Financial Results for the Third Quarter Ended July 31, 2010
[Japan GAAP] (Consolidated)
Date:

September 3, 2010

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: September 10, 2010
Date for Dividend Payment:
Preparation of Supplementary Explanatory Materials for Quarterly Operating Results: No
Briefing Session for Quarterly Operating Results: Not planned.
* Any fractional sums less than one million (or one thousand) yen are disregarded.
1. Consolidated Financial Data for the Third Quarter Ended July 31, 2010
(1) Results of Operation (Consolidated)

Quarter Ended July 31, 2010
Quarter Ended July 31, 2009

(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
28,843
4.4
1,778
34.6
1,823
24.7
27,6241,321
1,462
Net Income

Quarter Ended July 31, 2010
Quarter Ended July 31, 2009

Millions of
Yen
1,088
825

Net Income per Share

Fully Diluted Quarterly
Net Income per ShareYen
109.0982. 74

Yen-

Percent
31.8-(2) Financial Condition (Consolidated)
Total Assets (A)(Millions of Yen)
Quarter Ended July 31, 2010
28,619Year Ended October 31, 2009
26,412

Net Assets (B)(Millions of Yen)
18,695
17,921Net Assets Ratio(B) / (A) (Percent)
64.3
66.8

Net Assets
per Share (Yen)
1,845.29
1,767.97(Reference) Net assets (not including minority interests):
Third Quarter ended July 31, 2010: 18,413 million yen
Year ended October 31, 2009: 17,642 million yen
2. Dividend Status(Record Date)
Year Ended October 31, 2009
Year Ending October 31, 2010
Year Ending October 31, 2010 (Prospect)First
Quarter-Interim
Term
0.00
0.00

Annual Dividend (Yen)Third
End ofQuarter
Fiscal Year
30.00
35.00

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

Annual30.00
35.00

3. Forecast for Earnings for the Year Ending October 31, 2010 (Consolidated)(Percent: Change from the previous quarter)
Net Sales
Operating Income
Ordinary Income(Millions of Yen) (Percent) (Millions of Yen) (Percent) (Millions of Yen) (Percent)
Full Business Year
39,100
7.7
2,030
28.1
2,100
24.5
Net Income
Net Income per Share(Millions of Yen) (Percent)
Yen
Full Business Year
1,300
30.9
130.28(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 July 31, 2010: 10,533,200 shares

At October 31, 2009: 10,533,200 shares

2) Number of treasury stocks as of quarter-end and year-end
At July 31, 2010: 554,418 shares

At October 31, 2009: 554,298 shares

3) Number of average shares (accumulated quarterly total)
At July 31, 2010: 9,978,835 shares

At July 31, 2009: 9,978,927 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 Qualitative Information on Quarterly Consolidated Earnings
Forecast on Page 4 of the Financial Results for the Quarter (Attachments) to this quarterly earnings report for theconditions used as assumptions for the operating results forecast and matters to note when using forward-looking
statements.

Table of Contents (Attachments)
1. Qualitative Information and Financial Statements, etc..........................................................................................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...............................................................................141

[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 third quarter consolidated year-to-date period, Japan’s economy was supported by several factors
including growth in exports and the effects of economic stimulus measures. Indications that production levels ingeneral were improving steadily, and that capital investment was emerging from a prolonged slump, could be
noted as well. Hampered by the fragile employment situation and slow improvement in the deflationary trend,
however, as well as by appreciation of the yen that was triggered by worries about fiscal and monetary policies in
Europe and concerns of a US economic slowdown, this failed to produce an accelerating level of activity that would
result in a self-sustaining economic recovery. Under such circumstances, net sales for the Chemical Products
Business exhibited growth resulting from improvements in the supply and demand situation, including both theelectronics materials sector and plastics sector, but in the Machinery & Equipment Business, lower sales proved
inevitable in the face of conditions that ranged from lackluster domestic private sector demand to an anticipateddrop following completion of several large-scale projects for overseas customers in the prior year. Because
higher sales for the Chemical Products Business exceeded the sales decline in the Machinery & Equipment
Business, for the Tomoe Engineering Group as a whole, consolidated net sales through the end of the third quarter
were 28,843 million yen, 4.4% up from the same period one year earlier. From an earnings perspective, total
consolidated operating income for both businesses improved more rapidly than the growth in net sales, especiallybecause of higher sales of parts and repairs in high margin sectors, even in the Machinery & Equipment Businesswhere sales declined, rising 34.6% year-on-year to 1,778 million yen. Cumulative ordinary income was 1,823
million yen, 24.7% up from the same period last year because of a small increase in the loss on valuation of derivatives,and consolidated third quarter year-to-date net income, including the contribution from the gain on sale of investment
securities, rose to 1,088 million yen, 31.8% up from the same period last year.

(b) Machinery & Equipment BusinessIn the Machinery & Equipment Business, year-to-date consolidated net sales were 8,482 million yen, 8.6%
down from the same period last year. Although net sales from domestic public sector demand were higher forequipment and systems as well as for parts and repairs, net sales resulting from domestic private sector demandremained slack and were lower than in the prior year, when sales were boosted by the shipment of large-scalecentrifuges for the chemical industry in Poland. Cumulative operating income, however, exhibited growth 5.0% up
from the same period one year earlier to 857 million yen, boosted by a greater tendency than in most years for
projects with relatively high profit margins centered on net sales of parts and repairs to be concentrated in the first
three quarters, and the effect of cutbacks in expenses.
While the decline in net sales from domestic private sector demand was centered on the postponement or lossof some business projects, compared with prior years such movements were somewhat more notable during theconsolidated third quarter year-to-date period.
(c) Chemical Products BusinessWith regard to the Chemical Products Business, a rising sales trend primarily in the electronics materials sector,
plastics sector and fine chemicals sector and driven by a general improvement in supply and demand was clearly
evident, while overseas, sales at Tomoe Engineering (Hong Kong) Co., Ltd. expanded steadily.
2

As a result, cumulative consolidated net sales for this business as a whole were 20,360 million yen, 11.0% up
compared with the same period last year. In particular, the growth rate of the electronics materials sector against
the backdrop of a recovery in semiconductor-related demand was conspicuous, and served as one factor supporting
the growth rate of total net sales for this business. Because net sales of commercial products with relatively highadded value in the electronics materials, industrial materials and performance materials sectors increased as apercentage of total net sales, and the improvement trend resulting from appreciation of the yen continued to affect allimported commercial products, total consolidated operating income for this business increased more rapidly than
the growth in net sales and totaled 921 million yen, 82.5% up compared with the same period last year.
(2) Qualitative Information on Consolidated Financial Position:(a) Assets, Liabilities, and Net Assets
Assets at the end of the consolidated third quarter under review were 28,619 million yen, 2,207 million yen or
8.4% up from up the end of the previous consolidated fiscal year (October 31, 2009), mainly due to increases incurrent assets including cash and deposits, notes and accounts receivable-trade, and inventories.
On the other hand, total liabilities were 9,924 million yen, 1,433 million yen or 16.9% up from the balance at theend of the previous consolidated fiscal year. This mainly reflected an increase in current liabilities such as notes
and accounts payable-trade and income taxes payable. Net assets rose 774 million yen (4.3%) compared with theend of the previous consolidated fiscal year to 18,695 million yen, mainly because of an increase in retained
earnings.
As a result, the net assets ratio at the end of the consolidated third quarter under review decreased by 2.5 points to
64.3% from the end of the previous consolidated fiscal year.
(b) Cash Flow Status
Cash and cash equivalents as of the end of the consolidated third quarter under review decreased by 5 million yen
to 3,667 million yen from the end of the previous consolidated fiscal year. The status of each cash flow and theirfactors during the third quarter are as follows:(Net Cash Provided by (Used in) Operating Activities)
Net cash provided by operating activities was 976 million yen, mainly because of income before income taxes andminority interests of 1,877 million yen and increases in notes and accounts receivable-trade of 1,355 million,
inventory of 733 million, and notes and accounts payable-trade of 896 million yen.
(Net Cash Provided by (Used in) Investing Activities)
Cash used in investing activities was 1,355 million yen, mainly because net purchases of time deposits of 1,378
million yen exceeded the proceeds from sales of investment securities of 218 million yen.
(Net Cash Provided by (Used in) Financing Activities)
Net cash used in financing activities was 387 million yen. Uses of cash included cash dividends paid of 299 million
yen and the repayment of long-term loans payable totaling 60 million yen by group companies.

3(3) Qualitative Information on Consolidated Earnings Forecast:
Because growth in sales in the Chemical Products Business will contribute to higher net sales,
consolidated net sales for the full year are expected to be 39,100 million yen, 7.7% up from the previous
consolidated fiscal year, and full year consolidated operating income is projected to be 2,030 million yen, 28.1%
up from the previous year, reflecting the growth in net sales in relatively high added value sectors andacross-the-board reductions in spending in both the Chemical Products Business and the Machinery & Equipment
Business, and appreciation of the yen. As a result, consolidated ordinary income is projected to increase to 2,100
million yen, 24.5% up year-over-year, and net income is projected to be 306 million yen higher or 1,300 million yen,
30.9% up over the last year.

The full year projected consolidated operating results described above areunchanged from the forecast announced in the “Notice Concerning Revision of Earnings Forecast and Dividend
Projection” released on May 28, 2010.
The operating results forecasts described above are based on information available to the Company at the time
the forecasts were prepared and assumptions judged to be reasonable. Actual operating results might differ fromthese forecasts depending upon changes in the domestic and international economic trends, the balance of supply
and demand and various other circumstances.
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
Change of accounting policy for reporting balance of completed contracts and cost of completed contracts:
We have traditionally reported revenues and costs of construction contracts by applying the completed-contract
method. Beginning from the first quarter consolidated accounting period, we will apply the Accounting Standard forConstruction Contracts (Accounting Standards Board of Japan Statement No. 15, December 27, 2007) and the
Guidance on Accounting Standard for Construction Contracts (Accounting Standards Board of Japan Implementation
Guidance No. 18, December 27, 2007). Beginning from works contracts for which construction activity was begun
during the consolidated first quarter period under review, we will apply the percentage of completion method for works
for which the outcome of the construction activity is deemed certain by the end of the consolidated third quarter period,
and will apply the completed-contract method for all other works.
For the consolidated third quarter under review, this change did not have a material effect on our earning andbusiness segment information, because we did not have any contracts that fulfilled the requirements for application of
the percentage of completion method.

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

Summarized Balance Sheet(July 31, 2010)

for End of Previous Year

Assets(October. 31, 2009)

Current Assets
Cash and Deposits

5,034,639

4,447,793

Notes and Accounts Receivable-Trade

13,321,218

11,995,465

Merchandise and Finished Goods

3,216,636

2,591,153

Work in Process

1,012,415

914,572

Raw Materials and Supplies

787,103787,926

Deferred Tax Assets

399,581

398,437

Others125,453

356,812

Allowance for Doubtful Accounts(28,831)(34,896)

23,868,218

21,457,266

2,521,944

2,522,652

Accumulated Depreciation(1,484,826)(1,433,070)

Buildings and Structures, Net

1,037,117

1,089,581

Machinery, Equipment and Vehicles

3,448,529

3,400,759

Accumulated Depreciation(2,616,592)(2,482,626)
918,132

Land

831,937
970,253

Lease Assets

79,115970,253
88,451

Accumulated Depreciation(36,115)(29,614)

Lease Assets, Net

43,00058,837

978,043956,862(899,593)(869,884)

78,45086,9782,960,759

3,123,783

86,832

48,713

Investment Securities

739,285

903,416

Guarantee Deposits

413,640

410,359

Deferred Tax Assets

55,59453,522Others577,825

506,668

Allowance for Doubtful Accounts(82,276)(91,282)

Total Investments and Other Assets

1,704,068

1,782,685

Total Noncurrent Assets

4,751,660

4,955,182

Total Assets

28,619,878

26,412,448

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

Machinery, Equipment and Vehicles, Net

Others
Accumulated Depreciation
Others, Net
Total Property, Plant and Equipment
Intangible Assets
Investments and Other Assets5

(Thousands of Yen)
End of Third Quarter

Summarized Balance Sheet(July 31, 2010)

for End of Previous Year

Liabilities and Net Assets(October 31, 2009)

Liabilities
Current Liabilities
6,295,235

5,430,683

Short-Term Loans Payable

618,862

692,481

Lease Obligations

25,85028,107

Accounts Payable-Others

473,798

427,104

Income Taxes Payable

589,852

53,760

Advances Received

435,751

243,984

Provision for Bonuses

652,102791,939

Provision for Directors' Bonuses

67,524

48,470Allowance for Product Warranty

147,384

154,997

Others278,091

294,5129,584,453

8,166,042

Lease Obligations

27,77946,686

Provision for Retirement Benefits

31,701

29,034

Provision for Directors' Retirement Benefits

142,760

142,760

Deferred Tax Liabilities

48,01150,901

Derivatives

89,51855,478

Total Noncurrent Liabilities

339,771324,861

Total Liabilities

9,924,224

8,490,904

Capital Stock

1,061,210

1,061,210

Capital Surplus

1,483,410

1,483,410

Retained Earnings

16,346,788

15,557,577

Treasury Stock(363,194)(363,045)

18,528,213

17,739,152

Valuation Difference on Available-for-Sale Securities

80,99577,749Deferred Gains or Losses on Hedges(3,654)(712)

Foreign Currency Translation Adjustment(191,829)(173,790)

Total Valuation and Translation Adjustments(114,488)(96,753)

281,929

279,145

Total Net Assets

18,695,654

17,921,544

Total Liabilities and Net Assets

28,619,878

26,412,448

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 (Third Quarter)(Thousands of Yen)

Third Quarter Ended

Third Quarter Ended

July 31, 2009

July 31, 2010

Net Sales

27,624,345

28,843,057

Cost of Sales

21,847,979

22,540,796

5,776,365

6,302,261

4,455,354

4,523,673

1,321,011

1,778,588

Interest income

1,558

4,832

Dividends Income

46,942

14,519Rent Income

18,858

13,681

Foreign Exchange Gains

56,944

61,257

Gain on Valuation of Derivatives

23,298-Others

40,00530,914

187,606

125,204

Interest Expenses

18,304

5,794

Loss on Sales of Notes Payable

3,871

58

Commission Fee

9,252

Loss on Valuation of Derivatives

9,219
-

52,408Others

14,46912,415

Total Non-Operating Expenses

45,86479,930Ordinary Income

1,462,753

1,823,862-

159,344

47,98913,461
172,806

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

Total Non-Operating Income
Non-Operating Expenses

Extraordinary Income
Gain on Sales of Investment Securities
Reversal of Allowance for Doubtful Accounts

47,989Total Extraordinary Income
Extraordinary Losses

3,307
113

1,952
-

Loss on Valuation of Investments Securities

5,948
76,692

117,683

Provision of Allowance for Doubtful Accounts

262-

86,325

119,636

1,424,417

1,877,032

Income Taxes-Current

238,338

778,499

Income Taxes-Deferred

349,064(2,409)587,403

776,089

11,34912,365

825,664

1,088,577

Loss on Retirement of Noncurrent Assets
Loss on Sales of Noncurrent Assets
Loss on Sales of Investments Securities

Total Extraordinary Losses
Income before Income Taxes and Minority Interests

Total Income Taxes
Minority Interests in Losses
Net Income (Loss)7-

(3) Consolidated Quarterly Statements of Cash Flows(Thousands of Yen)

Net Cash Provided by (Used in) Operating Activities
Income before Income Taxes and Minority Interests

Third Quarter Ended

Third Quarter Ended

July 31, 2009

July 31, 2010

1,424,417

1,877,032

Depreciation and Amortization

388,572

292,587

Increase (Decrease) in Provision for Bonuses(686,294)(139,368)

Increase (Decrease) in Provision for Directors' Bonuses(35,799)

19,053

Increase (Decrease) in Allowance for Product Warranty(25,881)(7,613)

Increase (Decrease) in Provision for Retirement Benefits(6,201)

2,687

Increase (Decrease) in Provision for Directors' Retirement Benefits(115,020)-

Increase (Decrease) in Allowance for Doubtful Accounts(70,830)(15,071)

Loss (Gain) on Valuation of Investment Securities

76,692

117,683

Interest and Dividends Income(48,501)(19,351)

Interest Expenses

18,304

5,794

Foreign Exchange Losses (Gains)

3,871

8,719

Loss (Gain) on Retirement of Noncurrent Assets

3,307

1,952

113

-

Loss (Gain) on Sales of Noncurrent Assets

5,948(159,344)

Loss (Gain) on Valuation of Derivatives

Loss (Gain) on Sales of Investment Securities(23,298)

52,408Decrease (Increase) in Notes and Accounts Receivable-Trade

3,741,363(1,355,300)

502,878(733,219)(1,490,418)

896,777(119,511)

44,663(196)

192,562

Increase (Decrease) in Accrued Consumption Taxes

109,418(55,548)

Others, Net

320,456(41,925)

3,973,393

985,179

49,754(38,642)

16,486(12,717)(1,211,836)(12,470)

2,772,667

976,476-(2,378,526)

Proceeds from Withdrawal of Time Deposits

100,000

1,000,000

Proceeds from Sales of Property, Plant and Equipment

238(207,935)-(129,224)(48,066)

5,339(11,648)

218,109(11,509)

Payments of Loans Receivable

10,423(980)

2,357(3,435)

Guarantee Deposits (Increase)60,721Others, Net

11,379(3,633)(1,309)(32,461)(1,355,236)

Decrease (Increase) in Inventories
Increase (Decrease) in Notes and Accounts Payable-Trade
Increase (Decrease) in Accounts Payable-Others
Increase (Decrease) in Advances Received

Sub totalInterests and Dividends Income Received
Interest Expenses Paid
Income Taxes Paid (-) or Returned
Net Cash Provided by (Used in) Operating Activities
Net Cash Provided by (Used in) Investing Activities
Deposit of Time Deposits

Purchase of Property, Plant and Equipment
Purchase of Intangible Assets
Proceeds from Sales of Investment Securities
Purchase of Investment Securities
Collection of Loans Receivable

Net Cash Provided by (Used in) Investment Activities
8

(Thousands of Yen)
Third Quarter Ended

Third Quarter Ended

July 31, 2009

July 31, 2010

Net Cash Provided by (Used in) Financing Activities
Net Increase (Decrease) in Short-Term Loans Payable(239,577)-

Repayments of Lease Obligations(30,079)(21,164)

Repayment of Long-Term Loans Payable(115,000)(60,000)

(42)

(148)

(349,263)(299,367)(7,315)(6,740)Net Cash Provided by (Used in) Financing Activities(741,277)(387,420)

Effect of Exchange Rate Change on Cash and Cash Equivalents(37,774)

14,368Net Increase (Decrease) in Cash and Cash Equivalents
Cash and Cash Equivalents at Beginning of Period

1,961,154(780,548)

1,711,434
3,672,588

4,447,793
3,667,244

Purchase of Treasury Stock
Cash Dividends Paid
Cash Dividends Paid to Minority Shareholders

Cash and Cash Equivalents at End of Period9(4) Note on Going Concern Assumption
None.
(5) Segment Information(Segment by type of business)
Third Quarter Ended July 31, 2009

(Thousands of Yen)
Machinery &ChemicalEquipment

Products

Business

Business

9,281,072

18,343,272

27,624,345-

27,624,345

-

-

-

-

-

Total

9,281,072

18,343,272

27,624,345-

27,624,345

Operating Income

816,082

504,928

1,321,011-

1,321,011

Deletion or
Total

Total

Consolidated

Company

Net Sales(1) Net Sales to UnaffiliatedCustomers(2) Internal Net Sales among
Segments or Amount Transferred(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
3. Changes for Accounting Standards(1) Application of Accounting Standard for Measurement of Inventories
From the consolidated first quarter we have applied “Accounting Standard for Measurement of Inventories” (ASBJ
Statement No. 9) and changed to a cost accounting method (book price devaluation based on decrease inprofitability). The effects that this change gives to the gain and loss for the first quarter are minor.
(2) Application of Accounting Standard for Lease Transactions
We used to adopt the accounting processing for the lease transaction for the non-transfer-ownership finance lease;
however, we have early adopted “Accounting Standard for Lease Transactions” (ASBJ Statement No. 13) and“Guidance on Accounting Standard for Lease Transactions” (ASBJ Guidance No. 16) from the consolidated firstquarter, whose accounting processing for sales transaction. The effects that this change gives to the gain and loss
for the first quarter are minor.
(3) Application of Practical Solution on Unification of Accounting Policies Applied to Foreign Subsidiaries for
Consolidated Financial Statements
From the consolidated first quarter, we have applied “Practical Solution on Unification of Accounting Policies Applied
to Foreign Subsidiaries for Consolidated Financial Statements” (ASBJ PITF No. 18) and made the necessary
adjustments in consolidated financial statements. The effects that this change gives to the gain and loss for the firstquarter are minor.
4. We have changed durable years of the machinery and equipment as a result of our review on usage of the assets
etc. at the time of the income tax modification. The effects that this change gives to the gain and loss for the first quarterare minor.

10Third Quarter Ended July 31, 2010

(Thousands of Yen)

Machinery &ChemicalDeletion or

Equipment

Products

Business

Business

8,482,344

20,360,712

28,843,057-

28,843,057

-

-

-

-

-

8,482,344

20,360,712

28,843,057-

28,843,057

857,225

921,362

1,778,588-

1,778,588

Total

Total

Consolidated

Company

Net Sales(1) Net Sales to UnaffiliatedCustomers(2) Internal Net Sales among
Segments or Amount Transferred
Total
Operating Income (Loss)(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

11

(Segment by Location)
Third Quarter Ended July 31, 2009

(Thousands of Yen)
Deletion or
Japan

Asia

Total

Total

Consolidated

Company
Net Sales(1) Net Sales to Unaffiliated Customers

25,453,672

2,170,672

27,624,345-

27,624,345

Amount Transferred

259,263

91,596

350,860(350,860)

-

Total

25,712,936

2,262,269

27,975,205(350,860)

27,624,345

Operating Income (Loss)

1,342,831(20,413)

1,322,418(1,407)

1,321,011(2) Internal Net Sales among Segments or(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
3. Changes for Accounting Standards(1) Changes of Accounting Standard for Measurement of Inventories
From the consolidated first quarter we have applied “Accounting Standard for Measurement of Inventories” (ASBJ
Statement No. 9) and changed to a cost accounting method (book price devaluation based on decrease inprofitability). The effects that this change gives to the gain and loss for the first quarter are minor.
(2) Application of Accounting Standard for Lease Transactions
We used to adopt the accounting processing for the lease transaction for the non-transfer-ownership financelease; however, we have early adopted “Accounting Standard for Lease Transactions” (ASBJ Statement No. 13)
and “Guidance on Accounting Standard for Lease Transactions” (ASBJ Guidance No. 16) from the consolidated
first quarter, whose accounting processing for sales transaction. The effects that this change gives to the gain
and loss for the first quarter are minor.
(3) Application of Practical Solution on Unification of Accounting Policies Applied to Foreign Subsidiaries for
Consolidated Financial Statements
From this consolidated first quarter, we have applied “Practical Solution on Unification of Accounting Policies
Applied to Foreign Subsidiaries for Consolidated Financial Statements” (ASBJ PITF No. 18) and made thenecessary adjustments in consolidated financial statements. The effects that this change gives to the gain andloss for the first quarter are minor.
4. We have changed durable years of the machinery and equipment as a result of our review on usage of the assets
etc. at the time of the income tax modification. The effects that this change gives to the gain and loss for the firstquarter are minor.

12Third Quarter Ended July 31, 2010

(Thousands of Yen)
Deletion or
Japan

Asia

Total

Total

Consolidated

Company
Net Sales(1) Net Sales to Unaffiliated Customers

26,371,985

2,471,072

28,843,057-

28,843,057

Amount Transferred

309,793

143,679

453,473(453,473)

-

Total

26,681,779

2,614,752

29,296,531(453,473)

28,843,057

1,714,380

66,526

1,780,907(2,319)1,778,588(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

13

(Overseas Net Sales)
Third Quarter Ended July 31, 2009

(Thousands of Yen)
Asia

I. Overseas Net Sales

Total

5,314,397

1,591,703

6,906,100--

27,624,345

19.2

5.8

25.0

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.
Third Quarter Ended July 31, 2010

(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

5,411,670

511,398

5,923,068--

28,843,057

18.8

1.8

20.5

(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.
(6) Notes for significant changes in shareholders’ equity
None.

14