46 Consolidated Financial Statements
Consolidated Financial Statements
Consolidated Balance Sheets
March 31, 2012 and 2011
AssetsThousands ofU.S. dollars

Millions of yen2011

2012

2012

Production facilities¥ 180,446¥ 171,318$ 2,064,072

Distribution facilities

461,109475,2625,726,048

Noncurrent assets
Property, plant and equipment

Service and maintenance facilities

62,14962,740755,904

Other facilities

318,239304,245

3,665,602

447

316

3,807

97,85091,705

1,104,880

1,120,243

1,105,587

13,320,325

Goodwill

1,198

741

8,928

Other39,944

47,987578,157

41,143

48,729587,096

Investment securities

137,456

131,305

1,581,988

Long-term loans receivable

21,34024,164291,133

Deferred tax assets

39,08535,060422,410

Other

31,92828,926

348,506

(909)

(750)

(9,036)228,900

218,706

2,635,012

1,390,286

1,373,023

16,542,446

Cash and deposits

90,30280,149965,651

Notes and accounts receivable — trade160,128

211,969

2,553,843

Lease receivables and lease investment assets

26,78927,751

334,349

Short-term investment securities

5,006

44,006

530,193

Inactive facilitiesConstruction in progress
Total property, plant and equipment

Intangible assets

Total intangible assets

Investments and other assets

Allowance for doubtful accounts
Total investments and other assets
Total noncurrent assets

Current assets

Merchandise and finished goods

3,591

3,538

42,627Work in process

8,937

10,734

129,325

Raw materials and supplies

36,45142,700514,458

Deferred tax assets

15,624

12,499150,590

Other

93,08958,161

700,735

(546)

(649)

(7,819)Allowance for doubtful accounts
Total current assets
Total assets

439,374

490,8615,913,988¥1,829,661¥1,863,885$22,456,446* Equivalent U.S. dollar amounts are included for the convenience of readers outside Japan, and are converted at a rate of ¥83 per U.S. dollar, the prevailing exchange rate on March 30, 2012. These conversions should not be construed as representations that the Japanese yen amounts have been, could have been, or could in the future be, converted into U.S. dollars at this or any other rate of exchange.

Consolidated Financial Statements

Thousands ofU.S. dollars

Millions of yen

Liabilities and net assets

2011

2012

2012

¥ 311,492¥ 331,493$ 3,993,892

Long-term loans payable

188,239

231,520

2,789,398

Deferred tax liabilities

17,33012,229147,337

Provision for retirement benefits

96,87085,5781,031,060

Provision for gas holder repairs

3,565

3,268

39,373—2,217

26,711

Asset retirement obligations

3,679

4,679

56,373

Other

25,53524,931

300,373

646,713695,920

8,384,578

Current portion of noncurrent liabilities

48,765

43,631

525,675

Notes and accounts payable — trade76,18092,6601,116,386

Short-term loans payable

17,825

16,599199,988

Noncurrent liabilities
Bonds payable

Provision for safety measures

Total noncurrent liabilities

Current liabilities

Income taxes payable

32,79530,479367,217

Deferred tax liabilities

6672

Asset retirement obligations

77

199

2,398

133,203129,288

1,557,687

Total current liabilities

308,853

312,864

3,769,446

Total liabilities

955,567

1,008,785

12,154,036

141,844

141,844

1,708,964

Legal capital surplus

2,065

2,065

24,880Retained earnings

718,439

706,620

8,513,494

OtherNet assets
Shareholders’ equity
Capital stock*

Treasury stock**
Total shareholders’ equity(2,355)(2,196)(26,458)

859,994

848,333

10,220,880

14,78814,853

178,952

Accumulated other comprehensive income
Valuation difference on available-for-sale securities

1,145(1,370)(16,506)

Foreign currency translation adjustment(17,008)(22,649)(272,880)

Total accumulated other comprehensive income(1,073)(9,166)(110,434)

15,174

15,933

191,964

Deferred gains or losses on hedges

Minority interests

Total net assets
Total liabilities and net assets* Capital stock
Common stock
Authorized:
6,500,000,000 shares
Issued:2,590,715,295 shares as of March 31, 2012 / 2,684,193,295 shares as of March 31, 2011** Treasury stock: 6,005,359 shares as of March 31, 2012 / 5,899,491 shares as of March 31, 2011

874,094

855,100

10,302,410¥1,829,661¥1,863,885$22,456,446

47

48 Consolidated Financial Statements

Consolidated Statements of IncomeYears ended March 31, 2012 and 2011

Thousands ofU.S. dollars

Millions of yen201120122012¥1,535,242¥1,754,257$21,135,627

Cost of sales

974,7811,215,427

14,643,699

Gross profit

560,460

538,829

6,491,916

374,919393,689

4,743,241

Net sales

Selling, general and administrative expenses
Supply and sales expenses

63,09068,064820,048

438,009461,754

5,563,301

122,451

77,075

928,614

Interest income

1,215

1,368

16,482

Dividends income

1,541

1,798

21,663Equity in earnings of affiliates

3,605

4,989

60,108Rent income

1,641

1,628

19,614

Miscellaneous income

8,891

5,783

69,675

16,895

15,568

187,566

Interest expenses

9,689

10,184

122,699

Adjustments of charges for construction of distribution facilities

2,361

2,567

30,928General and administrative expenses
Total selling, general and administrative expenses
Operating income
Non-operating income

Total non-operating income
Non-operating expenses

Miscellaneous expenses
Total non-operating expenses
Ordinary income

5,747

4,272

51,47017,79817,023205,096

121,548

75,620911,084

39,9273,010

36,265Extraordinary income
Gain on sales of noncurrent assets

726

——

40,6533,010

36,265

Impairment loss8341,143

13,771

Loss on disaster

3,268

—

—

—

2,833

34,133

2,100

—

—

503

—

—

Gain on sales of investment securities
Total extraordinary income
Extraordinary losses

Loss on reduction of noncurrent assets
Loss on valuation of investment securities
Product compensation extraordinary expenses

6,707

3,977

47,916

Income before income taxes

155,494

74,654899,446

Income taxes — current

27,522

22,704

273,542

Total extraordinary losses

Income taxes — deferred
Total income taxes
Income before minority interests
Minority interests in income
Net income¥

31,9014,620

55,66359,42427,324329,205

96,07047,329570,229

603

1,268

15,277

95,467¥46,060Yen$554,940
U.S. dollars

2011

2012

2012

¥35.63¥17.70

$0.21

9.00

9.00

0.11

Amounts per share of common stock
Net income
Cash dividends applicable to the year

* Equivalent U.S. dollar amounts are included for the convenience of readers outside Japan, and are converted at a rate of ¥83 per U.S. dollar, the prevailing exchange rate on March 30, 2012. These conversions should not be construed as representations that the Japanese yen amounts have been, could have been, or could in the future be, converted into U.S. dollars at this or any other rate of exchange.

Consolidated Financial Statements

Consolidated Statements of Changes in Net Assets
Years ended March 31, 2012 and 2011
Shareholders’ equity
Capital stock
Balance at the beginning of current period
Changes of items during the period
Total changes of items during the period
Balance at the end of current period
Legal capital surplus
Balance at the beginning of current period
Changes of items during the period
Changes of items during the period
Balance at the end of current period
Retained earnings
Balance at the beginning of current period
Changes of items during the period
Dividends from surplus
Net income
Disposal of treasury stock
Retirement of treasury stock
Change of scope of consolidation
Total changes of items during the period
Balance at the end of current period
Treasury stock
Balance at the beginning of current period
Changes of items during the period
Purchase of treasury stock
Disposal of treasury stock
Retirement of treasury stock
Total changes of items during the period
Balance at the end of current period
Total shareholders’ equity
Balance at the beginning of current period
Changes of items during the period
Dividends from surplus
Net income
Purchase of treasury stock
Disposal of treasury stock
Change of scope of consolidation
Total changes of items during the period
Balance at the end of current period
Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Balance at the beginning of current period
Changes of items during the period
Net changes of items other than shareholders’ equity
Total changes of items during the period
Balance at the end of current periodDeferred gains or losses on hedges
Balance at the beginning of current period
Changes of items during the period
Net changes of items other than shareholders’ equity
Total changes of items during the period
Balance at the end of current period
Foreign currency translation adjustment
Balance at the beginning of current period
Changes of items during the period
Net changes of items other than shareholders’ equity
Total changes of items during the period
Balance at the end of current period
Total accumulated other comprehensive income
Balance at the beginning of current period
Changes of items during the period
Net changes of items other than shareholders’ equity
Total changes of items during the period
Balance at the end of current period
Minority interests
Balance at the beginning of current period
Changes of items during the period
Net changes of items other than shareholders’ equity
Total changes of items during the period
Balance at the end of current period
Total net assets
Balance at the beginning of current period
Changes of items during the period
Dividends from surplus
Net income
Purchase of treasury stock
Disposal of treasury stock
Change of scope of consolidation
Net changes of items other than shareholders’ equity
Total changes of items during the period
Balance at the end of current period

Thousands of
U.S. dollars

Millions of yen

2011

2012

2012

¥141,844¥141,844$ 1,708,964—
141,844—
141,844—
1,708,964

2,065

2,065

24,880

—
2,065

—
2,065

—
24,880657,387

718,439

8,655,892(25,549)
95,467(1)(7,919)(943)
61,052
718,439(23,683)
46,060—(34,196)—(11,819)
706,620(285,337)
554,940—(412,000)—(142,398)
8,513,494(1,986)(2,355)(28,373)(8,314)
25
7,919
(369)
(2,355)(34,046)
8
34,196158(2,196)(410,193)
96
412,000
1,904(26,458)

799,310

859,994

10,361,373(25,549)
95,467(8,314)23(943)
60,683859,994(23,683)
46,060(34,046)
8—(11,661)
848,333(285,337)
554,940(410,193)
96—(140,494)
10,220,880

20,175

14,788178,169(5,386)(5,386)
14,78864
64
14,853771
771
178,952

1,690

1,145

13,795

(544)
(544)
1,145

(2,516)(2,516)(1,370)(30,313)(30,313)(16,506)(7,290)(17,008)(204,916)(9,717)(9,717)(17,008)(5,640)(5,640)(22,649)(67,952)(67,952)(272,880)

14,575(1,073)(12,928)(15,649)(15,649)(1,073)(8,092)(8,092)(9,166)(97,494)(97,494)(110,434)

12,404

15,174

182,819

2,769
2,769
15,174759
759
15,9339,145
9,145
191,964

826,291874,094

10,531,253(25,549)
95,467(8,314)23(943)(12,879)
47,803¥874,094(23,683)
46,060(34,046)
8—(7,333)(18,994)¥855,100(285,337)
554,940(410,193)
96—(88,349)(228,843)$10,302,410* Equivalent U.S. dollar amounts are included for the convenience of readers outside Japan, and are converted at a rate of ¥83 per U.S. dollar, the prevailing exchange rate on March 30, 2012. These conversions should not be construed as representations that the Japanese yen amounts have been, could have been, or could in the future be, converted into U.S. dollars at this or any other rate of exchange.

4950 Consolidated Financial Statements

Consolidated Statements of Cash Flows
Years ended March 31, 2012 and 2011

Thousands ofU.S. dollars

Millions of yen

2011

2012

Income before income taxes¥ 155,494¥ 74,654

Depreciation and amortization

145,389

144,4382012

Net cash provided by (used in) operating activities

Impairment loss
Amortization of long-term prepaid expenses
Loss on retirement of property, plant and equipment
Loss (gain) on sales of noncurrent assets
Loss on reduction of noncurrent assets
Increase (decrease) in provision for retirement benefits
Increase (decrease) in provision for safety measures
Interest and dividends income$

899,446
1,740,217

834

1,143

13,771

3,946

4,067

49,000

3,248

2,917

35,145(39,849)(2,920)(35,181)—

2,833

34,133(34,104)(11,291)(136,036)

(184)

2,217

26,711(2,757)(3,166)(38,145)
122,699

Interest expenses

9,689

10,184Equity in (earnings) losses of affiliates(3,605)(4,989)(60,108)

Decrease (increase) in notes and accounts receivable — trade(7,095)(52,333)(630,518)

Decrease (increase) in inventories

8,181(7,960)(95,904)
263,699

Increase (decrease) in notes and accounts payable — trade(52,523)

21,887

Increase (decrease) in accrued consumption taxes(5,260)1,111

13,386

Decrease (increase) in accounts receivable — other

24,227(7,180)(86,506)(14,157)(871)(1,175)

Other, net(7,512)

5,323

64,133

Subtotal

197,248

179,759

2,165,771

Decrease (increase) in lease receivables and lease investment assets

Interest and dividends income received

6,900

10,140122,169

Interest expenses paid

(9,840)(10,217)(123,096)(31,963)(29,864)(359,807)

162,345

149,818

1,805,036

Payments into time deposits(5,847)(2,247)(27,072)

Proceeds from withdrawal of time deposits

7,115

3,435

41,386

Purchase of investment securities(21,737)(1,133)(13,651)

Purchase of property, plant and equipment(137,624)(124,063)(1,494,735)

Purchase of intangible assets(13,191)(16,323)(196,663)(47)(1,550)(18,675)

Purchase of long-term prepaid expenses(2,814)(1,354)(16,313)

Proceeds from sales of noncurrent assets

653

46,488560,096

Income taxes paid
Net cash provided by (used in) operating activities
Net cash provided by (used in) investment activities

Payments for transfer of business

Payments of long-term loans receivable(3,188)(7,053)(84,976)

Collection of long-term loans receivable

1,719

1,710

20,602Other, net

2,656

280

3,373

(172,305)(101,810)(1,226,627)

Net cash provided by (used in) investment activities
Net cash provided by (used in) financing activities
Net increase (decrease) in short-term loans payable

8,915(1,225)(14,759)

Increase (decrease) in commercial papers

15,000(15,000)(180,723)

Proceeds from long-term loans payable

17,33968,258822,386

Repayment of long-term loans payable(33,541)(19,555)(235,602)

Proceeds from issuance of bonds

40,00040,000481,928

Redemption of bonds(20,000)(30,000)(361,446)

Purchase of treasury stock(8,314)(34,046)(410,193)

Cash dividends paid

(25,524)(23,671)(285,193)

Other, net(1,087)(1,213)(14,614)(7,212)(16,454)(198,241)

Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash equivalents(3,716)(1,518)(18,289)

Net increase (decrease) in cash and cash equivalents(20,889)

30,034

361,855

Cash and cash equivalents at beginning of year

112,868

92,0481,109,012

68——¥ 92,048¥ 122,083$ 1,470,880

Increase in cash and cash equivalents from newly consolidated subsidiary
Cash and cash equivalents at end of year

* Equivalent U.S. dollar amounts are included for the convenience of readers outside Japan, and are converted at a rate of ¥83 per U.S. dollar, the prevailing exchange rate on March 30, 2012. These conversions should not be construed as representations that the Japanese yen amounts have been, could have been, or could in the future be, converted into U.S. dollars at this or any other rate of exchange.