Miura Co., Ltd. and
its Consolidated Subsidiaries
Consolidated Financial Statements for theYear Ended March 31, 2013,
and Independent Auditor's ReportMiura Co., Ltd. and its Consolidated Subsidiaries
Consolidated Balance Sheet
March 31, 2013ASSETS
CURRENT ASSETS:
Cash and cash equivalents (Note 18)¥
Short-term investments (Notes 4 and 18)
Receivables (Note 18):
Trade notes
Trade accounts
Unconsolidated subsidiaries and associated companies (Note 6)
Other
Allowance for doubtful accounts
Inventories (Note 5)
Lease investment assets (Notes 17 and 18)
Deferred tax assets (Note 13)
Prepaid expenses and otherTotal current assets

Millions of Yen
2013
2012

Thousands of
U.S. Dollars(Note 1)
2013

13,257
11,631

14,317
11,875$ 140,957
123,669

7,519
13,945
315
191
(78 )
9,651
2,308
2,159
336

7,190
13,936557
103(164 )
9,120
2,541
2,169
292

79,947148,272
3,349
2,031(829 )
102,616
24,54022,956
3,572

61,234

61,936

651,080¥

Total current liabilities
PROPERTY, PLANT AND EQUIPMENT:Land
Buildings and structures
Machinery and equipment (Note 17)
Tools, furniture and fixtures (Note 17)
Construction in progress
Total
Accumulated depreciation

11,221
27,578
6,640
6,493
1,847
53,779(21,744 )10,08825,706
6,143
6,296
194
48,427(20,111 )

119,309293,227
70,601
69,038
19,638571,813(231,196 )Net property, plant and equipment

32,03528,316

340,617

9,480

8,502

100,797

1,341
674
456
16
705

1,594
644
558
284
793

14,258
7,166
4,849
170
7,496

12,672

12,375

134,736

INVESTMENTS AND OTHER ASSETS:
Investment securities (Notes 8 and 18)
Investments in unconsolidated subsidiaries andassociated companies
Deposits
Prepaid pension costs (Note 10)
Deferred tax assets (Note 13)
Other
Total investments and other assets

LONG-TERM LIABILITIES:Long-term borrowings (Note 9)
Liability for retirement benefits (Note 10)
Deferred tax liabilities (Note 13)
Other
Total long-term liabilities
Total liabilities
EQUITY (Notes 11, 12 and 22):
Common stock—authorized, 100,000,000 shares;
issued, 41,763,704 shares in 2013 and 2012
Capital surplus
Stock acquisition rights
Retained earnings
Treasury stock—at cost, 4,276,831 shares in 2013 and3,324,290 shares in 2012
Accumulated other comprehensive gain (loss):
Unrealized gain (loss) on available-for-sale securities
Foreign currency translation adjustments
Total
Minority interests
Total equity

TOTAL¥ 105,941¥ 102,627

Millions of Yen
2013
2012

LIABILITIES AND EQUITYCURRENT LIABILITIES:
Short-term borrowings (Note 9)
Payables (Note 18):
Trade notes
Trade accounts
Unconsolidated subsidiaries and associated companies
Other
Income taxes payable (Note 18)
Advances received from customers
Accrued expenses
Product warranty provision
Provision for environmental measures
Asset retirement obligations
Other current liabilities

TOTAL$ 1,126,433

See notes to consolidated financial statements.

-1-

Thousands of
U.S. Dollars(Note 1)
2013

¥

35

¥

33

$

372

381
1,821
48
2,313
1,747
6,131
5,328
512
11
7
690

313
1,988
52
2,343
2,297
5,709
5,340
500
11
7
701

4,051
19,362510
24,593
18,57565,18956,651
5,444
117
74
7,337

19,024

19,294202,275

9
234
117
527

12
650
6
34

96
2,488
1,244
5,603

887

702

9,431

19,911

19,996

211,706

9,544
10,08853
73,737

9,544
10,08870,046

101,478
107,262564
784,019(7,057 )(5,055 )(75,035 )333(682 )
86,01614(233 )(1,770 )82,62011

3,541(7,251 )914,578
149

86,03082,631

914,727¥ 105,941¥ 102,627$ 1,126,433

Miura Co., Ltd. and its Consolidated Subsidiaries
Consolidated Statement of Income
Year Ended March 31, 2013
Thousands of
U.S. Dollars(Note 1)
2013

Millions of Yen
2013
2012
NET SALES (Note 15)¥ 78,157¥ 74,594$ 831,015

45,95044,830488,570

32,207

29,764342,445

24,76523,751

263,317

7,442

6,013

79,128293285(189 )
382(134 )
47

3,115

COST OF SALES (Notes 10 and 15)
Gross profit
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES(Notes 10, 14 and 15)
Operating income
OTHER INCOME (EXPENSES):Interest and dividend income
Loss on sales of marketable and investment securities—net
Rent on real estate (Note 15)
Foreign exchange gain (loss)—net
Settlement received
Gain on abolishment of retirement benefit plan
Impairment loss of long-lived assets (Note 7)
Other—net (Note 16)

385
347

4,094
3,690

302
(395 )
368

354

3,211
(4,200 )
3,913

1,300

745

13,823

INCOME BEFORE INCOME TAXES AND MINORITY
INTERESTS

8,742

6,758

92,951

INCOME TAXES (Note 13):
Current
Deferred

3,446
107

3,605
(422 )

36,6401,138

Total income taxes

3,553

3,183

37,778NET INCOME BEFORE MINORITY INTERESTS

5,189

3,575

55,173MINORITY INTERESTS IN NET LOSS (INCOME)

1

(2 )

11

3,577

$ 55,162

Other income—net

NET INCOME

¥

5,188

¥
Yen

PER SHARE OF COMMON STOCK (Note 21):
Basic net income
Diluted net income
Cash dividends applicable to the year

¥ 136.14
136.0341.00

See notes to consolidated financial statements.

-2-

U.S. Dollars
¥

93.06
40.00

$

1.45
1.45
0.44

Miura Co., Ltd. and its Consolidated Subsidiaries
Consolidated Statement of Comprehensive Income
Year Ended March 31, 2013

Millions of Yen
2013
2012
NET INCOME BEFORE MINORITY INTERESTS¥OTHER COMPREHENSIVE INCOME (LOSS) (Note 19):
Unrealized gain on available-for-sale securities
Foreign currency translation adjustments
Total other comprehensive income (loss)
COMPREHENSIVE INCOME

5,189

¥

566
1,091
1,657

3,575

Thousands of
U.S. Dollars(Note 1)
2013
$

110
(495 )(385 )

55,173

6,018
11,60017,618

¥

6,846

¥

3,190

$

72,791TOTAL COMPREHENSIVE INCOME ATTRIBUTABLE TO:
Owners of the Company¥
Minority interests

6,842
4

¥

3,188
2

$

72,74843

See notes to consolidated financial statements.

-3-

Miura Co., Ltd. and its Consolidated Subsidiaries
Consolidated Statement of Changes in Equity
Year Ended March 31, 2013
Thousands

BALANCE, APRIL 1, 2011

Millions of Yen

IssuedNumber of
Shares ofCommonStockTreasury
Stock41,764(3,324 )CommonStockCapitalSurplus¥¥ 10,088

9,544

Stock
Acquisition
Rights

Net income
Cash dividends, ¥40.00 per share
Purchase of treasury stock
Exercise of stock options
Change in scope of consolidation
Transfer of loss on disposal of treasury stock
Net change in the year
BALANCE, MARCH 31, 2012

TreasuryStock¥ 68,458¥(5,055 )¥ (344 )¥(1,271 )¥ 81,420(451 )
111(3,324 )¥9,544¥ 10,088¥ 70,046¥(5,055 )¥ (233 )¥(499 )(388 )(1,770 )¥ 82,620

1,088

5,188
(1,538 )(2,002 )41
1,707(682 )¥ 86,016

5,188(1,538 )(953 )(2,002 )41

41,764(4,277 )¥9,544¥ 10,088

¥

53

¥

53

566
¥ 73,737¥(7,057 )¥Total
Equity13¥ 81,433

3,577(1,538 )(1 )1(451 )(1 )
1

41,764

Minority
Interests

Total

3,577
(1,538 )Net income
Cash dividends, ¥40.00 per share
Purchase of treasury stock
Change in scope of consolidation
Net change in the year
BALANCE, MARCH 31, 2013

Retained
Earnings

Accumulated othercomprehensive gain (loss)
Unrealized
Gain (Loss) on
Foreign
AvailableCurrency
for-saleTranslation
Securities
Adjustments

¥

333

¥

3,577
(1,538 )(1 )1(451 )¥¥(2 )(390 )

11¥ 82,631

3

5,188(1,538 )(2,002 )
41
1,710

14

¥ 86,030

Thousands of U.S. Dollars (Note 1)

BALANCE, MARCH 31, 2012

CommonStockCapitalSurplus$ 101,478$ 107,262

Net income
Cash dividends, $0.43 per share
Purchase of treasury stock
Change in scope of consolidation
Net change in the year
BALANCE, MARCH 31, 2013

Stock
Acquisition
RightsRetained
Earnings

TreasuryStock$ 744,774$ (53,748 )Accumulated othercomprehensive gain (loss)
Unrealized
Foreign
Gain (Loss) on
Currency
Available-for-saleTranslation
Securities
Adjustments$(2,477 )$ (18,819 )$ 878,470

11,56855,162(16,353 )(21,287 )436
18,150(7,251 )$ 914,578

55,162(16,353 )(21,287 )436$ 101,478$ 107,262

$

564

$

564

6,018
$ 784,019

See notes to consolidated financial statements-4-$ (75,035 )

$

3,541

Total

$

Minority
Interests
$

117

Total
Equity$55,162(16,353 )(21,287 )436
18,18232$

149

878,587$914,727

Miura Co., Ltd. and its Consolidated Subsidiaries
Consolidated Statement of Cash Flows
Year Ended March 31, 2013

Millions of Yen
2013
2012
OPERATING ACTIVITIES:
Income before income taxes and minority interests¥
Adjustments for:
Income taxes—paidDepreciation and amortization
Impairment loss of long-lived assets
Decrease in prepaid pension costs(Decrease) increase in allowance for doubtful accounts(Decrease) increase in provision for accrued bonuses
to employees
Decrease in provision for environmental measures
Stock based compensation expense
Loss on disposal and sale of property, plant and equipment
Gain on abolishment of retirement benefit plan
Foreign exchange (gain) loss
Loss on sales of investment securities
Decrease (increase) in receivables
Increase in inventories(Decrease) increase in payables
Other—net
Total adjustments
Net cash provided by operating activities
INVESTING ACTIVITIES:
Purchase of property, plant and equipment
Proceeds from sales of property, plant and equipment
Purchase of marketable securities
Proceeds from sales and redemption of marketable securities
Purchase of investment securities
Proceeds from sales and redemption of investment securities
Payment for loans
Proceeds from collection of loans
Proceeds from cancellation of cash in trust
Payment for investment in unconsolidated subsidiaries
Increase in short-term investments—net
Other—net
Net cash (used in) provided by investing activities
FORWARD

¥

8,742

¥

Thousands of
U.S. Dollars(Note 1)
2013

6,758

$ 92,951(4,017 )
2,013
395
404
(100 )(2,530 )2,041
231(42,711 )21,4044,200
4,296(1,063 )(109 )

778
(7 )

25

53
24
(302 )(98 )103(1,159 )563
255(3,211 )(1,042 )496(153 )(574 )
417(1,551 )145
189(3,220 )
(22 )
228
1,449
(590 )

5,274(1,627 )(6,103 )4,433(16,491 )

7,191

6,168

76,460(5,386 )39(18,200 )19,300(1,422 )
1,306
(57 )
50

(57,267 )415(193,514 )
205,210(15,120 )13,886(606 )
532(1,093 )(532 )(118 )(1,965 )9(19,900 )25,403(2,099 )
1,477
(50 )
50
3
(1,051 )(1,175 )105(6,113 )807(64,997 )6,975$ 11,463

1,078¥(11,621 )(5,657 )(1,255 )(Continued)-5-

Miura Co., Ltd. and its Consolidated Subsidiaries
Consolidated Statement of Cash Flows
Year Ended March 31, 2013

Millions of Yen
2013
2012
FORWARD¥

FINANCING ACTIVITIES:
Increase in short-term borrowings—net
Repayments of lease obligations
Purchase of treasury stock
Proceeds from sale of treasury stock
Cash dividends paid

1,078

¥

6,975

Thousands of
U.S. Dollars(Note 1)
2013
$ 11,463(1,535 )

10
(6 )
(1 )
1
(1,536 )Net cash used in financing activities(3,543 )(1,532 )(37,672 )FOREIGN CURRENCY TRANSLATION ADJUSTMENTS
ON CASH AND CASH EQUIVALENTS

233

(46 )

2,477

NET (DECREASE) INCREASE IN CASH AND CASH
EQUIVALENTS(2,232 )5,397(23,732 )CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR

14,3178,830

152,228

INCREASE IN CASH AND CASH EQUIVALENTSRESULTING FROM CHANGE IN SCOPE OF
CONSOLIDATION

1,172

90

12,461

CASH AND CASH EQUIVALENTS, END OF YEAR

¥ 13,257¥ 14,317$ 140,957(6 )(2,002 )(64 )(21,287 )(16,321 )See notes to consolidated financial statements.
(Concluded)-6-

Miura Co., Ltd. and its Consolidated Subsidiaries
Notes to Consolidated Financial Statements
Year Ended March 31, 2013
1.

BASIS OF PRESENTING CONSOLIDATED FINANCIAL STATEMENTS
The accompanying consolidated financial statements of Miura Co., Ltd. (the "Company") and consolidated
subsidiaries 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 accordance with accounting
principles generally accepted in Japan ("Japanese GAAP"), which are different in certain respects as toapplication and disclosure requirements of International Financial Reporting Standards.
In preparing these consolidated financial statements, certain reclassifications and rearrangements have been
made to the consolidated financial statements issued domestically in order to present them in a form which
is more familiar to readers outside Japan. In addition, certain reclassifications have been made in the 2012
consolidated financial statements to conform to the classifications used in 2013.
The consolidated financial statements are stated in Japanese yen, the currency of the country in which theCompany is incorporated and operates. The translations of Japanese yen amounts into U.S. dollar amounts
are included solely for the convenience of readers outside Japan and have been made at the rate of ¥94.05
to U.S.$1, the approximate rate of exchange at March 31, 2013. Such translations should not be construed
as representations that the Japanese yen amounts could be converted into U.S. dollars at that or any other
rate.

2.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIESa.

Principles of Consolidation—The consolidated financial statements as of March 31, 2013 include theaccounts of the Company and its fourteen (twelve in 2012) significant subsidiaries (collectively, the"Companies").
Miura South East Asia Pte. Ltd. and PT. Miura Indonesia were included into the scope of
consolidation at the beginning of the year ended March 31, 2013 due to increased materiality.
Under the control or influence concept, those companies in which the Company, directly or indirectly,
is able to exercise control over operations are fully consolidated, and those companies over which theCompanies have the ability to exercise significant influence are accounted for by the equity method.
Investments in five (six in 2012) unconsolidated subsidiaries and three (two in 2012) associatedcompanies are stated at cost. If the equity method had been applied to account for investments in thesecompanies, the effect on the accompanying consolidated financial statements would not be material.
All significant intercompany balances and transactions have been eliminated in consolidation. All
material unrealized profit included in assets resulting from transactions among the Companies iseliminated.
Eight consolidated subsidiaries use a fiscal year ending on December 31, which is different from theCompany's fiscal year. The consolidated financial statements include the financial statements of thesesubsidiaries for their fiscal year after making appropriate adjustments for significant intercompany
transactions during the period from their fiscal year-end to the date of the consolidated financial
statements.

b.

Cash Equivalents—Cash equivalents are short-term investments that are readily convertible into cash
and that are exposed to insignificant risk of changes in value.
Cash equivalents include time deposits and certificates of deposit, all of which mature or become due
within three months of the date of acquisition.

c.

Short-term Investments—Short-term investments consist of time deposits which mature in more than
three months from the date of acquisition, negotiable certificate of deposit and trust funds.

-7-

d.

Inventories— Inventories are stated at cost, determined by the following method. (Balance sheet
value is to be calculated using the devaluating book value method based on decreases in profitability.)
・Merchandise and raw materials ― principally by the average method・Finished products, semi-finished products and work-in-process― principally by the specific identification method
・Supplies ― principally by the last purchase cost methode.

Marketable and Investment Securities—Marketable and investment securities are classified andaccounted for, depending on management's intent, as follows:(1) Held-to-maturity debt securities, which are expected to be held to maturity with the positive
intent and ability to hold to maturity, are reported at amortized cost.
(2) Available-for-sale securities are reported at fair value, with unrealized gains and losses, net of
applicable taxes, reported in a separate component of equity.
Non-marketable available-for-sale securities are stated at cost determined by the moving-averagemethod. For other-than-temporary declines in fair value, investment securities are reduced to net
realizable value by a charge to income.

f.

Property, Plant and Equipment—Property, plant and equipment are stated at cost. Depreciation iscomputed by the declining-balance method over the estimated useful lives of the assets, while thestraight-line method is applied to buildings, excluding structures (e.g., facilities for water supply anddrainage, air conditioning units and electricity), which were acquired after April 1, 1998. Machineryand equipment held for lease are depreciated by the straight-line method over the respective lease
periods.
The estimated useful lives are principally as follows:
Buildings and structures
15 to 65 years
Machinery and equipment (excluding leases)
6 to 12 years
According to the revised Corporation Tax Law, the Company and domestic consolidated subsidiaries
changed the depreciation method for tangible fixed assets which are acquired after April 1, 2012. As aresult, the depreciation for the fiscal year end March 31, 2013, decreased by ¥25 million ($266
thousand), and operating income and income before income taxes and minority interests increased by¥25 million ($266 thousand), as compared to the conventional method.

g.

Long-lived Assets —The Companies review their long-lived assets for impairment whenever events orchanges in circumstance indicate the carrying amount of an asset or asset group may not berecoverable. An impairment loss would be recognized if the carrying amount of an asset or asset groupexceeds the sum of the undiscounted future cash flows expected to result from the continued use andeventual disposition of the asset or asset group. The impairment loss would be measured as theamount by which the carrying amount of the asset exceeds its recoverable amount, which is the higherof the discounted cash flows from the continued use and eventual disposition of the asset or the net
selling price at disposition.

h.

Allowance for Doubtful Accounts—The allowance for doubtful accounts is stated in amounts
considered to be appropriate based on the Companies' past credit loss experience and an evaluation ofpotential losses in the receivables outstanding.

i.

Provision for environmental measures—To provide for the future expenditures on environmental
protection (disposal cost of polychlorinated biphenyls waste), the estimated amount is recorded at theend of the fiscal year.

j.

Product warranty provision—Product warranty provision is provided to cover the cost of all services
anticipated to be incurred during the entire warranty period and based on past experience.

-8-

k.

Employees' Retirement and Pension Plans—The Company and its domestic subsidiaries havenon-contributory funded pension plans covering substantially all of their employees.
Three foreign subsidiaries in Korea and Indonesia have unfunded retirement plans covering
substantially all of their employees.
The liability for employees' retirement benefits is based on the projected benefit obligations and plan
assets at the consolidated balance sheet date. The net periodic benefit costs, based on an actuarial
computation of current and future employee benefits, are charged to income.

l.

Retirement Allowances for Directors and Corporate Auditors—Directors and corporate auditors are
generally entitled to receive lump-sum payments based on their compensation at the time of retirement
and years of service when they leave the Companies, subject to the approval by the shareholders.
The annual provision for severance payments is calculated to state the severance liability at theamount that would be payable if all directors and corporate auditors were to retire at each consolidatedbalance sheet date. Accrued provisions are not funded.

m.

Advances Received from Customers—The Companies provide various repair and maintenanceservices to their customers under three-year contracts. The Companies receive advances from
customers for the full contract cost and recognize revenues on a straight-line basis over the contract
period.

n.

Stock Options—The accounting standard for stock options requires companies to measure the cost of
employee stock options based on the fair value at the date of grant and recognize compensation
expense over the vesting period as consideration for receiving goods or services. The standard also
requires companies to account for stock options granted to non-employees based on the fair value ofeither the stock option or the goods or services received. In the balance sheet, the stock option ispresented as a stock acquisition right as a separate component of equity until exercised. The standard
covers equity-settled, share-based payment transactions, but does not cover cash-settled, share-based
payment transactions. In addition, the standard allows unlisted companies to measure options at theirintrinsic value if they cannot reliably estimate fair value.

o.

Research and Development Costs―Research and development costs are charged to income as
incurred.

p.

Leases―The Company leases certain assets produced as a lessor and the Companies lease certain
equipments as lessees.
Lessor:All finance leases that are not deemed to transfer ownership of the leased property to the lessee arerecognized as lease investment assets. Sales and cost of sales are recorded upon receipt of lease
revenue.
Lessee:All finance lease transactions are capitalized to recognize lease assets and lease obligations in thebalance sheet. Lease assets are included in “Machinery and equipment” and “Tool, furniture andfixtures”, and lease obligations are included in “Short-term borrowings” and “Long-term borrowings”,
as such amounts are considered immaterial.

q.

Income Taxes—The provision for income taxes is computed based on the pretax income included in
the consolidated statement of income. The asset and liability approach is used to recognize deferred
tax assets and liabilities for the expected future tax consequences of temporary differences between
the carrying amounts and the tax bases of assets and liabilities. Deferred taxes are measured byapplying currently enacted tax laws to the temporary differences.

r.

Foreign Currency Transactions—All short-term and long-term monetary receivables and payables
denominated in foreign currencies are translated into Japanese yen at the exchange rates at theconsolidated balance sheet date. The foreign exchange gains and losses from translation arerecognized in the consolidated statement of income to the extent that they are not hedged by forward
exchange contracts.

-9-

s.

Foreign Currency Financial Statements—The balance sheet accounts of the consolidated foreignsubsidiaries are translated into Japanese yen at the current exchange rate as of the balance sheet date
except for equity, which is translated at the historical rate.
Differences arising from such translation are shown as "Foreign currency translation adjustments" in a
separate component of equity. Revenue and expense accounts of consolidated foreign subsidiaries aretranslated into yen at the average exchange rate.

t.

Per Share Information—Basic net income per share is computed by dividing net income available tocommon shareholders by the weighted-average number of common shares outstanding for the period,
retroactively adjusted for stock splits.
Diluted net income per share reflects the potential dilution that could occur if stock options were
exercised. Diluted net income per share of common stock assumes full conversion of the outstanding
stock options at the beginning of the year.
Cash dividends per share shown in the accompanying consolidated statement of income represent cash
dividends, including semi-annual cash dividends, applicable to the income of the respective years.

u.

New Accounting Pronouncements
Accounting Standard for Retirement Benefits—On May 17, 2012, the ASBJ issued ASBJ Statement
No. 26, "Accounting Standard for Retirement Benefits" and ASBJ Guidance No. 25, "Guidance on
Accounting Standard for Retirement Benefits," which replaced the Accounting Standard for
Retirement Benefits that had been issued by the Business Accounting Council in 1998 with aneffective date of April 1, 2000, and the other related practical guidance, and followed by partial
amendments from time to time through 2009.
Major changes are as follows:(1) Treatment in the balance sheet
Under the current requirements, actuarial gains and losses and past service costs that are yet to berecognized in profit or loss are not recognized in the balance sheet, and the difference between
retirement benefit obligations and plan assets (hereinafter, "deficit or surplus"), adjusted by suchunrecognized amounts, is recognized as a liability or asset.
Under the revised accounting standard, actuarial gains and losses and past service costs that are
yet to be recognized in profit or loss shall be recognized within equity (accumulated othercomprehensive income), after adjusting for tax effects, and any resulting deficit or surplus shallbe recognized as a liability (liability for retirement benefits) or asset (asset for retirement
benefits).
(2) Treatment in the statement of income and the statement of comprehensive income
The revised accounting standard does not change how to recognize actuarial gains and losses andpast service costs in profit or loss. Those amounts would be recognized in profit or loss over acertain period no longer than the expected average remaining working lives of the employees.
However, actuarial gains and losses and past service costs that arose in the current period andhave not yet been recognized in profit or loss shall be included in other comprehensive income
and actuarial gains and losses and past service costs that were recognized in other comprehensive
income in prior periods and then recognized in profit or loss in the current period shall be treatedas reclassification adjustments.
(3)

Amendments relating to the method of attributing expected benefit to periods and relating to thediscount rate and expected future salary increases
The revised accounting standard also made certain amendments relating to the method of
attributing expected benefit to periods and relating to the discount rate and expected future salary
increases.

- 10 -

This accounting standard and the guidance for (1) and (2) above are effective for the end of annual
periods beginning on or after April 1, 2013, and for (3) above are effective for the beginning of annual
periods beginning on or after April 1, 2014, or for the beginning of annual periods beginning on orafter April 1, 2015, subject to certain disclosure in March 2015, both with earlier application being
permitted from the beginning of annual periods beginning on or after April 1, 2013. However, noretrospective application of this accounting standard to consolidated financial statements in priorperiods is required.
The Company expects to apply the revised accounting standard for (1) and (2) above from the end of
the annual period beginning on April 1, 2013, and for (3) above from the beginning of the annual
period beginning on April 1, 2014, and is in the process of measuring the effects of applying therevised accounting standard in future applicable periods.

3.

CHANGE IN PRESENTATION
Prior to April 1, 2012, the increase/decrease in prepaid pension costs was included in “other―net” of theoperating activities section of the consolidated statement of cash flows. Since the amount increased
significantly during this fiscal year ended March 31, 2013, this amount is disclosed separately in theoperating activities section of the consolidated statement of cash flows for the year ended of March 31,
2013. The amount included in “other―net” for the year ended March 31, 2012, was ¥231 million.

4.

SHORT-TERM INVESTMENTS
Short-term investments at March 31, 2013 and 2012, consisted of the following:

Millions of Yen
2013
2012
Time deposit
Negotiable certificate of deposit
Other
Total

5.

¥

5,528
6,102
1
¥ 11,631

¥

4,673
7,202

¥ 11,875

Thousands of
U.S. Dollars
2013$ 58,777
64,88111$ 123,669

INVENTORIESInventories at March 31, 2013 and 2012, consisted of the following:

Millions of Yen
2013
2012
Finished products and merchandiseWork-in-process
Raw materials and supplies
Total

6.

¥

¥

3,357
1,753
4,541
9,651

¥

¥

3,146
1,776
4,198
9,120

Thousands of
U.S. Dollars
2013$ 35,694
18,63948,283$ 102,616

RECEIVABLES FROM UNCONSOLIDATED SUBSIDIARIES AND ASSOCIATED COMPANIES
Receivables from unconsolidated subsidiaries at March 31, 2013 and 2012, were as follows:

Millions of Yen
2013
2012
Accounts receivable
Short-term loans receivable
Total

¥
¥

- 11 -

258
57
315

¥
¥

507
50
557

Thousands of
U.S. Dollars
2013
$
$

2,743
606
3,349

7.

LONG-LIVED ASSETSThe Companies reviewed their long-lived assets for impairment as of March 31, 2013. As a result, theCompanies recognized an impairment loss of ¥395 million ($4,200 thousand) as other expense for a certain
asset group for manufacturing boilers in the United States due to a continuous operating loss. The carrying
amounts of the relevant assets were written down to the recoverable amounts for the year ended March 31,
2013. The recoverable amounts of the machinery and equipment were measured at their value in use, andthose of the buildings and land were measured at their net selling price based on a real estate appraisal. The
discount rate used for computation of the present value of future cash flows was 4.5%. No impairment loss
was recognized in 2012.

8.

INVESTMENT SECURITIESInvestment securities at March 31, 2013 and 2012, consisted of the following:Thousands of
U.S. Dollars
2013

Millions of Yen
2013
2012
Non-current:
Equity securities
Government and corporate bonds and other
Trust fund investments and other
Total

¥

¥

5,960
3,444
76
9,480

¥

¥

4,591
3,841
70
8,502

$ 63,370
36,619808$ 100,797

The carrying amounts and aggregate fair value of investment securities at March 31, 2013 and 2012, wereas follows:

March 31, 2013
Securities classified as:
Available-for-sale:
Equity securities
Trust fund investments and otherHeld-to-maturity

Cost

¥

March 31, 2012
Securities classified as:
Available-for-sale:
Equity securities
Trust fund investments and otherHeld-to-maturity

March 31, 2013
Securities classified as:
Available-for-sale:
Equity securities
Trust fund investments and otherHeld-to-maturity

5,265
62
3,444

Cost

¥

¥

55,981
659
36,619- 12 -

747
15
19

¥

250
3
15

Fair
Value

¥

Millions of Yen
Unrealized
Unrealized
Gains
Losses

4,759
62
3,841

Cost

$

Millions of Yen
Unrealized
Unrealized
Gains
Losses

¥

275
14
5

¥

641
9
17

Thousands of U.S. Dollars
Unrealized
Unrealized
Gains
Losses

$

7,942
159
202

$

2,658
31
160

5,762
74
3,448

Fair
Value

¥

4,393
67
3,829

Fair
Value

$ 61,265787
36,661

9.

SHORT-TERM AND LONG-TERM BORROWINGS
Short-term borrowings from an unconsolidated subsidiary at March 31, 2013 and 2012, were as follows:

Millions of Yen
2013
2012
Short-term borrowings with average interest rate of
0.025% (2013) and 0.03% (2012)¥
Lease obligations
Total
¥

20
15
35

¥
¥

20
13
33

Thousands of
U.S. Dollars
2013

$
$

213
159
372

Long-term borrowings at March 31, 2013 and 2012, were as follows:

Millions of Yen
2013
2012
Lease obligations
Total

¥
¥

- 13 -

9
9

¥
¥

12
12

Thousands of
U.S. Dollars
2013
$
$

96
96

10. RETIREMENT BENEFITSThe Company and its domestic subsidiaries have severance payment plans for employees, directors andcorporate auditors. Under most circumstances, employees terminating their employment are entitled toretirement benefits determined based on the rate of pay at the time of termination, years of service, andcertain other factors. Such retirement benefits are made in the form of annuity payments from a trustee.
Employees are entitled to larger payments if the termination is involuntary, by retirement at the mandatory
retirement age, by death, or by voluntary retirement at certain specific ages prior to the mandatory
retirement age.
The Company and its domestic subsidiaries converted a portion of the existing defined benefit pension plan(qualified pension plan) to a defined contribution pension plan, and applied ASBJ Guidance No. 1“Accounting for Transfer between Retirement Benefit Plans”. The effect of this transfer increased income
before income taxes and minority interests by ¥302 million ($3,211 thousand) in the consolidated statementof income for the year ended March 31, 2013.
The subsidiaries in Korea and Indonesia have defined benefit plans, and the foreign subsidiary in Canada
has a defined contribution plan.
The net liability for employees' retirement benefits at March 31, 2013 and 2012, consisted of the following:

Millions of Yen
2013
2012
Projected benefit obligation
Fair value of plan assets
Unrecognized prior service cost
Unrecognized actuarial loss
Prepaid pension costs
Net liability¥ 18,124(15,990 )(69 )(2,374 )456¥
147

Thousands of
U.S. Dollars
2013¥ 18,106(17,956 )¥$ 192,706(170,016 )(734 )(25,242 )
4,849
$
1,563

(587 )
558
121

The components of net periodic benefit costs for the years ended March 31, 2013 and 2012, were as
follows:

Millions of Yen
2013
2012
Service cost
Interest cost
Expected return on plan assets
Amortization of prior service cost
Recognized actuarial loss
Payment to a defined contribution plan
Net periodic benefit costs

¥

¥

835
293
(224 )
8
552
234
1,698

¥

Thousands of
U.S. Dollars
2013

1,031
337
(239 )
1,260

¥

2,389

$

8,878
3,115
(2,382 )
85
5,869
2,488
$ 18,053

Assumptions used for the years ended March 31, 2013 and 2012, are set forth as follows:

Discount rate
Expected rate of return on plan assets
Recognition period of actuarial gain/loss

2013

2012

1.016%
1.5%
4 years

2.0%
1.5%
4 years

Liability for retirement benefits recorded in the accompanying consolidated balance sheets at March 31,
2013 and 2012, includes the retirement allowance for directors and corporate auditors of ¥87 million ($925
thousand) and ¥529 million, respectively. The retirement benefits for directors and corporate auditors arepaid subject to the approval of the shareholders.

- 14 -

The provisions for retirement benefits to directors and corporate auditors charged to income were ¥27
million ($287 thousand) and ¥63 million for the years ended March 31, 2013 and 2012, respectively.
At the general shareholders meeting held on June 28, 2012, the Company resolved to abolish the retirement
benefits system and instead to make a lump-sum payment to each eligible director and auditor for duties
performed up to the date of abolition, upon retirement. As a result, the remaining amount reserved for
retirement allowance for directors and auditors, ¥490 million ($5,210 thousand), is included in otherlong-term liabilities at March 31, 2013.

11. EQUITY
Japanese companies are subject to the Companies Act of Japan (the “Companies Act”). The significant
provisions in the Companies Act that affect financial and accounting matters are summarized below:a.

Dividends
Under the Companies Act , companies can pay dividends at any time during the fiscal year in addition
to the year-end dividend upon resolution at the shareholders meeting. For companies that meet certain
criteria such as; (1) having a Board of Directors, (2) having independent auditors, (3) having an Audit
and Supervisory Board, and (4) the term of service of the directors is prescribed as one year rather
than two years of normal term by its articles of incorporation, the Board of Directors may declare
dividends (except for dividends-in-kind) at any time during the fiscal year if the company hasprescribed so in its articles of incorporation. However, the Company cannot do so because it does notmeet all the above criteria.
Semi-annual interim dividends may also be paid once a year upon resolution by the Board of Directors
if the articles of incorporation of the company so stipulate. The Companies Act provides certain
limitations on the amounts available for dividends or the purchase of treasury stock. The limitation isdefined as the amount available for distribution to the shareholders, but the amount of net assets after
dividends must be maintained at no less than ¥3 million.

b.

Increases/Decreases and Transfer of Common Stock, Reserve and Surplus
The Companies Act requires that an amount equal to 10% of dividends must be appropriated as a legal
reserve (a component of retained earnings) or as additional paid-in capital (a component of capitalsurplus) depending on the equity account that was charged upon the payment of such dividends, until
the total aggregate amount of legal reserve and additional paid-in capital equals 25% of the amount ofcommon stock. Under the Companies Act, the total amount of additional paid-in capital and legal
reserve may be reversed without limitation. The Companies Act also provides that common stock,legal reserve, additional paid-in capital, other capital surplus and retained earnings can be transferredamong the accounts under certain conditions upon resolution of the shareholders.

c.

Treasury Stock
The Companies Act also provides for companies to purchase treasury stock and dispose of suchtreasury stock by resolution of the Board of Directors. The amount of treasury stock purchased cannot
exceed the amount available for distribution to the shareholders, which is determined by specificformula.

- 15 -

12. STOCK OPTIONSThe stock options outstanding as of March 31, 2013, are as follows:
Stock Option

Persons
Granted2012 Stock Option

11 directors

Number of Options
GrantedDate ofGrant

38,000 shares2012.7.17

ExercisePrice¥ 1 From July 18, 2012($ 0.01 )to July 17, 2042

The stock option activity is as follows:Year Ended March 31, 2013
Non-vested
March 31, 2012—Outstanding
GrantedCanceled
VestedMarch 31, 2013—Outstanding

38,00038,000

VestedMarch 31, 2012—Outstanding
VestedExercised
Canceled
March 31, 2013—Outstanding

Exercised
Exercise price

Outstandingat March 31, 2013¥1($ 0.01 )Average stock price at exercise
Fair value price at grant date

¥ 1,857($ 19.74 )The Assumptions Used to Measure the Fair Value of the 2013 Stock Option
Estimate method:
Volatility of stock price:
Estimated remaining outstanding period:
Estimated dividend:
Risk free interest rate:

Black-Scholes option pricing model
26.358%4.2 years¥ 40 per share
0.131%- 16 -

Exercise Period

13. INCOME TAXESThe Company and its domestic subsidiaries are subject to Japanese national and local income taxes which,in the aggregate, resulted in a normal effective statutory tax rate of approximately 37.8% for the year ended
March 31, 2013 and 40.4% for the year ended March 31, 2012.
The tax effects of significant temporary differences which resulted in deferred tax assets and liabilities at
March 31, 2013 and 2012, are as follows:

Millions of Yen
2013
2012
Deferred tax assets:
Accrued expenses
Retirement allowances for directors andcorporate auditors
Long-term liability — other
Enterprise tax
Accrued warranty costs
Unrealized loss on available-for-sale securities
Allowance for doubtful accounts
Loss on revaluation of available-for-salesecurities
Depreciation
Other
Less valuation allowance
Total
Deferred tax liabilities:
Long-term prepaid pension expenses
Other
Total
Net deferred tax assets

¥

1,422

¥

1,513

$ 15,120

243

978
1,882
1,606
1,925

92
177
151
181

¥

¥

¥

21

171
178
128
40

85
176
1,013
(858 )
2,460

146
833
(553 )
2,699

172
230
402
2,058

¥

¥

¥

Thousands of
U.S. Dollars
2013

210
43
253
2,446

223
904
1,871
10,771(9,124 )$ 26,156

$

1,829
2,445
4,274
$ 21,882

A reconciliation between the normal effective statutory tax rate and the actual effective tax rate reflected in
the accompanying consolidated statement of income for the years ended March 31, 2013 and 2012, is asfollows:

Normal effective statutory tax rate
Expenses not deductible for income tax purposes
Minimum inhabitant taxes
Change in valuation allowance
Tax credits on research and development costs
Downward revision to deferred tax assets as of the end of
the period due to the change in corporate tax rates
Other – net
Actual effective tax rate

2013

2012

37.8 %
1.3
1.1
3.5(1.4 )

40.4 %
1.4
1.4
1.4(1.4 )(1.7 )
40.6 %

2.5
1.4
47.1 %On December 2, 2011, new tax reform laws were enacted in Japan, which changed the normal effective
statutory tax rate from approximately 40.4% to 37.8% effective for the fiscal years beginning on or after
April 1, 2012 through March 31, 2015, and to 35.4% afterwards.
14. RESEARCH AND DEVELOPMENT COSTS
Research and development costs charged to income were ¥1,909 million ($20,298 thousand) and ¥1,708
million for the years ended March 31, 2013 and 2012, respectively.

- 17 -

15. TRANSACTIONS WITH UNCONSOLIDATED SUBSIDIARIES AND
ASSOCIATED COMPANIES
Major transactions with unconsolidated subsidiaries for the years ended March 31, 2013 and 2012, were as
follows:

Year Ended
March 31, 2013
March 31, 2012

Sales
¥

885
1,309

Year Ended

Sales

March 31, 2013

$ 9,410

Millions of Yen
Rent onResearch andrealdevelopment
Purchases
estate
costs
¥

87
84

¥

7
7

¥

Fee
expenses

2
3

¥ 271
267

Thousands of U.S. Dollars
Rent onResearch andrealdevelopment
Purchases
estatecosts

Feeexpenses

$

$

925

$ 74

$

21

2,881

16. OTHER INCOME (EXPENSES) — NET
Other income (expenses) — net for the years ended March 31, 2013 and 2012, consisted of the following:

Millions of Yen
2013
2012
Loss on cash in trust
Gain on sale of property and equipment
Loss on retirement of property and equipment
Other
Other income (expenses) — net

¥
¥

¥

5
(24 )
387
368

¥

(1 )
5
(107 )
457
354

Thousands of
U.S. Dollars
2013

$

$

53
(255 )
4,115
3,913

17. LEASESAs a lessor, the Company recognized the leased assets as lease investment assets. The net lease investment
assets are summarized as follows:

Millions of Yen
2013
2012
Gross lease receivables
Unearned interest income
Lease investment assets, current¥¥- 18 -

4,910
2,602
2,308

¥
¥

5,302
2,761
2,541

Thousands of
U.S. Dollars
2013
$
$

52,206
27,66624,540Maturities of lease investment assets for finance leases that are not deemed to transfer ownership of theleased property to the lessee are as follows:
Years Ending
March 31
2014
2015
2016
2017
2018
2019 and thereafter
Total

Millions of Yen
¥

¥

550
483
421
383
273
198
2,308

Thousands of
U.S. Dollars
$

5,848
5,136
4,476
4,072
2,903
2,105
$ 24,540

As a lessee, the Company and some subsidiaries lease certain machinery, equipment, tools, furniture andfixtures.

18. FINANCIAL INSTRUMENTS AND RELATED DISCLOSURESa.

Group policy for financial instruments
The capital expenditures of the Companies are financed by their own funds. Cash surpluses, if any, areinvested in low-risk financial instruments such as negotiable certificates of deposit and marketabledebt securities. The Companies also invest in the stock of their business partners to maintain andenhance business relationships.

b.

Nature and extent of risks arising from financial instruments
Receivables, such as trade notes and trade accounts, and lease investment assets are exposed tocustomer credit risk. Receivables in foreign currencies are exposed to the market risk of fluctuation inforeign currency exchange rates. Marketable and investment securities, mainly negotiable certificatesof deposit, held-to-maturity securities, and equity instruments of customers and suppliers of theCompanies, are exposed to the risk of market price fluctuations.
Payment terms of payables, such as trade notes and trade accounts, are generally less than one month.

c.

Risk management for financial instruments
Credit risk management
Credit risk is the risk of economic loss arising from a counterparty’s failure to repay or service debt
according to the contractual terms. The Company manages its credit risk from receivables and lease
investment assets on the basis of internal guidelines, which include monitoring of payment terms andbalances of major customers by each division to identify the default risk of customers in the earlystages.
Certain consolidated subsidiaries hedge their credit risk by collecting advance payments before
shipment of products.
Market risk management (foreign exchange risk and interest rate risk)
Marketable and investment securities are managed by putting limits on investment amounts inaccordance with internal guidelines, and monitoring market value and financial position of issuers ona regular basis.
Liquidity risk management
Liquidity risk comprises the risk that the Company cannot meet its contractual obligations in full on
maturity dates. The Companies manage their liquidity risk by developing cash management plans
based on reports from each division, and holding adequate balances of liquid assets.

- 19 -

d.

Fair value of financial instruments
Fair value of financial instruments is based on quoted price in active markets. If quoted price is notavailable, other rational valuation techniques are used instead.
(1) Fair value of financial instruments
Millions of yen
March 31, 2013
Cash and cash equivalents
Short-term investments
Receivables
Lease investment assets
Investment securities
Total
PayablesIncome taxes payable
Total

Carrying
amount¥ 13,257
11,63021,892
2,308
9,280¥ 58,367

Fair value¥ 13,257
11,63021,892
4,787
9,285¥ 60,851

¥

¥

¥

4,563
1,747
6,310

¥

Unrealized
gain/loss

¥
¥

2,479
5
2,484

4,563
1,747
6,310

Millions of yen
March 31, 2012
Cash and cash equivalents
Short-term investments
Receivables
Lease investment assets
Investment securities
Total
PayablesIncome taxes payable
Total

March 31, 2013
Cash and cash equivalents
Short-term investments
Receivables
Lease investment assets
Investment securities
Total
PayablesIncome taxes payable
Total

Carrying
amount¥ 14,317
11,875
21,6222,541
8,300¥ 58,655

Fair value¥ 14,317
11,875
21,622
5,052
8,288¥ 61,154

¥

¥

¥

4,696
2,297
6,993

Carrying
amount$ 140,957
123,658
232,770
24,54098,671$ 620,596$$

48,516
18,57567,091¥

Unrealized
gain/loss

¥
¥

2,511
(12 )
2,499

4,696
2,297
6,993

Thousands of U.S. Dollars
Unrealized
Fair value
gain/loss$ 140,957
123,658
232,770
50,898$ 26,358
98,72453$ 647,007$ 26,411$$

48,516
18,57567,091

Cash and cash equivalents, short-term investments, receivables, payables, and income taxes payable
The carrying value of cash and cash equivalents, short-term investments, receivables, payables andincome taxes payable approximate fair value because of their short maturities.
Lease investment assets
The fair value of lease investment assets are determined by discounting the cash flows related to thelease investment assets at the Companies' assumed corporate discount rate, based upon considerationsof risk-free interest rates and credit risk.

- 20 -

Investment securities
The fair value of investment securities is measured at the quoted market price of the stock exchange for
equity instruments, and at the quoted price obtained from the financial institution for certain debt
instruments. Fair value information for investment securities by classification is included in Note 5.
(2) Carrying amount of financial instruments whose fair value cannot be reliably determined
Investments in equity instruments and debt instruments that do not have a quoted market price inan active market
Carrying amountThousands of
U.S. Dollars
2013

Millions of Yen
2013
2012
Investments in unconsolidated subsidiaries andassociated companies
Other
Total
e.

¥
¥

1,341
201
1,542

¥

1,594
201
1,795

¥

$ 14,258
2,137$ 16,395

Maturity analysis for financial assets and securities with contractual maturities

March 31, 2013
Cash and cash equivalents
Short-term investments
Receivables
Lease investment assets
Investment securities:
Held-to-maturity securities
Available-for-sale securities with
contractual maturities
Total

March 31, 2012
Cash and cash equivalents
Short-term investments
Receivables
Lease investment assets
Investment securities:
Held-to-maturity securities
Available-for-sale securities with
contractual maturities
Total

Due in one
year or less
¥ 13,209
11,631
21,873
550

Millions of Yen
Due after one Due after five
year throughyears throughfive years
ten years

¥

14
1,560

¥

502

¥

47,263

Due in one
year or less
¥ 14,266
11,87521,512
629

¥

2,076

¥

48,282- 21 -

27
3,129

Millions of Yen
Due after one Due after five
year throughyears throughfive years
ten years

¥

102
1,651

¥

25
1,780

¥

1

¥

1

2,900

¥

2

¥

5
197

Due after
ten years

8257

Due after
ten years

¥

4

¥

4

3,800

¥

4,065

March 31, 2013
Cash and cash equivalents
Short-term investments
Receivables
Lease investment assets
Investment securities:
Held-to-maturity securities
Available-for-sale securities with
contractual maturities
Total

Due in one
year or less
$ 140,446
123,669
232,568
5,848

Thousands of U.S. Dollars
Due after one Due after five
year throughyears throughfive years
ten years$

149
16,587$5,337$ 502,531$

22,07353
2,094

Due after
ten years

$

11

$

11

30,835$287
33,26919. COMPREHENSIVE INCOME (LOSS)
The components of other comprehensive income for the years ended March 31, 2013 and 2012, were as
follows:

Millions of Yen
2013
2012
Unrealized gain on available-for-sale securities
Gains arising during the year
Reclassification adjustments to profit or loss
Amount before income tax effect
Income tax effect
Total

¥

870

¥

870
(304 )
566

Foreign currency translation adjustments
Adjustments arising during the year¥

Total other comprehensive income (loss)¥- 22 -¥

Thousands of
U.S. Dollars
2013

$

9,250

¥

44
171
215
(105 )
110

$

9,250
(3,232 )
6,018

1,091

¥

(495 )$ 11,600

1,657¥(385 )$ 17,61820. SEGMENT INFORMATION
For the years ended March 31, 2013 and 2012a.

Description of reportable segments
The Companies’ reportable segments are those for which separate financial information is available
and regular evaluation by the Company’s management is being performed in order to decide how
resources are allocated among the Companies. Therefore, the Companies consist of the segments of
Manufacturing & sales of boilers, Manufacturing & sales of water tube boilers and cooling equipment,
and Maintenance.
The Companies operate in the following segments:
Small once-through boilers, Simple once-through boilers, Hot water
boilers, Hot water heaters, Steam driven air-compressors, Filtration
Manufacturing & sales
equipment, Pure water generators, Water softeners, Oxygen removers,of boilers
Central Management System, Chemicals for boilers, Lease of Miura
products
Thermal oil heaters, Marine auxiliary boilers, Composite boilers, Waste
Manufacturing & sales heat boilers, Sterilizers, Vacuum boiling washers, Water coolers,of water tube boilers Vacuum coolers, Vacuum thawing equipment, Transfer pumps, Waterand cooling equipment
desalination units, Steam cookers, Waste oil incinerators, Structure madeof steel, Measurement analysis of dioxins
Maintenance contracts, Paid maintenance, Technical guidance,
Maintenance
Maintenance leasesb.

Methods of measurement for the amounts of sales, profit, assets, liabilities and other items for eachreportable segment
The accounting policies of each reportable segment are consistent with those disclosed in Note 2,“Summary of Significant Accounting Policies”.
Profit of reportable segments is calculated as operating income. The Companies account forintersegment sales and transfers on the basis of arm’s length price.

c.

Information about sales, profit, assets, liabilities and other items
Millions of Yen
2013
Reportable segment

Sales:
Sales to externalcustomers
Intersegment
sales or transfers
Total
Segment profit
Segment assets
Other:
Depreciation
Increase in property,
plant and equipment
and intangible assets
Impairment lossof long-lived assets

Manufacturing& sales ofwater tube
Manufacturingboilers and& salescoolingof boilers
equipment

Maintenance

Total¥ 37,748¥ 13,972¥ 26,437¥ 78,157

2,142
39,8902,449
35,178559
14,531
1,245
11,97026,437
7,444
17,6892,701
80,858
11,13864,837

1,032

343

262

1,637

¥

2,915

¥

(395 )

¥

1,022

¥

- 23 -

681

¥

4,618

¥

(395 )

Reconciliations Consolidated¥ 78,157¥¥(2,701 )(2,701 )(3,696 )41,10478,157
7,442
105,941

376

2,013

963

¥

5,581

¥

(395 )

Millions of Yen
2012
Reportable segment

Sales:
Sales to externalcustomers
Intersegment
sales or transfers
Total
Segment profit
Segment assets
Other:
Depreciation
Increase in property,
plant and equipment
and intangible assets

Manufacturing& sales ofwater tube
Manufacturingboilers and& salescoolingof boilers
equipment

Maintenance

Total¥ 37,314¥ 11,824¥ 25,456¥ 74,594

2,098
39,412
1,215
32,802549
12,373
1,174
10,03925,456
6,978
16,7292,647
77,241
9,367
59,570

1,102

324

294

1,720

¥

929

¥

358

¥

627

¥

1,914

Reconciliations Consolidated¥ 74,594¥(2,647)(2,647)(3,354)43,05774,594
6,013
102,627

321

2,041

¥

245

¥

2,159

Thousands of U.S. Dollars
2013
Reportable segment

Sales:
Sales to externalcustomers
Intersegment
sales or transfers
Total
Segment profit
Segment assets
Other:
Depreciation
Increase in property,
plant and equipment
and intangible assets
Impairment lossof long-lived assets

Manufacturing& sales ofwater tube
Manufacturingboilers and& salescoolingof boilers
equipment

MaintenanceTotal$ 401,361$ 148,559$ 281,095$ 831,015

22,775424,136
26,040374,035

5,944
154,503
13,238127,273

281,095
79,149188,081

28,719859,734
118,427
689,389$ (28,719 )(28,719 )(39,299 )437,044831,015
79,1281,126,433

10,973

3,647

2,786

17,406

3,998

21,404$ 30,994$ 10,867

7,241$ 49,102$ 10,239$ 59,341$$(4,200 )$Reconciliations Consolidated$ 831,015(4,200 )$(4,200 )Notes:
1. Reconciliations of segment profit mainly represent corporate expenses, including administrative expenses,
which are not attributable to specific reportable segments.
Reconciliations of segment assets mainly represent the surplus assets of the Company, which include cash
and marketable securities, long-term investment funds, including investment securities, and also respectively
related to assets of management department.
2. Segment profit is reconciled to operating profit of the consolidated financial statements.
3. No impairment loss of long-lived assets was recognized for the year-ended March 31, 2012.

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d.

Related Information
Information about Geographical Areas(1) Sales
Millions of Yen
2013
Japan
Asia
North and South America
Other
Total
(2)

¥

Thousands of
U.S. Dollars
2013

68,119
7,615
2,369
54
78,157$ 724,285
80,96825,189573$ 831,015

Millions of Yen
2013

Thousands of
U.S. Dollars
2013¥

Property, plant and equipment

Japan
Asia
North and South America
Total

¥

¥

27,8283,095
1,112
32,035$ 295,885
32,908
11,824$ 340,617

21. NET INCOME PER SHARE
Reconciliation of the differences between basic and diluted net income per share ("EPS") for the years
ended March 31, 2013 and 2012, are as follows:
Millionsof YenNet
IncomeYear Ended March 31, 2013
Basic EPS—Net income available tocommon shareholders
Effect of dilutive securities—Stock options
Diluted EPS—Net income for computation

¥

5,188

¥

5,188

Millionsof YenYear Ended March 31, 2012

Net
IncomeBasic EPS—Net income available tocommon shareholders

¥

3,577

Thousandsof Shares
Weightedaverage
Shares38,10629
38,135Yen

EPS¥ 136.14$

1.45¥ 136.03$

1.45

Thousandsof Shares
Weightedaverage
Shares38,440

Yen

EPS

¥

93.06

Diluted EPS is not disclosed due to no dilutive shares for the year ended March 31, 2012.

- 25 -

U.S. Dollars

22. SUBSEQUENT EVENTSAppropriations of Retained Earnings
At the general shareholders meeting held on June 27, 2013, the Company's shareholders approved thefollowing appropriations of retained earnings as of March 31, 2013:

Millions of Yen
Appropriations—Cash dividends,
ordinary dividend of ¥21.00 ($0.22)¥******- 26 -

787

Thousands of
U.S. Dollars$ 8,368