At the Frontier of Innovation · and overseas markets. As in 2007, orders for driers from China and Southeast Asia are developing favorably. Tsukishima Kikai holds 70% market share

Annual Report 2008

At the Frontier of Innovation

17-15, Tsukuda 2-chome, Chuo-ku, Tokyo 104-0051, Japan

TEL. +81-(0)3-5560-6535 7

FAX. +81-(0)3-3536-0573

http://www.tsk-g.co.jp/en/index.html

Printed in JapanThis catalog is printed withenvironmentally friendly soy ink.

Founded in 1905, Tsukishima Kikai has over more than a

century developed extensive expertise in diverse technology

fields, ranging from waterworks, sewage treatment facilities

and incinerators to industrial waste treatment, filtration,

separation and other technologies.

We are committed to contributing to the further

development of industry and society through our continuous

efforts in these fields. Now in our second century, we have

taken up the challenge of entering new technological fields

with high growth potential, including vacuum and biomass

technologies. By adhering to the principle of “Selection

and Concentration,” we aim to be a highly profitable and

competitive company that keeps a sharp eye on the present,

while actively pursuing new technological advancements at

the frontier of innovation.

Profile

TSK Network

37

Offices

Head Office, Tokyo Branch, Osaka Branch,

Sapporo Branch, Sendai Branch,

Yokohama Branch, Nagoya Branch,

Hiroshima Branch, Fukuoka Branch,

Wakayama Sales Office, Okinawa Sales Office,

Niigata Office, Kumamoto Office

Factories and Laboratories

Ichikawa Factory, Ichikawa R&D Center

Environmental Technology Development Center

Group Companies (*consolidated subsidiary)

Tsukishima Technology Maintenance Service Co., Ltd.*

Tsukishima Techno Machinery Co., Ltd.*

Tsukishima Techno Solution Co., Ltd.

Tsukishima Kankyo Engineering Ltd.*

Sun Eco Thermal Co., Ltd.*

Samukawa Water Service Co., Ltd.*

Tsukishima Business Support Co., Ltd.

Japan Overseas

Offices

TSK Jakarta Representative Office

TSK Hanoi Representative Office

TSK Mumbai Liaison Office

Group Companies

Tsukishima Engineering Singapore Pte. Ltd.

Tsukishima Engineering Malaysia Sdn. Bhd.

TSK Engineering Taiwan Co., Ltd.

TSK Engineering (Thailand) Co., Ltd.

01

Chemical plants

New energyWaterworks and sewage treatment

Antipollution plants

Waste and wastewater treatment

Bio technologyVacuum technology

Food & pharmaceutical plants

Industrial field

Environmental field

Tsukishima Kikai has obtained an order for one of the largest biomass ethanol plants to use non-food rice as a raw material in Japan. At the new plant, Tsukishima Kikai will simultaneously produce fuel ethanol and introduce a process for manufacturing livestock feed from fermentation residue, thus applying not only its ethanol technologies but also expertise in solid-liquid separation and drying technologies necessary for feed manufacture. In a related development, Tsukishima Kikai began full-scale operation of a bioethanol plant completed in Thailand at the beginning of this year that uses molasses and bagasse as raw materials. Tsukishima Kikai will continue to contribute to global warming mitigation efforts by means of ethanol conversion technologies and other biomass utilization technologies.

Favorable business conditions for chemical plant facilities continued from the previous term, and Tsukishima Kikai obtained numerous orders for these facilities. In particular, Tsukishima Kikai obtained an order from a South Korean company for fertilizer plant facilities that use all of the Company’s core crystallization, filtering, separation and drying technologies. In this project, the customer’s favorable evaluation of proprietary unit operation technologies led to the purchase order. Tsukishima Kikai will continue to take advantage of these core unit operation technologies to engage in selling activities in domestic and overseas markets.

As in 2007, orders for driers from China and Southeast Asia are developing favorably. Tsukishima Kikai holds 70% market share worldwide for steam tube dryers, the major equipment used in various processes for the production of terephthalic acid, a material used in polyester fiber. In response to increasing energy demand, the Company intends to engage in solution-based sales involving proposal for the use of steam tube dryers in various applications such as moisture control facilities for coal and ore used at steel mills.

Biomass Ethanol Plants in Japan and Overseas

Orders for Chemical Plants Remain Favorable

Steam Tube Dryers in China and Southeast Asia

Topics for 2008

Core technologies

02

A Message from the Management

I am pleased to present the Annual Report for fiscal 2007 of the Tsukishima Kikai Group

(Tsukishima Kikai Co., Ltd. and its consolidated subsidiaries).

Although the Japanese economy in fiscal 2007 (April 1, 2007–March 31, 2008) saw a

continued downturn in public investment, investment in facilities by the private sector grew

steadily. Supported by overall growth in the global economy and investment in facilities by

the private sector, Japanese corporate earnings continued to see steady growth.

The U.S. subprime loan crisis in the second half of the year, however, led to falling stock

and bond prices as well as soaring prices of crude oil, raw materials and food, which impacted

on corporate earnings and personal consumption, demonstrating the unpredictability of

future economic trends.

In the machinery industry, despite the continually challenging business environment

brought by competition in the domestic water purification and sewage business, the market

continued to expand, albeit slowly, thanks to steady growth in investment in industrial

machinery facilities and continued export to Asian countries.

Faced with such conditions, in the current consolidated fiscal year (the second year since the

launch of the Group’s medium-term business plan, NEXT 100), TSK Group received more product

orders in the ‘Life cycle’ business by engaging in comprehensive maintenance and management

of water purification plants and sewage treatment plants over a two-year period as part of its

Water Environment Business. New product launches also contributed toward this order increase.

In addition, TSK Group recorded order increases in new industrial business fields relating

to LCD panels, solar cells and electronic products, such as the biomass ethanol field and the

vacuum deposition field.

Maintaining Our Focus on Technological Fields of High Growth Potential

Kazuhiko YamadaPresident and Chief Executive Officer,Representative Director

03

Orders Received, Net Sales and ProfitsWith regards to sales performance in fiscal 2007, growth in the Industrial Business helped compensate

for a slowdown in the Water Environment Business. In spite of this, product orders were down by 4.0%

year on year to ¥83,119 million because of a carry-over to next fiscal year and other factors, and net

sales decreased by 1.7% to ¥77,704 million from the previous year.

However, regarding corporate earnings, the Group’s cost reductions and measures to hold down

selling, general and administrative expenses enabled an increase in operating income by 6% to

¥3,254 million over the previous year.

The increase in operating income and dividend income caused ordinary income to rise by 17.5% to ¥3,571

million compared with the previous year. On the other hand, due to the costs of some construction projects

and estimated additional costs being calculated, net income fell 18.0% to ¥827 million over the previous year.

In the Water Environment Business, in which market demand for machinery generally decreased due to

shrinkage of public investment, TSK Group made the best use of the value chain for design, construction

and operation while proactively implementing the proposed business activities, thereby taking product

orders to ¥44,808 million, net sales to ¥36,010 million, and operating income to ¥357 million in fiscal 2007.

In the Industrial Business, TSK has aggressively developed overseas business opportunities

for core products, and maintained the amount of orders received in the vacuum deposition field

and biomass ethanol field, the latter of which is now of great relevance because of CO2 emission

reduction efforts and skyrocketing crude oil prices.

In addition, the Company’s core product—large-size steam tube dryers—has been successfully

introduced to the market for applications other than those related to terephthalic acid production.

These achievements led product orders to rise to ¥38,311 million, net sales to increase to ¥41,693

million and operating income to climb to ¥2,896 million in fiscal 2007.

Investment in FacilitiesTotal investment in facilities in fiscal 2007 amounted to ¥601 million. Principal investment comprised

construction of a business system and a technical support system.

Research and DevelopmentIn the Water Environment Business, we launched a high-efficiency, energy-saving dewatering machine. The

development of a new high-efficiency, environment-friendly incineration system is progressing successfully,

as is the development of a sludge-to-fuel recycling system. In the Industrial Business, while working to

improve and develop process equipment, we also focus on developing our own process for the biomass

ethanol field, vacuum deposition field and chemicals field, which are all expected to grow.

R&D investment in the current consolidated fiscal year totaled ¥1,177 million.

Future Perspectives & ChallengesSupported by robust growth in investment in facilities and personal consumption, the Japanese economy

is expected to receive a boost from a substantial increase in goods exported, mainly to China. However,

the Company still has to develop insight into future economic conditions and formulate appropriate

countermeasures against the soaring crude oil and raw material prices and unstable foreign exchange

and stock markets in addition to the slowing U.S. economy and its impact on the global market.

In response to these conditions, in the Water Environment Business, TSK Group will continue to

conduct R&D based on high technology and diversified achievements, and proactively create new

business by making the best use of its sludge treatment technology.

As for the Industrial Business, TSK Group will make every effort to secure orders for core products

and leverage its superior technology to win more customers at every opportunity.

We sincerely look forward to the support of our stockholders, investors and customers in the years to come.

Sales (Millions of yen)

Operating income (Millions of yen)

Shareholders` equity (Millions of yen)

73,100

2,471

48,318

74,183

2,299

54,363

79,073

3,072

52,522

77,704

3,254

44,692

’05

’05

’05

’06

’06

’06

’07

’07

’07

’08

’08

’08

Board of Directors

Torahiko Maki

Board Member,Executive Officer

Toshiharu Nagamine


Hiroshi Sano


Kazuhiko Yamada

President and Chief Executive Officer,Representative Director

Katsumi Ishiyama


Naoyuki Oishi

Senior Managing Executive Officer,Representative Director

Katsunori Nishida


Tokio Motohashi

Board Member,Managing Executive Officer

Kunihiko Sawa

Board Member

04

05

F i n a n c i a l S e c t i o n

Thousands of U.S. dollars Millions of yen (Note 1)

2008 2007 2006 2005 2004 2008

For the year:

Net sales ......................................................

Operating income .........................................

Income before income taxes .........................

Net income ..................................................

At year-end:

Total assets ...................................................

Total shareholders’ equity .............................

Yen U.S. dollars

Per share:

Net income ..................................................

Cash dividends .............................................

Number of shares outstanding

(in thousands) ..................................................

Note: U.S. dollar amounts are translated from yen at the rate of ¥100.19 to US$1, solely for the convenience of the reader. The fisical year ended March 31, 2005 dividend includes a commemorative diviidend of ¥5.00 per share.

¥74,184

2,300

2,598

1,660

107,924

54,364

¥35.19

15.00

45,626

¥79,074

3,072

1,821

1,009

117,502

44,559

¥22.16

15.00

45,626

¥77,704

3,254

2,057

827

102,925

44,692

¥18.18

15.00

45,626

$775,566

32,478

20,531

8,254

1,027,298

446,072

$0.18

0.15

¥73,100

2,472

3,721

2,653

97,245

48,318

¥56.96

20.00

45,626

Net Income per Share (Yen) Return on Equity (%) Equity per Share (Yen)

’06 ’07 ’08’05’04 ’06 ’07 ’08’05’04 ’06 ’07 ’08’05’04

5.7

3.2

1.7

5.7

995.02

1,059.54

1,192.84

1,018.97

52.07

56.96

35.19

18.18

22.16

1.9

1,148.28

¥69,193

4,258

4,034

2,442

91,022

45,421

¥52.07

15.00

45,626

Five-Year SummarY (ConSolidated)TSUKISHIMA KIKAI CO., LTD. and its consolidated subsidiariesYears ended March 31

06

ASSEtS Thousands of U.S. dollars Millions of yen (Note 1)

2008 2007 2008

Current assets:

Cash and time deposits .................................................................................Marketable securities (Notes 2, 5) ................................................................Notes and accounts receivable .....................................................................Allowance for doubtful accounts (Note 2) ....................................................Inventories (Notes 2, 4) ................................................................................Deferred income taxes (Note 9)....................................................................Other current assets ..................................................................................... Total current assets .................................................................................

Property, plant and equipment (Notes 2):

Land ...........................................................................................................Buildings and structures ................................................................................Machinery and equipment ............................................................................Construction in progress ...............................................................................

Less: accumulated depreciation..................................................................... Net property, plant and equipment ...........................................................

Investments and other assets:

Software .....................................................................................................Investments in securities (Notes 2, 5, 6) .......................................................Long-term loans (Note 6) .............................................................................Deferred income taxes (Note 9)....................................................................Other assets .................................................................................................Less: allowance for doubtful accounts (Note 2) ............................................ Total investments and other assets ...........................................................

total assets .......................................................................................

See Notes to Consolidated Financial Statements.

ConSolidated BalanCe SheetS

TSUKISHIMA KIKAI CO., LTD. and its consolidated subsidiariesYears ended March 31, 2008 and 2007

¥ 11,775 4,302 39,071 (80) 7,375 4,404 1,595 68,442

6,120 9,220 15,298 66 30,704 (17,245) 13,459

2,265 16,045 1,058 1,130 642 (116) 21,024

¥102,925

¥ 12,135 1,700 48,714 (93) 5,162 2,942 2,161 72,721

6,126 9,256 15,149 57 30,588 (16,276) 14,312

1,120 26,003 280 1,105 2,635 (674) 30,469

¥117,502

$117,527 42,938 389,969 (798) 73,610 43,956 15,920 683,122

61,084 92,025 152,690 659 306,458 (172,123) 134,335

22,607 160,146 10,560 11,278 6,408 (1,158) 209,841

$1,027,298

07

LIABILItIES AND NEt ASSEtS Thousands of U.S. dollars Millions of yen (Note 1)

2008 2007 2008

Current liabilities:Notes and accounts payable Trade ....................................................................................................... Other ......................................................................................................Short-term loans (Note 6) ............................................................................Current portion of long-term loans (Note 6) .................................................Accrued income taxes (Note 9) ....................................................................Accrued expenses ........................................................................................Accrued warranty (Note 2) ..........................................................................Reserve for losses on contracts (Note 2) .......................................................Advances received........................................................................................Other current liabilities ................................................................................. Total current liabilities ..........................................................................

Long-term liabilities:Long-term loans (Note 6) .............................................................................Deferred income taxes (Note 9)....................................................................Provision for post-employment benefits (Notes 2, 7) .....................................Reserve for retirement payments to officers (Note 2) ...................................Other ........................................................................................................... Total long-term liabilities

Contingent liability (Note 10)

Net assets:Shareholders’ equity:Common stock, Authorized: 180 million shares in 2008 and 2007 Issued: 45,625,800 shares in 2008 and 2007 ............................................Additional paid-in capital ...............................................................................Retained earnings .........................................................................................Treasury stock .............................................................................................. Total shareholders’ equity ....................................................................

Valuation and translation adjustmentsNet unrealized gains on available-for-sale securities .......................................Deferred gains or losses on hedges ................................................................ Total valuation and translation adjustments ..........................................Minority interests ...................................................................................... Total net assets .................................................................................... total liabilities and net assets .....................................................


¥ 23,485 3,427 200 657 1,918 1,766 2,659 239 4,778 3,199 42,328

6,322 834 6,292 344 84 13,876

6,647 5,486 32,665 (106) 44,692

1,764 (90) 1,674 355 46,721 ¥102,925

¥ 27,218 2,131 550 607 1,203 2,023 2,514 — 6,373 3,903 46,522

6,847 4,963 6,294 284 70 18,458

6,647 5,486 32,521 (95) 44,559

7,840 (137) 7,703 260 52,522 ¥117,502

$234,405 34,205 1,996 6,558 19,144 17,626 26,540 2,385 47,689 31,929 422,477

63,100 8,324 62,801 3,434 838 138,497

66,344 54,756 326,030 (1,058) 446,072

17,607 (898) 16,709 3,543 466,324 $1,027,298

08

ConSolidated StatementS oF inCome



2008 2007 2008

Net sales (Note 14) ....................................................................................Cost of sales ............................................................................................... Gross profit ........................................................................................ Selling, general and administrative expenses ........................................ Operating income Other income (expenses):

Interest and dividend income .................................................................... Interest expenses ..................................................................................... Gain on sales of investments in securities ................................................. Gain on sales of property, plant and equipment ........................................ Loss on disposal of property, plant and equipment .................................... Write-down of investments in securities ................................................... Loss on construction contracts ................................................................ Compensation loss on construction contracts .......................................... Provision of accrued warranty .................................................................. Provision of allowance for doubtful accounts ........................................... Other, net (Note 11) .................................................................................

Income before income taxes

Income taxes (Notes 2, 9):

Current.................................................................................................... For prior periods ....................................................................................... Deferred .................................................................................................. Total income taxes Minority interests ..................................................................................... Net income .......................................................................................

Yen U.S. dollars

Per share

Net income .............................................................................................. Cash dividends .........................................................................................


¥ 77,704 64,252 13,452

10,198 3,254

563 (215) 1,435 474 (5) (152) (249) (1,310) (1,700) — (38) (1,197) 2,057

2,336 290 (1,500) 1,126 (104) ¥ 827

¥ 18.18 15.00

¥ 79,074 65,043 14,031

10,959 3,072

266 (236) 1,762 51 (44) — (1,311) — (1,600) (70) (69) (1,251) 1,821

1,532 — (879) 653 (159) ¥ 1,009

¥ 22.16 15.00

$ 775,566 641,301 134,265

101,787 32,478

5,619 (2,146) 14,323 4,731 (50) (1,517) (2,485) (13,075) (16,968) — (379) (11,947) 20,531

23,316 2,895 (14,972) 11,239 (1,038) $ 8,254

$ 0.18 0.15

09

ConSolidated StatementS oF ChangeS in net aSSetS


Thousands Millions of yen

Valuation and translation Shareholders’ equity adjustments

Balance as of March 31, 2007 ........ 45,626 ¥6,647 ¥5,486 ¥32,521 ¥(95) ¥44,559 ¥7,840 ¥(137) ¥7,703 ¥ 260 ¥52,522

Cash dividends ................................. — — — (683) — (683) — — — — (683)

Net income for the year ended March 31, 2008 .............................. — — — 827 — 827 — — — — 827

Purchase of treasury stock ................ — — — — (11) (11) — — — — (11)

Net changes of items other than those in shareholders’ equity ........... — — — — — — (6,076) 47 (6,029) 95 (5,934)

Balance as of March 31, 2008 ........ 45,626 ¥6,647 ¥5,486 ¥32,665 ¥(106) ¥44,692 ¥1,764 ¥(90) ¥1,674 ¥355 ¥46,721

Thousands Thousands of U.S. dollars (Note 1)


Balance as of March 31, 2007 ....... 45,626 $66,344 $54,756 $324,593 $(948) $444,745 $78,251 $(1,367) $76,884 $2,595 $524,224

Cash dividends ................................. — — — (6,817) — (6,817) — — — — (6,817)

Net income for the year ended March 31, 2008 .............................. — — — 8,254 — 8,254 — — — — 8,254


Net changes of items other than those in shareholders’ equity ........... — — — — — — (60,644) 469 (60,175) 948 (59,227)

Balance as of March 31, 2008 ........ 45,626 $66,344 $54,756 $326,030 $(1,058) $446,072 $17,607 $(898) $16,709 $3,543 $466,324


Number of shares of common

stockissued

Commonstock

Additionalpaid-incapital

Retainedearnings

Treasurystock

Totalshareholders’

equity

Deferredgains or

losses on hedges

Totalvaluation and

translationadjustments

Minorityinterests

Totalnet assets

Net unrealizedgains on

available-for-sale securities


stockissued

Commonstock


Retainedearnings

Treasurystock


equity

Deferredgains or

losses on hedges

Totalvaluation and


Minorityinterests

Totalnet assets





Balance as of March 31, 2006 ........ 45,626 ¥6,647 ¥5,486 ¥32,390 ¥(77) ¥44,446 ¥9,918 — ¥9,918 ¥ 106 ¥54,470

Cash dividends ................................. — — — (683) — (683) — — — — (683)

Bonuses to officers ........................... — — — (58) — (58) — — — — (58)

Net income for the year ended March 31, 2007 .............................. — — — 1,009 — 1,009 — — — — 1,009

Decrease resulting from increase in a consolidated subsidiary ............. — — — (137) — (137) — — — — (137)


Net changes of items other than those in shareholders’ equity ........... — — — — — — (2,078) (137) (2,215) 154 (2,061)

Balance as of March 31, 2007 ........ 45,626 ¥6,647 ¥5,486 ¥32,521 ¥(95) ¥44,559 ¥7,840 ¥(137) ¥7,703 ¥260 ¥52,522


stockissued

Commonstock


Retainedearnings

Treasurystock


equity

Deferredgains or

losses on hedges

Totalvaluation and


Minorityinterests

Totalnet assets



10


2008 2007 2008Cash flows from operating activities:Income before income taxes and minority interests .............................................Adjustments for: Depreciation and amortization ....................................................................... Increase (decrease) in provision for post-employment benefits ........................ Increase (decrease) in accrued bonus to employees ........................................ Increase (decrease) in accrued bonus to officers ............................................. Increase (decrease) in reserve for retirement payments to officers .................. Increase (decrease) in allowance for doubtful accounts .................................. Increase in accrued warranty ......................................................................... Increase in reserve for losses on contracts ...................................................... Interest and dividend income .......................................................................... Interest expenses ........................................................................................... Gain on sales of property, plant and equipment ............................................... Loss on disposal of property, plant and equipment .......................................... Gain on sales of investments in securities ....................................................... Write-down of investments in securities ........................................................ (Increase) decrease in notes and accounts receivable ...................................... Increase (decrease) in advances received ........................................................ (Increase) decrease in inventories ................................................................... Increase (decrease) in notes and accounts payable, trade ................................ Bonuses to officers ........................................................................................ Other ............................................................................................................ Subtotal ....................................................................................................

Interest and dividend income received .................................................................Interest expenses paid .........................................................................................Income taxes paid ............................................................................................... Net cash provided by (used in) operating activities .....................................

Cash flows from investing activities:Purchase of marketable securities .......................................................................Proceeds from sales of marketable securities .......................................................Purchase of property, plant and equipment ..........................................................Proceeds from sales of property, plant and equipment .........................................Purchase of intangible fixed assets .....................................................................Purchase of investments in securities ..................................................................Proceeds from sales of investments in securities ..................................................Payments for loans receivable .............................................................................Collection of loans receivable ..............................................................................Other Net cash provided by (used in) investing activities ......................................

Cash flows from financing activities:Decrease in short-term loans ..............................................................................Proceeds from long-term loans ...........................................................................Repayments of long-term loans ...........................................................................Additions of treasury stock .................................................................................Cash dividends paid ............................................................................................Cash dividends paid to minority shareholders Net cash used in (provided by) financing activities .....................................

Net increase (decrease) in cash and cash equivalents ..................................Cash and cash equivalents at beginning of period (Note 2, 3) ....................Increase in cash and cash equivalents from a newly consolidated subsidiary .........................................................Cash and cash equivalents at end of period (Note 2, 3) ................................


¥ 1,821

1,331 187 (118) 49 (108) 102 1,598 — (266) 236 (51) 44 (1,762) — (12,627) 4,041 16 383 (58) 337 (4,845)

268 (196) (1,460) (6,233)

(1,003) 1,400 (1,255) 822 (714) (5,854) 3,233 (91) 3 (543) (4,002)

(400) 6,325 (1,977) (18) (683) — 3,247

(6,988) 18,163 410 ¥ 11,585

ConSolidated StatementS oF CaSh FlowS


¥ 2,057

1,629 (2) 100 (49) 59 (570) 145 239 (563) 215 (474) 5 (1,435) 152 9,644 (1,595) (2,213) (3,733) — 1,940 5,551

570 (226) (1,908) 3,987

(1,300) 2,700 (702) 493 (418) (1,369) 2,367 (1,008) 321 601 1,685

(350) 200 (675) (11) (682) (12) (1,530)

4,142 11,585 — ¥15,727

$ 20,531

16,259 (20) 998 (489) 589 (5,689) 1,447 2,385 (5,619) 2,146 (4,731) 50 (14,323) 1,517 96,257 (15,920) (22,088) (37,259) — 19,364 55,405

5,689 (2,256) (19,044) 39,794

(12,975) 26,949 (7,007) 4,921 (4,172) (13,664) 23,625 (10,061) 3,204 5,998 16,818

(3,493) 1,996 (6,737) (110) (6,807) (120) (15,271)

41,341 115,631 — $ 156,972

11

noteS to ConSolidated FinanCial StatementS

The accompanying consolidated financial statements have been prepared from the financial statements filed with the Financial Services Agency as required by the Japanese Financial Instruments and Exchange Law (formerly, the Japanese Securities and Exchange Law) in accordance with accounting principles and practices generally accepted in Japan, which are different from the accounting and disclosure requirements of International Accounting Standards. Certain reclassifications have been made to present the accompanying consolidated financial statements in a format which is familiar to readers outside Japan. For the convenience of the reader, the accompanying consolidated financial statements have been presented in U.S. dollars by translating all Japanese yen amounts at the exchange rate of ¥100.19 to $1, the approximate rate of exchange at March 31, 2008. These translations should not be construed as representations that the Japanese yen amounts could be converted into U.S. dollar amounts at the above rate or at any other rate.

1. Basis of Presenting Consolidated Financial Statements

(a) The accompanying consolidated financial statements include the accounts of the Company and its subsidiaries. Significant intercompany accounts and transactions have been eliminated in consolidation. The investments in unconsolidated subsidiaries and affiliates are stated at cost and the equity method is not applied for the valuation of such investments since they are considered immaterial in the aggregate. The five major subsidiaries that have been consolidated with the Company are listed below:

• TsukishimaTechnologyMaintenanceServiceCo.,Ltd.• TsukishimaTechnoMachineryCo.,Ltd.• SunEcoThermalCo.,Ltd.• TsukishimaKankyoEngineering,Ltd.• SamukawaWaterService,Co.,Ltd.

(b) Marketable Securities and Investments in SecuritiesAll of the Group’s securities are classified as follows: i) Held-to-maturity debt securities, which management has the positive intent and ability to hold to maturity, are reported at amortized cost. ii) Available-for-sale securities are reported at fair value, with unrealized gains and losses, net of applicable taxes, reported in a separate component of net assets. The cost of securities sold is determined based on the moving-average method. Non-marketable available-for-sale securities are stated at cost, determined by the moving-average method.

(c) Inventories (1) Raw materials are stated at cost which is determined by the periodic average method. (2) Supplies are stated at cost which is determined by the moving-average method. (3) Work in process is stated at cost which is determined by the specific cost method.

(d) Property, Plant and EquipmentProperty, plant and equipment are carried at cost. Depreciation is computed by the declining balance method over the estimated useful lives of the assets, except for buildings placed in service after April 1, 1998, for which depreciation is computed on the straight-line method. The range of useful lives is from 3 to 60 years for buildings and structures and from 2 to 15 years for machinery and equipment.

(Change in Accounting Policy)Effective in the fiscal year ended March 31, 2008, in accordance with the revised Japanese Corporation Tax Law, the Company and its domestic subsidiaries changed the depreciation method of tangible fixed assets acquired on or after April 1, 2007. The effect of this change on operating income and income before income taxes for the period is immaterial.

(Additional Information)Effective in the fiscal year ended March 31, 2008, in accordance with the revised Japanese Corporation Tax Law, the Company and its domestic subsidiaries depreciate the residual value of

2. Summary of Significant Accounting Policies

12

tangible fixed assets acquired on or before March 31, 2007, which was depreciated in accordance with former Japanese Corporation Tax Law, to memorandum value in five years using straight-line method. As a result of this change, operating income and income before income taxes each decreased by ¥56 million ($559 thousand) compared with the amount under the formerly applied method.

(e) Allowance for Doubtful AccountsThe allowance for doubtful accounts is provided for in an amount sufficient to cover possible losses on collection. It consists of the estimated uncollectible amount with respect to identified doubtful receivables and an amount calculated on the historical loss experience with respect to remaining receivables.

(f) Accrued WarrantyThe accrued warranty is provided for based on the amounts to be determined as a certain percentage (which is distinguished between domestic and overseas construction) of the amount of completed construction contracts for the year, which is computed as a ratio of the actual repair costs incurred under the warranty against the amounts of completed construction contracts during the past years. In addition, the estimated repair costs for identified individual construction are provided.

(g) Reserve for losses on contractsA reserve for losses on contracts is provided for an estimated amount of probable losses to be incurred in future years in respect of construction projects in progress.

(h) Accrued bonus to officersAccrued bonus to officers is provided for the payment of bonus to officers based on an estimated amount.

(i) Provision for Post-employment BenefitsEmployees who terminate their services with the Company and its consolidated subsidiaries are generally entitled to lump-sum severance payments based on their current basic rates of pay and length of service. In addition, the Company has the tax-qualified pension plans with insurance companies and trust banks. The provision for post-employment benefits recorded in the balance sheets less the pension plan assets was sufficient to satisfy the projected benefit obligation for employee’s services up to the balance sheet date.

(j) Reserve for Retirement Payments to OfficersThe Company and its consolidated subsidiaries have provided for reserve for retirement payments to officers under the retirement benefits plan which are calculated by the estimated amount to be paid if all officers retired at the balance sheet date. With respect to officers’ resignations, the retirement payments calculated under the retirement benefits plan are normally paid subject to approval of the shareholders. The retirement payments to officers should be provided for when such costs can be reasonably estimated.

(k) Income taxesThe Company and its consolidated subsidiaries have adopted the asset-liability method of tax effect accounting to recognize the effect of all temporary differences in the recognition of the tax basis assets and liabilities and their financial reporting amounts.

(l) translation of Foreign CurrenciesForeign currency receivables and payables are translated at the appropriate year-end current rate. Revenue and expense accounts are translated at the rates closely approximate to those prevailing on the transaction dates. Exchange gains and losses arising from the above foreign currency translations and transactions are included in other income or expenses.

(m) Research and Development CostsResearch and development costs are charged to income as incurred.

(n) Recognition of Contract RevenueSales of construction regarding contracts both with an amount of over ¥0.3 billion and a period of over one year are recognized by the percentage of completion method. Other sales are recognized by the completed contract method.

13

(o) Cash EquivalentsFor the purpose of the consolidated statements of cash flows, cash and cash equivalents include highly liquid investments which can be withdrawn without any restriction and with minimum market risk.

(p) Derivative Financial InstrumentsThe Company and certain consolidated subsidiaries use derivative financial instruments to manage their exposures to fluctuations in foreign exchange and interest rates. Foreign exchange forward contracts and interest rate swaps are utilized by the Company and certain consolidated subsidiaries to reduce foreign currency exchange risks and interest rate risks. The Company and certain consolidated subsidiaries do not enter into derivatives for trading or speculative purposes.

Inventories as of March 31, 2008 and 2007 consisted of the following:

Thousands of Millions of yen U.S. dollars

2008 2007 2008Work in process ..............................................................Raw materials and supplies ..............................................

4. Inventories

¥7,122 253 ¥7,375

¥5,002 160 ¥5,162

Cash and cash equivalents as of March 31, 2008 and 2007 consisted of the following:


2008 2007 2008Cash and time deposits ...................................................Marketable securities ......................................................Less: time deposits that mature or become due over three months after the date of acquisition ......................Cash and cash equivalents ..............................................

3. Cash and Cash Equivalents

¥ 11,775 4,002

(50) ¥ 15,727

¥ 12,135 —

(550) ¥ 11,585

$ 117,527 39,944

(499) $ 156,972

$71,085 2,525 $73,610

14

(b) The carrying amounts and aggregate fair values of marketable and investment securities at March 31, 2008 and 2007 were as follows:

Millions of yen

2008 Unrealized Unrealized Cost gains losses Fair value

Securities classified as:Available-for-sale: Equity securities ............................................... ¥12,561 ¥4,640 ¥(1,663) ¥15,538 Others .............................................................. 516 0 (3) 513 ......................................................................... ¥13,077 ¥4,640 ¥(1,666) ¥16,051

Held-to-maturity securities .................................... ¥ 799 ¥ — ¥ (2) ¥ 797

Millions of yen


Securities classified as:Available-for-sale: Equity securities .................................................. ¥12,275 ¥13,356 ¥(141) ¥25,490 Others ................................................................ 10 — (0) 10 ............................................................................ ¥12,285 ¥13,356 ¥(141) ¥25,500

Held-to-maturity securities ...................................... ¥ 1,700 ¥ 1 ¥ (0) ¥ 1,701

Thousands of U.S. dollars


Securities classified as:Available-for-sale: Equity securities .................................................. $125,372 $46,312 $(16,598) $155,086 Others ................................................................ 5,150 0 (30) 5,120 ............................................................................ $130,522 $46,312 $(16,628) $160,206

Held-to-maturity securities ...................................... $ 7,975 $ — $ (20) $ 7,955

(a) Marketable securities and investments in securities as of March 31, 2008 and 2007 consisted of the following:


2008 2007 2008Current: Government and corporate bonds .............................. Others ....................................................................... Non-current: Equity securities ......................................................... Others .......................................................................

5. Marketable Securities and Investments in Securities

¥ — 4,302 ¥ 4,302

¥ 16,038 7 ¥ 16,045

¥ 1,700 — ¥ 1,700

¥25,993 10 ¥26,003

$ — 42,938 $ 42,938

$ 160,076 70 $ 160,146

15

(c) Marketable and investment securities whose fair values were not readily determinable as of March 31, 2008 and 2007 were as follows:

Carrying Amount Thousands of Millions of yen U.S. dollars

2008 2007 2008Available-for-sale: Equity securities ......................................................... Others ....................................................................... ...................................................................................

Held-to-maturity securities .............................................

Interest rates of long-term loans as of March 31, 2008 and 2007 were between 1.39 percent and 4.00 percent and between 0.56 percent and 4.00 percent respectively. The aggregate annual maturities of long-term loans outstanding as of March 31, 2008 were as follows: The aggregate annual maturities of long-term loans payable

Thousands ofYears ending March 31 Millions of yen U.S. dollars

2009 ............................................................................... ¥ 657 $ 6,5582010 ................................................................................ 664 6,6272011 and thereafter .......................................................... 5,658 56,473

The following assets were pledged as collateral for the above long-term loans:


2008 2007 2008Deposit ...........................................................................Account receivable .........................................................Investments in securities..................................................Long-term loans ..............................................................

Short-term loans are represented by 12-month notes, and the weighted average interest rate applicable to such loans as of March 31, 2008 and 2007 were approximately 1.6 percent and 1.4 percent respectively. Long-term loans as of March 31, 2008 and 2007 consisted of the following: Thousands of Millions of yen U.S. dollars

2008 2007 2008Loans, due 2026 .............................................................Less: portion due within one year ....................................

6. Short-term Loans and Long-term Loans

¥6,979 (657) ¥6,322

¥7,454 (607) ¥6,847

$69,658 (6,558) $ 63,100

¥ 406 1,000 ¥1,406

¥1,997

¥409 — ¥409

—

$ 4,052 9,981 $14,033

$19,932

¥506 184 17 86 ¥793

¥472 184 16 26 ¥698

$5,050 1,837 170 858 $7,915

16

Research and development costs charged to income for the years ended March 31, 2008 and 2007 amounted to ¥1,178 million ($11,758 thousand) and ¥1,602 million respectively.

8. Research and Development Costs

Post-employment benefit expenses for the years ended March 31, 2008 and 2007 consisted of the following: Thousands of Millions of yen U.S. dollars

2008 2007 2008a. Service costs .............................................................b. Interest costs .............................................................c. Expected return ........................................................d. Amortization of unrecognized actuarial differences .........e. Amortization of prior service cost .................................f. Post-employment benefit expenses total ....................

¥584 197 (26) 196 (22) ¥929

¥552 199 (26) 230 — ¥955

$5,829 1,966 (259) 1,956 (220) $9,272

Basic measurement of post-employment benefit obligations and other items

2008 2007a. Allocation method for projected post-employment benefits .......... Straight-line method Straight-line methodb. Discount rate................................................................. 2.5% 2.5%c. Expected rate of return ................................................. 1.5% 1.5%d. Amortization period of prior service cost ...................... 11 years —e. Amortization period of actuarial differences ................. 7 years 7 years

7. Provision for Post-employment Benefits

Employees who terminate their service with the Company and its consolidated subsidiaries are generally entitled to lump-sum severance payments. In addition, the Company has tax-qualified pension plans. Provision for post-employment benefit obligations as of March 31, 2008 and 2007 consisted of the following: Thousands of Millions of yen U.S. dollars

2008 2007 2008a. Post-employment benefit obligations ..........................b. Pension assets ............................................................c. Net-total (a+b) ..........................................................d. Unrecognized actuarial differences .............................e. Unrecognized prior service cost .................................f. Provisions for post-employment benefits (c+d+e) ......

¥(8,030) 1,398 (6,632) 648 (308) ¥(6,292)

¥(8,655) 1,706 (6,949) 655 — ¥(6,294)

$ (80,147) 13,953 (66,194) 6,467 (3,074) $ (62,801)

17

Deferred tax assets and liabilities at March 31, 2008 and 2007 were composed of the following: Thousands of Millions of yen U.S. dollars

2008 2007 2008Deferred tax assets: Accrued cost of sales ................................................. Accrued enterprise taxes ........................................... Loss on construction contracts .................................. Accrued warranty ...................................................... Provision for post-employment benefits ...................... Unrealized profit ......................................................... Accrued bonus to employees ..................................... Others ....................................................................... Less-valuation allowance ........................................... Total deferred tax assets .............................................

Deferred tax liabilities: Reserve for deferred gains on sales of fixed assets for tax purposes ..................................... Net unrealized gains on available-for-sale securities ........................................ Total deferred tax liabilities ......................................... Net deferred tax assets (liabilities) ..............................

9. Income taxes

¥ 327 186 1,322 1,082 2,561 81 613 1,406 (290) ¥ 7,288

¥(1,379) (1,209) (2,588) ¥ 4,700

$ 3,264 1,857 13,195 10,800 25,561 808 6,118 14,033 (2,895) $ 72,741

$ (13,764) (12,067) (25,831) $ 46,910

Income taxes applicable to the Company and its consolidated subsidiaries consist of corporate income tax, enterprise taxes and corporate inhabitants’ taxes. The effective income tax rates of the Company and its consolidated subsidiaries differ from the statutory tax rate for the following reasons: 2008 2007Statutory tax rate ............................................................ Expenses not deductible for tax purposes ................... Non-taxable dividend income ..................................... Per capita levy of inhabitant taxes .............................. Tax credit ................................................................... Valuation allowance .................................................. Income taxes for prior periods .................................... Other—net ................................................................Effective tax rate .............................................................

40.7% 10.6 (2.3) 1.9 (16.0) 3.9 — (2.9) 35.9%

The Company and its consolidated subsidiaries were contingently liable for the following items: Thousands of Millions of yen U.S. dollars

2008 2007 2008Guarantees for indebtedness of non-consolidated subsidiaries and others ................................................

10. Contingent Liability

¥666¥26 $260

40.7% 12.6 (7.8) 1.7 (5.9) 1.1 12.4 — 54.8%

¥ 205 158 571 1,023 2,561 83 572 934 (259) 5,848

¥ (1,390) (5,374) (6,764) ¥ (916)

18

The following appropriations of retained earnings of the Company, which have not been reflected in the accompanying consolidated financial statements for the year ended March 31, 2008, was approved at the Board of Directors meeting held on May 28, 2008 Thousands of Millions of yen U.S. dollars

Year-end cash dividends of ¥8.00 ($0.08) per share ............................... ¥364 $3,633

12. Subsequent Event

Other income/(expenses)—other, net consisted of the following items: Thousands of Millions of yen U.S. dollars

2008 2007 2008Gain on insurance ........................................................Depreciation of prepaid expenses .................................Other, net .......................................................................

11. Other Income/ (Expenses)—Other, Net

¥ 26 (9) (86) ¥ (69)

¥ 31 (3) (66) ¥ (38)

$ 309 (30) (658) $ (379)

Finance leases, except those leases for which the ownership of the leased assets is considered to be transferred to the lessee, are accounted for as operating leases. The Company and its consolidated subsidiaries lease certain machinery and equipment, tools, furniture and fixtures and other assets.

The pro forma information of leased assets under finance leases that do not transfer ownership of the leased assets to the lessee on an “as if capitalized” basis for the years ended March 31, 2008 and 2007 is as follows: Thousands of Millions of yen U.S. dollars

2008 2007 2008Machinery and equipment ...............................................Tools, furniture and fixtures.............................................Other assets ....................................................................Less: accumulated depreciation .......................................

Obligations under finance leases as of March 31, 2008 and 2007 were as follows: Thousands of Millions of yen U.S. dollars

2008 2007 2008Due within one year ........................................................Due after one year ..........................................................

13. Finance Leases

¥ 112 112 60 (115) ¥ 169

¥ 112 107 35 (86) ¥ 168

$ 1,118 1,118 599 (1,148) $ 1,687

¥ 51 118 ¥169

¥45 123 ¥168

$ 509 1,178 $1,687

19

Year ended March 31, 2007 Millions of yen Water environment Industrial business business Total Eliminations Consolidated

Sales:Customers ............................. ¥47,366 ¥31,708 ¥79,074 ¥ — ¥ 79,074Intersegment .......................... — — — — — Total .................................. 47,366 31,708 79,074 — 79,074Operating expenses ................ 45,476 30,526 76,002 — 76,002Operating income .................. 1,890 1,182 3,072 — 3,072Total assets ............................ 46,398 32,928 79,326 38,176 117,502Depreciation ........................... 588 734 1,322 — 1,322Capital expenditures............... 1,034 1,127 2,161 — 2,161

(a) Information by Industry SegmentThe Company and its consolidated subsidiaries are primarily engaged in the following industry segments: Water environment business: Water purification plant, Others Industrial business: Chemistry plant, Food plant, Others

(Additional Information)Effective in the fiscal year ended March 31, 2008, in accordance with the revised Japanese Corporation Tax Law, the Company and its domestic subsidiaries depreciate the residual value of tangible fixed assets acquired on or before March 31, 2007, which was depreciated in accordance with former Japanese Corporation Tax Law, to memorandum value in five years using straight-line method. As a result of this change, the operating expenses for Water environment business and Industrial business increased by ¥26 million ($260 thousand) and ¥30 million ($299 thousand), respectively, compared with the amount under the formerly applied method. Accordingly, the operating income of each segment decreased by the same amounts.

14. Segment Information

Year ended March 31, 2008 Millions of yen Water environment Industrial business business Total Eliminations Consolidated

Sales:Customers ............................. ¥36,010 ¥41,694 ¥77,704 ¥ — ¥ 77,704Intersegment .......................... — — — — — Total .................................. 36,010 41,694 77,704 — 77,704Operating expenses ................ 35,653 38,797 74,450 — 74,450Operating income .................. 357 2,897 3,254 — 3,254Total assets ............................ 36,283 32,180 68,463 34,462 102,925Depreciation ........................... 680 922 1,602 — 1,602Capital expenditures............... 262 340 602 — 602

Total rental expenses for the above leases were ¥50 million ($499 thousand) and ¥105 million for the years ended March 31, 2008 and 2007, respectively. The pro forma depreciation expense computed by the straight-line method was ¥50 million ($499 thousand) and ¥105 million for the years ended March 31, 2008 and 2007, respectively. The pro forma information above does not exclude the imputed interest portion because the remaining financial lease obligations are not material, compared with the book values of property, plant and equipment.

20

(b) Overseas SalesOverseas sales by area and percentage of overseas sales over consolidated net sales for the years ended March 31, 2008 and 2007 were as follows:

Thousands of Millions of yen U.S. dollars Percentage

2008 2007 2008 2008 2007Area:Asia........................................ ¥18,419 ¥8,136 $183,841 23.7% 10.3%Other ..................................... 1,151 734 11,488 1.5% 0.9%

.......................................... ¥19,570 ¥8,870 $195,329 25.2% 11.2%

Major countries and areas included in each geographic area are as follows: Asia: Saudi Arabia, China, Korea, Taiwan Other: Portugal, Brazil, Russia

Year ended March 31, 2008 Thousands of U.S. dollars Water environment Industrial business business Total Eliminations Consolidated

Sales:Customers ............................. $359,417 $416,149 $775,566 $ — $775,566Intersegment .......................... — — — — — Total .................................. 359,417 416,149 775,566 — 775,566Operating expenses ................ 355,854 387,234 743,088 — 743,088Operating income .................. 3,563 28,915 32,478 — 32,478Total assets ............................ 362,142 321,190 683,332 343,966 1,027,298Depreciation ........................... 6,787 9,203 15,990 — 15,990Capital expenditures............... 2,615 3,394 6,009 — 6,009

21

i n d e p e n d e n t a u d i t o r S ’ r e p o r t

22

ASSEtS Thousands of U.S. dollars Millions of yen (Note 1)

2008 2007 2008

Current assets:

Cash and time deposits .................................................................................Marketable securities (Notes 2, 5) ................................................................Notes and accounts receivable .....................................................................Allowance for doubtful accounts (Note 2) ....................................................Inventories (Notes 2, 4) ................................................................................Deferred income taxes (Note 8)....................................................................Other current assets ..................................................................................... Total current assets ..................................................................................

Property, plant and equipment (Notes 2, 6):Land ...........................................................................................................Buildings and structures ................................................................................Machinery and equipment ............................................................................Construction in progress ............................................................................... Less: accumulated depreciation..................................................................... Net property, plant and equipment ...........................................................

Investments and other assets:

Software ......................................................................................................Investments in securities (Notes 2, 5) ...........................................................Investments and long-term loans to subsidiaries (Note 6) .............................Other assets .................................................................................................Less: allowance for doubtful accounts (Note 2) ............................................ Total investments and other assets ...........................................................

total assets ...........................................................................................

See Notes to Non-Consolidated Financial Statements.

non-ConSolidated BalanCe SheetS

TSUKISHIMA KIKAI CO., LTD. Years ended March 31, 2008 and 2007

¥ 7,338 4,302 25,279 (26) 5,558 3,596 1,643 47,690

5,750 8,150 10,772 66 24,738 (13,530) 11,208

2,193 15,949 1,708 578 (117) 20,311

¥79,209

¥ 5,784 1,700 34,733 (37) 3,610 2,309 1,099 49,198

5,756 8,183 10,648 21 24,608 (12,824) 11,784

1,049 25,906 1,008 2,566 (674) 29,855

¥90,837

$ 73,241 42,938 252,311 (260) 55,475 35,892 16,399 475,996

57,391 81,345 107,516 659 246,911 (135,044) 111,867

21,888 159,188 17,048 5,769 (1,168) 202,725

$790,588

23

LIABILItIES AND NEt ASSEtS Thousands of U.S. dollars Millions of yen (Note 1)

2008 2007 2008

Current liabilities:Accounts payable Trade ........................................................................................................... Other ..........................................................................................................Short-term loans (Note 6) ...............................................................................Current portion of long-term loans (Note 6) ....................................................Accrued income taxes (Note 8) .......................................................................Accrued expenses ............................................................................................Accrued warranty (Note 2) .............................................................................Reserve for losses on contracts (Note 2) ..........................................................Advances received ...........................................................................................Other current liabilities ..................................................................................... Total current liabilities .............................................................................

Long-term liabilities:Long-term loans (Note 6) ................................................................................Deferred income taxes (Note 8) .......................................................................Provision for post-employment benefits (Note 2) .............................................Reserve for retirement payments to officers (Note 2).......................................Other ............................................................................................................... Total long-term liabilities .........................................................................

Contingent liability (Note 9)

Net assets:Shareholders’ equity:Common stock, Authorized: 180 million shares in 2008 and 2007 Issued: 45,625,800 shares in 2008 and 2007 ............................................Additional paid-in capital ...............................................................................Retained earnings .........................................................................................Treasury stock .............................................................................................. Total shareholders’ equity ....................................................................

Valuation and translation adjustmentsNet unrealized gains on available-for-sale securities .......................................Deffered gains or losses on hedges ................................................................ Total valuation and translation adjustments .......................................... Total net assets .................................................................................... total liabilities and net assets .....................................................


¥18,315 2,768 50 66 1,105 745 2,479 27 3,310 3,030 31,895

84 834 3,810 253 — 4,981

6,647 5,486 28,543 (106) 40,570

1,764 (1) 1,763 42,333 ¥79,209

¥22,898 1,800 1,050 24 428 835 2,363 — 2,240 1,245 32,883

— 4,962 3,881 208 7 9,058

6,647 5,486 29,078 (95) 41,116

7,840 (60) 7,780 48,896 ¥90,837

$182,803 27,627 499 659 11,029 7,436 24,743 269 33,037 30,243 318,345

838 8,324 38,028 2,525 — 49,715

66,344 54,756 284,889 (1,058) 404,931

17,607 (10) 17,597 422,528 $790,588

24

non-ConSolidated StatementS oF inCome



2008 2007 2008

Net sales ........................................................................................................Cost of sales ................................................................................................... Gross profit.............................................................................................

Selling, general and administrative expenses ........................................... Operating income ...................................................................................

Other income (expenses):

Interest and dividend income ....................................................................... Interest expenses ......................................................................................... Gain on sales of property, plant and equipment ........................................ Gain on sales of investments in securities .................................................... Loss on disposal of property, plant and equipment ....................................... Write-down of investments in securities ...................................................... Loss on construction contracts ................................................................ Compensation loss on construction contracts .......................................... Provision of accrued warranty .................................................................. Provision of allowance for doubtful accounts ............................................... Other, net (Note 10) .................................................................................... Income before income taxes ...................................................................

Income taxes (Notes 2, 8): Current ....................................................................................................... For prior periods .......................................................................................... Deferred ...................................................................................................... Total income taxes .................................................................................. Net income ...........................................................................................

Yen U.S. dollars

Per share

Net income ................................................................................................. Cash dividends ............................................................................................


¥ 46,679 38,458 8,221

7,309 912

1,024 (3) 474 1,435 (3) (152) (249) (1,310) (1,700) — (45) (529) 383

1,246 280 (1,291) 235 ¥ 148

¥ 3.26 15.00

¥ 57,252 48,164 9,088

8,210 878

1,554 (2) 45 1,762 (34) — (1,311) — (1,600) (70) (54) 290 1,168

673 — (765) (92) ¥ 1,260

¥ 27.69 15.00

$ 465,905 383,851 82,054

72,951 9,103

10,220 (30) 4,731 14,323 (30) (1,517) (2,485) (13,075) (16,968) — (449) (5,280) 3,823

12,436 2,795 (12,885) 2,346 $ 1,477

$ 0.03 0.15

25

non-ConSolidated StatementS oF ChangeS in net aSSetS




Balance as of March 31, 2007 ....................... 45,626 ¥6,647 ¥5,486 ¥29,078 ¥(95) ¥41,116 ¥7,840 ¥(60) ¥7,780 ¥48,896

Cash dividends ................................................ — — — (683) — (683) — — — (683)

Net income for the year ended March 31, 2008 ............................................. — — — 148 — 148 — — — 148

Purchase of treasury stock ............................... — — — — (11) (11) — — — (11)

Net changes of items other than those in shareholders’ equity .......................... — — — — — — (6,076) 59 (6,017) (6,017)



stockissued

Commonstock


Retainedearnings

Treasurystock


equity

Deferredgains or

losses on hedges

Totalvaluation and


Totalnet assets



Thousands Thousands of U.S. dollars (Note 1)


Balance as of March 31, 2007 ...................... 45,626 $66,344 $54,756 $290,229 $(948) $410,381 $78,251 $(599) $77,652 $488,033

Cash dividends ................................................ — — — (6,817) — (6,817) — — — (6,817)

Net income for the year ended March 31, 2008 ............................................. — — — 1,477 — 1,477 — — — 1,477


Net changes of items other than those in shareholders’ equity .......................... — — — — — — (60,644) 589 (60,055) (60,055)

Balance as of March 31, 2008 ....................... 45,626 $66,344 $54,756 $284,889 $(1,058) $404,931 $17,607 $(10) $17,597 $422,528



stockissued

Commonstock


Retainedearnings

Treasurystock


equity

Deferredgains or

losses on hedges

Totalvaluation and


Totalnet assets





Balance as of March 31, 2006 ....................... 45,626 ¥6,647 ¥5,486 ¥28,543 ¥(77) ¥40,599 ¥9,917 — ¥9,917 ¥50,516

Cash dividends ................................................ — — — (683) — (683) — — — (683)

Bonus to officers ............................................. — — — (42) — (42) — — — (42)

Net income for the year ended March 31, 2007 ............................................. — — — 1,260 — 1,260 — — — 1,260


Net changes of items other than those in shareholders’ equity .......................... — — — — — — (2,077) (60) (2,137) (2,137)



stockissued

Commonstock


Retainedearnings

Treasurystock


equity

Deferredgains or

losses on hedges

Totalvaluation and


Totalnet assets



26


2008 2007 2008

Cash flows from operating activities:Income before income taxes ...............................................................................Adjustments for: Depreciation and amortization ....................................................................... Increase (decrease) in provision for post-employment benefits ........................ Decrease in accrued bonus to employees ....................................................... Increase (decrease) in accrued bonus to officers ............................................. Increase (decrease) in reserve for retirement payments to officers .................. Increase (decrease) in allowance for doubtful accounts ................................. Increase in accrued warranty ........................................................................ Increase in reserve for losses on contracts ..................................................... Interest and dividend income .......................................................................... Interest expenses ........................................................................................... Gain on sales of property, plant and equipment ............................................... Loss on disposal of property, plant and equipment .......................................... Gain on sales of investments in securities ....................................................... Write-down of investments in securities ........................................................ (Increase) decrease in notes and accounts receivable ...................................... Increase in advances received ........................................................................ (Increase) decrease in inventories ................................................................... Decrease in accounts payable, trade ............................................................... Bonuses to officers ........................................................................................ Other ............................................................................................................ Subtotal ....................................................................................................Interest and dividend income received .................................................................Interest expenses paid .........................................................................................Income taxes paid ............................................................................................... Net cash provided by (used in) operating activities .....................................Cash flows from investing activities:Purchase of marketable securities .......................................................................Proceeds from sales of marketable securities .......................................................Purchase of property, plant and equipment ..........................................................Proceeds from sales of property, plant and equipment .........................................Purchase of intangible fixed assets ......................................................................Purchase of investments in securities ..................................................................Proceeds from sales of investments in securities ..................................................Payments for loans receivable .............................................................................Collection of loans receivable ..............................................................................Other Net cash provided by (used in) investing activities ......................................Cash flows from financing activities:Increase (decrease) in short-term loans ...............................................................Proceeds from long-term loans ...........................................................................Repayments of long-term loans ...........................................................................Additions of treasury stock .................................................................................Cash dividends paid ............................................................................................ Net cash used in (provided by) financing activities .....................................Net increase (decrease) in cash and cash equivalents ..................................Cash and cash equivalents at beginning of period (Notes 2, 3) ...................Cash and cash equivalents at end of period (Notes 2, 3) ..............................


¥ 383

1,308 (71) (41) (34) 45 (569) 116 27 (1,024) 3 (474) 3 (1,435) 152 9,455 1,070 (1,949) (4,582) — 3,348 5,731 1,038 (4) (845) 5,920

(1,300) 2,700 (697) 492 (380) (1,370) 2,367 (1,845) 1,137 99 1,203

(1,000) 200 (74) (11) (682) (1,567) 5,556 5,774 ¥ 11,330

¥ 1,168

1,012 40 (75) 34 (91) 63 1,597 — (1,554) 2 (45) 34 (1,762) — (3,901) 253 117 (1,015) (42) (1,228) (5,393) 1,547 (2) (817) (4,665)

(1,003) 1,400 (900) 819 (622) (5,853) 3,233 (90) 2 30 (2,984) 1,000 — (64) (18) (683) 235 (7,414) 13,188 ¥ 5,774

$ 3,823

13,055 (709) (409) (339) 449 (5,679) 1,158 269 (10,220) 30 (4,731) 30 (14,323) 1,517 94,371 10,680 (19,453) (45,733) — 33,416 57,202 10,360 (40) (8,434) 59,088

(12,975) 26,949 (6,957) 4,911 (3,793) (13,674) 23,625 (18,415) 11,348 988 12,007 (9,981) 1,997 (739) (110) (6,807) (15,640) 55,455 57,630 $ 113,085

non-ConSolidated StatementS oF CaSh FlowS


27

noteS to non-ConSolidated FinanCial StatementS

The accompanying non-consolidated financial statements have been prepared from the financial statements filed with the Financial Services Agency as required by the Japanese Financial Instruments and Exchange Law (formerly, the Japanese Securities and Exchange Law) in accordance with accounting principles and practices generally accepted in Japan, which are different from the accounting and disclosure requirements of International Accounting Standards. Certain reclassifications have been made to present the accompanying non-consolidated financial statements in a format which is familiar to readers outside Japan. For the convenience of the reader, the accompanying non-consolidated financial statements have been presented in U.S. dollars by translating all Japanese yen amounts at the exchange rate of ¥100.19 to $1, the approximate rate of exchange at March 31, 2008. These translations should not be construed as representations that the Japanese yen amounts could be converted into U.S. dollar amounts at the above rate or at any other rate.

1. Basis of Presenting Non-Consolidated Financial Statements

(a) Marketable Securities and Investments in SecuritiesThe Company’s securities are classified as follows: i) Held-to-maturity debt securities, which management has the positive intent and ability to hold to maturity, are reported at amortized cost. ii) Equity securities, which were issued by subsidiaries, are stated at moving-average cost. iii) Available-for-sale securities are reported at fair value, with unrealized gains and losses, net of applicable taxes, reported in a separate component of net assets. The cost of securities sold is determined based on the moving-average method. Non-marketable available-for-sale securities are stated at cost, determined by the moving-average method.

(b) Inventories (1) Raw materials are stated at cost which is determined by the periodic average method. (2) Supplies are stated at cost which is determined by the moving-average method. (3) Work in process is stated at cost which is determined by the specific cost method.

(c) Property, Plant and EquipmentProperty, plant and equipment are carried at cost. Depreciation is computed by the declining balance method over the estimated useful lives of the assets, except for buildings placed in service after April 1, 1998, for which depreciation is computed on the straight-line method. The range of useful lives is from 3 to 60 years for buildings and structures and from 3 to 15 years for machinery and equipment.

(Change in Accounting Policy)Effective in the fiscal year ended March 31, 2008, in accordance with the revised Japanese Corporation Tax Law, the Company changed the depreciation method of tangible fixed assets acquired on or after April 1, 2007. The effect of this change on operating income and income before income taxes for the period is immaterial.

(Additional Information)Effective in the fiscal year ended March 31, 2008, in accordance with the revised Japanese Corporation Tax Law, the Company depreciates the residual value of tangible fixed assets acquired on or before March 31, 2007, which was depreciated in accordance with former Japanese Corporation Tax Law, to memorandum value in five years using straight-line method. As a result of this change, operating income and income before income taxes each decreased by ¥54 million ($539 thousand) compared with the amount under the formerly applied method.

(d) Allowance for Doubtful AccountsThe allowance for doubtful accounts is provided for in an amount sufficient to cover possible losses on collection. It consists of the estimated uncollectible amount with respect to identified doubtful receivables and an amount calculated on the historical loss experience with respect to remaining receivables.

2. Summary of Significant Accounting Policies

28

(e) Accrued WarrantyThe accrued warranty is provided for based on the amounts to be determined as a certain percentage (which is distinguished between domestic and overseas construction) of the amount of completed construction contracts for the year, which is computed as a ratio of the actual repair costs incurred under the warranty against the amounts of completed construction contracts during the past years. In addition, the estimated repair costs for identified individual construction are provided.

(f) Reserve for losses on contractsA reserve for losses on contracts is provided for an estimated amount of probable losses to be incurred in future years in respect of construction projects in progress.

(g) Accrued bonus to officersAccrued bonus to officers is provided for the payment of bonus to officers based on an estimated amount.

(h) Provision for Post-employment BenefitsEmployees who terminate their services with the Company are generally entitled to lump-sum severance payments based on their current basic rates of pay and length of service. In addition, the Company has the tax-qualified pension plans with insurance companies and trust banks. The provision for post-employment benefits recorded in the balance sheets less the pension plan assets was sufficient to satisfy the projected benefit obligation for employee’s services up to the balance sheet date.

(i) Reserve for Retirement Payments to OfficersThe Company has provided for reserve for retirement payments to officers under the retirement benefits plan which are calculated by the estimated amount to be paid if all officers retired at the balance sheet date. With respect to officers’ resignations, the retirement payments calculated under the retirement benefits plan are normally paid subject to approval of the shareholders. The retirement payments to officers should be provided for when such costs can be reasonably estimated.

(j) Income taxesThe Company has adopted the asset-liability method of tax effect accounting to recognize the effect of all temporary differences in the recognition of the tax basis assets and liabilities and their financial reporting amounts.

(k) translation of Foreign CurrenciesForeign currency receivables and payables are translated at appropriate year-end current rate. Revenue and expense accounts are translated at the rates closely approximate to those prevailing on the transaction dates. Exchange gains and losses arising from above foreign currency translations and transactions are included in other income or expenses.

(l) Research and Development CostsResearch and development costs are charged to income as incurred.

(m) Recognition of Contract RevenueSales of construction regarding contracts both with an amount of over ¥0.3 billion and a period of over one year are recognized by the percentage of completion method. Other sales are recognized by the completed contract method.

(n) Cash EquivalentsFor the purpose of the non-consolidated statements of cash flows, cash and cash equivalents include highly liquid investments which can be withdrawn without any restriction and with minimum market risk.

(o) Derivative Financial InstrumentsThe Company use derivative financial instruments to manage their exposures to fluctuations in foreign exchange rates. Foreign exchange forward contracts are utilized by the Company to reduce foreign currency exchange risks. The Company do not enter into derivatives for trading or speculative purposes.

29

Cash and cash equivalents as of March 31, 2008 and 2007 consisted of the following: Thousands of Millions of yen U.S. dollars

2008 2007 2008Cash and time deposits ................................................Marketable securities ...................................................Less: time deposits that mature or become due over three months after the date of acquisition ..................Cash and cash equivalents ...........................................

3. Cash and Cash Equivalents

¥ 7,338 4,002 (10) ¥11,330

¥5,784 — (10) ¥5,774

$ 73,241 39,944 (100) $113,085

Inventories as of March 31, 2008 and 2007 consisted of the following: Thousands of Millions of yen U.S. dollars

2008 2007 2008Work in process ..............................................................Raw materials and supplies ..............................................

4. Inventories

¥5,414 144 ¥5,558

¥3,553 57 ¥3,610

$54,038 1,437 $55,475

(a) Marketable securities and investments in securities as of March 31, 2008 and 2007 consisted of the following:


2008 2007 2008Current Government and corporate bonds ............................. Others ......................................................................

Non-current Equity securities ........................................................ Others .......................................................................

5. Marketable Securities and Investments in Securities

¥ — 4,302 ¥ 4,302

¥15,942 7 ¥15,949

¥ 1,700 — ¥ 1,700

¥25,896 10 ¥25,906

$ — 42,938 $ 42,938

$159,118 70 $159,188

(b) The carrying amounts and aggregate fair values of marketable and investment securities at March 31, 2008 and 2007 were as follows:

Millions of yen


Securities classified as:Available-for-sale: Equity securities ............................................... ¥12,561 ¥4,639 ¥(1,663) ¥15,537 Others .............................................................. 516 0 (3) 513 ......................................................................... ¥13,077 ¥4,639 ¥(1,666) ¥16,050

Held-to-maturity securities .................................... ¥ 799 ¥ — ¥ (2) ¥ 797

30

Millions of yen


Securities classified as:Available-for-sale: Equity securities ............................................... ¥12,274 ¥13,355 ¥(141) ¥25,488 Others .............................................................. 10 — (0) 10 ......................................................................... ¥12,284 ¥13,355 ¥(141) ¥25,498

Held-to-maturity securities .................................... ¥ 1,700 ¥ 1 ¥ (0) ¥ 1,701

(c) Marketable and investment securities whose fair values were not readily determinable as of March 31, 2008 and 2007 were as follows:

Carrying Amount Thousands of Millions of yen U.S. dollars

2008 2007 2008Available-for-sale: Equity securities ......................................................... Others .......................................................................

Held-to-maturity securities .............................................

¥ 405 1,000 ¥ 1,405

¥ 1,997

¥ 408 — ¥ 408

¥ —

$ 4,042 9,981 $14,023

$19,932

Thousands of U.S. dollars


Securities classified as:Available-for-sale: Equity securities ............................................... $125,372 $46,302 $(16,598) $155,076 Others .............................................................. 5,150 0 (30) 5,120 ......................................................................... $130,522 $46,302 $(16,628) $160,196

Held-to-maturity securities .................................... $ 7,975 $ — $ (20) $ 7,955

31

The following assets were pledged as collateral. Thousands of Millions of yen U.S. dollars

2008 2007 2008Investments and long-term loans to subsidiaries .............

Short-term loans are represented by 12-month notes, and the weighted average interest rates applicable to such loans as of March 31, 2008 and 2007 were approximately 1.4 percent and 1.3 percent, respectively. Long-term loans as of March 31, 2008 and 2007 consisted of the following: Thousands of Millions of yen U.S. dollars

2008 2007 2008Loans, due 2010 and 2007 ..............................................Less: portion due within one year ....................................

6. Short-term Loans and Long-term Loans

¥ 150 (66) ¥ 84

¥ 24 (24) ¥ —

$1,497 (659) $ 838

¥275 ¥275

¥295 ¥295

$2,745 $2,745

Interest rates of long-term loans as of March 31, 2008 and 2007 were approximately 1.39 percent and 0.56 percent, respectively

Research and development costs charged to income for the years ended March 31, 2008 and 2007 amounted to ¥1,064 million ($10,620 thousand) and ¥1,567 million respectively.

7. Research and Development Costs

32

Deferred tax assets and liabilities at March 31, 2008 and 2007 were composed of the following:


2008 2007 2008Deferred tax assets: Accrued cost of sales ................................................. Loss on construction contracts .................................. Accrued warranty ...................................................... Provision for post-employment benefits ..................... Accrued bonus to employees ..................................... Others ....................................................................... Less-valuation allowance ........................................... Total deferred tax assets ........................................

Deferred tax liabilities: Reserve for deferred gains on sales of fixed assets for tax purposes ..................................... Net unrealized gains on available-for-sale securities ........................................ Total deferred tax liabilities ......................................... Net deferred tax assets (liabilities) ..............................

¥ 325 1,322 1,008 1,550 234 1,089 (178) ¥5,350

¥(1,379) (1,209) (2,588) ¥ 2,762

¥ 203 571 961 1,579 250 685 (138) 4,111

(1,390) (5,374) (6,764) ¥(2,653)

$ 3,244 13,195 10,061 15,471 2,336 10,869 (1,777) $ 53,399

$ (13,764) (12,067) (25,831) $ 27,568

Income taxes applicable to the Company consist of corporate income tax, enterprise taxes and corporate inhabitants’ taxes. The effective income tax rates of the Company differ from the statutory tax rate for the following reasons: 2008 2007Statutory tax rate ............................................................ Expenses not deductible for tax purposes ................... Non-taxable dividend income ..................................... Per capita levy of inhabitant taxes .............................. Tax credit ................................................................... Valuation allowance ................................................... Income taxes for prior periods .................................... Other—net ................................................................Effective tax rate .............................................................

8. Income taxes

40.7% 13.9 (49.3) 2.1 (24.1) 11.8 — (3.0) (7.9)%

40.7% 61.4 (89.3) 6.4 (31.9) 10.4 64.1 (0.6) 61.2%

33

The Company was contingently liable for the following items: Thousands of Millions of yen U.S. dollars

2008 2007 2008Guarantees for indebtedness of subsidiaries and others ..................................................................

9. Contingent Liability

¥1,813 ¥2,978 $18,096

Other income/(expenses)—other, net consisted of the following items: Thousands of Millions of yen U.S. dollars

2008 2007 2008Gain on insurance ........................................................Exchange gain (loss) ....................................................Depreciation of prepaid expenses .................................Other, net ....................................................................

10. Other Income/ (Expenses)—Other, Net

¥ — (15) (2) (28) ¥ (45)

¥ 25 (1) (8) (70) ¥ (54)

$ — (150) (20) (279) $ (449)

The following appropriations of retained earnings of the Company, which have not been reflected in the accompanying non-consolidated financial statements for the year ended March 31, 2008, was approved at the Board of Directors meeting held on May 28, 2008. Thousands of Millions of yen U.S. dollars

Year-end cash dividends of ¥8.00 ($0.08) per share ............................... ¥364 $3,633

11. Subsequent Event

34

Total rental expenses for the above leases were ¥8 million ($80 thousand) and ¥34 million for the years ended March 31, 2008 and 2007, respectively. The pro forma depreciation expense computed by the straight-line method was ¥8 million ($80 thousand) and ¥34 million for the years ended March 31, 2008 and 2007, respectively. The pro forma information above does not exclude the imputed interest portion because the remaining financial lease obligations are not material, compared with the book values of property, plant and equipment.

Obligations under finance leases as of March 31, 2008 and 2007 were as follows: Thousands of Millions of yen U.S. dollars

2008 2007 2008Due within one year ........................................................Due after one year ..........................................................

¥ 7 17 ¥24

¥ 6 14 ¥20

$ 70 169 $239

Finance leases, except those leases for which the ownership of the leased assets is considered to be transferred to the lessee, are accounted for as operating leases. The Company leases certain tools, furniture, fixtures, and other assets.

The pro forma information of leased assets under finance leases that do not transfer ownership of the leased assets to the lessee on an “as if capitalized” basis for the years ended March 31, 2008 and 2007 is as follows: Thousands of Millions of yen U.S. dollars

2008 2007 2008Tools, furniture and fixtures.............................................Other assets ....................................................................Less: accumulated depreciation .......................................

12. Finance Leases

¥ 10 33 (19) ¥ 24

¥ 10 21 (11) ¥ 20

$ 100 329 (190) $ 239

35

i n d e p e n d e n t a u d i t o r S ’ r e p o r t

36

c o r p o r a t e d ata (as of march 2008)

c o r p o r a t e H i S t o r Y

Company name

Established

Fiscal year

Capital stock

Number of employees

Stock listing

Common stock

Number of shareholders

Transfer agent

TSUKISHIMA KIKAI CO., LTD

August 1905

From April 1 to March 31

¥6,646,801,824

648

Tokyo Stock Exchange and Osaka Securities Exchange

Authorized: 180,000,000 shares Issued: 45,625,800 shares

5,058

Mitsubishi UFJ Trust and Banking Corporation 4-5 Marunouchi 1-chome, Chiyoda-ku Tokyo 100-8212, Japan

1905 August

1917 May

1937 September

1944 March

1949 May

1961 September

October

1962 April

1976 January

1977 July

1992 October

1993 April

1996 October

1998 November

2000 June

October

2001 December

2003 June

December

2004 January

September

2005 March

2006 April

Densaku Kuroita founded Tokyo Tsukishima Kikai Seisakusho.

Tsukishima Kikai Co., Ltd. incorporated.

Daini Tsukishima Kikai, Co., Ltd. in Tsurumi-ku, Yokohama City, merged.

The company merged with Tsukishima Kikai Chuko Co., Ltd.

Stock listed on the Tokyo Stock Exchange.

Stock listed on the Second Section of the Osaka Securities Exchange.

A laboratory built within the Tsukudajima Factory to strengthen research and development.

Tsukishima Kikai Engineer Training Center created.

The Ichikawa Factory began its operations.

The Ichikawa Factory acquired the ASME (American Society of Mechanical Engineers) certificate.

The company acquired the management rights of Asano Laboratories Co., Ltd.

TSK Engineering (Thailand) Co., Ltd. established.

The company acquired ISO9001.

A second factory building added to the Ichikawa Factory.

The company acquired ISO14001.

Environmental Technology Development Center opened.

Tsukishima Techno Machinery Co., Ltd. established.

The New Energy and Industrial Technology Development Organization (NEDO) adopted the development of technology for producing ethanol from waste wood as one of its upport projects.

Electron beam welding equipment, one of the biggest in Japan, installed at the Ichikawa Factory.

Tsukishima Techno Solution Co., Ltd. established.

Kanuma Kankyo Bika Center changed its name to Sun Eco Thermal Co., Ltd.

The company sold off its stake in Asano Laboratories Co., Ltd.

The company acquired the management rights of Nittetsu Chemical Engineering Ltd.

Nittestu Chemical Engineering Ltd. changed its name to Tsukishima Kankyo Engineering Ltd.

Founded in 1905, Tsukishima Kikai has over more than a

century developed extensive expertise in diverse technology

fields, ranging from waterworks, sewage treatment facilities

and incinerators to industrial waste treatment, filtration,

separation and other technologies.

We are committed to contributing to the further

development of industry and society through our continuous

efforts in these fields. Now in our second century, we have

taken up the challenge of entering new technological fields

with high growth potential, including vacuum and biomass

technologies. By adhering to the principle of “Selection

and Concentration,” we aim to be a highly profitable and

competitive company that keeps a sharp eye on the present,

while actively pursuing new technological advancements at

the frontier of innovation.

Profile

TSK Network

37

Offices

Head Office, Tokyo Branch, Osaka Branch,

Sapporo Branch, Sendai Branch,

Yokohama Branch, Nagoya Branch,

Hiroshima Branch, Fukuoka Branch,

Wakayama Sales Office, Okinawa Sales Office,

Niigata Office, Kumamoto Office

Factories and Laboratories

Ichikawa Factory, Ichikawa R&D Center

Environmental Technology Development Center

Group Companies (*consolidated subsidiary)

Tsukishima Technology Maintenance Service Co., Ltd.*

Tsukishima Techno Machinery Co., Ltd.*

Tsukishima Techno Solution Co., Ltd.

Tsukishima Kankyo Engineering Ltd.*

Sun Eco Thermal Co., Ltd.*

Samukawa Water Service Co., Ltd.*

Tsukishima Business Support Co., Ltd.

Japan Overseas

Offices

TSK Jakarta Representative Office

TSK Hanoi Representative Office

TSK Mumbai Liaison Office

Group Companies

Tsukishima Engineering Singapore Pte. Ltd.

Tsukishima Engineering Malaysia Sdn. Bhd.

TSK Engineering Taiwan Co., Ltd.

TSK Engineering (Thailand) Co., Ltd.

Annual Report 2008

At the Frontier of Innovation

17-15, Tsukuda 2-chome, Chuo-ku, Tokyo 104-0051, Japan

TEL. +81-(0)3-5560-6535 7

FAX. +81-(0)3-3536-0573

http://www.tsk-g.co.jp/en/index.html

Printed in JapanThis catalog is printed withenvironmentally friendly soy ink.

Documents

At the Frontier of Innovation · and overseas markets. As in 2007, orders for driers from China and Southeast Asia are developing favorably. Tsukishima Kikai holds 70% market share