Consolidated Financial Statements
for the Year Ended March 31, 2012, and Independent Auditor's Report

EIZO NANAO CORPORATION and Subsidiaries

Financial Highlights
Thousands ofMillions of Yen

U.S. Dollars

2010

2011

2012

2012

Net sales

77,52565,20459,559726,329

Operating income

9,026

5,150

4,404

53,719Net income

4,928

3,547

1,637

19,963

Total assets

75,36977,43377,032

939,415

Total equity

56,48559,21057,678703,391

Years ended March 31:

As of March 31:

Per share data

Yen

U.S. Dollars

Basic net income

220.79158.93

74.08

0.90

Cash dividends applicable to the year

50.00

50.00

50.00

0.61

Note: U.S. dollar amounts are provided solely for convenience at the rate of ¥82 to US$1, the approximate exchange rate at March 31, 2012.

(Millions of Yen)

Net Sales

Operating Income

77,525Net Income

9,026

65,204

4,928

59,559
3,547

5,150
4,404
1,637

2010

2011

2012

Total Assets/Total Equity
75,36956,48577,43359,210

2010

2010

2011

57,678

Amusement Monitors
Others7,517,
9.7%

7,974,
12.2%

2012

77,525

2010

2012

Monitors for Computer use

77,03235,126,
45.3%

2011

2012

Net Salesby Products

Total

2010

2011

34,881 ,45.0%

7,402,
12.4%
Total

20,836,32.0%

65,204

2011

Total

36,393 ,55.8%

20,545,34.5%

59,5592012

31,611, 53.1%EIZO NANAO CORPORATION and Subsidiaries
Consolidated Balance Sheet
March 31, 2012

Millions of Yen
2012
2011

ASSETS
CURRENT ASSETS:
Cash and cash equivalents (Note 11)
Short-term investments (Notes 3 and 11)
Notes and accounts receivables (Note 11):
Trade notes
Trade accounts
Other
Allowance for doubtful receivables
Inventories (Note 4)
Deferred tax assets (Note 7)
Prepaid expenses and other current assets
Total current assets
PROPERTY, PLANT, AND EQUIPMENT:Land
Buildings and structures
Machinery and equipment
Furniture and fixtures
Construction in progress
Total
Accumulated depreciation
Net property, plant, and equipment
INVESTMENTS AND OTHER ASSETS:
Investment securities (Notes 3 and 11)
Goodwill
Deferred tax assets (Note 7)
Other assets
Total investments and other assets¥ 16,714

Thousands of
U.S. Dollars(Note 1)
2012

¥ 21,592
2,202$ 203,829

182
16,560347(68 )17,907
2,077
447

315
12,405154(83)
13,395
2,157
367

2,220
201,951
4,232(829)
218,378
25,3295,451

54,16652,504

660,561

3,084
11,594
3,741
4,141
33
22,593(13,867 )3,084
11,495
3,771
4,194
41
22,585(13,372)

37,610141,390
45,62250,500402
275,524(169,110)

8,726

9,213

106,414

10,778
949
319
2,094

12,830
1,199
394
1,293

131,439
11,573
3,890
25,53814,14015,716

LIABILITIES AND EQUITYCURRENT LIABILITIES:
Accounts payable (Note 11):
Trade accounts
Other
Income taxes payable
Accrued expenses
Other current liabilities
Total current liabilities
LONG-TERM LIABILITIES:
Liability for retirement benefits (Note 5)
Deferred tax liabilities (Note 7)
Other long-term liabilities
Total long-term liabilities¥ 77,032¥ 77,433¥ 7,882
1,344
1,063
3,328
870

¥ 6,748
1,018
1,891
2,749
416

$

96,122
16,39012,96340,585
10,61014,487

12,822

176,670

2,295
1,136
1,436

2,293
1,754
1,354

27,98813,854
17,512

4,867

5,401

59,3544,426
4,314
49,1394,426
4,314
48,61653,976
52,610599,256(2,661)(999)(32,451)

3,883

47,354(1,423)4,235(1)(1,381)(17,354)

57,67859,210703,391¥ 77,032¥ 77,433$ 939,415

COMMITMENTS AND CONTINGENT LIABILITIES(Notes 10 and 12)
EQUITY (Notes 6 and 14):
Common stock—authorized, 65,000,000 shares;
issued, 22,731,160 shares in 2012 and 2011
Capital surplus
Retained earnings
Treasury stock—at cost, 1,410,098 shares in 2012 and
409,985 shares in 2011
Accumulated other comprehensive income:Unrealized gain on available-for-sale securities
Deferred loss on derivatives under hedge accounting
Foreign currency translation adjustments

172,440
Total equity

TOTAL

Millions of Yen
2012
2011

Thousands of
U.S. Dollars(Note 1)
2012

TOTAL

$ 939,415

See notes to consolidated financial statements.

-2-

EIZO NANAO CORPORATION and Subsidiaries
Consolidated Statement of Income
Year Ended March 31, 2012

Millions of Yen
2012
2011
NET SALES

Thousands of
U.S. Dollars(Note 1)
2012

¥ 59,559¥ 65,204$ 726,329

COST OF SALES (Note 8)

41,531

46,819506,476

Gross profit

18,02818,385

219,853

SELLING, GENERAL AND ADMINISTRATIVE
EXPENSES (Note 8)

13,623

13,235

166,134

Operating income

4,405

5,150

53,719

249

233

3,037

OTHER INCOME (EXPENSES):Interest and dividend income
Loss on disposal of property, plant, andequipment—net
Foreign exchange loss—net
Gain on sales of investment securities
Loss on sales of investment securities
Loss on valuation of investment securities
Refunds of EU customs duties (Note 9)
Other—net

(214)
8
(395)
(403)
7
40

1,115
(30 )

(2,610)98(4,817)(4,915)85
488

Other (expenses) income—net

(708)

1,123

(8,634)

INCOME BEFORE INCOME TAXES

3,697

6,273

45,085

INCOME TAXES (Note 7):
Current
Deferred

1,763
297

2,465
261

21,500
3,622

2,060

2,726

25,122

Total income taxes
NET INCOME

¥

(62 )
(133 )

1,637

¥

3,547

Yen
PER SHARE OF COMMON STOCK (Note 2.t):
Basic net income
Cash dividends applicable to the year

¥ 74.08
50.00

See notes to consolidated financial statements.

-3-$

19,963

U.S. Dollars¥ 158.93
50.00$ 0.900.61

EIZO NANAO CORPORATION and Subsidiaries
Consolidated Statement of Comprehensive Income
Year Ended March 31, 2012

Millions of Yen
2012
2011
NET INCOME

Thousands of
U.S. Dollars(Note 1)2012

¥ 1,637¥ 3,547$ 19,963

(352)
1
(42)

373
(2 )
(77 )

(4,293)
12
(511)

(393)

294

(4,792)COMPREHENSIVE INCOME¥ 1,244¥ 3,841$ 15,171

TOTAL COMPREHENSIVE INCOME ATTRIBUTABLE TO—
Owners of the parent company¥ 1,244¥ 3,841$ 15,171

OTHER COMPREHENSIVE (LOSS) INCOME (Note 13):
Unrealized (loss) gain on available-for-sale securities
Deferred gain (loss) on derivatives under hedge accounting
Foreign currency translation adjustments
Total other comprehensive (loss) income

See notes to consolidated financial statements.

-4-

EIZO NANAO CORPORATION and Subsidiaries
Consolidated Statement of Changes in Equity
Year Ended March 31, 2012
Thousands

BALANCE, APRIL 1, 2010

Millions of Yen

Number of
Shares ofCommonStock
Outstanding

CommonStockCapitalSurplusRetained
Earnings

TreasuryStock22,321¥ 4,426¥ 4,314¥46,185¥

Net income
Cash dividends, ¥50 per share
Net increase in unrealized gain on available-for-sale securities
Net change in deferred gain on derivatives under hedge accounting
Net change in foreign currency translation adjustments
BALANCE, MARCH 31, 2011
Net income
Cash dividends, ¥50 per share
Net decrease in unrealized gain on available-for-sale securities
Net change in deferred loss on derivatives under hedge accounting
Net change in foreign currency translation adjustments
Purchases of treasury stock
BALANCE, MARCH 31, 2012

BALANCE, MARCH 31, 2011

¥ 3,862¥1¥ 56,485

(77)

3,547
(1,116)
373
(2)
(77)

(1,381)

59,210373(2)22,321

4,426

4,314

48,616

(999)

4,235

(1)

1,637
(1,114)(352 )
1(42)(1,000 )21,321(1,662)¥ 4,426¥ 4,314¥ 49,139

CommonStockCapitalSurplusRetained
Earnings$ 53,976$ 52,610$ 592,878¥ (2,661)¥ 3,883¥ (1,423)

Thousands of U.S. Dollars (Note 1)
Accumulated Other Comprehensive Income
Unrealized
Deferred Loss
Foreign
Gain onon Derivatives
Currency
Treasury
Available-forunder Hedge
Translation
Stock
Sale Securities
Accounting
Adjustments$ (12,183)$ 51,647$ (12)$ (16,843)

19,963(13,585)(4,293 )12(511)(20,268)$ 53,976$ 52,610

See notes to consolidated financial statements.

-5-$ 599,256$ (32,451)$ 47,354

Total
Equity¥ (1,304)

3,547(1,116)

Net income
Cash dividends, $0.61 per share
Net decrease in unrealized gain on available-for-sale securities
Net change in deferred loss on derivatives under hedge accounting
Net change in foreign currency translation adjustments
Purchases of treasury stock
BALANCE, MARCH 31, 2012

(999)

Accumulated Other Comprehensive Income
Deferred
Unrealized
Foreign
Gain (Loss)
Gain onCurrency
on Derivatives
Available-forunder Hedge
Translation
Sale Securities
Adjustments
Accounting$ (17,354)

1,637(1,114)
(352)
1
(42)
(1,662)¥ 57,678

Total
Equity$ 722,073
19,963(13,585)(4,293)
12(511)(20,268)$ 703,391

EIZO NANAO CORPORATION and Subsidiaries
Consolidated Statement of Cash Flows
Year Ended March 31, 2012

Millions of Yen
2012
2011
OPERATING ACTIVITIES:
Income before income taxes
Adjustments for:
Income taxes—paidDepreciation and amortization
Amortization of goodwill
Reversal of allowance for doubtful receivables
Loss on disposal of property, plant, and equipment
Loss on sales of investment securities
Loss on valuation of investment securities
Changes in assets and liabilities:(Increase) decrease in notes and accounts receivable
Increase in inventories
Increase (decrease) in accounts payable
Increase (decrease) in accrued expenses
Increase (decrease) in liability for retirement benefits
Other—net
Total adjustments

Thousands of
U.S. Dollars(Note 1)2012

¥ 3,697¥ 6,273$ 45,085(2,580)
1,254
169
(15)

(2,805 )
1,339
175
(39 )
62

(31,463)
15,293
2,061
(183)

386
403

4,707
4,915

(4,270)(4,623)
967
653
15
1,207
(6,434)2,445(2,039 )(601 )(158 )(67 )515(1,173 )(52,073)(56,378)
11,7937,963
183
14,719(78,463)(2,737)

5,100(33,378)(567)(506 )(6,915)

2,340

9,644

28,537(1)(12)(1,092)(9,885 )(34 )(342 )(13,317)680(1,123 )

8,293(1,114)(1,662)(1,116 )(13,585)(20,268)

Net cash used in financing activities(2,776)(1,116 )(33,853)

FOREIGN CURRENCY TRANSLATION ADJUSTMENT ON
CASH AND CASH EQUIVALENTS

(45)

(29 )

(550)

¥ (4,878)¥ 2,832$ (59,488)

Net cash (used in) provided by operating activities
INVESTING ACTIVITIES:
Purchases of property, plant, and equipment
Proceeds from sales of short-term investments andinvestment securities
Purchases of short-term investments and investment
securities
Payment for acquisition of business
Increase in other assets
Net cash provided by (used in) investing activities
FINANCING ACTIVITIES:Dividends paid
Purchases of treasury stock

NET (DECREASE) INCREASE IN CASH AND CASH
EQUIVALENTS—(Forward)-6-(Continued)

EIZO NANAO CORPORATION and Subsidiaries
Consolidated Statement of Cash Flows
Year Ended March 31, 2012

Millions of Yen
2012
2011
NET (DECREASE) INCREASE IN CASH AND CASH
EQUIVALENTS—(Forward)¥ (4,878)

CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR
CASH AND CASH EQUIVALENTS, END OF YEAR¥

Thousands of
U.S. Dollars(Note 1)
2012

2,832

$ (59,488)

21,592

18,760263,317¥ 16,714¥ 21,592$ 203,829

See notes to consolidated financial statements.

-7-(Concluded)

EIZO NANAO CORPORATION and Subsidiaries
Notes to Consolidated Financial Statements
Year Ended March 31, 2012

1.

BASIS OF PRESENTATION OF CONSOLIDATED FINANCIAL STATEMENTS
The accompanying consolidated financial statements have been prepared in accordance with the provisions set forthin the Japanese Financial Instruments and Exchange Act and its related accounting regulations and in conformity
with accounting principles generally accepted in Japan ("Japanese GAAP"), which are different in certain respects
as to the application and disclosure requirements of International Financial Reporting Standards.
In preparing these consolidated financial statements, certain reclassifications and rearrangements have been made to
the consolidated financial statements issued domestically in order to present them in a form that is more familiar toreaders outside Japan. In addition, certain reclassifications have been made in the 2011 consolidated financial
statements to conform to the classifications used in 2012.
The consolidated financial statements are stated in Japanese yen, the currency of the country in which EIZO
NANAO CORPORATION (the "Company") is incorporated and operates. The translations of Japanese yenamounts into U.S. dollar amounts are included solely for the convenience of readers outside Japan and have been
made at the rate of ¥82 to $1, the approximate rate of exchange at March 31, 2012. Such translations should not be
construed as representations that the Japanese yen amounts could be converted into U.S. dollars at that or any other
rate.

2.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIESa.

Consolidation—The consolidated financial statements as of March 31, 2012 include the accounts of theCompany and its 14 (12 in 2011) subsidiaries (together, the "Group").
Under the control concept, those companies in which the Company, directly or indirectly, is able to exercise
control over operations are fully consolidated.
All significant intercompany balances and transactions have been eliminated in consolidation. All material
unrealized profit included in assets resulting from transactions within the Group is also eliminated.
During the year ended March 31, 2012, EIZO Europe GmbH and EIZO Limited have been included inconsolidation as a result of their establishment.

b.

Unification of Accounting Policies Applied to Foreign Subsidiaries for the Consolidated Financial
Statements—In May 2006, the Accounting Standards Board of Japan (the "ASBJ") issued ASBJ Practical
Issues Task Force ("PITF") No. 18, "Practical Solution on Unification of Accounting Policies Applied toForeign Subsidiaries for the Consolidated Financial Statements." PITF No. 18 prescribes (1) the accounting
policies and procedures applied to a parent company and its subsidiaries for similar transactions and events
under similar circumstances should, in principle, be unified for the preparation of the consolidated financial
statements and (2) financial statements prepared by foreign subsidiaries in accordance with either International
Financial Reporting Standards or generally accepted accounting principles in the United States of America
tentatively may be used for the consolidation process; (3) however, the following items should be adjusted in
the consolidation process so that net income is accounted for in accordance with Japanese GAAP, unless they
are not material: (a) amortization-8-

of goodwill; (b) scheduled amortization of actuarial gain or loss of pensions that has been directly recorded inequity; (c) expensing capitalized development costs of research and development ("R&D"); (d) cancellation of
the fair value model of accounting for property, plant, and equipment and investment properties andincorporation of the cost model of accounting; and (e) exclusion of minority interests from net income, if
included.
c.

Business Combination—In October 2003, the Business Accounting Council issued a Statement of Opinion,"Accounting for Business Combinations," and in December 2005, the ASBJ issued ASBJ Statement No. 7,"Accounting Standard for Business Divestitures," and ASBJ Guidance No. 10, "Guidance for AccountingStandard for Business Combinations and Business Divestitures."
The accounting standard for business combinations allows companies to apply the pooling-of-interests methodof accounting only when certain specific criteria are met such that the business combination is essentiallyregarded as a uniting-of-interests. For business combinations that do not meet the uniting-of-interests criteria,
the business combination is considered to be an acquisition and the purchase method of accounting is required.
This standard also prescribes the accounting for combinations of entities under common control and for joint
ventures.
In December 2008, the ASBJ issued a revised accounting standard for business combinations, ASBJ Statement
No. 21, "Accounting Standard for Business Combinations." Major accounting changes under the revised
accounting standard are as follows: (1) The revised standard requires accounting for business combinations
only by the purchase method. As a result, the pooling-of-interests method of accounting is no longer allowed.
(2) The previous accounting standard required R&D costs to be charged to income as incurred. Under therevised standard, in-process R&D (IPR&D) costs acquired in a business combination are capitalized as anintangible asset. (3) The previous accounting standard provided for a bargain purchase gain (negative
goodwill) to be systematically amortized over a period not exceeding 20 years. Under the revised standard, theacquirer recognizes the bargain purchase gain in profit or loss immediately on the acquisition date after
reassessing and confirming that all of the assets acquired and all of the liabilities assumed have been identified
after a review of the procedures used in the purchase allocation. The revised standard was applicable tobusiness combinations undertaken on or after April 1, 2010.

d.

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

e.

Inventories—Inventories are stated at the lower of cost, determined by the average method for finishedproducts and work in progress and by the moving-average method for raw materials, or net selling value.

f.

Short-Term Investments and Investment Securities—Short-term investments and investment securities areclassified and accounted for depending on management's intent. Available-for-sale securities, which represent
securities not classified as either trading securities or held-to-maturity debt securities, are reported at fairvalue, with unrealized gains and losses, net of applicable taxes, reported as a separate component of equity.
The cost of available-for-sale securities sold is determined based on the moving-average method.
Nonmarketable available-for-sale securities are stated at cost determined by the moving-average method.

-9-For other-than-temporary declines in fair value, investment securities are reduced to net realizable value by acharge to income.
g.

Property, Plant, and Equipment—Property, plant, and equipment are stated at cost. Depreciation of property,
plant, and equipment of the Company and its domestic subsidiaries is computed substantially by the
declining-balance method at rates based on the estimated useful lives of the assets, while the straight-line
method is applied to buildings of the Company and its domestic subsidiaries acquired after April 1, 1998, andall property, plant, and equipment of foreign subsidiaries. The range of useful lives is principally from 15 to 50
years for buildings and structures, from 7 to 10 years for machinery and equipment, and from 2 to 6 years forfurniture and fixtures.

h.

Goodwill—Goodwill is amortized over 10 years by the straight-line method. Immaterial goodwill may becharged entirely to income at acquisition. Amortization of goodwill is ¥169 million ($2,061 thousand) and¥175 million for the years ended March 31, 2012 and 2011, respectively.

i.

Long-Lived Assets—The Group reviews its long-lived assets for impairment whenever events or changes incircumstances indicate the carrying amount of an asset or asset group may not be recoverable. An impairment
loss would be recognized if the carrying amount of an asset or asset group exceeds the sum of theundiscounted future cash flows expected to result from the continued use and eventual disposition of the asset
or asset group. The impairment loss would be measured as the amount by which the carrying amount of theasset exceeds its recoverable amount, which is the higher of the discounted cash flows from the continued use
and eventual disposition of the asset or the net selling price at disposition.

j.

Retirement and Pension Plans—The Company and certain of its domestic subsidiaries have a defined
contribution pension plan and unfunded retirement benefit plans. Other domestic subsidiaries have a defined
benefit pension plan and unfunded retirement benefit plans. Certain foreign subsidiaries have either a defined
contribution plan or defined benefit plan. Additionally, the Company or its subsidiaries may add premium
severance pay.
The Group accounted for the liability for retirement benefits based on the projected benefit obligations andplan assets at the consolidated balance sheet date.
Retirement benefits to directors and corporate auditors are recorded at the amount that would be required if all
directors and corporate auditors retired at the consolidated balance sheet date. In June 2004, the retirement
benefit system was abolished and the amount required to be paid at the time of the abolishment will be paid to
directors and corporate auditors upon their retirement.

k.

Asset Retirement Obligations—In March 2008, the ASBJ published ASBJ Statement No. 18, "AccountingStandard for Asset Retirement Obligations," and ASBJ Guidance No. 21, "Guidance on Accounting Standard
for Asset Retirement Obligations." Under this accounting standard, an asset retirement obligation is defined asa legal obligation imposed either by law or contract that results from the acquisition, construction,
development, and normal operation of a tangible fixed asset and is associated with the retirement of suchtangible fixed asset. The asset retirement obligation is recognized as the sum of the discounted cash flows
required for the future asset retirement and is recorded in the period in which the obligation is incurred if areasonable estimate can be made. If a reasonable estimate of the asset retirement obligation cannot be made in
the period the asset retirement obligation is incurred, the liability should be recognized when a reasonableestimate of the asset retirement obligation can be made. Upon initial recognition of a liability for an asset
retirement obligation, an asset retirement cost is- 10 -

capitalized by increasing the carrying amount of the related fixed asset by the amount of the liability. The asset
retirement cost is subsequently allocated to expense through depreciation over the remaining useful life of theasset. Over time, the liability is accreted to its present value each period. Any subsequent revisions to thetiming or the amount of the original estimate of undiscounted cash flows are reflected as an increase or adecrease in the carrying amount of the liability and the capitalized amount of the related asset retirement cost.
l.

R&D Costs—R&D costs are charged to income as incurred.

m. Leases—In March 2007, the ASBJ issued ASBJ Statement No. 13, "Accounting Standard for Lease
Transactions," which revised the previous accounting standard for lease transactions issued in June 1993. The
revised accounting standard for lease transactions was effective for fiscal years beginning on or after April 1,
2008.
Under the previous accounting standard, finance leases that were deemed to transfer ownership of the leased
property to the lessee were to be capitalized. However, other finance leases were permitted to be accounted for
as operating lease transactions if certain "as if capitalized" information was disclosed in the notes to thelessee's financial statements. The revised accounting standard requires that all finance lease transactions should
be capitalized to recognize lease assets and lease obligations in the consolidated balance sheet. In addition, theaccounting standard permits leases that existed at the transition date and that did not transfer ownership of theleased property to the lessee to be accounted for as operating lease transactions.
The Company applied the revised accounting standard effective April 1, 2008. In addition, the Company
accounted for leases that existed at the transition date and that did not transfer ownership of the leased property
to the lessee as operating lease transactions.
All other leases are accounted for as operating leases.
n.

Bonuses to Directors—Bonuses to directors are accrued at the year-end to which such bonuses are
attributable.

o.

Software Development Contracts—In December 2007, the ASBJ issued ASBJ Statement No. 15, "AccountingStandard for Construction Contracts," and ASBJ Guidance No. 18, "Guidance on Accounting Standard forConstruction Contracts."
Under this accounting standards, revenue from sales of the customized software and costs of development of
the customized software should be recognized by the percentage-of-completion method if the outcome of adevelopment contract can be estimated reliably. When total revenue, total costs, and the stage of completion of
the contract at the consolidated balance sheet date can be reliably measured, the outcome of a development
contract can be estimated reliably. If the outcome of a development contract cannot be reliably estimated, thecompleted contract method should be applied. When it is probable that the total costs will exceed total
revenue, an estimated loss on the contract should be immediately recognized by providing for a loss ondevelopment contracts.

p.

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

- 11 -

The Group files a tax return under the consolidated corporate tax system in Japan, which allows companies tobase tax payments on the combined profits or losses of the parent company and its wholly owned domestic
subsidiaries.
q.

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

r.

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

s.

Derivatives and Hedging Activities—The Group uses derivative financial instruments to manage its exposures
to fluctuations in foreign exchange. Foreign exchange forward contracts are utilized by the Group to reduce
foreign currency exchange risks. The Group does not enter into derivatives for trading or speculative purposes.
Derivative financial instruments and foreign currency transactions are classified and accounted for as follows:(1) all derivatives are recognized as either assets or liabilities and measured at fair value with gains or losses
on derivative transactions recognized in the consolidated statement of income and (2) for derivatives used forhedging purposes, if the derivatives qualify for hedge accounting because of high correlation and effectivenessbetween the hedging instruments and the hedged items, the gains or losses on derivative are deferred until
maturity of the hedged transactions.
The foreign currency forward contracts applied for forecasted transactions are measured at the fair value, but
the unrealized gains or losses are deferred until the underlying transactions are completed.

t.

Per Share Information—Basic net income per share is computed by dividing net income available to commonshareholders by the weighted-average number of common shares outstanding for the period.
Cash dividends per share shown in the consolidated statement of income are presented on an accrual basis, andinclude interim dividends paid and year-end dividends to be approved after consolidated balance sheet date.
Diluted net income per share of common stock is not disclosed herein because the Company has not issued any
securities that are potentially dilutive for the years ended March 31, 2012 and 2011.

u.

Accounting Changes and Error Corrections—In December 2009, the ASBJ issued ASBJ Statement No. 24,"Accounting Standard for Accounting Changes and Error Corrections," and ASBJ Guidance No. 24, "Guidanceon Accounting Standard for Accounting Changes and Error- 12 -

Corrections." Accounting treatments under this standard and guidance are as follows: (1) Changes in
Accounting Policies—When a new accounting policy is applied with revision of accounting standards, the newpolicy is applied retrospectively, unless the revised accounting standards include specific transitional
provisions. When the revised accounting standards include specific transitional provisions, an entity shallcomply with the specific transitional provisions. (2) Changes in Presentations—When the presentation of
consolidated financial statements is changed, prior-period consolidated financial statements are reclassified inaccordance with the new presentation. (3) Changes in Accounting Estimates—A change in an accounting
estimate is accounted for in the period of the change if the change affects that period only, and is accounted forprospectively if the change affects both the period of the change and future periods. (4) Corrections ofPrior-Period Errors—When an error in prior-period consolidated financial statements is discovered, those
consolidated financial statements are restated. This accounting standard and the guidance are applicable toaccounting changes and corrections of prior-period errors that are made from fiscal year that begins on or after
April 1, 2011.
v.

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

- 13 -

This accounting standard and the guidance are effective for the end of annual periods beginning on or after
April 1, 2013, with earlier application being permitted from the beginning of annual periods beginning on orafter April 1, 2013. However, no retrospective application of this accounting standard to consolidated financial
statements in prior periods is required.
3.

SHORT-TERM INVESTMENTS AND INVESTMENT SECURITIESShort-term investments and investment securities as of March 31, 2012 and 2011, consisted of the following:Thousands of
U.S. Dollars
2012

Millions of Yen
2012
2011
Short-term investments:
Debt securities
Others

¥

1,701
501

Total

¥

2,202

Investment securities:
Marketable equity securities
Nonmarketable equity securities
Others¥ 10,722
16
40¥ 12,743
16
71$ 130,756
195
488

Total

¥ 10,778¥ 12,830$ 131,439

The cost and aggregate fair value of the securities classified as available for sale at March 31, 2012 and 2011, wereas follows:
Millions of Yen
Unrealized
Unrealized
Gains
LossesFair
Value

March 31, 2012

Cost

Securities classified as available for sale:
Equity securities
Others¥ 4,68041¥ 6,509¥467
1¥ 10,722
40

Total¥ 4,721¥ 6,509¥468¥ 10,762

Securities classified as available for sale:
Equity securities
Debt securities
Others¥ 5,5831,701
573¥ 8,202¥ 1,0421¥ 12,743
1,701
572

Total

¥ 7,857¥ 8,202¥ 1,043¥ 15,016

March 31, 2011- 14 -

March 31, 2012

Thousands of U.S. Dollars
Unrealized
Unrealized
Gains
Losses

Cost

Fair
Value

Securities classified as available for sale:
Equity securities
Others$ 57,073500$ 79,378$ 5,695
12$ 130,756
488

Total

$ 57,573$ 79,378$ 5,707$ 131,244

The proceed from sales of available-for-sale securities for the year ended March 31, 2012, was ¥113 million($1,378 thousand). The gross realized gains and losses on these sales, computed on the moving-average cost basis,for the year ended March 31, 2012, were ¥8 million ($98 thousand) and ¥395 million ($4,817 thousand),
respectively.
The impairment loss on available-for-sale equity securities for the year ended March 31, 2012, was ¥403 million($4,915 thousand).
4.

INVENTORIESInventories at March 31, 2012 and 2011 consisted of the following:

Millions of Yen
2012
2011
Finished products
Work in process
Raw materials and supplies

¥

Total

¥ 17,907

5.

4,982
5,043
7,882

¥

3,725
3,304
6,366

¥ 13,395

Thousands of
U.S. Dollars
2012$

60,756
61,50096,122$ 218,378

RETIREMENT AND PENSION PLANS
The Company and its certain subsidiaries have severance payment plans for employees, directors, and corporate
auditors.
Under most circumstances, employees terminating their employment are entitled to retirement benefits determinedbased on the rate of pay at the time of termination, years of service, and certain other factors. Such retirement
benefits are given in the form of a lump-sum severance payment from the Company or from certain subsidiaries andannuity payments from the Company, certain subsidiaries, or a trustee. Employees of the Company or certain
subsidiaries are entitled to larger payments if the termination is involuntary, by retirement at the mandatory
retirement age, by death, or by voluntary retirement at certain specific ages prior to the mandatory retirement age.

- 15 -

The liability for employees' retirement benefits at March 31, 2012 and 2011, consisted of the following:

Millions of Yen
2012
2011

Thousands of
U.S. Dollars
2012

Projected benefit obligation
Fair value of plan assets
Unrecognized actuarial loss

¥ 3,388(1,044)(155)¥ 3,313(1,075 )(51 )$ 41,317(12,732 )(1,890 )Net liability¥ 2,189¥ 2,187$ 26,695

The components of net periodic benefit costs for the years ended March 31, 2012 and 2011, are as follows:

Millions of Yen
2012
2011

Thousands of
U.S. Dollars
2012

Service cost
Interest cost
Expected return on plan assets
Recognized actuarial gain

¥ 378
65
(13)
(8)

¥ 396
66
(17)
(94)

$ 4,610793(159 )(98 )Net periodic benefit costs

¥ 422

¥ 351

$ 5,146

Assumptions used for the years ended March 31, 2012 and 2011, are as follows:

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

2012

2011

1.0%–5.3%
0.0%–2.5%
5 years

1.0%–5.3%
0.5%–3.0%
5 years

The liability for retirement benefits at March 31, 2012 and 2011, for directors and corporate auditors is¥106 million ($1,293 thousand).
6.

EQUITYJapanese companies are subject to the Companies Act of Japan (the "Companies Act"). The significant provisions in
the Companies Act that affect financial and accounting matters are summarized below:- 16 -

a.

Dividends
Under the Companies Act, companies can pay dividends at any time during the fiscal year in addition to theyear-end dividend upon resolution at the shareholders meeting. For companies that meet certain criteria, suchas (1) having a board of directors, (2) having independent auditors, (3) having a board of corporate auditors,and (4) the term of service of the directors is prescribed as one year rather than two years of normal term by its
articles of incorporation, the board of directors may declare dividends (except for dividends in kind) at any
time during the fiscal year if the company has prescribed so in its articles of incorporation. The Company
meets all of the above criteria.
The Companies Act permits companies to distribute dividends in kind (noncash assets) to shareholders subject
to certain limitations and additional requirements.
Semiannual interim dividends may also be paid once a year upon resolution by the board of directors if thearticles of incorporation of the company so stipulate. The Companies Act provides certain limitations on theamounts available for dividends or the purchase of treasury stock. The limitation is defined as the amountavailable for distribution to the shareholders, but the amount of net assets after dividends must be maintained
at no less than ¥3 million.

b.

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

c.

Treasury Stock and Treasury Stock Acquisition Rights
The Companies Act also provides for companies to purchase treasury stock and dispose of such treasury stockby resolution of the board of directors. The amount of treasury stock purchased cannot exceed the amountavailable for distribution to the shareholders, which is determined by specific formula.
Under the Companies Act, stock acquisition rights are presented as a separate component of equity.
The Companies Act also provides that companies can purchase both treasury stock acquisition rights andtreasury stock. Such treasury stock acquisition rights are presented as a separate component of equity or
deducted directly from stock acquisition rights.

7.

INCOME TAXESThe Company and its domestic subsidiaries are subject to Japanese national and local income taxes that, in theaggregate, resulted in a normal effective statutory tax rate of approximately 40.4% for the years ended March 31,
2012 and 2011.

- 17 -

The tax effects of significant temporary differences and tax loss carryforwards that resulted in deferred tax assets
and liabilities at March 31, 2012 and 2011, are as follows:

Millions of Yen
2012
2011
Deferred tax assets:
Inventories
Pension and severance costs
Tax loss carryforwards
Accrued expenses
Other
Less valuation allowance

¥

Total
Deferred tax liabilities:
Unrealized gain on available-for-sale securities
Other
Total
Net deferred tax assets

820
741
1,348
994
1,975
(2,446)

985
833
1,286
806
2,076
(2,244 )$ 10,000
9,037
16,43912,122
24,084(29,829 )

3,432

3,742

41,853(2,158)(47)(2,927 )(54 )(26,317 )(572 )(2,205)(2,981 )(26,889 )761$ 14,964¥ 1,227¥

Thousands of
U.S. Dollars
2012¥

Deferred tax assets and liabilities were included in the consolidated balance sheet as follows:

Millions of Yen
2012
2011

Thousands of
U.S. Dollars
2012

Current assets—Deferred tax assets
Investments and other assets—Deferred tax assets
Current liabilities—Other current liabilities
Long-term liabilities—Deferred tax liabilities¥ 2,077319(33)(1,136)¥ 2,157
394(36 )(1,754 )$ 25,329
3,890(401 )(13,854 )Net deferred tax assets¥ 1,227¥$ 14,964

761

Reconciliations between the normal effective statutory tax rates and the actual effective tax rates reflected in theaccompanying consolidated statements of income for the years ended March 31, 2012 and 2011, are as follows:
2012

2011

Normal effective statutory tax rate
Tax credit for research expenses
Increase in valuation allowance
Effect of tax rate reduction
Other—net

40.4 %
(6.1)
9.4
8.1
3.9

40.4 %(3.4)
3.4

Actual effective tax rate

55.7 %

42.9 %- 18 -

2.5

On December 2, 2011, new tax reform laws were enacted in Japan, which changed the normal effective statutory
tax rate from approximately 40.4% to 37.8%, effective for the fiscal years beginning on or after April 1, 2012
through March 31, 2015, and to 35.4% afterwards. The effect of this change was to increase deferred taxes in the
consolidated balance sheet as of March 31, 2012, by ¥2 million ($24 thousand) and to increase income taxes—
deferred in the consolidated statement of income for the year then ended by ¥301 million ($3,671 thousand).
At March 31, 2012, certain subsidiaries have tax loss carryforwards aggregating approximately ¥4,765 million($58,110 thousand) that are available to be offset against taxable income of such subsidiaries in future years. Thesetax loss carryforwards, if not utilized, will expire as follows:Year Ending
March 31

Millions of Yen

Thousands of
U.S. Dollars

20182019 and thereafter¥ 1,010
3,755$ 12,317
45,793

Total¥ 4,765$ 58,110

8.

R&D COSTS
R&D costs charged to income were ¥5,311 million ($64,768 thousand) and ¥5,208 million for the years ended
March 31, 2012 and 2011, respectively.

9.

REFUNDS OF EU CUSTOMS DUTIESIn the European Union (the "EU"), certain types of flat panel display monitors, including our products, had been
unfairly subject to customs duties when such tariff was in violation of Chapter 2 of the General Agreement on Tariff
and Trade.
Our distributors and sales subsidiaries in the EU were primarily responsible for such customs duties, and theCompany had subsidized 50% of the customs duties paid for both our distributors and sales subsidiaries to sustain
their price competitiveness in their markets.
Our distributors and sales subsidiaries had filed a complaint against the tax authorities in the EU. In 2010, the tax
authorities and Binding Tariff Information concluded that such monitors were duty-free. Therefore, the customs
duties paid in the past were partially refunded to our distributors and sales subsidiaries. Subsequently, the Company
received refunds from our distributors corresponding to the subsidies the Company had provided. Total amount of
those refunds were ¥7 million ($85 thousand) and ¥1,115 million, and were recorded as extraordinary profit for the
fiscal years ended March 31, 2012 and 2011, respectively.

10.

LEASES
The minimum rental commitments under noncancelable operating leases at March 31, 2012 and 2011, were as
follows:

Millions of Yen
2012
2011

Thousands of
U.S. Dollars
2012

Due within one year
Due after one year

¥ 94
142

¥ 78
118

$ 1,146
1,732

Total

¥ 236

¥ 196

$ 2,878- 19 -

11.

FINANCIAL INSTRUMENTS AND RELATED DISCLOSURES(1) Group Policy for Financial Instruments
The Group uses financial instruments based on its capital expenditure plan. Cash surpluses, if any, are invested
in low-risk financial assets. Derivatives are used, not for speculative purposes, but to manage exposure tofinancial risks as described in (2) below.
(2) Nature and Extent of Risks Arising from Financial Instruments
Receivables such as trade notes and trade accounts, are exposed to customer credit risk. Although receivables
in foreign currencies are exposed to the risk of fluctuation in foreign currency exchange rates, the position, netof payables in foreign currencies, is hedged by using forward foreign currency contracts. Marketable andinvestment securities, mainly debt securities and equity instruments of customers and suppliers of the Group,
are exposed to the risk of market price fluctuations.
All payment terms of payables, such as trade accounts, are within one year. Although payables in foreign
currencies are exposed to the risk of fluctuation in foreign currency exchange rates, those risks are netted
against the balance of receivables denominated in the same foreign currency, as noted above.
Derivatives mainly include forward foreign currency contracts that are used to manage exposure to risk ofchanges in foreign currency exchange rates of receivables and payables. Please see Note 12 for more details
about derivatives.
(3) Risk Management for Financial Instruments
Credit risk management
Credit risk is the risk of economic loss arising from a counterparty's failure to repay or service debt according
to the contractual terms. The Group manages its credit risk from receivables on the basis of internal guidelines,
which include monitoring of payment terms and balances of major customers by each business administration
department to identify the default risk of customers at an early stage. With respect to debt securities, the Groupmanages its exposure to credit risk by limiting its funding to high-credit rating bonds in accordance with in its
internal guidelines. Please see Note 12 for information about derivatives.
The maximum credit risk exposure of financial assets is limited to their carrying amounts as of March 31,
2012.
Market risk management (foreign exchange risk and interest rate risk)
Foreign currency trade receivables and payables are exposed to fluctuations in foreign currency exchange
rates. Such foreign exchange risk is hedged occasionally by forward foreign currency contracts.
Marketable and investment securities are managed by monitoring the market values and financial position ofissuers on a regular basis.
The basic principles of derivative transactions have been approved by the chief financial officer based oninternal guidelines that prescribe the authority and the limit for each transaction by the corporate treasury
department. Reconciliation of the transaction and balances with customers is made and the transaction data isreported to the chief financial officer on a monthly basis.

- 20 -

Liquidity risk management
Liquidity risk comprises the risk that the Group cannot meet its contractual obligations in full on maturity
dates. The Group manages its liquidity risk by holding adequate volumes of liquid assets along with adequate
financial planning by the corporate treasury department.
(4) Concentration of Credit Risk
As of March 31, 2012, 56.1% of total receivables are from specific major customers of the Group.
(5) Fair Values of Financial Instruments
Fair values of financial instruments are based on quoted prices in active markets. If quoted prices are notavailable, other rational valuation techniques are used instead.
(a) Fair value of financial instruments
Millions of Yen
March 31, 2012

Carrying
AmountFair Value

Cash and cash equivalents
Notes and accounts receivables
Allowance for doubtful receivables
Notes and accounts receivables (net)
Short-term investments and investment
securities¥ 16,714
17,089(68)
17,021¥ 16,714

10,761

10,761

Total¥ 44,496¥ 44,496

Accounts payable

¥

9,226

¥

9,226

Total

¥

9,226

¥

9,226

17,021March 31, 2011
Cash and cash equivalents
Notes and accounts receivables
Allowance for doubtful receivables
Notes and accounts receivables (net)
Short-term investments and investment
securities¥ 21,592
12,874(83)
12,791¥ 21,592

15,01615,016

Total¥ 49,399¥ 49,399

Accounts payable

¥

7,766

¥

7,766

Total

¥

7,766

¥

7,766

- 21 -

12,791

Unrealized
Gain/LossCarryingAmountMarch 31, 2012

Thousands of U.S. Dollars
Unrealized
Fair Value
Gain/Loss

Cash and cash equivalents
Notes and accounts receivables
Allowance for doubtful receivables
Notes and accounts receivables (net)
Short-term investments and investment
securities$ 203,829
208,403(829)
207,574$ 203,829

131,232

131,232

Total$ 542,635$ 542,635

Accounts payable$ 112,512$ 112,512

Total$ 112,512$ 112,512

207,574

Cash and Cash Equivalents
The carrying values of cash and cash equivalents approximate fair value because of their short maturities.
Notes and Accounts Receivables
The carrying values of notes and accounts receivables approximate fair value because of their short-term
settlement.
Short-Term Investments and Investment Securities
The fair values of short-term investments and investment securities are measured at the quoted market
price of the stock exchange for equity instruments and at the quoted price obtained from financial
institution for certain debt instruments. Information on the fair value for the short-term investments andinvestment securities by classification is included in Note 3.
Accounts Payable
The carrying values of accounts payable approximate fair value because of their short-term settlement.
Derivatives
The information of the fair value for derivatives is included in Note 12.
(b) Carrying amount of financial instruments whose fair value cannot be reliably determined

Millions of Yen
2012
2011
Investments in equity instruments that do nothave a quoted market price in an active market¥ 16- 22 -¥ 16

Thousands of
U.S. Dollars
2012

$ 195

(6) Maturity Analysis for Financial Assets and Securities with Contractual Maturities

March 31, 2012

Due in1 Yearor Less

Cash and cash equivalents
Receivables¥ 16,710
17,089Total¥ 33,799

Millions of Yen
Due after
Due after
1 Year
5 Years
throughthrough
5 Years
10 Years

Due after
10 Years

March 31, 2011
Cash and cash equivalents
Receivables
Investment securities:
Corporate bonds
Commercial paper
Others¥ 21,588
12,874
200
1,500
511

¥ 12

Total

¥ 36,673¥ 12

March 31, 2012

Due in1 Yearor Less

Cash and cash equivalents
Receivables$ 203,780
208,402

Total$ 412,182

12.

Thousands of U.S. Dollars
Due after
Due after
1 Year
5 Years
throughthrough
5 Years
10 Years

Due after
10 Years

DERIVATIVESThe Group enters into derivative contracts, including foreign currency forward contracts, to hedge foreign exchange
risk associated with certain assets and liabilities denominated in foreign currencies.
All derivative transactions are entered into to hedge foreign currency exposures incorporated within the Group'sbusiness. Accordingly, market risk in these derivatives is basically offset by opposite movements in the value ofhedged assets or liabilities.
Because the counterparties to these derivatives are limited to major international financial institutions, the Group
does not anticipate any losses arising from credit risk.
Derivative transactions entered into by the Group have been made in accordance with internal policies that regulate
the authorization and credit limit amount.
Derivative Transactions to Which Hedge Accounting Is Not AppliedNone.

- 23 -

Derivative Transactions to Which Hedge Accounting Is Applied
There are no derivative transactions at March 31, 2012.
Derivative transactions to which hedge accounting is applied at March 31, 2011 are as follows:

March 31, 2011
Foreign currency forward
contracts—Buying U.S. dollars

Hedged Item

Forecast transactions

Millions of Yen
Contract
AmountContract
Due after
Amount1 Year

Fair
Value

¥ 108

¥ (1)

The fair value of derivative transactions is measured at the quoted price obtained from financial institutions.
The contract or notional amounts of derivatives that are shown in the above table do not represent the amounts
exchanged by the parties and do not measure the Group's exposure to credit or market risk.
13.

COMPREHENSIVE INCOME
The components of other comprehensive loss for the year ended March 31, 2012, were as follows:

Unrealized loss on available-for-sale securities:
Losses arising during the year
Reclassification adjustments to profit or loss
Amount before income tax effect
Income tax effect
Total
Deferred gain on derivatives under hedge accounting:
Gains arising during the year
Reclassification adjustments to profit or loss
Amount before income tax effect
Income tax effectTotal
Foreign currency translation adjustments:
Adjustments arising during the year
Amount before income tax effect
Income tax effectTotal
Total other comprehensive loss

- 24 -

Millions of Yen
2012

Thousands of
U.S. Dollars
2012¥ (1,908)
790(1,118)766$ (23,268 )
9,634(13,634 )
9,341

¥

(352)

$

(4,293 )

¥

1
1

$

12
12

¥

1

$

12

¥

(42)
(42)

$

(511 )(511 )¥(42)$(511 )

¥

(393)

$

(4,792 )The corresponding information for the year ended March 31, 2011, was not required under the accounting standard
for presentation of comprehensive income as an exemption for the first year of adopting that standard and notdisclosed herein.
14.

SUBSEQUENT EVENT
The following appropriation of retained earnings at March 31, 2012 was approved at the board of directors meeting
held on May 21, 2012:

Millions of Yen

Thousands of
U.S. Dollars¥ 533$ 6,500

Year-end cash dividends, ¥25 ($0.3) per share
15.

SEGMENT INFORMATION
Under ASBJ Statement No. 17, "Accounting Standard for Segment Information Disclosures," and ASBJ Guidance
No. 20, "Guidance on Accounting Standard for Segment Information Disclosures," an entity is required to reportfinancial and descriptive information about its reportable segments. Reportable segments are operating segments oraggregations of operating segments that meet specified criteria. Operating segments are components of an entity
about which separate financial information is available, and such information is evaluated regularly by the chief
operating decision maker in deciding how to allocate resources and in assessing performance. Generally, segment
information is required to be reported on the same basis as is used internally for evaluating operating segment
performance and deciding how to allocate resources to operating segments.
(1) Description of Reportable Segments
The Group is primarily engaged in the manufacture, development, and sale of visual display systems andrelated products. The Group consists of the single industry, and therefore, it is not required to disclose separate
financial information by segment.
(2) Information about Products and Services

Monitor for
Computer Use
Sales to external customers¥ 31,611¥ 20,545

Monitor for
Computer Use
Sales to external customers

Millions of Yen
2012
Amusement
MonitorOther¥ 36,393

Millions of Yen
2011
Amusement
MonitorOther¥ 20,837- 25 -¥ 7,403¥ 7,974

Total¥ 59,559

Total¥ 65,204

Monitor for
Computer Use
Sales to external customers

Thousands of U.S. Dollars
2012
Amusement
MonitorOther$ 385,500$ 250,549

Total$ 90,280$ 726,329(3) Information about Geographical Areas(a) Sales

Japan

EuropeMillions of Yen
2012
North
America¥ 38,838¥ 15,577¥ 2,917¥ 2,227¥ 59,559

Japan

EuropeMillions of Yen
2011
North
America

Other

Total

¥ 40,759¥ 18,404¥ 3,312¥ 2,729¥ 65,204

Japan

EuropeThousands of U.S. Dollars
2012
North
America

Other

Total

$ 473,634$ 189,963$ 35,573$ 27,159$ 726,329

Other

Total

Note: Sales are classified in countries or regions based on location of customers.
(b) Property, plant, and equipment
The amount of property, plant, and equipment that exist in Japan exceeds 90% of the amount of property,
plant, and equipment in the consolidated balance sheet, and thus, there is no requirement to disclose suchinformation.
(4) Information about Major Customers
Millions of Yen
2012
Name of Customers

Sales

JT Japan Technicals
AVNET Technology Solutions GmbH

¥ 22,756
6,388- 26 -

Related
Segment NameMillions of Yen
2011
Name of Customers

Sales

JT Japan Technicals
AVNET Technology Solutions GmbH

Related
Segment Name

¥ 23,465
7,381
Thousands of
U.S. Dollars
2012

Name of Customers

Sales

JT Japan Technicals
AVNET Technology Solutions GmbH

$ 277,512
77,902******- 27 -

Related
Segment Name