Financial Results for the Nine Month Period Ended July 31, 2008
(Third Quarter)(Consolidated and Non-consolidated)
Date:
Company:

September 1, 2008
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:
Minoru Honma
Investor Relations Contacts: Koichi Karita, Director, Finance and Management Planning, Tel: (03) 5435-6512

1. Financial Data for the 9-month period (third quarter) ended July 31, 2008
(1) Consolidated Results of Operation
Sales(Millions of yen)

Operating income(Millions of yen)

Recurring income(Millions of yen)

35,495

2,024

2,160

36,067

1,634

1,723

50,795

2,444

2,554

9-month period ended
July 31, 2008
9-month period ended
July 31, 2007
Year ended
Oct. 31, 2007

Net income(Millions of yen)

Net income per share (Yen)

1,150

115.25

908

91.04

1,357

136.009-month period ended
July 31, 2008
9-month period ended
July 31, 2007
Year ended
Oct. 31, 2007
(2) Consolidated Financial Condition

9-month period ended
July 31, 2008
9-month period ended
July 31, 2007
Year ended
Oct.. 31, 2007

Total assets (A)(Millions of yen)

Net assets (B)(Millions of yen)

Net assets ratio (B/A)(Percent)

29,66817,641

58.4

31,70016,64551.9

32,338

16,951

51.8

Net assets per share (Yen)
9-month period ended
July 31, 2008
9-month period ended
July 31, 2007
Year ended
Oct. 31, 2007

1,737.39
1,649.27
1,678.87

1

(3) Consolidated Cash FlowsNet cashprovided (used)by operating
activities(Millions of yen)

Net cash provided(used) in investing
activities(Millions of yen)

Net cash provided(used) by financing
activities(Millions of yen)

Consolidated cash
and cash equivalent(period-end)(Millions of yen)

2,976

(460)

(2,780)1,567(1,824)

(448)

2,247

1,232

(578)

(623)

1,844

1,873

9-month period
endedJuly 31, 2008
9-month period
endedJuly 31, 2007
Year ended
Oct. 31, 2007

2. Dividend Status
Dividend per share(Yen)
9-month period ended
July 31, 2007
9-month period ended
July 31, 2008−−

3. Forecast for Consolidated Earning for the Year ending Oct. 31, 2008

Whole Financial
Year

Sales
(Millions ofyen)Operating income(Millions of yen)

Recurringincome(Millions of yen)

Net income(Millions of yen)

49,570

2,580

2,650

1,450

Net income per share(Yen)
Whole Financial
Year

145.31

4. Notes to Financial Information(1) Significant changes in subsidiaries during this term
(Changes in specific subsidiaries involving changes in the scope of consolidation: Yes)
One new subsidiary: Stella Tech Engineering Plastics (Shenzhen) Co., Ltd.
(2) Adoption of simplified accounting method:None(3) Change in accounting policies:
None
Details of the change are indicated in "Qualitative Information on Financial Statements, etc. (4) Others" onpage 4.

2

[Reference] Non-Consolidated Data
1. Non-Consolidated Data for the 9-month period (third-quarter) ended July 31, 2007
(1) Non-Consolidated Result of Operation

9-month period
endedJuly 31, 2008
9-month period
endedJuly 31, 2007
Year ended
Oct. 31, 2007

Sales
(Millions of yen)

Operating income(Millions of yen)

Recurring income(Millions of yen)

32,057

1,605

1,866

32,512

1,303

1,451

45,941

1,953

2,117

9-month period
endedJuly 31, 2008
9-month period
endedJuly 31, 2007
Year ended
Oct. 31, 2007

Net income(Millions of yen)

Net income per share (Yen)

1,013

101.61

750

75.21

1,088

109.06(2) Non-Consolidated Financial Condition

9-month period
endedJuly 31, 2008
9-month period
endedJuly 31, 2007
Year ended
Oct. 31, 2007

Total assets (A)(Millions of yen)

Net assets (B)(Millions of yen)

Net assets ratio(B/A) (Percent)25,65016,04462.6

28,266

15,38354.4

28,311

15,632

55.2

Net assets per share (Yen)
9-month period
endedJuly 31, 2007
9-month period
endedJuly 31, 2006
Year ended
Oct. 31, 2006

1,607.85
1,541.61
1,566.543

2. Forecast for Non-Consolidated Earning for the Year ending Oct. 31, 2008

Whole Financial Year

Whole Financial Year

Sales
(Millions of yen)
44,710Operating income(Millions of yen)
2,070

Net income(Millions of yen)
1,260

Recurring income(Millions of yen)
2,300

Net income per share (Yen)
126.27

There is no change to the consolidated financial forecast results announced on June 11, 2008. Forward-looking
statements contained in this material, such as consolidated financial results forecast, are based upon information
currently available and certain assumptions that we believe are reasonable. Actual results could differ materially
due to various factors. Please refer to “Qualitative Information on Financial Statements, etc. (3) Qualitative
Information on Consolidated Earnings Forecast” on page 4 for the underlying assumptions of the forecast results
and necessary precautions when using them.
【Qualitative Information on Financial Statements, etc.】(1) Qualitative information on consolidated operating results:
In the Machinery & Equipment Business, although the business in the public sector performed poorly, the businessin the private sector enjoyed increased sales of waste plastic sorting system, etc. and the business in the overseas
business showed a solid performance with higher sales of abrasive grain recovery units for China and parts andrepair services for chemical industries in Asian region. As a result, third quarter sales of the machinery &equipment business were 8,872 million, and its operating income was 749 million yen, both higher than the same
period of last year. In the Chemical Products Business, although industrial materials business and electronicmaterials business performed well, fine chemicals business had no one-off revenue as in the previous year andadvanced material business suffered from poor sales of parts for semiconductor manufacturing device, etc. As aresult, third quarter sales of the Chemical Products Business were lower than the same period last year at 26,623
million yen, but its operating income was higher than the same period last year at 1,274 million yen as some
imported products benefited from the appreciation of yen and SG&A expenses were reduced. Consequently, theCompany's consolidated third quarter sales were lower than the same period of last year at 35,495 million yen, but
its operating income was 2,024 million yen, recurring income was 2,160 million yen, and net income was 1,150
million yen, all higher than the same period last year in terms of profitability.
(2) Qualitative information on consolidated financial position:
Total assets at the end of the third quarter decreased by 2,669 million yen (8.3%) compared with the end of theprevious fiscal year because the current assets decreased by 2,395 million yen due to a decrease in accountreceivables, etc. and the fixed assets decreased by 273 million yen due to revaluation of investment securities andfinancial derivatives. Total liabilities decreased 3,360 million yen (21.8%) compared with the end of the previous
fiscal year due to a decrease in short-term debt etc. Net assets increased 690 million yen (4.1%) compared withthe end of the previous fiscal year due to an increase in retained earnings, minority interests, etc. As a result,shareholder's equity ratio at the end of this third quarter increased 6.6 percentage points to 58.4%.
(3) Qualitative information on consolidated earnings forecast:
In the Machinery & Equipment Business, shipment of machinery, equipment, and large parts scheduled to bedelivered in this period at the moment will be completed within this period; sales are expected to be lower than theprevious fiscal year due to a substantial decrease in equipment sales and construction revenue from the business inthe public sector, but operating profit will be higher than the previous fiscal year because the number of low-returnprojects, such as equipment for India in the previous fiscal year, will decrease and relatively high-margin parts andrepair services are performing well in the overseas business. In the Chemical Products Business, sales are
expected to be lower than the previous fiscal year due to lack of one-off revenue enjoyed in the previous year by finechemicals business, etc. but operating profit is expected to remain at the same level as in the previous fiscal year
because some of imported products are expected to benefit from the appreciation of yen.

4(4) Others
Significant changes in subsidiaries during this term (changes in specific subsidiaries involving changes in the scopeof consolidation): Yes
Stella Tech Engineering Plastics (Shenzhen) Co., Ltd. was established on March 26th, 2008 as an 80 percent
owned subsidiary and newly consolidated from this term (3rd quarter).

5

1. Consolidated Financial Statements(1) Balance Sheets(Thousands of yen)
Increase &Year ended
decrease
Oct. 31, 2007

9-monthperiod ended
July 31, 2007

9-monthperiodended July
31, 2008

1,232,876
16,276,808
7,128,541
354,785
521,946(40,786)

1,567,741
15,738,387
5,688,787
373,442432,774(25,791)

334,864(538,400)(1,439,754)
18,656(89,171)
14,994

1,873,895
18,897,626
4,351,317
582,629495,752(30,276)

Total current assets

25,474,172

23,775,342(1,698,829)

26,170,945

II. Fixed assets
1. Tangible fixed assets(1) Buildings
Accumulated depreciationNet

2,434,690(1,368,241)
1,066,499

2,508,717(1,330,127)
1,178,589

112,140

2,332,224(1,254,587)
1,077,636

3,144,665(2,279,066)
865,599

3,301,467(2,374,209)
927,258

61,6583,087,055(2,238,012)
849,042(3) Land

975,451

970,253(5,197)970,253(4) Other fixed assets
Accumulated depreciation
Net

986,803(836,405)
150,397

970,510(827,347)
143,162(7,235)

1,128,064(844,855)
283,2093,057,898

3,219,264

161,335

3,180,142

15,88517,080

1,195

15,223

1,636,715
407,160
22,754453,412812,347(179,642)

1,278,518
484,132
35,060263,164
727,195(130,899)(358,197)
76,971
12,306(190,247)(85,151)
48,742

1,580,268
409,762
21,857
314,683
782,159(136,592)

3,152,748

2,657,172(495,575)

2,972,140

Total fixed assets

6,226,532

5,893,517(333,914)

6,167,506

Total assets

31,700,704

29,668,860(2,031,844)

32,338,451

AssetsI. Current assets
1. Cash and deposits
2. Trade receivables
3. Inventories
4. Deferred tax assets
5. Other current assets
Allowance for doubtful accounts(2) Machinery, equipment & vehicles
Accumulated depreciationNet

Total tangible fixed assets
2. Intangible fixed assets
3. Investments and others(1) Investments in securities(2) Guarantee deposits(3) Deferred tax assets(4) Financial derivatives(5) Other investments
Allowance for doubtful accounts

Total investment and others

6Liabilities and Net Assets
Liabilities
I. Current liabilities
1. Trade-payables
2. Short-term debt
3. Account payable-others
4. Accrued income tax
5. Advances from customers
6. Accrued employees’ bonuses
7. Accrued Officers’ bonuses
8. Allowance for product warranty
9. Other current liabilities
Total current liabilities
II. Long-term liabilities
1. Long-term debt
2. Accrued pension and severance
liabilities
3. Officers' retirement allowance
4. Deferred tax liabilities
Total long-term liabilities
Total liabilities
Net assets
I. Shareholders’ equity
1. Common stock
2. Capital surplus
3. Retained earnings
4. Issued shares reacquired
Total shareholders’ equity
II. Revaluation and translation
adjustments
1. Valuation difference on
available-for-sale securities
2. Financial derivative loss or gain
3. Foreign currency translation
adjustment
Total revaluation andtranslation
adjustments
III. Minority interests
Total net assets
Total liabilities and net assts(Thousands of yen)
Increase &Year ended
decrease
Oct. 31, 2007

9-monthperiodended July
31, 2007

9-monthperiodended July
31, 2008

7,638,934
4,563,882
594,253
55,883309,930
672,201
42,044137,460
199,5707,369,263
1,716,873
486,673
168,498
433,138
676,157
52,717
163,874
311,324(269,698)(2,847,009)(107,579)
112,615
123,208
3,955
10,673
26,414
111,754

7,349,341
4,264,912
743,189
613,263
148,967
1,102,255
68,100236,625
187,345

14,214,160

11,378,493(2,835,667)

14,714,001

240,000
29,97585,00034,673(155,000)
4,698

90,00032,437

195,110375,460

245,950
291,984

51,840(93,475)

214,460
336,296

840,545648,608(191,937)

673,194

15,054,706

12,027,101(3,027,604)

15,387,196

1,061,210
1,483,410
13,449,063(362,773)

1,061,210
1,483,410
14,698,588(363,003)

001,249,524(229)

1,061,210
1,483,410
13,897,737(362,615)

15,630,910

16,880,204

1,249,294

16,079,542

475,268

243,208(232,059)

436,288268,814
83,323

159,279
54,687(109,534)(28,636)

218,722
19,084

827,405

457,174(370,230)

674,095

187,681

304,378

116,696

197,617

16,645,998

17,641,758

995,760

16,951,254

31,700,704

29,668,860(2,031,844)

32,338,451

7

(2) Statements of Income
9-monthperiod ended
July 31, 2007
36,067,871
29,489,794
6,578,077

9-monthperiod ended
July 31, 2008
35,495,259
28,516,264
6,978,994

4,943,647
1,634,429

4,954,612
2,024,381

IV. Other income
1. Interests
2. Dividends
3. Rents
4. Foreign exchange gains
5. Sundry
Other income total

6,187
56,544
15,18569,62836,978
184,524

10,721
50,62018,932
88,61363,025
231,913

V. Other expenses
1. Interests
2. Discount on bills of exchange
3. Commitment fee
4. Sundry
Other expenses total

64,7055,950
024,486
95,142

I. SalesII. Cost of sales
Gross profit
III. Selling, general and administrative
Operating income

Recurring income
VI. Extraordinary gains
1. Realized gains on property andequipment
2. Realized gains on investment
securities
3. Reversal of allowance for doubtful
accounts
Extraordinary gains total
VII. Extraordinary losses
1. Realized losses on property andequipment
2. Written-off losses on property andequipment
3. Unrealized losses on investment
securities
4. Provision for doubtful accounts
5. Impairment losses
6. Removal expense
Extraordinary losses total(Thousands of yen)
Increase &Year ended
decrease
Oct. 31, 2007
(577,611)(973,529)
400,91750,795,204
41,791,074
9,004,130

10,965389,952

6,559,190
2,444,939

47,3886,110
61,301
21,101
106,272
71,232
266,018

51,553
8,685
22,267
13,211
95,717574

85,4098,269
9,992
53,054
156,725

1,723,811

2,160,578

436,7662,554,232

0

0

3,184

０

5,627

0

636

22,9308,226

636

28,558

1,677

724

6,726

19,9905,197

19,65450,000050,0000039,410111,077

13,59700
19,5200
5,197
39,410120,989827,921(91,557)

11,411

9-month
period ended
July 31, 2007

9-monthperiod ended
July 31, 2008

Income before income taxes

1,613,370

2,169,615

Net income taxes
Current
DeferredIncome taxes total
Losses on minority interests

457,826
224,814682,641
22,269Net income from consolidated
operations

908,459

9(Thousands of yen)
Increase &Year ended
decrease
Oct. 31, 2007

556,2452,444,654

672,784
310,285
983,070
36,425300,428
14,155

1,032,094
13,783
1,045,878
41,643

1,150,119

241,660

1,357,132

(3) Consolidated Statements of Changes in Shareholders’ equity
9-month period ended July 31, 2007

Surplus as of Oct. 31, 2006
Changes during this quarter
Cash dividend paid
Net income
Issued shares reacquired
Total amount changed
Balance, end of the
9-month period ended July 31,
2007(Thousands of yen)

Commonstock

Capitalsurplus

Shareholders’ equity
Retained
Issued sharesearnings
reacquired

1,061,210

1,483,410

12,839,980(362,697)

Total
shareholders’equity15,021,902

0
0
0
0

0
0
0
0

(299,375)
908,4590
609,083

0
0
(76)
(76)

299,375
908,459(76)
609,007

1,061,210

1,483,410

13,449,063(362,773)

15,630,910

Revaluation and translation adjustments
Valuation
Financial
Foreign
Total
difference onderivative
currency
revaluation
available-for-sales
loss ortranslation
andsecurities
gain
adjustment
translation
adjustments
Surplus as of Oct. 31,
2006
Changes during thisquarter
Cash dividend paid
Net income
Issued shares
reacquired
Total (net) amountchanged (except
shareholders’equity)Total amount changed
Balance, end of the
9-month period ended
July 31, 2007

(Thousands of yen)
Minority
Total net
interests
assets301,319

205,427

30,480537,226

0
0

0
0

0
0

0
0

0
0

(299,375)
908,459

0

0

0

0

0

(76)

173,948

63,387

52,843

290,179

29,086319,265

173,948

63,387

52,843

290,179

29,086928,272

475,268

268,814

83,323

827,405

187,681 16,645,998

10

158,595 15,717,725

9-month period ended July 31, 2008

Surplus as of Oct. 31, 2007
Changes during this quarter
Cash dividend paid
Net income
Issued shares reacquired
Total amount changed
Balance, end of the
9-month period ended July 31,
2008(Thousands of yen)

Commonstock

Capitalsurplus

Shareholders’ equity
Retained
Issued sharesearnings
reacquired

1,061,210

1,483,410

13,897,737(362,815)

Total
shareholders’equity16,079,542

0
0
0
0

0
0
0
0

(349,269)
1,150,1190
800,850

0
0
(188)
(188)

(349,269)
1,150,119(188)
800,662

1,061,210

1,483,410

14,698,588(363,003)

16,880,204(Thousands of yen)
Revaluation and translation adjustments
Minority
Total net
interests
assetsValuation
Financial
Foreign
Total
difference onderivative
currency
revaluation andavailable-for-sales loss or gaintranslationtranslation
securities
adjustment
adjustments
Surplus as of Oct.
31, 2007
Changes during thisquarter
Cash dividend
paid
Net income
Issued shares
reacquired
Total (net) amountchanged (except
shareholders’equity)Total amountchangedBalance, end of the
9-month period
ended July 31, 2008

436,288

218,722

19,084

674,095

197,617

16,951,254

0
0

0
0

0
0

0
0

0
0

(349,269)
1,150,119

0

0

0

0

0

(188)

(193,080)(59,442)

35,602(216,920)

106,761(110,159)(193,080)(59,442)

35,602(216,920)

106,761

690,503

243,708

159,279

54,687457,174

304,378

17,641,758

11

Year ended Oct. 31, 2007

Surplus as ofOct. 31, 2006
Changes during this fiscal
year
Cash dividend paid
Net income
Issued shares reacquired
Total amount changed
Balance, end of the fiscal
year ended Oct. 31, 2007

(Thousands of yen)
Commonstock

Capitalsurplus

Shareholders’ equity
Retained
Issued sharesearnings
reacquired

1,061,210

1,483,410

12,839,980(362,697)

15,021,902

0
0

0
0

(299,375)
1,357,132

00(299,375)
1,357,132

0
0

0
0

0
1,057,757

(118)
(118)

(118)
1,057,639

1,061,210

1,483,410

13,897,737(362,815)

16,079,542

Revaluation and translation adjustments
Valuation
Financial
Foreign
Total
difference onderivative
currency
revaluation
available-for-sales
loss ortranslation
andsecurities
gain
adjustment
translation
adjustments
Surplus as of Oct. 31,
2006
Changes during thisfiscal year
Cash dividend paid
Net income
Issued shares
reacquired
Total (net) amountchanged (except
shareholders’equity)Total amountchangedBalance, end of the
fiscal year ended
Oct. 31, 2007

Total shareholders’equity(Thousands of yen)
Minority
Total net
interests
assets301,319

205,427

30,480537,226

0
0

0
0

0
0

0
0

0
0

(299,375)
1,357,132

0

0

0

0

0

(118)

134,969

13,294(11,395)

136,868

39,021

175,890134,969

13,294(11,395)

136,868

39,021

1,233,529

436,288

218,722

19,084

674,095

197,617 16,951,254

12

158,595 15,717,725

(4) Consolidated Statements of Cash Flows

I. Operating activities
1. Net income before income taxes
Adjustments to reconcile net income
to net cash provided by operating
activities
2. Depreciation and amortization
3. Accrued employees’
bonuses(Increase/decrease)
4. Accrued officers’
bonuses(Increase/decrease)
5. Allowance for productwarranty(Increase/decrease)
6. Accrued pension and severance
liabilities(Increase/decrease)
7. Officers’ retirement
allowance(Increase/decrease)
8. Allowance for doubtful
accounts(Increase/decrease)
9. Interest and dividend income
10. Interest expenses
11. Foreign exchange (Loss/profit)
12. Unrealized losses on investment
securities
13. Realized gains on investment
securities
14. Realized losses on investment
securities
15 Realized gains on properties andequipment
16. Written-off loss on properties andequipment
17.Impairment losses
18. Trade receivables(Increase/decrease)
19. Inventories(Increase/decrease)
20. Purchase liabilities(Increase/decrease)
21. Trade payables(Increase/decrease)
22. Advances from customers(Increase/decrease)
23 Consumption tax, etc.
(Increase/decrease)
24. Others
Sub total
25. Interests and dividends received
26. Interests paid
27. Income taxes paid
Net cash provided (used) by operating
activities(Thousands of yen)
Increase &Year ended
decrease
Oct. 31, 2007

9-month period
endedJuly 31, 2007

9-month period
endedJuly 31, 2008

1,613,370

2,169,615

556,2452,444,654

230,981(425,032)

292,328(426,098)

61,346(1,065)317,259
5,021(8,744)(15,382)(6,638)17,311

17,760(72,751)(90,511)

116,925

4,801

2,235

(2,565)

7,263(34,530)

32,49067,020(15,180)

96,884(10,177)(107,062)

43,324(62,732)
64,705(4,289)50,000(61,341)
51,553
9,222
0

1,390
(13,152)
13,512(50,000)(67,412)85,4092,232
50,0000(5,627)(5,627)

0

0

116

116

0

1,677

724

(952)

3,541

19,9905,197(14,792)

19,6540(244,837)

02,959,774

03,204,612

5,197(3,018,088)(2,073,364)(63,290)(1,430,645)
316,959

642,718
380,249

662,103(226,369)(63,417)(160,432)(97,014)

26,237

271,404

284,170

12,766

110,441(127,431)

1,945

129,376(64,525)(186,364)(922,460)

93,037
4,036,914

279,401
4,959,374(165,820)
359,182

61,260(60,983)(901,978))(1,824,162)

53,663(35,025)(1,078,742)
2,976,809(7,596)25,957(176,763)
4,800,971

67,101(82,927)(922,054)(578,697)

13

II. Investing activities
1. Expenditures for properties andequipment
2. Proceeds from sales of properties
and equipment
3. Acquisition of intangible assets
4. Acquisition of investment securities
5. Proceeds from sales of investment
securities
6. Collection of loans receivable
7. Loans receivable(Increase)
8. Guarantee deposits(Increase/decrease)
9. Other investments(Increase/decrease)
Net cash provided (used) in investing
activities
III. Financing activities
1. Short-term debt
(Increase/decrease)
2. Long-term debt(Increase)
3. Repayment of long-term debt
4. Paid-in capital from investment fromminority shareholders
5. Reacquisition of issued shares ofstocks
6. Cash dividends paid
7.Dividends payments to minority
shareholders
Net cash provided (used) in financing
activities
Cash and cash equivalents
IV. Effect of exchange rate changes
V. Cash and cash
equivalents(Increase/decrease)
VI. Cash and cash equivalents at the
beginning of year
VII. Cash and cash equivalents at theend of the year

(Thousands of yen)
Increase &Year ended
decrease
Oct .31, 2007

9-monthperiod ended
July 31, 2007

9-month period
endedJuly 31, 2008

(343,228)(410,939)(67,710)(536,038)

100

380

280

8,412

(6,521)(18,925)
0(3,996)(13,068)
283

2,524
5,856
283

(6,491)(22,024)
0

28,630(2,380)(113,440)

24,284(1,940)(76,211)(4,346)440
37,22936,754(4,153)(117,117)

7,125

20,904

13,77917,271(448,638)(460,302)(11,663)(623,386)

2,636,904(2,408,684) (5,045,589)

2,323,769

0(90,000)
0

85,000(150,000)
50,08085,000(60,000)
50,0800(180,000)
0

(76)

(188)

(111)

(118)

(299,375)
0(349,269)(7,781)(49,893)(7,781)(299,375)
02,247,452(2,780,843)(5,028,295)(1,844,275)

22,689(2,659)(41,817)(306,153)(64,506)(303,494)(3,831)
638,359

1,235,536

1,873,895

638,359

1,235,536

1,232,876

1,567,741

334,864

1,873,895

14

2. Segment Information[Segment by type of business]
9-month period ended July 31, 2007

I. Sales and operating income:Sales(1) Sales to unaffiliated customers(2) Internal sales among segments
or amount transferred
Total
Operating costs
Operating income

Chemicalproducts
sales

Total

8,681,523

27,386,347

36,067,871

0

36,067,871

0
8,681,523
8,128,353
553,170

027,386,347
26,305,089
1,081,258

036,067,871
34,433,442
1,634,429

0
0
0
0

0
36,067,871
34,433,442
1,634,429

9-month period ended July 31, 2008

I. Sales and operating income:Sales(1) Sales to unaffiliated customers(2) Internal sales among segments
or amount transferred
Total
Operating costs
Operating income(Thousands of yen)
Deletion or
Consolidated
total
company

Machinery
mfg & sales(Thousands of yen)
Deletion or
Consolidated
total
company

Machinery
mfg & sales

Chemicalproducts
sales

Total

8,872,205

26,623,053

35,495,259

035,495,259

0
8,872,205
8,122,801
749,404

0
26,623,053
25,348,076
1,274,977

035,495,259
33,470,877
2,024,381

0
0
0
0

0
35,495,259
33,470,877
2,024,381

Machinery
mfg & sales

Chemicalproducts
sales

Total

Year ended Oct. 31, 2007

(Thousands of yen)
Deletion or
Consolidated
total
company

I. Sales and operating income:Sales(1) Sales to unaffiliated customers
14,547,785
36,247,419
50,795,204(2) Internal sales among segments
or amount transferred
0
0
0
Total
14,547,785
36,247,419
50,795,204
Operating costs
13,622,448
34,727,816
48,350,264
Operating income
925,336
1,519,602
2,444,939(Notes)1. Business classification is by aggregate sales classification.
2. Main products and goods in each business:(1) Machinery manufacturing & sales: Various types of centrifuge, other machinery(2) Chemical products sales: Synthetic resin, industrial materials, other chemical products

15

050,795,204

0
0
0
0

0
50,795,204
48,350,264
2,444,939

[Segment by location]
9-month period ended July 31, 2007

I. Sales and operating income:Sales(1) Sales to unaffiliated customers(2) Internal sales among segments
or amount transferred
Total
Operating costs
Operating income

Asia

Total

32,009,301

4,058,569

36,067,871

0

36,067,871

260,004
32,269,306
30,902,377
1,366,928

10,755
4,069,325
3,809,564
259,761

270,760
36,33,631
34,711,941
1,626,689(270,760)(270,760)(278,499)
7,739

036,067,871
34,433,442
1,634,429

9-month period ended July 31, 2008

I. Sales and operating income:Sales(1) Sales to unaffiliated customers(2) Internal sales among segments
or amount transferred
Total
Operating costs
Operating income(Thousands of yen)
Deletion or
Consolidated
total
company

Japan

Asia

Total

31,523,281

3,971,97835,495,259

035,495,259

287,883
31,811,165
29,999,723
1,811,441

86,6104,058,588
3,827,473
231,115

374,494
35,869,753
33,827,197
2,042,556(374,494)(374,494)(356,319)(18,174)

035,495,259
33,470,877
2,024,381

Japan

Asia

Total

45,012,413

5,782,791

50,795,204

050,795,204

338,135
45,350,459
43,266,299
2,094,249

44,4805,827,272
5,467,317
359,954382,616
51,177,821
48,723,617
2,454,203(382,616)(382,616)(373,352)(9,263)050,795,204
48,350,264
2,444,989

Year ended Oct. 31, 2007

I. Sales and operating income:Sales(1) Sales to unaffiliated customers(2) Internal sales among segments
or amount transferred
Total
Operating costs
Operating income(Thousands of yen)
Deletion or
Consolidated
total
companyJapan(Notes)1. Classification of countries and regions is based on geographical proximity.
2. Asia: China, Korea, and Indonesia (Total 3 countries)

16(Thousands of yen)
Deletion or
Consolidated
total
company

3. Non-Consolidated Financial Statements(1) Balance Sheets

AssetsI. Current assets
1. Cash and deposits
2. Bills receivables
3. Trade receivables
4. Inventories
5. Deferred tax amount
6. Other current assets
Allowance for doubtful accounts

9-monthperiod ended
July 31, 2007

(Thousands of yen)
9-monthIncrease &Year ended
period ended
decrease
Oct. 31, 2007
July 31, 2008

746,018
4,240,138
10,513,521
5,720,647
312,294
516,480(40,888)579,773
3,895,585
10,132,478
4,241,931
345,455
486,925(25,634)(166,244)(344,553)(381,042)(1,478,716)
33,160(29,554)
15,253962,875
4,174,246
12,795,872
3,141,118
525,664
533,685(30,497)

Total current assets

22,008,212

19,656,514(2,351,697)

21,102,965

II. Fixed assets
1. Tangible fixed assets(1) Buildings(2) Machinery, equipment & vehicles(3) Land(4) Other fixed assets

938,075
505,128
931,080
145,752

1,056,626
518,587
925,882
124,654

118,551
13,459(5,197)(21,098)

952,456
488,017925,882
280,549

2,520,036

2,625,751

105,7142,646,906

14,862

16,096

1,234

14,252

3. Investments and others(1) Investments in securities(2) Affiliated companies’ stock(3) Investment in capital of affiliates(4) Guarantee deposits(5) Financial derivatives(6) Other investments
Allowance for doubtful accounts

1,585,215
483,765
171,075
386,810453,412822,432(179,642)

1,227,018
483,765
371,395
384,407
263,164
753,320(130,899)(358,197)
0200,320(2,403)(190,247)(69,111)48,742

1,528,768
483,765
171,075
384,412314,683
801,384(136,592)

Total investment and others

3,723,069

3,352,171(370,897)

3,547,497

Total fixed assets

6,257,967

5,994,019(263,948)

6,208,656

28,266,180

25,650,534(2,615,645)

28,311,621

Total tangible fixed assets
2. Intangible fixed assets17

(Thousands of yen)
Increase &Year ended
decrease
Oct. 31, 2007

9-month period
ended July 31,
2007

9-month period
ended July 31,
2008

1,178,879
5,417,746
3,600,000
180,000

761,740
5,225,814
900,000
180,000(417,139)(191,931)(2,700,000)
0910,097
5,215,015
3,020,000
180,000

551,984
10,319236,058
605,91042,044137,460

475,155
103,305
424,873622,31251,930163,874(76,829)
92,985
188,815
16,402
9,885
26,414

622,921536,690106,056
979,406
65,985
236,625

159,048

163,372

4,324

151,836

12,119,541

9,072,377(3,047,073)

12,024,634

180,000
12,55004,707(180,000)(7,842)90,00013,836

195,110375,092

246,950
281,631

51,840(93,261)

214,460
335,977

Total long-term liabilities

762,753

533,489(229,264)

654,274

Total liabilities

12,882,205

9,605,867(3,276,338)

12,678,908

1,061,210

1,061,210

01,061,210

1,483,410
1,483,410

1,483,410
1,483,410

001,483,410
1,483,410

230,000

230,0000

230,000

Liabilities and Net Assets(Liabilities)
I. Current liabilities
1. Bills payable
2. Trade payable
3. Short-term debt
4. Long-term debt (repayment
within 1 year)
5. Account payable-others
6. Accrued income tax
7. Advances from customers
8. Accrued employees’ bonuses
9. Accrued officers’ bonuses
10. Allowance for productwarranty
11.Other current liabilities
Total current liabilities
II. Long-term liabilities
1. Long-term debt
2. Accrued pension andseverance liabilities
3. Officers' retirement allowance
4. Deferred tax liabilities(Net assets)
I. Shareholders’ equity
1. Common stock
2. Capital surplus(1) Capital reserve
Total capital surplus
3. Retained earnings(1) Legal reserve(2) Other retained earnings
Dividend preparation reserve
Reserve for deferred fixed
assetsProvision of general reserve
Deferred retained earnings
Total retained earnings
4. Issued shares reacquired

250,000
30,134250,000
28,5620(1,571)

250,000
29,722

11,200,000
747,912
12,458,046(362,773)

11,500,000
1,452,000
13,460,562(363,003)

300,000
704,088
1,002,516(229)

11,200,000
1,086,175
12,795,898(362,815)

Total shareholders’ equity

14,639,892

15,642,179

1,002,286

14,977,702

18

(Thousands of yen)
Increase &Year ended
decrease
Oct. 31, 2007

9-month period
ended July 31,
2007

9-month period
ended July 31,
2008

475,268
268,814243,208
159,279(232,059)(109,534)

436,288
218,722

Total revaluation and translation
adjustments

744,082

402,487(341,594)

655,010

Total net assets

15,383,974

16,044,667

660,692

15,632,713

Total liabilities and net assets

28,266,180

25,650,534(2,615,645)

28,311,621

Liabilities and Net Assets
II. Revaluation and translation
adjustments
1. Valuation difference on
available-for-sale securities
2. Financial derivative gains orlosses19

(2) Statements of Income
9-monthperiod ended
July 31, 2007
32,512,1089-monthperiod ended
July 31, 2008
32,057,457

26,650,719(Thousands of yen)
Increase &Year ended
decrease
Oct. 31, 2007
(454,650)

45,941,146

25,982,620(668,098)

37,923,512

5,861,388

6,074,836

213,447

8,017,634

III. Selling, general and administrative

4,558,240

4,469,493(88,746)

6,064,409

Operating income

1,303,148

1,605,342

302,194

1,953,225

IV. Other income

227,361

347,203

119,842

282,016

V. Other expenses

78,711

86,325

7,614

117,952

1,451,798

1,866,221

414,422

2,117,289

VI. Extraordinary gains

635

28,93528,3007,600

VII. Extraordinary losses

100,996

19,520(81,476)

109,551

1,351,436

1,875,636

524,199

2,015,338

401,585
199,341

566,175
295,526

164,590924,918
2,057

600,926

861,702

96,185926,976

750,510

1,013,933

263,423

1,088,362

I. SalesII. Cost of sales
Gross profit

Recurring income

Income before income taxes
Income taxes
Current
DeferredIncome taxes total
Income from
Non-consolidated operations

20

(3) Statements of Changes in Shareholders’ equity
9-month period ended July 31, 2007
Commonstock

Surplus as of Oct. 31, 2006
Changes during this quarter
Transfer of reserve for deferred
fixed assets
Provision of general reserve
Cash Dividend paid
Net income
Issued shares reacquired
Total amount changed
Balance, end of the 9-month period
ended July 31, 2007

Surplus as of Oct. 31, 2006
Changes during this quarter
Transfer of reserve for deferred
fixed assets
Provision of general reserve
Cash Dividend paid
Net income
Issued shares reacquired
Total amount changed
Balance, end of the 9-month period
ended July 31, 2007

Surplus as of Oct. 31, 2006
Changes during this quarter
Transfer of reserve for deferred
fixed assets
Provision of general reserve
Cash Dividend paid
Net income
Issued shares reacquired
Total (net )amount changed(except shareholders’ equity)
Total amount changed
Balance, end of the 9-month
period ended July 31, 2007

(Thousands of yen)
Shareholders’ equity
Retained earnings

CapitalsurplusCapitalreserve

Legal
reserve

Other retained earnings
Dividend
Reserve forpreparation
deferred fixedreserveassets250,000
31,3681,061,210

1,483,410

230,000

0

0

0

0

(1,234)

0
0
0
0
0

0
0
0
0

0
0
0
0
0

0
0
0
0
0

0
0
0
0
(1,234)

1,061,210

1,483,410

230,000

250,000

30,134(Thousands of yen)
Shareholders’ equity
Retained earnings
Issued shares
Total
reacquired
shareholders’
Other retained earnings
Total retained
equityearnings
GeneralSurpluses
reservecarried over
10,300,000
1,195,543
12,006,911(362,697)
14,188,834
0(1,234)00

0900,00000
0
900,000(900,000)(299,375)
750,5100(447,631)

0(299,375)
750,5100451,134

0
0
0
(76)
(76)

0
(299,375)
750,510(76)
451,057

11,200,000

747,912

12,458,046(362,773)

14,639,892(Thousands of yen)
Revaluation and translation adjustments
Total net
Valuation difference
Financial derivative Total revaluation andassetson available-for-saleloss or gaintranslation
securities
adjustments
301,319
205,427
506,746
14,695,581
0

0

0

0

0
0
0
0

0
0
0
0

0
0
0
0

0
(299,375)
750,510(76)

173,948
173,948

63,387
63,387

237,335
237,335

237,335
688,393475,268

268,814744,082

15,383,97421

9-month period ended July 31, 2008

(Thousands of yen)
Commonstock

Surplus as of Oct. 31, 2007
Changes during this quarter
Transfer of reserve for deferred
fixed assets
Provision of general reserve
Cash Dividend paid
Net income
Issued shares reacquired
Total amount changed
Balance, end of the 9-month period
ended July 31, 2008

Shareholders’ equity
Retained earnings

CapitalsurplusCapitalreserve

Legal
reserve

Other retained earnings
Dividend
Reserve forpreparation
deferred fixedreserveassets250,000
29,722

1,061,210

1,483,410

230,000

0

0

0

0

(1,160)

0
0
0
0
0

0
0
0
0
0

0
0
0
0
0

0
0
0
0
0

0
0
0
0
(1,160)1,061,210

1,483,410

230,000

250,000

28,562(Thousands of yen)
Shareholders’ equity
Retained earnings
Issued shares
Total shareholders’reacquired
equityOther retained earnings Total retained
earnings
GeneralSurpluses
reservecarriedover
11,200,000 1,086,175
12,795,898(362,815)
14,977,702

Surplus as of Oct. 31, 2007
Changes during this quarter
Transfer of reserve for deferred
0
fixed assets
Provision of general reserve
300,000
Cash Dividend paid0
Net income
0Issued shares reacquired0
Total amount changed
300,000
Balance, end of the 9-month period
ended July 31, 2008
11,500,000

Surplus as of Oct. 31, 2007
Changes during this quarter
Transfer of reserve for deferred
fixed assets
Provision of general reserve
Cash Dividend paid
Net income
Issued shares reacquired
Total (net) amount changed(except shareholders’ equity)
Total amount changed
Balance, end of the 9-month
period ended July 31, 2008

1,160

0

0

(299,375)(300,000)(349,269)
1,013,933
0
365,824

0(349,269)
1,013,933
0664,664

0
0
0
(188)
(188)

0
(349,269)
1,013,933(188)
664,476

1,452,000

13,460,562(363,003)

15,642,179(Thousands of yen)
Revaluation and translation adjustments
Total net assets
Valuation difference
Financial
Total revaluation andon available-for-salederivative losstranslation
securities
or gainadjustments
436,288
218,722655,010
15,632,713
0

0

0

0

0
0
0
0

0
0
0
0

0
0
0
0

0
(349,269)
1,013,933(188)(193,080)(193,080)(59,442)(59,442)(252,522)(252,522)(252,522)
411,953

243,208

159,279

402,487

16,044,667

22

Year ended Oct. 31, 2007
Commonstock(Thousands of yen)
Shareholders’ equity
Retained earnings

CapitalsurplusCapitalreserve

Legal
reserve

Other retained earnings
Dividend
Reserve forpreparation
deferred fixedreserveassetsSurplus as of Oct. 31, 2006
1,061,210

1,483,410

230,000

250,000

31,3680000(1,645)

0
0
0
0
0

0
0
0
0
0

0
0
0
0
0

0
0
0
0
0

0
0
0
0
(1,645)

1,061,210

1,483,410

230,000

250,000

29,722

Changes during this fiscal year
Transfer of reserve for deferred
fixed assets
Provision of general reserve
Cash Dividend paid
Net income
Issued shares reacquired
Total amount changed
Balance, end of the fiscal year
ended Oct. 31, 2007

(Thousands of yen)
Shareholders’ equity
Retained earnings
Issued shares
Total shareholders’reacquired
equityOther retained earnings Total retained
earnings
GeneralSurpluses
reservecarriedover
Surplus as of Oct. 31, 2006
Changes during this fiscal year
Transfer of reserve for deferred
fixed assets
Provision of general reserve
Cash Dividend paid
Net income
Issued shares reacquired
Total amount changed
Balance, end of the fiscal year
ended Oct. 31, 2007

10,300,000

1,195,543

12,006,911(362,697)

14,188,834

0(1,645)00

0900,00000
0
900,000(900,000)(299,375)
1,088,362
0(109,367)

0(299,375)
1,088,362
0788,986

0
0
0
(118)
(118)

0
(299,375)
1,088,362(118)
788,868

11,200,000

1,086,175

12,795,898(362,815)

14,977,702

23

(Thousands of yen)
Revaluation and translation adjustments
Total net
Valuation difference
Financial
Total revaluation andassetson available-for-salederivative losstranslation
securities
or gainadjustments
Surplus as of Oct. 31, 2006
Changes during this fiscal year
Transfer of reserve for deferred
fixed assets
Provision of general reserve
Cash Dividend paid
Net income
Issued shares reacquired
Total (net) amount changed(except shareholders’ equity)
Total amount changed
Balance, end of the fiscal year
ended Oct. 31, 2007

301,319

205,427

506,746

14,695,581

0

0

0

0

0
0
0
0

0
0
0
0

0
0
0
0

0
(299,375)(1,088,362)(118)

134,969
134,969

13,294
13,294

148,264
148,264

148,264
937,132

436,288

218,722655,010

15,632,713

24