Consolidated and Non-Consolidated Financial Results
for the Second Quarter Ended April 30, 2009
Date:

June 5, 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 Second Quarter Ended April 30, 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 April 30, 2009 19,818
1,371
1,500
Quarter Ended April 30, 2008 24,022
(0.4)
1,581
25.9
1,652
24.7
Net Income

Quarter Ended April 30, 2009
Quarter Ended April 30, 2008

Millionsof Yen837
864

Net Income per
Share

Fully Diluted Quarterly Net
Income per Share

Yen
83.95
86.61

Yen
-

Percent
28.3(2) Financial Condition (Consolidated)
Total Assets (A)(Millions of Yen)
Quarter Ended April 30, 2009
26,929Year Ended October 31, 2008
29,159Net Assets (B)(Millions of Yen)
17,886
17,465Net Assets Ratio(B) / (A) (Percent)
65.3
58.8

Net Assets
per Share (Yen)
1,762.52
1,719.15(Reference) Net assets (not including minority interests):
Second Quarter ended April 30, 2009: 17,588 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.5.
(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.5.
(4) Number of outstanding shares (Ordinary shares)
1) Number of outstanding shares as of quarter-end and year-end (including treasury stocks)
At April 30, 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 April 30, 2009:

554,298 shares At October 31, 2008:

554,248 shares

3) Number of average shares during consolidated second quarters
At April 30, 2009: 9,978,940 shares

At April 30, 2008: 9,979,050 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).
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 could2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.5.

3

[Qualitative Information and Financial Statements, etc.]
1. Qualitative Information on Consolidated Operating Results:(1) General operating results
Japan’s economy during this second quarter partly showed signs suggesting progress of inventory adjustment.
However, decline of capital investment and export that should be the leaders of economy is still noticeable, and the severe
economic downturn is still continuing.
Under such circumstances, the consolidated net sales at the end of this quarter were 19,818 million yen, 17.5% downfrom the same period last year mainly due to decline of Chemical Products sales. For income, the consolidated operating
income was 1,371 million yen, 13.3% down from the same period last year, the ordinary income was 1,500 million yen,
9.2% down from the same period last year, and the consolidated quarterly net income became 837 million yen, 3.1% downfrom the same period last year. Main reason for this result was decrease of the net sales.
(2) Machinery & Equipment Business
Though the domestic machine sales mainly for governmental offices were sluggish, parts sales and repair services inJapan and abroad and shipment of the centrifuges for Chinese abrasive grain recycle units remained firm. As a result, net
sales for the second quarter were 7,554 million yen, 19.7% up from the same period last year, and the operating income
was 1,084 million yen, 53.5% up from the same period last year.
(3) Chemical Products BusinessIndustrial Materials Business that was supported by demand for public projects and Fine Chemicals Business for whichmaterials were temporarily demanded due to makers’ plans for production stoppage remained relatively firm. On the other
hand, Electronic Materials Business that used to be a pillar of our business, particularly in semiconductor business, showedpoor sales, and Plastics Business experienced continuation of a big drop in unit prices and quantities both in Japan andabroad. As a result, the consolidated net sales marked 12,263 million yen, 30.7% down from the same period last year.
For this reason, the consolidated operating income for this business went down to 287 million yen, 67.2% down from thesame period last year.
2. Qualitative Information on Consolidated Financial Position:(1) Assets, Liabilities, and Net Assets
Assets at the end of the consolidated second quarter under review were 2,230 million yen, 7.6% down from theprevious consolidated year as a result of a decrease in the current assets by 2,126 million yen (mainly due to a decrease in
the notes and accounts receivable-trade and inventories) and a decrease in the noncurrent assets by 103 million yen (dueto a return of the guarantee deposits and decrease in other assets).
On the other hand, liabilities marked 9,042 million yen decreasing 2,650 million yen from the previous consolidated
fiscal year mainly due to a decrease in notes and accounts payable-trade, the provision for bonuses, and income taxes
payable. Net assets increased by 420 million yen (2.4%) from the previous consolidated fiscal year due to an increase ofretained earnings and became 17,886 million yen.
As a result, the net assets ratio as of the end of the second consolidated quarter under review increased by 6.5
percentage points to 65.3%. from the end of previous fiscal year (end October 2008).

4

(2) Cash Flow Status
Net cash for this second quarter and their factors are as follows:(Net Cash Provided by (Used in) Operating Activities)
Income before income taxes and minority interests amounted to 1,451 million yen and net cash provided by (used in)operating activities was 3,317 million yen because of a decrease in notes and accounts receivable-trade andinventories.
(Net Cash Provided by (Used in) Investing Activities)
Net cash provided by (used in) investing activities was 22 million yen because purchase of property, plant andequipment was 202 million yen and exceeded repayment of time deposit and decrease of guarantee deposit etc.
(Net Cash Provided by (Used in) Financing Activities)
Net cash provided by (used in) financing activities was 732 million yen due to cash dividends paid, repayment oflong-term and short-term loans payable, etc.
As a result of the effect of exchange rate changes on cash and cash equivalents, the balance of cash and cash
equivalent for this second quarter increased by 2,536 million yen from the last fiscal year and became 4,247 million yen.
3. Qualitative Information on Consolidated Earnings Forecast:Due to Machinery & Equipment Business’s support, even though Chemical Products Business is still sluggish, theconsolidated net sales and income for the second quarter are expected to exceed the previous earnings forecast
announced on March 2, 2009. These results during the first half of fiscal year can affect the whole fiscal year result;
therefore, we also announced on May 29, 2009 to revise up the consolidated earnings for the year ending October 31,
2009.
However, for the third and fourth quarters, we expect stagnation of sales and declining profit margins of Machinery &Equipment Business, mainly for Environmental Business. Also for Chemical Products Business, though we see
signs of bottoming up in Electronic Materials Business etc., we cannot expect a firm recovery of the overall demand. For
these reasons, the consolidated net sales for the year ending October 31, 2009 are expected to be 37,500 million yen,decreasing 1,500 million yen from the previous forecast, the ordinary income will be 1,500 million yen though it will exceed
the previous forecast. And the net income will be 800 million yen.
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.

5

(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 second
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 second quarter are minor. The effects
to the 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 first consolidated
quarter, whose accounting processing for sales transaction. The effects that this change gives to the gain and loss
for the second quarter are minor. The effects to the segment information are written in the pertinent sections.
④ From the first consolidated 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 second 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 Second Quarter

Summarized Balance Sheet for(April 30, 2009)

End of Previous Year

Assets(October. 31, 2008)

Current Assets
Cash and Deposits

4,247,835

1,811,434

Notes and Accounts Receivable-Trade12,196,274

15,651,542

Merchandise and Finished Goods

2,863,626

3,285,810

Work in Process

1,131,684

1,527,473

Raw Materials and Supplies

697,502658,782

Deferred Tax Assets

405,383

628,526

Others226,211426,276

Allowance for Doubtful Accounts(38,551)(133,061)

Total Current Assets

21,729,966

23,856,785

2,547,177

2,508,379

Accumulated Depreciation(1,406,262)(1,355,419)

Buildings and Structures, Net

1,140,914

1,152,960

Machinery, Equipment and Vehicles

3,465,802

3,388,940

Accumulated Depreciation(2,413,499)(2,331,611)

Machinery, Equipment and Vehicles, Net

1,052,303

1,057,328

Land970,253

970,253

Lease Assets

89,996-

Accumulated Depreciation(17,314)-

Lease Assets, Net

72,681-

951,560

1,015,170(840,049)(822,301)

111,510

192,869

3,347,663

3,373,412

39,17022,064

Investment Securities

875,562880,003

Guarantee Deposits

409,020476,639

Deferred Tax Assets

53,58034,023

Derivatives

54,22522,522Others

520,011563,610

Allowance for Doubtful Accounts(99,945)(69,729)

Total Investments and Other Assets

1,812,455

1,907,070

Total Noncurrent Assets

5,199,289

5,302,547

Total Assets

26,929,256

29,159,333

Noncurrent Assets
Property, Plant and Equipment
Buildings and Structures

Others
Accumulated Depreciation
Others, Net
Total Property, Plant and Equipment
Intangible Assets
Investments and Other Assets7

(Thousands of Yen)
End of Second Quarter

Summarized Balance Sheet(April 30, 2009)

for End of Previous Year

Liabilities and Net Assets(October 31, 2008)

Liabilities
Current Liabilities
5,832,999

7,177,796

Short-Term Loans Payable

688,712

1,054,069

Lease Obligations

30,939-Accounts Payable-Others

404,190

550,233

Income Taxes Payable

363,225

647,878

Advances Received

306,286

291,376

Deferred Tax Liabilities

1,484

-

Provision for Bonuses

613,169

1,135,803

Provision for Directors' Bonuses

19,94164,806

Allowance for Product Warranty

134,831

175,261

Others292,573

217,108

8,688,354

11,314,334

Long-Term Loans Payable

60,00085,000

Lease Obligations

61,0350

Provision for Retirement Benefits

38,476

31,958Provision for Directors' Retirement Benefits

142,760

257,780

Deferred Tax Liabilities

52,064

4,514

Total Noncurrent Liabilities

354,336379,253

Total Liabilities

9,042,690

11,693,588

Capital Stock

1,061,210

1,061,210

Capital Surplus

1,483,410

1,483,410

Retained Earnings

15,402,087

14,913,596

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

17,583,661

17,095,213

Valuation Difference on Available-for-Sale Securities

63,411

12,188Deferred Gains or Losses on Hedges

1,058

26,115

Foreign Currency Translation Adjustment(60,118)

21,7484,351

60,052

298,552

310,478

Total Net Assets

17,886,566

17,465,744

Total Liabilities and Net Assets

26,929,256

29,159,333

Notes and Accounts Payable-Trade

Total Current Liabilities
Noncurrent Liabilities

Net Assets
Shareholders’ Equity

Total Shareholders’ Equity
Valuation and Translation Adjustments

Total Valuation and Translation Adjustments
Minority Interests8(2) Consolidated Quarterly Statements of Income (Second Quarter)(Thousands of Yen)

Second Quarter Ended
April 30, 2009
Net Sales

19,818,148

Cost of Sales

15,454,767
4,363,381

Gross Profit

2,991,825

Selling, General and Administrative Expenses

1,371,556

Operating Income
Non-Operating Income
Interest income

1,194

Dividend Income

7,507

Rent Income

12,605

Foreign Exchange Gains

43,245Gain on Valuation of Derivatives

69,138Others29,429163,121

Total Non-Operating Income
Non-Operating Expenses
Interest Expenses

14,231

Loss on Sales of Notes Payable

3,848

Commission Fee

8,463

Others7,493
34,035

Total Non-Operating Expenses

1,500,642

Ordinary Income
Extraordinary Income
Reversal of Allowance for Doubtful Accounts

44,878

Total Extraordinary Income

44,878Extraordinary Losses
Loss on Retirement of Noncurrent Assets

2,890

Loss on Sales of Noncurrent Assets

113

Loss on Sales of Investment Securities

5,948

Loss on Valuation of Investment Securities

84,818Provision of Allowance for Doubtful Accounts

304

Total Extraordinary Losses

94,075

Income before Income Taxes and Minority Interests

1,451,445

Income Taxes-Current

365,484

Income Taxes-Deferred

237,106
602,591

Total Income Taxes
Minority Interests in Income

11,100837,753

Net Income9(3) Consolidated Quarterly Statements of Cash Flows(Thousands of Yen)
Second Quarter Ended
April 30, 2009

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

1,451,445

Depreciation and Amortization

264,793

Increase (Decrease) in Provision for Bonuses(522,633)

Increase (Decrease) in Provision for Directors' Bonuses(44,865)

Increase (Decrease) in Allowance for Product Warranty
Increase (Decrease) in Provision for Retirement Benefits(40,430)
6,517

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

Increase (Decrease) in Allowance for Doubtful Accounts(64,294)

Loss (Gain) on Valuation of Investment Securities

84,818Interest and Dividends Income(8,701)

Interest Expenses

14,231

Foreign Exchange Losses (Gains)

1,657

Loss on Retirement of Noncurrent Assets

2,890

Loss (Gain) on Sales of Noncurrent Assets

113

Loss (Gain) on Sales of Investment Securities

5,948

Loss (Gain) on Valuation of Derivatives(69,138)

Decrease (Increase) in Notes and Accounts Receivable-Trade

3,342,750

Decrease (Increase) in Inventories

716,080

Increase (Decrease) in Notes and Accounts Payable-Trade
Increase (Decrease) in Accounts Payable-Others(1,259,372)(107,782)

Increase (Decrease) in Advances Received

14,909

Increase (Decrease) in Accrued Consumption Taxes

117,546

Others, Net

201,697
Sub total

3,993,161

Interests and Dividends Income Received

8,535Interest Expenses Paid

(36,605)

Income Taxes Paid

(647,761)

Net Cash Provided by (Used in) Operating Activities

3,317,330

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

100,000

Proceeds from Sales of Property, Plant and Equipment

238

Purchase of Property, Plant and Equipment(202,877)

Proceeds from Sales of Investment Securities

5,339

Purchase of Investment Securities(7,937)

Collection of Loans Receivable

7,862

Payments of Loans Receivable(800)

Guarantee Deposits (Increase)63,251Others, Net

12,290Net Cash Provided by (Used in) Investment Activities

10(22,633)

(Thousands of Yen)
Second Quarter Ended
April 30, 2009

Net Cash Provided by (Used in) Financing Activities
Net Increase (Decrease) in Short-Term Loans Payable(239,533)

Repayments of Lease Obligations(21,518)

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(732,672)

Cash and Cash Equivalents(25,623)

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

112,536,400
1,711,434
4,247,835

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)
Second Quarter Ended April 30, 2009

(Thousands of Yen)

Machinery &Chemical

Total

Deletion or

Consolidated

Equipment

Products

Total

Business

Business

Company

7,554,233

12,263,915

19,818,148-

19,818,148

-

-

-

-

-

7,554,233

12,263,915

19,818,148-

19,818,148

Operating Costs

6,469,939

11,976,653

18,446,592-

18,446,592

Operating Income

1,084,294

287,262

1,371,556-

1,371,556

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 second 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 first
consolidated quarter, whose accounting processing for sales transaction. The effects that this change gives to
the gain and loss for the second quarter are minor.

12(3) Application of Practical Solution on Unification of Accounting Policies Applied to Foreign Subsidiaries for
Consolidated Financial Statements
From the first consolidated 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 second 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 second quarterare minor.
(Segment by Location)
Second Quarter Ended April 30, 2009

(Thousands of Yen)
Japan

Asia

Total

Deletion or

Consolidated

Total
Company
I. Net Sales and Operating Income:Net Sales(1) Net Sales to Unaffiliated18,131,515

1,686,632

19,818,148-

19,818,148

173,058

59,427

232,485(232,485)-

18,304,574

1,746,060

20,050,634(232,485)

19,818,148

Operating Costs

16,917,853

1,760,196

18,678,050(231,457)

18,446,592

Operating Income

1,386,720(14,136)

1,372,584

1,028

1,371,556

Customers(2) Internal Net Sales among
Segments or Amount Transferred
Total(Notes)1. Areas included in each country or region 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 second 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 first13

consolidated quarter, whose accounting processing for sales transaction. The effects that this change gives to
the gain and loss for the second quarter are minor.
(3) Application of Practical Solution on Unification of Accounting Policies Applied to Foreign Subsidiaries for
Consolidated Financial Statements
From this first consolidated 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 second 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 second quarterare minor.
(Overseas Net Sales)
Second Quarter Ended April 30, 2009

(Thousands of Yen)
Asia

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

Other Areas

Total

4,119,685

1,432,434

5,552,119--

19,818,148

20.8

7.2

28.0

(Notes)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 Second Quarter of the Previous Year
(1) Consolidated Interim Statements of Income(Thousands of Yen)
November 1, 2007 to April 30, 2008
I. Net Sales

24,022,695

II. Cost of Sales

19,172,959

Gross Profit

4,849,736

III. Selling, General and Administrative Expenses

3,268,340
1,581,395

Operating Income
IV. Non-Operating Income
1.

Interest Income

10,416

2.

Dividend Income

38,1083.

Rent Income

12,4574.

Foreign Exchange Gain

42,197

5.

Others33,617

136,798

V. Non-Operating Expenses
1.

Interest Expenses

36,8702.

Loss on Sales of Notes Payable

5,608

3.

Commission Fee

15,283

4.

Others7,440

65,203
1,652,991

Ordinary Income
VI. Extraordinary Income
1.

Gain on Investments

5,627

2.

Reversal of Allowance for Doubtful Accounts

18,787

24,414

VII. Extraordinary Losses
1.

Loss on Retirement of Noncurrent Assets

3,729

2.

Provision of Allowance for Doubtful Accounts

13,597

Net income before Income Taxes and Minority Interests

17,326
1,660,079

Income Taxes-Current

508,563

Income Taxes-Deferred

265,023

773,587

Minority Interests in Income

22,180Net Income

864,31115

(2) Consolidated Interim Statements of Cash Flows(Thousands of Yen)
November 1, 2007 to April 30, 2008
I. Net Cash Provided by (Used in) Operating Activities
Net income before income taxes and minority interests

1,660,079

Depreciation and Amortization

185,813

Decrease in Provision for Bonuses(279,588)

Decrease in Provision for Directors' Bonuses(32,407)

Decrease in Allowance for Product Warranty
Increase in Provision for Retirement Benefits(71,359)
497

Increase in Provision for Directors' Retirement Benefits

21,660Decrease in Allowance for Doubtful Accounts(6,034)

Interest and Dividends Income(48,525)

Interest Expenses

36,870Foreign Exchange Losses

14,566

Gains on Investments(5,627)

Loss on Retirement of Noncurrent Assets

3,729

Decrease in Notes and Accounts Receivable-Trade

1,897,747

Increase in Inventories(880,905)

Increase in Notes and Accounts Payable-Trade423,437

Decrease in Accounts Payable-Others(40,252)

Increase in Advances Received

114,983

Increase in Accrued Consumption Taxes

21,636

Others, Net(39,041)
Sub total

2,977,280

Interests and Dividends Income Received

41,968Interest Expenses Paid

(30,971)

Income Taxes Paid

(571,961)

Net Cash Provided by (Used in) Operating Activities

2,416,315

II. Net Cash Provided by (Used in) Investment Activities
Purchase of Property, Plant and Equipment(275,938)

Purchase of Intangible Property, Plant and Equipment(4,096)

Purchase of Investment Securities(7,995)

Collection of Loans Receivable

16,562

Payments of Loans Receivable(1,760)

Increase in Guarantee Deposits(3,599)Others (Net)20,919Net Cash Provided by (Used in) Investment Activities

16(255,906)

(Thousands of Yen)
November 1, 2007 to
April 30, 2008
III. Net Cash Provided by (Used In) Financing Activities
Net Decrease in Short-term Loans Payable(1,371,392)

Proceeds from Long-term Loans Payable

25,000

Repayment of Long-term Loans Payable(90,000)

Proceeds from Investments from Minority Shareholders

50,080Purchase of Treasury Stock(188)

Cash Dividends Paid

(349,269)

Cash Dividends Paid to Minority Shareholders(7,398)Net Cash Provided by (Used in) Financing Activities(1,743,168)

Cash and Cash Equivalents

IV.

Effect of Exchange Rate Change on Cash and Cash Equivalents(71,703)

V.
VI.

Net Increase in Cash and Cash Equivalents
Cash and Cash Equivalents at Beginning of Period

345,536

VII.

Cash and Cash Equivalents at End of Period

17

1,873,895
2,219,431

(3) Segment Information(Segment by Type of Business)
Interim Period Ended April 30, 2008

(Thousands of Yen)

Machinery &Chemical

Total

Deletion or

Consolidated

Equipment

Products

Total

Business

Business

Company

6,313,113

17,709,582

24,022,695-

24,022,695

-

-

-

-

-

6,313,113

17,709,582

24,022,695-

24,022,695

Operating Costs

5,606,875

16,834,424

22,441,300-

22,441,300

Operating Income

706,237

875,157

1,581,395-

1,581,395

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)
Interim Period Ended April 30, 2008
Japan

(Thousands of Yen)
Asia

Total

Deletion or Total

Consolidated

Company
I. Net Sales and Operating Income:Net Sales(1) Net Sales to Unaffiliated21,412,810 2,609,885 24,022,695-

24,022,695

241,890(241,890)-

21,601,459 2,663,127 24,264,586(241,890)

24,022,695

Operating Costs

20,090,923 2,583,086 22,674,009(232,709)

22,441,300

Operating Income

1,510,536(9,181)

1,581,395

Customers(2) Internal Net Sales among

188,648

53,241

Segments or AmountTransferred
Total

80,0401,590,577(Notes)1. Areas included in each country or region 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

(Overseas Net Sales)Interim Period Ended April 30, 2008
Asia
I. Overseas Net Sales (Thousands of Yen)

Other Areas

Total

3,795,906

515,077

4,310,983--

24,022,695

15.8

2.1

17.9

II. Consolidated Net Sales (Thousands of Yen)
III. Ratio of Overseas Net Sales to Consolidated Net Sales (Percent)(Notes)1. Areas included in each country or region are determined based on their degree of geographical proximity.
2. Main countries or regions included in the areas other than Japan:
Asia: China, Korea, Taiwan, and Indonesia (Total 4 countries)
Other areas: America and Europe
3.

Overseas net sales are sales in the countries and areas where our company and affiliates are located except forJapan.

19