Financial Results for the Fiscal Year Ended October 31, 2009
Date:

December 10, 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, General Manager of Accounting Division, Tel: (03) 5435-6512
Date of Annual Shareholders Meeting: January 28, 2010
Date of Dividend Payment:

January 29, 2010

Date of Financial Statement: January 28, 2010
1. Consolidated Financial Results for the Year Ended October 31, 2009
(1) Results of Operation (Consolidated)(Percent: Change from the previous year)
Operating Income
Ordinary Income

Sales
Year Ended
October 31, 2009
Year Ended
October 31, 2008

(Millions of Yen)

(Percent)(Millions of Yen)

(Percent)(Millions of Yen)

(Percent)

36,304(23.6)

1,585(35.5)

1,686(35.5)

47,542

(6.4)

2,456

0.5

2,613

2.3

Net Income

Net Income
per Share

Diluted Net
Income per
Share

Return on
EquityReturn on
AssetsReturn on
Sales(Millions of Yen)

(Percent)

(Yen)

(Yen)

(Percent)(Percent)(Percent)

993(27.2)

99.53

-

5.7

6.1

4.4

1,365

0.6

136.80

-

8.1

8.5

5.2

Year Ended
October 31, 2009
Year Ended
October 31, 2008

(Reference) Equity in earnings (loss) of unconsolidated subsidiaries and affiliates
Fiscal year ended October 31, 2009: None
Fiscal year ended October 31, 2008: None
(2) Financial Condition (Consolidated)
Total Assets (A)Net Assets (B)Net Assets Ratio (B / A)

Net Assets per Share(Millions of Yen)

(Millions of Yen)

(Percent)(Yen)

26,412

17,92166.8

1,767.97

29,15917,46558.8

1,719.15

Year Ended
October 31, 2009
Year Ended
October 31, 2008
(Reference) Net assets

Fiscal year ended October 31, 2009: 17,642 million yen
Fiscal year ended October 31, 2008: 17,155 million yen

1(3) Cash Flows (Consolidated)
Net Cash Provided(Used) by Operating
Activities
Year Ended
3,644
October 31, 2009
Year Ended
3,965
October 31, 2008

Net Cash Provided(Used) by Investing
Activities

Net Cash Provided(Used) by Financing
Activities(Millions of yen)
Consolidated Cashand Cash Equivalent
as of Year-end

(88)

(750)

4,447

(644)

(3,419)1,711

2. Dividend Status
Dividend per Share (Yen)
SecondThird QuarterEnd ofQuarter
Fiscal Year
35.00
30.00
30.00

First Quarter-

Year Ended October 31, 2009
Year Ended October 31, 2008
Year Ending October 31, 2010 (Prospect)

Total
35.00
30.00
30.00

Total Dividend

Dividend Payout Ratio(Consolidated)

Dividend on Equity Ratio(Consolidated)(Millions of Yen)

(Percent)(Percent)

349
299
-

25.6
30.1
27.2

2.1
1.7
-

Year Ended October 31, 2008
Year Ending October 31, 2009
Year Ending October 31, 2010 (Prospect)

3. Forecast for the Year Ending October 31, 2010 (Consolidated)(Percent: Change from the previous year for the full business year and 6-month period)
Sales

Operating Income

Ordinary income(Millions of Yen)

(Percent)(Millions of Yen)

(Percent)(Millions of Yen)

(Percent)

6-month Period

20,5003.4

1.130(17.6)

1,130(24.7)

Full Business Year

39,500

8.8

1,730

9.1

1,750

3.7

Net Income

Net Income per Share(Millions of Yen)

(Percent)(Yen)

6-month Period730(12.9)

73.15

Full Business Year

1,100

10.7

110.23

4. Others(1) Significant changes in subsidiaries during this quarter (changes in specific subsidiaries involving changes in thescope of consolidation): None
(2) Change of the principle, procedure, and representation of the accounting policies concerning the preparation of
consolidated 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 (6) Changes of Important Items to be Basis for Making Consolidated Financial
Statements, 4. Consolidated Financial Statements, on p.21.

2

(3) Number of outstanding shares (Common stock)1) Number of outstanding shares at year-end (including treasury stocks)
At October 31, 2009 10,533,200 shares

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

2) Number of treasury stocks at year-end
At October 31, 2009:

554,298 shares

At October 31, 2008:

554,248 shares(Note) For number of shares to be basis to calculate net income per share (consolidated), refer to (Per ShareInformation) on p.27.
(Reference)
1. Outline of Non-Consolidated Results of Operations for the Year Ended October 31, 2009
(1) Results of Operation (Non-consolidated)(Percent: Change from the previous year)

Sales

Operating Income

Ordinary income(Millions of Yen)

(Percent)(Millions of Yen)

(Percent)(Millions of Yen)

(Percent)

33,925(21.6)

1,340(31.2)

1,616(27.9)

43,297

(5.8)

1,947

(0.3)

2,241

5.9

Year Ended
October 31, 2009
Year Ended
October 31, 2008

Net Income

Net Income per Share

Diluted Net Income per Share(Millions of Yen)

(Percent)

(Yen)

(Yen)

971

(19.5)

97.36

-

1,207

10.9

121.00-Year Ended
October 31, 2009
Year Ended
October 31, 2008

(2) Financial Condition (Non-consolidated)
Total Assets (A)Net Assets (B)Net Assets Ratio (B) / (A)Net Assets per Share(Millions of Yen)

(Millions of Yen)

(Percent)(Yen)

23,597

16,53470.1

1,656.99

25,344

15,87462.6

1,590.75

Year Ended
October 31, 2009
Year Ended
October 31, 2008
(Reference) Net assets
Fiscal year ended October 31, 2009: 16,534 million yen
Fiscal year ended October 31, 2008: 15,874 million yen*Explanations for appropriate use of the earnings forecast and other special instructions
The forward-looking statements such as a forecast of our financial results described herein are based on theinformation currently available to us and certain assumptions that we believe are reasonable. Actual results could differ
materially due to various factors. For assumptions of the forecasts and necessary precautions, refer to (1) Analysis ofResults of Operation, 1. Operating Results and Financial Condition, on p.4.

3

1. Operating Results and Financial Condition(1) Analysis of Results of Operation[1] General condition of the current consolidated fiscal year
General operating results
During the current consolidated fiscal year, the Japanese economy has been forced to experience unprecedented
slow down in the increasing worldwide financial and economic crises and has been stagnating in various aspects
including the production level. Though signs of trying possibilities for self-sustained economic recovery were seen
after the spring of 2009 due to improved inventory adjustment and recovery of export, stagnation of individual
consumption continued, and equipment investment, which should have played a leading force in the recovery, did
not climb out of the contractional situation.
In this operating environment, the net sales for the current fiscal year were 36,304 million yen, 23.6% down from theprevious year, and the ordinary income was 1,686 million yen, 35.5% down from the previous year. The net
income for the current fiscal year was 993 million yen, 27.2% down from the previous year.
Machinery & Equipment Business
Shipment of large machines for the chemical industry in Poland and machines for slurry recycle system in China
and sales of parts and repairs in Japan and foreign countries make a strong showing. However, as the domestic
machine sales, mainly for public sectors fell into the doldrums, the entire consolidated net sales were 11,950 million
yen, 4.8% down from the previous year. The operating income was 836 million yen, 14.1% down from theprevious year because of decrease of the sales that is the biggest cause although we tried to reduce costs andexpenditures.
Chemical Products Business
Though Electronic Materials Business and Advanced Materials Business, mainly semiconductor- andautomobile-related businesses, suffered a slump in the beginning of the fiscal year, demand for such businesses
started to have a tendency to bottom out in the latter half of the year. However, because such sales recovery did
not have enough strength to gain momentum, and because Synthetic Resin Business continued to have sales
stagnation all the time domestically and overseas, the consolidated net sales for the entire business were 24,353
million yen, 30.4% down from the previous year. The overall operating income was 748 million yen, 49.5% downfrom the previous year because of decrease of the net sales although we tried reduction of expenditures.
[2] Outlook for the next fiscal year (November 1, 2009~October 31, 2010)
The Japanese economy during our 81st term (the year ending October 31, 2010) is expected to continuously seek
the way of self-sustained economic recovery. On the other hand, it is difficult to forecast its future due to concerns
such as sluggish growth in number of employees and income and strong yen influences.
Under such circumstances Machinery & Equipment Business expects that the net sales for the entire business willbe 12,560 million yen (5.1% increase from the previous year) and the operating income 850 million yen (1.6%
increase from the previous year) because of expected increase of machine sales such as slurry recycle system andmachines for vinyl chloride plants in China though the domestic sales of machine, parts and repairs will be forced toslow down.

4

Chemical Products Business expects that the net sales for the entire business will be 26,940 million yen (10.6%
increase from the previous year) and the operating income 880 million yen (17.5% increase from the previous year),anticipating increased sales and profits in Electronic Materials Business, Industrial Materials Business, and Fine
Chemicals Business on the premise of a gradual recovery of demand worldwide.
All in all, we expect our consolidated net sales of our 81st term to increase by 8.8% to 39,500 million yen, operating
income to increase by 9.1% to 1,730 million yen, and ordinary income to increase by 3.7% to 1,750 million yen fromthe previous year.
Note that the above outlook for the next fiscal year is based on the business information at present; therefore, theactual performance may change because of unexpected changes of conditions such as both domestic and foreign
economic trends and balance of demand and supply.
(2) Analysis of Financial Condition[1] Total Assets, Liabilities, and Net Assets
Assets at the end of the current consolidated fiscal year were 26,412 million yen, 2,746 million yen (9.4%) downfrom the previous consolidated fiscal year as a result of decrease in the current assets by 2,399 million yen(mainly due to decrease in notes and accounts receivable-trade and inventories) and decrease in the noncurrent
assets by 347 million yen (due to return of the guarantee deposits and decrease in other assets).
On the other hand, liabilities marked 8,490 million yen decreasing by 3,202 million yen (27.4%) from theprevious consolidated fiscal year mainly due to decrease in notes and accounts payable-trade, short-term loans
payable, provision for bonuses, and income taxes payable. Net assets increased by 455 million yen (2.6%)
from the previous consolidated fiscal year due to increase of retained earnings etc. and became 17,921 million
yen.
As a result, the capital adequacy ratio as of the end of the current consolidated fiscal year increased by 8.0
percentage points to 66.8% from the end of previous consolidated fiscal year.
[2] Cash Flow Status
Balance of cash and cash equivalent as of the end of the current consolidated fiscal year increased by 2,736
million yen to 4,447 million yen from the previous consolidated fiscal year. Status of each cash flow and theirfactors during the current consolidated fiscal year are as follows:(Net Cash Provided by (Used in) Operating Activities)
Income before income taxes and minority interests amounted to 1,642 million yen. In addition, notes andaccounts receivable-trade and inventories decreased due to decrease of net sales, and net cash provided byoperating activities was 3,644 million yen.
(Net Cash Provided by (Used in) Investing Activities)
Net cash used in investment activities was 88 million yen because purchase of property, plant and equipment
was 246 million yen and exceeded withdrawal of time deposits and refund of guarantee deposits.

5(Net Cash Provided by (Used in) Financing Activities)
Net cash used in financing activities was 750 million yen due to cash dividends paid and repayment oflong-term and short-term loans payable etc.
Trends in cash flow indices are as follows:Year EndedYear EndedYear EndedYear EndedYear Ended

October 31,

October 31,

October 31,

October 31,

October 31,

2005

2006

2007

2008

2009

52.7

54.0

51.8

58.8

66.8

63.9

53.8

47.4

30.9

51.8

5.9

2.5

-

0.3

0.2

9.4

13.5

-

86.9

88.8

Equity Ratio (Percent)
Equity Ratio Based on
Market Value (Percent)Debt-repayment Ratio(Years)Interest Coverage Ratio(Percent)

Equity ratio: Net assets / Total assets
Equity ratio based on market value: Market capitalization of shares / Total assets
Debt-repayment ratio：Interest-bearing debt / Cash flow from operating activities
Interest coverage ratio: Cash flow from operating activities / Interest payment(Note)
1. All indices are calculated on the basis of consolidated financial figures.
2. Market capitalization is calculated by multiplying the closing share price at the end of the fiscal year by the
number of outstanding shares at the end of the fiscal year (excluding treasury stock).
3. Operating cash flow refers to the net cash provided by operating activities in the Statements of Consolidated
Cash Flows.

Interest-bearing debt refers to all debt for which interest is payable declared in theConsolidated Balance Sheet. Interest expense refers to the interest paid as shown in the Statements ofConsolidated Cash Flows.
4. The debt-repayment ratio and interest coverage ratio are not recorded for the year ended on October 31,
2007, as operating cash flow was negative in those periods.
(3) Basic Policy for Profit Sharing and Dividends for Fiscal 2009 and 2010
Our company considers the return of profits to shareholders as one of important management goals. To publicly state
the stance, our basic policy regarding dividends is to "maintain stability in dividends payment with a target consolidated
payout ratio of 25% or more, by considering earnings, reinforcement of our corporate strength, etc. in a comprehensive
manner."Based on the above policy, we plan to submit to the 80th General Meeting of Shareholders to be held in January 2010 topay out dividends of 30 yen per share for the fiscal year ended on October 31, 2009, which is 5 yen decrease from theprevious fiscal year.
Dividends for the fiscal year ending on October 31, 2010 will be 30 yen per share, the same as dividends for the fiscal
year ended on October 31, 2009, considering the business outlook for the whole fiscal year.

6(4) Risk Factors in Business
Outlined below are the key areas of business risks of our group that might have significant influence on investors’decision. The following judgments are made at the end of the current consolidated fiscal year, although someforward-looking statements are contained:[1] Seasonal Fluctuation of Operating Results
Currently there is a seasonal bias in our business toward the second quarter. Public sector sales account for
relatively a high percentage in the sales of Machinery & Equipment Business and tend to be concentrated in thesecond quarter due to public sector's budget implementation. However, since the sales of Chemical Products
Business, which are relatively less affected by seasonal factors, account for higher percentage of our total sales,seasonal factors do not have significant effect on the total sales of our entire group.
On the other hand, the operating income of our entire group tends to be biased toward the second quarter as the
fixed costs are almost evenly borne through the year and Machinery & Equipment Business sales areconcentrated in the second quarter.
[2] Influence of Foreign Exchange Fluctuation
Businesses of our group include exports and import in foreign currencies, and exchange rate fluctuations may
affect the values after translation into yen. Operating results and financial condition of our group might be affectedby these foreign currency transactions although we make efforts to minimize exchange fluctuation risks by entering
into forward exchange contracts. Since our group has overseas subsidiaries, we prepare financial statements inforeign currencies. In preparing consolidated financial statements, there is a risk associated with exchange
fluctuation when converting into yen equivalent.
[3] Potential Risk of Overseas Activities
Our group is engaged in marketing and manufacturing overseas, focusing on China and other Southeast Asian
countries. Our group will monitor the local situations with the greatest care and take appropriate actions on atimely basis. However, our group’s operating results and financial condition might be affected by unforeseen
circumstances arising from local political conditions, governments, legal restrictions, taxation systems, customs,
etc.
[4] Risk Associated with Quality of Goods and Products
The products of our group are manufactured by paying due attention based on systematic quality control.
However, maintenance and repair or replacement might be required due to unforeseen troubles of relevant
products. Also, since our group is not directly involved in manufacturing of many of imported raw materials,
defects that our group is not directly associated with may occur and we might be obligated to cease sales andcollect such materials. Although we are prepared to take prompt and appropriate actions to cope with the risks
involved in quality of manufactured products and commercial goods, it may result in affecting our group’s operating
results and financial condition.

7[5] Risks of New Investment
Our group is in a quest to pursue high-value-added business all the time. To do this, we must take measures suchas aggressive investment and acquisition of trade rights in some situations; however, these measures may involve
higher potential risks than conventional business risks. Though we will appropriately take actions to such newrisks by sufficient preparations, it might affect operating results and financial condition of our group as a result.

8

2. Tomoe Engineering and Companies
Tomoe Group consists of Tomoe Engineering and its nine subsidiaries. The group is mainly engaged in manufacture anddistribution of centrifuges and trading of chemical products. Business activities of the group are divided into the following
three main categories. “Business Segments,” which will be discussed in a later section, are based on the following businessactivity segments. Since “other businesses” involve no consolidated subsidiary, “Business Segments” do not include figures
related to them.
Machinery & Equipment Business:
Tomoe Engineering manufactures and distributes centrifuges. Its subsidiary Tomoe Machinery Service provides
centrifuge users with after-sales services as well as parts. Its subsidiary Tomoe Machinery undertakes machining
and sheet-metal processing of centrifuge. Tomoe Engineering consigns manufacture of the centrifuges and theafter-sales service to its subsidiary Tomoe Engineering (Shanghai).
Chemical Products Business:
Interstella Plastics (Shenzhen) and Stella Tech Engineering Plastics (Shenzhen) are engaged in coloring andcompounding of plastic materials. Our affiliate, Interstella is an investing company of Stella Tech Engineering Plastics(Shenzhen) and also serves as a contact for purchasing and sales. Tomoe (Hong Kong) is functioning as central
core for sales activity in China in Tomoe Group. Tomoe Wine & Spirits distributes wines and spirits imported by
Tomoe Engineering.
Other Businesses:
Tomoe Butsuryu subcontracts with our company for products’ transportation and warehousing.
Schematic diagram of Tomoe’s operation is on the next page.

9

(◎: Consolidated subsidiaries)

Products sale

Tomoe Butsuryu(Subsidiary)
Logistics & warehousingof our products

materials

Products sale◎Interstella Plastics(Shenzhen)(Subsidiary)
Plastic coloring and compounding

Chemical Products BusinessTomoe Engineering Co., Ltd.

Subcontracting

Purchase of

Machinery & Equipment Business

10

Logistics & warehousing

Products sale

Purchase of products◎Interstella (Subsidiary)
Purchase of plastic materials & sale

Products sale

Purchase of products

Tomoe Wine &Spirits(Subsidiary)
Sale of imported wines

Products sale

Products sale
Products sale

Purchase of parts

Purchase of materials◎Tomoe (Hong Kong)(Subsidiary)
Purchase & sale of chemical industry products

Products sale

Manufacturingconsignment & parts sale

Products sale

Purchase of products◎ Stella-Tech Engineering Plastics(Shenzhen)(Subsidiary)
Plastic coloring & compounding◎Tomoe Machinery(Subsidiary)
Sheet metal processing &machining◎Tomoe Engineering(Shanghai) (Subsidiary)
Manufacturing, sale &after-sale services of our
products
Maintenance of delivered
products

Parts sale

Maintenance of delivered products◎Tomoe Machinery
Service(Subsidiary)
After-sale services &parts sale of our products

After-sale services& products sale

After-sale services& parts sale

Customers

3. Management Policy(1) Basic Management Philosophy
Our basic management philosophy is to contribute to society and provide a good quality of life to all people
involved through growth and development of our company with spirit of creation and entrepreneurship and toprovide our customers with high level of technologies and excellent products. Guided by this policy, we shall be
engaged in the manufacture and sale of machinery based primarily on solid-liquid separation techniques andimportation of unique and specialty raw materials for chemical industry.
(2) Target Management IndicesTomoe consists of two business divisions, each of which has its unique characteristics: Machinery & Equipment
Business that manufactures and sells mainly centrifuges and other separation equipment and Chemical Products
Business that sells commercial products, mainly imported raw materials, as a specialized trading company.
Rather than just aiming for a volume growth, we always try to develop and deal in unique value-added productsthat require specialized technology and expertise, even if their market is not so big. To achieve these, we regard
improvement of profitability as our primary management goal. As a management indicator for meeting this goal,
we give highest priority to ordinary income, which directly expresses the absolute value and change of profitability.
(3) Mid- and Long-term Management Strategy
The mid- and long-term management strategy of Machinery & Equipment Business is to develop new products,
reduce manufacturing cost, and develop overseas markets, and that of Chemical Products Business is to
discover unique new commercial products to expand business in China.
To further develop the above strategy we formulated the Eighth Mid-term Management Plan “TIP10” (from year
ended October 31, 2008 to year ending October 31, 2010) in February 2008 by setting the themes, “Succession”
to strengthen core business and “Innovation” to make a great leap toward the further.
Since we experienced unprecedented changes in economic situation and business environment, we
strengthened “TIP10” by adding measures to “attack specific businesses,” which was marketing strategy fromdifferent views and to strengthen earning capacity, and decided to concentrate on continual implementation.
Though the outlook for the fiscal year ending on October 31, 2010, which will be the final year for the mid-term
management plan “TIP10,” will be different from the initial plan standards because of radical changes of economic
situations, we will try to build an unshakable performance base by performing specific sales plans advocated in
the plan “TIP10” and its reinforcement plans.
(4) Challenges to be Addressed
We shall continue to seek to improve stable profitability of Machinery & Equipment Business and Chemical
Products Business as two wheels of a cart and improve and strengthen the corporate governance andcompliance as a major issue.
Machinery & Equipment Business:
We will continue to improve the performance and energy conservation of our core product (centrifuges) andpursue the development of new products and their marketing at the same time. Regarding the overseas market,
we will continue to develop the Chinese and other Asian markets and US market. We will also concentrate on
making fuel from sludge and industrial wastes for CO2 reduction, which is the theme, “Innovation,” of the Eighth11Mid-term Management Plan, “TIP10.”
Chemical Products Business:
We shall strengthen our core business, make a commitment in high-tech area, and continue to develop
high-value-added products and introduce them to markets to improve our financial position. Regarding Huanan
market, we will further strengthen cooperation between the head office and overseas subsidiaries in Hong Kongand Shenzhen and build a foundation to expand profit. We will continue working on the nano-related businessthat is the theme, “Innovation,” of the Eighth Mid-term Management Plan, “TIP10.”
To insure compliance management and to improve corporate ethics, we have made efforts to enhance ourcorporate governance and compliance, including formation of the Corporate Ethics Committee, and we shallcontinue our efforts. As for internal control regarding financial report based on Financial Instruments andExchange Law, we shall also continue our efforts and focus on making improvements.

124. Consolidated Financial Statements(1) Balance Sheets
Year Ended October 31, 2008

Year Ended October 31, 2009

Cash and Deposits

1,811,434

4,447,793

Notes and Accounts Receivable-Trade

15,651,542

11,995,465

Inventories

5,472,066

0

Merchandise and Finished Goods

02,591,153

Work in Process

0914,572

Raw Materials and Supplies

0787,926

Deferred Tax Assets

628,526

398,437

Others426,276

356,812

Allowance for Doubtful Accounts(133,061)(34,896)

Total Current Assets

23,856,785

21,457,266

2,508,379

2,522,652

Accumulated Depreciation(1,355,419)(1,433,070)

Buildings and Structures, Net

1,152,960

1,089,581

Machinery, Equipment and Vehicles

3,388,940

3,400,759

Accumulated Depreciation(2,331,611)(2,482,626)

Machinery, Equipment and Vehicles, Net

1,057,328

918,132

970,253

970,253

088,451

Accumulated Depreciation

0(29,614)

Lease Assets, Net

058,837

1,015,170

956,862

Accumulated Depreciation(822,301)(869,884)

Others, Net

192,869

86,9783,373,412

3,123,783

22,064

48,713

Investment Securities

880,003

903,416

Guarantee Deposits

476,639

410,359

Deferred Tax Assets

34,02353,522Derivatives

22,5220

Others563,610506,668

Allowance for Doubtful Accounts(69,729)(91,282)

Total Investments and Other Assets

1,907,070

1,782,685

Total Noncurrent Assets

5,302,547

4,955,182

Total Assets

29,159,333

26,412,448

AssetsCurrent Assets

Noncurrent Assets
Property, Plant and Equipment
Buildings and Structures

Land
Lease Assets

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

13Year Ended October 31, 2008

Year Ended October 31, 2009

Notes and Accounts Payable-Trade

7,177,796

5,430,683

Short-Term Loans Payable

1,054,069

692,481028,107

Accounts Payable-Others

550,233

427,104

Income Taxes Payable

647,878

53,760

Advances Received

291,376

243,984

Provision for Bonuses

1,135,803

791,939

Provision for Directors' Bonuses

64,806

48,470Allowance for Product Warranty

175,261

154,997

Others217,108

294,512

11,314,334

8,166,042

85,0000046,686

Provision for Retirement Benefits

31,95829,034

Provision for Directors' Retirement Benefits

257,780

142,760

4,514

50,901055,478

Total Noncurrent Liabilities

379,253

324,861

Total Liabilities

11,693,588

8,490,904

Capital Stock

1,061,210

1,061,210

Capital Surplus

1,483,410

1,483,410

Retained Earnings

14,913,596

15,557,577

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

17,095,213

17,739,152

Securities

12,18877,749Deferred Gains or Losses on Hedges

26,115(712)

Foreign Currency Translation Adjustment

21,748(173,790)

Total Valuation and Translation Adjustments

60,052(96,753)

Minority Interests

310,478

279,145

Total Net Assets

17,465,744

17,921,544

Total Liabilities and Net Assets

29,159,333

26,412,448

Liabilities and Net Assets
Liabilities
Current Liabilities

Lease Obligations

Total Current Liabilities
Noncurrent Liabilities
Long-Term Loans Payable
Lease Obligations

Deferred Tax Liabilities
Derivatives Liabilities

Net Assets
Shareholders’ Equity

Total Shareholders’ Equity
Valuation and Translation Adjustments
Valuation Difference on Available-for-Sale14

(2) Statements of Consolidated Income(Thousands of yen)
Year Ended October 31, 2008

Year Ended October 31, 2009

Net Sales

47,542,836

36,304,727

Cost of Sales

38,329,506

28,790,924

Gross Profit

9,213,330

7,513,803

Selling, General and Administrative Expenses

6,757,121

5,928,589

Operating Income

2,456,209

1,585,213

Interest income

11,805

1,817

Dividends Income

55,11447,221

Rent Income

25,311

25,111

Foreign Exchange Gains

78,84958,054

Others102,948

65,292

274,030

197,497

Interest Expenses

63,94920,618Loss on Sales of Notes Payable

11,843

3,893

Commission Paid

23,0249,975

043,901

17,886

17,488

Total Non-Operating Expenses

116,703

95,878

Ordinary Income

2,613,535

1,686,832

0

3,225

Gain on Sales of Investments

5,627

0

Reversal of Allowance for Doubtful Accounts

32,25451,707

Total Extraordinary Income

37,88154,932

Loss on Sales of Noncurrent Assets

2,959

113

Loss on Retirement of Noncurrent Assets

9,768

4,709

Loss on Sales of Investment Securities

116

6,039

Loss on Valuation of Investment Securities

29,331

83,716

Loss on Valuation of Investments

7,115

0

Loss on Valuation of Membership

3,300

2,598

Provision of Allowance for Doubtful Accounts

11,337

1,988

Total Extraordinary Losses

63,92999,165Interests

2,587,487

1,642,599

Income Taxes-Current

1,162,491

401,136

Income Taxes-Deferred

11,219232,869

1,173,711

634,005

48,647

15,3491,365,128

993,244

Non-Operating Income

Total Non-Operating Income
Non-Operating Expenses

Loss on Valuation of Derivatives
OthersExtraordinary Income
Gain on Sales of Investment Securities

Extraordinary Losses

Income before Income Taxes and Minority

Total Income Taxes
Minority Interests Income
Net Income15(3) Consolidated Statements of Changes in Shareholders' Equity(Thousands of yen)
Year Ended October 31, 2008

Year Ended October 31, 2009

Shareholders' Equity
Common Stock
Surplus during Previous Fiscal Year

1,061,210

1,061,210

001,061,210

1,061,210

1,483,410

1,483,410

001,483,140

1,483,410

13,897,737

14,913,596

Cash Dividend Paid

(349,269)(349,263)

Net Income

1,365,128

993,244

Total Amount Changed

1,015,859

643,981

Surplus during This Fiscal Year

14,913,596

15,557,577(362,815)(363,003)

Issued Shares Reacquired

(188)

(42)

Total Amount Changed

(188)

(42)

(363,003)(363,045)

16,079,542

17,095,213

Cash Dividend Paid

(349,269)(349,263)

Net Income

1,365,128

993,244

(188)

(42)

Total Amount Changed

1,015,671

643,938

Surplus during This Fiscal Year

17,095,213

17,739,152

Changes during This Fiscal Year
Total Amount Changed
Surplus during This Fiscal Year
Capital Surplus
Surplus during Previous Fiscal Year
Changes during This Fiscal Year
Total Amount Changed
Surplus during This Fiscal Year
Retained Earnings
Surplus during Previous Fiscal Year
Changes during This Fiscal Year

Issued Shares Reacquired
Surplus During Previous Fiscal Year
Changes During This Fiscal Year

Surplus during This Fiscal Year
Total Shareholders’ Equity
Surplus during Previous Fiscal Year
Changes during This Fiscal Year

Issued Shares Reacquired16

(Thousands of yen)
Year Ended October 31, 2008

Year Ended October 31, 2009

Revaluation and Translation Adjustments
Valuation Difference on Available-for-sale
Securities
Surplus during Previous Fiscal Year436,288

12,188(Except Shareholders' Equity)(424,100)

65,561

Changes during This Fiscal Year(424,100)

65,561

12,18877,749218,722

26,115(Except Shareholders' Equity)(192,606)(26,828)

Changes during This Fiscal Year

(192,606)(26,828)

26,115(712)

19,084

21,748(Except Shareholders' Equity)

2,664(195,539)

Changes during This Fiscal Year

2,664

(195,539)

21,748(173,790)

674,095

60,052(Except Shareholders' Equity)(614,042)(156,806)

Changes during This Fiscal Year

(614,042)(156,806)

60,052(96,753)

197,617

310,478(Except Shareholders' Equity)

112,861(31,333)

Changes during This Fiscal Year112,861(31,333)

310,478

279,145

Changes during This Fiscal Year
Total (Net) Amount Changed

Surplus during This Fiscal Year
Deferred Gains or Losses on Hedges
Surplus during Previous Fiscal Year
Changes during This Fiscal Year
Total (Net) Amount Changed

Surplus during This Fiscal Year
Foreign Currency Translation Adjustment
Surplus during Previous Fiscal Year
Changes during This Fiscal Year
Total (Net) Amount Changed

Surplus during This Fiscal Year
Total Revaluation and Translation
Adjustments
Surplus during Previous Fiscal Year
Changes during This Fiscal Year
Total (Net) Amount Changed

Surplus during This Fiscal Year
Minority Interests
Surplus during Previous Fiscal Year
Changes during This Fiscal Year
Total (Net) Amount Changed

Surplus during This Fiscal Year17

(Thousands of yen)
Year Ended October 31, 2008

Year Ended October 31, 2009

Total Net Assets
Surplus during Previous Fiscal Year

16,951,254

17,465,744

Cash Dividend Paid

(349,269)(349,263)

Net Income

1,365,128

993,244

(188)

(42)

(Except Shareholders' Equity)(501,181)(188,139)

Total Amount Changed

514,489455,799

Surplus during This Fiscal Year

17,465,744

17,921,544

Changes during This Fiscal Year

Issued Shares Reacquired
Total (Net) Amount Changed18

(4) Consolidated Statements of Cash Flows(Thousands of Yen)
Year EndedYear Ended

October 31, 2008

October 31, 2009

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

2,587,487

1,642,599

Depreciation and Amortization

385,220

507,424

Increase (Decrease) in Provision for Bonuses

33,548(341,878)

Increase (Decrease) in Provision for Directors' Bonuses(3,293)(16,335)

Increase (Decrease) in Allowance for Product Warranty
Increase (Decrease) in Provision for Retirement Benefits(61,364)(479)(20,263)(2,924)

Increase (Decrease) in Provision for Directors' Retirement Benefits

43,320(115,020)

Increase (Decrease) in Allowance for Doubtful Accounts

35,922(76,611)

Interests and Dividends Income(66,920)(49,039)

Interest Expenses

63,94920,618Foreign Exchange Losses (Gains)

23,634

9,361

Loss (Gain) on Valuation of Investment Securities

29,331

83,716043,901

Loss on Valuation of Investments

7,115

0

Loss (Gain) on Sales of Investments(5,627)0

Loss (Gain) on Sales of Investment Securities

116

2,814

Loss (Gain) on Sales of Noncurrent Assets

2,959

113

Loss on Retirement of Noncurrent Assets

9,768

4,709

Loss on Valuation of Membership

3,300

2,598

Receivable-Trade

3,018,751

3,368,580

Decrease (Increase) in Inventories(1,237,525)

1,014,662

Increase (Decrease) in Notes and Accounts Payable-Trade

125,327(1,534,956)

Increase (Decrease) in Accounts Payable-Others(116,925)(69,016)

Increase (Decrease) in Advances Received

142,409(43,463)

Increase (Decrease) in Accrued Consumption Taxes(8,827)

117,215

Others, Net

31,991

300,261

5,043,191

4,849,071

Interests and Dividends Income Received

59,31050,273

Interest Expenses Paid

(45,661)(41,028)(1,091,032)(1,214,047)

3,965,808

3,644,268

Loss (Gain) on Valuation of Derivatives

Decrease (Increase) in Notes and Accounts

Sub total

Income Taxes Paid
Net Cash Provided by (Used in) Operating Activities

19

(Thousands of Yen)
Year EndedYear Ended

October 31, 2008

October 31, 2009

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

0

100,000

Purchase of Property, Plant and Equipment(644,223)(246,733)

Proceeds from Sales of Property, Plant and Equipment

1,580

806

Purchase of Intangible Fixed Assets(9,796)(15,323)

Purchase of Investment Securities(16,531)(14,170)283

11,795

Collection of Loans Receivable

30,201

10,872

Payments of Loans Receivable(3,680)(1,160)

Guarantee Deposits (Increase)(69,201)

55,119Others, Net

66,677

10,121(644,689)(88,671)(2,957,753)(239,857)0(38,659)

Proceeds from Long-Term Loans Payable

85,000

0

Repayment of Long-Term Loans Payable(240,000)(115,000)

Purchase of Treasury Stock

(188)

(42)

Proceeds from Payment from Minority Shareholders

50,0800(349,269)(349,263)(7,781)(7,315)(3,419,911)(750,137)

Equivalents(63,668)(69,100)

Net Increase (Decrease) in Cash and Cash Equivalents
Cash and Cash Equivalents at Beginning of Period(162,461)

2,736,358

1,873,895
1,711,434

1,711,434
4,447,793

Proceeds from Sales of Investment Securities

Net Cash Provided by (Used in) Investment Activities
Net Cash Provided by (Used in) Financing Activities
Net Increase (Decrease) in Short-Term Loans Payable
Repayments of Lease Obligations

Cash Dividends Paid
Cash Dividends Paid to Minority Shareholders
Net Cash Provided by (Used in) Financing Activities
Cash and Cash Equivalents
Effect of Exchange Rate Change on Cash and Cash

Cash and Cash Equivalents at End of This Fiscal Year20

(5) Notes for Premise of Going Concern(6) Changes of Important Items to be Basis for Making Consolidated Financial Statements[Changes of Accounting Policy]
Year Ended October 31, 2009
(1) Application of Accounting Standards for Inventory Valuation
From the current consolidated fiscal year we have applied “Accounting Standards for Inventory Valuation” (ASBJ
Statement No. 9) and changed to historical-cost method (book value devaluation based on decrease in profitability).
The effects that this change gives to the gain and loss for the segment information are minor.
(2) Application of Accounting Standards for Lease Transactions
With regard to non-transfer-ownership finance lease, it was treated as lease transaction before; however, inconformity with “Accounting Standards for Lease Transactions” (ASBJ Statement No. 13) and “Guidance on
Accounting Standards for Lease Transactions” (ASBJ Guidance No. 16), it is treated as ordinary purchase and saletransaction from the current consolidated fiscal year. The effects that this change gives to the gain and loss for thecurrent consolidated fiscal year are minor. The effects to the segment information are written in the pertinent
sections.
(3) Application of Practical Solution on Unification of Accounting Policies Applied to Foreign Subsidiaries for Consolidated
Financial Statements
From the current consolidated fiscal year, we have applied “Practical Solution on Unification of Accounting Policies
Applied to Foreign Subsidiaries for Consolidated Financial Statements” (ASBJ PITF No. 18) and made the necessary
adjustments in consolidated financial statements. The effects that this change gives to the gain and loss for thecurrent consolidated fiscal year are minor. The effects to the segment information are written in the pertinent
sections.
[Changes of Presentation Method]Year Ended October 31, 2009
(Consolidated Balance Sheet)
In accordance with the partial modification of financial statements under Cabinet Order (Cabinet Office Regulation No.
50, August 7, 2008), we have classified “Inventories” presented in the statements for the previous consolidated fiscal year
into “Merchandise and Finished Goods,” “Work in Process,” and “Raw Materials and Supplies” from the current
consolidated fiscal year. “Merchandise and Finished Goods,” “Work in Process,” and “Raw Materials and Supplies” thatare included in “Inventories” in the statements for the previous consolidated fiscal year are 3,285 million yen, 1,527 million
yen, and 658 million yen, respectively.
[Additional Information]
Year Ended October 31, 2009
(Depreciation Cost)
As a result of our review on usage of the assets etc. for compliance with modification of Corporate Tax Act, we havechanged durable years of machinery and equipment. The effects that this change gives to the gain and loss for thecurrent consolidated fiscal year are minor. The effects to the segment information are written in the pertinent sections.

21

(7) Notes for Consolidated Financial Statements(Segment Information)
Year Ended October 31, 2008
Machinery &Equipment
Business
I. Sales and Operating Income:Sales(1) Sales to UnaffiliatedCustomers(2) Internal Sales Among
Segments or AmountTransferred
Total
Operating Costs
Operating Income
II. Assets, Depreciation Costs,
Impairment Loss and Capital
Expenditures
AssetsDepreciation Costs
Depreciation Loss
Capital Expenditures(Thousands of yen)
Deletion or
Consolidated
Total
Company

Chemical
Products
Business

Total

12,547,664

34,995,172

47,542,836

047,542,836

0
12,547,664
11,574,200
973,464

034,995,172
33,512,427
1,482,745

047,542,836
45,086,627
2,456,209

0
0
0
0

0
47,542,836
45,086,627
2,456,209

10,145,637

16,322,257

26,467,894

2,691,438

29,159,333

297,4030
275,064

87,816
0
325,348385,2200600,412000385,2200600,412(Notes)1. Business classification is by aggregate sales classification.
2. Main products and goods in each business:(1) Machinery & equipment business: Various types of centrifuges, other machinery(2) Chemical products business: Synthetic resin, inorganic materials, and other chemical products(3) Of the assets in the current consolidated fiscal year, the amount of the total company assets included indeletion or total company items is 2,691,438 thousand yen. The main items are surplus funds applied(deposits) and long-term investment funds (investment securities) of the parent company.
3. From the current consolidated fiscal year, depreciation expense of tangible fixed assets acquired before March 31,
2007 is calculated in conformity to modification of Corporate Tax Act; difference between the equivalent of 5% of
acquisition price and memorandum price is depreciated using straight-line method over a five years’ period startingfrom the consolidated fiscal year following the consolidated fiscal year when the book value becomes 5% of
acquisition price in accordance with the depreciation method based on Corporate Tax Act before modification.
The effect of this change on segment information is insignificant.

22Year Ended October 31, 2009

I. Sales and Operating Income:Sales(1) Sales to UnaffiliatedCustomers(2) Internal Sales Among
Segments or AmountTransferred
Total
Operating Costs
Operating Income
II. Assets, Depreciation Costs,
Impairment Loss and Capital
Expenditures
AssetsDepreciation Costs
Depreciation Loss
Capital Expenditures(Thousands of yen)
Consolidated
Deletion or
Total
Company

Chemical
Products
Business

Total

11,950,908

24,353,818

36,304,727

0

36,304,727

0
11,950,908
11,114,614
836,2940
24,353,818
23,604,899
748,9190
36,304,727
34,719,513
1,585,213

0
0
0
0

0
36,304,727
34,719,513
1,585,213

7,804,364

13,256,874

21,061,238

5,351,209

26,412,448

329,6490
254,102

177,774
091,473

507,424
0
345,5750507,424
0
345,575

Machinery &Equipment
Business

0(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) Of the assets in the current consolidated fiscal year, the amount of the total company assets included indeletion or total company items is 5,351,209 thousand yen. The main items are surplus funds applied(deposits) and long-term investment funds (investment securities) of the parent company.
3. Changes for Accounting Standards(1) Application of Accounting Standards for Inventory Valuation
From the current consolidated fiscal year we have applied “Accounting Standards for Inventory Valuation”(ASBJ Statement No. 9) and changed to historical-cost method (book value devaluation based on decreasein profitability). The effects that this change gives to the gain and loss for the segment information are minor.
(2) Application of Accounting Standards for Lease Transactions
With regard to non-transfer-ownership finance lease, it was treated as lease transaction before; however, inconformity with “Accounting Standards for Lease Transactions” (ASBJ Statement No. 13) and “Guidance on
Accounting Standards for Lease Transactions” (ASBJ Guidance No. 16), it is treated as ordinary purchaseand sale transaction from the current consolidated fiscal year. The effects that this change gives to the gain
and loss for the current consolidated fiscal year are minor. The effects to the segment information are written
in the pertinent sections.
(3) Application of Practical Solution on Unification of Accounting Policies Applied to Foreign Subsidiaries for
Consolidated Financial Statements
From the current consolidated fiscal year, we have applied “Practical Solution on Unification of Accounting
Policies Applied to Foreign Subsidiaries for Consolidated Financial Statements” (ASBJ PITF No. 18) andmade the necessary adjustments in consolidated financial statements. The effects that this change gives to
the gain and loss for the segment information are minor.

23

4. As written in [Additional Information], (6) Changes of Important Items to be Basis for Making Consolidated Financial
Statements, we have changed durable years of machinery and equipment as a result of our review on usage of theassets etc. for compliance with modification of Corporate Tax Act. The effects that this change gives to the gain
and loss for the segment information are minor.
(Segment by Location)
Year Ended October 31, 2008

(Thousands of yen)
Japan

Asia

Total

Deletion or

Consolidated

EntireCompany
I. Sales and Operating Income:Sales(1) Sales to Unaffiliated Customers

42,465,516

5,077,319

47,542,836

047,542,836

398,213

115,939

514,153(514,153)

042,863,730

5,193,259

48,056,990(514,153)

47,542,836

Operating Costs

40,577,370

5,025,452

45,602,822(516,194)

45,086,627

Operating Income

2,286,360

167,8072,454,167

2,041

2,456,209

23,194,597

3,606,426

26,801,023

2,358,309

29,159,333(2) Internal Sales Among Segments
or Amount Transferred
Total

II. Assets(Notes)1.

Included in Asia are three countries, China, Korea, and Indonesia.

2.

Of the assets in the current consolidated fiscal year, the amount of the total company assets included in deletionor entire company items is 2,691,438 thousand yen. Main items are surplus funds applied (deposits) andlong-term investment funds (investment securities) of the parent company.

3.

From the current consolidated fiscal year, depreciation expense of tangible fixed assets acquired before March
31, 2007 is calculated in conformity to modification of Corporate Tax Act; difference between the equivalent of
5% of acquisition price and memorandum price is depreciated using straight-line method over a five years’
period starting from the consolidated fiscal year following the consolidated fiscal year when the book value
becomes 5% of acquisition price in accordance with the depreciation method based on Corporate Tax Act
before modification. The effect of this change on segment information is insignificant.

24Year Ended October 31, 2009

(Thousands of yen)
Japan

Asia

Total

Deletion or

Consolidated

EntireCompany
I. Sales and Operating Income:Sales(1) Sales to Unaffiliated Customers

33,547,196

2,757,530

36,304,727

0

36,304,727

362,241

151,072

513,313(513,313)

0

33,909,437

2,908,603

36,818,041(513,313)

36,304,727

Operating Costs

32,312,927

2,916,644

35,229,571(510,057)

34,719,513

Operating Income

1,596,510(8,040)1,588,469(3,256)

1,585,213

19,034,683

2,238,833

21,273,516

5,138,932

26,412,448(2) Internal Sales Among Segments
or Amount Transferred
Total

II. Assets(Notes)1. Main countries or regions included in the areas other than Japan:
Asia: China, Korea, and Indonesia (Total 3 countries)
2. Of the assets in the current consolidated fiscal year, the amount of the total company assets included in deletion or
total company items is 5,351,209 thousand yen. The main items are surplus funds applied (deposits) andlong-term investment funds (investment securities) of the parent company.
3. Changes for Accounting Standards(1) Application of Accounting Standards for Inventory Valuation
From the current consolidated fiscal year we have applied “Accounting Standards for Inventory Valuation”(ASBJ Statement No. 9) and changed to historical-cost method (book value devaluation based on decreasein profitability). The effects that this change gives to the gain and loss for the segment information are minor.
(2) Application of Accounting Standards for Lease Transactions
With regard to non-transfer-ownership finance lease, it was treated as lease transaction before; however, inconformity with “Accounting Standards for Lease Transactions” (ASBJ Statement No. 13) and “Guidance on
Accounting Standards for Lease Transactions” (ASBJ Guidance No. 16), it is treated as ordinary purchaseand sale transaction from the current consolidated fiscal year. The effects that this change gives to the gain
and loss for the current consolidated fiscal year are minor. The effects that this change gives to the gain andloss for the segment information are minor.
(3) Application of Practical Solution on Unification of Accounting Policies Applied to Foreign Subsidiaries for
Consolidated Financial Statements
From the current consolidated fiscal year, we have applied “Practical Solution on Unification of Accounting
Policies Applied to Foreign Subsidiaries for Consolidated Financial Statements” (ASBJ PITF No. 18) andmade the necessary adjustments in consolidated financial statements. The effects that this change gives to
the gain and loss for the segment information are minor.
4. As written in [Additional Information], (6) Changes of Important Items to be Basis for Making Consolidated Financial
Statements, we have changed durable years of the machinery and equipment as a result of our review on usage ofthe assets etc. for compliance with modification of Corporate Tax Act. The effects that this change gives to the gain
and loss for the segment information are minor.

25

(Overseas Sales)Year Ended October 31, 2008

(Thousands of yen)Asia

I. Overseas Sales

Other Regions

Total

9,091,954

1,325,226

10,417,181

0047,542,836

19.1

2.8

21.9

II. Consolidated Sales
III. Percentage of Overseas Sales for Consolidated Sales(Percent)(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.
Year Ended October 31, 2009

(Thousands of yen)Asia

I. Overseas Sales

Other Regions

Total

6,965,307

1,994,390

8,959,6980036,304,727

19.2

5.5

24.7

II. Consolidated Sales
III. Percentage of Overseas Sales for Consolidated Sales(Percent)(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.

26

(Per Share Information)
Year Ended October 31, 2008
(1) Net asset per share:

Year Ended October 31, 200915(1) Net asset per share:¥136.80(2) Net income per share:¥1,719.

(2) Net income per share:¥1,767.97¥99.53

Income per share for this fiscal year after adjustment of

Income per share for this fiscal year after adjustment of thethe residual securities is not presented as there are noresidual securities is not presented as there are no residual

residual securities.

securities.

(Note 1) Calculation basis for net asset per share are as follows:Year EndedYear Ended

October 31, 2008

October 31, 2009

17,465,744

17,921,544

Amount deducting from total for net asset (Thousands of yen)

310,478

279,145(Quotient of minority shareholders)(310,478)(279,145)

Net asset for common stock (Thousands of yen)

17,155,266

17,642,398

9,978,952

9,978,902

Total for net asset (Thousands of yen)

Number of common stock as of the end of the current consolidated fiscal
year used for calculation of net assets per share (Share)(Note 2) Calculation basis for net income per share are as follows:Year EndedYear Ended

October 31, 2008

October 31, 2009

Net income for this fiscal year (Thousands of yen)

1,365,128

993,244

Net income for common stock (Thousands of yen)

1,365,128

993,244

Average number of common stock during the fiscal year

9,979,000

9,978,921(Significant subsequent events)
None.
(Omission of disclosure)We omit disclosure of the notes for the consolidated balance sheets, statements of consolidated income, consolidated
statements of changes in shareholders’ equity, and consolidated statements of cash flows and notes for businesscombinations related to lease transactions, transactions with related parties, deferred tax accounting, securities, derivativetransactions, retirement benefits, stock options, etc. are omitted, as we do not consider they are in significant need fordisclosing in the financial results.

27

5. Non-Consolidated Financial Statements(1) Balance Sheets(Thousands of yen)thAssetsth

79 Period

80 Period(October 31, 2008)(October 31, 2009)

Current Assets
Cash and Deposits

871,7883,236,812

Notes Receivable-Trade

3,941,182

3,105,418

Accounts Receivable-Trade

10,304,814

8,149,647

Merchandise

1,927,885

0Finished Goods

149,442

0

Raw Materials

0

1,722,880

553,73701,404,235

828,102

23,9970Advance Payment

0732,453

Prepaid Expense

40,00853,504

Accrued Revenue

92,75975,068

Short-Term Loans Receivable

270,163

201,813

Deferred Tax Assets

39,802

29,621Others611,959

380,761

Allowance for Doubtful Accounts

30,20819,192

Total Current Assets(133,771)(35,093)

20,128,214

18,500,184

2,076,342

2,081,019

Accumulated Depreciation(1,037,214)(1,107,512)

Buildings, Net

1,039,127

973,506

146,549

146,549(113,911)(119,605)

Structures, Net

32,63826,944

Machinery and Equipment

2,287,841

2,328,842(1,786,837)(1,880,437)

501,003448,405

46,93739,437(45,059)(38,254)

1,877

1,183

Tools, Instrument and Equipment

810,647

832,858

Accumulated Depreciation(729,274)(775,530)

81,37357,328925,882

925,882085,463

Accumulated Depreciation

0(28,717)

Lease Assets, Net

056,746Work in Process
Supplies
Raw Materials and Supplies

Noncurrent Assets
Property, Plant and Equipment
Buildings

Structures
Accumulated Depreciation

Accumulated Depreciation
Machinery and Equipment, Net
VehiclesAccumulated Depreciation
Vehicles, Net

Tools, Instrument and Equipment, Net
Land
Lease Assets

28

(Thousands of yen)thth

79 Period

80 Period(October 31, 2008)(October 31, 2009)

Construction in Progress

0

6,518

2,581,902

2,496,514

12,937

10,383

Lease Asset014,630Software in Progress

0

14,718

Telephone Rights

8,165

8,165

Total Intangible Assets

21,10347,898Investment Securities

828,503851,916

Stocks of Affiliated Companies

483,765

483,765

Investments – Affiliated Companies

371,395

371,395

Long-Term Loans Receivable4130Long-Term Loans Receivable to

5,652

4,489

Claims in Bankruptcy

22,60542,175Prepaid Pension Expense

479,198

419,892

Guarantee Deposits

386,385

391,156

Derivatives

22,5220

Others82,72079,589Allowance for Doubtful Accounts(69,729)(91,282)

Total Investments and Other Assets

2,613,432

2,553,098

Total Noncurrent Assets

5,216,438

5,097,511

Total Assets

25,344,653

23,597,696

Total Property, Plant and Equipment
Intangible Assets
SoftwareInvestments and Other Assets

Employees

29

(Thousands of yen)thLiabilities and Net Assets

79 Period

80th Period(October 31, 2008)(October 31, 2009)

Liabilities
Current Liabilities
Notes Payable-Trade789,310

714,942

Accounts Payable-Trade

5,263,320

4,194,574

Short-Term Loans Payable

240,000

0

90,0000027,210Accounts Payable-Others

540,472

379,869

Income Taxes Payable

570,776

25,542

Accrued Business Tax

8,502

8,083

0

102,063

1,038,742

707,034

Provision for Directors' Bonuses

63,94846,091

Allowance for Product Warranty

175,261

154,997

Accrued Expenses

154

15

Advances Received

289,966

240,936

Deposit Payable

58,95982,798

Guarantee Deposit

74,32578,3889,203,737

6,762,549

045,491

4,863

5,743

257,780

142,760

4,266

50,699055,478

Total Noncurrent Liabilities

266,909

300,172

Total Liabilities

9,470,647

7,062,721

1,061,210

1,061,210

1,483,410

1,483,410

1,483,410

1,483,410

230,000

230,000

Provision for Dividend Reserve

250,000

250,000

Reserve for Deferred Gains on Fixed Assets

28,17526,72011,500,000

12,400,000

Long-Term Loans Payable to be Repaid
within One Year
Lease Obligations

Accrued Consumption Tax
Provision for Bonuses

Total Current Liabilities
Noncurrent Liabilities
Lease Obligations
Provision for Retirement Benefits
Provision for Directors' Retirement Benefits
Deferred Tax Liabilities
Derivative Liabilities

Net Assets
Shareholders’ Equity
Capital Stock
Capital Surplus
Capital Reserve
Total Capital Surplus
Retained Earnings
Legal Reserve of Retained Earnings
Other Retained Surplus

Other Reserve30

(Thousands of yen)

Earned Surplus Carried Forward

79th Period

80th Period(October 31, 2008)(October 31, 2009)

1,645,908

1,369,642

13,654,084

14,276,362(363,003)(363,045)

15,835,700

16,457,936

Securities

12,18877,749Deferred Gains or Losses on Hedges

26,115(712)

Total Valuation and Translation Adjustments

38,304

77,037

Total Net Assets

15,874,005

16,534,974

Total Liabilities and Net Assets

25,344,653

23,597,696

Total Retained Earnings
Treasury Stock
Total Shareholders’ Equity
Valuation and Translation Adjustments
Valuation Difference on Available-for-Sale31

(2) Statements of Consolidated Income(Thousands of yen)th

79 Period

80th Period(October 31, 2008)(October 31, 2009)

Net Sales
Sales of Finished Goods

12,030,110

11,382,924

Merchandise Sale

31,267,197

22,542,689

43,297,308

33,925,613

Beginning Inventory

38,305

149,442

Cost of Manufacture

8,474,503

7,997,336

8,512,808

8,146,778

149,442

18,3638,363,366

8,128,415

Beginning Inventory

2,084,509

1,927,885

Purchase Amount

26,716,460

18,859,776

28,800,970

20,787,662

Ending Inventory

1,927,885

1,704,516

Cost of Sales

26,873,085

19,083,145

Total Cost of Sales

35,236,451

27,211,560

Gross Profit

8,060,856

6,714,052

6,113,411

5,373,448

1,947,444

1,340,604

Interest income

10,146

1,583

Dividends Income

184,481

167,382

Rent Income

80,01578,074Foreign Exchange Gains

48,10787,023

Others75,58844,777398,340

378,841

Interest Expenses

24,981

2,805

Loss on Sales of Notes Payable

11,843

3,893

Rental Cost

28,892

27,782

Commission Paid

23,0249,975

043,901

15,377

15,045

Total Non-Operating Expenses

104,119

103,404

Ordinary Income

2,241,666

1,616,041

Total Cost of Sales
Cost of Sales
Cost of Finished Goods Sold

Total
Ending Inventory
Cost of Sales
Cost of Merchandise Sold

Total

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

Total Non-Operating Income
Non-Operating Expenses

Loss on Valuation of Derivatives
Others32

(Thousands of yen)
79th Period

80th Period(October 31, 2008)(October 31, 2009)

Extraordinary Income
Gain on Sales of Investments

5,627

0

0

3,225

32,25452,22037,88155,446

Loss on Sales of Noncurrent Assets

2,959

113

Loss on Retirement of Noncurrent Assets

9,768

3,053

Loss on Sales of Investment Securities

116

6,039

Loss on Valuation of Investment Securities

29,331

83,716

Loss on Valuation of Investments

7,115

0

Loss on Valuation of Membership

3,300

2,598

Bad and Doubtful Debt

11,337

1,988

Total Extraordinary Losses

63,92997,509

Income before Income Taxes and Minority Interests

2,215,618

1,573,978

Income Taxes-Current

1,024,213

348,400

Income Taxes-Deferred(16,049)

254,037

Total Income Taxes

1,008,163

602,437Net Income

1,207,455

971,541

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

33

(3) Statements of Changes in Shareholders' Equity(Thousands of yen)
Year Ended October 31, 2008

Year Ended October 31, 2009

Shareholders' Equity
Common Stock
Surplus during Previous Fiscal Year

1,061,210

1,061,210

001,061,210

1,061,210

1,483,410

1,483,410

001,483,410

1,483,410

230,000

230,00000

230,000

230,000

250,000

250,00000

250,000

250,000

29,722

28,175(1,546)(1,455)

Total Amount Changed(1,546)(1,455)

Surplus during This Fiscal Year28,17526,720

11,200,000

11,500,000

Accumulation of Other Reserve

300,000

900,000

Total Amount Changed

300,000

900,000

Surplus during This Fiscal Year

11,500,000

12,400,000

1,086,175

1,645,908

Changes during This Fiscal Year
Total Amount Changed
Surplus during This Fiscal Year
Capital Surplus
Capital Reserve
Surplus during Previous Fiscal Year
Changes during This Fiscal Year
Total Amount Changed
Surplus during This Fiscal Year
Retained Earnings
Earned Reserve
Surplus during Previous Fiscal Year
Changes during This Fiscal Year
Total Amount Changed
Surplus during This Fiscal Year
Other Retained Earnings
Reserve for dividend allowance
Surplus during Previous Fiscal Year
Changes during This Fiscal Year
Total Amount Changed
Surplus during This Fiscal Year
Reserve for Deferred Gains on Fixed Assets
Surplus during Previous Fiscal Year
Changes during This Fiscal Year
Reversal of Reserve for Deferred Gains
on Fixed Assets

Other Reserve
Surplus during Previous Fiscal Year
Changes during This Fiscal Year

Earned Surplus Carried Forward
Surplus during Previous Fiscal Year
Changes during This Fiscal Year34

(Thousands of yen)
Year Ended October 31, 2008
Reversal of Reserve for DeferredYear Ended October 31, 2009

1,546

1,455

Accumulation of Other Reserve(300,000)(900,000)

Cash Dividend Paid

(349,269)(349,263)

Net Income

1,207,455

971,541

Total Amount Changed

559,733(276,266)

Surplus during This Fiscal Year

1,645,908

1,369,642

12,795,898

13,654,084

Cash Dividend Paid

(349,269)(349,263)

Net Income

1,207,455

971,541

Total Amount Changed

858,186

622,277

Surplus during This Fiscal Year

13,654,084

14,276,362(362,815)(363,003)

Issued Shares Reacquired

(188)

(42)

Total Amount Changed

(188)

(42)

(363,003)(363,045)

14,977,702

15,835,700

Cash Dividend Paid

(349,269)(349,263)

Net Income

1,207,455

971,541

(188)

(42)

Total Amount Changed

857,998622,235

Surplus during This Fiscal Year

15,835,700

16,457,936

436,288

12,188(Except Shareholders' Equity)(424,100)

65,561

Changes during This Fiscal Year(424,100)

65,561

12,18877,749218,722

26,115

Gains on Fixed Assets

Total Retained Earnings
Surplus during Previous Fiscal Year
Changes during This Fiscal Year

Issued Shares Reacquired
Surplus during Previous Fiscal Year
Changes during This Fiscal Year

Surplus during This Fiscal Year
Total Shareholders’ Equity
Surplus during Previous Fiscal Year
Changes during This Fiscal Year

Issued Shares Reacquired

Revaluation and Translation Adjustments
Valuation Difference on Available-for-sale
Securities
Surplus During Previous Fiscal Year
Changes During This Fiscal Year
Total (Net) Amount Changed

Surplus during This Fiscal Year
Deferred Gains or Losses on Hedges
Surplus during Previous Fiscal Year
Changes during This Fiscal Year35

(Thousands of yen)
Year Ended October 31, 2008

Year Ended October 31, 2009

Total (Net) Amount Changed(Except Shareholders' Equity)(192,606)(26,828)

Changes during This Fiscal Year

(192,606)(26,828)

26,115(712)

655,010

38,304(Except Shareholders' Equity)(616,706)

38,733

Changes during This Fiscal Year

(616,706)

38,73338,304

77,037

15,632,713

15,874,005

Cash Dividend Paid

(349,269)(349,263)

Net Income

1,207,455

971,541

(188)

(42)

(Except Shareholders' Equity)(616,706)

38,733

Total Amount Changed

241,291

660,969

Surplus during This Fiscal Year

15,874,005

16,534,974

Surplus during This Fiscal Year
Total Revaluation and Translation
Adjustments
Surplus during Previous Fiscal Year
Changes during This Fiscal Year
Total (Net) Amount Changed

Surplus during This Fiscal Year
Total Net Assets
Surplus during Previous Fiscal Year
Changes during This Fiscal Year

Issued Shares Reacquired
Total (Net) Amount Changed36

(4) Notes for Premise of Going Concern
None.

(5) Notes for Non-Consolidated Financial Statements(Per Share Information)
Year Ended October 31, 2008
Net asset per share:

Year Ended October 31, 200975

Net asset per share:¥121.00

Net income per share:¥1,590.

Net income per share:¥1656.99¥97.36

Income per share for this fiscal year after adjustment of the

Income per share for this fiscal year after adjustment of theresidual securities is not presented as there are no residual

residual securities is not presented as there are no residual

securities.

securities.

(Note) Calculation basis
1. Net assets per share
79th Period

80th Period(Year Ended(Year Ended

October 31, 2008)

October 31, 2009)

Total for net assets in balance sheets (Thousands of yen)

15,874,005

16,534,974

Net assets for common stock (Thousands of yen)

15,874,005

16,534,974

Number of outstanding common stock (Share)

10,533,200

10,533,200

Number of treasury common stock (Share)

554,248554,298

9,978,952

9,978,902

Number of common stock as of the end of the current consolidated
fiscal year used for calculation of net assets per share (Shares)
2. Net income per share
79th Period

80th Period(Year Ended October 31, 2008)(Year Ended October 31, 2009)

Net income for this fiscal year

1,207,455

971,541

1,207,455

971,541

9,979,000

9,978,921(Thousands of yen)
Net income for common stock(Thousands of yen)
Average number of common stock during
the fiscal year (Shares)37