Consolidated Statement of Changes in Net Assets Toagosei Co., Ltd. and Consolidated Subsidiaries Millions of yen Shareholders’ equity Year ended December 31, 2007 Common stock Capital surplus Retained earnings Treasury stock Total shareholders’ equity Balance at December 31, 2006 .................................. \20,886 \15,069 \59,717 \(624) \95,048 Cash dividends ...................................................... (2,024) (2,024) Net income ........................................................... 6,403 6,403 Purchases of treasury stock .................................... (105) (105) Gain on sales of treasury stock .............................. 3 5 9 Net changes in items other than shareholders’ equity... Balance at December 31, 2007 .................................. \20,886 \15,073 \64,096 \(725) \99,331 Millions of yen Valuation and translation adjustments Year ended December 31, 2007 Unrealized holding gain on securities Unrealized gain on hedging derivatives Translation adjustments Total valuation and translation adjustments Minority interests Total net assets Balance at December 31, 2006 .................................. \8,418 \8 \395 \8,822 \13,042 \116,913 Cash dividends ...................................................... (2,024) Net income ........................................................... 6,403 Purchases of treasury stock .................................... (105) Gain on sales of treasury stock .............................. 9 Net changes in items other than shareholders’ equity... (2,577) (5) (232) (2,814) 557 (2,257) Balance at December 31, 2007 .................................. \5,841 \2 \163 \6,007 \13,599 \118,939 30 Annual Report 2008