ANNUAL REPORT

Consolidated Financial Statements
For purposes of preparing the consolidated financial statements, in accordance with IFRS, as of and for the fiscal year ended March
31, 2009, and in light of the global economic downturn, the Company analyzed the performance of its consolidated businesses in order
to determine whether or not there was any indication of impairment of their respective long-lived assets. The analysis included a
review of the industry perspective, and the impact of lower than expected performance of certain portfolio companies on the
recoverable amount of goodwill and other long-lived intangible assets. The analysis resulted in an aggregate impairment charge of
JPY 123,259 million (EUR 939.7 million) for the fiscal year ended March 31, 2009. JPY 95,290 million (EUR 726.5 million) was
attributable to goodwill and intangible assets and mainly related to Metaldyne and HIT in view of the significant global downturn of the
automotive industry. Cumulative impairment of goodwill and intangible assets at March 31, 2009, amounted to JPY 136,491 million
(EUR 1,040.6 million). Total intangible assets at March 31, 2009, amounted to JPY 50,808 million (EUR 387.3 million), compared to JPY
161,245 million (EUR 1,229 million) at March 31, 2008. In addition to the impairment of goodwill and intangible assets, underutilized
property, plant and equipment, mainly at Phoenix Seagaia Resort, HIT and Metaldyne, were written down by JPY 27,969 million (EUR
213.2 million). Finally, the Company recognized an impairment charge of JPY 10,888 million (EUR 83 million) on its investments in
Shaklee and U-shin.
The impairment charges related to the consolidated subsidiaries can be broken down as follows:
(In JPY millions)
Fiscal year ended March 31 2009
Asahi Tec HIT Niles CME
Phoenix
Seagaia
Resort
Property, plant and equipment 7,045 6,699 232 - 13,993 27,969
Goodwill 30,849 6,957 9,770 3,247 - 50,823
Intangible assets other than goodwill 14,892 25,186 - 4,398 (9) 44,467
Total
52,786 38,842 10,002 7,645 13,984 123,259
All impairment charges referenced in the review of the consolidated subsidiaries’ individual results, relate to the impairment charges
reflected in the Company’s consolidated financial statements for the fiscal year ended March 31, 2009 as reflected in the table above.
The allocation of the Invested Capital (excluding cash) per industry as at
March 31, 2009 is as follows:
Automotive Components 60%
Hospitality 10%
Nutrition 11%
Financial Services 9%
Media 5%
Other 5%
10