Consolidated Statements of Changes in Net Assets Millions of yen Thousands of U.S. dollars (Note 3) Years ended December 31, 2010 2009 2010 Shareholders’ equity Common stock Balance at previous year-end............................................................................................................................ \ 20,886 \20,886 $ 256,306 Changes during year: Total changes during year........................................................................................................................... . . . Balance at end of year............................................................................................................................................ \ 20,886 \20,886 $ 256,306 Capital surplus Balance at previous year-end............................................................................................................................ \ 15,086 \15,085 $ 185,136 Changes during year: Gain on sales of treasury stock.......................................................................................................................... 2 1 27 Total changes during year........................................................................................................................... 2 1 27 Balance at end of year............................................................................................................................................ \ 15,088 \15,086 $ 185,163 Retained earnings Balance at previous year-end............................................................................................................................ \ 65,638 \63,904 $ 805,480 Changes during year: Cash dividends.................................................................................................................................................... (1,640) (1,807) (20,128) Net income............................................................................................................................................................ 13,133 3,541 161,164 Total changes during year........................................................................................................................... 11,492 1,733 141,035 Balance at end of year............................................................................................................................................ \ 77,131 \65,638 $ 946,515 Treasury stock Balance at previous year-end............................................................................................................................ \ (2,907) \ (877) $ (35,673) Changes during year: Purchase of treasury stock........................................................................................................................... (53) (2,037) (658) Gain on sales of treasury stock................................................................................................................... 5 8 63 Total changes during year........................................................................................................................... (48) (2,029) (595) Balance at end of year............................................................................................................................................ \ (2,955) \ (2,907) $ (36,268) Total shareholders’ equity Balance at previous year-end............................................................................................................................ \ 98,704 \98,999 $1,211,250 Changes during year: Cash dividends.................................................................................................................................................... (1,640) (1,807) (20,128) Net income............................................................................................................................................................ 13,133 3,541 161,164 Purchase of treasury stock........................................................................................................................... (53) (2,037) (658) Gain on sales of treasury stock................................................................................................................... 7 9 90 Total changes during year........................................................................................................................... 11,446 (294) 140,466 Balance at end of year............................................................................................................................................ \110,151 \98,704 $1,351,716 See accompanying notes to consolidated financial statements. Toagosei Co., Ltd. and Consolidated Subsidiaries Toagosei Co., Ltd. 29