FINANCIAL INDICATORS
Operating Income (yen in million)

Net Sales (yen in million)
2011
2010

23,473

2007

25,626

2008

2,380

2007

2,448

T h e way o f mu t u a l p r o g r es s

Total Assets, Net Assets (yen in million) , and ROE(%)

Net Income (yen in million)
1,435

2011

2009

516

2009

27,193

2008

2010

319

2009

7.7 28,780

20,714

2011

452

2010

987

2010

19,884

2009

2,050

2011

23,107

28,685

18,6972.7

26,587

17,158

1.7

2008

1,884

2008

22,706

8.7

2007

1,834

2007

22,2698.8 32,839

Total assets

Net assets

33,473ROE

CORPORATE DATA (as of March 31, 2011)34-16, 2-chome, Chidori, Ota-ku, Tokyo 146-8510, Japan
Phone: (03) 3750-3100 Fax: (03) 3750-9915 URL: http://www.yushiro.co.jp¥4,249 million
332
July 24, 1944
Tokyo, Nagoya and Osaka
Hokkaido, Tohoku, Kitakanto, Hamamatsu, Hokuriku, Fukuyama, Hiroshima and Kyushu

Head Office
Capital
Employees
Established
Branch Offices
Sales Offices

ANNUAL REVIEW 2011
For the Year Ended March 31, 2011

Directors and Auditors (as of June 23, 2011)

Managing Directors

Yuji Kishi
Haruo Okamoto
Shinji Hamamoto
Yasuo Chiba
Tsuneo Onda
Akitaka Nozue

Directors

Eiichi Ogo
Yoshiaki Nagai
Masahisa Hirobe
Tatsuharu Hyakusoku
Yoshihiro Sakaguchi

President
ChairmanStanding Auditors
Auditor (CPA)

Stock Information (as of March 31, 2011)
Number of shares issued
Trading unit
Total number of shareholders
Stock listing
Securities code
Transfer agent for common stock
Independent certified public accountants
Main underwriter

15,200,065
100
6,202
First section, Tokyo Stock Exchange
5013
Mitsubishi UFJ Trust and Banking Corporation
Ernst & Young ShinNihon LLC
Nomura Securities Co., Ltd.

(millionsof yen )Market value of shares

50,00040,00030,00020,00010,00002005/3 2006/3 2007/3 2008/3 2009/3 2010/3 2011/3

Stock pricesTerm2010.42010.52010.6

2010.72010.82010.9

High

1,260

1,250

1,248

1,234

1,196

1,147

1,105

1,148

Low

1,142

1,050

1,080

1,040

1,060

1,070

940

Trading volume

2,288

2,828

2,679

1,720

1,911

1,617

1,851

(Yen/share)(Yen/share)(Hundred of shares)

2010.10 2010.11 2010.12

2011.1

2011.2

2011.3

1,249

1,421

1,425

1,312

950

1,053

1,203

1,216

830

2,564

6,170

6,903

5,671

18,601PRESIDENT’S MESSAGE

Yushiro Chemical Industry Co., Ltd. has contributed to the progressand material development of Japan by supplying quality oil-fatwax (yu-shi-ro) products. We have succeeded in developing andoffering to virtually all industrial markets such auxiliary products
as metalworking oils and fluids, polishing agents for building
maintenance. To respond to the needs of the industry, every
technology we have acquired will be fed back to our R&D process
for the creation of newer technologies and products based on our
corporate ideal of “the way of mutual progress.”
M e d i u m - a n d L o n g - Te r m P l a n
In the automobile industry, in which major consumers of our products, it isbelieved that the current number of units produced and production of mainparts will be maintained domestically while production capabilities will befurther enhanced overseas. Our key products, metalworking oils and fluids,
are highly reliant on the automobile industry, and we are actively planningand conducting investments in the necessary domestic bases. We also believe
it is important to build systems for fostering human resources who can
actively work overseas and for the supply of high value-added products andservices.

Eiichi Ogo
PRESIDENT

Based on this awareness, we will follow the basic policies below with the 16th
Medium-Term Plan that started from April 2011 to deploy business with a
global viewpoint throughout the world in addition to Japan.

Business summary
During this consolidated fiscal year, a gentle recovery trend continued in the
global economy driven by the emerging countries including China wherehigh growth has been maintained and by recovery in consumer spending andcorporate results due to domestic demand by stimulus measures in theadvanced countries. Although there was a slight upward trend in the Japanese
economy, the economy took a severe blow from the Great East Japan
Earthquake that occurred on March 11, 2011.
In the automobile industry, in which are major consumers of our products,
the number of units produced increased over the previous fiscal year due tothe effect of policies such as eco-car subsidies and tax reductions, while
production was expanded in response to robust demand in the photovoltaic
cell industry.
Under these circumstances, net sales increased 16.2% year over year to¥23,107 million thanks to increased sales in both domestic and overseas
subsidiaries and affiliates brought by the recovery of production in theautomobile industry and strong sales of cutting oils and fluids forphotovoltaic cells mainly in Japan.
In terms of profit, operating income rose 107.6% over the previous fiscal
year to ¥2,050 million mainly due to increased sales volume. Althoughforeign exchange losses and syndicate loan commissions increased, ordinary
income rose 65.3% over the previous fiscal year to ¥2,464 million as a resultof increase in equity method derived income thanks to recovery of businessperformance at overseas affiliates. In terms of net income, gain on sales ofsubsidiaries and affiliates’ stocks of ¥162 million was posted and net income
increased 217.3% over the previous fiscal year to ¥1,435 million.

The Group adopted from the current fiscal year “Accounting Standard forDisclosures about Segments of Enterprises and Related information”(Accounting Standards Board of Japan (ASBJ) Statement No. 17, March 27,2009) and “Guidance on Accounting Standard for Disclosures about
Segments of Enterprises and Related information” (ASBJ Guidance No. 20,
March 21, 2008). Thus, the three former reportable segments, the“metalworking oils and fluids business,” the “building maintenance chemicals
business,” and the “industrial waste processing business,” have been changed
to four reportable segments: “Japan,” “North and South America,” “China,”and “Southeast Asia/India.” Segments from the previous fiscal year have beenreorganized into the segments for the current fiscal year for segmentcomparisons.

Business segment

Japan

(

Previous Fiscal Year
April 1, 2009 throughMarch 31, 2010

) (Current Fiscal Year
April 1, 2010 throughMarch 31, 2011

Increase/

1. Expand production and sales bases to develop markets in Southeast Asia
and India. In addition, conduct investments to expand production
capabilities in America and Brazil. Conduct organizational reform ofdomestic sales and technology and strengthen cooperation with overseas
bases so that we can respond to the needs of major customers expanding
their business overseas.
2. Establish branch offices of the Technical Center in Nagoya and Tokyo
to provide a system for research and development which responds to theneeds of customers in Japan and overseas and promptly follows-up sales
activities. Also foster human resources that can actively work overseas,
integrating sales and technology.
3. Establish a rapid product development and sales system for cutting oils
and fluids for photovoltaic cells and further correspond to the cutting
method using bonded abrasive grains to make these products a larger
source of revenues.

4. In the building maintenance chemicals business, launch projects to
expand the business and conduct product development and active sales
expansion in response to the market.
5. Build IT system that allows for the accurate and prompt communicationof customer, product, and service information through the constructionof the new core system.

Future Issues and Challenges
We believe that we will need to tackle the following issues in order to makethe business strategy outlined above viable and to transform the Company
into a truly global company.
1. Global expansion
2. Strategic designing and development of products
3. Strengthened coordination between sales and technology overseas andin Japan
4. Establishment of personnel education and training systems on a global
basis
5. Strengthened corporate governance for overseas subsidiaries andaffiliates

Basic policy for profit distribution
The Company prioritizes shareholder returns and seeks to maintain a properbalance between returns through the dividends payments and investments
for continued growth.

) Decrease

Million yen%

Million yen%%

14,592

73.4

16,026

69.3

109.8

Yen in millions
Fiscal Years ended March 31,

Net sales
North and South America

2,358

11.9

2,865

12.4

121.5

China

1,895

9.5

2,651

11.5

139.9

Southeast Asia / India

1,037

5.2

1,563

6.8

150.7

Total

19,884100.0

23,107

100.0

116.2

Operating income

U.S. dollars in thousands

2011

2010

2011

¥23,107¥19,884$277,896

2,050

987

24,658Net income

1,435

452

17,264

Total assets

28,78028,685346,127

Net assets

20,714

18,697249,119

Per Share Amounts
Net income per share
Cash dividends per share
Net assets per share

Yen

U.S. dollars¥111.34¥35.31$1.33

25.00

12.00

0.30

1,415.27

1,381.56

17.02

Notes : 1. U.S. dollar amounts, converted at the rate of ¥83.15 to US$1.00, are for convenience only.
2. Net income per share is based on the average number of shares outstanding at the end of each fiscal year.
3. Japanese yen amounts of less than one million have been excluded.

1

2

REVIEW OF OPERATIONSThe Yushiro Group consists of Yushiro Chemical Industry Co.,
Ltd., two domestic subsidiaries, ten overseas subsidiaries and three
affiliates, and its major businesses are the production and sales ofmetalworking oils and fluids, chemicals for building maintenance.
We have also expanded our business to include the purchase and saleof products related to each business, logistics and other services.

R E V I E W O F O P E R AT I O N S B Y R E G I O N
1. JapanIn the metalworking oils and fluids business, the number of units produced exceeded
the previous fiscal year for the automobile industry, accompanying the increased
demand in environmentally-friendly cars due to eco-car subsidies and tax reductions.
In the photovoltaic cell industry, production capabilities have been increased thanks
to robust demand and net sales increased solidly.
Meanwhile, in the building maintenance chemicals business, low-price trend has
continued by intense price competition.
As a result, net sales in Japan rose 9.8% over the previous fiscal year to ¥16,026
million. This segment reported an income increase of 88.1% over the previous fiscal
year to ¥1,010 million, mainly thanks to increased sales volume.
2. North and South America
In the United States, business was driven by the steady recovery in automobile
production, as sales with existing customers expanded and business progressed withnew customers, as well as sales of cutting oils and fluids for photovoltaic cells, allcontributing to solid performance of net sales.
Meanwhile, in Brazil, strong car sales continued due to steady domestic demand evenafter the abolishment of industrial products tax reduction in April and sales to theautomobile industry, our main customers, were also favorable.
As a result, net sales increased 21.5% over the previous fiscal year to ¥2,865 million.
Although raw materials prices are increasing, this segment reported an income
increase of 98.7% over the previous fiscal year to ¥463 million, mainly attributable toincreased sales volume.

Business on metalworking oils and fluids

Overseas Subsidiaries

What is "metalworking oils and fluids"

Yushiro Manufacturing America Inc.
783 West Mausoleum Road, P.O. Box 217
Shelbyville, Indiana 46176-9720 U.S.A.
Phone: (1) 317-398-9862 Fax: (1) 317-392-4818
URL: http://www.yushirousa.com/• Fluids used for processing steel and other metals into specific shapes.
• Important areas of fluid performance include lubricity, cooling ability, etc.
• Mainly used in the automotive, precision processing and semiconductor
processing industries.

Yushiro do Brasil Indústria Química Ltda.
Av. Henry Néstle, 3100 Caçapava, São Paulo, Brazil
Phone: (55) 12-3654-8100 Fax: (55) 12-3654-8101
URL: http://www.yushiro.com.br/

Products

Shanghai Yushiro Chemical Industry Co., Ltd.
881 Fulian Road, Baoshan, Shanghai,
P.R. China 201905
Phone: (86) 21-3604-1188 Fax: (86) 21-3604-0916
Qidong Yushiro Chemical Industry Co., Ltd.
New Qidong Port North
Qidong City, Jiangsu, Province, China
Phone: (86) 513-836-99942 Fax: (86) 513-836-99943
Yushiro-Jet Chemicals Sdn. Bhd.
14, Jalan Utama 2/28, Pusat Perindustrian Maju Jaya,
47100 Puchong, Selangor Darul Ehsan, Malaysia
Phone: (60) 3-8061-9737 Fax: (60) 3-8062-2731
URL: http://www.jetchem.com.my/

3. China

Yushiro (Thailand) Co., Ltd.
AMATA Nakorn Industrial Estate 700/533 Moo7,
Don Hua Roh, Muang, Chonburi 20000, Thailand
Phone: (66) 38-454-873 Fax: (66) 38-454-879

A high growth rate was seen in China as a result of factors including government-led
infrastructure development and strong consumer spending. Production volume
significantly increased for our main customers, Japanese automobile manufacturers
and steel companies, and net sales were strong as well.

Yushiro India Company Private Limited
201, JMD Regent Square, M.G.Road,
Gurgaon-122002 (Haryana), India
Phone: (91)124-424-1650 Fax: (91)124-424-1652

As a result, net sales increased 39.9% over the previous fiscal year to ¥2,651 million.
This segment reported an income increase of 50.9% over the previous fiscal year to¥444 million, mainly thanks to increased sales volume, despite the rise in raw
materials prices.
4. Southeast Asia/India
In the countries of Southeast Asia, sales of motorcycles and automobiles were strong
and the number of units produced increased. For this reason, subsidiaries had strong
net sales. In India, new customers were acquired successfully.
As a result, net sales increased 50.7% over the previous fiscal year to ¥1,563 million.
This segment reported an income increase of 64.2% over the previous fiscal year to¥172 million, mainly due to increased sales volume.

3

Subsidiaries and Associated Companies

PT. Yushiro Indonesia
JI. Maligi, Blok B-2B, Kawasan Industry KIIC,
Karawang 41361-West Java, Indonesia
Phone: (62)21-8911-4271• Cutting and Grinding Oils and Fluids• Aluminum Diecasting Lubricants• Cutting Oils and Fluids for Advanced-Material• Cleaners• Rust Preventives• Rolling Oils and Fluids• Drawing Oils and Fluids• Forming Oils and Fluids• Quenching Agents• Fire Resistant Hydraulic Lubricants• Other Oils and Fluids
Customers• Automobile companies• Precision machine processing companies• Steel companies• Electric equipment companies• Other machine processing companies

65
4

Automobile
50.1%

3

2

1

1. Automobile manufacturer andAutomobile related: 50.1%
2. Photo Voltaic/semiconductor: 15.1%
3. Precision machinery: 12.1%
4. Ball bearing manufacturer: 4.6%
5. Steel industry: 4.2%
6. Other: 13.9%

The Company’s advantages in the field of Cutting
and Grinding Oils and Fluids• Our overwhelming share in the automobile industry; morethan 60%
The Company features its production development capacities
and quick response to changes in the automobile industry
including rationalization, changes in materials and measures
to address environmental issues.
• Our wide human network interacts with users in different
industries at “The Society of Cutting Fluids & Cutting
Technology”
About the Society
The society was launched in 1954 as an on-site research group made up of
metal processing technology researchers, and has served as an officebridging academy and industry for 50 years.
Engineers with abundant on-site experience, beginning with those from
our automotive manufacturing customers, as well as those from machine
manufactures, tooling manufactures, etc., gather to exchange information
and work together to develop higher technologies and further nurture
their expertise. This group has served as a “training room” for theseexperts throughout the history of the industry. It is therefore no
exaggeration to say that this group is a national asset supporting productdevelopment, or monozukuri.

Note: Metalworking oils and fluids business: Metalworking oils and fluids are
manufactured and sold by Yushiro Chemical Industry Co., Ltd.
In overseas markets, metalworking oils and fluids are manufactured and sold by
the Company’s subsidiaries: Yushiro Manufacturing America Inc., in the UnitedStates; Yushiro do Brasil Ind. Quimica Ltda., in Brazil; Shanghai Yushiro
Chemical Industry Co., Ltd., Qidong Yushiro Chemical Industry Co., Ltd., andGuangzhou Yushiro Oil & Fluids Co., Ltd., in China; Yushiro-Jet Chemicals
Sdn. Bhd., in Malaysia; Yushiro (Thailand) Co., Ltd., in Thailand; Yushiro India
Company Private Limited, in India; P.T.Yushiro Indonesia in Indonesia; andYushiro Mexico S.A. de C.V. in Mexico; and our affiliates: Buhmwoo Chemical
Industry Co., Ltd., and Buhmwoo Co., Ltd., in South Korea and San-I ChemicalCo., Ltd., in Taiwan.

Shares of sales by customers for the fiscal year
ended March 2011.

Overseas Associated Companies
Buhmwoo Chemical Ind. Co., Ltd. & Buhmwoo Co., Ltd.
70-3, Yangjae-Dong, Seocho-gu, Seoul, Korea
Phone: (82) 2-571-6321 Fax: (82) 2-571-6329
URL: http://www.buhmwoo.com/
San-I Chemical Co., Ltd.
7th Fl. No.48 Ming Chuang W. Rd., Taipei, Taiwan R.O.C.
Phone: (886)-02-2522-1313 Fax: (886)-02-2522-1363

4

Consolidated Balance Sheets(Unaudited)
As of March 31, 2011 and 2010

U.S. dollars
in thousands(Note 5)

Millions of yen

AssetsCurrent assets:
Cash and time deposits
Notes and accounts receivable–tradeMarketable securities
Inventories
Income tax receivable
Deferred tax assets
Other current assets
Allowance for doubtful accounts
Total current assets
Fixed assets:
Buildings and structures
Machinery, equipment and vehicle
Tools, furnitures and fixtures
Land
Lease assets
Construction in progress(Total property, plant and equipment)(Total intangible fixed assets)
Investment in securities
Investments in subsidiaries and affiliates
Long-term loans receivable
Savings premium
Deferred tax assets
Other assets
Allowance for doubtful accounts(Total investments and other assets)
Total fixed assets
Total assets

5

2011

¥6,153
5,339
390
2,224
–
244
309
(24)
14,636

2,752
829
146
3,952
63
89
7,834
183
2,199
2,488
11
461
19
968
(24)
6,125
14,143¥28,780

2010¥5,522
5,089
390
1,788
11
226
342
(53)
13,317

3,369
1,408
224
4,488
45
65
9,601
169
2,170
2,445
18
536
36
436
(48)
5,596
15,367¥28,685

2011$73,999
64,2134,700
26,748
–
2,935
3,724
(294)
176,026

33,102
9,973
1,764
47,538767
1,078
94,2252,210
26,451
29,930
142
5,548
239
11,650(299)
73,664
170,101$346,127

U.S. dollars
in thousands(Note 5)

Millions of yen

Liabilities and net assets
Current liabilities:
Notes and accounts payable–trade
Short–term borrowings
Current portion of bonds payable
Accounts payable-otherAccrued corporate taxes
Accrued bonuses
Other current liabilities

2011

2010

2011

¥3,264
900
–
434
738
486
668

¥2,918
1,339
40
552
397
473
653

$39,262
10,826
–
5,222
8,881
5,855
8,042

6,493

6,374

78,090

160
879
184
44
304

2,005
1,050
212
49
296

1,934
10,581
2,214
529
3,656

Total long-term liabilities
Total liabilities

1,572
8,066

3,613
9,988

18,91797,007

Net assets:
Shareholders' equity
Common stock
Capital surplus
Retained earnings
Treasury stock
Accumulated other comprehensive income
Net unrealized gains on securities
Currency translation adjustments(Total minority interests)

22,916
4,249
4,058
16,062(1,454)(3,309)211(3,521)
1,106

20,6394,249
3,994
14,974(2,579)(2,938)280(3,218)995

275,605
51,10548,807
193,180(17,487)(39,797)
2,549(42,346)
11,97820,714¥28,780

18,697¥28,685

249,119$346,127

Total current liabilities
Long-term liabilities:
Long-term debt
Accrued retirement benefits for employees
Accrued retirement allowances for directors
Deferred tax liabilities
Other long-term liabilities

Total net assets
Total liabilities and net assets

6

Consolidated Statements of Income

Important points forming the basis of
consolidated financial statements(Unaudited)
For the Years Ended March 31, 2011 and 2010

U.S. dollars
in thousands(Note 5)

Millions of yen

2011

2010

2011

¥23,107¥19,884$277,896

Cost of sales

15,69013,733

188,699

Gross profit

7,416

6,150

89,196

5,366

5,163

64,5372,050

987

24,658Net sales

Selling, general and administrative expenses
Operating income

1. Scope of Consolidation
The scope of consolidation includes all 12 consolidated subsidiaries: Yushiro
Unso Co., Ltd., Yushiro Manufacturing America Inc., Yushiro do Brasil
Industria Quimica Ltda., Yushiro (Thailand) Co., Ltd., Qidong Yushiro
Chemical Industry Co., Ltd., Shanghai Yushiro Chemical Industry Co., Ltd.,
Yushiro-Jet Chemicals Sdn.Bhd., Guangzhou Yushiro Oil & Fluids Co.,
Ltd., Yushiro India Company Private Limited., P.T. Yushiro Indonesia,
Yushiro General Service Co., Ltd., and Yushiro Mexico S.A. de C.V.
NS. Yushiro Co., Ltd. was removed from the scope of consolidation from thecurrent consolidated fiscal year as all of its shares were sold.

Interest and dividend income

150

154

1,814

In addition, P.T. Yushiro Indonesia, Yushiro General Service Co., Ltd., andYushiro Mexico S.A. de C.V. were newly established and included in thescope of consolidation from the current consolidated fiscal year.

Equity in earnings of associated companies

381

295

3,548

2. Application of the Equity Method

Other income

74

171

900

Interest expenses

42

71

508

Other expenses

150

45

1,813

Ordinary income

2,464

1,491

29,637

Gain from sale of fixed assets

37

41

455

Gain from sale of investment in securities

162

–

1,954

Other extraordinary income

46

133

554

Loss on disposal of fixed assets

3

5

37

Other extraordinary losses

9

491

117

2,697

1,168

32,446

Income before income taxes

The three affiliates, Buhmwoo Chemical Industry Co., Ltd., Buhmwoo Co.,
Ltd. and San-I Chemical Co., Ltd., are included in the scope of application
for the equity method.
Yushiro Buhmwoo (India) (currently Young Buhmwoo India Company
Private Limited) is no longer considered as an affiliate as it is not able to havea material impact on decisions relating to financial, sales, or business policyin terms of its financial, sales, or business relationship.
3. Fiscal Years of the Consolidated Subsidiaries
The fiscal year-end of all ten overseas subsidiaries is December 31. In
preparing the consolidated financial statements, results as of that date areused, provided that necessary adjustments are made regarding materialtransactions conducted between January 1 and March 31, the consolidation
closing date.
4. Significant Accounting Policies(1) Valuation standard and methods for securities

994

453

11,955

1

65

23

996

518

11,979

Income before minority interests

1,701

–

20,467

Minority interests

(266)

(197)

(3,202)¥1,435¥452$17,264

Corporate, local income enterprise taxes
Deferred taxes
Total income taxes

Net income

In other securities, quoted securities are stated at market value at the
fiscal year-end. Unrealized gains are included in net assets, and the costof securities sold is computed using the moving-average method.
Unquoted securities are accounted for on a cost basis using the movingaverage method.
(2) Valuation standard and methods for inventories
The aggregate average cost method is adopted (i.e., the book value
reduction method based on declines in profitability).
(3) Depreciation method used for major depreciable assets
1. Tangible fixed assets (excluding leased assets)

Consolidated Statements of Cash Flows(Unaudited)
For the Years Ended March 31, 2011 and 2010

U.S. dollars
in thousands(Note 5)

Millions of yen

2011

2011

Cash flows from operating activities:¥1,414¥2,426$ 17,010

Cash flows from investing activities:

(127)

(59)

(1,530)Cash flows from financing activities:(558)(1,085)(6,721)

Effect of exchange rate changes on cash and cash equivalents

(223)

322

(2,683)

Net increase (decrease) in cash and cash equivalents

505

1,604

6,074

5,892

4,288

70,866¥6,397¥5,892$76,941

Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year

7

2010

The Company and its consolidated subsidiaries in Japan use thedeclining-balance method (however, the straight-line method isadopted for the Company’s technical research center). However, thestraight-line method is used for buildings acquired on or after April 1, 1998
(with the exception of annexed facilities). Overseas consolidated
subsidiaries generally use the straight-line method. The main terms ofuseful service life are 3 to 50 years for buildings and structures and 2
to 20 years for other tangible fixed assets. Inexpensive tangible fixed
assets costing ¥100,000 to ¥200,000 are equally amortized over 3
years on a straight-line basis.
2. Intangible fixed assets (excluding leased assets)
The amortization of intangible fixed assets is computed by thestraight-line method. Computer software for internal use isamortized by the straight-line method over the estimated useful life
(5 years).
3. Leased assets
Assets leased under finance lease transactions without a transfer ofownership

Finance lease transactions without a transfer of ownership, with alease that begins prior to the applicable initial year, continue to behandled according to the methods relating to conventional leasetransactions.
(4) Reserves
Allowance for doubtful accounts
The allowance for doubtful accounts is provided for possible bad
debt at the amount estimated based on the past bad debt experience
for normal receivables, plus uncollectible amounts determined byreference to the collectibility of individual doubtful receivables.
Accrued bonuses

Reserve for directors’ bonuses

The Accrued bonuses is provided at an estimated amount based on
the internal payment prediction standard.
At our subsidiaries Qidong Yushiro Chemical Industry Co., Ltd.
and Shanghai Yushiro Chemical Industry Co., Ltd., the reserve forbonuses to directors is provided at the amount estimated to be
accrued for the consolidated balance sheet date to prepare for suchpayments.
Accrued retirement benefits for employees
The accrued retirement benefits for employees are provided forpossible payment of employees’ post-retirement benefits at theamount to be accrued at the balance sheet date, and are calculated
based on the retirement benefit obligation and fair value of pension
plan assets at the end of this fiscal year. The actuarial gain or loss isamortized by the straight-line method over a period of 10 years,
which is shorter than the average remaining service years for
employees at the time of recognition, from the following year ofrecognition.
Accrued retirement allowances for directors
In order to prepare the reserve for retirement allowances for
directors, the Company and its subsidiary Yushiro Unso Co., Ltd.,
based on the internal regulations, utilize an accounting method
calculated according to the estimated amount to be accrued by the
consolidated balance sheet date.
Litigation Loss Reserves
In order to prepare for potential losses on litigation, we have estimatedvalue of potential future losses and recorded the amount deemednecessary as litigation loss reserves.
(5) Scope of funds contained within the consolidated statements of cashflows
The funds (cash and cash equivalents) included in the consolidated
statements of cash flows consist of cash on hand, deposits that can bewithdrawn at any time, and short term investments that can be easilyliquidated and have maturities within three months of acquisition thatare exposed to only a minimal value fluctuation risk.
(6) Other significant matters for the preparation of consolidated financial
statements
1. Standards for conversion of foreign currency denominated assets andliabilities to Japanese yen
Debts and credits denominated in foreign currencies are converted toyen at the actual market exchange rate on the closing date. The effectof exchange rate changes is recorded as a gain or loss.
2. Accounting treatment of consumption tax, etc.
Consumption tax, etc. is recorded on tax exclusive basis.
5. The U.S. dollar amounts in the financial statements for the
fiscal year ended March 31, 2011, represent translation ofJapanese yen at the rate of ¥83.15=US$1.00.

The straight-line method in which the lease term is determined by the
number of years of the useful life, with a zero residual value, is used.
8

FINANCIAL INDICATORS
Operating Income (yen in million)

Net Sales (yen in million)
2011
2010

23,473

2007

25,626

2008

2,380

2007

2,448

T h e way o f mu t u a l p r o g r es s

Total Assets, Net Assets (yen in million) , and ROE(%)

Net Income (yen in million)
1,435

2011

2009

516

2009

27,193

2008

2010

319

2009

7.7 28,780

20,714

2011

452

2010

987

2010

19,884

2009

2,050

2011

23,107

28,685

18,6972.7

26,587

17,158

1.7

2008

1,884

2008

22,706

8.7

2007

1,834

2007

22,2698.8 32,839

Total assets

Net assets

33,473ROE

CORPORATE DATA (as of March 31, 2011)34-16, 2-chome, Chidori, Ota-ku, Tokyo 146-8510, Japan
Phone: (03) 3750-3100 Fax: (03) 3750-9915 URL: http://www.yushiro.co.jp¥4,249 million
332
July 24, 1944
Tokyo, Nagoya and Osaka
Hokkaido, Tohoku, Kitakanto, Hamamatsu, Hokuriku, Fukuyama, Hiroshima and Kyushu

Head Office
Capital
Employees
Established
Branch Offices
Sales Offices

ANNUAL REVIEW 2011
For the Year Ended March 31, 2011

Directors and Auditors (as of June 23, 2011)

Managing Directors

Yuji Kishi
Haruo Okamoto
Shinji Hamamoto
Yasuo Chiba
Tsuneo Onda
Akitaka Nozue

Directors

Eiichi Ogo
Yoshiaki Nagai
Masahisa Hirobe
Tatsuharu Hyakusoku
Yoshihiro Sakaguchi

President
ChairmanStanding Auditors
Auditor (CPA)

Stock Information (as of March 31, 2011)
Number of shares issued
Trading unit
Total number of shareholders
Stock listing
Securities code
Transfer agent for common stock
Independent certified public accountants
Main underwriter

15,200,065
100
6,202
First section, Tokyo Stock Exchange
5013
Mitsubishi UFJ Trust and Banking Corporation
Ernst & Young ShinNihon LLC
Nomura Securities Co., Ltd.

(millionsof yen )Market value of shares

50,00040,00030,00020,00010,00002005/3 2006/3 2007/3 2008/3 2009/3 2010/3 2011/3

Stock pricesTerm2010.42010.52010.6

2010.72010.82010.9

High

1,260

1,250

1,248

1,234

1,196

1,147

1,105

1,148

Low

1,142

1,050

1,080

1,040

1,060

1,070

940

Trading volume

2,288

2,828

2,679

1,720

1,911

1,617

1,851

(Yen/share)(Yen/share)(Hundred of shares)

2010.10 2010.11 2010.12

2011.1

2011.2

2011.3

1,249

1,421

1,425

1,312

950

1,053

1,203

1,216

830

2,564

6,170

6,903

5,671

18,601