Annual Report2009

for the year ended March 31, 2009

Profile
Founded in 1907, The Japan Steel Works, Ltd. (JSW)
had by the end of World War II accumulated richreserves of sophisticated technologies as Japan’slargest private-sector manufacturer of weapons.
Following the war, these technologies formed thefoundations for the Company’s shift to peacetime
industry. Taking advantage of its expertise inproducing unexcelled steel and machinery, theCompany has developed a wide range of machinery
while successfully entering new business fields. The
Company is proud of the acclaim it has won for its
large steel castings and forgings, heavy machineryand steel structures, steel plates, plastics machinery,
and industrial machinery, as well as equipment andengineering for the oil, gas, chemical, andpetrochemical industries.
At present, JSW is a leader in the development ofadvanced technologies for the fields of new andnatural energies, advanced materials, optics,
electronics, biotechnology, and other cutting-edge
areas. It also is moving into urban redevelopment
and environment-related businesses and carryingout complex business initiatives in a wide range ofindustrial and social areas. Nonetheless, theCompany remains committed to providing valuable
products and services to world markets and to
gaining the confidence of customers while achieving
profitability that satisfies its shareholders.

Contents
1
2
5
6
8
13
14
18
20
21
22
40
41

Financial Highlights (Consolidated)
Message from the Management
TopicsOur Business Domains
Review of Operations
Research and Development
Corporate Governance
The Environment
Board of Directors and Corporate
Auditors
Financial Section
Financial Performance (Consolidated)
Corporate Directory
Offices & Plants

Forward-Looking Statements
The forward-looking statements in this annual
report reflect judgments based on information
available at the present time. Actual results
may differ widely due to various factors.

Financial Highlights (Consolidated)
THE JAPAN STEEL WORKS, LTD. AND CONSOLIDATED SUBSIDIARIES

Years ended March 31, 2009, 2008 and 2007

Thousands of
U.S. Dollars

Millions of Yen

2009

2008

2007

2009

Net sales ........................................................

¥227,113¥220,851¥207,138$2,312,053

Operating income ...........................................

36,63332,47524,678372,931

Net income......................................................

16,034

17,484

12,515

163,229

Total assets ....................................................

296,909262,453

232,4443,022,590

Total net assets ..............................................

90,12585,23175,621

917,490

ROE.................................................................

18.3%

21.8%

17.7%

Equity Ratio.....................................................

30.3%

32.4%

32.4%

Net income .....................................................

¥43.19¥47.10¥33.71$0.44

Cash dividends applicable to the year ...........

12.00

12.00

9.00

0.12

For the year:

At year-end:

Ratios:Amounts per share (yen and U.S. dollars):

Note: Amounts in U.S. dollars are presented solely for convenience and based on the rate of ¥98.23 = US$1.00,
the rate of exchange on March 31, 2009, the date of the Company’s most recent balance sheet.

25.00

12.50

0

43.19

47.10

37.50

8.70

2005 2006 2007 2008 2009

50.00

17.57

6,586

2005 2006 2007 2008 2009

3,284

0

0

¥

33.71

12,515

10,0005,000

60,00016,03415,000Net Income per Share¥ million
20,00017,484Net Income

227,113173,353

158,274

120,000

220,851

180,000

207,138Net Sales¥ million
240,000

2005 2006 2007 2008 20091

Message from the Management
Company posts record profits amid
harsh business conditions

Masahisa Nagata
Representative Director &Chairman of the Board of
Directors (right)

Ikuo Sato
Representative Director &President (left)

Business performance
The financial meltdown in the U.S. last September triggered a global economic downturn during thesecond half of the term under review, and the Japanese economy also slowed down. The yen’s rapid
appreciation against the dollar and the euro forced Japanese exporters to cut production, and businessperformance weakened. At the same time, companies curbed plant and equipment investments, andstocks declined further, leading to a deterioration in corporate performance on an unprecedented
scale. A worsening employment environment and sluggish consumer spending have resulted in a
protracted economic recession, with no prospects of a recovery in sight.
Against this backdrop, JSW achieved record sales, operating income, and ordinary income. The
Machinery Products segment was sluggish, but the Steel Products segment achieved a strong
performance. Consequently, sales in the reporting term increased 3% year-on-year to ¥227,113
million (US$2,312 million). A rise in profits accompanied the growth in sales. In the Steel Products
segment, a steady flow of orders enabled stable operation rates and cost reductions through improved
productivity. We were also able to raise product prices to reflect the rise in raw materials prices. As aresult, operating income rose 13% year-on-year to ¥36,633 million (US$373 million) and ordinary
income increased 16% to ¥35,949 million (US$366 million), marking record profit levels. In
contrast, net income declined 8% to ¥16,034 million (US$163 million) as a result of losses on thevaluation of investment securities and the disposal of obsolete facilities accompanying investment in
new equipment.
Orders received for the reporting term, on a consolidated basis, posted a 9% decrease from thepreceding term, to ¥240,420 million (US$2,448 million), due to a lackluster performance by the2Machinery Products segment, which more than offset a brisk performance in the Steel Products
segment.

Accomplishment in our medium-term management plan
We are in the final year of the revised medium-term management plan “J2008R,” which covers thetwo years of fiscal 2007 and 2008. The main targets of this management plan are the enhancement ofbusiness scale, the improvement of capital efficiency, and the promotion of CSR. To respond to thegrowing demand worldwide for energy, and especially the heightened need for clean energy, we areundertaking large-scale capital investment and working to raise production efficiency. During theterm, we took steps to improve the efficiency of assets and the soundness of our financial position.
We conducted inventory adjustments, and made efforts to achieve an early recovery of accounts
receivable and to secure advances. However, as explained above, there was a rapid deterioration in
our business environment from September onward, and total sales declined to slightly below thetarget, due to a significant sales decline in the Machinery Products segment. Meanwhile, we madeefforts to reduce production costs and cut fixed costs. In the Steel Products segment, sales and orders
received remained firm, pushing up the capacity utilization rate, causing the Company’s operating
income and ordinary income to exceed targets by a large margin. Net income also exceeded targets,
despite the registering of losses on the valuation of investment securities and the disposal of obsolete
facilities.

Numerical targets and results (Consolidated)(¥ billion)

Term ended March 31, 2008

Sales
OperatingincomeOrdinary
incomeNet
incomeNet interestbearing debt
(assets), excluding
lease obligations

Term ended March 31, 2009

Targets
under J2008R

Results

Increase/(decrease)

Targets
under J2008R

Results

Increase(decrease)

217.0

220.8

235.0

227.1

26.0

32.4

29.0

36.6

25.0

30.8

27.5

35.9

13.0

17.4

14.5

16.0

10.0

(7.9)

3.8
1.8%
6.4
24.6%
5.8
23.2%
4.4
33.8%
(17.9)

14.0

6.4

(7.9)
(3.4%)
7.6
26.2%
8.4
30.5%
1.5
10.3%
(7.6)

Note: Amounts less than ¥100 million have been rounded down.

Taking into consideration the large-scale investment in equipment being undertaken at the Muroran
Plant and the need to ensure a sufficient level of retained earnings, we have decided to keep ourannual dividend at the previous year’s level of ¥12 per share, with ¥6 per share paid mid-term, and ¥6
per share to be paid at the term-end.

3

Message from the Management
Forecasts for fiscal 2009
Steadily working toward achievement of fiscal 2009 targets
There are no signs that the global economy will recover any time soon, and demand trends in ourcustomer markets also remain unclear. For these reasons, we decided not to draft a new medium-term
management plan for fiscal 2009. Instead, we have set the following targets for the current term,
which will serve as the basis for the next term’s plan.

Priority Issues

Main tasks by segment• Cutting production costs
and reducing capital
investment expenses

Steel Products• Realizing further
technological superiority
to secure top market
shares in even moreproducts• Raising employee skill
levels• Investing resources instaff hiring and training,to create top-class workforce
• Pursuit of CSR targets• Ensuring workplace andhigher product quality

1) Major equipment investment plans being undertaken at
the Muroran Plant will be tailored to comply with changes
in product segment demand.
2) Further expansion in sales of energy-related products suchas pressure vessels for power plants (both thermal andnuclear) and oil refineries.

Machinery Products
1) Acquiring further orders from emerging economies,
particularly China, for plastics manufacturing andprocessing and molding machinery.
2) Steps to expand sales and improve profitability of windturbine system business; also steps to expand sales of IT
equipment and speed up development in this field.

By segment, the Steel Products segment, with its substantial order backlog, is expected to continue
showing a strong performance centering primarily on sales of products in the thermal power
generation and nuclear power generation fields. Amid growing demand worldwide for energy and theglobal trend toward environmental load reductions, we expect to see a further expansion in orders forcomponents for thermal power plants, which are becoming larger in scale and more efficient, andalso nuclear power plants. Demand is also expected to be strong for pressure vessels for oil refineries.
Despite an increased burden for depreciation expenses accompanying plant and equipment
investment, we expect earnings to be on par with the previous year’s level as a result of an anticipatedincrease in sales and a rising capacity utilization rate accompanying a continuing upward trend inorders, which began in fiscal 2008.
In the Machinery Products segment, we expect further growth in wind turbine systemequipment due to the growing demand for clean energy. In contrast, sales are expected to weaken forplastics machinery, processing equipment and plastic injection molding machinery as a result of adecline in equipment investment by the automobile industry, the leading customers for thisequipment. Despite a persistent harsh environment for plastic injection molding equipment orders,given the trend among automakers and home electronic appliance makers to postpone equipment
investment, we are taking steps to win orders for plastics machinery and processing equipment from
China and other emerging economies. We thus expect to see a year-on-year rise in orders in thissegment.
Taking into account the considerations stated above, we forecast sales of ¥217 billion(US$2,209 million), operating income of ¥28 billion (US$285 million), ordinary income of ¥27
billion (US$275 million), and net income of ¥15.5 billion (US$158 million).

4

On June 29, President Masahisa Nagata was appointed Chairman of the Board of Directors, andmanaging director Ikuo Sato was appointed President. Under this new management lineup we willcontinue to fully utilize our proprietary technologies and pursue technological advances to remaincompetitive despite the current harsh conditions. We appreciate the ongoing support andunderstanding of our shareholders.
June 2009

Masahisa Nagata
Representative Director & Chairman of
the Board of Directors

Ikuo Sato
Representative Director & President

TopicsEquipment investment at our Muroran Plant
Our Muroran Plant is equipped with cutting-edge large-scaleequipment, such as a hydraulic press that can handle up to
14,000 tons, and a 100-ton ESR (electroslag remelting) furnace.
The plant manufactures a wide variety of products. In addition tolarge items, it produces small- and medium-sized cast andforged steel products, clad steel plates and clad steel pipes. At
the Muroran Plant, production of energy-related items for use inthermal and nuclear power plants and wind turbine systemfacilities is expected to total ¥132.5 billion (US$1,349 million) in
fiscal 2009, and demand is expanding rapidly. To respond to
The facility at our Muroran Plant currently undergoing
expansion (Steel ingot production plant)
this rapid growth, JSW is undertaking investments totaling ¥80
billion (US$814 million), to be implemented in two stages. In thefirst phase we will invest a total of ¥50 billion (US$509 million) for plant construction, and have set aside
another ¥30 billion (US$305 million) in the second phase for additional equipment investment.
Through this series of investments, we will be able to expand our production capabilities for large
forged steel products from the second half of fiscal 2010. Thus, in fiscal 2010 we plan to raise production
capacity for forged steel products for nuclear power plants to approximately three times the fiscal 2007 level(specifically, to 12 units per year). Through such an expansion in production capacity, we are working to meetthe growing global demand for these products.

5

Our Business Domains
JSW and the JSW Group carry out awide range of business activities in a

Steel Products

variety of fields. In the steel products
area, these activities include theproduction and sale of steel castings andforgings and the production and sale ofSales Composition

steel plates and structures. In themachinery area, these activities include
the production and sale of plastics and

47.5%

other machinery, magnesium alloy
injection molding machines and molded
products, IT equipment, and wind power
equipment, which is a business area
developed in recent years. In addition,
we are active in regional development
and information systems as part of ourprogram of business diversification.

Machinery Products

Sales Composition

51.7%

Regional Development
Sales Composition

1.0%

6

Steel Castings and Forgings

Main Business Lines

Making steel in electric furnaces, we produce a broad range of cast products, as well as
steel ingots for forged products and for rolling. Regarding forgings, after being forged
into the required shapes by presses of various types and sizes, and undergoing heat
treatment, machining, and finishing, these products are used in machinery and facilities
for the electric power generation industry (fossil fuel, hydroelectric, and nuclear power
stations), and the steel-making and general industrial machinery industries, where their
quality and reliability have won high praise in Japan and abroad.

Here our main business lines are the production andsale of products for power generation, steel-making,chemical machinery, nuclear power-related machineryand equipment, and roll molds.

Steel Plates and Structures

Main Business Lines

Our plate rolling mill, one of the largest in Japan, can roll extremely thick, wide, andlong steel plates with a maximum thickness of up to 350 millimeters, a maximum widthof 4.8 meters, and a maximum length of 20 meters. It is used to produce clad steel plates
mainly. In addition, we carry out integrated manufacturing processes from raw materials
to products, producing a wide range of pressure vessels (for oil refining and the chemicalindustry) through the use of our advanced welding technology and facilities. These
products enjoy strong demand from Japan as well as overseas.

Our main business lines are the production and sale ofproducts for oil refining, the petroleum and generalchemical industries, and for power generation as well
as a wide range of pressure vessels, clad steel plates,
and clad steel pipes.

Plastics Machinery

Main Business Lines

Working to lead the competition in developing products that address the growing
sophistication and diversity of plastics materials, we have built up a solid position as
a comprehensive plastics machinery manufacturer that is involved in everything fromupstream polyolefin extruders/pelletizers to processing equipment. In addition, we
have established a polymer processing technology development center that can test
plastics technologies so as to respond quickly to market changes, and have put inplace an integrated development system.

JSW’s main business lines are the production and saleof injection molding machines, blow molding machines,
and other composite plastics production andprocessing machinery (including polyolefin
extruders/pelletizers, compound extruder mixing
machines, equipment for making films and sheets, andothers).

Other Machinery

Main Business Lines

We manufacture defense-related equipment, power plant equipment, environmentrelated equipment, and other industrial machinery to meet wide-ranging demand.
As such, our activities are developing on a world-wide scale. In recent years, we also
have been devoting effort to developing environment-related business.

In this area, our main business lines are the production,
sale, and maintenance of fluid machinery, hydraulicmachines, machinery for the production of electronic
components and displays, metal-working machinery,waste-treatment equipment, magnesium alloy injection
molding machines, die-casting machine, wind turbine
system equipment, and defense-related equipment.

Regional Development

Main Business Lines

Centered on the construction of office buildings, commercial facilities, and rental
condominiums on Company-owned land, we engage in regional development
operations with the objective of ensuring stable earnings through the utilization ofidle assets. Our goal is to raise our earnings and revitalize local communities
through a more effective application of our assets, based on the reserves of expertise
we have accumulated in our business operations.

Here our main business lines are the rental ofproperties and the sale of properties developed on idle
real estate.

7

Review of Operations

Steel Products Segment
Steel Castings and Forgings Sector

Monoblock Low Pressure Turbine Rotor
Shaft

Shell Flange Used for Pressure Chamber for
Nuclear Power Plant

70.2

60

40

54.2

50.3

Orders Received

Performance in fiscal 2008

¥ billion
80

39.8

35.6
20

0

2005 2006 2007 2008 2009Sales

¥ billion
80

Demand for thermal power plant components remained strong, with the global
financial crisis having a minimal impact thanks to a high level of orders from
China, the country with the strongest demand in the world in this field. In
addition, nuclear power plant components are benefiting from a new surge inthe revival of nuclear energy in European countries. In particular, the French
company AREVA has made aggressive efforts to expand its nuclear powerbusiness, and we have received several orders for nuclear power companies in
China. At JSW, customers reserve production slots, and we are seeing signs thatdemand will continue to grow.
Supported by a large order backlog, sales for steel castings and forgings
sector rose ¥5.4 billion year-on-year to ¥46.5 billion (US$473 million), while
total orders increased ¥16.0 billion to ¥70.2 billion (US$715 million).

60

Forecast for fiscal 2009
41.1

40.2

31.3

28.5

20

46.5

40

0

2005 2006 2007 2008 20098

Against the backdrop of a substantial backlog of orders for power plants (boththermal and nuclear) and a continuing steady inflow of new orders, sales areprojected to post a year-on-year increase, and despite an expected increase indepreciation expenses on capital equipment, this should be offset by the growthin sales and production as well as successful measures to lower the cost of sales.
Consequently, earnings are forecast to maintain their upward trend. With newplant projects are being undertaken in Japan and China, orders will likely
remain at a high level for nuclear power plant components, but there will be anincrease in the downward pressure on prices for components for thermal power
plants accompanying the decline in materials prices. We expect this to have anegative impact on orders that have been front-loaded in fiscal 2008. Thanks to
our competitive superiority in large rotors, we expect demand for this productto remain brisk.
In the Steel Castings and Forgings Sector, we forecast sales of ¥54 billion(US$550 million) and orders of ¥68.5 billion (US$697 million).

Steel Plates and Structures Sector

Clad Steel Pipe

Clad Steel Plate

45.5

49.4

45

58.6

61.7

Orders Received

Performance in fiscal 2008

¥ billion
60

30

25.9

15

0

2005 2006 2007 2008 2009Sales

¥ billion
60

57.0

45

46.3

29.3

33.2

30

21.0

15

Orders for pressure vessels from oil refineries decreased due to such factors as the
mid-term decline in crude oil prices, which remained at a low level through to theterm-end, and intensified competition with European companies as a result of the
yen’s appreciation against the euro, leading to the deterioration in the business
operating environment. However, sales increased, supported by a substantial
backlog of orders. Although demand for clad pipe for use in natural gas fields
remained firm, orders declined for clad steel plates for use in desalination and oil
refinery plants etc. as a result of the postponement of a project and the impact of
the yen’s rapid appreciation in the second half of fiscal 2008.
Consequently, sales for the steel plates and structures sector came to ¥57
billion (US$580 million), up ¥10.7 billion, while orders fell by ¥13.1 billion to¥45.5 million (US$463 million).

02005 2006 2007 2008 2009

Forecast for fiscal 2009
Our balance of orders for pressure vessels for oil refineries comes works for two
years (fiscal 2009 and 2010). Regarding orders, largescale projects are getting
underway in South America and the Middle East, but we must take into accountthe intensifying severe competition and remember that we should not be too
optimistic profitability will be a concern from fiscal 2011 onward.
In clad steel plates, in addition to the limited order backlog, orders are expected
to be low in terms of both volume and value. Accordingly, we expect that profitability
will also remain low. In contrast, we have backlog of orders for clad pipes for the
fiscal 2009 full year. We expect increase of order in 2009 compared with 2008.
As a result, we forecast sales of ¥49.5 billion (US$504 million), and ordersof ¥41 billion (US$417 million).

9

Review of Operations

Machinery Products Segment
Plastics Machinery Sector

Blow Molding Machine

Polyolefin Extruder/Pelletizer

74.1

60

44.0

44.1

40

57.7

57.7

Orders Received

Performance in fiscal 2008

¥ billion
80

20

0

2005 2006 2007 2008 2009Sales

¥ billion
80

54.7

40.4

47.6

40

64.1

64.8

60

20

0

2005 2006 2007 2008 200910

A significant backlog in orders for plastics production and processing
machinery contributed to an increase in profits. Orders fell short of target as aresult of the large earthquake in Sichuan, China, in May 2008, and the impactof the global financial credit crunch in the second half of fiscal 2008, whichcaused companies to postpone, cancel or delay projects and equipment
investments. In the injection molding machinery market, the expansionary
trend in the market during the past few years — by equipment investment in
the auto industry — has been halted in the wake of the global financial crisis,and demand remains sluggish.
As a result, sales in the plastics machinery sector declined ¥700 million to¥64.1 billion (US$653 million), while orders fell by a substantial ¥30.1 billion
to ¥44.0 billion (US$448 million).

Forecast for fiscal 2009
We expect to see the impact of the decline in orders for plastics production andprocessing machinery received in fiscal 2008. We saw a rapid growth in orders
from China after the Chinese government implemented large-scale economic
stimulus measures. Thus, we expect orders to show a pick-up from the second
half onward. However, the lead-time is long, and the contribution to sales infiscal 2009 is expected to be limited.
In addition, measures taken by Beijing to stimulate domestic demand are
expected to have a limited spillover effect on the country’s export industries. For
this reason, we expect that a rapid recovery in Japan’s plastics machinery is
unlikely. The future of Japan’s auto industry is unclear, and orders and sales forplastics machinery are expected to remain low in fiscal 2009, unchanged fromthe second half of the previous fiscal year.
Consequently, we expect orders for plastics machinery of ¥45.5 billion(US$463 million), and sales of ¥35.5 billion (US$361 million).

Other Machinery Sector

Die-casting Machine

Wind Turbine System

45

45.5

44.4

30

42.9

38.5

Orders Received

Performance in fiscal 2008

¥ billion
60

31.6
15

0

2005 2006 2007 2008 2009Sales

¥ billion
60

45

46.6
35.5

35.8

26.8

15

37.3

30

In IT equipment and laser annealing systems, in the first half of fiscal 2008
several influential Korean customers froze its capital investment. Then, in thesecond half of fiscal 2008, Japanese, Taiwanese and Korean flat panel makers
postponed projects or cancelled orders due to bad business situation caused by
the global financial crisis. Both orders and sales declined for magnesium alloy
injection molding machines, with applications limited to notebook PCs. In
contrast, wind turbine system equipment, which benefits from a significant
backlog of orders, saw a slight decline in sales due to customers’ schedule delays
affected by a changing the applying rule of building construction standards.
Orders for wind turbine system equipment benefited from increase of the
maximum limit of electricity produced by wind turbine by some electric powercompanies in Japan to increase their wind turbine system businesses.
As a result, sales in the other machinery sector declined ¥8.7 billion to¥26.8 billion (US$273 million), while orders increased ¥1.1 billion to ¥45.5
billion (US$463 million).

02005 2006 2007 2008 2009

Forecast for fiscal 2009
Regarding IT equipment and laser annealing systems, we anticipate thewidespread adoption of low temperature polysilicon (LTPS) for small andmedium-sized flat panel displays. The LTPS technology enables manufacturers
to make these panels high-definition slimmer and more lightweight. Moreover,the business environment is showing signs of a gradual recovery, as evidenced
by the rising plant operation rates of Korean and Taiwanese LCD panel makers.
We are also expecting a rise in orders of magnesium alloy injection molding
machines and die-casting machines for applications in the automobile industry.
We have a substantial backlog in wind turbine system equipment, and sales andorders are expected to rise.
As a result, in the Other Machinery sector we forecast sales of ¥51.5 billion(US$524 million) and orders of ¥63.5 billion (US$646 million).

11

Review of Operations

Regional Development
Regional Development
227,113220,851

¥
50.00

43.19

47.10

37.50

33.71

689
6,586
689

746

1.7

2.0

2.0

93,84812,515

10,00016,034

17,484

12,51516,034

17,48415,0002005 2006 2007 2008 2009

Net Income per Share¥ million
20,000

3,284

0

868

8,000

6,586

5,000

0

Net Income 1,130

Operating Income

2.9

119,347

124,118

144,461

12,000207,138Net Income

227,113220,851

Orders totaled ¥1,766 million (US$18
million) and15,000
sales came to ¥1,767 million(US$18 million). Operating income rose by¥54 million, 10,000
or 8%, to ¥743 million (US$8
million). This increase was due largely to
successful cost-cutting measures.

20052008
20062009
2007 2008 20092005 2006 2007

¥ million
16,000173,353

1.7

2.0

1.7

2.0

1.9

26.8

3.3

2.0

Capital Expenditures

207,138
1.7
173,353
2.0
158,274
2.9

35.5
2.4

99,363100,000

Net Sales3.3

Sales

3.0

46.6

Sales

Operating Income

3.0

150,000

180,0000¥ billion
4.0¥ million
Performancein fiscal 2008
20,00060,0001.0

2005 2006 20072005
20082006
20092007 2008 2009

¥ million
200,000

2005 2006 2007 2008 2009

¥ million
240,000

120,000

2.0

00¥ billion
4.0

3.0

1.0

15

JSW Apartment Building Development(Fuchu,Tokyo)
0

0

3.0

.2.0

60,0002005 2006 2007 2008 2009

¥ billion
4.0

35.8

Orders Received
37.3

Sales

30

2.0

1.9

Business Office Development(Fuchu Intelligent Park)
2005 2006 2007 2008 200945

120,000

1.0

0

180,000

158,274

.2.0

31.6
15

¥ billion
60

Net Sales

3.0¥ million
240,000

3.0

45.5

44.4

42.9

30

¥ billion
4.0

2.4

Orders Received

45

38.5

Orders Received¥ billion
60

25.00

17.57

Capital expenditures
for the reporting period totaled ¥25,882
million (US$263 million), with the majority spent on installation,
1.0
5,000
4,000
12.50
improvement and maintenance work on a variety of production facilities at the parent company.
Details of capital expenditure by individual business segment are as follows.
0
0
0
0
0
In the steel(US$230
million). This expenditureconsisted
2005products
2006 2007 business,
2008 2009 capital expenditures totaled ¥22,555
2005 2006million
2007 200820092005 2006 2007 2008 20092005 2004 2007 2008 20092005 2006 2007 2008 2009
largely of investments to enlarge buildings and upgrade equipment at steel-making plants, the installation of new equipment and theupgradingof existing equipment at forging plant facilities, aswell as the expansion of buildings at machinery plants.
¥¥ million
50.00
In16,000
the machinery products business, capital expenditures
came to ¥3,135 million (US$32 million) as a result of theconstruction of a fourth assembly plant at our Hiroshima Plant, and investments to raise machine processing efficiency.
37.50 consisted primarily of the upgrading of facilities on real estate for
In12,000
the regional development business, capital expenditure
rental purposes, totaling ¥43 million (US$0.4 million).
Capitalcame to ¥147 million (US$1 million).
8,000 expenditures unallocable to individual segments
25.00

50,000

43.19

47.10

33.71

17.57

689

689

8.70

0

2005 2004 2007 2008 2009

8.70

3,284

868

746

12.50

0

12

Net Income per Share

1,130

Operating Income

4,000

2005 2006 2007 2008 2009

Research and Development

Muroran Research Laboratory

Research and development activities were almost entirely
funded by the parent company (The Japan Steel Works,
Ltd.). Combined spending on research and development
for the Steel Products business and the Machinery
Products business amounted to ¥4,178 million (US$43
million).
As a materials and mechatronics company, we strive
to develop new products and production techniques using
our own technology, while also actively promoting
widespread technical alliances and joint development inan effort to put new products and technologies into effectas quickly as possible. In terms of the direction of researchand development, our Research & Development
Headquarters continues to promote cooperation withindividual business divisions in order to: (1) improve thecapabilities, performance and reliability of our coreproducts and (2) develop products and businesses to meetrequirements in new business fields.
Our Research & Development Headquarters
encompasses our headquarters (located at Head Office),
the Muroran Research Laboratory (situated on thepremises of the Muroran Plant), and the Machinery
Research Laboratory (located at the Hiroshima Plant).
Our basic research and development policy is as follows.
1. Promoting the development of new products andbusinesses by focusing on the technological fields of
new energy & energy savings, information &telecommunications, nanotechnology & materials, andnew production technologies, which are directly related
to our current business activities. We aim to expand ourfields of business by improving our core technologies
while pursuing increased collaboration between the
Research & Development Headquarters and ourbusiness divisions.
2. Promoting promising themes for future technology andbasic research to fulfill the needs of 21st century society,and developing them into research and development
projects that will translate into new products andbusinesses in the future. Simultaneously, we conduct
research on elemental technologies used in existingproducts to realize innovations for those products.
3. Making strenuous efforts to identify new themes for

Hiroshima Research Laboratory

research and development that meet current market
needs, and selecting new key development projects thathave a high potential to become significant earners for
the Company in the future. We will make investments
in human resources and property, and allocate funds toselected fields, while forming alliances to shorten
development time where it is thought appropriate.

Overview of R&D activities by businesssegment
G
G
G Steel Products
In terms of the development of materials-related products,
we have been carrying out research and development insuch areas as clad steel pipes for natural gas transportation,high alloy materials for high-efficiency thermal power
generation, forged steel products for next-generation
nuclear power plants, and high-performance nonferrous
alloys. We have also been developing hydrogen-absorbing
alloys, as well as their applied systems, such as hydrogentanks for fuel cells. For fiscal 2008, spending on steel
product research and development totaled ¥1,573 million(US$16 million).
G
G
G Machinery Products
In the field of machinery-related products, we have beendeveloping low-cost production technologies for highperformance magnesium alloy injection molding
machines, the commercialization of aluminum die-casting
devices, and high-precision molding technology for plastic
extruder and injection molding machinery. We have also
been working on laser applications, including systems for
cutting-edge laser annealing equipment used in the
production of TFT (thin-film transistor) liquid crystal
displays, and other applications for laser devices. In thefield of new energy, we have been working on the designof wind turbine blades for use at wind power generation
plants, and are endeavoring to establish various related
analytical technologies. We are also developingpressurized hydraulic compressor equipment. Spending on
machinery product research and development totaled¥2,605 million (US$27 million) for fiscal 2008.

13

Corporate Governance
Basic Stance on Corporate Governance
At JSW, we believe we must earn the trust of all our stakeholders, including our shareholders and employees,
not merely to raise our enterprise value, which comprises both the Company’s economic value and its value
to society in the broader sense, but to make possible our very existence.
We have, therefore, designed a set of management structures to ensure an effective system of corporate
governance, and have taken all necessary measures to facilitate the appropriate disclosure of corporate
information so as to achieve the level of management transparency demanded by investors today.

An Outline of our Corporate
Governance System
The Company employs the traditional statutory auditor
system, comprising 13 directors and four statutory
auditors, two of whom are outside auditors. One
outside auditor works on a regular basis. The Board of
Directors debates and passes resolutions on matters ofimportance to the management of the Company,
including basic management policies and matters
stipulated by legal statute. The Board is also responsible
for overseeing the management of day-to-day
operations by the heads of departments and plants, andother managers of similar rank.
Meetings are also held by the Executive Board,
composed of the Company’s chairman, president,
executive vice presidents, senior directors, and anyother person as shall be designated by the president.
This committee, augmented when deemed necessary by
the heads of operating divisions and general plant
managers to form the Management Council, analyzes
the business environment, monitors the progress ofbusiness plans, and ensures that knowledge is widely
shared among the Company’s management staff andthat the opinions of specialists are heard and reflectedin the final decisions made by the Company’s top
management. The activities of these bodies ensure that
corporate governance is conducted effectively, and, inparticular, that the principles of legal and ethicalcompliance are properly observed.
The Company’s statutory auditors (hereafter“corporate auditors”) attend meetings of the Board of
Directors, the Executive Board, the Management

14

Council, and other important meetings. They also pay
regular inspection visits to all the Company’s plants
and offices, and to its subsidiaries, and exercise strict
oversight with regard to the execution of their duties by
the Company’s directors.

Our Internal Control
and Risk Management System
JSW regards it as a management issue of crucial
importance to have an effective internal control system
in place to ensure the correct performance of business
operations. We are, therefore, working to improve oursystem of internal control in line with our Basic Policy
on Internal Control Systems as well as detailed
measures decided each year for dealing with specificinternal control issues. The points below delineate thefundamental stance adopted by the management of
JSW toward the issue of internal control, and theprogress achieved thus far in strengthening theCompany’s internal control system.
1. Improving the internal control system
In addition to setting up a specialist unit dedicatedto supervising the Company’s internal control
system, the Internal Control Committee holds
meetings both regularly and ad hoc as deemednecessary.
2. Observance of legal regulations and theCompany’s Articles of Incorporation
JSW does not limit compliance to the prevention of

illegal acts and the observance of legal regulations
and the Company’s Articles of Incorporation. It
views compliance in the broader context of generalsocial responsibilities and the upholding of a wide
variety of rules and regulations, which include theCompany’s Vision, its Management Philosophy, andAction Guidelines. The key to success for complianceactivities is that the directors take the initiative insetting an example and practicing truthfulness, whileraising employee awareness on compliance issues
through training sessions and other means.
The implementation of compliance activities isoverseen by a director who has been appointed tosupervise CSR activities. Committees have been
formed to oversee internal controls, security andexport controls, environmental management, safety
and hygiene (hereafter collectively referred to as “thecommittees”). These committees undertake activities
companywide.
Meanwhile, the planning and administration
departments of each business unit closelycollaborate with the corresponding departments ofmanagement planning, personnel training,accounting and financing, general affairs and legal
affairs within the headquarters (hereafter,“headquarters departments”) to carry out
compliance duties. In this way, we have achieved adivision of duties from the overall management
control function, and through mutual cooperation,
management controls are overseen in every area.
We have established a department responsiblefor internal controls to ensure that the Company’s
overall administrative operations observe all laws
and regulations, as well as in-house rules. In
addition to periodic audits, this department
conducts spot audits at other times, as deemednecessary. The results of these audits are reported tothe president.
We have also created a system of internal andexternal routes for reporting and discussing
compliance violations when discovered. The person
filing the report is guaranteed anonymity. Violators,
regardless of whether they are directors or staff, will
be punished accordingly, and measures will be taken
swiftly to prevent any recurrence.

The Company has clarified in writing its policyof strict opposition to the activities of criminalorganizations or individuals. As specific measures
within its internal control system to ensure noninvolvement with such criminal elements, theCompany has mandated careful background checks
on business partners, the inclusion in basic contracts
drawn up with other companies of clauses specifying
the exclusion of known criminal organizations or
individuals, the requirement to report all contacts
with such criminal elements, and the establishmentof a single dedicated office for the investigation ofsuch reports and the management ofcountermeasures.
3. Safeguarding and management of information
We have appointed a chief information security
officer (CISO) to ensure the safeguarding andmanagement of information. In accordance with inhouse regulations governing the safeguarding of
documents and other information and basic data
security guidelines, the minutes of generalshareholder meetings, meetings of the Board of
Directors and Strategy Council meetings, as well as
written requests for approval of managerial decisions(rinshinsho), and other important documents are
stored in written form or in the Company’s computer
database, where they are held in safekeeping. We also
store and manage information relating to ourinternal controls system, to ensure an adequate
degree of disclosure of corporate information.
4. Risk management
The risk management system confirms that thepresident, the division chief, the general plant
managers, the directors in charge of departments
within headquarters, and other executives arecarrying out their duties within the scope of theirauthority, as stipulated by job authority regulations
and the system for managerial decisions (ringisho),and that they control the risks involved in the loss ordamage to authority in the execution of duties.
Important items pertaining to risk management are
discussed at meetings of the Board of Directors or of
the Strategy Council.

15

Corporate GovernanceTo manage the wide variety of risks to which theCompany is exposed, a director of the Company has
been placed in charge of overall risk management.
Controls are being implemented across divisionboundaries by the Internal Controls Committee andother committees. Simultaneously, each business
unit’s planning and administration departments, aswell as the plants’ departments and headquarters
departments work together with the departments
responsible for overseeing every area of risk
management. Reports are made on the status of risk
management and the suitability of the measures inplace at meetings of the Board of Directors and theStrategy Council.
Risk managers are assigned within each divisionat the headquarters, within each business unit, andat each plant. These risk managers ascertain theappropriateness of existing measures and work toeliminate everyday risks. In the case of critical risk
situations, a crisis management headquarters isestablished to provide the appropriate response. In
this way, we are responding to risks under bothordinary and extraordinary circumstances.
5. Ensuring efficient performance of duties
The president is the chief executive officer, anddirectors have been assigned to departments within
the headquarters and our plants. In addition,
directors have been put in charge of business units
that are responsible for the profitability planningand budget controls of each product division. The
directors must perform their duties in an efficientmanner within the scope of their authority, as
specified in the job authority regulations for theposts of president, director in charge, business unit
chief, and general plant manager, or else indicatedunder the ringisho system for managerial decisionmaking. High-priority items are brought before theBoard of Directors or the Strategy Council for
discussion, approval and reporting.
At JSW, the management drafts a list of common
goals to be shared companywide by directors andemployees through incorporation in the Company’s
Medium-Term Management Plan, and the businessplans for each business unit. Each director develops

16

specific measures for achieving these goals. A
division of duties is undertaken in line with the inhouse regulations, and the specific measures areplanned and implemented. Each director conducts areview of the results and provides periodic progress
reports, as well as impromptu reports at meetings ofthe Board of Directors, the Strategy Council and theManagement Council. All members of the JSW
management are working to ensure impartial
personnel evaluations.
The Company has prepared an outline of duties
to be executed by each director of the Board, and theorder in which these duties are to be performed. Also
indicated are the types of work experience, knowhow, specialized skills, and technology required.
These documents are revised on an ongoing basis toreflect the actual situation, taking into account all
varieties of laws, regulations and risk
countermeasures. In addition, the appropriate
educational activities and training are recommended
for each director and employee.
6. Ensuring appropriate management conduct at
Group companies
The Company encourages its subsidiaries to follow
its Vision, Management Philosophy and Action
Guidelines, and also create their own systems ofinternal controls. In addition, the Company
supports the autonomy of their management.
The Company has drafted regulations
concerning the operation and management of its
subsidiaries. The responsibilities of each division of
the Company will be made clear with regard to thecontrols governing operations and the nurturing ofoperations of subsidiaries. At the same time, theCompany is creating a system whereby reports andnotifications can be made regarding subsidiaries’
decisions on important issues and other matters ofconcern, and data can be collected.
Corporate governance system has been adopted
whereby directors and statutory auditors can be
assigned to JSW subsidiaries. To ensure oursubsidiaries’ strict adherence to all laws andregulations, as well as in-house company
regulations, we request that these companiesconduct in-house audits, both periodic and spot
audits, through the departments in charge of eachsubsidiary, and also by a department responsible forthe internal auditing of subsidiaries. We will also
directly audit operations and provide guidance for
improving internal controls of subsidiaries.
7. Appointing staff to assist corporate auditors, andensuring the independence thereof
The Company appoints staff from among its
employees to assist the corporate auditors in theperformance of their duties. The opinions of theauditors themselves are sought with respect to theappointment and dismissal of the said staff and allother personnel-related measures such as
performance evaluation and bonuses, and no action
is taken without the auditors’ agreement, so as toensure the independence of the auditors’ assistantsfrom the influence of the directors of the Company.
8. System for submission of reports to the auditors by
the directors and employees of the Company
In addition to attending meetings of the Board of
Directors, the Executive Board, and the Management
Council, as well as other important managerial
meetings, the corporate auditors also request memos
and the minutes of decision-making meetings fortheir perusal, and hold regular meetings (as well as
ad hoc meetings when deemed necessary) with thedirectors and managerial-level employees. The
auditors may request reports from directors or
employees at any time as they deem this necessary.
The timing of these reports and the method to be
used are agreed beforehand through discussions
between the auditors and the directors or employees.
The corporate auditors of the Company conduct
audits of the Company’s subsidiaries to ascertain thestate of management of these companies. This isdone through close liaison with the corporate
auditors of the subsidiaries and the staff of theCompany’s divisions responsible for supervision ofsubsidiaries, as well as the Internal Audit Divisionand other head office divisions.

9. Ensuring effective performance of audits by the
corporate auditors
The directors and employees of the Company are
fully aware of the importance of audits performed by
the corporate auditors, and wherever possible givepriority to cooperating with the auditors in theirduties.
The corporate auditors have the authority torequest the cooperation of the Company’s Internal
Audit Division, other head office divisions, and allother divisions of the Company in the performanceof audits.
The corporate auditors collaborate closely withthe accounting auditors (an external accounting firm
meeting).
The corporate auditors have the authority toemploy the services of legal advisors and otheroutside experts as appropriate.

Policy Regarding Large-Scale
Purchases of Company Shares
By resolution of a meeting of the Board of Directors of
The Japan Steel Works, Ltd. held on September 10,
2007, the Company instituted a set of rules to beobeyed and procedures to be followed by any party
seeking to make a tender offer for the purchase of 20%
or more of the total shares issued and outstanding of
the Company. These rules and procedures were adopted
under the name of Measures Against Large-Scale Share
Acquisitions (Measures to Prevent Takeover).
Subsequent to this resolution, an amended version ofthese measures (hereinafter “the present plan”) waspresented to the Company’s 82nd Regular General
Meeting of Shareholders held on June 27, 2008, and theagenda item was approved by vote of a majority ofshareholders present.
The present plan is a preemptive measure toprevent a takeover which utilizes the gratis issue of sharesubscription rights, and is effective for a three-year
period ending with the Regular General Meeting of
Shareholders to be held in June 2011.

17

The Environment
Environmental Policy
The Company recognizes that as a responsible member of society it has an important duty to operate inharmony with the environment. We engage in business with the aim of contributing to the sustainable
development of society through production activities that respect environmental integrity, and by
developing environmental preservation technologies.

Action plan
1. We aim to carry out environmental tasks in an
organized way, and to implement environmental
preservation activities continuously.
2. We will set appropriate objectives and targets for
reducing the burden our activities impose on theenvironment.
3. We aim to provide society with products and services
that contribute to the preservation of theCommon policy for plants
Taking into consideration its business activities, thelocal community and the surrounding environment,each plant sets out its own environmental policy,
objectives and targets using methods compliant withinternational standards and operates in line with thefollowing guidelines.
1. Respect laws and regulations and agreements wehave concluded with external parties.

environment, as detailed below.
(1) Through our products we endeavor to increase
our value to society in terms of environmental
protection, safety and hygiene.
(2) We provide products and services to reduce
environmental loads by obtaining a clear grasp ofenvironmental needs and technical development.

Environmental Management System
The Environmental Management Committee, headedby the Director in charge of Environmental
Management, determines matters such as annual
environmental management policies and programs ofenvironmental activities for the whole company. Each
plant has its own Environmental Supervisory
Committee, which promotes environmental
management activities and works hand in hand withother group companies to reduce the environmental
impact of the Company’s activities.
President

Environmental
Management Committee

Environmental
Supervisory Committees

Chief Environmental
Management Supervisor/
Environmental Management
Committee Chairman(Director in charge ofEnvironmental Management)

Environmental Management
Plant Supervisors(General Plant Managers)

Special Committees• Energy Saving Committees• Product Committees

Departments

18

Environmental Management
Supervisors

Affiliated companies

Medium-Term Plan for Environmental Management Activities (Fiscal 2009-2012)
We are promoting environmental management activities at our Muroran, Hiroshima and Yokohama plants. Social
awareness has changed greatly regarding the need to deal with such issues as the mitigation of global warming,saving energy, and processing waste.
During the fiscal 2008, we undertook activities at each plant toward the achievement of the yearly targets set
out in our medium-term plan for environmental management activities, covering the five-year period from fiscal
2006-2010.
With regard to the observance of laws and regulations, we implement environmental patrols at
environmental-related facilities, plants, and other sites in the vicinity. We confirm that all environmental
preservation-related laws and regulations are being observed, and that the environmental management system isfunctioning properly. To effectively communicate the results of the environmental patrols, we carry out employee
training programs for affiliates and collaborating companies, as well as at our headquarters.
We will work to achieve the targets contained in our medium-term plan for environmental management
activities for the four-year period which starts in fiscal 2009.

Environmental Preservation Activities
The following section introduces some of JSW’s wide
range of environmental preservation activities.
Reducing atmospheric emission of nickel compounds
At the Muroran Plant, we are working to ensure that
atmospheric emission of nickel compounds are withinprescribed standards by making the necessary revisions tooperations, processes, and equipment, and through theintroduction of new equipment.
Working together with the local municipal government
since fiscal 2005, we have created our own voluntary
controls, and have been undertaking various activities.
Safety and disaster prevention activities
We regularly implement environmental patrols at each plantto verify management status and audit data relating to
specific air- and water-related facilities, pretreatment
facilities, oil-water separation tanks and other facilities.
Community contribution
As part of our social contribution activities, we conduct acleanup campaign along the main streets in the vicinity of
our Yokohama Plant in April each year.
The cleanup campaign is conducted along roads
between a nearest Station and our Yokohama Plant’s maingate. Employees collect empty cans and pick up cigarettebutts and other refuse. The trash is taken back to the plant,
where it is separated and disposed of. We intend this to be
an ongoing activity.

19

Board of Directors and Corporate Auditors
Board of Directors and Corporate Auditors
Representative Director & Chairman of the Boardof Directors
Masahisa Nagata

Directors
Koichi Murao
Director of Machinery Business Division

Etsuo Murai

Representative Director & President

Director of Steel Business Division, General Plant Manager of
Muroran Plant

Ikuo Sato

Representative Director & Executive Vice
President

Takao Ishido

Hisao Iwashita

Tamotsu Hayakawa

General Plant Manager of Hiroshima Plant

Assisting president, In charge of Safety & Hygiene Control, In charge of
Personnel Department and Finance & Accounting Department, CFO

Representative Director & Senior Managing Directors

Deputy General Plant Manager of Muroran Plant, General
Manager of MR-21 Promotion Office

Yutaka Mizutani
General Plant Manager of Yokohama Plant, General Manager of
NY Promotion Office

Atsushi Igarashi
Assisting president, In charge of CSR & Risk Management, Secretary
Office, General Affairs Department, Business Administration Department,
and Export Control Administration

Yuichi Yoshino

Corporate Auditors
Nobuyuki Minato
Kenji Uetani

Assisting president, In charge of Products Strategy Office, andEnvironmental Manegement, CTO, Director of Research & Development
Headquarters

Managing Directors

Yasuhisa Naka
Hiroo Suto(as of June 29, 2009)

Yoshitomo Tanaka
Director of Injection Moulding Machinery Division

Seiichi Uehara
Director of Ordnance Business HeadquarterNobuyuki Toda
Deputy in charge of CSR & Risk Management, General Manager ofCorporate Planning Office, Director of Urban Development Division

Organization

Corporate Planning Office
Personnel Dept.

General Meeting of Shareholders
Secretary Office
General Affairs Dept.
Finance ＆ Accounting Dept.
Domestic Offices
Board of Directors

Business Administration Dept.
Overseas Offices

Executive Board

Research & Development
Headquarters
Muroran ResearchLaboratory

President

Steel Business Division

Muroran Plant

Machinery Business Division

Yokohama Plant

Hiroshima ResearchLaboratory
Injection Moulding Machinery DivisionInternal
Auditors Office

Products Strategy Office
Ordnance Business Headquarters
Hiroshima Plant

Board of Corporate
Auditors

20

Urban Development Division

Financial Section
THE JAPAN STEEL WORKS, LTD.

Six-Year SummaryYears ended March 31

Millions of Yen

Consolidated

2009

2008

2007

2006

2005

2004

¥227,113¥220,851¥207,138¥173,353¥158,274¥136,309

16,034

17,484

12,515

6,586

3,284

2,000

296,909262,453

232,444

196,656

184,683

180,019

90,12585,23175,621

66,03958,07554,689Amounts per share (yen):
Net income . . . . . . . . . . . . . . . . . . .

¥43.19¥47.10¥33.71¥17.57

¥8.70

¥5.39

Non-Consolidated

2009

2008

2007

2006

2005

2004

¥196,030¥189,318¥177,493¥145,555¥129,948¥114,272

15,44915,878

12,233

6,026

2,429

1,392

277,301

243,433

215,693

180,734

168,808

168,571

82,44977,95869,90760,602

52,89950,810¥41.62¥42.77¥32.95¥16.07

¥6.39

¥3.75

¥12.00¥12.00

¥9.00

¥5.00

¥3.00

¥2.00

Net sales . . . . . . . . . . . . . . . . . . . . . . . .
Net income . . . . . . . . . . . . . . . . . . . . . .
Total assets . . . . . . . . . . . . . . . . . . . . . .
Total net assets . . . . . . . . . . . . . . . . .

Millions of Yen

Net sales . . . . . . . . . . . . . . . . . . . . . . . .
Net income . . . . . . . . . . . . . . . . . . . . . .
Total assets . . . . . . . . . . . . . . . . . . . . . .
Total net assets . . . . . . . . . . . . . . . . .
Amounts per share (yen):
Net income . . . . . . . . . . . . . . . . . . .
Cash dividends applicable tothe year . . . . . . . . . . . . . . . . . . . . . .

Contents
21 Six-Year Summary
22 Financial Performance (Consolidated)
24 Consolidated Balance Sheets
26 Consolidated Statements of Income
27 Consolidated Statements of Changes in Net Assets
28 Consolidated Statements of Cash Flows
29 Notes to Consolidated Financial Statements
39 Report of Independent Auditors

21

Financial Performance (Consolidated)
Operating Results
Net Sales
Sales by the Machinery Products Business for thereporting period declined slightly year-on-year, but the
Steel Products Business posted good results. Total sales
consequently rose 3% from the previous year, to¥227,113 million (US$2,312 million).

Net Income
Net income fell 8% to ¥16,034 million (US$163
million). The decline is primarily due to losses on thevaluation of investment securities and the disposal of
facilities accompanying equipment investments.
Earnings per share came to ¥43.19 (US$0.44).

Operating Income
Operating income posted an increase of 13% to ¥36,633
million (US$373 million). This is mainly attributable to
growth in sales, as well as cost reductions stemmingfrom a rise in the capacity utilization rate thanks to asteady inflow of orders for steel products and improved
productivity. The Company’s success in pushing throughincreases in selling prices to offset higher prices of raw
materials was also a contributing factor.

Overseas Sales
Sales in East Asian markets declined 11% from theprevious year, to ¥44,343 million (US$451 million).
Sales in North America increased 33% to ¥12,443
million (US$126 million), while sales in other regions
rose 41% to ¥63,065 million (US$642 million). Total
overseas sales grew by 15% to ¥119,853 million(US$1,220 million), accounting for 53% of theCompany’s net sales on a consolidated basis.

Cash Flows
Cash Flow from Operating Activities
Net cash provided by operating activities amounted to¥26,319 million (US$268 million), down from ¥42,040
million for the previous term. This was due to theposting of ¥27,630 million (US$281 million) in income
before income taxes and minority interests, as well as
depreciation expenses in the amount of ¥11,873 million(US$121 million), both of which are non-cash
components, and losses on the valuation of investment
securities, which outweighed income taxes paid andincreased expenditures to boost production.

Cash and cash equivalents stood at ¥39,904 million(US$406 million) at the reporting term-end, up ¥3,771
million year-on-year. This is attributable to the postingof income before income taxes and minority interests inthe amount of ¥27,630 million (US$281 million),compared with ¥30,461 million for the previous term,in addition to proceeds from long-term borrowings.
These positive factors more than offset capital
investment for the enhancement of production
efficiency and expenditures for the acquisition of
investment securities.

28

14% of total sales

11,250

0

5,854

0

2005 2006 2007 2008 2009

22,5007,291

033,75026,319103,937

37,50085,92175,00042

35,63037.9

119,853

38.7

41.5

¥ million
45,00042,04047.1
112,500

Oversea sales

22

％
56

Net Cash Provided by Operating Activities

52.8

65,776

2005 2006 2007 2008 2009

¥ million
150,000

61,2707,721

12,876

10,500Overseas Sales

32,47521,000036,63331,50024,678Operating Income¥ million
42,0002005 2006 2007 2008 2009

Net Cash from Investment Activities
Net cash used in investing activities amounted to ¥33,148
million (US$337 million), up from ¥24,765 million forthe previous term. This was due mainly to an investment of¥22.2 billion (US$226 million) in property, plant andequipment for the purpose of raising production efficiency.
Outlay was also made for the purchase of investment
securities.

Cash Flow from Financing Activities
Net cash provided by financing activities amounted to¥10,614 million (US$108 million), compared with a net
cash outflow of ¥8,571 million for the previous term. This
net cash inflow resulted from ¥20 billion (US$204
million) in proceeds from long- and short-termborrowings, which more than exceeded the payment of¥5,011 million (US$51 million) in dividends toshareholders.

Financial Position
Total assets as of the end of March 2009 stood at ¥296,909
million (US$3,023 million), up ¥34,456 million, or 13%,from the previous term-end. This was due a rise in current
assets caused by an increase in inventory assets (principally
goods in process), and an increase in property, plant andequipment resulting from capital expenditure, mainly in
the Steel Products Business, as well as an increase in leaseassets following the introduction of lease accounting.
Liabilities at the reporting term-end stood at ¥206,783
million (US$2,105 million), up ¥29,561 million, or 17%,
over the previous term-end. This is attributable to anincrease in lease obligations accompanying the
introduction of lease accounting, as well as long-termborrowings. Interest-bearing debt increased by ¥24,796
million to ¥53,388 million (US$543 million). Net assets at
the reporting term-end totaled ¥90,125 million (US$917
million), for an increase of ¥4,894 million, or 6%, over theprevious term-end.

54,00053,38846,95436,00051,06918,00028,592

32,076

Interest-Bearing Debt

¥ million
72,00002005 2006 2007 2008 2009

0

%
36.0

ROE

22,500Equity Ratio

90,12566,03958,07545,00085,231

67,50075,621Net Assets¥ million
90,000

33.5
27.0

31.1

32.4 32.4

30.3

21.8

12.0

9.0

6.0

18.3

17.7

18.0

18.0

10.7
5.9

0

0

2005 2006 2007 2008 2009

%
24.0

2005

2006

2007

2008

2009

2005

2006

2007

2008

2009

23

THE JAPAN STEEL WORKS, LTD. AND CONSOLIDATED SUBSIDIARIES

Consolidated Balance Sheets
March 31, 2009 and 2008

Thousands ofMillions of Yen

ASSETS

2009

2008

2009

¥ 39,957¥ 36,552$ 406,770

903
48,622143(278)
72,586
3,499
8,823
174,258

176
51,909642(315)
66,815
3,921
8,961
168,6639,193
494,981
1,456(2,830)738,939
35,62089,8201,773,979

Less accumulated depreciation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Property, plant and equipment, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

9,642
71,42895,302
8,075
15,546
199,996(108,669)
91,327

9,749
64,05185,829—3,108
162,739(101,462)
61,277

98,157727,151
970,192
82,205
158,261
2,035,997(1,106,271)
929,726

Intangible assets. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

1,318

623

13,417

Investments, long-term loans and other assets:
Investments in unconsolidated subsidiaries and affiliates . . . . . . . . . . . . . . . . . . .
Investment securities (Note 16) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other long-term loans receivable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Deferred tax assets (Note 13) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Less allowance for doubtful accounts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total investments, long-term loans and other assets . . . . . . . . . . . . .
Total assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

691
21,450
61
2,017
6,011
(226)
30,004¥296,909

353

7,035
218,365621
20,53361,193Current assets:
Cash on hand and in banks (Note 12) ......................................................
Notes and accounts receivable:
Unconsolidated subsidiaries and affiliates .............................................
Trade ..................................................................................................
Other ...................................................................................................
Less allowance for doubtful accounts ..................................................
Inventories (Note 4) ..................................................................................
Deferred tax assets (Note 13) ...................................................................
Other current assets .................................................................................
Total current assets .........................................................................

Property, plant and equipment, at cost (Notes 5, 6 and 8):
Land .........................................................................................................
Buildings and structures ............................................................................
Machinery and equipment ........................................................................
Leased assets ..........................................................................................
Construction in progress . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

The accompanying notes are an integral part of these statements.

24

U.S. Dollars (Note 3)

24,247
213
1,542
5,726
(196)
31,888¥262,453(2,301)

305,446$3,022,590

Thousands ofMillions of Yen

LIABILITIES AND NET ASSETS
Current liabilities:
Short-term bank loans (Note 8) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Current portion of long-term debt (Note 8) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Notes and accounts payable:
Unconsolidated subsidiaries and affiliates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Trade . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Advances received for products . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Accrued expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Accrued income taxes (Note 13) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other current liabilities (Note 8) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total current liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Long-term liabilities:
Long-term debt (Note 8) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Accrued retirement benefits (Note 15):
For employees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
For directors and corporate auditors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Deferred tax liabilities (Note 13) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other long-term liabilities (Note 8) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total long-term liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

2009

¥

6,198
2,322

U.S. Dollars (Note 3)

2008

¥

6,218
2,135

2009

$

63,097
23,63895
42,457
10,03344,068—
4,038
25,651
134,866692
48,0404,490
49,018
9,756
9,975
5,981
136,308967
432,220
102,138
448,621—
41,108261,132
1,372,961

37,917

20,239386,002

6,303
185
5
27,506
71,917

5,484
149
1,406
13,63340,91364,1661,883
51
280,016
732,129

Net assets:
Shareholders’ equity (Note 18):
Common stock:
Authorized — 1,000,000,000 shares
Issued — 371,463,036 shares in 2009 and 2008 . . . . . . . . . . . . . . . . . . . . . . . .
Capital surplus . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Retained earnings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Treasury stock, at cost (234,126 shares in 2009 and
190,337 shares in 2008) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total shareholders’ equity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

19,694
5,424
69,627

19,694
5,422
58,492200,489
55,217
708,816(182)
94,563(137)
83,472(1,853)
962,669

Valuation, translation adjustments and other:
Net unrealized gain (loss) on investment securities . . . . . . . . . . . . . . . . . . . . . . . . . .
Loss on deferred hedges . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Translation adjustments. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total valuation, translation adjustments and other . . . . . . . . . . . . . . . . . . . .

(3,868)(379)(435)(4,683)

1,930
(254)
(160)
1,514

(39,377)(3,858)(4,428)(47,674)

Minority interests . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total net assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total liabilities and net assets. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

246
90,125¥296,909

244
85,231¥262,453

2,504
917,490$3,022,590

25

THE JAPAN STEEL WORKS, LTD. AND CONSOLIDATED SUBSIDIARIES

Consolidated Statements of Income
For the years ended March 31, 2009 and 2008

Thousands ofMillions of Yen

2009

2008

2009

Net sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Cost of sales (Note 14). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Gross profit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Selling, general and administrative expenses (Note 14) . . . . . . . . . . . . . . . . . . .
Operating income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other income (expenses):
Interest and dividend income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Interest expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other, net (Note 9) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

¥227,113
161,560
65,552
28,91936,633¥220,851
160,642
60,20927,73332,475$2,312,053
1,644,711
667,332
294,401
372,931695(440)(9,259)(9,003)369(466)(1,916)(2,014)

7,075(4,479)(94,258)(91,652)

Income before income taxes and minority interests. . . . . . . . . . . . . . . . . . . . . . . .
Income taxes (Note 13):
Current . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Deferred . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Minority interests in net income of consolidated subsidiaries . . . . . . . . . . . . . . .
Net income (Note 20) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

27,63030,461

281,279

11,612(39)
23¥ 16,034

14,184(1,228)21¥ 17,484

118,212(397)
234$ 163,229

The accompanying notes are an integral part of these statements.

26

U.S. Dollars (Note 3)

THE JAPAN STEEL WORKS, LTD. AND CONSOLIDATED SUBSIDIARIES

Consolidated Statements of Changes in Net Assets
For the years ended March 31, 2009 and 2008

Thousands of
U.S. Dollars(Note 3)

Millions of Yen
2009

2008

Millions of Yen

2009

2009

Common stock:Thousands of
U.S. Dollars(Note 3)

2008

2009

Loss on deferred hedges:

Balance at beginning of year ............. ¥19,694 ¥19,694$200,489

Balance at beginning of year ............. ¥(254) ¥ (1,364)

Balance at end of year ...................... ¥19,694 ¥19,694$200,489

Net changes in items other thanthose in shareholders’ equity...........

(124)

1,110

(1,262)

Balance at end of year ...................... ¥(379) ¥

(254)

$ (3,858)

Balance at beginning of year ............. ¥(160) ¥

(118)

$ (1,629)

Net changes in items other thanthose in shareholders’ equity...........

(275)

(42)

(2,800)

Balance at end of year ...................... ¥(435) ¥

(160)

$ (4,428)

Balance at beginning of year ............. ¥ 1,514 ¥ 4,325$ 15,413

Capital surplus:
Balance at beginning of year ............. ¥ 5,422 ¥ 5,422
Sales of treasury stock......................

1$ 55,197—

10

Balance at end of year ...................... ¥ 5,424 ¥ 5,422$ 55,217

Retained earnings:
Balance at beginning of year ............. ¥58,492 ¥46,019$595,460

Adjustments for inclusion of a
subsidiary in consolidation ..............

111

—

1,130

Net income .......................................

16,034

17,484

163,229

Cash dividends paid .........................

(5,011)(5,012)(51,013)

Balance at end of year ...................... ¥69,627 ¥58,492$708,816

Treasury stock, at cost:
Balance at beginning of year ............. ¥(137) ¥(59)

$ (1,395)

Purchases of treasury stock..............

(47)

(77)

(478)

Sales of treasury stock......................

2

—

20

(182) ¥(137)

$ (1,853)

Balance at end of year ...................... ¥Translation adjustments:

Total valuation, translation
adjustments and other:

Net changes in items other thanthose in shareholders’ equity...........

(6,198)(2,811)(63,097)

Balance at end of year ...................... ¥ (4,683) ¥ 1,514$ (47,674)

Minority interests:
Balance at beginning of year ............. ¥Net changes in items other thanthose in shareholders’ equity...........
Balance at end of year ...................... ¥Total shareholders’ equity:$ (2,586)

244 ¥

218

2

25

246 ¥

244

$

2,484

$

2,504

20

Total net assets:

Balance at beginning of year ............. ¥83,472 ¥71,077$849,761

Net income .......................................

16,034

17,484

163,229

Balance at beginning of year ............. ¥85,231 ¥75,621$867,668

Cash dividends paid .........................

(5,011)(5,012)(51,013)

Net income .......................................

16,034

17,484

163,229

Cash dividends paid .........................

(5,011)(5,012)(51,013)Purchases of treasury stock..............

(47)

(77)

(478)

Purchases of treasury stock..............

(47)

(77)

(478)

Adjustments for inclusion of a
subsidiary in consolidation ..............

111

—

1,130

Sales of treasury stock......................

4

—

41

Adjustments for inclusion of a
subsidiary in consolidation ..............

111

—

1,130

$962,669

Sales of treasury stock......................

4

—

41

Net changes in items other thanthose in shareholders’ equity...........

(6,196)(2,785)(63,076)

Balance at end of year......................... ¥90,125 ¥85,231$917,490

Balance at end of year ...................... ¥94,563 ¥83,472
Net unrealized gain (loss) on
investment securities:
Balance at beginning of year ............. ¥ 1,930 ¥ 5,808
Net changes in items other thanthose in shareholders’ equity...........

$ 19,648

The accompanying notes are an integral part of these statements.

(5,798)(3,878)(59,025)

Balance at end of year ...................... ¥ (3,868) ¥ 1,930$ (39,377)

27

THE JAPAN STEEL WORKS, LTD. AND CONSOLIDATED SUBSIDIARIES

Consolidated Statements of Cash Flows
For the years ended March 31, 2009 and 2008

Thousands ofMillions of Yen

2009

2008

2009

¥27,630
11,963
2
(695)
440
—
6,067
765
2,109
(11)
—

¥30,461
9,577
739
(369)
466
37
258
772
1,248
(1,896)(118)$281,279
121,786
20(7,075)
4,479—
61,773
7,788
21,470
(112)
—

7,734
(7,058)(5,771)533
43,707696(434)(17,650)
26,31928,196(5,266)(8,586)(1,890)53,630392(457)(11,525)
42,04078,734(71,852)(58,750)
5,426
444,946
7,085(4,418)(179,680)
267,932

Investing activities:
Increase in tangible and intangible assets. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Decrease in tangible and intangible assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Purchases of investment securities. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Proceeds from sales of investment securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Proceeds from redemption of investment securities . . . . . . . . . . . . . . . . . . . . . . . .
Reimbursement of long-term deposits on contracts . . . . . . . . . . . . . . . . . . . . . . . .
(Increase) decrease in short-term loans receivable . . . . . . . . . . . . . . . . . . . . . . . . . .
Increase in long-term loans receivable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Collection of long-term loans receivable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Payments upon incorporation of unconsolidated subsidiaries . . . . . . . . . . . . . .
Purchases of shares of common stock of subsidiaries. . . . . . . . . . . . . . . . . . . . . .
Proceeds from sales of securities of affiliates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net cash used in investing activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(22,200)
133(10,411)
4
—
(426)
300
—
152
(50)
(363)
—
(287)
(33,148)(12,820)
2,549(13,941)
3
200
(446)
(302)
(150)
—
(100)
—
700
(456)
(24,765)(226,000)
1,354(105,986)
41—(4,337)
3,054
—
1,547
(509)
(3,695)—(2,922)(337,453)

Financing activities (Note 8):
Decrease in short-term bank loans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Increase in long-term bank loans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Decrease in long-term bank loans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Bond payments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Dividend payments. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Acquisition of treasury stock . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Sales of treasury stock. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Repayments of finance lease obligations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other.........................................................................................................
Net cash provided by (used in) financing activities. . . . . . . . . . . . . . . .

(20)
20,000(2,105)(30)(5,011)(47)
4(2,172)(2)
10,614(393)
4,000(7,061)(30)(5,012)(77)——
2(8,571)(204)
203,604(21,429)(305)(51,013)(478)
41(22,111)(20)
108,053

Effect of exchange rate changes on cash and cash equivalents . . . . . . . . .
Increase in cash and cash equivalents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Cash and cash equivalents at beginning of the year . . . . . . . . . . . . . . . . . . . . . .
Increase in cash and cash equivalents from newly consolidated subsidiary . . .
Cash and cash equivalents at end of the year (Note 12) . . . . . . . . . . . . . . . . . . .

(114)
3,672
36,13399¥39,904(43)
8,660
27,472—¥36,133(1,161)
37,382367,841
1,008$406,230

Operating activities:
Income before income taxes and minority interests . . . . . . . . . . . . . . . . . . . . . . . . .
Depreciation and amortization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Loss on impairment of goodwill . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Interest and dividend income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Interest expense. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Equity in loss (income) of unconsolidated subsidiaries and affiliates . . . . . . . .
Loss on write-downs of investment securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Amortization of net retirement benefit obligation at transition . . . . . . . . . . . . . . .
Loss on disposal of tangible and intangible assets . . . . . . . . . . . . . . . . . . . . . . . . .
Gain and loss on sales of property, plant and equipment . . . . . . . . . . . . . . . . . . .
Gain on sales of securities of affiliates. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Changes in operating assets and liabilities:
Trade assets. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Trade liabilities. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Inventories (Note 4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Subtotal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Interest and dividends received . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Interest paid . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Income taxes paid . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net cash provided by operating activities . . . . . . . . . . . . . . . . . . . . . . . . .

28

U.S. Dollars (Note 3)

The accompanying notes are an integral part of these statements.

THE JAPAN STEEL WORKS, LTD. AND CONSOLIDATED SUBSIDIARIES

Notes to Consolidated Financial Statements
Fiscal year 2008 (Year ended March 31, 2009)

1. Basis of Presentation
The Japan Steel Works, Ltd. (the “Company”) and its domestic subsidiaries maintain their books of account in conformity with the financial accounting standards of Japan, and its overseas subsidiaries
maintain their books of account in conformity with those of theirrespective countries of domicile.
Effective April 1, 2008, the Company adopted the “Practical
Solution on Unification of Accounting Policies Applied to Foreign
Subsidiaries for Consolidated Financial Statements” (PITF No. 18). In
accordance with PITF No. 18, the accompanying consolidated financial statements for the year ended March 31, 2009 have been prepared by using, the accounts of foreign consolidated subsidiaries
prepared in accordance with either International Financial ReportingStandards (IFRS) or accounting principles generally accepted in the
United States as adjusted for certain items including those for goodwill, actuarial differences and capitalized development costs. Until
March 31, 2008, the accompanying consolidated financial statements
had been prepared by using the accounts of foreign consolidated
subsidiaries prepared in accordance with accounting principles generally accepted in their countries of domicile.
The accompanying consolidated financial statements are prepared in accordance with accounting principles generally accepted inJapan, which are different in certain respects as to the applicationand disclosure requirements of International Financial ReportingStandards, and have been compiled from the consolidated financial
statements prepared by the Company as required by the Financial
Instruments and Exchange Law of Japan.
As permitted by the Financial Instruments and Exchange Law,amounts of less than one million yen have been omitted. As a result,
the totals shown in the accompanying consolidated financial statements (both in yen and in U.S. dollars) do not necessarily agree withthe sums of the individual amounts.
Certain amounts in the prior year’s consolidated financial statements have been reclassified to conform to the current year’s
presentation.
2. Summary of Significant Accounting Policies(a) Principles of consolidation and accounting for investments
in unconsolidated subsidiaries and affiliates
Companies over which the Company exercises significant influence interms of their operating and financial policies have been included in
the accompanying consolidated financial statements on an equity
basis. All significant intercompany balances and transactions havebeen eliminated in consolidation.
As of March 31, 2009, the numbers of consolidated subsidiaries
and subsidiaries and affiliates accounted for by the equity method
were 36 and 1 (35 and 1 in 2008), respectively.
Certain overseas subsidiaries are consolidated on the basis of fiscal periods ended December 31, and one domestic subsidiary’s year
end is January 31, both of which differ from that of the Company.
However, the necessary adjustments have been made if the effect ofthe difference is material.
Investments in subsidiaries and affiliates which are neither consolidated nor accounted for by the equity method are carried at cost or
less. Where there has been a permanent decline in the value of suchinvestments, the Company has written them down.
Differences, between the cost and the underlying net equity at fairvalue of investments in consolidated subsidiaries and in companies
accounted for by the equity method have been amortized by thestraight-line-method over 5 years. However, immaterial goodwill andnegative goodwill are charged or credited to income in the year ofacquisition and are included in selling, general and administrative
expenses.
(b) Foreign currency translation
The balance sheet accounts of the overseas consolidated subsidiaries are translated into yen at the rates of exchange in effect atthe balance sheet date, except for the components of net assets
excluding minority interests which are translated at their historicalexchange rates. Revenue and expense accounts are translated at the
average rates of exchange in effect during the year.
Revenue and expense items arising from transactions denominated in foreign currencies are generally translated into yen at therates of exchange in effect at the respective transaction dates.
All monetary assets and liabilities denominated in foreign currencies are translated into yen at the rates of exchange in effect at thebalance sheet date and gain or loss on each translation is credited or
charged to income.
(c) Cash equivalents
All highly liquid investments with a maturity of three months or lesswhen purchased are considered to be cash equivalents.
(d) Inventories
Real estate for sale, finished products and work in process are statedat cost determined principally by the specific identification method.
Raw materials are stated at cost determined principally by the moving
average method.
On July 5, 2006 the Accounting Standards Board of Japan issued
Statement No. 9, “Accounting Standard for Measurement of
Inventories.” The standard requires that inventories held for sale in theordinary course of business be measured at the lower of cost or net
selling value, which is defined as the selling price less additional estimated manufacturing costs and estimated direct selling expenses.
The replacement cost may be used in place of the net selling value if
appropriate. The standard also requires that inventories held for trading purposes be measured at the market price.
Effective the year ended March 31, 2009, the Company and its
domestic consolidated subsidiaries adopted this accounting standard. As a result, operating income decreased by ¥919 million($9,356 thousand) and income before income taxes and minority
interests decreased by ¥1,038 million ($10,567 thousand) comparedwith the corresponding amounts which would have been recorded
under the previous method.
(e) Short-term investments and investment securities
Trading securities are carried at fair value and held-to-maturity securities are carried at amortized cost. Marketable securities classified asother securities are carried at fair value with any changes in unrealized
holding gain or loss, net of the applicable income taxes, included
directly in net assets. Non-marketable securities classified as othersecurities are carried at cost. Cost of securities sold is determined by
the moving average method.
(f) Allowance for doubtful accounts
The allowance for doubtful accounts is provided for possible bad
debts at an amount estimated based on the historical experience withbad debts on normal receivables plus an additional allowance for specific uncollectible amounts determined by reference to the collectabilityof individual doubtful accounts.

29

(g) Provision for warranties for completed construction
The Company provides a provision for warranties for completed construction by estimating losses on future possible claims.
(h) Provision for losses on orders received
The Company provides a provision for losses on orders received, butwhich had not been delivered at the fiscal year end, in the estimatedamount of total losses anticipated in the following fiscal year andthereafter for losses deemed certain to be incurred and whoseamounts can be reasonably estimated.
With respect to orders that had not been delivered as of March
31, 2008, a provision for losses on orders received was made at theestimated amount of total losses anticipated in the following fiscal
year and thereafter for losses which are deemed certain to be
incurred and whose amounts can be reasonably estimated. As aresult, cost of sales increased by ¥647 million and operating income
and income before income taxes and minority interests decreased by
the same amount for the year ended March 31, 2008.
(i) Property, plant and equipment and depreciation
Property, plant and equipment is stated on the basis of cost.
Depreciation of property, plant and equipment is determined by the
declining-balance method over the estimated useful lives of therespective assets, except that the straight-line method is applied tobuildings. With regard to the depreciation method of leased assets,
the straight-line method is applied where the lease period is taken as
the estimated useful life and the residual value is zero.
Significant renewals and additions are capitalized at cost.
Maintenance and repairs are charged to income as incurred.
(Changes in method of accounting for depreciation)(1) Buildings
Effective the year ended March 31, 2008, the Company and its
domestic subsidiaries have changed their method of accounting
for depreciation of buildings acquired on or after April 1, 2007 inaccordance with the revised Corporation Tax Law. The effect of
this change on operating income and income before income taxes
and minority interests was not material for the year ended March
31, 2008.
(2) Structures, machinery and equipment
Until the year ended March 31, 2007, the straight-line method wasapplied to the depreciation of structures, and machinery andequipment excluding certain machinery. Effective the year ended
March 31, 2008, the method of accounting for depreciation ofthese assets has been changed to the declining-balance method.
This change resulted from the fact that, in order to address thesubstantial increase in the number of orders for high-quality andlarge-sized products, influenced by changes in the internationalenergy structure and exposed global environmental problems,
which in turn increased the burden on production facilities and had
increased the cost of repairs, the Company and its subsidiaries
started to transform their production system effective the year
ended March 31, 2008 as set forth in the revised medium-term
management plan, “J-2008(R),” released on May 14, 2007.
As a result of the change in method of accounting for depreciation, depreciation expense increased by ¥3,294 million, operating
income decreased by ¥2,401 million and income before income
taxes and minority interests deceased by ¥2,402 million comparedwith the corresponding amounts which would have been recorded
under the previous method.

30(Additional information)
Regarding property, plant and equipment acquired on or before
March 31, 2007, effective the year ended March 31, 2008, theCompany and its domestic consolidated subsidiaries have adopted amethod of accounting for depreciation that conforms to the revised
Corporation Tax Law. Specifically, when the book value of an asset
reaches 5% of its acquisition cost based on the method of accounting for depreciation applied prior to the revision, the difference
between the amount equivalent to 5% of acquisition cost and memorandum value of the asset is depreciated by the straight-line method
over a period of five years from the year following the year in which
the book value of the asset reaches 5% of its acquisition cost, andsuch depreciation is reported as depreciation expense. As a result,operating income decreased by ¥535 million and income before
income taxes and minority interests deceased by ¥536 million fromthe corresponding amounts which would have been recorded under
the previous method.
Regarding machinery, effective the year ended March 31, 2009,
the Company and its domestic consolidated subsidiaries havechanged certain estimated useful lives in accordance with the revised
Corporation Tax Law.
The effect of this change on operating income and income before
income taxes and minority interests was not material for the year
ended March 31, 2009.
(j) Bond issuance expenses
Bond issuance expenses are charged to income as incurred.
(k) Leases
Until the year ended March 31, 2008, non-cancelable lease transactions were primarily accounted for as operating lease transactions(whether such leases were classified as operating or finance leases),
except that lease agreements which stipulated the transfer of ownership of the leased assets to the lessee were accounted for as financeleases. Effective the year ended March 31, 2009 the Company andits domestic subsidiaries adopted the “Accounting Standard forLease Transactions” (ASBJ Statement No. 13 (First Committee of theBusiness Accounting Council June 17, 1993, revised on March 30,2007)) and the “Guidance on Accounting Standard for Lease
Transactions” (ASBJ Guidance No. 16 (Accounting System Committeeof the Japanese Institute of Certified Public Accountants January 18,
1994, revised on March 30, 2007)), and those lease transactions are
now treated as normal sales and purchase transactions.
The effect of this change on operating income and income before
income taxes and minority interests was not material for the year
ended March 31, 2009.
(l) Retirement benefits
An employee whose employment is terminated is entitled, in mostcases, to a lump-sum severance payment determined by reference tothe current basic rate of pay, length of service and the conditions
under which the termination occurs.
Accrued retirement benefits for employees at March 31, 2009
and 2008 have been provided primarily at an amount calculated
based on the retirement benefit obligation and the fair value of thepension plan assets at the balance sheet dates, as adjusted for theunrecognized net retirement benefit obligation at transition, prior service cost and unrecognized actuarial gain or loss. The retirement benefit obligation is attributed to each period by the straight-line method
over the estimated years of service of the eligible employees. The net
retirement benefit obligation at transition is being amortized principallyover a period of 10 years by the straight-line method. In addition,accrued retirement benefits for directors and corporate auditors areprovided at an amount to be required at the year-end according tointernal regulations.
Prior service cost is being amortized as incurred by the straightline method over a period of 10 years, which is shorter than the average remaining years of service of the eligible employees.
Actuarial gain or loss is amortized in the year following the year inwhich the gain or loss is recognized by the straight-line method overa period of 10 years, which is shorter than the average remaining
years of service of the employees participating in the plans.

4. Inventories
Inventories at March 31, 2009 and 2008 consisted of the following:(m) Income taxes
Deferred tax assets and liabilities have been recognized in the consolidated balance sheets at March 31, 2009 and 2008 with respect to thedifferences between financial reporting and the tax bases of the assets
and liabilities, and are measured using the enacted tax rates and laws
which will be in effect when the differences are expected to reverse.

5. Depreciation
Depreciation expense for property, plant and equipment for the years
ended March 31, 2009 and 2008 consisted of the following:

Millions of Yen
2009
2008

Real estate for sale ...................
Finished products .....................
Work in process ........................
Raw materials and supplies .......
Total ...................................

¥

43 ¥
43
1,577
1,602
65,137 60,305
5,829
4,864
¥72,586 ¥66,815

Millions of Yen
2009
2008

Depreciation expense ............... ¥11,460(n) Research and development expenses
Research and development expenses are charged to income whenincurred.
(o) Revenue recognition
Revenues are generally recognized on sales of products at the time of
shipment or on a completed-contract basis, except for those related
to large-scale contracts with long-term construction periods of 2
years or more and contracted amounts of ¥3 billion or more which
are recognized by the percentage-of-completion method.
(p) Derivatives
Derivatives positions are stated at fair value. Gain or loss on derivatives designated as hedging instruments is deferred until the loss orgain on the underlying hedged items is recognized. Foreign currency
receivables and payables are translated at the applicable forward foreign exchange rates if certain conditions are met. In addition, therelated interest differential paid or received under interest-rate swaps
utilized as hedging instruments is recognized over the terms of theswap agreements as an adjustment to the interest expense of theunderlying hedged items if certain conditions are met.
(q) Application of the “Practical Solution on Unification of
Accounting Policies Applied to Foreign Subsidiaries for
Consolidated Financial Statements
On May 17, 2006, the Accounting Standards Board of Japan issued
Practical Issues Task Force No. 18, “Practical Solution on Unificationof Accounting Policies Applied to Foreign Subsidiaries for
Consolidated Financial Statements.” Effective the year ended March
31, 2009, the Company and its consolidated subsidiaries adopted
this accounting standard, making the necessary adjustments.
The effect of this change on operating income and income before
income taxes and minority interests was not material for the year
ended March 31, 2009.

¥9,249Thousands of
U.S. Dollars
2009

$

438
16,054
663,107
59,340$738,939

Thousands of
U.S. Dollars
2009$116,665

6. Advanced Depreciation
Accumulated advanced depreciation related to government grants
received has been deducted directly from the acquisition costs of certain tangible fixed assets (plant, machinery and equipment). Suchdepreciation expense for the years ended March 31,2009 and 2008is summarized as follows:
Millions of Yen
2009
2008

Advanced depreciation expense ...

¥308

¥308

Thousands of
U.S. Dollars
2009$3,135

7. Contingent Liabilities
Millions of Yen
2009
2008

As endorsers of trade notes receivable:
Endorsed with other ...............
As guarantors of loans:
Muroran Environmental Plant
Service Co., Ltd. ..................
Medical Corporation Bokoi .....
Employees and other..............
Total ...................................

¥

81

616
2,000
781
¥3,480

¥

72

669
1,895
943
¥3,580Thousands of
U.S. Dollars
2009

$

825

6,271
20,3607,951$35,427

Medical Corporation Bokoi had a temporary net asset deficiency at
March 31, 2009. It is reorganizing its businesses based on its
medium-term management plan and its financial condition is
expected to improve after the next fiscal year. The Company wasoffered mortgage collateral in return for its guarantee of the loan to
Medical Corporation Bokoi.

3. U.S. Dollar Amounts
The translation of yen amounts into U.S. dollars is included solely
for convenience, as a matter of arithmetic computation only, at¥98.23 = U.S.$1.00, the rate of exchange prevailing on March 31,
2009. This translation should not be construed as a representationthat yen have been, could have been, or could in the future be, converted into U.S. dollars at the above or any other rate.
31

8. Short-Term Bank Loans and Long-Term Debt
All short-term bank loans, with interest at annual rates ranging from
0.84% to 1.895% at March 31, 2009 and 1.10% to 1.875% at March
31, 2008, were unsecured.
Long-term debt at March 31, 2009 and 2008 was as follows:
Millions of Yen
2009
2008

Loans from banks andinsurance companies withinterest at annual rates ranging
from 1.4% to 2.15% ................
Less those maturing within one year.....
Lease obligations..........................
Less those maturing within one year ....
0.72% straight bonds, due 2009 ....
Less those maturing within one year ....
0.92% straight bonds, due 2010.....
Long-term indebtedness reflectedin the consolidated balance sheets ...

Thousands of
U.S. Dollars
2009¥30,239 ¥12,344(2,322) (2,105)
6,951—(2,125)
—
—
30
—
(30)
10,00010,000$307,839(23,638)
70,762(21,633)——
101,802¥42,742 ¥20,239$435,122

The aggregate annual maturities of long-term debt and lease obligations subsequent to March 31, 2009 are summarized below:

Year ending March 31,

Thousands ofMillions of Yen
U.S. Dollars
Long-term Lease
Long-term Leasedebt obligations
debt obligations

2010 ..................................... ¥ 2,322 ¥2,125 $ 23,638 $21,633
2011 ..................................... 10,647 1,790 108,388 18,223
2012 .....................................
570 1,436
5,803 14,619
2013 ..................................... 13,540 1,033 137,840 10,516
2014 ..................................... 10,240
319 104,245 3,247
2015 and thereafter...............
2,920
244
29,726 2,484
The assets pledged as collateral for long-term debt of ¥759 million($7,727 thousand) at March 31, 2009 and ¥2,124 million at March
31, 2008 were as follows:

Property, plant and equipment,
at net book value ....................

32

Millions of Yen
2009
2008

Thousands of
U.S. Dollars
2009¥9,723 ¥10,777$98,982

9. Other Income (Expenses) — Other, Net
The details of “Other, net” in “Other income (expenses)” for the years
ended March 31, 2009 and 2008 were as follows:

Loss on sales or disposal ofproperty, plant and equipment ....
Gain on sales of property,
plant and equipment ...............
Gain on sales of raw
materials and supplies .............
Amortization of net retirement
benefit obligation at transition ...
Provision for warranties forcompleted construction...........
Gain on sales of securities ofaffiliates ...................................
Loss on write-downs ofinvestment securities ...............
Impairment loss .........................
Expenses for relocation of
the head office.........................
Other, net .................................
Total ...................................

Millions of Yen
2009
2008

Thousands of
U.S. Dollars
2009¥(2,112) ¥(1,293)$(21,501)

14

1,941

143

225

341

2,291

(693)

(693)

(7,055)

(93)

(665)

(947)

—

118

—

(6,067)
(2)

(258)
(739)

(61,763)
(20)

—
(152)
(529)
(514)
¥(9,259) ¥(1,916)—(5,385)$(94,258)

10. Loss on Impairment of Fixed Assets
Loss on impairment of fixed assets recognized by the Company andits consolidated subsidiaries for the year ended March 31, 2008 was
as follows:
Location

Yokohama-shi, Kanagawa prefecture(a subsidiary engaged in the machinery
products business)

Use

Classification—

Goodwill

The Company and its consolidated subsidiaries group assets into thesmallest possible independent cash flow generating units on the basisof managerial accounting.
The above goodwill was written down to its recoverable value,
resulting in an impairment loss of ¥739 million, because the related
subsidiary was unable to generate the amount of profit set forth in theinitial plan when the investment in the subsidiary had been determined by the Company.
The recoverable value was measured on the basis of a revised
business plan for the asset group.

11. Leases
The following pro forma amounts represent the acquisition cost,
accumulated depreciation/amortization and net book value of theleased property as of March 31, 2008, which would have beenreflected in the accompanying consolidated balance sheet if financelease accounting had been applied to finance leases accounted for as
operating leases:

12. Cash Flow Information(a) Cash and cash equivalents
Cash and cash equivalents in the accompanying consolidated statements of cash flows and cash on hand and in banks in the accompanying consolidated balance sheets at March 31, 2009 and 2008 arereconciled as follows:Year ended March 31, 2008
Millions of Yen
Accumulated
Acquisition depreciation/ Net bookcost
amortization
value

Buildings ...........................
Machinery and vehicles .........
Equipment .........................
Software ...........................
Total ............................

¥

8
4,836
2,721
306
¥7,872

¥

2
2,137
1,381
188
¥3,710

¥

5
2,699
1,340
117
¥4,162

Lease payments relating to finance leases accounted for as operatingleases amounted to ¥1,269 million, which was equal to the depreciation/amortization of the leased assets computed by the straight-line
method over the respective lease terms, for the year ended March
31, 2008.
Future minimum lease payments subsequent to March 31, 2008
under non-cancelable operating leases and finance leases accounted
for as operating leases are summarized as follows:Year ending March 31,

2009........................................
2010 and thereafter .................
Total ...................................

Millions of Yen
Finance leases
Operating leases¥1,297
2,865¥4,162¥ 517
791¥1,308Year ended March 31, 2009

Future minimum lease payments subsequent to March 31, 2009 under
non-cancelable operating leases are summarized as follows:Year ending March 31,

2010........................................
2011 and thereafter .................
Total ...................................

Millions of Yen
Operating leases

Thousands of
U.S. Dollars
Operating leases

¥ 765
1,485
¥2,251$ 7,788
15,118$22,916

Cash on hand and in banks
in the consolidatedbalance sheets ....................
Investment with a maturity of
three months or less from thedate of acquisition .................
Time deposits with maturities ofover three months .................
Cash and cash equivalents inthe consolidated statements ofcash flow ...........................

Millions of Yen
2009
2008

Thousands of
U.S. Dollars
2009¥39,957 ¥36,552$406,770

137

—

1,395

(190)

(418)

(1,934)¥39,904 ¥36,133$406,230(b) Non-cash items
Regarding finance lease transactions, assets and liabilities that havebeen accounted for by the Company and its domestic consolidated
subsidiaries amounted to ¥6,933 million ($70,579 thousand) and¥6,951 million ($70,762 thousand) for the year ended March 31,
2009.
13. Income Taxes
Income taxes applicable to the Company and its domestic consolidated subsidiaries comprised corporation tax, enterprise taxes andinhabitants’ taxes which, in the aggregate, resulted in a statutory tax
rate of approximately 40.5% for the years ended March 31, 2009 and2008. Income taxes of the overseas consolidated subsidiaries are
based generally on the tax rates applicable in their respective countries
of incorporation.
The Company has omitted reconciliation between the statutory tax rate
and the effective tax rate for the year ended March 31, 2009 because thedifference between these rates was less than 5%.
The effective tax rate reflected in the accompanying consolidated
statement of income for the year ended March 31, 2008 differs fromthe statutory tax rate for reasons summarized in the table below:
2008

Statutory tax rate .........................................................
Effect of:
Increase in valuation allowance .................................
Income taxes paid for prior years ..............................
Other ........................................................................
Effective tax rates ........................................................

40.5%
3.0
—
(1.0)
42.5%

33

The significant components of the Company’s deferred tax assets
and liabilities at March 31, 2009 and 2008 were as follows:
Millions of Yen
2009
2008

Deferred tax assets:
Accrued enterprise taxes........
Accrued bonuses ...................
Unrealized gain on
intercompany transactions ...
Accrued retirement benefits
for employees ......................
Accrued retirement benefits for
directors and corporate auditors ...
Loss on revaluation of
inventory items...........................
Loss on revaluation ofmonetary goods .......................
Depreciation ...........................
Provision for warranties forcompleted construction........
Provision for losses onorders received ....................
PCB disposal expenses ..........
Tax loss carryforwards............
Loss on deferred hedges ........
Unrealized loss on
investment securities ............
Other......................................
Gross deferred tax assets ..........
Valuation allowance................
Total deferred tax assets............
Deferred tax liabilities:
Reserve for advanced
depreciation.........................
Reserve for special account foradvanced depreciation .........
Reserve for special depreciation...
Prepaid pension cost ..............
Unrealized gain on
investment securities ............
Gain on deferred hedges.........
Reversal of allowance for
doubtful accounts ................
Other......................................
Total deferred tax liabilities..........
Net deferred tax assets..............

¥

326 ¥ 766
1,430
1,493

Thousands of
U.S. Dollars
2009$

1. Retirement benefit obligation... ¥(27,596) ¥(27,918)
2. Plan assets at fair value..........
13,081 17,201
3. Unfunded retirement benefit
obligation (1+2).................... (14,515) (10,717)
4. Unrecognized net retirement
benefit obligation at transition...
765
1,530
8,961
4,887
5. Unrecognized actuarial loss..........
6. Prior service cost ...................
819
974
7. Subtotal (3+4+5+6)................
(3,968) (3,325)
8. Accrued retirement benefits ... ¥ (6,303) ¥ (5,484)
9. Prepaid pension cost ............. ¥ 2,334 ¥ 2,159

Thousands of
U.S. Dollars
2009$(280,933)
133,167

639

584

6,505

3,934

3,583

40,049

179

146

1,822

423

75

4,306

1,004
1,213

1,140
1,176

10,221
12,349

369

320

3,756

149
164
305
418

262
188
176
406

1,517
1,670
3,105
4,255

2,322
469
13,350(3,197)
10,153811
297
11,431(1,443)
9,987

23,638
4,775
135,906(32,546)
103,359

1. Service cost ...........................
2. Interest cost...........................
3. Expected return on plan assets...
4. Amortization of net retirement
benefit obligation at transition ...
5. Amortization of actuarial loss...
6. Amortization of prior service cost...
7. Retirement benefit expenses...

2,526

1,995

25,715The assumptions used in accounting for the above plans were as
follows:

—
161
945

634
—
874

—
1,639
9,620

Discount rate .........................................
Expected rate of return on plan assets ...

757
160

2,124
233

7,706
1,629

61
49
30
14
4,643
5,926
¥ 5,510 ¥ 4,058

621
305
47,267$ 56,093

Millions of Yen
2009
2008

34

Millions of Yen
2009
2008

3,319
14,558

14. Research and Development Expenses
Research and development expenses included in manufacturingcosts and selling, general and administrative expenses for the years
ended March 31, 2009 and 2008 were as follows:

Research and development
expenses.......................................

15. Employees’ Retirement Benefit Plans
The following table sets forth the funded and accrued status of theplans and the amounts recognized in the accompanying consolidatedbalance sheets at March 31, 2009 and 2008 for the Company’s andthe consolidated subsidiaries’ defined benefit pension plans:¥4,178¥3,402Thousands of
U.S. Dollars
2009$42,533(147,765)
7,788
91,225
8,338(40,395)$ (64,166)$ 23,761

The components of retirement benefit expenses for the years ended
March 31, 2009 and 2008 are outlined as follows:
Millions of Yen
2009
2008

Thousands of
U.S. Dollars
2009¥1,785434(329)¥1,756451(410)$18,172
4,418(3,349)

765
974
155
¥3,784772
191
155¥2,916

7,788
9,916
1,578
$38,522

2009

2008

2.00%
2.00%

2.00%
2.00%

16. Securities
Securities are judged to be “substantially declined” when their market
values have declined 30% or more. When their market values havedeclined 50% or more, the impairment losses are recorded on thosesecurities. When their market values have declined between 30% and50%, the impairment losses are recorded on those securities unlesssuch values are considered to be recoverable individually.

17. Liquidation of Notes and Accounts Receivable
Accounts receivable deducted from trade receivables for liquidation atMarch 31, 2009 and 2008 are summarized as follows:
Millions of Yen
2009
2008

Accounts receivable ..................

¥6,011¥6,776

Thousands of
U.S. Dollars
2009$61,193

March 31, 2009(a) Other investment securities with determinable fair value were as
follows:
Acquisition
cost

Carrying value exceeds
acquisition cost:
Stocks ..................................
Carrying value does notexceed acquisition cost:
Stocks ..................................
Total ............................

Millions of Yen
Carrying
Unrealized
value
gain (loss)¥ 5,045¥ 1,870

26,378¥29,553

14,573¥19,618(11,805)¥ (9,934)$ 32,312$ 51,359

268,533
148,356$300,855 $199,715(120,177)$(101,130)

Millions of Yen

Thousands of
U.S. Dollars¥1,831$18,640

End ofMarch 31,
2008(a) Other investment securities with determinable fair value were as
follows:
Acquisition
cost

Millions of Yen
Carrying
Unrealized
value
gain (loss)¥ 6,432¥11,679¥5,246

13,174¥19,606

10,930¥22,609(2,243)¥3,003(b) Other investment securities without determinable fair value were as
follows:
Millions of Yen

Other unlisted securities .............................................

Increaseduringthe year

Issued stock:—
Common shares ....... 371,463,036
Treasury stock:
Common shares .......
234,126 30,687

Decreaseduringthe yearEnd ofMarch 31,2009—

371,463,036

3,473

261,340

Notes 1: The increase in the number of common shares held in treasury of 30,687
was due to the acquisition of fractional shares of less than one unit.
2: The decrease in the number of common shares held in treasury of 3,473
was due to sales of shares to shareholders with fractional shares of lessthan one unit.

(b) Dividends(1) Dividends paid to shareholders(i)Approved:
Ordinary general meeting of shareholders held on June 27, 2008
Type of shares:
Common stock
Total amount ofdividends:¥2,784 million ($28,342 thousand)
Dividends per share:¥7.5 ($0.076)
Record date:
March 31, 2008
Effective date:June 30, 2008(ii)Approved:

March 31, 2008

Carrying value exceeds
acquisition cost:
Stocks ..................................
Carrying value does notexceed acquisition cost:
Stocks ..................................
Total ............................

(a) Total number and periodic changes in number of shares in issue
and treasury stock by type were as follows:$ 19,037(b) Other investment securities without determinable fair value were as
follows:

Other unlisted securities ..........

Year ended March 31, 2009

Number of shares¥ 3,174

Thousands of U.S. Dollars
Acquisition
Carrying
Unrealized
cost
value
gain (loss)

Carrying value exceeds
acquisition cost:
Stocks ..................................
Carrying value does notexceed acquisition cost:
Stocks ..................................
Total ............................

18. Supplementary Information for Consolidated Statements of
Changes in Net Assets¥1,637

Meeting of Board of Directors held on
November 4, 2008
Common stock

Type of shares:
Total amount ofdividends:¥2,227 million ($22,671 thousand)
Dividends per share:¥6 ($0.061)
Record date:
September 30, 2008
Effective date:
December 8, 2008
(2) Dividends whose record date fell in the year ended March 31,
2009, but whose effective date is after the year then ended
Approved:
Ordinary general meeting of shareholders held on June 29, 2009
Type of shares:
Common stock
Total amount ofdividends:¥2,227 million ($22,671 thousand)
Dividends per share:¥6 ($0.061)
Record date:
March 31, 2009
Effective date:June 30, 2009
Source ofdividends:
Retained earnings

35

Year ended March 31, 2008(a) Total number and periodic changes in number of shares in issue
and treasury stock by type were as follows:
Number of shares
End ofMarch 31,
2007

Increaseduringthe year

Issued stock:—
Common shares ....... 371,463,036
Treasury stock:
190,337 43,789
Common shares .......

Decreaseduringthe yearEnd ofMarch 31,2008—

371,463,036—

234,126

Note: The increase in the number of common shares held in treasury of 43,789
was due to the acquisition of fractional shares of less than one unit.

(b) Dividends(1) Dividends paid to shareholders(i)Approved:
Ordinary general meeting of shareholders held on June 28, 2007
Type of shares:
Common stock
Total amount ofdividends:¥3,341 million
Dividends per share:¥9
Record date:
March 31, 2007
Effective date:June 29, 2007(ii)Approved:

Meeting of Board of Directors held on
September 19, 2007
Common stock

Type of shares:
Total amount ofdividends:¥1,670 million
Dividends per share:¥4.5
Record date:
September 30, 2007
Effective date:
December 10, 2007
(2) Dividends whose record date fell in the year ended March 31,
2008, but whose effective date is in the following fiscal year
Approved:
Ordinary general meeting of shareholders held on June 27, 2008
Type of shares:
Common stock
Total amount ofdividends:¥2,784 million
Dividends per share:¥7.5
Record date:
March 31, 2008
Effective date:June 30, 2008
Source ofdividends:
Retained earnings

19. Shareholders’ Equity
The Corporation Law of Japan (the “Law”) provides that an amountequal to 10% of the amount to be disbursed as distributions of capitalsurplus (other than the capital reserve) and retained earnings (otherthan the legal reserve) be transferred to the capital reserve and thelegal reserve, respectively, until the sum of the capital reserve and thelegal reserve equals 25% of the capital stock account. Such distributions can be made at any time by resolution of the shareholders, orby the Board of Directors if certain conditions are met.
20. Amounts per Share
Net income per share is calculated based on the net income available
for distribution to shareholders of common stock and the weightedaverage number of shares of common stock outstanding during eachyear. Net assets per share are calculated based on the number ofshares of common stock outstanding at each year end. Amounts per
36

share at March 31, 2009 and 2008 and for the years then ended
were as follows:
Yen
Year ended March 31,
2009
2008

Net income ............................... ¥ 43.19
Net assets ................................ 242.13¥ 47.10228.93

U.S. Dollars
Year ended
March 31,
2009

$0.44
2.46

21. Segment Information
The Company and its consolidated subsidiaries operate in the following three business segments:• Operations in the steel products segment include steel castings
and forgings, steel plates, pressure vessels and steel structures.
• Operations in the machinery products segment include injection
molding machines, film and sheet machinery, blow molding
machines, magnesium injection molding machines, waste treatment
equipment and manufacturing equipment for electronic products.
• Operations in the regional development segment include theFuchu Intelligent Park Project and the leasing of real estate.
(a) Business segment information(Change in method of accounting for depreciation)
As described in Note 2(i), effective the year ended March 31, 2008,
the Company and its domestic consolidated subsidiaries havechanged their method of accounting for depreciation of structures,and machinery and equipment from the straight-line method to thedeclining-balance method.
The effect of this change was to increase depreciation expense in the“Steel products” segment by ¥2,314 million, in the “Machinery products” segment by ¥960 million, in the “Regional development” segment by ¥9 million, and in “Eliminations and corporate” by ¥10 million.
Operating expenses increased in the “Steel products” segment by¥1,573 million, in the “Machinery products” segment by ¥809 million,in the “Regional development” segment by ¥9 million and in“Eliminations and corporate” by ¥9 million. Operating income
decreased by the same amounts as the corresponding increases inoperating expenses for the year ended March 31, 2008 comparedwith the corresponding amounts which would have been recorded
under the previous method.
(Depreciation expense)
As described in Note 2(i), regarding property, plant and equipment
acquired on or before March 31, 2007, effective the year ended
March 31, 2008, the Company and its domestic consolidated subsidiaries have adopted a method of accounting for depreciation that
conforms to the revised Corporation Tax Law. Specifically, when thebook value of an asset reaches 5% of its acquisition cost based on
the method of accounting for depreciation applied prior to the revision, the difference between the amount equivalent to 5% of acquisition cost and memorandum value of the asset is depreciated by thestraight-line method over a period of five years from the year following
the year in which the book value of the asset reaches 5% of its acquisition cost, and such depreciation is reported as depreciation
expense. As a result, depreciation expense increased in the “Steelproducts” segment by ¥365 million, in the “Machinery products” segment by ¥277 million, in the “Regional development” segment by ¥4
million and in “Eliminations and corporate” by ¥10 million. Operating
expenses increased in the “Steel products” segment by ¥278 million,in the “Machinery products” segment by ¥242 million, in the “Regional
development” segment by ¥4 million and in “Eliminations and corporate” by ¥10 million. Operating income decreased by the sameamounts as the corresponding increases in operating expenses forthe year ended March 31, 2008 compared with the corresponding
amounts which would have been recorded under the previous method.
(Provision for losses on orders received)
As described in Note 2(h), with respect to orders that have not yet
been delivered as of March 31, 2008, a provision for losses on orders
received was made at the estimated amount of total losses anticipated in the following fiscal year and thereafter for losses which are
deemed certain to be incurred and whose amounts can be reasonably estimated. As a result, operating expenses increased in the“Machinery products” segment by ¥647 million and operating income
decreased in that segment by the same amount for the year ended
March 31, 2008.

(Inventories)
As described in Note 2(d), effective the year ended March 31, 2009,
the Company and its domestic consolidated subsidiaries haveadopted “Accounting Standard for Measurement of Inventories.” As aresult, operating expenses increased in the “Steel products” segmentby ¥677 million ($6,892 thousand) and in the “Machinery products”
segment by ¥241 million ($2,453 thousand). Operating income
decreased by the same amounts as the corresponding increases inoperating expenses for the year ended March 31, 2009 comparedwith the corresponding amounts which would have been recorded
under the previous method.

Millions of Yen
Year ended March 31, 2009

Sales and operating income:Sales to third parties ...........................................................
Intra-group sales and transfers ............................................
Net sales .....................................................................
Operating expenses ............................................................
Operating income ................................................................
Total assets, depreciation expense, loss on impairment of
goodwill and capital expenditures:
Total assets ........................................................................
Depreciation expense .........................................................
Loss on impairment of goodwill ...........................................
Capital expenditures ...........................................................

Eliminations
and Corporate Consolidated

Steel
Products

Machinery
Products

Regional
Development

Total¥107,883
1,956
109,840
78,367¥ 31,473¥117,462
328
117,791
106,355¥ 11,435¥ 1,767
6
1,773
1,029
¥ 743

¥227,113
2,291
229,405
185,751¥ 43,653¥—(2,291)(2,291)
4,727¥ (7,019)¥227,113—
227,113
190,479¥ 36,633¥122,832
7,559
1
22,555¥ 94,727
3,755
—
3,135

¥13,016311—
43¥230,575
11,625
1
25,734¥66,333247
1
147¥296,909
11,873
2
25,882

Steel
Products

Machinery
Products

Thousands of U.S. Dollars
Year ended March 31, 2009

Sales and operating income:Sales to third parties ........................................................... $1,098,269 $1,195,785
Intra-group sales and transfers ............................................
19,912
3,339
Net sales ..................................................................... 1,118,192 1,199,135
Operating expenses ............................................................
797,791 1,082,714
Operating income ................................................................ $ 320,401 $ 116,410
Total assets, depreciation expense, loss on impairment of
goodwill and capital expenditures:
Total assets ........................................................................ $1,250,453 $ 964,339
Depreciation expense .........................................................
76,952
38,227
Loss on impairment of goodwill ...........................................
10—
Capital expenditures ...........................................................
229,614
31,915

Eliminations
and Corporate Consolidated

Regional
Development

Total$ 17,988
61
18,04910,475$ 7,564$2,312,053
23,323
2,335,386
1,890,980$ 444,396— $2,312,053(23,323)—(23,323) 2,312,053
48,122
1,939,112$ (71,455) $ 372,931$132,505
3,166
—
438

$2,347,297
118,34510
261,977$675,283
2,515
10
1,496

$

$3,022,590
120,86920
263,484

Millions of Yen
Year ended March 31, 2008

Sales and operating income:Sales to third parties ...........................................................
Intra-group sales and transfers ............................................
Net sales .....................................................................
Operating expenses ............................................................
Operating income ................................................................
Total assets, depreciation expense and capital expenditures:
Total assets ........................................................................
Depreciation expense .........................................................
Loss on impairment of goodwill ...........................................
Capital expenditures ...........................................................

Eliminations
and Corporate Consolidated

Steel
Products

Machinery
Products

Regional
Development

Total¥92,6132,235
94,84869,662¥25,185¥126,155308
126,464
113,200¥ 13,263¥ 2,082
66
2,149
1,460
¥ 689

¥220,851
2,610
223,462
184,323¥ 39,138¥—(2,610)(2,610)4,052¥ (6,662)¥220,851—
220,851
188,375¥ 32,475¥90,741
5,802
—
7,896

¥ 94,718
3,023
—
3,563

¥13,276334—
267¥198,737
9,160—
11,727¥63,716
151
739
367

¥262,453
9,311
739
12,09537

(b) Geographical segment information(Change in method of accounting for depreciation)
As described in Note 2(i), effective the year ended March 31, 2008,
the Company and its domestic consolidated subsidiaries havechanged their method of accounting for depreciation of structures,and machinery and equipment from the straight-line method to thedeclining-balance method.

tion cost and memorandum value of the asset is depreciated by thestraight-line method over a period of five years from the year following
the year in which the book value of the asset reaches 5% of its acquisition cost, and such depreciation is reported as depreciation
expense. As a result, operating expenses increased in the “Japan”
segment by ¥525 million and in “Eliminations and corporate” by ¥10
million and operating income decreased by the same amounts as thecorresponding increases in operating expenses for the year ended
March 31, 2008 compared with the corresponding amounts which
would have been recorded under the previous method.

The effect of this change was to increase operating expenses in the“Japan” segment by ¥2,392 million and in “Eliminations and corporate” by ¥9 million and to decrease operating income by the sameamounts as the corresponding increases in operating expenses forthe year ended March 31, 2008 compared with the corresponding
amounts which would have been recorded under the previous
method.
(Depreciation expense)
As described in Note 2(i), regarding property, plant and equipment
acquired on or before March 31, 2007, effective the year ended
March 31, 2008, the Company and its domestic consolidated subsidiaries have adopted a method of accounting for depreciation that
conforms to the revised Corporation Tax Law. Specifically, when thebook value of an asset reaches 5% of its acquisition cost based on
the method of accounting for depreciation applied prior to the revision, the difference between the amount equivalent to 5% of acquisi-(Provision for losses on orders received)
As described in Note 2(h), with respect to orders that had not beendelivered as of March 31, 2008, a provision for losses on orders
received was made at the estimated amount of total losses anticipated in the following fiscal year and thereafter for losses which are
deemed certain to be incurred and whose amounts can be reasonably estimated. As a result, operating expenses increased in the“Japan” segment by ¥647 million and operating income decreased inthat segment by the same amount for the year ended March 31,
2008.
The Company has omitted geographical segment information for theyear ended March 31, 2009 because net sales and total assets in the“Japan” segment were more than 90% of those of all segments.
Millions of Yen

Japan

North
America

Asia(except Japan)

Total¥213,344
6,000
219,344
180,891¥ 38,453¥197,180¥2,685
166
2,851
2,671
¥ 180
¥2,350¥4,821
1,020
5,841
5,648
¥ 193
¥3,895¥220,851
7,186
228,038
189,211¥ 38,826¥203,426

Year ended March 31, 2008

Sales and operating income:Sales to third parties ...........................................................
Inter-area sales and transfers ..............................................
Net sales .....................................................................
Operating expenses ............................................................
Operating income ...............................................................
Total assets .............................................................................

(c) Overseas sales information
Overseas sales, which include export sales of the Company and its
domestic consolidated subsidiaries and sales (other than exports toJapan) of its overseas consolidated subsidiaries, for the years ended
March 31, 2009 and 2008 are summarized as follows:
Millions of Yen
NorthAmerica
Other

Year ended March 31, 2009

East Asia

Overseas sales ..................
Total consolidated sales .....
Overseas sales as apercentage of total
consolidated sales (%)......

¥44,343 ¥12,443

Year ended March 31, 2009

19.5

5.5

Total

¥63,065 ¥119,853¥227,113

27.8

52.8

Thousands of U.S. Dollars
North
East Asia America
Other
Total

Overseas sales .................. $451,420 $126,672 $642,014 $1,220,126
Total consolidated sales .....
$2,312,053
Overseas sales as apercentage of total
19.5
5.5
27.8
52.8
consolidated sales (%)......

38

Eliminations
and Corporate Consolidated¥—(7,186)(7,186)(835)¥ (6,351)¥59,027¥220,851—
220,851
188,375¥ 32,475¥262,453

Total

Year ended March 31, 2008

East Asia

Millions of Yen
NorthAmerica
Other

Overseas sales ..................
Total consolidated sales .....
Overseas sales as apercentage of total
consolidated sales (%)......

¥49,737¥9,371

22.5

4.2¥44,828 ¥103,937¥220,851

20.3

47.1

Report of Independent Auditors

39

Corporate Directory
Stock Information

Corporate Data

Authorized Shares

Trade Name

1,000,000,000 shares

The Japan Steel Works, Ltd.

Issued and Outstanding Shares

Head Office371,463,036 shares
43,130Gate City Ohsaki-West Tower,
11-1, Osaki 1-chome,
Shinagawa-ku, Tokyo, Japan

Stock Listings

Foundation

Shareholders

Tokyo, Osaka, Nagoya, Fukuoka and Sapporo

November 1, 1907

Transfer Agent and Registrar

Paid-in Capital

The Chuo Mitsui Trust and Banking Co., Ltd.
33-1, Shiba 3-chome, Minato-ku,
Tokyo, Japan¥19,694 million

Employees

Major Shareholders (holding %)Auditor

The Master Trust Bank of Japan, Ltd.
(Trust Account) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6.67%
Japan Trustee Services Bank, Ltd.
(Trust Account) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6.28%
Japan Trustee Services Bank, Ltd.
(Trust Account 4G) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.84%
Sumitomo Mitsui Banking Corp. . . . . . . . . . . . . . . . . . . . . 3.38%
The Chuo Mitsui Trust & Banking Co., Ltd. . . . . . . . . . 2.96%
Mitsui Sumitomo Insurance Co., Ltd. . . . . . . . . . . . . . . . 2.38%
Mitsui Life Insurance Co., Ltd. . . . . . . . . . . . . . . . . . . . . . . . 2.27%
Hitachi, Ltd. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.36%
Mitsubishi Heavy Industries, Ltd. . . . . . . . . . . . . . . . . . . . . 1.36%
BNP-PARIBAS SECURITIES SERVICESPARIS/JASDEC FRENCH RESIDENTS . . . . . . . . . . . . 1.33%

Ernst & Young ShinNihon
Hibiya Kokusai Bldg.,
2-3, Uchisaiwai-cho 2-chome,
Chiyoda-ku, Tokyo, Japan

2,039 (Consolidated 4,752)(as of March 31, 2009)

JSW’s Stock Prices
Stock prices (¥)

Tokyo stock price index (TOPIX) (Points)

2,500

1,500

1,800

1,000

1,100

500

400

0
Trading volumes (Thousands of shares)

100,000

50,0000
2008/3

40

4

5

6

7

8

9

10

11

12

2009/1

2

3

Offices & Plants★ Düsseldorf Office
Beijing Office★ Teheran Office★
★

★ Head Office

Japan Steel Works America, Inc.
★ ★ New York Office (Head Office)Detroit Office

Shanghai Office

Singapore Office ★

Domestic
Head Office
Gate City Ohsaki-West Tower, 11-1, Osaki
1-chome, Shinagawa-ku, Tokyo 100-8456
Phone: +81-3-5745-2001
Facsimile: +81-3-5745-2025

Nagoya Office
Mitsui Sumitomo Kaijo Nagoya Shirakawa
Bldg., 9-15, Sakae 2-chome, Naka-ku,
Nagoya-shi, Aichi 460-0008
Phone: +81-52-222-1271
Facsimile: +81-52-222-1275

Osaka Office
Shinanobashi Mitsui Bldg., 11-7,
Utsubohonmachi 1-chome, Nishi-ku,
Osaka-shi, Osaka 550-0004
Phone: +81-6-6446-2480
Facsimile: +81-6-6446-2488

Hiroshima Office6-1, Funakoshi-Minami 1-chome, Aki-ku,
Hiroshima-shi, Hiroshima 736-8602
Phone: +81-82-822-0991
Facsimile: +81-82-822-0997

Fukuoka Office
Fukuoka Tenjin Center Bldg., 14-8,
Tenjin 2-chome, Chuo-ku, Fukuoka-shi,
Fukuoka 810-0001
Phone: +81-92-721-0561
Facsimile: +81-92-721-0560

Sapporo OfficeKitaichijo Mitsui Bldg., 2-9,
Nishi 5-chome, Kita-ichijo, Chuo-ku,
Sapporo-shi, Hokkaido 060-0001
Phone: +81-11-241-2271
Facsimile: +81-11-241-2275

Muroran Plant
4, Chatsumachi, Muroran-shi,
Hokkaido 051-8505
Phone: +81-143-22-0143
Facsimile: +81-143-24-3440
Hiroshima Plant
6-1, Funakoshi-Minami 1-chome, Aki-ku,
Hiroshima-shi, Hiroshima 736-8602
Phone: +81-82-822-3181
Facsimile: +81-82-285-2038
Yokohama Plant
2-1, Fukuura 2-chome, Kanazawa-ku,
Yokohama-shi, Kanagawa 236-0004
Phone: +81-45-781-1111
Facsimile: +81-45-787-7200

Overseas
Düsseldorf OfficeFriedrichstr. 19, 40217 Düsseldorf,
F.R.Germany
Phone: +49-211-3116660
Facsimile: +49-211-31166640
Teheran Office
Argentine SQ., ZAGROS St.,ZAGROS Bldg. No.25, Apt. No.21, 2F,
1516663111, Teheran, I.R. of IranPhone: +98-21-8774636
Facsimile: +98-21-8774636
Singapore Office
16 Raffles Quay, #27-01C,
Hong Leong Bldg., Singapore 048581,
Republic of Singapore
Phone: +65-62206227
Facsimile: +65-62240726
Shanghai Office
24-G, Huamin Empire Plaza,No.726, Yanan Rd. (W), Shanghai 200050,
People’s Republic of China
Phone: +86-21-5239-1438+86-21-5239-4335
Facsimile: +86-21-5239-3450

Beijing Office
Room No. 1007, Beijng Fortune Bldg.,
5 Dong Sanhuan Bei-lu,
Chaoyang District, Beijing,
People’s Republic of China
Phone: +86-10-6590-8966
Facsimile: +86-10-6590-8968
Japan Steel Works America, Inc.
New York Office (Head Office)1211 Ave. of the Americas, Suite 4302,
New York, NY 10036, U.S.A.
Phone: +1-212-490-2630
Facsimile: +1-212-490-2575
Detroit Office41135 Vincenti Court Novi, MI 48375 U.S.A.
Phone: +1-248-536-0288
Facsimile: +1-248-536-5615

JSW Plastics Machinery, Inc.
555 South Promenade Ave., Unit 104
Corona, California 92879, U.S.A.
Phone: +1-951-898-0934
Facsimile: +1-951-898-0944
JSW Plastics Machinery (S) Pte Ltd.
17 Gul Lane, Jurong Town,
Singapore 629413, Republic of Singapore
Phone: +65-68614511
Facsimile: +65-68623166
JSW Plastics Machinery (H.K.) Co., Ltd.
Room 907, Corporation Park, 11 On Lai
St., Shatin, N. T., Hong Kong
Phone: +852-2648-0720
Facsimile: +852-2686-8204
JSW Plastics Machinery (M) SDN. BHD.
D6-5-G Block D6, Pusat Perdagangan Dana, 1
Jalan PJU 1A/46, 47301 Petaling Jaya,
Selangor Malaysia
Phone: +60-3-7842-6076/6077
Facsimile: +60-3-7842-6078
JSW Plastics Machinery (T) Co., Ltd.
368/4 Soi Soonvijai 4,(Soi Japanese School Rama IX),
Bangkapi, Huaykwang, Bangkok 10310,
Kingdom of Thailand
Phone: +66-2-369-4007
Facsimile: +66-2-369-4035

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Printed in Japan DJ JI. JI. H. C