Consolidated Financial Statements (1) Consolidated Balance Sheet (Ended (Ended Assets Current assets Cash and deposits 27,057 34,440 Notes and accounts receivable-trade 4,538 3,595 Securities 3,654 11,967 Merchandise and finished goods 640 785 Work in process 1,339 2,734 Raw materials and supplies 19,617 17,241 Deferred tax assets --- 1,182 Other 2,003 2,500 Allowance for doubtful accounts (150) (63) Total current assets 58,700 74,384 Non-current assets Property, plant and equipment Buildings and structures 7,133 8,748 Accumulated depreciation (4,639) (4,825) Buildings and structures (net amount) 2,493 3,922 Machinery, equipment and vehicles 4,035 4,166 Accumulated depreciation (3,058) (3,150) Machinery, equipment and vehicles (net amount) 977 1,015 Assets for rent 4,844 1,304 Accumulated depreciation (4,279) (1,053) Assets for rent (net amount) 564 250 Land 32,333 31,235 Construction in progress 2,463 5,469 Other 10,126 10,681 Accumulated depreciation (6,319) (6,860) Other (net amount) 3,807 3,820 Total property, plant and equipment 42,638 45,713 Intangible assets Goodwill 117 49 Other 221 284 Total intangible assets 338 334 Investments and other assets Investment securities 35,452 29,040 Long-term loans receivable 149 145 Guarantees and deposits 1,625 1,625 Claims in bankruptcy, rehabilitation and other 1,925 1,783 Other 1,334 854 Allowance for doubtful accounts (2,219) (2,068) Total investments and other assets 38,269 31,380 Total non-current assets 81,246 77,429 Total assets 139,946 151,813
Liabilities Current liabilities (Ended (Ended Notes and accounts payable-trade 6,367 6,820 Short-term loans payable 5,658 --- Current portion of long-term loans payable --- 936 Current portion of bonds 1,000 2,060 Accounts payable-other 1,584 1,304 Accrued income taxes 312 752 Accrued consumption taxes 749 1,012 Provision for bonuses 178 189 Deferred tax liabilities 111 --- Other 1,646 1,323 Total current liabilities 17,609 14,397 Non-current liabilities Bonds payable 600 4,200 Long-term loans payable --- 1,155 Asset retirement obligations 181 183 Other 633 540 Total non-current liabilities 1,414 6,079 Total liabilities 19,024 20,477 Net assets Shareholders equity Capital stock 3,446 98 Capital surplus 7,503 10,852 Retained earnings 140,584 164,036 Treasury stock (2,763) (12,763) Total shareholders equity 148,771 162,223 Accumulated other comprehensive income Valuation difference on available-for-sale securities (33) (16) Foreign currency translation adjustment (27,883) (31,701) Total valuation and translation adjustments (27,916) (31,718) Subscription rights to shares 67 22 Minority interests --- 808 Total net assets 120,922 131,336 Total liabilities and net assets 139,946 151,813
(2) Consolidated Statement of Income and Consolidated Statement of Comprehensive Income (Consolidated Statement of Income) Net sales 45,019 74,858 Cost of sales 24,566 32,616 Gross profit 20,452 42,241 Selling, general and administrative expenses 15,188 15,892 Operating income (loss) 5,264 26,349 Non-operating income Interest income 10 14 Dividends income 9 26 Foreign exchange gains 1,505 63 Equity in earnings of affiliates 66 7,178 Other 82 66 Total non-operating income 1,673 7,349 Non-operating expenses Interest expenses 194 84 Bond issuance cost --- 120 Commission fee 90 90 Other 9 34 Total non-operating expenses 294 330 Ordinary income (loss) 6,643 33,368 Extraordinary income Gain on change in equity 1,120 771 Other 168 70 Total extraordinary income 1,288 842 Extraordinary loss Loss on retirement of non-current assets 34 90 Loss on adjustment for changes of accounting standard for asset retirement obligations 134 --- Loss resulting from changes in design plan 1,008 --- Litigation settlement 27 14 Other 100 8 Total extraordinary loss 1,305 114 Net income (loss) before taxes and tax adjustments 6,626 34,096 Income taxes-current 2,310 4,105 Refund of income taxes (207) (88) Income taxes-deferred 56 (1,290) Total income taxes 2,158 2,726 Net Income (loss) before minority interests 4,468 31,370 Minority interests loss in income --- (10) Net income (loss) 4,468 31,380
(Consolidated Statement of Comprehensive Income) Net Income (loss) before minority interests 4,468 31,370 Other comprehensive income Valuation difference on available-for-sale Securities (37) 41 Foreign currency translation adjustment (9,894) (3,827) Share of other comprehensive income of associates accounted for using equity method (30) (15) Total other comprehensive income (9,962) (3,801) Comprehensive income (5,494) 27,569 (Breakdown) Comprehensive income attributable to owners of the parent Comprehensive income attributable to minority interests (5,494) 27,579 --- (10)
(3) Consolidated Statement of Changes in Net Assets Shareholders equity Capital stock Beginning balance for the current period 3,446 3,446 Capital reduction --- (3,348) Total change during the current period --- (3,348) Ending balance for the current period 3,446 98 Capital surplus Beginning balance for the current period 7,503 7,503 Capital reduction --- 3,348 Total change during the current period --- 3,348 Ending balance for the current period 7,503 10,852 Retained earnings Beginning balance for the current period 136,116 140,584 Dividends from surplus --- (2,378) Dividends from surplus (interim dividend) --- (5,550) Net income (loss) 4,468 31,380 Total change during the current period 4,468 23,451 Ending balance for the current period 140,584 164,036 Treasury stock Beginning balance for the current period (1,933) (2,763) Acquisition of treasury stock (829) (10,000) Total change during the current period (829) (10,000) Ending balance for the current period (2,763) (12,763) Total shareholders equity Beginning balance for the current period 145,133 148,771 Dividends from surplus --- (2,378) Dividends from surplus (interim dividend) --- (5,550) Net income (loss) 4,468 31,380 Acquisition of treasury stock (829) (10,000) Capital reduction --- --- Total change during the current period 3,638 13,451 Ending balance for the current period 148,771 162,223
Accumulated other comprehensive income Valuation difference on available-for-sale securities Beginning balance for the current period 4 (33) (37) 17 Total change during the current period (37) 17 Ending balance for the current period (33) (16) Foreign currency translation adjustment Beginning balance for the current period (17,958) (27,883) (9,925) (3,818) Total change during the current period (9,925) (3,818) Ending balance for the current period (27,883) (31,701) Total valuation and translation adjustments Beginning balance for the current period (17,954) (27,916) (9,962) (3,801) Total change during the current period (9,962) (3,801) Ending balance for the current period (27,916) (31,718) Subscription rights to shares Beginning balance for the current period 135 67 (67) (44) Total change during the current period (67) (44) Ending balance for the current period 67 22 Minority interests Beginning balance for the current period --- --- --- 808 Total change during the current period --- 808 Ending balance for the current period --- 808 Total net assets Beginning balance for the current period 127,314 120,922 Issuance of new shares --- --- Dividends from surplus --- (2,378) Dividends from surplus (interim dividend) --- (5,550) Net income (loss) 4,468 31,380 Acquisition of treasury stock (829) (10,000) (10,030) (3,037) Total change during the current period (6,392) 10,413 Ending balance for the current period 120,922 131,336
(4) Consolidated Statement of Cash Flows Net cash from operating activities Net income (loss) before taxes and tax adjustments 6,626 34,096 Depreciation 2,048 1,852 Amortization of goodwill 146 67 Loss resulting from changes in design plan 1,008 --- Increase (decrease) in provision for bonuses (0) 10 Increase (decrease) in allowance for doubtful accounts 284 (217) Interest and dividends income (19) (40) Interest expenses 194 84 Foreign exchange losses (gains) (1,641) (112) Equity in (earnings) losses of affiliates (66) (7,178) Loss (gain) on change in equity (1,120) (771) Loss (gain) on sale of non-current assets (0) 3 Loss on retirement of non-current assets 34 90 Decrease (increase) in notes and accounts receivable-trade (1,676) 943 Decrease (increase) in inventories 4,933 827 Decrease (increase) in accounts receivable-other 124 (34) Decrease (increase) in other current assets (431) (490) Decrease (increase) in claims provable in bankruptcy, claims provable in rehabilitation and 259 141 other Increase (decrease) in notes and accounts payable-trade 3,408 452 Increase (decrease) in accounts payable-other (2,357) 561 Increase (decrease) in advances received 175 (195) Increase (decrease) in other current liabilities (297) (83) Increase (decrease) in other non-current liabilities (748) (93) Loss on adjustment for changes of accounting standard for asset retirement obligations 134 --- Other 226 256 Subtotal 11,244 30,171 Interest and dividends income received 17 60 Proceeds from dividends income from equity method affiliate 18,220 12,632 Interest expenses paid (1,276) (121) Income taxes paid (2,047) (3,742) Net cash from operating activities 26,159 38,999
Net cash from investment activities Purchase of property, plant and equipment (2,175) (6,160) Proceeds from sales of property, plant and equipment 24 18 Purchase of intangible assets (126) (156) Purchase of investment securities --- (1,001) Proceeds from redemption of investment securities --- 1,069 Collection of loans receivable 934 4 Payments of differences in guarantees and deposits Proceeds from collection of guarantees and deposits (439) (179) 1 10 Other 13 72 Net cash from investment activities (1,768) (6,321) Net cash from financing activities Net increase (decrease) in short-term loans payable 2,506 (5,439) Proceeds from long-term loans payable --- 2,300 Repayment of long-term loans payable --- (209) Proceeds from issuance of bonds --- 5,879 Expenditure on bond redemption (400) (1,340) Cash dividends paid --- (7,928) Purchase of treasury stock (829) (10,010) Proceeds from collection of payments from minority shareholders --- 995 Net increase of pledged deposit (1,369) 1,249 Other --- 22 Net cash from financing activities (92) (14,480) Effect of exchange rate change on cash and cash equivalents Net increase (decrease) in cash and cash equivalents Cash and cash equivalents at beginning of consolidated fiscal year Cash and cash equivalents at end of consolidated fiscal year (742) (1,222) 23,555 16,975 5,877 29,432 29,432 46,408