ANNUAL REPORT

FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED MARCH 31, 2009
The loans and borrowings are as follows:
(in JPY millions) 2009 2008
Non-current Current Total Non-current Current Total
Asahi Tec 73,601 5,765 79,366 110,128 7,329 117,457
CME 217 1,240 1,457 297 220 517
HIT 2,639 68,992 71,631 73,439 137 73,576
Niles 9,824 18,502 28,326 4,722 23,019 27,741
Phoenix Seagaia Resort 6,411 733 7,144 7,106 671 7,777
RHJI and its management companies - 2 2 3 3 6
RHJ Shaklee Holding 1,085 - 1,085 1,074 - 1,074
Total 93,777 95,234 189,011 196,769 31,379 228,148
25.1. Bank loans
25.1.1. Terms and debt repayment schedule
Bank loans are payable as follows:
(in JPY millions) 2009 2008
Senior credit
facilities
Subordinated
credit facilities
Total
Senior credit
facilities
Subordinated
credit facilities
Less than one year 60,676 24,456 85,132 28,075 - 28,075
Between one and five years 68,910 6,761 75,671 75,292 27,478 102,770
More than five years 121 - 121 51,989 30,094 82,083
Total 129,707 31,217 160,924 155,356 57,572 212,928
Total
25.1.2. Asahi Tec
At March 31, 2009, Asahi Tec had JPY 79,367 million in
indebtedness outstanding, of which JPY 52,878 million at its US
subsidiary Metaldyne. The decrease in total indebtedness by JPY
38,090 million compared to March 31, 2008, mainly resulted
from (a) Metaldyne’s successful tender for JPY 30,422 million,
net of customer loans, (b) the cancellation of JPY 3,134 million
senior subordinated notes of Metaldyne held by Chrysler and (c)
the cancellation of JPY 6,082 million of preferred shares of Asahi
Tec, also held by Chrysler.
The bond tender was financed by a USD 50 million investment
from Asahi Tec, funded by RHJI’s subscription to newly issued
shares of Asahi Tec for JPY 4,917 million, increasing its
ownership in Asahi Tec from 45.3% to 60.18%. In addition,
certain of Metaldyne’s leading customers provided Metaldyne
with USD 60 million funding for the bond tender offer, in the
form of loans to Metaldyne. From the total proceeds of USD 110
million, Metaldyne used USD 60.1 million to pay for the tendered
bonds.
Although at March 31, 2009, Metaldyne was in compliance with
the financial covenants of the term, revolving and synthetic
facilities, it defaulted on a payment of interest that fell due
under its term loan and entered into a forbearance agreement
with its lenders until May 30, 2009. Despite this forbearance
agreement and Asahi Tec’s continued support and the resulting
reduction of Metaldyne’s indebtedness, Metaldyne’s financial
performance was heavily affected by car production in the US
that continued to fall beyond expectations. Faced with its own
challenges, Asahi Tec was no longer in a position to further
support Metaldyne, which on May 27, 2009, filed a voluntary
petition to reorganize under Chapter 11 of the U.S. Bankruptcy
Code, shortly after Chrysler, one of its main customers, also
filed for protection under Chapter 11.
Excluding Metaldyne, Asahi Tec had JPY 26,488 million in
indebtedness outstanding at March 31, 2009 compared to JPY
34,929 million at March 31, 2008, the decrease mainly resulting
from the above mentioned cancellation by Chrysler of preferred
shares worth JPY 6,082 million. Asahi Tec’s indebtedness
included (a) JPY 15,356 million senior credit facilities, (b) JPY
4,000 million subordinated bank debt, (c) JPY 1,652 million
leasing obligations and (d) JPY 5,203 million preferred securities
classified as debt issued to former holders of Metaldyne notes.
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