NIPPON LIGHT METAL HOLDINGS COMPANY, LTD. ANNUAL REPORT 2015

Nippon Light Metal Holdings Company, Ltd.
NYK Tennoz Building, 2-20, Higashi-Shinagawa 2-chome
Shinagawa-ku, Tokyo 140-8628, Japan
http://www.nikkeikinholdings.co.jp

Printed in Japan

ANNUAL R EPORT 2015
Year ended March 31, 2015

Profile

Corporate Data

Since its establishment, the NLM Group has been Japan’s sole fully integrated aluminum manufacturer
offering varieties of products ranging from aluminum raw material to fabricated products.
Aluminum has properties that make it a superb industrial material: it is lightweight and has
excellent processability, corrosion resistance, thermal conductivity, and recyclability. Nippon Light
Metal applies its core strengths — a wealth of knowledge about aluminum and its characteristics andtechnological capabilities that have been developed over many years — to supply a highly diversified
range of products to a number of key industrial sectors, including the automotive, electrical andelectronics, information and telecommunication, environment, safety, energy, construction, railroad,and food products industries.
By carrying on development of new applications for aluminum and aluminum materials, theHead Office

Major Shareholders

NYK Tennoz Building
2-20, Higashi-Shinagawa 2-chome
Shinagawa-ku, Tokyo 140-8628, Japan
http://www.nikkeikinholdings.co.jp
Phone: 81-3-5461-8601
Fax: 81-3-5461-8681(Ratio of Stock Holding)Japan Trustee Services Bank, Ltd.
(trust accounts)(6.6%)

EstablishedThe Dai-ichi Mutual Life Insurance Co.
(3.7%)

October 1. 2012

NLM Group is to continue to support customers in wide-ranging industrial sectors and contribute toimproving the quality of people’s lives and protection of the environment.

Paid-In Capital¥39,085 million
Shares of Common Stock

Consolidated Financial Highlight

Authorized: 2,000,000,000
Issued: 545,126,049

Nippon Light Metal Holdings Company, Ltd. and its consolidated subsidiaries Years ended March 31

2015

2014

2015
Thousands of
U.S. dollars

Millions of yen

For the year:
Net sales 
Operating profit 
Net income ¥402,829 ¥431,477 $3,590,555
12,617
19,305
160,648
5,128
9,645
80,261

At year-end:
Total assets 
Net assets 
Short-term borrowings and long-term debt,
including bonds and capital lease obligation 
Net Sales

600

432,538
121,194457,277
137,385

3,805,251
1,143,255

202,619

192,594

1,602,680

Operating Profit

Nippon Light Metal Holdings Company, Ltd.

Nippon Light Metal Holdings Company, Ltd.

Nippon Light Metal Holdings Company, Ltd.

Nippon Light Metal Company, Ltd.

Nippon Light Metal Company, Ltd.

600

24

450

52,706

Nikkei-Keiyu-Kai(2.9%)The Light Metal Educational Foundation, Inc.
(2.7%)
Asahi Mutual Life Insurance Co.
(2.3%)
Mizuho Bank, Ltd.
(2.1%)

Stock Exchange Listings
Tokyo
Transfer Agent of Common Stock
Sumitomo Mitsui Trust Bank, Ltd.
Last Shareholders’ Meeting
June 24, 2015

Total Assets

Nippon Light Metal Company, Ltd.

30

Number of Shareholders

The Master Trust Bank of Japan, Ltd.
(trust accounts)(6.5%)

Japan Trustee Services Bank,Ltd(trust accounts 9)(1.9%)
CBNY DFA International Small Cap Value Portfolio(1.7%)
Sumitomo Mitsui Trust Bank, Ltd.
(1.7%)(As of March 31, 2015)

450

18
300

300
12

150

Cautionary Statement
This annual report contains various projections and estimates. Important factors that could alter these projections and estimates include

150

6changes in the balance of aluminum supply and demand, fluctuations in the price of aluminum ingot and foreign exchange rates, as well
as shifts in Japanese government policies and regulations. The Company cautions, therefore, that the projections and estimates contained

0

2010

2011

Billions of yen

2012

2013

2014

2015

Years ended March 31

0

2010

2011

Billions of yen

2012

2013

2014

2015

Years ended March 31

0

2010

2011

Billions of yen

2012

2013

2014

2015

herein involve risk and uncertainty, and that actual results could differ materially from those expressed or implied.

As of March 31

47

Consolidated Financial Highlights................................................................................................................. C2
To Our Shareholders........................................................................................................................................ 2
NLM Group Topics........................................................................................................................................... 5
Special Feature................................................................................................................................................ 6
Corporate Governance And Internal Control Systems.............................................................................. 8
NLM Group Environmental Activities .......................................................................................................... 10
NLM Group........................................................................................................................................................ 11
Review Of Operations..................................................................................................................................... 12
Consolidated Six-Year Summary................................................................................................................... 16
Financial Review.............................................................................................................................................. 18
Consolidated Balance Sheets....................................................................................................................... 20
Consolidated Statements Of Income............................................................................................................ 22
Consolidated Statements Of Comprehensive Income............................................................................... 23
Consolidated Statements Of Changes In Net Assets................................................................................ 24
Consolidated Statements Of Cash Flows..................................................................................................... 25
Notes To Consolidated Financial Statements............................................................................................. 26
Report Of Independent Auditors................................................................................................................... 44
Overseas Network........................................................................................................................................... 45
Directors And Officers.................................................................................................................................... 46
Corporate Data................................................................................................................................................. 47

Contents

2015

2014

2015

yen

U.S. dollars

Per share data (yen and dollars):
Net income —basic —diluted 
Cash dividends 
Net assets ¥9.439.04
4.00
203.03¥17.74
15.59
5.00
223.27$0.15
0.13
0.04
1.86

Stock information (TSE) (yen and dollars):
Stock price:
High 
Low 

¥164
95

¥193
132

$ 1.611.10

Note: U.S. dollar amounts have been translated, for convenience only, at the exchange rate of ¥120.17 = U.S.$1.00. See Note 2 of the Notes to the Consolidated Financial Statements.

Net Income per Share

25.0

Net Assets per Share

Cash Dividends per Share

Nippon Light Metal Holdings Company, Ltd.

Nippon Light Metal Holdings Company, Ltd.

Nippon Light Metal Holdings Company, Ltd.

Nippon Light Metal Company, Ltd.

Nippon Light Metal Company, Ltd.

Nippon Light Metal Company, Ltd.

250.0

5.0

20.0

200.0

4.0

15.0

150.0

3.0

10.0

100.0

2.0

5.0

50.0

1.0

0
Yen

2010

2011

2012

2013

2014

2015

Years ended March 31

Net Income per Share = (Net Income - Amount
not attributable to common shareholders) /Average Number of Shares Outstanding

0
Yen

2010

2011

2012

2013

2014

2015

Years ended March 31

Net Assets per Share = (Net Assets-Minority
interests in consolidated subsidiaries) /Number of Shares Outstanding at Year-end

0
Yen

2010

2011

2012

2013

2014

2015

As of March 31

1

To Our Shareholders

Ichiro Okamoto, President & CEO

Takashi Ishiyama, Chairman of the Board and director

I would like to take this opportunity to extend my sincere gratitude to
our shareholders for their continued support of our business operations.
I hereby report on the operating results for Nippon Light Metal Holdings
Company, Ltd. (“NLM Holdings”) for fiscal 2014 (the year from April 1,2014 to March 31, 2015).
2

Overview of Fiscal 2014
During the year under review, the environment in thedomestic aluminum industry saw decrease in shipments
for construction-related fields as a reaction to the surge indemand ahead of the consumption tax hike. Demand for thetransport industry, especially for ordinary vehicles, remained
stagnant while exports increased due to yen depreciationand there was strong demand for trucks amid the postquake reconstruction. As a result, overall aluminum demand
increased from that of the previous year.
Under these circumstances, the Group has strived tomaximize its consolidated profit in accordance with thefollowing three basic policies in the Mid-Term Management
Plan (fiscal 2013 to fiscal 2015) and completed the second
year of the Plan in March 2015.
1) Business development through strategies byregion and by sector
2) Creation of growth drivers through new
products and businesses
3) Strengthening of corporate culture
Fiscal 2014 was marked as the year when the sales volume
in the Alumina, Chemicals and Aluminum Ingot segment,
Aluminum Sheet and Extrusions segment and the truck
outfitting business increased, leading to a sales increase of theGroup. Also in terms of profits, both consolidated operating
profit and consolidated ordinary profit greatly exceeded thoseof the previous year due to the increase of sales volume andalso due to the robust performance of affiliates accounted forby the equity method.
Consequently, consolidated net sales for the year underreview increased 7.1% year on year, to ¥431.5 billion.
Consolidated operating profit and consolidated ordinary profit
increased 53.0% and 61.8% year on year, to ¥19.3 billionand ¥20.6 billion, respectively. Consolidated net income
increased 88.1% year on year to ¥9.6 billion. The NLM Grouptransitioned to a holding company format in October 2012

and fiscal 2014 demonstrates the best performance in thethree years since the transition.
Year-end dividend payment will be ¥5 per share, ¥1 greaterthan year-end dividend payments for the previous year.
Overview by Business Segment
Sales in the Alumina, Chemicals and Aluminum Ingot
segment increased 8.4% year on year, to ¥114.3 billion, while
operating profit increased 108.1% year on year, to ¥6.1billion.
This was attributable to increase in both revenue and profit
in the Alumina and Chemicals segment, expanded sales
volume in overseas markets for the secondary alloy business,the core of the Aluminum Ingot segment, particularly backed
by a strong demand in China, and the rise in sales prices in
conjunction with the rising price of Aluminum Ingots.
Sales in the Aluminum Sheet and Extrusions segment
increased 16.2% year on year, to ¥82.8 billion, while operating
profit increased 58.5% year on year, to ¥4.2 billion. In the
Aluminum Sheet segment, sales of products in electricalmachinery and electronics-related fields, particularly salesof thick plates for semiconductor and LCD manufacturing
equipment remained robust. In the Aluminum Extrusions
segment, shipments for trucks, automobiles in China andsolar panel racks were strong. The significant rise in profit
is the result of, in addition to the increase in sales volume,
rationalization of the burden of product pricing implemented
in the face of the surge in raw material prices.
Sales in the Fabricated Products and Others segment
increased 4.4% year on year, to ¥138.1 billion, while
operating profit increased 6.6% year on year, to ¥7.7 billion.
This is because demand for trucks remained strong in thetruck outfitting business due to the replacement of vehicles
purchased at the time of tightening of emissions regulations
and increase in logistics volume in line with the economic
recovery in the domestic market, as well as earthquake
recovery demand.
Sales in Aluminum Foil, Powder and Paste segment
increased 2.6% year on year to ¥96.2billion, while3

operating profit increased 44.8% year on year, to ¥4.2
billion. This is a result of cost reduction efforts such asconcentrating production and sales sites to China, greatly
improving profitability, increased sales of fabricated foil for
pharmaceutical packaging and plain foil for lithium ion
battery surfaces increased in the Aluminum Foil segment,
and expanded exports in the Powder and Paste segment,
despite sales in the Solar segment being below the levels of theprevious year.
Key Topics during Fiscal 2014
In July 2014, we took a stake in a local company in Thailandand started its business as “Fruehauf Mahajak Co., Ltd.,”
which manufactures and sells bodies and other partsfor various kinds of automobiles to capture the business
opportunity in Thailand and neighboring countries wherean uninterrupted series of storage and distribution activities
for fresh agricultural produce and frozen food, so-called cold
chain logistics are expanding. This is the second overseas
production site following the one in China in the truck
outfitting business.
In January 2015, we acquired additional shares of Toyo
Rikagaku Kenkyusho, which we had acquired 23.6% of its
shares in November 2013, to convert it into a subsidiary andenhance the business in fabrication fields of the Group’s
Aluminum Sheet segment.

for the overseas economy, a solid recovery is expected for
the U.S. economy while there are concerns over slowdownsof economic growth in China and Southeast Asia and thevolatility of raw material and fuel costs. Consequently, aslight increase in demand for aluminum products is expectedcompared to fiscal 2014.
In these circumstances, the next fiscal year is projected toregister net sales of ¥460.0 billion, operating profit of ¥22.5
billion, and ordinary profit of ¥21.0 billion.
Also, we would like to announce herewith, that Takashi
Ishiyama has assumed the position of Chairman of theBoard and Director, and Ichiro Okamoto has succeeded theposition of President and CEO. I would like to ask for thecontinuous support of our shareholders in these efforts, justas we will do everything in our power to further develop the
NLM Group.
June 2015

Chairman of the Board and director
Takashi Ishiyama(Please refer to NLM Group Topics in page 6 for details.)

Outlook for Fiscal 2015
With regard to the Japanese economy for fiscal 2015, a
gradual recovery is expected with rallied corporate earnings
mainly in the exports industry due to the depreciating yen,
as well as steady progress in personal consumption throughimprovement in the employment and income situation. As

4President & CEO
Ichiro Okamoto

NLM Group Topics

NLM Turns Toyo Rikagaku Kenkyusho into Subsidiary—Strengthening cooperation in technology, development, and sales —In January 2015, Nippon Light Metal Company, Ltd.
(hereinafter “NLM”) made an additional acquisition ofstocks in Toyo Rikagaku Kenkyusho Co., Ltd. (hereinafter“Toyo Rika”) and turned it into a subsidiary (total
investment ratio of 51.6%).
Toyo Rika is a general manufacturer of metal
fabrication with integrated production lines handling die
design, pressing, welding, assembly, and surface
treatment. NLM had acquired 23.6% of the outstanding
shares of Toyo Rika in November 2013.
Moving forward, through the integration of Toyo Rika’smanagement resources in Japan and China and the NLMGroup’s business network and management resources inJapan and overseas, NLM will accelerate strategic
measures in areas such as the automotive sector and theelectric and electronic sectors, creating customer value
from a new viewpoint.

Toyo Rika: Yahiko Comprehensive Building

Overview of Toyo Rikagaku Kenkyusho Co., Ltd
Representative : Takeshi Shimakura
Address : 1961 Somagi, Tsubame City, Niigata
Prefecture, Japan
Established : April 5, 1950
Number of Employees : 283 (as of December 2014)
Capital : ¥855.55 million
Net Sales : ¥6.3 billion (results for 2014)

In addition, Toyo Rika has a subsidiary in China, andits overview is as follows:

Outer shells of mobile phones that utilize Toyo Rika’s polishing technology

Company Name : TOYO PRECISION APPLIANCE(KUNSHAN) CO., LTD
Representative : Ichiro Kobayashi
Registered Address : Kunshan Economic & TechnicalDevelopment Zone, Jiangsu
Province, China
Lines of Business : Manufacturing of IT device
enclosures, etc.
Established : March 2004
Number of Employees : 2,140 (as of December 2014)
Capital : $28.00 million
Net Sales : ¥9.2 billion (results for 2014)
Investment Ratio : Toyo Rikagaku Kenkyusho Co., Ltd. (70%),: Coxon Precise International Ltd. (30%)

5Special Feature : A Message from the New President and CEO“The NLM Group’s initiatives and future tasks”
Q1

The management of the Group as a whole
was handed over to you as President and CEO
of NLM Holdings. Can you tell us about how
you will manage the NLM Group as the new
President and CEO?
First of all, I should introduce myself to the shareholders. My
name is Ichiro Okamoto, the new President and CEO of NLM
Holdings.
The former President and CEO, Mr. Ishiyama introduced the
management concept of “Create-Make-Sell” and I believe that
this concept has permeated throughout the Group during thelast ten years and also that the employees of the Group haveshared the market-in point of view. Our business is based on
Aluminum materials. In order to survive the competition, we
have to differentiate ourselves from other companies andcontinue to develop high valued-added products. We willfurther promote the comprehensive and streamlining
management whereby products are developed, manufactured
and sold through group-wide, cross-functional activities,
focusing on delivery of new products and services needed byour customers at their desired timing.
NLM Holdings has more than 90 Group companies where
various business operations are conducted. I believe my
mission as management is to strive to implement the marketin approach as a “new type of materials company” thoroughly
among Group companies and engage them in business as“Team NLM”.

Q2

What made you uphold the slogan of “TeamNLM”?
There are several experiences which reminds me of theimportance of teamwork and the biggest experience among
them was the accident in Nagoya Plant where I was assigned tojust after joining NLM. In December of that year, a fire brokeout at the hot rolling mill of Nagoya Plant. I originally thought
it would take several months to resume operation of the plant

6

because of the large scale of the fire, however, it turned out tobe quicker than I thought. I still remember that I was very
moved to see the people on site rising to the challenge together.
I felt “working in unison” was very important, which was anextremely influential formative experience for my approach tobusiness. Also, that experience in Nagoya gave me the view of“Discipline of 3 Gens (Genba - actual place, Genbutsu – actual
thing, Genjitsu – actual facts)” and I always try to visit andlook at the actual site to solve the issues.

Q3

Fiscal 2014 was the second year of the MidTerm Management Plan. The performance
this year has been favorable, how do you
evaluate it?
All of our four business segments recorded successful results, ina way supported by the growth in demand in our materials
industry due to the foreign exchange leaning towards yen
depreciation and the recovery of the Japanese economy.
Various measures including cost reduction throughout various
management areas and reduction of inventory contributed aswell. What I would like to value most of all is that “a sense ofunity as a Group” has emerged across the various businesssegments and among all Group companies of more than 90.

Q4

Could you tell us about the development andspecific progress in new products andservices?
I would like to explain about our various new products andservices in detail if I could, but it is difficult to show exactly
what represents our Company because of the nature of our
products - difficult to see from the outside - and also because of
the confidentiality agreement with our customers. One of therecent new products is automobile materials for axle parts andbody parts. Also we newly developed solar cell-related products
such as solar panel racks and PCS* packaging. The demand forheat exchanger products such as fins for air conditioners isgrowing significantly. Take PCs or TVs for example,
contemporary home appliances all generate a great amount ofheat and require cooling devices. Cooling devices are beginningto be installed in smaller electrical products, boosting our*PCS: Power Conditioning Systemproducts as well. 

Q5What does NLM Holdings aim at in the next
Mid-Term Management Plan?
First of all, we have to achieve the current Mid-Term
Management Plan with the coming fiscal year, the final year of
the Plan. On top of that, we should integrate more and more
intelligence in our products and make the market for suchproducts larger to survive as a Japanese manufacturer. The
market-in strategy, which we have been implementing for morethan a decade, aims to develop integrated products with added
value to existing materials. Many new products and new
businesses have been created under this strategy. I would likedraw a plan in the next Mid-Term Management Plan to set up asystem within the Group to create more of such integrated
products. We will discuss what steps shall be taken to realize sucha system thoroughly within the following six months. The next
Mid-Term Management Plan will be released in Spring 2016.

investments rather than further expanding investment. Afterthat stage, we will expand our overseas business where NLMGroup can utilize its strength.

Q7

Could you tell us about your view on
improvement of shareholder value and profit
allocation to shareholders, and measures toincrease ROE?
We will be actively committed to improvement of shareholder
value and returns to shareholders. To realize these objectives,
we first of all need to generate a large amount of profit,
enabling sufficient payment of dividends to shareholders.
We have been utilizing Return on Capital Employed (ROCE)
as a key indicator to evaluate the profitability per asset. ROCE
is similar to ROE but includes interest-bearing debt.
We have not decided whether we will position
ROE as a key management indicator, but we will
aim at continuously enhancing corporate value by
promoting selection and concentration in ourbusiness and increasing
capital efficiency.

Q6

Could you tell us your strategy on overseas
business?
The current overseas net sales account for around 20% of total
net sales while the overseas profit has come to exceed 20%.
Since we have made significant investments in overseas
business under the current Mid-Term Management Plan, we
will focus on collecting the fruit, i.e. the profits of existing

Ichiro Okamoto President and CEO•1956 Born in Okayama Prefecture•1981 Completed the Master’s Course in Metallurgy at Kyoto
University Graduate School, and joined Nippon Light Metal
Company, Ltd. (“NLM”) in the same year
•2006 Officer of NLM and promoted to Director and Executive Officer in 2009•2012 Director of the Company (NLM Holdings)•2013 President and CEO of NLM (to present), and assumed President and CEOof the Company in June 20157

Corporate Governance and Internal Control Systems

1. Summary of Corporate Governance
NLM considers the development of a corporate governance system one of its most important management priorities, as this system
helps ensure trust in management by stakeholders, including shareholders, business partners, employees and local communities.
NLM has adopted an executive officer system. The Board of Directors consists of 12 directors, of whom two are outside
directors. This system enables agile management and sufficient deliberation by the Board of Directors. To clarify the roles
and responsibilities of directors and executive officers and ensure that their tasks are conducted appropriately, their term ofoffice is set to be one year. 12 Board of Directors meetings were held in fiscal 2014.
To examine important matters that affect the entire Group from multiple perspectives, NLM has set up an Executive Committee
under the Board of Directors. This committee consists of the president and CEO, senior executives and executive officers anddirectors of subsidiaries who concurrently serve as NLM directors. The Executive Committee meets at least twice a month.
NLM has also adopted a statutory auditor system. The Board of Statutory Auditors consists of five statutory auditors, ofwhom three are outside auditors. Auditors are independent and play a key role in corporate governance by attending Boardof Directors and other important internal meetings.
Support Systems for Outside Directors and Outside Statutory Auditors
The Planning Department and the Legal Department, which jointly serve as the secretariat for the Board of Directors,
circulate preparatory handouts to directors and auditors. The secretariat also elaborates on issues of particular importanceprior to meetings.
The Auditors Office provides staff to assist the auditors.

NLM’s CORPORATE GOVERNANCE STRUCTURE
General Meeting of Shareholders
Appointment / removal

Audit reports

Appointment / removal

Directors
Outside directors

Audit reports

Board of Directors
Appointment/ removal

Accounting
auditorAppointment / removal

Accounting
audit

President and CEO

Reports andproposals

Operations,subsidiaries and affiliates
Internal
audit
Auditing Office
Audit reports/ Information exchange

8

Audit bystatutory
auditors

Executive Committee
Executive officers

Information exchange

Board of
Statutory
Auditors

Appointment / removal

Subcommittees under the
Executive Committee• Compliance Committee• CSR Committee• Quality Committee• Environment Committee, etc.

Statutory
auditors
Outsideauditors

Information exchange

Accounting Audits
In fiscal 2013, Ernst & Young ShinNihon LLC conducted accounting audits based on the Companies Act and the Financial
Instruments and Exchange Act of Japan.

2. Summary of Implementation of Internal Control Systems
To fulfill its corporate governance obligations, NLM takes as another management priority the development of internal
control systems for all NLM Group employees. Such systems affect all of NLM’s business processes, ensuring risk
management, compliance with laws and ordinances and ongoing work efficiency.
At a meeting on March 14, 2008, the Board of Directors resolved to partially amend the basic policy on theimplementation of the Internal Control Systems, in order to achieve the Company’s goals stipulated in the Groupmanagement policy. We will continue to move forward with the implementation of the systems, while revising the policy asnecessary.
Establishment of the Compliance Code and the Internal Whistle-Blower System
In July 2004, NLM established the Compliance Committee, chaired by the president and CEO, to clarify its corporate social
responsibility and to implement effective internal compliance systems. On April 1, 2006, NLM also established the Group
Compliance Code, which is posted on the Group Intranet. At the same time, a leaflet containing this code was distributed to
all members of Group companies. Concurrently, an internal whistle-blower system was created.
NLM considers important the creation of an atmosphere that fosters the frank exchange of opinions among officers andemployees about workplace compliance and encourages its top-of-mind significance. Each year, NLM holds more than 900
compliance meetings that are attended by employees.
Establishment of Group Risk Management Regulations
As part of its risk management system, in May 2006 NLM established the Group Risk Management Regulations. These
regulations specify departmental responsibilities and risk management guidelines, segmented by risk significance into 1)
product and service defects, 2) environmental problems, 3) disasters (natural and accidental) and 4) information systemproblems.
Establishment of Regulations Concerning the Preservation and Management ofDocuments Containing Important Decisions
In accordance with corporate regulations, NLM appropriately stores and manages information on the execution ofduties by directors, which is disclosed to statutory auditors upon request. On May 29, 2006, NLM established theRegulations Concerning the Preservation and Management of Documents Containing Important Decisions. These
regulations establish criteria for the storage and management of documents at each NLM Group company, including
those concerning Executive Committee decisions, committee minutes and departmental decisions, such as approval
applications, data and addenda.
9

NLM Group Environmental Activities

Nippon Light Metal Group fully recognizes the influence the operation of our business has on the environment.
To reduce that burden, the Group implements a "Plan, Do, Check, Action" environmental management system.
Environmental Management System

Energy Consumption
OUTPUT

FY2014FY2013

FY2012

Greenhouse Gas (kton-CO2)

748

695

745

determining environmental management policies. The

SOx (ton)

370

379

372

committee consists of executive officers and division managers

NOx (ton)

480

396

380

from Nippon Light Metal Holdings and the presidents ofDischarged Water (Mm )

26.3

27.9

29.0

affiliated companies.

COD (ton)

93

110

101

Disposed-landfill- (kton)

2.0

2.2

3.5

Recycled/ Reduced (kton)

40.7

34.3

28.6

The Environment Committee is responsible for discussing and

3

NIPPON LIGHT METAL HOLDINGS
President & CEO

Exective Committee

Environment OfficeEnvironmental
Committee

21.8

20.1
PJ

17.7

Subsidiaries Sites
Twenty fourth companies

14.0

2005
Base Line

Environmental Audit

12
12.8

12.7

2010 2011 2012 2013 20142020
TargetChange in Greenhouse Gas Emissions

The Environment Office conduct regular environmental

1,143

audits for all sites in addition to ISO14001. The audit process

Down 15%consists of double procedures: documentation review andon-site inspection which is implemented with a period of once
every three years. In 2014, Waste Management and Public
Cleansing Act were focused on. These results arek ton-CO2

972
871

779

745

695

748

communicated to the Director in charge and the Auditors.
2005
Base Line

Material Balance2010 2011 2012 2013 2014

SCOPE 3

FY2014 energy consumption were similar to the previous year
INPUT
FY2014 FY2013 FY2012
Electricity (PJ)
Fuel (PJ)

7.5
5.2

7.8
5.0

SCOPE 1

310

8.2
5.8

SCOPE 2SCOPE 3102020
Target438

2,053(k ton-CO2)

break down
Category
1

1,995

2

10

3

31

4

11

5

5

6

0

7

1

NLM Group

Nippon Light Metal Group consists of 82 subsidiaries and 24 affiliates (as of March 31, 2015).
The Group’s major operations and the business relations between the Company, major consolidated subsidiaries andaffiliates accounted for by the equity method are shown in the diagram below.
Nippon Light Metal Holdings Company, Ltd.

Aluminum
Ingot andChemicals(Manufacture and Sales)● Nippon Light Metal Company, Ltd.
● Aluminium Wire Rod Co., Ltd.
● Nikkei MC Aluminium Co., Ltd.
● Nikkei MC Aluminum America Inc.
● Nikkei MC Aluminum (Thailand) Co., Ltd.
● Nikkei MC Aluminum (Kunshan) Co., Ltd.
● Ihara Nikkei Chemical Industry Co., Ltd.
● CMR Nikkei India Private Ltd.

(Sales and Others)● Nikkei Sangyo Co., Ltd.
● Tamai Steamship Co., Ltd.

(Manufacture and Sales)(Sales and Others)● Nippon Light Metal Company, Ltd.

● Nikkeikin Kakoh Kaihatsu Holdings● Toyo Rikagaku Kenkyusho Co., Ltd.
● Toyo Precision Appliance (Kunshan) Co., Ltd.

Company, Ltd.

● Nikkei Sangyo Co., Ltd.

● Nikkei Extrusions Co., Ltd.

Aluminum
Sheet andExtrusions● Nikkeikin Aluminium Core Technology Co., Ltd.
● Shandong Nikkei Conglin Automotive Parts Co., Ltd.
● Nikkei (Shanghai) Body Parts Co., Ltd.
● Nikkei Siam Aluminium Ltd.
● Riken Light Metal Industrial Co., Ltd.
● Huafon Nikkei Aluminium Co., Ltd.
● Nonfemet International (China-Canada-Japan)

Aluminium Co., Ltd.

FabricatedProducts
and Others(Manufacture and Sales)(Sales and Others)● Nippon Light Metal Company, Ltd.

● Nikkei Information System Co., Ltd.

● NLM ECAL Co., Ltd.

● Nikkei Logistics Co., Ltd.

● Nikkei Sangyo Co., Ltd.

● Sumikei Nikkei Engineering Co., Ltd.

● Nikkei Panel System Co., Ltd.

● Toho Earthtech Inc.

● Nikkei Matsuo Co., Ltd.
● Nippon Electrode Co., Ltd.
● Nippon Fruehauf Co., Ltd.
● Fruehauf Mahajak Co., Ltd.
● Shandong Conglin Fruehauf Automobile Co., Ltd.
● Nikkei Heat Exchanger Co., Ltd.

(Manufacture and Sales)● Toyo Aluminium K.K.
● Hunan Ningxiang JiWeiXin Metal Powder Co., Ltd.

Aluminum
Foil, Powder
and Paste● Toyal Zhaoqing Co., Ltd.
● Tokai Aluminum Foil Co., Ltd.
● Toyal America Inc.
● Toyal Europe S.A.S.U.
● Toyo Aluminium Ekco Products Co., Ltd.
● Toyo Aluminium Chiba K.K.
● Sam-A Aluminium Co., Ltd.

C U S T O M E R● Consolidated subsidiaries: 77 companies● Affiliates accounted for by the equity method: 17 companies(As of March 31, 2015)11

Review of Operations
Consolidated
Net Sales

Aluminum Ingot and Chemicals
Profile Alumina and Chemicals segment produce aluminum hydroxide, alumina and chemicals
used in various fields. These products are used as raw materials for flame retardants, ceramics andother products and as industrial materials in paper and pulp manufacturing. Aluminum Ingot segment manufacture various kinds of aluminum alloys and enjoy an excellent
reputation for the development of high-performance alloys in response tocustomer requirements.
Net Sales

Consolidated Operating Profit(Millionsof Yen)(Millionsof Yen)150,000

7,500

120,000

6,000

90,0004,500

60,0003,000

30,000

1,500

0

’13

’14

’15

0

’13

’14

’15

26.5
114,339%

Millions of Yen

Principal Products• Aluminum• Aluminum hydroxide• Chemicals (chemical products)• Caustic soda
• Chlorinated chemical products• Aluminum ingot• Aluminum alloys● Overview of results for fiscal 2014

In the Alumina and Chemicals segment, with regard to the mainstay

products and inorganic chlorine products were strong, causing sales

alumina and aluminum hydroxide products among alumina-

for the segment overall to exceed the levels of the previous year.

related products, shipments of coagulants, refractory materials andIn terms of profits, an increase in sales volume and efforts onshipments in electrical machinery and electronics-related fields

reductions in fixed costs resulted in improving profits compared withremained robust for both domestic market and exports. In terms

the previous year, however, due to a rise of raw material costs causedof chemicals, sales of organic chlorine products were on par withby yen depreciation, the situation remained severe.

the levels of the previous year, however, shipments of caustic soda

In the Aluminum Ingot segment, although shipments of themainstay secondary alloy products for automotive applications
decreased in Japan, sales volume grew in overseas market thanks
to the strong demand in the Chinese market. Additionally, sales
prices rose mostly in tandem with raw material prices which serveas its benchmark, resulting in an increase in sales compared to theprevious year and a significant increase in profits as well.
As a result, Alumina, Chemicals and Aluminum Ingot segment
sales increased 8.4%, or ¥8,851 million year on year, to ¥114,339
million (¥105,488 million for the previous year), and operating profit
increased 108.1%, or ¥3,152 million year on year, to ¥6,069 million(¥2,917 million for the previous year).

Aluminum Billet

12Review of Operations
Consolidated
Net Sales

Aluminum Sheet and Extrusions
Profile The NLM Group’s aluminum sheet and extrusions are used in a wide rangeof market sectors, for instance for automotive parts and railway cars in the transport industry
and for semiconductor and liquid crystal manufacturing equipment and photosensitive
drums in the electrical machinery and electronics industries. The Group applies technologies
and expertise accumulated over many years to actively develop products that meet userneeds and provides customers with high-performance sheets and extrusions.
Net Sales

Consolidated Operating Profit(Millionsof Yen)(Millionsof Yen)100,000

6,000

75,0004,500

50,0003,000

25,000

1,500

0

’13

’14

’15

0

Applications

82,823

Millions of Yen

19.2%

Principal Products• Automobile

’13

’14

’15

• Automobile suspension parts • Lead-free cut aluminum alloy• Quick freezing coagulated powder extruded materials• High-intensity molded aluminum sheet
Transport•• Large structural materials for railway rolling stock• Flap for trucks• Electronics• Thick plate for semiconductor and LCD manufacturing
equipment • Foil stock • Photosensitive drum materials
Industrial
Printingroll • Industrial materials••• Building materials and • Aluminum honeycomb panel • Scaffolding
infrastructure materials • Building materials● Overview of results for fiscal 2014

In the Aluminum Sheet segment, although shipments of foil stock

electronics-related fields and industrial equipment-related fields

slumped, sales of thick plates for semiconductor, LCD manufacturing

recorded an increase as well, enabling sales of the overall segment toequipment and railway increased significantly. Also, shipments ofexceed the levels of the previous year.

construction materials, transport-related, mainly for truck outfitting,In terms of profits, rising raw material prices were a burden, butbattery cases in electrical machinery and electronics-related fields

rationalization of prices, in addition to increase in sales volume, leadand PC cases remained robust. As a result, sales volume exceeded

to improvement compared with the previous year.

those of the previous year. Sales prices elevated in conjunction with

As a result, Aluminum Sheet and Extrusion segment sales increased

the price of Aluminum Ingots, which is an indicator in terms of price.

16.2%, or ¥115,49 million, to ¥82,823 million (¥71,274 million

Converting Toyo Rikagaku Kenkyusho Co., Ltd. to a subsidiary infor the previous year). Operating profit increased 58.5%, or ¥1,562

January 2015 also contributed to increase in sales, leading to sales

million, to ¥4,230 million (¥2,668 million for the previous year).

levels well above those of the previous year.
In terms of profits, expanded sales improved product mix resulted
in an increase in profits compared with the previous year.
In the Aluminum Extrusions segment, with regard to the transport-

As mentioned above, in January 2015, Nippon Light Metal Company,
Ltd. (“NLM”), a subsidiary of the Company, additionally acquired
28.0% of the outstanding shares of Tokyo Rikagaku Kenkyusho Co.,
Ltd. of which it had acquired a 23.6% stake in November 2013, andrelated products, which form the mainstay of the segment, sales

converted it to a subsidiary. We have been striving to enhance thefor automobile in domestic market and railway cars decreased

business in fabrication fields through the combination of NLM’s

while shipments of van and truck outfitting increased and sales

knowledge in raw materials and the fabrication technologies of Toyofor automobile in China recorded solid growth. The effect of the

Rikagaku Kenkyusho Co., Ltd. Converting it to a subsidiary enables us

consumption tax hike was partly seen in building materials-related

to deploy domestic and overseas network and management resources

shipments while sales contracts for solar panel racks expandedof the two companies in an integrated manner and to generatefollowing the previous year and sales for electrical machinery andfurther synergy.

13

Review of Operations
Consolidated
Net Sales

Fabricated Products and Others
Profile The NLM Group includes several companies that handle distinctive fabricated products.
In particular, Nippon Fruehauf’s truck bodies and Nikkei Panel
System’s commercial refrigerators and freezer panels enjoy an
excellent reputation for quality, and are market share leaders in their respective fields.
In addition, the Group provides familiar aluminum fabricated products, including anodized
aluminum foil for aluminum electrolytic capacitors, automotive parts, and carbon products.
Net Sales

Consolidated Operating Profit(Millionsof Yen)(Millionsof Yen)160,000

8,000

120,000

6,000

80,0004,000

40,000

2,000

0

’13

’14

’15

0

Applications• Automobile• Transport• Electronics• Building materials
and infrastructurematerials

’13

’14

’15

• Food and lifestyle138,088
Millions of Yen

32.0%

Principal Products• Cast and forged parts for automobiles• Heat exchangers for automobiles• Van truck bodies and trailers• Anodized foil for electrolytic capacitors• Clean rooms• Landscape engineering products• Solid truss structural materials (Aluminum truss)• Plant package for communication base stations• Panels for commercial refrigerators and freezers● Overview of results for fiscal 2014

In the Transport-Related segment, sales in the truck outfitting

to adjustments in inventory, demand in the first half of the year

business exceeded the previous year with high levels of demand forincreased both in the fields of industrial equipment and consumer

trucks following the previous year, thanks to the replacement ofequipment, and increase was seen in sales contracts with improved

vehicles purchased at the time of tightening of emissions regulations

price competitiveness among customers backed by yen depreciation,and earthquake recovery demand, as well as increase of logistics

enabling sales to exceed levels of the previous year.

backed by the economic recovery in the domestic market.

In the Panel System segment, with regard to shipments of industrial

In July 2014, Fruehauf Mahajak Co., Ltd., which manufactures

refrigerators and freezers, small systems for stores such as convenienceand sells bodies for various types of automobiles and heat insulating

stores were strong following the previous year while shipments of large

panels, was established in Thailand as a joint venture with asystems for plants that process food products and low temperature

local company. Increase in logistics is expected in Thailand anddistribution warehouses decreased due to the consumption tax hike.

neighboring countries such as a rise in demand of frozen food, etc.

With regard to clean rooms, demand declined, particularly in the

By contributing to the expansion of the cold chain, we will strive forsemiconductors and precision equipment fields. As a result, overall

further business development.

segment sales were below the levels of the previous year.

In the area of capacitors for car air conditioners, sales of the mainstay

In the Carbon Product segment, shipments for unshaped materials

mini vehicles products were strong thanks to strong sales of mini vehicles

for electrodes greatly declined while shipments of carbon blocks

in Japan, leading to sales levels exceeding those of the previous year.

and cathodes for blast furnaces and electric furnaces for steel and

The Shaped Parts segment saw a drop in demand year on year

aluminum smelters, the sector’s major products, increased thanks

resulting from a decrease in the number of automobile units

to yen depreciation which boosted exports, leading to sales levels

manufactured in Japan. However, sales were on par with the levels of

exceeding those of the previous year.

the previous year as a result of marketing efforts of new products.

As a result, sales in the Fabricated Products and Others segment

In the Electronic Materials segment, although there was aincreased 4.4%, or ¥5,827 million, to ¥138,088 million (¥132,261

temporary decrease in demand for anodized aluminum foil for

million for the previous year). Operating profit increased 6.6%, or ¥480

aluminum electrolytic capacitors in the latter half of the year due

million, to ¥7,224 million (¥7,704 million for the previous year).

14

Review of Operations
Consolidated
Net Sales

Aluminum Foil, Powder and Paste
Profile The core company in this segment is Toyo Aluminium K.K. The company has established its position as the leading manufacturer by using the features of aluminum to develop awide range of products beneficial to society, industry and daily life, including packaging forfood and pharmaceutical products, electronics, aluminum pastes, and materials for solar cells.
Expanding into new fields based on our own technology, we are marketing various kinds andtypes of materials and products of high functionality in both domestic and overseas markets.
Net Sales

Consolidated Operating Profit(Millionsof Yen)(Millionsof Yen)120,000

4,500

90,0003,000

60,0001,500

30,000

0

0

’13

’14

’15

-1,500Applications• Food and lifestyle• Electronics• Automobile• Environmental / Energy

’13

’14

22.3
%

96,227

Millions of Yen

Principal Products• Aluminum foil
• Aluminum foil for electrolytic capacitors• Powder and paste• Back sheets for solar cells• Electrode ink for solar cells’15● Overview of results for fiscal 2014

In the Aluminum Foil segment, shipments of high-purity aluminum

market and shipments for inks used for beverage containers also

foil for electrolytic capacitors showed a gradual recovery in thedecreased, while shipments of powder-related products were strong

domestic market although sales of new products remained sluggish

and imports increased as well thanks to yen depreciation, resulting inand exports decreased. Demand of standard foil remained stagnant

an increase in sales compared to the previous year.

particularly for the food products field, however, shipments ofIn the Solar segment, shipments of back sheets for solar cells

fabricated foil for pharmaceutical packaging and plain foil forremained sluggish in the first half of the year due to deteriorating

lithium ion battery surfaces were solid, causing sales for the segment

credit among users in China, however, shipments in the second

overall to exceed the levels of the previous year.

half increased significantly since development of new customers

In the Powder and Paste segment, shipments of mainstay

progressed and the credit issue in China was gradually resolved.

aluminum paste for use in automobile paint declined in domestic

However, shipments of functional ink for solar cells remained
stagnant throughout the year, and price of both products dropped
due to intensifying competition, leading to sales levels of the overall
segment to become significantly below the previous year. On the other
hand, in terms of profits, situation improved significantly as a resultof efforts in cost reduction such as raising local supply rate of raw
materials under the new structure where production and sales sites
were concentrated to China.
As a result, sales in the Aluminum Foil, Powder and Paste segment
increased 2.6%, or ¥2,421 million, to ¥96,227 million (¥93,806
million for the previous year). Operating profit increased 44.8%, or¥1,294 million, to ¥4,183 million (¥2,889 million for the previous

Aluminum Foil

year).
15

Consolidated Six-Year Summary
Nippon Light Metal Holdings Company, Ltd. and its consolidated subsidiaries Years ended March 31

Nippon Light Metal Company, Ltd.

Gross Profit and Gross Profit Margin
Nippon Light Metal Holdings Company, Ltd.

80,00016

60,00012

40,0008

20,000

4

0

2010
2011
2012
Gross Profit
Gross Profit Margin

2013

2014

2015

0

Years ended March 31

Millions of yen

Interest-bearing Debt
Nippon Light Metal Holdings Company, Ltd.
Nippon Light Metal Company, Ltd.

240,000

200,000

160,000

120,000

80,00040,000

0

2010

2011

2012

2013

2014

2015

Years ended March 31

Millions of yen

Free Cash Flows
Nippon Light Metal Holdings Company, Ltd.
Nippon Light Metal Company, Ltd.

30,00025,00020,00015,00010,0005,000
0-5,0002010

Millions of yen

16

2011

2012

2013

2014

2010

%
20

Nippon Light Metal Company, Ltd.

100,0002015

Years ended March 31

2011(Millions of yen)

Financial Results
Net Sales..................................................................................................
Gross Profit.............................................................................................
Gross Profit Margin (%).........................................................................
Operating Profit (Loss)...........................................................................
Ordinary Profit (Loss)............................................................................
Net Income (Loss)...................................................................................
Segment Information
Net Sales:
Aluminum Ingot and Chemicals......................................................
Aluminum Sheet and Extrusions.....................................................
Fabricated Products and Others.......................................................
Building Materials.............................................................................
Aluminum foil, powder and paste....................................................
Total...................................................................................................
Operating Profit (Loss):
Aluminum Ingot and Chemicals......................................................
Aluminum Sheet and Extrusions.....................................................
Fabricated Products and Others.......................................................
Building Materials.............................................................................
Aluminum foil, powder and paste....................................................
Elimination or corporate items........................................................
Total...................................................................................................
Financial Position
Current Assets.........................................................................................
Property, plant and equipment..............................................................
Intangible assets.....................................................................................
Investments and other assets.................................................................
Current liabilities ...................................................................................
Long-term liabilities...............................................................................
Shareholders’ equity (Note 3)................................................................
Total accumulated other comprehensive income (Note 3)..................
Minority interests in consolidated Subsidiaries (Note 3)......................
Interest-bearing Debt (Note 2)...............................................................
Cash Flows
Cash Flows from Operating Activities.....................................................
Depreciation and Amortization........................................................
Cash Flows from Investing Activities......................................................
Capital Expenditures.........................................................................
Cash Flows from Financing Activities....................................................
Per Share Data (yen and dollars)
Net Income (Loss) - basic.......................................................................
- diluted.....................................................................
Net Assets (Note 3)..................................................................................
Cash Dividends........................................................................................
Indices
Return on Capital Employed (ROCE)(%).....................................................
Return on Equity (ROE)(%)..................................................................
Equity Ratio (%).....................................................................................
OthersNumber of Shares Outstanding (thousands)...................................................
R&D Expenditures..................................................................................
Number of Employees.............................................................................

¥460,681
81,885
17.8
7,673
2,682
2,084

¥429,433
78,16618.2
24,724
18,52911,04088,141
58,399106,060
115,680
92,401
460,681

107,397
69,458136,095—
116,483
429,433

3,425
(362)
3,849
(1,776)5,140(2,603)
7,673)

6,783
4,604
5,738
—
10,245(2,646)
24,724

258,839
165,612
5,147
51,424249,184
138,714
87,245
1,507
4,372
221,720

221,956
143,767
4,458
44,704
182,703
127,425
98,272
463
6,022
190,760

26,38820,717(15,792)
14,197(8,880)26,47915,831964
15,363(30,726)¥ 3.83
3.63
163.13—¥ 20.29—
181.51
2.00

2.2
2.4
18.5

7.9
11.8
23.8

545,126
5,085
12,854545,126
4,798
9,739

Note 1: U.S. dollar amounts have been translated, for convenience only, at the exchange rate of ¥120.17 =U.S.$1.00. See Note 2 of the Notes to the Consolidated Financial Statements.
Note 2: Interest-bearing Debt = Long-term debt and Short-term borrowings, excluding capital lease obligations +Notes discounted + Notes endorsed
Note 3: Numbers used for the year ended March 2010 have been revised according to the current segmentcategories.

Nippon Light Metal Holdings Company, Ltd.
2012

2013

2014

2015

Return on Capital Employed (ROCE)
Nippon Light Metal Holdings Company, Ltd.

2015
(Thousands of
U.S. dollars)(Note 1)

(Millions of yen)¥403,009
67,55916.8
13,6659,709
2,856¥371,887
62,715
16.9
8,154
6,873
3,355

¥402,829
69,00317.1
12,617
12,7305,128¥431,477
76,98717.8
19,30520,6009,645$3,590,555
640,65117.8
160,648
171,424
80,261

99,56070,618
127,972—
104,859
403,00993,902
63,161
126,218—
88,606
371,887

105,488
71,274132,261—
93,806
402,829

114,339
82,823138,088—
96,227431,477

951,477
689,215
1,149,105—
800,758
3,590,555

5,227
1,569
6,392
—
3,402
(2,925)
13,665

3,273
1,675
6,974
—
(771)
(2,997)
8,154

2,917
2,668
7,224
—
2,889
(3,081)
12,617

6,069
4,230
7,704
—
4,183
(2,881)
19,30550,50335,20064,109—34,849(23,975)
160,648

225,200
149,919
6,601
40,951
192,070
121,752
100,033
434
8,382
187,697

217,648
153,238
6,338
42,562
182,173
122,989
102,297
2,851
9,476
188,844

226,807
150,901
5,022
49,808
181,520
129,824
105,787
4,629
10,778
198,668

248,906
153,235
4,543
50,593202,220
117,672
111,791
9,631
15,963
188,9902,071,282
1,275,152
37,805421,0121,682,783
979,213930,274
80,144
132,837
1,572,689

19,537
17,040(18,289)
23,167(6,915)18,030
16,259(14,025)
17,121(5,175)

18,14816,435(18,998)
14,001
5,762

11,78016,406(7,119)15,869(17,581)

98,028
136,523(59,241)
132,055(146,301)

Nippon Light Metal Company, Ltd.

9

6

3

0

-3

-6

2010

2011

2012

2013

2014

2015

Years ended March 31%

Return on Equity (ROE)
Nippon Light Metal Holdings Company, Ltd.
Nippon Light Metal Company, Ltd.

12

10

8

6

4

2

0

2010

2011

2012

2013

2014

2015

Years ended March 31%

R&D Expenditures
Nippon Light Metal Holdings Company, Ltd.
Nippon Light Metal Company, Ltd.

6,000

¥5.25—184.71
2.00¥6.17—193.333.00¥9.43—203.034.00¥17.74
15.59
223.275.00$0.15
0.13
1.86
0.04

4.9
2.9
23.8

3.7
3.3
25.0

5.8
4.8
25.5

8.2
8.3
26.6

000
000
000

3,000

545,126
4,902
10,041

545,126
5,063
10,392545,126
4,984
10,438545,126
4,495
13,335000$37,405
000

1,000

5,000

4,000

2,000

0

2010

Millions of yen

2011

2012

2013

2014

2015

Years ended March 31

17

Financial Review

Overview
The Japanese economy during fiscal 2014 (the year ended March 31,2015) experienced a moderate recovery trend. Chief factors were a
pickup in corporate earnings particularly among exporters, and incapital investment as well as an improvement in employment andincome environment, which were attributable to economic stability inaddition to persistent yen depreciation.
Overall domestic demand for aluminum products rose year on year.
This was attributable to increase in exports owing to yen depreciation,and demand for trucks in connection with the reconstruction demandfollowing the Great East Japan Earthquake, although shipments ofaluminum for construction materials fell in a correction following
the last-minute demand prior to the consumption tax hike, andsluggish growth in demand from exporters of standard-classautomobiles.
Given these circumstances, the Group took measures to maximize
consolidated earnings in line with the three basic policies under the
new Mid-Term Management Plan (from fiscal 2013 to fiscal 2015),
which is now into its second year. The three basic policies are as set
out below.
1. Business development through strategies by region and by sector
2. Creation of growth drivers through new products and businesses
3. Strengthening of corporate culture
Specific measures included an additional acquisition of shares in

Net Sales By Segment

Total Net Assets

Nippon Light Metal Holdings Company, Ltd.
Nippon Light Metal Company, Ltd.

500

Toyo Rikagaku Kenkyusho Co. Ltd., for which the Company took astake in during the previous year, converting it into a subsidiary. The
aim of this move was to strengthen processing operations which
serves as a basis for development of the Group’s aluminum sheetbusinesses.
Furthermore, the development in Thailand and surrounding
countries of cold chain, a transportation network of frozen andrefrigerated food products, prompted us to take a stake in a local
company and launch manufacture and sales businesses for a range of
automotive body parts and for heat insulation panels.
In addition, the Group is taking proactive measures to step up theearnings capabilities of overseas businesses, including a decision to
upgrade production facilities at local joint ventures to meetincreasing demand for aluminum products for subway cars of whichdevelopment is under way in China.
With regard to business results for the fiscal year ended March 31,
2015, both revenue and profit increased as indicated below. This wasdue to an increase in sales volumes for products and businesses suchas the Alumina, Chemicals and Aluminum Ingot segment, theAluminum Sheet and Extrusions segment, and the truck outfitting
business. On the profit front, positive factors included a steady
performance of equity method affiliates, and upward momentum inthe aluminum ingot market prices which serve as a benchmark forsales prices.

Equity Ratio

Nippon Light Metal Holdings Company, Ltd.

Nippon Light Metal Holdings Company, Ltd.

Nippon Light Metal Company, Ltd.

150

30

400

120

24

300

90

18

200

60

12

100

30

6

0

2011

Billions of yen

2012

2013

2014

2015

Years ended March 31

0

2011

Billions of yen

2012

2013

2014

0

2015

As of March 31%

Nippon Light Metal Company, Ltd.

2011

2012

2013

2014

2015

As of March 31

Aluminum Ingot and Chemicals
Aluminum Sheet and Extrusions
Fabricated Products and Others
Aluminum Foil, Powder and Paste

Note: Numbers used for the year ended March 2010 have been revised according to the current segment categories. Numbers used for the year ended March 2010 do notinclude numbers form the Building Materials segment.

18

Overview of Consolidated Business Performance(Millions of yen)
Changes in
Comparison
Fiscal year
Fiscal year
under review (Decrease in brackets)
under review
Changes
The year ended The year ended
March 31, 2015 March 31, 2014 [Percent changes]

Net sales

431,477

402,829

28,648[7.1%]

Operating profit

19,305

12,617

6,688[53.0%]

Ordinary profit

20,60012,7307,870[61.8%]

Net income

9,645

5,128

4,517[88.1%]

Net income per share (Yen)

17.74

9.43

8.31[88.1%]

Earnings and Expenses
NLM Holdings’ consolidated net sales for the fiscal year under review
increased 7.1% year on year to ¥431.5 billion ($3,591 million). For
sales and other financial performance by business segment, please see
the Review of Operations on pages xx to xx.
The cost of sales was ¥354.5 billion ($2,950 million), and the costof sales ratio was 82.2%. Selling, general and administrative expenses
were ¥57.7 billion ($480 million). As a result, operating profit
increased 53.0% year on year to ¥19.3 billion ($161 million).
Non-operating income totaled ¥6.7 billion ($56 million) during
the year under review. Equity in earnings of affiliates increased
33.2% year on year to ¥2.1 billion ($17 million) and dividend
income rose 31.3% year on year to ¥1.0 billion ($8.2 million). Nonoperating expenses were ¥5.4 billion ($44.8 million). As a result,ordinary profit rose 61.8% year on year to ¥20.6 billion ($171.4
million).
Special gains totaled ¥3.9 billion ($32 million), reflecting
recording of a gain on refund of investment securities due to capital
reduction in the amount of ¥1.8 billion ($15.3 million) due to apartial refund of the invested capital in the completed overseas
smelter project. Special losses were ¥8.3 billion ($69 million). Thiswas due partly to loss on impairment of fixed assets of ¥6.2 billion($52 million) in the alumina business of the Alumina and Chemicals
segment.
As a result, income before income taxes and minority interests
during the period under review was ¥16.2 billion ($135 million).
Corporate, inhabitant and business taxes amounted to ¥4.2 billion($35 million) and deferred income taxes during the fiscal year underreview were ¥1 billion ($9 million). Income before minority interests
was ¥11.0 billion ($91 million).
As a result of the above, net income in the fiscal year under review
increased 88.1% year on year to ¥9.6 billion ($80 million). The
average number of shares outstanding fell from 543,865 thousand in
the previous year to 543,835 thousand. Accordingly, net income pershare rose from ¥9.4 in the previous year to ¥17.7 ($0.15). The
annual cash dividend per share increased by ¥1.0 year on year to ¥5.0($0.04), by resolution at the General Meeting of Shareholders held on
June 24, 2015.

Overview of Consolidated Balance Sheets(Millions of yen)March 31, 2015 March 31, 2014

Changes incomparison

Total assets

457,277

432,538

24,739Total liabilities

319,892

311,344

8,548

Net assets

137,385

121,194

16,191

26.6

25.5

1.1

Equity ratio (%)

Assets, Liabilities and Shareholders’ Equity
Total assets as of March 31, 2015 increased ¥24.7 billion year on yearto ¥457.2 billion ($3,805 million). Total liabilities increased ¥8.5
billion year on year to ¥319.9 billion ($2,662 million). Interestbearing debt decreased ¥9.7 billion year on year to ¥189.0 billion.
Total net assets increased ¥16.2 billion year on year to ¥137.4 billion($1,143 million), thanks primarily to an increase in retained earnings
due to the recording of net income in the fiscal year under review. Net
assets per share increased ¥20.24 year on year to ¥223.27 ($1.86),
while the equity ratio rose 1.1 percentage point year on year to 26.6%.
Cash Flows
Cash and cash equivalents on a consolidated basis as of March 31,
2015 fell ¥12.2 billion to ¥29.4 billion ($245 million).
Net cash provided by operating activities totaled ¥11.8 billion ($98
million). This was primarily due to recording net income before
income taxes and minority interests, and depreciation andamortization. Net cash used in investing activities was ¥7.1 billion($59 million). The main outflows were payments for purchases of
fixed assets. Net cash used in financing activities totaled ¥17.6 billion($146 million). The main outflows were ¥26.8 billion ($223 million)
in repayments of long-term debt.
Outlook for Fiscal 2015
With regard to the Japanese economy for fiscal 2015, a moderate
recovery is expected to continue, supported by recovery in corporate
earnings centered on export sectors, which is led by the depreciation
trend of the yen, and by an upturn in personal consumption due toimprovement in the employment and income environment. However,with regard to overseas, concerns remain such as slower economic
growth in China and South East Asia and significant volatility incrude oil and other fuel prices, despite prospects of solid recovery in
the U.S. economy.
In light of the above, we forecast a slight increase in demand foraluminum products.
Our forecasts for the year ending March 31, 2016 are net sales of¥460.0 billion, operating profit of ¥22.5 billion, ordinary profit of¥21.0 billion, and net income attributable to the parent or its
shareholders of ¥13.0 billion. We expect net income per share to total¥23.90 and dividend per share of ¥5.0.
19

Consolidated Balance Sheets
Nippon Light Metal Holdings Company, Ltd. and consolidated subsidiaries

2014

March 31,
2015

2015

(Millions of yen)(Thousands of
U.S. dollars) (Note 3)

Current assets:
Cash and deposits (Notes 4 and 7) Notes and accounts receivable – trade (Note 7) Finished products Work-in-progress, including costs related to construction-type contracts 
Raw material and supplies Deferred tax assets (Note 10) 
Other current assets Allowance for doubtful accounts 
Total current assets ¥ 41,654 ¥29,823
119,503
133,976
21,501
27,865
14,756
16,97915,46922,808
4,507
5,008
10,505
13,465(1,088)(1,018)226,807248,906$248,173
1,114,887
231,880
141,292
189,798
41,674
112,049(8,471)
2,071,282

Property, plant and equipment (Note 6):
Land 
Buildings and structures 
Machinery and equipment 
Tools, furniture and fixtures Construction-in-progress 
Accumulated depreciation 
Total property, plant and equipment 54,69854,997
127,607
131,397259,352
272,900
29,21931,451
4,096
5,158(324,071) (342,668)
150,901
153,235

457,660
1,093,426
2,270,949
261,72142,923(2,851,527)
1,275,152

AssetsIntangible assets:
Goodwill 
Other intangible assets (Note 6) 
Total intangible assets 

1,262
3,760
5,022

1,006
3,537
4,543

8,371
29,43437,805Investments and other assets:
Investment securities (Notes 5, 6 and 7) Deferred tax assets (Note 10) 
Other assets Allowance for doubtful accounts 
Total investments and other assets 

34,46010,602
5,222(476)
49,80836,899
9,146
5,035
(487)
50,593307,057
76,10941,899(4,053)421,012¥ 432,538 ¥457,277$3,805,251

Total assets 

20

2014

March 31,
2015

(Millions of yen)

2015
(Thousands of
U.S. dollars) (Note 3)

Liabilities and net assets
Current liabilities:
Short-term borrowings (Notes 6 and 7) Current portion of long-term debt (Notes 6 and 7) Notes and accounts payable – trade (Note 7) 
Income taxes payable 
Other current liabilities 
Total current liabilities ¥62,217
29,434
63,2792,287
24,303
181,520¥70,108
26,562
69,0602,392
34,098202,220$583,407
221,037
574,686
19,905
283,748
1,682,783

Long-term liabilities:
Long-term debt (Notes 6 and 7) Liabilities for retirement benefits (Note 9) 
Deferred tax liabilities on land revaluation surplus (Notes 10 and 12) 
Other long-term liabilities (Notes 6, 7 and 10) 
Total long-term liabilities 
Total liabilities 

110,968
17,130452
1,274
129,824
311,344

95,924
18,797410
2,541
117,672
319,892

798,236
156,420
3,412
21,145979,213
2,661,996

39,085
11,17955,633(110)
105,787

39,085
11,17961,639(112)
111,791

325,248
93,027
512,932(933)
930,274

2,399
(10)
145
2,978
(883)
4,629
10,778
121,194

3,493
(25)
145
6,198
(180)
9,631
15,963
137,385

29,067(209)
1,207
51,577(1,498)80,144
132,837
1,143,255¥432,538¥457,277$3,805,251

Net assets:
Shareholders’ equity:
Common stock:
Authorized: 2,000,000,000 shares Issued: 545,126,049 shares 
Additional paid-in capital Retained earnings Treasury stock, at cost (1,285,818 shares in 2014 and1,295,748 shares in 2015) 
Total shareholders’ equity Accumulated other comprehensive income:Net unrealized gains on securities (Note 5) Net unrealized losses on hedges (Note 13) 
Revaluation surplus (Note 12) 
Foreign currency translation adjustments 
Remeasurements of defined benefits plans 
Total accumulated other comprehensive income 
Minority interests in consolidated subsidiaries 
Total net assets Contingent liabilities (Note 15) 
Total liabilities and net assets 
The accompanying notes are an integral part of these financial statements.

21

Consolidated Statements of Income
Nippon Light Metal Holdings Company, Ltd. and consolidated subsidiaries

March 31,
2015

2014

(Thousands of
U.S. dollars) (Note 3)(Millions of yen)

Net sales 
Cost of sales (Note 14) 
Gross profit 
Selling, general and administrative expenses (Note 14) 
Operating profit 
Non-operating income:Interest income Dividend income Equity in earnings of affiliates Foreign exchange gains 
Rental income Other Total non-operating income Non-operating expenses:
Interest expense Rental expense 
Other Total non-operating expenses 
Ordinary profit Special gains:
Gain on refund of investment securities due to capital reduction 
Gain on sales of fixed assets (Note 14) 
Gain on negative goodwill 
Total special gains Special losses:
Loss on impairment of fixed assets (Note 16) 
Cost of corrective measures for products Environmental expenses 
Loss on step acquisitions 
Loss on closing plant (Note 16) 
Loss on disposal of fixed assets (Note 17) 
Total special losses 
Income before income taxes and minority interests 
Income taxes (Note 10):
Current Deferred 
Income before minority interests 
Minority interests in net income of consolidated subsidiaries 
Net income Per share of common stock (Note 18):
Net asset 
Net income Cash dividends 
The accompanying notes are an integral part of these financial statements.

22

2015

¥402,829
333,826
69,00356,386
12,617¥431,477
354,490
76,987
57,682
19,305$3,590,555
2,949,904
640,651
480,003
160,648

72
753
1,574
691
628
1,285
5,003

83
989
2,097
1,045
666
1,795
6,675

691
8,230
17,4508,696
5,542
14,93755,546

2,725
436
1,729
4,890
12,730

2,382
539
2,459
5,380
20,60019,822
4,485
20,46344,770171,424

—
—
—
—

1,845
1,397
604
3,846

15,353
11,625
5,026
32,004

—
—
744
—
996
612
2,352
10,378

6,201
920
573
569
—
—
8,263
16,18351,602
7,656
4,768
4,735
—
—
68,761
134,667

3,484
406
3,890
6,488
1,360
¥5,128

4,161
1,049
5,210
10,973
1,328¥9,645

34,626
8,729
43,35591,312
11,051$80,261(Yen)¥203.03
9.43
4.00(U.S. dollars)(Note 3)

¥223.27
17.74
5.00

$1.860.15
0.04

Consolidated Statements of Comprehensive Income
Nippon Light Metal Holdings Company, Ltd. and consolidated subsidiaries

March 31,
2015

2014

2015
(Thousands of
U.S. dollars) (Note 3)(Millions of yen)

¥6,488¥10,973$91,312

Net unrealized gains on securities 

876

1,104

9,187

Net unrealized gains (losses) on hedges 

13

(15)

(125)

Foreign currency translation adjustments 

1,223

2,317

19,281Remeasurements of defined benefit plans 

—

761

6,333

Equity of other comprehensive income of affiliates 

892

1,524

12,682

Total other comprehensive income (Note 8) 

3,004

5,691

47,358¥9,492¥16,664$138,670

Shareholders of the parent ¥7,789¥14,647$121,886

Minority interests 

1,703

2,017

16,784¥9,492¥16,664$138,670

Income before minority interests 
Other comprehensive income Comprehensive income Attributable to:

The accompanying notes are an integral part of these financial statements.

23

Consolidated Statements Of Changes In Net Assets
Nippon Light Metal Holdings Company, Ltd. and consolidated subsidiaries

Shareholders’ equity

Balance at April 1, 2013 
Cumulative effects of changes in accounting
policies 
Restated balance at the beginning of the year 
Net income Cash dividends Change in retained earnings due to mergers between
consolidated and non-consolidated subsidiaries 
Net increase in treasury stock 
Net unrealized gains on securities (Note 5) Net unrealized gains on hedges 
Foreign currency translation adjustments 
Remeasurements of defined benefits plans 
Net increase in minority interests inconsolidated subsidiaries 
Balance at March 31, 2014 Commonstock

Additional
paid-in
capital¥39,085¥11,179¥52,137¥(104)¥1,504

¥(23)

¥145

¥1,225¥—¥8,382¥108,849

39,085

11,17952,137
5,128(1,632)

(104)

1,504

(23)

145

1,225

—

9,476

114,624
5,128(1,632)Retainedearnings

Treasurystock,
at cost(6)¥39,085¥11,179¥55,633¥(110)

Shareholders’ equity

Balance at April 1, 2014 
Cumulative effects of changes in accounting
policies 
Restated balance at the beginning of the year 
Net income Cash dividends Change in retained earnings due to mergers between
consolidated and non-consolidated subsidiaries 
Net increase in treasury stock 
Net unrealized gains on securities (Note 5) Net unrealized gains on hedges 
Foreign currency translation adjustments 
Remeasurements of defined benefits plans 
Net increase in minority interests inconsolidated subsidiaries 
Balance at March 31, 2015 Commonstock

Additional
paid-in
capitalRetainedearnings¥ 39,085¥ 11,179¥ 55,633

Treasurystock,
at cost895¥2,399

13

¥(10)

1,753

¥145

¥2,978

1,302

(6)
895
13
1,753
(883)
1,302

¥10,778¥121,194(883)¥(883)

2015
Accumulated other comprehensive income
Minority
Net
Net
Foreignunrealized unrealized Revaluation currency Remeasurements interests ingains ongains onsurplustranslationof defined consolidated Total net
assetssecurities
hedges(Note 12) adjustments benefits plans subsidiaries(Millions of yen)¥(110)¥2,399¥(10)¥145¥2,978¥(883) ¥ 10,778 ¥121,194

(110)

2,399

(10)

145

2,978

(883)

(1,557)39,085

11,17954,076
9,645(2,176)(1,557)
10,778

94
(2)

1,094

(15)

3,220

703
5,185

¥39,085¥11,179¥61,639

Commonstock

Balance at April 1, 2014 $ 325,248
Cumulative effects of changes in accounting
policies 
Restated balance at the beginning of the year 
325,248
Net income Cash dividends Change in retained earnings due to mergers between
consolidated and non-consolidated subsidiaries 
Net increase in treasury stock 
Net unrealized gains on securities (Note 5) Net unrealized gains on hedges 
Foreign currency translation adjustments 
Remeasurements of defined benefits plans 
Net increase in minority interests inconsolidated subsidiaries $325,248
Balance at March 31, 2015 

Additional
paid-in
capitalRetainedearnings$ 93,027 $ 462,954¥(112)

Treasurystock,
at cost¥3,493¥(25)¥145¥6,198

449,997
80,261(18,108)¥(180) ¥15,963 ¥137,385$ (915) $ 19,963$ (83)$ 1,207$ 24,782

(83)

1,207

24,782$ (7,348) $ 89,690 $1,008,525(12,957)(915)

19,963(7,348)89,690

782
9,104

(126)

26,7955,850
43,147$93,027 $512,932

995,568
80,261(18,108)782(18)

The accompanying notes are an integral part of these financial statements.

(2)
1,094
(15)
3,220
703
5,185

2015
Accumulated other comprehensive income
Minority
Net
Net
Foreignunrealized unrealized Revaluation currency Remeasurements interests in
Total
gains ongains onsurplustranslationof defined consolidated
securities
hedges(Note 12) adjustments benefits plans subsidiaries net assets(Thousands of U.S. dollars) (Note 3)(12,957)
93,027

119,637
9,645(2,176)94

Shareholders’ equity

24

2014
Accumulated other comprehensive income
Minority
Net
Net
Foreignunrealized unrealized Revaluation currency Remeasurements interests ingains ongains onsurplustranslationof defined consolidated Total net
assetssecurities
hedges(Note 12) adjustments benefits plans subsidiaries(Millions of yen)$(933) $29,067$(209)$1,207$51,577

(18)
9,104
(126)
26,7955,850
43,147$(1,498) $132,837 $1,143,255

Consolidated Statements of Cash Flows
Nippon Light Metal Holdings Company, Ltd. and consolidated subsidiaries

March 31,
2015

2014

(Millions of yen)

Cash flows from operating activities
Income before income taxes and minority interests 
Depreciation and amortization 
Loss on impairment of fixed assets 
Cost of corrective measures for products Environmental expenses 
Loss on step acquisitions 
Loss on closing plant 
Loss on disposal of fixed assets Gain on refund investment securities due to capital reduction 
Gain on sales of fixed assets Gain on negative goodwill 
Increase in allowance for doubtful accounts 
Decrease in liability for retirement benefit Interest and dividend income Interest expense 
Equity in earnings of affiliates 
Increase in notes and accounts receivable – trade (Increase) decrease in inventories 
Increase (decrease) in notes and accounts payable – trade 
Other Subtotal Interest and dividend income received Interest paid 
Income taxes paid 
Net cash provided by operating activities 
Cash flows from investing activities
Payments into time deposits Proceeds from withdrawal of time deposits 
Payments for purchases of fixed assets Proceeds from sales of fixed assets 
Payments for purchases of investment securities Proceeds from refund of investment securities due to capital reduction Proceeds from acquisition of shares of subsidiaries resulting into change
in scope of consolidation 
Payments of loans receivable Collection of loans receivable 
Other Net cash used in investing activities 
Cash flows from financing activities
Net increase (decrease) in short-term borrowings Proceeds from long-term debt 
Repayments of long-term debt Proceeds from issuance of bonds 
Redemption of bonds 
Cash dividends paid 
Cash dividends paid to minority interests 
Other Net cash provided by (used in) financing activities 
Effect of exchange rate changes on cash and cash equivalents 
Net increase (decrease) in cash and cash equivalents Cash and cash equivalents at beginning of the year 
Increase in cash and cash equivalents resulting from merger withunconsolidated subsidiaries 
Cash and cash equivalents at end of the year (Note 4) 
The accompanying notes are an integral part of these financial statements.

2015(Thousands of
U.S. dollars)(Note 3)

¥10,378
16,435
—
—
744
—
996
612
—
—
—
(169)
(744)
(825)
2,725
(1,574)(4,264)
3,571(132)(4,587)
23,166
1,037(2,733)(3,322)
18,148¥16,183
16,406
6,201
920
573
569
—
—
(1,845)(1,397)
(604)
(43)
(185)
(1,072)
2,382(2,097)(10,412)(12,811)846
4,310
17,924
1,602(2,462)(5,284)
11,780$134,667
136,523
51,602
7,656
4,768
4,735
—
—
(15,353)(11,625)(5,026)(358)(1,539)(8,921)
19,822(17,450)(86,644)(106,607)
7,040
35,865
149,155
13,331(20,488)(43,970)
98,028(51)
59(13,972)
138(4,558)
—

(380)
414
(13,062)
2,077
(916)
3,686

(3,162)
3,445(108,696)
17,284(7,623)30,673

—

1,190

9,903

(224)
31
(421)
(18,998)

(272)
16
128
(7,119)(2,263)
133
1,065(59,241)(3,063)
21,435(23,984)
15,000(173)(1,622)(460)(1,371)
5,762
723
5,635
35,962

4,896
10,236(26,774)—(2,000)(2,165)(555)(1,219)(17,581)744(12,176)
41,59740,742
85,179(222,801)—(16,643)(18,016)(4,618)(10,144)(146,301)
6,191(101,323)
346,151

—

12

100

¥41,597¥29,433$244,928
25

Notes to Consolidated Financial Statements
Nippon Light Metal Holdings Company, Ltd. and consolidated subsidiaries

1. SIGNIFICANT ACCOUNTING POLICIES(a) Basis of presentation
The accompanying consolidated financial statements of Nippon Light Metal Holdings Company, Ltd. (the “Company”) and its consolidated
subsidiaries are prepared on the basis of accounting principles generally accepted in Japan, which are different in certain respects as to theapplication and disclosure requirements of International Financial Reporting Standards, and are compiled from the consolidated financial
statements prepared by the Company as required by the Financial Instruments and Exchange Law of Japan. The notes to the consolidated
financial statements include certain financial information which is not required under accounting principles generally accepted in Japan, but
is presented herein as additional information. The accompanying consolidated financial statements include certain reclassifications for the
purpose of presenting them in a form familiar to readers outside Japan.
(b) Principles of consolidation and accounting for investments in affiliates
The accompanying consolidated financial statements include the accounts of the Company and, with minor exceptions, companies substantiallycontrolled by the Company. All significant intercompany transactions and accounts have been eliminated in consolidation.
Investments in equity securities issued by unconsolidated subsidiaries and affiliates are accounted for by the equity method, except thatinvestments in certain unconsolidated subsidiaries and affiliates are stated at cost because the effect of application of the equity method would be
immaterial.
The difference between the cost and the underlying net assets of investments in consolidated subsidiaries or affiliates accounted for by theequity method has been allocated to identifiable assets based on fair value at the respective dates of acquisition. Any unassigned residual amount isrecognized as goodwill and amortized by the straight-line method over an estimated useful life, with the exception of minor amounts which arecharged to income in the year of acquisition.
(c) Translation of foreign currencies
All monetary assets and liabilities denominated in foreign currencies, whether long-term or short-term, are translated into Japanese yen at theexchange rates prevailing at the balance sheet date. The resulting gains and losses are included in net loss for the year.
Assets and liabilities of foreign subsidiaries and affiliates are translated into Japanese yen at the exchange rates prevailing at the balance sheet
date. Income statement accounts for the year are translated into Japanese yen using the average exchange rates during the year. The resulting
translation adjustments are accounted for as foreign currency translation adjustments, except for the minority interest portion which is allocatedto minority interests in consolidated subsidiaries.
(d) Cash and cash equivalents
Cash and cash equivalents in the consolidated statements of cash flows comprise of cash in hand, bank deposits available for withdrawal on
demand and short-term investments with an original maturity of three months or less and which are exposed to a minor risk of fluctuation invalue.
(e) Inventories
Inventories are principally stated at cost, determined by the moving average method, except that the specific identification method is applied tocosts related to construction-type contracts. In addition, the amount of Balance Sheet is calculated by write-down method based on descent of
profitability.
(f) Investment securities
Securities other than equity securities issued by subsidiaries and affiliates are classified into held-to-maturity securities or available-for-salesecurities.
Held-to-maturity securities are stated at amortized cost. Available-for-sale securities for which market quotations are available are stated at fairvalue with net unrealized gains or losses being included in net assets, net of the related taxes. Available-for-sale securities for which market
quotations are not available are stated at cost. Realized gains and losses on sales are determined using the average cost method and are included
in net income for the year.
In cases where the fair value of held-to-maturity securities or available-for-sale securities has declined significantly and such impairment isother than temporary, such securities are written down to fair value and the resulting losses are charged to income for the year.

26

(g) Allowance for doubtful accounts
Allowance for doubtful accounts is estimated by applying the average percentage of actual bad debts in the past to the balance of receivables. In
addition, an amount deemed necessary to cover non-collectible receivables is provided on an individual account basis.
(h) Property, plant and equipment and depreciation
Property, plant and equipment are stated at cost. Depreciation is computed principally using the straight-line method at rates based on theestimated useful lives of the respective assets, ranging from 2 years to 60 years for buildings and structures, and from 2 years to 22 years formachinery and equipment.
(i) Intangible assets
Intangible assets are amortized by the straight-line method over their respective estimated useful lives. Expenditure relating to computer softwaredeveloped for internal use is charged to income as incurred, except in cases where it contributes to the generation of income or future cost savings.
In these cases, it is capitalized and amortized using the straight-line method over its estimated useful life, which is no longer than 5 years.
(j) Retirement benefits
1) The retirement benefit obligation for employees is attributed to each period by the straight-line method over the estimated years of serviceof the eligible employees.
2) Prior service cost is being amortized as incurred mainly by the straight-line method over the period of 15 years which is shorter than the
average remaining number of years of service of the employees. Unrecognized actuarial gain or loss is amortized by the declining-balancemethod over a period of 12 years from the year following that in which it arises, except for unrecognized costs with respect to employees
who retired under the early retirement program which were fully amortized at the time of the employees’ retirement.
(k) Lease transactions
Finance leases without options to transfer ownership of the leased assets to the lessee are accounted for as ordinary sale and purchase transactions.
These leased assets are depreciated to their respective salvage value of zero using the straight-line method over a period of leasing term. Financeleases with options to transfer ownership of the leased assets to the lessee are depreciated by the same method applied to the fixed assets owned by
the Company.
(l) Income taxes
The income taxes of the Company and its domestic consolidated subsidiaries consist of corporate income taxes, local inhabitants’ taxes andenterprise taxes. The Company and its wholly-owned domestic subsidiaries use the Japanese consolidated taxation system.
The Company and its consolidated subsidiaries apply the deferred tax accounting method. Deferred tax assets and liabilities are determinedusing the asset and liability approach, and recognized for temporary differences between the tax bases of assets and liabilities and those as reported
in the consolidated financial statements.
(m) Derivatives
All derivatives are stated at fair value with changes in fair value being included in net income for the year in which they arise, except for derivatives
designated as hedging instruments.
The Company and its consolidated subsidiaries use derivatives to reduce their exposure to fluctuation in foreign exchange rates, interest rates,
and the prices of aluminum ingot in the market. Derivatives designated as hedging instruments are principally forward foreign exchange
contracts, interest rate swap contracts and aluminum ingot forward contracts. The underlying hedged items are trade accounts receivable andpayable, long-term bank loans and sales or purchases of aluminum ingot.
Gains and losses arising from changes in fair value of derivatives designated as hedging instruments are deferred and included in net incomein the same period in which the corresponding gains and losses on the underlying hedged items or transactions are recognized. The Company andits consolidated subsidiaries use interest rate swaps to hedge their interest rate risk exposure. The related interest differentials paid or received under
the interest rate swap agreements are recognized in interest expense over the term of the agreements.
The Company and its consolidated subsidiaries evaluate the effectiveness of their hedging activities by reference to the accumulated gains orlosses on the hedging instruments and the underlying hedged items from the commencement of the hedges.
(n) Research and development costs
Research and development costs are charged to income as incurred.

27

Notes to Consolidated Financial Statements(o) Appropriation of retained earnings
Appropriation of retained earnings is reflected in the consolidated financial statements for the year in which the appropriation is approved at an
ordinary general meeting of shareholders.
The Company’s retained earnings consist of unappropriated retained earnings and a legal reserve as required by the Corporation Law of Japan.
The Corporation Law provides that an amount equal to 10% of distributions from unappropriated retained earnings paid by the Company and its
Japanese subsidiaries be appropriated to the legal reserve. Such appropriations are no longer required when the total amount of additional paid-in
capital and the legal reserve equals 25% of their respective stated capital.
Under the Corporation Law, the Company is permitted to transfer to unappropriated retained earnings the portion of its statutory reserve(additional paid-in capital and the legal reserve) in excess of 25% of common stock upon approval at a shareholders’ meeting. Any suchtransferred portion is available for dividend distribution.
(p) Net income per share
Basic net income per share of common stock, presented in the accompanying consolidated statements of income, is computed based on theweighted average number of shares outstanding during each year.
Diluted net income per share reflects the potential dilution that could occur if securities were converted into common stock. Diluted net
income per share of common stock assumes full conversion of the outstanding convertible bonds at the time of issuance with an applicableadjustment for the related interest expense on a net of tax basis.
(q) Reclassifications
Certain reclassifications of previously reported amounts have been made to conform them to the current year’s classifications.
2. ACCOUNTING CHANGE
The Company and its domestic subsidiaries adopted Section 35 of “Accounting Standard for Retirement Benefits” (ASBJ Statement No. 26 of May
17, 2012) and the main clause of Section 67 of “Guidance on Accounting Standard for Retirement Benefits” (ASBJ Guidance No. 25 of March 26,2015) effective from April 1, 2014. As a result, the methods for calculating the retirement benefit obligation and service cost have been revised in
the following respects: the method for attributing projected benefits to each period has been changed from the straight-line method to the benefit
formula method, and the method for determining the discount rate has been changed to use a single weighted-average discount rate reflecting the
expected timing and amount of benefit payments.
The cumulative effect of changing the method for calculating the retirement benefit obligation and service cost was recognized by adjustingretained earnings at April 1, 2014, in accordance with the transitional treatment provided in Paragraph 37 of Accounting Standard for Retirement
Benefits.
As a result, the liability for retirement benefits increased by ¥2,320 million ($19,305 thousand) and retained earnings decreased by ¥1,557
million ($12,957 thousand) at April 1, 2014.
3. U.S. DOLLAR AMOUNTS
The rate of ¥120.17 = U.S.$1, the approximate exchange rate prevailing at March 31, 2015, has been used for the purpose of presenting the U.S.
dollar amounts in the accompanying consolidated financial statements. These amounts are included solely for the convenience of the reader.
Accordingly, they should not be construed as representations that yen amounts actually represent, or have been or could be readily converted,
realized or settled in U.S. dollars at that rate.
4. CASH AND CASH EQUIVALENTS
A reconciliation of cash and cash equivalents in the accompanying consolidated statements of cash flows to cash and deposits disclosed in theaccompanying consolidated balance sheets at March 31, 2014 and 2015 is summarized as follows:
2014

2015

(Millions of yen)

Cash and deposits Time deposits with maturities in excess of 3 months 
Cash and cash equivalents 
28¥41,654(57)¥41,597¥29,823(390)¥29,433

2015(Thousands of
U.S. dollars)$248,173(3,245)$244,928

5. INVESTMENT SECURITIES(a) Available-for-sale securities with available market quotations
The aggregate cost, carrying amount and gross unrealized gains and losses of available-for-sale securities comprising equity securities withavailable market quotations at March 31, 2014 and 2015 was as follows:
2014

2015

(Millions of yen)

Cost 
Unrealized gains 
Unrealized losses 
Carrying amount ¥2,823
3,413(83)¥6,153

2015(Thousands of
U.S. dollars)¥2,8954,723(19)¥7,599$24,091
39,303(158)$63,236(b) Sales of available-for-sale securities
The realized gains on sales of available-for-sale securities for the years ended March 31, 2014 and 2015 was as follows:
2014

2015

(Millions of yen)

¥109
87
—

¥45
35
5

Sales proceeds 
Realized gains on sales 
Realized losses on sales 

2015(Thousands of
U.S. dollars)

$907
724
—

6. SHORT-TERM BORROWINGS AND LONG-TERM DEBT
Short-term borrowings at March 31, 2015 bore interest at annual rates ranging from 0.00% to 7.20% and mainly consisted of bank loans andshort-term notes maturing at various dates within one year.
Long-term debt at March 31, 2014 and 2015 comprised the following:
2014

2015

(Millions of yen)

Loans, principally from banks and insurance companies due from 2016 to 2072 withinterest rates ranging from 0.32% to 6.90%:
Secured 
Unsecured Convertible bonds due December 10, 2018 (*1) Unsecured 2.70% bonds due March 29, 2072, redeemable before due date Unsecured 1.03% bonds due September 30, 2014, redeemable before due date Unsecured 1.50% bonds due June 1, 2017, redeemable before due date Capital lease obligations due from 2015 to 2029 with interest rates ranging from 1.17% to 7.20% Less: portion due within one year 
Total long-term debt ¥8,691
106,942
15,000
3,200
2,000
618
3,951
140,402(29,434)¥110,968¥ 6,521
93,44015,000
3,200
—
721
3,604
122,486(26,562)¥95,924

2015(Thousands of
U.S. dollars)$ 54,265
777,564
124,823
26,629—6,000
29,992
1,019,273(221,037)$ 798,236(*1) The details of the convertible bonds due December 10, 2018 are summarized as follows:
Stock type to be issued:
Common stock
Issue price per stock acquisition right:
None
Initial exercise price:¥200 per share
Total issue price:¥15,000 million
Exercisable period of stock acquisition rights: From December 23, 2013 to November 26, 201829

Notes to Consolidated Financial Statements

A summary of assets pledged as collateral for short-term borrowings and long-term debt at March 31, 2014 and 2015 as follows:
2014

2015

(Millions of yen)

Property, plant and equipment 
Investment securities 
Other intangible assets ¥46,13367385¥ 42,254
66
408

2015
(Thousands of
U.S. dollars)$ 351,619
549
3,395

The aggregate annual maturities of long-term debt outstanding at March 31, 2015 are summarized as follows:
Years ending March 31,

2016 
2017 
2018 
2019 
2020 
Thereafter (Millions of yen)(Thousands of
U.S. dollars)¥ 26,562
24,247
20,25530,478
7,850
13,094¥122,486$ 221,037
201,772
168,553
253,624
65,325
108,962$1,019,273

7. FINANCIAL INSTRUMENTS(a) Overview
1. Policy for financial instruments
The Company and its consolidated subsidiaries (the “Group”) strive to diversify financing methods by managing temporary cash surpluses
primarily through short-term deposits, and by raising funds through bank borrowings and corporate bonds. The Group utilizes various derivative
financial instruments such as interest rate swaps, forward foreign exchange contracts, and forward trading in aluminum ingots for the purpose of
reducing risk and does not enter into derivative transactions for speculative or trading purposes.
2. Types of financial instruments and related risk, and risk management for financial instruments
Notes and accounts receivable – trade are exposed to credit risk in relation to customers. The Group manages the risks by controlling the due dates
and outstanding balances by individual customers. Accounts receivable – trade denominated in foreign currencies are exposed to risk of exchange
fluctuations and are hedged by utilizing forward foreign exchange contracts. Stocks of investment securities, which are exposed to market
fluctuations, are mainly those of other companies with which the Group has business relationships. The Group periodically reviews the fair valuesof such stocks and the financial position of the issuers.
Notes and accounts payable – trade, have payment due dates approximately within one year.
Short-term borrowings are raised mainly in connection with business activities, and long-term borrowings are taken out principally for the
purpose of making capital investments. Variable rate borrowings are exposed to interest rate fluctuation risk. However, in order to reduce such risk
and fix interest expenses, the Group utilizes interest rate swap transactions as a hedging instrument for each individual contract. Assessment of theeffectiveness of hedging activities, which meets the requirements for special treatment of interest rate swaps, is omitted.
The execution and management of derivative transactions is performed based on the control procedure designated in management policy. In
addition, to reduce credit risk, utilizing derivative instruments is restricted to only highly rated financial institutions and major trading companies.
Notes and accounts payable – trade and borrowings, the Group prepares its cash flow plans to manage liquidity risk (the risk that the Groupmay not be able to meet its obligations on scheduled due dates).
3. Supplementary explanation of the estimated fair value of financial instruments
The notional amounts of derivatives in “(b) Estimated Fair Value of Financial Instruments,” are not necessarily indicative of the actual market
risk involved in the derivative transactions.
(b) Estimated Fair Value of Financial Instruments

30

The carrying value of financial instruments on the consolidated balance sheets as of March 31, 2014 and 2015 and estimated fair value is as follows:
2014
Carrying Value *1

Estimated Fair Value *1

Difference(Millions of yen)

(1) Cash and deposits (2) Notes and accounts receivable – trade (3) Investment securities
Stocks of subsidiaries and affiliates 
Other securities (4) Notes and accounts payable-trade (5) Short-term borrowings *2 
(6) Bonds (7) Long-term borrowings *2 (8) Derivatives ¥41,654
119,503¥41,654
119,503

¥—
—

4,146
6,153
(63,279)(62,217)(20,818)(115,633)
(29)

1,574
6,153
(63,279)(62,217)(20,083)(115,956)(29)(2,572)
—
—
—
735
(323)
—

*1 Liabilities are shown in parenthesis.
*2 The current portion of long-term borrowings is included in long-term borrowings.
The carrying value of financial instruments on the consolidated balance sheets as of March 31, 2014 and 2015 and estimated fair value is as follows:
2015
Carrying Value *1

Estimated Fair Value *1

Difference(Millions of yen)

(1) Cash and deposits (2) Notes and accounts receivable – trade (3) Investment securities
Stocks of subsidiaries and affiliates 
Other securities (4) Notes and accounts payable-trade (5) Short-term borrowings *2 
(6) Bonds (7) Long-term borrowings *2 (8) Derivatives ¥29,823
133,976¥29,823
133,976

¥—
—

4,696
7,599
(69,060)(70,108)(18,921)(99,961)
(43)

2,264
7,599
(69,060)(70,108)(18,359)(100,273)(43)(2,432)
—
—
—
562
(312)
—

2015
Carrying Value *1

Estimated Fair Value *1

Difference(Thousands of U.S. dollars)(1) Cash and deposits (2) Notes and accounts receivable – trade (3) Investment securities
Stocks of subsidiaries and affiliates 
Other securities (4) Notes and accounts payable-trade (5) Short-term borrowings *2 
(6) Bonds (7) Long-term borrowings *2 (8) Derivatives $248,173
1,114,887$248,173
1,114,887$——39,07863,235(574,686)(583,407)(157,452)(831,830)(358)

18,84063,235(574,686)(583,407)(152,775)(834,426)(358)(20,238)
—
—
—
4,677
(2,596)—*1 Liabilities are shown in parenthesis.
*2 The current portion of long-term borrowings is included in long-term borrowings.
31Notes to Consolidated Financial Statements

Notes
1. Method for determining the estimated fair value of financial instruments and other matters related to securities and derivative transactions(1) Cash and deposits, (2) Notes and accounts receivable – trade
Since these items are settled in a short period of time, their carrying value approximates fair value.
(3) Investment securities
The fair value of stocks is based on quoted market prices. For information on securities classified by holding purpose, refer to Note 5“Investment Securities.”(4) Notes and accounts payable – trade, (5) Short-term borrowings
Since these items are settled in a short period of time, their carrying value approximates fair value.
(6) Bonds
The fair value of bonds is based on the present value of the total of principal and interest discounted by an interest rate determined taking
into account the remaining period of each bond and current credit risk.
(7) Long-term borrowings
The fair value of long-term borrowings is based on the present value of the total of principal and interest discounted by the interest rate tobe applied if similar new borrowings were entered into.
(8) Derivatives
Refer to Note 13, “Derivatives” of the notes the consolidated financial statements.
2. Unlisted stock of ¥24,161 million and ¥24,604 million ($204,743 thousand) as of March 31, 2014 and 2015 are not included in “(3)Investment securities” because no quoted market prices are available and it is extremely difficult to measure the fair value.
3. The redemption schedule for receivables and marketable securities with maturities at March 31, 2014 and 2015 are as follows:2014
Due within
one year

Due after one year but
within five years

Due after five years but
within ten years

Due after
ten years(Millions of yen)

Cash and deposits Notes and accounts receivable-trade 
Investment securities
Held-to-maturity securities
Government and municipal bonds 
Corporate debt securities ¥41,621
119,503

¥—
—

¥—
—

¥—
—

2
—
¥161,126

7
10
¥17

4
—
¥4

—
—
¥—

2015
Due within
one year

Due after one year but
within five years

Due after five years but
within ten years

Due after
ten years(Millions of yen)

Cash and deposits Notes and accounts receivable-trade 
Investment securities
Held-to-maturity securities
Government and municipal bonds 
Corporate debt securities 32¥ 29,777
133,976

¥—
—

¥—
—

¥—
—

2
—
¥163,755

7
—
¥ 7

3
—
¥ 3

—
—
¥—

2015
Due within
one year

Due after one year but
within five years

Due after five years but
within ten years

Due after
ten years(Thousands of U.S. dollars)

Cash and deposits Notes and accounts receivable-trade 
Investment securities
Held-to-maturity securities
Government and municipal bonds 
Corporate debt securities $247,791
1,114,887

$—
—

$—
—

$—
—

17
—
$1,362,695

58
—
$ 58

25
—
$ 25

—
—
$—

4. The redemption schedule for bonds and long-term borrowings at March 31, 2014 and 2015 are as follows:2014
Due within
one year

Due after one year but
within five years

Due after
five years(Millions of yen)

Bonds Long-term borrowings ¥2,000
26,384¥28,384¥15,618
79,814¥95,432¥3,200
9,435¥12,635

2015
Due within
one year

Due after one year but
within five years

Due after
five years(Millions of yen)

Bonds Long-term borrowings ¥—25,710¥25,710¥15,721
65,012¥80,733¥3,200
9,239¥12,439

2015
Due within
one year

Due after one year but
within five years

Due after
five years(Thousands of U.S. dollars)

Bonds Long-term borrowings $—213,947$213,947$130,823
541,000$671,823$26,629
76,883$103,512

33

Notes to Consolidated Financial Statements

8. OTHER COMPREHENSIVE INCOME
Each component of other comprehensive income for the year ended March 31, 2014 and 2015 were as follows:
2014

2015

2015
(Thousands of
U.S. dollars)(Millions of yen)

Unrealized gains on securities:
Amount arising during the year 
Reclassification adjustments for gains and losses realized in net income 
Before-tax amount 
Tax benefit Net-of-tax amount 
Unrealized gains (losses) on hedges:
Amount arising during the year 
Reclassification adjustments for gains and losses realized in net income 
Before-tax amount 
Tax benefit Net-of-tax amount Foreign currency translation adjustments:
Amount arising during the year 
Remeasurements of defined benefit plans:
Amount arising during the year 
Reclassification adjustments for gains and losses realized in net income 
Before-tax amount 
Tax benefit Net-of-tax amount Equity of other comprehensive income of affiliates:
Amount arising during the year 
Total other comprehensive income ¥1,335
2
1,337
(461)
876

¥ 1,411
—
1,411
(307)
1,104

$ 11,742—
11,742(2,555)
9,187

(3)
20
17
(4)
13

77
(96)
(19)
4
(15)

641
(799)
(158)
33
(125)

1,223

2,317

19,281

—
—
—
—
—

869
(342)
527
234
761

7,231
(2,846)
4,385
1,948
6,333

892
¥3,004

1,524¥ 5,691

12,682$ 47,358

9. RETIREMENT BENEFIT PLANS
The Company and its domestic subsidiaries have defined benefit corporate pension plans and a lump-sum payment retirement benefit planscovering substantially all employees in Japan. Additional benefits may be granted to employees according to the conditions under which
termination of employment occurs. Certain consolidated subsidiaries use the simplified method for calculation of retirement benefit obligation.
Certain foreign subsidiaries have defined contribution pension plans.
The changes in the retirement benefit obligation during the years ended March 31, 2014 and 2015 are as follows:
2014

2015

(Millions of yen)

Balance at the beginning of the year 
Cumulative effects of changes in accounting policies 
Restated balance at the beginning of the year 
Increase by acquisition of a consolidated subsidiary Service cost Interest cost 
Actuarial gain or loss Retirement benefits paid 
Others 
Balance at the end of the year 34¥31,294—
31,294
—
1,451
445
(48)
(1,751)—¥31,391¥31,391
2,320
33,711
983
1,868
442
451
(1,639)444¥36,260

2015(Thousands of
U.S. dollars)$261,222
19,306
280,528
8,180
15,545
3,678
3,753(13,639)3,694$301,739

The changes in plan assets during the years ended March 31, 2014 and 2015 are as follows:
2014

2015

(Millions of yen)

Balance at the beginning of the year 
Increase by acquisition of a consolidated subsidiary Expected return on plan assets 
Actuarial gain or loss 
Employer contributions Retirement benefits paid 
Others 
Balance at the end of the year ¥18,323
—
254
1,124
1,952
(1,151)44¥20,546¥20,546
486
334
1,320
1,937
(1,195)355¥23,783

2015(Thousands of
U.S. dollars)$170,974
4,044
2,779
10,984
16,119(9,944)2,955$197,911

The changes in liability for retirement benefits on the simplified method during the years ended March 31, 2014 and 2015 are as follows:
2014

2015

(Millions of yen)

Balance at the beginning of the year Retirement benefit expenses 
Retirement benefits paid Contributions for the plans Balance at the end of the year ¥6,532
694
(469)
(472)
¥6,285¥ 6,285
794
(390)
(369)
¥ 6,320

2015(Thousands of
U.S. dollars)$ 52,301
6,607(3,245)(3,071)$ 52,592

The following table sets forth the funded status of the plans and the amounts recognized in the consolidated balance sheets as of March 31,
2014 and 2015 for the defined benefit plans:
2014

2015

(Millions of yen)

2015
(Thousands of
U.S. dollars)

Unfunded retirement benefit obligation 
Net liability for retirement benefits in the consolidated balance sheets ¥38,339(23,259)
15,0802,050¥17,130¥43,449(26,856)
16,5932,204¥18,797$ 361,563(223,484)
138,079
18,341$ 156,420

Liability for retirement benefits 
Net liability for retirement benefits in the consolidated balance sheets ¥17,130¥17,130¥18,797¥18,797$ 156,420$ 156,420

Funded retirement benefit obligation 
Fair value of plan assets 

The components of retirement benefit expenses for the years ended March 31, 2014 and 2015 are as follows:
2014

2015

(Millions of yen)

Service cost Interest cost Expected return on plan assets 
Amortization of unrecognized actuarial gain or loss Amortization of prior service cost Retirement benefit expenses on the simplified method Retirement benefit expenses on the defined benefit plan ¥1,451
445
(254)
520
(40)
694
¥2,816¥ 1,868
442
(334)
176
(28)
785
¥ 2,909

2015(Thousands of
U.S. dollars)$ 15,545
3,678(2,779)
1,465
(234)
6,532
$ 24,20735

Notes to Consolidated Financial Statements

The components of retirement benefits liability adjustments included in other comprehensive income (before tax effect) for the years ended March
31, 2014 and 2015 are as follows:
2014

2015

(Millions of yen)

Prior service cost 
Actuarial loss 
Total 

¥—
—
¥—

2015
(Thousands of
U.S. dollars)

¥

78
(605)
¥ (527)$

649(5,035)$ (4,386)

Remeasurements of defined benefits plans included in accumulated other comprehensive income (before tax effect) as of March 31, 2014 and2015 as follows:
2014

2015

(Millions of yen)

Unrecognized prior service cost 
Unrecognized actuarial gain or loss 
Total ¥(330)
1,203
¥873

2015
(Thousands of
U.S. dollars)¥ (252)598¥ 346$ (2,097)
4,976$ 2,879

The fair value of plan assets, by major category, as a percentage of total plan assets as of March 31, 2014 and 2015 as follows:
2014

General account 
Domestic bonds 
Foreign stocks Domestic stocks Foreign bonds 
Others 
Total 

2015

32%
21%
15%
13%
9%
10%
100%

34%
17%
16%
15%
8%
10%
100%

The total fair value of plan assets includes 4% and 3% of the retirement benefit trust set to the corporate pension plan at March 31, 2014 and 2015
separately.
The expected return on assets has been estimated based on the anticipated allocation to each asset class and the expected long-term returns on
assets held in each category.
The assumptions used in accounting for the above plans were as follows:
2014

Discount rate Expected rate of return on plan assets 

2015

1.0%
1.0%

1.5%
1.5%

Required contribution of the consolidated subsidiaries for the defined contribution pension plans as of March 31, 2014 and 2015 as follows:
2014

2015

(Millions of yen)

Required contribution 

¥2

¥3

2015
(Thousands of
U.S. dollars)$25

The Company and its domestic consolidated subsidiaries have defined benefit corporate pension plans and a non-contributory plan covering36

10. INCOME TAXES
Significant components of deferred tax assets and liabilities at March 31, 2014 and 2015 were as follows:
2014

2015

(Millions of yen)

Deferred tax assets:
Tax loss carry forwards Net defined benefit liabilities 
Unrealized intercompany loss 
Accrued bonuses 
Allowance for doubtful accounts 
Loss on disposal of fixed assets 
Other Total deferred tax assets 
Valuation allowance 
Total deferred tax assets, net of valuation allowance 
Deferred tax liabilities: 
Unrealized gain on securities Revaluation gain on subsidiaries 
Unrealized intercompany profit 
Negative Goodwill 
Other Total deferred tax liabilities 
Net deferred tax assets 

2015(Thousands of
U.S. dollars)¥19,614
5,943
3,254
1,840
1,812
918
9,377
42,758(23,942)
18,816¥15,249
6,243
2,906
1,679
1,702
827
10,20138,807(21,087)
17,720$126,895
51,951
24,182
13,972
14,163
6,882
84,889322,934(175,476)
147,458(1,187)(1,134)(1,061)(390)(417)(4,189)¥14,627(1,494)(1,029)
(962)
—
(809)
(4,294)¥13,426(12,432)(8,563)(8,005)—(6,732)(35,733)$111,725

Deferred tax assets and liabilities that comprise net deferred tax assets are included in the accompanying consolidated balance sheets as follows:
2014

2015

(Millions of yen)

Deferred tax assets (current assets) Deferred tax assets (investments and other assets) 
Other long-term liabilities ¥4,507
10,602(482)

2015(Thousands of
U.S. dollars)¥ 5,008
9,146
(728)

$ 41,674
76,109(6,058)In addition to the above, the Company recorded deferred tax liabilities on land revaluation surplus of ¥452 million and ¥410 million ($3,412
thousand) at March 31, 2014 and 2015 separately.
A reconciliation of the differences between the statutory income tax rate and the effective income tax rate for the years ended March 31, 2014
and 2015 was summarized as follows:
2014

Statutory income tax rate Increase (decrease) in taxes resulting from:
Decrease in deferred tax assets due to a change in tax rate Amortization of goodwill 
Permanent non-deductible expenses 
Inhabitant taxes per capita 
Valuation allowance 
Equity in earnings of affiliates 
Other Effective income tax rate 

2015

—%

35.6%

)
%

11.9
1.5
1.1
1.0
(12.9)
(4.6)
(1.4)
32.2%

Since the difference between the statutory income tax rate and effective income tax rate was equal or less than 5% of the statutory income tax
rate, the reconciliation for the year ended March 31, 2014 is not presented.
37

Notes to Consolidated Financial Statements

The “Act for Partial Amendment of the Income Tax Act, etc.”(ACT No. 9 of 2015) and the “Act for Partial Amendment of the Local Tax Act, etc.”(Act No. 2 of 2015) were promulgated on March 31, 2015. As a result, the effective statutory tax rate used to measure the Company’s deferred tax
assets and liabilities was changed from 35.6% to 33.1% and 32.3% for the temporary differences expected to be realized or settled in the year
beginning April 1, 2015 and for the temporary differences expected to be realized or settled from April 1, 2016, respectively. The effect of theannounced reduction of the effective statutory tax rate was to decrease deferred tax assets, after offsetting deferred tax liabilities, by ¥685 million($5,700 thousand) and deferred tax liabilities on land revaluation surplus by ¥42 million ($350 thousand), and increase deferred income tax
expense by ¥831 million ($6,915 thousand), net unrealized gains on securities by ¥150 million ($1,248 thousand), increase net unrealized gains
on hedges by ¥0 million ($0 thousand), and remeasurements of defined benefit plans by ¥34 million ($283 thousand) as of the year ended March
31, 2015.
Deductible amount is limited to 65% of taxable income in the year beginning on or after April 1, 2015 and 50% in the year beginning on orafter April 1, 2017. The effective of this change was to decrease deferred tax assets by ¥1,097 million ($9,129 thousand) and increase deferredincome tax expense by ¥1,097 million ($9,129 thousand).
11. APPROPRIATIONS OF RETAINED EARNINGS
The following appropriation was approved at the ordinary general meeting of shareholders of the Company held on June 24, 2015:(Millions of yen)(Thousands of U.S. dollars)¥2,720Cash dividends $22,635

The Company is required to obtain the approval of shareholders at an ordinary general meeting of shareholders for appropriations of retained
earnings in conformity with the Corporation Law. Appropriations of retained earnings are, therefore, not reflected in the consolidated financial
statements for the year to which they relate but are recorded in the consolidated financial statements in the subsequent year after shareholders’approval has been obtained.
12. REVALUATION SURPLUS
A consolidated subsidiary of the Company revalued its land used for business purposes in accordance with the Land Revaluation Law, when it was
an affiliate. As a result of this revaluation, the Company recognized its portion of the affiliate’s revaluation surplus and the related deferred tax
liabilities.
13. DERIVATIVESIn the normal course of business, the Company and its consolidated subsidiaries utilize various derivative financial instruments in order tomanage the exposure resulting from fluctuation in foreign currency exchange rates, interest rates and the prices of aluminum ingot in the market.
The Company and its consolidated subsidiaries do not hold or issue derivative financial instruments for trading purposes.
14. NOTES TO CONSOLIDATED STATEMENT OF INCOME
Inventories
The amount of inventories written down due to a decline in profitability for the years ended March 31, 2014 and 2015 was ¥(227) million and¥173 million ($1,440 thousand), respectively which is included in cost of sales.
Selling, general and administrative expenses
2014

2015

(Millions of yen)

Freight charges Salaries, allowances and bonuses ¥11,142
16,412¥11,487
16,808

2015(Thousands of
U.S. dollars)$ 95,590
139,869

Research and Development
Research and development costs charged to cost of sales and selling, general and administrative expenses for the years ended March 31, 2014 and2015 was ¥4,984 million and ¥4,495 ($37,405 thousand), respectively.
Gain on sales of fixed assets
2014

2015

(Millions of yen)

Land 

¥ —¥1,397

2015(Thousands of
U.S. dollars)$11,625

15. CONTINGENT LIABILITIESContingent liabilities at March 31, 2015 amounted to ¥960 million ($7,989 thousand) for loans guaranteed and other guarantees given in theordinary course of business.
38

16. LOSS ON IMPAIRMENT OF FIXED ASSETS
The domestic consolidated subsidiaries recognized ¥412 million of loss on impairment of fixed assets included in loss on closing plant in the
consolidated statements of income, of which the significant items for the year ended March 31, 2014 were as follows:
2014

Location
Shizuoka City,
Shizuoka Prefecture
Fukuroi City,
Shizuoka Prefecture

Major use
Operating assets
Operating assets

Asset category
Buildings and structures
Machinery and equipment
Buildings and structures
Machinery and equipment
Tools, furniture and fixtures(Millions of yen)

¥165
108

¥132
7
0

The domestic consolidated subsidiaries recognized an impairment loss of ¥273 million for the aluminum electrolytic business in Shizuoka City,
Shizuoka Prefecture and the carry amounts of the relevant assets were written down to the memorandum value because of exiting from its
business.
The domestic consolidated subsidiaries recognized an impairment loss of ¥139 million for the operating of the secondary aluminum alloy
business in Fukuroi City, Shizuoka Prefecture and carry amounts of the relevant assets were written down to the memorandum value because theplant has exited from the business.
The domestic consolidated subsidiaries has grouped the operating assets by the independent operating division which generates cash flows, therental assets by administrative business division and idle assets by individual asset itself.
The domestic consolidated subsidiaries recognized ¥6,201 million ($51,602 thousand) of loss on impairment of fixed assets in the
consolidated statements of income, of which the significant items for the year ended March 31, 2015 were as follows:
2015

Location
Shizuoka City,
Shizuoka Prefecture

Major use
Operating assets

Asset category
Machinery and equipment
Buildings and structures
Others(Millions of yen)(Thousands of
U.S. dollars)¥2,8702,455
19¥5,344$23,883
20,429158$44,470

Since the cash flows generated from operating activities resulting from the use of the groups of assets have been continuously negative, theconsolidated subsidiaries recognized an impairment loss of ¥5,344 million ($44,470 thousand) after noting a sign of impairment and evaluating anecessity of the impairment loss. The recoverable amounts of the asset groups were measured at their respective value in use and cash flows were
calculated at a discount rate of 3.5%.
The consolidated subsidiaries has grouped the operating assets by the independent operating division which generates cash flows, the rental
assets by administrative business division and idle assets by individual asset itself.
17. LOSS ON DISPOSAL OF FIXED ASSETS
2014

2015

(Millions of yen)

Software 

¥612

¥—

2015
(Thousands of
U.S. dollars)$—

18. AMOUNTS PER SHARE
Net income and net assets per share for the years ended and as of March 31, 2014 and 2015 were summarized as follows:
1. Policy for financial instruments
2014

2015

(Millions of shares)

Weighted average number of shares 
Effect of convertible bonds 
Diluted number of shares 

543,865
23,219567,084

543,835
75,000618,835

39

Notes to Consolidated Financial Statements

2. Net income per share
2014

2015

(Millions of yen)

Net income ¥9,645¥5,1282014$80,261

2015
(yen)

Net income per share 
Diluted net income per share 

2015(Thousands of
U.S. dollars)

2015(U.S. dollars)¥9.43¥9.04¥17.74¥15.59

2014

2015

$ 0.15$ 0.13

3. Net asset per share(Millions of yen)

Total net assets 
Less: minority interestss 
Net assets attributable to shares of common stocks ¥121,194(10,778)¥110,416
2014¥137,385(15,963)¥121,422$1,143,255(132,837)$1,010,418

2015

2015

(yen)

Net assets per share ¥203.03

2015(Thousands of
U.S. dollars)(U.S. dollars)¥ 223.27

$

1.86

19. BUSINESS COMBINATION(a) Business combination through acquisition
1) Name of acquired companies and outline of business
Name of acquired companies
Toyo Rikagaku Kenkyusho Co., Ltd (hereinafter referred to as “Toyo Rika”) and its subsidiary, Toyo Precision Appliance (Kunshan) Co., Ltd
Outline of business
Manufacturing and sales of various metal products and metal surface treatment
2) Reason for business combination
To lead synergistic benefits through the greater use of the Company group’s business network and management resources in Japan andoverseas and of Toyo Rika’s management resources in Japan and China. The Company group and Toyo Rika will reinforce theirpartnership through strategic initiatives, including integration of their resources.
3) Date of business combination
January 20, 20154) Legal form of business combination
Acquisition of shares for cash consideration
5) Post-business combination company name
No change
6) Percentage of voting shared acquired
Voting rights held immediately before stock acquisition 
Percentage of additional voting rights acquired on the date of business combination 
Voting rights after stock acquisition 

25.3%
26.3%
51.6%

7) Main basis for determining acquired company
The Company acquired shares with cash.
(b) The acquired companies are included in the consolidated financial statements from January 1, 2015 to March 31, 201540

(c) Cost of acquisition and its components
The fair value of common stock of Toyo Rika held immediately before stock acquisition 
The fair value of additional common stock of Toyo Rika acquired on the date of business combination 
Acquisition cost of the acquired company (Millions of yen)(Thousands of
U.S. dollars)

¥647
716
¥1,363$ 5,384
5,958$11,342(d) The difference between acquisition cost of the acquired company and the total costs of stock acquisition transactions
Loss on step acquisitions (Millions of yen)(Thousands of
U.S. dollars)¥569$4,735(Millions of yen)(Thousands of
U.S. dollars)¥7,4917,900¥15,391$ 62,337
65,740$128,077(Millions of yen)(Thousands of
U.S. dollars)¥7,233
2,392¥9,625$ 60,190
19,905$ 80,095(e) Amount of gain on negative goodwill and the reason for occurrence1) Amount of gain on negative goodwill¥604 million ($5,026 thousand)2) Reason for occurrence
The difference between the Company’s interests in the acquired company’s equity and the acquisition cost.
(f) Amount of assets acquired and liabilities assumed on the day of the acquisition
1) Assets
Current assets 
Non-current assets 
Total assets 2) Liabilities
Current liabilities Long-term liabilities 
Total liabilities 41

Notes to Consolidated Financial Statements

20. SEGMENT INFORMATIONThe reportable segments are components of the Company and its consolidated subsidiaries, for which their discrete financial information isavailable, and whose operating results are regularly reviewed by the Board of Directors to make decisions about resources to be allocated to thesegments and assess their performance.
The Company and its consolidated subsidiaries operate within four distinct business segments mainly in Japan: “Aluminum ingot andchemicals,” “Aluminum sheet and extrusions,” “Fabricated products and others” and “Aluminum foil, powder and paste.”
The “Aluminum ingot and chemicals” segment supplies aluminum remelted ingot used for various industrial materials, and produces a wide
spectrum of alumina and alumina hydrates ranging from raw materials to basic materials for ceramic compounds. The “Aluminum sheet andextrusions” segment produces sheet, coil, and extrusion products consisting primarily of shapes, tubes and rods. The “Fabricated products andothers” segment produces a variety of products which include wing bodies for transport vehicles, automobile components and electronic materials.
The “Aluminum foil, powder and paste” segment produces aluminum foil and aluminum powder used for various fields, such as daily necessaries,
energy, electronics and automobile. “Corporate items” includes unallocated operating expenses and corporate assets not specifically related toreportable segments.
Reportable segment information for the years ended March 31, 2014 and 2015 was as follows:
2014
The reportable segments
Aluminumingot andchemicals

Aluminum
sheet andextrusions

Fabricatedproducts
and others

Aluminum
foil, powder
and paste

Adjustment(Note 1)

Consolidated(Millions of yen)

Net sales
Customers ¥105,488¥71,274¥132,261¥93,806¥—¥402,829
39,064
19,273
10,164541(69,042)—Intersegment 
Total 144,552
90,547
142,425
94,347(69,042)
402,829¥2,917¥2,668¥7,224¥2,889¥(3,081)¥12,617
Operating profit ¥113,979¥87,469¥132,355¥98,424¥311¥432,538
Segment assets 
Depreciation and amortization ¥4,156¥4,014¥3,296¥4,818¥151¥16,435
Amortization of goodwill 
¥—
¥—
¥—
¥682
¥
—
¥682
Loss on impairment of fixed assets 
¥412
¥—
¥—
¥—
¥
—
¥412
Investment in equity-method affiliates ¥3,543¥6,509¥4,506¥3,045¥–¥17,603
Capital expenditures ¥3,141¥4,163¥3,247¥3,153¥297¥14,001(Note 1).Adjustments amounts are as follows.
1)Adjustments of ¥(3,081) million in segment profit are general corporate expenses.
2)Adjustments of ¥311 million in segment assets include ¥(32,023) million in the elimination of transactions between segments and¥32,334 million in corporate assets.
3)Adjustments of ¥151 million in depreciation and amortization expenses have primarily to do with corporate assets.
4)Adjustments of ¥297 million for capital expenditures are the increase in corporate assets.
2015
The reportable segments
Aluminumingot andchemicals

Aluminum
sheet andextrusions

Fabricatedproducts
and others

Aluminum
foil, powder
and paste

Adjustment(Note 1)

Consolidated¥—(81,565)(81,565)¥ (2,881)¥(19,221)¥ 174
¥
—
¥
—
¥
—
¥ 173¥431,477
—431,477¥ 19,305¥457,277¥ 16,406¥ 672¥ 6,201¥ 20,650¥ 15,869(Millions of yen)

Net sales
Customers Intersegment 
Total Operating profit 
Segment assets 
Depreciation and amortization 
Amortization of goodwill 
Loss on impairment of fixed assets 
Investment in equity-method affiliates Capital expenditures 42¥114,339
47,570161,909¥ 6,069¥119,824¥ 4,292¥—¥ 5,443¥ 4,010¥ 3,529¥ 82,823
22,383
105,206¥ 4,230¥118,974¥ 4,004¥—¥—¥ 7,953¥ 5,269¥138,088
11,040149,128¥ 7,704¥136,224¥ 3,601
¥
19
¥
84
¥ 5,276¥ 3,440¥ 96,227
572
96,799¥ 4,183¥101,476¥ 4,335¥ 653¥ 674¥ 3,411¥ 3,458

2015
The reportable segments
Aluminumingot andchemicals

Aluminum
sheet andextrusions

Fabricatedproducts andothers

Aluminum
foil, powder
and paste

Adjustment(Note 1)

Consolidated(Thousands of U.S. dollars)

Net sales
Customers $ 951,477$689,215 $1,149,105$800,758$— $3,590,555
395,856
186,261
91,8704,760(678,747)—
Intersegment 
Total 1,347,333
875,476
1,240,975
805,518(678,747) 3,590,555$ 50,503$ 35,200 $ 64,109$ 34,809$ (23,975) $ 160,648
Operating profit $ 997,121$990,047 $1,133,594$844,437$(159,948) $3,805,251
Segment assets 
Depreciation and amortization $ 35,716$ 33,319 $ 29,966$ 36,074$ 1,448 $ 136,523
Amortization of goodwill 
$
—
$
— $
158
$ 5,434$— $ 5,592
Loss on impairment of fixed assets $ 45,294
$
— $
699
$ 5,609$— $ 51,602
Investment in equity-method affiliates $ 33,369$ 66,181 $ 43,904$ 28,386$— $ 171,840
Capital expenditures $ 29,367$ 43,846 $ 28,626$ 28,776$ 1,440 $ 132,055(Note 1).Adjustments amounts are as follows.
1)Adjustments of ¥(2,881) million ($(23,975) thousands) in segment profit are general corporate expenses.
2)Adjustments of ¥(19,221) million ($(159,948) thousands) in segment assets include ¥(38,099) million ($(317,043) thousands) in theelimination of transactions between segments and ¥18,878 million ($157,095 thousands) in corporate assets.
3)Adjustments of ¥174 million ($1,448 thousands) in depreciation and amortization expenses have primarily to do with corporate assets.
4)Adjustments of ¥173 million ($1,440 thousands) for capital expenditures are the increase in corporate assets
Geographical sales for the years ended March 31, 2014 and 2015 were summarized as follows:
2014
Japan

Other

2015
Total

Japan

(Millions of yen)

¥335,035¥67,794

Other

2015
Total

Japan

(Millions of yen)¥402,829¥349,752¥81,725

Other

Total

(Thousands of U.S. dollars)¥431,477$2,910,477$680,078$3,590,555

Geographical property, plant and equipment for the year ended March 31, 2014 and 2015 were summarized as follows:
2014
Japan

Other

2015
Total

Japan

¥150,901¥129,381(Millions of yen)

¥135,067¥15,834

Other

2015
Total

Japan

¥153,235$1,076,650(Millions of yen)

¥23,854

Other

Total

(Thousands of U.S. dollars)$198,502$1,275,152

43

Report Of Independent Auditors

44

Overseas Network

OVERSEAS SUBSIDIARIES AND AFFILIATES
North America
Nikkei MC Aluminum
America Inc.
Indiana, U.S.A.
Phone: 1-812-342-1141
Aluminum alloys(60%)

Toyal America Inc.
Illinois, U.S.A.
Phone: 1-630-505-2160
Aluminum powder and paste(100%)
EuropeToyal Europe Société par
Actions Simplifiée
Unipersonnelle
Accous, France
Phone: 33-0559983535
Aluminum powder and paste(100%)

East Asia
Nikkei MC Aluminum(Kunshan) Co., Ltd.
Kunshan, China
Phone: 86-512-5763-1946
Aluminum alloys(85%)

Nikkei (Shanghai) Body Parts
Co., Ltd.
Shanghai, China
Phone: 86-21-5986-9388
Automobile components(100%)
Nikkei (Shanghai)International Trading Co., Ltd.
Shanghai, China
Phone: 86-21-6236-9658
Sales and marketing bases(100%)NI Nikkei Shenzhen Co., Ltd.
Shenzhen, China
Phone: 86-755-2650-5656
Automobile components(55%)

Southeast Asia
Nikkei MC Aluminum(Thailand) Co., Ltd.
ThailandPhone: 66-3852-2296-9
Aluminum alloys(79%)

Nikkei Siam Aluminium
LimitedThailandPhone: 66-2-529-5299
Aluminum sheet, foil
(100%)
Nikkei Singapore
Aluminium Pte. Ltd.
Singapore
Phone: 65-6293-3770
Trading and marketing(100%)

Nonfemet International(China-Canada-Japan)
Aluminium Co., Ltd.
Shenzhen, China
Phone: 86-755-2661-1569
Extrusion(18%)
Toyal Zhaoqing Co., Ltd.
Zhaoqing, China
Phone: 86-758-3602-160
Aluminum paste(90%)
Toyo Tokai Aluminium Hanbai(Shanghai) Co., Ltd.
Shanghai, China
Phone: 86-21-5257-4116
Trading and marketing(100%)
Sam-A Aluminium Co., Ltd.
Seoul, Korea
Phone: 82-02-3458-0600
Aluminum foil, paste(33%)(As of July 31, 2015)45

Directors And Officers

Directors

Audit & Supervisory Board Member

Chairman of the Board and director

Ichiro Okamoto

Tadashi Asahi
Nobuo Matsumoto
Koji Fukui
Yuzuru Fujita*2
Katsuo Wajiki*2
Yasuo Yuki*2

President and CEO of Nippon Light Metal Co., Ltd*2 Outside Member

Directors

Officers

Takashi Ishiyama
President
Representative Director

Toshihide Murakami
Yasunori Okamoto
Mikio Shimizu

Takashi Hara
Masamichi Ueda

President and Representative Director of Nikkeikin

Hirokazu Takatoku

Kakoh Kaihatsu Holdings Company, Ltd.

Minoru Sotoike

Masao Imasu
Hiroshi Yamamoto

Hideki Amimura

President and CEO of Toyo Aluminium K.K.

Takayuki Tsuchida

Koji Ueno
President and CEO of Nippon Fruehauf Co., Ltd.

Hiroyasu Hiruma
President and CEO of Nikkei Panel System Co., Ltd.

Shozo Hamamura
President and CEO of Nikkei MC Aluminium Co., Ltd.

Masato Ono*1
Ryoichi Hayashi*1*1 Outside Director(As of June 24, 2015)46

Profile

Corporate Data

Since its establishment, the NLM Group has been Japan’s sole fully integrated aluminum manufacturer
offering varieties of products ranging from aluminum raw material to fabricated products.
Aluminum has properties that make it a superb industrial material: it is lightweight and has
excellent processability, corrosion resistance, thermal conductivity, and recyclability. Nippon Light
Metal applies its core strengths — a wealth of knowledge about aluminum and its characteristics andtechnological capabilities that have been developed over many years — to supply a highly diversified
range of products to a number of key industrial sectors, including the automotive, electrical andelectronics, information and telecommunication, environment, safety, energy, construction, railroad,and food products industries.
By carrying on development of new applications for aluminum and aluminum materials, theHead Office

Major Shareholders

NYK Tennoz Building
2-20, Higashi-Shinagawa 2-chome
Shinagawa-ku, Tokyo 140-8628, Japan
http://www.nikkeikinholdings.co.jp
Phone: 81-3-5461-8601
Fax: 81-3-5461-8681(Ratio of Stock Holding)Japan Trustee Services Bank, Ltd.
(trust accounts)(6.6%)

EstablishedThe Dai-ichi Mutual Life Insurance Co.
(3.7%)

October 1. 2012

NLM Group is to continue to support customers in wide-ranging industrial sectors and contribute toimproving the quality of people’s lives and protection of the environment.

Paid-In Capital¥39,085 million
Shares of Common Stock

Consolidated Financial Highlight

Authorized: 2,000,000,000
Issued: 545,126,049

Nippon Light Metal Holdings Company, Ltd. and its consolidated subsidiaries Years ended March 31

2015

2014

2015
Thousands of
U.S. dollars

Millions of yen

For the year:
Net sales 
Operating profit 
Net income ¥402,829 ¥431,477 $3,590,555
12,617
19,305
160,648
5,128
9,645
80,261

At year-end:
Total assets 
Net assets 
Short-term borrowings and long-term debt,
including bonds and capital lease obligation 
Net Sales

600

432,538
121,194457,277
137,385

3,805,251
1,143,255

202,619

192,594

1,602,680

Operating Profit

Nippon Light Metal Holdings Company, Ltd.

Nippon Light Metal Holdings Company, Ltd.

Nippon Light Metal Holdings Company, Ltd.

Nippon Light Metal Company, Ltd.

Nippon Light Metal Company, Ltd.

600

24

450

52,706

Nikkei-Keiyu-Kai(2.9%)The Light Metal Educational Foundation, Inc.
(2.7%)
Asahi Mutual Life Insurance Co.
(2.3%)
Mizuho Bank, Ltd.
(2.1%)

Stock Exchange Listings
Tokyo
Transfer Agent of Common Stock
Sumitomo Mitsui Trust Bank, Ltd.
Last Shareholders’ Meeting
June 24, 2015

Total Assets

Nippon Light Metal Company, Ltd.

30

Number of Shareholders

The Master Trust Bank of Japan, Ltd.
(trust accounts)(6.5%)

Japan Trustee Services Bank,Ltd(trust accounts 9)(1.9%)
CBNY DFA International Small Cap Value Portfolio(1.7%)
Sumitomo Mitsui Trust Bank, Ltd.
(1.7%)(As of March 31, 2015)

450

18
300

300
12

150

Cautionary Statement
This annual report contains various projections and estimates. Important factors that could alter these projections and estimates include

150

6changes in the balance of aluminum supply and demand, fluctuations in the price of aluminum ingot and foreign exchange rates, as well
as shifts in Japanese government policies and regulations. The Company cautions, therefore, that the projections and estimates contained

0

2010

2011

Billions of yen

2012

2013

2014

2015

Years ended March 31

0

2010

2011

Billions of yen

2012

2013

2014

2015

Years ended March 31

0

2010

2011

Billions of yen

2012

2013

2014

2015

herein involve risk and uncertainty, and that actual results could differ materially from those expressed or implied.

As of March 31

47

NIPPON LIGHT METAL HOLDINGS COMPANY, LTD. ANNUAL REPORT 2015

Nippon Light Metal Holdings Company, Ltd.
NYK Tennoz Building, 2-20, Higashi-Shinagawa 2-chome
Shinagawa-ku, Tokyo 140-8628, Japan
http://www.nikkeikinholdings.co.jp

Printed in Japan

ANNUAL R EPORT 2015
Year ended March 31, 2015