andan increase in trade notes and accounts payable, etc.
Cash Flow from Investing Activities
Net cash used in investing activities was 2,309 million yen (an increase of 386 million yen compared with thepreceding fiscal year). This was because of purchases of property, plant and equipment and securities andinvestment, etc.
Cash Flow from Financing Activities
Net cash provided by financing activities was 1,839 million yen (an increase of 4,191 million yen comparedwith the preceding fiscal year). This was because of proceeds from long-term bank loans.

Operational Results

6(3) Principal policy for return of profits to shareholders and payment of dividends for the current
year and next year
The Kyokuto Kaihatsu Kogyo Group regards the return of profits to shareholders as one of the most importantmanagement’s policies. Taking the development of business in the future and business environments into
account, management has been striving to meet investors’ expectations through the improvement of businessperformance and the strengthening of its financial position.
The Meeting of Shareholders on June 28th, 2011 resolved and passed to pay a dividend of four yen per share at
the end of March 2011 as originally proposed by management, making its annual dividend 7 yen per shareincluding an interim dividend.
For the year ending March 2012, management plans to pay an annual dividend of 9 yen per share (including aninterim dividend of four yen).

(4) Business Risksi) Risks related to dependence on certain key customers, products, and technologies
The Specialty Truck Segment sells various types of special-purpose vehicles to domestic truck manufacturers,
their affiliated truck dealers and trading firms. Thus, fluctuation in demand for trucks could affect thecompany’s business performance. In the technological field, the company has accumulated a wide range ofexpertise in manufacturing and marketing by the model of a vehicle.
The Environmental Equipment and Systems Segment is engaged in the construction of a garbage disposal plantand 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 Segment’s businesses are subject to the provisions of various laws and regulations, 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 the enactment or revision will not be allowed to be used orowned in some cases, there will be a last-minute rise in demand and its eventual backlash. The rise and fall indemand due to legal restrictions could affect the company’s business performance.
In the Environmental Equipment and Systems Segment, since the construction of a garbage disposal plant issubject to regulations under the Construction Industry Law, the company conducts business with the license of aconstruction 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 and components for
manufacturing the products from outside business entities. Therefore, fluctuations in the prices of thesematerials 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 procurescomponents at its overseas subsidiaries. There are risks involved in overseas business activities such as
unpredictable economic fluctuations, fluctuations in the value of currencies, revisions of laws and regulations,the presence or occurrence of unfavorable economic factors and social or political turmoil caused by terrorism,

Operational Results

7

wars and other factors. A realization of these risks could affect the Group business performance and plan.

v) Risks related to credit risks in business partners
The Kyokuto Kaihatsu Kogyo Group transacts with various domestic and overseas business partners. The
realization of bad debt risks, including credit insecurity in those business partners, could cause losses andrequire allowances, affecting the Group business performance and financial standing.

Management Policy

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) Targeted management index
Despite the continued sluggish domestic demands for medium and heavy-duty trucks, management aims toachieve net sales of 67,000 million yen or more and operating income of 3,000 million yen or more on
consolidated basis for the year ending March 2013.
(3) Mid-to-Long Term Management Strategy and Major Challenges
As special demands are expected in restoration work after the disaster, the Group is determined to respond toorders and production requirements for our various products, specifically specialty trucks, our mainstay, so that
we can contribute to expeditious recovery of the disaster-stricken areas.
However, since long-term domestic demands for trucks are not expected to grow rapidly, we will emphaticallypromote overseas initiatives, focusing particularly on newly developing countries expected to generate strong
demands.
We will continue our efforts aggressively to secure and promote sound business performances, in accordancewith the following five Basic Policies of “Plan 2010,” formulated as our mid-term management plan.
Basic Policies(1) As for the specialty truck business, we will change our business constitution to one where profit canbe ensured even if domestic demands for medium and heavy-duty trucks remain stagnant. We will
also establish new overseas manufacturing sites additionally to those in China and India to ensure
continued development.
(2) As for the environmental equipment and systems business and car-parking business, we will
promote establishment of technology partnerships and licensing of our technologies with overseas
companies additionally to ensuring domestic orders and profits.
(3) We will promote product development based on the keywords of “environment”, “safety”, and“global”.
(4) We will try to compete in new business areas regardless of the current Group business categories.
(5) We will promote mobilization of assets possessed by the Kyokuto Kaihatsu Group to streamline ourcapital asset management.

Management Policy

9

Key Strategies(1) Specialty Truck Segment
Challenge:
Ensuring profit even if domestic demands for medium and heavy-duty trucks
remain stagnant
As the overall domestic market for medium and heavy-duty trucks remain at the level reduced by 80%
from its peak level, we will aim to change our business constitution to one where profit can be ensured
even if the market remains stagnant by rigorously re-organizing the domestic manufacturing structure,streamlining the manufacturing system, reducing cost, expanding overseas procurement, and increasing
market share.
[Result in the year ending March 2011](1) We had Kyushu Trex Co., Ltd. merge into Nippon Trex Co., Ltd. on January 1, 2011, and integrated
production bases in Kyushu into our Fukuoka Plant for the production rationalization.
(2) We have promoted cost reduction by shifts to in-house production.
(3) We have increased international sourcing for cost reduction, especially from China utilizing
Kunshan Plant and Shanghai Business Office.
Challenge:
Establishing new overseas manufacturing sites to ensure business development
We will actively promote technology partnerships and the establishment of overseas manufacturing sites
in the ASEAN region, which we deem as the next key area following China and India.
We will invest our management resources mainly into overseas businesses where future demands are
expected, and will also enforce the alignment between the domestic and overseas sites within the Group.
[Result in the year ending March 2011](1) We have founded “Mithra Kyokuto Special Purpose Vehicle Company Private Limited” inVijayawada, Andhra Pradesh, India as of October 7, 2010, and started plant construction in the samemonth. We expect that it will start its commercial production in 2011.
(2) We will continually and actively consider establishing new overseas manufacturing sites.
Challenge:

Enhancing the development of new products based on the keywords of“environment”, “safety”, and “global”
We will actively work upon product development and sales promotion based on the keywords of“environment”, “safety”, and “global”. We will expand sales for our new range of products such as theelectric refuse trucks “E PACKERTM” whose equipment is driven electrically, and electric concrete pumps“twin-drive PISTON CRETESTM”, etc. We will also work actively upon developing new products whichmatch the needs of the overseas markets as we enforce our businesses in these overseas markets, too.
[Result in the year ending March 2011](1) We have developed the line-up of the electric refuse trucks “E PACKERTM” and actively promoted
them by exhibiting them at some expositions or other events.
(2) We have introduced a new product “Double-axis 24kl rectangular-type aluminum tank semitrailer”,
jointly developed with Nippon Trex.
(3) We have actively launched other new products including piston-type concrete pumps “PISTONCRETETM PY100-30-S”.

(2) Environmental Equipment and Systems Segment
Challenge:
Selecting profitable orders and focusing on maintenance/outsourced operation
businesses
We will focus on being selective for when receiving orders for the construction of new plants by being
conscious of the expected profit and loss for each case in the domestic plants market which has been

Management Policy

10

struggling under a severe business environment, and on the PFI businesses which is expected to become
highly popular in the coming years, additionally to actively working upon maintenance business andoutsourced plant operation business where stable profit can be expected. We will also work uponprocuring components from overseas market, etc. to reduce the cost and to expand the profit.
[Result in the year ending March 2011](1) We have obtained orders of new plant constructions from Saitama, Noda and Funabashi cities.
(2) We have actively promoted for system operation contracts to expand the profits.

Challenge:

Actively expanding the know-how for the environmental businesses to overseas
markets
We will promote licensing business of our technologies regarding crushers, RDF system, and recycling
centers, etc. to potential overseas markets such as those in the Asian countries. We will aim to contributeto the promotion of environmental programs in each country, and to enforce the environmental equipment
and systems business provided by the Group.
[Result in the year ending March 2011](1) We have installed pulverizer system for demonstration in Kunshan Plant (China) to strengthen theoverseas sales.
(2) We have actively promoted our environmental business technologies by exhibiting them at some
expositions or other events in China.
(3) Real Estate and Rental Segment
Challenge:
Expanding our car-parking business
As for the car-parking business, we will focus on renovation business where a new market is expected toemerge, and will also enforce our product line-up by releasing new products.
[Result in the year ending March 2011](1) We have actively promoted renewal of multistory parking equipment to expand the profits.
(2) We have strengthened maintenance business activities.
(4) New businesses
Challenge:
Competing in new business areas
We will aim to compete in new business areas, not only into those where synergy effect can be expectedwith the existing businesses that are already implemented by the Group, but into totally new businessareas regardless of the current Group business categories by promoting active alliances. This will enable
us to ensure new source of earnings in the future and to establish an even more robust business basis.
[Result in the year ending March 2011](1) We have started studies for EV conversion business including the market research.
(2) We have continually studied some new markets, expected to grow in the future or to bring us
synergy, from several viewpoints.

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

Consolidated Balance Sheets

CONSOLIDATED BALANCE SHEETSAt March 31, 2011 and 2010ASSETS
Current assets:
Cash and deposits (Notes 8 & 10)
Short-term securities (Notes 8 & 10)
Trade notes and accounts receivable (Note 10)
Merchandise & finished goods
Work in process
Raw materials & supplies
Other current assets
Deferred tax assets (Note 15)
Allowance for doubtful accounts
Total current assets

Millions of yen

2011¥

Property, plant and equipment (Note 11):Land (Note 5)
Buildings and structures (Note 5)
Machinery, equipment and vehicles
Construction in progress
Other
Total
Accumulated depreciation
Net property, plant and equipment
Intangible assets
Investments and other assets:
Investment securities (Notes 3, 5 & 10)
Deferred tax assets (Note 15)
Other assets
Allowance for doubtful accounts
Total investments and other assets
Total
The accompanying notes are an integral part of these statements.

¥

2010

11

Thousands of
U.S. dollars(Note 1)
2011

5,609 ¥
7,949
21,178
94
1,888
5,755
838
1,115
(149)
44,277

5,723
5,345
20,503
144
1,821
6,329
789
979
(207)
41,426$

19,33130,034
15,51416
1,131
66,026(31,072)
34,954

19,20030,151
12,85038
3,848
66,087(30,006)
36,081

232,489
361,203
186,580
192
13,601
794,065(373,692)
420,373

357

392

4,283

5,585
913
3,411
(1,378)
8,531
88,119 ¥

4,100
1,022
3,931
(1,654)
7,399
85,29867,165
10,98541,022(16,573)
102,599
1,059,754$

67,463
95,598
254,692
1,129
22,71069,216
10,075
13,413(1,797)532,499

Consolidated Balance Sheets

CONSOLIDATED BALANCE SHEETSAt March 31, 2011 and 2010

LIABILITIES AND SHAREHOLDERS' EQUITYCurrent liabilities:
Short-term bank loans (Notes 4, 5 & 10)
Current portion of bonds payable (Notes 4 & 10)
Current portion of long-term bank loans (Notes 4, 5 & 10)
Trade notes and accounts payable (Note 10)
Accrued expenses
Income taxes payable
Other current liabilities
Total current liabilities

Millions of yen

2011¥

Non-current liabilities:
Bonds payable (Notes 4 & 10)
Long-term bank loans (Notes 4, 5 & 10)
Liabilities for retirement benefits (Note 6)
Liabilities for directors' retirement benefits
Deferred tax liabilities (Note 15)
Other non-current liabilities (Notes 4, 5 & 10)
Total non-current liabilities
Shareholders' Equity:
Common stock (Note 13):
Authorized-170,950,672 shares
Issued-42,737,668 shares in 2011 and 2010
Capital surplus
Retained earnings
Treasury stock, at cost:
3,004,758 shares in 2010
3,005,055 shares in 2011
Accumulated other comprehensive income:Unrealized gain on available-for-sale securities
Foreign currency translation adjustments
Total accumulated other comprehensive income
Total shareholders' equity
Total
The accompanying notes are an integral part of these statements.

¥

2010

12

Thousands of
U.S. dollars(Note 1)2011

2,620 ¥
494
1,865
12,014
2,120
158
1,783
21,054

2,620
494
1,235
11,171
2,015
245
2,078
19,858

$

1,135
3,967
2,189
125
1,494
5,262
14,172

1,629
1,757
2,404
115
1,511
5,665
13,081

13,65047,71026,3301,506
17,97363,270170,439

11,90011,71931,254

11,90011,71930,610143,113140,935
375,876(2,145)(2,145)(25,798)

367
(202)
165
52,893
88,119 ¥

294
(19)
275
52,35985,2984,408(2,420)1,988
636,114
1,059,754$

31,5095,941
22,423
144,487
25,496
1,904
21,441
253,201

13

Consolidated Statements of Income

CONSOLIDATED STATEMENTS OF INCOME
Years ended March 31, 2011 and 2010

Millions of yen

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income (loss)¥

Other income (expenses):
Interest and dividend income
Interest expense
Gain (loss) on sales or disposition of property and equipment, net
Loss on impairment of long-lived assets
Gain (loss) on sales of securities
Write-down of investment securities
Amortization of negative goodwill
Loss on disaster
Foreign exchange loss
Other-net
Other expenses-net
Income (loss) before income taxes and minority interests
Income taxes (Note 15):
Current
Deferred
Total income taxes
Net income (loss) before minority interests
Net income (loss)¥

Amounts per shares:
Basic net income (loss)
Diluted net income (loss)
Cash dividends applicable to earnings of the year
The accompanying notes are an integral part of these statements.

2011
57,686 ¥47,177
10,509
9,314
1,195

2010
54,07145,4008,671
11,243(2,572)

95
(176)
(32)
(5)
54
377
(117)
(140)
(139)
(83)
1,112

75
(174)
(50)
(3)
0
(186)
377
(143)
(276)
(380)
(2,952)

1,146(2,112)
(382)
(62)
647
4,528
(1,411)(1,678)(1,677)(1,001)
13,373

386
(910)
(524)
(2,428)(2,428)

3,899(1,137)
2,762
10,611
10,611

324
(94)
230
882
882 ¥

2011
¥

Thousands of
U.S. dollars(Note 1)

Yen

22.21 ¥
7.00$$

U.S. dollars(Note 1)

2010
(61.10)6.00

2011
693,762
567,374
126,388
112,014
14,374

2011

$

0.26
0.08

Consolidated Statements of Comprehensive Income

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
Year ended March 31, 2011

Net income before minority interests

Millions of yen

Thousands of
U.S. dollars(Note 1)¥$Other comprehensive income (Note 16):
Net unrealized gains on other securities
Foreign currency translation adjustments
Share of other comprehensive income in affiliates accounted forby the equity method
Total other comprehensive income
Comprehensive income (Note 16)
Total comprehensive income attributable to (Note 16):
Owners of the parent
Minority interests
The accompanying notes are an integral part of these statements.

14

¥

2011

882

2011
10,611

73
(169)
(14)

872
(2,030)
(165)

(110)

(1,323)

772
772
－

$

9,288
9,288
－

Consolidated Statements of Changes 15
in Shareholders’ Equity

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY
Years ended March 31, 2011 and 2010
Millions of yen
Accumulated other comprehensive income

Commonstock

Balance, March 31, 2009¥

11,900 ¥Capitalsurplus11,719 ¥Retainedearnings
33,356 ¥Purchases of treasury stock
Disposal of treasury stock(0)

Net loss

Treasurystock(2,145) ¥Unrealized
gain onavailablefor-salesecurities
22 ¥Foreigncurrencytranslation
adjustments(121) ¥

Total(99) ¥

Total
equity54,731

(0)

(0)

0

(0)

(2,428)(2,428)

Appropriation
Cash dividends paid

(318)

(318)

Net changes in the year
Balance, March 31, 2010¥

11,900 ¥11,719 ¥30,610 ¥Purchases of treasury stock(2,145) ¥

272

102

374

374

294 ¥

(19) ¥

275 ¥

52,359(0)

Disposal of treasury stock(0)

Net income

(0)

0

0

882

882

Appropriation
Cash dividends paid
Net changes in the year
Balance, March 31, 2011

(238)
¥

11,900 ¥11,719 ¥31,254 ¥(238)(2,145) ¥

73

(183)

(110)

(110)

367 ¥

(202) ¥

165 ¥

52,893Thousands of U.S. dollars
Accumulated other comprehensive income

Balance, March 31, 2010$

Commonstock

CapitalsurplusRetainedearnings

143,113 $

140,935 $

368,132 $Purchases of treasury stock

Treasurystock(25,798) $Unrealized
gain onavailablefor-salesecurities
3,536 $

Foreigncurrencytranslation
adjustments(225) $

Total
3,311 $

(0)

Disposal of treasury stock(0)

Net income

Total
equity629,693(0)0010,611

10,611

Appropriation
Cash dividends paid
Net changes in the year
Balance, March 31, 2011

(2,867)$

143,113 $

140,935 $The accompanying notes are an integral part of these statements.

375,876 $(2,867)(25,798) $872(2,195)(1,323)(1,323)

4,408 $

(2,420) $1,988 $

636,114

Consolidated Statements of Cash FlowsCONSOLIDATED STATEMENTS OF CASH FLOWS
Years ended March 31, 2011 and 2010

Millions of yen

Operating activities:
Income (loss) before income taxes
Depreciation and amortization
Write-down of investments securities and investments
Loss on impairment of long-lived assets
Net loss (gains) on sales of securities
Net loss (gains) on sales of property
Interest and dividend income
Interest expenses
Decrease (increase) in trade notes and accounts receivable
Decrease (increase) in inventories
Increase (decrease) in trade notes and accounts payable
Increase (decrease) in liabilities for retirement benefits
Increase (decrease) in consumption taxes payable
Other, net
Sub totalInterest and dividend income received
Interest expenses paid
Income taxes paid
Net cash provided by operating activities

2011

Thousands of
U.S. dollars(Note 1)2011

1,112 ¥
1,902
5
(54)
31
(95)
176
(569)
501
953
(215)
(115)
(665)
2,967
96
(176)
(411)
2,476

(2,952)
2,006
193
3
(0)
50
(75)
174
3,717
3,362
(494)
88
157
(68)
6,161
74
(155)
(321)
5,759

Investing activities:
Purchases of securities and investments
Proceeds from sales of securities and investments
Purchases of property, plant and equipment
Proceeds from sales of property, plant and equipment
Disbursement of loans receivableCollection of loans receivable
Net cash used in investing activities(1,516)
176
(735)
84
(328)
9
(2,310)(16)
62(2,756)15(8)
7(2,696)(18,237)
2,114(8,833)
1,007(3,941)
119(27,771)

Financing activities:
Net increase (decrease) in short-term bank loans
Proceeds from long-term bank loans
Repayment of long-term bank loans
Proceeds from issuance of bonds
Payment for redemption of bonds
Payment of finance lease obligations
Purchases of treasury stock
Proceeds from sales of treasury stock
Dividends paid
Net cash provided by (used in) financing activities

4,500(1,659)
(494)
(269)
(0)
0
(239)
1,839

(3,000)1,488(1,361)
1,470
(347)
(285)
(0)
0
(318)
(2,353)

54,118(19,962)(5,941)(3,235)(0)0(2,869)22,111

Foreign currency translation adjustments on cash and cash equivalents
Net increase in cash and cash equivalents
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year (Note 8)
¥

(15)
1,990
11,06813,058 ¥23733
10,334
11,068(177)
23,947133,100
157,047

The accompanying notes are an integral part of these statements.

¥

2010

16

$

13,37322,874

62
(647)
371
(1,146)2,112(6,843)
6,028
11,458(2,583)(1,386)(7,985)35,688
1,153(2,115)(4,942)
29,784$

Basis of Presenting Consolidated 17
Financial Statements

1. Basis of Presenting Consolidated Financial Statements
The accompanying consolidated financial statements of Kyokuto Kaihatsu Kogyo Co., Ltd.
(the “Company”) and its consolidated subsidiaries (collectively the “Group”) 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, which are different in certain
respects as to the application and disclosure requirements of International Financial
Reporting Standards.
As explained in Note 2 (n), a consolidated statement of comprehensive income is required
from the fiscal year ended March 31, 2011 and has been presented herein. Accordingly,
accumulated other comprehensive income is presented in the consolidated balance sheets
and the consolidated statements of changes in net assets. Information with respect toother comprehensive income for the year ended March 31, 2010 is disclosed in Note 16. In
addition, “Net income before minority interests” is disclosed in the consolidated
statements of income.
In preparing the accompanying consolidated financial statements, certain
reclassifications 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.
In addition, the notes to consolidated financial statements include additional information
which is not required under generally accepted accounting principles and practices inJapan.
The financial statements presented herein are expressed in Japanese yen and, solely forthe convenience of the readers, have been translated into U.S. dollars at the rate of¥83.15=US$1, the approximate exchange rate on March 31, 2011. These translations
should not be construed as representations that the Japanese yen amounts actually are,have been or could be converted into U.S. dollar amounts.
2. Summary of Significant Accounting Policies(a) Consolidation
The consolidated financial statements include the accounts of the Company and its 9
significant subsidiaries (10 in 2010). Investments in 1 nonconsolidated subsidiary (1 in2010) and 1 affiliate (1 in 2010) are accounted for by the equity method.
Under the concept of control or significant influence, those companies in which theCompany, directly or indirectly, is able to exercise control over operations are fully
consolidated, and those companies which the Group has the ability to exercise significant
influence (affiliated companies) are accounted for by the equity method.
There are two nonconsolidated subsidiaries which are not accounted for by the equity

Basis of Presenting Consolidated 18
Financial Statements

method at March 31, 2011, because these companies are not material in terms of net
income and retained earnings and do not have any significant impact on the consolidated
financial statements, if excluded from the scope of application by the equity method.
All significant inter-company balances and transactions have been eliminated inconsolidation. All material unrealized gains resulting from inter-company transactions
have been eliminated.
On March 10, 2008, the ASBJ issued ASBJ Statement No.16, “Accounting Standard for
Equity Method of Accounting for Investments”. The new standard requires adjustments to
be made to conform the affiliate’s accounting policies for similar transactions and events
under similar circumstances to those of the parent company when the affiliate’s financial
statements are used in applying the equity method unless it is impracticable to determine
adjustments. In addition, financial statements prepared by foreign affiliates in accordancewith either International Financial Reporting Standards or the generally accepted
accounting principles in the United States tentatively may be used in applying the equity
method. In this case, same adjustments as those for overseas subsidiaries are required in
the consolidation process unless the impact is not material.
This standard was applicable to equity method of accounting for fiscal years beginning on
or after April 1, 2010.
The Company applied this accounting standard effective April 1, 2010, but there was no
impact on the income for the year ended March 31, 2011.
Assets and liabilities of the consolidated subsidiaries at the time of investment are allvalued at fair value. The goodwill or negative goodwill is being amortized on astraight-line basis over an estimated period not exceeding 20 years, or five years insituations in which the useful lives cannot be estimated. However, insignificant goodwill
or negative goodwill is charged to income (expenses) when incurred.

(b) Cash Equivalents
Cash equivalents are short-term investments that are readily convertible into cash andexposed to insignificant risk of changes in value. All of cash equivalents mature or becomedue within three months of the date of acquisition.

(c) Short-term Securities and Investment Securities
The Group classifies their securities as held-to-maturity debt securities oravailable-for-sale securities, depending on management’s intent.

(Held-to maturity debt securities)
Held-to-maturity debt securities are stated at amortized cost.

(Available-for-sale securities)
Marketable available-for-sale securities are stated at fair value, with unrealized gains

Basis of Presenting Consolidated 19
Financial Statements

and losses, net of applicable taxes, and reported in a separate component of shareholders’equity. The cost of available-for-sale securities sold is determined based on the moving
average method.
None-marketable available-for-sale securities are stated at cost determined by the moving
average method.
The securities whose fair values at the year-end are less than 50% of the acquisition costs,
or are more than 50% but less than 70% and deemed to be unrecoverable, the impairment
losses are recognized.

(d) Inventories
Merchandises are stated at cost determined by the specific identification method, or if
lower, the net realizable value.
Raw materials, finished goods and work in process are stated at cost determined by theperiodic average method, or if lower, the net realizable value.
Supplies are stated at cost determined by the last purchase cost method, or if lower, thenet realizable value.

(e) Depreciation
Depreciation is principally computed under the straight-line method for buildings andunder the declining-balance method for other assets, using rates based on the estimateduseful lives of the assets. The useful lives are principally ranging from 7 to 60 years forbuildings and structures, and 4 to 17 years for machinery, equipment and vehicles.
Amortization of intangible assets is computed by the straight-line method.

(f) Liabilities for Retirement Benefits
Liabilities for retirement benefits are recorded for employees’ pension and severance
payments based on the projected benefit obligations and the fair value of plan assets atthe balance sheet date.
Effective from the year ended March 31, 2010, the Company and its domestic consolidated
subsidiaries have adopted “Partial Amendments to Accounting Standard for Retirement
Benefits (Part 3)” (Accounting Standard Board of Japan (“ASBJ”) Statement No. 19 issued
on July 31, 2008).

(g) Allowance for Doubtful Accounts
The allowance for doubtful accounts is provided against potential losses on collections at
an amount determined using a historical bad debt loss ratio and an amount individuallyestimated on the collectability of receivables that are expected to be uncollectible due tobad financial condition or insolvency of the debtor.

Basis of Presenting Consolidated 20
Financial Statements(h) Asset Retirement Obligations
On March 31, 2008, the Accounting Standards Board of Japan (“ASBJ”) issued 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, asset retirement obligations are defined as a statutory orsimilar obligation with regard to the removal of tangible fixed assets and is incurred whentangible fixed assets are acquired, constructed, developed or used in an ordinary way. The
asset retirement obligation is recognized as the sum of the discounted cash flow required
for the future asset retirement and is recorded in the period in which the obligation isincurred if a reasonable estimate can be made. Effective April 1, 2010, the Company
adopted this accounting standard. The effect of applying this accounting standard was todecrease operating income and income before income taxes and minority interests for theyear ended March 31, 2011 by ¥21 million ($249 thousand) and ¥113 million ($1,363
thousand), respectively.

(i) Revenue from Construction Contracts
Revenues from construction contracts and the related costs are recorded under thepercentage-of-completion method, if the outcome of the construction contract can be
estimated reliably. Otherwise, the completed-contract method is applied if the outcome
cannot be reliably estimated.
Effective from the year ended March 31, 2010, the Company and its domestic consolidated
subsidiaries have adopted the “Accounting Standard for Construction Contracts” (ASBJ
Statement No. 15, issued on December 27, 2007) and “Guidance on Accounting Standard
for Construction Contracts” (ASBJ Guidance No. 18, issued on December 27, 2007).

(j) Leases
Finance lease transactions, except for immaterial or short-term finance leases
transactions which are accounted for as operating leases, are capitalized to recognize
lease assets and lease obligations in the balance sheet. Such capitalized lease assets are
depreciated by the straight-line method over the lease terms assuming no residual value.
As permitted, finance leases which commenced prior to April 1, 2008 and have beenaccounted for as operating leases, have been accounted for as operating leases with thenote of certain “as if capitalized” information.

(k) Income Taxes
The asset and liability approach is used to recognize deferred tax assets and liabilities forthe expected future tax consequences of temporary differences between the carrying
amount and tax bases of assets and liabilities, and operating loss carry-forwards.

Basis of Presenting Consolidated 21
Financial Statements(l) Derivatives
All derivatives, except for certain foreign exchange forward contracts and interest rate
swap contracts described below, are stated at fair value. If derivative financial
instruments are used as hedges and meet certain hedging criteria, the Group defers
recognition of gains or losses resulting from a change in the market value of the derivative
financial instruments until the related gains or losses on the hedged items are recognized.
Accounts payable hedged by foreign exchange contracts which meet certain hedging
criteria are translated at their contracted rates. Interest rate swaps which meet certain
hedging criteria are accounted for as if the interest rate applied to the swaps hadoriginally applied to the underlying debt.

(m) Per Share Information
Basic net income per share is computed based on net income available to common
stockholders and the weighted average number of shares of common stock outstanding
during each period. The average numbers of shares used in the computations are 39,732
thousand shares for 2011 and 39,733 thousand shares for 2010.
Diluted net income per share is not disclosed because the Company had no potentiallydilutive shares outstanding at these balance sheet dates.
Cash dividends per share shown in the statements of income are the amounts applicableto the respective years.

(n) Presentation of Comprehensive Income
On June 30, 2010, the ASBJ issued ASBJ Statement No. 25 “Accounting Standard for
Presentation of Comprehensive Income”. This standard requires the entities to present
comprehensive income which refers to the change in net assets in an entity’s financial
statements for a period, other than those changes resulting from direct transactions withequity holders in the entity’s net assets in either of a format composed of the statement ofincome that presents the calculation of net income and the statement of comprehensive
income that presents the calculation of comprehensive income (two-statement format) or aformat using one statement (statement of income and comprehensive income) that
presents the calculation both of net income and comprehensive income (one-statement
format). The calculation of comprehensive income for consolidated financial statements
shall present net income before adjusting minority interests and additions or deductionsof other comprehensive income consisting of unrealized holding gain or loss onavailable-for-sale securities and foreign currency translation adjustments. Effective
March 31, 2011, the Company adopted this standard.

Basis of Presenting Consolidated 22
Financial Statements

3. Securities
The following is a summary of held-to-maturity securities and available-for-sale securities
at March 31, 2011 and 2010:
Millions of yen

March 31, 2011
Debt securities,
whose fair value exceeds
carrying amountwhose fair value does notexceed carrying amount
Total

Carrying
amount¥Held-to-maturity securities
Gross
Gross
unrealized
unrealized
gains
losses

15

¥ 0

622
¥ 637

－
¥ 0

¥
¥

Fair value

－

¥

15

(0)
(0)

622
¥ 637

There were no held-to-maturity securities at March 31, 2010.

Thousands of U.S. dollars

March 31, 2011
Debt securities,
whose fair value exceeds
carrying amountwhose fair value does notexceed carrying amount
Total

Carrying
amount$Held-to-maturity securities
Gross
Gross
unrealized
unrealized
gains
losses

180

$ 0

－

7,478
$ 7,658

－
$ 0

$ (0)
$ (0)

Fair value

$

180

7,478
$ 7,658

Millions of yen

March 31, 2011Market value available:
Equity securities
Other securities
SubtotalMarket value not available:
Total

Cost

¥ 3,470134¥ 3,604

Available-for-sale securities
Gross
Gross
unrealized
unrealized
gains
losses

¥ 907
0
¥ 907

¥
¥

(287)
(2)
(289)

Book Value(Estimatedfair value)¥ 4,090132¥ 4,222726¥ 4,948

Basis of Presenting Consolidated 23
Financial Statements

Millions of yen

March 31, 2010
Market value available:
Equity securities
Other securities
SubtotalMarket value not available:
Total

Available-for-sale securities
Gross
Gross
Book Value
unrealized
unrealized(Estimated fair
gains
lossesvalue)

Cost¥ 2,948116¥ 3,064

¥ 800
－
¥ 800

¥
¥

(295)
(9)
(304)

¥ 3,453107¥ 3,560540¥ 4,100

Thousands of U.S. dollars

March 31, 2011Market value available:
Equity securities
Other securities
SubtotalMarket value not available:
Total

Available-for-sale securities
Gross
Gross
Book Value
unrealized
unrealized(Estimated fair
gains
lossesvalue)

Cost$ 41,729
1,615$ 43,344$ 10,9041$ 10,905$ (3,444)(32)$ (3,476)$ 49,189
1,584$ 50,773
8,734$ 59,507

4. Short-term Bank Loans and Long-term Debts
The annual average interest rate applicable to short-term bank loans at March 31, 2011
and 2010 was 0.68% and 0.75% respectively.
Long-term debts at March 31, 2011 and 2010 consisted of the following:
Millions of yen

Bonds
Long-term bank loans
Lease obligations
Other
Total

Thousands of
U.S. dollars

2011¥ 1,6292010¥ 2,1232011$ 19,591

5,832
374
2,432
¥ 10,267

2,992
566
2,647
¥ 8,328

70,133
4,505
29,243$ 123,472

Aggregate annual maturities of long-term debts subsequent to March 31, 2011 were as
follows:

Basis of Presenting Consolidated 24
Financial Statements

Thousands ofYear ending March 31
2012
2013
2014
2015
2016 and thereafter
Total

Millions of yen

U.S. dollars¥$ 32,103
27,382
22,536
16,36625,085$123,472

¥

2,669
2,277
1,874
1,361
2,086
10,267The Company renewed an agreement with a syndicate of 6 banks to set up a commitmentline by multiple finance institutions. The unexecuted balance of lending commitments of
the Company at March 31, 2011 and 2010 was as follows:

Total lending commitments
Less amounts currently executed
Unexecuted balance2011¥ 5,000¥ 5,000

Millions of yen

Thousands of
U.S. dollars

2010¥ 5,000¥ 5,0002011$ 60,132$ 60,132

5. Pledged Assets
The following assets were pledged as collateral for the following borrowings at March 31,
2011 and 2010:
Millions of yen

Land
Buildings
Investment securities
Total

Short-term bank loans
Current portion of long-term bank loans
Long-term bank loans
Other
Total

2011
¥ 5,755
3,732
622¥ 10,109

2011
¥ 100
778
387
3,427
¥ 4,6922010

Thousands of
U.S. dollars

3,896¥ 9,650

2011$ 69,20944,8897,478$ 121,576

Millions of yen

Thousands of
U.S. dollars

2010
¥ 100
1,048
1,165
3,671
¥ 5,9842011$ 1,203
9,363
4,655
41,210$ 56,431¥ 5,754

Basis of Presenting Consolidated 25
Financial Statements

6. Liabilities for Retirement Benefits
The following table sets forth the changes in benefit obligations, plan assets and funded
status of the Group at March 31, 2011 and 2010:

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
Liabilities for Retirement Benefits

Millions of yen

Thousands of
U.S. dollars

2011¥ 6,182
3,374

2010¥ 6,555
3,447

2011$ 74,350
40,571

2,808
40
(659)

3,108
59
(763)

33,779479(7,928)¥ 2,189¥ 2,404$ 26,330

Severance and pension costs of the Group included the following components for the years
ended March 31, 2011 and 2010:

Service cost
Interest cost
Expected return on plan assets
Amortization:
Prior service cost
Actuarial losses
OthersNet periodic benefit cost

Millions of yen

Thousands of
U.S. dollars

2011
¥ 342
129
( 69)

2010
¥ 345
132
( 62)

2011
$ 4,113
1,556( 826)

( 20)
173
22
¥ 577

( 20)
300
22
¥ 717

( 240)
2,077
257$ 6,937

Assumptions used in the accounting for the defined benefit plans for the years ended
March 31, 2011 and 2010 were as follows:
2011
2010
Method of attributing benefit to periods ofstraight–line basis
straight–line basis
service
Discount rate
2.0 %
2.0 %
Long-term rate of return on plan assets
2.0 %
2.0 %
Amortization period for prior service cost
10 years
10 years
Amortization period for actuarial losses
10 years
10 yearsBasis of Presenting Consolidated 26
Financial Statements

7. Contingencies
At March 31, 2011 and 2010, the Group was contingently liable as follows:

As a guarantor of indebtedness of :Affiliated companies
Others
Total

Millions of yen

Thousands of
U.S. dollars

2011

2010

2011

¥ 3,99141¥ 4,032¥ 4,27655¥ 4,331$ 47,996
498$ 48,494

8. Cash and cash equivalents
Cash and cash equivalents at March 31, 2011 and 2010 were as follows:

Cash and deposits
Short-term securities
Less-Time deposits with original maturities
more than three months
Cash and cash equivalents

Millions of yen

Thousands of
U.S. dollars

2011¥ 5,6092010¥ 5,7232011$ 67,463

7,949

5,345

95,598(500)―(6,014)¥ 13,058¥ 11,068$ 157,047

9. Leases
The Group leases certain machinery and equipment, and other assets. Total lease
payments under these leases were ¥ 226 million ($ 2,716 thousand) and ¥ 285 million forthe years ended March 31, 2011 and 2010, 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, 2011 and 2010, were as follows:

2011
Acquisition costs
Accumulated Depreciation
Net leased property

MachineryandEquipment
¥ 425
334
¥ 91

Millions of yen

Other
219
190
¥
29

¥

Total
644
524
¥ 120
¥

Basis of Presenting Consolidated 27
Financial Statements

2010
Acquisition costs
Accumulated Depreciation
Net leased property

MachineryandEquipment
¥ 900
630
¥ 270

2011
Acquisition costs
Accumulated Depreciation
Net leased property

MachineryandEquipment$ 5,108
4,017$ 1,091

Millions of yen

Other
¥
274
192
¥
82

Total
¥ 1,174822¥
352
Thousands of U.S. dollars

Other$ 2,640
2,290
$ 350

$
$

Total
7,748
6,307
1,441

Future minimum lease payments under finance leases at March 31, 2011 and 2010 wereas follows:
Thousands ofMillions of yen

Due within one year
Due after one year
Total

2011
¥ 95
25
¥ 120

2010
¥ 232
120
¥ 352

U.S. dollars

2011$ 1,143298$ 1,441

Depreciation expense, which is not reflected in the accompanying consolidated statements
of income, computed by the straight-line method, would have been ¥ 226 million ($2,716
thousand) for the year ended March 31, 2011.

10. Financial Instruments and Related Disclosures
On March 10, 2008, the ASBJ revised ASBJ Statement No.10 “Accounting Standard for
Financial Instruments” and issued ASBJ Guidance No. 19 “Guidance on Disclosuresabout Financial Instruments”.
Effective from the year ended March 31, 2010, the Company applied the revised
accounting standard and the new guidance.
(1) Policy for financial instruments
The Group manages funds by utilizing short-term deposits, etc. The Group raises
money by borrowing from financial institutions and by issuing bonds. Derivatives areused, not for speculative nor trading purpose, but to hedge the exposure to interest
rate risks associated with certain interest payments on borrowings.

Basis of Presenting Consolidated 28
Financial Statements(2) Types of financial instruments and related risk, and risk management for financial
instruments
Trade notes and accounts receivable are exposed to credit risk in relation to customers.
In order to monitor credit risk, the Group manages, according to the credit
management guideline of the Group, the due date and the balance of operatingreceivables from customers.
Investment securities consist of mainly held-to-maturity securities and equity
securities issued by the Group’s business partners and these securities are exposed
to market risk.
The Group periodically monitors the fair value of such equity securities, which isreported to the board meeting.
Trade notes and accounts payable have payment due dates mainly within one year.
Trade notes and accounts payable denominated in foreign currencies are exposed tothe market risk of fluctuation in foreign currency exchange rate. Such risk is hedged
principally by forward foreign currency contract.
Short-term bank loans are raised mainly in connection with business activities andlong-term bank loan and bonds payable, which are due mainly within five years, areraised principally for the purpose of making capital investments.
Long-term debts with variable interest rates are exposed to interest rate fluctuation
risk, so the Group enters into interest rate swap transactions to manage such interest
rate exposure.
Derivatives are managed in accordance with policies and procedures for risk
assessment (see Note 12 “Derivatives”) and also the Group enters into derivativetransactions only with financially stable financial institutions to reduce institutions’credit risk.
Based on a report from the Company and consolidated subsidiaries, the Groupprepares and updates its cash flow plans on a monthly basis to manage liquidity risk.

Basis of Presenting Consolidated 29
Financial Statements(3) Supplementary explanation of the estimated fair value of financial instruments
With regard to the below mentioned contract prices etc. of derivatives, the contract prices
themselves do not present the market risk on the derivative transactions.
Summarized in the table below are the carrying amounts and the estimated fair value offinancial instruments outstanding at March 31, 2011 and 2010. Financial instruments forwhich it is extremely difficult to determine the fair value are not included in the tablebelow.
Millions of yen

March 31, 2011
Cash and deposits
Trade notes and accounts receivable
Short-term-securities
Investment securities
Trade notes and accounts payable
Short-term bank loans
Long-term bank loans
Bonds payable
Long-term deposits
Derivatives

Carrying
amount¥ 5,60921,178
7,949
4,859(12,014)(2,620)(5,832)(1,629)(2,441)─Fair value¥ 5,60921,178
7,949
4,859(12,014)(2,620)(5,792)(1,644)(2,552)─

Unrecognizedgain/loss
¥ ─
─
─
0
─
─
40
(15)
(111)
─
Millions of yen

March 31, 2010
Cash and deposits
Trade notes and accounts receivable
Short-term-securities
Investment securities
Trade notes and accounts payable
Short-term bank loans
Long-term bank loans
Bonds payable
Long-term deposits
Derivatives

Carrying
account¥ 5,723
20,296
5,345
3,560(11,171)(2,620)(2,992)(2,123)(2,666)
─Fair value¥ 5,723
20,296
5,345
3,560(11,171)(2,620)(2,996)(2,141)(2,777)
─Unrecognized
gain/loss
¥ ─
─
─
─
─
─
(4)
(18)
(111)
─

Basis of Presenting Consolidated 30
Financial Statements

Thousands of U.S. dollars

March 31, 2011
Cash and deposits
Trade notes and accounts receivable
Short-term-securities
Investment securities
Trade notes and accounts payable
Short-term bank loans
Long-term bank loans
Bonds payable
Long-term deposits
Derivatives

Carrying
account$ 67,463
254,692
95,59858,431(144,487)(31,509)(70,133)(19,591)(29,354)
─Fair value$ 67,463
254,692
95,59858,431(144,487)(31,509)(69,658)(19,772)(30,692)─

Unrecognized
gain/loss
$ ─
─
─
0
―
─
475
(181)
(1,338)─Methods to determine the estimated fair value of financial instruments and other mattersrelated to securities and derivative transactions:(a) “Cash and deposits”, “Trade notes and accounts receivable” and “Short-term securities”
Since these are settled in a short period of time, their carrying amounts approximate fairvalue.
(b) “Investment securities”
The fair values of marketable securities are based on quoted market prices. The fairvalues of debt securities are based on quotes provided by the financial institutions. For
information on securities classified by holding purpose, please refer to Note 3 “Securities”.
(c) “Trade notes and accounts payable” and “Short-term bank loans”
Since these are settled in a short period of time, their carrying amounts approximate fairvalue.
(d) “Long-term bank loans”
The fair value of long-term bank loans is estimated based on present value of the total ofprincipal and interest discounted by an assumed interest rate on an equivalent new loan.
(e) “Bonds payable”
The fair value of bonds payable is estimated based on present value of the total ofprincipal and interest discounted by an assumed interest rate based on debt’s maturity
and credit risk.
(f) “Long-term deposit”
The fair value of long-term deposit is estimated based on present value of the total ofprincipal and interest discounted by an assumed interest rate, if possible, based on debt’s
maturity and credit risk.

Basis of Presenting Consolidated 31
Financial Statements(g) “Derivatives”
Please refer to Note 12 “Derivatives”.
Financial instruments for which it is extremely difficult to determine the fair value atMarch 31, 2011 and 2010 consist of the following:

Non-listed equity securities
Long-term deposit

Millions of yen

Thousands of
U.S. dollars

2011
¥ 726

2010
¥ 540

2011
$ 8,734

1,014

1,014

12,200

The annual maturities of financial assets and investment securities with contractual
maturities subsequent to March 31, 2011 were as follows:
Millions of yen

March 31, 2011
Cash and deposits
Trade notes and accounts receivable
Short-term securities
Investment securities
Total

Due after one y

Due after fiveDue in one year

ear throughyears throughor less

five years

ten years

¥

¥

5,609
21,1787,949
─¥ 34,736

¥

─
─
─
622
622

¥

¥

─
─
─
15
15

Thousands of U.S. dollars

March 31, 2011
Cash and cash equivalents
Trade notes and accounts receivable
Short-term securities
Investment securities
Total

Due after one y

Due after fiveDue in one year

ear throughyears throughor less

five years

ten years

67,463
254,692
95,598
─
$ 417,753

$

$

$

─
─
─
7,478
7,478

$

$

─
─
─
180
180

Basis of Presenting Consolidated 32
Financial Statements

11. Investment Property
On November 28, 2008, the ASBJ issued ASBJ Statement No. 20 “Accounting Standard forDisclosures about Fair Value of Investment and Rental Property” and ASBJ Guidance No. 23“Guidance on Accounting Standard for Disclosures about Fair Value of Investment and Rental
Property”. Effective from the year ended March 31, 2010, the Company applied the new
accounting standard and the new guidance.
The company and certain subsidiaries hold some rental properties including land in Tokyoand other areas (“investment properties”). The amounts of net income related toinvestment properties (rental income is recognized in operating revenue and rental
expense is principally charged to operating expenses) and loss on impairment ofinvestment properties were ¥645 million ($7,754 thousand) and ¥5 million ($62
thousand) for the year ended March 31, 2011 and ¥596 million and ¥3 million for the year
ended March 31, 2010, respectively.
The carrying accounts, changes in such balances and market prices of investment
properties were as follows:
Millions of yen

Carrying amount

Fair value

Increase/
April 1, 2010

(decrease)

March 31, 2011

March 31, 2011

¥ 9,057¥ 476¥ 9,533¥ 12,793

Millions of yen

Carrying amount

Fair value

Increase/
April 1, 2009

(decrease)

March 31, 2010

March 31, 2010

¥ 9,070¥ (13)¥ 9,057¥ 12,515

Thousands of U.S. dollars

Carrying amount

Fair value

Increase/
April 1, 2010

(decrease)

March 31, 2011

March 31, 2011

$ 108,917$ 5,739$ 114,656$ 153,849(1) Carrying amount is net of accumulated depreciation and accumulated impairment
losses, if any.
(2) Increase during the year ended March 31, 2011 and 2010 was principally attributed tothe change in holding purpose in an amount of ¥691 million ($8,310 thousand) and¥221 million, respectively. Decrease during the year ended March 31, 2011 and 2010
was principally attributed to depreciation in an amount of ¥230 million ($2,769
thousand) and ¥241 million.
(3) Fair value at March 31, 2011 and 2010 was principally measured based on the real estateappraisal assessed by the external real estate appraiser.

Basis of Presenting Consolidated 33
Financial Statements

12. Derivatives
Derivative financial instruments are utilized by the Company principally to reduce
interest rate risk and foreign exchange rate risk. The Company has established a control
environment which includes policies and procedures for risk assessment and for theapproval, reporting and monitoring of transactions involving derivative financial
instruments. The Company does not hold or issue derivative financial instruments for
trading purposes.
The notional amounts and the estimated fair value of derivative financial instruments, forwhich deferred hedge accounting has been applied were as follows:
Millions of yen

March 31, 2011

Hedged item

Contract
amountContract
amount due
after oneyear

Long-term debt

¥ 2,801

¥

Fair
value

Interest rate swap:(Fixed rate payment/floating rate receipt)

1,865

Note
Millions of yen

March 31, 2010

Hedged item

Contract
amountContract
amount due
after one
year

Fair
value

Interest rate swap:(Fixed rate payment/floating rate receipt)

Long-term debt

¥ 872

¥

233

Note

Thousands of U.S. dollars

March 31, 2011

Hedged item

Contract
amountContract
amount due
after oneyear

$ 33,686$ 22,429

Fair
value

Interest rate swap:(Fixed rate payment/floating rate receipt)

Long-term debt

NoteFair value of swap contracts assigned for Long-term debt is included in the fair value ofLong-term debt disclosed at Note 10 “Financial Instruments and Related Disclosures”.

Basis of Presenting Consolidated 34
Financial Statements

13. Shareholders’ Equity
Changes in common stock and additional paid-in capital have resulted from the following:
Millions of yen

Balance at March 31, 2009Retirement of stock during 2010
Balance at March 31, 2010Retirement of stock during 2011
Balance at March 31, 2011

Number of
Shares42,737,668－
42,737,668－
42,737,668

CommonStock11,900－11,900－11,900CapitalSurplus11,719－11,719－11,719Thousands of U.S. dollars
CommonBalance at March 31, 2010Retirement of stock during 2011
Balance at March 31, 2011

CapitalStocksurplus143,113－
143,113140,935－
140,935

The Company adopted 100 shares of common stock as “unit amount of shares”. A holder ofshares representing less than one unit cannot exercise any voting rights with respect tosuch shares. However, the holder is entitled to receive dividends and other distributions. A
holder of a fraction of a unit may at any time request the Company to purchase suchshares at the prevailing market price. Shares so purchased must be sold or otherwisetransferred to a third party within a reasonable time.

14. Research and Development
Research and development expenditure which is included in “Selling, general andadministrative expenses” was ¥949 million ($11,413 thousand) and ¥1,074 million for theyears ended March 31, 2011 and 2010, respectively.
15. Income Taxes
The Company and its domestic subsidiaries are subject to several taxes based on income,which in the aggregate resulted in a statutory tax rate of approximately 40.6% for theyears ended March 31, 2011 and 2010, respectively. Foreign subsidiaries are subject toincome taxes of the countries in which they operate.
The reconciliation between the statutory tax rate and the effective income tax rate is notdisclosed for the year ended March 31, 2010 because the Group posted net loss in 2010.

Basis of Presenting Consolidated 35
Financial Statements

The tax effects of significant temporary differences which resulted in deferred tax assets
and liabilities at March 31, 2011 and 2010 were as follows:
Millions of yen

Thousands of
U.S. dollars

2010

2011

366
950
592
303

$ 5,158
10,612
5,753
3,640

530
2,033
910
5,565
(1,650)
3,915

710
1,975
766
5,662
(1,817)
3,845

6,375
24,447
10,941
66,926(19,839)47,087(1,628)(251)(1,502)(1,653)(200)(1,502)(19,583)(3,015)(18,064)(3,381)¥ 534(3,355)¥ 490(40,662)$ 6,4252011
Deferred tax assets:
Accrued expenses
Liabilities for retirement benefits
Depreciation
Fixed assets – elimination ofintercompany profits
Allowance for doubtful accounts
Net operating loss carry-forwards
Other
Total
Less valuation allowance
Net deferred tax assets
Deferred tax liabilities:
Deferred gain on sales of fixed assets forincome tax purposes
Unrealized gain on investment securities
Unrealized gain on subsidiaries’ fixed
assets by revaluation at the beginningof consolidation
Total
Net deferred tax assets

¥

429
882
478
303

¥

The reconciliation between the statutory tax rate and the effective income tax rate for the year
ended March 31, 2011 was as follows:
Information for the year ended March 31, 2010 was not disclosed because the Group
posted net loss in 2010.

Statutory tax rate
Non-deductible expenses for income tax purpose
Non-taxable dividend income
Inhabitant per capita tax
Change in valuation allowance
Amortization of negative goodwill
Equity in earnings of affiliated companies
Other
Effective tax rate

201140.64%
2.57(1.43)
7.25(16.80)(13.76)1.34
0.84
20.65%

Basis of Presenting Consolidated 36
Financial Statements

16. Comprehensive Income
Total comprehensive income for the year ended March 31, 2010 was as follows:
Millions of yen
Total comprehensive income attributable to:
Owners of the Company¥ (2,054)
Minority interests－
Total comprehensive income¥ (2,054)
Other comprehensive income for the year ended March 31, 2010 consisted of the following:
Millions of yen
Other comprehensive income:Unrealized gain on available-for-sale securities¥ 271
Foreign currency translation adjustments
98
Share of other comprehensive income in affiliates
3
Total other comprehensive income¥ 372

17. Segment Information
In March 2008, the ASBJ revised ASBJ Statement No. 17 “Accounting Standard forDisclosures about Segments of an Enterprise and Related information” and issued
ASBJ Guidance No. 20 “Guidance on the Accounting Standard for Disclosures about
Segments of an Enterprise and Related information”. Under the standard andguidance, an entity is required to report financial and descriptive information about
its reportable segments. Reportable segments are operating segments or aggregationsof operating segments that meet specified criteria. Operating segments arecomponents of an entity about which separate financial information is available andsuch information is evaluated regularly by the chief operating decision maker in
deciding how to allocate resources and in assessing performance. Generally, segment
information is required to be reported on the same basis as is used internally forevaluating operating segment performance and deciding how to allocate resources tooperating 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 also disclosed hereunder as required.
a. Description of reportable segments
The Group’s reportable segments are those for which separately financial information
is available and regular evaluation by the Board of Directors is being performed inorder to decide how resources are allocated among the Group. The Group conducts
several types of businesses including specialty truck business, environmental
equipment and systems and real estate rental business. The Company and its
consolidated subsidiaries are engaged in each business as an independent
management unit. The Group consists of three reportable segments, which are“Specialty truck business” (Industry A), “Environmental equipment and systems
business” (Industry B) and “Real estate rental business” (Industry C). Industry A

Basis of Presenting Consolidated 37
Financial Statements

manufactures and distributes specialty trucks such as dump trucks, tailgate lifters,tank trucks, refuse trucks, trailers, etc. Industry B manufactures and distributes
recycle facilities, including maintenance and consignment business. Industry C
manufactures multistory parking equipment and offers operating services for toll
parking and real estate rental services.
b. Methods of measurement for the amounts of sales, profit (loss), assets, liabilities
and other items for each reportable segment
The accounting policies of each reportable segment are consistent to those disclosed in
Note 2, “Summary of Significant Accounting Policies”. Intersegment sales or transfers
are based on the market prices.
c.

Information about sales, profit (loss), assets, liabilities and other items for theyears ended March 31, 2011 and 2010 is as follows:
Millions of yen
Reportable segments

2011
Net sales:
External customers
Intersegment sales or transfers
Total

IndustryA

Industry Industry
BC¥ 45,643¥7,369¥4,674

30

Reconciliations

Consolidated(Note 1)

(Note 2)

¥ 57,686－¥ 57,686

472

475

(475)

－

Total

45,646

7,369

5,146

58,161(475)

57,686

Segment profit (loss)

(674)

1,297

861

1,484

(289)

1,195

Segment assets

53,376

4,184

11,76069,32018,79988,119

1,494

78

288

1,860

－

1,860

649

0

187

836

－

836

Other items:
Depreciation
Increase in tangible
intangible fixed assetsandBasis of Presenting Consolidated 38
Financial Statements

Millions of yen
Reportable segments
IndustryA

2010
Net sales:
External customers

Industry Industry
BC¥ 40,263 ¥8,312

Intersegment sales or transfers

Total

Reconciliations

Consolidated(Note 1)

(Note 2)

¥5,496¥ 54,071－¥ 54,071

1

0

457

458

(458)

－

40,264

8,312

5,953

54,529(458)

54,071

Segment profit (loss)(4,305)

1,280

845

(2,180)(392)(2,572)

Segment assets

54,761

4,262

11,91470,937

14,361

85,298

1,503

99

309

1,911

－

1,911

2,512

209

83

2,804

－

2,804

Reconciliations

Consolidated(Note 1)

(Note 2)

Total

Other items:
Depreciation
Increase in tangible
intangible fixed assets

andThousands of U.S. dollars
Reportable segments
IndustryA

2011
Net sales:

Industry Industry
B
C

Total

$ 548,920 $ 88,626 $ 56,216 $ 693,762

External customers－$ 693,762

44

1

5,672

5,717

(5,717)－548,964

88,62761,888699,479(5,717)693,762

Segment profit (loss)(8,103)

15,60010,354

17,851(3,477)

14,374

Segment assets

641,927

50,325

141,425

833,677

226,077

1,059,754

17,965943

3,458

22,366－22,366

7,809

6

2,245

10,060－10,060Intersegment sales or transfers
Total

Other items:
Depreciation
Increase in tangible
intangible fixed assets

1.

2.

and

Reconciliations of segment profit (loss) in an amount of ¥(289) million ($(3,477)
thousand) which consists of elimination of intersegment transactions in an amount of¥14 million ($172 thousand) and corporate expenses which are not allocated to eachreportable segment in an amount of ¥(303) million ($(3,649) thousand). Corporate
expenses are mainly general administrative expenses not attributable to any otherreportable segments.
Reconciliations of segment assets are surplus fund (cash and deposits and securities)
and long-term investment fund (investment securities) of the Company.
Segment profit (loss) is reconciled with operating income in the consolidated
statements of income.

Basis of Presenting Consolidated 39
Financial Statements

Information about impairment loss on fixed assets by reportable segment
Millions of yen
Reportable segments
2011
Impairment loss

IndustryA¥ 5

Industry Industry
B
C
¥ －

¥ －

Total

Reconciliations Consolidated

¥ －

¥ 5

¥ 5

Thousands of U.S. dollars
Reportable segments
2011
Impairment loss

Industry Industry Industry
A
B
C

Total

Reconciliations

Consolidated

$ －

$ 62

$ －

$ 62

$ 62

$ －

Information about amortization of goodwill and unamortized balance
Millions of yen
Reportable segments
2011

Industry Industry Industry
A
B
C

Total

Reconciliations

Consolidated

Goodwill:
¥ －

¥ 11

¥ 4

¥ 15

¥ －

¥ 15

－

－

－

－

－

－

Amortization for the year

377

－

－

377

－

377

Unamortized balance

753

－

－

753

－

753

Amortization for the year
Unamortized balance
Negative goodwill:

Thousands of U.S. dollars
Reportable segments
2011

Industry Industry Industry
A
B
C

Total

Reconciliations

Consolidated

$ －

$ 136

$ 50

$ 186

$ －

$ 186

－

－

－

－

－

－

4,528

－

－

4,528

－

4,528

9,056

－

－

9,056

－

9,056

Goodwill:
Amortization for the year
Unamortized balance
Negative goodwill:
Amortization for the year
Unamortized balanceBasis of Presenting Consolidated 40
Financial Statements

Industry Segment Information for the year ended March 31, 2010 which was reported under
the previous accounting standard was as follows:a.

Sales and Operating Income
Millions of yen

2010

Industry A

Industry B

Industry C

Eliminations/
Corporate

Consolidated

Sales to customers¥ 40,263¥ 8,312¥ 5,496¥－¥ 54,071

1

0

457

(458)

－

40,264

8,312

5,953

(458)

54,071

44,914

7,059

5,132

(462)

56,643¥ (4,650)¥ 1,253¥ 821

4¥ (2,572)

Intersegment
Total sales
Operatingexpenses
Operating incomeb.

¥

Assets, Depreciation and Capital Expenditures
Millions of yen

Eliminations/Corporate

2010

Industry A

Industry B

Industry C

Assets¥54,761¥ 4,263¥11,914¥ 14,360¥ 85,298

1,503

99

309

－

1,911

2,512

209

83

－

2,804

Depreciation
Capitalexpenditure

Consolidated

Notes: Industry A consists of specialty truck, etc.
Industry B consists of environmental equipment and systems.
Industry C consists of real estate rental.
Corporate assets consist primarily of cash and cash equivalents, investment inand advances to affiliates, investments in securities and the corporate
headquarters assets.

18. Subsequent Event
The following appropriations of the Company’s retained earnings in respect of the year
ended March 31, 2011 were as proposed by the Board of Directors and approved by theshareholders at the annual general meeting held on June 28, 2011.

Appropriations
Cash dividends of ¥4 ($0.05) per share

Millions of yen

Thousands of
U.S. dollars¥$ 1,911159

Report of Independent Certified 41
Public Accountants

INDEPENDENT AUDITORS’ REPORTTo the Shareholders andBoard of Directors of
Kyokuto Kaihatsu Kogyo Co., Ltd.
We have audited the accompanying consolidated balance sheets of Kyokuto Kaihatsu Co.,
Ltd. (the “Company”) and its consolidated subsidiaries as of March 31, 2010 and 2011,
and the related consolidated statements of income, comprehensive income, changes inshareholders’ equity and cash flows for each of the years then ended in the two-year period
ended March 31, 2011. These consolidated financial statements are the responsibility of
the Company’s management. Our responsibility is to independently express an opinion onthese consolidated financial statements based on our audits.
We conducted our audits in accordance with auditing standards generally accepted inJapan. Those standards require that we plan and perform the audit to obtain reasonableassurance about whether the financial statements are free of material misstatement. An
audit includes examining, on a test basis, evidence supporting the amounts and disclosuresin the financial statements. An audit also includes assessing the accounting principles
used and significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audits provide a reasonable basis forour opinion.
In our opinion, the consolidated financial statements referred to above present fairly, in allmaterial respects, the consolidated financial position of Kyokuto Kaihatsu Kogyo Co., Ltd.
and its consolidated subsidiaries as of March 31, 2010 and 2011, and the consolidated
results of their operations and their cash flows for the years then ended in conformity withaccounting principles generally accepted in Japan.
Without qualifying our opinion, we draw attention the following:
As discussed in Note 2 (h) to consolidated statements, effective April 1, 2010, theCompany and its domestic consolidated subsidiaries have adopted the new accounting
standard, “Accounting standard for Asset Retirement Obligations”.
The accompanying consolidated financial statements as of and for the year ended March 31,
2011 have been translated into United States dollars solely for the convenience of thereader. 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 Corporation
Osaka, Japan
June 10, 2011

Corporate Information

CORPORATE INFORMATION
Kyokuto Kaihatsu Kogyo Co., Ltd.
Established: June,1955
Paid-in Capital: ¥11,900 million (at March 31, 2011)
Number of Shares Issued: 42,737,668shares (at March 31, 2011)
Number of Employees: consolidated 2,169 non-consolidated 823 (at March 31, 2011)
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 78,158 ㎡, 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

42

Board of Directors and Statutory Auditors

BOARD OF DIRECTORS AND STATUTORY AUDITORS
Takaaki Fudetani,
Representative Director, President, CEO
Kazuyoshi Nakai,
Representative Director, Senior Managing Director,
Senior Executive Officer
Yoshihiro Yasuoka,
Director, Associate Senior Executive Officer
Yoshinori Takashima,
Director, Associate Senior Executive Officer
Norihiro Kumazawa,
Director, Associate Senior Executive Officer
Kazuya Takahashi,
Director, Executive Officer

Ryuichiro Nishikawa,
Masakazu Nishida,
Tokumasa Hayashi,
Harumi Sugimoto,Toshihisa Nakanishi,
Takashi Yoneda,
Takeo Norimitsu,
Noboru Horimoto,Executive Officer
Executive Officer
Executive Officer
Executive Officer
Executive Officer
Executive Officer
Executive Officer
Executive Officer

Tomoki Ueyama,
Taro Okamoto,
Akira Michigami,
Morio Kusunoki,Standing Auditor
AuditorOutside Corporate Auditor
Outside Corporate Auditor

43