MIRA INFORM REPORT

Report Date :

02.10.2012

IDENTIFICATION DETAILS

Name :	SAKATA SEED CORPORATION
Registered Office :	2-7-1, Nakamachidai, Tsuzuki-ku Yokohama-Shi, 224-0041
Country :	Japan
Financials (as on) :	31.05.2012
Date of Incorporation :	11.12.1942
Legal Form :	Public Parent
Line of Business :	Wholesale of agricultural raw materials and live animals
No. of Employees :	1,923

RATING & COMMENTS

MIRA’s Rating :

Ba

RATING		STATUS	PROPOSED CREDIT LINE
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory

Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear

NOTES :

Any query related to this report can be made on e-mail: infodept@mirainform.com while quoting report number, name and date.

ECGC Country Risk Classification List – June 30^th, 2012

Country Name	Previous Rating (31.03.2011)	Current Rating (30.06.2012)
Japan	A1	A1

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

JAPAN - ECONOMIC OVERVIEW

In the years following World War II, government-industry cooperation, a strong work ethic, mastery of high technology, and a comparatively small defense allocation (1% of GDP) helped Japan develop a technologically advanced economy. Two notable characteristics of the post-war economy were the close interlocking structures of manufacturers, suppliers, and distributors, known as keiretsu, and the guarantee of lifetime employment for a substantial portion of the urban labor force. Both features are now eroding under the dual pressures of global competition and domestic demographic change. Japan's industrial sector is heavily dependent on imported raw materials and fuels. A tiny agricultural sector is highly subsidized and protected, with crop yields among the highest in the world. Usually self-sufficient in rice, Japan imports about 60% of its food on a caloric basis. Japan maintains one of the world's largest fishing fleets and accounts for nearly 15% of the global catch. For three decades, overall real economic growth had been spectacular - a 10% average in the 1960s, a 5% average in the 1970s, and a 4% average in the 1980s. Growth slowed markedly in the 1990s, averaging just 1.7%, largely because of the after effects of inefficient investment and an asset price bubble in the late 1980s that required a protracted period of time for firms to reduce excess debt, capital, and labor. Measured on a purchasing power parity (PPP) basis that adjusts for price differences, Japan in 2011 stood as the fourth-largest economy in the world after second-place China, which surpassed Japan in 2001, and third-place India, which edged out Japan in 2011. A sharp downturn in business investment and global demand for Japan's exports in late 2008 pushed Japan further into recession. Government stimulus spending helped the economy recover in late 2009 and 2010, but the economy contracted again in 2011 as the massive 9.0 magnitude earthquake in March disrupted manufacturing. Electricity supplies remain tight because Japan has temporarily shut down almost all of its nuclear power plants after the Fukushima Daiichi nuclear reactors were crippled by the earthquake and resulting tsunami. Estimates of the direct costs of the damage - rebuilding homes, factories, and infrastructure - range from $235 billion to $310 billion, and GDP declined almost 0.5% in 2011. Prime Minister Yoshihiko NODA has proposed opening the agricultural and services sectors to greater foreign competition and boosting exports through membership in the US-led Trans-Pacific Partnership trade talks and by pursuing free-trade agreements with the EU and others, but debate continues on restructuring the economy and reining in Japan's huge government debt, which exceeds 200% of GDP. Persistent deflation, reliance on exports to drive growth, and an aging and shrinking population are other major long-term challenges for the economy.

Source : CIA

Company name and address

ottom of Form

SAKATA SEED CORPORATION

2-7-1, Nakamachidai, Tsuzuki-ku
Yokohama-Shi, 224-0041
Japan
Tel:	81-45-9458800
Fax:	81-45-9458841
www.sakataseed.co.jp

Employees:

1,923

Company Type:

Public Parent

Corporate Family:

9 Companies

Traded:

Tokyo Stock Exchange:

1377

Incorporation Date:

11-Dec-1942

Auditor:

KPMG AZSA LLC

Financials in:	USD (mil)
Fiscal Year End:	31-May-2012
Reporting Currency:	Japanese Yen
Annual Sales:	597.1 ^1
Net Income:	24.2
Total Assets:	1,057.2 ^2
Market Value:	629.3
	(21-Sep-2012)

Business Description

SAKATA SEED CORPORATION is a supplier of gardening products. The Company operates in four business segments. The Domestic Wholesaling segment produces and purchases vegetable seeds, flower seeds, bulbs and seedlings, and sells the products to domestic seed and plant manufactures and suppliers. The Overseas Wholesaling segment produces and purchases vegetable seeds, flower seeds, bulbs and seedlings, and sells the products to overseas seed and plant manufactures and suppliers. The Retailing segment purchases gardening products, as well as sells the products through direct stores, home centers and mail-orders. The Others segment is involved in the provision of landscape creation, insurance agency and recruitment services for government and private clients. As of May 31, 2012, the Company had 40 subsidiaries and two associated companies. For the fiscal year ended 31 May 2012, SAKATA SEED CORPORATION revenues decreased less than 1% to Y46.99B. Net income increased 44% to Y1.9B. Revenues reflect Other Businesses segment increase of 51% to Y736M, also reflect Retail Business segment decrease of 2% to Y11.84B. Net income benefited from Eliminations and Corporate segment loss decrease of 3% to Y6.51B, Retail Business segment loss decrease of 44% to Y171M.

Industry

Industry	Crops
ANZSIC 2006:	3319 - Other Agricultural Product Wholesaling
NACE 2002:	512 - Wholesale of agricultural raw materials and live animals
NAICS 2002:	42459 - Other Farm Product Raw Material Merchant Wholesalers
UK SIC 2003:	512 - Wholesale of agricultural raw materials and live animals
UK SIC 2007:	462 - Wholesale of agricultural raw materials and live animals
US SIC 1987:	5159 - Farm-Product Raw Materials, Not Elsewhere Classified

Key Executives

Name	Title
Hiroshi Sakata	President, Executive President, Representative Director
Shuitsu Honda	Executive Officer, Chief Director of Domestic Retail Sales, Director
Kazuro Kuroiwa	Executive Officer, Manager of Business Planning Office
Yoshinobu Sato	Co-Auditor
Masatoshi Sawamura	Director-Sales

Significant Developments

Topic	#*	Most Recent Headline	Date
Negative Earnings Pre-Announcement	2	Sakata Seed Corporation Lowers FY 2012 Outlook	13-Jan-2012
Positive Earnings Pre-Announcement	1	Sakata Seed Corporation Raises Consolidated Full-year Outlook for FY 2012	6-Jul-2012

* number of significant developments within the last 12 months

News

Title	Date
USPTO ISSUES TRADEMARK: SUPER COLOR SUPER EASY U.S. Fed News (87 Words)	6-Sep-2012
USDA GRANTS PROTECTION TO 39 NEW PLANT VARIETIES U.S. Fed News (756 Words)	28-Aug-2012
Sakata Seed FY Grp Net Pft Y1.90B Vs Y1.32B Pft Yr Earlier Nikkei English News (79 Words)	13-Jul-2012
Sakata Seed Expects This FY Group Net Profit Y2.50B Nikkei English News (61 Words)	13-Jul-2012
JAPAN NEWS SCHEDULE (Friday, July 13) Nikkei English News (98 Words)	12-Jul-2012

Financial Summary

As of 31-May-2012

Key Ratios	Company	Industry
Current Ratio (MRQ)	5.30	2.04
Quick Ratio (MRQ)	3.21	0.90
Debt to Equity (MRQ)	0.03	0.81
Sales 5 Year Growth	0.14	9.03
Net Profit Margin (TTM) %	4.03	2.78
Return on Assets (TTM) %	2.27	3.12
Return on Equity (TTM) %	2.67	8.13

Stock Snapshot

Traded: Tokyo Stock Exchange: 1377

As of 21-Sep-2012

   Financials in: JPY

Recent Price	1,018.00	EPS	52.23
52 Week High	1,198.00	Price/Sales	1.05
52 Week Low	1,005.00	Dividend Rate	20.00
Avg. Volume (mil)	0.02	Price/Earnings	25.06
Market Value (mil)	49,282.14	Price/Book	0.64
		Beta	0.42

	Price % Change	Rel S&P 500%
4 Week	-3.32%	-3.21%
13 Week	-3.87%	-4.57%
52 Week	-10.39%	-11.79%
Year to Date	-7.79%	-11.17%

1 - Profit & Loss Item Exchange Rate: USD 1 = JPY 78.69807
2 - Balance Sheet Item Exchange Rate: USD 1 = JPY 78.98128

Corporate Overview

Location
2-7-1, Nakamachidai, Tsuzuki-ku
Yokohama-Shi, 224-0041
Japan

Tel:	81-45-9458800
Fax:	81-45-9458841

www.sakataseed.co.jp

Quote Symbol - Exchange
1377 - Tokyo Stock Exchange
Sales JPY(mil):	46,988.0
Assets JPY(mil):	83,496.0
Employees:	1,923
Fiscal Year End:	31-May-2012

Industry:

Crops

Incorporation Date:	11-Dec-1942
Company Type:	Public Parent
Quoted Status:	Quoted

President, Executive President, Representative Director:	Hiroshi Sakata

Company Web Links

Corporate History/Profile

Financial Information

Home Page

Investor Relations

Contents Industry Codes Business Description Financial Data Market Data

Shareholders Key Corporate Relationships

Industry Codes

ANZSIC 2006 Codes:
3319	-	Other Agricultural Product Wholesaling
7313	-	Gardening Services
6420	-	Auxiliary Insurance Services
3312	-	Cereal Grain Wholesaling
7212	-	Labour Supply Services

NACE 2002 Codes:
512	-	Wholesale of agricultural raw materials and live animals
7450	-	Labour recruitment and provision of personnel
0141	-	Agricultural service activities; landscape gardening
5121	-	Wholesale of grain, seeds and animal feeds
6720	-	Activities auxiliary to insurance and pension funding

NAICS 2002 Codes:
42459	-	Other Farm Product Raw Material Merchant Wholesalers
561730	-	Landscaping Services
524210	-	Insurance Agencies and Brokerages
561320	-	Temporary Help Services
424910	-	Farm Supplies Merchant Wholesalers
424510	-	Grain and Field Bean Merchant Wholesalers

US SIC 1987:
5159	-	Farm-Product Raw Materials, Not Elsewhere Classified
6411	-	Insurance Agents, Brokers, and Service
0782	-	Lawn and Garden Services
5191	-	Farm Supplies
5153	-	Grain and Field Beans
7363	-	Help Supply Services

UK SIC 2003:
512	-	Wholesale of agricultural raw materials and live animals
7450	-	Labour recruitment and provision of personnel
5121	-	Wholesale of grain, seeds and animal feeds
6720	-	Activities auxiliary to insurance and pension funding
0141	-	Agricultural service activities; landscape gardening

UK SIC 2007:
462	-	Wholesale of agricultural raw materials and live animals
7820	-	Temporary employment agency activities
4621	-	Wholesale of grain, unmanufactured tobacco, seeds and animal feeds
0161	-	Support activities for crop production
6629	-	Other activities auxiliary to insurance and pension funding

Business Description

SAKATA SEED CORPORATION is a supplier of gardening products. The Company operates in four business segments. The Domestic Wholesaling segment produces and purchases vegetable seeds, flower seeds, bulbs and seedlings, and sells the products to domestic seed and plant manufactures and suppliers. The Overseas Wholesaling segment produces and purchases vegetable seeds, flower seeds, bulbs and seedlings, and sells the products to overseas seed and plant manufactures and suppliers. The Retailing segment purchases gardening products, as well as sells the products through direct stores, home centers and mail-orders. The Others segment is involved in the provision of landscape creation, insurance agency and recruitment services for government and private clients. As of May 31, 2012, the Company had 40 subsidiaries and two associated companies. For the fiscal year ended 31 May 2012, SAKATA SEED CORPORATION revenues decreased less than 1% to Y46.99B. Net income increased 44% to Y1.9B. Revenues reflect Other Businesses segment increase of 51% to Y736M, also reflect Retail Business segment decrease of 2% to Y11.84B. Net income benefited from Eliminations and Corporate segment loss decrease of 3% to Y6.51B, Retail Business segment loss decrease of 44% to Y171M.

More Business Descriptions

Production of vegetable seeds, flower seeds, bulbs

Horticultural Engineer; Seed Producer & Supplier

Sakata Seed Corporation, headquartered in Yokohama, Japan, became one of the first Japanese companies to export seed and has since been actively involved in the development of new and improved plant varieties throughout the world. Sakata's worldwide activities have earned it a reputation for quality in more than 130 countries. Today, the Sakata name has become one of the major international symbols of comprehensive customer support and products that meet diversified customer needs. Its broccoli and pansies, for example, maintain an overwhelming share of the global market and attest to the company's position as a formidable leader in the seed industry. Sakata Seed America maintains its United States-based operations in Morgan Hill, Calif.

Financial Data

Financials in:	JPY(mil)
Revenue:	46,988.0
Net Income:	1,901.0
Assets:	83,496.0
Long Term Debt:	125.0
Total Liabilities:	12,091.0
Working Capital:	39.2
Date of Financial Data:	31-May-2012

1 Year Growth

-0.4%

44.1%

0.2%

Market Data

Quote Symbol:	1377
Exchange:	Tokyo Stock Exchange
Currency:	JPY
Stock Price:	1,018.0
Stock Price Date:	09-21-2012
52 Week Price Change %:	-10.4
Market Value (mil):	49,282,140.0
SEDOL:	6769811
ISIN:	JP3315000004
Equity and Dept Distribution:
FY'98-'02 WAS and earning adjustment were estimated. 8/03&04 WAS & DPS estimated and o/s=WAS. FY'06-'07 1Q & 3Q's WAS and O/S were estimated. FY'08 3Q WAS=o/s. FY'08 1Q WAS=o/s. FY'09 Q1 reported EPS=Y9.70.

Shareholders

Major Shareholders

TM Kosan Corporation (15.7%); Company's Trust Stock (7%)

Key Corporate Relationships

Auditor:	KPMG AZSA LLC
Auditor:	KPMG AZSA LLC

Corporate Structure News

SAKATA SEED CORPORATION
Total Corporate Family Members: 9

Company Name	Company Type	Location	Country	Industry	Sales (USD mil)	Employees
SAKATA SEED CORPORATION	Parent	Yokohama-Shi	Japan	Crops	597.1	1,923
Sakata Seed Sudamerica Ltda.	Subsidiary	Braganca, SP	Brazil	Crops		255
Sakata Seed America, Inc.	Subsidiary	Morgan Hill, CA	United States	Chemical Manufacturing	55.1	90
Sakata Korea Co., Ltd.	Subsidiary	Seoul, Seoul	Korea, Republic of	Crops		79
Sakata Vegetables Europe	Subsidiary	Uchaud	France	Crops	43.0	56
Sakata Ornamentals Europe A/S	Subsidiary	Marslev	Denmark	Crops	20.5	35
Frisa Planter A/S	Subsidiary	Auning	Denmark	Crops		30
Sakata Seed de Mexico, S.A. de C.V.	Subsidiary	Celaya	Mexico	Retail (Home Improvement)		29
European Sakata Holding	Subsidiary	Montpellier	France	Commercial Banks

Executives Report

Board of Directors

Name	Title	Function
Hiroshi Arakawa	Senior Managing Director, Senior Managing Executive Officer	Director/Board Member
Biography: Mr. Hiroshi Arakawa has been serving as Senior Managing Director and Senior Managing Executive Officer in SAKATA SEED CORPORATION since July 2009. He joined the Company in April 1969. His previous titles include Managing Director, Managing Executive Officer, Chief Director of Research and Chief Director of Administration in the Company. Age: 66
Atsushi Hachiboshi	Independent Director	Director/Board Member
Biography: Mr. Atsushi Hachiboshi has been serving as Independent Director in SAKATA SEED CORPORATION since August 2007. He is also working for another company. He used to work for a bank that is under the new name, Mizuho Bank, Ltd. and a company that is under the new name, Mizuho Research Institute Ltd. Age: 62
Shuitsu Honda	Executive Officer, Chief Director of Domestic Retail Sales, Director	Director/Board Member
Biography: Mr. Shuitsu Honda has benn serving as Executive Officer, Chief Director of Domestic Retail Sales and Director in SAKATA SEED CORPORATION since August 2011. He joined the Company in April 1987. His previous titles include Senior Director of Flower and Director of Domestic Sales Operation in the Company. Age: 49
Takayuki Ikegami	Director	Director/Board Member
Katsuaki Ito	Director	Director/Board Member
Tsutomu Kagami	Executive Officer, Chief Director of Research, Manager of Heredity Material Office, Director	Director/Board Member
Biography: Mr. Tsutomu Kagami has been serving as Executive Officer, Chief Director of Research, Manager of Heredity Material Office and Director in SAKATA SEED CORPORATION since August 2011. He joined the Company in April 1987. Age: 50
Hideto Kaneko	Executive Officer, Chief Director of Overseas Sales, Director	Director/Board Member
Biography: Mr. Hideto Kaneko has been serving as Executive Officer, Chief Director of Overseas Sales and Director in SAKATA SEED CORPORATION since August 2011. He joined the Company in April 1990. His previous titles include Director of Overseas Sales, Director of Overseas Vegetable Sale and Director of Overseas Flower Sales in the Company. He used to work for a subsidiary, Sakata Seed America, Inc. Age: 50
Mamoru Katsuragi	Director	Director/Board Member
Ryoichi Kojima	Board Member	Director/Board Member
Takashi Mori	Director	Director/Board Member
Makoto Ohta	Managing Director, Managing Executive Officer	Director/Board Member
Biography: Mr. Makoto Ohta has been serving as Managing Director and Managing Executive Office in SAKATA SEED CORPORATION since July 2009. He joined the Company in July 1990. His previous titles include Senior Managing Director, Senior Managing Executive Officer, Chief Director of Administration, Director of Accounting, Director of Overseas Flower Sales and Chief Director of Overseas Sales in the Compant. He used to work for a bank that is under the new name The Bank of Tokyo-Mitsubishi UFJ, Ltd. and a subsidiary. Age: 63
Hiroshi Sakata	President, Executive President, Representative Director	Director/Board Member
Biography: Mr. Hiroshi Sakata has been serving as President, Executive President and Representative Director in SAKATA SEED CORPORATION since June 2007. He joined the Company in May 1981. His previous titles include Manager of President's Office, Director of Materials, Managing Director and Chief Director of Administration in the Company. He used to work for a bank that is under the new name, Mizuho Bank, Ltd. and two subsidiaries. Age: 60
Seiko Tasaki	Executive Officer, Chief Director of Quality Management, Director	Director/Board Member
Biography: Mr. Seiko Tasaki has been serving as Executive Officer, Chief Director of Quality Management and Director in SAKATA SEED CORPORATION since April 2012. He joined the Company in September 1992. His previous titles include Deputy Chief Director of Product Management, Chief Director of Production and Logistics and Director of Examination in the Company. He used to work for five subsidiaries, including Sakata Seed Sudamerica Ltda., Sakata Seed Southern Africa (Pty) Ltd., Sakata Vegenetics RSA (Pty) Ltd., European Sakata Holding S.A.S., Sakata Vegetables Europe S.A.R.L. and Sakata Ornamentals Europe A/S. Age: 63
Risho Uchiyama	Executive Officer, Chief Director of Domestic Whole Sales, Director	Director/Board Member
Biography: Mr. Risho Uchiyama has been serving as Executive Officer, Chief Director of Domestic Whole Sales and Director in SAKATA SEED CORPORATION since July 2012. He joined the Company in April 1984. His previous titles include Manager of Fukuoka Sales Center, Senior Director of Vegetable, Deputy Chief Director of Domestic Wholesale Sales, Senior Director of Material and Manager of Material Center in Hanezawa Business Center in the Company. Age: 50
Akifumi Ujita	Executive Officer, Chief Director of Administration, Director of Accounting, Director	Director/Board Member
Biography: Mr. Akifumi Ujita has been serving as Executive Officer, Chief Director of Administration, Director of Accounting and Director in SAKATA SEED CORPORATION since August 2011. He joined the Company in May 2009. Age: 55
Makoto Watanabe	Director	Director/Board Member

Executives

Name	Title	Function
Hiroshi Sakata	President, Executive President, Representative Director	President
Biography: Mr. Hiroshi Sakata has been serving as President, Executive President and Representative Director in SAKATA SEED CORPORATION since June 2007. He joined the Company in May 1981. His previous titles include Manager of President's Office, Director of Materials, Managing Director and Chief Director of Administration in the Company. He used to work for a bank that is under the new name, Mizuho Bank, Ltd. and two subsidiaries. Age: 60
Hiroshi Arakawa	Senior Managing Director, Senior Managing Executive Officer	Managing Director
Biography: Mr. Hiroshi Arakawa has been serving as Senior Managing Director and Senior Managing Executive Officer in SAKATA SEED CORPORATION since July 2009. He joined the Company in April 1969. His previous titles include Managing Director, Managing Executive Officer, Chief Director of Research and Chief Director of Administration in the Company. Age: 66
Araka Awa	Managing Director	Managing Director
Makoto Ohta	Managing Director, Managing Executive Officer	Managing Director
Biography: Mr. Makoto Ohta has been serving as Managing Director and Managing Executive Office in SAKATA SEED CORPORATION since July 2009. He joined the Company in July 1990. His previous titles include Senior Managing Director, Senior Managing Executive Officer, Chief Director of Administration, Director of Accounting, Director of Overseas Flower Sales and Chief Director of Overseas Sales in the Compant. He used to work for a bank that is under the new name The Bank of Tokyo-Mitsubishi UFJ, Ltd. and a subsidiary. Age: 63
Masamitsu Sejima	Executive Officer-Administration	Administration Executive
Yoshinobu Sato	Co-Auditor	Finance Executive
Shuitsu Honda	Executive Officer, Chief Director of Domestic Retail Sales, Director	Sales Executive
Biography: Mr. Shuitsu Honda has benn serving as Executive Officer, Chief Director of Domestic Retail Sales and Director in SAKATA SEED CORPORATION since August 2011. He joined the Company in April 1987. His previous titles include Senior Director of Flower and Director of Domestic Sales Operation in the Company. Age: 49
Hideto Kaneko	Executive Officer, Chief Director of Overseas Sales, Director	Sales Executive
Biography: Mr. Hideto Kaneko has been serving as Executive Officer, Chief Director of Overseas Sales and Director in SAKATA SEED CORPORATION since August 2011. He joined the Company in April 1990. His previous titles include Director of Overseas Sales, Director of Overseas Vegetable Sale and Director of Overseas Flower Sales in the Company. He used to work for a subsidiary, Sakata Seed America, Inc. Age: 50
Tatsuji Kuroki	Executive Officer, Deputy Chief Director of Domestic Whole Sales, Director of Domestic Sales Operation, Manager of Eastern Japan Office	Sales Executive
Takaaki Miura	Executive Officer, Senior Director of Flower, Director of Overseas Flower Sales	Sales Executive
Masatoshi Sawamura	Director-Sales	Sales Executive
Risho Uchiyama	Executive Officer, Chief Director of Domestic Whole Sales, Director	Sales Executive
Biography: Mr. Risho Uchiyama has been serving as Executive Officer, Chief Director of Domestic Whole Sales and Director in SAKATA SEED CORPORATION since July 2012. He joined the Company in April 1984. His previous titles include Manager of Fukuoka Sales Center, Senior Director of Vegetable, Deputy Chief Director of Domestic Wholesale Sales, Senior Director of Material and Manager of Material Center in Hanezawa Business Center in the Company. Age: 50
Mitsuo Enda	Executive Officer	Other
Kazuro Kuroiwa	Executive Officer, Manager of Business Planning Office	Other
Katsunori Maniwa	Executive Officer	Other
Koichi Matsumoto	Executive Officer, Chief Director of Production & Logistics	Other
Seiji Miyazaki	Executive Officer, Kimitsu Seed Cultivation Plant Manager	Other

Significant Developments

Sakata Seed Corporation Raises Consolidated Full-year Outlook for FY 2012

Jul 06, 2012

Sakata Seed Corporation announced that it has raised its consolidated full-year outlook for revenue from JPY 46,000 million to JPY 46,980 million, operating profit from JPY 2,100 million to JPY 2,650 million, ordinary profit from JPY 2,200 million to JPY 2,950 million, net profit from JPY 1,000 million to JPY 1,950 million and earning per share from JPY 22.22 to JPY 43.32, for the fiscal year ended May 2012. This is due to the increased sales, the good performance of overseas-based subsidiaries, as well as the cost reduction, among others.

Sakata Seed Corporation Lowers FY 2012 Outlook

Jan 13, 2012

Sakata Seed Corporation announced that it has lowered its consolidated full-year outlook for revenue from JPY 47,400 million to JPY 46,000 million, operating profit from JPY 2,800 million to JPY 2,100 million, ordinary profit from JPY 3,100 million to JPY 2,200 million, net profit from JPY 2,100 million to JPY 1,000 million and earning per share from JPY 45.97 to JPY 22.22 for the fiscal year ending May 31, 2012.

Sakata Seed Corporation Lowers FY 2012 Outlook

Jan 13, 2012

Sakata Seed Corporation announced that it has lowered its consolidated full-year outlook for revenue from JPY 47,400 million to JPY 46,000 million, operating profit from JPY 2,800 million to JPY 2,100 million, ordinary profit from JPY 3,100 million to JPY 2,200 million, net profit from JPY 2,100 million to JPY 1,000 million and earning per share from JPY 45.97 to JPY 22.22 for the fiscal year ending May 31, 2012.

Annual Income Statement

Financials in: USD (mil)

Except for share items (millions) and per share items (actual units)

Financial Glossary

	31-May-2012	31-May-2011	31-May-2010	31-May-2009	31-May-2008
Period Length	12 Months	12 Months	12 Months	12 Months	12 Months
UpdateType/Date	Updated Normal 31-May-2012	Updated Normal 31-May-2011	Updated Normal 31-May-2010	Updated Normal 31-May-2009	Updated Normal 31-May-2008
Filed Currency	JPY	JPY	JPY	JPY	JPY
Exchange Rate (Period Average)	78.698065	83.931161	92.075644	99.54541	111.586981
Auditor	KPMG AZSA LLC	KPMG LLP	KPMG LLP	KPMG LLP	KPMG LLP
Auditor Opinion	Unqualified	Unqualified	Unqualified	Unqualified with Explanation	Unqualified
Revenue	0.0	0.0	0.0	0.0	0.0
Other Revenue	597.1	561.9	505.2	455.6	419.2
Other Revenue, Total	597.1	561.9	505.2	455.6	419.2
Total Revenue	597.1	561.9	505.2	455.6	419.2
Cost of Revenue	304.5	278.8	263.5	242.2	215.3
Cost of Revenue, Total	304.5	278.8	263.5	242.2	215.3
Gross Profit	-304.5	-278.8	-263.5	-242.2	-215.3
Selling/General/Administrative Expense	129.0	75.9	69.3	63.4	63.3
Labor & Related Expense	104.4	93.7	86.7	78.6	74.8
Advertising Expense	10.8	9.8	9.8	9.1	7.7
Total Selling/General/Administrative Expenses	244.2	179.4	165.8	151.1	145.8
Research & Development	-	46.6	40.3	36.7	31.5
Depreciation	15.7	18.6	17.3	16.2	14.8
Amortization of Acquisition Costs	0.0	0.0	-0.1	-0.2	-0.2
Depreciation/Amortization	15.7	18.6	17.3	16.0	14.7
Litigation	-	0.0	0.8	0.0	-
Impairment-Assets Held for Use	1.8	6.6	1.0	4.7	1.2
Impairment-Assets Held for Sale	4.8	9.1	3.6	9.4	3.8
Other Unusual Expense (Income)	0.7	4.1	0.5	1.5	0.3
Unusual Expense (Income)	7.3	19.8	5.9	15.6	5.3
Total Operating Expense	571.7	543.2	492.8	461.6	412.7
Operating Income	25.3	18.8	12.4	-6.0	6.6
Interest Expense - Non-Operating	-0.8	-0.9	-0.8	-1.0	-1.4
Interest Expense, Net Non-Operating	-0.8	-0.9	-0.8	-1.0	-1.4
Interest Income - Non-Operating	1.5	1.4	1.6	2.7	2.1
Investment Income - Non-Operating	0.4	2.0	2.6	-9.0	-1.8
Interest/Investment Income - Non-Operating	2.0	3.5	4.2	-6.4	0.3
Interest Income (Expense) - Net Non-Operating Total	1.2	2.6	3.4	-7.3	-1.1
Gain (Loss) on Sale of Assets	0.2	0.1	0.2	0.6	0.7
Other Non-Operating Income (Expense)	3.0	2.6	2.8	2.0	1.8
Other, Net	3.0	2.6	2.8	2.0	1.8
Income Before Tax	29.8	24.2	18.8	-10.7	8.0
Total Income Tax	5.7	8.3	7.8	6.2	5.4
Income After Tax	24.1	15.8	11.0	-17.0	2.6
Minority Interest	0.1	-0.1	-0.1	-0.2	0.0
Net Income Before Extraord Items	24.2	15.8	10.9	-17.1	2.6
Net Income	24.2	15.8	10.9	-17.1	2.6
Miscellaneous Earnings Adjustment	0.0	0.0	0.0	0.0	0.0
Total Adjustments to Net Income	0.0	0.0	0.0	0.0	0.0
Income Available to Common Excl Extraord Items	24.2	15.7	10.9	-17.2	2.6
Income Available to Common Incl Extraord Items	24.2	15.7	10.9	-17.2	2.6
Basic/Primary Weighted Average Shares	45.0	45.7	45.9	49.2	49.5
Basic EPS Excl Extraord Items	0.54	0.34	0.24	-0.35	0.05
Basic/Primary EPS Incl Extraord Items	0.54	0.34	0.24	-0.35	0.05
Dilution Adjustment	-	0.0	0.0	0.0	0.0
Diluted Net Income	24.2	15.7	10.9	-17.2	2.6
Diluted Weighted Average Shares	45.0	45.7	45.9	49.2	49.5
Diluted EPS Excl Extraord Items	0.54	0.34	0.24	-0.35	0.05
Diluted EPS Incl Extraord Items	0.54	0.34	0.24	-0.35	0.05
Dividends per Share - Common Stock Primary Issue	0.25	0.24	0.22	0.10	0.18
Gross Dividends - Common Stock	11.4	10.8	10.0	4.8	8.9
Interest Expense, Supplemental	0.8	0.9	0.8	1.0	1.4
Depreciation, Supplemental	15.7	22.5	21.1	20.0	18.5
Total Special Items	7.1	19.6	5.6	14.9	4.4
Normalized Income Before Tax	36.8	43.8	24.4	4.1	12.4
Effect of Special Items on Income Taxes	1.4	6.7	2.3	5.3	1.6
Inc Tax Ex Impact of Sp Items	7.0	15.1	10.1	11.5	7.0
Normalized Income After Tax	29.8	28.7	14.3	-7.4	5.4
Normalized Inc. Avail to Com.	29.9	28.6	14.1	-7.5	5.4
Basic Normalized EPS	0.66	0.63	0.31	-0.15	0.11
Diluted Normalized EPS	0.66	0.63	0.31	-0.15	0.11
Amort of Acquisition Costs, Supplemental	0.0	0.0	-0.1	-0.2	-0.2
Advertising Expense, Supplemental	10.8	9.8	9.8	9.1	7.7
Research & Development Exp, Supplemental	-	46.6	40.3	36.7	31.5
Reported Operating Profit	32.6	38.5	18.2	11.9	11.7
Reported Ordinary Profit	36.8	40.6	19.9	6.8	12.6
Normalized EBIT	32.6	38.5	18.3	9.6	11.8
Normalized EBITDA	48.3	61.0	39.3	29.4	30.2
Current Tax - Total	8.9	-	-	-	-
Current Tax - Total	8.9	-	-	-	-
Deferred Tax - Total	-3.2	-	-	-	-
Deferred Tax - Total	-3.2	-	-	-	-
Income Tax - Total	5.7	-	-	-	-
Interest Cost - Domestic	0.7	0.7	0.7	0.6	0.6
Service Cost - Domestic	5.1	3.6	3.8	3.1	2.9
Prior Service Cost - Domestic	0.0	0.0	0.0	0.0	0.0
Expected Return on Assets - Domestic	-0.4	-0.4	-0.3	-0.4	-0.4
Actuarial Gains and Losses - Domestic	0.6	0.8	0.6	0.1	0.0
Domestic Pension Plan Expense	6.0	4.8	4.7	3.4	3.0
Total Pension Expense	6.0	4.8	4.7	3.4	3.0
Discount Rate - Domestic	2.00%	2.00%	2.00%	2.00%	2.00%
Expected Rate of Return - Domestic	2.00%	2.00%	2.00%	2.00%	2.00%
Total Plan Interest Cost	0.7	0.7	0.7	0.6	0.6
Total Plan Service Cost	5.1	3.6	3.8	3.1	2.9
Total Plan Expected Return	-0.4	-0.4	-0.3	-0.4	-0.4

Annual Balance Sheet

Financials in: USD (mil)

Financial Glossary

	31-May-2012	31-May-2011	31-May-2010	31-May-2009	31-May-2008
UpdateType/Date	Updated Normal 31-May-2012	Updated Normal 31-May-2011	Updated Normal 31-May-2010	Updated Normal 31-May-2009	Updated Normal 31-May-2008
Filed Currency	JPY	JPY	JPY	JPY	JPY
Exchange Rate	78.981276	81.24	91.035	95.455	105.565
Auditor	KPMG AZSA LLC	KPMG LLP	KPMG LLP	KPMG LLP	KPMG LLP
Auditor Opinion	Unqualified	Unqualified	Unqualified	Unqualified with Explanation	Unqualified
Cash & Equivalents	172.9	162.9	136.5	106.8	131.2
Short Term Investments	0.0	0.4	3.6	7.7	0.1
Cash and Short Term Investments	172.9	163.2	140.2	114.5	131.2
Provision for Doubtful Accounts	-3.9	-3.6	-2.5	-2.7	-1.9
Trade Accounts Receivable - Net	-3.9	-3.6	-2.5	-2.7	-1.9
Notes Receivable - Short Term	160.9	156.0	140.1	133.8	123.4
Total Receivables, Net	157.0	152.4	137.6	131.0	121.5
Inventories - Finished Goods	202.6	187.3	163.6	156.2	152.0
Inventories - Work In Progress	14.7	15.4	10.6	11.4	9.5
Inventories - Raw Materials	23.4	22.4	20.6	20.6	19.3
Total Inventory	240.7	225.1	194.7	188.2	180.8
Deferred Income Tax - Current Asset	14.3	13.4	9.5	6.9	5.0
Other Current Assets	26.2	29.4	23.5	19.2	21.1
Other Current Assets, Total	40.5	42.9	33.0	26.0	26.1
Total Current Assets	611.2	583.6	505.4	459.7	459.6
Land/Improvements	175.5	170.8	154.2	146.0	137.4
Machinery/Equipment	444.3	426.6	378.2	356.7	332.9
Construction in Progress	4.0	4.5	8.6	4.0	2.8
Other Property/Plant/Equipment	31.6	29.5	26.3	24.9	19.6
Property/Plant/Equipment - Gross	655.4	631.4	567.3	531.7	492.8
Accumulated Depreciation	-323.9	-306.6	-269.2	-246.0	-217.6
Property/Plant/Equipment - Net	331.5	324.8	298.1	285.7	275.2
Intangibles, Net	11.3	8.9	16.0	19.2	14.4
LT Investment - Affiliate Companies	0.1	0.1	0.1	-	-
LT Investments - Other	89.7	95.5	107.9	110.8	177.7
Long Term Investments	89.8	95.6	108.0	110.8	177.7
Note Receivable - Long Term	2.2	2.9	3.0	0.1	0.1
Deferred Income Tax - Long Term Asset	6.1	5.2	6.2	9.5	1.3
Restricted Cash - Long Term	-	-	0.0	3.1	2.8
Other Long Term Assets	5.0	4.6	5.0	8.6	8.8
Other Long Term Assets, Total	11.1	9.8	11.3	21.3	12.9
Total Assets	1,057.2	1,025.7	941.8	896.7	939.8
Accounts Payable	39.9	36.1	26.7	29.1	31.2
Accrued Expenses	0.1	0.1	0.1	0.1	0.0
Notes Payable/Short Term Debt	21.5	12.1	17.7	34.0	26.9
Current Portion - Long Term Debt/Capital Leases	-	1.6	-	-	-
Income Taxes Payable	4.2	6.9	3.9	2.9	1.8
Deferred Income Tax - Current Liability	0.4	0.6	0.4	0.2	0.2
Other Current Liabilities	49.3	43.1	44.9	41.5	55.3
Other Current liabilities, Total	53.8	50.6	49.2	44.7	57.3
Total Current Liabilities	115.4	100.5	93.7	107.9	115.4
Long Term Debt	1.6	11.1	11.1	0.4	0.4
Total Long Term Debt	1.6	11.1	11.1	0.4	0.4
Total Debt	23.1	24.7	28.8	34.4	27.2
Deferred Income Tax - LT Liability	0.7	2.5	1.9	2.1	5.9
Deferred Income Tax	0.7	2.5	1.9	2.1	5.9
Minority Interest	1.1	1.2	1.0	0.9	0.7
Pension Benefits - Underfunded	23.8	21.7	19.3	16.3	15.5
Other Long Term Liabilities	10.4	12.0	11.3	11.6	5.2
Other Liabilities, Total	34.3	33.7	30.6	27.9	20.7
Total Liabilities	153.1	149.0	138.3	139.2	143.1
Common Stock	170.9	166.2	148.3	141.4	127.9
Common Stock	170.9	166.2	148.3	141.4	127.9
Additional Paid-In Capital	137.0	133.2	118.9	113.4	102.5
Retained Earnings (Accumulated Deficit)	717.1	684.8	606.7	610.5	574.9
Treasury Stock - Common	-56.6	-55.0	-36.6	-70.0	-19.9
Unrealized Gain (Loss)	-0.1	0.9	1.7	1.7	23.0
Translation Adjustment	-64.4	-53.4	-35.5	-39.5	-11.8
Other Equity	0.0	-	-	-	-
Other Equity, Total	-64.4	-53.4	-35.5	-39.5	-11.8
Total Equity	904.1	876.7	803.5	757.6	796.6
Total Liabilities & Shareholders’ Equity	1,057.2	1,025.7	941.7	896.7	939.8
Shares Outstanding - Common Stock Primary Issue	45.0	45.0	45.9	45.9	49.5
Total Common Shares Outstanding	45.0	45.0	45.9	45.9	49.5
Treasury Shares - Common Stock Primary Issue	3.4	3.4	2.5	5.0	1.4
Employees	1,923	1,850	1,825	1,823	1,724
Number of Common Shareholders	33,388	32,528	32,249	27,079	25,278
Total Long Term Debt, Supplemental	12.6	11.2	11.2	0.4	1.1
Long Term Debt Maturing within 1 Year	11.0	0.1	0.1	0.0	0.8
Long Term Debt Maturing in Year 2	1.4	10.9	0.1	0.1	0.1
Long Term Debt Maturing in Year 3	0.1	0.1	10.9	0.1	0.0
Long Term Debt Maturing in Year 4	0.0	0.1	0.1	0.1	0.0
Long Term Debt Maturing in Year 5	-	0.0	0.1	0.1	0.0
Long Term Debt Maturing in 2-3 Years	1.5	11.0	11.0	0.1	0.2
Long Term Debt Maturing in 4-5 Years	0.0	0.1	0.1	0.1	0.1
Long Term Debt Matur. in Year 6 & Beyond	0.0	0.0	0.0	0.1	0.1
Total Capital Leases, Supplemental	4.8	4.8	3.7	3.2	-
Capital Lease Payments Due in Year 1	1.9	1.5	1.2	1.0	-
Capital Lease Payments Due in Year 2	1.4	1.5	0.9	0.7	-
Capital Lease Payments Due in Year 3	0.9	0.9	0.8	0.6	-
Capital Lease Payments Due in Year 4	0.6	0.5	0.5	0.5	-
Capital Lease Payments Due in Year 5	0.0	0.3	0.2	0.3	-
Capital Lease Payments Due in 2-3 Years	2.3	2.4	1.7	1.3	-
Capital Lease Payments Due in 4-5 Years	0.6	0.8	0.7	0.8	-
Cap. Lease Pymts. Due in Year 6 & Beyond	0.0	0.0	0.1	0.2	-
Pension Obligation - Domestic	49.8	41.2	38.7	35.5	32.6
Plan Assets - Domestic	27.3	21.1	19.1	18.6	20.8
Funded Status - Domestic	-22.4	-20.1	-19.6	-16.8	-11.7
Total Funded Status	-22.4	-20.1	-19.6	-16.8	-11.7
Discount Rate - Domestic	2.00%	2.00%	2.00%	2.00%	2.00%
Expected Rate of Return - Domestic	2.00%	2.00%	2.00%	2.00%	2.00%
Prepaid Benefits - Domestic	0.4	-	-	-	-
Accrued Liabilities - Domestic	-18.5	-17.7	-16.1	-13.9	-13.5
Other Assets, Net - Domestic	4.3	2.3	3.5	2.9	-1.7
Net Assets Recognized on Balance Sheet	-13.9	-15.4	-12.7	-11.0	-15.2
Total Plan Obligations	49.8	41.2	38.7	35.5	32.6
Total Plan Assets	27.3	21.1	19.1	18.6	20.8

Annual Cash Flows

Financials in: USD (mil)

Financial Glossary

	31-May-2012	31-May-2011	31-May-2010	31-May-2009	31-May-2008
Period Length	12 Months	12 Months	12 Months	12 Months	12 Months
UpdateType/Date	Updated Normal 31-May-2012	Updated Normal 31-May-2011	Updated Normal 31-May-2010	Updated Normal 31-May-2009	Updated Normal 31-May-2008
Filed Currency	JPY	JPY	JPY	JPY	JPY
Exchange Rate (Period Average)	78.698065	83.931161	92.075644	99.54541	111.586981
Auditor	KPMG AZSA LLC	KPMG LLP	KPMG LLP	KPMG LLP	KPMG LLP
Auditor Opinion	Unqualified	Unqualified	Unqualified	Unqualified with Explanation	Unqualified
Net Income/Starting Line	29.8	24.1	18.8	-10.8	8.0
Depreciation	20.3	22.5	21.1	20.0	18.5
Depreciation/Depletion	20.3	22.5	21.1	20.0	18.5
Amortization of Acquisition Costs	0.0	0.0	-0.1	-0.2	-0.2
Amortization	0.0	0.0	-0.1	-0.2	-0.2
Unusual Items	6.9	12.6	-0.1	17.5	6.2
Other Non-Cash Items	-3.5	-2.3	-1.3	-1.8	-3.1
Non-Cash Items	3.4	10.2	-1.4	15.7	3.1
Accounts Receivable	-3.9	-3.3	0.1	-6.1	-3.5
Inventories	-15.3	-14.6	0.7	-2.4	-4.7
Accounts Payable	4.3	8.9	-4.7	0.0	-4.3
Payable/Accrued	9.6	-6.0	0.8	-14.2	0.0
Other Operating Cash Flow	-9.9	0.6	-0.7	4.8	13.6
Changes in Working Capital	-15.1	-14.4	-3.7	-17.9	1.1
Cash from Operating Activities	38.4	42.5	34.7	6.8	30.6
Purchase of Fixed Assets	-19.1	-18.1	-17.6	-9.3	-9.5
Purchase/Acquisition of Intangibles	-5.0	-0.5	-1.0	-6.7	-1.6
Capital Expenditures	-24.1	-18.6	-18.6	-16.0	-11.1
Sale of Fixed Assets	0.7	2.8	2.9	0.9	1.1
Sale/Maturity of Investment	21.5	34.9	36.4	112.1	45.0
Purchase of Investments	-31.9	-24.7	-25.0	-71.9	-42.5
Other Investing Cash Flow	0.9	0.0	3.1	1.3	-1.2
Other Investing Cash Flow Items, Total	-8.8	12.9	17.5	42.3	2.3
Cash from Investing Activities	-32.9	-5.7	-1.1	26.4	-8.8
Other Financing Cash Flow	-1.3	-1.1	-1.1	-0.9	0.4
Financing Cash Flow Items	-1.3	-1.1	-1.1	-0.9	0.4
Cash Dividends Paid - Common	-11.4	-11.0	-7.5	-7.5	-8.9
Total Cash Dividends Paid	-11.4	-11.0	-7.5	-7.5	-8.9
Repurchase/Retirement of Common	0.0	-13.5	0.0	-46.1	0.0
Common Stock, Net	0.0	-13.5	0.0	-46.1	0.0
Issuance (Retirement) of Stock, Net	0.0	-13.5	0.0	-46.1	0.0
Short Term Debt, Net	-1.2	-6.1	-17.7	7.2	2.9
Long Term Debt Issued	1.5	0.1	10.6	0.0	-
Long Term Debt, Net	1.5	0.1	10.6	0.0	-
Issuance (Retirement) of Debt, Net	0.3	-6.1	-7.1	7.2	2.9
Cash from Financing Activities	-12.4	-31.6	-15.7	-47.3	-5.6
Foreign Exchange Effects	-1.7	-2.7	1.5	-3.6	-1.5
Net Change in Cash	-8.7	2.5	19.4	-17.7	14.7
Net Cash - Beginning Balance	92.8	84.5	57.6	71.0	48.6
Net Cash - Ending Balance	84.1	87.0	77.0	53.3	63.3
Cash Interest Paid	0.8	1.0	0.8	0.9	1.4
Cash Taxes Paid	8.9	4.7	2.6	1.7	5.5

Annual Income Statement

Financials in: USD (mil)

Except for share items (millions) and per share items (actual units)

	31-May-2012	31-May-2011	31-May-2010	31-May-2009	31-May-2008
Period Length	12 Months	12 Months	12 Months	12 Months	12 Months
UpdateType/Date	Updated Normal 31-May-2012	Updated Normal 31-May-2011	Updated Normal 31-May-2010	Updated Normal 31-May-2009	Updated Normal 31-May-2008
Filed Currency	JPY	JPY	JPY	JPY	JPY
Exchange Rate (Period Average)	78.698065	83.931161	92.075644	99.54541	111.586981
Auditor	KPMG AZSA LLC	KPMG LLP	KPMG LLP	KPMG LLP	KPMG LLP
Auditor Opinion	Unqualified	Unqualified	Unqualified	Unqualified with Explanation	Unqualified
Net Sales	597.1	561.9	505.2	455.6	419.2
Total Revenue	597.1	561.9	505.2	455.6	419.2
Cost of Sales	304.5	278.8	263.5	239.7	215.3
Other Selling/General/Admin. Expense	105.4	-	-	-	-
Selling & Packing costs	7.4	6.8	6.3	6.2	5.4
Freight-out costs	16.1	15.3	13.4	12.4	11.6
Advertising Expenses	10.8	9.8	9.8	9.1	7.7
Provision for doubtful accounts(SGA)	0.1	1.5	0.3	1.8	0.7
Salaries	97.7	88.9	81.9	75.1	71.3
Provision for directors' bonuses	0.1	0.1	0.1	0.1	-
Accrued Retirement Expenses	5.4	4.1	4.2	3.0	2.8
Directors' Retirement Benefits	1.3	0.6	0.5	0.4	0.8
Depreciation	15.7	18.6	17.3	16.2	14.8
Research And Development Expense	-	46.6	40.3	36.7	31.5
Other SGA	-	52.3	49.3	43.0	45.7
SP Reversal G on allow.doubt.accounts	-	-	-	-	0.0
SP Insurance income(SP)	-	-	-	-	0.0
SP Accrued Retirement Benefits-Overseas	-	-	-	-	0.0
SP Fire Insurance received	-	-	-	0.0	-0.2
SP Subsidy income	-	-	-	0.0	-0.4
SP Other special gains	0.0	-0.3	-0.2	-0.4	-0.2
SP Special retirement benefits	-	-	-	0.0	0.2
SP Impairment Loss	1.8	6.6	1.0	4.7	1.2
SP L on office relocation	-	-	-	-	0.0
SP Directs' Retirement Benefits-Overseas	-	-	-	-	0.0
SP L on Valuation of LT Invest. Secs.	4.8	9.1	3.6	9.4	3.8
SP Compensation Expenses	-	-	0.0	0.3	0.3
SP Settlement package	-	0.0	0.8	0.0	-
SP L on val. of inventories	-	-	0.0	2.5	0.0
SP Other special losses	0.7	4.4	0.6	1.6	0.5
NOP Amortization-Negative Goodwill	0.0	0.0	-0.1	-0.2	-0.2
Total Operating Expense	571.7	543.2	492.8	461.6	412.7
SP G on sale of fixed assets	0.2	0.1	0.2	0.6	0.7
SP G on Sale of LT Inv. Sec.	0.0	2.2	4.5	0.0	0.0
SP G redemption of investment secs.	0.0	1.0	0.0	-	-
NOP Interest Income	1.5	1.4	1.6	2.7	2.1
NOP Dividend Income	2.7	2.6	2.3	2.8	2.5
Other Non-Operating Income (Expense)	0.0	-	-	-	-
NOP Rental Income	2.6	2.2	2.2	2.3	2.1
NOP Currency Gains	-	-	-	-	0.0
NOP Manegament G on LT inv't.secs.	-	-	-	-	0.0
Miscellaneous income	1.0	1.1	1.9	1.5	1.4
NOP Interest Expenses	-0.8	-0.9	-0.8	-1.0	-1.4
NOP Sales discount expense	-0.2	-0.1	-0.3	-0.3	-0.3
NOP Currency Losses	-2.2	-3.7	-4.2	-8.5	-3.5
NOP Manegament L on LT inv't.secs.	-	-	0.0	-3.3	-0.8
Miscellaneous loss	-0.5	-0.6	-1.1	-1.5	-1.4
Net Income Before Taxes	29.8	24.2	18.8	-10.7	8.0
Total income taxes	5.7	8.3	7.8	6.2	5.4
Income before minority interests	24.1	15.8	11.0	-17.0	2.6
Minority interests in income (loss)	0.1	-	-	-	-
Minority interests in income (loss)	-	-0.1	-0.1	-0.2	0.0
Net Income Before Extra. Items	24.2	15.8	10.9	-17.1	2.6
Net Income	24.2	15.8	10.9	-17.1	2.6
Rounding adjustment Income Statement	0.0	-	-	-	-
Rounding Adjustment	-	0.0	0.0	0.0	-
Directors' Bonus	-	-	-	-	0.0
Income Available to Com Excl ExtraOrd	24.2	15.7	10.9	-17.2	2.6
Income Available to Com Incl ExtraOrd	24.2	15.7	10.9	-17.2	2.6
Basic Weighted Average Shares	45.0	45.7	45.9	49.2	49.5
Basic EPS Excluding ExtraOrdinary Items	0.54	0.34	0.24	-0.35	0.05
Basic EPS Including ExtraOrdinary Item	0.54	0.34	0.24	-0.35	0.05
Dilution Adjustment	-	0.0	0.0	0.0	0.0
Diluted Net Income	24.2	15.7	10.9	-17.2	2.6
Diluted Weighted Average Shares	45.0	45.7	45.9	49.2	49.5
Diluted EPS Excluding ExtraOrd Items	0.54	0.34	0.24	-0.35	0.05
Diluted EPS Including ExtraOrd Items	0.54	0.34	0.24	-0.35	0.05
DPS-Common Stock	0.25	0.24	0.22	0.10	0.18
Gross Dividends - Common Stock	11.4	10.8	10.0	4.8	8.9
Normalized Income Before Taxes	36.8	43.8	24.4	4.1	12.4
Inc Tax Ex Impact of Sp Items	7.0	15.1	10.1	11.5	7.0
Normalized Income After Taxes	29.8	28.7	14.3	-7.4	5.4
Normalized Inc. Avail to Com.	29.9	28.6	14.1	-7.5	5.4
Basic Normalized EPS	0.66	0.63	0.31	-0.15	0.11
Diluted Normalized EPS	0.66	0.63	0.31	-0.15	0.11
Advertising Expense	10.8	9.8	9.8	9.1	7.7
Research And Development Expense	-	46.6	40.3	36.7	31.5
Interest Expense	0.8	0.9	0.8	1.0	1.4
Amort of Negative Goodwill	0.0	0.0	-0.1	-0.2	-0.2
Depreciation	15.7	-	-	-	-
Depreciation	-	22.5	21.1	20.0	18.5
Income taxes-current	8.9	-	-	-	-
Current Tax - Total	8.9	-	-	-	-
Income taxes-deferred	-3.2	-	-	-	-
Deferred Tax - Total	-3.2	-	-	-	-
Income Tax - Total	5.7	-	-	-	-
Reported Operating Profit	32.6	38.5	18.2	11.9	11.7
Ordinary income	36.8	40.6	19.9	6.8	12.6
Service Cost	5.1	3.6	3.8	3.1	2.9
Interest Cost	0.7	0.7	0.7	0.6	0.6
Expected Return on Plan Assets	-0.4	-0.4	-0.3	-0.4	-0.4
Actuarial Gains and Losses	0.6	0.8	0.6	0.1	0.0
Prior service cost	0.0	0.0	0.0	0.0	0.0
Domestic Pension Plan Expense	6.0	4.8	4.7	3.4	3.0
Total Pension Expense	6.0	4.8	4.7	3.4	3.0
Discount Rate(MIN)-Retirement Cost(Domes	2.00%	-	-	-	-
Discount Rate	-	2.00%	2.00%	2.00%	2.00%
Expected return on assets(MIN)-Retiremen	2.00%	-	-	-	-
Expected Rate of Return	-	2.00%	2.00%	2.00%	2.00%

Annual Balance Sheet

Financials in: USD (mil)

	31-May-2012	31-May-2011	31-May-2010	31-May-2009	31-May-2008
UpdateType/Date	Updated Normal 31-May-2012	Updated Normal 31-May-2011	Updated Normal 31-May-2010	Updated Normal 31-May-2009	Updated Normal 31-May-2008
Filed Currency	JPY	JPY	JPY	JPY	JPY
Exchange Rate	78.981276	81.24	91.035	95.455	105.565
Auditor	KPMG AZSA LLC	KPMG LLP	KPMG LLP	KPMG LLP	KPMG LLP
Auditor Opinion	Unqualified	Unqualified	Unqualified	Unqualified with Explanation	Unqualified
Cash & Deposit	172.9	162.9	136.5	106.8	131.2
Notes and accounts receivable-trade	160.9	156.0	140.1	133.8	123.4
Short-term investment securities	0.0	0.4	3.6	7.7	0.1
Merchandise & finished goods	202.6	187.3	163.6	156.2	152.0
Inventories - work-in-process	14.4	14.8	10.5	10.4	9.3
Raw materials & supplies	23.4	22.4	20.6	20.6	19.3
Expenses on unfinished projects	0.3	0.6	0.2	1.0	0.2
Defer. Tax Asset	14.3	13.4	9.5	6.9	5.0
Rounding adjustment Assets	0.0	-	-	-	-
Others	26.2	29.4	23.5	19.2	21.1
Doubt Debt Allow.	-3.9	-3.6	-2.5	-2.7	-1.9
Total current assets	611.2	583.6	505.4	459.7	459.6
Buildings and structures	331.9	321.0	286.8	271.2	251.4
Accumulated depreciation	-207.2	-196.5	-172.3	-156.4	-137.2
Machinery, equipment and vehicles	112.5	105.6	91.4	85.5	81.5
Accumulated depreciation	-91.1	-86.0	-76.2	-70.5	-64.4
Land	175.5	170.8	154.2	146.0	137.4
Constr In Progr	4.0	4.5	8.6	4.0	2.8
Other PPE	31.6	29.5	26.3	24.9	19.6
Accumulated depreciation	-25.6	-24.1	-20.7	-19.1	-16.0
Other Intangible Assets	-	-	-	-	14.4
Total intangible assets	11.3	8.9	16.0	19.2	-
Ohter investment in securities	89.7	-	-	-	-
Investment Secs.	-	95.5	107.9	110.8	177.7
Invt Secs Noncons, Asc, Affd Cos	0.1	-	-	-	-
Investment Secs.affiliates.	-	0.1	0.1	-	-
Long-term loans receivable	2.2	2.9	3.0	0.1	0.1
Deferred tax assets	6.1	5.2	6.2	9.5	1.3
LT Deposits	-	-	0.0	3.1	2.8
Other	7.2	-	-	-	-
Rounding adjustment Assets	0.0	-	-	-	-
Other Other Long Term Assets	0.0	-	-	-	-
Others	-	7.2	8.7	13.2	12.9
Allowance for doubtful accounts	-2.2	-2.6	-3.7	-4.6	-4.1
Balancing PP&E	0.0	-	-	-	-
Total Assets	1,057.2	1,025.7	941.8	896.7	939.8
Notes and accounts payable-trade	39.9	36.1	26.7	29.1	31.2
Short-term loans payable	21.5	12.1	17.7	34.0	26.9
Current portion of LT Debt.	-	0.1	-	-	-
Current portion of LT leases.	-	1.5	-	-	-
Inc. Tax Payable	4.2	6.9	3.9	2.9	1.8
Defer. Tax Liab.	0.4	0.6	0.4	0.2	0.2
Rounding adjustment Liability	0.1	-	-	-	-
Provision for directors'' bonuses	0.1	0.1	0.1	0.1	0.0
Others	49.3	43.1	44.9	41.5	55.3
Total Current Liabilities	115.4	100.5	93.7	107.9	115.4
Long-term loans payable	1.6	11.1	11.1	0.4	0.4
Total Long Term Debt	1.6	11.1	11.1	0.4	0.4
Defer. Tax Liab.	0.7	2.5	1.9	2.1	5.9
Accrued Retirem.	18.5	17.7	16.1	13.9	13.5
Provision for directors'' retirement ben	5.3	4.0	3.2	2.4	2.0
Rounding adjustment Liability	0.0	-	-	-	-
Negative Goodwill	0.0	0.0	0.1	0.1	0.2
Others	10.4	12.0	11.2	11.5	5.0
Minor. Interests	1.1	1.2	1.0	0.9	0.7
Total Liabilities	153.1	149.0	138.3	139.2	143.1
Other Equity	0.0	-	-	-	-
Common Stock	170.9	166.2	148.3	141.4	127.9
Paid-in Capital	137.0	133.2	118.9	113.4	102.5
Retained Earning	717.1	684.8	606.7	610.5	574.9
Treasury Stock	-56.6	-55.0	-36.6	-70.0	-19.9
Valuation difference on available-for-sa	-0.1	0.9	1.7	1.7	23.0
Translation Adj.	-64.4	-53.4	-35.5	-39.5	-11.8
Total net assets	904.1	876.7	803.5	757.6	796.6
Total liabilities and net assets	1,057.2	1,025.7	941.7	896.7	939.8
S/O-Common Stock	45.0	45.0	45.9	45.9	49.5
Total Common Shares Outstanding	45.0	45.0	45.9	45.9	49.5
T/S-Common Stock	3.4	3.4	2.5	5.0	1.4
Full-Time Employees	1,923	1,850	1,825	1,823	1,724
Total Number of Shareholders	33,388	-	-	-	-
Number of Common Shareholders	-	32,528	32,249	27,079	25,278
LT Debts Maturing within 1yr.	11.0	0.1	0.1	0.0	0.8
Lns Pble Maturing over a Yr within 2 Yrs	1.4	-	-	-	-
LT Debts Maturing within 2yr.	-	10.9	0.1	0.1	0.1
Lns Pble Maturg over 2 Yrs within 3 Yrs	0.1	-	-	-	-
LT Debts Maturing within 3yr.	-	0.1	10.9	0.1	0.0
Lns Pble Maturg over 3 Yrs within 4 Yrs	0.0	-	-	-	-
LT Debts Maturing within 4yr.	-	0.1	0.1	0.1	0.0
LT Debts Maturing within 5yr.	-	0.0	0.1	0.1	0.0
Long-term debt remaining	0.0	-	-	-	-
Remaining	-	-	0.0	0.1	0.1
Total Long Term Debt, Supplemental	12.6	11.2	11.2	0.4	1.1
Capital lease payments due within 1 year	1.9	1.5	1.2	1.0	-
Cap Lease Maturg over a Yr within 2 Yrs	1.4	-	-	-	-
Capital lease payments due in year 2	-	1.5	0.9	0.7	-
Cap Lease Maturg over 2 Yr within 3 Yrs	0.9	-	-	-	-
Capital lease payments due in year 3	-	0.9	0.8	0.6	-
Cap Lease Maturg over 3 Yr within 4 Yrs	0.6	-	-	-	-
Capital lease payments due in year 4	-	0.5	0.5	0.5	-
Cap Lease Maturg over 4 Yr within 5 Yrs	0.0	-	-	-	-
Capital lease payments due in year 5	-	0.3	0.2	0.3	-
Capital Lease remaining	0.0	-	-	-	-
Capital lease - remaining maturities	-	0.0	0.1	0.2	-
Total Capital Leases	4.8	4.8	3.7	3.2	-
Pension Obligation	49.8	41.2	38.7	35.5	32.6
Fair Value of Plan Assets	27.3	21.1	19.1	18.6	20.8
Funded Status	-22.4	-20.1	-19.6	-16.8	-11.7
Total Funded Status	-22.4	-20.1	-19.6	-16.8	-11.7
Discount Rate	2.00%	2.00%	2.00%	2.00%	2.00%
Expected Rate of Return	2.00%	2.00%	2.00%	2.00%	2.00%
Prepaid Pension Expense	0.4	-	-	-	-
Unrecognized Actuarial Gains and Losses	4.4	2.4	3.5	3.0	-1.6
Unrecognized prior service cost	-0.1	-0.1	-0.1	-0.1	-0.1
Reserve for Accrued Retirement Benefits	-18.5	-17.7	-16.1	-13.9	-13.5
Net Assets Recognized on Balance Sheet	-13.9	-15.4	-12.7	-11.0	-15.2

Annual Cash Flows

Financials in: USD (mil)

	31-May-2012	31-May-2011	31-May-2010	31-May-2009	31-May-2008
Period Length	12 Months	12 Months	12 Months	12 Months	12 Months
UpdateType/Date	Updated Normal 31-May-2012	Updated Normal 31-May-2011	Updated Normal 31-May-2010	Updated Normal 31-May-2009	Updated Normal 31-May-2008
Filed Currency	JPY	JPY	JPY	JPY	JPY
Exchange Rate (Period Average)	78.698065	83.931161	92.075644	99.54541	111.586981
Auditor	KPMG AZSA LLC	KPMG LLP	KPMG LLP	KPMG LLP	KPMG LLP
Auditor Opinion	Unqualified	Unqualified	Unqualified	Unqualified with Explanation	Unqualified
Income Before Tax	29.8	24.1	18.8	-10.8	8.0
Depreciation	20.3	22.5	21.1	20.0	18.5
Amort.-Negative Goodwill	0.0	0.0	-0.1	-0.2	-0.2
Increase (decrease) in allowance for dou	0.9	0.7	-0.8	2.9	-0.3
Interest & Dividend	-4.2	-4.1	-3.9	-5.5	-4.6
Interest Expenses	0.8	0.9	0.8	1.0	1.4
Foreign exchange losses (gains)	-0.1	0.9	1.8	2.7	0.2
Impairment Loss	1.8	6.6	1.0	4.7	1.2
Loss (gain) on valuation of investment s	4.8	9.1	3.6	9.4	3.8
Loss (gain) on sales of investment secur	0.3	-2.2	-4.5	0.0	0.3
Loss (gain) on redemption of investment	0.0	-1.0	0.0	-	-
G/L on Management of LT Inv't in Secs.	-	0.0	-0.2	3.3	0.8
Decrease (increase) in notes and account	-3.9	-3.3	0.1	-6.1	-3.5
Decrease (increase) in inventories	-15.3	-14.6	0.7	-2.4	-4.7
Increase (decrease) in notes and account	4.3	8.9	-4.7	0.0	-4.3
Increase (decrease) in accounts payable-	9.6	-6.0	0.8	-14.2	0.0
Other, net	-5.2	1.6	-0.3	-1.0	16.2
Interest & Dividend Received	4.1	4.1	3.9	5.5	4.6
Interest expenses paid	-0.8	-1.0	-0.8	-0.9	-1.4
Income taxes paid	1.5	1.3	1.8	0.6	0.0
Taxes Paid	-10.4	-6.0	-4.4	-2.3	-5.5
Net cash provided by (used in) operating	38.4	42.5	34.7	6.8	30.6
Time Deposit Made	-29.4	-21.8	-20.1	-68.2	-29.3
Time Deposit Matured	14.9	14.1	19.5	86.0	39.3
Securities Bought	-	0.0	-3.3	0.0	-2.1
Securities Sold	-	0.0	0.4	0.0	2.1
Purchase of property, plant and equipmen	-19.1	-18.1	-17.6	-9.3	-9.5
Proceeds from sales of property, plant a	0.7	2.8	2.9	0.9	1.1
Intangibles Bought	-5.0	-0.5	-1.0	-6.7	-1.6
Redemption of marketable sec.	0.4	3.9	7.8	0.0	0.0
Inv. Sec. Bought	-2.6	-2.9	-1.6	-3.7	-11.0
Inv. Sec. Sold	2.5	14.5	8.2	0.0	1.4
Inv. Sec. Redeemed	3.8	2.4	0.5	26.1	2.1
Purchase of Subsidiaries' Shares	-	-	-	0.0	0.0
Rounding adjustment Cash flow	0.0	-	-	-	-
Loans Made	-	-	-	0.0	0.0
Loans Returned	-	-	-	0.0	0.1
Proceeds from maturity of insurance fund	0.0	0.7	4.3	0.0	-
Other, net	0.9	-0.7	-1.2	1.3	-1.2
Net cash provided by (used in) investing	-32.9	-5.7	-1.1	26.4	-8.8
Net increase (decrease) in short-term lo	-1.2	-6.1	-17.7	7.2	2.9
Rounding adjustment Cash flow	0.0	-	-	-	-
Proceeds from long-term loans payable	1.5	0.1	10.6	0.0	-
Treasury Repurchased	0.0	-13.5	0.0	-46.1	0.0
Dividend Paid	-11.4	-11.0	-7.5	-7.5	-8.9
Other, net	-1.3	-1.1	-1.1	-0.9	0.4
Net cash provided by (used in) financing	-12.4	-31.6	-15.7	-47.3	-5.6
Foreign Exchange Effects	-1.7	-2.7	1.5	-3.6	-1.5
Net increase (decrease) in cash and cash	-8.7	2.5	19.4	-17.7	14.7
Net Cash - Beginning Balance	92.8	84.5	57.6	71.0	48.6
Net Cash - Ending Balance	84.1	87.0	77.0	53.3	63.3
Interest expenses paid	0.8	1.0	0.8	0.9	1.4
Cash Taxes Paid	8.9	4.7	2.6	1.7	5.5

Financial Health

Financials in: USD (mil)

Except for share items (millions) and per share items (actual units)

Key Indicators USD (mil)
Â	Quarter Ending 31-May-2012	Quarter Ending Yr Ago	Annual Year End 31-May-2012	1 Year Growth	3 Year Growth	5 Year Growth
Total Revenue1	188.2	0.98%	597.1	-0.38%	1.19%	0.14%
Operating Income1	-5.9	-	25.3	26.38%	-	100.18%
Income Available to Common Excl Extraord Items1	4.7	-	24.2	44.09%	-	57.86%
Basic EPS Excl Extraord Items1	0.11	-	0.54	46.24%	-	60.89%
Capital Expenditures2	24.1	-	24.1	21.52%	6.06%	5.06%
Cash from Operating Activities2	38.4	-	38.4	-15.34%	64.29%	34.31%
Free Cash Flow	14.2	-	14.2	-44.02%	-	-
Total Assets3	1,057.2	0.21%	1,057.2	0.21%	-0.82%	-4.07%
Total Liabilities3	153.1	-0.09%	153.1	-0.09%	-3.09%	-3.81%
Total Long Term Debt3	1.6	-86.08%	1.6	-86.08%	51.43%	73.29%
Employees3	-	-	1923	3.95%	1.80%	2.36%
Total Common Shares Outstanding3	45.0	0.00%	45.0	0.00%	-0.67%	-1.88%
1-ExchangeRate: JPY to USD Average for Period	81.163683	Â	78.698065	Â	Â	Â
2-ExchangeRate: JPY to USD Average for Period	78.698065	Â	78.698065	Â	Â	Â
3-ExchangeRate: JPY to USD Period End Date	78.981276	Â	78.981276	Â	Â	Â

Key Ratios
Â	31-May-2012	31-May-2011	31-May-2010	31-May-2009	31-May-2008
Profitability
Operating Margin	4.24%	3.34%	2.45%	-1.32%	1.56%
Pretax Margin	4.98%	4.30%	3.72%	-2.36%	1.92%
Net Profit Margin	4.05%	2.80%	2.15%	-3.77%	0.63%
Financial Strength
Current Ratio	5.30	5.80	5.39	4.26	3.98
Long Term Debt/Equity	0.00	0.01	0.01	0.00	0.00
Total Debt/Equity	0.03	0.03	0.04	0.05	0.03
Management Effectiveness
Return on Assets	2.27%	1.57%	1.18%	-1.83%	0.29%
Return on Equity	2.67%	1.83%	1.38%	-2.19%	0.34%
Efficiency
Receivables Turnover	3.79	3.79	3.72	3.58	3.64
Inventory Turnover	1.28	1.30	1.36	1.30	1.24
Asset Turnover	0.56	0.56	0.54	0.49	0.46

Market Valuation USD (mil)
P/E (TTM)	24.09	.	Enterprise Value2	475.3
Price/Sales (TTM)	1.05	.	Enterprise Value/Revenue (TTM)	0.80
Price/Book (MRQ)	0.64	.	Enterprise Value/EBITDA (TTM)	11.62
Market Cap as of 21-Sep-20121	629.3	.
1-ExchangeRate: JPY to USD on 21-Sep-2012	78.308298
2-ExchangeRate: JPY to USD on 31-May-2012	78.981276

Annual Ratios

Financials in: USD (mil)

Except for share items (millions) and per share items (actual units)

	31-May-2012	31-May-2011	31-May-2010	31-May-2009	31-May-2008
Financial Strength
Current Ratio	5.30	5.80	5.39	4.26	3.98
Quick/Acid Test Ratio	2.86	3.14	2.96	2.28	2.19
Working Capital1	495.8	483.1	411.8	351.9	344.1
Long Term Debt/Equity	0.00	0.01	0.01	0.00	0.00
Total Debt/Equity	0.03	0.03	0.04	0.05	0.03
Long Term Debt/Total Capital	0.00	0.01	0.01	0.00	0.00
Total Debt/Total Capital	0.02	0.03	0.03	0.04	0.03
Payout Ratio	47.33%	69.21%	91.76%	-28.78%	336.67%
Effective Tax Rate	19.13%	34.39%	41.45%	-	67.26%
Total Capital1	927.2	901.4	832.3	792.0	823.9
Efficiency
Asset Turnover	0.56	0.56	0.54	0.49	0.46
Inventory Turnover	1.28	1.30	1.36	1.30	1.24
Days In Inventory	284.08	280.89	268.43	280.48	293.86
Receivables Turnover	3.79	3.79	3.72	3.58	3.64
Days Receivables Outstanding	96.24	96.35	98.20	101.92	100.23
Revenue/Employee2	309,374	313,818	279,995	260,639	257,047
Operating Income/Employee2	13,122	10,493	6,862	-3,436	4,022
EBITDA/Employee2	21,280	23,061	18,575	7,999	15,363
Profitability
Operating Margin	4.24%	3.34%	2.45%	-1.32%	1.56%
EBITDA Margin	6.88%	7.35%	6.63%	3.07%	5.98%
EBIT Margin	4.24%	3.34%	2.45%	-1.32%	1.56%
Pretax Margin	4.98%	4.30%	3.72%	-2.36%	1.92%
Net Profit Margin	4.05%	2.80%	2.15%	-3.77%	0.63%
R&D Expense/Revenue	-	8.29%	7.98%	8.07%	7.52%
COGS/Revenue	51.00%	49.62%	52.16%	53.15%	51.36%
SG&A Expense/Revenue	40.91%	31.93%	32.82%	33.16%	34.78%
Management Effectiveness
Return on Assets	2.27%	1.57%	1.18%	-1.83%	0.29%
Return on Equity	2.67%	1.83%	1.38%	-2.19%	0.34%
Valuation
Free Cash Flow/Share2	0.32	0.55	0.35	-0.21	0.42
Operating Cash Flow/Share 2	0.85	0.98	0.76	0.16	0.65
1-ExchangeRate: JPY to USD Period End Date	78.981276	81.24	91.035	95.455	105.565
2-ExchangeRate: JPY to USD Average for Period	78.981276	81.24	91.035	95.455	105.565

Current Market Multiples
Market Cap/Earnings (TTM)	25.91
Market Cap/Equity (MRQ)	0.69
Market Cap/Revenue (TTM)	1.05
Market Cap/EBIT (TTM)	24.73
Market Cap/EBITDA (TTM)	13.72
Enterprise Value/Earnings (TTM)	19.74
Enterprise Value/Equity (MRQ)	0.53
Enterprise Value/Revenue (TTM)	0.80
Enterprise Value/EBIT (TTM)	18.83
Enterprise Value/EBITDA (TTM)	10.45

Bottom of Form

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.52.78
UK Pound	1	Rs.85.16
Euro	1	Rs.67.78

INFORMATION DETAILS

Report Prepared by :

PRL

RATING EXPLANATIONS

RATING		STATUS	PROPOSED CREDIT LINE
>86	Aaa	Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums	Unlimited
71-85	Aa	Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums	Large
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small
11-25	Ca	Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity	Limited with full security
<10	C	Absolute credit risk exists. Caution needed to be exercised	Credit not recommended
--	NB	New Business	--

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

Financial condition (40%) Ownership background (20%) Payment record (10%)

Credit history (10%) Market trend (10%) Operational size (10%)

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.