BUSINESS REPORT

2007
To Our Shareholders
I wish to sincerely thank all our shareholders for their continuing support and
encouragement, and welcome this opportunity to say a few words as we report on Nissin
Corporation’s business activities and results for the fiscal year ended March 31, 2007.

Setting our ultimate objective in satisfying our customers’ needs and earning their trust,
we have built a global logistics operation to meet the demands of the 21st century. By
keeping pace with the changes in the new era, we aim to remain the service provider of
choice and intend to do our best to accommodate the needs that arise from the
transformations in the business and social environment.

We ask your continuing support and encouragement.

Hiroshi Tsutsui, President

Company Information:
Name: Nissin Corporation
Head Office: 6-84 Onoe-cho, Naka-ku, Yokohama, Japan
Tokyo General Office: No.5, Sanban-cho, Chiyoda-ku, Tokyo, Japan
Establishment: December 14, 1938
Capital: 6,097,263,500 yen (as of March 31, 2007)
Business Term: Commencing April 1 and closing March 31
of the following year
Regular General Meeting
of Shareholders: To be held in June

Web site: http://www.nissin-tw.co.jp/

 Business Activities and Results

During the fiscal year under review, the world economy continued to grow at a moderate pace. In the United
States, personal consumption rose despite the downward trends of capital investment and housing starts. In Asia,
China maintained high economic growth led by capital investment and exports, while the Southeast Asian
economies also performed strongly. In Europe, the gradual economic recovery continued, supported by rising
exports and personal consumption. Long-lasting recovery of the Japanese economy progressed as capital
investment increased and personal consumption was relatively firm.
In the Japanese logistics industry, although cargo movement into and out of China was active, overall volume
of international freight transport trended upward moderately for both exports and imports. Business conditions
remained harsh for domestic freight transport despite a tendency toward recovery in some areas. Business in the
travel industry remained firm centering on China and Southeast Asia.
Nissin Group is implementing its second mid-term (three-year) business plan, which runs from fiscal 2005 to
2007. We are striving to strengthen our earning power and reinforce the fundamentals of our business in order to
secure our position as a global logistics provider with corporate logistics as our mainstay activity.
In the International Freight Business Unit, we endeavored to provide totally optimized services that fulfill
logistics needs of customers in line with the development of their overseas business. We engaged in vigorous
marketing with the aim of increasing handling of marine and air freight. In the Domestic Freight Business Unit,
our efforts were focused on deepening our relationship with existing customers and cultivating new customers by
promoting proposal-driven marketing and providing meticulous logistics services.
In Travel Services and Other Business, while working to increase orders received over the Internet, we stepped
up our efforts to increase handling of international business travel, the main pillar of our travel services, as well
as handling of private travel.
In North America we made every effort to boost import and export handling of transport equipment and


electrical and electronic equipment. At the same time, we sought to expand handling of U.S.-Mexico transborder
transport and U.S.-China transport. In China, we took further steps to create a domestic network by enhancing
our presence in the country’s principal cities, with Nissin-Sinotrans International Logistics Co., Ltd., the joint
venture established last year, as the centerpiece.
In India, where the economy continued to enjoy high economic growth, our freight handling increased strongly
in step with our customers who are establishing a presence in the country and expanding their investments. In
Vietnam, with the two-headquarters structure (in Hanoi and Ho Chi Minh City) we worked to provide
comprehensive logistics services on the back of booming trade between Japan and Vietnam and also between
China and Vietnam.
In Russia, we stepped up marketing with an eye to increasing freight volume in the future. We also began a
feasibility study with a view to establishing a base in Eastern Europe where business is expected to take wing.
In Japan, our air freight business for imports and exports was further strengthened with the completion of
construction of the Narita Logistics Center in February, which is equipped with refrigeration and constant-
temperature facilities as well as room-temperature facilities, enabling us to meet the diverse needs of our
customers.
In the Chubu region where demand for international freight is expected to rise, we established AICHI NISSIN
CO., LTD. By strengthening linkage among Nissin Group companies from Hokkaido to Kyushu, we aim to
further enrich our comprehensive logistics business.
As a result, consolidated net sales for the year under review rose 3.7% from the previous year to ¥220,170
million fueled by the growth of our mainstay international freight business. Consolidated operating income
climbed 19.7% to ¥6,071 million. Consolidated ordinary income jumped 25.3% to ¥6,626 million owing to an
improvement in the financial account balance. Consolidated net income soared 74.0% to ¥3,937 million.


 Segmental Overview

In the International Freight Business Unit, by strengthening linkage throughout our global network, we strove to

provide services of exceptional quality as a partner precisely responding to the logistics needs of our customers as they

develop their business overseas. We enhanced international multimodal transport services by strengthening handling of

mixed air and marine cargo.

As a result, regarding marine freight, handling of exports of transport equipment and electronic equipment for China,

Southeast Asia, and North America was buoyant, while handling of imports of food products and raw materials from

China and Europe was firm. Handling of marine freight (NVOCC: non-vessel operating common carrier) was also

brisk between Japan on the one hand and North America, China, and Southeast Asia on the other.

In the air freight segment, handling of exports of electrical and electronic equipment and automobile parts for North

America, China, and Southeast Asia was upbeat, while handling of imports of fresh foods and machine parts was

generally firm.

At overseas subsidiaries, handling of exports and imports of transport equipment and electronic components

increased in North America. Volumes were particularly high between the United States on the one hand, and Mexico,

China, and Southeast Asia on the other. In Europe, the logistics business remained firm, while in Southeast Asia

business expanded centering on handling of air freight. In China, we strengthened domestic logistics services,

including imports of parts, shuttle-fleet truck transport and milk-run transport in Eastern China, the vendor managed

inventory (VMI) warehouse service for manufacturers, and freezer and refrigerated transport of food to convenience

stores.

Consolidated sales from the International Freight Business Unit increased 5.7% year on year to ¥130,184 million.

In the Domestic Freight Business Unit, we worked to strengthen our response to customer needs by improving

logistics quality and achieving low-cost operations through IT-based enhancement of our distribution system. Also, we

sought to win new business by strengthening the linkage among Nissin Group companies in Japan.


 In the automotive transport operations, we strove for greater efficiency by reviewing transport systems and

introducing a new fleet operation management system. Further, we sought to increase freight volumes handled by our

truck transport in the Tokyo region and transport of hazardous items.

In the warehouse business, we increased the variety of items we handle by accepting orders for the storage of

telecommunications equipment. We also endeavored to expand our business of storage and delivery of imported food

products by offering enhanced services. For this purpose, existing facilities were converted to constant-temperature

facilities and refurbished.

Consolidated sales from the Domestic Freight Business Unit increased 0.1% from the previous year to ¥38,235

million.

Travel Services and Other Businesses are operated by the Company’s subsidiaries. In the mainstay business travel

operations, handing of business travel to China, Southeast Asia, and North America increased partly due to the start of

full-scale operation of our reservation system. In the individual and group travel fields, despite continuing fierce

competition, business was firm as a result of efforts to expand sales through a system enabling customers to purchase

travel products on the website.

Consolidated sales from this segment rose 1.5% year on year to ¥51,750 million yen.

Fiscal 2006 Fiscal 2007 Change

Business Unit Millions of yen % of total Millions of yen % of total
(%)

International Freight Business Unit 123,112 58.0 130,184 59.1 5.7

Domestic Freight Business Unit 38,209 18.0 38,235 17.4 0.1
Travel Services and Other
Businesses 51,006 24.0 51,750 23.5 1.5
Total 212,328 100.0 220,170 100.0 3.7


 Topics

The Narita Logistics Center of Nissin Air Cargo Opens

The Narita Logistics Center, whose construction started in March 2006, was completed at the end of January
2007 and began operation on February 13.
The Narita Logistics Center is a three-story (partially four-story) reinforced concrete building with a total floor
area of about 10,000 square meters. The capacious area on the first floor dedicated to air freight occupies 4,000
square meters, including the loading/unloading bay and the roofed area in front of the building. The air freight
area is an all-weather facility suitable for 24-hour operations. The second floor houses refrigerators and constant-
temperature storage facilities, while the third floor has room-temperature storage facilities. The Narita Logistics
Center enables us to offer sophisticated services of outstanding quality covering storage, distribution processing,
and delivery.
Taking the opportunity of the opening of the Narita Logistics Center, in addition to handling of air freight we
are resolved to more actively promote our global logistics business in concert with our overseas subsidiaries as
an international comprehensive logistics solutions provider.

Promoting Eco-Drive: A Letter of Appreciation from the Governor of Kanagawa Prefecture

We have been promoting driving in an environmentally friendly manner in order to achieve energy saving (cost
cutting), safety (zero accidents), and reduction of environmental impacts (CO 2 reduction), including the
avoidance of idling of trucks and elimination of jackrabbit starting and acceleration. In May 2006, Nissin was
selected as one of the model companies for the Energy Service Company (ESCO) transport project promoted by
Kanagawa Prefecture.
The Kanagawa Prefecture Transport ESCO Model Project is part of efforts to effectively promote
environmentally friendly driving for transport companies in order to ameliorate air pollution in the prefecture and
mitigate global warming. Upon completion of the project in November 2006, we received a letter of appreciation
from the governor of Kanagawa Prefecture for championing environmentally friendly driving and contributing
greatly to its promotion throughout the prefecture.
We will continue to promote environmentally friendly driving and make efforts to improve the quality of our
operations from the perspective of safety while enhancing the efficiency of logistics by saving energy step by
step.


Transporting Equipment for Filming of “Aoki Okami” Overseas

We transported the equipment for filming of the movie “Aoki Okami” at overseas locations. The movie
premiered in March 2007.
Commemorating the 800th anniversary of the founding of the Mongol state, the film presents the life of
Genghis Khan, the man who created the largest empire in history. We began shipping equipment to Mongolia in
June 2006, and transported the equipment back to Japan when filming was completed.
Capitalizing on our overseas networks, we are endeavoring to meet diverse transport needs by always selecting
the optimum transport mode, as we did for the transport of movie-making equipment to Mongolia.

Shipping with Shuttle Fleet in Eastern China

Nissin (Shanghai) Logistics Co., Ltd., our ninth subsidiary to be established in China, currently has five trucks:
two ten-ton wing trucks and three five-ton box trucks. The company is mainly engaged in delivery in Eastern
China.
The Chinese economy is expected to continue growing at an annual rate exceeding 10%, with the Beijing
Olympics in 2008 and the World Expo in Shanghai and the Asian Games in Guangzhou in 2010 serving as
milestones along the path of China’s economic resurgence. Moreover, consumption is expected to expand in
tandem with this growth. We are moving forward to build a transport system that responds to customer needs,
increase bases in China, and improve the delivery system.


 Business Outline

Stock Information
1. Total number of authorized shares 200,000,000 shares
2. Total number of issued shares 101,363,846 shares
(Of which treasury stock: 1,157,962 shares)
3. Total number of shareholders 5,009
4. Main shareholders (Top 10 shareholders)
Investment in Nissin
List of Main Shareholders
No. of shares held*

THE DAI-ICHI MUTUAL LIFE INSURANCE COMPANY 6,835

MITSUBISHI TOKYO UFJ BANK LIMITED 4,972
THE BANK OF YOKOHAMA, LTD. 4,890
NIPPON LIFE INSURANCE COMPANY 4,594
NIPPONKOA INSURANCE CO., LTD 3,429
NISSIN SHOJI CO., LTD 3,398
TOKIO MARINE & NICHIDO FIRE INSURANCE CO., LTD 3,325
SUMITOMO MITSUI BANKING CORPORATION 3,248
THE MASTER TRUST BANK OF JAPAN, LTD (Trust Account) 3,202
MITSUBISHI UFJ TRUST AND BANKING CORPORATION 2,939
*in thousands

Employees
Number of Employees Compared to previous year Average age of employees Average length of service

Total 921 +9 39.38 15.89

On a consolidated basis
Business segments Number of employees
International Freight Business Unit 2,445
Domestic Freight Business Unit 936
Travel Services and Other Businesses 393
Corporate (common) 175
Total 3,949
* The number of employees in the column for “corporate (common)” is the number of employees who belong to administrative
organizations that cannot be classified into a specific business segment.

10
 Domestic Business Network
1 Sapporo (Hokkaido Nissin Co., 36 Tokyo West Office 67 Toyama Office 94 Minami Osaka Office
Ltd.) Head Office 37 Head Office (Yokohama) 68 Hamamatsu Office 95 Izumisano Distribution Center
2 Higashi Sapporo Office 38 Honmoku CFS (Port of Yokohama) 69 Nagoya Office 96 Kobe Branch Office
(Hokkaido Nissin) 39 Detamachi Office 70 Koto Office 97 Seishin Office
3 Ebetsu Office 40 Honmoku A-7 Office 71 Suzuka Office 98 Maya Warehouse (Port of Kobe)
(Hokushin Sangyo) 41 Honmoku (East, West) Warehouse 72 Kyoto Office 99 Maya West Warehouse
4 Tomakomai Office 42 Honmoku Pier-C Office 73 Osaka Branch 100 Maya Frozen Cargo Warehouse
(Hokkaido Nissin) 43 Minami Honmoku Terminal Office 74 Nishitanabe Operation Center 101 Maya East Distribution Center
5 Hakodate (Hokushin Koun Co., 44 Yokohama YAT Office 75 Kita Osaka Office 102 PIL-13 Office
Ltd.) Head Office 45 Kanagawa Pier Office 76 Minami Osaka Cargo Distribution Center 103 PI-D Terminal Office
6 Kakuda Office 46 Bankokubashi Warehouse 77 Hirabayashi Cargo Distribution Center 104 Kobe Cargo Distribution Center
7 Kita Kanto Office 47 Yamashita (South, North) Warehouse 78 Nanko Office 105 Kobe Port International Cargo
8 Tochigi Office 48 Daikoku Warehouse (Port of 79 Nanko East Office Distribution Center
9 Haga Office Yokohama) 80 Nanko Warehouse (Port of Osaka) 106 Amagasaki Office
10 Furukawa Office 49 Daikoku (L-2, L-5) Office 81 Nanko C-6 Container Terminal 107 Rokko Island Office
11 Takasaki Office 50 Daikoku Office 82 Nanko Air Cargo Center 108 Kakogawa Office
12 Ohta Office 51 Negishi Office 83 Nanko West Warehouse 109 Maniwa Office
13 Ibaragi Office 52 Shinko Warehouse 84 Nanko Petrochemical Products 110 Hiroshima Office
14 Sashima Office 53 J.P.O. SUN Office Center 111 Fukuoka Office
15 Sayama Office 54 Tsurumi Operation Center 85 Nanko L-2 Office 112 Omuta Office
16 Niiza Office 55 Yokohama Hazawa Office 86 Nanko Parts Center 1 2 3
17 Asaka Office 56 Samukawa Office 87 Sukematsu Pier Office
4
18 Asaka East Office 57 Ukishima Office 88 Sukematsu Distribution Center
19 Chiba Branch 58 Higashi Ogishima Office 89 Senboku Operation Center
5
20 Chiba Warehouse 59 Higashi Ogishima Distribution 90 Kansai International Airport Office
21 Chuoko Office Center 91 LNG Operation Center
22 Shinko Office 60 Kawasaki Office 92 Ittotsu Office
23 Narashino Office 61 Kawasaki (Petrochemical 93 Hannanko Office
24 Narita Airport Office Products) Tank Yard
25 Narita Logistics Center 62 Atsugi Office
26 Tokyo General Office 63 Kofu Office
27 Ohi CFS 64 Omi Office
28 Ohi Warehouse 65 Kanazawa Office Saitama Area
29 Frozen Cargo Warehouse 66 Fukui Office 15 ~ 18
30 Koto Warehouse 6
31 Aomi Warehouse
32 Aomi Cargo Distribution Center Kita Kanto Area
33 Heiwajima Center 7 ~ 10
64
34 Shibaura Office 65 67
35 Tokyo East Office 66 11
12
14
109 108 72 70 13 Chiba Area
110 63
69 19 ~ 25
111 71 68
112
Tokyo Area
Osaka Area 26 ~ 36
73 ~ 95 Kanagawa Area
Kobe Area 37 ~ 62
96 ~ 107

11
Overseas Network

● Head Office
● Branch
● Representative Office
● Agency Office

12
Europe
● Nissin Transport GmbH Head Office ● Kuwai Chung Logistics Division Office
● Neuss Branch ● Shanghai Gaosin Trade & Warehousing
● Duesseldorf Airport Office Industrial Co., Ltd. Head Office
● Frankfurt Branch ● Ningbo Office
● Hamburg European Logistics Center ● Airport Office
● Hamburg Airport Office ● Bonded Logistics Zone Branch
● Hamburg Parts Center ● Changshu Nissin Sinotrans Transportation
● Nissin (U.K.) Ltd. Head Office Co., Ltd. Head Office
● Swindon Office ● Shanghai Office
● Daventry Branch ● Jiangsu Nissin Sinotrans International
● Nissin Transport Ges. mbH Head Office (Vienna) Transportation Co., Ltd. Head Office
● Nissin Transports Espana S.A. ● Wuxi Office
Head Office (Barcelona) ● Suzhou Office
● Nissin Transport France S.A. Head Office ● Nantsu office
● Nissin Belgium N.V. Head Office ● Beijing Sanxin Refrigeration Rogistics Co., Ltd.
● Moscow Rep. Office ● Guangzhou Nissin International Transport Co., Ltd.
● Zhougshan office
Middle East ● Foshan Office
● Nissin Middle East FZE Head Office (Dubai) ● Nissin-Sinotrans International Logistics Co., Ltd.
Head Office
Asia ● Beijing Branch
● Nissin Transport Singapore Pte. Ltd. Head Office ● Qingdao Branch
● Airport Office ● Dalian Branch
● Tuas Office ● Tianjin Branch
● Siam Nistrans Co., Ltd. Head Office (Bangkok) ● Nissin (Shanghai) Logistics Co., Ltd.
● Airport Office ● Beijing Rep. Office
● Laem Chabang Branch ● Shanghai Rep. Office
● Cargo Distribution Center Office ● Wuhan Rep. Office
● Chiangmai Branch
● Rangsit Office North America
● Rojana Branch ● Nissin International Transport U.S.A., Inc. Head Office
● Nistrans (M) SDN. BHD. Head Office ● Los Angeles Branch
● Airport Office ● Huntington Beach Branch
● Port Klang Office ● San Francisco Branch
● DOH Parts Center ● Seattle Branch
● Johor Bahru Branch ● Portland Branch
● Penang Branch ● San Diego Branch
● Nissin Transport Philippines Corporation ● Chicago Branch
Head Office (Manila) ● South Chicago Branch
● Nissin ABC Logistics Private Ltd. ● Columbus Branch
● Haldia Office ● Dayton Branch
● Greater Noida Office ● Indianapolis Branch
● PT.Nissin Transport Indonesia ● Memphis Branch
● Nissin Logistics (VN) Co., Ltd. ● Texas Branch
● Ho Chi Minh Branch ● Atlanta Branch
● Kathmandu Rep. Office ● Alabama Office
● Almaty Rep. Office ● New York Branch
● Yangon Rep. Office ● New Jersey Branch
● Manila Rep. Office ● Miami Branch
● Nissin Customs Service, Inc. Head Office
China
● Nissin Transportation & Warehousing ● Nissin Transport (Canada) Inc. Head Office
(H.K.) Head Office ● Vancouver Branch
● Airport Office ● Alliston Branch
● Shenzhen Office ● Nissin Transport (Mexico) Inc. Head Office
● HK Warehouse

13
Consolidated Financial Highlights (for the last 4 years)
Sales (millions of yen)

Fiscal 2004 178,059

Fiscal 2005 200,400

Fiscal 2006 212,328

Fiscal 2007 220,170

180,000 200,000 220,000

Ordinary Profit (millions of yen)

Fiscal 2004 3,449

Fiscal 2005 4,370

Fiscal 2006 5,289

Fiscal 2007 6,626

3,000 4,000 5,000 6,000 7,000

Net Income (millions of yen)

Fiscal 2004 1,444

Fiscal 2005 2,337

Fiscal 2006 2,261

Fiscal 2007 3,937

1,500 2,500 3,500 4,500

14
Earnings per Share (yen)

Fiscal 2004 14.25

Fiscal 2005 23.22

Fiscal 2006 22.36

Fiscal 2007 39.38

15 25 35 45

Shareholders’ Equity / Total Assets (millions of yen)

Fiscal 2004 (30,515) 97,066

Fiscal 2005 (32,577) 97,422

Fiscal 2006 (38,319) 108,695

Fiscal 2007 (40,988) 111,311

40,000 80,000 120,000

Book Value per Share (yen)

Fiscal 2004 307.83

Fiscal 2005 327.61

Fiscal 2006 383.45

Fiscal 2007 405.21

250 300 350 400

15
Non-Consolidated Financial Highlights (for the last 4 years)
Sales (millions of yen)

Fiscal 2004 112,290

Fiscal 2005 121,621

Fiscal 2006 129,144

Fiscal 2007 132,893

90,000 100,000 110,000 120,000 130,000

Ordinary Profit (millions of yen)

Fiscal 2004 2,589

Fiscal 2005 2,927

Fiscal 2006 3,496

Fiscal 2007 4,104

2,000 3,000 4,000

Net Income (millions of yen)

Fiscal 2004 1,305

Fiscal 2005 1,691

Fiscal 2006 1,897

Fiscal 2007 1,660

500 1,000 1,500 2,000

16
Earnings per Share (yen)

Fiscal 2004 12.81

Fiscal 2005 16.66

Fiscal 2006 18.66

Fiscal 2007 16.57

5 10 15 20

Shareholders’ Equity / Total Assets (millions of yen)

Fiscal 2004 (29,895) 77,751

Fiscal 2005 (31,280) 76,579

Fiscal 2006 (36,591) 86,372

Fiscal 2007 (36,373) 85,557

30,000 60,000 90,000

Book Value per Share (yen)

Fiscal 2004 300.34

Fiscal 2005 313.85

Fiscal 2006 365.33

Fiscal 2007 362.99

250 300 350 400

17
 Consolidated Balance Sheet
Assets
Current assets (millions of yen) (thousands of US dollars)
Cash and deposits ¥ 11,981 $ 101,497
Notes receivable and accounts receivable-trade 35,037 296,800
Marketable securities 686 5,817
Inventories 90 764
Deferred tax assets-current 958 8,123
Other current assets 3,840 32,529
Allowance for doubtful accounts (369) (3,133)
Current assets 52,225 442,399
Fixed assets
Tangible fixed assets
Buildings and structures 15,850 134,271
Machinery and equipment 1,652 13,994
Land 11,930 101,065
Other tangible fixed assets 1,250 10,591
Tangible fixed assets 30,683 259,923
Intangible fixed assets
Goodwill 485 4,112
Other intangible fixed assets 3,993 33,832
Intangible fixed assets 4,479 37,944
Investments and other
Investment in securities 20,692 175,287
Long-term loans 224 1,902
Deferred tax assets-non current 344 2,916
Other investments and other assets 3,098 26,246
Allowance for doubtful accounts (437) (3,702)
Investments and other 23,922 202,650
Fixed assets 59,086 500,518
Total assets ¥ 111,311 $ 942,918
*as of March 31, 2007 (Exchange Rate: ¥118.05 / USD)

18
 Liabilities
Current liabilities (millions of yen) (thousands of US dollars)
Notes payable and accounts payable ¥ 22,579 $ 191,271
Short-term debts 13,770 116,653
Bonds payable due within one year 300 2,541
Accrued income taxes 1,570 13,307
Accrued employees’ bonus 1,573 13,333
Other current liabilities 5,921 50,158
Current liabilities total 45,716 387,265
Non-current liabilities
Bonds payable 780 6,607
Long-term debts 14,689 124,438
Deferred tax liabilities 4,407 37,336
Reserve for employees’ retirement benefits 2,994 25,362
Reserve for directors’ retirement benefits 479 4,062
Other non-current liabilities 1,254 10,627
Non-current liabilities total 24,605 208,435
Total liabilities 70,322 595,701
Net assets
Shareholders’ equity (millions of yen) (thousands of US dollars)
Common stock 6,097 51,649
Capital surplus 4,378 37,094
Earned surplus 23,176 196,326
Treasury stock (300) (2,548)
Total shareholders’ equity 33,351 282,522
Valuation and translation adjustments
Net unrealized holding gains on securities 7,291 61,764
Deferred losses on hedges (18) (155)
Foreign currency translation adjustments (103) (880)
Total valuation and translation adjustments 7,168 60,728
Minority interests 468 3,966
Total net assets 40,988 347,216
Total liabilities & net assets 111,311 942,918

19
 Consolidated Statement of Income
(April 1, 2006 through March 31, 2007) Itemized Total Itemized Total
Amount Amount Amount Amount
(millions of yen) (millions of yen) (thousands of (thousands of
US dollars) US dollars)
Net sales ¥ 220,170 $1,865,064
Cost of sales 190,601 1,614,580
Gross Income 29,569 250,484
Selling, general and administrative expenses 23,498 199,051
Operating income 6,071 51,432
Non-operating revenue
Interest income 77 659
Dividend income 244 2,067
Equity in earnings 262 2,227
Exchange gain 263 2,233
Other non-operating revenue 419 1,268 3,556 10,744
Non-operating expenses
Interest expense 585 4,958
Other non-operating expenses 128 713 1,087 6,045
Ordinary profit 6,626 56,131
Extraordinary income
Gain on sales of investment in securities 259 2,202
Distribution of residual property 9 269 80 2,282
Extraordinary losses
Loss on termination of qualified pension plan 59 506
Impairment loss 42 356
Loss on disposal of fixed assets 25 212
Loss on sales of fixed assets 15 130
Bad debt expenses 9 77
Loss on withdrawal from golf club membership 3 25
Provision for allowance for doubtful accounts 0 154 3 1,311
Income before income taxes 6,740 57,102
Income taxes-current 2,408 20,406
Income taxes-deferred 400 2,809 3,394 23,801
Minority income (5) (48)
Net income 3,937 33,350

20
Consolidated Statement of Changes in Net Assets
(April 1, 2006 through March 31, 2007) (Millions of yen)
Shareholders’ equity

Common stock Capital surplus Earned surplus Treasury stock Total shareholders’
equity
Balance at March 31,
2006 6,097 4,374 19,875 (330) 30,016
Changes during the year
Dividends from surplus (600) (600)
Net income 3,937 3,937
Bonuses to directors and
corporate auditors by
appropriation of retained (35) (35)
earnings
Acquisition of treasury
stock (11) (11)
Disposal of treasury stock 4 41 45
Changes in items other
than shareholders’ equity
during the year (net)
Total changes during the
year — 4 3,301 29 3,335
Balance at March 31,
2007 6,097 4,378 23,176 (300) 33,351

 (Millions of yen)
Valuation and translation adjustments
Net unrealized Minority Total net
Deferred losses Foreign currency Total valuation
holding gains on translation and translation interests assets
on hedges
securities adjustments adjustments
Balance at March 31,
2006 8,549 — (245) 8,303 484 38,804
Changes during the year
Dividends from surplus (600)
Net income 3,937
Bonuses to directors and
corporate auditors by
appropriation of retained (35)
earnings
Acquisition of treasury
stock (11)
Disposal of treasury stock 45
Changes in items other
than shareholders’ equity (1,257) (18) 141 (1,134) (16) (1,151)
during the year (net)
Total changes during the
year (1,257) (18) 141 (1,134) (16) 2,184
Balance at March 31,
2007 7,291 (18) (103) 7,168 468 40,988

21
Non-Consolidated Balance Sheet
Assets
Current assets (millions of yen) (thousands of US dollars)
Cash and deposits ¥ 3,955 $ 33,510
Notes receivable 499 4,230
Accounts receivable-trade 21,896 185,487
Marketable securities 686 5,817
Supplies 20 175
Prepaid expense 524 4,439
Short-term loans receivable 759 6,430
Accounts receivable (duty etc.) 2,744 23,250
Deferred tax assets-current 562 4,762
Other current assets 273 2,319
Allowance for doubtful accounts (115) (979)
Current assets total 31,808 269,445
Fixed assets
Tangible fixed assets
Buildings 12,338 104,519
Structures 1,148 9,731
Machinery and equipment 742 6,292
Vehicles and delivery equipment 342 2,900
Tools, furniture and fixtures 128 1,091
Land 8,585 72,726
Tangible fixed assets total 23,286 197,262
Intangible fixed assets
Leasehold 2,650 22,455
Software 778 6,596
Telephone rights 57 488
Other intangible fixed assets 361 3,065
Intangible fixed assets total 3,849 32,606
Investments and other
Investment in securities 18,047 152,681
Investment in subsidiaries 3,884 32,909
Investment in capital 38 323
Investment in capital of subsidiaries 1,200 10,167
Long-term loan 168 1,423
Long-term loan to subsidiaries 2,689 22,782
Claims in bankruptcy, reorganization and similar causes 324 2,748
Long-term prepaid expenses 87 743
Lease income deposits 713 6,045
Guarantee deposits 972 8,239
Other investments and other 296 2,508
Allowance for doubtful accounts (896) (7,591)
Allowance for investment losses (913) (7,739)
Investments and other total 26,613 225,443
Fixed assets total 53,749 455,311
Total assets 85,557 724,756
*as of March 31, 2007 (Exchange Rate: ¥118.05 / USD)

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 Liabilities
Current liabilities (millions of yen) (thousands of US dollars)
Accounts payable ¥ 13,861 $ 117,419
Short-term debts 5,840 49,470
Long-term debt due within one year 3,733 31,624
Bonds payable due within one year 100 847
Accounts payable-other 167 1,419
Accrued income taxes 1,192 10,101
Accrued expenses 511 4,329
Deposits received 31 270
Accounts payable (duty etc.) 2,228 18,875
Accrued employees’ bonus 871 7,386
Accrued bonuses to directors and corporate auditors 38 321
Other current liabilities 45 383
Current liabilities total 28,621 242,448
Non-current liabilities
Bonds payable 600 5,082
Long-term debts 13,365 113,221
Deferred tax liabilities 3,799 32,182
Reserve for employees’ retirement benefits 1,641 13,907
Reserve for directors’ retirement benefits 363 3,079
Long-term deposits received 792 6,712
Non-current liabilities total 20,562 174,186
Total liabilities 49,183 416,635
Net assets
Shareholders’ equity (millions of yen) (thousands of US dollars)
Common stock 6,097 51,649
Capital surplus
Additional paid-in capital 4,366 36,990
Other capital surplus 20 173
Total capital surplus 4,387 37,163
Earned surplus
Legal reserve 1,524 12,910
Other earned surplus 17,406 147,453
Reserve for special depreciation 0 2
Reserve for property replaced by purchase 1,581 13,398
Reserve for advanced depreciation 259 2,199
General reserve 11,000 93,180
Earned surplus carried forward 4,565 38,672
Total earned surplus 18,930 160,364
Treasury stock (254) (2,154)
Total shareholders’ equity 29,161 247,023
Valuation and translation adjustments
Net unrealized holding gains on securities 7,230 61,253
Deferred losses on hedges (18) (155)
Total valuation and translation adjustments 7,212 61,098
Total net assets 36,373 308,121
Total liabilities & net assets 85,557 724,756

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 Non-Consolidated Statement of Income
(April 1, 2006 through March 31, 2007) Itemized Total Itemized Total
Amount Amount Amount Amount
(millions of yen) (millions of yen) (thousands of (thousands of
US dollars) US dollars)
Net sales ¥ 132,893 $ 1,125,738
Cost of sales 119,536 1,012,591
Gross Income 13,357 113,147
Selling, general and administrative expenses 9,769 82,754
Operating income 3,587 30,392
Non-operating revenue
Interest income 102 865
Marketable securities interest income 5 47
Dividend income 492 4,168
Rent income 59 505
Exchange gain 204 1,731
Other non-operating revenue 167 1,031 1,419 8,737
Non-operating expenses
Interest expense 319 2,705
Bonds interest expense 135 1,146
Other non-operating expenses 60 515 511 4,363
Ordinary profit 4,104 34,766
Extraordinary income
Reversal of allowance for investment loss 465 3,939
Gain on sales of investment in securities 259 2,196
Distribution of residual property 9 733 80 6,217
Extraordinary losses
Provision of allowance for doubtful accounts 513 4,353
Loss on termination of qualified pension plan 59 506
Impairment loss 42 356
Provision for allowance for investment loss 20 169
Loss on withdrawal from golf club membership 3 638 25 5,410
Income before income taxes 4,199 35,572
Income taxes-current 1,733 14,688
Income taxes-deferred 805 2,539 6,821 21,510
Net income 1,660 14,062

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 Non-Consolidated Statement of Changes in Net Assets
(April 1, 2006 through March 31, 2007) (Millions of yen)
Shareholders’ equity
Capital surplus Earned surplus
Other earned surplus
Common Additional Other
stock Total capital Legal Reserve for Earned Total earned
paid-in capital Reserve Reserve for
surplus reserve property General surplus surplus
capital surplus for special advanced
replaced by reserve carried
depreciation depreciation
purchase forward
Balance at March 31,
2006 6,097 4,366 16 4,383 1,524 3 1,683 259 10,000 4,436 17,906
Changes during the
year
Reversal of reserve for
special depreciation (3) 3 —
Reversal of reserve for
property replaced by (156) 156 —
purchase
Provision of reserve
for property replaced 54 (54) —
by purchase
Provision of general
reserve 1,000 (1,000) —
Dividends from
surplus (600) (600)
Net income 1,660 1,660
Bonuses to directors
and corporate auditors
by appropriation of (35) (35)
retained earnings
Acquisition of treasury
stock
Disposal of treasury
stock 3 3
Changes in
items other than
shareholders’ equity
during the year (net)
Total changes during
the year — — 3 3 — (3) (101) — 1,000 129 1,024
Balance at March 31,
2007 6,097 4,366 20 4,387 1,524 0 1,581 259 11,000 4,565 18,930

 (Millions of yen)
Shareholders’ equity Valuation and translation adjustments
Total shareholders’ Net unrealized holding Deferred losses on Total valuation and Total net assets
Treasury stock equity gains on securities hedges translation adjustments
Balance at March 31,
2006 (278) 28,108 8,482 — 8,482 36,591
Changes during the
year
Reversal of reserve for
special depreciation — —
Reversal of reserve for
property replaced by — —
purchase
Provision of reserve
for property replaced — —
by purchase
Provision of general
reserve — —
Dividends from
surplus (600) (600)
Net income 1,660 1,660
Bonuses to directors
and corporate auditors
by appropriation of (35) (35)
retained earnings
Acquisition of treasury
stock (11) (11) (11)
Disposal of treasury
stock 35 39 39
Changes in
items other than
shareholders’ equity (1,251) (18) (1,270) (1,270)
during the year (net)
Total changes during
the year 24 1,052 (1,251) (18) (1,270) (217)
Balance at March 31,
2007 (254) 29,161 7,230 (18) 7,212 36,373

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 Directors and Auditors

President Hiroshi Tsutsui

Executive Vice President Masahiro Tsutsui
Director and Senior Managing Executive Officer Kazufumi Yamaguchi
Director and Senior Managing Executive Officer Masahiko Ogura
Director and Senior Managing Executive Officer Yasuo Shoda
Director and Managing Executive Officer Mikio Araga
Director and Managing Executive Officer Tadakuni Shiomoto
Director and Managing Executive Officer Hiroshi Takeuchi
Director and Managing Executive Officer Hiroaki Furuya
Director and Executive Officer Kouichi Ishikawa
Director and Executive Officer Hideo Yamaguchi
Director and Executive Officer Toshio Ishikawa
Director and Executive Officer Sadamitsu Nakajima
Director and Executive Officer Tetsuji Yoshimoto
Standing Auditor Masatoshi Hirai
Standing Auditor Akira Kirigaya
Auditor Takeshi Tsuda
Auditor Osamu Takeda

Executive Officer Takeru Bando

Executive Officer Kazuo Nagatani
Executive Officer Kenji Uchida
Executive Officer Tamotsu Nakagawa
Executive Officer Teruhiko Kobayashi
Executive Officer Masahiko Nakamura
Executive Officer Akimitsu Nagano Note: Auditors Takeshi Tsuda and Osamu
Takeda are outside auditors.
Executive Officer Tetsuo Komaki The Company has introduced the
executive officer system and the
Executive Officer Hideto Sakurai Company executives are listed above.

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