Consolidated and Non-Consolidated Financial Results
for the Third Quarter Ended July 31, 2009
Date:

September 4, 2009

Company:

Tomoe Engineering Co., Ltd. and Subsidiaries(Web Site: 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* Any fractional sums less than one million (or one thousand) yen are disregarded.
1. Consolidated Financial Data for the Third Quarter Ended July 31, 2009
(1) Results of Operation (Consolidated)(Percent: Change from the second quarter of the previous year)
Net Sales
Operating Income
Ordinary Income
Millions
Millions
Millions ofof Yen Percent of Yen
Percent
Yen
Percent
Quarter Ended July 31, 2009 27,624
1,321
1,462
Quarter Ended July 31, 2008 35,495
(1.6)
2,024
23.9
2,160
25.3
Net Income

Quarter Ended July 31, 2009
Quarter Ended July 31, 2008

Millionsof Yen825
1,150

Net Income per
Share

Fully Diluted Quarterly Net
Income per Share

Yen
82.74
115.25

Yen-

Percent
26.6(2) Financial Condition (Consolidated)
Total Assets (A)(Millions of Yen)
Quarter Ended July 31, 2009
26,116
Year Ended October 31, 2008
29,159Net Assets (B)(Millions of Yen)
17,872
17,465Net Assets Ratio(B) / (A) (Percent)
67.3
58.8

Net Assets
per Share (Yen)
1,761.72
1,719.15(Reference) Net assets (not including minority interests):
Third Quarter ended July 31, 2009: 17,580 million yen
Year ended October 31, 2008: 17,155 million yen
2. Dividend Status(Record Date)
Year Ended October 31, 2008
Year Ending October 31, 2009
Year Ending October 31, 2009 (Prospect)First
Quarter-Interim
Term-

Dividend per Share (Yen)Third
End ofQuarter
Fiscal Year
35.00-

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

1

30.00

Annual35.00
30.00

3. Forecast for Earnings for the Year Ending Oct. 31, 2009 (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 Year37,500(21.1)
1,410(42.6)
1,500(42.6)Net Income
Net Income per Share(Millions of Yen) (Percent)
Yen
Full Business Year800
(41.4)
80.17(Note) Correction of the prospected earnings for this quarter: None
4. Others(1) Significant changes in subsidiaries during this quarter (changes in specific subsidiaries involving changes in thescope of consolidation): None
(2) Adoption of simplified accounting method and the specific accounting method in preparing the consolidated
quarterly financial statements: Yes(Note) For details, refer to 4. Other Information, [Qualitative Information and Financial Statements, etc.] on p.4.
(3) Change of the principle, procedure, and representation of the accounting policies concerning the preparation of
consolidated quarterly financial statements (Changes to be described in “Change in the Basis of Presenting
Consolidated Quarterly Financial Statements”)
1) Change due to revision of accounting standard: Yes
2) Other changes: None
(Note) For details, refer to 4. Other Information, [Qualitative Information and Financial Statements, etc.] on p.4.
(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, 2009: 10,533,200 shares

At October 31, 2008: 10,533,200 shares

2) Number of treasury stocks as of quarter-end and year-end
At July 31, 2009:

554,298 shares At October 31, 2008:

554,248 shares

3) Number of average shares during consolidated third quarters
At July 31, 2009: 9,978,927 shares At July 31, 2008: 9,979,016 shares*Explanations for appropriate use of the earnings forecast and other special instructions
From this consolidated fiscal year we have applied “Accounting Standard for Quarterly Financial Reporting”(ASBJ (The Accounting Standards Board of Japan) Statement No. 12) and its Implementation Guidance (ASBJ
Guidance No. 14). And we have prepared the consolidated quarterly financial statements in accordance with “Rules
for Quarterly Consolidated Financial Reporting.” In addition, we have applied the rules for amended quarterly
financial statements in an early stage according to Supplementary Provision 7.1.5 of “the Cabinet Office Regulation to
partly modify the rules of words, types, and presenting method of financial statements” (Cabinet Office Regulation No.
50, August 7, 2008).

2

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. For assumptions of the forecasts and necessary precautions, refer to 3.
Qualitative Information on Consolidated Earnings Forecast, [Qualitative Information and Financial Statements, etc.]
on p.4.

3

[Qualitative Information and Financial Statements, etc.]
1. Qualitative Information on Consolidated Operating Results:
Comparisons with the same period last year are stated as reference.
(1) General operating results
Japan’s economy during this third quarter partly showed that the production bottomed out and the inventory adjustment
was progressed. However, decline of capital investment and personal consumption was still noticeable, and the economic
downturn was still continuing.
Under such circumstances, the consolidated net sales at the end of this quarter were 27,624 million yen, 22.2% downfrom the same period last year mainly due to decline of Chemical Products sales. For income, the consolidated operating
income was 1,321 million yen, 34.7% down from the same period last year mainly due to the decrease of the net sales, theordinary income was 1,462 million yen, 32.3% down from the same period last year, and the consolidated quarterly net
income became 825 million yen, 28.2% down from the same period last year.
(2) Machinery & Equipment Business
Though the machine sales for overseas countries and part sales and repair services in Japan that had been firm up to
the second quarter declined greatly during this third quarter, the consolidated net sales for this quarter were 9,281million
yen, 4.6% up from the same period last year, and the consolidated operating income was 816 million yen, 8.9% up from thesame period last year.
(3) Chemical Products BusinessElectronic Materials Business and Advanced Materials Business, which had been mired in a slump, started to show
signs of bottoming out in demand. However, these businesses are yet to have momentum to recover business conditions,and Plastics Business still has slow sales in Japan and abroad. As a result, the consolidated net sales marked 18,343
million yen, 31.1% down from the same period last year. For this reason, the consolidated operating income for thisbusiness went down to 504 million yen, 60.4% down from the same period last year.
2. Qualitative Information on Consolidated Financial Position:(1) Assets, Liabilities, and Net Assets
Assets at the end of the consolidated third quarter under review were 26,116 million yen, 3,043 million yen (10.4%)
down from the previous consolidated fiscal year (end October 2008) as a result of a decrease in the current assets by 2,846
million yen (mainly due to a decrease in the notes and accounts receivable-trade and inventories) and a decrease in the
noncurrent assets by 196 million yen (due to a return of the guarantee deposits and decrease in other assets).
On the other hand, liabilities marked 8,243 million yen decreasing 3,450 million yen (29.5%) from the previous
consolidated fiscal year mainly due to a decrease in notes and accounts payable-trade, the provision for bonuses, andincome taxes payable. Net assets increased by 406 million yen (2.3%) from the previous consolidated fiscal year due toan increase of retained earnings and became 17,872 million yen.
As a result, the net assets ratio as of the end of the third consolidated quarter under review increased by 8.5 percentage
points to 67.3% from the end of previous consolidated fiscal year.

4(2) Cash Flow Status
Net cash for this third quarter and their factors are as follows:(Net Cash Provided by (Used in) Operating Activities)
Income before income taxes and minority interests amounted to 1,424 million yen and net cash provided by (used in)operating activities was 2,772 million yen because of a great decrease in notes and accounts receivable-trade andinventories.
(Net Cash Provided by (Used in) Investment Activities)
Net cash provided by (used in) investment activities was 32 million yen because purchase of property, plant andequipment was 207 million yen and exceeded cancellation money of time deposits and decrease of guarantee deposits
etc.
(Net Cash Provided by (Used in) Financing Activities)
Net cash provided by (used in) financing activities was 741 million yen due to cash dividends paid, repayment oflong-term and short-term loans payable, etc.
As a result, the balance of cash and cash equivalents for this third quarter increased by 1,961 million yen from theprevious consolidated fiscal year and became 3,672 million yen.
3. Qualitative Information on Consolidated Earnings Forecast:
For Machinery & Equipment Business, stagnation of product and part sales and repairs are expected to continue
during the fourth quarter, backed by the trend of decline of demand in capital investment.

For Chemical Products

Business, we still cannot expect steady growth for the whole demand though their sales seem to have bottomed out. For
these reasons, the consolidated net sales for the year ending October 31, 2009 are expected to be 37,500 million yen,decreasing 21.1% from the previous year, the consolidated ordinary income will be 1,500 million yen (42.6% down). And
the consolidated net income will be 800 million yen, 41.4% down from the previous year.
4. Other Information(1) Changes in important subsidiaries during this quarter (Changes in specific subsidiaries involving changes in thescope of consolidation): None
(2) Adoption of simplified accounting method and the specific accounting method in presenting the consolidated
quarterly financial statements(Simplified accounting method)
Calculation method of depreciation of noncurrent assets:
For the assets adopting the declining-balance method, we adopt the method to calculate the amount ofdepreciation for the consolidated fiscal year by dividing the period proportionally.
(Additional information)
Change of durable year of property, plant and equipment
As a result of our review on usage of the assets etc. at the time of the income tax modification, we have changed
durable years of the machinery & equipment. The effects that this change gives to the gain and loss for the third5

quarter are minor. The effects to the segment information are written in the pertinent sections.
(3) Change of the principle, procedure, and representation of the accounting policies concerning the preparation of
consolidated financial statements① From this consolidated fiscal year we have applied “Accounting Standard for Quarterly Financial Reporting”(ASBJ Statement No. 12) and its Implementation Guidance (ASBJ Guidance No. 14). And we have prepared theconsolidated quarterly financial statements in accordance with “Rules for Quarterly Consolidated Financial Reporting.”
In addition, we have early adopted the rules for amended quarterly financial statements in an early stage according toSupplementary Provision 7.1.5 of “the Cabinet Office Regulation to partly modify the rules of words, types, andpresenting method of financial statements” (Cabinet Office Regulation No. 50, August 7, 2008).
② 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 third quarter are minor. The effects tothe segment information are written in the pertinent sections.
③ 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 firstquarter, whose accounting processing for sales transaction. The effects that this change gives to the gain and loss
for the third quarter are minor. The effects to the segment information are written in the pertinent sections.
④ 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). The effects that thischange gives to the gain and loss for the third quarter are minor. The effects to the segment information are written
in the pertinent sections.

65. Consolidated Financial Statement(1) Consolidated Quarterly Balance Sheets(Thousands of Yen)
End of third Quarter

Summarized Balance Sheet for(July 31, 2009)

End of Previous Year

Assets(October. 31, 2008)

Current Assets
Cash and Deposits

3,672,588

1,811,434

Notes and Accounts Receivable-Trade

11,744,271

15,651,542

Merchandise and Finished Goods

2,997,098

3,285,810

Work in Process

1,066,188

1,527,473

Raw Materials and Supplies

812,346

658,782

Deferred Tax Assets

292,042

628,526

Others459,390426,276

Allowance for Doubtful Accounts(33,977)(133,061)

Total Current Assets

21,009,948

23,856,785

2,548,726

2,508,379

Accumulated Depreciation(1,431,616)(1,355,419)

Buildings and Structures, Net

1,117,109

1,152,960

Machinery, Equipment and Vehicles

3,449,894

3,388,940

Accumulated Depreciation(2,461,998)(2,331,611)

987,895

1,057,328

Land970,253

970,253

Lease Assets

88,451-

Accumulated Depreciation(24,084)-

Lease Assets, Net

64,367-955,494

1,015,170(860,089)(822,301)

95,404

192,869

3,235,030

3,373,412

36,29022,064

Investment Securities

945,118

880,003

Guarantee Deposits

409,701

476,639

Deferred Tax Assets

52,641

34,023

Derivatives

20,46522,522Others504,908

563,610

Allowance for Doubtful Accounts(97,982)(69,729)

Total Investments and Other Assets

1,834,854

1,907,070

Total Noncurrent Assets

5,106,175

5,302,547

Total Assets

26,116,124

29,159,333

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 Assets7

(Thousands of Yen)
End of Third Quarter

Summarized Balance Sheet(July 31, 2009)

for End of Previous Year

Liabilities and Net Assets(October 31, 2008)

Liabilities
Current Liabilities
5,571,247

7,177,796

Short-Term Loans Payable

733,470

1,054,069

Lease Obligations

28,722-

Accounts Payable-Others

389,405550,233

Income Taxes Payable

42,427

647,878

Advances Received

288,952

291,376

Provision for Bonuses

448,381

1,135,803

Provision for Directors' Bonuses

29,00764,806

Allowance for Product Warranty

149,380

175,261

Others267,749

217,108

7,948,743

11,314,334

0

85,000

Lease Obligations

53,629-Provision for Retirement Benefits

25,757

31,958Provision for Directors' Retirement Benefits

142,760

257,780

Deferred Tax Liabilities

72,6194,514

Total Noncurrent Liabilities

294,766

379,253

Total Liabilities

8,243,510

11,693,588

Capital Stock

1,061,210

1,061,210

Capital Surplus

1,483,410

1,483,410

Retained Earnings

15,389,998

14,913,596

Treasury Stock(363,045)(363,003)

17,571,572

17,095,213

99,171

12,188103

26,115(90,792)

21,748

8,482

60,052

292,558

310,478

Total Net Assets

17,872,613

17,465,744

Total Liabilities and Net Assets

26,116,124

29,159,333

Notes and Accounts Payable-Trade

Total Current Liabilities
Noncurrent Liabilities
Long-Term Loans Payable

Net Assets
Shareholders’ Equity

Total Shareholders’ Equity
Valuation and Translation Adjustments
Valuation Difference on Available-for-Sale Securities
Deferred Gains or Losses on Hedges
Foreign Currency Translation Adjustment
Total Valuation and Translation Adjustments
Minority Interests8(2) Consolidated Quarterly Statements of Income (Third Quarter)(Thousands of Yen)
Third Quarter Ended
July 31, 2009

Net Sales

27,624,345

Cost of Sales

21,847,979
5,776,365

Gross Profit

4,455,354

Selling, General and Administrative Expenses

1,321,011

Operating Income
Non-Operating Income
Interest income

1,558

Dividends Income

46,942Rent Income

18,858Foreign Exchange Gains

56,944Gain on Valuation of Derivatives

23,298Others

40,005
187,606

Total Non-Operating Income
Non-Operating Expenses
Interest Expenses

18,304

Loss on Sales of Notes Payable

3,871

Commission Fee

9,219

Others

14,46945,864

Total Non-Operating Expenses

1,462,753

Ordinary Income
Extraordinary Income
Reversal of Allowance for Doubtful Accounts

47,989Total Extraordinary Income

47,989Extraordinary Losses
Loss on Retirement of Noncurrent Assets

3,307

Loss on Sales of Noncurrent Assets

113

Loss on Sales of Investment Securities

5,948

Loss on Valuation of Investment Securities

76,692

Provision of Allowance for Doubtful Accounts

262

Total Extraordinary Losses

86,325

Income before Income Taxes and Minority Interests

1,424,417

Income Taxes-Current

238,338

Income Taxes-Deferred

349,064
587,403

Total Income Taxes
Minority Interests in Income

11,349825,664

Net Income9(3) Consolidated Quarterly Statements of Cash Flows(Thousands of Yen)
Third Quarter Ended
July 31, 2009

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

1,424,417

Depreciation and Amortization

388,572

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

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

Increase (Decrease) in Allowance for Product Warranty
Increase (Decrease) in Provision for Retirement Benefits(25,881)(6,201)

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

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

Loss (Gain) on Valuation of Investment Securities

76,692

Interest and Dividends Income(48,501)

Interest Expenses

18,304Foreign Exchange Losses (Gains)

3,871

Loss on Retirement of Noncurrent Assets

3,307

Loss (Gain) on Sales of Noncurrent Assets

113

Loss (Gain) on Sales of Investment Securities

5,948

Loss (Gain) on Valuation of Derivatives(23,298)

Decrease (Increase) in Notes and Accounts Receivable-Trade

3,741,363

Decrease (Increase) in Inventories

502,878

Increase (Decrease) in Notes and Accounts Payable-Trade
Increase (Decrease) in Accounts Payable-Others(1,490,418)(119,511)

Increase (Decrease) in Advances Received(196)

Increase (Decrease) in Accrued Consumption Taxes

109,418

Others, Net

320,456
Sub total

3,973,393

Interests and Dividends Income Received

49,754

Interest Expenses Paid

(38,642)

Income Taxes Paid

(1,211,836)

Net Cash Provided by (Used in) Operating Activities

2,772,667

Net Cash Provided by (Used in) Investment Activities
Proceeds from Withdrawal of Time Deposits

100,000

Proceeds from Sales of Property, Plant and Equipment

238

Purchase of Property, Plant and Equipment(207,935)

Proceeds from Sales of Investment Securities

5,339

Purchase of Investment Securities(11,648)

Collection of Loans Receivable

10,423

Payments of Loans Receivable(980)

Guarantee Deposits (Increase)60,721Others, Net

11,379Net Cash Provided by (Used in) Investment Activities

10(32,461)(Thousands of Yen)
Third Quarter Ended
July 31, 2009

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

Repayments of Lease Obligations(30,079)

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

Purchase of Treasury Stock(42)

Cash Dividends Paid

(349,263)

Cash Dividends Paid to Minority Shareholders(7,315)Net Cash Provided by (Used in) Financing Activities(741,277)

Cash and Cash Equivalents(37,774)

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 Period

11

1,961,154
1,711,434
3,672,588

From this consolidated fiscal year we have applied “Accounting Standard for Quarterly Financial Reporting” (ASBJ
Statement No. 12) and its Implementation Guidance (ASBJ Guidance No. 14). And we have prepared the consolidated
quarterly financial statements in accordance with “Rules for Quarterly Consolidated Financial Reporting.”(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 &Chemical

Total

Deletion or

Consolidated

Equipment

Products

Total

Business

Business

Company

9,281,072

18,343,272

27,624,345-

27,624,345

-

-

-

-

-

9,281,072

18,343,272

27,624,345-

27,624,345

Operating Costs

8,464,989

17,838,344

26,303,334-

26,303,334

Operating Income

816,082

504,928

1,321,011-

1,321,011

I. Net Sales and Operating Income:Net Sales(1) Net Sales to UnaffiliatedCustomers(2) Internal Net Sales among
Segments or AmountTransferred
Total(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 third 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 third quarter are minor.

12(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 thenecessary adjustments in consolidated financial statements. The effects that this change gives to the gain andloss for the third quarter are minor.
4. As written in 4. Other Information, (2) Adoption of simplified accounting method and the specific accounting method inpresenting the consolidated quarterly financial statements, [Qualitative Information and Financial Statements, etc.], wehave 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 third quarter areminor.
(Segment by Location)
Third Quarter Ended July 31, 2009

(Thousands of Yen)
Japan

Asia

Total

Deletion or

Consolidated

Total
Company
I. Net Sales and Operating Income:Net Sales(1) Net Sales to Unaffiliated25,453,672

2,170,672

27,624,345-

27,624,345

259,263

91,596

350,860(350,860)-

25,712,936

2,262,269

27,975,205(350,860)

27,624,345

Operating Costs

24,370,104

2,282,682

26,652,787(349,452)

26,303,334

Operating Income

1,342,831(20,413)

1,322,418(1,407)

1,321,011

Customers(2) Internal Net Sales among
Segments or Amount Transferred
Total(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 (Total 3 countries)
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 third 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 consolidated13

first quarter, whose accounting processing for sales transaction. The effects that this change gives to the gain
and loss for the third 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 third quarter are minor.
4. As written in 4. Other Information, (2) Adoption of simplified accounting method and the specific accounting method inpresenting the consolidated quarterly financial statements, [Qualitative Information and Financial Statements, etc.], wehave 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 third quarter areminor.
(Overseas Net Sales)
Third Quarter Ended July 31, 2009

(Thousands of Yen)
Asia

I. Overseas Net Sales

Other Regions

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 (%)(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:(1) Asia: China, Korea, Taiwan, and Indonesia (Total 4 countries)(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

[Reference]
Financial Statement etc. for the Third Quarter of the Previous Year
(1) Consolidated Quarterly Statements of Income(Thousands of Yen)
November 1, 2007 to July 31, 2008
I. Net Sales

35,495,259

II. Cost of Sales

28,516,264

Gross Profit

6,978,994

III. Selling, General and Administrative Expenses

4,954,612
2,024,381

Operating Income
IV. Non-Operating Income
1.

Interest Income

10,721

2.

Dividends Income

50,6203.

Rent Income

18,9324.

Foreign Exchange Gains

88,613

5.

Others63,025

231,913

V. Non-Operating Expenses
1.

Interest Expenses

51,553

2.

Loss on Sales of Notes Payable

8,685

3.

Commission Fee

22,267

4.

Others

13,211

95,7172,160,578

Ordinary Income
VI. Extraordinary Income
1.

Gain on Investments

5,627

2.

Reversal of Allowance for Doubtful Accounts

22,93028,558VII. Extraordinary Losses
1.

Loss on Sales of Noncurrent Assets

724

2.

Loss on Retirement of Noncurrent Assets

5,197

3.

Provision of Allowance for Doubtful Accounts

13,597

Income before Income Taxes and Minority Interests

19,5202,169,615

Income Taxes-Current

672,784

Income Taxes-Deferred

310,285

Minority Interests in Income

983,070
36,4251,150,119

Net Income15(2) Consolidated Quarterly Statements of Cash Flows(Thousands of Yen)
November 1, 2007 to July 31, 2008
I. Net Cash Provided by (Used in) Operating Activities
Income before income taxes and minority interests

2,169,615

Depreciation and Amortization

292,328

Decrease in Provision for Bonuses(426,098)

Decrease in Provision for Directors' Bonuses(15,382)

Decrease in Allowance for Product Warranty
Increase in Provision for Retirement Benefits(72,751)
2,235

Increase in Provision for Directors' Retirement Benefits

32,490Decrease in Allowance for Doubtful Accounts(10,177)

Interest and Dividends Income(61,341)

Interest Expenses

51,553Foreign Exchange Gains

9,222

Gains on Investments(5,627)

Losses on Sales of Investment Securities

116

Losses on Sales of Noncurrent Assets

724

Losses on Retirement of Noncurrent Assets

5,197

Decrease in Notes and Accounts Receivable-Trade

2,959,774

Increase in Inventories(1,430,645)

Increase in Notes and Accounts Payable-Trade

316,959

Decrease in Accounts Payable-Others(160,432)

Increase in Advances Received

284,170

Increase in Accrued Consumption Taxes

1,945

Others, Net

93,037
Sub total

4,036,914

Interest and Dividends Income Received

53,663

Interest Expenses Paid

(35,025)

Income Taxes Paid

(1,078,742)

Net Cash Provided by (Used in) Operating Activities

2,976,809

II. Net Cash Provided by (Used in) Investment Activities
Purchase of Property, Plant and Equipment(410,939)

Proceeds from Sales of Property, Plant and Equipment

380

Purchase of Intangible Property, Plant and Equipment(3,996)

Purchase of Investment Securities(13,068)

Proceeds from Sales of Investment Securities

283

Collection of Loans Receivable

24,284

Payments of Loans Receivable(1,940)

Increase in Guarantee Deposits(76,211)

Others, Net

20,904

Net Cash Provided by (Used in) Investment Activities

16(460,302)

(Thousands of Yen)
November 1, 2007 to
July 31, 2008
III. Net Cash Provided by (Used In) Financing Activities
Net Decrease in Short-term Loans Payable(2,408,684)

Proceeds from Long-term Loans Payable

85,000

Repayment of Long-term Loans Payable(150,000)

Proceeds from Investments from Minority Shareholders

50,080Purchase of Treasury Stock(188)

Cash Dividends Paid

(349,269)

Cash Dividends Paid to Minority Shareholders(7,781)Net Cash Provided by (Used in) Financing Activities(2,780,843)

Cash and Cash Equivalents

IV.

Effect of Exchange Rate Change on Cash and Cash Equivalents(41,817)V.
VI.

Net Decrease in Cash and Cash Equivalents
Cash and Cash Equivalents at Beginning of Period(306,153)

VII.

Cash and Cash Equivalents at End of Quarter

17

1,873,895
1,567,741

(3) Segment Information(Segment by Type of Business)
Third Quarter Ended July 31, 2008

(Thousands of Yen)
Machinery &Chemical

Total

Deletion or

Consolidated

Equipment

Products

Total

Business

Business

Company

8,872,205

26,623,053

35,495,259-

35,495,259

-

-

-

-

-

8,872,205

26,623,053

35,495,259-

35,495,259

Operating Costs

8,122,801

25,348,076

33,470,877-

33,470,877

Operating Income

749,404

1,274,977

2,024,381-

2,024,381

I. Net Sales and Operating Income:Net Sales(1) Net Sales to UnaffiliatedCustomers(2) Internal Net Sales among
Segments or AmountTransferred
Total(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)
Third Quarter Ended July 31, 2008

(Thousands of Yen)
Japan

Asia

Total

Deletion or Total

Consolidated

Company
I. Net Sales and Operating Income:Net Sales(1) Net Sales to Unaffiliated31,523,281 3,971,978 35,495,259-

35,495,259

374,494(374,494)-

31,811,165 4,058,588 35,869,753(374,494)

35,495,259

Operating Costs

29,999,723 3,827,473 33,827,197(356,319)

33,470,877

Operating Income

1,811,441(18,174)

2,024,381

Customers(2) Internal Net Sales among

287,883

86,610

Segments or AmountTransferred
Total

231,115

2,042,556(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 (Total 3 countries)

18