April 30, 2010

Summary of Consolidated Financial Results
For the Year Ended March 2010
Name of Company:
Stock Code:
Stock Exchange Listing:
URL:
Representative
Title:
Name:
Contact Person
Title:Name:
Phone:
Date of regular general meeting of shareholders:Date of commencement of dividend payment (tentative):
Date of filing of securities report:

KAGA ELECTRONICS CO., LTD.
8154
Tokyo Stock Exchange, First Section
http://www.taxan.co.jp/
President & COO
Tomohisa Tsukamoto
Senior Managing Director, Finance & Administration Headquarters
Waichiro Shimoyama+81-(0)3-4455-3111
June 29, 2010
June 30, 2010
June 30, 2010

(Yen in millions, rounded down)
1. Financial results for the current fiscal year (April 1, 2009 ‐ March 31, 2010)(1) Result of operations (Consolidated)(Percentage figures represent year on year changes)

Fiscal year ended March 2010

Net sales
MillionYoY
yen Change %239,391(12.5)

Operating income
MillionYoY
yen Change %1,582(29.6)

Ordinary income
MillionYoY
yen Change %1,280(42.0)Net income
MillionYoY
yen Change %(318)-

Fiscal year ended March 2009

273,610

2,249

2,208

(806)

(6.1)

Net income
per share

Fiscal year ended March 2010

Yen
(11.55)

Fiscal year ended March 2009(28.91)(71.1)Net income
per share
fully diluted
Yen

Returnon equity

-

%
(0.7)

-

(1.6)

(68.6)-

Ratio ofordinary income
to assets%

Ratio ofoperating income
to net sales
%

1.1

0.7

1.8

0.8

Note: Equity in losses of affiliates
Fiscal year ended March 2010: 110 million yen
Fiscal year ended March 2009: 3 million yen(2) Financial Position (Consolidated)
Total assets
As of March 31, 2010
As of March 31, 2009
Note: Shareholders’ equity
Fiscal year ended March 2010:
Fiscal year ended March 2009:

Net assets

Million yen
113,962
117,251

Million yen
48,55349,560Equity ratio

Net assets per share
%
41.1
40.7

Yen
1,697.27
1,730.98

46,841 million yen
47,770 million yen(3) Cash flow position (Consolidated)
Net cash providedby (used in)operating activities

Net cash providedby (used in)investing activities

Net cash providedby (used in)financing activities

Cash and cash
equivalents at endof period

Fiscal year ended March 2010

Million yen
5,728

Million yen(3,040)Million yen(2,307)

Million yen
11,797

Fiscal year ended March 2009

5,435

(4,212)(3,407)

11,3681

2. Dividends
Dividends/
AnnualPayout ratio
net assets
aggregate(Consolidated)
End of 1Q End of 2Q End of 3Q End of FY Full year
(Consolidated)amount
Yen
Yen
Yen
Yen
Yen Million yen
%
%
25.00
15.00
40.00
1,115
2.2
15.00
15.00
30.00
827
1.8
Dividend per share

Fiscal year ended March 2009
Fiscal year ended March 2010
Fiscal year ending March 2011
(est.)
Note: The estimated amount of dividend for FY2011 is not yet determined.

3. Forecast for the fiscal year ending March 2011 (Consolidated, April 1, 2010 - March 31, 2011)
Net income
per share
Million yen% Million yen% Million yen% Million yen%
Yen
First half
110,000
(3.4)
400
8.8
600
197.4
100
3.62
Full year
225,000
(6.0)
1,700
7.4
2,100
64.0
1,300
47.11
Note: The percentage figures accompanying net sales, operating income, ordinary income, and net income represent year-on-yearchanges.
Net sales

Operating income

Ordinary income

Net income

4. Others
1. Changes in significant subsidiaries (Changes in specific subsidiaries accompanied by changes in the scope of consolidation):None
2. Changes in accounting principles and procedures, presentation methods and other items in the preparation of the consolidated
financial statements (Presented in the section on Changes to the Basis of Presenting the Consolidated Financial Statements)(a) Changes due to revision of accounting standards: Yes(b) Changes other than in (a): None
Note: See the section of the Basis of Presenting the Consolidated Financial Statements for details. (Page 19)
3. Number of shares outstanding (common stock)(a) Shares outstanding (including treasury stock)
As of March 31, 2010 28,702,118
As of March 31, 2009 28,702,118
1,103,943
As of March 31, 2009
1,105,038(b) Treasury stock
As of March 31, 2010
Note: See the section of the Per-Share Information (Page 22) for details on the basis (number of shares) of calculating consolidated net
income per share.
Non-consolidated Financial Results (For reference)
1. Financial results for the current fiscal year (April 1, 2009 ‐ March 31, 2010)(1) Result of operations (Non-consolidated)(Percentage figures represent year on year changes)
Net sales

Fiscal year ended March 2010
Fiscal year ended March 2009

Million yen
91,291
126,262

Operating income%(27.7)(5.7)

Million yen
110
3,020

Net income
per share%(96.3)(48.9)

Million yen
1,741
4,378

Net income%(60.2)(36.0)

Million yen(760)(4,358)%-Net income
per share
fully diluted

Yen(27.55)(156.14)

Fiscal year ended March 2010
Fiscal year ended March 2009

Ordinary income

Yen-(2) Financial Position (Non-consolidated)
Total assets
As of March 31, 2010
As of March 31, 2009
Note: Shareholders’ equity
Fiscal year ended March 2010:
Fiscal year ended March 2009:

Net assets

Equity ratio

Net assets per share

Million yen
70,870Million yen
32,74446.2

Yen
1,186.49

83,13834,25341.2

1,241.14

32,744 million yen
34,253 million yen

2%*Cautionary statement regarding forecasts of operating results and special notes
1. Forward-looking statements in these materials are based on information available to management at the time, this report was
prepared and assumptions that management believes are reasonable. Actual results may differ significantly from these statements
for a number of reasons.
Please refer to 1. Results of Operations (1) Analysis of results of operations” on page 4 for information concerning assumptions
used for forecasts and precautions concerning the use of forecasts.
2. There is no dividend forecast for the fiscal year ending on March 31, 2011 because of the uncertain outlook for the operating
environment. An announcement will be made promptly once a dividend forecast becomes possible due to future changes in operating
results and other factors.

31. Results of Operations(1) Analysis of results of operations
In the 2010 fiscal year, which ended on March 31, 2010, there was a recovery in the global economy supported by the benefits ofeconomic stimulus measures in the United States and other factors. However, more time will be needed for a full-scale recovery
because the recovery in employment is still slow and the recovery in the housing market is taking longer than expected. The
economy is recovering in Europe too due to strength in exports and consumer spending. However, the crisis in Greece and otherevents show that some sectors of the European economy are still difficult. East Asia is becoming the driving force behind global
economic growth because of relatively steady growth as economies in China, India and other countries expand.
In Japan, the economy has been recovering because of strength in exports to China, the United States and other countries. But theoutlook remains uncertain due to persistently high unemployment, exchange rate movements, deflationary forces and other factors.
In the electronics industry, there was higher demand for flat-panel TVs and other digital audio-visual products, eco-cars and otherenvironmental products due to the benefits of programs by the Japanese government to promote sales of these products. The result
was an increase in demand for components used in these products. In addition, there was a recovery across the entire electronics
industry as manufacturers of electronic products completed inventory reductions, although there is an increasing tendency forbuyers to prefer lower-priced products.
In this environment, the KAGA ELECTRONICS Group took actions to become more competitive. For example, new EMS
factories were constructed in China and the Czech Republic in Eastern Europe to meet diversifying customer needs. In addition,actions were taken to conduct business operations more efficiently by having group companies work even more closely together.
Group companies also added new products and expanded sales routes. Despite these initiatives, consolidated net sales decreased
12.5% to 239,391 million yen. Although actions were taken to cut costs, operating income was down 29.6% to 1,582 million yen
and ordinary income fell 42.0% to 1,280 million yen. Due to income taxes and other items, there was a net loss of 318 million yen
compared with a net loss of 806 million yen one year earlier.
Net sales by business segment

Business segment

FY 2009(Fiscal year ended March 31, 2009)

FY 2010(Fiscal year ended March 31, 2010)

Amount (million yen)Amount (million yen)

Proportion

Proportion

Electronic components business
196,57471.8%
164,036
68.5%
Information equipment business
77,03528.2%
75,355
31.5%
Total
273,610100.0%
239,391
100.0%*Electronic components business: Development, manufacture and sale of semiconductors, general electronic components, EMS andothers. (Electronics Manufacturing Service is a term used for companies that design, test, manufacture, distribute, and provide
return/repair services.)*Information equipment business: Sale of personal computers and peripherals.
Net sales by product category
FY 2009(Fiscal year ended March 31, 2009)

FY 2010(Fiscal year ended March 31, 2010)

Amount (million yen)

Proportion

Amount (million yen)

Proportion

Information equipment

66,19724.2%

64,16926.8%

EMS
Semiconductors

77,46561,837

28.3%
22.6%

60,91051,861

25.4%
21.7%

General electronic components
OthersTotal

36,02432,084
273,610

13.2%
11.7%
100.0%

29,59232,857239,391

12.4%
13.7%
100.0%

Product category4

Information equipment
Group companies stepped up activities to increase sales of PCs and peripherals following the October 2009 launch of Windows 7.
Other activities were aimed at increasing sales of new products and services, including network construction and security systems,
to operating companies, schools and the public sector. But sales were held down by a decline in the volume of PCs handled in the
United States and other items. As a result, segment sales decreased 3.1% to 64,169 million yen.
EMS
Factories were constructed in Eastern Europe and Eastern China to support the growth of this business. But there was a large
decline in orders received because of delays in product introductions and cuts in production volume by EMS client companies. For
example, orders were down in Japan for LCD units for amusement equipment manufacturers and overseas for circuit boards forJapanese office equipment manufacturers. Segment sales were down 21.4% to 60,910 million yen.
Semiconductors
This segment includes the first full fiscal year contribution from ADM Inc., which is a semiconductor trading company that sells
mainly analog devices and became a member of the KAGA ELECTRONICS Group in August 2008. However, there were declines
in the volumes handled of image processing ICs for amusement equipment and ICs for digital audio-visual products caused byrevisions to specifications by some client companies. The result was a 16.1% decrease in segment sales to 51,861 million yen.
General electronic components
There was an increase in sales of components used in data terminals. However, sales of components were lower to amusement
equipment manufacturers in Japan and Japanese office equipment manufacturers in China as these companies reduced production
volume. Segment sales decreased 17.9% to 29,592 million yen.
OthersSales in this segment includes TOKYO DENDEN KOUGYOU, LTD. (renamed KAGA TECHNO SERVICE CO., LTD. on April
1, 2010), which installs electrical and communications equipment. This company joined the KAGA ELECTRONICS Group inJune 2009. In addition, there were strong sales from terrestrial digital TV reception construction work for owners of apartmentbuildings and from sales of amusement devices. The result was a 2.4% increase in segment sales to 32,857 million yen.
Performance by geographic segment was as follows.
1) JapanJapan’s economy is recovering mainly because of growth in exports to China and the United States. But the outlook is uncertain
because of high unemployment, the strength of the yen, deflationary forces and other factors. Performance in Japan benefited fromthe addition of new products and the inclusion of sales from newly consolidated subsidiaries. However, there were declines in sales
of ICs used in digital audio-visual products, sales of PCs and EMS orders received from amusement equipment manufacturers.
Sales in Japan decreased 11.5% to 210,826 million yen and operating income was down 56.9% to 651 million yen.
2) North America
In the United States, the economy is recovering because of economic stimulus measures. But the improvement in employment isstill weak and the recovery in the housing market is going slowly. As a result, a full-scale recovery is unlikely to take place soon.
Due to a downturn in orders for components used in amusement equipment and for other products, sales were down 29.2% to 375
million yen and there was an operating loss of 121 million yen compared with a loss of 98 million yen one year earlier.
3) Europe
Economies in Europe recovered owing to strength in exports and consumer spending in major European countries. But theeconomic picture remains challenging in some respects as shown by the crisis in Greece. Orders in the EMS business for circuitboards and other products were down as manufacturers of electronics products of all types cut production in the first half of the
fiscal year. Sales decreased 16.3% to 3,079 million yen and there was an operating loss of 77 million yen compared with a loss of
51 million yen one year earlier.
4) East Asia
East Asia is becoming an increasingly important source of global economic growth because of ongoing economic expansion in
China, India and other emerging countries. Orders in the EMS business were down for office equipment, climate control
equipment and other products as Japanese manufacturers in this region reduced production volumes. Sales decreased 11.8% to49,189 million yen and operating income decreased 35.6% to 525 million yen.
(2) Forecast for fiscal year ending March 2011
The outlook for the global economy is unclear, although a moderate recovery is expected that is backed by economic growth inChina and other emerging countries. In Japan, there are hopes for a continuation in the export-led recovery. But the outlook is
uncertain because of the yen’s strength, high unemployment, deflation and other issues. In the electronics industry, the recovery is
expected to continue with the support of exports. Nevertheless, the outlook remains uncertain due to the slow pace of the recovery
in capital expenditures, increasing preference of buyers for lower-priced products and other reasons. To overcome these challenges,
KAGA ELECTRONICS Group companies are working more closely together and taking steps aimed at capturing synergies inorder to improve efficiency. The group is also adding new products and rebuilding unprofitable subsidiaries with the aim ofoperating more efficiently.
Based on this outlook, the Group’s current forecast for the fiscal year ending in March 2011 is as follows.

5

Net sales by product category (FY2010 Actual vs. FY2011 Projection)
FY 2010 Actual(Fiscal year ended March 31, 2010)

FY 2011 Projection(Fiscal year ending March 31, 2011)

Amount (million yen)Amount (million yen)

Product category

Share

Share

Information equipment
EMS

64,16960,910

26.8%
25.4%

47,00070,000

20.9%
31.1%

Semiconductors
General electronic components

51,861
29,592

21.7%
12.4%

58,00020,000

25.8%
8.9%

Others32,857239,39113.7%
100.0%

30,000225,000

13.3%
100.0%Total(3) Analysis of financial conditiona. Assets, liabilities and net assets
Total assets were 113,962 million yen at the end of March 2010, 3,289 million yen less than one year earlier. This decrease wasattributable mainly to a decline in notes and accounts receivable-trade.
Liabilities decreased 2,281 million yen to 65,408 million yen mainly because of a decline in notes and accounts payable-trade andthe repayment of long-term bank loans.
Net assets decreased 1,007 million yen to 48,553 million yen mainly because of dividend payments.
b. Cash flows
There was a net increase of 428 million yen, or 3.8%, in cash and cash equivalents to 11,797 million yen at the end of March 2010.
The following is a summary of cash flows in the fiscal year.
(Operating activities)
Net cash provided by operating activities was 5,728 million yen compared with 5,435 million yen one year earlier. The difference
was due mainly to a decrease in notes and accounts receivable-trade.
(Investing activities)
Net cash used in investing activities was 3,040 million yen compared with 4,212 million yen one year earlier. The primary use of
cash was payments for the purchase of property, plant and equipment.
(Financing activities)
Net cash used in financing activities was 2,307 million yen compared with 3,407 million yen one year earlier. The primary use of
cash was repayments of long-term bank loans.
Cash flow index trends (for reference)
Fiscal year
ended
March 2006

Fiscal year
ended
March 2007

Fiscal year
ended
March 2008

Fiscal year
ended
March 2009

Fiscal year
ended
March 2010

Shareholders’ equity ratio
41.7%
42.1%
40.0%
Shareholders’ equity ratio at market value
72.0%
48.2%
28.4%
Debt repayment multiple
0.59 years
19.24 years
Interest coverage ratio
62.8
4.8
Shareholders’ equity ratio is shareholders’ equity divided by total assets.
Shareholders’ equity ratio at market value is market capitalization divided by total assets.
Debt repayment multiple is interest-bearing debt divided by operating cash flows.
Interest coverage ratio is operating cash flows divided by interest expenses.

40.7%
18.8%
2.38 years
28.1

41.1%
24.4%
2.01 years
43.6

Notes:
1. All figures are calculated based on consolidated financial data.
2. Market capitalization uses the number of shares issued less treasury stock.
3. Cash flows are operating cash flows.
4. Interest-bearing debt is the sum of all liabilities on the balance sheet on which the Group is obligated to pay interest.
5. No debt repayment multiple and interest coverage ratio are shown for the fiscal years ended March 2007 because operating cash
flows were negative in these fiscal years.

6(4) Fundamental policy for earnings allocations and dividends in the fiscal years 2010 and 2011
The Company’s fundamental policy is to pay a steady and consistent dividend to shareholders that reflect consolidated
performance as well as the need to establish a more powerful financial position and base of operations from a long-term stable
perspective.
However, based on performance in the fiscal year 2010 and the outlook for the following fiscal years, the Company plans to pay a
year-end dividend of 15 yen per share. With the interim dividend of 15 yen per share, this will result in an annual dividend of 30 yen
per share.
There is no dividend forecast for the fiscal year ending on March 31, 2010 because of the uncertain outlook for the operating
environment. An announcement will be made promptly once a dividend forecast becomes possible due to future changes in operating
results and other factors.

7

2. Corporate GroupThe KAGA ELECTRONICS group of companies (the Group) is made up of KAGA ELECTRONICS CO., LTD. (the Company), 48
consolidated subsidiaries (22 in Japan, 26 overseas), 5 equity-method affiliates (4 in Japan, 1 overseas), and 9 affiliates that are notaccounted for using the equity method (1 in Japan, 8 overseas). These companies are engaged primarily in the following activities:
the electronic components business, including the development, manufacture and sale of semiconductors and general electronic
components and EMS (electronic manufacturing services); and the information equipment business, including the sale of personal
computers and peripherals, sporting goods, films and optical devices. A diagram showing business activities and Group companies isshown below.
<Overseas>[Electronic components business]

Sales
KAGA DEVICES CO., LTD.
AD DEVICE CORPORATIONKAGA IMPEX, CO., LTD.
OTSUKA ELECTRIC CO., LTD.
ADM INC.

Sales
KAGA (H.K.) ELECTRONICS LTD.
KAGA (SINGAPORE) ELECTRONICS PTE.LTD.
KAGA (KOREA) ELECTRONICS CO., LTD.
KAGA (TAIWAN) ELECTRONICS CO., LTD.
KAGA DEVICES (H.K.) LTD.
KAGA (EUROPE) ELECTRONICS B.V.
KAGA ELECTRONICS (USA) INC.
HANZAWA （HK） LTD.
KAGA (SHENZHEN) TRADING CO., LTD.
KAGA IMPEX, LLC
AD DEVICE (H.K.) LIMITEDKAGA (EUROPE) ELECTRONICS LTD.

Manufacturing and sales
KAGA TECH CO., LTD.
KAGA COMPONENTS CO., LTD.
MICRO SOLUTION CO., LTD.
DIGITAL MEDIA LAB., INC.
ACCESS GAMES INC.
KAGA AMUSEMENT CO., LTD
WORKBIT CORPORATIONSI ELECTRONICS LTD.
Sales promotion products and other planning anddevelopment
KAGA CREATE CO., LTD.
[Information equipment business]

KAGA ELECTRONICS CO., LTD.
(procurement and sales)<Japan>[Electronic components business]

Manufacturing and sales
KAGA ELECTRONICS (THAILAND) CO., LTD.
KAGA (SHANGHAI) ELECTRONICS CO., LTD.
KAGA (DALIAN) ELECTRONICS CO., LTD.
KAGA COMPONENTS (HONG KONG) LTD.
GUANGZHOU KEIDENKI LTD.
KAGA (SHENZHEN) ELECTRONICS LTD.
KAGA COMPONENTS (MALAYSIA) SDN. BHD.
DONGGUAN POWERTEK ELECTRONICS
CO., LTD.
KAGA INSTRUMENTS SHANTOU CO., LTD.
KD TEC s.r.o.
KAGA TAXAN ELECTRONICS (SUZHOU) CO.,
LTD.

Sales
KAGA SOLUTION NETWORK CO., LTD.
KAGA SPORTS CO., LTD.
KAGA HIGHTECH CO., LTD.
KAGA EDUCATIONAL MARKETING CO., LTD.
TOKYO DENDEN KOUGYOU, LTD.
Two other companies

Design and development
KAGA (SHENZHEN) ELECTRONICSTECHNOLOGY DEVELOPMENT CO., LTD.
HANZAWA (SZ) LTD.

* CyberFront Corporation# Explay Japan Co., Ltd.
* Three other companies# Elatec Vertriebs GmbH* One other company# Seven other companies
Manages and operates facility for employees

KASHIMURA AGENCY CO., LTD.
(insurance agency)

Uses
TAXAN GUAM LTD.
Uses
Japanese and overseas customers(Notes)*: Equity-method affiliates.
#: Affiliates that are not accounted for using the equity method.
All other companies are consolidated subsidiaries.
8(1) The following consolidated subsidiaries became our group company during the fiscal year that ended in March 2010.
Relationship with the Company
Name

Address

CapitalActivities

Voting rights
held

%

Joint
directors

Financialsupport

No.

Million yen

Businessrelationship

Leasing offacilities andequipment[Electronic components
business]

KAGA (EUROPE) ELECTRONICS LTD.
(Note 2)KD TEC s.r.o.
(Note 3)

Wokingham
U.K.

Kydne
Czech
Republic

KAGA TAXAN ELECTRONICS (SUZHOU) Jiaxing
ChinaCO., LTD.

GBP 600,000

CZK12,000,000

CNY20,490,000(Note 4)

Sales of electronic
components andelectronic devices

Assembly of electricaland electronic units,
sale of electronic
components

Manufacture and saleof electronic
components, etc

100.0

4

-

Mutual supplyof certain
products soldby thiscompany andthe Company

100.0

-

-

-

-

100.0
(Note 1)(66.7)

3

-

-

-

-

Mutual supplyof certain
products soldby thiscompany andthe Company--[Informationequipment business]

TOKYO DENDEN KO
Sumida-ku
UGYOU, LTD.
(Note 5)Tokyo

JPN 42,000,000

Installation ofelectrical andcommunications
equipment and interior
decoration work

100.0
(Note 1)(100.0)1

Notes:
1. Figures in parentheses in the column showing voting rights of the subsidiary are the indirect percentages.
2. KAGA (EUROPE) ELECTRONICS LTD. was established on April 1, 2009 for the purpose of improving the efficiency ofmanagement and business operations in Europe. KAGA (EUROPE) ELECTRONICS B.V. is currently undergoing liquidation.
3. KD TEC s.r.o. was established on April 27, 2009 for the purpose of expanding business operations in Europe.
4. KAGA TAXAN ELECTRONICS (SUZHOU) CO., LTD. was established on July 9, 2009 by affiliate KAGA (SHANGHAI)
ELECTRONICS CO., LTD. as an EMS manufacturing base in eastern China.
5. TOKYO DENDEN KOUGYOU, LTD. became an indirectly owned subsidiary on June 8, 2009 following the purchase of its
stock by affiliate KAGA SOLUTION NETWORK CO., LTD. TOKYO DENDEN KOUGYOU was renamed KAGA TECHNOSERVICE CO., LTD. on April 1, 2010.
6. ADM Singapore Pte. Ltd., which was a consolidated subsidiary in the previous fiscal year, merged with consolidated subsidiary
KAGA (SINGAPORE) ELECTRONICS PTE. LTD. on April 1, 2009 with the latter company as the remaining company. In
addition, KGF CO., LTD. is no longer an affiliate because the Company sold its KGF shares on March 31, 2010.
ADM Electronics Hong Kong Limited, which was a consolidated subsidiary in the previous fiscal year, was liquidated on
January 15, 2010.
7. Starting in the second quarter of the fiscal year that ended in March 2010, Elatec Vertriebs GmbH and its six group companies
were no longer accounted for using the equity method. These companies do not have a material effect on consolidated earnings orretained earnings and the Group has an extremely low level of participation in the management of these companies.

93. Management Policies(1) Fundamental management policy
Based on the management philosophy of “Everything we do, we do for our customers,” the KAGA ELECTRONICS Group is
guided by the fundamental policy of “remaining a company that contributes to the happiness of all stakeholders, including
shareholders, customers and employees, and fulfills its responsibilities to society.” The Group is dedicated to growing consistently
by responding with speed and agility to globalization of the economy and the rapidly changing electronics industry. To accomplish
this, the Group will expand its network in Japan and overseas and deepen ties among Group companies to enhance collective
strengths. The Group also has a strong commitment to corporate social responsibility, positioning compliance and protecting the
global environment as important elements of its operations.
Based on the above management philosophy and fundamental management policy, the companies of the KAGA ELECTRONICS
Group, which are active primarily in the electronics industry, seek to improve their results of operations while cooperating witheach other by doing business in a speedy manner that places the highest priority on rapid decision-making.
The key word is F.Y.T.
F = Flexibility (adapting adeptly to external changes)
Y = Young (staying young in thought and action)
T = Try (the spirit of always taking on challenges)(2) Targeted performance indicators
As the electronics industry, where the Group is active, is expected to continue to grow, priority will continue to be placed on
raising the rate of sales growth and improving the return on equity.
(3) Medium- and long-term management strategies
The rapid pace of change in the electronics industry is expected to continue. New products are appearing and existing products
going out of date faster. Companies are moving production bases out of Japan faster, too. Amid these changes, more growth isforeseen for the electronics industry.
The Group has grown with KAGA ELECTRONICS, an independent electronics trading company, as its nucleus by working with alarge number of suppliers and customers and handling a broad spectrum of products. The Group is distinguished by its ability tohandle all aspects of the electronics business, from upstream to downstream, including product planning, development andprocessing (EMS). Backed by these distinctive strengths, the Group will work even more closely together to capture synergies withthe goal of increasing sales and earnings while growing on a global scale.
The key word is 3G.
General (covering everything)
Global (worldwide coverage)
Group (leveraging the collective power of the Group)(4) Key issues
As stated in its fundamental management policy, the Group is dedicated to upgrading group management in accordance with the
FYT and 3G concepts with the goal of continuing to grow. The Group is also committed to raising its enterprise value while
preserving strong relationships with all stakeholders. Additionally, the Group is constantly working on building an organizationthat can quickly adapt to changes in market conditions and customer needs. Another goal is enhancing the ability to gather
information quickly. At the same time, the Group aims to capture more synergies by building stronger ties among group companies
and fostering more collaboration and mutual assistance within the Group, thereby expanding operations and raising efficiency.
Based on the following environmental policy, all members of the Group are working together to build a framework that can tackle
environmental issues from many perspectives. (ISO 14001 certification was received on November 15, 2002.)(Environmental policy)
Always looking ahead to the future of electronics, the KAGA ELECTRONICS Group is dedicated to meeting the needs ofcustomers while protecting the Earth in order to preserve and improve the natural environment.
At present, the Group is concentrating on the following issues:
1. Updating and establishing group oversight systems to improve operating efficiency
2. Strengthening relationships, collaboration and mutual assistance among Group companies to realize greater synergies
3. Reinforcing operations overseas and expanding the global network
4. Upgrading technological skills and improving the ability to gather information with speed
5. Revitalizing underperforming subsidiaries
106. Tackling environmental problems
7. Thorough operation of internal control systems(5) Other important items concerning management
Not applicable114. Consolidated Financial Statements(1) Balance sheet(million yen)
FY 2009(As of March 31, 2009)ASSETS
Current assets
Cash and cash equivalents
Notes and accounts receivable-tradeMarketable securities
Merchandize and furnished goods
Goods in progress
Raw materials and other supplies
Deferred tax assets
OthersAllowance for doubtful receivables
Total current assets
Fixed assets
Property, plant and equipment
Buildings and structures
Accumulated depreciation

FY 2010(As of March 31, 2010)

11,37861,05358
13,969
577
3,749
994
8,017
(159)

11,91759,21469
14,483
647
3,011
866
6,813
(184)

99,63996,8383,348(1,026)

3,720(1,135)

Buildings and structures, net

2,321

2,584

Machinery, equipment and vehicles
Accumulated depreciation

3,622(2,135)3,491(2,002)

Machinery, equipment and vehicles, net

1,486

1,489

2,759
(1,729)3,272(2,328)

1,029

944

Land
Construction in progress

1,324
6

1,297
119

Total property, plant and equipment

6,168

6,434

884
878
152

484
686
731

Tools, furniture and fixtures
Accumulated depreciation
Tools, furniture and fixtures, net

Intangible assets
Goodwill
Software
Others

1,914

1,901

Investments and other assets
Investment securities
Deferred tax assets
Security deposits
Insurance reserve
OthersAllowance for doubtful receivables

Total intangible assets

4,854
346
2,410
964
2,300
(1,347)

4,607
249
2,149
1,056
2,284
(1,559)Total investments and other assets

9,528

8,786

Total fixed assets
Total assets

12

17,612

17,123

117,251

113,962(million yen)
FY 2009(As of March 31, 2009)
LIABILITIESCurrent liabilities
Notes and accounts payable-trade
Short-term bank loans
Accrued expenses
Income taxes payable
Allowance for directors’ and corporate auditors’ bonuses
OthersTotal current liabilities
Long-term liabilities
Long-term bank loans
Deferred tax liabilities
Allowance for retirement benefits for employees
Allowance for retirement benefits for directors andcorporate auditors
Others

FY 2010(As of March 31, 2010)

44,772
9,291
2,562
949
9
2,936

43,535
8,935
2,134
1,049
20
3,103

60,521

58,779

3,620
354
1,342

2,500
593
1,432

1,122

1,222

729

881

7,168

6,629

Total liabilities

67,69065,408NET ASSETS
Shareholder’s equity
Paid-in capital
Capital surplus
Retained earnings
Treasury stock

12,133
13,91225,158(1,331)

12,133
13,91224,012(1,332)

49,873

48,726(364)(0)(1,737)(195)
8(1,697)(2,103)(1,884)

1,790

1,711

Total long-term liabilities

Total shareholder’s equity
Valuation and translation adjustments
Valuation differences on available-for-sales securities
Deferred gains or losses on hedges
Foreign currency translation adjustments
Total valuation and translation adjustments
Minority interests
Total net assets
Total liabilities and net assets

13

49,56048,553

117,251

113,962(2) Statements of income(million yen)
FY 2009
FY 2010(Fiscal year ended March 31, 2009) (Fiscal year ended March 31, 2010)
Net sales
Cost of sales

273,610
243,226

239,391
211,153

Gross profit

30,383

28,237

Selling, general and administrative expenses

28,13426,655

Operating income

2,249

1,582

130
109
133
479

66
86
137
82
342

854

714

192
93
495
114

131
67
574
110
132

Non-operating income
Interest income
Dividend income
Commission income
Amortization of negative goodwill
OthersTotal non-operating income
Non-operating expenses
Interest expense
Management loss at investment association
Foreign exchange losses
Equity in losses of affiliates
OthersTotal non-operating expenses
Ordinary income
Extraordinary income
Gain on sales of fixed assets
Gain on sales of investment securities
Gain on liquidation of affiliates
OthersTotal extraordinary income
Extraordinary losses
Loss on retirement of fixed assets
Loss on revaluation of investment securities
Loss on impairment of fixed assets
Head office moving expenses
OthersTotal extraordinary losses

896

1,016

2,208

1,280

4
17
38
10

18
481
45

70

545

130
1,202
350
330
216

10
219
146
53

2,229

429

49

1,396

Income, inhabitants and enterprise taxes
Income tax adjustment

1,459
(364)

1,411
347

Total taxes

1,094

1,759

Minority interests in income (loss) of consolidated
subsidiaries

(238)

(43)

Net income (loss)

(806)

(318)

Income before income taxes and minority interests14(3) Statement of changes in consolidated shareholders’ equity(million yen))
FY 2009
FY 2010(Fiscal year ended March 31, 2009) (Fiscal year ended March 31, 2010)
Shareholders’ equity
Paid-in capital
Balance at the end of previous period

12,133

12,133

Balance at the end of current period

12,133

12,133

13,912

13,91200Capital surplus
Balance at the end of previous period
Changes during the period
Disposal of treasury stock
Total changes during the period

00Balance at the end of current period

13,912

13,912

27,41325,158(44)-(1,402)
(806)

(827)
(318)

Total changes during the period(2,209)(1,146)

Balance at the end of current period

25,15824,012(843)(1,331)

(489)
0

(1)
1

Retained earnings
Balance at the end of previous period
Increase (decrease) due to changes in accounting
treatment at overseas subsidiaries
Changes during the period
Dividends paid
Net income (loss)

Treasury stock
Balance at the end of previous period
Changes during the period
Acquisition of treasury stock
Disposal of treasury stock
Total changes during the period

(488)

(0)

Balance at the end of current period(1,331)(1,332)

52,61549,873(44)-(1,402)
(806)
(489)
0

(827)
(318)
(1)
1

Total changes during the period(2,698)(1,146)

Balance at the end of current period

49,873

48,726

Total Shareholders’ equity
Balance at the end of previous period
Increase (decrease) due to changes in accounting
treatment at overseas subsidiaries
Changes during the period
Dividends paid
Net income (loss)
Acquisition of treasury stock
Disposal of treasury stock15

(million yen))
FY 2009
FY 2010(Fiscal year ended March 31, 2009) (Fiscal year ended March 31, 2010)
Valuation and translation adjustments
Valuation difference on available-for-sale securities
Balance at the end of previous period
Changes during the period
Net changes of items other than shareholders' equity

36

(364)

(401)

168

Total changes during the period

(401)

168

Balance at the end of current period

(364)

(195)

2

(0)

Deferred gains or losses on hedged
Balance at the end of previous period
Changes during the period
Net changes of items other than shareholders' equity(3)

9

Total changes during the period(3)9Balance at the end of current period

(0)

8

(514)

(1,737)(1,223)40

Total changes during the period(1,223)

40

Balance at the end of current period(1,737)(1,697)(475)(2,103)(1,627)218

Foreign currency translation adjustments
Balance at the end of previous period
Changes during the period
Net changes of items other than shareholders' equity

Total valuation and translation adjustments
Balance at the end of previous period
Changes during the period
Net changes of items other than shareholders' equity
Total changes during the period(1,627)

218

Balance at the end of current period(2,103)(1,884)51

1,790

Minority interests
Balance at the end of previous period
Changes during the period
Net changes of items other than shareholders' equity

1,739

(79)

Total changes during the period

1,739

(79)

Balance at the end of current period

1,790

1,711

52,192

49,560(44)-(1,402)
(806)
(489)
0
111

(827)
(318)
(1)
1
139

Total changes during the period(2,586)(1,007)

Balance at the end of current period

49,56048,553

Total net assets
Balance at the end of previous period
Increase (decrease) due to changes in accounting
treatment at overseas subsidiaries
Changes during the period
Dividends paid
Net income (loss)
Acquisition of treasury stock
Disposal of treasury stock
Net changes of items other than shareholders' equity

16

(4) Statements of cash flows(million yen)
FY 2009
FY 2010(Fiscal year ended Mar. 31, 2009) (Fiscal year ended Mar. 31, 2010)
Operating activities
Income before income taxes and minority interest
Depreciation and amortization
Loss on impairment of fixed assets
Amortization of goodwill
Increase (decrease) in allowance for retirement benefits for
employees
Increase (decrease) in allowance for retirement benefits for
directors and corporate auditors

49
1,709
350
269

1,396
2,050
146
223

42

67

84

92

(128)

10

198
(240)
192
(3)
130
(15)
1,202
13,1492,980(11,578)
(262)
319
363
(88)
582
180

268
(152)
131
(16)
10
(464)
219
2,303
102
(1,270)
1,203
(212)
187
6
748
213

Sub-total

9,487

7,265

Decrease (increase) in advance payments
Interests and dividend received
Interests paid
Income taxes–paid
Others

(311)
239
(193)
(3,817)
29

(344)
146
(131)
(1,343)135

Net cash provided by (used in) operating activities

5,435

5,728

Increase (decrease) in accrued bonuses for directors andcorporate auditors
Increase (decrease) in allowance for doubtful receivable
Interest and dividend income
Interest expenses
Loss (gain) on sales of property, plant and equipment
Loss on retirement of fixed assets
Loss (gain) on sales of investment securities
Loss (gain) on revaluation of investment securities
Decrease (increase) in notes and accounts receivable–trade
Decrease (increase) in inventories
Increase (decrease) in notes and accounts payable–trade
Decrease (increase) in accounts receivable–other
Increase (decrease) in accrued expenses
Decrease (increase) in consumption taxes refund receivable
Decrease (increase) in other current assets
Increase (decrease) in other current liabilities
Others17

(million yen)
FY 2009
FY 2010(Fiscal year ended Mar. 31, 2009) (Fiscal year ended Mar. 31, 2010)
Investing activities
Payments into time deposits
Payment for purchase of property, plant and equipment
Proceeds from sales of property, plant and equipment
Payment for purchase of intangible assets
Payment for purchase of investment securities
Proceeds from sales of investment securities
Payment from sales of securities of subsidiaries, whichchanged the scope of consolidation
Payment for acquisition of securities of subsidiaries, whichchanged the scope of consolidation(2,540)
229
(656)
(195)
120

(120)
(2,498)
104
(723)
(888)
1,550

-

(11)

(652)

-

212

164

Other payments
Other proceeds(1,244)
1,043
(72)
(95)
19
(549)
278
(109)
-

(757)
468
(18)
(123)
1
(858)
698
(102)
74

Net cash provided by (used in) investing activities(4,212)(3,040)(4,309)5,000(2,123)(488)(1,402)
(47)
(35)

483
(1,905)
(0)
(827)
(42)
(16)

(3,407)(2,307)(457)

49

Proceeds from acquisition of securities of subsidiaries,
which changed the scope of consolidation
Short-term loans provided
Short-term loans collected
Long-term loans provided
Insurance reserve funded
Insurance reserve cancelled
Security deposits provided
Security deposits collected
OthersFinancing activities
Increase (decrease) in short-term bank loans
Proceeds from long-term bank loans
Repayment of long-term bank loans
Payment for acquisition of treasury stock
Payment of dividends
Payment of dividends to minority shareholders
OthersNet cash provided by (used in) financing activities
Effect of exchange rate changes on cash and cash equivalents
Increase (decrease) in cash and cash equivalents(2,642)

428

Cash and cash equivalents, beginning of period

14,011

11,368Cash and cash equivalents, end of period

11,368

11,79718

(5) Events or situations causing serious doubt about going-concern premiseNone(6) Basis of presenting the consolidated financial statements
1. Scope of consolidation(1) Consolidated subsidiaries: 48
Major consolidated subsidiaries are not shown here because they are listed in “2. Corporate Group.” TOKYO DENDENKOUGYOU, LTD. and TTS Co., Ltd. are consolidated because they were newly acquired and KAGA (EUROPE)
ELECTRONICS LTD., KD TEC s.r.o. and KAGA TAXAN ELECTRONICS (SUZHOU) CO., LTD. are consolidated because
they were newly established. Ginga Fund Partnership is no longer consolidated because it was dissolved, ADM Singapore Pte.
Ltd. is no longer consolidated because it merged with KAGA (SINGAPORE) ELECTRONICS PTE. LTD., which is thesurviving company, TTS Co., Ltd. and ADM Electronics Hong Kong Limited are no longer consolidated because they wereliquidated, and KGF CO., LTD. is no longer consolidated because it was sold.
(2) Equity-method affiliates: 5
Major equity-method affiliates are not shown here because they are listed in “2. Corporate Group.” Elatec Vertriebs GmbH andits six group companies are no longer classified as equity-method affiliates because these companies do not have a material
effect on consolidated earnings or retained earnings and the Group has an extremely low level of participation in the
management of these companies.
(3) Fiscal years of consolidated subsidiaries
The fiscal year end is December 31 for consolidated subsidiaries KAGA DEVICES (H.K.) Ltd., GUANGZHOU KEIDENKI
LTD., KAGA (SHENZHEN) ELECTRONICS LTD., KAGA (SHANGHAI) ELECTRONICS CO., LTD., KAGA(SHENZHEN) ELECTRONICS TECHNOLOGY DEVELOPMENT CO., LTD., DONGGUAN POWERTEK ELECTRONICS
CO., LTD., KAGA (DALIAN) ELECTRONICS CO., LTD., KAGA (SHENZHEN) TRADING CO., LTD., N.Y. SALAD
Production Committee, N.Y. SALAD II Production Committee, Kaga Impex, LLC, KAGA INSTRUMENTS SHANTOU CO.,LTD., HANZAWA (HK) Ltd., HANZAWA (SZ) Ltd., and KAGA TAXAN ELECTRONICS (SUZHOU) CO., LTD. The
financial statements as of the end of this fiscal year are used to prepare the consolidated financial statements. However,adjustments are made as necessary to the consolidated financial statements for all significant transactions during the period from
December 31 to March 31, which is the end of the year for the consolidated financial statements.
2. Significant Accounting Policies
Standard for posting significant allowances
Allowance for retirement benefits for employees
To prepare for the payment of employees retirement benefits, the Company and its consolidated subsidiaries posted retirement
benefit liabilities and estimated retirement plan assets at the end of March 2010. Actuarial gains and losses are recognized as
expenses starting in the following fiscal year in which each gain/loss occurs using the straight-line method over a fixed number ofyears (10) that is not more than the average remaining time of service for employees.
(Change in accounting method)
Beginning with the fiscal year that ended in March 2010, the Company has adopted Partial Amendments to Accounting Standard
for Retirement Benefits (Part 3) (ASBJ Statement No. 19, July 31, 2008). Since actuarial gains and losses are amortized starting in
the following fiscal year, this change has no effect on operating income, ordinary income or income before income taxes andminority interests.
No other changes in accounting methods are shown here because there are no other significant changes since the most recent
Securities Report (issued on June 29, 2009).
(7) Changes in method of presentation(Consolidated statement of income)In the previous fiscal year, “Amortization of negative goodwill” was included in the “Others” item of non-operating income.
Beginning with the fiscal year that ended in March 2010, this item is presented as a separate item in non-operating income because
it became more than one-tenth of total non-operating income. “Amortization of negative goodwill” was 53 million yen in the fiscal
year that ended in March 2009.
In the previous fiscal year, “Equity in losses of affiliates” was included in the “Others” item of non-operating expenses. Beginningwith the fiscal year that ended in March 2010, this item is presented as a separate item in non-operating expenses because it
became more than one-tenth of total non-operating expenses. “Equity in losses of affiliates” was 3 million yen in the fiscal yearthat ended in March 2009.
19

(Consolidated statement of cash flows)
The “Other payments” and “Other proceeds” items in cash flows from investing activities were included in the “Others” item in thefiscal year that ended in March 2009. Beginning with the fiscal year that ended in March 2010, these items are presented separately
due to their greater importance. In the fiscal year that ended in March 2009, the “Others” item included “Other payments” of 161
million yen and “Other proceeds” of 67 million yen.
(8) Precaution concerning the consolidated financial statements(Items not disclosed)
There are no notes concerning the consolidated balance sheet, consolidated statement of income, consolidated statement of changes
in shareholders’ equity, consolidated statement of cash flows, lease transactions, related party transactions, tax-effect accounting,financial products, securities, derivative transactions, retirement benefits and real estate for leasing, etc. because the Company
believes there is no significant need to provide this information in this report.
Segment information(a) Operating segment information
Operating segment information is not presented for the previous fiscal year and the current fiscal year since the Kaga Electronics
Group has been engaged in a single sector generally described as the manufacturing and sale of electronics merchandise andproducts.
(b) Geographical segment information
For the previous fiscal year (April 1, 2008 – March 31, 2009)(million yen)
Japan

North
America

Europe

East
Asia

Total

Eliminations
orConsolidated
Corporate

I. Sales and operating income (loss)
Net sales(1) (of which to outside customers)
223,812326
3,624
45,847
273,610273,610(2) (of which inter-segment)
14,326204
54
9,945
24,531(24,531)
Total
238,138530
3,679
55,792
298,141(24,531)273,610
Operating expenses
236,628
629
3,731
54,975295,964(24,604)
271,360
Operating income (loss)
1,509
(98)
(51)
816
2,176
73
2,249
II. Assets
98,543276
819
20,544
120,183(2,932)
117,251
Notes:
1. Countries and regions are classified according to geographical proximity.
2. Countries and regions outside Japan are broken down into the following geographical areas:(1) North America: United States(2) Europe: United Kingdom, Czech Republic, and Russia(3) East Asia: Hong Kong, Singapore, Taiwan, Korea, China, Malaysia, and Thailand
3. Assets included in Eliminations and Corporate amounted to 2,536 million yen in the current fiscal year, which primarily consistof surplus working capital (cash and cash equivalents, marketable securities) and long-term investment securities (investment
securities, contribution to investment partnerships), among others.
4. Change in accounting method(Accounting standard for valuation of inventories)
As was stated in “Basis of presenting the consolidated financial statements” 2. (a), beginning with the fiscal year that ended in
March 2009, “Accounting Standard for Measurement of Inventories” (ASBJ Statement No. 9, July 5, 2006) has been applied. Thischange resulted in a decrease of 83 million yen in operating income in Japan compared with the previous method.
(Current treatment of foreign subsidiaries in the consolidated financial statements)
As was stated in “Changes in basis of presenting the consolidated financial statements,” beginning with the fiscal year that ended
in March 2009, the “Practical Solution on Unification of Accounting Policies Applied to Foreign Subsidiaries for Consolidated
Financial Statements” (ASBJ Practical Issues Task Force No. 18, May 17, 2006) has been applied and the consolidated financial
statements revised as necessary. This change resulted in a decrease of 63 million yen in operating income in East Asia comparedwith the previous method.

20

For the current fiscal year (April 1, 2009 – March 31, 2010)(million yen)North
AmericaJapan
I. Sales and operating income (loss)
Net sales(1) (of which to outside customers)(2) (of which inter-segment)
Total
Operating expenses
Operating income (loss)

Europe

East
Asia

Total

Eliminations
orConsolidated
Corporate

194,586
16,239

262
113

3,042
37

41,4997,689

239,391
24,079(24,079)

239,391-

210,826
210,174

375
497

3,079
3,157

49,18948,663

263,470
262,493(24,079)(24,684)

239,391
237,808

651

(121)

(77)

525

977

605

1,582

II. Assets
94,428225
1,422
23,994
120,071(6,109)113,962
Notes:
1. Countries and regions are classified according to geographical proximity.
2. Countries and regions outside Japan are broken down into the following geographical areas:(1) North America: United States(2) Europe: United Kingdom, Czech Republic, and Russia(3) East Asia: Hong Kong, Singapore, Taiwan, Korea, China, Malaysia, and Thailand
3. Assets included in Eliminations and Corporate amounted to 2,654 million yen in the current fiscal year, which primarily consistof surplus working capital (cash and cash equivalents, marketable securities) and long-term investment securities (investment
securities, contribution to investment partnerships), among others.
Overseas sales
For the previous fiscal year (April 1, 2008 – March 31, 2009)(million yen)
North America

EuropeEast Asia

Total

I. Overseas sales
3,094
4,840
63,08871,023
II. Consolidated sales
273,610
III. Share of overseas sales in total sales (%)
1.1
1.8
23.1
26.0
Notes:
1. Countries and regions are classified according to geographical proximity.
2. Countries and regions outside Japan are broken down into the following geographical areas:(1) North America: United States(2) Europe: United Kingdom, Czech Republic, and Russia(3) East Asia: Hong Kong, Singapore, Taiwan, Korea, China, Malaysia, and Thailand
3. Overseas sales refer to sales posted by the Company and its consolidated subsidiaries in countries and regions outside Japan.
For the current fiscal year (April 1, 2009 – March 31, 2010)(million yen)
North America

EuropeEast Asia

Total

I. Overseas sales
2,456
3,486
52,28258,225
II. Consolidated sales
239,391
III. Share of overseas sales in total sales (%)
1.0
1.5
21.8
24.3
Notes:
1. Countries and regions are classified according to geographical proximity.
2. Countries and regions outside Japan are broken down into the following geographical areas:(1) North America: United States(2) Europe: United Kingdom, Czech Republic, and Russia(3) East Asia: Hong Kong, Singapore, Taiwan, Korea, China, Malaysia, and Thailand
3. Overseas sales refer to sales posted by the Company and its consolidated subsidiaries in countries and regions outside Japan.

.

21Per-share information
(yen)
Item

FY 2009(For the year ended March 31, 2009)

FY 2010(For the year ended March 31, 2010)

Net assets per share

1,730.98

1,697.27

Net income (loss) per share(28.91)(11.55)

Net income per share (diluted) is not

Net income per share (diluted) is notpresented, since it is net loss and there isno potential stock.

presented, since it is net loss and there
is no potential stock.

Note: The basis for calculating net income (loss) per share is as follows.

Net income per share
Net income (loss) (million yen)
Net income (loss) not available to common shareholders (million yen)
Net income (loss) available to common shareholders (million yen)
Weighted average number of shares outstanding
Subsequent events
None

22

FY 2009(For the year ended
March 31, 2009)

FY 2010(For the year ended
March 31, 2010)

(806)
(806)
27,911,323

(318)
(318)
27,596,924

5. Non-consolidated Financial Statements(1) Balance sheets(million yen)
FY 2009(As of March 31, 2009)ASSETS
Current assets
Cash and cash equivalents
Notes receivable-trade
Accounts receivable-tradeMarketable securities
Merchandise
Goods in progress
Supplies
Advance payments-trade
Prepaid expenses
Deferred tax assets
Short-term loans
Short-term loans to affiliates
Accounts receivable-otherConsumption taxes receivable
OthersAllowance for doubtful receivables
Total current assets
Fixed assets
Property, plant and equipment
Buildings
Accumulated depreciation
Buildings, net
Structures
Accumulated depreciation
Structures, net
VehiclesAccumulated depreciation
Vehicles, net
Tools, furniture and fixtures
Accumulated depreciation
Tools, furniture and fixtures, net

FY 2010(As of March 31, 2010)

3,929
4,297
34,367
58
3,566
211
11
883
156
929
194
13,6045,000
70
32(1,244)

5,085
3,394
24,567
69
4,178
220
1,195
191
579
454
13,5544,150
161
16(2,729)66,06955,090

516
(239)

678
(213)

276

465

40
(15)

36
(16)

25

19

150
(115)

169
(124)

34

44

581
(276)

784
(398)

304

386

Land

161

161

Total property, plant and equipment

801

1,077

96
11
317
26
99

12
227
26
76

553

343

Intangible assets
Goodwill
Trade mark rights
SoftwareTelephone rights
OthersTotal intangible assets

23

(million yen)
FY 2009(As of March 31, 2009)

FY 2010(As of March 31, 2010)

Investments and other assets
Investment securities
Affiliate stock
Contribution to capital
Contribution to affiliate capital
Long-term loans
Long-term loans to affiliates
Long-term prepaid expenses
Claims in bankruptcy
Deferred tax assets
Security deposits
Insurance reserve
Golf memberships
OthersAllowance for doubtful receivables
Allowance for loss on investment

4,102
8,335
59
32
271
4,223
4
278
973
1,313
921
396
(4,886)
(313)

3,856
8,637
34
6
238
3,498
42
266
707
1,062
988
396
0
(4,137)(1,239)Total investments and other assets

15,713

14,358

Total fixed assets
Total assets
LIABILITIESCurrent liabilities
Notes payable-trade
Accounts payable-trade
Short-term bank loans
Short-term loans from affiliates
Current portion of long-term debt
Accounts payable-otherAccrued expenses
Income taxes payable
Advances received
Deposits received
OthersTotal current liabilities
Long-term liabilities
Long-term bank loans
Allowance for retirement benefits for employees
Allowance for retirement benefits for directors andcorporate auditors

17,06815,77983,13870,8705,265
24,037
6,559
3,267
1,625
1,149
1,081
42
835
97
1

2,727
17,917
6,877
2,118
1,000
1,528
748
77
1,076
58
8

43,962

34,138

3,500
404

2,500
437

991
26

OthersTotal long-term liabilities
Total liabilities

24

1,046
1

4,922

3,986

48,884

38,125(million yen)
FY 2009(As of March 31, 2009)
NET ASSETS
Shareholder’s equity
Paid-in capital
Capital surplus
Capital legal reserve
Other capital surplus
Total capital surplus
Retained earnings
Earned legal reserve
Other retained earnings
General reserve
Retained earnings brought forward
Total retained earnings

FY 2010(As of March 31, 2010)

12,133

12,133

13,912
0

13,912
0

13,912

13,912618

618

12,860(3,710)12,860(5,298)

9,767

8,179

Treasury stock(1,331)(1,332)

Total shareholder’s equity

34,48232,893

(228)
(0)

(148)
(0)

Valuation and translation adjustments
Valuation differences on available-for-sales securities
Deferred gains or losses on hedges
Total valuation and translation adjustments
Total net assets
Total liabilities and net assets

25

(228)

(148)

34,25332,744

83,13870,870(2) Statements of income

Net sales
Cost of sales
Beginning goods
Cost of purchased goods(million yen)
FY 2009
FY 2010(Fiscal year ended Mar. 31, 2009) (Fiscal year ended Mar. 31, 2010)
126,262
91,291
4,770
113,255

3,778
83,541

118,026

87,319

152
3,778

104
4,399

114,094

82,815Gross profit

12,167

8,476

Selling, general and administrative expenses

9,147

8,365

Operating income

3,020

110

Non-operating income
Interest income
Dividend income
Foreign exchange gains
Others

250
1,289
65
156

121
1,582
260

1,761

1,964

194
25
93
79
8

133
68
23
82
25

Total
Transfer to other accountEnding goods
Cost of goods soldTotal non-operating income
Non-operating expenses
Interest expense
Loss on revaluation of marketable securities
Management loss at investment association
Amortization of investments in unconsolidated subsidiaries
Foreign exchange losses
OthersTotal non-operating expenses
Ordinary income
Extraordinary income
Gain on sales of investment securities
Total extraordinary income
Extraordinary losses
Loss on retirement of fixed assets
Loss on revaluation of investment securities
Loss on revaluation of stocks of affiliates
Provision of allowance for investment loss
Provision of allowance for doubtful accounts for affiliates
Head office moving expenses
Others

403

333

4,378

1,741

16

372

16

372

12
1,038
4,193
30
2,358
227
36

3
217
73
999
865
56

7,895

2,216

(3,500)(102)

Income, inhabitants and enterprise taxes
Income tax adjustment

23
833

96
561

Total taxes

857

658

(4,358)(760)

Total extraordinary losses
Income (loss) before income taxes and minority interests

Net income (loss)

26

(3) Statement of changes in shareholders’ equity(million yen)
FY 2009
FY 2010(Fiscal year ended March 31, 2009) (Fiscal year ended March 31, 2010)
Shareholders’ equity
Paid-in capital
Balance at the end of previous period

12,133

12,133

Balance at the end of current period

12,133

12,133

Capital surplus
Capital legal reserve
Balance at the end of previous period

13,912

13,912

Balance at the end of current period

13,912

13,912

0

0

0

(0)

Total changes during the period

0(0)Balance at the end of current period

0013,912

13,9120(0)

Total changes during the period

0(0)Balance at the end of current period

13,912

13,912Retained earnings
Earned legal reserve
Balance at the end of previous period

618

618

Balance at the end of current period

618

618

Other retained earnings
General reserve
Balance at the end of previous period
Changes during the period
Provision of general reserve

11,66012,8601,200-

Other capital surplus
Balance at the end of previous period
Changes during the period
Disposal of treasury stock

Total capital surplus
Balance at the end of previous period
Changes during the period
Disposal of treasury stock

Total changes during the period

1,200

-

Balance at the end of current period

12,86012,860Retained earnings brought forward
Balance at the end of previous period
Changes during the period
Provision of general reserve
Dividends paid
Net income (loss)

3,250(3,710)(1,200)(1,402)(4,358)

(827)
(760)

Total changes during the period(6,961)(1,588)

Balance at the end of current period(3,710)(5,298)

Total retained earnings
Balance at the end of previous period
Changes during the period
Provision of general reserve
Dividends paid
Net income (loss)

15,5299,767(1,402)(4,358)

(827)
(760)

Total changes during the period(5,761)(1,588)

Balance at the end of current period

9,767

8,179

27

(million yen)
FY 2009
FY 2010(Fiscal year ended March 31, 2009) (Fiscal year ended March 31, 2010)
Treasury stock
Balance at the end of previous period
Changes during the period
Acquisition of treasury stock
Disposal of treasury stock(843)(1,331)

(489)
0

(0)
0

Total changes during the period

(488)

(0)

Balance at the end of current period(1,331)(1,332)

Total Shareholders’ equity
Balance at the end of previous period
Changes during the period
Dividends paid
Net income (loss)
Acquisition of treasury stock
Disposal of treasury stock
Total changes during the period

40,731

34,482(1,402)(4,358)(489)
0(6,249)Balance at the end of current period

34,482

(827)
(760)
(0)
0
(1,588)32,893

25

(228)

(253)

Valuation and translation adjustments
Valuation difference on available-for-sale securities
Balance at the end of previous period
Changes during the period
Net changes of items other than shareholders'equityTotal changes during the period

(253)

79
79

Balance at the end of current period

(228)

(148)

2

(0)

(2)

Total changes during the period

(2)

(0)
(0)

Balance at the end of current period

(0)

(0)

27

(228)

(256)

Deferred gains or losses on hedged
Balance at the end of previous period
Changes during the period
Net changes of items other than shareholders'equityTotal valuation and translation adjustments
Balance at the end of previous period
Changes during the period
Net changes of items other than shareholders'equityTotal changes during the period

(256)

79
79

Balance at the end of current period

(228)

(148)

40,75934,253(1,402)(4,358)
(489)
0
(256)

(827)
(760)
(0)
0
79

Total changes during the period(6,506)(1,508)

Balance at the end of current period

34,25332,744

Total net asset
Balance at the end of previous period
Changes during the period
Dividends paid
Net income (loss)
Acquisition of treasury stock
Disposal of treasury stock
Net changes of items other than shareholders' equity28

6. Others
1. Director transfers
a. Changes in Representative Directors
None
b. Changes in other Directors
Candidate for auditor positions
Standing auditor: Kikuo Sumino
Retiring Auditor
Auditor: Hiroo Fujitac. Effective dateJune 29, 2010
2. Others:None29