NIPPON LIGHT METAL HOLDINGS COMPANY, LTD. ANNUAL REPORT 2014

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 JapanA N N UA L R E P O RT 2014
Year ended March 31, 2014

Corporate Data

ProfileSince 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

The Master Trust Bank of Japan, Ltd.
(trust accounts)(4.5%)

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

Consolidated Financial Highlight

Shares of Common Stock
Authorized: 2,000,000,000
Issued: 545,126,049

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

2014

2013

2014
Thousands of
U.S. dollars

Millions of yen

For the year:
Net sales 
Operating profit 
Net income ¥371,887 ¥402,829 $3,914,001
8,154
12,617
122,591
3,355
5,128
49,825

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

432,538
121,194

4,202,662
1,177,555

193,883

202,619

1,968,704

Operating Profit

Nippon Light Metal Holdings Company, Ltd.

800

419,786
114,624

Nippon Light Metal Company, Ltd.

Nippon Light Metal Holdings Company, Ltd.

35

53,994

Tokyo
Transfer Agent of Common Stock
The Mitsui Sumitomo Trust & Banking Co., Ltd.
Last Shareholders’ Meeting

Nippon Light Metal Holdings Company, Ltd.

600

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

June 25, 2014

Total Assets

Nippon Light Metal Company, Ltd.

Number of Shareholders(Ratio of Stock Holding)Japan Trustee Services Bank, Ltd.
(trust accounts)(4.0%)

Nippon Light Metal Company, Ltd.

Hiroshi Tsunoda(2.1%)
Sumitomo Mitsui Trust Bank, Ltd.
(1.7%)
Retirement Benefit Trust in Mizuho Trust &Banking C0., Ltd. Mizuho Bank, Ltd. account;
Trust & Custody Services Bank, Ltd. as a Trusteeof Retrust(1.6%)

30
25

600(As of March 31, 2014)

450

20
15

400

10

300

5

Cautionary Statement

0200This annual report contains various projections and estimates. Important factors that could alter these projections and estimates include

150

-5

changes in the balance of aluminum supply and demand, fluctuations in the price of aluminum ingot and foreign exchange rates, as well

-10
0

2009

Billions of yen

2010

2011

2012

2013

2014

Years ended March 31-15

as shifts in Japanese government policies and regulations. The Company cautions, therefore, that the projections and estimates contained
2009

Billions of yen

2010

2011

2012

2013

2014

Years ended March 31

0

2009

Billions of yen

2010

2011

2012

2013

2014

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

As of March 31

45

Contents

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................................................................................................................... 42
Overseas Network........................................................................................................................................... 43
Directors And Officers.................................................................................................................................... 44
Corporate Data................................................................................................................................................. 45

2014

2013

2014

yen

U.S. dollars

Per share data (yen and dollars):
Net income —basic —diluted 
Cash dividends 
Net assets ¥6.17—3.00
193.33¥9.43—4.00
203.03$0.09—0.04
1.97

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

¥118
65

¥164
95

$1.590.92

Note: U.S. dollar amounts have been translated, for convenience only, at the exchange rate of ¥102.92 = U.S.$1.00. See Note 2 of the Notes to the Consolidated Financial Statements.

Net Income per Share

Net Assets per Share

Nippon Light Metal Holdings Company, Ltd.

30.0

Nippon Light Metal Company, Ltd.

Cash Dividends per Share

Nippon Light Metal Holdings Company, Ltd.

250.0

Nippon Light Metal Company, Ltd.

Nippon Light Metal Holdings Company, Ltd.

4.0

200.0

Nippon Light Metal Company, Ltd.

3.0

0
150.0
2.0
100.0
-30.0
1.0

50.0

-60.0
Yen

2009

2010

2011

2012

2013

0

2014

Years ended March 31

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

Yen

2009

2010

2011

2012

2013

2014

Years ended March 31

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

0
Yen

2009

2010

2011

2012

2013

2014

As of March 31

1

To Our Shareholders

Takashi Ishiyama, President and CEO

I would like to take this opportunity to extend my sincere
gratitude to our shareholders for their continued supportof our business operations.
I hereby report on the operating results for Nippon Light
Metal Holdings Company, Ltd. (“NLM Holdings”) for fiscal
2013 (the year from April 1, 2013 to March 31, 2014).
2

Overview of Fiscal 2013
During the year under review, the environment in thedomestic aluminum industry was mixed, as shipments
for automobile and construction-related fields increased
backed by strong automobile sales and a rise in
housing starts while those for electrical machinery andelectronics-related fields remained stagnant. As a result,overall aluminum product demand slightly increased
from that of the previous year.
Also for the NLM Group, while sales of products
including electrical machinery and electronics remainedsluggish, shipments for automobile-related products,
panel systems and other products performed well.
Under these circumstances, the Group has formulated
a new Mid-Term Management Plan (fiscal 2013 to fiscal
2015) starting in the year ended March 2014 with thefollowing three basic policies to strengthen and expand
the Group’s management structure.
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
Fiscal 2013 was marked as the year when theGroup’s past overseas investment started to bear fruits.
Specifically, automobile product business conductedby Nikkeikin Aluminum Core Technology in China
and aluminum alloy business conducted by Nikkei
MC Aluminum in China and Thailand showed robust
performance.
Consequently, consolidated net sales for the year underreview increased 8.3% year on year, to ¥402.8 billion.
Consolidated operating profit and consolidated ordinary
profit increased 54.7% and 85.2% year on year, to ¥12.6

billion and ¥12.7 billion, respectively. Consolidated net
income increased 52.8% year on year to ¥5.1 billion.
Year-end dividend payment will be ¥4 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 12.3% year on year, to ¥105.5 billion,
while operating profit decreased 10.9% year on year,to ¥2.9 billion. This is due to the fact that sales of thesecondary alloy business, the core of the Aluminum Ingot
segment, were robust, marking increases both in revenue
and profit, backed by the booming automobile industry;
however in the Alumina and Chemicals segment, theoverall shipments continued to be stagnant, and profits
were affected by increases in fuel and electricity costs.
Sales in the Aluminum Sheet and Extrusions segment
increased 12.8% year on year, to ¥71.3 billion, while
operating profit increased 59.3% year on year, to ¥2.7
billion. In the Aluminum Sheet segment, while shipments
for capacitors, electrical machinery and electronicsrelated fields were sluggish, transport-related shipments
mainly for trucks and railway cars were strong. Also in
the Extrusions segment, transport-related shipments forautomobiles were robust, and the shipments for solar
panel racks also increased.
Sales in the Fabricated Products and Others segment
increased 4.8% year on year, to ¥132.3 billion, while
operating profit increased 3.6% year on year, to ¥7.2
billion. This is because sales in the truck outfitting
business temporarily declined due to a shortage of chassis
but rapidly recovered, and panel systems for freezers andrefrigerators and capacitors for car air conditioners also
performed well.
Sales in Aluminum Foil, Powder and Paste segment
increased 5.9 % year-on-year to ¥93.8 billion. Operating
3

To Our Shareholders

profit was posted as ¥2.9 billion, improved by ¥3.7
billion, compared to ¥0.8 billion in operating loss inthe previous year. This is due to the recovery in thecost competitiveness backed by the higher ratios of raw
material procurement and production in China for thesolar cell-related products in the Solar segment, as wellas the strong sales of fabricated foil for pharmaceuticalpackaging and water-shedding packaging for foodproducts in the Aluminum Foil segment and robust
shipments for inks used for food and beverage containers
in the Powder and Paste segment.
Key Topics during Fiscal 2013
In September 2013, Nikkei MC Aluminum and the U.S.
aluminum alloy manufacturer, TST, Inc., founded a joint
venture which manufactures and sells aluminum alloyin the United Mexican States. We will strive to expand ourbusiness by increasing our presence as a production site for
the North American market, and enabling the local supply
of development alloys and other products to customers
through Mexican market, where advance by automobile
manufacturers of each country are accelerating.
Also, in September 2013, Nippon Light Metal Company(“NLM”) and Guangxi Hezhou Investment Group Co.,
Ltd. established a joint venture which manufactures andsells high-purity aluminum ingot in Guangxi Zhuang
Autonomous Region in China.
As its electronics industry develops, demand for highpurity aluminum ingots in China is increasing. So
we will strive to expand our sales by rolling out our
technologies for producing high-purity products.
In Japan, as of March 31, 2014, we retreated from theelectrolytic aluminum smelting business, which was ouroriginal business field at the time of our foundation.
Although all of our competitors terminated theirelectrolytic smelting business due to rising electricity
4

costs after the oil crises, we continued the business byshrinking its scale; however we decided to end it due tothe severely aged equipment.
(Please refer to Topics on page 5 for details.)

Outlook for Fiscal 2014
With regard to the Japanese economy for fiscal 2014,
although there are expectations for a recovery in exports
due to yen depreciation, as well as for growth in personal
consumption through improvement in the employment
and income situation, downside risks continue to linger,
such as the effects of the consumption tax increase,financial uncertainty in China and emerging nations,concerns about a recession, and the rising cost of energy
including electricity. While demand for aluminumproducts is expected to decrease in automobile andconstruction fields due to the effect of the consumption
tax increase, a rise in exports backed by yen depreciation
is anticipated. Consequently, a slight increase from theprevious year is expected.
In these circumstances, the next fiscal year is projected
to register net sales of ¥410.0 billion, operating profit of¥17.0 billion, and ordinary profit of ¥15.0 billion.
The Group will strive to maximize consolidated revenue
by taking the transition to a holding company as anopportunity to strengthen collaboration within the Groupand to boost the profitability of overseas sites.
I would like to ask for the continuing support of ourshareholders in these efforts.
June 2014

Takashi Ishiyama
President and CEO

NLM Topics

NLM Ends Its Electrolytic Aluminum Smelting Business- Japan’s sole electrolytic aluminum smelting site comes to an end after its 74-year operation Kambara Complex has been carrying on its operation as
Japan’s remaining electrolytic aluminum smelting site
as it was able to procure electricity from NLM’s sixhydroelectric plants located along the Fuji River. NLM,
however, decided to discontinue its operation with ahistory of 74 years.
NLM has received the approval of its customers forthe decision to supply its high-grade aluminum (highpurity ingots) with imported ingots as their basis, andsince April we have continued to provide our products
as before.
■ Aluminum ingot production volume in Japan (Unit: 10,000 tons)
120

100

80

60

40

20

20
1
20 0
13

00
20

90
19

80
19

70
19

60
19

50
19

40
19

33

0

19

On March 31, 2014, Nippon Light Metal Company, Ltd.
(hereinafter “NLM”) discontinued its electrolytic
aluminum smelting business at the Kambara Complex(Shizuoka Prefecture), which had produced aluminum
ingots used as base material for high-purity products
mainly in the electrical and electronics field.
NLM’s electrolytic furnaces and other equipment
have aged significantly, and a substantial investment
would be required to continue the electrolytic
aluminum smelting business. The business wastherefore deemed not to be economically viable. At thetime of closure, ingot production capacity stood at
7,000 tons per year, production volume for fiscal 2013
was 2,654 tons, and the number of employees was 21.
NLM was established in 1939, and launched its
electrolytic aluminum smelting business the following
year. Fueled by Japan’s economic growth, demand foraluminum expanded rapidly, and by 1975, the annual
production capacity at the three plants of Kambara,
Niigata, and Tomakomai had reached 370,000 tons.
However, electricity costs soared as a result of thetwo oil shocks in the 1970s, and NLM discontinued its
electrolytic aluminum smelting operations at the two
production sites in Tomakomai and Niigata. Only the● Kambara Complex Electrolytic Aluminum Smelting Plant

5

Special Feature

Mr. Ishiyama, President and CEO, discusses “measures to improve revenue inchallenged business sectors, and growth strategies.”Q

The consumption tax rate was raised to 8%
from 5% in April. How do you view the current
management environment?

A decrease in consumption due to a backlash against lastminute demand will occur after the consumption tax
increase; however, I believe that demand for aluminum products
will increase in the long term backed by the demand forconstruction focusing on the Olympics, and in the short term,
backed by an economy supported by Abenomics and an increasein exports due to yen depreciation. The impact of the Olympics tobe held in 2020 will be enormous. Just as the Tokyo Olympics held
50 years ago laid the foundations which continue to support
Japan, the 2020 Olympics may significantly change the social
infrastructure. I’ve been telling the Group’s employees, “Let’s put
our heads together and think hard about how to get involved in
the big changes presented by the Tokyo 2020 Olympics.”

Awill lay out a global supply structure for materials for automobile
heat exchangers through smooth coordination among Huafon,
Siam, and Nagoya, and expand sales of other aluminum sheet
products. The second is development of fabricated products incollaboration with Toyo Rikagaku Kenkyusho, in which we took astake in November 2013. We will aim to achieve profitable growthby offering fabricated products with high added value. The third is
the enhanced collaboration with Toyo Aluminium’s aluminum
foil business. The company’s aluminum foil business is ranked
No.1 in Japan, and it is the Group’s strength. We will expand oursales and profits through integrated production from ingots tofinished products within the Group.

Q

Q

of the Alumina-related business and theAluminum Sheet business have remained
stagnant. Could you discuss that?

We think that it is necessary to implement a drastic
reform in the Alumina-related business and Aluminum
Sheet business as we expect the cost of raw material and electricity
will remain at a high level. In the Alumina-related business, wewill promote measures to add high value to products while
implementing thorough cost reduction in Japan in order toproactively expand sales and place new products on the markets
both in Japan and overseas.
In regard to the Aluminum Sheet business, we will strive tosurvive by thoroughly differentiating ourselves from industry
competitors through three strategies. The first is the establishmentof a trilateral structure among Huafon Nikkei Aluminum (China),
Nikkei Siam (Thailand), and Nikkeikin Nagoya Plant (Japan). We

A

6development,” which is also emphasized in the
Mid-Term Management Plan?

The Group has made aggressive investments in businesses
with a main focus on fabrication mostly in Thailand andChina in the last few years.
In China, sales of automobile components offered by Nikkeikin
Aluminum Core Technology are strong, and this has led to theaddition of new facilities. Sales of aluminum components used inrailway and subway cars are increasing at the fourth site of
Nikkeikin Aluminum Core Technology, which was established in
October 2012.
Furthermore, we will strive to expand sales of electricalmachinery and electronics, for which demand is increasing,through a joint venture with a Chinese company established in
September 2013, which manufactures and sells high-purity ingots.
In Thailand, demand for aluminum sheet, extrusions, andfabricated products is very strong among U.S., European, andJapanese automobile manufacturers and home appliancemanufacturers. The NLM Group is pursuing business development
for products including aluminum sheets, foils, panels, and heatexchangers, and we are planning to develop a business forfabricated products using extrusions.

A

In recent years, it seems that the performances

Can you tell us about “overseas businessNikkei MC Aluminum, a Group company, is also planningaggressive overseas development. To date, the company has
operated the aluminum alloy business in North America,
Thailand, and Kunshan, China; in addition, it established joint
ventures in India in September 2012 and in Mexico in September
2013 to start the manufacture and sales of aluminum alloys forautomobile manufacturers.
In May 2014, Nippon Fruehauf acquired a 70% stake in
Mahajak Coldchain Co., Ltd., which manufactures and sells truck
bodies in Thailand, to establish a second overseas site and to
jointly conduct business with the Mahajak Group in Thailand.
The new company, Fruehauf Mahajak Co., Ltd., will commence
the manufacture and sales of automobile bodies, containers, andrelated products in July 2014 and plans to export products fromThailand to neighboring countries in the future.

Q

Could you tell us about your most importantmanagement philosophy, “Profit and Loss
Operations Management”?

I was appointed President and CEO in 2007. Since soonafter taking on the job, I have continually emphasizedthat “the most important thing for the management of the NLMGroup is to implement a cycle of “Create-Make-Sell” by
consolidating the processes of development, manufacture andsale.” This is “Profit and Loss Operations Management.”“Create-Make-Sell” management is not profit and loss
management within the organization to which one belongs, but
comprehensive and streamlining management whereby products
are developed, manufactured, and sold from the market-in pointof view through group-wide, cross-functional
activities.
In recent years, the Group has managed
operating profit on a product-by-productbasis, and has used this to take action toAfurther improve profit and loss. Each business segment hasestablished a framework for that purpose, and these frameworks
have begun to serve as measures to improve profit and loss. Basedon this, a structure to develop new products and businesses has
also been put in place.

Q

Please give a message to the shareholders andother stakeholders.

Since 2012, we have managed the Group under aholding company format, the primary objective of whichwas “to strengthen integration between Group companies.” Under
the holding company format, the Group has become flatlyorganized and more cross-sectional, giving rise to the creation ofmany new products and budding new businesses.
I believe that, as a consequence, this “Profit and Loss Operations
Management” can foster employees with management abilities.
There is a saying “business is people,” and in the Group we
have nurtured management executives through this “Profit andLoss Operations Management.” We invite our shareholders to lookforward to the future of the Group.

A

Takashi Ishiyama,
President and CEO

7

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 2013.
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
21.8

The Environment Committee is responsible for discussing anddetermining environmental management policies. The

20.1

from Nippon Light Metal Holdings and the presidents of

17.7

16.1

PJ

committee consists of executive officers and division managers

14.0

12
12.8

affiliated companies.
NIPPON LIGHT METAL HOLDINGS
President & CEO

Exective Committee

Environment OfficeEnvironmental
Committee

Subsidiaries Sites
Twenty companies

Environmental Audit

2005
Base Line

2009 2010 2011 2012 20132020
TargetOUTPUT

FY2013

FY2012

Greenhouse Gas (kton-CO2)

695

745

SOx (ton)

379

372

NOx (ton)

396

380

Discharged Water (Mm3)

27.9

29.0

COD (ton)

110

101

Disposed-landfill- (kton)

2.2

3.5

Recycled/ Reduced (kton)

34.3

28.6

The Environment Office conduct regular environmental

Change in Greenhouse Gas Emissions

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

1,143

Down 15%consists of double procedures: documentation review and972
k ton-CO2

on-site inspection which is implemented with a period of once
every three years. In 2013, Waste Management and Public
Cleansing Act were focused on. These results are

871
745

779

745

695

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

Material Balance
FY2013 energy consumption was down by 8.6%
INPUT
FY20132009 2010 2011 2012 20132020
TargetNew Initiatives
FY2012

Electricity (PJ)

7.8

8.2

The management of chemicals contained in products is one of

Fuel

5.0

5.8

significant issue at present. Three divisions such as Purchase,
Quality Assurance and Environmental Conservation are
jointly supported.

10

NLM Group

Nippon Light Metal Group consists of 79 subsidiaries and 26 affiliates (as of March 31, 2014).
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)(Sales and Others)● Nippon Light Metal Company, Ltd.

● Nikkei Sangyo Co., Ltd.

● Aluminium Wire Rod Co., Ltd.

● Tamai Steamship 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.

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

● Nikkeikin Kakoh Kaihatsu Holdings

Company, Ltd.

● Nikkei Extrusions Co., Ltd.
● Nikkeikin Aluminium Core Technology Co., Ltd.

Aluminum
Sheet andExtrusions● Nikkei Sangyo 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.
● Toyo Rikagaku Kenkyusho 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.
● 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.
● Toyal Zhaoqing Co., Ltd.

Aluminum
Foil, Powder
and Paste● 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: 73 companies● Affiliates accounted for by the equity method: 19 companies(As of March 31, 2014)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(Millionsof Yen)Consolidated Operating Profit

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

(Millionsof Yen)150,000

7,500

120,000

6,000

90,0004,500

60,0003,000

30,000

1,500

0

’11

’12

’13

’14

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

0

’11

’12

’13

’14

26.2
105,488%

Millions of Yen

Principal Products• Aluminum• Aluminum hydroxide• Chemicals (chemical products)• Caustic soda
• Chlorinated chemical products• Aluminum ingot• Aluminum alloys

Note : Operating results for the year ended March 31, 2011 and the year ended March 31, 2012 are for NLM.

● Overview of results for fiscal 2013

In the Alumina and Chemicals segment, with regard to alumina-related
products, sales of high-purity aluminum for LED sapphire substrates
were strong, but despite strong sales for some of the mainstay alumina
and aluminum hydroxide products in Japan, exports declined fromthe previous year due to decrease in sales volume from intensifying
competition. As a result, sales were on par with the levels of the previous
year. In terms of chemicals, despite strong shipments of organic
chlorine products, sales of inorganic coagulants-related products were
weak, causing sales for the segment overall to be the same levels of theprevious year.
In terms of profits, yen depreciation caused purchase price of the raw
material aluminum hydroxide to rise, and both fuel and electricity costs
increased. As a result, reductions in fixed costs and other measures wereunable to absorb rising costs, leading to results significantly below thoseof the previous year.
In the Aluminum Ingot segment, although sales of the mainstay
secondary alloy products for automotive applications were sluggish in
Southeast Asian and North American markets, sales volume grew, thanks
to the recovery of the number of automobile units manufactured inJapan. Additionally, sales prices rose in tandem with raw material prices
which serve as its benchmark, resulting in a significant increase in sales
compared to the previous year.
In terms of profits, sales of high value added products grew inChinese market, while in Japan the yen depreciation alleviated theprice competition with imported goods. These and other factors led tosignificant improvement in results compared with the previous year.
12

As of the end of March 2014, electrolytic aluminum smelting business at
Kambara Complex of the Group subsidiary Nippon Light Metal Company,
Ltd. has been shut down, due to aging equipment and other factors.
As a result, Alumina, Chemicals and Aluminum Ingot segment sales
increased 12.3%, or ¥11,586 million year on year, to ¥105,488 million(¥93,902 million for the previous year), while operating profit decreased
10.9%, or ¥356 million year on year, to ¥2,917 million (¥3,273 million
for the previous year).
In September 2013, Group subsidiary Nikkei MC Aluminium Co., Ltd.
jointly founded with a U.S. firm T.S.T. Nikkei Metales S. de R.L. de C.V. in
Estado de Aguascalientes, Mexico, as the site for manufacturing and saleof aluminum alloys in the United Mexican States. Nikkei MC Aluminium
Co., Ltd. invested a 45% stake in the new company. We will strive toexpand our business by increasing our presence as a production site for
the North American market, and enabling the local supply of development
alloys and other products to customers through Mexican market, where
advance by automobile manufacturers of each country are accelerating.
Also, in September 2013, Nippon Light Metal Company, Ltd. foundeda local joint venture, Guangxi Hezhou Nikkei Guiyin Technology Co.,
Ltd. in Guangzi Zhuang Autonomous Region, investing a 49% stake. The
new company will serve as a site for the manufacturing and sale of highpurity aluminum ingots in China. As its electronics industry develops,
demand for high-purity aluminum ingots in China is increasing, andthe industry’s increasing structural sophistication is expected to growthis market in the future. Our Group is committed to capturing demandby rolling out our technologies for producing high-purity products toestablish supremacy in terms of both quality and cost.

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(Millionsof Yen)Consolidated Operating Profit

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

(Millionsof Yen)80,0006,000

60,0004,500

40,0003,000

20,000

1,500

0

’11

’12

’13

’14

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

0

’11

’12

’13

’14

Note : Operating results for the year ended March 31, 2011 and the year ended March 31, 2012 are for NLM.

● Overview of results for fiscal 2013

In the Aluminum Sheet Segment, although shipments of foil stock
for capacitors slumped, and shipments of electrical machinery andelectronics-related fields remained sluggish, demand for thick plates forsemiconductor and LCD manufacturing equipment recovered from thelatter half of the year, and transport-related shipments were also strong,
mainly for van and truck outfitting and railway cars, resulting in an
increase in sales volume. Additionally, the price of Aluminum Ingots,
which is an indicator in terms of price, rose year on year, leading to sales
levels exceeding those of the previous year.
In terms of profits, although rising fuel prices exerted downward
pressure on profits, increased sales improved plant operation rates, and the
proportion of sales of high value added products also grew. These and otherfactors resulted in improving the profits compared with the previous year.
In the Aluminum Extrusions segment, although shipments in electricalmachinery and electronics-related fields flagged, the transport-related
shipments, which form the mainstay of the segment, recovered in the latter
half of the year, especially for van and truck outfitting and automobilein which the adverse effect of worsening relationship between Japan and
China lessened. Sales also increased greatly in shipments for railway cars,
especially for the Hokuriku Shinkansen. The surge in demand aheadof the consumption tax hike has supported building materials-related
shipments overall, and in this situation, sales routes for solar panel racks
has been expanded smoothly and there was strong demand for industrial
equipment-related shipments for capital investment. These led to overall
segment sales levels exceeding those of the previous year, and profits also
improved from the previous year, thanks to strong shipments of railway

Applications

71,272
71,274

Millions of Yen

17.7%

Principal Products• Automobile• 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
cars and industrial equipment-related shipments.
As a result, Aluminum Sheet and Extrusion segment sales increased
12.8%, or ¥8,113 million, to ¥71,274 million (¥63,161 million for theprevious year). Operating profit increased 59.3%, or ¥993 million, to¥2,668 million (¥1,675 million for the previous year).
In November 2013, Nippon Light Metal Company, Ltd. completed its
investment in Huafon Nikkei Aluminum Co., Ltd., which was foundedin Shanghai jointly with a Chinese company and others, as the site for
manufacturing and sale of aluminum plates and other products forautomobile heat exchangers in China. Nippon Light Metal Company,
Ltd.’s stake in the company is now 33.4%. Based on establishment of thetrilateral structure of Japan, China, and Thailand, we will win shares of
the automobile heat exchangers market in China, while enhancing our
production capacity in Thailand through the supply of materials from
China, and strive to stabilize our supply of products and expand profits
in Chinese and Southeast Asian markets. Meanwhile, in Japan we will
specialize in manufacturing and sale of high value added products, andfunction as a center for R&D and human resource cultivation.
Also, in November 2013, Nippon Light Metal Company, Ltd. acquired
23.6% of the outstanding shares and took a stake in Toyo Rikagaku
Kenkyusho Co., Ltd., a general manufacturer of metal fabrication, inorder to boost the business in fabrication fields of aluminum sheet
segment. Through combination of knowledge of raw materials centeredon aluminum acquired by Nippon Light Metal Company, Ltd. and theadvanced fabrication technologies of Toyo Rikagaku Kenkyusho Co., Ltd.,we will meet increasingly diverse and specialized customer needs, andfurther increase the added value of products in the field of fabrication.
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(Millionsof Yen)Consolidated Operating Profit

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

(Millionsof Yen)160,000

8,000

120,000

6,000

80,0004,000

40,000

2,000

0

’11

’12

’13

’14

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

0

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

’11

’12

’13

’14

• Food and lifestyle132,261
Millions of Yen

32.8%

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

Note : Operating results for the year ended March 31, 2011 and the year ended March 31, 2012 are for NLM.

● Overview of results for fiscal 2013

In the Transport-Related segment, although a temporary slump
in sales in the truck outfitting business was seen during the first halfof the year due to the rebound effect after the end of the “Eco-car”
subsidy program, thanks to the replacement of vehicles purchased at
the time of tightening of emissions regulations, as well as earthquake
recovery demand, demand for trucks was maintained at a high level.
These resulted in sales levels exceeding those of the previous year.
Despite this growth, however, profits declined year on year due to theeffects of drop in plant operation rates at the beginning of the year,
the rise in material prices, and other factors.
In the area of capacitors for car air conditioners, sales of themainstay mini vehicles products were strong, and demand in products
for export vehicles increased due to yen depreciation, leading to sales
levels exceeding those of the previous year.
The Shaped Parts segment saw an increase in demand year on
year resulting from a recovery in the number of automobile units
manufactured in Japan. However, diversifying procurement sources ofcustomers caused sales to fall below the level of the previous year.
In the Electronic Materials segment, although there were signs thatthe long slump in demand for anodized aluminum foil for aluminumelectrolytic capacitors has ended and its demand is expected to growin such fields as renewable energy-related field in the future, therecovery is still on the way, and customers are increasingly shifting

14

their production to overseas, and sourcing materials locally. These
resulted in sales below those of the previous year.
In the Panel System segment, the number of convenience storescontinued to grow as did in the previous year, and the shipments
of industrial refrigerators and freezers were strong not only forstores, but also for related plants that process food products and low
temperature distribution warehouses. With regard to clean rooms as
well, although demand declined, particularly in the medical and bio
fields, sales for semiconductors and precision equipment remained
steady from the previous year. As a result, overall segment sales wereon par with the high levels of the previous year.
In the Carbon Product segment, demand fell in both the Japaneseand overseas markets, and sales were stagnant for the sector’smajor products, carbon blocks and cathodes for blast furnaces andelectric furnaces for steel and aluminum smelters, as well as forunshaped materials for electrodes which was strong in the previous
year. However, the yen depreciation increased the sales prices fortransactions made in foreign currencies, and maintained sales
equivalent to the levels of the previous fiscal year.
As a result, sales in the Fabricated Products and Others segment
increased 4.8%, or ¥6,043 million, to ¥132,261 million (¥126,218
million for the previous year). Operating profit increased 3.6%, or¥250 million, to ¥7,224 million (¥6,974 million for the previousyear).

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(Millionsof Yen)Consolidated Operating Profit

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

(Millionsof Yen)120,000

12,00090,0008,000

60,0004,000

30,000

0

0

’11

’12

’13

’14

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

-4,000

’11

’12

’13

Applications• Food and lifestyle• Electronics• Automobile• Environmental / Energy

23.3%

93,806

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’14Note : Operating results for the year ended March 31, 2011 and the year ended March 31, 2012 are for NLM.

● Overview of results for fiscal 2013

In the Aluminum Foil segment, shipments of high-purity
aluminum foil for electrolytic capacitors remained sluggish overall,
despite the fact that sales contracts of some new products has shifted
into high gear, and signs that overall demand has hit the bottom.
Meanwhile, although sales of standard foil for daily necessities
slumped, sales increased for such high value added products as
fabricated foil for pharmaceutical packaging and water-shedding
packaging for food products. Shipments of plain foil for lithium ion
battery surfaces also recovered.
In the Powder and Paste segment, demand for silver and othermetallic colors continued to shrink in the Japanese market,

Aluminum Foil

resulting in a decline in shipments of mainstay aluminum paste
for use in automobile paint, and for use in home appliance andplastic paints. However, sales remained robust in shipments forinks used for food and beverage containers. Exports fell especiallyin shipments for automobiles, due to reduced automobile units
manufactured in Thailand and South Korea owing to such factors
as the expiration of tax incentives, inventory adjustments, andother factors.
In the Solar segment, the solar power market in China and Japangrew due to factors such as the construction of mega-solars, and the
production volume of solar panels is heading toward recovery. On theother hand, competition over winning sales contracts remains fierce,
and although we worked to improve our cost competitiveness throughinitiatives including moving our production sites to China and raisinglocal supply rate of raw materials, sales volume remained flat fromthe levels of the previous year as we responded to deteriorating credit
among users in China. Additionally, demand for back sheets for solar
cells has shifted toward the low-price range, resulting in a decline insales compared to the previous year.
As a result, sales in the Aluminum Foil, Powder and Paste segment
increased 5.9%, or ¥5,200 million, to ¥93,806 million (¥88,606
million for the previous year). Operating profit and loss increased by¥3,660 million to a profit of ¥2,889 million (¥771 million in loss forthe previous 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.
100,000(Millions of yen)
16

60,00012

40,0008

20,000

4

2009
2010
2011
Gross Profit
Gross Profit Margin

2012

2013

2014

0

Years ended March 31

Millions of yen

Interest-bearing Debt
Nippon Light Metal Holdings Company, Ltd.
240,000

Nippon Light Metal Company, Ltd.

200,000

160,000

120,000

80,00040,000

0

2009

2010

2011

2012

2013

2014

Years ended March 31

Millions of yen

Free Cash Flows
Nippon Light Metal Holdings Company, Ltd.
30,000

Nippon Light Metal Company, Ltd.

25,00020,00015,00010,0005,000

0-5,0002009

Millions of yen

16

2010

20

80,0000

2009%

Nippon Light Metal Company, Ltd.

2010

2011

2012

2013

2014

Years ended March 31

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.............................................................................

¥554,094
76,72013.8(11,892)(16,936)(31,442)¥460,681
81,885
17.8
7,673
2,682
2,084

120,725
66,766
226,543
140,060—
554,094

88,141
58,399106,060
115,680
92,401
460,681748(5,737)3,976(7,870)—(3,009)(11,892)

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

257,386
176,231
5,005
39,949264,386
125,404
85,170(1,255)
4,866
231,686

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

26,674
22,113(22,086)
24,997
6,422

26,38820,717(15,792)
14,197(8,880)¥(57.77)—
154.22—¥3.83
3.63
163.13—(4.1)(30.6)
17.5

2.2
2.4
18.5

545,126
5,972
13,678545,126
5,085
12,854Note 1: U.S. dollar amounts have been translated, for convenience only, at the exchange rate of ¥102.92 =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: Effective the year ended March 31, 2007, the Company adopted the new accounting standard“Accounting Standard for Presentation of Net Assets in the Balance Sheet”.
Note 4: Numbers used for the year ended March 2010 have been revised according to the current segmentcategories.

Nippon Light Metal Holdings Company, Ltd.

Nippon Light Metal Company, Ltd.
2011

2012

2013

2014

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

2014
(Thousands of
U.S. dollars)(Note 1)

(Millions of yen)

¥429,433
78,16618.2
24,724
18,52911,040¥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$3,914,001
670,453
17.1
122,591
123,688
49,825

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

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

1,024,951
692,518
1,285,086—
911,446
3,914,001

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

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)
12,61728,34225,92370,190—28,071(29,935)
122,591

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

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

2,203,721
1,466,197
48,795483,949
1,763,700
1,261,407
1,027,856
44,977
104,722
1,930,315

26,47915,831964
15,363(30,726)

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

176,331
159,687(184,591)
136,038
55,986

9

6

3

0

-3

-6

¥5.25—184.71
2.00¥6.17—193.333.00¥9.43—203.03
4.00

7.9
11.8
23.8

4.9
2.9
23.8

3.7
3.3
25.0

5.9
4.8
25.5

545,126
4,798
9,739

545,126
4,902
10,041

545,126
5,063
10,392545,126
4,984
10,438$0.09
—
1.97
0.04

2009

2010

2011

2012

2013

2014

Years ended March 31%

Return on Equity (ROE)
Nippon Light Metal Holdings Company, Ltd.
20

Nippon Light Metal Company, Ltd.

10

0

-10

-20

-30

-40

2009

2010

2011

2012

2013

2014

Years ended March 31%

R&D Expenditures
Nippon Light Metal Holdings Company, Ltd.
7,000

¥20.29—181.51
2.00

Nippon Light Metal Company, Ltd.

Nippon Light Metal Company, Ltd.

6,000

5,000

4,000

3,000

2,000

1,000

$48,42602009

Millions of yen

2010

2011

2012

2013

2014

Years ended March 31

17

Financial Review

Overview
The Japanese economy during fiscal 2013 (the year ended March
31, 2014) experienced a moderate recovery trend, as revenue
improved mainly at export companies amid recovering stock prices
and advancing yen depreciation, while personal consumption
remained firm thanks to the last minute demand prior to theconsumption tax hike.
Overall domestic aluminum product demand was up slightly
compared to the previous year. However, demand was uneven acrossfields, with increased shipments in fields such as automobiles andconstruction materials, while electrical and electronics-related fields
remained at low levels.
Given these circumstances, the Group has established a new MidTerm Management Plan (from fiscal 2013 to fiscal 2015), of which thefiscal year under review is the first year. The Group has strived tomaximize corporate value by setting the following three basic policies.
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
Specifically, in Mexico, where expansion by automobile
manufacturers in Europe, the U.S., and Japan has been flourishing, theGroup has established a new company engaged in the aluminum alloy
business jointly with a U.S. corporation. In addition, the Group has
established a joint venture with a local company in China, where
growing demand is anticipated for high-purity aluminum ingots
following development of the electronics industry in the country.

Net Sales By Segment

Overview of Consolidated Business Performance(Millions of yen)
Changes in
Comparison
Previous
Fiscal year
fiscal year (Decrease in brackets)
under review
Changes
The year ended The year ended
March 31, 2014 March 31, 2013 [Percent changes]

Net sales

402,829

371,887

30,942[8.3%]

Operating profit

12,617

8,154

4,463[54.7%]

Ordinary profit

12,7306,873

5,857[85.2%]

Net income

5,128

3,355

1,773[52.8%]

Net income per share (Yen)

9.43

6.17

3.26[52.8%]

Total Net Assets

Nippon Light Metal Holdings Company, Ltd.

500

Furthermore, in the Solar segment and Alumina segment where
improving revenue has been an issue, the Group implemented
measures to recover business results such as consolidating production
and sales of solar cell-related products at its Chinese subsidiary, andincreasing production of high value added products including highpurity aluminum for LED sapphire substrates. Meanwhile, in the
Aluminum Sheet segment, the Group invested in an aluminum sheet
rolling company in China; which, together with the Group’s aluminum
sheet rolling subsidiary in Thailand, established the Group’s sales andproduction network in the three sites of Japan, China, and Thailand.
With regard to business results for the fiscal year ended March 31,
2014, both revenue and profit increased as indicated below. This is due
to strong shipments of automobile-related products and panel systemproducts on the sales front, and, on the profit front, the absence of theloss on solar cell-related products recorded during the previous year, in
addition to the effects of increased revenue.

Nippon Light Metal Company, Ltd.

Equity Ratio

Nippon Light Metal Holdings Company, Ltd.

150

Nippon Light Metal Holdings Company, Ltd.

Nippon Light Metal Company, Ltd.

30

400

120

24

300

90

18

200

60

12

100

30

6

0

2010

Billions of yen

2011

2012

2013

2014

Years ended March 31

0

2010

Billions of yen

2011

2012

2013

0

2014

As of March 31%

Nippon Light Metal Company, Ltd.

2010

2011

2012

2013

2014

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

Earnings and Expenses
NLM Holdings’ consolidated net sales for the fiscal year under review
increased 8.3% year on year to ¥402.8 billion ($3,914 million). For
sales and other financial performance by business segment, please see
the Review of Operation in pages xx to xx.
The cost of sales was ¥333.8 billion ($3,244 million), while the costto sales ratio was 82.9%. Selling, general and administrative expenses
was ¥56.4 billion ($548 million). As a result, operating profit
increased 54.7% year on year to ¥12.6 billion ($123 million).
Non-operating income was ¥5.0 billion ($49 million). During the
fiscal year under review, equity in earnings of affiliates and dividend
income were recorded as income. Non-operating expenses were ¥4.9
billion ($48 million). As a result, ordinary profit increased 85.2% year
on year to ¥12.7 billion ($124 million).
For special gains, although a gain on sales of fixed assets of ¥6.3
billon ($67 million) was recorded in the previous year, no such gain
was recorded in the fiscal year under review. As for special losses, ¥3.7
billion was recorded in the previous year and ¥2.4 billion ($23
million) was recorded during the fiscal year under review. This was a
result of the absence of loss on impairment of fixed assets of bauxite
equipment recorded in the previous year and decrease inenvironmental expenses, despite recording loss on closing plant of¥10.0 billion ($10 million).
As a result, income before income taxes and minority interests of¥10.4 billion ($101 million) was recorded for the fiscal year underreview. Corporate, inhabitant and business taxes amounted to ¥3.5
billion ($34 million), and deferred income taxes during the fiscal
year under review were ¥0.4 billion ($4 million).
As a result of the above, net income in the fiscal year under review
increased 52.8% year on year to ¥5.1 billion ($50 million). The
average number of shares outstanding increased from 543,890
thousand shares in the previous year to 543,865 thousand shares in
the fiscal year under review. Therefore, net income per share increased
from ¥6.2 in the previous year to ¥9.4 ($0.09) in the fiscal year underreview. Payment of annual cash dividend of ¥4.0 ($0.04) per share, anincrease of ¥1.0 year on year, was approved by the resolution at theGeneral Meeting of Shareholders held on June 25, 2014.
Overview of Consolidated Balance Sheets(Millions of yen)March 31, 2014 March 31, 2013

Changes incomparison

Total assets

432,538

419,786

12,752

Total liabilities

311,344

305,162

6,182

Net assets

121,194

114,624

6,570

25.5

25.0

0.5

Equity ratio (%)

Assets, Liabilities and Shareholders’ Equity
Total assets as of March 31, 2014 decreased ¥12.8 billion year on yearto ¥432.5 billion ($4,203 million). Total liabilities increased ¥6.2
billion year on year to ¥311.3 billion ($3,025 million). Interestbearing debt increased ¥9.8 billion year on year to ¥198.7 billion.
Total net assets increased ¥6.6 billion year on year to ¥121.1 billion($1,178 million), thanks primarily to an increase in retained
earnings due to the recording of net income in the fiscal year underreview. Net assets per share as of March 31, 2014 increased ¥9.7 year
on year to ¥203.03 ($1.97), while the equity ratio improved 0.5
percentage point year on year to 25.5%.
Cash Flows
Cash and cash equivalents on a consolidated basis as of March 31, 2014
increased ¥5.6 billion year on year to ¥41.6 billion ($404 million).
Net cash provided by operating activities was ¥18.1 billion ($176
million). This was primarily due to items such as income before income
taxes and minority interests, and depreciation and amortization.
In the fiscal year under review, ¥19.0 billion ($186 million) net cash
was used in investing activities. This was primarily due to payments forpurchases of fixed assets. Net cash provided by financing activities was¥5.8 billion ($56 million). In the fiscal year under review, ¥15.0 billion
was financed through an issuance of convertible bond-type bonds with
subscription rights to shares.
Outlook for Fiscal 2014
With regard to the Japanese economy for fiscal 2014, despite the riskof an economic downturn due to factors including the impact of theconsumption tax rate hike and financial instability in China andother emerging nations, there is rising expectation of an economic
recovery due to the pickup in exports associated with yen
depreciation, and improvement in the employment and income
environment.
Furthermore, with regard to demand for aluminum products,
exports are expected to see a recovery backed by the weaker yen.
Based on the three-year Mid-Term Management Plan started in
the year ended March 31, 2014, the Group has taken the transition
to a holding company as an opportunity to strengthen collaboration
within the Group and to boost the profitability of overseas sites. For
the year ending March 31, 2015, we expect net sales of ¥410.0
billion, operating profit of ¥17.0 billion, ordinary profit of ¥15.0
billion, and net income of ¥10.0 billion. Net income per share ispredicted to be ¥18.39, while cash dividends per share are predicted
to be ¥4.0.

19

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

2013

March 31,
2014

2014

(Millions of yen)(Thousands of
U.S. dollars) (Note 2)

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 ¥36,027 ¥41,654
114,906
119,503
22,11421,501
15,202
14,756
17,516
15,469
4,312
4,507
8,884
10,505(1,313)(1,088)217,648
226,807$404,722
1,161,125
208,910
143,373
150,301
43,791102,070(10,571)
2,203,721

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 54,61054,698126,061
127,607
254,487259,352
28,33329,2193,934
4,096(314,187) (324,071)
153,238
150,901

531,461
1,239,866
2,519,938
283,900
39,798(3,148,766)
1,466,197

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

1,944
4,394
6,338

1,262
3,760
5,022

12,26236,533
48,795Investments 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 

26,36911,3855,262(454)
42,562

34,46010,602
5,222(476)
49,808334,823
103,01250,738(4,624)
483,949¥419,786 ¥432,538$4,202,662

Total assets 

20

2013

March 31,
2014

(Millions of yen)

2014
(Thousands of
U.S. dollars) (Note 2)

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 ¥64,689
25,251
62,266
1,802
28,165
182,173¥62,217
29,434
63,2792,287
24,303
181,520$604,518
285,989
614,837
22,221
236,135
1,763,700

Long-term liabilities:
Long-term debt (Notes 6 and 7) Liabilities for retirement benefits (Note 9) Accrued pension and severance costs (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 103,943—
16,981452
1,613
122,989
305,162

110,968
17,130—452
1,274
129,824
311,344

1,078,197
166,440—
4,392
12,378
1,261,407
3,025,107

39,085
11,17952,137(104)
102,297

39,085
11,17955,633(110)
105,787379,761
108,618
540,546(1,069)1,027,856

1,504
(23)
145
1,225
—
2,851
9,476
114,624

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

23,309(97)
1,409
28,935(8,579)44,977
104,722
1,177,555¥419,786¥432,538$4,202,662

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 (1,247,069 shares in 2013 and 1,285,818 shares in 2014) 
Total shareholders’ equity Accumulated other comprehensive income:Net unrealized gains on securities (Note 5) Net unrealized gains 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,
2014

2013

(Thousands of
U.S. dollars) (Note 2)(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 Technical support fee 
Other Total non-operating income Non-operating expenses:
Interest expense 
Other Total non-operating expenses 
Ordinary profit Special gains:
Gain on sales of fixed assets 
Total special gains Special losses:
Loss on closing plant (Note 16) 
Environmental expenses 
Loss on disposal of fixed assets (Note 17) 
Loss on impairment of fixed assets 
Loss on corrective measures for product defects 
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 income Cash dividends 
The accompanying notes are an integral part of these financial statements.

22

2014

¥371,887
309,172
62,71554,561
8,154¥402,829
333,826
69,00356,386
12,617$3,914,001
3,243,548
670,453
547,862
122,591

69
257
489
861
730
446
1,170
4,022

72
753
1,574
691
628
236
1,049
5,003

700
7,316
15,293
6,714
6,102
2,293
10,192
48,610

2,881
2,422
5,303
6,873

2,725
2,165
4,890
12,73026,477
21,03647,513
123,688

6,274
6,274

—
—

—
—

—
2,060
—
1,319
326
3,705
9,442

996
744
612
—
—
2,352
10,378

9,677
7,229
5,946
—
—
22,852
100,836

2,642
2,368
5,010
4,432
1,077
¥3,355

3,484
406
3,890
6,488
1,360
¥5,128

33,852
3,945
37,79763,03913,214$49,825(Yen)¥6.17
3.00(U.S. dollars)(Note 2)

¥9.434.00$0.090.04

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

March 31,
2014

2013

2014
(Thousands of
U.S. dollars) (Note 2)(Millions of yen)

¥4,432¥6,488$63,039

Net unrealized gains on securities 

350

876

8,511

Net unrealized losses on hedges 

(26)

13

126

Foreign currency translation adjustments 

1,899

1,223

11,884Equity of other comprehensive income of affiliates 

572

892

8,667

Total other comprehensive income (Note 8) 

2,795

3,004

29,188¥7,227¥9,492$92,227

Shareholders of the parent ¥5,772¥7,789$75,680

Minority interests 

1,455

1,703

16,547¥7,227¥9,492$92,227

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

2013
Shareholders’ equity

Balance at April 1,2012 
Net income Cash dividends 
Disposal of treasury stock 
Net increase in treasury stock 
Net unrealized gains on
securities (Note 4) Net unrealized losses on hedges 
Foreign currency translation
adjustments 
Remeasurements of defined benefits plans 
Net increase in minority interests
in consolidated subsidiaries 
Balance at March 31, 2013 

Commonstock

Additional
paid-in
capital¥39,085¥11,179

Retainedearnings¥49,968
3,355(1,088)(98)

Treasurystock,
at cost¥(199)

Accumulated other comprehensive income
Minority
Net
Net
Foreignunrealized unrealized Revaluation currency Remeasurements interests inconsolidated
Total net
gains ongains onsurplustranslationof defined
assetssecurities
hedges(Note 11) adjustments benefits plans subsidiaries(Millions of yen)

¥1,092¥3¥145¥(806)¥—¥8,38298(3)412¥108,849
3,355(1,088)
—
(3)
412
(26)

(26)

2,031
—
¥39,085¥11,179¥52,137¥(104)¥1,504

¥(23)

¥145

¥1,225¥—

1,094¥9,476

1,094¥114,624

2014
Shareholders’ equity

Balance at April 1,2012 
Net income Cash dividends 
Disposal of treasury stock 
Net increase in treasury stock 
Net unrealized gains on
securities (Note 4) Net unrealized losses on hedges 
Foreign currency translation
adjustments 
Remeasurements of defined benefits plans 
Net increase in minority interests
in consolidated subsidiaries 
Balance at March 31, 2013 

Commonstock

Additional
paid-in
capital¥39,085¥11,179

Retainedearnings¥52,137
5,128(1,632)

Treasurystock,
at cost¥(104)

Accumulated other comprehensive income
Minority
Net
Net
Foreignunrealized unrealized Revaluation currency Remeasurements interests inconsolidated
Total net
gains ongains onsurplustranslationof defined
assetssecurities
hedges(Note 11) adjustments benefits plans subsidiaries(Millions of yen)

¥1,504

¥(23)

¥145

¥1,225¥ —¥9,476

(6)
895

895
13

13
1,753

¥39,085¥11,179¥55,633¥(110)¥2,399¥(10)¥114,624
5,128(1,632)
—
(3)

¥145

¥2,978

1,753
(883)

(883)
¥(883)

1,302¥10,778

1,302¥121,194

2014
Shareholders’ equity

Balance at April 1,2012 
Net income Cash dividends 
Disposal of treasury stock 
Net increase in treasury stock 
Net unrealized gains on
securities (Note 4) Net unrealized losses on hedges 
Foreign currency translation
adjustments 
Remeasurements of defined benefits plans 
Net increase in minority interests
in consolidated subsidiaries 
Balance at March 31, 2013 

Commonstock

Additional
paid-in
capital$379,761$108,618

Retainedearnings$506,578
49,825(15,857)$(1,010)$14,613$(223)$1,409$11,902

$ –

(59)
8,696

$379,761$108,618$540,546$(1,069)$23,309$ (97)$92,072 $1,113,720
49,825(15,857)
—
(59)
8,696
126

126
17,033

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

24

Treasurystock,
at costAccumulated other comprehensive income
Minority
Net
Net
Foreignunrealized unrealized Revaluation currency Remeasurements interests in
Total
gains ongains onsurplustranslationof defined consolidated
securities
hedges(Note 11) adjustments benefits plans subsidiaries net assets(Thousands of U.S. dollars) (Note 2)$1,409$28,935(8,579)17,033(8,579)12,65012,650$(8,579) $104,722 $1,177,555

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

2013

March 31,
2014

(Millions of yen)

Cash flows from operating activities
Income before income taxes and minority interests 
Depreciation and amortization 
Loss on closing plant 
Loss on disposal of fixed assets 
Loss on impairment of fixed assets Gain on sales of fixed assets 
Increase (decrease) in allowance for doubtful accounts 
Decrease in accrued pension and severance costs 
Decrease in liability for retirement benefit Interest and dividend income Interest expense 
Equity in earnings of affiliates 
Decrease (increase) in notes and accounts receivable – trade 
Decrease in inventories 
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 sales of investment securities Payments of loans receivable Collection of loans receivable 
Purchase of subsidiaries’ share resulting in change in scope of consolidation 
Other Net cash used in investing activities 
Cash flows from financing activities 
Net decrease in short-term borrowings Proceeds from long-term debt 
Repayments of long-term debt Proceeds from issuance of bonds 
Redemption of bonds Proceeds from sale and lease-back transactions 
Cash dividends paid 
Cash dividends paid to minority interests 
Other Net cash (used in) provided by financing activities 
Effect of exchange rate changes on cash and cash equivalents Net (decrease) increase in cash and cash equivalents Cash and cash equivalents at beginning of the year 
Cash and cash equivalents at end of the year (Note 4) 
The accompanying notes are an integral part of these financial statements.

2014(Thousands of
U.S. dollars) (Note 2)¥9,442
16,259——1,319(6,274)
11
(622)
—
(326)
2,881
(489)
6,603
3,612
(9,357)320
23,379567(2,903)(3,013)18,030¥10,378
16,435
996
612
—
—
(169)
—
(744)
(825)
2,725
(1,574)(4,264)
3,571(132)(3,843)23,166
1,037(2,733)(3,322)
18,148$100,836
159,687
9,677
5,946
—
—
(1,642)—(7,229)(8,016)
26,477(15,293)(41,430)
34,697(1,283)(37,340)
225,087
10,076(26,555)(32,277)
176,331(70)
119(18,297)
6,426
(572)
74
(39)
34
90
(1,790)(14,025)(51)
59(13,972)
138(4,558)
45
(224)
31
—
(466)
(18,998)(496)
573(135,756)
1,341(44,287)437(2,176)301—(4,528)(184,591)(3,364)24,356(23,953)—(1,128)1,569(1,085)(280)(1,290)(5,175)678(492)
36,454¥35,962(3,063)
21,435(23,984)
15,000(173)—(1,622)(460)(1,371)
5,762
723
5,635
35,962¥41,597(29,761)
208,269(233,035)
145,744(1,681)—(15,760)(4,469)(13,321)55,986
7,025
54,751
349,417$404,16825

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.

26

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.
(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.

27

Notes To 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.
(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.

28

2. Accounting Change
Effective March 31, 2014, the Company and its consolidated subsidiaries adopted the accounting standard, Accounting Standards Board of Japan(ASBJ) Statement No. 26 “Accounting Standard for Retirement Benefits” and its application guidance, ASBJ Guidance No. 25 “Guidance on
Accounting Standard for Retirement Benefits”. By adopting the standard and guidance, the Company has changed its method and recognized theretirement benefit obligation less the pension plans as liability for retirement benefits and recorded unrecognized actuarial gain or loss andunrecognized past service cost.
The effects of this change for the year ended March 31, 2014, were to recognize liability for retirement benefits of ¥17,130 million ($166,440
thousand), decrease accumulated other comprehensive income by ¥883 million ($8,579 thousand), and increase minority interests inconsolidated subsidiaries by ¥42 million ($408 thousand).
3. U.S. Dollar Amounts
The rate of ¥102.92 = U.S.$1, the approximate exchange rate prevailing at March 31, 2014, 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, 2013 and 2014 is summarized as follows:
2013

2014

2014
(Thousands of
U.S. dollars)(Millions of yen)

Cash and deposits Time deposits with maturities in excess of 3 months 
Cash and cash equivalents ¥36,027(65)¥35,962¥41,654(57)¥41,597$404,722(554)$404,168

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, 2013 and 2014 was as follows:
2013

2014

2014
(Thousands of
U.S. dollars)(Millions of yen)

Cost 
Unrealized gains 
Unrealized losses 
Carrying amount ¥2,992
2,182(133)¥5,041¥2,823
3,413(83)¥6,153$27,429
33,162(806)$59,785(b) Sales of available-for-sale securities
The realized gains on sales of available-for-sale securities for the years ended March 31, 2013 and 2014 was as follows:
2013

2014

2014
(Thousands of
U.S. dollars)(Millions of yen)

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

¥74
9
15

¥45
35
5

$437
340
49

29

Notes To Consolidated Financial Statements

6. Short-Term Borrowings and Long-Term Debt
Short-term borrowings at March 31, 2014 bore interest at annual rates ranging from 0.01% 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, 2013 and 2014 comprised the following:
2013

2014

2014
(Thousands of
U.S. dollars)(Millions of yen)

Loans, principally from banks and insurance companies due from 2014 to 2072 withinterest rates ranging from 0.40% to 6.22%:
Secured 
Unsecured Loans, principally from banks and insurance companies due from 2015 to 2072 withinterest rates ranging from 0.41% to 6.22%:
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 Unsecured 1.04% bonds due November 29, 2013, redeemable before due date Unsecured 1.14% bonds due November 28, 2013, redeemable before due date Capital lease obligations due from 2014 to 2029 with interest rates ranging from 1.45% to 7.93% 
Less: portion due within one year 
Total long-term debt ¥10,901
107,317

¥

—
—

—
—
—
3,200
2,000
564
93
80
5,039
129,194(25,251)¥103,943¥8,691
106,942
15,000
3,200
2,000
618
—
—
3,951
140,402(29,434)¥110,968(*1) The details of the convertible bonds due December 10, 2018 are summarized as follows:
Stock type to be issued:
Common stock
None
Issue price per stock acquisition right:
Initial exercise price:¥200 per share¥15,000 million
Total issue price:
Exercisable period of stock acquisition rights: From December 23, 2013 to November 26, 2018

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

Property, plant and equipment 
Investment securities 
Other intangible assets (Millions of yen)(Thousands of
U.S. dollars)¥ 46,133
67385$ 448,241
651
3,741

The aggregate annual maturities of long-term debt outstanding at March 31, 2014 are summarized as follows:
Years ending March 31,

2015 
2016 
2017 
2018 
2019 
Thereafter 

30(Millions of yen)(Thousands of
U.S. dollars)¥ 29,434
24,68622,23518,06032,643
13,344¥140,402$ 285,989
239,856
216,042
175,476
317,169
129,654$1,364,186

$

—
—

$84,444
1,039,078
145,744
31,092
19,433
6,005——
38,3901,364,186(285,989)$1,078,197

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
The carrying value of financial instruments on the consolidated balance sheets as of March 31, 2013 and 2014 and estimated fair value is as follows:
2013
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 ¥36,027
114,906¥36,027
114,906

¥—
—

3,681
5,041
(62,266)(64,689)(5,937)(118,218)
(32)

1,324
5,041
(62,266)(64,689)(5,953)(119,134)(32)(2,357)
—
—
—
(16)
(916)
—

*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

The carrying value of financial instruments on the consolidated balance sheets as of March 31, 2013 and 2014 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)
—

2014
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 $404,722
1,161,125$404,722
1,161,125$——40,28459,784(614,837)(604,518)(202,274)(1,123,523)(282)

15,29359,784(614,837)(604,518)(195,132)(1,126,661)(282)(24,990)
—
—
—
7,141
(3,138)—*1 Liabilities are shown in parenthesis.
*2 The current portion of long-term borrowings is included in long-term borrowings.
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 ($234,755 thousand) as of March 31, 2014 is not included in “(3) Investment securities” because no quoted
market prices are available and it is extremely difficult to measure the fair value.
32

3. The redemption schedule for receivables and marketable securities with maturities at March 31, 2013 and 2014 is as follows:2013
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 ¥35,976
114,906

¥—
—

¥—
—

¥—
—

2
—
¥150,884

7
10
¥17

6
—
¥6

—
—
¥—

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

—
—
¥—

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(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 $404,401
1,161,125

$—
—

$—
—

$—
—

19
—
$1,565,545

68
97
$165

39
—
$ 39

—
—
$—

4. The redemption schedule for bonds and long-term borrowings at March 31, 2013 and 2014 is as follows:2013
Due within
one year

Due after one year but
within five years

Due after
five years(Millions of yen)

Bonds Long-term borrowings ¥173
23,801¥23,974¥2,564
79,183¥81,747¥3,200
15,234¥18,434

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
33

Notes To Consolidated Financial Statements

2014
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 $19,433
256,354$275,787$151,749
775,496$927,245$31,092
91,673$122,765

8. Other Comprehensive Income
Each component of other comprehensive income for the year ended March 31, 2014 was as follows:
2014(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 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 Equity of other comprehensive income of affiliates:
Amount arising during the year 
Total other comprehensive income ¥1,335
2
1,337
(461)
876

$12,972
19
12,991(4,480)
8,511

(3)
20
17
(4)
13

(29)
194
165
(39)
126

1,223

11,884892¥3,004

8,667$29,188

8. Retirement Benefit Plans
For the year ended March 31, 2014
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 year ended March 31, 2014 are as follows:
2014(Millions of yen)

Retirement benefit obligation at April 1, 2014 Service cost Interest cost 
Actuarial gain or loss Retirement benefits paid Retirement benefit obligation at March 31, 2014 

34¥31,294
1,451
445
(48)
(1,751)¥31,391(Thousands of
U.S. dollars)$304,061
14,0984,324(466)(17,013)$305,004

The changes in plan assets during the year ended March 31, 2014 are as follows:
2014(Thousands of
U.S. dollars)(Millions of yen)

Plan assets at April 1, 2014 
Expected return on plan assets 
Actuarial gain or loss 
Employer contributions Retirement benefits paid 
Others 
Fair value of plan assets at March 31, 2014 ¥18,323
254
1,124
1,952
(1,151)
44¥20,546$178,031
2,468
10,921
18,966(11,183)428$199,631

The changes in liability for retirement benefits on the simplified method during the year ended March 31, 2014 are as follows:
2014(Thousands of
U.S. dollars)(Millions of yen)

Liability for retirement benefits at April 1, 2014 
Retirement benefit expenses 
Retirement benefits paid Contributions for the plans Liability for retirement benefits at March 31, 2014 

¥6,532
694
(469)
(472)
¥6,285$63,467
6,743(4,557)(4,586)$61,067

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 for the defined benefit plans:2014(Thousands of
U.S. dollars)(Millions of yen)

Unfunded retirement benefit obligation 
Net liability for retirement benefits in the consolidated balance sheets ¥38,339(23,259)
15,0802,050
17,130$ 372,513(225,991)
146,522
19,918
166,440

Liability for retirement benefits 
Net liability for retirement benefits in the consolidated balance sheets 

17,130¥17,130

166,440$ 166,440

Funded retirement benefit obligation 
Fair value of plan assets 

The components of retirement benefit expenses for the year ended March 31, 2014 are as follows:
2014(Thousands of
U.S. dollars)(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$14,098
4,324(2,468)
5,053
(389)
6,743
$27,361

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

Unrecognized prior service cost 
Unrecognized actuarial gain or loss 
Total ¥(330)
1,203¥873(Thousands of
U.S. dollars)$(3,206)
11,689$8,48335

Notes To Consolidated Financial Statements

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

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

General account 
Domestic bonds 
Domestic stocks Foreign stocks Foreign bonds 
Others 
Total The total fair value of plan assets includes 4% of the retirement benefit trust set to the corporate pension plan.
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:
Discount rate 
1.5%
Expected rate of return on plan assets 
1.5%
Required contribution of the consolidated subsidiaries for the defined contribution pension plans as of March 31, 2014 as follows:
2014

Required contribution (Millions of yen)(Thousands of
U.S. dollars)

¥2

$19

The Company and its domestic consolidated subsidiaries have defined benefit corporate pension plans and a non-contributory plan covering
substantially all employees in Japan. Additional benefits may be granted to employees according to the conditions under which termination of
employment occurs. Some consolidated subsidiaries use the simplified method for calculation of projected benefit obligation. Certain foreignsubsidiaries have defined contribution pension plans.
Accrued pension and severance costs at March 31, 2013 are summarized as follows:
2013(Millions of yen)¥(38,311)
18,808(19,503)
2,892
(370)
¥(16,981)

Projected benefit obligation 
Fair value of plan assets 
Unrecognized actuarial loss 
Unrecognized prior service cost 
Accrued pension and severance cost 
The net pension and severance costs related to retirement benefits for the year ended March 31, 2013 are summarized as follows:

2013(Millions of yen)

¥2,142
513
(237)
557
(42)
¥2,933Service cost Interest cost Expected return on plan assets 
Amortization of unrecognized actuarial gain 
Amortization of prior service costs 
Net pension and severance costs 
Assumptions used in calculating the above information are summarized as follows:
2013

Discount rate Expected rate of return on plan assets 
Method of attributing projected benefits to periods of employee service 
Period of amortization of prior service costs 
Period of amortization of unrecognized actuarial gain 
36

Mainly 1.5%
Mainly 2.0%
Straight-line basis
Mainly 15 years
Mainly 12 years10. Income Taxes
Significant components of deferred tax assets and liabilities at March 31, 2013 and 2014 were as follows:
2013

2014

2014
(Thousands of
U.S. dollars)(Millions of yen)

Deferred tax assets:
Tax loss carry forwards 
Accrued pension and severance costs 
Net defined benefit liabilities 
Unrealized intercompany loss Allowance for doubtful accounts 
Accrued bonuses 
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 ¥20,062
5,934
—
3,254
1,893
1,833
931
9,076
42,983(23,758)
19,225¥19,614
—
5,943
3,254
1,840
1,812
918
9,377
42,758(23,942)
18,816$190,575—
57,744
31,617
17,87817,606
8,920
91,109415,499(232,627)
182,822(485)(1,134)(1,061)(842)(583)(4,105)¥15,120(1,187)(1,134)(1,061)(390)(417)(4,189)¥14,627(11,533)(11,018)(10,309)(3,789)(4,052)(40,702)$142,120

Deferred tax assets and liabilities that comprise net deferred tax assets are included in the accompanying consolidated balance sheets as follows:
2013

2014

2014
(Thousands of
U.S. dollars)(Millions of yen)

Deferred tax assets (current assets) Deferred tax assets (investments and other assets) 
Other long-term liabilities ¥4,312
11,385(577)¥4,507
10,602(482)$43,791
103,012(4,683)

In addition to the above, the Company recorded deferred tax liabilities on land revaluation surplus of ¥452 million and ¥452 million ($4,392
thousand) at March 31, 2013 and 2014 separately.
A reconciliation of the differences between the statutory income tax rate and the effective income tax rate for the year ended March 31, 2013
was summarized as follows:
2013

Statutory income tax rate Increase (decrease) in taxes resulting from:
Valuation allowance Amortization of goodwill 
Permanent non-deductible expenses 
Inhabitant taxes per capita 
Effect of unrealized profit 
Unrealized intercompany profit and loss 
Equity in earnings of affiliates 
Non-taxable dividend income Other Effective income tax rate 

38.0%

2014

—

56.0
3.4
2.2
1.6
(28.9)(13.9)
(2.0)
(1.0)
(2.3)
53.1%
37

Notes To Consolidated Financial Statements

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.
The “Act for Partial Amendment of the Income Tax Act, etc.”(ACT No. 10 of 2014) was promulgated on March 31, 2014 and, as a result, theCompany is no longer subject to the Special Reconstruction Corporation Tax effective for fiscal years beginning on or after April 1, 2014. In
addition, the “ACT for Partial Amendment of the Local Tax Act, etc.”(Act No. 11 of 2014) were promulgated on March 31, 2014, and the Company
is subject to the amended Local Corporate Tax effective for fiscal years beginning on or after April 1, 2015.
As a result, the statutory income tax rate used to measure the Company’s deferred tax assets and liabilities was changed from 38.0% to 35.6%
for the temporary difference expected to be realized or settled from fiscal years beginning April 1, 2014. The effect of this reduction is immaterial.
11. Appropriations of Retained Earnings
The following appropriation was approved at the ordinary general meeting of shareholders of the Company held on June 25, 2014:(Millions of yen)(Thousands of U.S. dollars)¥2,176

Cash dividends $21,143

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. Derivatives
In 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, 2013 and 2014 was \301 million and \227($2,206 thousand), respectively which is included in cost of sales.
Selling, general and administrative expenses
2013

2014

(Millions of yen)

Freight charges Salaries, allowances and bonuses ¥10,131
15,797

2014(Thousands of
U.S. dollars)¥11,142
16,412$108,259
159,464

Research and Development
Research and development costs charged to cost of sales and selling, general and administrative expenses for the years ended March 31, 2013 and2014 was ¥5,063 million and ¥4,984 ($48,426 thousand), respectively.
Gain on sales of fixed assets
2013

2014

(Millions of yen)

Land 

¥6,274

2014(Thousands of
U.S. dollars)¥—$—

15. Contingent Liabilities
Contingent liabilities at March 31, 2014 amounted to ¥540 million ($5,247 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 ¥1,319 million ($14,024 thousand) of loss on impairment of fixed assets, of which thesignificant items for the year ended March 31, 2013 were as follows:
2013

Location
Higashiomi City,
Shiga Prefecture

Major use
Operating assets

Shizuoka City,
Shizuoka Prefecture

Operating assets

Asset category
Buildings and structures
Machinery and equipment
Machinery and equipment
Buildings and structures
Construction-in-progress
Tools, furniture and fixtures(Millions of yen)(Thousands of
U.S. dollars)¥677$7,198

3

32

¥177
175
49
0

$1,882
1,861
521
0The domestic consolidated subsidiaries recognized an impairment loss of ¥680 million ($7,230 thousand) for the operating assets in Higashiomi
City, Shiga Prefecture. The recoverable amount of the assets group is measured at net selling price and the net selling price is evaluated byestimated amount of disposal.
The domestic consolidated subsidiaries recognized an impairment loss of ¥401 million ($4,264 thousand) for the operating assets in Shizuoka
City, Shizuoka Prefecture and the carry amounts of the relevant assets were written down to the memorandum value. Because the assets werequiescent due to change to manufacturing process to product aluminum hydroxide and alumina from bauxite as main raw material frommanufacturing process to product alumina from aluminum hydroxide as main raw material.
The domestic 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.
The domestic consolidated subsidiaries recognized ¥412 million ($4,003 thousand) 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
Higashiomi City,
Shiga Prefecture

Major use
Operating assets

Shizuoka City,
Shizuoka Prefecture

Operating assets

Asset category
Buildings and structures
Machinery and equipment
Buildings and structures
Machinery and equipment
Tools, furniture and fixtures(Millions of yen)(Thousands of
U.S. dollars)¥165$1,603

108

1,049

¥132
7
0

$1,283
68
0

The domestic consolidated subsidiaries recognized an impairment loss of ¥273 million ($2,652 thousand) for the aluminum electrolytic businessin 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 ($1,351 thousand) 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 the plant 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.
17. Loss on Disposal of Fixed Assets
2013

2014

(Millions of yen)

Software 

¥—

2014
(Thousands of
U.S. dollars)¥612$5,94639

Notes To Consolidated Financial Statements

18. Net Income Per Share
Net income per share for the years ended March 31, 2013 and 2014 was summarized as follows:2013

Net income NetincomeWeighted average
number of shares

Net income
per share(Millions of yen)(Thousands of shares)(Yen)¥3,355543,889¥6.17

Net
incomeWeighted average
number of shares(Millions of yen)(Thousands of shares)

2014
Net income per share(Yen)¥5,128Net income ¥9.43
Basic net income 543,865
5,128—
23,219Effect of convertible bonds ¥9.04
Diluted net income ¥5,128567,084
Diluted net income was not presented because there were no bonds to be converted to shares for the year ended March 31, 2013.

(U.S. dollars)

$0.09
$0.09

19. Segment Information
The 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 primary and remelted ingot used for various industrial materials, andproduces a wide spectrum of alumina and alumina hydrates ranging from raw materials to basic materials for ceramic compounds. The“Aluminum sheet and extrusions” segment produces sheet, coil, and extrusion products consisting primarily of shapes, tubes and rods. The“Fabricated products and others” 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 to reportable segments.
Reportable segment information for the years ended March 31, 2013 and 2014 was as follows:
2013
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 ¥93,902¥63,161¥126,218¥88,606¥—¥371,887
35,678
17,841
8,772
648(62,939)—
Intersegment 
Total 129,580
81,002
134,990
89,254(62,939)
371,887¥3,273¥1,675¥6,974¥(771)¥(2,997)¥8,154
Operating profit ¥108,331¥75,412¥127,241¥106,968¥1,834¥419,786
Segment assets 
Depreciation and amortization ¥3,781¥3,905¥3,217¥5,255¥101¥16,259
Amortization of goodwill 
¥—
¥—
¥—
¥834
¥—
¥834
Loss on impairment of fixed assets 
¥406
¥680
¥140
¥93
¥—
¥1,319
Capital expenditures ¥3,955¥4,543¥3,159¥5,175¥289¥17,121(Note 1).Adjustments amounts are as follows.
1)Adjustments of ¥(2,997) million ($(31,867) thousands) in segment profit are general corporate expenses.
2)Adjustments of ¥1,834 million ($19,500 thousands) in segment assets include ¥(21,127) million ($(224,636) thousands) in theelimination of transactions between segments and ¥22,961 million ($244,136 thousands) in corporate assets.
3)Adjustments of ¥101 million ($1,074 thousands) in depreciation and amortization expenses have primarily to do with corporate assets.
4)Adjustments of ¥289 million ($3,073 thousands) for capital expenditures are the increase in corporate assets.
40

2014
The reportable segments
Aluminumingot andchemicals

Aluminum
sheet andextrusions

Fabricatedproducts
and others

Aluminum
foil, powder
and paste

Adjustment(Note 1)

Consolidated¥93,806
541
94,347¥2,889¥98,424¥4,818¥682¥—¥3,153¥—(69,042)(69,042)¥(3,081)
¥311
¥151
¥
—
¥
—
¥297

¥402,829—
402,829¥12,617¥432,538¥16,435
¥682
¥412
¥14,001

Aluminum
foil, powder
and paste

Adjustment(Note 1)

Consolidated(Millions of yen)

Net sales
Customers Intersegment 
Total Operating profit 
Segment assets 
Depreciation and amortization 
Amortization of goodwill 
Loss on impairment of fixed assets Capital expenditures ¥105,488
39,064
144,552¥2,917¥113,979¥4,156¥—¥412¥3,141¥71,274
19,27390,547¥2,668¥87,469¥4,014¥—¥—¥4,163¥132,261
10,164142,425¥7,224¥132,355¥3,296¥—¥—¥3,247
2014

The reportable segments
Aluminumingot andchemicals

Aluminum
sheet andextrusions

Fabricatedproducts andothers(Thousands of U.S. dollars)

Net sales
Customers $1,024,951$692,518 $1,285,086$911,446$— $3,914,001
379,557
187,262
98,756
5,257(670,832)—
Intersegment 
Total 1,404,508
879,780
1,383,842
916,703(670,832) 3,914,001$28,342$25,923 $70,190$28,071 $(29,935) $122,591
Operating profit $1,107,452$849,874 $1,285,999$956,315$3,022 $4,202,662
Segment assets 
Depreciation and amortization $40,381$39,001 $32,025$46,813$1,467 $159,687
Amortization of goodwill $—$— $—$6,627$— $6,627
Loss on impairment of fixed assets $4,003$— $—$—$— $4,003
Capital expenditures $30,519$40,449 $31,549$30,635$2,886 $136,038(Note 1).Adjustments amounts are as follows.
1)Adjustments of ¥(3,081) million ($(29,935) thousands) in segment profit are general corporate expenses.
2)Adjustments of ¥311 million ($3,022 thousands) in segment assets include ¥(32,023) million ($(311,145) thousands) in theelimination of transactions between segments and ¥32,334 million ($314,167 thousands) in corporate assets.
3)Adjustments of ¥151 million ($1,467 thousands) in depreciation and amortization expenses have primarily to do with corporate assets.
4)Adjustments of ¥297 million ($2,886 thousands) for capital expenditures are the increase in corporate assets.
Geographical sales for the years ended March 31, 2013 and 2014 was summarized as follows:
2013
Japan

Other

2014
Total

Japan

(Millions of yen)¥309,449¥62,438

2014

Other

Total

Japan

(Millions of yen)

¥371,887¥335,035¥67,794

Other

Total

(Thousands of U.S. dollars)¥402,829$3,255,295$658,706$3,914,001

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

Other
(Millions of yen)

2014
Total

Japan

Other

Total

(Thousands of U.S. dollars)¥135,067¥15,834¥150,901$1,312,349 $153,848 $1,466,197
As more than 90% of property, plant and equipment at March 31, 2013 was in Japan, the disclosureof geographical property, plant and equipment information has been omitted.
41

Report Of Independent Auditors

42

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: 33-5-59-983-535
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: 66-38-5716-70
Aluminum alloys(79%)

Nikkei Siam Aluminium
LimitedThailandPhone: 66-2-529-0136
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: 86-758-3602-080
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, 2014)43

Directors And Officers

Directors

Audit & Supervisory Board Member

President

Ichiro Okamoto

Tadashi Asahi
Nobuo Matsumoto
Toshio Yamagishi
Yuzuru Fujita*2
Katsuo Wajiki*2
Yasuo Yuki*2

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

Representative Director

Takashi Ishiyama
Directors

Makoto Fujioka
Toshihide Murakami
Yasunori Okamoto
Mikio Shimizu
President and Representative Director of Nikkeikin

Officers
Takashi Hara
Masamichi Ueda

Kakoh Kaihatsu Holdings Company, Ltd.

Hirokazu Takatoku

Masao Imasu
Hiroshi Yamamoto

Minoru Sotoike

President and CEO of Toyo Aluminium K.K.

Koji Ueno

Hideki Amimura
Takayuki Tsuchida

President and CEO of Nippon Fruehauf Co., Ltd.

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

Masato Ono*1
Ryoichi Hayashi*1*1 Outside Director

44(As of June 25, 2014)

Corporate Data

ProfileSince 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

The Master Trust Bank of Japan, Ltd.
(trust accounts)(4.5%)

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

Consolidated Financial Highlight

Shares of Common Stock
Authorized: 2,000,000,000
Issued: 545,126,049

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

2014

2013

2014
Thousands of
U.S. dollars

Millions of yen

For the year:
Net sales 
Operating profit 
Net income ¥371,887 ¥402,829 $3,914,001
8,154
12,617
122,591
3,355
5,128
49,825

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

432,538
121,194

4,202,662
1,177,555

193,883

202,619

1,968,704

Operating Profit

Nippon Light Metal Holdings Company, Ltd.

800

419,786
114,624

Nippon Light Metal Company, Ltd.

Nippon Light Metal Holdings Company, Ltd.

35

53,994

Tokyo
Transfer Agent of Common Stock
The Mitsui Sumitomo Trust & Banking Co., Ltd.
Last Shareholders’ Meeting

Nippon Light Metal Holdings Company, Ltd.

600

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

June 25, 2014

Total Assets

Nippon Light Metal Company, Ltd.

Number of Shareholders(Ratio of Stock Holding)Japan Trustee Services Bank, Ltd.
(trust accounts)(4.0%)

Nippon Light Metal Company, Ltd.

Hiroshi Tsunoda(2.1%)
Sumitomo Mitsui Trust Bank, Ltd.
(1.7%)
Retirement Benefit Trust in Mizuho Trust &Banking C0., Ltd. Mizuho Bank, Ltd. account;
Trust & Custody Services Bank, Ltd. as a Trusteeof Retrust(1.6%)

30
25

600(As of March 31, 2014)

450

20
15

400

10

300

5

Cautionary Statement

0200This annual report contains various projections and estimates. Important factors that could alter these projections and estimates include

150

-5

changes in the balance of aluminum supply and demand, fluctuations in the price of aluminum ingot and foreign exchange rates, as well

-10
0

2009

Billions of yen

2010

2011

2012

2013

2014

Years ended March 31-15

as shifts in Japanese government policies and regulations. The Company cautions, therefore, that the projections and estimates contained
2009

Billions of yen

2010

2011

2012

2013

2014

Years ended March 31

0

2009

Billions of yen

2010

2011

2012

2013

2014

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

As of March 31

45

NIPPON LIGHT METAL HOLDINGS COMPANY, LTD. ANNUAL REPORT 2014

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 JapanA N N UA L R E P O RT 2014
Year ended March 31, 2014