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                 Corporate name                             K.R.S.Corporation
                 Established                                February 1, 1966                                                                       Corporate Profile: Business Strategies
                 President and representative director Naoki Okamune
                 Head office                                Keio Chofu Kojima-cho Building, 1-32-2 Kojima-cho, Chofu, Tokyo 182-0026
                 Capital stock                                 4,063.11 million
                 Number of employees                        9,518 (As of November 30, 2010 Consolidated)
                 Principal business activities              1. Warehouse Business
                                                            2. Consigned packaging, packing, and delivery of bottled/
                                                               canned products and other general goods
                                                            3. Type 1 Transport Industry
                                                            4. Intermediary transport agency
                                                            5. Motor freight
                                                            6. Customs broker
                                                            7. Sales and leasing of vehicle- and logistics-related
                                                                  machinery/equipment
                                                            8. Automotive maintenance
                                                            9. Sales of industrial and automotive fuel and oil
                                                            10. Insurance agency
                                                            11. Sales of logistics information
                                                            12. Sales of general merchandise and food products, such as fresh food,
                                                                preserved food, and processed food
                                                            13. Real estate and leasing business
                                                            14. Labor dispatch service
                                                            15. Services related to those listed above


                 Main banks                                 Sumitomo Mitsui Banking Corporation (Shinjuku Nishiguchi Branch)
                                                            Mizuho Bank, Ltd. (Chofu Senkawa Branch)
                                                            The Bank of Tokyo-Mitsubishi UFJ, Ltd. (Fuchu Branch)
                                                            Mitsubishi UFJ Trust and Banking Corporation (Head Quarter)
                                                            The Norinchukin Bank (Head Quarter)




                                                                                                                                                                   C h a l l e n g e        2 0 1 1

                 Disclaimer
                 Forward-looking statements contained in this corporate profile that are not historical facts are based on the information
                 currently available and represent the management's beliefs. Since these forward-looking statements are subject to various risks
                 and uncertainties such as economic trend, intense competition within the industry, market demand, taxes and various
                 legislations, we advise that you do not rely solely on what is provided here. Although considerable care has been taken in
                 preparing and maintaining the information and material contained on this document, the company shall not be responsible for,
                 or liable in respect of, any damage, direct or indirect, or of any nature whatsoever, resulting from the use of the information
                 contained herein. This document is not meant to be a solicitation or recommendation of investment in the company.
                 Investment decisions should be made at your own risk.




                 K.R.S. Corporation
                 Keio Chofu Kojima-cho Building, 1-32-2 Kojima-cho, Chofu, Tokyo 182-0026
O v e r v i e w o f M e d i u m - Te r m M a n a g e m e n t P l a n                                                                                                                                                  Message from our President




                                                                    Medium-Term Management Plan
                                                                                                      2010 2012

                                                                                                                                                                                                                                                                                                                                      President and representative director
                                      Creating a New Food Logistics System by Upgrading Logistics Quality and Strengthening Capabilities
                                                                                                                                                                                                                      The Beginning of Steps Aimed at Further Enhancing Quality and
                                                                                                                                                                                                                      Shifting our Focus to Growing Markets
                                2010                                                                      2011                                                                2012                                                                                                                                                          Naoki          Okamune


                                                                                                    Upgrade Logistics Quality

                                                                            Aim to clarifying logistics quality standards while also motivating personnel



                                                Improve Profit Structure                                                                                Shift into Growth Fields

                               Build a new information system by restructuring storage
                                                                                                                               Gain new business opportunities as a strategic step for future development
                                            and transportation capabilities




                                                                                               KRS Group’s Business Environment

                         Reduced labor power due to aging of workforce                             Competition among wholesalers                                   Increase in imported freight

              Diversification of sense of value and increasing regional prosperity gap    Intensifying competition due to contracting market                  More severe environmental regulations




                                                                                                                       In December 2009, the KRS Group implemented a medium-term management
                                                                                                                       plan covering the three fiscal years up the fiscal year ending November 2012.
                                                                                                                       The following summary of the plan is intended to assist with the understanding
                                                                                                                       of our Group’s management goals.
                                                                                                                           The medium-term management plan sets out the following key management
                                                                                                                       strategies based on the themes of upgrading logistics quality, improving profit
                                                                                                                       structure, and shifting into growth fields.


                                                                                                                       1. Upgrade logistics quality by clarifying logistics quality standards and
                                                                                                                          establishing standardized operations.
                                                                                                                       2. Restructure storage and transportation capabilities to optimize business
                                                                                                                          resources and improve logistics services.
                                                                                                                       3. Invest resources in customized logistics solutions and handling of
                                                                                                                          imported freight to gain new business opportunities.
                                                                                                                       4. Create information systems.
                                                                                                                       5. Nurture and utilize human resources to achieve the above strategies.                        The KRS Group started a medium-term management plan                 economic downturn. But total revenue increased because            freight volume, our Group is reinforcing its regionally
                                                                                                                                                                                                                      in fiscal 2010 that covers the three-year period ending in          of new outsourcing orders for customized logistics, which         oriented sales based on the cooperation and
                                                                                                                          As a leading company in food distribution, we will strive to become a                       fiscal 2012. During fiscal 2010, the first year of the plan, we     are provided mainly to distribution and retailing                 collaboration of Kyusokai, a group of cooperating
                                                                                                                       business group with greater presence by offering superior logistics quality                    placed priority on many aspects of “quality”.                       companies. Profits were higher because of progress in             distribution companies. During the latter part of the
                                                                                                                       premised on safety and security and by strengthening our capabilities and                                                                                          improving storage operations and in streamlining freight          medium-term management plan, our Group will proceed
                                                                                                                                                                                                                      Distribution “quality”…Strengthening our Group                      transport operations and other activities.                        with the shift to growth fields. Building up the capabilities
                                                                                                                       creating new value.
                                                                                                                                                                                                                         collaboration system to upgrade logistics quality                   We are positioning the current medium-term                     needed for our Group’s future viability and development,
                                                                                                                                                                                                                      Facilities “quality”…Increasing investment efficiency by            management plan as a blueprint for enacting structural            it will also reinforce its domestic logistics network by
                                                                                                                                                                                                                         promoting maintenance and repair of deteriorated                 reforms at the KRS Group. Market conditions are                   strengthening its customized logistics solutions business
                                                                                                                                                                                                                         facilities and effective use of existing facilities and          challenging. Given such trends as the curtailing of               and restructuring its network while also nurturing and
                                                                                                                                                                                                                         systems                                                          distribution expenses by goods shippers and growing               reinforcing its overseas logistics businesses with an eye to
                                                 Actual and Target Figures                        /Consolidated
                                                                                                                                                                                                                      Business content “quality”…Offering appropriate                     demand for reductions in environmental impact, the                developing an international distribution business.
                                                                                                                                                                                                                         services and achieving appropriate profits by                    contraction in the food processing market due to falling              We are positioning fiscal 2011, the second year of the
                                                                                                      2010                                        2012                                2010                               establishing a profitability management system for               birth rates and the aging population, the widening                medium-term management plan, as a time to begin
                                                                                                        /Actual                                    /Medium-Term                       Change Versus 2010                 major customers                                                  prosperity gap between metropolitan and regional areas,           shifting our focus to growing markets by channeling
                                                                                                                                               Management Plan
                                                                                                                                                                                                                      Personnel “quality”…Establishing systems to nurture                 and the lack of growth in commission income due to price          resources to these markets. Our performance in 2010
                                                                                                                                                                                                                                                                                          competition between operators, there is little hope for           demonstrated that we are continuing to improve our
                                       Operating revenue (¥100 million)                               1,357                                       1,380                                       23                         and train staff with professional knowledge and
                                                                                                                                                                                                                         qualifications                                                   traditional volume-based business growth. Companies               profit structure slowly. But we must remain focused on
                                       Operating income (¥100 million)                                  17.2                                        23.0                                     5.8                                                                                          must make a strategic shift from “volume” to “quality” to         the central goal of the next medium-term management
                                                                                                                                                                                                                      Strategic objectives include standardizing business                 adapt to the business environment of this new era.                plan: growing and prospering by focusing resources on
                                       Ordinary income (¥100 million)                                   15.7                                        23.0                                     7.3                      processes, restructuring freight transport capabilities,               To deal with these changes, it is necessary to make            growing markets. Accomplishing this goal will require a
                                   Net income (¥100 million)                                              4.0                                        8.0                                     4.0                      restructuring freight storage capabilities, building an             bold and decisive decisions regarding our Group                   commitment to further upgrading our profit structure to
                                                                                                                                                                                                                      information management system, and other goals. One                 structure. To that end, we had set upgrading logistics            achieve more progress involving “quality”. We must also
                                                                                                          2.8                                        4.1                                     1.3                      result of these actions was the development of the                  quality, improving profit structure, and shifting into            work on preparations for making the investments needed
                                                                                                                                                                                                                      FCD3+1 truck, which entered service in May. This truck              growth fields as the themes of the medium-term                    to grow in the future.
                                                                                                          1.7                                        3.3                                     1.6                      has the flexibility to alter the amount of space used for           management plan. To start with, we are pushing forward                Our operations are guided by the Group’s corporate
                                           Shareholders’ equity ratio (%)                               43.2                                        43.5                                     0.3                      freight in specific temperature zones. In June, we started          with clarifying logistics quality standards and establishing      philosophy of serving as “A corporate group that brings
                                                                                                                                                                                                                      operations at the Second Kobe Sales Office, which is                standardized operations, and are entering the final stages        together people and their food with a smile and always
                                                                                                                                                                                                                      located in the Kansai region.                                       of standardizing the operations as laid out in the                has their trust.” While adhering to this concept, we will
                                                                                                                                                                                                                          In fiscal 2010, we achieved growth in revenue and               medium-term management plan. At the same time, our                continue our efforts to achieve constant growth in
       Note1: ROE is the ratio of net income to shareholders’equity. ROA is the ratio of ordinary income to total assets. Total assets and shareholders’equity are averages of the beginning and end of the period.   profits with operating revenue of ¥135.7 billion, ordinary          Group will restructure its storage and transportation             corporate value and to be the leading food distribution
       Note2: Figures are the same as those announced after the formulation of the plan in January 2010.                                                                                                              income of ¥1.5 billion and net income of ¥0.4 billion.              capabilities to optimize business resources and improve           company. In meeting these challenges, we ask for your
                                                                                                                                                                                                                      Revenue was impacted by a downturn in freight volume at             logistics services, working to strengthen its profit              continued support and encouragement.
                                                                                                                                                                                                                      current customers, including shared logistics, due to the           structure. To address the immediate problem of reduced




                                                                         Corporate Profile                     1          Business Strategies                                                                                                                                           Corporate Profile               2       Business Strategies
Financial Highlights




                                                             2000/11             2001/11     2002/11   2003/11   2004/11                2005/11                2006/11                   2007/11                      2008/11              2009/11                 2010/11

                                                                 91,536            98,529    102,635   118,452   121,288                130,158                 135,505                   140,266                     143,015              135,381                 135,709
  Operating revenue                                              81,860            85,497     84,587    84,713    88,217                 92,125                  93,728                    95,768                      96,022               87,508                  86,826

                                                                  3,488              3,307     3,380     3,571     3,732                  3,100                     2,594                     1,417                     1,220                1,523                     1,726
  Operating income                                                2,515              2,733     2,581     2,532     2,646                  2,206                     1,527                       533                       316                  362                       538

                                                                  3,298              3,095     3,208     3,445     3,582                  3,159                     2,643                     1,445                     1,280                1,546                     1,577
  Ordinary income                                                 2,415              2,661     2,521     2,529     2,604                  2,263                     1,617                       618                       428                  446                       619

                                                                  1,489              1,213     1,438     1,500     1,612                  1,378                     1,051                        371                     320                    371                       405
  Net income                                                      1,250              1,133     1,231     1,192     1,309                  1,115                       815                        120                     208                    199                       236

                                                                 44,013            47,720     55,016    56,642    55,059                 55,693                   57,364                    57,957                     58,499               55,615                   56,390
  Total assets                                                   34,141            34,984     35,859    36,691    38,607                 40,156                   42,329                    43,286                     43,342               41,084                   41,106

                                                                 16,072            16,728     17,834    19,184    21,720                 23,150                   26,545                    26,982                     26,742               27,147                   27,484
  Net assets                                                     14,859            15,476     16,406    17,486    19,910                 21,097                   21,652                    21,532                     21,392               21,403                   21,415



                     Corporate History


                                                                                                                     1966   February          The warehouse section of Kewpie Co., Ltd. separated from its parent company,

                                                                                                                                              and established independently as “Kewpie Warehouse Co., Ltd.” in Senkawa-cho, Chofu-shi, Tokyo. Capital 10 million yen.

                                                                                                                            August            License for warehouse operation acquired

                                                                                                                     1968   December          Registered as vehicular delivery business

                                                                                                                     1972   March             Capital increased to 20 million yen

                                                                                                                     1974   July              Capital increased to 80 million yen

                                                                                                                     1976   February          Capital increased to 96 million yen

                                                                                                                            July              Business name changed to “Kewpie Warehouse Transport Co., Ltd.” Sales of petroleum (for vehicles) began

                                                                                                                     1980   June              Capital increased to 192 million yen

                                                                                                                     1982   March             Introduced delivery vehicles with “2-conpartment refrigeration” Delivery service on both refrigerated food and frozen food began

                                                                                                                            September         Capital increased to 215 million yen

                                                                                                                     1989   November          Shared distribution unified under the name “Kyuso-Bin”“Kyusokai” membership commenced

                                                                                                                                              with the co-operation of delivery company network across Japan Capital increased to 495 million yen

                                                                                                                            December          Business name changed to “K.R.S.Corporation”

                                                                                                                     1990   November          Capital increased to 1.045 billion yen

                                                                                                                     1993   November          Head office relocated to Kojima-cho, Chofu-shi, Tokyo

                                                                                                                     1995   September         Shares listed on the Second Section of the Tokyo Stock Exchange Capital increased to 2.189 billion yen

                                                                                                                     1996   May               Established “KRS LOGISTICS CO., LTD.” jointly with Saha Patana Khamai Ltd. of Thailand

                                                                                                                     1997   November          A system for matching those in need of shipping services and those capable of providing shipping services renewed as “QTIS”

                                                                                                                                                  (Kyuso Transport Information System) and put into full operation.

                                                                                                                     2000   April             “Kyuso Suru-Bin” commenced across Japan

                                                                                                                            September         Capital increased to 3.577 billion yen

                                                                                                                     2002   October           Affiliation through acquisition of S. Y. Promotion Co., Ltd. stocks

                                                                                                                     2003   April             Established Kyuso Management Corp. (Kyuso L Plan Corp.) as affiliate company

                                                                                                                            October           Merger of subsidiary Yamamoto Kyuso Corp. and subsidiary Mizushima Kyuso Corp. business name changed to YM Kyuso Corp.

                                                                                                                     2004   June              Shares designated for listing on the First Section of Tokyo Stock Exchange

                                                                                                                            October           Capital increased to 4.0546 billion yen through public offering

                                                                                                                            November          Capital increased to 4.06311 billion yen through allocation of new shares to a third party

                                                                                                                     2006   July              Introduced small-lot, automatic warehouses

                                                                                                                            September         Established Shanghai KRS Logistics Corporation in China

                                                                                                                     2008   January           Opening of Kawasaki Logistics Center, which can handle imported food products

                                                                                                                     2010   May               Developed and introduced Flexible cargo deck truck (FCD3 + 1)



                                         Corporate Profile   3     Business Strategies                                                                               Corporate Profile               4       Business Strategies
M a r k e t & I n d u s t r y Tr e n d                                                                                                                                                                                       K R S G r o u p ’s P o s i t i o n




Amid Diversification in Market Needs and Intensified Competition,                                                                                                                                                            Our Group is an Industry Leader in
Companies that Adapt to the New Market Structure and New Market Needs Will Survive                                                                                                                                           Comprehensive Capabilities for Food Distribution



                  Food Carried by Trucks (Units: thousand tons)

                                  Private trucks
                                                                                                                                        The existence of a need to outsource                                                                                                                         One-stop solution made possible with combined group strengths
                                  Commercial trucks
  400,000
                          327,109
                                                                                                                                                                                                                                                                                                                                                                       The food distribution industry has entered a testing time that will divide the players
                                                 341,045 344,933 334,909
                          327,109                                                                                                                                                                                                                                                                                                                                      into winners and losers. Against this background, each type of logistics business is
                                     305,047                                                                                                                                                                                                                                                                                                                           attempting to make the best use of its functions and distinguishing features, including
  300,000
                                                                                                                                                                                                                                                                                                                                                                       distribution subsidiaries founded by food manufacturers, ordinary and refrigerated
                                                                                                                                                                                                                                                                                                                                                                       warehouse operators, transportation companies, and firms connected with trading
                                                                                                                                                                                                                                                                                                                                                                       companies. Although as a general food distribution business our Group compete with
  200,000
                                                                                                                                                                                                                                                                                                                                                                       many different logistics operators on different fronts, we have already achieved
                                                                                                                                                                                                                                                                                                                                                                       recognition as a leading company in the areas of customized logistics solutions, shared
                   126,310 116,030                                                                  We estimate that the food distribution market is between ¥2 trillion and ¥3 trillion in size. The fact that about
                                   110,338 118,225 108,741                                                                                                                                                                                                                                                                                                             distribution, and nationwide small lot transport and distribution (B to B). In such an
   100,000                                                                                          50% of businesses are carrying out distribution in their own trucks indicates a large latent need for outsourcing.                                                                                                                                                 environment, we are in the advantageous position of being able to propose one-stop
                                                                                                       On the other hand, the number of warehouse and general vehicle transport operators is growing,                                                                                                                                                                  logistics solutions owing to our nationwide network of over 170 distribution centers
                                                                                                    intensifying the competitive environment.                                                                                                                                                                                                                          and the 3,000 vehicles owned by Kyusokai membership.
              0
                         2005       2006         2007       2008        2009


             Source: Ministry of Land, Infrastructure, Transport and Tourism
                                                                                                                                                                                                                                                                                   Entry into Food Distribution Market                                                                                                                  Our Group’s Logistics Units




  Number of Supermarkets and Convenience Stores (Units: stores)                                                                        Emergence of retailers and wholesaler
                                  Supermarkets                                                                                                                                                                                   Logistics subsidiary           The Group’s client base and                                                                                      Storage function               Normal warehouses                   Refrigeration
                                  Convenience stores                                                                                                                                                                              of manufacturers              food management know-how
   6,000                                                                     45,000                                                                                                                                                                                                                                                                                                                             Freezing                            Fixed temperature
                                                        40,745     41,724
                   39,600       40,183     40,405
                                                                                                                                                                                                                                                                                                                                                                                                                Dangerous goods                     Logistics processing

                                                   4,264      4,391
                                     4,125




                                                                                                                                                                                                                                                                                                                            Food distribution business
   4,000 3,940
                          3,989                                              30,000
                                                                                                                                                                                                                                    Cold storage/               Storage function infrastructure
                                                                                                                                                                                                                                                                                                                                                                             Shared distribution function       Nationwide shared distribution network
                                                                                                                                                                                                                                 warehouse operators
                                                                                                                                                                                                                                                                                                                                                                                                                4-temperature zone distribution

   2,000                                                                     15,000                 In the corporate distribution business, the third-party logistics (3PL) or outsourcing market is expanding. Among the
                                                                                                                                                                                                                                                                                                                                                                                                                Kyuso Suru-Bin (nationwide small lot distribution system)
                                                                                                    reasons for this growth is the positioning of the infrastructure and investment capability of the overall logistics
                                                                                                    business as key factors in determining corporate profitability. Companies are trying to achieve these goals by
                                                                                                    curtailing logistics costs, making efforts to reduce CO2 emissions through environmental measures, and diversifying            Transportation               Transportation functions
                                                                                                                                                                                                                                     companies
                                                                                                    their procurement, including overseas sourcing.                                                                                                                                                                                                                          Transportation function            Kyuso Transport Information System (QTIS)
         0                                                                   0
                  2005      2006          2007       2008        2009
                                                                                                        In addition, based on the expansion of the business scale of major supermarket and convenience store (CVS) chains,
                                                                                                    the presence of retailers and wholesalers in manufacturing distribution has risen in the food distribution industry.
 Source: Ministry of Economy, Trade and Industry “Yearbook of current survey of commerce”
                                                                                                                                                                                                                                                                                                                                                                             Handling/distribution function     24 hours a day, 365 days a year                  Normal vehicle

 *The number of supermarkets includes offices other than stores.                                                                                                                                                                  Operators in the
                                                                                                                                                                                                                                                                                                                                                                                                                2-room (freezer/refrigerator) vehicle            Trailer
                                                                                                                                                                                                                                distribution channels           Close relationships with shippers
                                                                                                                                                                                                                                (wholesale food merchants/      through distribution channels
                                                                                                                                                                                                                                      trading houses)                                                                                                                                                           Bulk carrier                Vessels              Container



                    Imported Food Products (Units: ¥ billion)
                                                                                                                                        Expansion in Import of Food Products
                                                                                                                                                                                                                                                                                                                                                                               Information function             Inventory control system
                                                                                                                                                                                                                                                             Sales to KP Group (Units: ¥ million/%)
                                                                                                                                                                                                                                                                                                                                                                                                                Online orders
    7,000                                                                                                                                                                                                                                                     KRS Group’ s sales                                 Proportion of consolidated sales

                                              6,041         6,212                                                                                                                                                                                                      KP Group’ s sales                                                                                                                        Automatic vehicle dispatch system
                                                                                                                                                                                                                              150,000                                                                                                                       30.0
                    5,559         5,710                                                                                                                                                                                                                                                                     140,266 143,015
                                                                                                                                                                                                                                                                                                  135,505                              135,381
    5,250                                                                 4,999                                                                                                                                                            25.5                                        130,158                                                                                                                  Receipt collection system                       Distribution tracking
                                                                                                                                                                                                                                                    24.4
                                                                                                    Because of its low self-sufficiency in food, Japan has a high dependency on imported food, and this                                                      23.1 118,452 121,288
                                                                                                    dependency is forecast to increase over the medium to long term. Moreover, the shift to overseas operations                                             102,635 19.5
                                                                                                                                                                                                                              100,000              98,529                      18.7                                                                         20.0
    3,500                                                                                           with an eye to expanding their international logistics business is strengthening among food distribution                              91.536                                           17.7    17.0                                                                           Other functions               Mutual purchasing of vehicles, logistics equipment and fuel
                                                                                                                                                                                                                                                                                                             16.3    15.5
                                                                                                    companies that expect domestic food consumption to contract in future.                                                                                                                                                                           15.0
                                                                                                                                                                                                                                                                                                                                                                                                                Various leases

    1,750                                                                                                                                                                                                                                                                                                                                                                                                       Maintenance of normal and industrial vehicles      Damage insurance
                                                                                                                                                                                                                               50,000                                                                                                                       10.0

                                                                                                                                                                                                                                          23,374 24,082 23,712 23,083 22,729 23,060 23,027 22,914 22,209 20,306
          0
                   2005         2006         2007          2008          2009
                                                                                                                                                                                                                                                                                                                                                                                      Sales planning/Proposal                       Logistics technology/Quality/Logistics IT
                                                                                                                                                                                                                                    0                                                                                                                       0
                         Source: Ministry of Finance “Trade statistics”                                                                                                                                                                   2000/11 2001/11 2002/11 2003/11 2004/11 2005/11 2006/11 2007/11 2008/11 2009/11




                                                                                            Corporate Profile         5        Business Strategies                                                                                                                                                           Corporate Profile                                     6       Business Strategies
Competitive Advantage                                                                                                                                                                                                            Basic Logistics Systems




Developing Our Results-proven Overall Strength as the Pioneer                                                                                                                                                                    Our Group Offer Four Industry-Leading Logistics Systems
of Third Party Logistics Operations for Food Distribution.                                                                                                                                                                       Based on its Independently Developed Assets and Network



                              Overall Horizontal Strength                                                                                                                                                                                                  Shared Distribution                                                                                                                                                     Customized Logistics
                                                                                                                                                                                                                                                                                                                                                                                                                                   Shared Distribution Solutions

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    Order
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         Customers




                                                                                                                                                                                                                                                                                                                                                                    Place of delivery
                                                                                                                                                                                                                                     Manufacturers                                  KRS Distribution Center
                                                                                                                                                                            Hokkaido area




                                                                                                                                                                                                                                                                                                                 Assortment by store
                                                                                                                                                                                                                                                       Merchandise                                                                                                                                                                         Shipping information                                     Inventory information
                                                                                                                                                                                                                                       Company A                                                                                                       Delivery
                                                                                                                                                                                                                                                       replacement




                                                                                                                                                                                                                                                                          Storage




                                                                                                                                                                                                                                                                                              Picking
                                         Logistics centers offices         Base centers
                                                                                                                                                                          Ishikari logistics center                                                                                                                                                                                                                                                              KRS Information Center
             Hokkaido                               3                           1                                                                                                                                                      Company B                                                                                                                                                                   Shipping instruction




                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          Place of delivery
          Tohoku                                   11                           5
                    Kanto/Koshinetsu/                                                                                                                                                                                                  Company C
                    Shizuoka                       24                          14                                                                                                                                                                                                                                                                               Order                                                                                            KRS Distribution Center
                                                                                                                                         Osaka area                           Tohoku area




                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          Picking
                                                    7                           5




                                                                                                                                                                                                                                                                                                                                                                    Head quarter
                   Chubu/Hokuriku
                                                                                                                                                                                                                                       Company D                                                                                                                                                                            Delivery packages                                                                                Delivery packages
                                                   13                           3                                                                                                                                                                        Online                          EDP Center                                                  Online




                                                                                                                                                                                                                                                                                                                                                                                                                                                                  Inspection
                                                                                                                                                                                                                                                                                                                                                                                                                                                       Arrival




                                                                                                                                                                                                                                                                                                                                                                                                                                                                               Storage
          Kinki                                                                                                                       Kobe logistics center               Sendai logistics center




                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      Assortment

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   Loading
                   Chugoku/Shikoku                  4                           9                                                                                                                                                      Company E                        Order processing                Data processing                                                                                Factory/depot Receipt/Delivery statement                                                                              Receipt/Delivery statement
          Kyushu                                    8                           7
                                                                                                           Chugoku/Shikoku area
        Total                                      70                          44

                                                                                                             Saijo logistics center
                                                                                                                                                                                                                                   Our shared distribution system makes shared deliveries of small quantities of many different                                                                        Our customized logistics solutions system is a distribution center-type system tailored
                                          Base for customized logistics group companies                                                                                                                                            products, and contributes to the expansion of sales outlets and cost reduction for customers.                                                                       to customer needs. It makes use of each type of logistics technology and advanced
                                                                                                                                                                                                                                   Rollout to all distribution bases nationwide is possible, from collection to dispatch, with shared                                                                  information technology, and is made possible by our Group experience with many
             Hokkaido                                                4                                                                                                                                                             distribution system of chilled and frozen food in each region.                                                                                                      different types of system.
          Tohoku                                                     5
                    Kanto/Koshinetsu/
                    Shizuoka                                     25
                                                                                                                                                                                   Tokyo area               Kanto area                                     Nationwide Logistics                                                                                                                                                    Overseas Logistics
                   Chubu/Hokuriku                                    5
          Kinki                                                  18
                                                                                                                                                                              Nishifu logistics center   Goka logistics center
                   Chugoku/Shikoku                                                                                                                                                                                                                                                                            KRS Ishikari
                                                                                                                Kyushu area                       Nagoya area                                                                           Customers
          Kyushu                                                     5                                                                                                                                                                                                                                                                                                                                                                       Beijing

        Total                                                    62                                         Kiyama logistics center            Kasugai logistics center
                                                                                                                                                                                                                                                                                                                                                                                                                                          Shanghai

                                                                                                                                                                                                                                                          KRS Saijo                                                                                                                                                                          Hangzhou
                                                                                                                               Our Group is developing many business locations across the country, including                                                                   KRS Kobe                                                                       KRS Sendai
                                                                                                                               the low-temperature warehouses vital for food distribution. Additionally, we have,
                                                                                                                               for example, a main line distribution system connecting these business locations                                                                                                                                                                                                          Bangkok
                                                                                                                                                                                                                                                                                                                                                     KRS Goka
                                                                                                                               and a detailed distribution network, and operate a business that makes effective
                                                                                                                               use of the Group’s powerful distribution abilities.
                                                                                                                                                                                                                                                               KRS Marugame              KRS Kasugai
                                                                                                                                                                                                                                        KRS Kiyama                                                                                     KRS Nishifu



                              Overall Vertical Strength


                                                                                                                                                                                                                                    Our nationwide logistics system uses the nationwide network of over 110 distribution                                                                               Our Group aims to establish a composite logistics service connecting Japan and Asia by
                                                                                                                                                                                                                                    bases and offers speedy nationwide delivery of small or large consignments.The                                                                                     ship and including customs clearance. We are considering a variety of activities including
                                                                                                                                                                                                                                    vehicles of the “Kyuso-Bin” network can offer a nationwide distribution service 24 hours                                                                           distribution for overseas purchasing, manufacturing, and sales, and intend to offer a service
                                                                                                                                                                                                                                    per day, 365 days per year.                                                                                                                                        that makes use of domestic and overseas bases and units for storage and transportation.

       Strengthened sea shipping                                               Procure raw materials                                       Tank lorry/Ship transport



                                                                                           Processed foods manufacturers
                                                                                                                                                                                                                                                                        Three Types of Food Distribution Business

                                                                         Inventory storage/Depot transfer
                                                                             (Nationwide distribution)
                                                                                                                                                                                                                                                                  Shared Distribution                                                                                                   Customized Logistics Solutions                                                                              Overseas Logistics Solutions
                                                                                                                                                                                     Our Group is developing appropriate
                                                                                                                                                                                     distribution services for every stage of
                                                                                          Processed foods wholesalers                                                                food distribution. Based on these
                                                                                                                                         Shared distribution service
                                                                                                                                                                                     basic services, we are constructing
       Cost competitiveness                                                                                                                          (KRS/Kyusokai)                  efficient distribution systems to
       Improved distribution quality
       Expanded distribution abilities                               Joint shipping (Local distribution/Suru)                                                                        respond to the various needs of our
                                                                                                                                                                                     customers.


                                                                                    Supply shipping


           GMS/Supermarkets                             Restaurant chains                              Convenience stores                       Drugstores                                                                       Our shared distribution business model basically pursues                                                  Since this is a downstream operation, a large number of                                             This logistics business is a field that is expected to grow
                                                                                                                                                                                                                                 scale merit, leveraging the advantages of our Group’s                                                     wholesalers, trading houses and logistic operators have                                             based on food supply conditions and other factors in Japan.
                                                                                                                                                                                                                                 nationwide network and large business transaction volume.                                                 entered the market, intensifying competition. However, with                                         Our Group has adapted to the changing market structure in
                         Profitability focus
                                                                                                                                                                                                                                 Currently, we are the leading company in the food                                                         our quality control/operational know-how and system                                                 this field by combining its distribution assets and
                      Supply distribution                                           Store deliveries                                  Customized logistics solutions
                                                                                                                                                                                                                                 distribution industry in this business.                                                                   development capability fostered through many years of                                               establishing a composite logistics system capable of
                                                                                                                                                                                                                                                                                                                                           experience, we have an established a solid position in this                                         distributing imported goods throughout Japan.
                                                                                                                                                                                                                                                                                                                                           business field.



                                                                            Corporate Profile                         7          Business Strategies                                                                                                                                                                                   Corporate Profile                                        8       Business Strategies
Basic Strategy                                                                                                                                                                               Financial Statements




                                                                                                                                                                                                                          Consolidated Balance Sheets


                                                                                                                                                                                              Items                                                                                       By financial year   2008/11   2009/11   2010/11

                                                                                                                                                                                                                   (Assets)
To Respond to the Changes in Market Structure,
                                                                                                                                                                                                      Current assets                                                                                           21,924    19,520    20,889
Our Group is Working to Upgrade Logistics Quality and
                                                                                                                                                                                                                Cash and deposits                                                                               1,889     2,127     2,636
Strengthen its Business Base as well as Pursuing New Development                                                                                                                                                                                                                                               17,863    15,416    16,257
                                                                                                                                                                                                                                   Notes and accounts receivable-trade
                                                                                                                                                                                                              Inventories                                                                                         241       250       238
                                                                                                                                                                                                           Advances expenses                                                                                      588       553       546
                                                                                                                                                                                                                Deferred income taxes                                                                             816       564       540
                                                                                                                                                                                                        Other                                                                                                     532       610       675
                                                                                                                                                                                                              Allowance for doubtful accounts                                                                      -7        -3        -4
                               Creating a new food logistics system by upgrading logistics quality and strengthening capabilities                                                                     Fixed assets                                                                                             36,575    36,094    35,501
                                                                                                                                                                                                              Tangible fixed assets                                                                            27,515    26,984    26,761
                                                                                            Amid the substantial changes in the traditional market structure, our Group aims to create                             Buildings and structures                                                                     8,392     8,037     7,413
                                                                                            systems to deal more accurately with the increasingly diversifying needs of customers,                                        Machinery and transportation equipment                                                3,921     3,517     3,324
                                                                                            giving top priority to the issue of the upgrading of logistics quality it offers to customers.
                                                                                            Furthermore, as the map of the industry gets redrawn, our Group is strengthening each of                                      Furniture and fixtures                                                                  264       231       216
                                                                                            its logistics capabilities while at the same time entering potential growth markets to                    Land                                                                                                     14,936    14,665    14,678
                                                                                            pursue further expansion.                                                                                                                                                                                              -        603     1,391
                                                                                                                                                                                                              Lease assets
                                                                                                                                                                                                              Intangible fixed assets                                                                             399       381       324
                                                                                                                                                                                                                   Investments and other assets                                                                 8,660     8,728     8,415
                                                                                                                                                                                                                Investments in securities                                                                       1,028     1,315     1,241
                                                                                                                                                                                                                Deferred income taxes                                                                             410       481       402
                                                                                                         Strengthen Personnel Nurturing and Training System                                                        Deposits and guarantees                                                                      4,421     4,228     3,941
    Upgrade Logistics Quality
                                                                                                                                                                                                        Other                                                                                                   2,828     2,740     2,869
                                                                                                                                                                                                              Allowance for doubtful accounts                                                                     -28       -39       -39
                                                                                                                                                                                                      Total assets                                                                                             58,499    55,615    56,390
                                                     Clarify logistics quality standards, while motivating personnel                                                                                               (Liabilities)
                                                                                                                                                                                                      Current liabilities                                                                                      25,481    22,735    23,434
                                                                                                                                                                                                                               Notes and accounts payable-trade                                                12,142    10,986    11,653
                                                                                                                                                                                                              Short-term borrowings                                                                             6,707     5,738     4,967
                                                                                                                                                                                                         Accounts payable-other                                                                                 2,251     2,025     2,036
                                                                                                                       Strengthen Business Base
    Improve Profit Structure                                                                                                                                                                               Accrued expenses                                                                                     2,482     2,305     2,409
                                                                                                                                                                                                                 Accrued income taxes                                                                             284       251       568
                                                                                                                                                                                                              Accrued bonuses                                                                                     522       530       596
                                                                                                                                                                                                                      Payables-facilites                                                                          292        49       228
                                                      Replace our assets with those appropriate for the new era                                                                                         Other                                                                                                     797       848       973
                                                                                                                                                                                                      Long-term liabilities                                                                                     6,275     5,732     5,471
                                                                                                                                                                                                      Bonds                                                                                                       500       500       500
      Establishing standardized operations          Establish standard tasks (define services that are free and services that are billed)
                                                                                                                                                                                                              Long-term borrowings                                                                              2,960     2,111     1,493
                                                                                                                                                                                                              Long-term accounts payable-other                                                                    514       441       498
                                                                                                                                                                                                                   Long-term deferred installments                                                                 12         5         0
                                                    Integrate the truck assignment function and develop and introduce a new system for the assignment and use of vehicles
                                                                                                                                                                                                                 Deferred tax liabilities                                                                         738       863       825
         Restructuring logistics system
                                                                                                                                                                                                                   Allowance for employees’ retirement benefits                                                   655       633       607
                                                    Enlarge storage bases in metropolitan areas and consolidate bases in other areas of Japan
                                                                                                                                                                                                              Deposits and guarantees received                                                                    753       720       688
                                                                                                                                                                                                                   Deferred hedge liability                                                                        57        -         -
         Build a new information system                                                                                                                                                                       Negative goodwill                                                                                    84        42        -
                                                    Combine the current development system with the new system
                                                                                                                                                                                                        Other                                                                                                      -        414       857
                                                                                                                                                                                                      Total liabilities                                                                                        31,757    28,468    28,906
                                                                                                                                                                                                                      (Net assets)
                                                                                                                                                                                                      Owner’ s equity                                                                                          24,000    24,169    24,372
                                                                                                                                                                                                      Capital stock                                                                                             4,063     4,063     4,063
                                                                                                                      The Drive for New Development                                                        Capital surplus                                                                                      4,209     4,209     4,209
    Shift into Growth Fields                                                                                                                                                                               Earned surplus                                                                                      15,739    15,908    16,111
                                                                                                                                                                                                        Treasury stock                                                                                            -11       -11       -11
                                                                                                                                                                                                                Valuation and translation adjustments                                                               6        43        11
                                                                                                                                                                                                                               Difference from evaluation of investments in securities                             21        46        29
            Our Group is stepping up its market entrances in the future growth potential fields of customized logistics solutions and imported freight
                                                                                                                                                                                                                Deferred gains or losses on hedges                                                                -17        -         -
                                                                                                                                                                                                                   Translation adjustment                                                                           1        -2       -18
                                                                                                                                                                                                           Minority interests                                                                                   2,735     2,934     3,101
                           Strengthen customized logistics services capabilities             Reconstruct infrastructure for handling imported freight
                                                                                                                                                                                                        Total net assets                                                                                       26,742    27,147    27,484
                                                                                                                                                                                                              Total liabilities and net assets                                                                 58,499    55,615    56,390


                                                      Corporate Profile              9        Business Strategies                                                                                                                                  Corporate Profile          10         Business Strategies
Financial Statements                                                                                                                           Financial Statements




                          Consolidated Statements of Income                                                                                                                          Statements of Cash Flows


 Items                                                                                       By financial year   2008/11   2009/11   2010/11    Items                                                                                                                          By financial year               2008/11   2009/11   2010/11

         Operating revenue                                                                                       143,015   135,381   135,709                                        Cash flow from operating activities

             Cost of sales                                                                                       138,568   130,396   130,495
                                                                                                                                                                             Income before income taxes                                                                                                            888     1,350     1,570
                                                                                                                                                           Depreciation expense                                                                                                                                  2,975     3,020     3,111
           Gross profit                                                                                            4,447     4,984     5,214
                                                                                                                                                         Impairment loss                                                                                                                                            -        142        -
                             Selling, general and administrative expenses                                          3,226     3,460     3,487                          Increase (Decrease) in allowance for doubtful account                                                                                        -35         7         1
         Operating income                                                                                          1,220     1,523     1,726                          Increase in accrued bonuses                                                                                                                   32         8        66
             Non-operating income                                                                                    260       218       469                                 Decrease in allowance for employees’ retirement benefits                                                                             -137       -21       -25
                                                                                                                                                                            Increase (Decrease) in accrued directors’ bonuses                                                                                       14        24        13
                          Interest and dividend income                                                                32        27        34
                                                                                                                                                                             Interest and dividend income                                                                                                          -33       -27       -34
               Rents receivable                                                                                       79        85        84             Interest expense                                                                                                                                          127        99        76
                             Equity in earnings of affiliates                                                          4         7        -                                Equity in loss (earnings) of affiliates                                                                                                  -4        -7       404
                       Exhaust emission restrictions-related government subsidy                                        4        21        97                          Gain on sales of investment securities                                                                                                      -159        -0       -12
               Contribution received                                                                                  -         -        113                          Loss on sales of investment securities                                                                                                         0         0         0
                                                                                                                                                                           Loss (Gain) from valuation of investment securities                                                                                      42         0        60
                       Difference on dissolving endowment insurance                                                    4        -         -
                                                                                                                                                                           Gain (Loss) on sales of tangible fixed assets                                                                                           -28        16       -33
                       Write off of negative goodwill                                                                 25        21        77                          Loss on disposal of tangible fixed assets                                                                                                     51        32       121
           Other                                                                                                     108        55        62                          Gain on sales of golf membership                                                                                                              -5        -8        -0
             Non-operating expenses                                                                                  200       196       618                          Loss on sales of golf membership                                                                                                              -          0        -
                                                                                                                                                                      Loss from valuation of golf membership                                                                                                        35         4         1
             Interest paid                                                                                           127        99        76
                                                                                                                                                                    Increase (Decrease) in accounts receivable                                                                                                  -1,169     2,442      -844
                     Expenses on facilities rented to others                                                          53        53        50
                                                                                                                                                                      Increase in inventories                                                                                                                       -8        -9        12
                             Equity in loss of affiliates                                                             -         -        404                        Increase (Decrease) in procurement payable                                                                                                     427    -1,640       991
                          Loss from valuation of derivatives                                                          -         -         59                          Increase (Decrease) in long-term accounts payable-other                                                                                     -203      -106       -16
           Other                                                                                                      19        43        28            Other                                                                                                                                                      -94      -216      -291
                                                                                                                                                                Subtotal                                                                                                                                         2,716     5,112     5,172
         Ordinary income                                                                                           1,280     1,546     1,577
                                                                                                                                                                             Interest and dividend received                                                                                                         39        29        35
           Extraordinary income                                                                                      215        51       196                    Interest expense                                                                                                                                  -128       -97       -76
                     Gain on sales of fixed assets                                                                    37        33        38                        Corporate taxes paid                                                                                                                          -322      -621      -554
                          Gain on sales of investment securities                                                     159        -         12                        Corporate tax, etc. refunds                                                                                                                    357         0        37
                       Reversal of allowance for doubtful accounts                                                    13        -         -
                                                                                                                                                                                      Net cash provided by operating activities                                                                                  2,661     4,422     4,613
                                                                                                                                                                                    Cash flow from investing activities
                          Gain on sales of golf membership                                                             5         8         0
                                                                                                                                                                                Proceeds from time deposits                                                                                                         -         -        150
                                  Reversal of allowance for directors’ retirement benefits                            -          6        -                                          Payment for acquisition of tangible fixed assets                                                                           -2,361    -2,032    -2,046
                     Government grant revenue                                                                         -         -         40                                         Proceeds from sales of tangible fixed assets                                                                                   61       188        63
                   Gain (loss) on change in equity                                                                    -         -        105                                         Payment for acquisition of intangible fixed assets                                                                            -32      -127       -34
                                                                                                                                                                                     Payment for acquisition of investment securities                                                                              -11      -231      -113
           Other                                                                                                      -          4        -
                                                                                                                                                                                     Proceeds from sales of investment securities                                                                                  251         0        24
           Extraordinary expenses                                                                                    607       247       204                      Payment for loans                                                                                                                                -49       -61      -248
                                  Loss on sales and disposal of fixed assets                                          60        82       125                                 Proceeds from recovery of loans                                                                                                        68        59        62
                          Loss on sales of investment securities                                                       0        -         -             Other                                                                                                                                                       30       -11         3
                          Loss from valuation of investment securities                                                42        -         60                                          Net cash used in investing activities                                                                                     -2,043    -2,215    -2,139
                                                                                                                                                                                    Cash flow from financing activities
                          Loss from valuation of golf membership                                                      35        -         -
                                                                                                                                                                      Increase (Decrease) in short-term borrowings                                                                                                 700      -560      -540
                             Compensation for dissolving leases                                                      449        -         -                           Proceeds from long-term borrowings                                                                                                         1,200        -         -
                     Loss from prior period adjustment                                                                19        -         -                                       Repayment of long-term borrowings                                                                                             -2,172    -1,257      -848
             Impairment loss                                                                                          -        142        -                                       Repayment of deferred installments                                                                                               -91       -17        -6
                                                                                                                                                                                  Expenditures for repayment of lease obligations                                                                                   -        -65      -182
                          Allowance for directors’ retirement benefits                                                -         -         13
                                                                                                                                                                               Payments for purchase of treasury stock                                                                                              -0        -0        -0
           Other                                                                                                      -         21         4
                                                                                                                                                                  Dividend paid                                                                                                                                   -202      -202      -202
                          Income before income taxes                                                                 888     1,350     1,570                                      Dividend paid on to minority interest shareholders                                                                               -29       -21       -24
                             Corporation, resident and business taxes                                                478       540       869                                          Net cash provided by financing activities                                                                                   -595    -2,123    -1,805
               Adjustment for corporate and other taxes                                                                8       260        77                                    Adjustments to cash and cash equivalents                                                                                            -1         4        -9
                                                                                                                                                                             Net increase (decrease) in cash and cash equivalents                                                                                   20        88       658
             Minority interests                                                                                       81       178       218
                                                                                                                                                                                Cash and cash equivalents at beginning of year                                                                                   1,798     1,889     1,977
             Total corporate and other taxes                                                                         487       978     1,164                                          Increase (decrease) in cash and cash-equivalents due to a change in the accounting period of consolidated subsidiaries        70        -         -
           Net income                                                                                                320       371       405                                    Cash and cash equivalents at end of year                                                                                         1,889     1,977     2,636


                                                     Corporate Profile         11    Business Strategies                                                                                               Corporate Profile                                    12             Business Strategies
Key Management Indices




           Profitability                                                                                                                                                                               Productivity


          Ratio of operating income to operating revenue                      Ratio of ordinary income to operating revenue                Ratio of net income to operating revenue                   Operating revenue per employee                                        Net income per employee                                                          Number of employees at the end of period
             4.0                                                                 4.0                                                          1.0                                                      20,000                                                                 200                                                                              11,000
                                                    Consolidated                                                        Consolidated                                           Consolidated                                                       Consolidated                                                                Consolidated                                            Consolidated
                                                    Non-consolidated                                                    Non-consolidated                                       Non-consolidated
             3.0                                                                 3.0                                                         0.75                                                      17,500                                                                 150                                                                              10,000


             2.0                                                                 2.0                                                          0.5                                                      15,000                                                                 100                                                                              9,000


             1.0                                                                 1.0                                                         0.25                                                      12,500                                                                  50                                                                              8,000


               0                                                                   0                                                           0                                                       10,000                                                                    0                                                                             7,000
                   2006/11 2007/11 2008/11 2009/11 2010/11                              2006/11 2007/11 2008/11 2009/11 2010/11                     2006/11 2007/11 2008/11 2009/11 2010/11                     2006/11 2007/11 2008/11 2009/11 2010/11                               2006/11 2007/11 2008/11 2009/11 2010/11                                           2006/11 2007/11 2008/11 2009/11 2010/11

                                                                                                      2006/11              2007/11         2008/11              2009/11       2010/11                                                                                                                 2006/11                   2007/11                    2008/11                   2009/11                    2010/11
                                                                         Consolidated                       1.9                    1.0         0.9                  1.1               1.3
                                                                                                                                                                                                                                                                       Consolidated                    16,145                    16,064                     15,807                     14,387                    14,258
          Ratio of operating income to operating revenue                 Non-consolidated                   1.6                    0.6         0.3                  0.4               0.6             Operating revenue per employee

                                                                         Consolidated                       2.0                    1.0         0.9                  1.1               1.2
                                                                                                                                                                                                                                                                       Consolidated                         125                          42                        35                         39                         42
          Ratio of ordinary income to operating revenue                  Non-consolidated                   1.7                    0.7         0.4                  0.5               0.7             Net income per employee

                                                                         Consolidated                       0.8                    0.3         0.2                  0.3               0.3                                                                                                                8,660                     8,803                      9,292                      9,527                     9,518
                                                                                                                                                                                                                                                                       Consolidated
          Ratio of net income to operating revenue                       Non-consolidated                   0.9                    0.1         0.2                  0.2               0.3             Number of employees at the end of period                                                           4,484                     4,354                      4,487                      4,623                     4,782
                                                                                                                                                                                                                                                         Note1 : Figures in parentheses for total number of employees at the end of period represents the average number of temporary employees throughout the period.
                                                                                                                                                                                                                                                                                            Note 2: Operating revenue per employee and net income per employee are calculated using the average number of employees throughout the period.

           Stability
                                                                                                                                                                                                                            Cash Flow

          Shareholders’ equity ratio                                          Current ratio                                                Fixed assets ratio
           80.0                                                                110.0                                                        200.0                                                     Cash flow from operating activities                                   Depreciation expenses                                                            Capital investment
                                                   Consolidated                                                         Consolidated                                           Consolidated
                                                                                                                                                                                                       6,000                                                                 4,000                                                                             4,000
                                                   Non-consolidated                                                     Non-consolidated                                       Non-consolidated                                                   Consolidated                                                                Consolidated                                                                         Consolidated
                                                                               100.0                                                        175.0
           60.0                                                                                                                                                                                        4,500                                                                 3,000
                                                                                                                                                                                                                                                                                                                                                               3,000
                                                                                90.0                                                        150.0
                                                                                                                                                                                                       3,000                                                                 2,000
           40.0
                                                                                80.0                                                        125.0                                                                                                                                                                                                              2,000
                                                                                                                                                                                                       1,500                                                                 1,000

           20.0                                                                 70.0                                                        100.0
                   2006/11 2007/11 2008/11 2009/11 2010/11                              2006/11 2007/11 2008/11 2009/11 2010/11                     2006/11 2007/11 2008/11 2009/11 2010/11
                                                                                                                                                                                                           0                                                                     0                                                                             1,000
                                                                                                                                                                                                                2006/11 2007/11 2008/11 2009/11 2010/11                               2006/11 2007/11 2008/11 2009/11 2010/11                                           2006/11 2007/11 2008/11 2009/11 2010/11
                                                                                                      2006/11              2007/11         2008/11              2009/11       2010/11
                                                                         Consolidated                     41.8                   41.7        41.0                  43.5           43.2                                                                                                                2006/11                   2007/11                    2008/11                   2009/11                    2010/11
          Shareholders’ equity ratio                                     Non-consolidated                 51.1                   49.8        49.4                  52.1           52.1
                                                                                                                                                                                                      Cash flow from operating activities
                                                                                                                                                                                                                                                                       Consolidated                      3,563                      1,792                     2,661                      4,422                     4,613
                                                                         Consolidated                     88.5                  85.5         86.0                  85.8           89.1
          Current ratio                                                  Non-consolidated                 95.5                  94.2         94.1                  91.4           89.5
                                                                                                                                                                                                      Depreciation expenses
                                                                                                                                                                                                                                                                       Consolidated                      2,168                     2,673                      2,975                      3,020                      3,111
                                                                         Consolidated                   150.3                  153.8        152.4                149.1          145.6
          Fixed assets ratio                                             Non-consolidated               118.0                  120.0        119.8                120.3          121.7
                                                                                                                                                                                                      Capital investment
                                                                                                                                                                                                                                                                       Consolidated                      3,012                      3,183                     2,393                      2,160                     2,080


           Efficiency                                                                                                                                                                                                            Payout Ratio


          Total assets turnover                                               Shareholders’ equity turnover                                Fixed assets turnover                                                                                                                                                                                             Payout ratio
             3.0                                                                 7.0                                                          5.0                                                        5.0                                                                   8.0                                                                             80.0
                                                   Consolidated                                                         Consolidated                                           Consolidated                                                     Consolidated                                                                Consolidated                                              Consolidated
                                                   Non-consolidated                                                     Non-consolidated                                       Non-consolidated                                                 Non-consolidated                                                            Non-consolidated
                                                                                                                                                                                                         4.0
                                                                                 6.0                                                          4.0                                                                                                                              6.0                                                                             60.0
             2.5
                                                                                                                                                                                                         3.0
                                                                                 5.0                                                          3.0                                                                                                                              4.0                                                                             40.0
                                                                                                                                                                                                         2.0
             2.0
                                                                                 4.0                                                          2.0                                                                                                                              2.0                                                                             20.0
                                                                                                                                                                                                         1.0

             1.5                                                                 3.0                                                          1.0                                                          0                                                                     0                                                                                 0
                   2006/11 2007/11 2008/11 2009/11 2010/11                              2006/11 2007/11 2008/11 2009/11 2010/11                     2006/11 2007/11 2008/11 2009/11 2010/11                     2006/11 2007/11 2008/11 2009/11 2010/11                               2006/11 2007/11 2008/11 2009/11 2010/11                                           2006/11 2007/11 2008/11 2009/11 2010/11

                                                                                                      2006/11              2007/11         2008/11              2009/11       2010/11                                                                                                                 2006/11                   2007/11                    2008/11                   2009/11                    2010/11
                                                                         Consolidated                       2.4                    2.4         2.5                  2.4               2.4                                                                              Consolidated                          4.5                        1.5                        1.3                       1.5                        1.7
          Total assets turnover                                          Non-consolidated                   2.3                    2.2         2.2                  2.1               2.1                                                                              Non-consolidated                      3.8                        0.6                        1.0                       0.9                        1.1
                                                                         Consolidated                       5.8                    5.8         5.9                  5.6               5.6                                                                              Consolidated                          4.7                        2.5                        2.2                       2.7                        2.8
          Shareholders’ equity turnover                                  Non-consolidated                   4.4                    4.4         4.5                  4.1               4.1                                                                              Non-consolidated                      3.9                        1.4                        1.0                       1.1                        1.5
                                                                         Consolidated                       3.8                    3.8         3.9                  3.7               3.8
                                                                                                                                                                                                                                                                       Consolidated                        19.3                       54.6                      63.2                       54.5                      50.0
          Fixed assets turnover                                          Non-consolidated                   3.8                    3.7         3.7                  3.4               3.4             Payout ratio


      Note : Total assets and shareholders’equity and fixed assets turnover are averages of the beginning and end of the period.                                                                  Note: ROE is the ratio of net income to shareholders’equity. ROA is the ratio of ordinary income to total assets. Total assets and shareholders’equity are averages of the beginning and end of the period.


                                                            Corporate Profile                 13        Business Strategies                                                                                                                            Corporate Profile                       14           Business Strategies

				
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