ANNUAL REPORT

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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
LETTER TO SHAREHOLDERS AND BUSINESS REVIEW Cash and cash equivalents Non-consolidated cash flows for the parent holding company for the fiscal year ended March 31, 2009, can be summarized as follows: (In millions) JPY EUR Fiscal year ended March 31 2009 2008 2009 2008 Net cash used in operating activities (7,015) (1,691) (53.5) (12.9) Net cash from (used in) investing activities 17,599 (21,299) 134.2 (162.4) Net cash used in financing activities (392) (2,329) (3.0) (17.8) Net increase (decrease) in cash and cash equivalents 10,192 (25,319) 77.7 (193.0) Cash and cash equivalents at the beginning of the fiscal year 50,347 79,887 383.8 609.0 Effect of exchange rate fluctuation on cash held (1,813) (4,221) (13.8) (32.2) Cash and cash equivalents at the end of the fiscal year 58,726 50,347 447.7 383.8 Non-consolidated cash-flows from investing activities reflected: • The proceeds from the sale of D&M and a non-controlling minority investment for JPY 32,145 million (EUR 245.1 million) in aggregate; • Additional investments in Asahi Tec, Phoenix Seagaia Resort and Shaklee of JPY 9,045 million (EUR 69 million); • Funding of the Company’s management subsidiary RHJI Services for JPY 4,158 million (EUR 31.7 million), used to, among other things, provide financing to certain consolidated subsidiaries; • The formation of SigmaXYZ for JPY 1,085 million (EUR 8.3 million); • A new non-controlling investment of JPY 730 million (EUR 5.6 million); • The repurchase of 627,247 of its own shares for JPY 536 million (EUR 3.5 million). The Company repurchased the shares to be allocated to the Company’s employees under its incentive compensation plan. At March 31, 2009, the Company held 1,145,004 treasury shares. Subsequent to March 31, 2009, the Company bought an additional 1,122,085 shares as part of the purchase of 2% of total outstanding shares, announced on March 17, 2009. Total non-consolidated cash of JPY 58,726 million or EUR 447.7 million is predominantly invested in government and government backed securities in EUR, USD and JPY. 11
Page 1: ANNUAL REPORT Year Ended March 31,
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FINANCIAL STATEMENTS FOR THE FISCAL
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PART III CORPORATE GOVERNANCE
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CORPORATE GOVERNANCE The Belgian Co
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CORPORATE GOVERNANCE The following
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CORPORATE GOVERNANCE (1997 to 2000)
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CORPORATE GOVERNANCE INVESTMENT AND
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CORPORATE GOVERNANCE Mr. Fischer ha
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CORPORATE GOVERNANCE OTHER TERMS RH
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CORPORATE GOVERNANCE STATUTORY AUDI
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CORPORATE GOVERNANCE 121
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PART IV SHAREHOLDERS’ INFORMATION
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SHAREHOLDERS’ INFORMATION SHARE P
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NOTES 127
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Co-ordination and Production : IPAC
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ANNUAL REPORT

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