2009
Annual Report
For the year ended March 31, 2009

TONAMI HOLDINGS CO., LTD.

TONAMI HOLDINGS CO., LTD.

URL:http://www.tonamiholdings.co.jp/

Printed in Japan on recycled paperCapitalizing on expertise originally gained in the road haulage industry,
the Tonami Group has always been a trailblazer in the field of logistics.
We were among the first in the industry to introduce computer systems.
In recent years, we have taken systematized distribution services fully
utilizing IT to new heights. In particular, our third-party logistics (3PL),
which offers companies the optimum solutions to their logistics needs,
has enabled us to cultivate a loyal and growing customer base.
With the establishment of Tonami Holdings Co., Ltd., we have entereda new phase of development. We intend to bring the accumulated expertise and business know-how of the Tonami Holdings Group into full play
not only in the field of logistics but also in related businesses and new
fields.
We strive to offer value-added services that transcend the traditional
conception of logistics. As a pioneer with strengths in information processing, we are committed to delivering value a stride ahead.
By vigorously engaging in initiatives and businesses that contribute to
local communities and the environment, we aim to be an enterprise needed and welcomed by society. We are convincedthat it is a big stride toward realization of our vision:“More Than Transportation.”

We Want to Deliver Value a Stride Ahead

Contents
1 Consolidated Financial Highlights
2 To Our Shareholders and Investors
5 Corporate Governance
8 Corporate Social Responsibility Activities
9 Financial Section
35 Consolidated Subsidiaries
36 Board of Directors and Corporate Auditors
36 Corporate Data

Forward-Looking Statements
This annual report includes forward-looking statements that represent Tonami’s assumptions and expectations in light of currently available
information. These statements reflect industry trends, clients’ situations and other factors, and involve risks and uncertainties which may
cause actual performance results to differ from those discussed in the forward-looking statements in accordance with changes in thebusiness environment.

Consolidated Financial Highlights
TONAMI HOLDINGS CO., LTD.
AND CONSOLIDATED SUBSIDIARIES
Years ended March 31, 2009 and 2008
Thousands of
U.S. dollars(Note 1)Millions of yen
2009
2008

2009

FOR THE YEAR:
Operating revenues¥126,930¥130,188$1,292,172

Logistics

114,646

117,614

1,167,118

Information processing

2,829

2,446

28,800

Others

9,455

10,12896,254

Operating income

670

1,887

6,821

Net income (loss)

244

(911)

2,484

2.69

¥ (10.03) $

0.0274

Net income, diluted

2.47

—

0.0251

Cash dividends

5.00

6.00

0.0509¥113,141¥112,511$1,151,797

44,88245,962456,907

PER SHARE (Yen and U.S. dollars):
Net income (loss), basic¥

AT YEAR-END:
Total assets
Total net assets

Notes: 1. U.S. dollar amounts presented herein are included solely for convenience. The rate of ¥98.23 = U.S.$1, prevailing on March 31, 2009,has been used for the translation into U.S. dollar amounts.
2. The computation of net income (loss) per share of common stock is based on the weighted average number of shares outstanding(which represents the number of issued shares less treasury stock.) during each financial year.

Operating Revenues by
Business Segment
150(Billions of yen)

Operating Income

3

Net Income (Loss) and
Net Income (Loss) per Share, basic(Billions of yen)

3.0

(Billions of yen)

(Yen)

30

100

2

1.5

15

50

1

0

0

0

’05

’06

’07

’08

’09

0

’05

’06

’07

’08

’09

-10.0

’05

’06

’07

’08

’09

-100

Net Income (Loss) (Left scale)
Net Income (Loss) per Share, basic (Right scale)

Logistics
Information processing
Others01

To Our Shareholders and Investors

Chairman, Yoshihiro Minami

President, Katsusuke Watanuki

Operating Environment and Business Results

During the fiscal year ended March 31, 2009, there was mounting concern about the possibility offurther deterioration of the Japanese economy as weak stock prices and appreciation of the yen
adversely affected corporate earnings amid rapid deceleration of the world economy brought about
by turmoil in U.S. financial markets.
In the distribution industry, the business environment remained challenging. A large decline indomestic and international freight transport volumes owing to production cuts and moves to reduceinventories in line with the rapid deterioration of the economy resulted in a worsening of the balance between revenues and expenditures.
In these circumstances, the Tonami Group launched the 18th three-year medium-term businessplan in April 2008. The Group completed the shift to a holding company structure on October 1,
2008. Eyeing possibilities of M&A and business partnerships, we endeavored to become a highly
profitable concern that delivers high added value through expansion of the third-party logistics(3PL) business, so as to increase the Group’s enterprise value. In these endeavors, we adhered to ourfundamental policy of providing our customers with high-quality services that are highly valued andinspire their trust in the Tonami Group.
In particular, we have positioned the 3PL business as a high-priority business, seeking tostrengthen our sales and marketing capabilities by focusing on the proposal of a system that optimizes the entire flow of activities from raw materials procurement and purchasing to final delivery
as well as on improvement of logistics. We have worked to increase synergy between the 3PL business and the mainstay road haulage business.
Despite these efforts, owing to the rapid slowdown of the economy, the volume of freight transport in the mainstay road haulage business began declining in the third quarter, with the decline
being especially marked in the fourth quarter. Although the increase in the number of consolidated
subsidiaries was a factor increasing operating revenues, consolidated operating revenues for the year
under review decreased 2.5% or ¥3,258 million from the previous year to ¥126,930 million.
With regard to profits, despite efforts to improve overall efficiency by increasing transport efficiency, integrating operations, and cutting indirect expenses, a rapid decline in the freight volume handled had a heavy impact on profitability. Operating income plunged 64.5% or ¥1,217 million to¥670 million. Net income amounted to ¥244 million, an improvement of ¥1,155 million from thenet loss recorded for the previous year. Whereas a loss on impairment of property and equipment
was recorded as an extraordinary loss for the previous year, there was no such item this year.
Total annual dividends for the year ended March 2009 amount to ¥5 per share, including theinterim dividend of ¥3 per share.

02Regarding the results by business segment, operating revenues from logistics-related businesses
were ¥114,646 million, a decrease of 2.5% or ¥2,968 million from the previous year. Although theincrease in the number of consolidated subsidiaries had a positive impact on revenues and we madea concerted effort to expand the scope of business by promoting the 3PL business as a high-priority
business and developing logistics solutions, lower operating revenues reflected a sharp decrease in
the volume of freight transport of the road haulage operations in the truck transport business andthe freight forwarding business.
Operating revenues from the information processing business increased 15.6% or ¥383 million
from the previous year to ¥2,829 million.
Operating revenues from other businesses, which include automobile repair and merchandising,decreased 6.6% or ¥673 million from the previous year to ¥9,455 million.
Outlook for the Year Ending March 2010

Although the global economy appears to be stabilizing, albeit slowly, after a sharp deceleration, adecisive recovery is not expected to materialize for some time and the outlook for the Japanese
economy will remain uncertain. Management expects the business environment to remain a sourceof concern throughout the fiscal year ending March 2010 owing to negative factors, such as the
sluggishness of the volume of freight transport in Japan and overseas.
For the fiscal year ending March 2009, we intend to promote reshaping of the operations tostrengthen the fundamentals through improvement of profitability. As a result, we expect operating
revenues of ¥118.9 billion, a decrease of 6.3% year on year, operating income of ¥1,450 million, an
increase of 116.7%, and net income of ¥1,150 million, an increase of 371.3%.
We will continue to strive to improve business performance so as to meet the expectations of ourshareholders. We request your continued support of our endeavors.
June 2009

Yoshihiro Minami
Chairman and Representative Director

Katsusuke Watanuki
President and Representative Director

03Operating Subsidiaries and Affiliates
Group companies that support
business activities in Asia

Group companies that support
domestic business operations

Transportation business:
Tonami Transportation and other companies

Warehousing business:

Tonami Transportation
Keishin Warehouse
Tonami Global Logistics and other companies

CP system:

Keishin System Research

Financial services:

Tonami Transportation
Tonami Global Logistics
Keishin Warehouse

Tonami Business Service

Temporary staffing:
Tonami Staff Support

Hokkaido Tonami Transportation
Tonami Computer Center

ANAN-TP Co., Ltd.
(Nationwide Shirobo JSE Courier)

Gosei Tonami Transportation
Fukui Tonami Transportation
Ishikawa Tonami Transportation
Niigata Tonami Transportation
Zento Transportation
Takaoka Transportation
Takefu Transportation

Shonan Tonami Transportation
Kanto Tonami Transportation
Kanagawa Tonami Transportation
Ibaragi Tonami Transportation
Saitama Tonami Transportation

Osaka Tonami Transportation
Kawai Transportation
Kansai Tonami Transportation

Chukyo Tonami Transportation
Touto Transportation

Tonami Trading, Toyo Gomu Hokuriku Hanbai, Toyama Jizake Hanbai,
Toyo Tire Toyama shop, ATS, Jessco, Takaoka Cable Network, Shogawa Kanko, etc.

Tonami Logistics Solutions

Physical distribution
consulting functions

Physical distribution
network functions

Procurement logistics

Production logistics

Raw materials (Parts etc.)
manufacturers

Factories

Environmental
logistics

Consumers

Goods returned, repairs,
waste, etc.

In-house logistics

Warehouses, distribution
centers

Sales logistics
Destinations in Japan

Wholesalers, retailers
Overseas suppliers

ExportImportDestinations overseas

International logistics
Systematized distribution (3PL), information sharing
Supply chain management (SCM)

Information systemdevelopment functions

Operational functions04

Corporate Governance

As of October 1, 2008, the Company adopted a pure holding company system and started operating under
the trade name Tonami Holdings Co., Ltd.
At a meeting of the Board of Directors held on October 1, 2008, the Company passed a resolution concerninga basic policy for internal control systems. The Company, with the Internal Control Committee in a central
role, is constructing sound internal control systems based on the policy with the aim of increasing the corporate value of the Tonami Holdings Group.

Description of Management Organization and State of Development of Internal Control Systems

1) Basic Explanation of the Management Organization
The Board of Directors of the Company is the organization responsible for important matters concerning business policy and business strategy. It convenes, in principle, once a month in accordancewith the Board of Directors Regulations. Meetings of the Board of Directors are held as necessary,
enabling the directors to attain mutual understanding and engage in mutual supervision of the execution of business. The Board of Directors deliberates and makes decisions on important mattersconcerning business policy and business strategy. The Board of Directors utilizes the services of outside experts as necessary to prevent violations of the law or the Articles of Incorporation.
The Company employs a corporate auditor system as part of its internal control framework. The
Board of Corporate Auditors consists of five corporate auditors (two standing corporate auditors andthree outside corporate auditors). The corporate auditors audit the legality of the directors’ actions
by attending meetings of the Board of Directors and other important meetings, by offering theiropinions, and by other means.
The corporate auditors, including the outside corporate auditors, audit the execution of businessby the directors in accordance with the auditing policy and task assignments decided by the Board of
Corporate Auditors. In the event that a director discovers a violation of the law or the Articles ofIncorporation on the part of another director, the director is required to promptly report the violation to the Corporate Auditors and the Board of Directors and a remedy will be sought. The
Company also has an internal auditing unit, the Internal Audit Office, which is an organization independent of the business units. The Company employs an executive officer system and separates
responsibility of directors for business supervision from that of executive officers for the execution ofbusiness.
The Company has established the Tonami Group Employee Code of Conduct as the foundation of
the Group’s compliance system. In order to promote construction of internal control systems, theCompany has established the Internal Control Committee, which is chaired by the president, and its
subordinate organizations: the Internal Control Supervisor Committee and the Internal Control
Office. The Company has established the Compliance Committee, a compliance control organization, and the Business Risk Management Committee, the cornerstone of the risk management
structure, for control, operation and provision of training in order to maintain and enhance internal
control systems.
Furthermore, in order to ensure appropriateness of operations of operating subsidiaries, theCompany has established the Tonami Group Employee Code of Conduct and the Group Operation
Regulations, which apply to all operating subsidiaries. Individual operating subsidiaries have established their own regulations based on the Group Operation Regulations.
With regard to administration of operating subsidiaries, the Group Company Administration
Procedures specify matters requiring approval by the headquarters and those to be reported.

05

2) The Relationship between the Management Organization and Internal Control
General Meeting of Shareholders
Election

Election

Auditing

Attorney

Board of Directors(Representative directors)(Directors)

OpinionElection

Board of Corporate Auditors(Corporate auditors)(Outside corporate auditors)
Reporting

Reporting

Independent auditors

Internal Audit Office
Auditing

Supervision

Business Execution
Internal Control Committee(Internal Control Office)Internal auditing

Human Resource
Management Group

Business Planning OfficeCompliance Committee

Business Administration Group

Business Risk Management
Committee

Internal
controlInternal
controlPlanformulation,
reporting

Policypresentation,plan approvalGroup operating subsidiaries

3) Description of Management Organization and State of Development of Internal Control Systems
With regard to the design of its internal control systems, the Company has established a basic policy
concerning business risk management for the Tonami Group and is working to appropriately
respond to various types of risk that might have an effect on the operation of operating subsidiaries,
in order to stabilize the fundamentals of the Group and, should a business risk materialize, to minimize the impact and as far as possible ensure that neither a business loss nor a social loss is incurred.
The Company recognizes the importance of legal compliance and has established the Compliance
Committee to ensure compliance. The Company has appointed compliance promotion officers toinculcate corporate ethics and compliance among the officers and employees of operating subsidiaries based on the Tonami Group Employee Code of Conduct and engages in education and holds
briefings concerning compliance.
To promote the detection of potential violations in business activities and prevent their occurrence, the Company is establishing a compliance structure to ensure reporting on the state of compliance implementation, swift correction of any violations that occur, and the devising of measures toprevent recurrence.
The Company has adopted an executive officer system in order to separate management supervision and business execution while clearly defining authority and responsibility. The executive officers
attend meetings of the Management Council, an organization that deliberates on important mattersrelated to business execution, strive to promptly execute business in accordance with the basic policy decided by the Board of Directors, and, as necessary, obtain and refer to advice from certified
public accountants, attorneys, and other specialists concerning compliance matters.
The Company has put in place a structure enabling a rapid response to changes in the businessenvironment and strives to ensure sound management. To this end, operating subsidiaries haveestablished their own regulations based on the Group Operation Regulations and the Company conducts administration of operating subsidiaries in accordance with the Group Company
06Administration Procedures that specify matters requiring approval by the headquarters and those to
be reported.
The Internal Audit Office conducts internal audits to verify whether business is executed appropriately and efficiently. It reports to the corporate auditors and the Board of Directors.

4) State of Internal Auditing and Auditing by Corporate Auditors
The Internal Audit Office (four personnel) of the Company is an internal auditing unit independentof the business units and its staff assists with the work of the corporate auditors. As a means of
ensuring the Internal Audit Office’s independence from the Board of Directors, Internal Audit Office
staff changes are decided by the Board of Directors after being approved by the Board of Corporate
Auditors. The Internal Audit Office conducts periodic and unscheduled internal audits of theCompany’s business, reports to the corporate auditors and the Board of Directors, and requests
improvements.
The Company’s corporate auditors exchange information with the independent auditors, cooperate with the Internal Audit Office, conduct appropriate audits, and hold periodic meetings of theBoard of Corporate Auditors.
State of Development of the Risk Management Structure

In accordance with the Tonami Group Business Risk Management Regulations, the president serves
as the Chief Risk Management Officer, risk management officers are appointed for each type of risk,
and a risk management structure is established. In the event of unforeseen circumstances, in accordance with the Tonami Group Large-scale Disaster Response Regulations and the Tonami Group
Emergency Response Regulations, the Company will establish an Emergency Response Headquarters
run by the president, mount a rapid and appropriate response in accordance with the regulations,and put in place a structure to prevent the spread of damage and minimize damage.
To ensure the propriety of business at Group companies, the Company has established the Tonami
Group Employee Code of Conduct, conduct guidelines that apply to all group companies. Group
companies have established regulations based on the code of conduct.
With regard to subsidiary management, matters requiring parent company approval and reportingare specified in the Management Council Regulations and subsidiaries are managed in accordancewith the Subsidiary Management Regulations.
In the event that a director discovers a violation of the law or another important matter related tocompliance in a group company, the director is required to report the matter to a corporate auditor.
In the event that a subsidiary finds that the administration by the Company or management instructions issued by the Company violate the law or becomes aware of another compliance-related
problem, the subsidiary is required to report the matter to the Internal Audit Office or theCompliance Office. The Internal Audit Office or the Compliance Office promptly reports the matterto a corporate auditor so that the corporate auditor can express an opinion and request improvement
measures.
The Company has established the Tonami Group Internal Reporting Regulations as a group-wide
internal reporting system concerning violations of the law and other matters related to compliance.
The Company will have no relationships with antisocial forces. The Company will take resoluteaction against any undue claims or actions by antisocial forces on the basis of cross-organizational
cooperation in close collaboration with the police and other external specialist organizations and will
never provide any benefit to antisocial forces.

07Corporate Social Responsibility Activities

Basic Policy on Corporate Social Responsibility Activities

Adhering to the management policy “Contribute to society through transportation and seek business prosperity” and the action principle “Ensure compliance throughout business activities,” the Tonami Holdings Groupendeavors to fulfill its corporate social responsibility.
The Group’s social responsibility includes ensuring transportation safety, giving consideration to the environment, ensuring legal compliance and compliance with other rules, respecting human rights, and contributing tolocal communities. As a logistics expert, it is incumbent on us to fulfill these responsibilities.
In view of the increasing concern about the impact of CO2 emissions on climate and recognizing the needfor more efficient use of energy, the Group is making a concerted effort to minimize the waste of energy
throughout its business activities. This effort involves improved logistics efficiency, introduction of low-pollution
vehicles, modal shift, and our initiative to promote environmentally friendly driving involving all employees.
The Environmental Division is spearheading the Group’s efforts centered on the theme “Society and theEnvironment” with the aim of contributing to establishment of a recycling-based society. Our Ecolock System
supports locally self-sufficient recycling of resources. Also, as we are a certified wide-area waste disposal agent
under the Ministry of the Environment’s certification system, we can implement highly efficient, recycling activities covering an extensive geographical area.
At present, we are working to realize practical application of the Ecozo System, which is used for proposing
the optimum recycling route for industrial waste, positioning it at the heart of our environmental logistics. We
have filed a business model patent application for the Ecozo System.
We intend to reinforce our commitment to CSR by executing socially responsible business activities in accordance with our mission: to achieve corporate growth while protecting the environment for future generations.
Through continuous and sustainable activities, we strive to enhance corporate value and fulfill our social
responsibility to stakeholders.
Principal CSR Initiatives and State of Implementation

Annual social andenvironmental report

Environmental Protection Activities
Tonami Transportation Co., Ltd., which is an operating subsidiary, has
put in place environmental management systems for the promotion ofenvironmental activities. We set targets for various activities and review
results in order to strengthen the systems through continual improvement.
Specific environmental protection activities include the following: 1)
This truck runs on natural gas
the introduction of environmentally friendly vehicles (low-pollution
vehicles); 2) the practice of environmentally friendly driving; 3) the creation of eco-friendly distribution systems through greater efficiency in distribution; 4) the establishment of a recycling system forstretch films and confidential documents used in offices; and 5) development, provision, and procurement of environmentally friendly products.
Social Contributions
We are eager to contribute to local communities through various activities as a corporate citizen.
Our social contribution activities include participation in voluntary clean-up campaigns,
such as “neighborhood adoption” programs promoted by local government, and the donation of vehicles to social welfare facilities through the establishment of the Tonami
Shozyukai foundation.
We transport relief supplies when natural disasters
occur. The Tonami Transportation badminton club offers
badminton coaching as a local sports promotion activity.

Encouraging local people to take up
badminton
A clean-up in progress08

Financial Section

10

Consolidated Five-Year Summary

11

Consolidated Financial Review

14

Consolidated Balance Sheets

16

Consolidated Statements of Operations

17

Consolidated Statements of Changes in Net Assets

18

Consolidated Statements of Cash Flows

19

Notes to the Consolidated Financial Statements

34

Report of Independent Auditors

09

Consolidated Five-Year Summary
TONAMI HOLDINGS CO., LTD
AND CONSOLIDATED SUBSIDIARIES
Years ended March 31

2008

2009

Thousands of
U.S. dollars
2009

2005

2006

Millions of yen
2007

Operating revenues¥129,068¥129,098¥130,020¥130,188¥126,930$1,292,172

Operating cost

119,722

120,924

122,065

121,875

119,596

1,217,510

Selling, general and administrative expenses

6,363

6,117

5,936

6,426

6,664

67,841

Operating income

2,983

2,057

2,019

1,887

670

6,821

Net income (loss)

2,173(5,050)

1,889

(911)

244

2,484

Depreciation expenses

2,689

2,508

2,650

2,594

2,848

28,993¥ (10.03) ¥

2.69

RESULTS OF OPERATIONS:PER SHARE (yen and U.S. dollars):
Net income (loss)
Cash dividends¥ 22.94¥ (56.02) ¥ 20.77$

0.0274

6.00

6.00

6.00

6.00

5.00

0.0509¥ 42,447¥ 40,682¥ 40,425¥ 36,017¥ 34,702$ 353,273

Net property and equipment

71,79064,45062,75862,194

66,633

678,337

Total assets

127,909

121,577

119,341

112,511113,141

1,151,797

Total current liabilities

37,01036,00434,50936,991

34,248348,651

Long-term liabilities, excluding of current portion thereof

37,75937,99536,50929,55834,011

346,239

Total net assets

52,49647,02948,32345,96244,882456,907

7,289

7,278

7,129

7,310

7,361

YEAR-END FINANCIAL POSITION:
Total current assets

OTHER YEAR-END DATA:
Number of employees

10Consolidated Financial Review

Forward-looking statements in the discussion below represent the best judgment of the Tonami HoldingsGroup (the Company and its consolidated subsidiaries) as of the end of the fiscal year under review.

Significant Accounting Policies and Estimates

The consolidated financial statements of the Tonami Holdings Group have been prepared in accordance withaccounting principles generally accepted in Japan. Estimates used in the preparation of the consolidated financial statements that may affect the reported amounts of assets and liabilities on the closing date and the reported revenues and expenses for the reporting period are principally deferred tax assets, the allowance for
doubtful accounts, the severance and retirement benefits, and income taxes. These estimates are subject tocontinuous, reasonable assessment.
Estimates, judgments, and assessments are made on the basis of factors that are deemed reasonable in lightof past performance and conditions. However, since estimates invariably involve uncertainties, actual results
may differ from the estimates.

Analysis of Consolidated Operating Results
Overview

During the fiscal year ended March 31, 2009, domestic and international freight transport volumes decreased
greatly owing to production cuts and inventory reductions in line with the rapid deterioration of the economy,
while cost competition increased owing to customer demands for greater efficiency in physical distribution
and the intensification of competition. As a result, operating income decreased.
Operating Revenues

Although unit freight charges in the mainstay road haulage operations and the freight forwarding operations
remained the same level as the previous year, a plunge in freight transport volumes in the fourth quarter had anegative impact on revenues, while an increase in the number of consolidated subsidiaries had a positive
impact on revenues. Despite the Group’s efforts to expand the warehousing operations and other businesses,
operating revenues decreased 2.5% or ¥3,258 million from the previous year to ¥126,930 million.
Composition of Operating Revenues
Percentage pointchange from theprevious year

Composition

Logistics:
Road haulage operations and freight forwarding operations
Warehousing operations
Harbor transport operations
Information processing business
Other businesses

−2.5
−1.1
+1.3
−0.2
+0.3
−0.3

90.3%
66.4
18.4
5.5
2.2
7.5

Operating Cost

Although diesel prices trended downward in the second quarter of the year under review, the average price forthe year remained higher than for the previous. The increase in the number of consolidated subsidiaries was alsoa factor contributing to an increase in operating cost. However, operating cost decreased 1.9% or ¥2,279 million
from the previous year because of a decrease in variable costs, which reflects lower operating revenues, enhanced
efficiency of long-distance transport and reduced fixed costs. The ratio of operating cost to operating revenues
increased 0.6 percentage points from the previous year.

Sales of Logistics

Operating Revenues

150(Billions of yen)

150

Sales of Information
Processing(Billions of yen)

3

100

100

2

50

50

1

0

’05

’06

’07

’08

’09

0

’05

11

’06

’07

’08

’09

0

(Billions of yen)

’05

’06

’07

’08

’09

Selling, General and Administrative Expenses

Selling, general and administrative expenses increased 3.7% or ¥238 million year on year as a result of increased
expenses reflecting an increase in the number of consolidated subsidiaries during the fiscal year under review
and expenses associated with the change to the pure holding company system in October 2008.
Operating Income

Operating income decreased ¥1,217 million year on year to ¥670 million. The rate of increase in the aggregate
amount of operating cost and selling, general and administrative expenses was -1.6% and the rate of growth inoperating revenues was -2.5%, resulting in a decrease of 0.9 percentage points in the ratio of operating income
to operating revenues to 0.5%.
Net Income

Net income amounted to ¥244 million, an improvement of ¥1,155 million from the net loss recorded for theprevious year. The principal reason for this upturn was that a loss on impairment of fixed assets amounting to¥971 million was recorded as an extraordinary loss and reversal of deferred tax assets was recorded as deferredincome taxes for the previous year.

Analysis of Cash Flows

Cash Flows from Operating Activities

Net cash provided by operating activities totaled ¥1,720 million (a decrease in net cash of ¥2,189 million year
on year). Principal factors were a ¥1,515 million increase in cash owing to a decrease in trade receivables and a¥2,187 million cash outflow because of a decrease in accounts payable.
Cash Flows from Investing Activities

Net cash used in investing activities totaled ¥1,801 million (a decrease in net cash of ¥271 million year on year).
The principal factor was payments of ¥3,305 million for the purchase of property and equipment, while proceeds from sales and redemption of investments in securities amounted to ¥1,410 million.
Cash Flows from Financing Activities

Net cash used in financing activities totaled ¥81 million (an increase in net cash of ¥5,043 million year on year).
The principal factors were a ¥3,432 million net increase in short-term loans, a ¥3,094 million increase in longterm debt, issuance of bonds amounting to ¥3,000 million, redemption of bonds amounting to ¥7,000 million,
and repayment of long-term debt amounting to ¥1,327 million.

Analysis of the Financial Position
AssetsCurrent assets were ¥34,702 million, a decrease of ¥3.7% or ¥1,315 million from the previous fiscal year-end.
This decrease was mainly attributable to a ¥1,515 million decrease in trade notes and accounts receivable.
Property and equipment amounted to ¥66,633 million, an increase of 7.1% or ¥4,439 million. This increase
was mainly attributable to recording of leased assets amounting to ¥3,463 million in accordance with thechange in the accounting standard for lease transactions.
Investments and other assets amounted to ¥11,806 million, a decrease of 17.4% or ¥2,494 million. Thisdecrease was mainly attributable to a ¥2,630 million decrease in investments in securities.
As a result, total assets amounted to ¥113,141 million, up 0.6% or ¥630 million.
Liabilities

Current liabilities amounted to ¥34,248 million, a decrease of 7.4% or ¥2,743 million from the previous fiscal
year-end. While trade notes and accounts payable decreased ¥2,187 million and the current portion of bonds
decreased ¥7,000 million, short-term bank loans increased ¥3,433 million and the current portion of bonds
Sales of Others

15

Net Income (Loss)

Operating Cost andOperating Income(Billions of yen)

150

(Billions of yen)

3

3.0

10

100

2

1.5

5

50

1

0

0

-10.0

0

’05

’06

’07

’08

’09

0

’05

’06

’07

’08

Operating cost (Left scale)Operating income (Right scale)

12

’09

(Billions of yen)

’05

’06

’07

’08

’09

with stock acquisition rights increased ¥2,500 million.
Long-term liabilities amounted to ¥34,011 million, up ¥15.1% or ¥4,453 million. In addition to a ¥2,263
million increase in long-term debt, lease obligations amounting to ¥3,114 million were recorded in accordancewith the revision of the accounting standard for lease transactions. On the other hand, employees’ severance
and retirement benefits decreased ¥899 million.
As a result, total liabilities amounted to ¥68,259 million, an increase of 2.6% or ¥1,710 million.
Net Assets

Net assets amounted to ¥44,882 million, a decrease of 2.3% or ¥1,080 million from the previous fiscal year-end.
The main factor was a ¥787 million decrease in unrealized gains on securities.

Risk Factors

The business environment in which the Tonami Holdings Group operates entails the risk of difficulty in absorbing cost increases due to such factors as further increases in the price of crude oil and interest rate increases thatexceed expectations.
There is also risk of difficulty in absorbing cost increases due to the further strengthening of environmental regulations, such as regulations on diesel engine vehicle emissions and for ensuring compliance with stricter safety
regulations. In addition, the ability to recoup investment may be impeded because of factors such as deteriorating
business conditions experienced by customers or the suspension of business transactions with customers.
Should any serious problems occur, such as a vehicle accident, there is a risk of loss of customer confidence
and public trust that could have an adverse impact on the Tonami Holdings Group’s business activities and business results.
In the event that the retention, development and recruitment of human resources indispensable for businessexpansion do not progress as envisaged in the growth strategy, strategic tie-ups including acquisition andcapital partnerships do not develop as planned, or that social risks materialize with respect to the Group’s
overseas business expansion, there may be an adverse impact on the Group’s business activities and businessresults.
The Group handles a huge amount of customer information. In the event of leakage of information, thecredibility of the Group may be undermined and claims may be made for damages against the Group. In theevent of trouble concerning IT systems, there may be an adverse impact on the Group’s business results andfinancial condition.
In the event that impairment becomes necessary in accordance with the impairment accounting applicableto fixed assets for business use or there is a great change in the estimates for future taxable income, reversal ofdeferred tax assets will be required, and, as a result, there may be an adverse impact on the Group’s businessresults and financial position.

Strategic Position and Outlook

There are indications that the global economy is beginning to stabilize following the dramatic economic downturn worldwide. However, since it is expected to take some time for a full-scale recovery of the global economy
to take hold, prospects for the Japanese economy are likely to uncertain.
In this economic situation, the Group’s operating environment is expected to remain a source of concern, inview of the persisting downward trend of domestic and international freight transport volumes. In accordancewith the 18th medium-term business plan launched in April 2008 covering the three years to March 2011, theGroup is reinforcing group management. With the adoption of the pure holding company system on October 1,
2008, the Group aims to develop into a highly profitable concern and thus enhance the Group’s enterprise value.

Net Cash Used in Investing
Activities

Net Cash Provided byOperating Activities
4(Billions of yen)

0(Billions of yen)

Total Assets andNet Assets
150(Billions of yen)

3
-2

100

-4

50

2

1

0

’05

’06

’07

’08

’09

-6

’05

’06

’07

’08

’09

0

’05

’06

Total assets
Net assets

13

’07

’08

’09

Consolidated Balance Sheets
TONAMI HOLDINGS CO., LTD.
AND CONSOLIDATED SUBSIDIARIESAs of March 31, 2009 and 2008ASSETS

Thousands of
U.S. dollars(Note 1)
2009

Millions of yen
2009
2008

Current assets:
Cash and time deposits¥ 11,498¥ 11,686$ 117,052

—

20

—

19,654

21,169200,082

(39)

(51)

(397)

Investments in lease assets

227

—

2,311

Inventories

673

542

6,851

Marketable securities (Note 4)
Trade receivables:
Notes and accounts (Note 14)
Less: allowance for doubtful accounts

Deferred tax assets (Note 10)

645

544

6,566

2,044

2,107

20,80834,70236,017353,273

Land

37,74437,291

384,241

Buildings and structures

22,14221,008225,410

Machinery and vehicles

2,447

2,684

24,911

Leased assets

3,463

—

35,254

Construction in progress

147

592

1,497

Other

690

619

7,024

66,63362,194

678,337

Investments in securities (Note 4)

4,964

7,594

50,535

Deferred tax assets (Note 10)

1,301

917

13,244

Goodwill

361

476

3,675

Other

5,180

5,313

52,733

Other current assets
Total current assets

Property and equipment (Notes 5, 6, 8 and 15):

Total property and equipment

Investments and other assets:

Total investments and other assets
Total assets
The accompanying Notes are an integral part of these statements.

14

11,806

14,300120,187¥113,141¥112,511$1,151,797

LIABILITIES AND NET ASSETS

Thousands of
U.S. dollars(Note 1)
2009

Millions of yen
2009
2008

Current liabilities:
Short-term bank loans (Note 6)
Current portion of long-term debt (Note 6)
Current portion of bonds (Note 6)¥ 12,941¥ 9,508$ 131,742

1,216

1,213

12,379

—

7,000

—

Current portion of bonds with stock acquisition rights (Note 6)

2,500

—

25,450Trade notes and accounts payable

10,001

12,188101,812

769

—

7,829

Lease obligations
Income taxes payable

399

599

4,062

Other current liabilities

6,422

6,483

65,37734,24836,991

348,651

Long-term debt, less current portion thereof (Note 6)

8,404

6,141

85,554

Lease obligations

3,114

—

31,701

Total current liabilities
Long-term liabilities:

Deferred tax liabilities from revaluation reserve for land (Note 15)

5,455

5,455

55,533

Employees’ severance and retirement benefits (Note 9)

15,643

16,542

159,249

Retirement benefits for directors and corporate auditors

211

214

2,148

4

7

41

1,180

1,199

12,013

Total long-term liabilities

34,011

29,558346,239

Total liabilities

68,25966,549694,890

14,183

14,183

144,386

Capital surplus

11,682

12,229118,925

Retained earnings

14,392

14,148

146,513(2,008)(2,001)(20,442)

38,24938,559389,382

233

1,020

2,372

5,787

5,787

58,913

6,020

6,807

61,285

613

596

6,240

44,88245,962456,907¥113,141¥112,511$1,151,797

Negative goodwill
Other long-term liabilities

Net assets
Shareholders’ equity (Note 16):
Common stock:
Authorized: 299,200,000 shares in 2009
299,200,000 shares in 2008
Issued:97,610,118 shares in 2009
97,610,118 shares in 2008

Treasury stock, at cost: 6,803,610 shares in 2009
6,765,163 shares in 2008
Total shareholders’ equity
Valuation and translation adjustments:
Unrealized gain on securities
Revaluation reserve for land (Note 15)
Total valuation and translation adjustments
Minority interests:
Minority interests
Total net assets
Total liabilities and net assets
15

Consolidated Statements of Operations
TONAMI HOLDINGS CO., LTD.
AND CONSOLIDATED SUBSIDIARIESFor the years ended March 31, 2009 and 2008
Thousands of
U.S. dollars(Note 1)
2009

Millions of yen
2009
2008

Operating revenues:
Operating revenues¥126,930¥130,188$1,292,172

126,930130,188

1,292,172

119,596

121,875

1,217,510

6,664

6,426

67,841

126,260

128,301

1,285,351

670

1,887

6,821

Interest and dividend income

322

326

3,278

Equity in earnings of unconsolidated subsidiaries and affiliates

89

42

906

Loss on sale of property and equipment, net

(257)

(104)

(2,616)

Interest expenses

(363)

(278)

(3,696)

Impairment losses (Note 8)

(145)

(971)

(1,476)

Other, net

831

104

8,460

477

(881)

4,856

1,147

1,006

11,677

Current

852

676

8,674

Deferred

22

1,216

224

874

1,892

8,898

29

25

295

(911) $

2,484

Operating costs and selling, general and administrative expenses:
Operating cost (Note 17)
Selling, general and administrative expenses (Note 17)
Operating income
Other income and expenses:

Income before income taxes and minority interests
Income taxes (Note 10):

Minority interests
Net income (loss)¥The accompanying Notes are an integral part of these statements.

16

244

¥

Consolidated Statements of Changes in Net Assets
TONAMI HOLDINGS CO., LTD.
AND CONSOLIDATED SUBSIDIARIESFor the years ended March 31, 2009 and 2008

Millions of yen
Shares ofcommonstock(thousands)

Balance as at March 31, 2007

Cash dividends applicable tothe year (¥6.00 per share)
Net loss
Revaluation reserve for land
Treasury stock
Portion of treasury stock of newly consolidated
subsidiaries assumed by the Company
Net changes in items other thanshareholders’ equity

Balance as at March 31, 2008

Cash dividends applicable tothe year (¥6.00 per share)
Net income
Treasury stock
Sales of treasury stock
Net changes in items other thanshareholders’ equity

Balance as at March 31, 2009

Commonstock

CapitalsurplusRetainedearnings

97,610 ¥14,183 ¥12,502 ¥15,163
(273)

(273)
(911)
169

97,610 ¥14,183 ¥12,229 ¥14,148
(545)

244

(2)

Treasury
stock

Total
Total
Unrealized Revaluation valuation andshareholders’ gain on
reservetranslation Minority
equitysecurities
for land adjustments interests¥(1,981) ¥39,867¥7,875¥581 ¥48,323

(15)

(546)
(911)
169
(15)

—
—
—
—

(546)
(911)
169
(15)

(5)

(5)

—

(5)

—
(899)
(169) (1,068)¥(2,001) ¥38,559 ¥1,020 ¥5,787 ¥6,807

15 (1,053)¥596 ¥45,962(14)
7¥1,919¥5,956Total
net assets

(545)
244
(14)
5

—
97,610 ¥14,183 ¥11,682 ¥14,392 ¥(2,008) ¥38,249(787)¥233 ¥5,787

—
—
—
—

(545)
244
(14)
5

(787)
¥6,02017(770)¥613 ¥44,882

Thousands of U.S. dollars (Note 1)
Commonstock

Balance as at March 31, 2008

Cash dividends applicable tothe year ($0.061 per share)
Net income
Treasury stock
Sales of treasury stock
Net changes in items other thanshareholders’ equity

Balance as at March 31, 2009

CapitalsurplusRetainedearnings

Treasury
stock

Total
Total
Unrealized Revaluation valuation andshareholders’ gain on
reservetranslation Minority
equitysecurities
for land adjustments interests$144,386 $124,494 $144,029 $(20,371) $392,538 $10,384 $58,913 $69,297(5,548)

2,484

(21)

(142)
71

(5,548)
2,484
(142)
50

—
$144,386 $118,925 $146,513 $(20,442)$389,382

The accompanying Notes are an integral part of these statements.

17

—
—
—
—

Total
net assets$6,067 $467,902(5,548)
2,484
(142)
50

(8,012)(8,012)173 (7,839)$2,372 $58,913 $61,285 $6,240 $456,907

Consolidated Statements of Cash FlowsTONAMI HOLDINGS CO., LTD.
AND CONSOLIDATED SUBSIDIARIESFor the years ended March 31, 2009 and 2008

Millions of yen
2009
2008

Cash flows from operating activities:
Net income before income taxes and minority interests
Depreciation and amortization
Impairment losses
Loss on disposal of property and equipment
Gain on sales of investments in securities
Loss on devaluation of investments in securities
Loss on devaluation of golf club memberships
Amortization of goodwill
Equity in earnings of unconsolidated subsidiaries and affiliates
Increase (decrease) in allowance for doubtful accounts
Decrease in employees’ severance and retirement benefits(Decrease) increase in directors’ and corporate auditors’ retirement benefits
Decrease in accrued bonuses to employees
Interest and dividend income
Interest expenses
Decrease in trade receivables
Increase in inventories(Decrease) increase in accounts payable
Decrease in accrued consumption taxes
Other, net
SubtotalInterest and dividends received
Interest paid
Income taxes paid
Net cash provided by operating activities

Thousands of
U.S. dollars(Note 1)2009¥ 1,147
2,848
145
257
(855)
297
22
112
(89)
9
(899)
(3)
(73)
(322)
363
1,515
(131)
(2,187)
(323)
380
2,213
919
(332)
(1,080)1,720¥ 1,006
2,594
971
104
(0)
7
0
(119)
(42)
(101)
(1,259)
197
(117)
(326)
278
131
(16)
776
(43)
237
4,278
326
(204)
(491)
3,909

$ 11,677
28,993
1,476
2,616(8,704)
3,024
224
1,140
(906)
92
(9,152)(31)(743)(3,278)3,695
15,423(1,334)(22,264)(3,288)3,869
22,5299,356(3,380)(10,995)
17,510Cash flows from investing activities:
Purchase of time deposits
Proceeds from redemption of time deposits
Proceeds from sales of marketable securities
Purchase of property and equipment
Proceeds from sales of property and equipment
Purchase of investments in securities
Proceeds from sales of investments in securities
Proceeds from redemption of investments in securities
Payments for acquisition of subsidiaries resulting in changes in scope of consolidation
Investments in loans receivable
Proceeds from collection of loans receivable
Other, net
Net cash used in investing activities

(27)
37
20
(3,305)
210
(69)
910
500
—
(23)
34
(88)
(1,801)(34)
258—(2,231)
567
(121)
0
—
(52)
(7)
27
63
(1,530)

(275)
377
203
(33,646)
2,138
(702)
9,264
5,090
—
(234)
346
(896)
(18,335)

Cash flows from financing activities:
Net decrease in short-term loans
Proceeds from long-term debt
Repayment of long-term debt
Proceeds from issuance of bonds
Redemption of bonds
Proceeds from sales of treasury stock
Purchase of treasury stock
Dividends paid
Dividends paid to minority interests
Repayment of lease obligations
Net cash used in financing activities

3,432
3,094
(1,327)3,000(7,000)
5
(14)
(545)
(10)
(716)
(81)

(4,480)987(1,063)
—
—
—
(15)
(545)
(8)
—
(5,124)34,93831,498(13,509)30,541(71,261)51(143)(5,548)(102)(7,289)
(824)

(162)
11,638¥11,476(2,745)
14,383¥11,638(1,649)118,477$116,828

Net decrease in cash and cash equivalents
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year (Note 12)
The accompanying Notes are an integral part of these statements.

18

Notes to the Consolidated Financial Statements
TONAMI HOLDINGS CO., LTD.
AND CONSOLIDATED SUBSIDIARIES

1 Basis of presenting financial statements
The accompanying consolidated financial statements have been prepared based on the accounts maintained by
Tonami Holdings Co., Ltd. (the “Company”) and consolidated subsidiaries in accordance with accounting principles generally accepted in Japan, which differ in certain respects as to the application and disclosure requirements of International Financial Reporting Standards. In preparing these consolidated financial statements,
certain reclassifications and rearrangements have been made to the Company’s consolidated financial statements issued domestically in order to present them in a format which is more familiar to readers outside Japan.
In addition, certain reclassifications have been made in the 2008 financial statements to conform to the classifications used in 2009.
U.S. dollar amounts presented in the financial statements are included solely for convenience and should not
be construed as representations that Japanese yen amounts have been or could in the future be converted into
U.S. dollars. The rate of ¥98.23 = U.S.$1, prevailing on March 31, 2009, has been used for the translation into
U.S. dollar amounts in the financial statements.

2 Summary of significant accounting policies(a) Consolidation

The accompanying consolidated financial statements include the accounts of the Company and its 31 significant majority-owned subsidiaries for the year ended March 31, 2009 (31 for 2008).
All significant intercompany accounts and transactions have been eliminated in consolidation.
Five of the investments in unconsolidated subsidiaries or affiliates (7 for 2008) are accounted for by theequity method.
Differences between the acquisition cost and the underlying net equity of subsidiaries at the time of acquisition are amortized on the straight-line basis over the period of five or 20 years.
When those amounts are not significant, however, the differences are fully charged or credited to income at
the dates of acquisition.
(b) Marketable securities and investments in securities

Securities, except for investments in unconsolidated subsidiaries and affiliates, are classified as trading securities, held-to-maturity securities or other securities. Trading securities are carried at fair value. Held-to-maturity
securities are carried at amortized cost. Marketable securities classified as other securities are carried at fairvalue with any unrealized gain or loss reported as a separate component of net assets, net of taxes.
Non-marketable securities classified as other securities are carried at cost determined by the moving-averagemethod.
Cost of securities sold is determined principally by the moving average method.
(c) Derivatives

Derivative financial instruments are stated at fair value.
Interest-rate swaps which meet specific matching criteria and qualify for hedge accounting treatment are not
re-measured at market value; however, the differentials paid or received under the respective swap agreements
are recognized and included as interest expense or income.
(d) Inventories

Inventories are stated at cost, until March 31, 2008, and at lower of cost or net realizable value effective April 1,
2008, cost being determined principally by the last purchase price method. The specific identification cost
method is used for certain inventories.
(e) Allowance for doubtful accounts

Allowance for doubtful accounts is provided in an amount sufficient to cover possible losses on collection.
Said amount is computed by applying the rate of actual losses on collection experienced in the past withrespect to general trade receivables and by individually reviewing their collectibility with respect to certain
doubtful receivables.
(f) Property and equipment and intangible assets

Property and equipment are stated at cost. However, under Japanese tax law, capital gains arisen from disposals
and other similar transactions are deducted from the cost of the property and equipment acquired in substitution.
19

Depreciation of property and equipment, except for leased assets, is computed by the declining balancemethod over the useful life of the assets as determined by law, except for buildings and structures, which are
depreciated by the straight-line method.
The ranges of useful lives of principal property and equipment are as follows:
Buildings and structures . . 2-50 years
Machinery and vehicles . . . 2-15 years
Leased assets under the finance lease arrangements which do not transfer ownership of the leased assets tothe lessee are depreciated by the straight-line method over the respective lease periods without residual values.
Finance leases which commenced prior to April 1, 2008 and do not transfer ownership of the leased assets
are accounted for as operating lease transactions as before.
Amortization of intangible assets is principally computed using the straight-line method on the presumptionof having no salvage value.
(g) Employees’ severance and retirement benefits

Full-time employees of the Company and its consolidated subsidiaries are entitled to a lump-sum payment
upon retirement or severance of employment. In order to provide for the employees’ severance and retirement
benefits, the Company and its consolidated subsidiaries assume a liability for severance and retirement benefits,
which is included in the liability section of the consolidated balance sheet, based on the estimated amounts ofprojected benefit obligation and plan assets at the balance sheet dates.
Past service costs are recognized in expenses using the straight-line method over 10 years (a period notexceeding the employees average remaining service years) commencing with the year incurred.
Actuarial gains and losses are recognized in expenses using the straight-line method over 10 years (a period
not exceeding the employees’ average remaining service years) commencing with the year following theiroccurrence.
(Additional information)
Prior to April 1, 2008, past service costs and actuarial gains and losses had been recognized over 11 years.
However, as a result of the review on the employees’ remaining service years, the recognition period waschanged from 11 years to 10 years effective the year ended March 31, 2009. As a result of this change, as compared to the previous accounting treatment, operating income and income before income taxes and minority
interests for the year ended March 31, 2009 decreased by ¥65 million (US$662 thousand).
The effect on the segment information is described in Note 21, “Segment Information”.
(h) Retirement benefits for directors and corporate auditors

Some consolidated subsidiaries provide necessary payments to directors and corporate auditors at the end of
the fiscal year determined according to internal company rules to a reserve for retirement benefits for directors
and corporate auditors.
(i) Income taxes

Income taxes consist of corporate income tax, inhabitant taxes and enterprise tax.
The Company and its consolidated subsidiaries recognize tax effects of temporary differences between the
carrying amounts of assets and liabilities for tax and financial reporting.
(j) Statements of cash flows

Cash and cash equivalents include cash on hand, deposits placed with banks on demand, and highly liquid
investments with insignificant risk of changes in value which have maturities of three months or less when purchased.
(k) Foreign currency translation

All monetary assets and liabilities denominated in foreign currencies are translated into yen at the current
exchange rates at the balance sheet date, and any gain or loss on translation is credited or charged to income.
(l) Net income per share

Basic income per share is computed using the weighted-average number of shares of common stock outstanding, which represents the number of issued shares less treasury stock, during each year.

20

3 Changes in accounting policy
Accounting standard for lease transactions

Prior to April 1, 2008, finance leases which do not transfer ownership of the leased assets to the lessee were
accounted for as operating lease transactions under the previous accounting standard for lease transactions.
Effective the year ended March 31, 2009, the Group adopted ASBJ Statement No.13, “Accounting Standard forLease Transactions” which was issued by the Accounting Standards Board of Japan on March 30, 2007. Underthe revised accounting standard, all the finance leases are accounted for as if they were purchased or sold in theordinary buy or sell transactions.
Finance leases which commenced prior to April 1, 2008 and do not transfer ownership of the leased assets
to the lessee are accounted for as operating lease transactions as permitted by the revised accounting standard.
As a result, investments in lease assets in an amount of ¥227 million ($2,311 thousand) are recorded undercurrent assets and leased assets in an amount of ¥3,463 million ($35,254 thousand) are recorded under property and equipment at March 31, 2009, compared to the previous accounting treatment. The effect of thischange on the income was immaterial.
In addition, repayments of lease obligations included in lease payments which were recorded under “Net
cash provided by operating activities” in the consolidated statements of cash flows for the year ended March 31,
2008 are reclassified to “Net cash used in financing activities” in the consolidated statements of cash flows forthe year ended March 31, 2009. As a result, “Net cash provided by operating activities” increased by ¥716 million ($7,289 thousand) and “Net cash used in financing activities” decreased by ¥716 million ($7,289 thousand). The effect of this change on the segment information was immaterial.

4 Fair value of securities
No trading securities or held-to-maturity securities were held at March 31, 2009 or 2008. Securities classified
as other securities are included in “marketable securities” and “investments in securities” in the accompanying
consolidated balance sheets.
The components of unrealized gain or loss on marketable securities classified as other securities at March 31,
2009 are summarized as follows:—

Unrealized gain:
Stocks (Note 1)
Bonds:
Corporate bonds
Other
Other
Unrealized loss:
Stocks (Note 1)
Bonds:
Corporate bonds
Other (Note 2)
Other
Total

Acquisition
costs

Millions of yen
2009
Carrying
value¥1,176¥1,724

¥548

—
—
—

—
—
—

—
—
—

1,319

1,151

(168)

—
100
50
¥2,645—19
50¥2,944

—
(81)
(0)
¥299

Unrealized
gain (loss)

Thousands of U.S. dollars
2009
Acquisition
Carrying
Unrealized
costs
value
gain (loss)

Unrealized gain:
Stocks (Note 1)
Bonds:
Corporate bonds
Other
Other
Unrealized loss:
Stocks (Note 1)
Bonds:
Corporate bonds
21$11,972$17,551$5,579

—
—
—

—
—
—

—
—
—

13,428

11,717(1,711)———Other (Note 2)
Other
Total

1,018
509
$26,927

193
509$29,970(825)(0)$3,043Note 1: Equity securities with fair value, classified as other securities, are restated at the fair value and related
loss on impairment in an amount of ¥244 million ($2,484 thousand) is charged to income for the year
ended March 31, 2009. Equity securities whose fair value is 50% or less than the acquisition cost arenecessarily restated at fair value and those whose fair value is between 50% and 30% of the acquisition
cost are restated at fair value, if they are judged to be unrecoverable considering the trend of the market
value for the past certain period and performances of the issuers.
Note 2: “Other” refers to compound financial instruments and the difference between the acquisition cost andcarrying value in an amount of ¥17 million ($173 thousand) is charged as a loss. “Acquisition costs” refer to the original acquisition costs.
The components of unrealized gain or loss on marketable securities classified as other securities at March 31,
2008 are summarized as follows:—

Unrealized gain:
StocksBonds:
Corporate bonds
Other
Other
Unrealized loss:
StocksBonds:
Corporate bonds
Other (Note)
Other
Total

Acquisition
costs

Millions of yen
2008
Carrying
value¥2,138¥3,949¥1,811

—
—
—

—
—
—

—
—
—

589

454

(135)

20
100
100
¥2,94720
36
99¥4,558—(64)(1)¥1,611

Unrealized
gain (loss)(Note)“Other” refers to compound financial instruments and the difference between the acquisition cost and carrying
value in an amount of ¥42 million is charged as a loss in the fiscal year ended March 2008. “Acquisition costs”
refer to the original acquisition costs.
Non-marketable securities classified as other securities at March 31, 2009 and 2008 amounted to ¥1,069
million ($10,883 thousand) and ¥3,053 million, respectively.
Proceeds from sales of securities classified as other securities amounted to ¥1 million ($10 thousand) and ¥0
million for the years ended March 31, 2009 and 2008, respectively.
The aggregate gain realized on those sales totaled ¥1 million ($10 thousand) and ¥0 million for the years
ended March 31, 2009 and 2008, respectively.
The redemption schedule at March 31, 2009 for bonds with maturity dates is summarized as follows:—
Millions of yen

Corporate bonds
Other
Total

Due in one
year or lessDue after one
year throughfive years

Due after five
years throughten years

¥—
—
¥—

¥—
¥ 68
¥ 68

¥—
—
¥—

Due in one
year or lessCorporate bonds
Other
Total

$—
—
$—

22

Thousands of U.S. dollars
Due after one Due after five
year through years throughfive years
ten years

$ —
$692
$692

$—
—
$—

Due after
ten years¥——¥—

Due after
ten years$——$—

5 Property and equipment
Depreciable property is stated at the net book value in the consolidated balance sheets. The amounts of accumulated depreciation were ¥47,818 ($486,796 thousand) million and ¥49,154 million on March 31, 2009 and2008, respectively.
Capital gains resulting from disposals and other similar transactions are deducted from the cost of property
and equipment acquired in substitution. The amounts deducted from the cost of property and equipment was¥195 million ($1,985 thousand) and ¥195 million on March 31, 2009 and 2008, respectively.

6 Short-term bank loans and long-term debt(a) Short-term bank loans

Short-term bank loans as at March 31, 2009 and 2008 were as follows:—
Millions of yen
2009
2008

SecuredUnsecured¥ 3,010
9,931¥ 2,720
6,788

Thousands of
U.S. dollars
2009$ 30,643
101,099

Interest rates range from 0.928% to 2.500%.
(b) Long-term debt

Long-term debt as at March 31, 2009 and 2008 was as follows:—
Millions of yen
2009
2008

0.89% ¥6.4 billion unsecured straight bonds due 2008
0.52% ¥0.6 billion unsecured straight bonds due 2008
0.00% ¥2.5 billion unsecured convertible bond type-bonds
with stock acquisition rights due 2009
2.11% ¥3.0 billion unsecured straight bonds due 2013
1.000%-2.416% loans from financial institutions due 2010 to 2014
and thereafter
SecuredUnsecured
Total
Less: amount due within one year

Thousands of
U.S. dollars
2009

—
—

¥ 6,400
600

2,500
3,000

2,500
—

25,45030,541

989
5,631
12,1203,716¥ 8,404

1,635
3,219
14,3548,213¥ 6,141

10,06857,325
123,384
37,830$ 85,554

¥

$

—
—

The maturity date of the ¥2.5 billion 0.00% unsecured convertible bond type- bonds, issued in July 2004 is
September 30, 2009.
The maturity date of the ¥3.0 billion 2.11% unsecured straight bonds, issued in June 2008 is June 5, 2013.
The annual maturities of long-term debt outstanding as at March 31, 2009 are as follows:—
Year ending March 31,

Millions ofyen

Thousands of
U.S. dollars

2010
2011
2012
2013
2014 and thereafter¥1,070
671
476
5,402
785

$10,893
6,831
4,846
54,993
7,991(c) Pledged assets

Property and equipment having a net value of ¥14,540 million ($148,020 thousand) was pledged as collateralfor short-term bank loans and long-term debt as at March 31, 2009.

23

7 Overdraft facility and credit line commitment agreements
The Company has entered into overdraft facility and credit line commitment agreements with ten banks for the
purpose of efficient procurement of working capital.
Outstanding balance of unused credit concerning overdraft facility and credit line commitment agreements
at March 31, 2009, was as follows:
Maximum credit line of overdraft facility and commitment agreement
Used credit
Total

Millions ofyen

Thousands of
U.S. dollars¥3,000—¥3,000$30,541—$30,541

8 Impairment losses
During the fiscal year ended March 31, 2009, the Group recorded impairment losses concerning the following
asset groupings.

Tonami Transportation, etc.

Usage

Type

Location

Haulage andwarehouse facilities

Land andbuildings

7 sites, including
Kanazawa City,
Ishikawa prefecture

Impairment losses Impairment losses(millions of(thousands ofyen)
U.S. dollars)¥145$1,476The Company is a comprehensive logistics enterprise including the road haulage operation. Organizations
belonging to operations implement management accounting.
Business facilities in various locations are bases for providing the Company’s comprehensive distribution
solution services to customers. In many cases, organizations of operations are located at these business facilities
and deal with their customers.
Organizations of operations have complementary relationships. Business facilities constitute the unit for generating cash flows. The aggregate assets of organizations located at each business facility constitute an asset
grouping.
At consolidated subsidiaries, decision-making on investment is done by each business unit. Accordingly, theaggregate assets of organizations belonging to a business unit constitute an asset grouping.
Regarding the asset groupings for which impairment losses were recorded, future cash flow losses were projected partly to be short owing to deteriorated profitability and decline of price of land. Thus, the carrying values of the asset groupings were reduced by the unrecoverable values and an impairment loss amounting to¥145 million (US$1,476 thousand) was recorded as an extraordinary loss.
The breakdown of the impairment losses is as follows:¥32 million (US$326 thousand) concerning land and ¥113 million (US$1,150 thousand) concerning buildings.
In regard to asset groupings, recoverable value of land and buildings is measured based on the net sales
value. Net sales value is assessed based mainly on appraisal value provided by real-estate appraisers. Immaterial
assets are assessed based on carrying value.

9

Employees’ severance and retirement benefits
Employees who terminate their service with the Company and consolidated subsidiaries are, in most cases,
entitled to pension annuity payments or to a lump-sum severance payment determined by reference to thebasic rate of pay, length of service and the conditions under which the termination occurs.
The Company and certain consolidated subsidiaries have defined benefit plans, including a lump-sum payment plan and a contributory welfare pension plan and an approved retirement annuity plan. The Company
revised its pension plans and shifted them to a cash balance plan (money market-interest-rate linked type) on
June 1, 2004.

24

The projected benefit obligation and the funded status of the plans summarized as follows:—
Millions of yen
2009
2008

Projected benefit obligation
Plan assets
Net unrecognized amount
Employees’ severance and retirement benefits¥(19,429)
2,662
1,124
¥(15,643)¥(20,401)
3,175
684¥(16,542)

Thousands of
U.S. dollars
2009($197,792)
27,10011,443($159,249)

The net unrecognized amounts were as follows:—
Millions of yen
2009
2008

Unrecognized benefit obligation:
Adjustment for actuarial assumptions
Past service cost
Net unrecognized amounts¥3,718(2,594)¥1,124¥ 3,688(3,004)¥ 684

Thousands of
U.S. dollars
2009$37,850(26,407)$11,443

The components of net periodic pension and severance costs excluding the employees’ contributory portion
were as follows:—
Millions of yen
2009
2008

Service cost
Interest cost on projected benefit obligation
Expected return on plan assets
Amortization of adjustment for actuarial assumptions
Amortization of past service cost
Net periodic pension and severance costs¥ 773
494
(23)
740
(472)
¥1,512¥ 852
519
(39)
577
(410)
¥1,499

2009

2008

2.5%
2.5%

2.5%
2.5%

Thousands of
U.S. dollars
2009$ 7,869
5,029
(234)
7,533
(4,805)$15,392

The assumptions used were as follows:—
Discount rates
Expected rates of return on plan assets

10 Income taxes
As described in Note 2(i), the Company and its consolidated subsidiaries recognizes tax effects of temporary
differences between the carrying amounts of assets and liabilities for tax and financial reporting.
Significant components of deferred tax assets and liabilities are as follows:—
Millions of yen
2009
2008

Deferred tax assets:
Excess bonuses accrued
Excess employees’ severance and retirement benefits accrued
Excess loss on impairment of tangible fixed assets (except for leased assets)
Accumulated loss on impairment of leased assets
Other
Gross deferred tax assets
Valuation allowance
Total deferred tax assets
Deferred tax liabilities:
Unrealized gain on securities
Reserve under Special Taxation Measures Law
Total deferred tax liabilities
Net deferred tax assets

25

Thousands of
U.S. dollars
2009¥ 348
6,300
3,493
237
1,390
11,768(4,503)7,265¥ 307
6,512
1,393
264
4,084
12,560(4,856)
7,704$ 3,543
64,13535,5592,413
14,150119,800(45,841)
73,959(214)(5,105)(5,319)¥1,946(654)(5,589)(6,243)¥ 1,461(2,179)(51,970)(54,149)$19,810

Income taxes applicable to the Company consist of corporate income tax, inhabitant taxes and enterprise tax.
Significant differences between the statutory tax rate and the Company’s effective tax rate after applying thedeferred tax accounting for the years ended March 31, 2009 and 2008 were as follows:—

Statutory tax rate
Increase (reduction) in tax resulting from:
Nondeductible expenses including entertainment, etc.
Nontaxable income including dividends received deduction, etc.
Per capita portion of inhabitant taxes
Equity in earnings of affiliates
Elimination of dividends received from consolidated subsidiaries, etc.
Change in valuation allowance related to deferred tax assets
Other
Effective tax rate

2009

2008

40.43%

41.53%

8.08(38.97)
20.93(3.15)
37.42
7.96
3.54
76.24%

3.58(10.39)21.26(1.73)—
136.54(2.68)
188.11%

11 Derivative transactions
The Group utilizes hybrid financial instruments with embedded derivatives for the purpose of utilizing excess
funds and interest rate swaps to manage its exposure to interest-rate fluctuations with respect to its borrowings,
but does not enter into such transactions for highly speculative purpose.
Interest rate swaps are not re-measured at market value but the differentials paid or received under therespective swap agreements are recognized and included as interest expense, as the interest rate swaps meet the
specific hedging criteria under Japanese accounting standards. Also, the Group does not conduct an assessmentof the hedging effectiveness of interest rate swaps because the relationship between the anticipated cash flows
fixed by the swaps and the avoidance of interest rate risk is so clear.
The Group is exposed to equity market price risk, interest rate risk and, credit risk in the event of nonperformance by the counterparties to the derivative transactions, but any such losses would not be material because
the Group enters into transactions only with financial institutions with high credit ratings.
The Group enters into the hybrid financial instruments with embedded derivative transactions within predetermined limit and ‘Ring’ pre-approval process is required for execution and the finance department is
responsible for execution and controls.
Interest rate swap contracts are resolved at the board of directors meeting together with related borrowings
whose interests are hedged items.

26

12 Cash flow statements
Reconciliation of cash and time deposits shown in the consolidated balance sheets and cash and cash equivalents shown in the consolidated statements of cash flows as at March 31, 2009 and 2008 are as follows:—
Millions of yen
2009
2008

Cash and time deposits
Time deposits with maturities exceeding three months
Cash and cash equivalents¥11,498(22)¥11,476¥11,686(48)¥11,638

Thousands of
U.S. dollars
2009$117,052(224)$116,828

13 Finance leases(a) Finance leases other than those which are deemed to transfer the ownership of the leased assets to the lessee•Contents of leased assets: Tangible fixed assets (mainly, machinery, equipment and vehicles for distribution
related business)•Depreciation method: Leased assets are depreciated by the straight-line method over the respective lease
periods without residual values.
(b) Finance lease transactions which commenced prior to April 1, 2008 and do not transfer ownership of theleased assets to the lessee are accounted for as operating lease transactions as before.
The following are pro forma amounts of the acquisition costs, accumulated depreciation, accumulated
impairment losses and net book value of leased property if they were capitalized as of March 31, 2009 and2008 for finance leases accounted for as operating leases:—Millions of yen
2009
2008

Acquisition costs:
Machinery and tools
Other assets
Accumulated depreciation:
Machinery and tools
Other assets
Accumulated impairment losses:
Machinery and tools
Other assets¥12,857
5,866¥18,723¥15,759
5,866¥21,625$130,887
59,717$190,604¥ 8,049
1,518¥ 9,567¥ 8,643
1,269¥ 9,912$ 81,940
15,454$ 97,394

¥

¥

$

¥
Net book value:
Machinery and tools
Other assets

Thousands of
U.S. dollars
2009

—
756
756

¥ 4,808
3,592¥ 8,400

—
756
756

—
7,696
$ 7,696¥ 7,116
3,841¥10,957$ 48,946
36,567$ 85,513¥Amounts of depreciation expense equivalents and interest expense equivalents for the years ended March 31,
2009 and 2008 are as follows:—
Millions of yen
2009
2008

Depreciation expense
Interest expense¥2,279292¥2,567315

Thousands of
U.S. dollars
2009$23,201
2,973

Lease payments relating to finance leases accounted for as operating leases amounted to ¥2,634 million($26,815 thousands) and ¥2,934 million, which were equal to the depreciation expense of the leased assets
computed by the straight-line method over the lease terms, for the years ended March 31, 2009 and 2008,
respectively.

27

In the year ended March 31, 2006, impairment losses on leased assets amounting to ¥756 million wererecorded. Since these leased assets are off-balance-sheet, the equivalent amount is included in “Other long-term
liabilities”. Impairment losses on leased assets is realized over the lease term. In the fiscal year ended March 31,
2009 and 2008, reversal of impairment losses on leased assets amounting to ¥42 million ($428 thousand) wasrecorded.
Future minimum lease payments (including the interest portion thereon) and the balance of impairment
losses on leased assets as at March 31, 2009 and 2008 for finance leases accounted for as operating leases are
summarized as follows:—
Millions of yen
2009
2008

Due within one year
Due over one yearTotal

¥ 2,001
7,073¥ 9,074

Impairment losses on leased assets

¥

588

¥ 2,525
9,074¥11,599¥ 630Thousands of
U.S. dollars
2009$ 20,371
72,004$ 92,375$ 5,986(b) Operating leases
Millions of yen
2009
2008

Due within one year
Due over one year
Total

¥

274
3,848
¥ 4,122¥

Thousands of
U.S. dollars
2009

274
4,121
¥ 4,395$ 2,789
39,173$41,962

Millions ofyen

Thousands of
U.S. dollars

¥ 34
614

$ 3466,251

14 Contingent liabilities
As at March 31, 2009, the Company was contingently liable as follows:—
Notes endorsed
Others15 Revaluation reserve for land
In accordance with the Law concerning Revaluation of Land enacted on March 31, 1998, the Company has
revaluated its owned land used for business operations as at March 31, 2000 and reported a revaluation reserve
for land under “Net assets”.
The revaluated book value of land was determined based on the value of land registered on the cadastres ortheir supplementary records, which are provided by the Local Tax Law under the Law Concerning Revaluationof Land, after making reasonable adjustments.
Difference between the fair market value of revalued land at March 31, 2009
and the revalued book value

Millions ofyen

Thousands of
U.S. dollars¥10,714$109,071

16 Net assets
The Company Law provides that an amount equal to at least 10% of the aggregate amount to be distributed as
cash dividends or cash appropriations must be transferred to the legal reserve until the additional paid-in capital, which is part of the capital surplus account, and the legal reserve, which is part of retained earnings, equals
25% of the common stock account. Transfers from the legal reserve to common stock, additional paid-in capital, and other reserves may be made by resolution of the shareholders. Under the Company Law, distributionsof reserves to shareholders may be made at any time by resolution of the shareholders. The Company’s Articles
of Incorporation also provide that the Board of Directors may make distributions to shareholders based on a
resolution of the Board of Directors, provided that such distributions are limited to once per fiscal year.

28

(a) Information concerning changes in net assets

Treasury stock
Class of shares

Common stock (shares)

At March 31, 2008

Increase

Decrease

At March 31, 2009

6,765,163

59,871

21,424

6,803,610

Reason for the change:
The increase attributable to the purchase of shares less than one unit:
59,871 shares
The decrease attributable to sales of shares in the Company owned by a consolidated subsidiary: 21,424 shares
Stock acquisition rights
Number of shares to be issued or transferred upon exercise of stock acquisition rights
Class of shares to beissued or transferred
upon exercise of stockacquisition rights

Company name

Tonami
Holdings
Co., Ltd.

Stock acquisitionrights granted
in 2004

Commonstock

At March
31, 2008

8,012,820

Increase—

Decrease—

At March
31, 2009

Balance at
March 31, 2009
(millions of yen)

8,012,820

The number of shares to be issued or transferred upon exercise of stock acquisition rights is the number of
exercisable stock acquisition rights.
Stock acquisition rights granted in 2004 pertain to yen-denominated convertible bond type-bonds withstock acquisition rights.
(b) Stock options(1) Details of the stock options
Company nameDate of resolution
Category and number of individuals to whom
stock options were granted*2

Class of shares and number of stock options
granted (shares)*1 and 2
Grant dateConditions for vesting
Eligible service period
Exercisable period

Tonami Holdings Co., Ltd.
June 29, 2005
Directors of the Company: 12
Corporate auditors of the Company: 5
Executive officers of the Company: 11
Chairmen and presidents of consolidated subsidiaries who weredeemed eligible by the directors of the Company: 22
Common stock: 1,340,000
August 9, 2005
Not definedNot defined
From July 1, 2007, to June 30, 2010

Notes:
1. The number is converted to the number of shares for presentation.
2. Individuals to whom stock options were granted and the number of stock options granted are those at thetime of resolution.

29—

(2) Scale of stock options and changes
1) Number of stock options
Company nameDate of resolution
Prior to vesting
At beginning (shares)
Granted (shares)
Expired (shares)
Vested (shares)
Unvested (shares)
After vesting
At beginning (shares)
Vested (shares)
Exercised (shares)
Expired (shares)
Unexercised (shares)

Tonami Holdings Co., Ltd.
June 29, 2005
—
—
—
—
—
1,130,000——
90,0001,040,000

2) Unit priceCompany nameDate of resolution
Exercise price (yen)Average stock price upon exercise (yen)Fair value on the grant date (yen)Tonami Holdings Co., Ltd.
June 29, 2005
393——

17 Supplementary income information
Supplementary income information for the years ended March 31, 2009 and 2008 is as follows:—
Millions of yen
2009
2008

Depreciation expenses
Lease and rental

Thousands of
U.S. dollars
2009¥2,594
6,312¥2,8486,456$28,993
65,72318 Amounts per share
Amounts per share of common stock for the years ended March 31, 2009 and 2008 were as follows:—
Yen

Net income (loss) per share:
Basic
DilutedCash dividends
Net assets per share:

2009

2008

¥ 2.692.47
5.00¥487.51¥(10.03)—
6.00¥499.38

U.S. dollars
2009$0.0274
0.02510.0509$ 4.9629

Although dilutive securities were outstanding, diluted net income per share for the year ended March 31, 2008
was not disclosed because of the net loss in this year.
Cash dividends per share represent the cash dividends paid during the respective years together with theinterim cash dividends paid.

30

Basis for the calculation of net assets per share for the years ended March 31, 2009 and 2008 were as follows:—
Thousands of
U.S. dollars
2009

Millions of yen
2009
2008

Total net assets as reported on the consolidated balance sheets
Deduction:
Adjusted net assets allocated in common stock
Minority interests
Number of shares of common stock issued
Number of shares of common stock in treasury
Number of shares of common stock outstanding at the end ofyear on which net assets per share is calculated¥45,962$456,907

44,26945,366613
596
Shares97,610,118 97,610,118
6,803,610
6,765,163

450,6676,240¥44,882

90,806,508

90,844,955

Basis for the calculation of basic and diluted net (loss) income per share for the years ended March 31, 2009
and 2008 was as follows:—
Thousands of
U.S. dollars
2009

Millions of yen
2009
2008

Net income (loss) available to shareholders of common stock:
Net income (loss)
Net income (loss) not available to shareholders of common stock(of which appropriation of bonuses to directors
and corporate auditors)
Net income (loss) available to shareholders of common stock
Weighted-average number of shares of common stock outstanding (shares)
Diluted net income available to shareholders of common stock:
Adjustments to net income:(of which commission for bonds)
Incremental number of shares of common stock(of which stock acquisition rights)
Common stock equivalents not included in calculation ofdiluted net income per share due to their non-dilutive effect¥(911)—$2,484
—

(—)
(—)
244
¥(911)
90,822,202 90,881,929

(—)
2,484

—
(—)
—
(—)

—
(—)

¥244
—

—
(—)
8,012,820(8,012,820)(Stock option)
Stock options approved at theannual shareholders’ meetingof the Company held on June29, 2005(The number of stock acquisition rights was 1,040.)(Stock option)
Stock options approved at theannual shareholders’ meetingof the Company held on June29, 2005(The number of stock acquisition rights was 1,130.)(Convertible bond-typebonds with stock acquisitionrights)Yen-denominated convertiblebond-type bond with stockacquisition rights due Sep 30,
2009(face amount: ¥2,500 million)

19 Subsequent events
Cash dividends

The annual shareholders’ meeting of the Company, which was held on June 26, 2009, duly approved the payment of dividends as followed:—
Cash dividends (¥2.00 per share)

31

Millions ofyen

Thousands of
U.S. dollars¥182$1,853

20 Segment information
The Company’s business segments consist of logistics related services classified as Logistics, information processing operations classified as Information processing, and other services classified as Others.
A summary of segment information by industry segment for the years ended March 31, 2009 and 2008 was
as follows:—
For the year ended March 31, 2009

Millions of yen
Logistics

Information
processing¥114,646
17
114,663
114,901¥ (238)¥2,829
326
3,155
2,720
¥ 435

Eliminations(Notes 1 and 2)

Consolidated¥126,930
8,137
135,067
134,683
¥
384

¥
—
(8,137)(8,137)(8,423)¥ 286¥126,930—
126,930
126,260¥
670¥114,927¥ 2,858¥
145¥ 7,847¥(1,786)
¥ 10
¥
—
¥
3

¥113,141¥ 2,848¥
145¥ 7,850

Eliminations(Notes 1 and 2)

Consolidated

OthersTotal¥ 9,455
7,794
17,24917,062¥ 187

Assets, depreciation, impairment losses and capital expenditures:
Identifiable assets¥ 98,373¥1,471¥15,083
Depreciation¥ 2,570¥ 145¥ 143
Impairment losses
¥
145
¥ —
¥
—
Capital expenditures¥ 7,687¥ 115¥
45

Operating revenues:
Outside customers
Inter segment sales
Total
Costs and expenses
Operating income (loss)

For the year ended March 31, 2008

Millions of yen
Logistics

Information
processing¥117,614
54
117,668
116,831¥
837¥2,446
262
2,708
2,284
¥ 424

OthersTotal¥10,128
7,550
17,67816,929¥ 749¥130,188
7,866
138,054
136,044¥ 2,010¥
—(7,866)(7,866)(7,743)¥ (123)¥130,188—
130,188
128,301¥ 1,887

Assets, depreciation, impairment losses and capital expenditures:
Identifiable assets¥ 89,297¥1,252¥20,827
Depreciation¥ 2,307¥ 163¥ 134
Impairment losses
¥
955
¥ —
¥
16
Capital expenditures¥ 2,054
¥ 77
¥
72

¥111,376¥ 2,604¥
971¥ 2,203¥ 1,135
¥ 10
¥
—
¥
8

¥112,511¥ 2,594¥
971¥ 2,211

Eliminations(Notes 1 and 2)

Consolidated

Operating revenues:
Outside customers
Inter segment sales
Total
Costs and expenses
Operating income

For the year ended March 31, 2009

Operating revenues:
Outside customers
Inter segment sales
Total
Costs and expenses
Operating income (loss)

Thousands of U.S. dollars
Logistics

Information
processing$1,167,118
173
1,167,291
1,169,714$ (2,423)$28,800
3,319
32,11927,690$ 4,429

Others$ 96,254 $1,292,172
79,344
82,836
175,598 1,375,008
173,694 1,371,098$ 1,904 $
3,910

Assets, depreciation, impairment losses and capital expenditures:
Identifiable assets$1,001,456$14,975$153,548
Depreciation$ 26,163$ 1,476$ 1,456
Impairment losses
$
1,476
$
—
$
—
Capital expenditures$ 78,255$ 1,171
$
458

32

Total

$1,169,979$ 29,095$
1,476$ 79,884$— $1,292,172(82,836)—(82,836) 1,292,172(85,747) 1,285,351$ 2,911 $
6,821$(18,182)$ 102$—$
31$1,151,797$ 28,993$
1,476$ 79,915

Note 1. Operating cost and expenses included in the column “Eliminations” mainly consist of those charged by
the general affairs and finance divisions of the Company, amounting to ¥87 million ($886 thousand)and ¥182 million for the years ended March 31, 2009 and 2008, respectively.
Note 2. Corporate assets included in the column “Eliminations” mainly consist of surplus working funds (cashand marketable securities), long-term investment funds (investments in securities), and other assets
which belong to the administrative department, amounting to ¥14,115 million ($143,693 thousand) and¥24,816 million for the years ended March, 2009 and 2008, respectively.
Note 3. Change in accounting method(Actuarial gains and losses on severance and retirement benefits)
As discussed in Note 2.g, prior to April 1, 2008, past service costs and actuarial gains and losses had
been recognized over 11 years. However, as a result of the review on the employees’ remaining service
years, the recognition period was changed from 11 years to 10 years effective the year ended March 31,
2009. As a result of this change, as compared to the previous accounting treatment, costs and expenses
of “Logistics”, “Information processing” and “Others” increased by ¥62 million ($631 thousand), ¥0
million ($0 thousand) and ¥2 million ($20 thousand), respectively and operating income increase by
the same amount.
The three business segments mainly consist of the following services:
Logistics . . .

Road haulage, freight forwarding, warehousing, and harbor transport and customs
services

Information processing . . .
Others...

Information processing

Vehicle maintenance, casualty insurance, merchandising and commissioned sales andpurchases, leasing, mail order services, travel inn, carriage of passengers, and otherbusinesses

Neither geographical segment information nor overseas sales have been presented because none of theCompany’s consolidated subsidiaries are domiciled outside Japan, and the Company and its consolidated subsidiaries had no overseas sales for the years ended March 31, 2009 and 2008.

33

Report of Independent Auditors

The Board of Directors
Tonami Holdings Co., Ltd.
We have audited the accompanying consolidated balance sheets of Tonami Holdings Co., Ltd. and consolidated
subsidiaries as of March 31, 2009 and 2008, and the related consolidated statements of operations, changes in
net assets, and cash flows for the years then ended, all expressed in yen. These financial statements are theresponsibility of the Company’s management. Our responsibility is to express an opinion on these financial
statements based on our audits.
We conducted our audits in accordance with auditing standards generally accepted in Japan. Those standards
require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting theamounts and disclosures in the financial statements. An audit also includes assessing the accounting principles
used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in all material respects, the consolidated financial position of Tonami Holdings Co., Ltd. and consolidated subsidiaries at March 31, 2009 and 2008,
and the consolidated results of their operations and their cash flows for the years then ended in conformity
with accounting principles generally accepted in Japan.
The U.S. dollar amounts in the accompanying consolidated financial statements with respect to the year ended
March 31, 2009 are presented solely for convenience. Our audit also included the translation of yen amounts
into U.S. dollar amounts and, in our opinion, such translation has been made on the basis described in Note 1.

June 26, 200934

Consolidated Subsidiaries

Logistics
Company NameBusiness Line

Tonami Transportation Co., Ltd.

Road haulage

Keishin Warehouse Co., Ltd.

Warehousing

Zento Transportation Co., Ltd.

Road haulage

Osaka Tonami Transportation Co., Ltd.

Road haulage

Fukui Tonami Transportation Co., Ltd.

Road haulage

Ishikawa Tonami Transportation Co., Ltd.

Road haulage

Gosei Tonami Transportation Co., Ltd.

Road haulage

Kansai Tonami Transportation Co., Ltd.

Road haulage

Kanto Tonami Transportation Co., Ltd.

Road haulage

Kanagawa Tonami Transportation Co., Ltd.

Road haulage

Ibaraki Tonami Transportation Co., Ltd.

Road haulage

Chukyo Tonami Transportation Co., Ltd.

Road haulage

Shonan Tonami Transportation Co., Ltd.

Road haulage

Kawai Transportation Co., Ltd.

Road haulage

ATS Co., Ltd.

Road haulage

Takefu Transportation Co., Ltd.

Road haulage

Saitama Tonami Transportation Co., Ltd.

Road haulage

Niigata Tonami Transportation Co., Ltd.

Road haulage

Anan Transportation Co., Ltd.

Road haulage

Nationwide Shirobo JSE Courier Co., Ltd.

Road haulage

Tonami Global Logistics Co., Ltd.

Harbor transport service

Information Processing and Others
Company NameBusiness Line

Tonami Trading Co., Ltd.

Trading Company

Toyo Gomu Hokuriku Hanbai Co., Ltd.

Sale of tires

Shogawa Kanko Co., Ltd.

Travel inns

Toyama Jizake Hanbai Co., Ltd.

Sale of liquor

Keishin System Research Co., Ltd.

Development and sale of software

Tonami Staff Support Co., Ltd.

Detached service

Tonami Business Service Co., Ltd.

Financial service

Toyo Tire Toyama shop Co., Ltd.

Sale of tires

Shogawa Pleasure Boat Co., Ltd.

Carriage of passengers

Tonami Automobile Technology Research Institute Co., Ltd.

Automobile technology R&D
35

Board of Directors and Corporate Auditors

Chairman and Representative Director
Yoshihiro Minami
President and Representative Director
Katsusuke Watanuki
Senior Managing Director
Kohichi Kishida
Directors
Shigeki Sakamoto
Yasuo Terabayashi
Yoshinobu Watanabe
Shigeyuki Okada
Yoshimi Nagahara
Kazuo Takata

Standing Corporate Auditors
Mitsuo Matsuda
Masafumi Takebe
Corporate Auditors
Shinichiro Inushima
Toshio Yaeda
Yohji Ishiguro(As of June 26, 2009)

Corporate Data

Issued and Outstanding Shares		
97,610,118 shares

Head Office2-12, Showa-machi 3-chome, Takaoka,
Toyama Prefecture 933-8788, Japan
Phone: (0766) 32-1073
Fax: (0766) 32-1077
Tokyo Office
3-8, Higashinihonbashi 3-chome, Chuo-ku,
Tokyo 103-0004, Japan
Phone: (03) 3664-5403
Fax: (03) 3664-5405
Date of Established

June 1943

Common Stock¥14,183 million

36

Shareholders

7,333

Employees

61(As of March 31, 2009)

2009
Annual Report
For the year ended March 31, 2009

TONAMI HOLDINGS CO., LTD.

TONAMI HOLDINGS CO., LTD.

URL:http://www.tonamiholdings.co.jp/

Printed in Japan on recycled paper