Financial Results for the Second Quarter Ended April 30, 2011
[Japan GAAP] (Consolidated)
Date:

June 6, 2011

Company Name and Code:

Tomoe Engineering Co., Ltd. and Subsidiaries - 6309
(Website: http://www.tomo-e.co.jp/index_e.html)

Stock Exchange Listing:

1st Section, Tokyo Stock Exchange

Head Office:2-2, Osaki 1-chome, Shinagawa-ku, Tokyo, Japan

President:

Noboru Shiono

Investor Relations Contacts:

Natsuhiko Maeda, Director, Accounting and Management Planning Tel: (03) 5435-6512

Date to report Consolidated Quarterly Financial Statement: June 13, 2011
Date for Dividend Payment:

Not applicable to financial quarters.

Preparation of Supplementary Explanatory Materials for Quarterly Operating Results: Yes
Briefing Session for Quarterly Operating Results: Yes (available for institutional investors only)* Any fractional sums less than one million (or one thousand) yen are disregarded.
1. Consolidated Financial Data for the Second Quarter Ended April 30, 2011
(1) Results of Operation (Consolidated)

Quarter Ended April 30, 2011
Quarter Ended April 30, 2010

(Percent: Change from the same quarter of the previous year)
Net Sales
Operating Income
Ordinary Income
Millions ofMillions ofMillions of
Yen
Percent
Yen
Percent
Yen
Percent
22,080
12.8
1,685
2.3
1,796
2.4
19,571
(1.2)
1,647
20.1
1,754
16.9
Net Income

Quarter Ended April 30, 2011
Quarter Ended April 30, 2010

Millions of
Yen
1,059
1,139

Net Income per Share

Fully Diluted Quarterly
Net Income per ShareYen
106.21114.21Yen-

Percent(7.0)
36.0(2) Financial Condition (Consolidated)
Total Assets (A)(Millions of Yen)
Quarter Ended April 30, 2011
30,245
Year Ended October 31, 2010
29,779Net Assets (B)(Millions of Yen)
19,64318,852

Net Assets Ratio(B) / (A) (Percent)
64.0
62.4

Net Assets
per Share (Yen)
1,940.21
1,862.30(Reference) Net assets (not including minority interests):
Second Quarter ended April 30, 2011: 19,360 million yen
Year Ended October 31, 2010: 18,583 million yen
2. Dividend Status(Record Date)
Year Ended October 31, 2010
Year Ending October 31, 2011
Year Ending October 31, 2011 (Prospect)First
Quarter-Interim
Term
0.00
0.00

Annual Dividend (Yen)Third
End ofQuarter
Fiscal Year
35.00

(Note) Correction of the prospected dividend for this quarter: None

-

40.00

Annual35.00
40.00

3. Forecast for Earnings for the Year Ending October 31, 2011 (Consolidated)(Percent: Change from the previous Full Business Year)Net Sales
Operating Income
Ordinary Income(Millions of Yen) (Percent) (Millions of Yen) (Percent) (Millions of Yen) (Percent)
Full Business Year
43,000
10.8
2,270
4.5
2,320
6.5
Net Income
Net Income per Share(Millions of Yen) (Percent)
Yen
Full Business Year
1,320
(2.6)
132.28(Note) Correction of the prospected earnings for this quarter: None
4. Others (For details, refer to “2. Other Information” of [Attachments] on page 4.)(1) Significant changes in subsidiaries during this quarter: None
(Note) Changes in specific subsidiaries in conjunction with a change in the scope of consolidation during thequarterly accounting period.
(2) Adoption of simplified accounting method and the specific accounting method: Yes(Note) Application of simplified accounting method and special accounting method in the preparation of quarterly
consolidated financial statements.
(3) Changes of the principles, procedures, and representation of the accounting policies
1) Change due to revision of accounting standard: Yes
2) Other changes: None
(Note) Changes in accounting principles, procedures and reporting methods pertaining to the preparation of
consolidated quarterly financial statements as stipulated in “Change in the Basis of Presenting Consolidated
Quarterly Financial Statements”).
(4) Number of outstanding shares (Ordinary shares)
1) Number of outstanding shares as of quarter-end and year-end (including treasury stocks)
At April 30, 2011: 10,533,200 shares

At October 31, 2010: 10,533,200 shares

2) Number of treasury stocks as of quarter-end and year-end
At April 30, 2011:

554,486 shares

At October 31, 2010:

554,418 shares

3) Number of average shares (accumulated quarterly total)
At April 30, 2011: 9,978,751 shares

At January 31, 2010: 9,978,861 shares*Disclosure concerning status of implementation of quarterly review procedure
This quarterly earnings report is exempt from the quarterly review procedure based on the Financial Instruments andExchange Act. At the time of disclosure of this quarterly earnings report, the Company has not completed a quarterly
review procedure based on the Financial Instruments and Exchange Act.
*Explanations for appropriate use of the earnings forecast and other special instructions
The forward-looking statements such as a forecast of our financial results described herein are based on theinformation currently available to us and certain assumptions that we believe are reasonable. Actual results could differ
materially due to various factors. Please refer to the Financial Results for the Quarter (Attachments) on Page 4, “1.
Qualitative Information and Financial Statements, etc., (3) Qualitative Information on Consolidated Earnings
Forecast” for the operating results forecast and matters to note when using forward-looking statements.

Table of Contents (Attachments)
1. Qualitative Information on Quarterly Consolidated Operating Results...................................................................2(1) Qualitative Information on Consolidated Operating Results.......................................................................2(2) Qualitative Information on Consolidated Financial Position....................................................................... 3(3) Qualitative Information on Consolidated Earnings Forecast....................................................................... 4
2. Other Information.................................................................................................................................................. 4(1) Summary of Changes in Material Subsidiaries............................................................................................ 4(2) Summary of Simplified Accounting Treatment and Special Accounting Treatment.................................. 4(3) Summary of Changes in the Principle, Procedure, and Representation of the Accounting
Policies............................................................................................................................................................ 4
3. Consolidated Financial Statement......................................................................................................................... 5
(1)
(2)
(3)
(4)
(5)
(6)

Consolidated Quarterly Balance Sheet. ..................................................................................................... 5
Consolidated Quarterly Statements of Income.......................................................................................... 7
Consolidated Quarterly Statements of Cash Flows. .................................................................................. 8
Note on Going Concern Assumption..........................................................................................................10
Segment Information....................................................................................................................................10
Notes for Significant Changes in Shareholder’s Equity...............................................................................10

4. Overseas Net Sales (Reference).........................................................................................................................121

[Qualitative Information and Financial Statements, etc.]
1. Qualitative Information on Quarterly Consolidated Operating Results(1) Qualitative Information on Consolidated Operating Results(a) General operating results
During the second quarter, Japan’s economy was supported by brisk exports that were driven by growth in
newly developing country demand, and continued its trend of gradual improvement toward a sustainable businessrecovery. Following the Tohoku Pacific Offshore Earthquake in mid-March 2011, however, the economy was
negatively affected by electric power shortages that resulted in unavoidable shutdowns to production across awide range of industries, including component manufacturing related to automobiles, electric machinery andelectronic devices.
Under these circumstances, interim period consolidated net sales for the Tomoe Engineering Group as a whole
were 22,080 million yen, 12.8% up from the same period last year. This represented growth in net sales ofcentrifuge equipment for North American oil well drilling and works related to domestic public sector demand in the
Machinery & Equipment Business, and higher net sales of a broad range of commercial products, including thoserelated to residential housing and construction and automobiles, in the Chemical Products Business. Althoughsome restrictions were placed on procurement of certain components in the Machinery & Equipment Business asa result of the earthquake, the ripple effect on product supplies as a whole was limited, and indeed the occurrenceof front-loaded demand over the entire range of domestically handled commercial products in the Chemical
Products Business had the effect of pushing up net sales somewhat at the end of the quarter.
From an earnings perspective, in addition to the increase in income resulting from higher net sales, earnings in
the Chemical Products Business were boosted by the positive effect of the yen’s steady appreciation on allimported materials in this business. On the other hand, this was offset by the inevitable drop in earnings in the
Machinery & Equipment Business following the especially highly profitable domestic repair projects handled during
the same period one year ago. As a result, consolidated operating income for the Tomoe Engineering Groupwas 1,685 million yen, 2.3% up from the same period of the previous consolidated fiscal year. With the additionof other non-operating income, including the higher gain on valuation of derivatives related to currency swap
transactions, ordinary income edged up 2.4% from the level one year earlier to 1,796 million yen. Net income
was 1,059 million yen, 7.0% down from the same period one year earlier, reflecting a gain on sales of investment
securities of 159 million yen in the same period of the previous year, and an extraordinary loss of 32 million yen
reported in the current period that was related to asset retirement obligations.
(b) Machinery & Equipment BusinessIn the Machinery & Equipment Business, consolidated net sales were 7,116 million yen, 13.5% up from thesame period last year. Sales of centrifuge equipment for oil well drilling in North America and works related todomestic public sector demand were higher, even as domestic sales of machinery and equipment weakened. In
addition, sales in China of centrifuge equipment for a vinyl chloride plant and abrasive grain slurry recycling
equipment for use in photovoltaic cell manufacturing also remained nearly steady. Following the earthquake,some restrictions appeared on the procurement of certain products, but the impact on the supply of products
overall was limited. In terms of earnings, net sales in the same period one year ago included high-profit margin
sales on a domestic repair project involving heavily depleted equipment, and operating income for this businessfell 8.5% year-on-year to 959 million yen.

2

(c) Chemical Products BusinessIn the Chemical Products Business, sales rose despite the loss of some commercial distribution activities
related to the plastic compounding business in Shenzhen, China and a slackening in semiconductor-relatedmaterials demand, as supply and demand continued to improve in other domestic sectors, especially for items
used in residential housing and construction and products for automobiles. As a result, consolidated net sales
were 14,963 million yen, up 12.5% from the same period last year, with industrial materials and functional
materials serving as growth engines. As a result of the earthquake, this business suffered small losses, including
the scrapping and write-off of some inventory assets, but the effect was limited and the subsequent occurrence offront-loaded demand for a wide range of commercial products helped to push up net sales somewhat at the end of
the period. From an earnings standpoint, consolidated operating income rose 21.2% from the same period of theprevious year to 726 million yen, against the backdrop of the positive effect of the stronger yen on all imported
materials, which continued mainly throughout the first quarter, and the growth in sales of somewhat highadded-value commercial products for residential housing and construction and the automotive market.
(2) Qualitative Information on Consolidated Financial Position:(a) Assets, Liabilities, and Net Assets
Assets at the end of the consolidated second quarter under review were 30,245 million yen, 465 million yen or
1.6% up from the balance at the end of the previous consolidated fiscal year (October 31, 2010). This mainlyreflected a decrease in cash and deposits because of tax payments and the provision for bonuses, and anincrease in current assets because of the growth in notes and accounts receivable-trade, especially for theChemical Products Business, against the backdrop of higher net sales, as well as an increase in inventories,
including Chemical Products Business products, which similarly rose because of stronger sales.
On the other hand, total liabilities were 10,601 million yen, 3.0% down compared with the end of the previous
consolidated fiscal year. Although notes and accounts payable-trade were naturally higher because of theincrease in net sales, mainly in the Machinery & Equipment Business, current liabilities were lower because of thelarge decreases in the balances of income taxes payable and reserve for bonuses and a reversal of the provision
for directors’ retirement benefits.
Net assets were 19,643 million yen, 791 million yen or 4.2% up from the end of the previous consolidated fiscal
year. This reflected higher retained earnings from year-to-date net income and the increase in valuation andtranslation adjustments, including an increase in the valuation difference on other investment securities.
Because the growth in net assets exceeded the increase in total assets as discussed above, the equity ratio at
the end of the consolidated second quarter under review increased by 1.6 points compared with the end of theprevious consolidated fiscal year to 64.0%.
(b) Cash Flow Status
Cash and cash equivalents as of the end of the consolidated second quarter under review decreased by 3,203
million yen to 2,905 million yen from the end of the previous consolidated fiscal year. The status of each cash flow andtheir factors during the second quarter are as follows:(Net Cash Provided by (Used in) Operating Activities)
Cash flow used in operating activities was 309 million yen. Income before income taxes and minority interests
was 1,793 million yen, and notes and accounts payable-trade increased by 444 million yen, but notes andaccounts receivable-trade and inventories increased by 866 million yen and 395 million yen, respectively, while thedecrease in provision for bonuses was 394 million yen and income taxes paid amounted to 949 million yen.

3

(Net Cash Provided by (Used in) Investing Activities)
Cash used in investing activities was 2,517 million yen in total, because net purchases of time deposits of 2,520
million yen in addition of purchases of tangible fixed assets of 121 million yen.
(Net Cash Provided by (Used in) Financing Activities)
Net cash used in financing activities was 362 million yen in total because of lease obligations payment in additionof cash dividends of 349 million yen.
(3) Qualitative Information on Consolidated Earnings Forecast:Through its disruption of the supply chain and the problem of electric power shortages, the Tohoku PacificOffshore Earthquake that struck Japan in March 2011 is expected to have a considerable impact in various forms
on future domestic production activity. Given this situation, there is a risk in the Machinery & Equipment Businessthat procurements and deliveries of some component will be delayed in the stricken area, but we anticipate thespread of these difficulties to full-year operating results will not be material. Additionally, in the Chemical Products
Business, diminished demand is envisaged mainly for commercial products used for the manufacture ofautomobiles and electronic components such as semiconductors. Conversely, for commercial products for otheruses including residential housing and construction, front-loaded demand is projected to continue, and recovery
demand is expected to climb, and overall the earthquake’s effect on full-year operating results is expected of beimmaterial.
Based on the above considerations and other factors, the Tomoe Engineering Group has not revised thefull-year operating results forecast for the fiscal year ending October 31, 2011 released on December 10, 2010.
In addition, the operating results forecasts described above are based on information available to the Company atthe time the forecasts were prepared and assumptions judged to be reasonable. Actual operating results might differ
from these forecasts depending upon further emerging earthquake’s effect, changes in the domestic and international
economic trends, and other various factors.
2. Other Information(1) Summary of Changes in Material Subsidiaries: None
(2) Summary of Simplified Accounting Treatment and Special Accounting Treatment
Calculation method of depreciation of noncurrent assets:
For the assets adopting the declining-balance method, we adopt the method to calculate the amount of depreciation
for the consolidated fiscal year by dividing the period proportionally.
(3) Summary of Changes in the principle, procedure, and representation of the accounting policies concerning the
preparation of consolidated financial statements
Application of the “Accounting Standard for Asset Retirement Obligations”
Beginning from the first quarter of the current consolidated fiscal year, the Company has adopted the“Accounting Standard for Asset Retirement Obligations” (Accounting Standards Board of Japan Statement No. 18
dated March 31, 2008 and the “Guidance on Accounting Standard for Asset Retirement Obligations” (AccountingStandards Board of Japan Guidance No. 21 dated March 31, 2008).
As a result of this change, operating income and ordinary income were 4,027,000 yen lower, and income
before income taxes and minority interests was 36,713,000 yen lower, than what they otherwise would have been
had the accounting standard used in previous consolidated fiscal years been applied.

43. Consolidated Financial Statement(1) Consolidated Quarterly Balance Sheets(Thousands of Yen)
End of Second Quarter

Summarized Balance Sheet(April 30, 2011)

for End of Previous Year

Assets(October. 31, 2010)

Current Assets
Cash and Deposits

5,339,427

6,109,100

Notes and Accounts Receivable-Trade

14,224,313

13,324,042

Merchandise and Finished Goods

3,207,506

3,055,662

Work in Process

1,454,554

1,400,107

Raw Materials and Supplies

591,303404,117

Deferred Tax Assets

512,293

618,454

Others279,776

164,937

Allowance for Doubtful Accounts(9,365)(29,006)

25,599,809

25,047,414

2,534,787

2,527,155

Accumulated Depreciation(1,547,913)(1,505,179)

Buildings and Structures, Net

986,874

1,021,976

Machinery, Equipment and Vehicles

3,483,702

3,435,773

Accumulated Depreciation(2,717,748)(2,623,977)
811,796Land

765,954970,253

Lease Assets

76,789970,253
76,962

Accumulated Depreciation(48,903)(39,169)

Lease Assets, Net

27,88537,793

1,038,455

986,860

Accumulated Depreciation(923,877)(895,734)

Others, Net

114,577

91,1262,865,545

2,932,946

71,02380,245Investment Securities

756,164

697,362

Guarantee Deposits

363,249

412,798

Deferred Tax Assets

74,91987,043

Others595,677

602,102

Allowance for Doubtful Accounts(80,892)(80,377)

Total Investments and Other Assets

1,709,118

1,718,929

Total Noncurrent Assets

4,645,687

4,732,121

Total Assets

30,245,496

29,779,536

Total Current Assets
Noncurrent Assets
Property, Plant and Equipment
Buildings and Structures

Machinery, Equipment and Vehicles, Net

OthersTotal Property, Plant and Equipment
Intangible Assets
Investments and Other Assets5

(Thousands of Yen)
End of Second Quarter

Summarized Balance Sheet(April 30, 2011)

for End of Previous Year

Liabilities and Net Assets(October. 31, 2010)

Liabilities
Current Liabilities
6,937,581

6,477,307

Short-Term Loans Payable

581,673585,923

Lease Obligations

19,002

24,132

Accounts Payable-Others

492,063551,681

Income Taxes Payable

607,393961,213

Advances Received

425,434

417,875

Provision for Bonuses

716,336

1,111,306

Provision for Directors' Bonuses

30,69985,555

Allowance for Product Warranty

369,025

186,442

Others300,109327,562

10,479,318

10,729,000

Lease Obligations

14,23722,553

Provision for Retirement Benefits

37,53232,538Provision for Directors' Retirement Benefits

31,760142,760

Deferred Tax Liabilities

39,028108

Total Noncurrent Liabilities

122,557

197,960

Total Liabilities

10,601,875

10,926,961

Capital Stock

1,061,210

1,061,210

Capital Surplus

1,483,410

1,483,410

Retained Earnings

17,323,668

16,613,067

Treasury Stock(363,293)(363,194)

19,504,994

18,794,492

Valuation Difference on Available-for-Sale Securities

92,13053,585

Deferred Gains or Losses on Hedges(228)(7,411)

Foreign Currency Translation Adjustment(236,095)(257,190)

Total Valuation and Translation Adjustments(144,193)(211,016)

282,818

269,098

Total Net Assets

19,643,620

18,852,575

Total Liabilities and Net Assets

30,245,496

29,779,536

Notes and Accounts Payable-Trade

Total Current Liabilities
Noncurrent Liabilities

Net Assets
Shareholders’ Equity

Total Shareholders’ Equity
Valuation and Translation Adjustments

Minority Interests6(2) Consolidated Quarterly Statements of Income (First Quarter)(Thousands of Yen)

Second Quarter Ended

Second Quarter Ended

April 30, 2010

April 30, 2011

Net Sales

19,571,236

22,080,437

Cost of Sales

14,945,389

17,283,023

4,625,846

4,797,413

2,978,745

3,111,681

1,647,100

1,685,732

Interest income

2,182

5,477

Dividends Income

5,383

7,292

Rent Income

10,512

6,177

Foreign Exchange Gains

55,8209,038

Gain on Valuation of Derivatives

31,53473,959Others

22,23328,745

127,666

130,690

4,508

3,814

40

35

Commission Fee

8,871

8,463

Others

6,812

7,743

Total Non-Operating Expenses

20,23320,056

Ordinary Income

1,754,534

1,796,366

Gain on Sales of Investment Securities

159,212

12,590

Reversal of Allowance for Doubtful Accounts

30,335

19,650189,548

32,241

Loss on Retirement of Noncurrent Assets

297-

Loss on Valuation of Investments Securities

10,190

714

-

1,300

-

32,685

10,4881,933,594

34,6991,793,908

Income Taxes-Current

784,037

596,159

Income Taxes-Deferred

3,432

133,009787,470

729,168-

1,064,739

6,482

4,881

1,139,640

1,059,858

Gross Profit
Selling, General and Administrative Expenses
Operating Income
Non-Operating Income

Total Non-Operating Income
Non-Operating Expenses
Interest Expenses
Loss on Sales of Notes Payable

Extraordinary Income

Total Extraordinary Income
Extraordinary Losses

Allowance for Doubtful Accounts
Loss affected by application of the AccountingStandard for Asset Retirement Obligations
Total Extraordinary Losses
Income before Income Taxes and Minority Interests

Total Income Taxes
Income before minority interests
Minority Interests in Losses
Net Income7(3) Consolidated Quarterly Statements of Cash Flows(Thousands of Yen)
Second Quarter
Ended
April 30, 2011

Second Quarter
Ended
April 30, 2010
Net Cash Provided by (Used in) Operating Activities
Income before Income Taxes and Minority Interests

297

1,793,908
192,294(394,938)(54,856)
182,582
5,000(111,000)(19,125)714(12,769)
3,814(4,976)(12,590)--

32,685

Loss (Gain) on Valuation of Derivatives(31,534)

Decrease (Increase) in Notes and Accounts Receivable-Trade(316,695)

Decrease (Increase) in Inventories(133,281)

Increase (Decrease) in Notes and Accounts Payable-Trade704,622

Increase (Decrease) in Accounts Payable-Others(47,096)

Increase (Decrease) in Advances Received

42,544

Increase (Decrease) in Accrued Consumption Taxes(18,918)

Others, Net(97,639)(73,959)(866,823)(395,853)
444,443(42,375)
6,803
58,813(95,721)

1,933,594

Depreciation and Amortization

189,053

Increase (Decrease) in Provision for Bonuses(85,932)

Increase (Decrease) in Provision for Directors' Bonuses(16,227)

Increase (Decrease) in Allowance for Product Warranty(16,566)
5,343

Increase (Decrease) in Provision for Retirement Benefits
Increase (Decrease) in Provision for Directors' Retirement Benefits-

Increase (Decrease) in Allowance for Doubtful Accounts(31,946)

Loss (Gain) on Valuation of Investment Securities

10,190Interest and Dividends Income(7,566)

Interest Expenses

4,508

Foreign Exchange Losses (Gains)(6,395)

Loss (Gain) on Sales of Investment Securities(159,212)

Loss (Gain) on Retirement of Noncurrent Assets
Loss affected by application of the Accounting Standard for
Asset Retirement Obligations

Sub total

1,921,141

636,0707,889Interests and Dividends Income Received
Interest Expenses Paid

5,823
(11,647)

Income Taxes Paid (-) or Returned

161,378(3,821)(949,907)

2,076,695(309,769)(2,378,526)

Net Cash Provided by (Used in) Operating Activities
Net Cash Provided by (Used in) Investing Activities
Deposit of Time Deposits

Payments of Loans Receivable

1,514(1,875)

Guarantee Deposits (Increase)(6,589)Others, Net(1,438)(2,520,110)
100,000
120(121,568)(2,320)17,824(6,118)3,583(270)
12,708(1,270)(2,260,698)(2,517,422)

Proceeds from Withdrawal of Time Deposits-

Proceeds from Sales of Property, Plant and Equipment(77,511)(6,050)Purchase of Property, Plant and Equipment
Purchase of Intangible Assets
Proceeds from Sales of Investment Securities

217,345(7,566)

Purchase of Investment Securities
Collection of Loans Receivable

Net Cash Provided by (Used in) Investment Activities
8

(Thousands of Yen)
Second Quarter

Second Quarter

Ended

Ended

April 30, 2010

April 30, 2011

Net Cash Provided by (Used in) Financing Activities
Repayments of Lease Obligations(14,244)(13,447)

Repayment of Long-Term Loans Payable(60,000)

-

(148)

(98)

(299,367)(349,257)(6,740)-(380,500)(362,803)

29,140(13,300)(535,363)(3,203,295)

4,447,793
3,912,430

6,109,100
2,905,805

Purchase of Treasury Stock
Cash Dividends Paid
Net Cash Provided by (Used in) Financing Activities
Cash and Cash Equivalents
Effect of Exchange Rate Change on Cash and Cash Equivalents
Net Increase (Decrease) in Cash and Cash Equivalents
Cash and Cash Equivalents at Beginning of Period
Cash and Cash Equivalents at End of Period9(4) Note on Going Concern Assumption
None.
(5) Segment Information(Segment by type of business)
Second Quarter Ended April 30, 2010

(Thousands of Yen)
Machinery &ChemicalEquipment

Products

Business

Business

6,272,573

13,298,663

19,571,236--

Deletion or
Total

Total

Consolidated

Company

Net Sales(1) Net Sales to UnaffiliatedCustomers(2) Internal Net Sales among
Segments or Amount Transferred--

19,571,236

-

Total

6,272,573

13,298,663

19,571,236-

19,571,236

Operating Income

1,047,988

599,112

1,647,100-

1,647,100(Notes)1. Business classification is by aggregate sales classification.
2. Main products and goods in each business:(1) Machinery & Equipment Business: Various types of centrifuge and other machinery(2) Chemical Products Business: Synthetic resin, industrial materials and other chemical products(Segment by Location)
Second Quarter Ended April 30, 2010

(Thousands of Yen)
Deletion or
Japan

Asia

Total

Total

Consolidated

Company
Net Sales(1) Net Sales to Unaffiliated Customers

18,024,984

1,546,251

19,571,236-

19,571,236

Amount Transferred

200,345

88,388288,734(288,734)

-

Total

18,225,330

1,634,639

19,859,970(288,734)

19,571,236

1,632,071

15,426

1,647,498(397)

1,647,100(2) Internal Net Sales among Segments or

Operating Income(Notes)1. Areas including countries or regions are determined based on their degree of geographical proximity.
2. Main countries or regions included in the areas other than Japan:
Asia: China, Korea and Indonesia

10[Segment Information](Supplemental information)
Beginning from the first quarter of the current consolidated fiscal year, the Company has adopted the “AccountingStandard for Disclosures about Segments of an Enterprise and Related Information” (Accounting Standards Board ofJapan Statement No. 17, revision dated March 27, 2009 and the “Guidance on Accounting Standard for Disclosuresabout Segments of an Enterprise and Related Information” (Accounting Standards Board of Japan Guidance No. 20
dated March 31, 2008).
1 Summary of Reporting Segments
TOMOE Engineering Co., Ltd. has established two operational headquarters. These operational headquarters aredeveloping their business activities by planning comprehensive domestic and overseas strategies for the respective
manufactured and commercial products they handle.
We therefore have assumed these two businesses, referred to as the “Machinery & Equipment Business” and the“Chemical Products Business”, as our company reporting segments. The Machinery & Equipment Business mainly
manufactures and sells centrifuge decanters, and the Chemical Products Business mainly manufactures, stocks andsells chemical industry products.
The Company’s reporting segments are those units of the Company’s for which discrete financial information isavailable and for which the Board of Directors regularly conducts a review for the purpose of making decisions about
resources to be allocated to the segments and assess the segments' performance.
2 Information Pertaining to the Amount of Net sales or Net Loss of Each Reporting Segment
Second Quarter Ended April 30, 2011

(Thousands of Yen)
Reported Segment
Machinery & Equipment

Chemical Products

Business

Business

Total

Grand Total

Net Sales
Net Sales to UnaffiliatedCustomers

7,116,963

14,963,474

22,080,437

22,080,437

-

-

-

-

7,116,963

14,963,474

22,080,437

22,080,437

Internal Net Sales among
Segments or AmountTransferred
Total

Segment Profit
959,310
726,421
1,685,732
1,685,732(Note) The total amount of segment profit is identical to the operating income reported on the Quarter Statements ofConsolidated Income.
(6) Notes for Significant Changes in Shareholder’s Equity
Second Quarter Ended April 30, 2011
None

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4. Overseas Net Sales (reference)
Second Quarter Ended April 30, 2010

(Thousands of Yen)
Asia

I. Overseas Net Sales

Total

3,205,719

295,046

3,500,765--

19,571,236

16.4

1.5

17.9

II. Consolidated Net Sales
III. Ratio of Overseas Net Sales to Consolidated Net Sales (%)

Other Regions(Notes)1. Areas including countries or regions are determined based on their degree of geographical proximity.
2. Main countries or regions included in the areas:(1) Asia: China, Korea, Taiwan and Indonesia(2) Other regions: America and Europe
3. Overseas net sales are sales of our company and subsidiaries made in countries and regions other than Japan.
Second Quarter Ended April 30, 2011

(Thousands of Yen)
Asia

I. Overseas Net Sales
II. Consolidated Net Sales
III. Ratio of Overseas Net Sales to Consolidated Net Sales (%)

Other Regions

Total

3,483,165

945,668

4,428,833--

22,080,437

15.8

4.3

20.1

(Notes)1. Areas including countries or regions are determined based on their degree of geographical proximity.
2. Main countries or regions included in the areas:(1) Asia: China, Korea, Taiwan and Indonesia(2) Other regions: America and Europe
3. Overseas net sales are sales of our company and subsidiaries made in countries and regions other than Japan.

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