Profile
Ever since its founding in 1897, Meidensha Corporation has been working on the relentless pursuit of newtechnology and product developments and witnessed steady growth. Our product offerings cover a wide area,such as generators, substation equipment, electronic equipment and information equipment. Our mission is
not only to provide these products but also to recommend the best solutions on the basis of what a customer
values best. In order to realize these best solutions, we engage in the supply of various products and provide
related services such as engineering, facility management (including operation and maintenance), repair andproduct-life support.

Contents
3

Financial Highlights

4

Message from Management

6

Topics9Operating Performance Highlights

11

Overseas Operations

12

R & D Highlights

14

Financial Section

44

Overseas Affi liates

47

Corporate Data

47

Board of Directors

Financial Highlights
Years ended March 31

Millions of yen

Thousands of U.S. dollars

2010

2009

2008

2010

¥173,067¥198,798¥203,515$1,860,935

Net income (loss)

971(1,083)

2,405

10,441

Net income (loss) per share (yen, U.S. dollars)

4.28(4.77)

10.59

0.05

Cash dividends paid

908

908

1,363

9,763

206,608

214,165

236,4152,221,591

7,144

7,133

6,825

—

Net sales

Total assets
Number of employees

The consolidated figures in this Annual Report are expressed in yen and solely for the convenience of thereader, translated into United States dollars at the rate of ¥93 = U.S.$1, the approximate exchange rate prevailingon the Tokyo Foreign Exchange Market as of March 31, 2010. See Note 1 to Consolidated Financial Statements.

Net Sales (¥ millions)

Net Income (Loss)(¥ millions)

250,000

4,000

203,515
198,798
200,000 194,194

250,000

236,415
223,386
214,165
206,608

200,000

2,314 2,405

173,067

Total Assets (¥ millions)

2,000
150,000

150,000
971

100,000

100,000
0

50,00050,000(1,083)0–2,000
07

08

09

10

0
07

08

09

10

07

08

09

10

Annual Report 20103

Message from Management
We, at Meidensha Corporation (“Meiden”) and its
consolidated subsidiary companies (collectively the “Meiden
Group” or “the Company”), share the same corporate
philosophy. The mission is: “Illuminating a more affluent
tomorrow.” The value is: “For customer peace of mind andsatisfaction.” Meiden Group positively seeks to produce
innovations in technology and new values to realize a morevibrant society and better living conditions in the future. For
customer satisfaction and assurance, we produce eco-friendly
designs and approaches. We strongly promote courteous
customer-support service. With top quality products andservices, we hope to help our customers in solving theirvarious problems and in realizing their dreams.
Meiden Group products form a broad spectrum, frompower systems, substation equipment, and electronic
products to information and communication products.
We not only perform the manufacturing and sales of theseproducts, but also engage in the solutions business in Japan.
This process includes fi nding customer-driven optimum
solutions and offering engineering, system operations,and system maintenance and management to realize thesesolutions. Out of our business operations, we would like topositively seek to offer solutions to the various challengesof our times, such as the Global Climate Control problem.
Through our contributions to building a more affluent futuresociety, we would like to live up to our social responsibilities
and seek sustainable growth as a company.
The Japanese Economy in fiscal 2009 showed a favorable
turn in some industry sectors, but there was a continuous
trend of reduced public investment, sluggish private capitalspending, and a strong yen. Overall business confidence
was still fragile. Even the Japanese heavy electrical industry
faced a sluggish private sector market in Japan andincreased competition in the overseas markets. The businessenvironment continued to be very challenging. .
Under these economic conditions, the Company madevigorous across-the-board efforts to boost sales, but in spite ofthis, sales for fiscal 2009 totaled ¥173,067 million (consolidated
basis), a 12.9% decrease from the previous fiscal year.

4

Annual Report 2010

With respect to earnings, the Company made efforts
to reduce costs and cut back on fixed expenses, while
implementing the policies for the growth driver and new
business development under POWER 5, a new medium-term
management plan. As a result, net income (loss) before income
taxes came to ¥1,631 million (consolidated) and net income(loss) for the year came to ¥970 million (consolidated). Yearend dividends were 4 yen per share.
With respect to the Japanese Economic Outlook, it isexpected that the recovery will happen in a gradual fashionand in the heavy electrical industry there are some partial
signs of recovery. However, full-fledged economic recovery
is not here yet. There is a concern that the trend of public
investment cuts and private capital spending cuts willcontinue. Due to these factors, the business environment for
Meiden Group remains very challenging.
Under these conditions, the Company has been solidly
implementing the policies under POWER 5, a new mediumterm management plan. The POWER 5 is a five-year businessplan, running from fiscal 2009 to fiscal 2013, with the slogan,“The challenge of the Meiden Group: Contributing to society
through the “power” of manufacturing excellence.” We
are implementing the policies based on the following basic
principles:(1) Realize high growth and new business development
In preparing for the low-carbon society of the future, wewill shift our unique heavy electrical engineering resources
technology into new areas. To be specific, we have beendeveloping new businesses by focusing on component
businesses, such as motor drive units for pure electric vehicles,
power conversion products, electric double layer capacitors,
products for wind turbine applications, and other component
products; we have to make these the growth drivers.
(2) Develop business further in the private sector andoverseas markets
Accelerating new product development for the private
sector and overseas markets, overseas production,consolidation of our business organization and affi liatedcompanies, and human resources development programs
will give us a competitive advantage; we would also like todevelop new markets.
(3) Improve profitability through selection and focus
With “component products” and “private sector andoverseas markets” as our core business fields, we will focus
our management resources into these selected areas.
(4) Enhance the power of manufacturing excellence
We believe that “the power of manufacturing excellence”
refers to the overall integrated strength of a manufacturing
company, which includes R & D, manufacturing, sales &marketing and services. We would like to increase ourcompetence in each such stage and by working together, we
would like to strongly promote productivity gains, quality
improvement and cost reduction.

Keiji Kataoka, Chairman(5) Constantly promote CSR management
We will try to reduce the gas emissions that are a resultof our corporate activities and fulfi ll our corporate social
responsibility (CSR) by contributing to climate control andenergy-savings with our products and services.
By implementing POWER 5, we aim to provide peaceof mind and the best product experience to our customers
through our products and services for social infrastructurebuilding and the general industry and at the same time,
we will try to generate high earnings. We also aim to be acompany where each individual employee can work withpride for a higher level of job satisfaction.
We ask every shareholder, as well as our customers andbusiness partners, to give us your continuous support andadvice.

Junzo Inamura, President

Annual Report 20105

Topi c s

EVREVO catalogue

Dynamometer

Sales Release of New Performance
Evaluation System for EV and HEV, “EVREVO”
Meidensha Corporation made a sales release of “EVREVO,” a system for the performance evaluation of pure electricvehicles (EV) and hybrid electric vehicles (HEV).
The EVREVO is the first jointly developed product with Ono Sokki Co., Ltd., under a program set forth by “the Business
and Capital Alliance Agreement” signed on July 29, 2009.
From now on, we expect the drive for more eco-friendly car development will be accelerated world- wide to solve theglobal climate control issue.
The new system will evaluate the performance in real physical testing (using the actual product being tested) andin virtual vehicle testing (using virtual models) in every step of product development: from the early stage of needs andconcept level down to the integrated test and product release. This makes it possible to dramatically reduce the periodrequired for EV and HEV development.
In the future, we would like to accelerate our development of the “EVREVO” series, focusing on the low inertia
dynamometer drawing on our core technologies in mechanical and control technology.
In the automotive testing system field, we have “a competitive advantage in manufacturing” by providing integrated
offerings of measuring and analysis systems and construction work service. We would like to develop an automotive testing
system that will produce the best product experiences and the loyalty and would like to contribute to the ecology.

6

Annual Report 2010

SP series

1 MW package system

Sales Release of New SP Series PCS for
Solar Power Use
Realizes world’s highest level of power conversion efficiency: 97.8%
Complies with IEC Standard
Meidensha Corporation developed and started the sales release of a new power conditioning system (PCS) for solar
power.
Our company so far has sold the SUNGENEC series large capacity PCSs to a large number of customers.
We developed a new SP series PCS with the world’s highest level of power conversion efficiency and also it meets therelated IEC standard, which is a common standard used in Europe, Asia and the Middle East. We commenced our salesof a 250 kW system.
Our target markets are not only Japan but also the world’s most active solar market of Europe, the emerging China
market and other Asian and Middle East markets, which have high potential. In addition, we are participating in the
Mega Solar Project being conducted by the New Energy and Industrial Technology Development Organization (NEDO)
in Wakkanai City, Hokkaido as a demonstrative research project of a mega solar system. We developed the world’s first 1
MW package system using SP series PCS units for this Mega Solar Project.
This 1 MW package system is a groundbreaking system bringing together four (4) 250 kW PCSs, a control system anda transformer in a single package. We would like to provide various benefits to the future Mega Solar projects using thissystem.

Annual Report 20107

Topi c s
Inverter production line

Vacuum capacitor
production line

External view of Component Factory

Commencement of
Component Factory Operation
The Meiden Group set forth a key policy in its medium-term business plan, POWER 5: While enhancing the strengthof existing businesses, we intend to increase the product portfolio ratio of component products that we can produce andsell in large numbers and that could contribute to a low carbon society in the future. “The Component Factory” was opened
with a view to increasing our “strength in production” in line with one of the objectives of POWER 5.
In October 2008, we acquired the land and factory building of the Numazu Plant of JATCO, Ltd., which is located tothe east side close to Meiden Numazu Works. We then renovated and repaired the building facilities.
In August 2009, as a first move, we relocated the inverter production lines to this new factory. In addition to mediumsized and large inverters for export, for elevators, etc., we started an inverter assembly shop for the pure electric vehicle,
i-MiEV. We also started the related motor drive unit inspection shop. In February 2010, we relocated a vacuum capacitor
production line there and started operation.
Vacuum capacitors are high-performance energy storage devices in which electrodes that store electrical energy arecontained in a ceramic vacuum container. Because of the high level of technical expertise required to produce this product,
only a few major suppliers exist in the world. Our company is the sole manufacturer of vacuum capacitors in Japan.
After relocating the production of strategic products to this new factory, we would like to increase production and at
the same time reduce costs by reinforcing the production facility. In this manner, we would like to expand and increase
the sales of our component products.

8

Annual Report 2010

Operating Performance Highlights
Social Infrastructure Systems Business Sector
Due to the replacement demand for electrical systems for drinking water treatment plants and sewage water treatment plants, the performanceof the water processing segment business showed steady growth. However, the demand for traction power systems and substation systems in
the private sector was sluggish. As the result, sales in fiscal 2009 declined 9.1% from fiscal 2008 to ¥112.529 billion.

■ Power, Railways & Private Sector Business Segment
The order backlogs for the major traction power projects were
mostly completed in fiscal 2008 and the demand for infrastructure
investment for factories and buildings declined in Japan. The
recovery of this segment remained unclear.
Amid this business environment, we commenced delivery ofgenerators for the wind power system of Japan Steel Works, Ltd. This
generator is in serial production. We also developed and released a
new power conditioning system (PCS) for solar power. Our PCS
realized the world’s top level of power conversion efficiency. We alsojoined the demonstrative research project related to the smartgrid
study funded by the Japanese Government. We focused on businesses
with growth potential and on new business development.

Generator for wind
power
Traction power system
Generator for a wind turbine
by Japan Steel Works, Ltd.

■ Environmental Engineering Business Segment
With the cuts in public investment and increased competition,
the business climate became more challenging.
Amid this situation, we intensified our efforts to obtain new
or replacement orders for electrical systems for drinking water
treatment plants and sewage treatment plants. We also continued tofocus on our outsourcing service for the operation and maintenancework of the drinking water treatment plants and on PFI (provisionof public facilities, etc. using private funds, etc.) projects. This time,
we received an order for the business process outsourcing service of
operation and facility management of the water supply system fromthe Water Bureau of Aizuwakamatsu City, Fukushima Prefecture.

Outsourcing
Service for Facility
Management ofDrinking Water
Treatment Plant

Remote Monitoring andControl System■ International Business Segment
We are actively working on orders for traction substation
projects, mostly in Southeast Asia. In addition, we developed andreleased in the overseas market a new PCS for solar power. This PCS
meets an international standard.

Dubai LRT (new transport system)

DC circuit breaker for railway

Industrial Systems Business Sector
While signs of recovery are present in some industry sectors, capital investment caps are still on-going in key industries such as theautomotive industry. Sales declined 36.1% from fiscal 2008 to ¥26.214 billion.

■ Dynamometer and Logistics Systems Business Segment
The business climate regarding orders from domestic automakers andforklift manufacturers remains very challenging due to the unexpectedly
long economic slowdown.
Amid this business situation, we made a business and capital alliance with
Ono Sokki Co., Ltd., a Kagawa Prefecture-based company in Japan, in theauto testing system field . Our first jointly developed product is the EVREVO,
a testing system for the performance evaluation of electric vehicles (EV) andhybrid electric vehicles (HEV).
In the logistics system field, we developed and released heavy duty AGV(automatic guided vehicle) kits and an ultra-low-floor AGV, the U-Cart. We
are working to expand sales to China, Thailand, and the U.S.

4WD chassis dynamometer

U-CART ultra-low level loading
deck AGV

Annual Report 20109

■ Component Business Segment
The component business mostly for the semiconductor industry
is in the recovery phase. However, built-in component markets, suchas motor drive units or energy storage devices, are experiencing amore competitive climate.
Against this background, we commenced shipment of motor
drive units for the pure electric vehicle “i-MIEV” by Mitsubishi
Motors Corporation. We are also working to develop a businessfor vacuum capacitors in the world market. This component isbeing used in the semiconductor manufacturing system, the solar
cell panel manufacturing system, etc. At the same time, we areworking to accelerate the development of next-generation industrial
components, in addition to enhancing our existing production lines
to improve our serial production system.

Motor drive unit for pure electric vehicle

Pulsed power supply system

Industrial computer

Vacuum capacitors

Inverter

Motor for elevator

Engineering System Business Sector
While demand for maintenance services showed a recovery, sales
in fiscal 2009 declined 5.6% from fiscal 2008 to ¥21.996 billion due
to a decline in the facility availability rate of the customers.
Amid such a business climate, we are actively working toincrease the maintenance service business to meet the increasing eco
awareness needs of the customers, such as product life expectancy
analysis services and product life enhancement services for aging
facilities, as well as removal services for transformer insulation oilwith PCB, which is hazardous to the environment.

Real Estate Business Segment
We are conducting a real estate leasing business, focusing
primarily on ThinkPark Tower, an office and commercial building
located in Osaki, in Shinagawa City, Tokyo. Sales in this segment
increased 9.4% from fiscal 2008 to ¥3.285 billion.

Other Business Segments
Sales for other businesses, including the trading firm business, welfare business, merchandising business, and contract corporate accounting
services business declined 19.4% from fiscal 2008 to ¥28.389 billion.

10

Annual Report 2010

Overseas Operations
During fiscal year 2009, following the deepest global
downturn in recent history in fiscal 2008, the global
economy rose more than 4%. Driving the global recovery
was the extraordinary fiscal and monetary stimulus packages
implemented in countries around the world. China and India
continued to maintain growth of more than 6% while theadvanced countries marked low growth of more than 2%. The
Middle East showed mild growth.
Southeast Asia, which is Meidensha Corporation’s major
market, posted growth of more than 5% in fiscal 2009.
Singapore was deeply impacted by the fi nancial crisis andslump in global trade but rebounded strongly from the fourth
quarter of 2009.
The US power sector showed about a 2.4% increase intotal net power generation due to the increase in US industrial
production. There was a rise in coal-fire generation at 5.0%
and in natural gas-fired generation at 2.9%. Conversely, there
was a decline in nuclear generation (1.5 %) and in petroleum
liquid-fired generation (37.9%.)
The U.S. automotive industry experienced the mosttumultuous year in its history - a period marked by recession
and the bankruptcy and rebirth of General Motors Corporation
and Chrysler LLC. US auto production for fiscal year 2009 wasaround 8.5 million vehicles.
Major products ordered in fiscal year 2009 were as
follows:
In the field of distributed energy resources, we received anorder for major electrical systems relating to the Demonstrative
Project for Technology Development of Power Supply System
to Maximize the Use of Solar and Other Power Resources inthe Lao People’s Democratic Republic. This is a project of New
Energy and Industrial Technology Development Organization(NEDO), Japan, and was contracted to Okinawa Electric Power
Company. We also received orders for a power conditioning
system (PCS) from a photovoltaic system integrator in
Korea.
In the field of utility power substations, we also received
orders for power transformers and mobile substations for the
Middle East.

In the field of electric railroad substations, we received
orders for expansion and modification work of the existing
traction substations in the South Asia and the Middle East.
In the North American automotive market, we received
orders for drivetrain test systems, drivetrain end-of-line
test systems and FREC Dynamometer TYPE-i series forautomakers’ technical centers and factories.
In the Asia-Pacific automotive market (outside Japan), we
received orders for a drivetrain test system, engine end-of-line
test systems, engine dynamometers, chassis dynamometers and
FREC Dynamometer TYPE-i series for auto and motorcycle
makers’ technical centers and factories in Asia.
The major products manufactured and shipped during
fiscal year 2009 were as follows:
In the field of power generation and power supply, weshipped GE LM6000 gas turbine generators for GE Aero
Energy Products in Texas. We also shipped dynamic voltage
compensator system to a TFT-LCD manufacturer in Taiwan.
In the field of electric railroad substations, we shipped andinstalled traction substation equipment for the South Asia andthe Middle East.
In the North American automotive market, we shipped andsupplied a 4WD chassis dynamometer, drivetrain test systems
and a drivetrain end-of-line test system for automobile andtruck transmissions, and vehicles.
In the Asia-Pacific automotive market (outside Japan), we
also shipped and supplied chassis dynamometers for passenger
cars and heavy duty trucks, a motor test system for Hybrid
electric vehicles, and engine dynamometers and drivetrain
end-of-line test systems.
In another noteworthy event in our overseas operation,
Meiden Hangzhou Drive Systems Co., Ltd. started a knockdown assembly operation of Automated Guided Vehicles,
MCAT, and supplied them to Chinese automobile factorymarket.

Annual Report 201011

R & D Highlights

R&D at the Meiden Group is being conducted on core technology developments based on our long-term strategy andon new product development drawing on such technology developments.
In the core technology development area, we are working on the development of chemical analysis technologies on
hazardous substances such as restricted materials under the RoHS Directive and on analysis simulation technologies tostreamline the product development process. Especially in the chemical analysis technology development program, ourchemical analysis testing facility received the certification of ISO/IEC 17025, which is an international standard relating
to the competence of a chemical testing laboratory. This enabled us to issue internationally valid certifications.
In the area of new product development, we are working on developments for a high performance and high reliability
motor drive unit for pure electric vehicles. We are also working on the core technology development of an electric double
layer capacitor (“EDLC”) to realize higher output, higher performance and increased safety. EDLC is contributing toenergy savings. In addition, we are conducting the development of new control technologies for high voltage inverters fordrinking water treatment plants and sewage water treatment plants. These inverters have a big market potential in overseas
markets in the future.

12

Annual Report 2010

Contents
14

Consolidated Financial Review

14Five-year Summary

15

Operational Review

16

Consolidated Balance Sheets

18

Consolidated Statements of Operations

19

Consolidated Statements of Shareholders’ Equity/Changes in Net Assets

20

Consolidated Statements of Cash Flows21

Notes to Consolidated Financial Statements

43

Independent Auditors’ ReportCONSOLIDATED FINANCIAL REVIEW
Outline of Profits and Loss

Financial Conditions

Although there has been partial recovery in someindustries during the current consolidated fiscal year, theoverall economic climate continues to be harsh, typified
by cutbacks in public sector capital investment, restraint
in private capital expenditure, and a high yen trend. The
operating environment will continue to be harsh for theheavy electrical industry market in Japan due to factors
such as stagnant demand in the domestic market andincreased competition in overseas markets.
Under these conditions, the Group has madecompany-wide efforts to reduce costs and fi xed expenses
while implementing the medium-term management plan
POWER 5 aimed at growth and the strengthening of new
businesses. Based on the factors above, results are as follows
for the Company and its consolidated subsidiaries. Sales
were ¥173,067 million (down 12.9% from the previous
fiscal year), operating income was ¥3,321 million (down
18.7% from the previous fiscal year), resulting in a net
profit of ¥971 million.

The amount of total assets on March 31, 2010
declined by ¥7,556 million (down 3.5%) compared to theamount of total assets at the end of the previous fiscal year,
resulting in total assets of ¥206,608 million.
Due to a reduction in accounts receivables caused bya decline in sales and orders received and a reduction ininventory, current assets declined by ¥6,760 million (down
6.0%), resulting in total assets of ¥106,555 million at the endof the current fiscal year. Despite an increase in the valueof investment securities due a recovery in the stock pricesof securities held by the Company, fi xed assets declined by¥795 million (down 0.8%) due to the continual depreciationof property, plants, and equipment, resulting in fixed assetsof ¥100,053 million at the end of the current fiscal year.
The amount of total liabilities at the end of the current
fiscal year was ¥152,475 million, a decline of ¥8,987 million(down 5.6%). The amount of current liabilities at the endof the current fiscal year was ¥107,722 million, a decline of¥10,447 million (down 8.8%), due to a decrease in payables.
The amount of long-term liabilities at the end of the current
fiscal year was ¥44,754 million, an increase of ¥1,460 million(up 3.4%), due to an increase in employees’ severance andretirement benefits. The amount of net assets at the endof the current fiscal year was ¥54,132 million, a decline of¥1,430 million (down 2.7%). This was due to an increasein unrealized gains on securities and foreign currencytranslation adjustments and the net profit achieved during
the current fiscal year. As a result, the capital to asset ratio
increased from 23.7% to 25.2% at the end of the current
fiscal year.

FIVE-YEAR SUMMARY

MEIDENSHA CORPORATION AND CONSOLIDATED SUBSIDIARIES (years ended March 31)
2010

2009

Millions of yen
2008¥173,067¥198,798¥203,515¥194,194¥183,747

Net income (loss)

971(1,083)

2,405

2,314

3,252

Net income (loss) per share (yen)

4.28(4.77)

10.59

10.18

14.12

Cash dividends paid

908

908

1,363

1,137

909

Depreciation and amortization

7,611

7,797

6,334

4,369

3,872

Total assets

206,608

214,165

236,415

223,386

201,274

Net property, plant and equipment

63,341

65,90966,822

61,52346,501

Shareholders’ equity per share (yen)229.00223.35255.31

272.20265.64

Net sales

14

Annual Report 2010

2007

2006

OPERATIONAL REVIEWSocial Infrastructure Systems(Millions of yen)09

108,59908

114,653

103,652

This segment includes business related to the construction of social infrastructure. We
provide solution services of all kinds in relation to electric power quality, energy conservation,and related matters, and we engage in the manufacturing and marketing of all types ofelectrical equipment involved in power generation, transmission, transforming, distribution,and other related functions, for power companies, government and other public agencies andoffices, railroads, highways, private facilities, and other such establishments.
We are also involved in the field of water supply and sewerage treatment for local governments.
Our activities include manufacturing and marketing products for the control of treatment
equipment and processes of all kinds, and for the improvement of IT networks. We are further
developing environmental solution services that include contracting for the maintenancemanagement of water treatment plants, recycling industrial wastes and so on.

62.7%

10

Industrial Systems(Millions of yen)

09

12.9%
22,29708

36,307

51,633This segment includes business operations related to product systems used in the manufacturingindustry, IT, and other general industry operations. In addition to providing private industry withmotor vehicle testing systems, and logistics support systems, we engage in the manufacture andmarketing of motors, inverters, and other products for use in textile machinery, elevators, andother such equipment.
We are active in the information and telecommunications field, manufacturing and marketing
component products for industrial computer and networking systems.

10

Engineering Systems(Millions of yen)

23,231

22,85921,576This segment provides services relating to the remote management and monitoring of facilities
and the proposal of measures for extending the life of facilities, energy conservation, and othersuch services related primarily to the maintenance of products we supply. We also engage inthe maintenance of semiconductor manufacturing equipment and the reconditioning of used
manufacturing equipment.

08

09

10

12.5%

Real Estate(Millions of yen)

3,022

2,740

This segment includes rentals of real estate holdings, including ThinkPark(Osaki, Shinagawa City, Tokyo).

1.7%

798
08

09

10

Others(Millions of yen)09

17,57308

22,23924,201This segment includes marketing companies not tied to specific business fields, and companies
that contract accounting, payroll, and other administrative functions, as well as welfare services
for employees.

10.2%

10

Annual Report 201015

CONSOLIDATED BALANCE SHEETSMEIDENSHA CORPORATION AND CONSOLIDATED SUBSIDIARIES (as of March 31, 2010 and 2009)
Millions of yen

Thousands of U.S. dollars (Note1)

2010

2009

2010

¥11,236¥3,201$120,817

Trade notes

2,387

3,272

25,667

Trade accounts

56,29658,571

605,333

Loans receivable and advances

2,703

2,886

29,065Due from unconsolidated subsidiaries and affiliates

1,351

2,027

14,527

Allowance for doubtful accounts(656)(1,095)(7,054)Inventories (Note 5)

28,04037,253

301,505

Deferred income taxes (Note 15)

3,044

3,602

32,731Other current assets

2,154

3,599

23,161

Total current assets

106,555

113,316

1,145,752

Land (Note 8)

9,114

9,251

98,000

Buildings and structures (Notes 6 and 8)

74,67472,602802,946

Machinery and equipment (Note 6)

56,07855,745602,989

633

1,354

6,807

(77,158)(73,043)(829,656)

63,341

65,909681,086

Investment securities (Notes 4 and 8)

16,553

13,948

177,989

Investments in unconsolidated subsidiaries and affiliates (Note 4)

9,241

8,924

99,366Long-term loans receivable

384

387

4,129

Deferred income taxes (Note 15)

4,857

5,054

52,226

Other assets

5,765

6,714

61,989Allowance for doubtful accounts

(88)

(87)

(946)

36,712

34,940394,753¥206,608¥214,165$2,221,591

AssetsCurrent assets:
Cash and time deposits (Note 17)
Receivables:

Property, plant and equipment:

Construction in progress
Less: Accumulated depreciation
Net property, plant and equipment
Investments and other assets:

Total investments and other assets
Total assets

See accompanying notes.

16

Annual Report 2010

Millions of yen

Thousands of U.S. dollars (Note1)

2010

2009

2010

Short-term borrowings (Note 7)¥13,027¥42,698$140,075

Commercial paper (Note 7)

30,000—322,581

Current portion of long-term debt (Notes 7 and 8)

4,463

6,255

47,989Trade notes

5,469

6,882

58,806

Trade accounts

18,40820,372

197,935

Due to unconsolidated subsidiaries and affiliates

4,046

3,804

43,505

Advances received from customers

7,930

11,247

85,269Accrued income taxes

547

520

5,882

Accrued bonuses for employees

4,694

4,890

50,473

Provision for product warranties

46

551

495

Liabilities and net assets
Current liabilities:

Payables:Provision for loss on orders

494

679

5,312

Other current liabilities

18,59820,272

199,979

Total current liabilities

107,722

118,170

1,158,301

Long-term debt (Notes 7 and 8)

19,792

19,987

212,817

Employees’ severance and retirement benefits (Note 9)

21,14819,342

227,398

Reserve for retirement allowance for directors and corporate auditors

115

124

1,237

Provision for environmental measures

551

564

5,925

Deferred income taxes (Note 15)

37

85

398

Long-term liabilities:

Other Long-term liabilities

3,111

3,191

33,451

Total Long-term liabilities

44,75443,293

481,226

Contingent liabilities (Note 11)
Net assets (Note 10):
Common stock
Authorized– 576,000,000 shares
17,07017,070183,548

Capital surplus

Issued and outstanding – 227,637,704 shares

13,197

13,197

141,903

Retained earnings

19,244

19,180206,925

Less:Treasury stock, at cost

(145)

(116)

(1,559)Unrealized gains on securities, net of taxes

3,530

2,401

37,957

Unrealized losses on hedging derivatives, net of taxes

(51)

(82)

(548)

Foreign currency translation adjustment

(871)

(945)

(9,366)

Minority interests

2,158

1,997

23,204

Total net assets

54,13252,702582,064¥206,608¥214,165$2,221,591

Total liabilities and net assets

Annual Report 201017

CONSOLIDATED STATEMENTS OF OPERATIONSMEIDENSHA CORPORATION AND CONSOLIDATED SUBSIDIARIES (years ended March 31, 2010, 2009 and 2008)
Millions of yen

Thousands of U.S. dollars (Note1)

2010

2009

2008

2010

Net sales (Note 14)¥173,067¥198,798¥203,515$1,860,935

Cost of sales (Notes 13 and 14)

134,720

158,403

159,094

1,448,602

Selling, general and administrative expenses (Notes 13 and 14)

35,02536,31036,835

376,613

3,322

4,085

7,586

35,720

418

545

548

4,495

(1,051)(1,322)(1,027)(11,301)

428

150

344

4,602

1

11

242

11

Loss on devaluation of securities

(32)

(288)

(168)

(344)

Loss on disposal of inventories

(355)

(326)

(141)

(3,817)

Loss on disposal of fixed assets

(132)

(133)

(294)

(1,419)Gain on sales of fixed assets

24

118

4

258

Provision of allowance for doubtful accounts

(11)

(487)

(16)

(118)

Loss on product warranties

(220)

(502)

—

(2,366)

Provision for product warranties

—

(522)

(53)

—

Moving expenses of office

—

—

(657)

—

Restructuring charges on a consolidated subsidiary

—

(662)

(382)

—

(761)

(2,045)(1,690)(8,183)

1,631(1,378)4,296

17,538Current

617

891

2,143

6,634

Deferred(58)(1,429)

(381)

(623)

Total

559

(538)

1,762

6,011

Income (loss) before minority interests

1,072

(840)

2,534

11,527

101

243

129

1,086

¥971

¥(1,083)¥2,405$10,441

Operating income
Other income (expenses):
Interest and dividend income
Interest expense
Equity in net income of affiliated companies
Gain on sales of marketable securities and investment securities (Note 4)

OthersIncome (loss) before income taxes and minority interests
Income taxes (Note 15):

Minority interests
Net income (loss) (Note 19)

Yen

U.S. dollars (Note1)

2010

2009

2008

2010

Net income (loss)¥4.28¥(4.77)¥10.59$0.05

Cash dividends applicable to the year

4.00

4.00

6.00

0.04

Amounts per share of common stock (Note 20):

See accompanying notes.

18

Annual Report 2010

CONSOLIDATED STATEMENTS OF SHAREHOLDERS’
EQUITY/CHANGES IN NET ASSETSMEIDENSHA CORPORATION AND CONSOLIDATED SUBSIDIARIES (years ended March 31, 2010, 2009 and 2008)
Millions of yen

Net assets at April 1, 2007

Number ofshares issued

Commonstock

CapitalsurplusRetainedearnings

Treasurystock,
at costUnrealized
gains onsecurities,
net of taxes

222,637,704¥17,070¥13,204¥20,681¥(57)¥11,063

Unrealized losses Foreign currency
on hedging
translation
derivatives,
adjustment
net of taxes
¥(37)

¥(73)

Minority
interests¥2,284

Total¥64,135

Net income

2,405

2,405

Cash dividends(1,136)(1,136)

Decrease in retained earnings
due to addition of consolidated
subsidiaries

(325)

(325)

Acquisition of treasury stock
Disposal of treasury stock

1

Net changes during the year

(24)

(24)

4

5

1

944

(20)

(4,822)

(28)

76

(111)

(3,960)

Balance at March 31, 2008

222,637,704

17,07013,205

21,625

(77)

6,241

(65)

3

2,173

60,175

Net assets at April 1, 2008

222,637,704

17,07013,205

21,625

(77)

6,241

(65)

3

2,173

60,175

Effect of changes in accounting
policies applied to foreignsubsidiaries

1

1

Net income(1,083)(1,083)

Cash dividends(1,363)(1,363)

Decrease in retained earnings
due to addition of consolidated
subsidiaries
Acquisition of treasury stock
Disposal of treasury stock

(8)

(64)

(64)

25

17
(3,840)

(17)

(948)

(176)

(4,981)

Balance at March 31, 2009

Net changes during the year
222,637,704¥17,070¥13,197¥19,180¥(116)¥2,401¥(82)¥(945)¥1,997¥52,702

Net assets at April 1, 2009

222,637,704

17,07013,197

19,180

(116)

2,401

(82)

(945)

1,997

52,702

Net income

971

971

Cash dividends

(908)

(908)

1

1

Change of scope of equity
methodAcquisition of treasury stock
Disposal of treasury stock

0

(30)

(30)

1

1

Net changes during the year
Balance at March 31, 2010

1,129

31

74

161

1,395

¥3,530¥(51)¥(871)¥2,158¥54,132

Unrealized losses Foreign currency
on hedging
translation
derivatives,
adjustment
net of taxes

Minority
interests

Total$21,473$566,688

222,637,704¥17,070¥13,197¥19,244¥(145)

Number ofshares issued

Commonstock

CapitalsurplusRetainedearnings

Treasurystock,
at costUnrealized
gains onsecurities,
net of taxes

222,637,704$183,548$141,903$206,237$(1,247)$25,817

Thousands of U.S. dollars (Note 1)

Net assets at April 1, 2009$(881)$(10,162)

Net income

10,441

10,441

Cash dividends(9,763)(9,763)

Change of scope of equity
method10

Acquisition of treasury stock

10
(323)

Disposal of treasury stock

0

11

Net changes during the year
Balance at March 31, 2010

222,637,704$183,548$141,903(323)$206,925$ (1,559)

11
12,140

333

796

1,731

15,000$ 37,957$ (548)$ (9,366)$23,204$ 582,064

Annual Report 2010

19

CONSOLIDATED STATEMENTS OF CASH FLOWSMEIDENSHA CORPORATION AND CONSOLIDATED SUBSIDIARIES (years ended March 31, 2010, 2009 and 2008)
Millions of yen
2010

2009

Thousands of U.S. dollars (Note1)
2008

2010

Operating activities:
Income (loss) before income taxes and minority interests¥1,631¥(1,378)¥4,296$17,538

81,839Adjustments to reconcile income before income taxes to net cash
provided by operating activities:
Depreciation and amortization

7,611

7,797

6,335

Increase (decrease) in allowances

730

4,020

1,891

7,849

Interest and dividend income

(418)

(545)

(548)

(4,495)Equity in net loss (income) of affiliated companies

(428)

(150)

(344)

(4,602)

Interest expense

1,051

1,322

1,027

11,301Gain on sales of marketable securities and investment securities

(1)

(11)

(242)

(11)

Gain on sales of fixed assets

—

(118)

(4)

—

Loss on disposal of fixed assets

—

133

294

—

Loss on devaluation of securities

140

288

168

1,505

Decrease (increase) in receivables

623

6,368

2,494

6,699

Decrease (increase) in inventories

9,396

(995)

(7,854)

101,032

Increase (decrease) in payables(3,977)(8,491)(2,794)(42,763)

Other-net

1,392

1,239

5,823

14,96817,7509,479

10,542

190,860

Sub-totalInterest and dividend received
Interest expense paid
Income taxes paid

438

543

532

4,710

(1,145)(1,259)(1,206)(12,312)(769)(1,509)(5,517)(8,269)16,274

7,254

4,351

174,989

(742)

(786)

(492)

(7,978)

1

20

260

11

(4,244)(7,038)(12,647)(45,634)

Proceeds from sales of property, plant and equipment

254

140

65

2,731

Proceeds from sale of investment in consolidated subsidiary in resulting
change in scope of consolidation

—

—

56

—

Net cash provided by operating activities
Investing activities:
Purchase of marketable securities and investment securities
Proceeds from sales of marketable securities and investment securities
Purchase of property, plant and equipment

Other-net
Net cash used in investing activities(780)(1,117)(112)(8,388)(5,511)(8,781)(12,870)(59,258)

Financing activities:
Increase (decrease) in short-term bank loans(29,737)

28,663

4,791(319,753)

Increase (decrease) in commercial paper

30,000(30,000)

10,000322,581

Proceeds from long-term debt

4,435

50

830

47,688

Repayment of long-term debt

(6,426)(2,435)(1,516)(69,097)

Cash dividends paid

(908)

(1,388)(1,125)(9,763)

Other-net

(107)

(73)

137

(1,151)(2,743)(5,183)

13,117(29,495)

Net cash provided by (used in) financing activities

37

(336)

71

398

Net increase (decrease) in cash and cash equivalents

Effects of exchange rate changes on cash and cash equivalents

8,057(7,046)

4,669

86,634

Cash and cash equivalents at beginning of year

3,123

10,1695,486

33,581

—

—

14

—

¥11,180¥3,123¥10,169$120,215

Increase in cash and cash equivalents due to addition of
consolidated subsidiaries
Cash and cash equivalents at end of year (Note 17)

See accompanying notes.

20

Annual Report 2010

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
MEIDENSHA CORPORATION AND CONSOLIDATED SUBSIDIARIES

1. Basis of Presenting
Consolidated Financial Statements
The accompanying consolidated financial statementsof Meidensha Corporation (the “Company”) andits consolidated subsidiaries have been prepared inaccordance with the provisions set forth in the Japanese
Financial Instruments and Exchange Law and its related

what the Japanese yen amounts have been, could have been,or could in the future when converted into U.S. dollars at
this or any other rate of exchange.

2. Summary of Significant
Accounting Policiesa)Principles of Consolidationaccounting regulations, and in conformity with accounting

The accompanying consolidated financial statements

principles generally accepted in Japan (“Japanese GAAP”),

include the accounts of the Company and its 38

which are different in certain respects as to application

consolidated subsidiaries in 2010, 2009 and 2008.

and disclosure requirements of International Financial
Reporting Standards.

Meiden Aqua Business Company was newly
established this year and has been added to the scope ofPrior to the year ended March 31, 2009, the accounts

consolidation. In addition, MEIDEN POWER SOLUTIONS

of consolidated overseas subsidiaries are based on their(SINGAPORE) PTE. LTD. has been absorbed through a

accounting records maintained in conformity withmerger with MEIDEN ASIA PTE. LTD. and removed fromgenerally accepted accounting principles prevailing inthe scope of consolidation.

the respective countries of domicile. As discussed in

All significant inter-company accounts and transactions

Note 2 (t) (1), the accounts of consolidated overseas

have been eliminated in consolidation. 11 unconsolidated

subsidiaries for the year ended March 31, 2009 and 2010,

subsidiaries, whose total assets, sales, net income (loss)

are prepared in accordance with either Internationaland retained earnings are not significant in the aggregate

Financial Reporting Standards or U.S. generally accepted

in relation to the comparable figures in the consolidated

accounting principles, with adjustments for the specified

financial statements, have not been consolidated in 2010.

six items as applicable.

In the elimination of investments in subsidiaries,

The accompanying consolidated financial statements

the assets and liabilities of the subsidiaries, including

have been reformatted and translated into English (withthe portion attributable to minority shareholders, aresome expanded descriptions) from the consolidated

evaluated using the fair value when the Company acquired

financial statements of the Company prepared incontrol of the respective subsidiaries.

accordance with Japanese GAAP and filed with theappropriate Local Finance Bureau of the Ministry ofb)

Equity Method

Finance as required by the Japanese Financial Instruments

Investments in affi liated companies (all 20% toand Exchange Law. Certain supplementary information

50% owned and certain others 15% to 20% owned) are

included in the statutory Japanese language consolidated

accounted for by the equity method in the years ended

financial statements is not presented in the accompanying

March 31, 2010, 2009 and 2008.

consolidated financial statements.

The equity method was applied to 4 affi liates and 1

The translations of the Japanese yen amounts into

unconsolidated subsidiary during the fiscal year 2010. The

U.S. dollars are included solely for the convenience ofequity method was not applied to Japan Motor & Generator

readers outside Japan, using the prevailing exchange rate onCo., Ltd. from this fiscal year due to minor impacts on net

March 31, 2010, which was ¥93 to U.S. $1. The convenience

income and retained earnings to the consolidated financialtranslations should not be construed as representations ofstatements for the current year.

Annual Report 2010

21

The equity method was applied to 5 affiliates and 1d) Derivatives and Hedge Accounting

unconsolidated subsidiary during the fiscal year 2009 and

Derivative financial instruments are stated at fair

6 affiliates during the fiscal year 2008. Investments in 10

value, and the Company and its consolidated subsidiaries

unconsolidated subsidiaries and 4 other affiliated companies,

recognize changes in the fair value as gains or losses unlessthat would not have material effect on the consolidated

derivative fi nancial instruments are used for hedging

financial statements, are stated at cost in 2010.

purposes.
If derivative financial instruments are used as hedgesc)Securities

and meet certain hedging criteria, the Company and its

Securities are classified based on the intent of holding

consolidated subsidiaries defer recognition of gains or

as (a) securities held for trading purposes (hereafter,

losses resulting from changes in fair value of derivative“trading securities”), (b) debt securities intended to be held

financial instruments until the corresponding losses or

to maturity (hereafter, “held-to-maturity debt securities”),

gains on the hedged items are recognized.

(c) equity securities issued by unconsolidated subsidiaries

However, in cases where forward foreign exchange

and affi liated companies, or (d) all other securities that

contracts are used as hedges and meet certain hedging

are not classified in any of the above categories (hereafter,

criteria, forward foreign exchange contracts and hedged“available-for-sale securities”).

items are accounted for in the following manner:

The Company and its consolidated subsidiaries do nothave trading securities and held-to-maturity debt securities.

1.

If a forward foreign exchange contract is executed

Equity securities issued by subsidiaries and affiliatedto hedge an existing foreign currency receivable orcompanies which are not consolidated or accounted forpayable,using the equity method are stated at the moving-average(a)the difference, if any, between the Japanese yencost. Available-for-sale securities with no available fairamount of the hedged foreign currency receivable

market values are stated at the moving-average cost.

or payable translated using the spot rate at theIf the market value of equity securities issued byinception date of the contract and the book value

unconsolidated subsidiaries and affi liated companies andof the receivable or payable is recognized in theavailable-for-sale securities declines significantly, suchstatement of operations in the period which includes

securities are stated at fair market value and the difference

the inception date, andbetween fair market value and the carrying amount is(b)

the discount or premium on the contract (that is,recognized as loss in the period of the decline unless thethe difference between the Japanese yen amount of

declines are considered temporary. If the fair market value

the contract translated using the contracted forward

of equity securities issued by unconsolidated subsidiaries

rate and that translated using the spot rate at theand affi liated companies not accounted for on the equity

inception date of the contract) is recognized overmethod is not readily available, such securities should

the term of the contract.

be written down to net asset value with a corresponding

2.

If a forward foreign exchange contract is executed tocharge in the statement of operations in the event net asset

hedge a future transaction denominated in a foreignvalue declines significantly unless the decline is consideredcurrency, the future transaction will be recorded

as recoverable.

using the contracted forward rate, and no gains or

Available-for-sale securities with available fairmarket values are stated at fair market value. Unrealized

losses on the forward foreign exchange contract arerecognized.

gains and unrealized losses on these securities are reported,22

net of applicable income taxes, as a separate component

Also, if interest rate swap contracts are used as hedgeof net assets. Realized gains and losses on sale of suchand meet certain hedging criteria, the net amount to be

securities are computed using the moving-average cost.

paid or received under the interest rate swap contract is

Annual Report 2010

added to or deducted from the interest on the assets orbuilding improvements, structures and machinery

liabilities for which the swap contract is executed.

belonging to the Company’s Real Estate Division (Osaki,
Shinagawa City, Tokyo).

e)Inventories
Inventories of the Company and its consolidated<Changes in Accounting Policy>

subsidiaries are stated at cost determined principally by

Following the amendments of the Corporation Tax

the weighted-average method as to materials and supplies,

Law of Japan, the method of depreciation applied to theand the specific identification method as to finishedtangible fi xed assets acquired by the Company and certain

products and work-in-process. In the following paragraph,consolidated subsidiaries after April, 2007, was changed.

effective April 1, 2008, the Company and its consolidated

Due to this change, for the year ended March 31, 2008, thesubsidiaries adopted a new accounting standard for

operating income and income before income taxes andmeasurement of inventories, and the carrying amounts

minority interests decreased by ¥212 thousand, comparedstated on the balance sheet have been calculated after awith what would have been reported if the depreciation

devaluation reflecting reduced profitability.

method prior to the change had been applied. The effects
on segment information are described in Note 14.

<Changes in Accounting Policy>
On July 5, 2006, the Accounting Standards Board of<Additional Information>

Japan issued ASBJ Statement No. 9, “Accounting Standard

Effective April 1, 2007, due to the amendment of thefor Measurement of Inventories”. As permitted under the

Corporation Tax Law of Japan, amounts of depreciation

superseded accounting standard, the Company and its

limit (5% of acquisition costs) of tangible fi xed assets

consolidated subsidiaries previously stated inventories

acquired by the Company and certain consolidated

at cost. The new accounting standard requires thatsubsidiaries before April 1, 2007, are recognized as

inventories held for sale in the ordinary course of business

depreciation equally over five years commencing frombe measured at the lower of cost or net realizable value.

the later of the year ended March 31, 2008, or the year

Replacement cost may be used in lieu of the net

immediately following the year in which depreciation

realizable value, if appropriate.

has been recognized up to the depreciation limit. Due toAs a result of the adoption of ASBJ Statement No.

the change, operating income and income before income

9, operating income decreased by ¥835 thousand, andtaxes and minority interests decreased by ¥309 thousand

loss before income taxes and minority interests increased

for the year ended March 31, 2008. The effects on segmentby ¥835 thousand for the year ended March 31, 2009.

information are described in Note 14.

The effects on segment information are described in
Note 14.

Effective from the year ended March 31, 2009, theCompany and certain consolidated subsidiaries changed
the useful lives based on the reassessment of the usefulf)Property, Plant and Equipment andDepreciation

lives in light of the change in the Corporation Tax Law

The Company and its consolidated subsidiaries¥454 thousand, and loss before income taxes and minority

compute depreciation of the remaining assets principallyinterests increased by ¥454 thousand in the year ended

by the declining-balance method at rates based on

March 31, 2009. The effects on segment information are

the useful lives and residual values determined in

described in Note 14.

of Japan. As a result, operating income decreased byaccordance with the Corporation Tax Law of Japan.
However, the company computes depreciation by the

g)

Lease

straight-line method for buildings (exclusive of building

Property, plant and equipment capitalized underimprovements) acquired after March 31, 1998, andfinance lease arrangements are depreciated over the lease

Annual Report 201023

term of the respective assets up to no residual values.
However, as permitted, finance leases commencing priorn) Employees’ Severance and Retirement
Benefits

to April 1, 2008, which do not transfer ownership of the

The Company and its consolidated subsidiaries

leased property to the lessee, are accounted for as operating

provide two types of severance and retirement benefit

leases with disclosure of certain “as if capitalized”

plans, unfunded lump-sum payment plans and funded

information.

non-contributory pension plans, under which all eligible
employees are entitled to benefits based on the level ofh) Allowance for Doubtful Accounts
The Company and its consolidated subsidiaries

wages and salaries at the time of retirement or termination,
length of service and certain other factors.

provide the allowance for doubtful accounts in an

The liabilities and expenses for severance andamount sufficient to cover possible losses on collection

retirement benefits are determined based on the amounts

by estimating individually uncollectible amounts andactuarially calculated using certain assumptions.

applying a percentage based on collection experience tothe remaining accounts.

The Company and its consolidated subsidiaries
provided allowance for employees’ severance andretirement benefits based on the estimated amounts ofi)

Accrued Bonuses for Employees

projected benefit obligation and the fair value of the plan

The Company provides for the payment of employee

assets at each balance sheet date.

bonuses, based on the estimated projected amounts for
employee bonus payments.

Prior service costs are recognized in expenses inequal amounts over the average of the estimated remaining
service lives of the employees (10 years), and actuarial gains

j)Provision for Product Warranties

and losses are recognized in income or expenses using the

The Company and its consolidated subsidiaries makestraight-line method over the average of the estimatedprovision for product warranty by estimating individuallyremaining service lives (from 12 to 15 years) commencing

the expected charge-free expenses.

with the following period.

k)Provision for Loss on Orders
The Company makes provision for losses on orders

The net transition obligation (¥38,222 million)
has been recognized in expenses in equal amounts over
15 years.

by estimating the expected losses incurred after thebalance sheet date.

l)Provision for environmental measures
An amount is posted for the expected future

amount required to provide for expenditures related
to environmental measures such as the processingof hazardous substances as required by laws andregulations.

m) Reserve for Retirement Allowance for
Directors and Corporate Auditors
Certain consolidated subsidiaries recorded 100%of obligation based on their rules and regulations under
the assumption that all directors and corporate auditors
retired at the balance sheet date.

24

Annual Report 2010

<Change in Accounting Policy>
Effective from the year ended March 31, 2010, theCompany and its consolidated domestic subsidiaries
adopted the “Partial Amendments to AccountingStandard for Retirement Benefits (Part 3)” (AccountingStandards Board of Japan (“ASBJ”) Statement No.19
issued on July 31, 2008). The new accounting standard
requires domestic companies to use the rate of returnon long-term government or gilt-edged bonds as ofthe end of the fiscal year for calculating the projected
benefit obligation of a defi ned-benefit plan. Previously,
domestic companies were allowed to use a discount rate
determined taking into consideration fluctuations in
the yield of long-term government and gilt-edged bonds
over a certain period. This change had no impact onthe consolidated fi nancial statements for the year endeds)March 31, 2010.

Translation of Foreign Currency
Accounts and Financial Statements
Receivables and payables denominated in foreigno)Income Tax

currencies are translated into Japanese yen at the yearend

The Company and its consolidated subsidiaries

rates.

recognize tax effects of temporary differences between the

Financial statements of consolidated overseas

carrying amounts of assets and liabilities for tax and financial

subsidiaries are translated into Japanese yen at the year-

reporting. The provision for income taxes is computedend rate, except that net asset accounts are translated

based on the pretax income included in the consolidated

at historical rates and statements of operations items

statements of operations. The asset and liability approach

resulting from transactions with the Company at the rates

is used to recognize expected future tax consequences ofused by the Company.

temporary differences between the carrying amounts ofForeign currency translation adjustments resulting

assets and liabilities for financial reporting purposes andfrom translation of foreign currency financial statements

the amounts used for income tax purposes.

were presented separately in the foreign currency

The Company and some subsidiaries adopted

translation adjustment and minority interests in the

consolidated tax return system.

consolidated balance sheets.

p)t)Change in accounting policies

1)

Unification of Accounting Policies Applied to Foreign

Interest Cost on Borrowing Included in
Acquisition Cost of Fixed Assets
The company capitalizes interest cost on borrowing

Subsidiaries for Consolidated Financial Statements

before the operation of the fi xed asset as part of the cost of

Effective from April, 2008, the Practical Issues

construction in progress on the Osaki Station West Exit

Task Force No. 18 “Practical Solution on Unification ofArea Project. The capitalized interest cost recorded as a

Accounting Policies Applied to Foreign Subsidiaries forpart of construction in progress for the year ended MarchConsolidated Financial Statements” (“PITF No. 18”),31, 2008 was ¥214 million.

issued by the Accounting Standards Board of Japan on
March 17, 2006, has been applied to the Company. PITF

q)

Amounts per Share of Common Stock

No. 18 requires that accounting policies and procedures

The computation of net income (loss) per share

applied by a parent company and its subsidiaries to similar

is based on the weighted average number of shares oftransactions and events under similar circumstances

common stock outstanding during the year.

should, in principle, be unified for the preparation of the

For the years ended March 31, 2010, 2009 andconsolidated financial statements. PITF No. 18, however,

2008, diluted net income per share was not shown since

as a tentative measure, allows a parent company to

the Company had no securities with dilutive effect.

prepare consolidated financial statements using foreign

Cash dividends per share presented in the consolidated

subsidiaries’ fi nancial statements prepared in accordancestatements of operation represent actual amounts

with either International Financial Reporting Standards

applicable to the respective years.

or U.S. generally accepted accounting principles. In thiscase, adjustments for the following six items are requiredr)Statements of Cash Flowsin the consolidation process so that their impact on net

In preparing the consolidated statements of cash

income are accounted for in accordance with Japanese

flows, cash on hand, readily-available deposits and short-

GAAP unless the impact is not material.

term highly liquid investments with maturities that do①②

not exceed three months at the time of purchase, areconsidered to be cash and cash equivalents.

Goodwill not subject to amortization
Actuarial gains and losses of defined-benefit
retirement plans recognized outside profit or loss

Annual Report 2010

25

③
④

⑤

Capita l i zed ex pend itu res for resea rch a nd

individual contracts can be estimated reliably, the domestic

development activities

companies apply the percentage-of-completion method to

Fair value measurement of investment properties,

work commencing in the year ended March 31, 2010. The

and revaluation of property, plant and equipment

percentage/stage of completion at the end of the reportingand intangible assets

period is measured by the proportion of the cost incurred

Retrospective treatment of a change in accounting

to the estimated total cost.
As a result of the adoption, sales increased by ¥1,393

policies⑥

Accounting for net income attributable to minority

million ($14,978 thousand), and operating income andinterests

income before income taxes and minority interests
increased by ¥395 million ($4,247 thousand) for the year2)

New accounting standards for lease transactions as

ended March 31, 2010. Effects of the change on the segment

lesseeinformation are described in Note 14.

Prior to April 1, 2008, the Company and its
consolidated subsidiaries accounted for finance leases that

3. Financial Instruments

do not transfer ownership of the leased property to the

Information on financial instruments for the year

lessee as operating leases with disclosure of certain “as if

ended March 31, 2010 required pursuant to the revised

capitalized” information in the notes to the consolidated

accounting standards is as follows:

financial statements.
of Japan issued Statement No. 13, “Accounting Standard

Items relating to condition of financial
instrumentsfor Lease Transactions” and Guidance No. 16, “Guidance(1) Policy initiatives for financial instruments

on Accounting Standard for Lease Transactions”. The

It is Meiden Group policy to limit fund management

new accounting standards require that all finance lease

to short-term deposits, and use bank loans and thetransactions be treated as capital leases.

issue of short-term bonds for fi nancing. Derivatives

On March 31, 2007, the Accounting Standards Board

1.

Effective April 1, 2008, the Company and its

are used only to hedge the market fluctuation risks

consolidated subsidiaries adopted the new accounting

described below and are not used for speculative

standards for fi nance leases commencing after Marchtransactions.

31, 2008, and capitalized assets used under such leases,
except for certain immaterial or short-term finance leases,(2) Types of financial instruments and risks

which are accounted for as operating leases. As permitted,

Operating claims such as trade notes and tradefinance leases that commenced prior to April 1, 2008, andaccounts receivable are exposed to the credit riskthat have been accounted for as operating leases, continueof the customer. Operating claims denominatedto be accounted for as operating leases with disclosure of

in foreign currencies that arise from our businesscertain “as if capitalized” information.

operations overseas are also exposed to currency rate
fluctuation risk. However, in principle, this exposure

Accounting Standard for Construction Contracts

is hedged through forward exchange contracts,

Effective from the year ended March 31, 2010, theexcept for cases in which the claims are less than thedomestic companies adopted the “Accounting Standard

balance of operating debt denominated in the same

for Construction Contracts” (Accounting Standards Board

foreign currency.

of Japan (“ASBJ”) Statement No.15, issued on December

Stocks that are investment securities, which mainly27, 2007) and the “Guidance on Accounting Standard forconsist of stocks of corporations the Company has

Construction Contracts” (ASBJ Guidance No.18, issued

business or capital alliances with, are exposed toon December 27, 2007). Accordingly, when the outcome ofmarket value fluctuation risk.

3)

26

Annual Report 2010

The majority of operating debt such as trade notes

with foreign currency-denominated operating

and trade accounts payable has payment dates withindebt. In addition, interest rate swap transactions

one year. In addition there are some foreign currency-

are used to control interest rate payment risk

denominated notes and accounts payable related toassociated with borrowings.

raw materials purchases that are exposed to currency

The fair value of investment securities andrate fluctuation risk. Short-term borrowings andfinancial position of the issuer are assessedcommercial paper are mainly used for fi nancing

regularly.

operations transactions, while long-term debt is

The purposes, types of transactions, andused for financing capital investment and operating

deciding authorities for derivative transactions

capital. Borrowings with a floating rate are exposed

are stipulated in derivatives transactions

to interest rate fluctuation risk. However derivatives

ma nagement reg u lat ions a nd approva ltransactions are used as instruments to hedge theregulations, and conduct and management offluctuation risk for interest paid and to ensure thatthese transactions is in accordance with evena fi xed interest rate is paid.

more specific operation rules.

Derivatives transactions consist of forward exchange(iii) Management of liquidity risk (risk that

contracts to hedge currency f luctuation risk

payment cannot be conducted on payment

associated with foreign currency-denominateddate) associated with financing

operating debt and interest rate swaps to hedge

Although operating debt and borrowings areinterest rate payment fluctuation risk associatedexposed to liquidity risk, this risk is managedwith borrowings.

through methods such as preparing andRefer to the note 2 d) (Derivatives and Hedge

renewing cash flow planning as required.

Accounting) for information relating to hedge(iv) Supplementary explanation concerning fairaccounting concerning hedge instruments, hedged

value of financial instruments

items, hedge policies, and the method used for

The fair value of financial instruments includes

evaluating the effectiveness of hedges.

amounts based on market value and amounts
that have been reasonably estimated when no(3) Risk management structure for financial

market value is available. Because the calculation

instrumentsof these amounts incorporate elements subject(i) Credit risk (risk relating to counterparty not

to fluctuation, if different preconditions are

performing contracts, etc.) management

used the resulting amounts could vary. Please

For each counterparty, operating claims balancesnote that for the contract amounts related toare managed based on credit management

derivatives transactions included in the noteregulations and structures are in place to allow“Derivatives Transaction Related”, the amounts

regular assessment of the creditworthiness ofthemselves do not indicate the market risk

major counterparties.

associated with derivatives transactions.

To reduce the credit risk of contracted fi nancial

institutions with a high credit ranking.

Items related to the calculation of fair valueof financial instruments, and securities andderivatives transactions(ii) Market risk (currency and interest rate

Assetsinstitutions when using derivatives transactions,transactions are only conducted with fi nancial

fluctuation risk) management
Forward exchange contracts are used to hedge
future currency rate fluctuation risk associated2.

(1) Cash and time deposits, (2) Trade notes andtrade accounts receivable
These assets are settled in the short-term and fair

Annual Report 201027

value is nearly equivalent with book value, so thea new loan of the same type. For the fair value ofbook value is used.

long-term debt with floating rate interest subject to(3) Investment securities

special treatment with interest rate swaps, the total

The fair value of stocks is the price at the exchangeof principal and interest that is treated together

and the fair value of debt securities is the price atwith the hedged long-term debt is discounted by

the exchange or price presented by correspondent

the interest reasonably expected to be applied for afinancial institutions, etc. Refer to the note 4

similar type of debt.

(Securities) for information by the purpose ofownership for securities.

Derivatives transactions(4) Long-term loans receivable

Because the special treatment of interest rate swaps

The fair value of long-term loans is calculated byis treated together with the hedged long-term

discounting by the interest rate assumed for a new

borrowings, the fair value is stated within the fairloan of the same type.

value of the relevant long-term borrowings. Because
the allocation treatment of forward exchange

Liabilities

contracts is treated together with the hedged account(1) Trade notes and trade accounts payable, (2)receivable, the fair value is stated within the fair

Short-term borrowings, (3) Commercial paper,

value of the relevant account receivable. Please refer(4) Accrued income taxes

to the note f) Derivatives and Hedge Accounting for

These liabilities are settled in the short-term andinformation on derivatives transactions.

fair value is nearly equivalent with book value, so
the book value is used.
(5) Long-term debt

Fair value of financial instruments
Book value and fair values of the fi nancial

The fair value of long-term debt is calculated byinstruments on the consolidated balance sheet at

discounting by the interest rate assumed for receiving

March 31, 2010 are as follows:

Amount posted

Millions of yen
Fair value

Cash and time deposits¥11,236¥11,236—

Trade notes and trade accounts receivable (*1)

59,32759,327—

Investment securities

15,851

15,851

—

386

401

¥15

Total assets¥86,800¥86,815¥15

Trade notes and trade accounts payable (*2)¥27,923¥27,923—

Short-term borrowings

13,027

13,027—

Commercial paper

30,00030,000

—

547

547

—

Long-term debt

24,25524,328¥73

Total liabilities¥95,752¥95,825

¥73

¥74

¥74

—

Long-term loans receivable

Accrued income taxes

Derivatives transactions

28

3.

Annual Report 2010

DifferenceThousands of U.S. dollars
Amount posted
Fair value
Difference
Cash and time deposits$120,817$120,817—

Trade notes and trade accounts receivable (*1)

637,925

637,925—

Investment securities

170,441

170,441

—

4,150

4,312

$162

Total assets$933,333$933,495$162

Trade notes and trade accounts payable (*2)$300,247$300,247—

Short-term borrowings

140,075

140,075—

Commercial paper

322,581322,581

—

5,882

5,882

—

Long-term debt

260,806

261,591$785

Total liabilities$1,029,591$1,030,376

$785

$796

$796

—

Long-term loans receivable

Accrued income taxes

Derivatives transactions*1 Those for unconsolidated subsidiaries and affiliates are included.

*2 Those for unconsolidated subsidiaries and affiliates are included.

Additional Information
Effective from the year ended March 31, 2010, the Company adopted the revised Accounting Standard, “AccountingStandard for Financial Instruments” (Accounting Standards Board of Japan (“ASBJ”) Statement No.10, revised on
March 10, 2008) and the “Guidance on Disclosures about Fair Value of Financial Instruments” (ASBJ Guidance
No.19, revised on March 10, 2008).

4.

Derivatives and hedge accounting(1) Derivatives transactions not subject to hedge accounting
Not applicable for the current fiscal year(2) Derivatives transactions subject to hedge accounting(i) Currency related
Millions of yen

Hedge accounting method

Types of derivatives
transactions

Major hedged items

US dollar-denominatedAccounts receivableforward exchange contracts (planned transactions)
Allocation treatment of
US dollar-denominatedAccounts receivableforward exchange contracts forward exchange contracts
Basic accounting method

Amount ofcontracts

Amount ofcontracts over
one year

Fair value

¥229

¥229

¥224

125

—

128

Amount ofcontracts

Amount ofcontracts over
one year

Fair value$2,462$2,462$2,409

1,344

—

1,376

Thousands of U.S. dollars
Hedge accounting method

Types of derivatives
transactions

Major hedged items

Accounts receivable
US dollar-denominatedforward exchange contracts (planned transactions)
Allocation treatment of
US dollar-denominatedAccounts receivableforward exchange contracts forward exchange contracts
Basic accounting method(Note) Fair value calculation
Calculation is based on the amount presented by the counterparty financial institution.

Annual Report 2010

29

(ii) Interest rate related
Millions of yen
Amount ofcontracts

Amount ofcontracts over
one year

Fair value

Basic accounting method Interest rate swap transactions Long-term debt

¥1,202¥1,077¥(69)

Special treatment forinterest rate swaps

13,365

2,443

(491)

Amount ofcontracts

Amount ofcontracts over
one year

Fair value

Basic accounting method Interest rate swap transactions Long-term debt

$12,925$11,581$(742)

Special treatment forinterest rate swaps

143,710

26,269(5,280)Hedge accounting
methodTypes of derivatives
transactions

Major hedged items

Interest rate swap transactions Long-term debt
Thousands of U.S. dollars

Hedge accounting
methodTypes of derivatives
transactions

Major hedged items

Interest rate swap transactions Long-term debt

(Note) Fair value calculation
Calculation is based on the amount presented by the counterparty financial institution.

4. Securities
A. The following tables summarize acquisition costs and book values of securities with fair value as of March 31, 2010 and 2009.

Acquisition cost

Millions of yen
Book value

Difference

Equity securities¥7,506¥13,930¥6,424Sub-total¥7,506¥13,930¥6,424Equity securities¥2,490¥1,921¥(569)

Sub-total¥2,490¥1,921¥(569)¥9,996¥15,851¥5,855Acquisition cost

Millions of yen
Book value

Difference

Equity securities¥7,019¥11,469¥4,450Sub-total¥7,019¥11,469¥4,450¥2,263¥1,736¥(527)

55

49

(6)

¥2,318¥1,785¥(533)¥9,337¥13,254¥3,9172010
Securities with book value (fair value) exceeding acquisition cost:

Securities with book value (fair value) not exceeding acquisition cost:

Total

2009
Securities with book value (fair value) exceeding acquisition cost:

Securities with book value (fair value) not exceeding acquisition cost:
Equity securities
OthersSub-total
Total

30

Annual Report 2010

Thousands of U.S. dollars
Acquisition cost
Book value
Difference

2010
Securities with book value (fair value) exceeding acquisition cost:
Equity securities$80,710$149,785$69,075

Sub-total$80,710$149,785$69,075

Equity securities$26,774$20,656$(6,118)

Sub-total$26,774$20,656$(6,118)$107,484$170,441$62,957

Securities with book value (fair value) not exceeding acquisition cost:

Total

B. The following table summarizes book values of securities with no fair value as of March 31, 2010 and 2009.
(a) Available-for-sale securities;
Book value
Millions of yen
2010
2009
Non-listed equity securities

¥702

¥694

Thousands of U.S. dollars
2010$7,548(b) Equity securities issued by subsidiaries and affi liated companies;
Book value
Millions of yen
2010
2009

Thousands of U.S. dollars
2010

Investments in unconsolidated subsidiaries

¥94

¥174

$1,011

Investments in affiliated companies

9,147

8,750

98,355

Total¥9,241¥8,924$99,366

C. Total sales amounts of available-for-sale securities sold, gains and losses, in the years ended March 31, 2010, 2009 and2008 are as follows:

2010

Millions of yen
2009

2008

Thousands of U.S. dollars
2010

Sales amount

¥1

¥21

¥260

$11

Gains

1

11

242

11

Losses————5. Inventories
Inventories as of March 31, 2010 and 2009 were as follows:
Millions of yen
2010

2009

Thousands of U.S. dollars
2010

Finished products¥3,782¥4,849$40,667

Work-in-process

22,83130,501

245,494

Materials and supplies

1,427

1,903

15,344¥28,040¥37,253$301,505

Total

Annual Report 201031

6. Subsidies Received from the Japanese Government
The Company received a portion of the acquisition costs of certain tangible fi xed assets from the Japanese Government.
The aggregated amount of the subsidies deducted from the acquisition costs of the tangible fi xed assets as of March 31,
2010, and 2009, were ¥1,331 million ($14,312 thousand).

7. Short-Term Borrowings, Long-Term Debt and Commercial Paper
Short-term borrowings are bank loans and represented by notes. The weighted average interest rate was 1.6% as ofMarch 31, 2010 and 1.4% as of March 31, 2009, respectively.
Long-term debt and commercial paper as of March 31, 2010 and 2009 consisted of the following.

2010

Millions of yen
2009

Thousands of U.S. dollars
2010¥24,255¥26,242$260,806

4,463

6,255

47,989

Total¥19,792¥19,987$212,817

Commercial paper, bearing interest rates of 0.3%

¥30,000—$322,581

1.3% to 2.8% loans from banks and insurance companies
Less: Current portion

The annual maturities of long-term debts as of March 31, 2010 were as follows:Year ended March 31

Millions of yen

Thousands of U.S. dollars

2011¥4,463$47,989

2012

2,943

31,645

2013

2,576

27,699

2014

5,367

57,710

2015

2,634

28,322

2016 and thereafter

6,272

67,441

Commitment Line Agreement
The Company renewed an agreement with a syndicate of 15 Japanese banks to set up a commitment line by multiple
finance institutions for the Company.
The unexecuted balance of lending commitments for the company as of March 31, 2010 and 2009 were as follows:
Millions of yen

32

2010

2009

Thousands of U.S. dollars
2010

Total lending commitments¥40,000¥30,000$430,107

Less amounts currently executed

11,60015,600124,731

Unexecuted balance¥28,400¥14,400$305,376

Annual Report 2010

8. Pledged Assets
The following assets were pledged as collateral as of March 31, 2010 and 2009.
Millions of yen
2010

2009

Thousands of U.S. dollars
2010

Land

¥1,479¥1,479$15,903

Buildings and structures

19,846

20,836

213,398

17

12

183

¥21,342¥22,327$229,484

Investment securities
Total

Obligation with collateral pledged as of March 31, 2010 and 2009 were as follows:
Millions of yen
Long-term debt (Including current portion of long-term debt)

2010

2009

Thousands of U.S. dollars
2010¥11,200¥12,600$120,430

In addition to the above, investment securities of ¥2 million ($22 thousand) as of March 31, 2010 and 2009 were
pledged as collateral for borrowing from financial institutions by an affiliate.
An affi liate engaged in the wind farm business has a project fi nance loan that is secured by pledged business assets
amounting to ¥1,642 million ($17,656 thousand) and ¥1,980 million as of March 31, 2010 and 2009, respectively.
Total business assets of this affi liate are amounting to ¥2,618 million ($28,151 thousand) and ¥3,003 million as ofMarch 31, 2010 and 2009, respectively.

9. Employees’ Severance and Retirement Benefits
The Company and its consolidated subsidiaries adopted the accounting standard for employees’ severance andretirement benefits, under which the liabilities and expenses for severance and retirement benefits are determined basedon the amounts obtained by actuarial calculations.
The liabilities for severance and retirement benefits included in the liability section of the consolidated balance sheets
as of March 31, 2010 and 2009 consist of the following.
Millions of yen
2010

2009

Thousands of U.S. dollars
2010¥54,386¥54,984$584,796

Unrecognized prior service costs

1,062

1,400

11,419Unrecognized actuarial differences(6,760)(9,589)(72,688)

Less fair value of pension assets(19,058)(17,273)(204,925)

Less unrecognized net transition obligation(8,482)(10,180)(91,204)

Liability for severance and retirement benefits¥21,148¥19,342$227,398

Projected benefit obligation

Included in the consolidated statements of income for the years ended March 31, 2010, 2009 and 2008 are severance
and retirement benefit expenses comprising the following.

Annual Report 2010

33

2010

2009

2008

Thousands of U.S.
dollars
2010

Service costs - benefits earned during the year

¥2,326¥2,287¥2,243$25,011

Interest cost on projected benefit obligation

1,431

1,392

1,344

15,387

Expected return on plan assets

(327)

(575)

(656)

(3,516)

Amortization of prior service costs

(337)

(337)

(337)

(3,624)

Amortization of net transition obligation

1,697

1,697

1,698

18,247

Amortization of actuarial differences

859

593

268

9,237

¥5,649¥5,057¥4,560$ 60,742

Millions of yen

Severance and retirement benefit expenses

The discount rate and the rate of expected return on plan assets used by the Company and its consolidated subsidiaries
are 2.7% and 2.0% for 2010, and 2.7% and 3.0% for 2009 and 2008, respectively.
The estimated amount of all retirement benefits to be paid at the future retirement date is allocated equally to each service
year using the estimated number of total service years. (i) Severance and retirement benefit expenses of consolidated subsidiaries
using the simplified method are included in the “Service Costs” above, excluding the amortization of net transition obligation.
(ii) Major expenses of the universally-established welfare program service are included in the “Service Costs” above.

10. Net Assets
Under Japanese laws and regulations, the entire amount paid for new shares is required to be designated as common
stock. However, a company may, by a resolution of the Board of Directors, designate an amount not exceeding one-half ofthe price of the new shares as additional paid-in capital, which is included in capital surplus.
Under the Law, in cases where a dividend distribution of surplus is made, the smaller of an amount equal to 10% of
the dividend or the excess, if any, of 25% of common stock over the total of additional paid-in-capital and legal earnings
reserve must be set aside as additional paid-in-capital or legal earnings reserve. Legal earnings reserve is included in retained
earnings in the accompanying consolidated balance sheets.
Under the Code, companies were required to set aside an amount equal to at least 10% of the aggregate amount ofcash dividends and other cash appropriations as legal earnings reserve until the total of legal earnings reserve and additional
paid-in capital equaled 25% of common stock.
Under the Code, legal earnings reserve and additional paid-in capital could be used to eliminate or reduce a deficit
by a resolution of the shareholders’ meeting or could be capitalized by a resolution of the Board of Directors. Under theLaw, both of these appropriations generally require a resolution of the shareholders’ meeting.
Additional paid-in capital and legal earnings reserve may not be distributed as dividends. Under the Code, however,on condition that the total amount of legal earnings reserve and additional paid-in capital remained equal to or exceeded
25% of common stock, they were available for distribution by resolution of the shareholder’s meeting. Under the Law, alladditional paid-in-capital and all legal earnings reserve may be transferred to other capital surplus and retained earnings,
respectively, which are potentially available for dividends.
The maximum amount that the Company can distribute as dividends is calculated based on the unconsolidated
financial statements of the Company in accordance with Japanese laws and regulations.
At the annual shareholders’ meeting held on June 25, 2010, the shareholders approved cash dividends amounting to
908 million ($9,763 thousand). Such appropriations have not been accrued in the consolidated financial statements as ofMarch 31, 2010. Such appropriations are recognized in the period in which they are approved by the shareholders.

34

Annual Report 2010

11. Contingent Liabilities
Contingent liabilities as of March 31, 2010 and 2009, were as follows:

2010

Millions of yen
2009

Thousands of U.S.dollars
2008

Repurchase of note discounted and endorsed

¥51

¥56

$548

Guarantees of loans from banks to employees andunconsolidated subsidiaries and affiliates

183

245

1,968

12. Lease Information(1) Prior to April 1, 2008, finance leases, which do not transfer ownership of properties to lessees, are not capitalized
and are accounted for in the same manner as operating leases. Certain related information are summarized asfollows:(i)

Assumed amounts (inclusive of interest) of acquisition cost, accumulated depreciation and net book value
as of March 31, 2010 and 2009, are summarized as follows:

2010

Millions of yen
2009

Thousands of U.S.dollars
2010¥1,045¥1,310$11,237

97

124

1,043

Accumulated depreciation

(604)

(769)

(6,495)Net book value

¥538

¥665

$5,785

Assumed acquisition cost
Machinery and equipment
Others(ii) Future minimum lease payments, inclusive of interest, as of March 31, 2010 and 2009 totaled ¥538 million($5,785 thousand) and ¥665 million, including ¥101 million ($1,086 thousand) and ¥127 million due within
one year, respectively.
(iii) Lease payments, which are equal to assumed depreciation charges for the years ended March 31, 2010, 2009
and 2008, were ¥ 127 million ($1,366 thousand), ¥179 million and ¥229 million, respectively.
(iv) Assumed depreciation charges are computed using the straight-line method over lease terms assuming noresidual value.
(2) Future lease receivable under non-cancelable operating leases as lessor as of March 31, 2009 and 2008 totaled¥14 million and ¥51 million due within one year, respectively.
As discussed in Note 2 (t), effective for the year ended March 31, 2009, the Company and its consolidated subsidiaries
adopted the new accounting standard for leases to recognize leased property and lease obligations on the balance sheet.
Finance leases commencing prior to April 1, 2008, which do not transfer ownership of the leased property to the lessee,
are accounted for as operating leases.

13. Research and Development Expenses
Research and development expenses are charged to income as incurred. The amounts charged to income for theyears ended March 31, 2010, 2009 and 2008 were ¥6,836 million ($73,505 thousand), ¥6,939 million and ¥6,530 million,
respectively.

Annual Report 201035

14. Segment Information
Industry segments:
The Company and its consolidated subsidiaries operate principally in five industrial sectors: Social Infrastructure
Systems, Industrial Systems, Engineering, Real Estate and Other sectors.
From this fiscal year, new segmentation has been applied to some subsidiaries upon consideration of theirfunctions.
Figures for the year ended March 31, 2010, 2009 and 2008 under new segmentation are as follows:
Millions of yen
SocialInfrastructure
Systems

Industrial
Systems

Engineering¥108,599¥22,297

Inter-segment

3,930

Total

Real
EstateOthersTotal¥21,576¥3,022¥17,573¥173,067—¥173,067

3,917

421

264

10,815¥19,347(19,347)—

112,529

26,214

21,9973,286

28,388

192,414(19,347)

173,067

Operating expenses

107,41430,49020,1002,094

28,559188,657(18,912)

169,745

Operating income (loss)¥5,115¥(4,276)¥1,897¥1,192¥(171)¥3,757¥(435)¥3,322

Identifiable assets¥75,729¥31,909¥12,665¥22,775¥8,477¥151,555¥55,053¥206,608

Depreciation and amortization

2,236

1,521

258

901

456

5,372

2,239

7,611

Capital expenditures

1,570

2,265

67

228

442

4,572

942

5,514

Year ended March 31, 2010

Eliminations
Consolidated
or Corporate

Net sales:
Outside customers

Millions of yen
SocialInfrastructure
Systems

Industrial
Systems

Engineering¥114,653¥36,307¥22,859

9,184

4,707

123,837

Operating expenses

Real
EstateEliminations
Consolidated
or Corporate

OthersTotal¥2,740¥22,239¥198,798—¥198,798

435

263

12,971¥27,560(27,560)—

41,01423,294

3,003

35,210226,358(27,560)

198,798

120,580

41,946

21,931

2,102

34,642

221,201(26,488)

194,713

Operating income (loss)¥3,257¥(932)¥1,363¥901¥568¥5,157¥(1,072)¥4,085

Identifiable assets¥76,415¥43,104¥13,395¥23,824¥12,688¥169,426¥44,739¥214,165

Depreciation and amortization

2,618

1,264

305

927

442

5,556

2,241

7,797

Capital expenditures

1,639

3,100

156

442

601

5,938

2,280

8,218

Year ended March 31, 2009
Net sales:
Outside customers
Inter-segment
Total

36

Annual Report 2010

Millions of yen
SocialInfrastructure
Systems

Industrial
Systems

Engineering¥103,652¥51,633¥23,231

Inter-segment

10,915

5,727

Total

114,567

Operating expenses

Real
EstateEliminations
Consolidated
or Corporate

Others

Total

¥798

¥24,201¥203,515—¥203,515

348

241

14,22531,456(31,456)—

57,36023,5791,039

38,426234,971(31,456)

203,515

110,42255,851

21,929902

37,269226,373(30,444)

195,929

Operating income (loss)¥4,145¥1,509¥1,650¥137¥1,157¥8,598¥(1,012)¥7,586

Identifiable assets¥77,871¥53,183¥14,479¥24,536¥9,763¥179,832¥56,583¥236,415

Depreciation and amortization

2,152

927

334

549

400

4,362

1,973

6,335

Capital expenditures

1,733

2,145

117

4,796

699

9,490

4,662

14,152

Year ended March 31, 2008
Net sales:
Outside customers

Thousands of U.S. dollars
SocialInfrastructure
Systems

Industrial
Systems

Engineering

RealEstateOthers$1,167,731$239,753$232,000$32,494$188,957 $1,860,935

Inter-segment

42,25842,118

4,527

2,839

116,290

208,032(208,032)

—

Total

1,209,989

281,871

236,527

35,333

305,247 2,068,967(208,032)

1,860,935

Operating expenses

1,154,989

327,849

216,129

22,516

307,087

2,028,570(203,355)

1,825,215

Operating income (loss)$55,000$(45,978)$20,398$12,817$(1,840)$40,397$(4,677)$35,720

Identifiable assets$814,290$343,108$136,183$244,892$91,150 $1,629,623

Depreciation and amortization

24,043

16,355

2,774

9,688

4,904

57,76424,07581,839

Capital expenditures

16,882

24,355

720

2,452

4,752

49,161

10,12959,290Year ended March 31, 2010

Total

Eliminations
Consolidated
or Corporate

Net sales:
Outside customers— $1,860,935$591,968 $2,221,591

Changes in Accounting Policy
As noted in “NOTES TO CONSOLIDATED FINANCIAL STATEMENTS” 2 n), the Company and its consolidated
subsidiaries have applied the “Partial Amendments to Accounting Standard for Retirement Benefits (Part 3)” (AccountingStandards Board of Japan (“ASBJ”) Statement No.19, issued on July 31, 2008), effective from the year ended March 31, 2010.
This change had no impact on the consolidated financial statements for the year ended March 31, 2010.
As noted in “NOTES TO CONSOLIDATED FINANCIAL STATEMENTS” 2 t), the Company and its consolidated
subsidiaries have applied the “Accounting Standard for Construction Contracts” (Accounting Standards Board of Japan(“ASBJ”) Statement No.15, issued on December 27, 2007) and the “Guidance on Accounting Standard for Construction
Contracts” (ASBJ Guidance No.18, issued on December 27, 2007), effective from the year ended March 31, 2010. Accordingly,
when the outcome of individual contracts can be estimated reliably, the domestic companies apply the percentage-ofcompletion method to work commencing in the year ended March 31, 2010. The percentage of completion at the end of thereporting period is measured by the proportion of the cost incurred to the estimated total cost. As a result of the adoption,
sales increased by ¥1,393 million ($14,978 thousand), and operating income and income before income taxes and minority
interests increased by ¥395 million ($4,247 thousand) for the year ended March 31, 2010.

Annual Report 201037

As noted in “NOTES TO CONSOLIDATED FINANCIAL STATEMENTS” 2 e), the Company and its consolidated
subsidiaries have applied Accounting Standard for Measurement of Inventories, effective from the year ended March 31, 2009.
As a result, operating expenses in this consolidated accounting period increased by ¥654 million in Social Infrastructure
Systems business, ¥130 million in Industrial Systems business, ¥50 million in Engineering business, and ¥1 million in
Other businesses. Operating profits also decreased by same amount.
As noted in “NOTES TO CONSOLIDATED FINANCIAL STATEMENTS” 2 f), with the revision of the Corporation
Tax Law in FY2007 from the beginning of the current consolidated accounting period, the depreciation method for property,
plants, and equipment acquired on or after April 1, 2007 has been changed to one based on the revised Corporation Tax
Law. As a result, operating expenses in this consolidated accounting period increased by ¥82 million in Social Infrastructure
Systems business, ¥43 million in Industrial Systems business, ¥7 million in Engineering business, ¥13 million in Real Estatebusiness, and ¥4 million in Other businesses. ‘Eliminations or corporate’ increased by ¥64 million and operating profits
also decreased by same amount.
Additional Information
As noted in “NOTES TO CONSOLIDATED FINANCIAL STATEMENTS” 2 f), with the revision of the Corporation
Tax Law in FY2008 from the beginning of the current consolidated accounting period, the depreciation method for property,
plants, and equipment acquired on or after April 1, 2008 has been changed to one based on the revised Corporation Tax
Law. As a result, operating expenses for the current consolidated accounting year increased by ¥266 million for Social
Infrastructure Systems business, ¥138 million for Industrial Systems business, ¥17 million for Engineering business, and¥1 million for Other businesses. ‘Eliminations or corporate’ increased by ¥33 million and operating profits also decreased
by same amount.
As noted in “NOTES TO CONSOLIDATED FINANCIAL STATEMENTS” 2 f), with the revision of the Corporation
Tax Law in FY2007, due to the application of depreciation methods based on the Corporation Tax Law prior to its revision,
property, plant and equipment acquired on or before March 31, 2007, was treated as follows: Beginning with the next
consolidated accounting year after the consolidated accounting year in which the value reaches 5% of the acquisition
price, the difference between 5% of the acquisition price and the memorandum price was amortized in equal amounts
over a five-year period and included in the posting of depreciation expenses. As a result, operating expenses for the current
consolidated accounting year increased by ¥159 million for Social Infrastructure Systems business, ¥80 million for Industrial
Systems business, ¥15 million for Engineering business, and ¥4 million for Other businesses. ‘Eliminations or corporate’increased by ¥52 million and operating profits also decreased by same amount.
Geographic information :Geographic information is not disclosed due to its insignificance.
Overseas sales information:
Overseas sales information for the year ended March 31, 2010, 2009 and 2008 are as follows:

38

Year ended March 31, 2010

Asia

Millions of yen
Other Areas

Total

Overseas sales¥27,186¥4,391¥31,577

Consolidated sales——¥173,067

Percentage of total sales

15.7

2.5

18.2

Annual Report 2010

Millions of yen
Year ended March 31, 2009

Asia

Other Areas

Total

Overseas sales¥27,393¥4,260¥31,653

Consolidated sales——¥198,798

Percentage of total sales

13.8

2.1

15.9

Millions of yen
Year ended March 31, 2008

Asia

Other Areas

Total

Overseas sales¥31,325¥2,773¥34,098

Consolidated sales——¥203,515

Percentage of total sales

15.4

1.4

16.8

Thousands of U.S. dollars
Year ended March 31, 2010

Asia

Other Areas

Total$292,323$47,215$339,538

Consolidated sales——$1,860,935

Percentage of total sales

15.7

2.5

18.2

Overseas sales

15. Income Taxes
The Company and its consolidated subsidiaries are subject to a number of taxes based on income, which in aggregate,
resulted in normal statutory tax rates of approximately 39.69% for the year ended March 31, 2010, 2009 and 2008,
respectively.
The following table summarizes the significant differences between the statutory tax rate and the Company’s effective
tax rate for financial statement purposes for the years ended March 31, 2010 and 2008.

Statutory tax rate

2010

2009

2008

39.69%

39.69%

39.69%

Permanent difference (social expenses, etc.)

2.04

3.25

Per capital inhabitant tax

6.69

2.60

Net changes in valuation allowance

11.28

1.37

Equity in loss (income) of affiliated companies(10.41)

Intentionally omitted

Tax deduction
Statutory tax rates variance of overseas subsidiaries
Other-net
Effective tax rate

(3.18)(4.29)(18.72)
3.71
34.28%

1.57
39.05%

41.01%

Notes for 2009, on the above table were omitted due to the immaterial differences between the statutory tax rate andthe Company’s effective tax rate.
Significant components of deferred tax assets and liabilities of the Company and its consolidated subsidiaries as ofMarch 31, 2010 and 2009 are as follows:

Annual Report 201039

Millions of yen
2010

2009

Thousands of U.S.dollars
2010

Deferred tax assets:
Net operating loss carry forwards

¥931

¥663

$10,011

Allowance for retirement benefits

7,813

7,118

84,010Bonuses

1,786

1,921

19,204

Others

2,940

3,364

31,613

13,47013,066

144,838

Less:Valuation allowance(1,637)(1,453)(17,602)

Total deferred tax assets

11,833

11,613

127,236

391

260

4,204

Unrealized holding gains on securities

2,326

1,558

25,011

Deferred gain from division of corporation

1,131

1,131

12,161Others

121

94

1,301

Gross deferred tax liabilities

3,969

3,043

42,677

Net deferred tax assets¥7,864¥8,570$ 84,559

Gross deferred tax assets

Deferred tax liabilities:
Reserve for special depreciation

16. Investment and Rental Property
The Company owns some rental office buildings and rental commercial facilities for the purpose of earning rent
income in Tokyo and other regions. Pursuant to the new requirements, information about fair value of investment andrental property is disclosed as follows:2009 end-of-year
balance
Rental real estate¥20,979

2009 end-of-year
balance
Rental real estate$225,581

Millions of yen
Increase (decrease)2010 end of year
during 2010balance¥(782)¥20,197

Thousands of U.S. dollars
Increase (decrease)2010 end of year
during 2010balance$(8,409)$217,1722010 fair value¥46,954

2010 fair value$504,882

The profits and losses associated with rental real estate and real estate that contains portions that are used as rental
real estate for the fiscal year ended March, 2010 are described below.

Rental real estate

Operating income

Millions of yen
Operating cost

Operating profit¥3,286¥2,094¥1,192Thousands of U.S. dollars

Rental real estate

40

Annual Report 2010

Operating income

Operating cost

Operating profit$35,333$22,516$12,817

Additional Information
Effective from the fiscal year ended March 31, 2010, the Company adopted the “Accounting Standard for Disclosuresabout Fair Value of Investment and Rental Property” (Accounting Standards Board of Japan (“ASBJ”) Statement No.20,
issued on November 28, 2008) and “Rental Property” (ASBJ Guidance No.23, issued on November 28, 2008) for the years
ending on or after March 31, 2010.

17. Cash and Cash Equivalents
A. Reconciliations of cash and time deposits shown in the consolidated balance sheets and cash and cash equivalents
shown in the consolidated statements of cash flows as of March 31, 2010 and 2009 are as follows:
Millions of yen
Cash and time deposits

2010

2009

Thousands of U.S. dollars
2010¥11,236¥3,201$120,817

(56)

(78)

(602)

¥11,180¥3,123$120,215

Time deposits with maturities exceeding three months
Cash and cash equivalents

18. Related Party Transactions
Information on related party transactions for the years ended March 31, 2010, 2009 and 2008, and the related amounts
as of those dates is summarized as follows:Year ended March 31, 2010
Japan AE Power Systems Corporation

Year ended March 31, 2009
Japan AE Power Systems Corporation

Year ended March 31, 2008

Millions of yen
Purchase of finished products¥9,635

Accounts payable¥2,762Millions of yen
Purchase of finished products¥11,272

Accounts payable¥3,233

Millions of yen
Purchase of finished products

Accounts payable

Japan AE Power Systems Corporation¥10,042¥3,069Japan Motor & Generator Co., Ltd.

7,620

2,702
Thousands of U.S. dollars

Year ended March 31, 2010
Japan AE Power Systems Corporation

Purchase of finished products

Accounts payable$103,602$29,699

Additional Information
ASBJ Statement No.11, “Accounting Standard for Related Party Disclosures” and ASBJ Guidance No.13, “Guidanceon Accounting Standard for Related Party Disclosures” issued by the Accounting Standards Board of Japan on October
17, 2006, require certain additional related party disclosures effective for years beginning on or after April 1, 2008. Even
pursuant to the new accounting standard, applicable related parties within the new definition of additional related party
disclosures remain unchanged from the previous year as per above.

Annual Report 201041

19. Net Income (Loss) per Share
The basis of per share amount calculation for the year ended March 31, 2010, 2009 and 2008 were as follows:

2010

2009

2008

Thousands of U.S.
dollars
2010¥971¥(1,083)¥2,405$10,441

Earnings not attributable to commonshareholders

—

—

—

—

Net income (loss) allocated to common
stocks971(1,083)

2,405

10,441Millions of yen

Basic earnings per share:
Net income (loss)

Diluted net income per share is not presented, since the Company has never issued any dilutive securities.

Weighted-average number of common stocks

2010

Thousands of shares
2009

2008

226,983

227,110

227,195

20. Subsequent Event
The following appropriation of retained earnings at March 31, 2010 was approved at the annual meeting of theCompany’s shareholders held on June 25, 2010.

Cash dividends, ¥4.0 ($0.04) per share

42

Annual Report 2010

Millions of yen

Thousands of U.S. dollars¥908$9,763

INDEPENDENT AUDITORS’ REPORTTo the Board of Directors of MEIDENSHA CORPORATION:
We have audited the accompanying consolidated balance sheets of MEIDENSHA CORPORATION andconsolidated subsidiaries as of March 31, 2010 and 2009, and the related consolidated statements of operations,changes in net assets and cash flows for each of the three years in the period ended March 31, 2010, expressedin Japanese yen. These consolidated financial statements are the responsibility of the Company’s management.
Our responsibility is to independently express an opinion on these consolidated fi nancial statements based on
our audits.
We conducted our audits in accordance with auditing standards generally accepted in Japan. Those standards
require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements
are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes assessing the accounting principles used andsignificant estimates made by management, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the consolidated financial statements referred to above present fairly, in all material respects,
the financial position of MEIDENSHA CORPORATION and subsidiaries as of March 31, 2010 and 2009, and theresults of their operations and their cash flows for each of the three years in the period ended March 31, 2010, in
conformity with accounting principles generally accepted in Japan.
The U.S. dollar amounts in the accompanying consolidated financial statements with respect to the year
ended March 31, 2010 are presented solely for convenience. Our audit also included the translation of yen amounts
into U.S. dollar amounts and, in our opinion, such translation has been made on the basis described in Note 1
to the consolidated financial statements.

Tokyo, Japan
June 25, 2010

Annual Report 2010

43

OVERSEAS AFFILIATES(AS OF JULY, 2010)

CHINA• DONGGUAN MEIDEN

ELECTRICAL ENGINEERING
CO., LTD.
Yan Wu Industrial District,
Wan Jiang Country, Dongguan,
Guangdong P.C. 523049, P.R.China
Phone: 86-769-2228-5210
Facsimile: 86-769-2228-5250• MEIDEN HANGZHOUDRIVE SYSTEMS CO., LTD.
No.168, Hongxing Road, Qiaonan
District, Xiaoshan Economic &Technological Development Zone,
Hangzhou, Zhejiang, P.C. 311231
P.R.Chaina
Phone: 86-571-8369-6808
Facsimile: 86-571-8369-6818• MEIDEN ZHENGZHOUELECTRIC CO., LTD.

No.87 Hehuan Street,
Zhengzhou Hi-Tech Industries
Development Zone,
Zhengzhou, Henan Province,
P.C. 450001, P.R.China
Phone: 86-371-67848800
Facsimile: 86-371-67848797

44

Annual Report 2010

• MEIDEN SHANGHAI CO., LTD.
15F, Hengji Plaza, No.99
Huaihai-Donglu, Huangpu-Qu,
Shanghai, P.C. 200021, P.R.China
Phone: 86-21-6386-0358
Facsimile: 86-21-6386-0058

HONG KONG• MEIDEN PACIFIC (CHINA) LTD.
Unit 01-02A, 16/F, Tower 1, Ever
Gain Plaza, 88 Container Port Road,
Kwai Chung, N.T., Hong Kong
Phone: 852-2503-2468
Facsimile: 852-2887-8046

INDIA• MEIDEN INDIA PVT. LTD.
910, International Trade Tower,
Nehru Place, New Delhi-110019,
India
Phone: 91-11-4653-9381
Facsimile: 91-11-4653-9385

INDONESIA• P.T. MEIDEN ENGINEERINGINDONESIA

20th Floor, Summitmas I,
Jl. Jenderal Sudirman Kaveling 61-62,
P.O.BOX 6920/KBY/Summitmas I
Jakarta Selatan 12190, Indonesia
Phone: 62-21-520-0612
Facsimile: 62-21-520-0240

KOREA• MEIDEN KOREA CO., LTD.
Royal Building No.410,
5 Dangju-Dong, Chongro-ku,
Seoul, Korea
Phone: 82-2-736-0232
Facsimile: 82-2-736-0234

MALAYSIA• MEIDEN ASIA PTE. LTD.

MALAYSIA BRANCH OFFICE
G. 03, Ground Floor,
Wisma Academy, 4A, Jalan 19/1,
46300 Petaling Jaya,
Selangor Darul Ehsan, Malaysia
Phone: 60-3-7955-4646
Facsimile: 60-3-7954-6466

SINGAPORE• MEIDEN ASIA PTE. LTD.
5, Jalan Pesawat, Jurong Industrial
Estate, Singapore 619363
Phone: 65-6268-8222
Facsimile: 65-6264-4292• MEIDEN SINGAPORE PTE. LTD.

5, Jalan Pesawat, Jurong Industrial
Estate, Singapore 619363
Phone: 65-6268-8222
Facsimile: 65-6264-4292

THAILAND• THAI MEIDENSHA CO., LTD.
15th Floor, Rasa Tower II,
555 Phaholyothin Road, Chatuchak,Chatuchak, Bangkok 10900,
ThailandPhone: 66-2792-4200
Facsimile: 66-2792-4299• MEIDEN ELECTRIC(THAILAND) LTD.

898 Moo 2, Bangpa-in Industrial
Estate, Udomsorayuth Road.,
Klongjig, Bangpa-in, Ayutthaya
13160, Thailand
Phone: 66-35-258258
Facsimile: 66-35-221388

UNITED ARAB EMIRATES• MEIDENSHA CORPORATION
Room 905, AI Reem Tower
AI Maktoum Street, Deira,
P.O.Box 117841, Dubai,
United Arab Emirates
Phone: 971-4-229-9653
Facsimile: 971-4-229-9654

THE UNITED KINGDOM• MEIDEN EUROPE LTD.

NYK Complex Bradbourne Drive,
Tilbrook, Milton Keynes MK7 8BN,
England, U.K.
Phone: 44-1908-276000
Facsimile: 44-1908-276010

THE UNITED STATES• MEIDEN AMERICA, INC.

15800 Centennial Drive, NorthvilleTownship, MI 48168, U.S.A.
Phone: 1-734-656-1400
Facsimile: 1-734-459-1863• MEIDEN TECHNICAL CENTERNORTH AMERICA LLC

15800 Centennial Drive, NorthvilleTownship, MI 48168, U.S.A.
Phone: 1-734-656-1400
Facsimile: 1-734-459-1863

Annual Report 201045

CONSOLIDATED SUBSIDIARY COMPANIESMEIDEN SHOJI Co., Ltd.

Meiden Kankyo Service Co., Ltd.

Capital ¥300 million

Sales of electric products and components
ThinkPark Tower, 2-1-1, Osaki,
Shinagawa-ku, Tokyo 141-6029 Japan
Phone: 3-6384-6600 Fax: 3-6384-6601

Kofu Meidensha Electric Mfg.
Co., Ltd.
Capital ¥400 million

Capital ¥30 million

Maintenance and control service of water
treatment equipment
2-5-15, Osaki, Shinagawa-ku, Tokyo 141-0032
Japan
Phone: 3-3490-0630 Fax: 3-3490-0623

Capital ¥25 million

Manufacture and sales of electric sensors

825 Nakadate, Chuo-shi,
Yamanashi 409-3801 Japan
Phone: 55-274-7910 Fax: 55-274-7996

22-13, Himonya 4-chome, Meguro-ku,
Tokyo 152-0003 Japan
Phone: 3-3716-3686 Fax: 3-3793-8787

Meiden Plant Systems Corporation

MEIDEN SYSCON Co., Ltd.
Capital ¥20 million

Constructing service

Manufacture and sales of switchgear and relays

Meiko Building, 5-5, Osaki 5-chome,
Shinagawa-ku, Tokyo 141-8616 Japan
Phone: 3-5487-6426 Fax: 3-5487-6487

515, Kaminakamizo, Higashimakado-aza,
Numazu-shi, Shizuoka 410-0865 Japan
Phone: 55-929-3792 Fax: 55-929-5946

MEIDEN CHEMICAL CO., LTD.

Meiden Kiden Kogyo Co., Ltd.

Capital ¥95 million

Insulating varnish and molded instrumenttransformer
515, Kaminakamizo, Higashimakado-aza,
Numazu-shi, Shizuoka 410-0865 Japan
Phone: 55-923-0238 Fax: 55-923-0886

Capital ¥20 million

Machining and repairing service
127, Nishishinmachi,
Oota-shi, Gunma 373-0847 Japan
Phone: 276-20-6371 Fax: 276-32-7999

MEIDEN MEDIAFRONT CORPORATION
Sales of products and materials, and agent
service of insurance
Meiko Building, 5-5, Osaki 5-chome,
Shingawa-ku, Tokyo 141-8616 Japan
Phone: 3-3490-3737 Fax: 3-3490-3906

MEIDEN SOFTWARE CORPORATION❖ THAI MEIDENSHA CO., LTD.
Engineering and constructing service❖ MEIDEN ELECTRIC (THAILAND) LTD.
Capital TB70 million

Manufacture and sales of switchgears❖ P.T.MEIDEN ENGINEERINGINDONESIA
Capital US$320 thousand

Engineering and constructing service❖ MEIDEN EUROPE LTD.
Capital £750 thousand

Sales of electric products and components❖ MEIDEN PACIFIC (CHINA) LTD.
Capital HK$10 million

Sales of electric products and components,
and constructing service❖ MEIDEN AMERICA, INC.
Capital US$16.5 million

Sales of dynamometer products andengineering and consulting services

Capital ¥40 million

MEIDEN KOHSAN CO., LTD.
Capital ¥100 million

Capital S$25.4 million

Manufacture and sales of transformers,
switchgears and circuit-breakers and related
engineering and constructing service
Capital TB20 million

HOKUTO DENKO CORPORATION

Manufacture and sales of electric motors

Capital ¥400 million❖ MEIDEN SINGAPORE PTE. LTD.

Printing and copy service
Maruki Building, 13-7, Nishigotanda
1-chome, Shinagawa-ku,
Tokyo 141-0031 Japan
Phone: 3-3490-4767 Fax: 3-3779-3083

Meiden Sheet Metal Products
Corporation

Capital ¥50 million

Capital ¥90 million

Engineering and programming of software

Manufacture and sales of sheet metal

515, Kaminakamizo, Higashimakado-aza,
Numazu-shi, Shizuoka 410-0865 Japan
Phone: 55-923-4966 Fax: 55-923-1191

515, Kaminakamizo, Higashimakado-aza,
Numazu-shi, Shizuoka 410-0865 Japan
Phone: 55-929-5555 Fax: 55-929-5566

MEIDEN FOUNDRY INDUSTRIAL
Co., Ltd.

MSA Co., Ltd.

❖ MEIDEN HANGZHOU DRIVESYSTEMS CO., LTD.
Capital US$11.6 million

Manufacture and sales of electrical morors❖ DONGGUAN MEIDEN ELECTRICAL
ENGINEERING CO., LTD.
Capital HK$8.4 million

Manufacture and sales of switchgears andslaes of electric products and components❖ MEIDEN ZHENGZHOU ELECTRIC
CO., LTD.
Capital CNY40 million

Capital ¥50 million

Casting
4, Nyogetsu, Heisaka-cho, Nishio-shi,
Aichi 444-0305 Japan
Phone: 563-59-6181 Fax: 563-59-4132

Manufacture and sales of surge arresters
Capital ¥400 million

Manufacture and sales of surge arresters
515, Kaminakamizo, Higashimakado-aza,
Numazu-shi, Shizuoka 410-0865 Japan
Phone: 55-929-4300
Fax: 55-929-4399

Meiden System Technology Co., Ltd.
MEIDEN SYSTEM ENGINEERING
Co., Ltd.
Capital ¥50 million

System engineering of plants
2-8-1, Osaki, Shinagawa-ku, Tokyo 141-8565
Japan
Phone: 3-6420-8690 Fax: 3-6420-8727

Capital ¥30 million

Engineering and programming software
515, Kaminakamizo, Higashimakado-aza,
Numazu-shi, Shizuoka 410-0865 Japan
Phone: 55-923-1321
Fax: 55-923-0801❖ MEIDEN SHANGHAI CO., LTD.
Capital ¥320 million

Sales of electric products and components❖ MEIDEN TECHNICAL CENTERNORTH AMERICA LLC.
Capital US$16.2 million

Testing service of engine and drive train❖ MEIDEN ASIA PTE. LTD.
Capital S$6.7 million

Business management for Southeast Asia operations

Plus 8 domestic subsidiaries and
1 foreign subsidiary.
❖ Please see page 44-45 to find contact information foroverseas affiliates.

46

Annual Report 2010

CORPORATE DATACORPORATE NAMEMEIDENSHA CORPORATION (Kabushiki Kaisha Meidensha)

HEAD OFFICE
ThinkPark Tower, 2-1-1, Osaki, Shinagawa-ku, Tokyo 141-6029 Japan

FOUNDED
1897

COMMON STOCK
Authorized
576,000,000 shares
Issued227,637,704 shares¥17,070 million ($161,038 thousand)

SHAREHOLDERS
27,391

TRANSFER AGENTThe Sumitomo Trust & Banking Co., Ltd.

BOARD OF DIRECTORS(AS OF JUNE 25, 2010)

CHAIRMANPRESIDENT

Keiji Kataoka

Junzo Inamura

EXECUTIVE VICE PRESIDENTEXECUTIVE VICE PRESIDENT

Hiroshi Sugiyama

Noriyasu Nagai

DIRECTOR AND
SENIOR MANAGINGEXECUTIVE OFFICERDIRECTORSSENIOR CORPORATE
AUDITORSCORPORATE AUDITORS

Yuji Hamasaki
Kozo Masaki

Tetsuro Kawakami
Botaro Hirosaki

Kazuo Hosoya
Kaoru Sutou

Hideo Fujii
Sanpei Nozaki

Annual Report 201047