SAKATA INX CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
1.
Basis of Presenting Consolidated Financial Statements
The accompanying consolidated financial statements of SAKATA INX CORPORATION (the
“Company”) and its consolidated subsidiaries have been prepared in accordance with the provisions set forth
in the Japanese Financial Instruments and Exchange Law and its related accounting regulations and in
conformity with generally accepted accounting principles in Japan (“Japanese GAAP”), which are different
in certain respects as to application and disclosure requirements from International Financial Reporting
Standards (IFRS).
The accounts of the Company’s consolidated foreign subsidiaries are based on IFRS or generally
accepted accounting principles in the United States of America (U.S. GAAP). The accompanying
consolidated financial statements have been restructured and translated into English with some expanded
descriptions and the inclusion of consolidated statements of shareholders’ equity from the consolidated
financial statements of the Company prepared in accordance with Japanese GAAP and filed with the
appropriate Local Finance Bureau of the Ministry of Finance as required by the Financial Instruments and
Exchange Law. Some supplementary information included in the statutory Japanese language consolidated
financial statements, but not required for fair presentation, is not presented in the accompanying consolidated
financial statements.
2.
Significant Accounting Policies
Consolidation
The consolidated financial statements include the accounts of the Company and its twenty-seven
significant subsidiaries (twenty-three in 2011). The principal subsidiaries of the Company are THE
INX GROUP LIMITED, INX International Ink Co., SAKATA INX ESPANA, S.A., P.T. SAKATA
INX INDONESIA and SAKATA INX (INDIA) LIMITED. Due to their increased significance, INX
GRAVURE CO. LTD., MAOMING SAKATA INX CO., LTD. and other two subsidiaries are included in
the scope of consolidation beginning the year ended March 31, 2012. All significant intercompany
transactions and accounts have been eliminated. The fiscal year-end of the consolidated foreign subsidiaries,
excluding SAKATA INX (INDIA) LIMITED, is December 31 and different from the March 31 year-end of
the Company. Significant transactions between December 31 and March 31 are reflected in the consolidated
financial statements.
In the elimination of investments in subsidiaries, the assets and liabilities of the subsidiaries, including
the portion attributable to minority shareholders, are evaluated using the fair value at the time the Company
acquired control of the respective subsidiary. Differences between the cost of investments in consolidated
subsidiaries and the equity in the net assets at the date of acquisition are amortized within twenty years.
The equity method is applied to four affiliates (three in 2011). The principal affiliate of the Company
is SIIX Corporation. Due to its increased significance, ga city Corp. is included in the scope of application of
the equity method. Two unconsolidated subsidiaries (six in 2011), including CDI SAKATA INX CORP., are
not accounted for by the equity method because the impact on the Company’s share of their sales, net
income or losses, total assets and retained earnings as of and for the year ended March 31, 2012 was
immaterial.
Two affiliates (three in 2011), including ETERNAL SAKATA INX CO., LTD., are not accounted for
by the equity method because the impact on the Company’s share of net income or losses and retained
earnings as of and for the year ended March 31, 2012 was immaterial.
Securities
The Companies classify securities as (a) securities held for trading purposes (“trading securities”), (b)
debt securities intended to be held to maturity (“held-to-maturity debt securities”), (c) equity securities
issued by subsidiaries and affiliated companies and (d) all other securities that are not classified in any of the
above categories (“available-for-sale securities”).
The Companies do not hold trading securities or held-to-maturity debt securities. Equity securities
9
issued by subsidiaries and affiliated companies that are not consolidated or accounted for by the equity
method are stated at moving average cost. Available-for-sale securities with available fair values are stated at
fair value. Unrealized gains and unrealized losses on these securities are reported, net of applicable income
taxes, as a separate component of shareholders’ equity. Realized gains and losses on sales of such securities
are computed using moving average cost. Other securities with no available fair value are stated at moving
average cost.
Inventories
Inventories of the Company and its consolidated domestic subsidiaries are stated at cost based on the
moving average method, in which the amount of inventories shown on the balance sheet are written down
based on any decrease in profitability.
Inventories of the consolidated foreign subsidiaries are stated principally at the lower of cost or
market, cost being determined by the first-in, first-out method.
Property, plant and equipment
Property, plant and equipment are carried at cost. The Company and its consolidated domestic
subsidiaries provide depreciation principally by the declining balance method over the estimated useful life
of the asset. However, depreciation for buildings, excluding building fixtures, of the Company and its
consolidated domestic subsidiaries acquired after March 31, 1998 is provided by the straight-line method.
Certain consolidated foreign subsidiaries compute depreciation by the straight-line method over the
estimated useful life of the asset.
The range of useful lives is summarized as follows:
Buildings and structures
Machinery, equipment and vehicles
Other
3 to 60 years
2 to 20 years
2 to 20 years
Intangible assets
Intangible assets consist of in-house software, goodwill and others. The straight-line method is used to
amortize intangible assets. The amortization of in-house software is computed using the straight-line method
based on the estimated useful life of five years. Goodwill is amortized using the straight-line method over
periods not exceeding twenty years.
Finance leases
Lease assets under finance lease transactions that do not transfer title of the lease assets are capitalized
and depreciated on a straight-line basis, with the lease period used as the useful life and no residual value.
Finance lease transactions that did not transfer title of the lease assets and that commenced prior to
April 1, 2009 are accounted for as operating leases.
Allowance for doubtful accounts
The Company and its consolidated subsidiaries (the “Companies”) have adopted the policy of
providing an allowance for doubtful accounts in an amount sufficient to cover possible losses on collection
mainly by estimating the uncollectible amounts of certain receivables and applying a percentage based on
collection experience to the remaining receivables.
Bonuses
The Company and certain consolidated subsidiaries provide for employees’ bonuses at the balance
sheet date based on the estimated amounts of projected bonus payments.
Retirement benefits
The Company and certain domestic consolidated subsidiaries provide funded non-contributory pension
plans, which include defined benefit pension plans and unfunded lump-sum payment plans, under which all
eligible employees are entitled to benefits based on the level of wages and salaries at the time of retirement
10
or termination, length of service and certain other factors. Certain foreign consolidated subsidiaries provide
defined contribution plans besides defined benefit pension plans.
The liabilities and expenses for retirement benefits are determined based on the amounts actuarially
calculated using certain assumptions. The Company and certain consolidated subsidiaries provide for
employees’ retirement benefits at the balance sheet date based on the estimated amounts of projected benefit
obligation and the fair value of plan assets at that date.
Prior service costs are recognized mainly as current costs, and actuarial gains and losses are
recognized in expenses using the straight-line method over mainly 15 years, a period which reflects the
average of the estimated remaining service years of employees, commencing with the current period.
Translation of foreign currencies
Receivables and payables denominated in foreign currencies are translated into Japanese yen at
year-end rates. All revenues and expenses in foreign currencies are translated at the exchange rates
prevailing when such transactions are made. The resulting gains and losses are recognized in the statements
of income.
The balance sheet accounts of the consolidated foreign subsidiaries are translated into Japanese yen at
year-end rates, except for equity, which is translated at historical rates. Differences arising from the
translations are presented as “Foreign currency translation adjustment” and “Minority interests” in net assets.
Income statement accounts of the consolidated foreign subsidiaries are translated at the average annual rates.
Derivatives and hedge accounting
The Companies state derivative financial instruments at fair value and recognize changes in the fair
value as gain or loss unless the derivative financial instrument is used for hedging purposes. If derivative
financial instruments are used as hedges and meet certain hedging criteria, the Companies defer recognition
of gain or loss resulting from a change in fair value of the derivative financial instrument until the
corresponding loss or gain on the hedged item is recognized. However, if forward foreign exchange
contracts are used as hedges and meet certain hedging criteria, forward foreign exchange contracts and
hedged items are accounted for in the following manner:
1. If a forward foreign exchange contract is executed to hedge an existing foreign currency receivable
or payable,
(a) the difference, if any, between the Japanese yen amount of the hedged foreign currency receivable
or payable translated using the spot rate at the inception date of the contract and the book value of
the receivable or payable is recognized in the statement of income in the period which includes the
inception date, and
(b) the discount or premium on the contract (the difference between the Japanese yen amount of the
contract translated using the contracted forward rate and that translated using the spot rate at the
inception date of the contract) is recognized over the term of the contract.
2. If a forward foreign exchange contract is executed to hedge a future transaction denominated in a
foreign currency, the future transaction will be recorded using the contracted forward rate, and no
gain or loss on the forward foreign exchange contract will be recognized.
Also, if interest rate swap contracts are used as hedges and meet certain hedging criteria, the net
amount to be paid or received under the interest rate swap contract is added to or deducted from the interest
on the hedged assets or liabilities.
Cash and cash equivalents
Cash on hand, readily available deposits and short-term highly liquid investments with maturities not
exceeding three months at the time of purchase are considered to be cash and cash equivalents.
Research and development expenses
Research and development expenses are charged to income as incurred. Research and development
expenses for the years ended March 31, 2012 and 2011 were ¥2,004 million and ¥2,032 million,
respectively.
11
Income taxes
The asset-liability approach is used to recognize deferred tax assets and liabilities for the expected
future tax consequences of temporary differences between the carrying amounts of assets and liabilities for
financial reporting purposes and the amounts used for income tax purposes and operating loss and tax credit
carryforwards.
Consumption taxes
Consumption taxes are excluded from the revenue and expense accounts.
Amounts per share
(a) Net income per share of common stock
The Companies have adopted ASBJ Statement No. 2, “Accounting Standard for Earnings Per Share”
and Financial Accounting Standards Implementation Guidance No. 4, “Implementation Guidance for
Accounting Standard for Earnings Per Share.”
(b) Cash dividends per share
Cash dividends per share presented in the statements of income represent the cash dividends declared
applicable to the year, including dividends declared and paid after the end of the year.
Net assets
Under the Japanese Corporation Law (the “Law”) and regulations, the entire amount paid for new
shares is required to be designated as common stock. However, a company may, by a resolution of the Board
of Directors, designate an amount not exceeding one half of the price of the new shares as additional paid-in
capital, which is included in capital surplus.
The Law requires that an amount equal to 10% of dividends must be appropriated as additional paid-in
capital or legal earnings reserve until the total aggregate amount of legal reserve and additional paid-in
capital equals 25% of the common stock.
Additional paid-in capital and legal earnings reserve may not be distributed as dividends. However, all
additional paid-in capital and all legal earnings reserve may be transferred to other capital surplus and
retained earnings, respectively, which are potentially available for dividends. The maximum amount that the
Company can distribute as dividends is calculated based on the nonconsolidated financial statements of the
Company in accordance with the Law.
3.
Additional Information
Change in Accounting Policies - Accounting Standards for Accounting Changes and Error Corrections
The Company and its consolidated domestic subsidiaries adopted “Accounting Standard for
Accounting Changes and Error Corrections” (Accounting Standards Board of Japan (“ASBJ”) Statement No.
24, issued on December 4, 2009) and “Guidance on Accounting Standard for Accounting Changes and Error
Corrections” (ASBJ Guidance No. 24, issued on December 4, 2009).
4.
Deferred Capital Gains on Tangible Fixed Assets
Under certain conditions, such as exchanges of fixed assets of similar kinds, gains from insurance
claims, and sales and purchases resulting from expropriation, Japanese tax laws permit companies to defer
gains arising from such transactions by reducing the cost of the assets acquired. Following this provision,
deferred capital gains from insurance claims were deducted from the cost of properties acquired in
replacement, which amounted to ¥41 million and ¥41 million as of March 31, 2012 and 2011, respectively.
12
5.
Securities Lent under Loan Agreements
Investment securities include securities lent of ¥246 million and ¥242 million as of March 31, 2012
and 2011, respectively.
6.
Effect of Bank Holiday on March 31, 2012
As financial institutions in Japan were closed on March 31, 2012, amounts that would normally be
settled on March 31, 2012 were collected or paid on the following business day, April 2, 2012. As a result,
notes and accounts receivable increased by approximately ¥1,103 million, notes and accounts payable
increased by approximately ¥224 million as of March 31, 2012.
7.
Financial Instruments
1. Qualitative Information on Financial Instruments
(1) Policies for Using Financial Instruments
The Companies have policies to limit fund management to the use of short-term deposits and
financing to bank loans. Derivative transactions are used to avoid the risk of fluctuation in interest rate risk
of bank loans with variable interest rates. The Companies do not use derivative transactions for speculation.
(2) Contents, Risk and Risk Management Structure for Financial Instruments
Operating receivables such as “Notes and accounts receivable - trade” are exposed to customer credit
risk. Due dates and the balances of operating receivables by customer are monitored by reviewing overdue
receivable reports to manage such risk. In addition, credit research is performed regularly on customers
whose accounts need attention.
Securities such of available-for-sale securities are exposed to market fluctuations risk, but they are
mainly the securities parties with whom the Companies have business relationships. The Companies monitor
the fair value of the securities and the financial condition of the investees regularly to evaluate investment
policy, taking the business relationships with the investees into consideration.
Operating payables such as “Notes and accounts payable: Trade” are mostly due within one year.
Short-term loans payable and lease obligations on finance leases are used as financing mainly for
operating transactions, and long-term loans payable and lease obligations on finance leases are used as
financing mainly for capital expenditure.
Loans payable at variable interest rates are exposed to the risk of interest rate fluctuation. However,
for some long-term loans payable, derivative transactions (interest rate swap contracts) are used as hedging
instruments to avoid the interest rate risk and stabilize interest expense. Hedge effectiveness testing is not
conducted as the interest rate swap contracts meet certain hedging criteria.
The execution and management of derivative transactions are performed under derivative transaction
management rules based on the Company’s regulations, and the counterparties of derivative financial
instruments are limited to high credit rating financial institutions to mitigate credit risk.
Operating payables and bank loans are exposed to liquidity risk, but the Companies manage the risk
by preparing and reviewing respective monthly cash management plans.
(3) Supplementary explanation for the fair value of financial instruments
The contract amounts for the derivative transactions under Note 13, “Derivative transactions,” do not
reflect the market risk for the derivative transactions themselves.
2. Fair values of financial instruments
Consolidated balance sheet amounts and fair values of financial instruments and any difference as of
March 31, 2012 and 2011 are set forth in the tables below.
Note that the following tables do not include fair values for financial instruments for which the fair
value was extremely difficult to measure.
13
Millions of yen
Year ended March 31, 2012
Consolidated
balance sheet
amount
(1) Cash and deposits························· ¥
5,194
(2) Notes and accounts
receivable - trade ························
36,547
(3) Short-term investments ··················
5
(4) Investments:
Equity securities ························
4,846
Available-for-sale securities ··········
7,984
Total assets ····································· ¥
54,576
(1) Notes and accounts payable: Trade ···· ¥
22,295
(2) Short-term loans payable ················
6,488
(3) Long-term loans payable ················
12,982
(4) Notes and accounts payable: Other
Other noncurrent liabilities
Lease obligations ·······················
778
Total liabilities ································ ¥
42,543
Derivative transactions(*) ···················
(17)
(*) Derivative assets and (liabilities) are on a net basis.
Fair value
¥
5,194
Difference
¥
-
36,547
5
-
¥
¥
7,512
7,984
57,242
22,295
6,488
13,028
¥
¥
2,666
2,666
46
¥
783
42,594
(17)
¥
5
51
-
Millions of yen
Year ended March 31, 2011
Consolidated
balance sheet
amount
(1) Cash and deposits························· ¥
3,753
(2) Notes and accounts
receivable - trade ························
33,247
(3) Short-term investments ··················
5
(4) Investments:
Equity securities ························
4,759
Available-for-sale securities ··········
9,073
Total assets ····································· ¥
50,837
(1) Notes and accounts payable: Trade ···· ¥
19,213
(2) Short-term loans payable ················
6,897
(3) Long-term loans payable ················
13,654
(4) Notes and accounts payable: Other
Other noncurrent liabilities
Lease obligations ·······················
689
Total liabilities ································ ¥
40,453
Derivative transactions ·······················
-
Fair value
¥
3,753
Difference
¥
-
33,247
5
-
¥
¥
6,792
9,073
52,870
19,213
6,897
13,757
¥
¥
2,033
2,033
103
¥
693
40,560
-
¥
4
107
-
Note 1: Determination of fair value of financial instruments, securities and derivative transactions
Assets
(1) Cash and deposits, (2) Notes and accounts receivable - trade and (3) Short-term investments
The fair value approximates the carrying amount because of the short maturity of these instruments.
(4) Investments
The fair value of securities is stated at quoted market price.
The securities are classified as securities in affiliates or available-for-sale securities. Proceeds from the
sale of available-for-sale securities and the related gains amounted to 63 million and 46 million yen,
respectively, in the year ended March 31, 2012.
14
Consolidated balance sheet amount, acquisition cost and any difference as of March 31, 2012 and
2011 were as follows:
Millions of yen
Year ended March 31, 2012
Consolidated
Acquisition
balance sheet
Difference
cost (*)
amount
Securities with consolidated balance
sheet amount exceeding
acquisition cost ··································· ¥
11,740
¥
5,803
¥
5,937
Securities with consolidated balance
sheet amount not exceeding
acquisition cost ···································
1,090
1,376
(286)
Total ················································· ¥
12,830
¥
7,179
¥
5,651
(*) Acquisition cost is the consolidated balance sheet amount after write-down.
Millions of yen
Year ended March 31, 2011
Consolidated
balance sheet
amount
Securities with consolidated balance
sheet amount exceeding
acquisition cost····································· ¥
Securities with consolidated balance
sheet amount not exceeding
acquisition cost·····································
Total ·················································· ¥
12,562
1,270
13,832
Acquisition
cost (*)
¥
5,569
¥
1,452
7,021
Difference
¥
6,993
¥
(182)
6,811
(*) Acquisition cost is the consolidated balance sheet amount after write-down.
The amount of write-down accounted for the year ended March 31, 2011 was ¥349 million.
Liabilities
(1) Notes and accounts payable: Trade and (2) Short-term loans payable
The fair value approximates the carrying amount because of the short maturity of these instruments.
(3) Long-term loans payable
The fair value of long-term loans payable is estimated by the present value of the total amount of
principal and interest discounted at the interest rate that would apply to similar new borrowing. For variable
interest, long-term loans payable which are hedged by interest rate swap contracts and meet certain hedging
criteria (See Note 13, “Derivative Transactions”), the principal and interest booked with an interest rate swap
as a unit will be assessed by discounting at the reasonably estimated interest rate of similar borrowing.
(4) Lease obligations
The fair value of lease obligations is estimated by the present value of the principal and interest
discounted at the assumed interest rate of similar lease transactions.
Derivative transactions
Refer to the Note 13, “Derivative Transactions.”
Note 2: Financial instruments for which the fair value is extremely difficult to measure
Available-for-sale securities (non-listed equity securities) in the consolidated balance sheet
amount of ¥1,392 million as of March 31, 2012 and ¥1,269 million as of March 31, 2011 were not
included in “Assets (4) Investments” because they had no quoted market price, future cash flows
were not estimable and the fair values were unavailable.
15
The amount of write-down accounted for the year ended March 31, 2012 for available-for-sale
securities (non-listed equity securities) was ¥2 million.
Note 3: Aggregate annual maturities of money claims and securities with maturities as of March 31, 2012
and 2011 were as follows:
Millions of yen
Year ended March 31, 2012
2013
Cash and deposits ················· ¥
Notes and accounts
receivable - trade ················
Short-term investments ··········
Investments:
Available-for-sale securities
with maturities ·················
Total ································ ¥
2014-2018
5,194
¥
2024 and
thereafter
2019-2023
-
¥
-
¥
-
36,508
5
39
-
-
-
41,707
39
-
-
¥
¥
¥
Millions of yen
Year ended March 31, 2011
2012
Cash and deposits·················· ¥
Notes and accounts
receivable - trade ·················
Short-term investments ···········
Investments:
Available-for-sale securities
with maturities ··················
Total ································· ¥
2013-2017
3,753
¥
33,106
5
141
-
36,864
141
¥
2023 and
thereafter
2018-2022
¥
-
¥
¥
-
-
-
-
-
¥
Note 4: Aggregate annual maturities of long-term loans payable and lease obligations as of March 31, 2012
and 2011 were as follows:
Millions of yen
Year ended March 31, 2012
2013
Long-term
loans payable ················ ¥
Lease obligations ·············
Total ···························· ¥
6,683
232
6,915
2014
¥
¥
2015
4,422
204
4,626
¥
¥
774
137
911
¥
¥
337
86
423
2017
¥
¥
189
45
234
2018 and
thereafter
¥
¥
577
74
651
Millions of yen
Year ended March 31, 2011
2012
Long-term
loans payable ················ ¥
Lease obligations ·············
Total ···························· ¥
2016
1,620
192
1,812
2013
¥
¥
2014
6,396
166
6,562
¥
¥
16
4,353
143
4,496
2015
¥
¥
314
83
397
2016
¥
¥
270
43
313
2017 and
thereafter
¥
¥
701
62
763
8.
Securities
The following tables summarize the consolidated balance sheet amount, acquisition cost and fair value
of available-for sale securities as of March 31, 2012 and March 31, 2011. Available-for-sale securities
(non-listed equity securities) in the consolidated balance sheet amount of ¥173 million as of March 31, 2012
and ¥175 million as of March 31, 2011 were not included in “Equity securities” because they had no quoted
market price, the future cash flows were not estimable and the fair values were unavailable.
For the year ended March 31, 2012, proceeds from the sale of available-for-sale securities amounted to
¥63 million, and the related gains amounted to ¥46 million. There were no such transactions for the year
ended March 31, 2011.
The amount of available-for-sale securities impaired for the year ended March 31, 2012 and March 31,
2011 were ¥2 million and ¥349 million, respectively.
Regarding impairment loss, where the fair value at the fiscal year end is lower than acquisition cost by
50% or more, the whole amount of such difference is recorded as an impairment loss, in principle.
While in case where the fair value at the fiscal year end is lower than acquisition cost by between 30%
and 50%, an amount deemed to be necessary is recorded as an impairment loss in determining recoverability
by considering the quoted market price transaction during a certain period in the past, business performance
and other factors.
Millions of yen
Year ended March 31, 2012
Consolidated
balance sheet
amount
Securities with consolidated balance
sheet amount exceeding
acquisition cost ·························· ¥
Securities with consolidated balance
sheet amount not exceeding
acquisition cost ··························
Total ········································ ¥
6,894
1,090
7,984
Acquisition
cost
¥
5,340
¥
1,376
6,716
¥
1,554
¥
(286)
1,268
Millions of yen
Year ended March 31, 2011
Consolidated
balance sheet
amount
Securities with consolidated balance
sheet amount exceeding
acquisition cost ·························· ¥
Securities with consolidated balance
sheet amount not exceeding
acquisition cost ··························
Total ········································ ¥
Difference
Acquisition
cost
Difference
7,803
¥
5,105
¥
2,698
1,270
9,073
¥
1,452
6,557
¥
(182)
2,516
17
9.
Inventories
Inventories at March 31, 2012 and 2011 consisted of the following:
Millions of yen
2012
Finished goods·································································
Merchandise ···································································
Work-in-process ·······························································
Raw materials and supplies ··················································
¥
¥
10.
2011
5,200
639
761
4,329
10,929
¥
5,100
742
720
4,040
10,602
¥
Short-term Loans Payable and Long-term Loans Payable
Short-term loans payable at March 31, 2012 and 2011 consisted of short-term notes generally for one
year bearing interest ranging from 0.48% to 13.25%.
Long-term loans payable at March 31, 2012 and 2011 consisted of the following:
Millions of yen
2012
Secured:
Loans principally from banks at
0.45% - 13.50% maturing through 2023 ····························
Unsecured:
Loans principally from banks at
0.00% - 11.20% maturing through 2024 ····························
¥
1,615
¥
11,367
12,982
6,683
6,299
Less amounts due within one year ···········································
2011
¥
2,081
¥
11,573
13,654
1,620
12,034
The aggregate annual maturities of long-term loans payable at March 31, 2012 were as follows:
Millions
of yen
Year ending March 31,
2013 ································································································· ¥
2014 ·································································································
2015 ·································································································
2016 ·································································································
2017 and thereafter················································································
¥
6,683
4,422
774
337
766
12,982
The Company has specific commitment lines with two banks to finance working capital as follows:
Specific commitment lines ·········································¥ 3,000 million
Unused portion as of March 31, 2012 ····························¥ 3,000 million
18
11.
Assets Pledged as Collateral
Assets pledged as collateral as of March 31, 2012 and 2011 were as follows:
Millions of yen
2012
Notes and accounts receivable - trade ······································
Property, plant and equipment, net
of accumulated depreciation ···············································
Investments in other ··························································
2011
¥
201
¥
2,971
39
3,211
¥
107
¥
3,203
41
3,351
Liabilities secured by the above assets were as follows:
Millions of yen
2012
Short-term loans payable ·····················································
Current portion of long-term loans payable ·······························
Notes and accounts payable ·················································
Long-term loans payable ·····················································
Other noncurrent liabilities ··················································
¥
¥
12.
2011
201
258
448
1,707
2
2,616
¥
¥
107
109
410
1,972
4
2,602
Finance Leases
1. Non-capitalized finance leases of the Companies at March 31, 2012 and 2011 were as follows:
(As lessee)
(1) Acquisition cost, accumulated depreciation and book value of leased properties, including interest:
Millions of yen
2012
Machinery, equipment and vehicles:
Acquisition cost ································································
Accumulated depreciation ····················································
Book value ······································································
¥
¥
2011
1,342
925
417
¥
¥
1,542
935
607
Millions of yen
2012
Other property, plant and equipment:
Acquisition cost ································································
Accumulated depreciation ····················································
Book value ······································································
2011
¥
316
280
36
¥
¥
520
401
119
¥
(2) Future minimum lease payments, including interest:
Millions of yen
2012
Due within one year ·························································
Due over one year ····························································
Total ··········································································
¥
¥
186
267
453
2011
¥
¥
267
459
726
(3) Lease payments and equivalent depreciation amount
Lease payments under the above leases for the years ended March 31, 2012 and 2011 were ¥265
million and ¥350 million, respectively.
19
(4) Depreciation method of lease equivalents
Accumulated depreciation of lease assets under non-capitalized finance lease transactions are
computed using the straight-line method, with the lease period used as the useful life and no residual
value.
2. Capitalized finance leases of the Companies at March 31, 2012 and 2011 were as follows:
(As lessee)
Finance leases for which the ownership of the leased assets is not considered to be transferred to the
lessee as of and for the years ended March 31, 2012 and March 31, 2011 were as follows:
(1) Description of leased assets
Tangible fixed assets:
Mainly the production facilities in the Printing ink business (Machinery and Equipment) and
computers (Tools, Furniture and Fixtures) for common purpose or each business etc..
(2) Depreciation method for leased assets
As described in Note 2, “Significant Accounting Policies - Finance leases.”
13.
Derivative Transactions
1. Derivative transactions to which hedge accounting has not been applied
Year ended March 31, 2012
(Millions of yen)
Section
Hedging
instruments
Transaction
excepting market
transaction
Interest rate swap contracts
Fixed payments,
Variable receivables
Contract amount
Over
1 year
¥
387
¥
329
Fair value
(*)
Gain (loss) on
evaluation
¥
¥
(17)
(17)
(*)The fair values of derivative transactions are determined at the quoted price obtained from the relevant
financial institutions.
Year ended March 31, 2011
Not applicable
2. Derivative transactions to which hedge accounting has been applied
Year ended March 31, 2012
(Millions of yen)
Hedge
accounting
Hedging
instruments
Certain hedging
criteria for interest
rate swap contracts
Interest rate swap contracts
Fixed payments,
Variable receivables
Contract amount
Over
1 year
Hedged
items
Long-term
loans payable
¥
5,000 ¥
2,000
Fair
value
Evaluation
of
fair value
(*)
-
(*) The fair value is booked with the hedged items such as long-term loans payable as a unit because the
transaction meets certain hedging criteria for interest rate swap contracts. The fair value is included in the
fair value of long-term loans payable in Note 7, “Financial Instruments.”
20
Year ended March 31, 2011
(Millions of yen)
Hedge
accounting
Hedging
instruments
Certain hedging
criteria for interest
rate swap contracts
Interest rate swap contracts
Fixed payments,
Variable receivables
Contract amount
Over
1 year
Hedged
items
Long-term
loans payable
¥
5,200 ¥
5,000
Fair
value
Evaluation
of
fair value
(*)
-
(*) The fair value is booked with the hedged items such as long-term loans payable as a unit because the
transaction meets certain hedging criteria for interest rate swap contracts. The fair value is included in the
fair value of long-term loans payable in Note 7, “Financial Instruments.”
14.
Provision for Retirement Benefits
The Company and certain domestic consolidated subsidiaries provide funded non-contributory pension
plans, which include defined benefit pension plans and unfunded lump-sum payment plans. Certain foreign
consolidated subsidiaries provide defined contribution plans besides defined benefit pension plans.
The liability for retirement benefits included in the liability section of the consolidated balance sheets
as of March 31, 2012 and 2011 consisted of the following:
2012
Projected benefit obligation ··········································· ¥
Less unrecognized actuarial differences ·····························
Less unrecognized prior service cost ································
Less fair value of pension assets······································
Prepaid pension expenses ·············································
Liability for retirement benefits ······························· ¥
Millions of yen
2011
9,498
(1,761)
0
(5,591)
581
2,727
¥
¥
9,473
(2,000)
0
(5,539)
645
2,579
Retirement benefit expenses included in the consolidated statements of income for the years ended
March 31, 2012 and 2011 consisted of the following:
2012
Service costs – benefits earned during the year ····················· ¥
Interest cost on projected benefit obligation ························
Expected return on plan assets ········································
Reversal of prior service costs ········································
Amortization of actuarial differences ································
Retirement benefit expenses ··································· ¥
Millions of yen
2011
326
188
(162)
0
281
633
¥
¥
328
192
(162)
0
272
630
The discount rate and the rate of expected return on plan assets were mainly 2.0% and 3.0%,
respectively. The estimated amount of all retirement benefits to be paid at future retirement dates is
allocated equally to each service year using the estimated total number of service years. Prior service costs
are recognized mainly as current costs, and actuarial gains and losses are recognized in the consolidated
statements of income using the straight-line method over mainly 15 years, which is within the average of the
estimated remaining service years of employees, commencing with the current period.
21
15. Deferred Income Taxes
Significant components of the Companies’ deferred tax assets and liabilities as of March 31, 2012 and
2011 were as follows:
Millions of yen
2012
2011
Deferred tax assets:
Allowance for doubtful accounts ···································
¥
313
¥
366
Provision for bonuses ················································
381
400
Provision for retirement benefits ···································
789
805
Write-down of inventories ···········································
151
166
Intangible assets ·······················································
378
491
Loss on valuation of investments in capital
of subsidiaries and affiliates ·······································
310
Tax loss carryovers ··················································
599
498
Other ····································································
689
852
Subtotal ·····································································
3,300
3,888
Valuation allowance ··················································
(850)
(1,318)
Total deferred tax assets ··················································
2,450
2,570
Deferred tax liabilities:
Valuation difference on available-for-sales securities ···········
(446)
(1,021)
Special reserves ·······················································
(414)
(476)
Other ····································································
(1,122)
(1,139)
Total deferred tax liabilities ··············································
(1,982)
(2,636)
Net deferred tax assets (liabilities) ······································ ¥
468
¥
(66)
The reconciliation between the effective tax rate reflected in the consolidated financial statements and
the statutory tax rate for the years ended March 31, 2012 and 2011 were summarized as follows:
2012
2011
Statutory tax rate of the Company·······································
-%
40.5%
(Reconciliation)
Expenses not qualifying for deduction ·····························
2.3
Revenues not in gross revenue ······································
(2.7)
Corporate inhabitants tax ············································
0.7
Tax credits ·····························································
(2.7)
Equity in earnings of affiliates ······································
(5.8)
Elimination of dividend income ····································
2.4
Valuation allowance ··················································
1.5
Other ····································································
(1.2)
Effective tax rate after adoption of tax-effect accounting············
-%
35.0%
The note of each rate is omitted the because difference between the statutory tax rate and the effective
tax rate after adoption of tax-effect accounting was less than 5% of the former rate for the year ended March
31, 2012.
(Additional Information)
Adjustment of deferred tax assets and liabilities for enacted changes in tax laws and rates
On December 2, 2011, “Act for Partial Revision of the Income Tax Act, etc. for the Purpose of
Creating Taxation System Responding to Changes in Economic and Social Structures” (Act No. 114 of
2011) and “Act on Special Measures for Securing Financial Resources Necessary to Implement Measures for
Reconciliation Following the Great East Japan Earthquake” (Act No. 117 of 2011) were enacted into law. As
a result of these amendments, the statutory income tax rate for the Company will be reduced to 38.0% for
years beginning on or after April 1, 2012 and 35.6% for years beginning on or after April 1, 2015. Based on
the amendments, the statutory income tax rates utilized for the measurement of deferred tax assets and
liabilities expected to be settled or realized from April 1, 2012 to March 31, 2015 and on or after April 1,
2015 are 38.0% and 35.6%, respectively, as of March 31, 2012. Due to these changes in statutory income tax
22
rates, net deferred tax assets decreased by ¥44 million as of March 31, 2012, and deferred income tax
expense recognized for the year ended March 31, 2012 increased by ¥105 million and valuation difference
on available-for-sale securities increased by ¥60 million.
16.
Contingent Liabilities
(Contingent liabilities)
At March 31, 2012 and 2011, the Companies were contingently liable as follows:
¥
Millions of yen
2012
2011
762
¥
1,028
The Company provides letters of awareness to banks for bank loans of unconsolidated subsidiaries and
affiliated companies, and the Company also provides guarantees of indebtedness for leases of unconsolidated
subsidiaries and affiliated companies.
The guarantee obligations include the amount guaranteed by the other parties, and that amount is
excluded from the amount stated above.
(Amount guaranteed by the other parties)
¥
Millions of yen
2012
2011
37
¥
-
17.
Selling, General and Administrative Expenses
The main items of selling, general and administrative expenses for the years ended March 31, 2012
and March 31, 2011 were as follows:
Millions of yen
2012
2011
Freightage and packing expenses ······································ ¥
3,748
¥
3,654
Salaries and allowances··················································
6,792
7,323
Depreciation ·······························································
733
762
Provision of allowance for doubtful accounts ························
77
243
Provision for bonuses ····················································
580
582
Retirement benefit expenses ············································
392
424
Research and development expenses ··································
2,004
2,032
18.
Consolidated Statements of Comprehensive Income
Reclassification adjustment and tax benefit concerning other comprehensive income for the year
ended March 31, 2012 were as follow:
Millions of yen
Valuation difference on available-for-sale securities
Unrealized holding gains arising during the period········································· ¥
Reclassification adjustment included in net income ········································
Pre-tax amount ·················································································
Tax benefit ······················································································
Valuation difference on available-for-sale securities ·····································
Foreign currency translation adjustment
Amount arising during the period ···························································
Share of other comprehensive income of affiliates accounted for using equity method
Amount arising during the period ···························································
Total other comprehensive income ··························································· ¥
23
(1,201)
(46)
(1,247)
576
(671)
(871)
(437)
(1,979)
19.
Segment Information
1. Overview of reportable segments
The Companies’ reportable segments are components of the Companies whose separate financial
information is obtainable and which the Board of Directors and Management Committee regularly consider
in order to determine the allocation of business resources and to evaluate business performance. The
Companies are mainly engaged in the manufacture and sale of printing inks. Multiple divisions of the
Company are engaged in domestic market and foreign subsidiaries are engaged in their own respective
oversea markets such as markets of Asia, North America and Europe.
Foreign subsidiaries that have independent management units establish their own comprehensive
strategy and develop business activities in respective regions and surrounding areas. Besides the sale of
printing inks, the Company purchases and sells graphic arts materials the in domestic market. In addition, the
Company purchases and sells printing equipment as well as printing inks in the domestic market.
The functional materials business such as inkjet ink, toner, pigment dispersion and others developed
through the basic technology of printing inks like pigment dispersion, make up various independent
operational segments. The Companies focus on expanding the revenue base of the functional materials
business led by the Company.
Therefore, the Companies’ printing inks business, our core business, comprises the geographic
segments based on the production and sales structure. The Companies’ printing inks business consists of the
four reportable segments of “Printing inks and graphic arts materials (Japan),” “Printing inks (Asia),”
“Printing inks (North America)” and “Printing inks (Europe).” Furthermore, the “Functional materials”
business, in which the Companies promote business expansion, constitutes another reportable segment for a
total of five reportable segments.
Reportable segment
Printing inks and graphic arts
materials (Japan)
Printing inks (Asia)
Printing inks (North America)
Printing inks (Europe)
Functional materials
Main products and merchandise
News paper printing ink, Commercial printing ink, Packaging ink,
Flexible packaging gravure ink, Print and plate making equipment and
materials, Packaging equipment and supplies
News paper printing ink, Commercial printing ink,
Metal decorating ink, Packaging ink, Flexible packing gravure ink
Commercial ink, Metal decorating ink, Packaging ink,
Flexible packaging gravure ink
Commercial ink, Metal decorating ink, Packaging ink,
Flexible packaging gravure ink
Inkjet ink, Toner, Pigment dispersion for color filter,
Functional coating
2. Basis of measurement for reported segment sales, profit or loss, assets and other items
The accounting policies of the reportable segments are essentially the same as those described in Note
2, “Significant Accounting Policies.”
Segment profit or loss is stated on an operating income basis. Intersegment income and transfers are
based on the prevailing markets prices.
24
3. Information about reported segment sales, segment profit or loss, segment assets and other items
Year ended
March 31, 2012
Millions of yen
Reportable Segment
Printing inks
and
graphic arts
materials
(Japan)
Net sales to outside
customers
¥59,282
Intersegment
and transfers
Printing
inks
(Asia)
¥15,498
Printing
inks
(North
America)
Printing
inks
(Europe)
¥24,937
¥5,541
Functional
materials
¥6,112
Total
¥111,370
Other
businesses
(*1)
¥8,201
Total
¥119,571
Adjustments
(*2)
Consolidated
(*3)
¥-
¥119,571
35
152
1,587
199
69
2,042
4,317
6,359
(6,359)
-
Total
59,317
15,650
26,524
5,740
6,181
113,412
12,518
125,930
(6,359)
119,571
Segment profit
¥3,041
¥570
¥(294)
¥106
¥176
¥3,599
¥477
¥4,076
¥185
¥4,261
Segment assets
36,164
11,720
11,044
4,133
5,387
68,448
5,692
74,140
16,855
90,995
864
278
681
159
489
2,471
23
2,494
-
2,494
-
27
-
-
168
195
-
195
-
195
441
773
348
65
1,107
2,734
10
2,744
-
2,744
Depreciation
Amortization of goodwill
Increase in property,
plant and equipment
and intangible assets
(*1) The “Other businesses” category includes the chemical products business, color film developing and printing services and equipment for color
matching systems not shown in reportable segments.
(*2) Adjustments are as follows:
1. The adjustment of ¥185 million for segment profit includes eliminations for intersegment transactions of ¥374 million and corporate expenses
of ¥(189) million that have not been allocated to any segment. Corporate expenses are mainly service fees to unconsolidated subsidiaries and
affiliates.
2. The adjustment of ¥16,855 million for segment assets includes eliminations for intersegment transactions of ¥(2,630) million and corporate
assets of ¥19,485 million that have not been allocated to any segment. Corporate assets are mainly investment securities held for a common
purpose.
(*3) Segment profit is adjusted to be consistent with operating income shown on the consolidated statements of income.
25
Year ended
March 31, 2011
Millions of yen
Reportable Segment
Printing inks
and
graphic arts
materials
(Japan)
Net sales to outside
customers
Printing
inks
(Asia)
Printing
inks
(North
America)
Printing
inks
(Europe)
Functional
materials
Total
Other
businesses
(*1)
Total
Adjustments
(*2)
Consolidated
(*3)
¥-
¥117,663
¥60,290
¥12,997
¥25,562
¥5,389
¥6,083
¥110,321
¥7,342
¥117,663
27
11
1,346
22
121
1,527
4,014
5,541
(5,541)
-
Total
60,317
13,008
26,908
5,411
6,204
111,848
11,356
123,204
(5,541)
117,663
Segment profit
¥3,411
¥394
¥478
¥123
¥319
¥4,725
¥179
¥4,904
¥145
¥5,049
Segment assets
35,501
9,293
10,902
3,979
5,108
64,783
3,955
68,738
18,312
87,050
906
300
728
156
412
2,502
24
2,526
-
2,526
-
37
-
-
287
324
-
324
-
324
513
309
565
149
320
1,856
2
1,858
-
1,858
Intersegment
and transfers
Depreciation
Amortization of goodwill
Increase in property,
plant and equipment
and intangible assets
(*1) The “Other businesses” category includes the chemical products business, color film developing and printing services and equipment for color
matching systems not shown in reportable segments.
(*2) Adjustments are as follows:
1. The adjustment of ¥145 million for segment profit includes eliminations for intersegment transactions of ¥338 million and corporate expenses
of ¥(193) million that have not been allocated to any segment. Corporate expenses are mainly service fees to unconsolidated subsidiaries and
affiliates.
2. The adjustment of ¥18,312 million for segment assets includes eliminations for intersegment transactions of ¥(2,050) million and corporate
assets of ¥20,362 million that have not been allocated to any segment. Corporate assets are mainly investment securities held for a common
purpose.
(*3) Segment profit is adjusted to be consistent with operating income shown on the consolidated statements of income.
26
(Related Information)
Year ended March 31, 2012
1. Information about each product and service
Year ended
March 31, 2012
Printing inks
Net sales to
outside customers
¥
Millions of yen
Functional
materials
Graphic arts
materials
84,949
¥
20,466
¥
6,112
Other
¥
Total
8,044
¥
119,571
2. Information about geographic areas
Year ended
March 31, 2012
Millions of yen
Japan
Asia
America
Europe
Other
Net sales
¥
69,232 ¥
16,701 ¥
23,437 ¥
6,182 ¥
Property, plant
and equipment
¥
11,631 ¥
2,784 ¥
3,492 ¥
1,263 ¥
Total
4,019 ¥ 119,571
69 ¥
19,239
Note: Net sales are classified by country and region based on customer location.
3. Major customers
No information is available as there were no outside customers accounting for 10% or more of the
Companies’ total net sales.
(Loss on impairment of fixed assets by reportable segments)
Not applicable
(Amortization and unamortized balance of goodwill)
Year ended
March 31, 2012
Millions of yen
Reportable Segment
Printing inks
and
graphic arts
materials
(Japan)
Printing
inks
(Asia)
Printing
inks
(North
America)
Printing
inks
(Europe)
Functional
materials
Total
Other
businesses
Adjustments
Consolidated
Amortization of
goodwill
¥
-
¥ 27
¥
-
¥
-
¥ 168
¥ 195
¥
-
¥
-
¥ 195
Balance as of
March 31, 2012
¥
-
¥ 14
¥
-
¥
-
¥ 207
¥ 221
¥
-
¥
-
¥ 221
(Negative goodwill in other income by reportable segments)
Not applicable
27
Year ended March 31, 2011
1. Information about each product and service
Year ended
March 31, 2011
Millions of yen
Graphic arts
materials
Printing inks
Net sales to
outside customers
¥
81,740
¥
Functional
materials
22,952
¥
6,082
Other
¥
Total
6,889
¥
117,663
2. Information about geographic areas
Year ended
March 31, 2011
Millions of yen
Japan
Asia
America
Europe
Other
Total
Net sales
¥
68,821 ¥
14,470 ¥
24,230 ¥
6,207 ¥
3,935 ¥
117,663
Property, plant
and equipment
¥
11,297 ¥
2,134 ¥
3,988 ¥
1,445 ¥
104 ¥
18,968
Note: Net sales are classified by country and region based on customer location.
3. Major customers
No information is available as there were no outside customers accounting for 10% or more of the
Companies’ total net sales.
(Loss on impairment of fixed assets by reportable segments)
Not applicable
(Amortization and unamortized balance of goodwill)
Year ended
March 31, 2011
Millions of yen
Reportable Segment
Printing inks
and
graphic arts
materials
(Japan)
Printing
inks
(Asia)
Printing
inks
(North
America)
Printing
inks
(Europe)
Functional
materials
Total
Other
businesses
Adjustment
Consolidated
Amortization of
goodwill
¥
-
¥ 37
¥
-
¥
-
¥ 287
¥ 324
¥
-
¥
-
¥ 324
Balance as of
March 31, 2011
¥
-
¥ 41
¥
-
¥
-
¥ 386
¥ 427
¥
-
¥
-
¥ 427
(Negative goodwill in other income by reportable segments)
Not applicable
28
20.
Related Party Transactions
Transactions with related parties required to be disclosed by Japanese GAAP for the years ended
March 31, 2012 and 2011 were as follows:
Year ended March 31, 2012
Attribute
Affiliate
Name
SHENZHEN
SAKATA
INX CO.,
LTD.
Location
Shenzhen,
China
Capital
Stock
(Millions
of yen)
¥
28
Operations
or
occupation
Printing ink
Holding
equity
(%)
Direct
25.0
Relationship
Sales of
finished goods
Transaction
Amount
(Millions
of yen)
Transaction
details
Sales of
finished goods
¥
Account
Balance at
year end
(Millions
of yen)
Notes and
accounts
receivable
-trade
¥
1,103
Investments
and other
assets:
Other
¥
62
998
Note 1: The trade terms of the above transactions were determined using the same method as for third party transactions.
Note 2: The amount of ¥62 million was accounted for as allowance for doubtful accounts to cover possible losses on collection from
SHENZHEN SAKATA INX CO., LTD., and the amount of bad debt expense accounted for the year ended March 31, 2012
was ¥3 million.
Year ended March 31, 2011
Not applicable
21.
Changes in Net Assets
1. Information on type and number of shares issued and treasury stock
Type and number of shares issued and treasury stock in the year ended March 31, 2012
Number of shares
as of the beginning
of current period
Increase in number
of shares
during the period
Decrease in number
of shares
during the period
Number of shares
as of the end of
current period
Shares issued:
Common stock
62,601,161
-
-
62,601,161
2,082,767
2,878
-
2,085,645
Treasury stock:
Common stock
Note: The increase in number of shares of treasury stock was due to the purchase of fractional shares.
Type and number of shares issued and treasury stock in the year ended March 31, 2011
Number of shares
as of the beginning
of current period
Increase in number
of shares
during the period
Decrease in number
of shares
during the period
Number of shares
as of the end of
current period
Shares issued:
Common stock
62,601,161
-
-
62,601,161
2,079,771
2,996
-
2,082,767
Treasury stock:
Common stock
Note: The increase in the number of shares of treasury stock was due to the purchase of fractional shares.
29
2. Information on dividends
Dividends paid in the year ended March 31, 2012
Date of resolution
Annual meeting of
stockholders held on
June 29, 2011
Directors' meeting
held on
November 9, 2011
Amounts of
dividends
(Millions of yen)
Cash dividends
per share
(Yen)
Common
Stock
¥
363
¥
Common
Stock
¥
424
¥
Type of
shares
Record date
Effective date
6
March 31,
2011
June 30,
2011
7
September 30,
2011
December 2,
2011
Record date
Effective date
Dividends paid in the year ended March 31, 2011
Date of resolution
Annual meeting of
stockholders held on
June 29, 2010
Directors' meeting
held on
November 5, 2010
Amounts of
dividends
(Millions of yen)
Cash dividends
per share
(Yen)
Common
Stock
¥
363
¥
6
March 31,
2010
June 30,
2010
Common
Stock
¥
363
¥
6
September 30,
2010
December 3,
2010
Type of
shares
Dividends with a record date attributable to the year ended March 31, 2012 but an effective date after
March 31, 2012
Date of resolution
Type of
shares
Source of
dividends
Amounts of
dividends
(Millions of yen)
Cash dividends
per share
(Yen)
Annual meeting
of stockholders
held on
June 28, 2012
Common
stock
Retained
earnings
¥
¥
424
7
Record date
Effective
date
March 31,
2012
June 29,
2012
Dividends with a record date attributable to the year ended March 31, 2011 but an effective date after
March 31, 2011
Date of resolution
Type of
shares
Source of
dividends
Amounts of
dividends
(Millions of yen)
Cash dividends
per share
(Yen)
Annual meeting
of stockholders
held on
June 29, 2011
Common
stock
Retained
earnings
¥
¥
363
30
6
Record date
Effective
date
March 31,
2011
June 30,
2011
22.
Information on Significant Affiliates
A summary of the financial statements of SIIX Corporation required to be disclosed by Japanese
GAAP as summarized financial statements of significant affiliates is as follows:
Summarized balance sheets as of December 31, 2011and 2010
Millions of yen
2011
2010
Current assets ························ ¥
43,885
¥
47,913
Noncurrent assets ··················· ¥
15,587
¥
14,875
Current liabilities···················· ¥
33,476
¥
38,966
Noncurrent liabilities ··············· ¥
5,869
¥
4,051
Net assets····························· ¥
20,127
¥
19,771
Summarized statements of income for the years ended December 31, 2011 and 2010
Millions of yen
2011
23.
2010
Net sales ······························ ¥
167,826
¥
166,481
Income before income taxes ······· ¥
4,138
¥
4,999
Net income ··························· ¥
2,724
¥
3,271
Amounts Per Share
Yen
2012
2011
Net assets per share ·················· ¥
605.70
¥
598.73
Dividends per share ················· ¥
13.00
¥
12.00
Net income per share ················ ¥
49.27
¥
62.08
Note 1: There are no dilutive securities.
Note 2: The calculation of net income per share was as follows:
2012
2011
Net income (millions of yen) ····················· ¥
2,982
¥
3,757
Net income attributable to shares
of common stock (millions of yen) ··········· ¥
2,982
¥
3,757
Average number of shares of common stock
during the fiscal year (thousands) ·············
31
60,516
60,520