Financial Results for the Third Quarter Ended July 31, 2011
[Japan GAAP] (Consolidated)
Date:

September 5, 2011

Company Name and Code:

Tomoe Engineering Co., Ltd. and Subsidiaries - 6309
(Website: http://www.tomo-e.co.jp/index_e.html)

Stock Exchange Listing:

1st Section, Tokyo Stock Exchange

Head Office:2-2, Osaki 1-chome, Shinagawa-ku, Tokyo, Japan

President:

Noboru Shiono

Investor Relations Contacts:

Natsuhiko Maeda, Director, Accounting and Management Planning Tel: (03) 5435-6512

Date to report Consolidated Quarterly Financial Statement: September 12, 2011
Date for Dividend Payment:-

Preparation of Supplementary Explanatory Materials for Quarterly Operating Results: No
Briefing Session for Quarterly Operating Results: Not planned.
* Any fractional sums less than one million (or one thousand) yen are disregarded.
1. Consolidated Financial Data for the Third Quarter Ended July 31, 2011
(1) Results of Operation (Consolidated)

Quarter Ended July 31, 2011
Quarter Ended July 31, 2010

(Percent: Change from the same quarter of the previous year)
Net Sales
Operating Income
Ordinary Income
Millions ofMillions ofMillions of
Yen
Percent
Yen
Percent
Yen
Percent
32,342
12.1
2,144
20.6
2,267
24.3
28,843
4.4
1,778
34.6
1,823
24.7
Net Income

Quarter Ended July 31, 2011
Quarter Ended July 31, 2010

Millions of
Yen
1,327
1,088

Net Income per Share

Fully Diluted Quarterly
Net Income per ShareYen
133.04109.09Yen-

Percent
22.0
31.8(2) Financial Condition (Consolidated)
Total Assets (A)(Millions of Yen)
Quarter Ended July 31, 2011
29,378Year Ended October 31, 2010
29,779Net Assets (B)(Millions of Yen)
19,86018,852

Net Assets Ratio(B) / (A) (Percent)
66.7
62.4

Net Assets
per Share (Yen)
1,963.80
1,862.30(Reference) Net assets (not including minority interests):
Third Quarter ended July 31, 2011: 19,596 million yen
Year ended October 31, 2010: 18,583 million yen
2. Dividend Status(Record Date)
Year Ended October 31, 2010
Year Ending October 31, 2011
Year Ending October 31, 2011 (Prospect)First
Quarter-Interim
Term
0.00
0.00

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

Annual Dividend (Yen)Third
End ofQuarter
Fiscal Year
35.00
40.00

Annual35.00
40.00

3. Forecast for Earnings for the Year Ending October 31, 2011 (Consolidated)(Percent: Change from the previous quarter)
Net Sales
Operating Income
Ordinary Income(Millions of Yen) (Percent) (Millions of Yen) (Percent) (Millions of Yen) (Percent)
Full Business Year
43,000
10.8
2,270
4.5
2,320
6.5
Net Income
Net Income per Share(Millions of Yen) (Percent)
Yen
Full Business Year
2,760
103.7
276.59(Note) Correction of the prospected earnings for this quarter: None
4. Others (For details, refer to “2. Other Information” of [Attachments] on page 4.)(1) Significant changes in subsidiaries during this quarter: None
(Note) Changes in specific subsidiaries in conjunction with a change in the scope of consolidation during thequarterly accounting period.
(2) Adoption of simplified accounting method and the specific accounting method: Yes(Note) Application of simplified accounting method and special accounting method in the preparation of quarterly
consolidated financial statements.
(3) Changes of the principles, procedures, and representation of the accounting policies
1) Change due to revision of accounting standard: Yes
2) Other changes: None
(Note) Changes in accounting principles, procedures and reporting methods pertaining to the preparation of
consolidated quarterly financial statements as stipulated in “Change in the Basis of Presenting Consolidated
Quarterly Financial Statements”).
(4) Number of outstanding shares (Ordinary shares)
1) Number of outstanding shares as of quarter-end and year-end (including treasury stocks)
At July 31, 2011: 10,533,200 shares

At October 31, 2010: 10,533,200 shares

2) Number of treasury stocks as of quarter-end and year-end
At July 31, 2011: 554,501 shares

At October 31, 2010: 554,418 shares

3) Number of average shares (accumulated quarterly total)
At July 31, 2011: 9,978,734 shares

At July 31, 2010: 9,978,835 shares*Disclosure concerning status of implementation of quarterly review procedure
This quarterly earnings report is exempt from the quarterly review procedure based on the Financial Instruments andExchange Act. At the time of disclosure of this quarterly earnings report, the Company has not completed a quarterly
review procedure based on the Financial Instruments and Exchange Act.
*Explanations for appropriate use of the earnings forecast and other special instructions
The forward-looking statements such as a forecast of our financial results described herein are based on theinformation currently available to us and certain assumptions that we believe are reasonable. Actual results could differ
materially due to various factors. Please refer to the Qualitative Information on Quarterly Consolidated Earnings
Forecast on Page 4 of the Financial Results for the Quarter (Attachments) to this quarterly earnings report for theconditions used as assumptions for the operating results forecast and matters to note when using forward-looking
statements.

Table of Contents (Attachments)
1. Qualitative Information and Financial Statements, etc..........................................................................................1(1) Qualitative Information on Consolidated Operating Results....................................................................... 1(2) Qualitative Information on Consolidated Financial Position....................................................................... 2(3) Qualitative Information on Consolidated Earnings Forecast....................................................................... 3
2. Other Information...................................................................................................................................................... 3(1) Summary of Changes in Material Subsidiaries............................................................................................ 3(2) Summary of Simplified Accounting Treatment and Special Accounting Treatment................................... 3(3) Summary of Changes in the Principle, Procedure, and Representation of the Accounting
Policies............................................................................................................................................................. 3
3. Consolidated Financial Statement.......................................................................................................................... 4
(1)
(2)
(3)
(4)
(5)
(6)

Consolidated Quarterly Balance Sheet. ..................................................................................................... 4
Consolidated Quarterly Statements of Income.............................................................................................. 6
Consolidated Quarterly Statements of Cash Flows. .................................................................................. 7
Note on Going Concern Assumption.......................................................................................................... 9
Segment Information.................................................................................................................................... 9
Notes for Significant Changes in Shareholder’s Equity.............................................................................. 10

4. Overseas Net Sales (Reference)......................................................................................................................... 11[Qualitative Information and Financial Statements, etc.]
1. Qualitative Information on Quarterly Consolidated Operating Results(1) Qualitative Information on Consolidated Operating Results(a) General operating results
During the third quarter consolidated year-to-date period, production and exports fell significantly as a result of
supply chain disruptions and the effects of electric power shortages in the aftermath of the Tohoku Pacific Offshore
Earthquake, which struck in March 2011, and Japan’s economy was hampered by conditions that considerably
undermined the economic recovery that had been underway until March. However, because the progress in recovery of
the supply chain in each district exceeded immediate post-earthquake expectations, and the response to power supply
shortages by the industrial sector gradually moved ahead as well, production, export and personal consumption levels
generally began to exhibit a brisk recovery trend, despite lingering concerns about the future, including the economies inother countries and the outlook for Japan’s nuclear power generation problems.
Under these circumstances, interim period consolidated net sales for the Tomoe Engineering Group as a whole
were 32,342 million yen, 12.1% up from the same period last year. This represented growth in net sales ofcentrifuge equipment for North American oil well drilling and works related to domestic public sector demand in the
Machinery & Equipment Business, and higher net sales of a broad range of commercial products, including thoserelated to residential housing and construction, in the Chemical Products Business. Although some restrictions
were placed on procurement of certain components and sales activities in the Machinery & Equipment Businessas a result of the earthquake, the effect was limited as a whole, and indeed the occurrence of extensive
front-loaded demand and substitute demand in the Chemical Products Business had the effect of pushing up
year-to-date consolidated net sales somewhat at the end of the quarter.
From an earnings perspective, consolidated operating income for the Tomoe Engineering Group improved more
rapidly than the expansion in net sales and was 20.6% up from the same period of the previous consolidated fiscal year,
to 2,144 million yen. Although gross profit margins in both of the Group’s businesses contracted somewhat comparedwith the prior year against the backdrop of several unique factors, increases in selling, general and administrative
expenses was stringently controlled, including cutbacks in personnel expenses. In non-operating income and expenses,
foreign exchange losses were offset by a gain on valuation of derivatives related to currency swap transactions, pushingordinary income to 2,267 million yen, 24.3% up from the same period one year earlier. Net income for the third quarteryear-to-date period was 1,327 million yen, 22.0% up from the same period one year earlier despite a smaller gain on
sales of investment securities and an extraordinary loss related to asset retirement obligations, reflecting the increase ofordinary income.
(b) Machinery & Equipment BusinessIn the Machinery & Equipment Business, consolidated net sales were 10,036 million yen, 18.3% up from thesame period last year. Sales of centrifuge equipment for oil well drilling in North America and works related todomestic public sector demand, and components sales and repair service to domestic private sector demand
were higher, even as domestic sales of machinery and equipment weakened. Among them, the contribution from
centrifuge equipment for oil drilling in North America was especially large, accounting for 78.0% of the growth in net
sales in that business. Parts procurement and business operations experienced some restrictions for a certain period oftime following the March 11 earthquake, but the effect on operating results was limited. In terms of earnings, the grossprofit margin declined slightly, as a reaction to the especially high-profit margin sales on a domestic repair project
involving heavily depleted equipment that were included in the previous year’s net sales, but because selling, generaland administrative expenses also were somewhat lower, including a decrease in personnel expenses, consolidated
operating income rose faster than the growth in net sales and reached 1,112 million yen, 29.8% up compared with thesame period of the previous consolidated fiscal year.

1(c) Chemical Products BusinessIn the Chemical Products Business, sales rose despite the loss of some commercial distribution activities
related to the plastic compounding business in Shenzhen, China and domestically a slackening demand in
consumable goods for use of semiconductor manufacturing, as supply and demand continued to improve in otherdomestic sectors, especially for items used in residential housing, construction and other industry segments. As
a result, consolidated net sales were 22,306 million yen, up 9.6% from the same period last year, with industrial
materials and functional materials serving as growth engines. As a result of the earthquake, this businesssuffered small losses, including declined sales of products for automobiles, and the scrapping and write-off ofsome inventory assets, but the effect was limited and the subsequent occurrence of front-loaded and substitutedemand for a wide range of commercial products helped to push up net sales somewhat at the end of the period.
From a business earnings standpoint, the slowdown phase affecting operations in Shenzhen, China intensified
gradually and affected the gross profit margin, which fell slightly despite the continued positive effect of the stronger yen
on all imported materials. Nevertheless, because increases in selling, general and administrative expenses werecapped, consolidated operating income expanded faster than net sales and rose 12.0% from the same period one year
earlier to 1,032 million yen.
(2) Qualitative Information on Consolidated Financial Position:(a) Assets, Liabilities, and Net Assets
Assets at the end of the consolidated third quarter under review were 29,378 million yen, 400 million yen or
1.3% down from the balance at the end of the previous consolidated fiscal year (October 31, 2010). This mainlyreflected an increase in accounts receivable-trade, especially for the Chemical Products Business, against the
backdrop of higher net sales, as well as a slight increase in inventories, including Chemical Products Businessproducts, while it reflected a significant decrease in cash and deposits because of tax payments and the provision
for bonuses, in addition to a decrease in current assets because of depreciation. On the other hand, total
liabilities were 9,518 million yen, 12.9% down compared with the end of the previous consolidated fiscal year.
This reflected the large decreases in income taxes payable and provision for bonuses, a decrease in current
liabilities because of decreased accounts payable balance mainly in the Machinery & Equipment Business, and adecrease in noncurrent liabilities because of a reversal of the provision for directors’ retirement benefits.
Net assets were 19,860 million yen, 1,007 million yen or 5.3% up from the end of the previous consolidated
fiscal year. This reflected higher retained earnings from year-to-date net income and the increase in valuationand translation adjustments, including an increase in the valuation difference on other investment securities.
Because net assets increased and yet total assets decreased as discussed above, the equity ratio at the end of
the consolidated third quarter under review increased by 4.3 points compared with the end of the previous
consolidated fiscal year to 66.7%.
(b) Cash Flow Status
Cash and cash equivalents as of the end of the consolidated third quarter under review decreased by 3,719 million
yen to 2,389 million yen from the end of the previous consolidated fiscal year. The status of each cash flow and theirfactors during the third quarter are as follows:(Net Cash Provided by (Used in) Operating Activities)
Cash flow used in operating activities was 534 million yen. Income before income taxes and minority interests
was 2,254 million yen, and depreciation of noncurrent assets was 285 million yen, but notes and accounts
receivable-trade and inventories increased by 832 million yen and 165 million yen, respectively, while the provision
for bonuses and notes and accounts payable-trade decreased by 425 million yen and 96 million yen respectively,
and income taxes paid amounted to 1,511 million yen.
2

(Net Cash Provided by (Used in) Investing Activities)
Cash used in investing activities was 2,778 million yen in total, because net purchases of time deposits of 2,600
million yen in addition of purchases of buildings and plants and other tangible fixed assets of 205 million yen.
(Net Cash Provided by (Used in) Financing Activities)
Net cash used in financing activities was 368 million yen in total because of lease obligations payment in additionof cash dividends of 349 million yen.
(3) Qualitative Information on Consolidated Earnings Forecast:Through the problem of electric power shortages, the Tohoku Pacific Offshore Earthquake that struck Japan in
March 2011 is expected to have a considerable impact on various future domestic production activities. Given
this situation, there were some restrictions were placed on procurement of certain components and sales activities
in the Machinery & Equipment Business but we anticipate the spread of these difficulties to full-year operating
results will not be material. Additionally, in the Chemical Products Business, diminished demand is envisaged
mainly for commercial products used for the manufacture of automobiles and electronic components such as
semiconductors. Conversely, for commercial products for other uses including residential housing andconstruction, front-loaded and substitute demand is projected to continue, and recovery demand is expected toclimb, and overall the earthquake’s effect on full-year operating results is expected of be immaterial.
Based on the above considerations and other factors, the Tomoe Engineering Group has not revised thefull-year operating results forecast for the fiscal year ending October 31, 2011 released on December 10, 2010,
expect upward revision of the net income forecast for current period associated with changes in right to the former
Tokyo factory.
The operating results forecasts described above are based on information available to the Company at the time
the forecasts were prepared and assumptions judged to be reasonable. Actual operating results might differ fromthese forecasts depending upon changes in the domestic and international economic trends, the balance of supply
and demand and various other circumstances.
2. Other Information(1) Summary of Changes in Material Subsidiaries: None

(2) Summary of Simplified Accounting Treatment and Special Accounting Treatment
Calculation method of depreciation of noncurrent assets:
For the assets adopting the declining-balance method, we adopt the method to calculate the amount of depreciation
for the consolidated fiscal year by dividing the period proportionally.
(3) Summary of Changes in the principle, procedure, and representation of the accounting policies concerning the
preparation of consolidated financial statements
Application of the “Accounting Standard for Asset Retirement Obligations”
Beginning from the first quarter of the current consolidated fiscal year, the Company has adopted the“Accounting Standard for Asset Retirement Obligations” (Accounting Standards Board of Japan Statement No. 18
dated March 31, 2008 and the “Guidance on Accounting Standard for Asset Retirement Obligations” (AccountingStandards Board of Japan Guidance No. 21 dated March 31, 2008).
As a result of this change, operating income and ordinary income were 6,041,000 yen lower, and income
before income taxes and minority interests was 38,727,000 yen lower, than what they otherwise would have been
had the accounting standard used in previous consolidated fiscal years been applied.
33. Consolidated Financial Statement(1) Consolidated Quarterly Balance Sheets(Thousands of Yen)
End of Third Quarter

Summarized Balance Sheet(July 31, 2011)

for End of Previous Year

Assets(October. 31, 2010)

Current Assets
Cash and Deposits

4,989,782

6,109,100

Notes and Accounts Receivable-Trade

14,134,831

13,324,042

Merchandise and Finished Goods

3,398,963

3,055,662

Work in Process

961,5211,400,107

Raw Materials and Supplies

655,792

404,117

Deferred Tax Assets

465,089

618,454

Others177,639

164,937

Allowance for Doubtful Accounts(23,101)(29,006)

24,760,518

25,047,414

2,597,501

2,527,155

Accumulated Depreciation(1,562,702)(1,505,179)

Buildings and Structures, Net

1,034,799

1,021,976

Machinery, Equipment and Vehicles

3,457,571

3,435,773

Accumulated Depreciation(2,741,093)(2,623,977)
811,796Land

716,478
970,253

Lease Assets

71,702970,253
76,962

Accumulated Depreciation(48,416)(39,169)

Lease Assets, Net

23,286

37,793

1,038,509

986,860

Accumulated Depreciation(932,564)(895,734)

Others, Net

105,944

91,1262,850,761

2,932,946

69,53780,245Investment Securities

751,307697,362

Guarantee Deposits

357,907412,798

Deferred Tax Assets

75,46287,043

Others593,921602,102

Allowance for Doubtful Accounts(80,737)(80,377)

Total Investments and Other Assets

1,697,862

1,718,929

Total Noncurrent Assets

4,618,161

4,732,121

Total Assets

29,378,680

29,779,536

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

Machinery, Equipment and Vehicles, Net

OthersTotal Property, Plant and Equipment
Intangible Assets
Investments and Other Assets4

(Thousands of Yen)
End of Third Quarter

Summarized Balance Sheet(July 31, 2011)

for End of Previous Year

Liabilities and Net Assets(October. 31, 2010)

Liabilities
Current Liabilities
6,364,969

6,477,307

Short-Term Loans Payable

563,440

585,923

Lease Obligations

16,89324,132

Accounts Payable-Others

492,172

551,681

Income Taxes Payable

202,163961,213

Advances Received

280,975

417,875

Provision for Bonuses

685,062

1,111,306

Provision for Directors' Bonuses

45,35585,555

Allowance for Product Warranty

366,308

186,442

Others392,969

327,5629,410,310

10,729,000

Lease Obligations

10,86622,553

Provision for Retirement Benefits

35,59032,538Provision for Directors' Retirement Benefits

31,760142,760

Deferred Tax Liabilities

29,799108

Total Noncurrent Liabilities

108,016

197,960

Total Liabilities

9,518,326

10,926,961

Capital Stock

1,061,210

1,061,210

Capital Surplus

1,483,410

1,483,410

Retained Earnings

17,591,362

16,613,067

Notes and Accounts Payable-Trade

Total Current Liabilities
Noncurrent Liabilities

Net Assets
Shareholders’ Equity(363,319)(363,194)

19,772,662

18,794,492

Valuation Difference on Available-for-Sale Securities

92,93053,585

Deferred Gains or Losses on Hedges(3,209)(7,411)

Foreign Currency Translation Adjustment(266,236)(257,190)

Total Valuation and Translation Adjustments(176,515)(211,016)

264,206

269,098

Total Net Assets

19,860,353

18,852,575

Total Liabilities and Net Assets

29,378,680

29,779,536

Treasury Stock
Total Shareholders’ Equity
Valuation and Translation Adjustments

Minority Interests5(2) Consolidated Quarterly Statements of Income (Third Quarter)(Thousands of Yen)

Third Quarter Ended

Third Quarter Ended

July 31, 2010

July 31, 2011

Net Sales

28,843,057

32,342,269

Cost of Sales

22,540,796

25,530,492

6,302,261

6,811,776

4,523,673

4,667,161

1,778,588

2,144,615

Interest income

4,832

8,650

Dividends Income

14,51917,916

Rent Income

13,681

9,106

Foreign Exchange Gains

61,257--96,85930,91419,851

125,204

152,384

5,794

5,570

58

53

9,252

9,219

-

3,698

Loss on Valuation of Derivatives

52,408-Others12,415

10,840Total Non-Operating Expenses

79,93029,382

Ordinary Income

1,823,862

2,267,617

-

2,370

Gain on Sales of Investment Securities

159,344

14,190

Reversal of Allowance for Doubtful Accounts

13,461
172,806

15,71332,275

Loss on Retirement of Noncurrent Assets

1,952

1,762

Loss on Valuation of Investments Securities

117,683

10,061

Allowance for Doubtful Accounts

-

1,300

Loss affected by application of the AccountingStandard for Asset Retirement Obligations-

32,685

119,636
1,877,032

45,8092,254,083

Income Taxes-Current

778,499762,597

Income Taxes-Deferred(2,409)172,262776,089

934,859-

1,319,223

12,365(8,328)1,088,577

1,327,552

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

Gain on Valuation of Derivatives
OthersTotal Non-Operating Income
Non-Operating Expenses
Interest Expenses
Loss on Sales of Notes Payable
Commission Fee
Foreign Exchange Loss

Extraordinary Income
Gain on Sales of Noncurrent Assets

Total Extraordinary Income
Extraordinary Losses

Total Extraordinary Losses
Income before Income Taxes and Minority Interests

Total Income Taxes
Income before minority interests
Minority Interests in Losses
Net Income (Loss)6

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

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

Third Quarter Ended

Third Quarter Ended

July 31, 2010

July 31, 2011

1,877,032

2,254,083

Depreciation and Amortization

292,587

285,295

Increase (Decrease) in Provision for Bonuses(139,368)(425,627)

Increase (Decrease) in Provision for Directors' Bonuses

19,053(40,200)

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

179,866

Increase (Decrease) in Provision for Retirement Benefits

2,687
-

3,135
(111,000)

Increase (Decrease) in Allowance for Doubtful Accounts(15,071)(5,544)

Loss (Gain) on Valuation of Investment Securities

117,683

10,061

Interest and Dividends Income

Increase (Decrease) in Provision for Directors' Retirement Benefits(19,351)(26,567)Interest Expenses

5,794

5,570

Foreign Exchange Losses (Gains)

8,719

10,239(159,344)(14,190)

1,952

1,762

-

(2,370)Loss (Gain) on Sales of Investment Securities
Loss (Gain) on Retirement of Noncurrent Assets
Loss (Gain) on Sales of Noncurrent Assets
Loss affected by application of the Accounting Standard for
Asset Retirement Obligations
Loss (Gain) on Valuation of Derivatives-

32,68552,408(96,859)

Decrease (Increase) in Notes and Accounts Receivable-Trade(1,355,300)(832,108)

Decrease (Increase) in Inventories(733,219)(165,432)

Increase (Decrease) in Notes and Accounts Payable-Trade896,777(96,385)

Increase (Decrease) in Accounts Payable-Others

44,663(38,197)

Increase (Decrease) in Advances Received

192,562(136,491)

Increase (Decrease) in Accrued Consumption Taxes(55,548)

56,305

Others, Net(41,925)

109,307985,179

957,338

Interests and Dividends Income Received

16,486

24,528Interest Expenses Paid

(12,717)(5,574)

Income Taxes Paid (-) or Returned(12,470)(1,511,062)

976,476(534,770)

Deposit of Time Deposits(2,378,526)(5,120,110)

Proceeds from Withdrawal of Time Deposits

1,000,000

2,520,110

Proceeds from Sales of Property, Plant and Equipment(129,224)(48,066)

7,420(205,839)(5,818)218,109(11,509)23,425(15,224)

2,357(3,435)

4,427(1,360)(3,633)(1,309)15,534(1,235)(1,355,236)(2,778,670)

Sub total

Net Cash Provided by (Used in) Operating Activities
Net Cash Provided by (Used in) Investing Activities

Purchase of Property, Plant and Equipment
Purchase of Intangible Assets
Proceeds from Sales of Investment Securities
Purchase of Investment Securities
Collection of Loans Receivable
Payments of Loans Receivable
Guarantee Deposits (Increase)
Others, Net
Net Cash Provided by (Used in) Investment Activities

7

(Thousands of Yen)
Third Quarter Ended

Third Quarter Ended

July 31, 2010

July 31, 2011

Net Cash Provided by (Used in) Financing Activities
Repayments of Lease Obligations(21,164)(18,926)

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

-

(148)

(125)

(299,367)(349,257)(6,740)-Net Cash Provided by (Used in) Financing Activities(387,420)(368,309)

Effect of Exchange Rate Change on Cash and Cash Equivalents(14,368)(37,567)

Net Increase (Decrease) in Cash and Cash Equivalents
Cash and Cash Equivalents at Beginning of Period(780,548)(3,719,318)

4,447,793
3,667,244

6,109,100
2,389,782

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

Cash and Cash Equivalents at End of Period8(4) Note on Going Concern Assumption
None.
(5) Segment Information(Segment by type of business)
Third Quarter Ended July 31, 2010

(Thousands of Yen)
Machinery &ChemicalEquipment

Products

Business

Business

8,482,344

20,360,712

28,843,057-

28,843,057

-

-

-

-

-

8,482,344

20,360,712

28,843,057-

28,843,057

857,225

921,362

1,778,588-

1,778,588

Deletion or
Total

Total

Consolidated

Company

Net Sales(1) Net Sales to UnaffiliatedCustomers(2) Internal Net Sales among
Segments or Amount Transferred
Total
Operating Income (Loss)(Notes)1. Business classification is by aggregate sales classification.
2. Main products and goods in each business:(1) Machinery & Equipment Business: Various types of centrifuge and other machinery(2) Chemical Products Business: Synthetic resin, industrial materials and other chemical products(Segment by Location)
Third Quarter Ended July 31, 2010

(Thousands of Yen)
Deletion or
Japan

Asia

Total

Total

Consolidated

Company
Net Sales(1) Net Sales to Unaffiliated Customers

26,371,985

2,471,072

28,843,057-

28,843,057

Amount Transferred

309,793

143,679

453,473(453,473)

-

Total

26,681,779

2,614,752

29,296,531(453,473)

28,843,057

Operating Income

1,714,380

66,526

1,780,907(2,319)1,778,588(2) Internal Net Sales among Segments or(Notes)1. Areas including countries or regions are determined based on their degree of geographical proximity.
2. Main countries or regions included in the areas other than Japan:
Asia: China, Korea and Indonesia

9[Segment Information](Supplemental information)
Beginning from the first quarter of the current consolidated fiscal year, the Company has adopted the “AccountingStandard for Disclosures about Segments of an Enterprise and Related Information” (Accounting Standards Board ofJapan Statement No. 17, revision dated March 27, 2009 and the “Guidance on Accounting Standard for Disclosuresabout Segments of an Enterprise and Related Information” (Accounting Standards Board of Japan Guidance No. 20
dated March 31, 2008).
1 Summary of Reporting Segments
TOMOE Engineering Co., Ltd. has established two operational headquarters. These operational headquarters aredeveloping their business activities by planning comprehensive domestic and overseas strategies for the respective
manufactured and commercial products they handle.
We therefore have assumed these two businesses, referred to as the “Machinery & Equipment Business” and the“Chemical Products Business”, as our company reporting segments. The Machinery & Equipment Business mainly
manufactures and sells centrifuge decanters, and the Chemical Products Business mainly manufactures, stocks andsells chemical industry products.
The Company’s reporting segments are those units of the Company’s for which discrete financial information isavailable and for which the Board of Directors regularly conducts a review for the purpose of making decisions about
resources to be allocated to the segments and assess the segments' performance.
2 Information Pertaining to the Amount of Net sales or Net Loss of Each Reporting Segment
Third Quarter Ended July 31, 2011

(Thousands of Yen)
Reported Segment
Machinery &ChemicalEquipment

Products

Business

Business

Consolidated

Total

Net Sales(1) Net Sales to UnaffiliatedCustomers

10,036,151

22,306,117

32,342,269

32,342,269

-

-

-

-

10,036,151

22,306,117

32,342,269

32,342,269

1,112,357

1,032,257

2,144,615

2,144,615(2) Internal Net Sales among
Segments or Amount Transferred
Total
Segment Profit(Notes)
The total amount of segment profit is identical to the operating income reported on the Quarter Statements ofConsolidated Income.

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

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4. Overseas Net Sales (Reference)
Third Quarter Ended July 31, 2010

(Thousands of Yen)
Asia

I. Overseas Net Sales

Total

5,411,670

511,398

5,923,068--

28,843,057

18.8

1.8

20.5

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

Other Regions(Notes)1. Areas including countries or regions are determined based on their degree of geographical proximity.
2. Main countries or regions included in the areas:(1) Asia: China, Korea, Taiwan and Indonesia(2) Other regions: America and Europe
3. Overseas net sales are sales of our company and subsidiaries made in countries and regions other than Japan.
Third Quarter Ended July 31, 2011

(Thousands of Yen)
Asia

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

Other Regions

Total

5,411,106

1,808,450

7,219,556--

32,342,269

16.7

5.6

22.3

(Notes)1. Areas including countries or regions are determined based on their degree of geographical proximity.
2. Main countries or regions included in the areas:(1) Asia: China, Korea, Taiwan and Indonesia(2) Other regions: America and Europe
3. Overseas net sales are sales of our company and subsidiaries made in countries and regions other than Japan.

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