1. Dear Shareholders,
Thank you very much for your continued support of Nittsu Shoji Company Limited.
I am pleased to have the opportunity to report on the operating results of the Company for the 63rd business
year from April 1, 2009, to March 31, 2010.
The period under review saw a steep deterioration in the business environment, with significant declines in the
first half cutting into full-year sales revenue and earnings, despite our first priority on protecting income.
We are aware that the difficult operating conditions will continue. Nonetheless, each individual employee will
strive to achieve steady business growth through the execution of the new management plan incepted in April
this year.
I respectfully request your continued support and understanding.
2. Business Review and Results
The Japanese economy in the period under review slackened in its gradual rebound from the recession since
the financial crisis in the fall of 2008 and, attended by downward pressures on employment and prices, failed
to stage a genuine recovery.
In these circumstances, the Company formulated its “2009 Key Management Policies” and focused on ensur-
ing sales and earnings attainment. However, despite these efforts, sales revenue declined 11.5% on the year
to ¥316,823 million, mainly reflecting lower selling prices at the Petroleum Division and reduced export cargo
packaging at the Logistics Support Division.
Despite proactive efforts to streamline operations to cover the plunge in sales revenue, ordinary profit
decreased 5.9% on the year to ¥6,787 million, leaving net profit for the period at ¥3,377 million.
Nitts Shoji Co.,Ltd. 1
Translation of an Independent Auditors’ Report original issued in Japanese
Audit Report of Independent Auditor
To the Board of Directors ofNITTSU SHOJI Co.,Ltd.
May 21, 2010
Ernst & Young ShinNihon LLCNobuyuki OnoCertified Public AccountantDesignated and Operating PartnerSatoshi KimuraCertified Public AccountantDesignated and Operating PartnerAkira FujiwaraCertified Public AccountantDesignated and Operating Partner
We have audited the non-consolidated financial statements of NITTSU SHOJI Co.,Ltd. namely, the balancesheet, the statement of income, the statements of changes in stockholders' equity, the notes to non-consolidated financial statements and the accompanying detailed statements for the 63th business termfrom April 1, 2009 to March 31, 2010, in accordance with item 1, paragraph 2, Article 436 of the CorporationLaw. Responsibility as to the preparation of such nonconsolidated financial statements and the accompanyingdetailed statements lies with the management of the Company, and our responsibility is to express our opinion on the non-consolidated financial statements and the accompanying detailed statements from anindependent position.
We conducted our audit in accordance with the auditing standards generally accepted in Japan. Those auditing standards require that we obtain reasonable assurance that there are no material false reprsentationsin the non-consolidated financial statements and the accompanying detailed statements. The audit is conducted on a test basis and includes the examination of representations in the non-consolidated financialstatements and the accompanying detailed statements as a whole, including the examination of the accounting principles adopted by the management and the method of application thereof and the evaluationof the estimate by the management. We have determined that, as a result of the audit, we have obtained areasonable basis for giving an opinion.
We confirm that the non-consolidated financial statements and the accompanying detailed statementsreferred to above fairly represent, in all material respects, the status of assets and earnings for the period, forwhich the non-consolidated financial statements and the accompanying detailed statements were prepared,in conformity with the accounting standards generally accepted in Japan.
Our firm or we in charge have no financial or other interest in the Companyrequired to be stated by the provisions of the Certified Public Accountants Law.
Nitts Shoji Co.,Ltd. 2
3.Summary of Financial Results (March 31)
Sales(Millions of yen)
Operating Profit(Millions of yen)
Ordinary Profit(profit before extraordinary items)(Millions of yen)
Net Profit(Millions of yen)
Earnings per Share(Yen)
Net Assets(Millions of yen)
¥357,9356,3107,2093,602
409.4239,534
2009¥364,486
5,7446,5823,623
411.7736,949
2008Millions of yen
2010 2010
Thousands ofU.S. dollars
¥ 316,8235,8486,7873,377
383.7742,635
$ 3,405,23462,85472,94736,296
4.12458,243
SalesOperating profitOrdinary profitNet profitEarnings per share (yen/U.S. dollars)Net assets
Nitts Shoji Co.,Ltd. 4
¥ 176,9091,3955,362
32,6589,7384,399
751114,870
3,0524,978-296
45,69036,214
32116,2211,4332,866
463464
13,47189675
2,23933
409465946383
7,2361,6131,534
33820116
1,584894141
1,527-1,029
¥ 222,600
March 31,2009
Millions of yenMarch 31,
2010March 31,
2010
Thousands ofU.S. dollars
¥ 181,3241,2724,258
37,91611,1112,792
952117,154
2,4123,682-228
44,79835,131
23615,3301,3202,542
317465
13,681781455
2,27818
409986635228
7,3872,0041,534
2882082
1,579663288
1,202-817
¥ 226,123
$ 1,948,88213,67145,765
407,523119,42130,00810,232
1,259,17825,92439,574-2,450
481,491377,590
2,536164,76714,18727,3213,4074,997
147,0448,3944,890
24,484193
4,39510,5976,8252,450
79,39521,53916,487
3008,813
88116,9717,1253,095
12,919-8,781
$ 2,430,384
ASSETSCurrent assets:
Cash and bank depositsNotes receivable-----tradeAccounts receivable-----tradeLease receivablesInventoriesInstallment investment assetsLease investment assetsDeferred tax assetsOther current assetsLess: allowance for doubtful accounts
Fixed assets:Property and equipment:
Lease assetsBuildingsStructuresMachinery & equipmentVehiclesTools, furniture and fixturesLandassets leased to othersConstruction in progress
Intangible fixed assets:Lease assetsLeaseholdSoftwareGoodwillOthers
Investments and other assets:Investment securitiesInvestments in subsidiaries’ stockInvestments in capital other than stockInvestments in subsidiaries’ capital other than stockLong-term loans receivableLong-term prepaid expensesLong-term depositsDeferred tax assetsOther investmentsLess: allowance for doubtful accounts
Total assets
4. Balance Sheet
¥ 111,1217,150
36,933152
39,91011,7001,4007,272
362,0072,830
411,686
71,94466,406
730220
2,8591,154
135438
¥ 183,065
4,0003838
1,000182
29,7624,020
33,96534,965
-039,002
5310
53139,534
¥ 222,600
March 31,2009
Millions of yenMarch 31,
2010March 31,
2010
Thousands ofU.S. dollars
¥ 106,7185,286
38,495120
40,9097,000
6756,0242,234
7402,826
432,360
76,76971,996
54155
2,5031,617
100341
¥ 183,488
4,0003838
1,000172
32,7623,879
36,81437,814
-041,851
7820
78342,635
¥ 226,123
$ 1,147,01256,814
413,7461,289
439,69275,2367,254
64,74624,0117,953
30,374462
25,365
825,118773,817
5801,665
26,90217,379
1,0743,665
$ 1,972,141
42,992408408
10,7481,848
352,12841,691
395,679406,427
-0449,817
8,4040
8,415458,243
$ 2,430,384
Nitts Shoji Co.,Ltd. 5
LIABILITIESShort-term liabilities:
Notes payable-----tradeAccounts payable-----tradeLease obligationsShort-term loansCommercial paperDebt for transfer of accounts receivableAccounts payable-----otherIncome taxes payableAdvance receiptsAccrued bonusesAccrued bonuses to officersOther current liabilities
Long-term liabilities:Long-term loansLong-term debt for transfer of accounts receivableLong-term lease obligationsLong-term advance receiptsRetirement benefit reserveRetirement benefit reserve for directorsand corporate auditors
Other long-term liabilitiesTotal liabilities
NET ASSETSCommon stock
Capital reserveTotal capital surplus
Earned surplus reserveReserve for tax deferment on replacement of assetsGeneral reserveRetained earnings brought forward
Other retained earningsTotal retained earningsTreasury stockTotal shareholders’ equityNet unrealized gains(losses) on securitiesNet deferred profits(losses) on hedges
Difference of appreciation and conversionTotal net assets
Total liabilities and net assets
5. Income Statement
Nitts Shoji Co.,Ltd. 6
¥ 357,935
321,153
1,136
35,645
(+) 47
35,693
29,383
6,310
1,407
86
1,320
507
344
163
7,209
26
7
19
455
36
282
-
136
6,781
1,294
1,884
¥ 3,602
Year endedMarch 31, 2009
Millions of yenYear ended
March 31, 2010Year ended
March 31, 2010
Thousands ofU.S. dollars
¥ 316,823
282,641
1,118
33,062
(+) 41
33,104
27,255
5,848
1,381
63
1,317
443
358
84
6,787
82
8
73
409
33
126
207
41
6,459
2,763
319
¥ 3,377
$ 3,405,234
3,037,843
12,016
355,352
440
355,803
292,938
62,854
14,843
677
14,155
4,761
3,847
902
72,947
881
85
784
4,395
354
1,354
2,224
440
69,421
29,696
3,428
$ 36,296
Sales
Cost of sales
Cost of capital
Net
Net deferred gain on installment sales
Gross profit
Selling, general and administrative expenses
Operating profit
Non-operating income:
Interest earned and dividend income
Other
Non-operating expenses:
Interest expenses
Other
Ordinary profit (profit before extraordinary items)
Extraordinary income:
Proceeds from sales of fixed assets
Others extraordinary income
Extraordinary loss:
Loss on sale of fixed assets
Loss on disposal of fixed assets
Impairment loss
Other extraordinary loss
Profit before income taxes
Current income taxes
Deferred income taxes
Net profit
29,762$319,883
3,000$32,244
3,000$32,244
32,762$352,128
Nitts Shoji Co.,Ltd. 7
6. Nonconsolidated Statement of Changes In Net Assets
Shareholders’ equityRetained earningsCapital surplus
Capitalreserve
Commonstock
Earnedsurplusreserve
Other retained earnings
Millions of yen
Millions of yen
Retained earningsbrought forward
Generalreserve
Reserve for taxdeferment on
replacement ofassets
4,020$43,207
-527$-5,664
3,377$36,296
9
$96
-3,000$-32,244
-141$-1,515
3,879$41,691
182$1,956
-9
$-96
-9$-96
172$1,848
1,000$10,748
-
1,000$10,748
38$408
-
38$408
4,000$42,992
-
4,000$42,992
Balance of March 31, 2009(Thousands of U.S. dollars )
Changes during the period:
Cash dividends(Thousands of U.S. dollars )
Net profit(Thousands of U.S. dollars )
Reversal of reserve for taxdeferment on replacement of assets(Thousands of U.S. dollars )
General reserve(Thousands of U.S. dollars )
Net changes of items otherthan shareholders’ equity
Total changes during the period(Thousands of U.S. dollars )
Balance of March 31, 2010(Thousands of U.S. dollars )
Shareholders’ equity
Net unrealizedgains(losses) on
securities
Net deferredprofits(losses)
on hedges
Total differenceof appreciationand conversion
Total net assetsTotalshareholders’
equity
Treasurystock
39,534$424,914
-527$-5,664
3,377$36,296
-
-
251
$2,697
3,100$33,319
42,635$458,243
531$5,707
-
-
-
-
251
$2,697
251$2,697
783$8,415
0$0
0
$0
0$0
0$0
531$5,707
251
$2,697
251$2,697
782$8,404
39,002$419,196
-527$-5,664
3,377$36,296
-
-
-
2,849$30,621
41,851$449,817
-0$-0
-
-0$-0
Difference of appreciation and conversion
Balance of March 31, 2009(Thousands of U.S. dollars )
Changes during the period:
Cash dividends(Thousands of U.S. dollars )
Net profit(Thousands of U.S. dollars )
Reversal of reserve for taxdeferment on replacement of assets
General reserve
Net changes of items otherthan shareholders’ equity(Thousands of U.S. dollars )
Total changes during the period(Thousands of U.S. dollars )
Balance of March 31, 2010(Thousands of U.S. dollars )
Year ended March 31, 2010
Nitts Shoji Co.,Ltd. 8
7. Profile of the Company (As of March 31, 2010)
8. Overseas Offices (As of March 31, 2010)
NITTSU SHOJI CO., LTD.
Date of establishment: May 1964Number of shares issued: 8.8 millionPaid-in capital: ¥4.0 billionNumber of employees: 2,601Business establishments: 246 locations
NITTSU SHOJI U.S.A.,INC.
Head office:Chicago, U.S.A.
Branches:Los Angeles, Chicago, Troy
Date of establishment:March 1995
Lines of business:• Export/import
agent services• Sales of packaging
materials, direct-from-manufacturer delivery, and sales of gifts
• Export of packag-ing materials, con-
struction materials, food products, and general merchan-dise
• Intermediary servic-es for real estate rentals
DALIAN NITTSUCONTAINERMANUFACTURINGCO., LTD.
Location:Dalian Economic andTechnological Development Zone,China
Date of establishment:February 1991
Lines of business:• Manufacturing and
sales of shippingcontainers,roll boxes, and netpallets
NITTSU SHOJI (THAILAND) CO., LTD.
Location:Bam Pine, Thailand
Date of establishment:December 1996
Lines of business:• Packaging services• Export/import
agent services• Sales of packaging
materials• Warehousing
PT. NITTSU SHOJIINDONESIA
Location:Bekasi, Indonesia
Date of establishment:September 2003
Lines of business:• Packaging services• Export/import
agent services• Sales of packaging materials• Warehousing
NITTSU SHOJI (WU HAN) CO., LTD.
Location:Wuhan, Chaina
Date of establishment:April 2004
Lines of business:• Packaging and
business pertainingthereto
• Warehousing• Manufacturing and
sales of packagingmaterials
• Transportationmanagement
NITTSU SHOJI (H.K.)CO., LTD.
Location:Hong Kong, China
Date of establishment:August, 2004
Lines of business:• Import and export• Sales and purchas-
ing of merchandise• Packaging and
business incidentalthereto
• Total number of full-service branches: 9• Other branches: 33
Nitts Shoji Co.,Ltd. 9
9. Organization Chart (As of July 1, 2010)
General Shareholders,Meeting
Board of Auditors
Board of Directors
Board of Corporate Officers
President
Business Department
Management Department
Corporate Planning Department
Audit Department
General Merchandise Division
Tokyo LS CenterOgishima LS CenterUtsunomiya LS CenterNagoya LS CenterKobe LS CenterSayama LS CenterHamamatu LS CenterSuzuka LS CenterKyushu LS Center
Yokohama BranchChiba BranchSaitama BranchMaebashi BranchUtsunomiya BranchMito BranchKofu Branch
Shizuoka BranchGifu BranchMie BranchKanazawa BranchToyama Branch
Kyoto BranchKobe Branch
Okayama BranchYamaguchi Branch
Matsuyama Branch
Kitakyushu BranchSaga Kurume BranchNagasaki BranchKumamoto BranchKagoshima BranchMiyazaki Branch
Nagano Branch
Koriyama BranchMorioka BranchAomori BranchYamagata BranchAkita Branch
Hakodate BranchAsahikawa BranchKushiro BranchObihiro Branch
Liquefied Petroleum Gas Division
Real Estate Division
Business Planning Division
General Affairs Division
Personnel & IndustrialRelations Division
Legal Affairs & Compliance Division
Accounting Division
Information System Division
Corporate Planning Division
Audit Division
Distribution Equipment Division
Leasing Division
Insurance Division
Maintenance & ManufacturingDivision
Petroleum Division
LogisticsSupport Division
TokyoRegional Branch
NagoyaRegional Branch
OsakaRegional Branch
HiroshimaRegional Branch
TakamatsuRegional Branch
FukuokaRegional Branch
NiigataRegional Branch
SendaiRegional Branch
SapporoRegional Branch
Basis of the report
• This report is the English-language translation of the Japanese Business Report for the 63th fiscal term
and has been prepared for “the understanding of readers outside Japan”.
• U.S. dollar amounts in this report are translated from yen, for convenience only, at the rate of ¥ 93.04
to US$1.00.
Our marketing symbol-----“ALOZ”-----was created from the letters “A” to ”Z,” which suggest “all”or “all things” and the letters “LO,” which are the first two letters in the word “logistics.”ALOZ therefore is intended to convey the meaning that, although distribution andlogistics form the base of our Company’s activities, we examineall future possibilities for our operations and provide a broad range ofproducts and services.
We intend to use ALOZ as the banner of our Company’s image strategy towardthe market and the general public.
NITTSU SHOJI CO., LTD.Hamarikyu Parkside Place
6-10, Tsukiji 5-chomeChuo-ku, Tokyo 104-8406
Tel: 03-3549-8800http://www.nittsushoji.co.jp
printed in Japan