Highlights of Financial Statements
Fiscal Year Ended March 31, 2011

May 18, 2011

CONTENTS

1. Consolidated Statements of Income (Comparisons with the Previous Term)

1

2. Consolidated Statements of Income (Comparisons with Forecasts)

2

3. Consolidated Balance Sheets3

4. Consolidated Cash Flows4

5. Extraordinary Losses on the Consolidated Statement of Income
Attributable to Measures Aimed at Strengthening Operational
Infrastructure (Compared with Forecasts) — Supplementary Materials

51. Consolidated Statements of Income(Comparisons with the Previous Term)(Unit: ¥100 million)

ItemNet Sales

Performance in Performance
this termprevious term

Difference

Main reasons for increase/decrease

3,154

224

Accounting segment (Current fiscal year consolidated financial results)

2,930

Net sales
Segment (operating) income.IPPON #/-393
2,058
783!.#/599
134/393257
6

Note: See page 20 of the financial results
highlights for details (Japanese only)

435+%.
287
11#/-*/
96
3

Gross Profits

327

310

-17

Selling, General and Administrative Expenses

202

192

-10

Operating Income

125

117-8

Other Income

550—

Other Expenses

011—

131

121-10s 2ECURRING PROFIT MARGIN &ROM  TO  DOWN  PERCENTAGE POINTS

18079s 'AINS ON NEGATIVE GOODWILL   435+%.  ADDITIONAL ACQUISITION OF SUBSIDIARY SHARES s 'AIN ON PAYBACK OF INSURANCE PAYMENTS   gain on sales of fixed assets and others  69084s 7RITE DOWN ON SOFTWARE   Loss on impairment of fixed assets  s 3PECIAL PAYMENTS ON EMPLOYEES RETIREMENT BENEFITS   7RITE DOWN ON INVESTMENTS IN SECURITIES AND OTHERS  s 0AYMENT ON DISENGAGEMENT OF FUNDED PENSION PLAN OF SUBSIDIARIES   Loss on disposal of fixed assets and others  Net Income709525s .ET PROFIT MARGIN &ROM  TO  UP  PERCENTAGE POINTSComprehensive Income—97—s 3EE PAGES  OF THE #ONSOLIDATED &INANCIAL 2ESULTS FOR DETAILS -INORITY INTERESTS  UNREALIZED GAIN ON OTHER SECURITIES Recurring Profit
Extraordinary Profit
Extraordinary Losss !MORTIZATION OF SOFTWARE   /! EQUIPMENT LEASES GROUND RENTS ETC  s /PERATING MARGIN &ROM  TO  DOWN  PERCENTAGE POINTSNotes 1. Stated figures have been rounded down to the first full unit. (Applicable to all reference materials that follow)
Notes 2. Net sales based on construction in progress stood at ¥11.6 billion for the current fiscal year and ¥4.5 billion for the previous fiscal year.

–1–2. Consolidated Statements of Income(Comparisons with Forecasts)(Unit: ¥100 million)

4ARGETS

Performance
this term

Difference

Net Sales

3,200

3,154-46—

Gross Profits338

310-28—Selling, General and Administrative Expenses



192-15s 0ERSONNEL COSTS   #OMPUTER RELATED EXPENSES   'ROUND RENTS   /THER MISCELLANEOUS EXPENSES  Operating Income

131117-14s /PERATING MARGIN &ROM  TO  DOWN  PERCENTAGE POINTSOther Income65-1—Other Expenses

21-1—135121-14Extraordinary Profit801s 'AIN ON NEGATIVE GOODWILL 435+%.  !DDITIONAL ACQUISITION OF SUBSIDIARIES SHARES  GAIN ON SALES OF FIXED ASSETS AND OTHERS  Extraordinary Loss9021s ,OSS ON IMPAIRMENT OF FIXED ASSETS   LOSS ON DISPOSAL AND SALES OF FIXED ASSETS   WRITE DOWN ON INVESTMENTS IN SECURITIES  s 3PECIAL PAYMENTS ON EMPLOYEES RETIREMENT BENEFITS   7RITE OFFS OF BAD DEBT  s 0AYMENT ON DISENGAGEMENT OF FUNDED PENSION PLAN OF SUBSIDIARIES   OTHER  10195-6s .ET PROFIT MARGIN &ROM  TO  DOWN  PERCENTAGE POINTS

Item

Recurring Profit

Net Income

Main reasons for increase/decreases 2ECURRING PROFIT MARGIN &ROM  TO  DOWN  PERCENTAGE POINTS–2–

3. Consolidated Balance Sheets
ASSETSLIABILITIES AND NET ASSETS(Unit: ¥100 million)(Unit: ¥100 million)+256+2562,3742,1182,3742,118(+124)

CurrentLiabilities(+208)

Current Assets

1,290

s #ASH AND CASH EQUIVALENTS-54s !CCOUNTS RECEIVABLETRADE+231

s $EFERRED INCOME TAXES+31

1,498

535

Long-Term
Liabilities

64s !CCOUNTS PAYABLETRADE+56s !DVANCES RECEIVED ON
CONSTRUCTION IN PROGRESS-24

s 3HORT TERM BANK LOANS
435+%. '+81s )NCOME TAXES PAYABLEAND OTHERS+11659(+33)
s !CCRUED SEVERANCE INDEMNITIES+3597-2s /THER LONG TERM LIABILITIES(+100)(+48)

Fixed Assets

827

s 4ANGIBLE FIXED ASSETS+64s )NTANGIBLE FIXED ASSETS-37s )NVESTMENTS AND OTHER ASSETS+21

Net Assetss .ET INCOME+95

s 4REASURY STOCK AT COST+46(Share exchange +80, treasury stock acquisition -30, other -4)

875
1,517

s #ASH DIVIDENDS-25

s !DDITIONAL PAID IN CAPITAL

-16

1,617

%QUITY RATIO
From 71.2% to 67.7%

As of March 31, 2010

As of March 31, 2011

As of March 31, 2010–3–

As of March 31, 2011

4. Consolidated Cash Flows(Unit: ¥100 million)
Cash Flows fromOperating Activities-15230Cash andCash Equivalentsat End of Years )NCOME BEFORE INCOME TAXESAND OTHER ADJUSTMENTS
TO NET INCOME+111s $EPRECIATION AND AMORTIZATION+50s 7RITE DOWN ON SOFTWARE+38s )NCREASE IN PAYABLESTRADE+24s ,OSS ON IMPAIRMENT OF FIXED ASSETS +18s )NCREASE IN RECEIVABLESTRADE s 'AIN ON NEGATIVE GOODWILL
s #ASH AND CASH EQUIVALENTS
PAID FOR INCOME TAXES
Cash Flows fromInvesting Activities-34
Cash Flows fromFinancing Activities
s !CQUISITIONS OF ASSETS,AND AND BUILDINGS FOR 4ECHNO 3TATIONS#ONSTRUCTION VEHICLES TOOLS AND EQUIPMENTs /THER-3s !CQUISITIONS OF TREASURY STOCK s #ASH DIVIDENDS PAIDs )NCREASE IN BORROWINGS+52+350ROCEEDS FROM SALE OF PROPERTY
3ALES OF MARKETABLE SECURITIES ETC-54
(As of March 31, 2010)(Note) The cash and cash equivalents at end of year does not include
time deposits (approximately ¥0.6 billion).

–4–176
Cash andCash Equivalents
at End of Year(As of March 31, 2011)

5. Extraordinary Losses on the Consolidated Statement of Income Attributable to Measures Aimedat Strengthening Operational Infrastructure (Compared with Forecasts) — Supplementary MaterialsExtraordinary Income and Losses Recordedon the Consolidated Statement of Income
Forecast amount
Actual amount Difference(Announced November 17, 2010)

Item

1. Extraordinary Losses Recorded on the Consolidated Statement of Income
Attributable to Measures Aimed at Strengthening Operational Infrastructure1) Devaluation attributable to review of internal systems software valuations

Annual: ¥3.8 billion¥3.8 billion

0(Second quarter: ¥3.6 billion)2) Impairment losses attributable to sale of idle land and buildings

Annual: ¥1.3 billion¥1.8 billion+53) Write-down on investments in securities

Annual: ¥0.4 billion¥0.7 billion+3¥0.6 billion+1¥1.2 billion+2¥7.1 billion-4(Second quarter: ¥0.2 billion)4) Payment of lump sum pension withdrawal amount in line with integration of consolidated subsidiaries

Annual: ¥0.5 billion(Second quarter: ¥0.5 billion)5) Payment of special retirement beneﬁt due to career change support system

Annual: ¥1.0 billion

2. Negative goodwill following management integration with TSUKEN(Recorded as lump sum extraordinary income)–5–

Annual: ¥7.5 billion