ANNUAL REVIEW 2009
For the Year Ended March 31, 2009

PRESIDENT’S MESSAGE

Yushiro Chemical Industry Co., Ltd. has contributed to the progress andmaterial development of Japan by supplying quality oil-fat-wax (yu-shi-ro)
products. We have succeeded in developing and offering to virtually allindustrial markets such auxiliary products as metalworking oils and fluids,
polishing agents for building maintenance. To respond to the needs of theindustry, 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.”

Yoshiaki Nagai
PRESIDENT

Business summary
This consolidated fiscal year faced various factors that included soaring prices
for raw materials in conjunction with the high cost of crude oil, as well as afinancial crisis in the United States spurred by the collapse of Lehman
Brothers in September. All of these factors had a substantial impact on thereal economy, including a rapid increase in the value of the yen and declining
share prices, resulting in a sudden economic downturn.
The automobile industry, which is a major consumer of our products, also
experienced a rapid decline for demand in Japan and overseas. The
automobile industry in the United States and around the world was deeply
impacted by the economic downturn, with automobile production
plummeting since October 2008.
Despite these circumstances our subsidiaries in China and Brazil reported
strong net sales, but the impact of the rising value of the yen was substantial;
and as a result, net sales by overseas subsidiaries on a yen basis were down.
In Japan, automobile companies greatly reduced production, andconsolidated net sales were ¥23,473 million, down by 13.7% compared tothe previous year.
In term of profit, there was a substantial impact from rising raw materials
costs as a result of high crude oil prices, rising fixed costs in conjunction withdeclining sales volume, and the rapid appreciation of the yen. Despite
responding with cost cutting and price revisions, consolidated operating
income fell 78.3% year over year, to ¥516 million. The global recession
caused our overseas subsidiaries’ performance to slump, and the effects of adecrease in equity method derived income and exchange rates wereconsiderable, resulting in a 69.4% year over year drop in ordinary income, to¥882 million. Net income fell year over year by 83.0%, to ¥319 million.

1

Business segment

Previous Fiscal Year
Current Fiscal Year
Increase/
April 1, 2007, through April 1, 2008, throughDecrease
March 31, 2008
March 31, 2009
Million yen%

Million yen%%

Metalworking oils andfluids business

23,503

86.4

20,00985.2

85.1

Building maintenancechemicals business

1,891

7.0

1,684

7.2

89.1

Industrial waste
processing-related
business

1,799

6.6

1,779

7.6

98.9

Total

27,193100.0

23,473

100.0

86.3

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.
The current economic climate, however, is extremely challenging, andconsequently we plan to set the year-end dividend for the fiscal year underreview at ¥5 per share. This will result in total dividends for the year of ¥20
per share.

Consequently, we have decided to suspend the 15th Three-Year MediumTerm Plan, to adopt a plan solely for the fiscal year ending March 2010, andwork towards achieving the new goals. Major aspects of the productionplans of leading automobile makers remain undecided, however, so we willrevise the plan as necessary. We intend to formulate our plan for the period
beyond the fiscal year ending March 2010 while closely monitoring
economic development and demand trends.
Basic Strategies(1) Extension of our technological prowess in every business segment of
the Company, thereby ensuring continued profitability.
(2) Transformation into a global company by promoting a consolidated
management structure.
Financial Targets (For the year ending March 31, 2010)
Net sales:¥19,470 million
Operating income:¥ 340 million
Ordinary income:¥ 500 million
Net income:¥ (210) million

Future Issues and Challenges
Based on the basic policies of extending our technological prowess in all ofour business segments, and transforming into a global company bypromoting a consolidated management structure, the Company iscommitted to achieving a long-term sustainable growth in profits. To realize
this aim, it is vital to actively tackle the following issues:
1. Reinforce corporate governance as a corporate group.
2. Reinforce participation in management of group companies.
3. Create cost structures that can respond to changes in prices of materials.
4. Respond to the overseas expansion of the automobile industry, which is
the major user of our products, and of related industries.
5. Reinforce ability to develop technologies to meet the global needs of thephotovoltaic cell industry.

Yen in millions
Fiscal Years ended March 31,

Net sales2009¥ 23,473

U.S. dollars in thousands

¥

2008
27,1932009$238,966
5,259

Operating income

516

2,380

We will announce our plans concerning dividends in the coming fiscal year
after a close examination of economic conditions.

Net income

319

1,884

3,257

Total assets

26,58733,473

270,663

Net assets

17,15822,706

174,675

M e d i u m - a n d L o n g - Te r m P l a n

Per Share Amounts

This fiscal year is the second year of our 15th Three-Year Medium-Term
Plan. Under normal circumstances, we would discuss the goals for the final
year of the plan, which the fiscal year ending March 2010, but under thecurrent harsh economic climate, it will be extremely difficult to achieve thosegoals.

Net income per share
Cash dividends per share
Net assets per share

Yen

¥

22.57

U.S. dollars¥

127.56

$

0.22

20.00

47.00

0.20

1,272.04

1,474.59

12.94

Notes : 1. U.S. dollar amounts, converted at the rate of ¥98.23 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.

2

REVIEW OF OPERATIONSThe Yushiro Group consists of Yushiro Chemical Industry Co., Ltd., twodomestic subsidiaries, six overseas subsidiaries and four affiliates, and its
major businesses are the production and sales of metalworking oils andfluids, chemicals for building maintenance and industrial waste processing.
We have also expanded our business to include the purchase and sale ofproducts related to each business, logistics and other services.

M E TA LW O R K I N G O I L S A N D F L U I D S
BUSINESSBUILDING MAINTENANCE CHEMICALSBUSINESSThe metalworking oils and fluids business reported strong sales in the firsthalf because of the relatively solid performance by leading customers in Japanand overseas, but in the second half the considerable drop in production
within the automobile industry, triggered by financial instability in the
United States, exerted a major impact, so that leading products such as
cutting and grinding oils and fluids began to fall steeply in November.
Nonetheless, sales of cutting oils and fluids for photovoltaic cells, a priority
growth product field, were up significantly from the prior year. As a result,net sales were down 14.9% year over year, to ¥20,009 million.
With respect to profit, prices for raw materials including crude oil, naphtha,
and natural fats increased substantially, particularly in the second half. The
higher costs were repeatedly shifted to sales prices, but the effect from lower
sales was considerable, with operating income down 77.7% year over year, to¥497 million.
Sales
2009

(Yen in millions)

20,009

2008

85.2%

23,503
21,684

2007
2006
2005

19,57916,783

Metalworking oils and fluids• 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.
Products• 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

7
6

1

5
4

Automobile
57.2%
3

2

1. Automobile manufacturer: 18.3%
2. Automobile related: 38.9%
3. Precision machinery: 12.8%
4. Photo Voltaic/semiconductor: 9.1%
5. Ball bearing manufacturer: 4.8%
6. Steel industry: 4.4%
7. Other: 11.7%
Shares of sales by customers for the fiscal year
ended March 2009.

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. (“YUMA”), in the United States; Yushiro
do Brasil Ind. Quimica Ltda., in Brazil; Qidong Yushiro Chemical Industry Co., Ltd., and Shanghai Yushiro Chemical Industry Co., Ltd., in China; Yushiro-Jet Chemicals Sdn. Bhd., in
Malaysia; and Yushiro (Thailand) Co., Ltd., in Thailand; and our affiliates: Buhmwoo Chemical Industry Co., Ltd., and Buhmwoo Co., Ltd., in South Korea and San-I Chemical Co.,
Ltd., in Taiwan.
3

The Company’s advantages in the field of Cutting andGrinding Oils and Fluids• Our overwhelming share in the automobile industry; more than60%
The Company features its production development capacities andquick response to changes in the automobile industry including
rationalization, changes in materials and measures to addressenvironmental 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 office bridging academy
and industry for 50 years.
Engineers with abundant on-site experience, beginning with those from ourautomotive manufacturing customers, as well as those from machine
manufactures, tooling manufactures, etc., gather to exchange information andwork together to develop higher technologies and further nurture their expertise.
This group has served as a “training room” for these experts throughout thehistory of the industry. It is therefore no exaggeration to say that this group is anational asset supporting product development, or monozukuri.

The building maintenance industry is a major user of our products, and thisbusiness segment continues to face extremely difficult conditions because of
the economic downturn, including order cancellations and smaller orders.
As a result, the use of the maintenance equipments that we handle has
declined.
Facing this situation, we made an effort to increase sales of segments related
to rolling stock, but it was not possible to make up for the impact of theeconomic slump.
As a result, net sales were down 10.9% year over year, to ¥1,684 million andthis segment reported an operating loss of ¥7 million.
Sales
2009
2008

7.2%

2007

(Yen in millions)

1,684
1,891
2,086

2006

2,239

2005

2,293

Note: Building maintenance chemicals business: Yushiro Chemical Industry Co., Ltd.,
manufactures and sells chemicals for building maintenance.

4

REVIEW OF OPERATIONS

Subsidiaries and Associated Companies
Overseas Subsidiaries
Yushiro Manufacturing America Inc. (YUMA)
783 West Mausoleum Road, P.O. Box 217
Shelbyville, Indiana 46176 U.S.A.
Phone: (1) 317-398-9862 Fax: (1) 317-392-4818
URL: http://www.yushirousa.com

I N D U S T R I A L WA S T E P R O C E S S I N G B U S I N E S S
In the first quarter our combustion furnace operation was stable, thanks to a large volume of orders
received from major customers, but the sudden economic downturn starting in August affected theindustrial waste processing business and orders for solid building waste and liquid waste in particular were
down sharply. As a result, net sales were down 1.1% year over year, to ¥1,779 million.

Yushiro do Brasil Indústria Química Ltda.
Av. Henry Néstle, 3100 Caçapava, CEP 12281-970
São Paulo, Brazil
Phone: (55) 12-3654-8100 Fax: (55) 12-3654-8101
URL: http://www.yushiro.com.br

In term of profit, depreciation costs increased in conjunction with the constriction in the useful life ofdepreciable assets and repair reserves relating to statutory inspections increased. This caused a 69.4% year
over year drop in operating income, to ¥25 million.
Sales

7.6%

1,779

2008

1,799

2007

1,855

2006

1,436

2005

1,426

San-I Chemical Co., Ltd.
7th Fl. No.48 Ming Chuang W. Rd., Taipei, Taiwan R.O.C.
Phone: (886) 2-2522-1313 Fax: (886) 2-2522-1363

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(Yen in millions)

2009

Overseas Associated Companies
Buhmwoo Chemical Ind. Co., Ltd. & Buhmwoo Co., Ltd.
70-3, Yangjae-Dong, Seocho-Ku, Seoul, Korea
Phone: (82) 2-571-6321 Fax: (82) 2-571-6329
URL: http://www.buhmwoo.com

Note: The industrial waste processing business isconducted by a subsidiary, NS.Yushiro Co., Ltd.

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

Yushiro Manufacturing America Inc. (YUMA)

Yushiro do Brasil Indústria Química Ltda.

Yushiro-Jet Chemicals Sdn. Bhd.

Yushiro (Thailand) Co., Ltd.

Yushiro-Jet Chemicals Sdn. Bhd.
14, Jalan Utama 2/28, Pusat Perindustrian Maju Jaya,
47100 Puchong, Malaysia
Phone: (60) 3-8061-9737 Fax: (60) 3-8062-2731
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

Shanghai Yushiro Chemical Industry Co., Ltd.

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. JapanNet sales in Japan fell 12.1% year over year to ¥17,985 million, accounting
for 76.6% of consolidated net sales.
An operating loss of ¥37 million was reported.
2. United States
The automobile industry experience a rapid decline in the second half, andas a result net sales were down 23.4% year over year, to ¥1,448 million.
With respect to income, we revised product prices and took measures toreduce costs in response to the high cost of materials, but operating income
was down 76.0% year over year, to ¥56 million.

5

3. China
In the first half, demand prior to the Olympics supported strong sales, but inthe second half the global recession caused customers to adjust inventories
and reduce production. As a result, net sales were down 1.9% year over year,to ¥1,981 million.
Materials costs were quite high and sales and administrative expenses
increased, causing operating income to decline 3.1% year over year, to ¥232
million.
4. Brazil
Sales in automobile related industries were strong, and net sales were higher

on a local currency basis, but the rapid decline of the Brazilian real against
the yen caused 38.3% year over year decline in net sales, to ¥957 million,
and a 43.2% year over year drop in operating income, to ¥138 million.
5. Malaysia
Indonesia is a major export destination, and sales of motorcycles were strong,
greatly surpassing sales in the prior year up to October, but rising freightcosts and the exchange rate limited the beneficial impact on income. As aresult, net sales increased 0.1% year over year, to ¥587 million, but operating
income fell 83.8% year over year, to ¥6 million.

6. Thailand
Sales to the Japanese automobile industry, which is the primary client,remained strong through the first half, but the industry declined in thesecond half so sales were only slightly higher than in the prior fiscal year on a
local currency basis. Rising costs for primary materials also led to lower
operating income, which resulted in a substantial decline for the entire year.
The increasing value of the yen was also a key factor, resulting in a 25.4%
year over year decrease in net sales, to ¥513 million, and a 42.3% year overyear decline in operating income, to ¥112 million.

6

Consolidated Balance Sheets(Unaudited)
As of March 31, 2009 and 2008

U.S. dollars
in thousands(Note 8)Millions of yen

AssetsCurrent assets:
Cash and time deposits
Notes and accounts receivable–tradeMarketable securities
Inventories
Consumption tax receivable
Income tax receivable
Deferred tax assets
Other current assets
Allowance for doubtful accounts
Total current assets

7

2009

¥ 4,118
4,229
190
1,785
0
201
166
274
(62)
10,9052008¥ 5,143
6,330
189
2,376
–
–
230
324
(49)
14,5442009$ 41,926
43,0591,935
18,181
8
2,051
1,695
2,795
(633)
111,020

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)

3,569
1,777
315
4,475
21
59
10,218
149

3,865
2,309
391
4,497
–
84
11,14775

36,33618,091
3,216
45,561
217
608
104,031
1,517

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

1,725
2,128
23
514
520
447
(46)
5,313
15,681¥ 26,587

2,455
3,352
27
458
242
1,214
(44)
7,705
18,928¥ 33,473

17,562
21,668
242
5,237
5,294
4,555
(468)
54,093
159,642$ 270,663

U.S. dollars
in thousands(Note 8)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
Deferred tax liabilities
Other current liabilities
Total current liabilities
Long-term liabilities:
Corporate bonds
Long-term debt
Accrued retirement benefits for employees
Accrued retirement allowances for directors
Deferred tax liabilities
Other long-term liabilities
Total long-term liabilities
Total liabilities
Net assets:
Common stock
Capital surplus
Retained earnings
Treasury stock(Total shareholders’ equity)
Net unrealized gains on securities
Currency translation adjustments(Total valuation, translation adjustments and others)(Total minority interests)
Total net assets
Total liabilities and net assets

2009

2008

2009

¥ 1,917
1,372
80
483
86
431
–
635
5,006

¥ 4,312
1,115
80
603
329
534
6
674
7,655

$ 19,523
13,969
814
4,918
875
4,389
–
6,471
50,963

40
2,745
1,043
216
48
329
4,422
9,428

120
1,267
1,079
243
53
348
3,111
10,766407
27,947
10,619
2,203
498
3,349
45,024
95,9884,249
3,994
14,650(2,579)20,315(298)(3,718)(4,017)860
17,158¥ 26,587

4,249
3,994
14,938(298)
22,884
187(1,289)(1,102)925
22,706¥ 33,473

43,25940,666
149,145(26,257)
206,814(3,041)(37,853)(40,895)
8,756
174,675$ 270,663

8Consolidated Statements of Income

Important points forming the basis of
consolidated financial statements(Unaudited)
For the Years Ended March 31, 2009 and 2009

U.S. dollars
in thousands(Note 8)Millions of yen

2009

2008

2009

¥ 23,473¥ 27,193$ 238,966

Cost of sales

17,391

18,439177,052

Gross profit

6,081

8,754

61,913

5,565

6,374

56,654

Operating income

516

2,380

5,259

Interest and dividend income

165

162

1,688

Equity in earnings of associated companies

104

300

1,064

Other income

179

215

1,830

Interest expenses

53

60

544

Other expenses

31

117

319

Ordinary income

882

2,880

8,979

Gain from sale of fixed assets

3

46

34

Other extraordinary income

110

29

1,129

Loss on disposal of fixed assets

24

8

247

Other extraordinary losses

194

82

1,982

Income before income taxes

777

2,864

7,913

Corporate, local income enterprise taxes

268

815

2,737

Net sales

Selling, general and administrative expenses

Deferred taxes

87

(3)

887

Minority interests

(101)

(168)

(1,031)

Net income

¥

319

¥

1,884

$

3,257

Consolidated Statements of Cash Flows(Unaudited)
For the Years Ended March 31, 2009 and 2008

U.S. dollars
in thousands(Note 8)Millions of yen

2009

Cash flows from operating activities:

1,075

¥

2009

2,526

$ 10,952

Cash flows from investing activities:(236)(1,314)(2,406)

Cash flows from financing activities:(1,183)(1,179)(12,045)

Effect of exchange rate changes on cash and cash equivalents

(630)

40

(6,418)Net increase (decrease) in cash and cash equivalents

(974)

73

(9,918)Cash and cash equivalents at beginning of year

5,262

5,189

53,5765,262$ 43,658

Cash and cash equivalents at end of year

9

¥

2008

¥

4,288

¥

1. Scope of Consolidation
Consolidated subsidiaries include NS.Yushiro Co., Ltd., Yushiro Unso Co.,
Ltd., Yushiro Manufacturing America Co., Ltd., Yushiro do Brasil Industria
Quimica Ltda., Yushiro (Thailand) Co., Ltd.,Qidong Yushiro Chemical
Industry Co., Ltd., Shanghai Yushiro Chemical Industry Co.,Ltd., andYushiro-Jet Chemicals Sdn., Guangzhou Yushiro Oil Industry Co., Ltd.,
Yushiro India Company Private Limited.
Guangzhou Yushiro Oil Industry Co., Ltd. and Yushiro India Company
Private Limited., which were recently established, became consolidated
subsidiaries this fiscal year.
2. Application of the Equity Method
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), which was an affiliate, implemented a third-party
allocation of shares and our holdings fell below the level of significance;
consequently, the company was excluded from application under the equity
method, effective as of the fourth quarter of the current fiscal year.
3. Fiscal Years of the Consolidated Subsidiaries
The fiscal year-end of all eight 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 December 31 and the consolidation closingdate.
4. Significant Accounting Policies(1) Valuation standard and methods for securities
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)
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 of useful service life are 3 to 50 years for buildings andstructures 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.
(Additional Information)
The Company and its consolidated subsidiaries in Japan reviewed theuseful service life of buildings and machinery in conjunction with therevision of the Corporation Tax Act in 2008, and have switched tostatutory useful service lives effective this consolidated fiscal year. As
a result of this change, operating income, ordinary income, and net
income before taxes and adjustments are each ¥95 million lower than
before.
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
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, isused.
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
The Accrued bonuses is provided at an estimated amount based on
the internal payment prediction standard.
Reserve for directors’ bonuses
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 prepare the reserve for retirement allowances for directors,
the Company and its subsidiaries NS Yushiro Co., Ltd. and Yushiro
Unso Co., Ltd., based on the internal regulations, utilize an
accounting method calculated according to the estimated amount tobe accrued by the consolidated balance sheet date.
Repair reserves
The affiliate NS Yushiro Co., Ltd. recorded an amount corresponding
to expenses for this consolidated fiscal year from the anticipatedreserve expenditures used for periodic repairs, in order to conduct
the required inspections of machinery and equipment.
(5) Accounting for leases
Finance leases that do not transfer the ownership of leased property to
the lessee are accounted for as operating leases.
(6) Other
Transactions subject to the consumption tax and the local consumption
tax are accounted for using the tax exclusion method.
5. Matters related to the valuation of assets and liabilities of
the Company’s consolidated subsidiaries
The assets and liabilities of consolidated subsidiaries are valued at their fairvalue.
6. Amortization of goodwill and negative goodwill
The amount of goodwill and negative goodwill is equally amortized over 5
years on a straight-line basis.
7. Consolidated Statement on Cash Flow
Consolidated Statement on Cash Flow (cash and cash equivalents) includes
cash on hand, cash available for withdrawal, and cash invested in short-term,
low risk accounts redeemable within three months of the date of deposit.
8. The U.S. dollar amounts in the financial statements for the fiscal
year ended March 31, 2009, represent translation of Japanese yenat the rate of ¥98.23=US$1.00.
10

FINANCIAL INDICATORS
Operating Income (yen in million)

Net Sales (yen in million)
2009

27,193

2007

25,6262006

23,25520,503

2005

2008

2,380

2007

2,448

2006

2,510
2,289

2005

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

Net Income (yen in million)
2009

516

2009

23,473

2008

319

2009

2008
2007

1,884

2008

1,834

2007

1,608

2006

2006

1,538

2005

26,587

17,158

1.7

22,706

8.7

22,2698.8 32,839

20,4542005

8.1

18,832

Total assets

Net assets

33,47332,0597.8 28,238
ROE

CORPORATE DATA (as of March 31, 2009)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
349
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

Directors and Auditors (as of June 23, 2009)
Yoshiaki Nagai
Masahisa Hirobe
Yukinao Namiki
Ryuichiro Matsuno
Yuji Kishi
Haruo Okamoto

President
Managing Directors
Directors

Tatsuharu Hyakusoku
Yoshihiro Sakaguchi
Eiichi Ogo
Yasuo Chiba
Tsuneo Onda
Yoshiaki Nakamura
Akitaka Nozue

Directors

Standing Auditors

Auditor (CPA)

Stock Information (as of March 31, 2009)
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
Stock prices

15,200,065
100
5,943
First section, Tokyo Stock Exchange
5013
Daiko Clearing Services Corporation
Ernst & Young ShinNihon LLC
Nomura Securities Co., Ltd.

Term

2008.42008.5

2008.6

2008.72008.82008.92008.10 2008.11 2008.12

2009.1

2009.2

2009.3

High

1,830

1,945

1,950

1,949

1,798

1,830

1,750

1,630

1,527

1,243

960

994

Low

1,700

1,744

1,826

1,728

1,634

1,670

1,050

1,420

1,074

924

750

794

Trading volume

2,315

2,680

2,891

2,331

1,616

2,245

3,651

1,556

7,072

4,226

2,465

2,571

(Yen/share)(Yen/share)(Hundred of shares)(millionsof yen )Market value of shares

50,00040,00030,00020,00010,0000

2003/3 2004/3 2005/3 2006/3 2007/3 2008/3 2009/3