Brief report on the Financial Statements for the period ending March, 2007
May 15, 2007

Name of listed company: DAI-DAN Co., Ltd.
Code No.:

Listed Shares Exchanges:
Tokyo Stock Exchange 1st section andOsaka Stock Exchange 1st section

1980

URL http://www.daidan.co.jp/
Representative of Company: Toshikazu ANDO, President
Tel. (06) 6441 - 8231
Inquiries to be addressed to: Goh TAJIMA, Director & General Manager of General Administration Division
Date scheduled for ordinary shareholders general meeting convention: June 28, 2007
Date scheduled for asset securities report submission:
June 29, 2007
Date scheduled for dividend payment commencement:
June 29, 2007
(Amounts are indicated with figures less than 1 million yen discarded)

1. Consolidated performance for the period ending March, 2007
(From April 1, 2006 to March 31, 2007)(1) Consolidated management performance
Sales amount
Period ending March 2007
Period ending March 2006

(Percentage indications show increase or decrease from the previous period.)

Operating profit

Ordinary profit

Current net profit

Million yen％

Million yen％

Million yen％

Million yen％

159,043
151,859

4.7
-2.8

423
-1,192

―
―

704
-713

―
―

529
-810

―
―

Current net earnings
per share

Current net earning pershare after making
potential shareadjustments

Yen
Sen
Period ending March 2007
11.78
Period ending March 2006
-18.06(Reference) Investment profit or loss on equity method

Yen

Equity capital vs.
current period net
profit ratio
％

Sen

―
―

Total asset vs. ordinary
profit ratio

Sales amount vs.
operating profit ratio

％

1.1
-1.7

％

0.5
-0.5

End of March 2007 - Million yen

0.3
-0.8

End of March 2006

- Million yen(2) Consolidated financial condition
Total assets

Nets assets

Million yen

Shareholders capital rate

Period ending March 2006

142,944
130,362(Reference) Equity capital

Period ending March 2007 45,896 Million yen

Period ending March 2007％

Million yen

45,94547,402

Shareholder's capital per share
Yen
Sen

32.1
36.4

1,021.29
1,054.52

Period ending March 2006

-Million yen(3) Consolidated cash flow condition
Cash flow on sales
activities

Cash flow on investment
activities

Million yen

Million yen-2,786
1,072

Period ending March 2007
Period ending March 2006

Cash flow on financial
activities

Period end balance of
cash and equivalent items

Million yen

1,718
1,824

Million yen-942-2,53921,071
23,1392. Dividend status
Per-share dividendInterim period end Period end
Through year

(Base date)

Yen
Period ending March 2006
Period ending March 2007
Period ending March 2008
(Forecast)

Sen

5 00
5 00
5 00

Total dividend Dividend trend Net asset vs. dividend(through year) (consolidated) ratio (consolidated)

Sen

Yen

Sen

Million yen

％

％

11 00
11 00
11 00

16
16
16

00
00
00

719
719

―
135.8
84.6

1.5
1.5

Yen

(Note) Breakdown of dividend at the end of the period ending March 2007: Special dividend 6 yen

3. Estimate of consolidated performance for the period ending March 2008 (From April 1, 2007 to March 31, 2008)

Sales amountInterim
Total period

Million yen％

97,000173,000

56.0
8.8(Percentage indications show increase or decrease from the previous period for
total period and from the previous year interim period for interim period.)
Current net earnings
Operating profit
Ordinary profit
Current net profit
per share
Million yen
Million yen
Million yen％％％ Yen Sen

-1,000
2,000

―
372.1

(Reference) ①Estimated amount of work order received (interim)②Estimated amount of work order received (full year)-1,0002,000

67,000 million
143,000 Million yen

1

―
183.8

-800
850

―
60.5

-17.8018.91

4. Others(1) Changes in key subsidiaries in the period (changes in specific subsidiaries requiring changes of consolidation
scope)None(2) Changes in accounting procedure principles, proceedings, indication methods, etc. related to consolidated
financial statement preparation(Those described as changes in significant matters basic to consolidated financial statement preparation)• Changes resulting from revision of accounting standards etc.
Yes
‚ Changes other than •None(Note) For details see “Changes in significant matters basic to consolidated financial statement preparation” on Page 17.

(3) Number of issued shares (common stock)• Number of issued shares at the end of period (including treasury stock)
Period ending March 2007 45,963,803 shares
Period ending March 2006 45,963,803 shares‚ Number of treasury stock at the end of period
Period ending March 2007 1,024,532 shares
Period ending March 2006 1,013,620 shares(Note) See “Per-share information” on Page 20 for number of shares basic to calculation of per-share current period net
profit (consolidated).

(Reference) Outline of individual performance
1. Individual performance during the period ending March 2007 (From April 1, 2006 to March 31, 2007)(Percentage indications show increase or decrease from the previous period.)(1) Individual management performance
Sales amount
Period ending March 2007
Period ending March 2006

Operating profit％ Million yen

Million yen

155,022
148,432

4.4-1.2

Current net earnings
per share
Yen

1,528
-1,367

Sen

Yen

―
―

Total assets

Net assets

Period ending March 2006

Current net profit％ Million yen

％

―
―

―
―

―
―

1,912
-859

409
-923

Current net earningper share after
making potential
share adjustments

9.12-20.53

Period ending March 2007

Ordinary profit％ Million yen

Sen(2) Individual financial condition

Million yen
Period ending March 2007
Period ending March 2006
(Reference) Equity capital

Shareholders capital
rate

Shareholder's capital per
share
％
Yen
Sen

Million yen

141,638
128,51745,45547,07532.1
36.6

Period ending March 2007 45,455 Million yen

1,011.49
1,046.97

Period ending March 2006-

Million yen

2. Individual performance forecast for the period ending March 2008 (From April 1, 2007 to March 31, 2008)

Sales amountMillion yen

Interim
Total period％

95,000 56.6
170,000 9.7(Percentage indications show increase or decrease from the previous period for
total period and from the previous year interim period for interim period.)
Current net
Operating profit
Ordinary profit
Current net profit
earnings per share
Million yen
Yen
Sen％ Million yen％ Million yen％-1,000
2,000

―
29.6

(Reference) ①Estimated amount of work order received (interim)②Estimated amount of work order received (full year)ø-1,000
2,000

―
3.8

-800
850

―
110.9

-17.8018.91

65,000 Million yen
140,000 Million yen

Explanation about adequate use of performance forecast
Performance forecast has been prepared on the basis of information available as of the date of presentation and actual
performance may differ from forecast values because of various future factors. See Page 4 for matters related to the above
performance forecast.

2

1. Management Record(1) Analysis of the management record
During the current period, economy in our country remained on an upturn, even though it is mild,
regardless of the presence of causes for concerns such as steep rises of crude oil and raw material
prices, as corporate earnings turned up through steady personal consumption and capital
investment.
In the construction industry, even though private capital investment continued strong, public
investment remained on the decline. Furthermore, due to intensified price-cutting competition,
the construction business continued to be in a severe situation.
Under these circumstances, our corporate group made maximum concerted efforts to secureorders and profits. As a result, the consolidated record for the current term was as shown below.
Amount of work orders received at the corporate group was 144,022 million yen with a 4.0%
(5,934 million yen) decrease from the previous consolidated accounting year. Amount ofcompleted work was 159,043 million yen with a 4.7% (7,183 million yen) increase from theprevious consolidated accounting year.
As for profits, operating profit was 423 million yen with an increase of 1,615 million yen fromthe previous consolidated accounting year and ordinary profit was 704 million yen with anincrease of 1,418 million yen from the previous consolidated accounting year. As a result, thecurrent period net profit was 529 million yen with an increase of 1,340 million yen from theprevious consolidated accounting year.
(2) Analysis related to financial condition
Status of cash flow
Cash and cash equivalent for the end of the current term consolidated accounting period(hereinafter referred to as “the fund”) declined 2,067 million yen compared with the end of theprevious consolidated accounting year to 21,071 million yen.
(Cash flow from sales activities)
Cash flow on sales activities in the current consolidated accounting year showed a funddecrease of 2,786 million yen due to increased accounts receivable, incomplete work
expenses, etc. with an eventual decrease of 3,859 million yen from the previous consolidated
accounting year that showed a fund increase of 1,072 million yen.
(Cash flow from investing activities)
Cash flow on investment activities in the current consolidated accounting year showed a fundincrease of 1,718 million yen due to investment securities sale etc. with an eventual decreaseof 105 million yen from the previous consolidated accounting year that showed a fundincrease of 1,824 million yen.
(Cash flow from financing activities)
Cash flow on financial activities in the current consolidated accounting year showed a funddecrease of 942 million yen due to dividend payment, loans payable repayment, etc. from theprevious consolidated accounting year that showed a fund decrease of 2,539 million yen. The
cash flow for the current year therefore showed an eventual fund increase of 1,597 million
yen from the previous year.

3

Transition of cash flow-related indexes
Period ending
March 2003

Period ending
March 2004

Period ending
March 2005

Period ending
March 2006

Period ending
March 2007

Shareholders’ equity ratio

31.8%

35.2%

33.8%

36.4%

32.1%

Shareholders’ equity ratio at
market value

14.2%

21.6%

26.3%

30.1%

23.5%

－

－

9.9 years－

Number of debt redemption years

2.0 years

5.5 times－－－
Shareholders’ equity ratio:
Shareholders’ equity/Total assets
Shareholders’ equity ratio at market value: Aggregate market value of shares/Total assets
Number of debt redemption years:
Interest-bearing debt/Operating cash flow
Interest coverage ratio:
Operating cash flow/Interest paid
∗ Indexes are all calculated by financial values on a consolidated basis.
For the operating cash flow, the cash flow from sales activities (interest-paid and after
breaking corporate tax, etc.) recorded in the Statement of consolidated cash flow is used. Theinterest-bearing debt is subject to all debts, which bear interest, among those recorded in the
consolidated balance sheet. Furthermore, for the interest paid, the amount of interest paid,
which is recorded in the Statement of consolidated cash flow, is used.
Interest coverage ratio

27.1 times(3) Basic policy on profit distribution and the current/next period dividend
Our basic policy is endeavor to build a sound financial constitution for steady, continuous
dividend payment considering profit return to shareholders through dividends the top-mostmanagerial measures.
Dividends at the end of the current period are expected to be 11 yen per share – 5 yen in
ordinary dividend and 6 yen in special dividend. As a result, annual dividend per share for thecurrent period will be 16 yen including the interim dividend.
Dividends for the next period are also expected to be the same amount of 16 yen.
(4) Outlook for next term
In the construction industry, despite private sector equipment investment expected tocontinue steady, public sector investment will continue sluggish and order acceptanceenvironment may continue severe because of keen price competition.
Forecast of the corporate group for the next period is expected to be 143,000 million yen inwork orders received, 173,000 million yen in completed work, 2,000 million yen in ordinary
profit, and 850 million yen in net profit.
As from the next period, cases of 100 million yen or over with work period exceeding 1 year
will be closed in accordance with work progress standards.
(5) Business risk, etc.
The following section describes risks that may have significant influence on the judgment ofinvestors regarding the business of our corporate group. In this connection, our corporategroup will recognize the potential for these risks to occur and then make effort to prevent therisks from occurring and deal with them if occurred.
1) Seasonal variation of performance
Our corporate group completes works with many concentrated in the second half of theaccounting year, while the selling expenses and general administrative expenses are almost
evenly spent in the first and second halves of the accounting year. Consequently, the groupperformance for the first half has a tendency to result in operating loss.
2) Uncollectible accounts receivable
Depending on the rapid worsening of earnings or financial situation of customers, part ofreceivables, etc. owned by our corporate group may become unrecoverable.
3) Steep rises of prices of materials and supplies
If it is hard to pass steeply risen prices of equipment and materials on to contract amounts,
these prices can have influence on our corporate group performance.
4) Occurrence of loss-making work
If any loss-making work occurs due to an unexpected increase of construction cost or else
arising in the course of construction, it can have influence on our corporate groupperformance.
4

5)

6)

7)

Decline in values of owned assets due to their declined market prices
For immovable properties or securities owned by the Company, if they should be treated as
shrinkage loss due to decline in their market prices, that can have influence on our
corporate group performance.
Disasters and accidents
Our corporate group executes construction on the basis of safety-first and exerts its utmost
effort in quality control. However, there may be cases where an unexpected disaster or
accident in the course of construction occurs resulting in compensation for damage, defectliability, or else and further has influence on the performance.
Fluctuations in country risk and exchange rate
Our corporate group has been expanding its overseas business centering on Southeast
Asian markets.
The group performance can be influenced by the occurrence of terrorism or politicalinstability, unexpected legislative modifications/amendments, worsening of market
conditions, or exchange rate fluctuations.

52. Situation of the Corporate GroupThe corporate group consists of the company, 9 consolidated subsidiaries, and 1 non-consolidated
subsidiary. The group designs, supervises, and executes electrical work, air-conditioning work,
plumbing/sanitation work, and related works.
The position of our group relating to business and the systematic chart of our business are as
follows:(1) Position of our group relating to businessPart of the work of orders received by us is relegated to DAI-DAN Service Kanto Co., Ltd.,DAI-DAN Service Kansai Co., Ltd., DAIDEN Koji Co., Ltd.,Okayama DAIDEN Setsubi
Co., Ltd., Kyushu DAIDEN Setsubi Co., Ltd., Kumamoto DAIDEN Setsubi Co., Ltd., and
DAI-DAN PHILIPPINES, INC. We offer technical assistance to THAI O.D.D. CO., LTD.
MERINO O.D.D. SDN. BHD. stopped new projects and is expected to be liquidated as soon
as it is ready for liquidation.
Kyo Gas Co., Ltd., included so far in the group, made a liquidation resolution during thecurrent consolidated accounting year, and has already completed settlement of nearly all
debts and credits. Consequently, Kyo Gas was excluded from consolidation scope at the endof the current consolidated accounting year. DAIDEN Koji Corp. is no longer an affiliatecompany because of the decrease in voting right holding rate to 14.3% due to capital increase.
Consequently, DAIDEN was excluded from consolidation scope at the end of the current
consolidated accounting year.

(2) Systematic chart of business

Customers(Designing, supervising, and executing facility construction works)

Electrical,
Sales ofair-conditioning,facilities andplumbing/sanitation equipment
work
Consolidated subsidiary
MERINO O.D.D.
SDN.BHD.

DAI-DANCo., Ltd.
Construction
facility workWorks
execution
Electrical, air-conditioning,plumbing/sanitation work

Maintenance/
management

Electrical,

Technical
air-conditioning,assistance plumbing/sanitation
work

Consolidated subsidiary
THAI O.D.D.
CO., LTD.

Works
execution
Electrical facility work
Consolidated subsidiaries
DAIDEN Koji Co., Ltd.

Consolidated subsidiaries
DAI-DAN Service Kanto Co., Ltd.
DAI-DAN Service Kansai Co., Ltd.
Okayama DAIDEN Setsubi Co., Ltd.
Kyushu DAIDEN Setsubi Co., Ltd.
Kumamoto DAIDEN Setsubi Co., Ltd.
DAI-DAN PHILIPPINES, INC.

Maintenance control of air conditioning equipment
Non-consolidated subsidiaryPFI Kyoto School Amenity Co., Ltd.

6

3. Management Policies(1) Basic policy on management
Our company, as a general facility work company, enforces a basic management policy of“challenging to create a new value and contributing to the achievement of more favorable
global environment and the progress of society at all times” and provides customers withtechnologies and services, which are ahead of their needs, thus working toward upgrading thecorporate value. Furthermore, the company has an on-target grasp of changes in the industrial
structure and conducts the speedy and practical management with an eye toward becoming avigorous company.

(2) Medium- and long-term management strategy and challenges
In accordance with the medium-term management plan “DAIDAN Evolution 80”executed from
April 2006, we are making a company-wide concerted effort with the aim of securing earnings
that enable continued progress of the Company and also establishing a structural basis for future
growth.
To be more specific, we are working toward finding new customers and strengthening our ties
with existing customers, thus challenging the expansion of business. Particularly, we arefocusing on marketing operations to secure orders for renewal works through capitalizing on
our total facility engineering technologies for electrical, air conditioning, plumbing andsanitation works, and others. Furthermore, we are stepping up efforts to expand business inplant projects and others with recent boosts in private capital investments. To accomplish thosechallenges, we are pushing ahead with technical development through predicting the trends ofcustomer needs as well as conducting proposal-oriented marketing activities by the use oftechnologies owned by the Company.
As to construction works, we ensure steady implementation of construction review sessions andcompletion assessment sessions to enhance communications, thus not only achieving provisionof quality and safety but also accomplishing cost cutting.
As to challenges to environmental issues, we are working toward recycling resources, cutting inconstruction wastes, and others, and also providing technologies developed with consideration
given to reduction in environmental burdens such as resource saving and energy saving.
Particularly, we upgrade energy saving proposals capitalizing on our strength as a total facility
construction work contractor, thus pressing on with involvement in the ESCO business.
As a part of human resources development furtherance programs, a continuing education
system (DAI-DAN CPD system) directly linked to jobs was established to maintain andimprove ability of all technical employees and was commenced as from April 2007.
With these measures the group will rebuild the ”DAI-DAN with Proud Technologies” in an
effect to improve customer satisfaction and strengthen price competitiveness.
Furthermore, we set the shareholder’s share operating income margin as our target management
benchmark.

7

4. Consolidated Financial Statements, etc.
(1) Consolidated balance sheet
By period

Accounts

End of the current
consolidated accounting year
(As of March 31, 2007)
Component
ratio

Amount(Assets)(in millions of yen)
End of the previous
consolidated accounting year
Difference(As of March 31, 2006)
Component
ratio

Amount%%Current assets
Cash on hand and in banks
Note receivables, completed
work accounts receivables
Securities
Incomplete work
expenditures
Deferred tax reserves

21,09823,166-2,06761,02654,873

6,152

OthersAllowance for bad debts
Total current assets

200

200

-0

29,94822,360

7,588

1,644

1,619

24

5,612

5,032

580

-25

-188

162

119,504

83.6

107,064

82.1

12,440

Fixed assets
Tangible fixed assets
Buildings and structures
Machinery and equipment,
and transportationequipment
Tools and facilities

2,227

2,352

-124

19

26

-6

170

182

-11

Land

1,077

1,140

-62

3,495

3,700

-205

Good will

―

2

-2

Others

400

652

-252

Total intangible fixed assets
Investments and other assets

400

655

-254

Investment securities
Long-term loans
receivables
Prepaid pension costs

13,927

16,371-2,443

117

191

-73

3,349

―

3,349

Others

2,821

2,948

-127

Total tangible fixed assets
Intangible fixed assets

Allowance for bad debts
Total investments and otherassetsTotal fixed assets

-672

-568

-103

19,543

18,942

601

23,43916.4

23,297

17.9

141

Total assets

142,944100.0

130,362

100.0

12,5818

(in millions of yen)

By period

Accounts(Liabilities)
Current liabilities
Notes payable, work accounts
payableShort-term loans payable
Corporate taxes, etc. payable
Incomplete work accounts
received
Completed work
compensation reserves
Work loss reserves
OthersTotal current liabilities

End of the current
consolidated accounting year
(As of March 31, 2007)
AmountComponentratio%

End of the previous
consolidated accounting
year
Difference(As of March 31, 2006)
AmountComponent
ratio%

63,29149,353

13,937

8,098

7,721

377

174

145

28

14,51812,322

2,195

155

92

63

867

1,573

-706

5,077

5,748

-671

92,182

64.5

76,95659.0

15,225

Fixed liabilities
Long-term loans payable

1,680

2,253

-573

Deferred tax liability
Reserves for retirement
benefits
Reserves for directors’
retirement benefits
Others

568

687

-119

1,946

2,360

-414

615

532

83

5

10

-4

Total fixed liabilities

4,815

3.4

5,843

4.5

-1,027

Total liabilities

96,99867.9

82,80063.5

14,197

―

―

158

0.1

158

(Minority interest equity)
Minority interest equity9(in millions of yen)
By period

Accounts(Net Assets)
Shareholders’ equity
Capital stock
Capital surplus
Earned surplus
Treasury stock
Total shareholders’ equity
Evaluation / Currency translationdifference, etc.
Evaluation difference of othersecurities
Deferred profits and losses onhedgesCurrency translation
adjustment accountTotal evaluation / currencytranslation difference, etc.
Minority interest equity
Total net assets
Total liabilities and net assets(Shareholders’ equity)
Capital stock

End of the current
consolidated accountingyear(As of March 31, 2007)
Component
Amountratio%

End of the previous
consolidated accounting
year
Difference(As of March 31, 2006)
Component
Amount
ratio
%

4,479
4,783
33,367-523
42,106

3.1
3.4
23.3
-0.4
29.4

―
―
―
―
―

―
―
―
―
―

4,479
4,783
33,367-523
42,106

3,801

2.7

―

―

3,801

-0

-0.0

―

―

-0

-11

-0.0

―

―

-11

3,789

2.7

―

―

3,789

49
45,945
142,944

0.0
32.1
100.0

―
―
―

―
―
―

49
45,945
142,944

―

―

4,479

3.4

-4,479

Capital surplus

―

―

4,782

3.7

-4,782

Earned surplus
Evaluation difference of othersecurities
Currency translation
adjustment accountTreasury stock――

33,581

25.8-33,581

―

―

5,093

3.9

-5,093

―

―

-23

-0.0

23

―

―

-511

-0.4

511

Total capital
Total liabilities, minority interest
equity and shareholders’ equity――

47,402

36.4-47,402――130,362100.0-130,36210

(2) Consolidated profit and loss statement
By period

Accounts

Current consolidated
accounting year
(From April 1, 2006
to March 31, 2007)
AmountPercentage(in millions of yen)Previous consolidated
accounting year
(From April 1, 2005
Difference
to March 31,2006)
AmountPercentage%

Completed work amountCompleted work costCompleted work
gross profit
Selling expenses andgeneral administrative
expenses
Operating profit orOperating loss (−)
Non-operating revenue
Interests received
Dividends received
Insurance claim received
Gain on foreignexchange
OthersNon-operating expenses
Interest payable
Payment guarantee
chargeOthersOrdinary profit or
Ordinary loss (−)
Special profits
Profit on sales of fixed
assetsProfit on sales ofinvestments in securities
Profit gained byreturning allowance forbad debts
Special losses
Loss on sales of fixed
assetsLoss on retirement of
fixed assets
Loss on sales ofinvestments in securities
Evaluation loss on
investments in securities
Equity fluctuation loss
Affiliate company
liquidation loss
Shrinkage loss
Special loss on overseas
work
OthersCurrent net profit before
tax adjustments, etc. or
Current net loss before
tax adjustments, etc. (−)
Corporate tax, residence
tax and business tax
Adjustment amounts suchas for corporate taxes
Profit of minority interests
Current net profit orCurrent net loss (−)%

159,043
148,901
10,142

100.0
93.6
6.4

151,859
143,639
8,220

100.0
94.6
5.4

7,183
5,261
1,922

9,718

6.1

9,412

6.2

306

423

0.3

-1,192

-0.8

1,615

(482)
31
162
46
216

0.3

(707)
16
109
254
298

0.5

(-224)
15
52
-207
-82

26
(201)
179
10

0.2

12
704

0.4

(982)
16

0.6

28
(229)
195
23
9
-713
(944)
647

0.2

-0.5
0.6

-2
(-27)
-16
-13
2
1,418
(38)
-631

950

261

688

16

35

-19

(250)
7

0.1

(1,231)247

0.8(-980)
-240

15

43

-27

―

0

-0

7

139

-131

41
117

―
―

41
117

―
―

135
658

-135
-658

61
1,436

0.9

8
-1,000

-0.7

53
2,437

164

0.1

176

0.1

-12

724

0.5

-410

-0.3

1,134

18
529

0.0
0.3

43
-810

0.0
-0.5

-24
1,340

11

(3) Statement of consolidated surplus
By period

Accounts(Capital surplus)
Capital surplus balance at the
beginning of the period
Increase in capital surplus balance
Gain on disposal of treasury
stock
Capital surplus balance at the endof the term
(Retained earnings)
Retained earnings balance at the
beginning of the period
Retained earnings increased
amountNet profit for the current term
Retained earnings decreased
amountShareholders’ dividends
Directors’ bonuses
Current net loss
Retained earnings balance at theend of the term(in millions of yen)Previous consolidated
accounting year
(From April 1, 2005
to March 31,2006)
Amount

4,782

0

0
4,782

35,112

―

―

719
1
810

1,531
33,581

12

(4) Statement of changes in consolidated shareholders’ equity, etc.
Current consolidated accounting period (from April 1, 2006 to March 31, 2007)(in millions of yen)
Shareholders’ equity
Capital stock
Balance as of March 31, 2006

Capital surplus

Earned surplus

Treasury stock

Total
shareholders’equity4,782

33,581-511

42,332

4,479

Amount of changes made duringconsolidated accounting period
Dividend of earned surplus
Directors’ bonuses
Current net earnings per share

-718

-718

-1

-1

529

529
-20

-20

2

3

-23

5

-17

Acquisition of treasury stock0

Disposition of treasury stock
Affiliate company consolidation
exclusion
Amount (net amount) of changes
made in items other thanshareholders’ equity duringconsolidated accounting period
Total amount of changes made duringconsolidated accounting period
Balance as of March 31, 2007

―

0

-214

-11

-225

4,479

4,783

33,367-523

42,106

Evaluation / Currency translation difference, etc.

Balance as of March 31, 2006

Evaluationdifference ofother securities

Profit or loss
on hedge
carriedforwardCurrencytranslation
adjustment
account

Total
evaluation /currencytranslationdifference, etc.

5,093

―

-23

5,070

Minority
interest
equity158

Total net
assets47,561

Amount of changes made duringconsolidated accounting period-718

Dividend of earned surplus-1

Directors’ bonuses
Current net earnings per share

529

Acquisition of treasury stock-20

Disposition of treasury stock3

Affiliate company consolidation
exclusion
Amount (net amount) of changes
made in items other thanshareholders’ equity duringconsolidated accounting period
Total amount of changes made duringconsolidated accounting period-17

Balance as of March 31, 2007

-1,292-0

12-1,280-109-1,389-1,292-0

12-1,280-109-1,615

3,801

-0

-11

3,789

49

45,94513

(5) Statement of consolidated cash flow
(in millions of yen)
By period

Accounts
Cash flow on sales activities
Current net profit before tax adjustments, etc. or
Current net loss before tax adjustments, etc. (−)
Depression expenses
Consolidated adjustment account depreciation amount
Goodwill depreciation amount
Increased or decreased amount of allowance for bad debts
Increased or decreased amount of reserves for retirement benefits
and reserves for directors’ retirement benefits
Earned interest and dividends received
Interest paid
Shrinkage loss
Evaluation loss on investments in securities
Profit or loss on sales of investments in securities
Profit or loss on sales of fixed assets
Loss on retirement of fixed assets
Increased or decreased amount of sales credits
Increased or decreased amount of incomplete work expenditures
Increased or decreased amount of procurement credits
Increased or decreased amount of incomplete work received
amountOthersSub-total
Received amount of interests and dividends
Paid interest amountPaid amount of corporate tax, etc.
Cash flow on sales activities
II. Cash flow on investment activities
Expenditures by depositing of time deposits
Expenditures by acquiring of securities
Revenue by sales of securities
Expenditures by acquiring of tangible fixed assets
Revenue by sales of tangible fixed assets
Expenditures by acquiring of investment securities
Revenue by sales of investment securities
Expenditures by loans
Revenue by recovery of loans
Expenditures by acquiring of other fixed assets
Revenue by sales of other fixed assets
Expenditures by decline in other fixed liabilities
Cash flow on investment activities
III. Cash flow on financial activities
Revenue by short-term loans
Expenditures by return of short-term loans
Revenue by long-term loans
Expenditures by return of long-term loans
Revenues from new stock issue
Expenditures by acquiring of treasury stock
Revenue by sales of treasury stock
Paid amount of dividends
Paid dividend to minority interests
Cash flow on financial activities
IV. Translation difference relating to cash and cash equivalents
V.
Increased or decreased amount of cash and cash equivalents
VI. Balance of cash and cash equivalents at the beginning of period
VII. Decrease in cash and cash equivalents due to consolidation
exclusion
VIII. Balance of cash and cash equivalents at the end of period

Current consolidated
accounting year
(From April 1, 2006
to March 31, 2007)
AmountPrevious consolidated
accounting year
(From April 1, 2005
to March 31, 2006)
Amount

I.

14

1,436

-1,000

403
―
2
-55
-208

377
1
―
-148
-793

-194
179
―
7
-950
-9
15
-6,247-7,663
13,891

-126
195
135
139
-261
-400
43
3,822
2,957
-7,172

2,195

5-5,425-2,623
194
-186
-170
-2,786

4,290
2,064
126
-196
-921
1,072

-0
-99
195
-65
511
-91
1,176
-45
105
-214
251
-5
1,718

-0
-200
99
-413
1,796
-746
701
-115
56
-257
902
―
1,824

21,240-20,790
2,200-2,845
18
-20
3
-716
-31
-942
66
-1,944
23,13920,313-20,626
1,962-3,434
―
-34
1
-719
-2
-2,53969
426
22,712-123―

21,071

23,139(6) Basic important items for producing consolidated financial statements
1. Items relating to scope of consolidation(1) Nine (9) subsidiaries are included in the consolidated financial statements.
Names of major consolidated subsidiary companies
Since the names are described in “Section 2. Situation of the Corporate Group”, the description isomitted.
Kyo Gas Co., Ltd., included so far in consolidation scope, made a liquidation resolution in thecurrent consolidated accounting year and has already completed settlement of nearly all debts andcredits. Consequently, Kyo Gas was excluded from consolidation scope at the end of the current
consolidated accounting year.
DAIDEN Koji Corp. is no longer an affiliate company because of a decrease in voting right
holding rate to 14.3% due of capital increase. Consequently, DAIDEN was excluded fromconsolidation scope at the end of the current consolidated accounting year.
(2) Number of non-consolidated subsidiaries: One (1)The name of the non-consolidated subsidiary is described below.
PFI Kyoto School Amenity Co., Ltd.
(3) Reason to exclude the non-consolidated subsidiary from the scope of consolidated accounting
The total assets, completed work amount, current net profit/loss (worth the amount of the equity
method), earned surplus (worth the amount of the equity method), and others all have nosignificant influence on the consolidated financial statements so that the company aforementioned
is excluded from the scope of consolidation.
2. Items relating to application of the equity method(1) We have no non-consolidated subsidiaries or affiliates to which the equity method was applied.
(2) The following section shows non-consolidated subsidiaries or affiliates to which the equity
method is not applied.
PFI Kyoto School Amenity Co., Ltd.
(3) Reason not to apply the equity method
Since the company aforementioned has minor influence on the current net profit/loss, earned
surplus, and others and further is of no importance in terms of the overall performance, it is
excluded from the scope of application of the equity method.
3. Items relating to the accounting year and others of consolidated subsidiaries
Out of the consolidated subsidiaries, MERINO O.D.D. SDN. BHD, THAI O.D.D. CO., Ltd. and
DAI-DAN PHILIPPINES, INC. close their account for the term on December 31.
In order to produce consolidated financial statements for the term, we use financial statements as ofDecember 31. As for important transactions arising between December 31 and the consolidated accountclosing date for the term, we make adjustments required for the consolidated account.
4. Items relating to accounting procedure basis(1) Valuation basis and method applied to important assets
1) Securities
Held-to-maturity bonds:
Depreciable cost method (Straight-line method)
Other securities
With market valueMarket price method based on the market price and others asof the consolidated account closing date(Valuation differences are treated according to full capital
direct accounting method, and sale cost is calculated
according to the moving average method.)With no market value
Cost method based on the moving average method
2) Derivative:
Market price method

153) Inventories
Incomplete work expenditures
Materials and supplies

Cost method based on the specific identification method
Lower-of-cost market method based on the moving averagemethod(2) Depreciation method applied to important depreciable assets
1) Tangible fixed assets
Our company and domestic consolidated subsidiary companies
Buildings (excluding accessory equipment)
Straight-line method
OthersDeclining balance method
Overseas consolidated subsidiary companies
Straight-line method
Furthermore, the following section shows the depreciation periods of major assets.
Buildings and structures
15 to 50 years
2) Intangible fixed assets
Straight-line method
Furthermore, as to software of the company’s own use, the straight-line method based onin-company applicable period (i.e., five years) is applied.
(3) Recording basis applied to important allowances and reserves
1) Allowance for bad debts
In order to provide against bad debts due to failure in recovery of completed work accounts due,loans receivable, and others, we review the recoverability of general credits based on the pastactual percentage of credit losses and particular credits such as those having bad debts risk
based on individual cases, thus recording anticipated unrecoverable amount.
2) Allowance for completed work compensation
This is provided for the purpose of defect compensation for completed works. We record anamount for works to be compensated based on past results plus possibility of futurecompensation.
3) Work loss reserves
In order to provide against future loss caused by work orders received in hand, we record an
estimated amount of loss for works, which are highly likely to cause loss and the amount of
which can be reasonably estimated.
4) Reserves for retirement benefits
In order to prepare for the payment of retirement benefits of employees, we record an amountin accordance with the estimates of debt obligations for retirement benefits and pension assets
at the end of current consolidated accounting year.
As for differences on the mathematical calculation, we shall treat them using an amountproportioned by the specific identification method with a specified number of years (i.e., 10
years) within the employees’ average remaining length of service at the time of the occurrenceof the differences while in each consolidated accounting year, from the account settled for next
consolidated accounting year of the occurrence, by contrast, we batch process past service
obligation within the year of occurrence.
Furthermore, as of April 1, 2006, the Company shifted to the defined contribution pension
system based on the Defined-contribution Pension Law for part of the future service portion of
the termination allowance plan.
5) Reserves for directors’ retirement benefits
In order to prepare for the payment of directors’ retirement benefits, we reserve and record anamount required to pay at the end of the period in accordance with the bylaws of the company.
(4) Important leases treating method
Financing leases other than those by which ownership rights of the leased property can be transferred to
the lessee are treated in accordance with a method relating to ordinary leases.
(5) Important hedge accounting method
1) Hedge accounting method: Preferential treatment has been adopted.
2) Hedging means and targets
Hedging means:Interest swap transactions
Hedging items:
Interest expenses for long-term loans3) Hedging policy16In order to hedge risks associated with interest rate fluctuations, we have been using
derivatives to prepare for interest expenses for long-term loans.
Furthermore, we do not hold derivatives for speculation purpose.
4) Evaluation method of hedging availability
Since the preferential treatment for interest swap transactions is adopted, the reference relating
to the evaluation of hedging availability is omitted(6) Other important items for the consolidated financial statements
1) Completed works amount recording basis
Work completion basis is adopted. For part of works, however, we adopt deferred payment
standards under Corporation Tax Law, thus counting the amount equivalent to profits
corresponding to uncollected amount in the completed work costs to reschedule the profits andto return it at the time of collection. Furthermore, our overseas consolidated-subsidiaries record
the completed works amount on the work progressing basis.
Unearned profit returned amount 27 million yen
Unearned profit deducted amount―Total
27 million yen
2) Accounting of consumption tax and others
They are treated in accordance with a method exclusive of tax.
5. Items relating to evaluation of assets and liabilities of consolidated subsidiaries
The evaluation method of assets and liabilities of consolidated subsidiaries is in accordance with total
market price evaluation method.
6. Scope of funds in the consolidated cash flow statement
Funds (cash and cash equivalents) listed in the consolidated cash flow statement include currency on
hand, bank money, time deposits of which maturities come within 3 months after the acquisition date,and short-term investments with no fixed maturity or redemption date, ease of cash-out, and taking aslight risk of price fluctuations.
7. Matters related to good will depreciation
Good will is subjected to 5-year straight line depreciation.
(7) Changes of basic important items for producing consolidated financial statements
Accounting standards on net asset section indications in balance sheet“Accounting Standards on Net Asset Section Indications in Balance Sheet” (BusinessAccounting Standards Committee’s Business Accounting Standards No.5 of Dec. 9, 2005) and“Application Guideline for Accounting Standards Etc. on Net Asset Section Indications in
Balance Sheet” (Business Accounting Standards Committee’s Business Accounting Standards
Application Guideline No.8 of Dec. 9, 2005) have bee adopted as from the current consolidated
accounting year. These have no effect on profit and loss.
The amount corresponding to the total of previous “asset section” is 45,896 million yen.
Accounting standards on officer bonuses“Accounting Standards on Officer Bonuses” (Business Accounting Standards Committee’s
Business Accounting Standards No.4 of Nov. 29, 2005) has been adopted as from the current
consolidated accounting year.
As a result, a decrease of 70 million yen is seen in operating profit, ordinary profit, and current
period net profit after adjustment for tax etc. as compared with previous methods.

17

(8) Notes relating consolidated financial statements[Relating to consolidated balance sheet]
Current consolidated
accounting year
3,335

(in millions of yen)Previous consolidated
accounting year
3,561

1. Accumulated amount of depreciation of
tangible fixed assets
2. Bills receivable endorsement
2128
3. Investment securities such as
non-consolidated subsidiary stocks
17
17
Pledged assets and secured liabilities(1) Assets given as security
Time deposit
27
27
481
603
Investment securities(2) Liabilities for the above
215
339
Long-term loans expecting to return
25
140
within 1 year.
46,99815,462Long-term loans(4,267)(536)
Liabilities of investing companies(Amount equivalent to investment
ratio of our company)
5. Accounting procedure on mature bills at the end of a consolidated accounting year
Mature bills at the end of a consolidated accounting year are settled on the basis of the date of billclearance. Since the end of the current consolidated accounting year fell on a bank holiday, bills
mature at the end of the next period are included in the balance at the end of the current
consolidated accounting year.
― million yen
Bills receivable
325 million yen
1,121―
Bills payable
6. Prepaid pension costs, though recorded so far as others in the current assets as short-term
dissolution was anticipated initially, were recorded as investment and other assets in the fixed assets
since the dissolution was determined to take a long period considering present circumstances. They
were 2,743 million yen in the previous consolidated accounting year.
[Relating to consolidated profit and loss statement]
1. The following section describes important expense items and amount out of the selling and generaladministrative expenses.
Current consolidated
Previous consolidated
accounting year
accounting year
Salaries and allowances to employees
3,358 million yen
2,956
million yen
Reserves for retirement benefits-32
233
Amount transferred from reserves for
83
79
directors’ retirement benefits
Amount of computers
968
1,136
Communication and transportation
872
881
expenses
Amount transferred from allowance for139―
bad debts
Depreciation expenses
401373
2. Total research and development
expenses
Current consolidated
Previous consolidated
accounting year
accounting year
(Breakdown) Sales expenses and general
472 million yen
465
million yen
administrative expenses
3. Equity fluctuation loss
This is because of a decrease in equity ratio in the company at DAIDEN Koji Corp. that was so far aconsolidated subsidiary. DAIDEN was excluded from consolidation scope.
4. Loss on the sales of affiliates
This is relevant to the sales of the consolidated subsidiary “Kyo Gas Co., Ltd.”.
18

(Note to account statement of changes in consolidated shareholder’s equity)
1. Items relating to the type and number of issued stocks
End of the previous
Type of stock
Increaseconsolidated
accounting year
Common stock
45,963,803―

Decrease

2. Items relating to the type and number of treasury stocks
End of the previous
Type of stock
consolidated
Increaseaccounting year
Common stock
1,013,620
28,441

Decrease―

End of the current
consolidated
accounting period
45,963,803

17,529End of the current
consolidated
accounting period
1,024,532

3. Items relating to dividend(1) Paid amount of dividend
Total dividends
Resolution

Type of stock(in millions of

Dividend per stock(in yen)yen)
Ordinary general
meeting of shareholders
on June 29, 2006
Board of directors on
November 16, 2006

Record date

Effective dateCommon
stock

494

11

March 31, 2006

June 30, 2006

Common
stock

224

5

September 30, 2006

December 4, 2006

719

Total

(2) Of the dividends with their base date belonging to the current consolidated accounting year, thosebecoming effective in the next period.
Total dividends
Resolution

Type of stock(in millions ofyen)

Ordinary general
meeting of shareholders
on June 28, 2007

Commonstock

494

Resource for

Dividend per

dividend

stock (in yen)

Surplusearnings

11

Record date

Effective date

March 31, 2007

June 29, 2007

[Relating to consolidated cash flow statement]
The following table shows the relationship between the balance of cash and cash equivalents at the end offull-year period and the amounts of accounts listed in the full-year consolidated balance sheet(in millions of yen)
Current consolidated
Previous consolidated
accounting year
accounting year
million yen
23,166 million yen
Cash and deposit accounts
21,098
Securities account
200
200
Total
21,29923,366Time deposits with time period of more
-27
-27
than three months
Securities other than add-on type bond
-200
-200
investment trusts
Cash and cash equivalent objects
21,071
23,13919

(Segment Information)
1. Segment information by type of business
The current consolidated accounting year (April 1, 2006 to March 31, 2007) andthe previous consolidated accounting year (April 1, 2005 to March 31, 2006)
Since our corporate group is engaged in facility construction works, there are no business typesother than this. Accordingly, segment information by business type is not described.
2. Segment information by location
The current consolidated accounting year (April 1, 2006 to March 31, 2007) andthe previous consolidated accounting year (April 1, 2005 to March 31, 2006)
Since the total sales amount of all segments of "Japan" exceeds 90%, description of segment
information by location is omitted.
3. Overseas sales amountThe current consolidated accounting year (April 1, 2006 to March 31, 2007) andthe previous consolidated accounting year (April 1, 2005 to March 31, 2006)
Since overseas sales amount is less than 10% of the total consolidated sales, description of overseas
sales is omitted.
(Per-share information)
Current consolidated
accounting year
1,021 yen 29 sen
11 yen 78 sen

Previous consolidated
accounting year
1,054 yen 52 sen-18 yen 06 sen

Per-share net asset
Per-share current period net profit(Note)(1) Per-share current period net profit after adjustment for potential shares is not mentioned because of theabsence of potential shares.
(2) Per-share current period net profit is calculated on the basis of the following:
Current consolidated
Previous consolidated
accounting year
accounting year
Current period net profit on consolidated profit
529 million yen-810 million yen
and loss statement
Major breakdown of amount not belonging tocommon stock
Officer bonuses through profit distribution―
1 million yen
Current period net profit pertaining to common
529 million yen-812 million yen
stock
Average number of common stock shares
44,939 thousands
44,972 thousands
during the period
sharesshares(Important events subsequent to balance sheet date)Non-applicable(On disclosure omission)
About matters of note on leases, securities, derivatives, retirement benefits, and tax benefit accounting,necessity of disclosure in the brief report on financial statement is considered small, and the disclosure
is omitted.
Transactions, stock options, etc. with pertaining parties are non-applicable.

205. Divisional amount of work orders received, completed works,
and works carried over (consolidated)

Amount of works carried overAmount of completed works

Amount of work orders received(in millions of yen)

Electrical work

Current consolidated
accounting year

Previous consolidated
accounting year

From April 1, 2006
to March 31, 2007
Component
Amountratio %
32,928
22.9

From April 1, 2005
to March 31,2006
Component
Amountratio %
35,10723.4

Difference

Amount%-2,178-6.2

Air-conditioning work

80,81756.1

76,397

51.0

4,419

5.8

Plumbing/sanitation work

30,27621.0

38,452

25.6-8,175

-21.3

Total

144,022100.0

149,957

100.0-5,934-4.0(Governmental work)

19,681

13.7

29,68219.8-10,001-33.7(Private sector work)

124,34186.3

120,274

80.2

4,067

3.4

Renewal work

65,27745.3

59,522

39.7

5,755

9.7

Overseas work

6,535

4.5

11,172

7.5-4,636-41.5

Electrical work

33,74421.2

36,701

24.2-2,957-8.1

Air-conditioning work

86,11754.2

78,752

51.8

7,364

9.4

Plumbing/sanitation work

39,181

24.6

36,405

24.0

2,776

7.6

Total

159,043100.0

151,859

100.0

7,183

4.7

(Governmental work)

26,44616.6

25,330

16.7

1,116

4.4

(Private sector work)132,597

83.4

126,529

83.3

6,067

4.8

Renewal work

61,30038.5

51,895

34.2

9,404

18.1

Overseas work

10,588

6.7

12,7778.4-2,189-17.1

Electrical work

21,99619.4

22,811

17.8

-815

-3.6

Air-conditioning work

64,89357.3

70,19454.7-5,300-7.6

Plumbing/sanitation work

26,40623.3

35,311

27.5-8,905

-25.2

Total

113,296

100.0

128,317100.0-15,020-11.7(Governmental work)

33,71029.8

40,47631.5-6,765-16.7(Private sector work)

79,58670.2

87,841

68.5-8,255-9.4

Renewal work

26,49023.4

22,512

17.5

3,977

17.7

Overseas work

11,882

10.5

15,935

12.4-4,052-25.4

21

6. Individual financial statements etc.
(1) Balance sheet(in millions of yen)
By period

Accounts

Current period end

Previous period end(As of March 31, 2007)(As of March 31, 2006)

Amount(Assets)
Current assets
Cash on hand in banks
Note receivables
Completed work accounts
receivables
Securities
Incomplete work expenditures
Materials in stock
Short-term loans receivable
Advance payments
Prepaid pension costs
Deferred tax assets
OthersAllowance for bad debts
Total current assets
Fixed assets
Tangible fixed assets
Buildings and structures
Machinery andtransportation equipment
Tools and facilities
Land
Total tangible fixed assets
Intangible fixed assets
Land lease rights
Software
OthersTotal intangible fixed assets
Investments and otherassetsInvestment securities
Affiliate company stockLong-term loans receivable
Deposits
Prepaid pension costs
Long-term insurance
premiums
OthersAllowance for bad debts
Total investments and otherassetsTotal fixed assets
Total assets

Component
ratio%

AmountComponent
ratio%

Difference

20,298
8,447
51,15922,213
8,306
45,165-1,914
141
5,994

200
29,890
―
24
4,176
―
1,641
2,144
-24
117,959200
22,247
12
473
151
2,743
1,595
2,279
-325
105,062

-0
7,643
-12
-448
4,025
-2,74345-135
301
12,897

83.3

81.8

2,215
13

2,327
13

-112
-0

162
1,077
3,469

172
1,082
3,595

-9
-4
-126

18
340
39
398

70
542
38
650

-51
-201
0
-252

13,910
287
142
682
3,349
682

16,352
295
231
684
―
618

-2,442
-8
-88
-2
3,349
63

1,419
-661
19,8101,583-557
19,208

-164
-104
602

23,678
141,638

16.7
100.0

22

23,454
128,517

18.2
100.0

224
13,121(in millions of yen)
By period
Accounts

Current period end

Previous period end(As of March 31, 2007)(As of March 31, 2006)

Component
ratio%

Amount(Liabilities)
Current liabilities
Notes payable
Work accounts payable
Short-term loans payable
Long-term loans payable
scheduled for repayment in 1
year
Accounts payable
Corporate tax payable etc.
Expenses payable
Incomplete work accounts
received
Accounts entrusted
Accounts entrusted by
employees
Deferred profit on deferredpayment work
Completed work
compensation reserves
Work loss reserves
OthersTotal current liabilities
Fixed liabilities
Long-term loans payable
Reserves for retirement
benefits
Reserves for directors’
retirement benefits
Deferred tax liabilities
OthersTotal fixed liabilities
Total liabilities

AmountComponent
ratio%

Difference

11,127
51,842
5,440
2,658

9,331
39,030
4,990
2,731

1,795
12,812
450
-72

579
161
1,525
14,505436
97
669
12,554

142
64
855
1,950

1,886
616

3,483
636

-1,596
-19

35

62

-27

155

90

65

867
0
91,402

1,573
166
75,853-706-165
15,548

64.5

59.0

1,680
1,907

2,253
2,082

-573
-174

615

532

83

571
5
4,780
96,182

710
10
5,588
81,441

-138
-5
-807
14,740

3.4
67.9

23

4.4
63.4

(in millions of yen)
By period

Accounts(Net Assets)
Shareholders’ equity
Capital stock
Capital surplus
Capital reserve
Other capital surplus
Earned surplus
Profit reserve
Other profit surplus
Fixed asset advanced
depreciation reserve
Contingent reserve
Carried over profit
surplusTreasury stock
Total shareholders’ equity
Evaluation / Currencytranslation difference, etc.
Evaluation difference of othersecurities
Deferred profits and losses onhedgesCurrency translation
adjustment accountTotal net assets
Total liabilities and net assets(Shareholders’ equity)
Capital stock
Capital surplus
Capital reserve
Other capital surplus
Treasury stock disposal gains
Earned surplus
Profit reserve
Voluntary reserve
Technical development
reserve
Fixed asset advanced
depreciation reserve
Contingent reserve
Current period unsettled
loss
Evaluation difference of othersecurities
Treasury stock
Total capital
Total liabilities andshareholders’ equity

Current period end

Previous period end(As of September 30, 2007)(As of September 30, 2006)

Component
ratio％

Amount

4,479
4,783
4,716
67
32,915
1,119
31,79584
30,720
990

3.2
3.4

23.2

Component
ratio％

Amount

―
―
―
―
―
―
―
―
―
―

―
―

―

Difference

4,479
4,783
4,716
67
32,915
1,119
31,79584
30,720990-523
41,654

-0.4
29.4

―
―

―
―

-523
41,654

3,801

2.7

―

―

3,801

-0

-0.0

―

―

-0

3,800

2.7

―

―

3,800

45,455
141,638

32.1
100.0

―
―

―
―

45,455
141,638

―
―
―
―
―
―
―
―
―

―
―

4,479
4,782
4,716
66
66
33,225
1,119
32,491
580

3.5
3.7

-4,479-4,782-4,716-66-66-33,225-1,119-32,491
-580

―

25.8

―

91

-91

―
―

31,820-31,820

-386

386

―

―

5,093

4.0

-5,093

―
―
―

―
―
―

-505
47,075
128,517

-0.4
36.6
100.0

505
-47,075-128,51724

(2) Profit and loss statement(in millions of yen)
By period
Accounts
Completed work amountCompleted work costCompleted work grossprofitSelling expenses and generaladministrative expenses
Operating profit orOperating loss (−)
Non-operating revenue
Interests received
Dividends received
Insurance claim received
Gain on foreign exchange
Other non-operating
earnings
Non-operating expenses
Interest payable
Others non-operating
revenue
Ordinary profit or
Ordinary loss (−)
Special profits
Profit on sales of fixed
assetsProfit on sales ofinvestments in securities
Profit gained by returning
allowance for bad debts
Special losses
Loss on sales of fixed
assetsLoss on retirement of fixed
assetsLoss on sales ofinvestments in securities
Evaluation loss on
investments in securities
Affiliate company stock
evaluation loss
Shrinkage loss
Affiliate company
liquidation loss
Special loss on overseas
work
OthersCurrent period net profit
before tax or current
period net loss ( ) before
tax
Corporate tax, residence tax
and business tax
Adjustment amounts such as
for corporate taxes
Current net profit orCurrent net loss (−)
Previous period carry overprofitInterim dividend
Current period unsettled
loss

Current period

Previous period(From April 1, 2006
to March 30, 2007)(From April 1, 2005
to March 31, 2006)

AmountPercentage％
155,022100.0
144,209
93.0
7.0
10,8129,284
6.0

Amount148,432
140,779
7,653
9,020

Difference

Percentage
％
100.0
94.8
5.2
6.1

6,590
3,430
3,159
264

1,528

1.0

-1,367

-0.9

2,895

(580)
28
183
46
297
24

0.3

(734)
13
111
254
328
27

0.5

(-154)
14
72
-207
-30
-2

(195)
178
17

0.1

(226)
195
31

0.2

(-30)
-16
-13

1,912

1.2

-859

-0.6

2,771

(982)
16

0.6

(927)
647

0.6

(55)
-631

950

261

688

16

18

-2

(1,655)7

1.0(1,246)
247

0.8

(409)
-240

15

42

-26

―

0

-0

7

139

-131

4

15

-11

―
1,614

135
―

-135
1,614

―

658

-658

6
1,239

0.8

8
-1,177

-0.8

-1
2,417

101

0.0

113

0.1

-12

728

0.5

-366

-0.3

1,095

409

0.3

-923

-0.6

1,333

25

761

-761

224

-224

-386

-386

(3) Profit distribution statement
By period
Accounts
Current period unsettled loss
Voluntary reserve disposition
Technical development reserve
disposition
Fixed asset advanced
depreciation reserve
disposition
Contingent reserve disposition
Total
Profit distribution
Shareholder dividend
Next period carry over profit(Note)(in millions of yen)Previous period(As of June 29, 2006)
Amount
-386
580
3

1,100

1,683
1,296

494

494
802

Date denotes shareholders general meeting approval date.

26

(4) Statement of changes in shareholders’ equity, etc.
Current period (from April 1, 2006 to March 31, 2007)

Total shareholders’ equity

580

Treasury stock

1,119

-505

41,981

Total profit surplus

4,782

Carry over profit
surplus

66

Contingent reserve

Profit reserve

4,716

31,820-386

33,225

-3

-719
409
1,680
3

-719
409
―
―

-719
409
―
―

-3

3

―

―

Technical
development
reserve
Fixed asset
advanceddepreciation reserve

Total capital surplus

4,479

Other capital surplus

Balance as of March 31, 2006

Capital surplus
Capital reserve

Capital stock(in millions of yen)
Shareholders’ equity
Earned surplus
Other profit surplus

91

Fluctuation amount during
the current period
Dividend of earned surplus

Current period net profit
Reserve disposition-580

Fixed asset advanced
depreciation reserve disposition(previous period)
Fixed asset advanced
depreciation reserve disposition(current period)
Acquisition of treasury stock
Disposition of treasury stock
Fluctuation amount (netamount) in current period in
items other than shareholder
equity00-1,100

-20
2

-20
3

Total fluctuation amount incurrent period

―

―

0

0

―

-580

-6

-1,100

1,377

-309

-17

-326

Balance as of September 30, 2006

4,479

4,716

67

4,783

1,119

―

84

30,720990

32,915-523

41,654

Balance as of March 31, 2006

5,093

―

5,093

Total net assets

Total evaluation / currencytranslation difference, etc.

Profit or loss on hedge
carried forward

Evaluation difference ofother securities

Evaluation / Currency translationdifference, etc.

47,075

Fluctuation amount during the current period
Dividend of earned surplus-719

Current period net profit
Reserve disposition

409

Fixed asset advanced depreciation reserve disposition (previous period)―

Fixed asset advanced depreciation reserve disposition (current period)―

Acquisition of treasury stock-20

Disposition of treasury stock3―

Fluctuation amount (net amount) in current period in items otherthan shareholder equity
Total fluctuation amount in current period-1,292-0-1,292-1,292-1,292-0-1,292-1,619Balance as of September 30, 2006

3,801

-0

3,800

45,45527

7. Divisional amount of work orders received, completed work, and work
carried over (individual)

Amount of works carried overAmount of completed works

Amount of work orders received(in millions of yen)

Electrical work

Current period

Previous period

From April 1, 2006
to March 31, 2007
Component
Amountratio %
31,161
22.2

From April 1, 2005
to March 31,2006
Component
Amountratio %
33,551
23.0

Difference

Amount%-2,389-7.1

Air-conditioning work

79,321

56.6

74,893

51.2

4,428

5.9

Plumbing/sanitation work

29,69621.2

37,75325.8-8,056

-21.3

Total

140,179

100.0

146,197

100.0-6,018-4.1(Governmental work)

19,601

14.0

29,423

20.1-9,822-33.4(Private sector work)

120,578

86.0

116,774

79.9

3,804

3.3

Renewal work

63,59645.4

57,772

39.5

5,823

10.1

Overseas work

4,784

3.4

9,635

6.6

-4,851-50.3

Electrical work

31,97420.6

35,381

23.8-3,406-9.6

Air-conditioning work

84,45954.5

77,317

52.1

7,142

9.2

Plumbing/sanitation work

38,58824.9

35,733

24.1

2,854

8.0

Total

155,022100.0

148,432

100.0

6,590

4.4

(Governmental work)

26,37217.0

24,960

16.8

1,412

5.7

(Private sector work)

128,650

83.0

123,472

83.2

5,178

4.2

Renewal work

59,65538.5

49,901

33.6

9,753

19.5

Overseas work

8,759

5.7

11,8958.0-3,136-26.4

Electrical work

21,847

19.4

22,660

17.7

-812

-3.6

Air-conditioning work

64,621

57.3

69,76054.7-5,138-7.4

Plumbing/sanitation work

26,32023.3

35,212

27.6-8,891

-25.3

Total

112,790

100.0

127,632100.0-14,842-11.6(Governmental work)

33,69729.9

40,46831.7-6,771-16.7(Private sector work)

79,092

70.1

87,16468.3-8,071-9.3

Renewal work

26,28323.3

22,342

17.5

3,941

17.6

Overseas work

11,596

10.3

15,571

12.2-3,975-25.5

28

8. Others

Officer changes (scheduled for June 28, 2007)
1.

Representatives change
Non-applicable

2.

Other officers changes(1) New director candidates
Director Development Technology HQ
Deputy General Manager andSales HQ Deputy General Manager

Masaki NUMAKURA

Director Tokyo Head Office
Representative Attache General Manager

Hidetaka MORI

(Currently Officer Treatment
Development Technology HQ Deputy
General Manager and Sales HQ Deputy
General Manager)(Currently Trustee Tokyo Head Office
Representative Attache General
Manager)(2) Director scheduled for retirement
Currently Managing Director Sales HQ
Deputy General Manager

Sadao KODAMA(Special Advisor Sales HQ)

Concluded29