NIPPON LIGHT METAL COMPANY, LTD. ANNUAL REPORT 2011

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

Printed in Japan

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,

Head Office

Major Shareholders

NYK Tennoz Building
2-20, Higashi-Shinagawa 2-chome
Shinagawa-ku, Tokyo 140-8628, Japan
http://www.nikkeikin.co.jp
Phone: 81-3-5461-9211
Fax: 81-3-5461-9344(Ratio of Stock Holding)Establishedand food products industries.
By carrying on development of new applications for aluminum and aluminum materials, theMarch 30, 1939

NLM Group is to continue to support customers in wide-ranging industrial sectors and contribute toPaid-In Capital

improving the quality of people’s lives and protection of the environment.

¥39,085 million
Shares of Common Stock

Authorized: 1,600,000,000
Issued: 545,126,049

Consolidated Financial Highlight

Number of Shareholders

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

56,201
2011

2010

Millions of yen

For the year:
Net sales 
Operating profit 
Net income ¥460,681 ¥429,433 $5,164,558
7,673
24,724297,3422,084
11,040132,772

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

Net Sales
800

2011
Thousands of
U.S. dollars

481,022
93,124

414,885
104,757

4,989,597
1,259,856

225,238

193,695

2,329,465

Operating Profit
35

Stock Exchange Listings

Tokyo, Osaka
Transfer Agent of Common Stock

The Chuo Mitsui Trust & Banking Co., Ltd.
Last Shareholders’ Meeting

June 29, 2011

600

25

450

20

The Master Trust Bank of Japan, Ltd.
(trust accounts)(4.5%)The Dai-ichi Mutual Life Insurance Co.
(3.7%)
Asahi Mutual Life Insurance Co.
(2.8%)The Light Metal Educational
Foundation, Inc.
(2.7%)
Nikkei-Keiyu-Kai(2.6%)
Namekawa Aluminium Co., Ltd.
(2.3%)
Mizuho Corporate Bank, Ltd.
(2.1%)
Retirement Benefit Trust in
Mizuho Trust & Banking Co., Ltd.
Mizuho Corporate Bank, Ltd. account;
Trust & Custody Services Bank, Ltd.
as a Trustee of Retrust(1.6%)
Japan Trustee Services Bank, Ltd.
(CMTB Equity Investments Co., Ltd. Trust
Account re-entrusted by Chuo Mitsui
Asset Trust and Banking Company, Ltd.)(1.5%)

Total Assets

30600Japan Trustee Services Bank, Ltd.
(trust accounts)(7.8%)(As of March 31, 2011)

15
400

10

300

5
0

200

Cautionary Statement

150

-5

This annual report contains various projections and estimates. Important factors that could alter these projections and estimates include-10
02006 2007 2008 2009 2010 2011

Billions of yen

Years ended March 31-15changes in the balance of aluminum supply and demand, fluctuations in the price of aluminum ingot and foreign exchange rates, as2006 2007 2008 2009 2010 2011

Billions of yen

Years ended March 31

02006 2007 2008 2009 2010 2011

Billions of yen

As of March 31

well as shifts in Japanese government policies and regulations. The Company cautions, therefore, that the projections and estimates
contained herein involve risk and uncertainty, and that actual results could differ materially from those expressed or implied.
43

Contents

Consolidated Financial Highlights................................................................................................................. C2
To Our Shareholders........................................................................................................................................ 2
Special Feature................................................................................................................................................ 4
NLM Group Topics........................................................................................................................................... 7
Corporate Governance And Internal Control Systems.............................................................................. 8
NLM Group Environmental Activities .......................................................................................................... 10
Review Of Operations..................................................................................................................................... 11
NLM Group........................................................................................................................................................ 15
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................................................................................................................... 40
Overseas Network........................................................................................................................................... 41
Directors And Officers.................................................................................................................................... 42
Corporate Data................................................................................................................................................. 43

2011

2010

2011

yen

Per share data (yen and dollars):
Net income —basic —diluted 
Cash dividends 
Net assets 

U.S. dollars¥3.83 ¥20.29 $
3.63
—
—
2.00
163.13181.51

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

¥

142 ¥
71

189 $
96

0.24
—
0.02
1.82

2.27
1.15

Note: U.S. dollar amounts have been translated, for convenience only, at the exchange rate of ¥83.15 = U.S.$1.00. See Note 2 of the Notes to the Consolidated Financial Statements.

Net Income per Share
30.0

Net Assets per Share

5.0

300.0
250.0

0

Cash Dividends per Share

4.0

200.0
3.0
150.0
2.0

-30.0

100.0
1.0

50.0
-60.0
Yen

0

2006 2007 2008 2009 2010 2011
Years ended March 31

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

Yen

2006 2007 2008 2009 2010 2011
Years ended March 31

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

0
Yen

2006 2007 2008 2009 2010 2011
As of March 31

1

To Our Shareholders

Takashi Ishiyama, President and CEO

I would like to take this opportunity to extend mysincere gratitude to our shareholders for theircontinued support of our business operations.
I would also like to convey my heartfelt condolences
to those affected by the Great East Japan Earthquake.
I sincerely hope that the afflicted areas achieve
revitalization as soon as possible.
I hereby report on the operating results for Nippon
Light Metal Company, Ltd. and its consolidated groupcompanies for fiscal 2010 (the year from April 1,
2010, to March 31, 2011).

Overview of Fiscal 2010
During the year under review, in the domestic aluminum
market, demand from our principal domestic customers
in the automotive, electrical and electronics industries wasstrong, thanks mainly to buoyant exports and recovery ofcorporate performance.
In the overseas markets, exports and domestic demandremained on track for expansion in China, whereconsiderable economic growth has been registered, and inSoutheast Asia, including in Thailand, overall demand for2

aluminum continued its trend toward recovery.
Given these circumstances, the Group strived to further
strengthen our earnings base through steady progress in
the implementation of strategy based on the Mid-Term
Management Plan for the three years commencing from theyear under review.
Actions taken under the “Prioritized allocation ofmanagement resources to business units in growth
sectors” and “Accelerated development of overseas business
operations” sections of the Mid-Term Management Plan
included decisions on expansion of manufacturing sites
for automotive parts in China (Nikkeikin Aluminium CoreTechnology Co., Ltd.) and on supplying technology to local
alloy manufacturers to secure future OEM partners in thealloy business (Nikkei MC Aluminium Co., Ltd.), as wellas enhancement of production facility for back-sheets andfunctional ink for solar cells in the environment, safety andenergy sector (Toyo Aluminium K.K.). The production facility
for aluminum thin sheets at Nikkei Siam Aluminium Limited,
our subsidiary in Thailand, was also enhanced.
In the domestic sphere, in response to recovering demand
after the post-Lehman Shock recession, we strived to expand
our distribution channels, mainly in the transport andelectrical-related sectors, utilizing our strength in proposalbased sales and quality improvement.
As a result of the above, consolidated net sales for theyear under review decreased 6.8% year on year, to ¥429.4
billion due to transfer of all shares of Shin Nikkei Co., Ltd.
(currently, LIXIL Corporation), which was our subsidiary,
to the JS Group Corporation on April 1, 2010. Meanwhile,
consolidated operating profit, consolidated ordinary profit,and consolidated net income increased 222.2%, 590.9%, and429.8% year on year, to ¥24.7 billion, ¥18.5 billion, and ¥11.0
billion, respectively.
I would like to announce that the year-end dividend
payment for the year under review will be ¥2 per share,
following two consecutive years with no year-end dividend
payment, which, to our great regret, caused considerable
inconvenience to our shareholders.

Overview by Business Segment
Sales in the Aluminum Ingot and Chemicals segment
increased 21.8% year on year, to ¥107.4 billion, while

Progress in Development of Overseas BusinessBusiness Segment

Division/Products

Years

Country

Progress

Remarks

Aluminum Ingot andChemicals segment

Secondary alloy
product businessAugust,
2010

China

Securing future OEM partners

Supplying technology to Liaoning
Shang Yi Metal Resources Co., Ltd.

Aluminum Sheet andExtrusions segment
Fabricated Products
and Others segment

Doubling production capacity
September,Thailandof existing subsidiaries
2010
Expanding manufacturing—
China
Extrusion fabricationsites in Shanghai
May,
Thailand Constructing a new plant
Heat exchanger
2011
May,
Thailand Constructing a new plant
Panel products
2011

Sheet products

Additional investment ofapproximately ¥1.4 billion
Increased recruitment among Western
automobile manufacturers
Scheduled to start production andsales in October 2011
Scheduled to start production andsales in July 2012

Aluminum Foil, Powder Functional ink
and Paste segment“Alsolar”

July,
2010

China

Started production in China

Started production in May 2011

Group-wide

January,
2011

China

Set up a sales base inShanghai

Nikkei (Shanghai) International
Trading Co., Ltd.

operating profit increased 98.0%, to ¥6.8 billion. Profit grewsignificantly due to increased demand in each segment
following improvement in the domestic economy.
Sales in the Aluminum Sheet and Extrusions segment
increased 18.9% year on year, to ¥69.4 billion, due to steadilysustained demand for automobile-related parts, truck bodyparts and railway cars. Operating results for this segment
improved ¥5.0 billion, achieving a profit of ¥4.6 billion,
due mainly to substantially increased sales in the mainstay
transport industry.
Sales in the Fabricated Products and Others segment
increased 28.3% year on year, to ¥136.1 billion. Operating
profit increased 49.1% year on year, to ¥5.7 billion due
primarily to buoyancy in the Transport-Related and Electronic
Materials sectors and others.
Sales in the Aluminum Foil, Powder and Paste segment
increased 26.1% year on year, to ¥116.5 billion. Operating
profit increased 99.3% year on year, to ¥10.2 billion due
mainly to continuing favorable sales of back-sheets andfunctional ink for solar cells.

Outlook for Fiscal 2011
The Great East Japan Earthquake caused severe damage tosupply chains in the primary industries where demand forour products is greatest, such as the automobile industry, andas a result, supply of the Group’s products has been affected.
In addition, concerns over the effects of high crude oil prices

and the supply of electric power have meant that the businessenvironment surrounding the Group is likely to be evenharsher than in fiscal 2010.
The Group has been concentrating on creating production
and distribution systems that can cope flexibly with changes
in the business environment. Going forward, we will make useof these systems in our efforts to minimize the effects of theearthquake and power supply problems.
At the same time, we will continue pursuing our businessexpansion strategy in markets such as China and Southeast
Asia, where high growth is expected, as opposed to thedomestic market, where future demand is unpredictable.
Under such circumstance, the next fiscal year is projected toregister net sales of ¥420.0 billion, operating profit of ¥20.0 billion,
ordinary profit of ¥14.5 billion and net income of ¥8.5 billion.
Despite the severity of the business environment, we
intend to contribute to construction of a sustainable society
and environmental preservation through the supply ofenvironmentally friendly products and services.
I would like to ask for the continuing support of ourshareholders in these efforts.
June 2011

Takashi Ishiyama
President and CEO
3

Special Feature: Interview with the CEO“ Looking back on the first year of the
Mid-Term Management Plan”
1. What is your assessment of the first year of the Mid-Term Management Plan?
Up until the Great East Japan Earthquake, the first year had been progressing well, both in quantitative and qualitative terms.
In quantitative terms, measures were taken to shrink the size of the operation (reducing fixed costs and inventories) in eachbusiness section at the beginning of the fiscal year, and so profit margins rose as our capacity usage increased following therecovery of the domestic economy. The target for net sales over the three years of the Mid-Term Management Plan wasachieved in the first year, along with an ordinary profit of ¥18.5 billion.
In qualitative terms, the “Develop, produce and sell” initiative bringing together the Sales, Development and Production
teams for profit and loss management has become fairly well-established among the employees. With the profit and loss
position becoming clearer to all the teams, the following effects were observed: the sales team shifted to more value-added
products, the development team created new products, and the production team proposed and executed cost reduction plans.
Marginal profit of the entire Company was increased through these activities, creating a virtuous circle.
The Mid-Term Management Plan — Targets(Billions of yen)

At the Start
Fiscal 2009 (Actual)First Year
Fiscal 2010 (Actual)

Fiscal 2012 (Target)

Net sales

460.7*

429.4

430.0

Operating profit

7.7

24.7

27.0

Ordinary profit

2.7

18.5

20.0

Net income

2.1

11.0

12.0

Interest-bearing debt

221.2

190.8

197.0

Net D/E ratio (times)

2.0

1.5

1.4

ROCE (%)

2.2

8.4

9.1

[Basis of calculation] Aluminum ingot market price : ¥250,000/ton
Exchange rate : ¥90/USD*Net sales, excluding those of Shin Nikkei Co., Ltd. sold on April 1, 2010 were ¥344.1 billion.

The Mid-Term Management Plan — Basic Policies
1.

Prioritized allocation of management resources to business units in growth sectors

2.

Further reinforcement of industry-leading businesses

3.

Accelerated development of overseas business operations centering on China and Southeast Asia

4.

Development of applications by integrating key technologies and creation of new products

5.

Contribution to environmental protection by exploiting the characteristics of aluminum

6.

Improvement of the financial position and resumption of dividend payment

7.

Development and deployment of human resources

8.

Fulfillment of corporate social responsibility (CSR) and strengthening of corporate governance42. What about the Group’s overseas business development in fiscal 2010?
There were substantial developments, such as increased production of electrode ink for solar cells in China, securing OEM
partners in the alloy business, and investment to double the production capacity of sheet business in Thailand.
In addition, after January of this year, we strengthened the support structure for overseas business. Specifically, we set up asales base in Shanghai, and a Group Overseas Business Support Office, which provides assistance to overseas businessdevelopment. At the sales base in Shanghai, the business sections strive to beef up sales force while actively exchanging
information with each other.
The Group Overseas Business Support Office is intended to provide administrative support for increasing businessadvancement overseas, including the Group companies. We hope to secure local human resources through the creation of
long-term relationships with local universities which can coordinate employment with our companies.
In May 2011, we announced that a new production base is going to be established in Thailand for heat exchangers for air
conditioners, and panel products for clean rooms, refrigerators, and freezers. The plant designated for heat exchanger productionis already under construction and the first shipment is scheduled in October 2011. As for panel products, construction of a plant
has been decided, and we aim to commence sales of the products in July 2012. (For more details, please see “Topics” on page 9).
are you progressing with “Development of applications by integrating key technologies
3. Howand creation of new products”?
I would like to talk about three products.
First we have the “Circuit base plate combined cooler for power modules,” which was co-developed with Dowa Metaltech
Co., Ltd. By combining a ceramics base plate and aluminum heat sink, we increased the heat transmission performance morethan 50% compared to previous methods. We aim to put it into mass production in 2013.
Next, there is the “Aluminum floor slab for road bridges*,” a first for Japan, announced in April 2011. Aluminum
prefabricated products bonded through a technology called friction stir welding (FSW) are pretty light; for example, they are
one fifth the weight of concrete products, and half the weight of steel, and so only small-sized heavy equipment is needed forconstruction. Replacing old floor slabs with this product can dramatically reduce the burden placed on existing bridge girders
and bridge piers. Although the unit price of this product is marginally higher than steel, overall costs would be more or lessthe same considering that it does not require any ongoing maintenance, the construction period isshort, and earthquake resistance is improved.
Thirdly, I would like to emphasize the growing technological advantage of MAXUSTM, analready developed aluminum material used for spent nuclear fuel casks. MAXUSTM is a special
sheet material that continues absorbing neutrons emitted from spent nuclear fuel, and thedemand for casks to store spent nuclear fuel is increasing both in Japan and overseas.
*the floor section of a bridge, which directly bears the load, e.g. cars

the management direction of NLM be altered following the Great
4. Will
East Japan Earthquake of March 11, 2011?
I would like to extend my heartfelt sympathy to the people whohave been affected by the earthquake.
Reduced production in the automobile and truck sectors had a
big impact on us, and, for the time being, we are waiting for
those sectors to recover.

Takashi Ishiyama,
President and CEO

5

Special Feature: Interview with the CEO

I believe that the Japanese-style “just-in-time production system” will remain in use. Trading partners may be diversified
following the earthquake; however, from a management viewpoint, it is more advantageous to run a business without holding
inventory. I also believe that most of the Japanese companies that have been affected by the earthquake will be able to surviveinternationally by developing new products. So will we, and we will continue our efforts.
payment was resumed for fiscal 2010 at ¥2 per share. What is the possibility of
5. Dividend
increasing it next year? How will you be able to both secure funds for capital investment andimprove your financial position at the same time?
The next fiscal year is expected to register a decrease in both net sales and profit, and therefore at this stage we announced,
with regret, the same dividend payment of ¥2 per share for the next fiscal year.
With reference to improvement of our financial position, we aimed to reduce the balance of interest-bearing debt to ¥197.0
billion by the end of fiscal 2012, and that has already been reduced to ¥190.8 billion at the end of the fiscal year under review.
During the next fiscal year, we basically plan to carry out investment within the range of available cash flow and further
improve our financial position.

6. How about “Development and deployment of human resources”?
With regard to “Development and deployment of human resources,” I believe that the most important issue is whether theemployees think in terms of the profit and loss management of each business unit, and run operations keeping in mind theidea of “develop, produce and sell.” I believe that the very essence of management responsibility resides in that concept.
I have constantly conveyed this message to the employees: “We should always rigorously question whether or not we aremaking an actual profit, and if not, what we should do, whether we should increase the prices, or reduce the costs, or if weshould develop new products. Then we should act.” I feel that they are responding to this message.
completed the first year, is there any possibility that you will amend the targets of
7. Havingthe Mid-Term Management Plan? What is your current growth strategy?
Although the results of fiscal 2010 exceeded the Plan, there is no amendment to the targets and basic policies of the current
Mid-Term Management Plan. However, as core part of our growth strategy, the “overseas sales ratio to achieve 20% in fiscal
2012” has been revised to 30%.
The NLM Group has accumulated extensive technology and knowledge related to aluminium, ranging from materials toprocessing. We are going to strive to build a corporate group with higher enterprise value through the united efforts of all our
employees including myself, combining our technology and knowledge to expand the range of aluminum applications and todevelop new products for the next generation. We would appreciate your kind understanding and support for our efforts.
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.
This segment is a new category from fiscal 2010. The core company in this segment is Toyo Aluminium K.K. Aluminum
foils, powder and paste produced by Toyo Aluminum K.K. have achieved a leading industry market share and are being used ina wide range of areas, from daily necessities to energy, electrical and electronics, and automobiles. Expanding into new fields
based on our own technology, we are marketing various kinds and types of materials and products of high functionality inboth domestic and overseas markets.
(Note) Numbers used for past fiscal years in the graphs above have been revised according to the current segment categories.
6

NLM Group Topics

Construction of plant for room air conditioner heat exchangers in Thailand
The Company is currently constructing
a plant to produce heat exchangers forroom air conditioners, located in anindustrial complex in Thailand
populated by many Japanese home
appliance makers. Shipments will
begin in October of this year.
Demand for household room air
Exterior of new plantconditioners is expected to expand
rapidly worldwide, following on economic growth inemerging countries, mainly in the BRICs. However, the heatexchanger, which is a key part, has traditionally usedcaulked construction, in which a copper pipe is inserted thr
l-aluminum parallel flow model heat exchangers, withan aluminum fin brazed to aluminum pipe, far surpassing
previous models both in terms of energy saving
performance and miniaturization technology. By applying

to household room air conditioners
the technology developed in
production of heat exchangers forautomobiles, we will further enhance
our competitive advantage in theindustry.
In the mid-term management
plan, the NLM Group has set the“environment, safety, and energy
market” as one of four strategic markets for prioritizedallocation of management resources. With the start ofproduction of room air conditioner heat exchangers in
Thailand, we are developing the Heat Exchanger Business*as one of the core supporting operations of the Group.
*Heat Exchanger Business: A joint venture of the American MODINE
MANUFACTURING CO. and NLM, being developed around Nikkei Heat
Exchanger Co., Ltd.

Nikkei Panel System begins Insulation Panel Business in Southeast Asia
Construction of new plant announced along with establishment oflocally incorporated company
In May of this year, Nikkei Panel System Co., Ltd.
(hereinafter Nikkei Panel), a 100%-owned subsidiary of theCompany, decided to expand operations into the Southeast
Asia region where demand is expected to grow.
Nikkei Panel has approximately half a century of history
in the Insulation Panel Business, and is one of the industry
leaders in the NLM Group, which dominates the field interms of domestic market share.
The company’s insulation panel products areindispensable in the food products cold chain, fromprimary industries such as agriculture and fishing, tosecondary industries such as food processing, and tertiaryindustries such as low temperature distribution
warehouses and general retailers. In addition, thecompany makes clean rooms, handling the entire processfrom design to manufacture and construction, for leading
domestic manufacturers of semi-conductors, liquid crystal

panels, and precision instruments.
In the past, Nikkei Panel exported products made inJapan to Southeast Asia and other areas, but has decided toconstruct a new plant in Thailand in order to provide thesame level of quality as Japan-made products on a stabledelivery schedule in Southeast Asia.
Furthermore, Nikkei Panel System Vietnam Co. Ltd.
(tentative name) is scheduled to be set up in Vietnam in
October of this year, mainly for the purpose of sellinginsulation panels. This company will strengthen sales toSoutheast Asian countries other than Thailand, and will
also act as an international procurement center for the
purpose of procuring materials used in domestic Japaneseplants and in the new plant in Thailand.
The NLM Group will continue to vigorously pursue
overseas expansion, and strive to reinforce its industryleading business.
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 11 directors, of whom two are outside
directors. This system enables agile management and sufficient deliberation by the Board of Directors. To clarify the roles andresponsibilities of directors and executive officers and ensure that their tasks are conducted appropriately, their term of office
is set to be one year. 12 Board of Directors meetings were held in fiscal 2010.
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 Board of
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 Group• Quality Committee• Environment Committee, etc.

Statutory
auditors
Outsideauditors

Information exchange

Accounting Audits
In fiscal 2010, 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 the implementationof the Internal Control Systems, in order to achieve the Company’s goals stipulated in the Group management policy. We willcontinue to move forward with the implementation of the systems, while revising the policy as necessary.
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 allmembers 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

Basic Principle

We shall comply with relevant laws and ordinances and shall take action independently
and actively on global environmental issues.
NLM Group’s management policies reflect the recognition that initiatives to tackle global environmental issues are vital.

Basic Policy for Environmental Issues

Action Guidelines

Environmental issues are no longer confined to one locality,and have been spreading and worsening to the extent that theycan endanger the global environment and the very existence ofhuman beings.
Actions and dedication are required for the national
government, local governments, citizens and companies toconstruct a sustainable, recycling-oriented economy and society
capable of coexisting with the environment preserved Earth. With
this mission strongly in mind, the NLM Group seeks a harmonious
coexistence with the natural environment in every aspect of its
corporate activities.
These efforts eventually lead to sound corporate activities
together with protecting the interests of shareholders, customers,
employees and local communities, which are the basis of NLM’sexistence. We also endeavor, as decent corporate citizens, torealize a truly affluent society through an environment-orientedsocial contributions.

1. Compliance with Environment-related Laws and Regulations
We comply with laws and regulations for the protection of the environment.
2. Improvement of Energy Efficiency and Reduction of CO2 Emissions
We endeavor to improve the energy efficiency and reduce CO2 emissions byimproving efficiencies of production processes and equipments raising productivity and rationalizing logistics.
3. Facilitating Resource Savings and 3R campaign
We make efficient use of all production resources including aluminum, anddisseminate the 3R (reduction, reuse and recycling) campaign throughout
the Group.
4. Business Activities in Consideration of Environmental Impacts
Prior to determining where to build a production facility or what products
to develop, we take measures their impacts on the environment based on
scientific evaluations. We also make every effort to reduce the environment
even in existing business activities.
5. Development of Technologies Contributing to Environment Protection
Our proactive product, process and other technology developments takeadvantage of aluminum’s characteristics to reduce environmental impact.
We contribute to environmental preservation by publicizing these results
and providing products that incorporate them.

• • • • • • • • • • • • • Voluntary Action Plan for Reduction of Greenhouse Gas Emissions / NLM Group • • • • • • • • • • • • •Maintain greenhouse gas emissions per unit of

NLM Group Voluntary Action Plan for Reduction ofGreenhouse Gas Emissions

average, a reduction of 13% versus fiscal 1990

Reduce the ratio of greenhouse gas emissions to net sales by
10% until 2010 compared to1990

Provisionalsales equivalent to the fiscal 2008 to fiscal 2012targets

In 2005, the NLM Group formulated an action plan to promote thevoluntary and proactive environmental initiatives advocated in the
Company’s basic policy. Of the several environmental parameters,
the voluntary action plan is focused on the reduction of greenhousegases, a comprehensive indicator of contribution to global warming.
We succeeded in achieving our goal of reducing greenhouse gas
emissions per unit of sales by 10% until fiscal 2010 compared tofiscal 1990 levels.
Given that there is still no post-Kyoto Protocol international
agreement, and the likelihood that Japan’s Basic Energy Plan will
be revised due to the effect of the Great East Japan Earthquake, wehave postponed drawing up our next mid-term targets as of fiscal
2011, and set provisional targets until fiscal 2012.
The NLM Group will continue striving to reduce greenhouse gas
emissions and reduce emissions per unit of sales.
10

Changes in Greenhouse Gas Emissions per Unit of sales(t-CO2/million yen)
2.4
reference value
2.36
2.3

13%

reduction

2.2

2.15

2.14

target

2.1

2.13
2.07

2.0
1.98
1.9

1990

2006

2007

2008

2009

result
2.03

2010

2.04

2012 (FY)*5 year average for the period from 2008 to 2012. The following CO2 emissions conversion factors have been used:
Electricity: CO2 emissions intensity in the previous year, announced by the Federation of Electric Power Companies of Japan(FEPC) (For 2009 and 2010, post-credit units were used). For 2011 and 2012, 0.351kg-CO2/kWh (2010) was used.
Fuel: In accordance with the Ordinance for the Enforcement of the Law Concerning the Promotion of Measures to
Cope with Global Warming, effective on April, 2010

Aluminum Ingot and Chemicals

Review of Operations

Profile Alumina and Chemicals Operations produce aluminum hydroxide, alumina andchemicals used in various fields. These products are used as raw materials for flame retardants,
ceramics and other products and as industrial materials in paper and pulp manufacturing.
Aluminum and Aluminum Alloy Operations manufacture primary and secondary aluminumalloys and enjoy an excellent reputation for the development of high-performance alloys in
response to customer requirements. High-purity aluminum manufactured at Japan’s only
aluminum smelting plant is used as a raw material for electronic materials and other products.

Consolidated Net Sales

25.0
107,397

Millions of Yen■ Consolidated Operating Profit■ Principal Products(Millions of Yen)

(Millions of Yen)

160,000

10,000• Aluminum• Aluminum hydroxide• Chemicals (chemical products)• Caustic soda
• Chlorinated chemical products• Aluminum ingot• Aluminum alloys■ Net Sales

8,000

120,000

6,000

80,0004,000

40,000
0

2,000

’08

’09

’10

’11

0

’08

’09

’10

’11

%

Note : Numbers used for the year ended March 2010 have been revised according to the current segment categories.

■ Overview of results for fiscal 2010
In the Aluminum Ingot and Chemicals
operations, sudden appreciation of the yen
meant that exports of alumina continued
to stagnate as in the previous year. Within
the domestic market, however, shipments
of products such as alumina for fireretardant materials, alumina for electricalmachinery and electronics, and aluminumhydroxide increased thanks to recoveryof the domestic economy, resulting insubstantially improved sales compared tothe previous year.
In terms of chemicals, shipments ofsoda products such as caustic soda andhydrochloric acid, and organic andinorganic chlorine products remained
generally steady.

Sapphire substrate

As a result, overall sales were significantly
higher compared to the previous year,
and in terms of profits, there was anincrease compared to the previous year,
due primarily to increased shipments
accompanied by recovery of plant capacity
usage.
In the Aluminum Ingot operations,overall sales volume exceeded that ofAluminum Ingot

the previous year, thanks to recovery ofdomestic demand for mainstay secondary
alloy products for automotive applications.
This was due to improvements in thedomestic economy and the government’s
economic measures; strong overseas
demand, especially in the markets in China,
was also a factor. In addition, the sales unit
price rose thanks to the increased market
price of aluminum ingots, resulting inhigher sales compared to the previous year.
In terms of profits, despite profitsqueezing factors such as the gradual priceincrease of raw materials for secondary
alloy products, and the rapid increase inside materials prices in the latter half ofthe year, results improved substantiallycompared to the previous year due mainly
to strong overseas demand.
As a result, Aluminum Ingot andChemicals segment sales increased
21.8%, or ¥19,256 million year on year,to ¥107,397 million (¥88,141 million forthe previous year), while operating profit
increased 98.0%, or ¥3,358 million year on
year, to ¥6,783 million (¥3,425 million forthe previous year).
11

Aluminum Sheet and Extrusions

Review of Operations

Profile The NLM Group’s aluminum sheet and extrusions are used in a wide range ofmarket sectors, for instance for automotive parts and railway cars in the transportindustry and for semiconductor and liquid crystal manufacturing equipment andphotosensitive drums in the electrical machinery and electronics industries. The Groupapplies technologies and expertise accumulated over many years to actively develop
products that meet user needs and provides customers with high-performance sheetsand extrusions.
■ Net Sales■ Consolidated Operating Profit■ Applications(Millions of Yen)

(Millions of Yen)

• Automobile

80,0006,000

60,0003,000

40,0000

20,000-3,000

0

’08

’09

’10

’11

-6,000

’08

’09

’10

’11

Note : Numbers used for the year ended March 2010 have been revised according to the current segment categories.

■ Overview of results for fiscal 2010
In the Aluminum Sheet operations,despite the difficulty experienced mainly
in building materials-related sectors,
shipments of foil stock for Electrolytic
Capacitors recovered after the stagnationof the previous year, and shipments ofthick plates for semiconductor and LCD
manufacturing equipment, as well asbasic materials for electrical machineryand electronics, increased. As a result,overall sales volume significantly
exceeded that of the previous year. At thesame time, product prices rose in linewith the increase in aluminum alloy
prices, which is regarded as an index,
resulting in substantially higher sales
compared to the previous year.
In terms of profits, profitability
improved considerably compared to theprevious year, thanks to stabilized capacity
usage and the resulting improvementin production efficiency following thesignificant increase in shipment volume,along with efforts made to reduce costs.
In the Extrusions operations, thetransport industry saw solid shipments
12

Consolidated Net Sales

69,458Millions of Yen

16.2%■ Principal Products• 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

Sunroof Railof automotive parts both in the domestic
market and overseas, thanks mainly
to the effect of the governmental“Eco-car” tax reduction. In addition,
increase in demand for trucks following
the strengthened exhaust emission
regulations substantially expanded theshipment volume of truck body parts.
Shipments of railway cars also remainedrobust. Sales volume of building materials
exceeded the previous year’s level due toa slight, although not lasting, recovery
of demand in comparison to the previous
year. As a result of these factors, overallsales significantly exceeded the previous
year’s level.

In terms of profits, although rising
prices of raw materials and side materials
caused a reduction in profit, overallprofit increased significantly compared tothe previous year due to the substantial
sales increase in the mainstay transportindustry that had been enjoying continued
success.
As a result, Aluminum Sheet andExtrusion segment sales increased 18.9%,
or ¥11,059 million, to ¥69,458 million(¥58,399 million for the previous year),while operating results improved ¥4,966
million from the previous year, to an
operating income of ¥4,604 million (anoperating loss of ¥362 million for theprevious year).
On March 1, 2011, in order to achievecomprehensive business management in
the Extrusions and Extrusion Fabrications
sector, we incorporated Nikkeikin Kakoh
Kaihatsu Holdings Company, Ltd., toact as an immediate holding company,
supervising the Group’s subsidiaries thatrun the businesses concerned.

Fabricated Products and Others

Review of Operations

Profile The NLM Group includes several companies that handle distinctive fabricatedproducts. In particular, Nippon Fruehauf’s truck bodies and Nikkei Panel System’scommercial 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 aluminium fabricated products, including anodized aluminum foil for aluminum electrolytic capacitors, automotive parts, and carbon products.

Consolidated Net Sales

136,095
Millions of Yen

31.7%■ Net Sales■ Consolidated Operating Profit■ Applications■ Principal Products(Millions of Yen)

(Millions of Yen)

• Automobile

280,000

16,000210,000

12,000140,000

8,000

70,0004,000• 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

0

’08

’09

’10

’11

0

• Transport• Electronics• Building materials
and infrastructurematerials

’08

’09

’10

’11

Note : Numbers used for the year ended March 2010 have been revised according to the current segment categories.

■ Overview of results for fiscal 2010
In the Transport-Related sector, overall sales
in the van and truck outfitting businessshowed a significant improvement over theprevious year, accompanied by a considerable
hike in profit. This resulted from the
combination of increased sales volume ofvans and trucks in the first half owing to lastminute demand following the governmental“Eco-car” tax reduction, and the stronger
exhaust emission regulations imposed onlarge-sized vehicles, as well as continued
growth in shipments of newly modified carsin compliance with tougher exhaust emission
regulations in the latter half of the year.
In the area of capacitors for car air
conditioners, performance was good during
the first half thanks to buoyant shipmentsof capacitors following the strong demand
for automobiles. This offset the decline in
the latter half due to decreased demand
after economic stimulus measures such as
the “Eco-car” subsidy program ended; as aresult, sales were higher overall comparedto the previous year.
In the Shaped Parts sector, thanks
mainly to the impact of the governmental• Food and lifestyle

Van truck bodies“Eco-car” tax reduction, demand forparts for environmentally friendly or fueleconomy cars, including hybrid cars, wasstrong and sales exceeded figures for theprevious year.
In the Electronic Materials sector,
while demand for anodized aluminum
foil for aluminum electrolytic capacitors
appeared to be affected partly by inventory
adjustments during the latter half, demandfor digital appliances grew following
the government’s economic stimulus
measures. This, together with recovering
demand for manufacturing equipment,
resulted in significantly higher sales
compared to the previous year.

In the Panel System sector, while
demand for industrial refrigerators andfreezers was showing signs of recovery,
demand for clean rooms was slow becauseof stagnant corporate capital expenditure.
Despite an increasingly competitivemarket environment, both sales and profit
results were up compared to the previous
year thanks to efforts made to expand
distribution channels and reduce costs.
In the Carbon Product sector, exports ofour mainstay cathode block for aluminumelectrolysis and carbon blocks for blast
furnaces and electric furnaces decreased
considerably due to low demand. In
addition, sales prices decreased because of
the rising yen, and as a result, both sales
and profit results were considerably lower
than the previous year.
As a result, sales in the FabricatedProducts and Others operations increased
28.3%, or ¥30,035 million, to ¥136,095
million (¥106,060 million for the previousyear). Operating profit increased 49.1%, or¥1,889 million, to ¥5,738 million (¥3,849
million for the previous year).
13

Aluminum Foil, Powder and Paste

Review of Operations

Profile This segment is a new category from fiscal 2010. The core company in this segment
is Toyo Aluminium K.K. Aluminum foils, powder and paste produced by Toyo Aluminum
K.K. have achieved a leading industry market share and are being used in a wide range ofareas, from daily necessities to energy, electrical and electronics, and automobiles. Expanding into new fields based on our own technology, we are marketing various kinds and typesof materials and products of high functionality in both domestic and overseas markets.

Consolidated Net Sales

27.1%

116,483
Millions of Yen■ Net Sales■ Consolidated Operating Profit■ Applications■ Principal Products(Millions of Yen)

(Millions of Yen)

120,000

12,00090,0009,000

60,0006,000• Food and lifestyle• Electronics• Automobile• Environmental / Energy• Aluminum foil
• Aluminum foil for electrolytic capacitors• Powder and paste• Back sheets for solar cells• Electrode ink for solar cells

30,000

3,000

0

’08

’09

’10

’11

0

’08

’09

’10

’11

Note : Numbers used for the year ended March 2010 have been revised according to the current segment categories.

■ Overview of results for fiscal 2010
In the Aluminum Foil sector, theoverall market situation was strong,
thanks to substantial recovery indemand for high-purity aluminum
foil for electrolytic capacitors, despite
inventory adjustments in products used
for personal computers. Sales in thealuminum foil business were higher
than the previous year due to continued
buoyant shipments of fabricated foil for
pharmaceutical packaging, mainly for
generic pharmaceuticals, and increased
sales volume of plain foil for lithium ion
battery surfaces.
In the Paste sector, shipments increased
during the first half in the business of
our mainstay aluminum paste used forautomobile paint, as well as aluminum
paste for electrical appliances, and plastic
paint. However, due mainly to slowing
domestic demand following the waning
effect of the governmental economic
package, stagnating growth of exports
to China, and reduced demand in Korea

fiscal year.
As a result, sales in the Aluminum Foil,
Powder and Paste sector increased 26.1%,
or ¥24,082 million, to ¥116,483 million(¥92,401 million for the previous year).
Operating profit increased 99.3%, or ¥5,105
million, to ¥10,245 million (¥5,140 million
for the previous year).
High-purity aluminum foil

because of inventory adjustments during
the latter half, sales remained at theprevious year’s level.
In the Electronic Functional Materials
sector, our mainstay back-sheets andfunctional ink for solar cells registeredstrong demand through the year, notonly in domestic markets but also inmarkets in China and Taiwan. Demandfor other functional materials, mainly
powder products, recovered, especially forenvironmentally friendly cars and LCD
televisions, and consequently sales were
substantially higher than the previous
Solar Panel

14

NLM Group

Nippon Light Metal Group consists of 80 subsidiaries and 22 affiliates (as of March 31, 2011).
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.

Aluminum
Ingot andChemicals(Manufacture and Sales)(Sales and Others)● Aluminium Wire Rod Co., Ltd.

● Nikkei Sangyo Co., Ltd.

● Nikkei MC Aluminium Co., Ltd.

● Tamai Steamship Co., Ltd.

● Nikkei MC Aluminum America Inc.
● Nikkei MC Aluminum (Thailand) Co., Ltd.
● Nikkei M.C. Aluminum (Kunshan) Co., Ltd.
● Ihara Nikkei Chemical Industry Co., Ltd.

(Manufacture and Sales)(Sales and Others)● Nikkei Extrusions Co., Ltd.

● Nikkeikin Kakoh Kaihatsu Holdings● Nikkeikin Aluminium Core Technology Co., Ltd.

Aluminum
Sheet andExtrusions● Nikkei Siam Aluminium Ltd.

Company, Ltd.

● Nikkei Sangyo Co., Ltd.

● Riken Light Metal Industrial Co., Ltd.
● Nonfemet International (China-Canada-Japan)

Aluminium Co., Ltd.

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

FabricatedProducts
and Others(Manufacture and Sales)(Sales and Others)● NLM ECAL Co., Ltd.

● Nikkei Information System Co., Ltd.

● Nikkei Kenzai Kogyo 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.
● Nikkei Heat Exchanger Co., Ltd.

(Manufacture and Sales)● Toyo Aluminium K.K.
● Hunan NingXiang JiweXin 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.
● Sam-A Aluminium Co., Ltd.

CUSTOMER● Consolidated subsidiaries: 74 companies● Affiliates accounted for by the equity method: 13 companies

Note : Shin Nikkei Co., Ltd. ceased to be a subsidiary of the Company on April 1, 2010.

Flow of products and raw materials
Flow of services(As of March 31, 2011)15

CONSOLIDATED SIX-YEAR SUMMARY
Nippon Light Metal Company, Ltd. and its consolidated subsidiaries Years ended March 31

Gross Profit and
Gross Profit Margin2006%

150,000

Gross Profit
Gross Profit Margin20

90,00015

60,00010

30,0005

02006 2007 2008 2009 2010 2011

Millions of yen

0Years ended March 31

Interest-bearing Debt
300,000

250,000

200,000

150,000

100,000

50,00002006 2007 2008 2009 2010 2011

Millions of yen

Years ended March 31

Free Cash Flows
30,00025,00020,00015,00010,0005,000

0-5,0002006 2007 2008 2009 2010 2011

Millions of yen

16(Millions of yen)25

120,000

Years ended March 31

2007

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

¥577,061
116,078
20.1
28,92322,3539,684¥618,158
120,345
19.5
30,51925,24812,755

97,07770,714
238,422
170,848—
577,061

110,667
78,929255,514173,048—
618,158

9,640
6,435
15,848(163)—(2,837)28,923

11,667
6,443
14,156
1,073—(2,820)30,519294,331
185,005
5,261
48,929281,505
122,033
119,7196,275
3,994
208,817340,897
184,070
5,969
48,527
287,436
149,916130,176
7,770
4,165
223,607

26,77917,315(19,724)
19,819(9,862)

21,397
17,481(19,514)
20,702
12,483¥17.79
16.89
232.544.0¥23.5622.36
254.82
5.0

8.6
8.0
23.6

9.3
9.7
23.8

543,350¥5,133
13,492

543,350¥5,504
13,493Note 1: U.S. dollar amounts have been translated, for convenience only, at the exchange rate of ¥83.15 =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.

2008

2009

2010

2011

Return on Capital Employed(ROCE)

2011(Thousands of
U.S. dollars)(Note 1)

(Millions of yen)96¥647,846
108,946
16.8
17,998
11,222(10,310)¥554,094
76,72013.8(11,892)(16,936)(31,442)¥460,681
81,885
17.8
7,673
2,682
2,084

¥429,433
78,16618.2
24,724
18,52911,040$5,164,558
940,060
18.2
297,342
222,838
132,772

156,189
79,375251,998
160,284—
647,846

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

88,141
58,399106,060
115,680
92,401
460,681

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

1,291,605
835,334
1,636,741—
1,400,878
5,164,558

9,172
1,630
13,212(2,976)—(3,040)17,998748(5,737)3,976(7,870)—(3,009)(11,892)

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

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

81,57555,37069,008—123,211(31,822)
297,342

311,083
179,243
6,189
43,958
270,545
140,931
118,294
3,465
7,238
223,660

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

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

2,669,344
1,729,008
53,614
537,6312,197,270
1,532,471
1,181,864
5,569
72,423
2,294,167

25,018
20,160(25,051)
25,263(9,028)26,674
22,113(22,086)
24,997
6,422

26,38820,717(15,792)
14,197(8,880)26,47915,831964
15,363(30,726)

318,449
190,391
11,594
184,762(369,525)¥(19.00)—
223.613.0¥(57.77)—
154.22—¥3.83
3.63
163.13—¥20.29—181.512.00$0.24
—
2.18
0.02

4.5
(7.9)
22.5

(4.1)
(30.6)
17.5

2.2
2.4
18.5

7.9
11.8
23.8

7.9
11.8
23.8

545,126¥5,858
14,084545,126
5,972
13,678545,126
5,085
12,854545,126
4,798
9,739

545,126$57,703
9,739

3

0

-3

-6

2006 2007 2008 2009 2010 2011

Years ended March 31%

Return on Equity (ROE)
20

10

0

-10

-20

-30

-40

2006 2007 2008 2009 2010 2011

Years ended March 31%

R&D Expenditures
7,000

6,000

5,000

4,000

3,000

2,000

2004
1,000

0

2006 2007 2008 2009 2010 2011

Millions of yen

Years ended March 31

17

FINANCIAL REVIEWOverview
The Japanese economy during fiscal 2010 (year ended March
31, 2011) showed signs of recovery in corporate capital
expenditure and in the employment climate; however, after
the Great East Japan Earthquake that occurred on March 11of this year, ongoing economic trends have become
impossible to predict.
In this environment, domestic demand for aluminumfrom principal domestic customers in the automotive,
electrical and electronics industries was robust, given thefavorable export situation, recovery in corporate
performance, and other factors. Demand for aluminum wasalso expanding overseas, in Southeast Asian countries
including China and Thailand, and other areas of marked
economic growth.
At the same time, the NLM Group strived to strengthen its
earnings base, with the three-year Mid-Term Management
Plan commencing from the year under review. Under theplan, we strengthened our business foundation mainly inareas of growth, through “Prioritized allocation ofmanagement resources to business units in growth sectors”
and “Accelerated development of overseas business operations
centering on China and Southeast Asia.” Specifically, we
reinforced manufacturing facilities for back-sheets for solar
cells in the environment, safety and energy sector (ToyoAluminium K.K.), in addition to enhancing manufacturing
sites for automotive parts in China (Nikkeikin Aluminium
Net Sales By Segment
700

Core Technology Co., Ltd.). A variety of other projects werealso undertaken in Thailand, including reinforcement of
manufacturing facilities for aluminum thin sheets at Nikkei
Siam Aluminium Limited, our subsidiary.
Earnings and Expenses
Under such circumstances, the NLM Group’s consolidated net
sales for the year under review decreased 6.8% year on year,to ¥429.4 billion ($5,165 million) due to transfer of allshares of Shin Nikkei Co., Ltd. (currently, LIXIL Corporation),
which was our subsidiary, to the JS Group Corporation on
April 1, 2010. For sales and other financial performance bybusiness segment, please see the Review of Operation in page
11 to 14.
The cost of goods sold decreased 7.3% year on year, to¥351.3 billion ($4,224 million), while the cost to sales ratio
improved 0.4 percentage points year on year, to 81.8%.
Selling, general and administrative expenses decreased 28.0%
year on year, to ¥53.4 billion ($643 million). As a result,operating profit increased 222.2% year on year, to ¥24.7
billion ($297 million).
Non-operating income decreased 34.5% year on year, to¥2.9 billion ($35 million). This resulted from a decrease inequity in earnings of affiliates and other factors. Nonoperating expenses shrank 3.6% year on year, to ¥9.1 billion($110 million). There is no significant difference in nonoperating expenses from the previous year. As a result,

Total Net Assets

Equity Ratio

150

25

120

20

90

15

60

10

30

5

600
500
400
300
200
100
0

2007

Billions of yen

2008

2009

2010

2011

Years ended March 31

0

2007

2008

2009

Billions of yen

Aluminum Ingot and Chemicals
Aluminum Sheet and Extrusions
Fabricated Products and Others
Building Materials
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 not include numbers form the Building Materials segment.

18

2010

0

2011

As of March 31

%

2007

2008

2009

2010

2011

As of March 31

ordinary profit was ¥18.5 billion ($223 million), 6.9 times
greater than the previous year.
There were no special gains, but special losses of ¥2.1
billion ($25 million) were recorded. This was a result ofrecording ¥1.0 billion ($13 million) loss on valuation of
investments securities due to a drop in stock prices and ¥0.8
billion ($10 million) loss on disposal of non-current assets
accompanying the change in main raw materials used inalumina products at our Shimizu Plant, as well as otherfactors.
As a result, the income before income taxes and minority
interests of ¥16.5 billion ($198 million) was recorded for theperiod under review. Corporate, inhabitant and business taxes
increased ¥1.0 billion year on year, to ¥3.3 billion ($40
million). Meanwhile, deferred income taxes during the period
under review were ¥1.0 billion ($13 million).
As a result of the above, net income in the period underreview was ¥11.0 billion ($133 million), 5.3 times greaterthan the previous year. The average number of shares
outstanding decreased from 544,094,000 in the previous year
to 544,013,000 in the year under review. Therefore, net
income per share increased from ¥3.8 in the previous year to¥20.3 ($0.24) in the period under review. Payment of annual
cash dividend of ¥2.0 ($0.02) per share was approved by the
resolution at the General Meeting of Shareholders held on
June 29, 2011.
Assets, Liabilities and Shareholders’ Equity
Total assets as of March 31, 2011 decreased ¥66.1 billion(down 13.7%) year on year, to ¥414.9 billion ($4,990
million), resulting primarily from the transfer of all shares of
Shin Nikkei Co., Ltd., which was our subsidiary, to the JS
Group Corporation on April 1, 2010.
Total liabilities decreased ¥77.8 billion (down 20.0%)
year on year, to ¥310.1 billion ($3,730 million), as a result of
the above share transfer of Shin Nikkei Co., Ltd. and otherfactors.
Interest-bearing debt decreased ¥30.4 billion year on
year, to ¥190.8 billion, thanks primarily to repayment ofborrowings to cover funding for operating activities at Shin
Nikkei Co., Ltd. accompanying the share transfer of the said
company.
Net assets increased ¥11.6 billion (up 12.5%) year on
year, to ¥104.8 billion ($1,260 million), thanks primarily to
an increase in retained earnings due to the recording of net
income in the period under review. Net assets per share as ofMarch 31, 2011 increased 11.3% year on year, to ¥181.51($2.2), while the equity ratio improved 5.3 percentage points,
to 23.8%.

Cash Flows
Cash and cash equivalents on a consolidated basis as ofMarch 31, 2011 decreased ¥3.5 billion (down 7.7%) year on
year, to ¥42.1 billion ($507 million).
Net cash provided by operating activities increased ¥0.1
billion (up 0.3%) year on year, to ¥26.5 billion ($318
million). This was because non-cash profit/loss items such as
depreciation and amortization as well as income before
income taxes and minority interests were greater than theincrease in working capital.
In the fiscal year under review, ¥1 billion net cash wasprovided by investing activities, compared with ¥15.8 billion
net cash used in the same activities in the previous year,
thanks primarily to the collection of loans receivableamounting to ¥20.1 billion from Shin Nikkei Co., Ltd.
Net cash used in financing activities was ¥30.7 billion($370 million), 3.5 times greater than the previous year. Thiswas mainly a result of an increase in repayment ofborrowings during the year.
Outlook for Fiscal 2011
In fiscal 2011, economic growth is expected to continue in
China and other Asian countries, and European andAmerican economies are predicted to be relatively robust. In
Japan, however, economic stagnation is expected to continue
for a while, as it is believed that the supply chain for parts
will take some time to normalize after the effects of the Great
East Japan Earthquake.
The NLM Group anticipates continued expansion inoverseas sales, mainly in China and Southeast Asia, while
forecasting a decline in domestic sales figures mainly in thefirst half of the year due to the Great East Japan Earthquake.
Furthermore, although it is difficult to measure the effecton Japan’s economic activities resulting from concerns about
nationwide electricity shortages, based on as muchinformation as we can obtain at this time, the NLM Group’sbusiness performance for the next fiscal year is predicted asfollows. For fiscal 2011, we expect sales of ¥420.0 billion,
operating profit of ¥20.0 billion, ordinary profit of ¥14.5
billion, and net income of ¥8.5 billion. Net income per shareis predicted to be ¥15.62, while a cash dividend per share of¥2.0 is anticipated.

19

CONSOLIDATED BALANCE SHEETS
Nippon Light Metal Company, Ltd. and consolidated subsidiaries

2010

March 31,2011

(Millions of yen)

2011
(Thousands of
U.S. dollars)(Note 2)

AssetsCurrent assets:
Cash and deposits (Notes 3 and 5) Notes and accounts receivable – trade 
Finished products Work-in-progress, including costs related to construction-type contracts 
Raw material and supplies Deferred tax assets (Note 8) 
Other current assets Allowance for doubtful accounts 
Total current assets ¥45,843 ¥42,073
136,644
115,204
22,751
22,45523,57012,246
17,22018,303
4,159
5,367
10,124
7,681(1,472)(1,373)258,839
221,956$505,989
1,385,496
270,054
147,276
220,120
64,546
92,375(16,512)2,669,344

Property, plant and equipment (Note 5):
Land 
Buildings and structures 
Machinery and equipment 
Construction-in-progress 
Accumulated depreciation 
Total property, plant and equipment 60,720140,116
289,607
4,391(329,222)
165,61253,735116,515251,224
4,676(282,383)
143,767

646,242
1,401,263
3,021,335
56,236(3,396,068)
1,729,008

Intangible assets:
Goodwill 
Other intangible assets 
Total intangible assets 

1,354
3,793
5,147

896
3,562
4,458

10,776
42,83853,614

Investments and other assets:
Investment securities (Notes 4 and 5) Deferred tax assets (Note 8) 
Other assets Allowance for doubtful accounts 
Total investments and other assets 

28,075
17,4279,320(3,398)51,42424,00815,2275,996(527)
44,704

288,731
183,127
72,111(6,338)537,631¥481,022¥414,885$4,989,597

Total assets 

20

2010

March 31,2011

(Millions of yen)

Liabilities and net assets
Current liabilities:
Short-term borrowings (Note 5) Current portion of long-term debt (Note 5) Notes and accounts payable – trade 
Income taxes payable Allowance for loss on sales of subsidiaries and affiliates’ stocks Other current liabilities 
Total current liabilities Long-term liabilities:
Long-term debt (Note 5) Accrued pension and severance costs (Note 7) Deferred tax liabilities on land revaluation surplus (Notes 8 and 10) 
Other long-term liabilities (Notes 5 and 8) 
Total long-term liabilities 
Total liabilities 
Net assets :Shareholders’ equity:
Common stock:
Authorized: 1,600,000,000 shares
Issued: 545,126,049 shares 
Additional paid-in capital Retained earnings Treasury stock, at cost
(1,071,589 shares in 2010 and 1,162,058 shares in 2011) 
Total shareholders’ equity Accumulated other comprehensive income:Net unrealized gains on securities (Note 4) Net unrealized gains on hedges (Note 1(n)) 
Revaluation surplus (Note 10) 
Foreign currency translation adjustments 
Total accumulated other comprehensive income 
Minority interests in consolidated subsidiaries 
Total net assets Contingent liabilities (Note 14)
Total liabilities and net assets 

2011(Thousands of
U.S. dollars)(Note 2)¥100,202
19,44086,3001,737
4,457
37,048249,184¥67,423
17,634
67,2682,550—
27,828
182,703$810,860
212,075
808,996
30,667—
334,672
2,197,270

105,596
26,770522
5,826
138,714387,898

108,638
16,438516
1,833
127,425
310,128

1,306,530
197,691
6,206
22,044
1,532,471
3,729,741

39,08525,42022,91939,085
11,17948,200470,054
134,444579,675

(179)

(192)

(2,309)87,24598,272

1,181,864

1,590
158
145
(386)
1,507
4,372
93,124

980
61
145
(723)
463
6,022
104,757

11,786734
1,744(8,695)
5,569
72,423
1,259,856¥481,022¥414,885$4,989,597

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

21

CONSOLIDATED STATEMENTS OF INCOME
Nippon Light Metal Company, Ltd. and consolidated subsidiaries

Year ended March 31,
2011

2010

(Millions of yen)

Net sales 
Cost of sales (Note 13) 
Gross profit 
Selling, general and administrative expenses (Note 13) 
Operating profit 
Non-operating income:Interest income Equity in earnings of affiliates 
Rental income Royalty income Other Total non-operating income Non-operating expenses:
Interest expense Amortization of transition obligation for employees’ retirement benefits (Note 7) 
Other Total non-operating expenses 
Ordinary profit Special gains:
Gain on reversal of accrued special retirement expenses 
Total special gains Special losses:
Loss on valuation of investments securities 
Loss on disposal of non-current assets 
Loss on impairment of fixed assets (Note 15) 
Loss on adjustments for adoption of accounting standard for asset retirement obligations Provision for loss on sales of subsidiaries and affiliates’ stocks Loss on transfer of subsidiaries and affiliates’ stocks (Note 15) 
Cost of corrective measures for product defects Additional retirement allowance for early retirement program 
Total special losses 
Income (loss) before income taxes and minority interests 
Income taxes (Note 8):
Current Deferred 
Income before minority interests 
Minority interests in net income (loss) of consolidated subsidiaries 
Net income Per share of common stock (Note 16):
Net income:Basic Diluted 
Cash dividends 
The accompanying notes are an integral part of these financial statements.

22

2011
(Thousands of
U.S. dollars)(Note 2)¥460,681
378,796
81,88574,212
7,673¥429,433
351,267
78,16653,442
24,724$5,164,558
4,224,498
940,060
642,718
297,342

120
1,218
654
276
2,212
4,480

97
290
719
255
1,575
2,936

1,166
3,488
8,647
3,067
18,94235,310

3,593
1,886
3,992
9,471
2,682

2,815
1,113
5,203
9,131
18,52933,854
13,38562,575
109,814
222,838

695
695

—
—

—
—

—
—
99
—
4,457
4,056
387
191
9,190
(5,813)

1,046
838
106
89
—
—
—
—
2,079
16,45012,58010,078
1,275
1,070
—
—
—
—
25,003
197,835

2,291
3,285
(9,684)
1,042(7,393)4,327
1,580
12,123(504)
1,083¥2,084 ¥11,040

39,507
12,531
52,038145,797
13,025$132,772(Yen)¥3.83 ¥20.29
3.63
—
—
2.00

(U.S. dollars)(Note 2)

$0.24—
0.02

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
Nippon Light Metal Company, Ltd. and consolidated subsidiaries

2010

Year ended March 31,
2011(Millions of yen)

Income before minority interests 
Other comprehensive income
Net unrealized gains (losses) on securities 
Net unrealized gains (losses) on hedges 
Foreign currency translation adjustments 
Equity of other comprehensive income of affiliates 
Total other comprehensive income Comprehensive income Attributable to:Shareholders of the parent 
Minority interests 

2011(Thousands of
U.S. dollars)(Note 2)

¥1,580¥12,123$145,797

1,184
1,150
63
349
2,746
¥4,326

(618)
(97)
(361)
(126)
(1,202)¥10,921(7,432)(1,167)(4,342)(1,515)(14,456)$131,341¥4,846(520)¥4,326¥9,996925¥10,921$120,217
11,124$131,341

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

23

CONSOLIDATED STATEMENTS OF CHANGES IN NET ASSETS
Nippon Light Metal Company, Ltd. and consolidated subsidiaries

Shareholders’ equity

Balance at March 31, 2009 
Net income 
Net increase in treasury stock 
Net unrealized gains on
securities (Note 4) Net unrealized gains on hedges 
Foreign currency translation
adjustments Net decrease in minority interests
in consolidated subsidiaries 
Balance at March 31, 2010 
Deficit disposition 
Net income 
Net increase in treasury stock 
Net unrealized losses on
securities (Note 4) Net unrealized losses on hedges 
Foreign currency translation
adjustments 
Net increase in minority interests
in consolidated subsidiaries 
Balance at March 31, 2011 

Commonstock

Additional
paid-in
capital¥39,085¥25,420

Retainedearnings¥20,835
2,084¥(170)¥374¥(991)¥145¥(783)(9)
1,216

39,08525,420(14,241)

22,91914,241
11,040

(179)

1,590

1,216
1,149

1,149

¥39,085¥11,179¥48,200

Additional
paid-in
capitalRetainedearnings$470,054 $305,713 $275,634(171,269) 171,269
132,772

Net increase in treasury stock 
Net unrealized losses on
securities (Note 4) Net unrealized losses on hedges 
Foreign currency translation
adjustments 
Net increase in minority interests

158

145

(386)

(13)
(610)

Commonstock¥(192)

¥980

¥61

¥145

24

(494)
93,124—
11,040
(13)

(337)

(337)

¥(723)

1,650
1,650¥6,022 ¥104,757$(2,153) $19,123$1,901$1,744$(4,642) $52,579 $1,119,953—
132,772(156)(7,337)(7,337)(1,167)(1,167)

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

(494)
4,372

Accumulated other comprehensive income
Minority
Net
Net
Foreign
Treasury
unrealized unrealized Revaluation currency interests in
Total
stock,
gains ongains onsurplustranslation consolidated
at costsecurities
hedges(Note 10) adjustments subsidiaries net assets(Thousands of U.S. dollars) (Note 2)(156)$470,054 $134,444 $579,675

397

(610)
(97)

(97)

(4,053)(4,053)$(8,695)

19,844
19,844$72,423 $1,259,856

in consolidated subsidiaries 

Balance at March 31, 2011 

¥4,866 ¥88,781
2,084
(9)

397

Shareholders’ equity

Balance at March 31, 2010 
Deficit disposition 
Net income Treasurystock,
at costAccumulated other comprehensive income
Minority
Net
Net
Foreignunrealized unrealized Revaluation currency interests ingains on gains (losses) surplus
translation consolidated Total net
assetssecurities on hedges(Note 10) adjustments subsidiaries(Millions of yen)$(2,309)$11,786$734$1,744

CONSOLIDATED STATEMENTS OF CASH FLOWS
Nippon Light Metal Company, Ltd. and consolidated subsidiaries

2010

Year ended March 31,
2011(Millions of yen)

Cash flows from operating activities
Income (loss) before income taxes and minority interests 
Depreciation and amortization 
Loss on valuation of investment securities 
Loss on disposal of non-current assets 
Loss on impairment of fixed assets 
Loss on adjustment for adoption of accounting standard for asset retirement obligations Provision for loss on sales of subsidiaries and affiliates’ stocks Loss on transfer of subsidiaries and affiliates’ stocks 
Cost of corrective measures for product defects Additional retirement allowance for early retirement program 
Gain on reversal of accrued special retirement expenses 
Increase (decrease) in allowance for doubtful accounts Increase (decrease) in accrued pension and severance costs Interest and dividend income Interest expense 
Equity in earnings of affiliates 
Increase in notes and accounts receivable – trade (Increase) decrease in inventories 
Increase in notes and accounts payable – trade 
Other Subtotal Interest and dividend income received Interest paid 
Payments for additional retirement payments 
Payments for corrective measures for product defects Payments for business restructuring 
Income taxes paid 
Net cash provided by operating activities 
Cash flows from investing activities
Payments into time deposits Proceeds from withdrawal of time assets 
Payments for purchases of fixed assets Proceeds from sales of fixed assets 
Payments for purchases of investment securities Proceeds from sales of investment securities 
Purchase of stocks of subsidiaries and affiliates Proceeds from sales of stocks of subsidiaries and affiliates 
Payments of loans receivable Collection of loans receivable Proceeds from sales of investments in subsidiaries resulting in change in scope of consolidation 
Other Net cash provided by (used in) investing activities 
Cash flows from financing activities
Net decrease in short-term borrowings Proceeds from long-term debt 
Repayment 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 financing activities 
Effect of exchange rate changes on cash and cash equivalents 
Net increase (decrease) in cash and cash equivalents Cash and cash equivalents at beginning of year 
Cash and cash equivalents at end of year (Note 3) 

2011
(Thousands of
U.S. dollars)(Note 2)

¥(5,813)
20,717
—
—
99
—
4,457
4,056
387
191
(695)
(244)
(402)
(325)
3,593
(1,218)(11,677)
11,361
7,474
2,075
34,036506(3,679)(2,764)(1,149)(312)(250)
26,388¥16,450
15,831
1,046
838
106
89
—
—
—
—
—
538
399
(311)
2,815
(290)
(3,959)(4,622)
1,104
1,009
31,043535(2,814)
(127)
(35)
—
(2,123)
26,479$197,835
190,391
12,58010,078
1,275
1,070
—
—
—
—
—
6,470
4,799
(3,740)33,854(3,488)(47,613)(55,586)
13,277
12,135373,337
6,434(33,842)(1,527)(421)—(25,532)
318,449(100)
119(15,043)
290
(38)
346
(797)
269
(268)
261
—
(831)
(15,792)(61)
69(13,444)
232
(205)
177
—
69
(15)
20,085(4,627)(1,316)
964

(734)
830
(161,684)
2,790(2,465)
2,129
—
830
(180)
241,551(55,646)(15,827)
11,594(8,654)31,005(24,405)
1,970(9,950)
2,000
(16)
(13)
(817)
(8,880)(74)
1,642
44,003¥45,645(32,359)
23,561(21,072)
—
—
—
(7)
(77)
(772)
(30,726)(236)(3,519)45,645¥42,126(389,164)
283,355(253,422)
—
—
—
(84)
(926)
(9,284)(369,525)(2,839)(42,321)548,948$506,627

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

25

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Nippon Light Metal Company, Ltd. and consolidated subsidiaries

1. Significant Accounting Policies(a) Basis of presentation
The accompanying consolidated financial statements of Nippon Light Metal Company, Ltd. (the “Company”) and its consolidated subsidiaries areprepared on the basis of accounting principles generally accepted in Japan, which are different in certain respects as to the application anddisclosure 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.
Effective April 1, 2010, the Company and its consolidated subsidiaries adopted the accounting standard, the Accounting Standards Board ofJapan (“ASBJ”) Statement No. 16, “Accounting Standard for Equity Method of Accounting for Investments” and PITF No. 24, “Practical Solution
on Unification of Accounting Policies Applied to Associates Accounted for Using the Equity Method” released on March 10, 2008 and made thenecessary adjustments on the consolidated financial statements. The effect of this change for the year ended March 31, 2011 was insignificant.
(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.

26

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS(f) Investment securities
Securities other than equity securities issued by subsidiaries and affiliates are classified into held-to-maturity securities or available-for-salesecurities.
Held-to-maturity securities are stated at amortized cost. Available-for-sale securities for which market quotations are available are stated at fairvalue with net unrealized gains or losses being included in net assets, net of the related taxes. Available-for-sale securities for which market
quotations are not available are stated at cost. Realized gains and losses on sales are determined using the average cost method and are included
in net income for the year.
In cases where the fair value of held-to-maturity securities or available-for-sale securities has declined significantly and such impairment isother than temporary, such securities are written down to fair value and the resulting losses are charged to income for the year.
(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) Allowance for loss on sales of subsidiaries and affiliates’ stocks
In accordance with the decision to transfer all stocks of Shin Nikkei Co., Ltd, to JS Group Corporation, the amount of the estimated loss is recorded
as “Allowance for loss on sales of subsidiaries and affiliates’ stocks” during the year ended March 31, 2010.
(i) 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.
Effective April 1, 2010, the Company has changed its method of accounting for depreciation of property, plant and equipment (excluding
buildings) of the Shimizu Plant, the Kambara Chemical Plant, the Nagoya Plant, the Container Department of the Niigata Plant, and certain
leased assets for which the declining-balance method had been used in prior years, to the straight-line method. In addition, effective April 1, 2010,
certain of its domestic consolidated subsidiaries have also changed their method of accounting for depreciation from the declining-balancemethod to the straight-line method.
The Company has undertaken an investment to make significant enhancements to the manufacturing process at the Shimizu Plant. The
Company took this opportunity to review facility characteristics and equipment usage on a company-wide basis in accordance with changes in theeconomic environment in recent years. As a result of this review, the Company judged that the straight-line method provides for a more accurate
allocation of depreciation, because property, plant and equipment are expected to be utilized stably over their estimated useful lives, and operatinglevels are not expected to change drastically. Therefore, the Company and its consolidated subsidiaries have changed the method of accounting fordepreciation for these assets from the declining-balance method to the straight-line method in order to realize a more appropriate periodic
allocation of costs.
The effect of this change for the year ended March 31, 2011 was to increase operating profit, ordinary profit, and income before income taxes
and minority interests by ¥1,148 million ($13,806 thousand) as compared to the amounts which would have been recorded under the previous
method.
(j) 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.
(k) Accrued pension and severance costs
Accrued pension and severance costs for employees represent the projected benefit obligation in excess of the fair value of the plan assets, except forunrecognized transition obligation and unrecognized actuarial gain or loss. Prior service cost is being amortized as incurred mainly by thestraight-line method over the period of 15 years which is shorter than the average remaining number of years of service of the employees.
Unrecognized transition obligation is amortized by the straight-line method over a period of 12 years and unrecognized actuarial gain or loss isamortized by the declining-balance method over a period of 12 years from the year following that in which it arises, except for unrecognized costswith respect to employees who retired under the early retirement program which were fully amortized at the time of the employees’ retirement.

27

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS(l) 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 without options to transfer ownership of the leased assets to the lessee before April 1, 2008 are permitted to be accounted for as operatingleases. In addition, finance leases 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.
(m) 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.
(n) 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.
(o) Research and development costs
Research and development costs are charged to income as incurred.
(p) 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.
(q) 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.
(r) Reclassifications
Certain reclassifications of previously reported amounts have been made to conform them to the current year’s classifications.

28

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS(s) Asset retirement obligations
Effective April 1, 2010, the Company and its consolidated subsidiaries adopted the accounting standard, ASBJ Statement No. 18, “AccountingStandard for Asset Retirement Obligations” and ASBJ Guidance No. 21, “Guidance on Accounting Standard for Asset Retirement Obligations”
released on March 31, 2008.
The effect of this change for the year ended March 31, 2011 was nothing for operating profit and ordinary profit, and was to decrease income
before income taxes and minority interests by ¥89 million ($1,070 thousand) as compared to the amounts which would have been recorded under
the previous method.
(t) Business combinations
Effective April 1, 2010, the Company and its consolidated subsidiaries adopted the accounting standard, ASBJ Statement No. 21, “AccountingStandard for Business Combinations,” ASBJ Statement No. 22 “Accounting Standard for Consolidated Financial Statements,” ASBJ Statement No.
23, “Partial amendments to Accounting Standard for Research and Development Costs,” ASBJ Statement No. 7 (Revised 2008), “Revised
Accounting Standard for Business Divestitures,” ASBJ Statement No. 16 (Revised 2008), “Revised Accounting Standard for Equity Method of
Accounting for Investments,” and ASBJ Guidance No. 10 (Revised 2008) “Revised Guidance on Accounting Standard for Business Combinations
and Accounting Standard for Business Divestitures” released on December 26, 2008.
Effective April 1, 2010, the Company and its consolidated subsidiaries have changed their method for evaluation of assets and liabilities of
consolidated subsidiaries from partial fair value method to full fair value method. The effect of this change at March 31, 2011 was to increase“Land” by ¥961 million ($11,557 thousand), increase “Accrued pension and severance costs” by ¥35 million ($421 thousand), increase “Other
long-term liabilities” by ¥376 million ($4,522 thousand), and increase “Minority interests in consolidated subsidiaries” by ¥550 million ($6,615
thousand) as compared to the amounts which would have been recorded under the previous method.
(u) Comprehensive income
Effective April 1, 2010, the Company and its consolidated subsidiaries adopted the accounting standard, ASBJ Statement No. 25, “AccountingStandard for Presentation of Comprehensive Income” released on June 30, 2010. “Accumulated other comprehensive income” and “Total
accumulated other comprehensive income” at March 31, 2010 on the consolidated balance sheets were presented as “Valuation and translation
adjustments” and “Total valuation and translation adjustments” under the previous method.
2. U.S. Dollar Amounts
The rate of ¥83.15 = U.S.$1, the approximate exchange rate prevailing on March 31, 2011, 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.
3. 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, 2010 and 2011 is summarized as follows:
2011

2010
(Millions of yen)

Cash and deposits Time deposits with maturities in excess of 3 months 
MMF included in “Other current assets” Cash and cash equivalents ¥45,843(198)—¥45,645¥42,073(113)
166¥42,126

2011(Thousands of
U.S. dollars)$505,989(1,359)1,997$506,627

29

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

4. 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, 2010 and 2011 were as follows:
2011

2010

2011

(Millions of yen)

Cost 
Unrealized gains 
Unrealized losses 
Carrying amount (Thousands of
U.S. dollars)¥2,842
1,966(272)¥4,536¥3,592
2,829(137)¥6,284$34,179
23,644(3,271)$54,552(b) Sales of available-for-sale securities
The realized gains on sales of available-for-sale securities for the years ended March 31, 2010 and 2011 were as follows:
2011

2010

2011

(Millions of yen)

Sales proceeds 
Realized gains on sales 
Realized losses on sales (Thousands of
U.S. dollars)

¥177
1
—

¥346
212
0

$2,12912—

5. Short-Term Borrowings and Long-Term Debt
Short-term borrowings at March 31, 2011 bore interest at annual rates ranging from 0.30% to 9.36% and mainly consisted of bank loans andshort-term notes maturing at various dates within one year.
Long-term debt at March 31, 2010 and 2011 comprised the following:
2011

2010

2011

(Millions of yen)

Loans, principally from banks and insurance companies due from 2010 to 2018with interest rates ranging from 0.90% to 5.94%:
Secured 
Unsecured Loans, principally from banks and insurance companies due from 2011 to 2018with interest rates ranging from 0.84% to 6.45%:
Secured 
Unsecured 
Unsecured 1.03% bonds due September 30, 2014, redeemable before due date Unsecured 1.50% bonds due June 1, 2017, redeemable before due date 
Zero coupon convertible bonds due September 30, 2016 (*1) Capital lease obligations due from 2010 to 2029 with interest rates ranging from
1.97% to 7.20% Capital lease obligations due from 2011 to 2029 with interest rates ranging from
1.45% to 7.20% Less: portion due within one year 
Total long-term debt (Thousands of
U.S. dollars)¥20,684
77,736

¥—
—

$—
—

—
—
2,000
558
20,063

16,62084,1642,000
499
20,054

199,880
1,012,195
24,053
6,001
241,178

3,995

—

—

—
125,036(19,440)¥105,596

2,935
126,272(17,634)¥108,638

35,2981,518,605(212,075)$1,306,530(*1) The details of the zero coupon convertible bonds due September 30, 2016 are summarized as follows:
Stock type to be issued: Issue price per stock acquisition right: Initial exercise price: 
Total issue price: Exercisable period of stock acquisition rights: 

30

Common stockNone¥406 per share¥20,100 million
From August 4, 2006 to September 16, 2016

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

A summary of assets pledged as collateral for short-term borrowings and long-term debt at March 31, 2011 is as follows:
Cash and deposits Property, plant and equipment 
Investment securities 
Other intangible assets (Millions of yen)(Thousands of
U.S. dollars)¥
11
41,6217935$
132
500,553950
421(Millions of yen)(Thousands of
U.S. dollars)¥ 17,634
21,641
21,556
21,341
13,53230,512¥126,216$ 212,074
260,265259,242
256,657
162,742366,951$1,517,931

The aggregate annual maturities of long-term debt outstanding at March 31, 2011 are summarized as follows:
Years ending March 31,

2012 
2013 
2014 
2015 
2016 
Thereafter 

6. 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, 2010 and 2011 and estimated fair value are as
follows:
2010
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 *1 Liabilities are shown in parenthesis.
*2 The current portion of long-term borrowings is included in long-term borrowings.

¥45,843
136,644¥45,843
136,644

¥ —
—

3,021
6,284
(86,300)(100,202)(22,621)(98,420)
269

1,366
6,284
(86,300)(100,202)(20,256)(98,204)269(1,655)
—
—
—
2,365
216
—

31

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

2011
Carrying Value *1

Estimated Fair Value *1

Difference(Millions of yen)

(1) Cash and deposits ¥42,073(2) Notes and accounts receivable-trade 
115,204(3) Investment securities
Stocks of subsidiaries and affiliates 
3,070
Other securities 4,370(4) Notes and accounts payable-trade (67,268)(5) Short-term borrowings *2 
(67,423)(6) Bonds (22,553)(7) Long-term borrowings *2 (100,784)
101(8) Derivatives *1 Liabilities are shown in parenthesis.
*2 The current portion of long-term borrowings is included in long-term borrowings.

¥42,073
115,204

¥ —
—

1,464
4,370
(67,268)(67,423)(21,213)(101,519)
101(1,606)
—
—
—
1,340
(735)
—

2011
Carrying Value *1

Estimated Fair Value *1

Difference(Thousands of U.S. dollars)(1) Cash and deposits $505,989$505,989$ —(2) Notes and accounts receivable-trade 
1,385,496
1,385,496—(3) Investment securities
Stocks of subsidiaries and affiliates 
36,921
17,607(19,314)
Other securities 52,55652,556—(4) Notes and accounts payable-trade (808,996)(808,996)—(5) Short-term borrowings *2 (810,860)(810,860)—(6) Bonds (271,232)(255,117)
16,115(7) Long-term borrowings *2 
(1,212,075)(1,220,914)(8,839)
1,215
1,215
—
(8) Derivatives *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 4“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. In addition, zero coupon convertible bonds due September 30,
2016 are included in Bonds.
(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 12, “Derivatives” of the notes the consolidated financial statements.
2. Stocks of subsidiaries and affiliates of ¥7,642 million and ¥6,555 million ($78,833 thousand) as of March 31,2010 and 2011 without market
prices are not included in “(3) Investment securities” because forward cash flows cannot be estimated, and it is extremely difficult to determine thefair value.
3. Unlisted stocks of ¥11,128 million and ¥10,013 million ($120,421 thousand) as of March 31, 2010 and 2011 are not included in “(3)Investment securities” because no quoted market prices are available, forward cash flows cannot be estimated, and it is extremely difficult tomeasure the fair value.

32

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

4. The redemption schedule for receivables and marketable securities with maturities at March 31, 2010 and 2011 is as follows:
Due within
one year

Cash and deposits Notes and accounts receivable-trade 
Investment securities
Held-to-maturity securities
Government and municipal bonds 
Corporate debt securities 

¥—
—

¥—
—

¥—
—

13
—
¥182,429

23
10
¥ 33

9
—
¥ 9

3
—
¥ 3

2011
Due after one year but
Due after five years but
within five years
within ten years(Millions of yen)

Due after
ten years¥ 41,991
115,204

¥—
—

¥—
—

¥—
—

13
10
¥157,218

12
—
¥ 12

9
—
¥ 9

1
—
¥ 1

Due within
one year

Cash and deposits Notes and accounts receivable-trade 
Investment securities
Held-to-maturity securities
Government and municipal bonds 
Corporate debt securities 

Due after
ten years¥ 45,772
136,644

Due within
one year

Cash and deposits Notes and accounts receivable-trade 
Investment securities
Held-to-maturity securities
Government and municipal bonds 
Corporate debt securities 

2010
Due after one year but
Due after five years but
within five years
within ten years(Millions of yen)

2011
Due after one year but
Due after five years but
within five years
within ten years(Thousands of U.S. dollars)

Due after
ten years$505,003
1,385,496

$—
—

$—
—

$—
—

156
120
$1,890,775

144
—
$144

108
—
$108

12
—
$12

5. The redemption schedule for bonds and long-term borrowings at March 31, 2010 and 2011 is as follows:
Due within
one year

Bonds Long-term borrowings ¥ —18,406¥18,406
Due within
one year

Bonds Long-term borrowings ¥—16,979¥16,979
Due within
one year

Bonds Long-term borrowings $—204,197$204,197

2010
Due after one year but
Due after five years but
within five years
within ten years(Millions of yen)

¥ 2,000
67,697¥69,697¥20,558
12,317¥32,8752011
Due after one year but
Due after five years but
within five years
within ten years(Millions of yen)¥2,000
74,566¥76,566¥20,553
9,239¥29,7922011
Due after one year but
Due after five years but
within five years
within ten years(Thousands of U.S. dollars)$24,053
896,765$920,818$247,180
111,112$358,292

Due after
ten years¥——¥—
Due after
ten years¥——¥—
Due after
ten years

$—
—
$—

33

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

7. Retirement Benefit Plans
The Company and its domestic consolidated subsidiaries have defined benefit tax-qualified pension plans, 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 theconditions under which termination of employment occurs. Certain foreign subsidiaries have defined contribution pension plans.
In addition, from April 1, 2010, the Company and some its domestic consolidated subsidiaries have changed defined benefit tax-qualified
pension plans into defined benefit corporate pension plans.
Accrued pension and severance costs at March 31, 2010 and 2011 are summarized as follows:
2011

2011
(Thousands of
U.S. dollars)¥(37,392)
16,634(20,758)
1,112
3,667
(459)
¥(16,438)$(449,693)
200,048(249,645)
13,373
44,101(5,520)$(197,691)

2010(Millions of yen)

Projected benefit obligation 
Fair value of plan assets 
Unrecognized transition obligation 
Unrecognized actuarial loss 
Unrecognized prior service cost 
Accrued pension and severance cost ¥(52,124)
20,033(32,091)
3,414
2,110
(203)
¥(26,770)

The net pension and severance costs related to retirement benefits for the years ended March 31, 2010 and 2011 are summarized as follows:
2011

2010

2011
(Thousands of
U.S. dollars)(Millions of yen)

Service cost Interest cost Expected return on plan assets 
Amortization of transition obligation *1 
Amortization of unrecognized actuarial gain 
Amortization of prior service costs 
Net pension and severance costs ¥2,230
683
(358)
1,113
614
(56)
¥4,226¥3,042
1,151
(403)
2,243
922
—
¥6,955$26,8198,214(4,305)
13,385
7,384(673)$50,824*1	The above figures include ¥357 million for the year ended March 31, 2010, in respect of employees who retired during the year ended March 31, 2010.
This amount was fully amortized at the time of employees’ retirement.
*2	In addition to *1 above, additional benefits of ¥679 million under the early retirement program were granted for the year ended March 31, 2010. The
total amounts of all these costs are included within special losses as “Loss on transfer of subsidiaries and affiliates’ stocks” and “Additional retirement
allowance for early retirement program” for the year ended March 31, 2010.

Assumptions used in calculating the above information are summarized as follows:
2011

2010

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 
Period of amortization of transition obligation 

2.5%
Mainly 2.5%
Straight-line basis—
Mainly 12 years
12 years

2.0%
Mainly 2.5%
Straight-line basis
Mainly 15 years
Mainly 12 years
12 years

8. Income Taxes
The Company and its domestic consolidated subsidiaries are subject to a number of different taxes based on income which, in the aggregate,
indicate a statutory income tax rate of approximately 40.7% for the years ended March 31, 2010 and 2011.
Tax losses can be carried forward for a seven-year period to be offset against future taxable income.
Significant components of deferred tax assets and liabilities at March 31, 2010 and 2011 were as follows:
2011

2010
(Millions of yen)

Deferred tax assets:
Tax loss carryforwards 
Accrued pension and severance costs 
Accrued bonuses 
Allowance for doubtful accounts 
Loss on disposal of fixed assets 
Loss on impairment of fixed assets 
Other Total deferred tax assets 
Valuation allowance 
Total deferred tax assets, net of valuation allowance 34¥28,537
10,193
2,255
3,347
1,310
5,882
10,54862,072(38,589)
23,483¥21,495
5,945
2,220
2,168
1,932
—
10,50244,262(19,482)
24,7802011(Thousands of
U.S. dollars)$258,509
71,497
26,69926,07323,235—
126,302532,315(234,299)
298,016

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

2011

2010

2011

(Millions of yen)

Deferred tax liabilities:
Negative Goodwill Revaluation gain on subsidiaries 
Unrealized gain on securities 
Other Total deferred tax liabilities 
Net deferred tax assets —(900)(1,048)(520)(2,468)¥21,015(Thousands of
U.S. dollars)(1,844)(1,276)(709)(915)(4,744)¥20,036(22,177)(15,346)(8,527)(11,004)(57,054)$240,962

Deferred tax assets and liabilities that comprise net deferred tax assets are included in the accompanying consolidated balance sheets as follows:
2011

2010

2011

(Millions of yen)

Deferred tax assets (current assets) Deferred tax assets (investments and other assets) 
Other long-term liabilities ¥ 4,159
17,427(571)(Thousands of
U.S. dollars)¥ 5,367
15,227(558)$ 64,546
183,127(6,711)

In addition to the above, the Company recorded deferred tax liabilities on land revaluation surplus of ¥522 million and ¥516 million ($6,206
thousand) at March 31, 2010 and 2011 separately.
Due to the recording of loss before income taxes and minority interests, the reconciliations of the differences between the statutory income tax
rate and the effective income tax rate for the year ended March 31, 2010 have been omitted.
A reconciliation of the differences between the statutory income tax rate and the effective income tax rate for the year ended March 31, 2011 issummarized as follows:
2011

40.7%

Statutory income tax rate Increase (decrease) in taxes resulting from:
Decrease of valuation allowance 
Permanent non-deductible expenses 
Other Effective income tax rate (11.9)
1.3
(3.8)
26.3%

9. Appropriations of Retained Earnings
The following appropriation was approved at the ordinary general meeting of shareholders of the Company held on June 29, 2011:(Millions of yen)(Thousands of U.S. dollars)¥1,088$13,085

Cash dividends 

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.
10. 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 anaffiliate. As a result of this revaluation, the Company recognized its portion of the affiliate’s revaluation surplus and the related deferred tax
liabilities.
11. Lease Transactions
The Company and its consolidated subsidiaries charge to income periodic lease payments for finance leases that do not have options to transfer
ownership of the leased assets to the lessee. Such periodic lease payments under finance lease contracts totaled ¥842 million and ¥355 million($4,269 thousands) for the years ended March 31, 2010 and 2011, respectively. Future lease payments under finance leases and non-cancelable
operating leases, including interest, at March 31, 2010 and 2011 are summarized as follows:
2011

2010
(Millions of yen)

Lease payments:
Due within one year 
Due after one year 

¥ 905
1,109
¥2,014

2011(Thousands of
U.S. dollars)

¥475
463
¥938

$ 5,713
5,568$11,28135

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Leased assets under finance leases, where lessors retain ownership of the leased assets, are accounted for as operating leases. If such leases had
been capitalized, then the cost of the assets, and the related accumulated depreciation (amortization), accumulated impairment loss and net
amount at March 31, 2010 and 2011 would have been as follows:
2010
Cost

Accumulated
depreciation/amortization¥4,230426¥4,656¥2,373298¥2,671

Accumulated
impairment loss

Netamount(Millions of yen)

Machinery and equipment 
Intangible assets 

¥7
—
¥7

¥1,850128¥1,9782011
Cost¥2,07964¥2,143

Machinery and equipment 
Intangible assets 

Accumulated
depreciation/
Accumulated
amortization
impairment loss
(Millions of yen)

¥1,18847¥1,235

¥0
—
¥0

Net
amount

¥891
17
¥908

Net
amount(Thousands of
U.S. dollars)$10,716204$10,920

Depreciation (amortization) for these leased assets computed using the straight-line method over the respective lease periods would have been
¥842 million and ¥355 million ($4,269 thousand) for the years ended March 31, 2010 and 2011, respectively.
Depreciation for assets leased to other companies computed using the straight-line method over the respective lease periods would have been
¥38 million for the year ended March 31, 2010.
12. 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.
13. Research and Development Costs
Research and development costs charged to cost of sales and selling, general and administrative expenses for the years ended March 31, 2010 and2011 were ¥5,085 million and ¥4,798 million ($57,703 thousand), respectively.
14. Contingent Liabilities
Contingent liabilities at March 31, 2011 amounted to ¥379 million ($4,558 thousand) for loans guaranteed and other guarantees given in theordinary course of business, including ¥9 million ($108 thousand) shared by other joint guarantors.
15. Loss on Impairment of Fixed Assets
The Company and its consolidated subsidiaries recognized ¥2,814 million of loss on impairment of fixed assets as “Loss on transfer of subsidiaries
and affiliates’ stocks,” of which the significant items for the year ended March 31, 2010, are presented below:
2010

Location

Funabashi City, Chiba Prefecture
Tochigi City, Tochigi Prefecture

Major use

Idle property
Plant site

Asset category

Land
Land
Buildings and structures(Millions of yen)

¥1,520741
352

Since land for the company housing in Funabashi City, Chiba Prefecture has become idle and shows signs of impairment, the Company and its
consolidated subsidiaries recognized ¥1,520 million of loss on impairment, upon deeming such assets to be impaired. In addition, since a plantsite in Tochigi City, Tochigi Prefecture is planned to be reduced and its redundant building is to be leased out in accordance with the change ofbusiness environment, it shows signs of impairment. Therefore, the Company and its consolidated subsidiaries recognized ¥1,093 million of loss on
impairment.

36

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

16. Net Income Per ShareA reconciliation of the differences between basic and diluted net loss per share for the years ended March 31, 2010 and 2011 is summarized asfollows:
2010

Net
income(Millions of yen)

Weighted
averagenumber ofshares(Thousands of shares)¥2,0842,084(3)¥2,081

Net income Basic net income Effect of convertible bonds 
Diluted net income Netincomeper share
(Yen)

¥3.83

544,094
28,571
572,665

¥3.63
2011

Net income Basic net income Netincome(Millions of yen)

Weighted
averagenumber ofshares(Thousands of shares)¥11,040¥11,040¥544,012

Net income per share(Yen)(U.S. dollars)¥20.29$0.24

17. Segment Information
The Company and its consolidated subsidiaries operate within four distinct business segments mainly in Japan: “Aluminum ingot and chemicals,”“Aluminum sheet and extrusions,” “Fabricated products and others” and “Building materials.”
The “Aluminum ingot and chemicals” segment supplies aluminum primary and remelted ingot used for various industrial materials, andproduces a wide spectrum of aluminas 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 aluminum foil, aluminum powder, wing bodies fortransport vehicles, automobile components and electronic materials. The “Building materials” segment produces a wide range of materials
including sashes, curtain walls, and doors and fences for commercial and residential construction. “Corporate items” include unallocatedoperating expenses and corporate assets not specifically related to business segments.
Information by business segment for the year ended March 31, 2010 was as follows:

Sales:
Customers Intersegment 
Total Operating expenses 
Operating profit (loss) 
Total assets 
Depreciation and amortization 
Loss on impairment of fixed assets Capital expenditures *1 Corporate items of ¥2,603 million are included.

Aluminumingot andchemicals

Aluminum
sheet andextrusions

2010
Fabricatedproducts
Buildingand others
materials(Millions of yen)

Eliminationor
corporate items

Consolidated¥88,141
41,552
129,693
126,268¥3,425¥104,610¥4,744¥99¥4,287¥54,869
18,42473,29374,010¥(717)¥60,821¥4,280¥—¥2,362¥198,249
14,544
212,793
203,846¥8,947¥211,683¥8,497¥—¥5,812¥—(76,461)(76,461)(73,858)*1¥(2,603)¥9,290*2
¥91
¥—
¥74

¥460,681—
460,681453,008¥7,673¥481,022¥20,717¥2,913¥14,197¥119,422
1,941
121,363
122,742¥(1,379)¥94,618¥3,105¥2,814¥1,662*2 Corporate items of ¥32,969 million are included.

As more than 90% of sales for the year ended March 31, 2010 were made in Japan, the disclosure of geographical segment information has
been omitted.
Export sales and operations outside Japan for the year ended March 31, 2010 were summarized as follows:
2010
Export sales andoperations
outside Japan

¥56,269

Consolidated
net sales(Millions of yen)

¥460,681

Percentage ofconsolidated
net sales

12.2%
37

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Effective April 1, 2010, the Company and its consolidated subsidiaries adopted the accounting standard, ASBJ Statement No. 17, “Disclosuresabout Segments of an Enterprise and Related information” released on March 21, 2008 and ASBJ Guidance No. 20, “Guidance on the AccountingStandard for Disclosures about Segments of an Enterprise and Related information” released on March 21, 2008.
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 aluminas 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.
Information by reportable segment for the years ended March 31, 2010 and 2011 was as follows:
Aluminumingot andchemicals

2010
The reportable segments
Aluminum
FabricatedAluminum
sheet andproducts
foil, powder
extrusions
and others
and paste(Millions of yen)

Building
materials

Adjustment(Note)

Consolidated

Net sales¥460,681
Customers ¥88,141¥58,399¥106,060¥92,401¥115,680¥——41,552
19,02615,003602
725(76,908)
Intersegment 
460,681
Total 129,693
77,425
121,063
93,003
116,405(76,908)¥3,425¥(362) ¥3,849¥5,140¥(1,776) ¥(2,603) ¥7,673
Operating profit (loss) ¥481,022
Segment assets ¥104,610¥65,208¥127,689¥96,539¥76,623¥10,353¥20,717
Depreciation and amortization ¥4,744¥4,546¥3,898¥4,637¥2,801¥91¥616
Amortization of goodwill 
¥—
¥—
¥—
¥616
¥—
¥—
¥2,913
Loss on impairment of fixed assets 
¥99
¥—
¥—
¥—
¥2,814¥—¥14,197
Capital expenditures ¥4,287¥2,577¥1,823¥3,992¥1,444¥74(Note). Adjustments amounts are as follows.
1) Adjustments of ¥(2,603) million in segment profit are corporate expenses.
2)	Adjustments of ¥10,353 million in segment assets include ¥(22,616) million in the elimination of transactions between segments and¥32,969 million in corporate assets.
3) Adjustments of ¥91 million in depreciation and amortization expenses have primarily to do with corporate assets.
4) Adjustments of ¥74 million for capital expenditures are the increase in corporate assets.

Aluminumingot andchemicals

Net sales
Customers Intersegment 
Total Operating profit (loss) Segment assets 
Depreciation and amortization 
Amortization of goodwill 
Loss on impairment of fixed assets Capital expenditures 

38¥107,397
45,504
152,901¥6,783¥104,354¥3,506¥—¥106¥3,374

2011
The reportable segments
Aluminum
FabricatedAluminum
sheet andproducts
foil, powder
extrusions
and others
and paste(Millions of yen)

¥69,458
19,87389,331¥4,604¥70,818¥3,694¥—¥—¥3,358¥136,095
8,728
144,823¥5,738¥121,057¥3,812¥—¥—¥2,465¥116,483
698
117,181¥10,245¥104,279¥4,749¥442¥—¥6,062

Adjustment(Note 1)

Consolidated¥—(74,803)(74,803)¥(2,646)¥14,377
¥70
¥—
¥—
¥104

¥429,433—
429,433¥24,724¥414,885¥15,831
¥442
¥106
¥15,363

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Aluminumingot andchemicals

Net sales
Customers Intersegment 
Total Operating profit (loss) Segment assets 
Depreciation and amortization 
Amortization of goodwill 
Loss on impairment of fixed assets Capital expenditures $1,291,605
547,252
1,838,857$81,575$1,255,009$42,165$—$1,275$40,577

2011
The reportable segments
Aluminum
FabricatedAluminum
sheet andproducts andfoil, powder
extrusions
othersand paste(Thousands of U.S. dollars)$835,334
239,002
1,074,336$55,370$851,690$44,426$—$—$40,385$1,636,741
104,967
1,741,708$69,008$1,455,887$45,845$—$—$29,645

Adjustment(Note 1)

$1,400,878
8,394
1,409,272$123,211$1,254,107$57,114$5,316$—$72,904$—(899,615)(899,615)$(31,822)$172,904
$842
$—
$—
$1,251

Consolidated$5,164,558—
5,164,558$297,342$4,989,597$190,391$5,316$1,275$184,762(Note 1). Adjustments amounts are as follows.
1) Adjustments of ¥(2,646) million ($(31,822) thousands) in segment profit are corporate expenses.
2)	Adjustments of ¥14,377 million ($172,904 thousands) in segment assets include ¥(15,828) million ($(190,355) thousands) in theelimination of transactions between segments and ¥30,205 million ($363,259 thousands) in corporate assets.
3) Adjustments of ¥70 million ($842 thousands) in depreciation and amortization expenses have primarily to do with corporate assets.
4) Adjustments of ¥104 million ($1,251 thousands) for capital expenditures are the increase in corporate assets.
(Note 2). Effective April 1, 2010, the Company and its consolidated subsidiaries have abolished the “Building materials” segment, because thissegment became insignificant as a result of the transfer of all stocks of Shin Nikkei Co., Ltd. to JS Group Corporation. Therefore, Riken Light Metal
Industrial Co., Ltd. and Nikkei Kenzai Kogyo Co., Ltd. which had been included in the “Building materials” segment are included in the“Aluminum sheet and extrusions” segment and the “Fabricated products and others” segment, respectively.
Geographical sales for the year ended March 31, 2011 were summarized as follows:
2011
Other
(Millions of yen)Japan

¥349,321

Japan¥80,1122011
Other(Thousands of U.S. dollars)

Total¥429,433

Total$4,201,094$963,464 $5,164,558
As more than 90% of property, plant and equipment at March 31, 2011 were in Japan, the disclosure of geographical property, plant andequipment information has been omitted.

39

REPORT OF INDEPENDENT AUDITORS40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: 1-815-740-3037
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 M.C. 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%)
Nonfemet International(China-Canada-Japan)
Aluminium Co., Ltd.
Shenzhen, China
Phone: 86-755-2661-1569
Extrusion(18%)

Southeast Asia
Nikkei MC Aluminum(Thailand) Co., Ltd.
ThailandPhone: 66-38-522296
Aluminum alloys(79%)

Nikkei Siam Aluminium
LimitedThailandPhone: 66-2-529-0136
Aluminum sheet, foil
(100%)
Nikkei Singapore
Aluminium Pte. Ltd.
Singapore
Phone: 65-6222-8991
Trading and marketing(100%)
Thai Nikkei Trading Co., Ltd.
ThailandPhone: 66-2726-9001
Aluminum alloys, scrap(100%)

Toyal Zhaoqing Co., Ltd.
Zhaoqing, China
Phone: 86-758-3602-080
Aluminum paste(90%)
Toyo Aluminium Ekco Shoji(Shanghai) Co., Ltd.
Shanghai, China
Phone: 86-21-6125-0578
Trading and marketing(100%)
Sam-A Aluminium Co., Ltd.
Seoul, Korea
Phone: 86-2-3458-0600
Aluminum foil, paste(33%)(As of July 31, 2011)41

DIRECTORS AND OFFICERS

Directors

Officers

Hiroyasu Hiruma

President
Representative Director

President
Chief Executive Officer

Takashi Ishiyama

Takashi Ishiyama

General Manager of Personnel Dept.,
In Charge of Safety, Supervision ofPanel Products Dept.

Directors

Executive vice president

Tsuyoshi Nakajima
Makoto Fujioka
Mitsuru Ishihara
Tadakazu Miyauchi
Ichiro Okamoto
Atsushi Inoue

Tsuyoshi Nakajima

President and Representative Directorof Nikkeikin Kakoh Kaihatsu Holdings
Company, Ltd.

Hiroshi Yamamoto
President and CEO of Toyo Aluminium
K.K.

Koji Ueno
President and CEO of Nippon FruehaufCo., Ltd.

Hidetane Iijima*
Kuniya Sakai** Outside Director

Auditors
Standing Statutory Auditors

Hideki Nakamura
Tadashi Asahi
Outside Statutory Auditors

Yuzuru Fujita
Katsuo Wajiki
Yasuo Yuki

Supervision of General Affairs Dept.,
IR & Public Relations, Accounting &Finance Dept., Group Metal Center andPurchasing & Logistics Dept.
Senior Executive Officers

Makoto Fujioka
General Manager of CSR Group, In
Charge of Compliance, Supervision of
Auditing Office and Legal Dept., In
Charge of Environment and SpecificProjects for Group Sales, Supervisionof Osaka/Nagoya Regional Office

Mitsuru Ishihara
Supervision of Chemicals Div. andRolled Product Div.

Tadakazu Miyauchi

Takashi Hara
Divisional Manager of Metal & Alloyand Shaped Parts

Yasunori Okamoto
General Manager of Planning Dept., InC h a r g e o f O v e r s e a s S t r a t e g y,
Supervision of Tomakomai Complex

Hirokazu Takatoku
General Manager of Legal Dept.,
Deputy General Manager of CSRGroup, General Manager ofCompliance Office, CSR Group

Kotaro Yasuda
Divisional Manager of Chemicals

Minoru Sotoike
General Manager of Accounting &Finance Dept.

Supervision of Heat Exchanger Div.,
Metal & Alloy and Shaped Parts Div.
and Group Casting Center

Yasuhiro Sai

Executive Officers

Shinichi Shinohara

Ichiro Okamoto
General Manager of Technology &Development Group, Supervision ofStrategic Committee for ProductCommercialization and Business
Development, General Manager ofCentral Product Safety & Quality
Assurance Div.

Toshihide Murakami
Supervision of Kambara Complex,
Divisional Manager of Capacitor Foil,
Supervision of Landscape Products Div.

42

Officers

Divisional Manager of Rolled Products

Divisional Manager of Heat Exchanger

Hideki Amimura
General Manager of Group Metal
Center and Purchasing & Logistics
Dept.

Takayuki Tsuchida
General Manager of Group Technology
Center of Technology & Development
Group(As of July 1, 2011)

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,

Head Office

Major Shareholders

NYK Tennoz Building
2-20, Higashi-Shinagawa 2-chome
Shinagawa-ku, Tokyo 140-8628, Japan
http://www.nikkeikin.co.jp
Phone: 81-3-5461-9211
Fax: 81-3-5461-9344(Ratio of Stock Holding)Establishedand food products industries.
By carrying on development of new applications for aluminum and aluminum materials, theMarch 30, 1939

NLM Group is to continue to support customers in wide-ranging industrial sectors and contribute toPaid-In Capital

improving the quality of people’s lives and protection of the environment.

¥39,085 million
Shares of Common Stock

Authorized: 1,600,000,000
Issued: 545,126,049

Consolidated Financial Highlight

Number of Shareholders

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

56,201
2011

2010

Millions of yen

For the year:
Net sales 
Operating profit 
Net income ¥460,681 ¥429,433 $5,164,558
7,673
24,724297,3422,084
11,040132,772

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

Net Sales
800

2011
Thousands of
U.S. dollars

481,022
93,124

414,885
104,757

4,989,597
1,259,856

225,238

193,695

2,329,465

Operating Profit
35

Stock Exchange Listings

Tokyo, Osaka
Transfer Agent of Common Stock

The Chuo Mitsui Trust & Banking Co., Ltd.
Last Shareholders’ Meeting

June 29, 2011

600

25

450

20

The Master Trust Bank of Japan, Ltd.
(trust accounts)(4.5%)The Dai-ichi Mutual Life Insurance Co.
(3.7%)
Asahi Mutual Life Insurance Co.
(2.8%)The Light Metal Educational
Foundation, Inc.
(2.7%)
Nikkei-Keiyu-Kai(2.6%)
Namekawa Aluminium Co., Ltd.
(2.3%)
Mizuho Corporate Bank, Ltd.
(2.1%)
Retirement Benefit Trust in
Mizuho Trust & Banking Co., Ltd.
Mizuho Corporate Bank, Ltd. account;
Trust & Custody Services Bank, Ltd.
as a Trustee of Retrust(1.6%)
Japan Trustee Services Bank, Ltd.
(CMTB Equity Investments Co., Ltd. Trust
Account re-entrusted by Chuo Mitsui
Asset Trust and Banking Company, Ltd.)(1.5%)

Total Assets

30600Japan Trustee Services Bank, Ltd.
(trust accounts)(7.8%)(As of March 31, 2011)

15
400

10

300

5
0

200

Cautionary Statement

150

-5

This annual report contains various projections and estimates. Important factors that could alter these projections and estimates include-10
02006 2007 2008 2009 2010 2011

Billions of yen

Years ended March 31-15changes in the balance of aluminum supply and demand, fluctuations in the price of aluminum ingot and foreign exchange rates, as2006 2007 2008 2009 2010 2011

Billions of yen

Years ended March 31

02006 2007 2008 2009 2010 2011

Billions of yen

As of March 31

well as shifts in Japanese government policies and regulations. The Company cautions, therefore, that the projections and estimates
contained herein involve risk and uncertainty, and that actual results could differ materially from those expressed or implied.
43

NIPPON LIGHT METAL COMPANY, LTD. ANNUAL REPORT 2011

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

Printed in Japan