Consolidated Balance SheetJapan Securities Depository Center, Inc.
As of March 31, 2004 and 2005

2005

$ (thousands)(Note 4)2005

¥ 1,203,318
4,056,477
50,47054,570,594
266,278
60,147,137$ 11,205
37,773
469
508,1542,480
560,081756,824
4,190,155
4,946,979(2,830,335)
2,116,644

7,047
39,01846,065(26,355)
19,7109,694,192
920,785
10,462
10,625,439

90,271
8,574
97
98,942509,657
31,999154,948
696,604¥73,585,824

4,746
298
1,443
6,487
$685,220¥ 4,500,000
2,281,906
26,223
115,199
160,541
54,570,594
363,243
62,017,706$ 41,903
21,249
244
1,073
1,495
508,153
3,383
577,500

52,24955,260107,509
62,125,215

486
515
1,001
578,501

4,250,000
4,250,000
2,960,609
11,460,609¥73,585,824

39,57539,57527,569106,719$685,220¥ (thousands)
2004

ASSETS

Current Assets:
Cash and cash equivalents¥ 1,733,337
Accounts receivable—trade
3,803,049
Deferred income taxes (Note 8)
129,490
Designated assets for clearing funds (Note 3)—
Other current assets
190,571
Total Current Assets
5,856,447
Property and Equipment:
Buildings
149,075
Tools and furniture
4,017,025
4,166,100
Less: Accumulated depreciation(2,164,535)
Total Property and Equipment
2,001,565
Intangible Assets, Net:
Software3,625,338
Construction in progress (Software)
6,912,863
Other intangible assets
9,755
Total Intangible Assets
10,547,956
Investment and Other Assets:Long-term refundable lease deposits
424,619
Long-term prepaid expenses
42,927
Deferred income taxes (Note 8)
30,869Total Investment and Other Assets
498,415
Total Assets¥18,904,383

LIABILITIES AND Current Liabilities:
SHAREHOLDERS’
Short-term debt (Note 6)
EQUITY
Accounts payable—trade¥ 5,000,000
1,846,861
644,945
100,675
77,617—
521,687
8,191,785

Income tax payable
Accrued employees’ bonuses
Consumption tax payable
Deposits received for clearing funds
Other current liabilities
Total Current Liabilities
Long-term Liabilities:
Accrued employees’ retirement benefits (Note 7)
32,863
Accrued executives’ retirement benefits
43,170Total Long-term Liabilities
76,033
Total Liabilities
8,267,818
Shareholders’ Equity:
Common stock
Authorized: 10,000 shares
Issued: 8,500 shares
4,250,000
Capital surplus
4,250,000
Retained earnings
2,136,565
Total Shareholders’ Equity
10,636,565
Total Liabilities and Shareholders’ Equity¥18,904,383
The accompanying notes are an integral part of these statements.

19

Consolidated Statement of Income
Japan Securities Depository Center, Inc.
For the years ended March 31, 2004 and 2005

2004

2005

$ (thousands)(Note 4)
2005

Operating Income¥17,124,010¥ 19,003,966$176,962

Operating Expenses
Executives’ compensation
Salaries and bonuses
Severance costs for employees
Executives’ retirement benefits
Maintenance for systems
Outside services
Registration fees
Depreciation
Rent
Advertisement
OthersTotal Operating Expenses
Income from Operations

117,438
1,139,758
13,35024,8104,314,280
2,543,018
1,866,472
2,838,420
237,525
264,327
1,164,279
14,523,677
2,600,333

135,545
1,240,492
26,643
21,4104,871,921
2,688,531
2,302,067
3,923,948
290,398
463,429
1,127,454
17,091,838
1,912,128

1,262
11,552248
199
45,36725,03521,43736,5392,704
4,315
10,499159,157
17,805

19

34

0

—
—
(30,439)—478
77,617(65,616)(33,294)

5
723
(611)
(310)

—
(4,557)——
1,524(33,453)
2,566,880(8,984)(55,038)(192,285)(27,923)588(304,423)
1,607,705

(84)
(513)
(1,791)(260)
6(2,835)
14,970963,539(47,288)¥ 1,650,629

602,519(45,058)¥ 1,050,244

5,610
(419)
9,779

¥ (thousands)

Other Income (Expenses):
Interest income
Operational revenue on the designatedassets for clearing funds
Adjustments for prior year consumption taxes
Interest expenses
Commitment fees
Fees for fund operation of designatedassets for clearing funds
Loss on disposal of property and equipment
Loss on disposal of intangible assets
Cancellation fee for system operations
Others, net
Total
Income before Income Taxes
Income Taxes (Note 8)
Current
Deferred
Net Income

U.S. Dollars(Note 4)Yen

Per Share (Note 11)
Net income — primary
Dividends¥192,579.99
25,000¥ 121,511.06
25,000

8,500

8,500

Weighted average number ofcommon stock shares outstanding (in shares)
The accompanying notes are an integral part of these statements.

20$$1,131.49
232.80Consolidated Statement of Shareholders’ Equity
Japan Securities Depository Center, Inc.
For the years ended March 31, 2004 and 2005
¥ (thousands)
Number ofcommon stock Commonsharesstock

Balance as of March 31, 2003
Net income for the year
Cash dividends
Bonuses to executives
Balance as of March 31, 2004
Net income for the year
Cash dividends
Bonuses to executives
Balance as of March 31, 2005

8,500
—
—
—
8,500
—
—
—
8,500

¥4,250,000———¥4,250,000———¥4,250,000

Additional
paid-in
capital¥4,250,000———¥4,250,000———¥4,250,000

Retainedearnings

Total
shareholders’equity¥ 711,036 ¥ 9,211,036
1,650,629
1,650,629(212,500)(212,500)(12,600)(12,600)¥2,136,565 ¥10,636,565
1,050,244
1,050,244(212,500)(212,500)(13,700)(13,700)¥2,960,609 ¥11,460,609$ (thousands) (Note 4)

Balance as of March 31, 2004
Net income for the year
Cash dividends
Bonuses to executives
Balance as of March 31, 2005

Number ofcommon stock
sharesCommonstock

Additional
paid-in
capitalRetainedearnings

Total
shareholders’equity

8,500
—
—
—
8,500

$39,575———$39,575$39,575———$39,575$19,895
9,779(1,978)(127)$27,569$ 99,045
9,779(1,978)(127)$106,719

The accompanying notes are an integral part of these statements.

21

Consolidated Statement of Cash Flows
Japan Securities Depository Center, Inc.
For the years ended March 31, 2004 and 2005

2005

$ (thousands)(Note 4)
2005

Cash Flows from Operating Activities:
Income before income taxes¥2,566,880
Depreciation
2,838,420
Increase in accrued employees’ bonuses
12,613
Increase in accrued employees’ retirement benefits 10,291
Increase in accrued executives’ retirement benefits 24,810
Interest income(19)Interest expense
30,439Loss on sales of property and equipment
69
Loss on disposal of property and equipment
4,487
Loss on disposal of intangible assets—
Increase in accounts receivable—trade(703,543)
Increase in accounts payable—trade556,142
Decrease in other assets
334,505
Increase in other liabilities
41,020
Others, net(12,597)
Sub-total
5,703,517
Interest and dividends received
19
Interest paid
(33,260)
Income tax paid
(961,297)
Net cash provided by operating activities
4,708,979¥ 1,607,705
3,923,948
14,524
19,386
12,090(34)
65,616—55,038
192,285(253,428)
435,044
3,308
122,028(13,697)
6,183,813
34(64,009)(1,327,274)
4,792,564$ 14,970
36,539
135
180
112
0
611
—
513
1,791
(2,359)
4,051
31
1,136
(128)
57,582
0(596)(12,359)
44,627

Cash Flows from Investing Activities:
Payments for purchase of property, plantand equipment(435,224)
Payments for purchase of intangible assets(4,656,346)
Proceeds from sales of property and equipment
546
Payment of guarantee money deposits received—
Net cash flows used in investing activities (5,091,024)(1,130,647)(3,394,399)—(85,037)(4,610,083)(10,528)(31,608)—(792)(42,928)

5,000,000(3,100,000)( 212,500)

1,000,000(1,500,000)( 212,500)

9,311(13,967)(1,978)1,687,500
1,305,455
427,882¥ 1,733,337(712,500)(530,019)
1,733,337¥ 1,203,318(6,634)(4,935)
16,140$ 11,205¥ (thousands)
2004

Cash Flows from Financing Activities:
Proceeds from short-term debt
Repayment of short-term debt
Cash dividends paid
Net cash flows provided by (used in)financing activities
Net Increase in Cash and Cash Equivalents
Cash and Cash Equivalents at beginning of Year
Cash and Cash Equivalents at End of Year
The accompanying notes are an integral part of these statements.

22Notes to the Consolidated Financial Statements
Japan Securities Depository Center, Inc.

1.
Basis ofPresenting theConsolidated
Financial
Statements

The accompanying consolidated financial statements have been prepared from the accounts maintained by Japan Securities Depository Center, Inc (“the Company”) and its subsidiary in accordance with the provisions set forth in the Securities and Exchange Law and in conformity withaccounting principles and practices generally accepted in Japan, which are different in certain
respects as to application and disclosure requirements of International Finance ReportingStandards. Certain items presented in the consolidated financial statements filed with the Directorof the Kanto Local Finance Bureau in Japan have been reclassified for the convenience of readers
outside Japan.

2.
Summary of
Significant
Accounting
Principles(1) Consolidation
The consolidated financial statements include the accounts of Japan Securities Depository
Center, Inc. (“the Company”) and its wholly-owned subsidiary, JASDEC DVP Clearing
Corporation (hereafter, “JDCC”) which is the only subsidiary of the Company. JDCC uses a
fiscal year ended on March 31, which is the same as that of the Company.
(2) Cash and cash equivalents
Cash and cash equivalents include all highly liquid investments, with original maturities ofthree months or less, which are readily convertible to known amounts of cash and are so near
maturity that they present only an insignificant risk of changes in value because of changes ininterest rates.
(3) Property and equipment
Depreciation for buildings, excluding improvements, is computed on the straight-line method
using the estimated useful lives prescribed by Japanese Corporate Tax Laws. Depreciation forother capital assets is computed on the declining-balance method at the rates based on theestimated useful lives prescribed by such laws.
(4) Software costs
Costs of software for internal use are capitalized and amortized on the straight–line method
over the estimated useful life of 5 years.
(5) Accrued bonuses
Accrued employees’ bonuses represent liabilities estimated as of the balance sheet date.
Bonuses to directors, which are subject to approval at the shareholders’ meeting, areaccounted for as an appropriation of retained earnings.
(6) Severance indemnity benefits
The Company has a severance indemnity plan covering all employees who meet the eligibility
requirements of the Company’s retirement regulations. The Company records accrued
employees’ retirement benefit costs based on the amount that would be payable if all eligible
employees voluntarily terminated their employment with the Company at the balance sheet
date.
Retirement benefits payable to directors and statutory auditors are accrued as accrued
executives’ retirement benefits at the amount computed based on the Company’s internal
rules and regulations on these benefits.
(7) Finance leases
In the normal course of business, the Company enters into lease agreements. Finance leaseagreements, except for those agreements where the ownership of the leased assets is transferred to the Company, are accounted for as operating leases.
(8) Accounting standard for impairment of non-current assets
On August 9, 2002, the Business Accounting Council in Japan issued “Accounting Standard
for Impairment of Non-current Assets”. The standard requires that non-current assets bereviewed for impairment whenever events or changes in circumstances indicate that the carrying

23

Notes to the Consolidated Financial Statements

amount of an assets may not be recoverable. An impairment loss shall be recognized in theincome statement by reducing the carrying amount of impaired assets or a group of assets to
the recoverable amount to be measured as the higher of net selling price and value in use.
The standard shall be effective for fiscal years beginning April 1, 2005. However, earlier adoption is permitted for fiscal years beginning April 1, 2004 and for fiscal years ending between
March 31, 2004 and March 30, 2005. The Company has not yet applied this new standard nor
has it determined the effect of applying it on the Company’s consolidated financial statements.
(9) Consumption taxes
The consumption taxes withheld by the Company and its subsidiary on sales and the consumption taxes paid by the Company and its subsidiary on its purchases of goods and services are not included in the amounts of the relevant accounts in the accompanying
statements of income. The consumption taxes withheld and paid are recorded as an asset or aliability, as the case may be, and the net balance is shown in the balance sheets.
(10) Appropriation of retained earnings
Under the Japanese Commercial Code and the Articles of Incorporation of the Company, theappropriation of retained earnings (including year-end cash dividend payments proposed by
the Board of Directors) must be approved at the shareholders’ meeting, which must be held
within three months of the end of each financial year. The appropriation of retained earnings
reflected in the accompanying consolidated financial statements represents the results ofappropriations which were applicable to the immediately preceding financial year, approvedat the shareholders’ meeting and disposed of during that year. Year-end cash dividends arepaid to shareholders on the shareholders’ register at the end of each financial year.
The payment of bonuses to directors and statutory auditors is made out of retained earnings instead being charged to income for the year, and constitutes a part of the appropriations
cited above.

3.
Assets andIn order to secure the Delivery Versus Payment (“DVP”) for Non-exchange Transaction Deliveries
liabilities held (“NETD”) settlement system, JDCC, a consolidated subsidiary of the Company, receives cash or
for soundsecurities as collateral from the DVP participants whom JDCC officially acknowledge as a party
settlement
system operation who undertakes securities obligations in accordance with the provisions set in JDCC’s general proand management visions in accordance with Article 156, Paragraph 7-1, of the Securities Exchange Law (Law No.

25, 1948).
JDCC manages cash and securities entrusted by the DVP participants as clearing funds
defined in Article 156-11 of the Securities Exchange Law separately from other assets in accordance with Article 7 of the cabinet ordinance related to securities clearing agencies (Cabinet
Ordinance No. 76, 2002).
(1) Participant fund specified assets and participant funds under management
Under the DVP for the NETD settlement system, when JDCC accepts obligations from DVP
participants, the DVP participants involved in the transactions make JDCC responsible forpayment obligations and the content thereof.
JDCC requires each DVP participant to establish a participant fund in excess of the necessaryamount set forth in JDCC’s general provisions to ensure that the respective obligations of DVP
participants are covered. The aggregate amount of participant funds entrusted to JDCC as ofMarch 31, 2005 was ¥15 billion. In the event a DVP participant defaults on the required payment obligations of the DVP for the NETD settlement system, JDCC shall take deposits fromthe participant fund of this DVP participant to fulfill its obligations to other DVP participants.
The participant funds entrusted to JDCC will be managed as money trusts, in line with thestated general provisions of JDCC.
The evaluation technique applied to money trusts will be the present value method for investments with no market value, a process corresponding to that used for other marketable securities.
24

Notes to the Consolidated Financial Statements

Assets and liabilities pertaining to participant funds are expressed as line items for thispurpose, with assets indicated as designated assets for clearing assets, and liabilities indicatedas deposits received for clearing funds.
(2) Collateral securities
Under the DVP for the NETD settlement system, DVP participants are able to entrust marketable securities listed in JDCC’s general provisions (hereafter, “collateral securities”) toensure that obligations to JDCC are met.
When a DVP participant fails to meet its obligations to JDCC, JDCC is authorized to dispose of the entrusted collateral securities by selling them in securities markets or throughother methods deemed appropriate by JDCC.
As of March 31, 2005, the market value of collateral securities entrusted to JDCC was¥128,125,806 thousand.

4.
US Dollar
Amounts

Amounts in U.S. dollars are included solely for the convenience of readers outside Japan. The rateof ¥107.39=U.S. $1, the rate of exchange as of March 31, 2005, has been used in translation. The
inclusion of such amounts is not intended to imply that Japanese yen have been or could be readily converted, realized or settled in U.S. dollars at this or any other rate.

5.
Lease
Transactions

Finance lease transactions, other than those in which the ownership of the leased asset is transferred to the lessee, are accounted for as operating leases. Certain key information (in equivalentdata) on such lease contracts of the Company for the periods ended March 31, 2004 and 2005 is
as follows:¥ (thousands)

Tools and furniture:
Acquisition cost
Accumulated depreciation
Net book value

2004

2005

¥268,933(48,108)¥220,825¥265,068(97,836)¥167,232$ (thousands)
2005$2,468(911)$1,557The scheduled maturities of future lease payments, including the portion of interest thereon, onsuch lease contracts as of March 31, 2004 and 2005 are as follow:¥ (thousands)

Due within one year
Due over one year
Total

2004

2005

$ (thousands)
2005¥ 52,660
169,597¥222,257¥ 52,469
117,128¥169,597

$ 488
1,091
$1,579Finance lease charges as well as depreciation and interest amounts (in equivalent data) for
the years ended March 31, 2004 and 2005 are as follow:¥ (thousands)

Finance lease charges
Depreciation (in equivalent data)
Interest (in equivalent data)

2004

2005

¥31,697
30,4352,135¥55,80153,5933,140$ (thousands)
2005

$519
499
29

(Note) Methods applied in computation of the equivalent data are as follows:
Depreciation: Straight-line method with zero residual value over the lease contract period
Interest:
Computed as the difference between the lease obligations and the acquisition cost, allocated for thelease contract period based on the interest rate method.

25

Notes to the Consolidated Financial Statements

6.
Short-Term
Debts

Short-term debts at March 31, 2005 comprised loans from banks with a weighted average interest
rate of 1.675% per annum.

7.
AccruedSeverance
Indemnities for
Employees

Accrued employees’ retirement benefits at March 31, 2005 represented the amount that would bepayable for the Company if all eligible employees voluntarily terminated their employment at thebalance sheet date. Severance costs for employees charged to income for the year ended March 31,
2005 amounted to 26,643 thousand yen (248 thousand U.S. dollars). Severance costs for employees charged to income for the year ended March 31, 2004 amounted to 13,350 thousand yen.

8.
Income Taxes

The Company and its subsidiary are subject to a number of different income taxes which, in theaggregate, indicate a nominal statutory tax rate in Japan of approximately 40.6% for the period
ended March 31, 2005. Reconciliation between the nominal statutory income tax rate and theeffective income tax rate in the consolidated statements of income for the years ended March 31,
2004 and 2005 is as follows;
Nominal statutory income tax rate
Adjustments:
Permanent non-deductible difference
Equal proportion of inhabitant taxes
Income tax credit on investment in IT
Other, net
Effective income tax rate

2004

2005

42.0%

40.6%

0.2
0.2
(6.8)
0.1
35.7%

0.3
0.3
(6.9)
0.4
34.7%

¥ (thousands)

Deferred tax assets:
Accrued bonuses
Enterprise tax payable
Unpaid social insurance premiums
Business facility tax
Tax loss carried forwards
Accrued retirement benefits to employees
Accrued retirement benefits to executives
Excess depreciation of fixed assets
Excess deferred asset depreciation
for tax purposes
Other
Deferred tax assets$ (thousands)
2005

2004

2005

¥ 41,175
72,408
5,465
2,334
8,108
13,342
17,527—¥ 46,936(5,421)
6,275
2,681
—
21,21322,43588,624

$ 437
(50)
58
25
—
198
209
825

—
—
¥160,359

22,572103¥205,418210
0$1,912

9.
Segment
Information(1) Business Segment
The Company operates a single business unit, the central securities custody and book-entry
transfer system.
(2) Geographic Information
The Company has no overseas consolidated subsidiaries and no overseas branches for theyears ended March 31, 2004 and 2005.
(3) Overseas sales
The Company does not have any overseas sales for the years ended March 31, 2004 and 2005.

26

Notes to the Consolidated Financial Statements

10.
Related Party
Transactions

The material transactions of the Company with related companies or individuals, excluding transactions with the consolidated subsidiary that are excluded from the consolidated financial statements, and other than those disclosed elsewhere in these financial statements, for the years ended
March 31, 2004 and 2005 are as follows:(1) Directors
As of March 31, 2004
TitlesName

Director

Director

Toshiji Shimizu(Note 1)

Masayuki Tanaka(in thousand yen)Ending balance

Business

Transactions

AmountAccount

Director of the Company
Director of Japan Securities
Settlement & Custody, Inc

Outsourcing(Note 1)

1,728,381

Account
payable-trade65,113Use ofequipment(Note 1)
Repayment ofborrowings
Interest on
borrowings(Note 2)
Short term
borrowing
Interest(Note 2)51——

1,330,000——

10,302——2,140,000

Short-term
deptPrepaidinterest

2,140,000

Director of the Company
Senior Managing
Director of The Bank ofTokyo–Mitsubishi, Ltd

2,749

6,383

(Notes) 1. The transaction amounts above exclude consumption tax. However, ending balance includes consumption tax.
2. Terms and Conditions(1) These amounts include transactions with Japan Securities Settlement & Custody, Inc (JSSC) for the nine month period from July
2003 because Toshiji Shimizu was appointed representative director of JSSC at June 19, 2003. JASDEC outsources its operations to
JSSC as needed.
(2) The terms and conditions of the above transactions are on an arm’s-length basis.
(3) Interest on borrowing is determined based on the market interest rate from banks.
As of March 31, 2005
TitlesName

Director

Director

Toshitugu Shimizu(Note1)

Fumiyuki Akikusa(in thousand yen)Ending balance

Business

Transactions

AmountAccount

Director of the Company
Director of Japan Securities
Settlement & Custody, Inc

Outsourcing(Note 1)

2,499,104

Account
payable-trade337,704

Use ofequipment(Note 1)
Director of the Company
Repayment ofManaging Director ofborrowings
The Bank of Tokyo–Mitsubishi, Interest on
Ltdborrowings(Note 2)
Short term
borrowing
Interest(Note 2)71——

645,000

—

—

2,693

—

—

430,000

Short-term
deptPrepaidinterest

1,925,000

315

5,918

(Notes) 1. The transaction amounts above exclude consumption tax. However, ending balance includes consumption tax.
2. Terms and Conditions(1) These amounts include transactions with Japan Securities Settlement & Custody, Inc (JSSC) for the period from April 1, 2004 to
March 31, 2005.
(2) The terms and conditions of the above transactions are on an arm’s-length basis.
(3) Interest on borrowing is determined based on the market interest rate from banks.

27

Notes to the Consolidated Financial Statements(2) Principle shareholder and its subsidiaries
As of March 31, 2004

(in thousand yen)

Principal
business

Relationship
Percentage
Directors Businessof ownership holding
relationshipwith voting
concurrent
right
positionsNames of companies

Address

Capital

Tosho System
Service Co.
(Subsidiary ofother affiliates)

Koto-ku,Tokyo

100,000 Design,development ofsoftware——Japan Securities
Clearing Corporation(Subsidiary ofother affiliates)
Japan Securities
Settlement &Custody, Inc(Subsidiary ofother affiliates)

Chuo-ku, 1,700,000 ClearingTokyo
securities

—

Three

Chuo-ku,
Tokyo

—

One

300,000 Custody &settlementof securities

Transactions

Amount oftransactions

Endingbalance

Descriptions

Purchase of Outsourcing
softwarePurchase ofsoftwareCommission Commission
incomeincome1,359,083

Trade account 148,426
payable1,626,653 Other account 67,200
payable2,845,288 Trade account 556,184
receivable

Outsourcing Outsourcing

1,728,321

Trade accountpayable51 —Use ofequipment

65,113—(Notes) 1. These transaction amounts above exclude consumption tax. However, ending balance includes consumption tax.
2. The terms and conditions of the above transactions are on an arm’s-length basis.
As of March 31, 2005

(in thousand yen)

Principal
business

Relationship
Percentage
Directors Businessof ownership holding
relationshipwith voting
concurrent
right
positionsNames of companies

Address

Capital

Tosho System
Service Co.
(Subsidiary ofother affiliates)

Koto-ku,Tokyo

100,000 Design,development ofsoftware——Japan Securities
Clearing Corporation(Subsidiary ofother affiliates)
Japan Securities
Settlement &Custody, Inc(Subsidiary ofother affiliates)

Chuo-ku, 1,700,000 ClearingTokyo
securities

—

Three

Chuo-ku,
Tokyo

—

One

300,000 Custody &settlementof securities

Transactions

Amount oftransactions

Descriptions

Endingbalance

Purchase of Outsourcing
softwarePurchase ofsoftwareCommission Commission
incomeincome1,325,628

Trade account 123,467
payable942,028 Other account 151,438
payable3,536,034 Trade account 647,525
receivable

Outsourcing Outsourcing

2,499,104Trade account 337,704
payable71 ——Use ofequipment(Notes) 1. These transaction amounts above exclude consumption tax. However, ending balance includes consumption tax.
2. The terms and conditions of the above transactions are on an arm’s-length basis.

11.
Net Income
per Share

The basis for calculating earnings per share for the years ended March 31, 2004 and 2005 are as follows:¥ (thousands)
2004
2005

Net income as reported in the consolidated statements of income ¥1,650,629
Directors’ bonuses through the appropriation of retained earnings
13,700Net income pertaining to common stock shareholders¥1,636,929
Weighted average number of common stock shares
outstanding (in shares)
8,500$ (thousands)
2005¥1,050,244
17,400¥1,032,844$9,779162$9,617

8,500

—

12.
Subsequent
EventsAppropriations of retained earnings:
Appropriations of retained earnings are recorded in the accounts only after shareholders’ approvalhas been obtained. The following appropriation of retained earnings of the Company for the year
ended March 31, 2005 was approved at the Ordinary General Shareholders Meeting held on June21, 2005:
Cash dividends
Bonuses to executives¥ (thousands)$ (thousands)¥212,500
17,400$1,979162(Including bonuses to statutory auditors amounting to 2,900 thousand yen (27 thousand U.S. dollars))

28