NIPPON LIGHT METAL COMPANY, LTD. ANNUAL REPORT 2010

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

58,2682010

2009

Millions of yen

For the year:
Net sales 
Operating profit (loss) Net income (loss) ¥554,094 ¥460,681 $4,951,429(11,892)
7,673
82,470(31,442)
2,084
22,399At year-end:
Total assets 
Net assets 
Short-term borrowings and long-term debt,
including bonds and capital lease obligation 

Net Sales

478,571
88,781

481,022
93,124

5,170,056
1,000,903

234,011225,2382,420,873

Operating Profit
35

800

2010
Thousands of
U.S. dollars

Stock Exchange Listings

Tokyo, Osaka
Transfer Agent of Common Stock

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

June 29, 2010

600

25

450

20

The Master Trust Bank of Japan, Ltd.
(trust accounts)(5.0%)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(2.5%)
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)(5.8%)(As of March 31, 2010)

15
10

400

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
02005 2006 2007 2008 2009 2010

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, as2005 2006 2007 2008 2009 2010

Billions of yen

Years ended March 3102005 2006 2007 2008 2009 2010

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.
41

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 Operations...................................................................................................... 22
Consolidated Statements Of Changes In Net Assets................................................................................ 23
Consolidated Statements Of Cash Flows..................................................................................................... 24
Notes To Consolidated Financial Statements............................................................................................. 25
Report Of Independent Auditors................................................................................................................... 38
Overseas Network........................................................................................................................................... 39
Directors And Officers.................................................................................................................................... 40
Corporate Data................................................................................................................................................. 41

2010

2009

Millions of yen

Per share data (yen and dollars):
Net loss —basic —diluted 
Cash dividends 
Net assets 2010Thousands of
U.S. dollars¥ (57.77) ¥ 3.83 $
—
3.63
—
—
¥154.22163.13

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

¥

197 ¥
60

142 $
71

0.04
0.04
—
1.75

1.53
0.76

Note: U.S. dollar amounts have been translated, for convenience only, at the exchange rate of ¥93.04 = 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

Cash Dividends per Share
5.0

300.0
250.0

4.0

200.0

0

3.0
150.0
2.0
-30.0

100.0
1.0

50.0
-60.0
Yen

0

2005 2006 2007 2008 2009 2010
Years ended March 31

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

Yen

2005 2006 2007 2008 2009 2010
Years ended March 31

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

0
Yen

2005 2006 2007 2008 2009 2010
As of March 31

1

To Our Shareholders

Takashi Ishiyama, President and CEO

I am pleased to report on the operating results for
Nippon Light Metal Company, Ltd. and its consolidated group companies for fiscal 2009 (the year
from April 1, 2009, to March 31, 2010).

Overview of Fiscal 2009
During the year under review, the aluminum industry as awhole was on track for improvement, as there were signs ofrecovery in demand from its principle customers in the automotive, electrical and electronics industries linked with theprogress in inventory adjustments, while demand further
cooled down in the building related markets. But such
improvement proved short of achieving the level of businessas attained prior to the current recession and aggregate
demand for aluminum products declined compared to theprevious year.
Given these circumstances, the Group was focused on
establishing an operational structure that can generate profits on the basis of a reduced production and sales, by promoting emergency measures such as inventory reduction, highly
selective capital expenditure and reduction of fixed costs
including personnel expenses. On the other hand, the Grouphas been promoting business activities for growth such as
2

aggressive allocation of management resource to operationsin China and Southeast Asia, along with reinforcement andexpansion of environment and energy-related sectors, letalone development of new products that ensure superior
profitability.
As a result of these efforts, despite a decrease in consolidated
net sales of ¥460.7 billion compared to the previous year, consolidated operating profit improved ¥19.6 billion year on year,to ¥7.7 billion and consolidated ordinary profit improved¥19.6 billion year on year, to ¥2.7 billion on the earnings front
as various initiatives to ensure profitability along with launchof new products in the growing markets secured significantly
better results. The Group recorded ¥2.1 billion net income, asa result of recording deferred tax assets in respect of hitherto
valuation losses on shares in affiliated companies concerning
Shin Nikkei Co., Ltd., along with special losses including
Provision for loss on sales of subsidiaries and affiliates' stocks
in association with the transfer of its shares.
Under these circumstances, I regret to announce that there
will be no year-end dividend payment as the previous year. I
would like to ask for kind understanding of our shareholders
regarding this decision.

Overview by Business Segment
Sales in the Aluminum Ingot and Chemicals segment
decreased 27.0% year on year, to ¥88.1 billion, while operating profit increased 357.9%, to ¥3.4 billion. Despite the initialassumption of generally weak demand throughout the year
in this sector, there was a hint of recovery in demand in the
fourth quarter.
Sales in the Aluminum Sheet and Extrusions segment
decreased 17.8%, to ¥54.9 billion, despite remarkable recovery in demand from the third quarter. Operating results forthis segment improved roughly ¥5.0 billion, still generating
an operating loss of ¥0.7 billion.
Sales in the Fabricated Products and Others segment
decreased 12.5%, to ¥198.3 billion, while operating profit
increased 125.0%, to ¥9.0 billion, thanks primarily to therobust sales of back-sheets and functional ink for solar cells
at Toyo Aluminium K.K.
Sales in the Building Materials segment fell 14.7%, to¥119.4 billion, resulting in an improvement in operating

results of ¥6.5 billion compared to the previous year, whichstill generated ¥1.4 billion operating loss.

Share Transfer of Shin Nikkei Co., Ltd.
and Change of Segment Information
On April 1, 2010, we transferred all shares of Shin Nikkei Co.,
Ltd. to the JS Group Corporation, and as a result Shin Nikkei
Co., Ltd. ceased to be the Company’s subsidiary. This will significantly reduce the share of the “Building Materials” segment
while relatively enhancing the share of the “Fabricated Products and Others” segment in the Group’s consolidated sales,from the following fiscal year (year ending March 31, 2011).
As a result of the above share transfer, segment information
shall be revised accordingly from the following fiscal year.
Specifically, the aluminum foil, powder and paste sector,
mainly manufactured by Toyo Aluminium, shall be removed
from the “Fabricated Products and Others segment” and newly
established as the “Aluminum Foil, Powder and Paste” segment, while existing business in the “Building Materials” segment shall be distributed to the “Aluminum Sheet andExtrusions” segment, as well as the “Fabricated Products andOthers” segment, abolishing the “Building Materials” segment.
As a result of this change, there will be four segments in thefiscal year ending March 2011, namely the “Aluminum Ingot
and Chemicals” segment, the “Aluminum Sheet andExtrusions” segment, the “Fabricated Products and Others”
segment and the “Aluminum Foil, Powder and Paste” segment.

Outline of the New Mid-Term
Management Plan
In May 2010, the Group announced the New Mid-Term
Management Plan for the three years from fiscal 2010, in
which we will accelerate creation of new products and technologies along with business development in the overseas markets
primarily in China and Southeast Asia, while staying focusedon reinforcing our business foundation. We will also explore
the opportunities of alliances or M&A with other companies
across the national borders, with speedy management style andallocation of resources based on clearly thought-out strategies.
Business targets in fiscal 2012, the last year of the New MidTerm Management Plan, envisage net sales of ¥430 billion(25% *increase year on year), ordinary profit of ¥20 billion(7.4 times year on year) and net income of ¥12 billion (5.7
times year on year). Meanwhile, financial targets under theplan envisage ¥24.2 billion reduction of interest-bearing debt,
to ¥197 billion, 1.4 times Net D/E ratio (Debt Equity ratio)
and 9.1% ROCE (Return on Capital Employed) ratio. (Fordetails, please see Special Feature, page 4 to 6.)(Note)* Calculated on the sales figure excluding Shin Nikkei

Outlook for fiscal 2010
In the Japanese economy, corporate performance is expected
to get back on a track for recovery driven primarily by theexporting sector, with gradual improvements in capital expenditure as well as employment and income environment, while
full-scale recovery in domestic demand is likely to take longer.
As respects the global economy, although the simultaneous
global recession appears to have bottomed out, driven primarily by the growth in the emerging economies not least China,
the situation is likely to remain in the balance, leaving noroom for optimism.
Under such circumstance, although the Group’s net sales
will significantly drop as a result of the aforementioned transfer of Shin Nikkei to the JS Group, operating results are anticipated to show remarkable improvement as each businesssegment of the Group is expected to show some increase insales volume. Specifically, the next fiscal year is projected toregister net sales of ¥380 billion, operating profit of ¥16 billion,
ordinary profit of ¥10 billion and net income of ¥5.5 billion.
Within this severe business environment, we are striving tokeep up improvement in productivity and reinforce our sales
capabilities, as well as strengthen our earnings base throughthe development of new products and businesses and cultivation of business in growth fields by making a concentrated
Group effort.
I would like to ask for the continuing support of our shareholders in these efforts.
June 2010

Takashi Ishiyama
President and CEO
3

Special Feature:

The New Mid-Term Management Plan
(Fiscal 2010-2012) of the NLM GroupThe NLM Group has formulated a New Mid-Term Management Plancovering the three years from April 2010.
This Special Feature introduces the specifics of the plan.
Numerical targets set out in the previous mid-term management plan for the three years ending in the end of March 2010,
were not achieved as directly impacted by the simultaneous global recession since the latter half of 2007. Meanwhile, however, there has been some progress in the implementation of the action plans set out in the previous mid-term management
plan, as specifically listed up as follows.
Major Action Plans with progress in the Previous Mid-Term Management Plan
Policies

Actions

Business domain expansion by means of active infusion of management resources into growth sectors

Concentrated allocation of management resources to thethree growth sectors.

Demand creation and earning power improvement
in core business sectors[Aluminum Foil sector] Management consolidation of Toyo
Aluminium and Tokai Aluminum Foil.
[Chemical Products]
Commencing changeover to the new raw materials.

Active development of overseas business[Nikkeikin Aluminium Core Technology]
The second manufacturing site for automotive parts.
[Toyo Aluminium] Solar cells related businesses in China.

Completion of structural improvement of the Building
Materials businessRealignment and consolidation of manufacturing sites
along with workforce reduction in the building materials
operation. Transfer of Shin Nikkei to the JS Group.

Outline of the New Mid-Term Management Plan
The New Mid-Term Management Plan was prepared as a projection for the next three years, bearing in mind what the Groupshould look like in five years time. The new plan specifically envisages future shape of the new NLM Group after the demerger of Shin Nikkei. The Group implemented the eight basic policies as follows:

The New 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 governance
4

The Group will further develop its core technologies for aluminum materials, while reinforcing the business foundation inview of the current harsh economic environment, and then will focus on developing new products and technologies drawing
on such core technologies. Meanwhile, the Group will be aiming at sustainable growth through aggressive implementation ofbusiness strategies to cultivate opportunities in overseas markets not least China and Southeast Asia.
1. Focusing on the four target sectors that are automotive, electric and electronics,
telecommunications, environment, safety and energy(Billions of yen)
The Group will focus on the four sectors targeted under the preFiscal 2009 Fiscal 2012
Sectorvious medium-term management plans as future growth sec(Actual)(Target)tors expected to develop new use for aluminum materials,
Automotive
68.7
89.0
namely (i) automotive, (ii) electric and electronics, (iii)Electric and electronics
33.6
50.0
telecommunications, (iv) environment, safety and energy.
Telecommunications
5.1
13.0
Ambitious sales expansion as follows is projected, by aggressiveEnvironment, safety and
18.8
37.5
energyly emphasizing R&D and capital investment in these sectors.
2. Further reinforcement of industry-leading businesses
The Group has already got quite a few “strong products” with competitive advantages, such as alumina and aluminum hydroxides in the Aluminum Ingot and Chemicals segment, lithium-ion battery cases in the Aluminum Sheet and Extrusions segment,
aluminum foil and truck outfitting products, panel system products, aluminum paste used for automobile paint, aluminumparts for solar cells and carbon block for blast furnaces in the Fabricated Products and Others segment. These are successful
examples maintaining high market shares in respective markets
We will further strengthen our competitiveness by developing new products in the market sectors where we dominate as market leader, while anticipating the changes in the market and diversified needs of consumers, let alone improving productivity.
3. Accelerated development of overseas business operations centering on China and Southeast Asia
Production capacity shall be enhanced at Toyo Aluminium’s plant for back-sheets and electrode ink for solar cells (Zhaoqing,
China), Nikkeikin Aluminium Core Technology’s sunroof rail plant (Shanghai, China), Nikkei Siam’s aluminum sheet plant(Thailand), to catch up with the soaring demand for respective product.
Meanwhile, production capacity enhancements under consideration include the third manufacturing site in Asia for
Nikkei MC Aluminium’s aluminum alloy operation, the third manufacturing site in China for Nikkei Aluminium CoreTechnology’s automotive parts operation, material powder production lines at Toyo Aluminium, Nippon Fruehauf’s manufacturing site in China, and manufacturing sites in Southeast Asia for Nikkei Panel System and for the Company’s Heat
Exchanger Division. We will also actively explore the opportunities of M&A or alliance with local companies in overseas markets to further expand our overseas operations, by which
our overseas sales ratio is projected to increase from 12.2%
in fiscal 2009 to 19.4% in fiscal 2012.
4. Development of applications by integrating key
technologies and creation of new products
After years of operation since its establishment,
the Group has become a conglomerate
embracing numerous business units operating in a range of domains with a variety offorms and scales, comprising groups
with broad scope of operations from5

Special Feature
upstream to downstream, drawing on respective unique technologies.
Thus, we will create new products and businesses mainly in environment and energy-related markets, providing weightsaving solutions and clean energy solutions to automotive and other industries, by integrating or matching a variety ofdiverse technologies within the Group, to our existing advanced products.
5. Contribution to environmental protection by exploiting the characteristics of aluminum
Aluminum with its superior properties including lightness, thermal conductivity, processability and recyclability, is an environmentally friendly material that fits the demand of the times more than ever.
The Group is actively contributing to conservation and protection of the global environment by promoting development,
supply and recycling of environmentally friendly products, along with our pursuit of the voluntary action plan for mitigationof global warming.
6. Development and deployment of human resources and strengthening of corporate governance
Drastic changes are going on in our business environment in which development of creative and innovative human resources
is essential. As the Group’s corporate culture has dramatically changed from “security-oriented” to “challenging undaunted
by failure” since the turn of the century, we will continue to be committed to developing human resources capable of diversifying and expanding business operations from now on, while strengthening human resources management to enable individuals to bring their diverse characteristics and skills into full play.
To reinforce corporate governance, the Group will further promote awareness of corporate social responsibility (CSR) andcontinue its sincere efforts to ensure compliance and management of risks related to the environment, safety, and disasterprevention.
Quantitative Targets
Net sales(Billions of yen)

Fiscal 2009 (Actual)

Fiscal 2010 (Forecast)*

Fiscal 2012 (Target)

460.7*

380.0

430.0

1

2

Operating profit

7.7

16.0

27.0

Ordinary profit

2.7

10.0

20.0

Net income

2.1

5.5

12.0

Interest-bearing debt

221.2

207.0

197.0

Net D/E ratio (times)

2.0

1.7

1.4

ROCE (%)

2.2

5.0

9.1

[Basis of calculation] Aluminum ingot market price : ¥250,000/ton Exchange rate : ¥90/USD*1 Net sales, excluding those of Shin Nikkei Co., Ltd. sold on April 1, were ¥344.1 billion.
*2 Figures are as of May 14, 2010, the date of announcement.

7. Plan for Cash Flow: Improvement of the financial position and resumption of dividend payment
Making selective investments while focusing on the earliest possible resumption ofdividends and improvement in financial position as financed by profits
We will invest in growing sectors ¥73 billion which comprises ¥20 billion gain on disposal of the building materials business,and three-year cumulative depreciation and amortization of ¥53 billion. Profits gained from such investment shall be used
to resume dividend payment early, and to repay interest-bearing debt in an effort to improve the Group’s financial position.
The last, but not the least, as the NLM Group is determined to pull together as one, staying focused on achieving the objectives under the New Medium-Term Management Plan, we would appreciate kind understanding and support of shareholders
on the aforementioned strategies and actions.
6

NLM Group Topics

Toyo Aluminium Strengthens its Functional Materials Business Expands production and sales,with focus on rapidly growing Chinese market
Toyo Aluminium is posting strong results from the functional material
businesses listed below. These include solar cell back-sheets that prevent theabsorption of moisture (which causes the performance of solar cells todeteriorate) and aluminum ink for electrode backing, which improves theconversion efficiency of solar cells.
Toyal Zhaoqing Co., Ltd.

1. Toyal Solar Back Sheets for Solar Cells
Toyo Aluminium manufactures these strong-selling backsheets for solar cells in Japan and China (Toyal Zhaoqing
Co., Ltd.). The company boosted production capacity at twosites in Japan in 2008, and although it only began production in China in September 2009, it is already expanding its
production facilities there.
2. Alsolar Aluminum Ink for Solar Cells
Toyo Aluminium currently produces 1,200 tons of aluminum
ink per year, accounting for 40% of global production. Thisfall, the company will double its production through investments in Japan. Next year, it plans to start production in
China, and aims to reach 5,000 tons annual production by
2012, quadrupling its current production level and winning a
50% share of the global market.

3. Aluminum Pastes
Aluminum paste is primarily used in automotive coatings. Salesof aluminum pastes to China, Korea, and India are very strong.
Sales in Japan are also recovering.
4. Aluminum Powders
Aluminum powder was originally used in powder metallurgy andrefractories, but there is growing demand for aluminum powder foraluminum paste for coatings, and as a raw material in aluminuminks for solar cells. As a result of this increased demand, shortfalls
in production capacity are expected both in Japan and internationally, and Toyo Aluminium has reacted by boosting its production ofaluminum powders as raw materials in Japan and China.
Using its back sheets and aluminum ink businesses as growth
drivers, Toyo Aluminium will expand its production and sales offunctional materials, with a focus on the Chinese market.

Changes in Business Segment
Segmentation until Fiscal 2009

Segmentation from Fiscal 2010

Aluminum Ingot and Chemicals segment

Aluminum Ingot and Chemicals segment

Chemicals Division, Nikkei MC Aluminium, Metal & Alloy Division,
Aluminium Wire Rod, Group Metal Center, etc.

(No change)

Aluminum Sheet and Extrusions segment

Aluminum Sheet and Extrusions segment

Rolled Products Division, Nikkei Siam,
Nikkeikin Aluminium Core Technology, Nikkei Extrusions, etc.

(No change)
Riken Light Metal Industrial

Fabricated Products and Others segment

Fabricated Products and Others segment

Toyo Aluminium
Nippon Fruehauf, Nikkei Panel System, Capacitor Foil Division,
Nippon Electrode, Nikkei Matsuo, Shaped Parts Division,Heat Exchanger Division, Container Department, NLM ECAL,
Nikkei Sangyo, Nikkei Logistics, Sumikei Nikkei Engineering(affiliate accounted for by the equity method), etc.
Building Materials segment --- abolished
Shin Nikkei
Riken Light Metal Industrial
Others(No change)
Others
Aluminum Foil ,Powder and Paste segment--- newly established
Toyo Aluminium
Transferred to the JS Group Corporation on April 1, 2010.
7

Corporate Governance and Internal Control Systems

1. Summary of Corporate Governance
NLM considers the development of a corporate governance

Executive Committee under the Board of Directors. Thissystem one of its most important management priorities,

committee consists of the president and CEO, senior execu-

as this system helps ensure trust in management by stake-tives and executive officers and directors of subsidiaries

holders, including shareholders, business partners,

who concurrently serve as NLM directors. The Executive

employees and local communities.

Committee meets at least twice a month.

NLM has adopted an executive officer system. The

NLM has also adopted a statutory auditor system. The

Board of Directors consists of 10 directors, of whom two

Board of Statutory Auditors consists of five statutory audi-

are outside directors. This system enables agile manage-

tors, of whom three are outside auditors. Auditors arement and sufficient deliberation by the Board of

independent and play a key role in corporate governanceDirectors. To clarify the roles and responsibilities of direc-

by attending Board of Directors and other important inter-

tors and executive officers and ensure that their tasks arenal meetings.

conducted appropriately, their term of office is set to be
one year. 14 Board of Directors meetings were held in fis-

Support Systems for Outside Directors and Outsidecal 2009.

Statutory Auditors

To examine important matters that affect the entire

The Planning Department and the Legal Department,Group from multiple perspectives, NLM has set up an

which jointly serve as the secretariat for the Board of

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• Internal Control Promotion Ofﬁce• Quality Committee• Environment Committee, etc.

Statutory
auditors
Outsideauditors

Information exchangeDirectors, circulate preparatory handouts to directors andAccounting Audits

auditors. The secretariat also elaborates on issues of partic-

In fiscal 2009, Ernst & Young ShinNihon LLC conductedular importance prior to meetings.

accounting audits based on the Companies Act and the

The Auditors Office provides staff to assist the auditors.

Financial Instruments and Exchange Act of Japan.

2. Summary of Implementation of Internal Control Systems
To fulfill its corporate governance obligations, NLM takes

es its top-of-mind significance. Each year, NLM holds moreas another management priority the development of inter-

than 900 compliance meetings that are attended bynal control systems for all NLM Group employees. Such sys-

employees.

tems affect all of NLM’s business processes, ensuring risk
management, compliance with laws and ordinances andEstablishment of Group Risk Management

ongoing work efficiency.

Regulations

At a meeting on March 14, 2008, the Board of Directors

As part of its risk management system, in May 2006 NLM

resolved to partially amend the basic policy on the imple-

established the Group Risk Management Regulations.

mentation of the Internal Control Systems, in order to

These regulations specify departmental responsibilities andachieve the Company’s goals stipulated in the Group man-risk management guidelines, segmented by risk signifi-

agement policy. We will continue to move forward with thecance into 1) product and service defects, 2) environmental

implementation of the systems, while revising the policy as

problems, 3) disasters (natural and accidental) and 4)

necessary.

information system problems.

Establishment of the Compliance Code and theEstablishment of Regulations Concerning theInternal Whistle-Blower System

Preservation and Management of Documents

In July 2004, NLM established the Compliance Committee,

Containing Important Decisions

chaired by the president and CEO, to clarify its corporate

In accordance with corporate regulations, NLM appropri-social responsibility and to implement effective internal

ately stores and manages information on the execution ofcompliance systems. On April 1, 2006, NLM also establishedduties by directors, which is disclosed to statutory auditors

the Group Compliance Code, which is posted on the Group

upon request. On May 29, 2006, NLM established theIntranet. At the same time, a leaflet containing this code

Regulations Concerning the Preservation and Management

was distributed to all members of Group companies.

of Documents Containing Important Decisions. These regu-

Concurrently, an internal whistle-blower system waslations establish criteria for the storage and management

created.

of documents at each NLM Group company, including

NLM considers important the creation of an atmosphere

those concerning Executive Committee decisions, commit-that fosters the frank exchange of opinions among officers

tee minutes and departmental decisions, such as approvaland employees about workplace compliance and encourag-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 problems.
NLM Group’s management policies reflect the recognition that initiatives to tackle global environmental problems are vital.

Basic Policy for Environmental Issues

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 to construct asustainable, recycling-oriented economy and society capable ofcoexisting 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, to realize a truly affluent society through an environment-orientedsocial contributions.

Action Guidelines
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 todevelop, we take measures their impacts on the environment based on scientific evaluations. We also make every effort to reduce the environment evenin 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 GroupNLM Group Voluntary Action Plan for Reduction ofGreenhouse Gas Emissions
Reduce the ratio of greenhouse gas emissions to net sales by
10% by 2010 compared with in1990
Greenhouse Gas Emissions per Unit of sales

Greenhouse Gas Emissions(thousand-t/t-CO2)(t-CO2/million yen)

2.5

2,000

10% reduction
2.13

1.98

2.14

2.07

2.0

2.15

2.29

2.36

The NLM Group’s Voluntary Action Plan to Reduce
Greenhouse Gases
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 ofgreenhouse gases, which contribute to global warming functioning as a comprehensive indicator.
In fiscal 2009, we reduced our greenhouse gas emissions.
Although this reduction was significantly influenced by decreasein manufacturing activities due to the economic recession that
continued from late fiscal 2008 into fiscal 2009, our efforts to conserve energy and reduce our carbon footprint also contributed to
the reduction. We also improved greenhouse gas emissions perunit of sales.
The NLM Group will continue striving to reduce greenhouse gas
emissions and reduce emissions per unit of sales.

1.5

1,200

1.0

800

0.5

400

0.0

1990

2005

2006

2007

2008

2009

2010 (FY)* The scope of consolidation has changed due to a transfer of the Group company. Therefore, we haverecalculated the previous data corresponding to the changed scope of consolidation.

10

1,600

0

Review of Operations

Aluminum Ingot and Chemicals
Consolidated Net Sales

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 Operating Profit■ Principal Products(Millions of Yen)

(Millions of Yen)

160,000

12,500• Aluminum• Aluminum hydroxide• Chemicals (chemical products)• Caustic soda
• Chlorinated chemical products• Aluminum ingot• Aluminum alloys■ Net Sales

10,000120,000

7,500

80,0005,000

40,0000

2,500’06 ’07 ’08 ’09 ’10

0’06 ’07 ’08 ’09 ’10■ Overview of results for fiscal 2009
In the Aluminum Ingot
and Chemicals operations,
except for some areas
showing signs of recovery,such as alumina forelectrical machinery andelectronics and aluminum
Aluminum Ingot
hydroxide, shipment
remained stagnant nearly in all areas including alumina for fireretardant materials and aluminum hydroxide for building materials,
given the sluggish domestic economy. Meanwhile, exports including
those for Korea dropped significantly suffering direct impact of the
yen appreciation. In terms of chemicals, some of the products suchas caustic soda, organic and inorganic chlorine products were insolid demand, which, however, was not good enough to offset thegenerally stagnant shipment, resulting in a decrease in sales volume
compared to the previous year.
In terms of profits, despite decline in fuel prices including
electricity, gas and heavy oil, lower capacity usage resulting fromdecrease in sales meant heavier burden of fixed expenses. This
contributed to a sharp drop in profits year on year.
In the Aluminum Ingot operations, overall sales volume decreased
compared to the previous year, although domestic demand formainstay secondary alloy product for automotive application started

88,141Millions of Yen

19.1%

to pick up in the latter half of the year after a spell of weak demandsince the latter half of 2008, and recovery of overseas demands
became evident not least in China.
Despite decrease in sales volume as well as profit-squeezing priceincrease of scrap used as raw materials for secondary alloy productearnings showed a significant improvement compared to theprevious year in which sizable losses on inventory valuation wererecorded.
As a result, Aluminum Ingot and Chemicals segment sales
decreased 27.0%, or ¥32,584 million year on year, to ¥ 88,141
million, while operating profit increased 357.9%, or ¥2,677 million
year on year, to ¥3,425 million.

Sapphire substrate11

Review of Operations

Aluminum Sheet and Extrusions
Consolidated Net Sales

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(Millions of Yen)

■ Applications■ Principal Products(Millions of Yen)

• Automobile• Automobile suspension parts • Lead-free cut aluminum alloy• Quick freezing coagulated powder extruded materials• High-intensity molded aluminum sheet• Large structural materials for railway rolling stock• Truck body parts• Thick plate for semiconductor and LCD manufacturing
equipment, Foil stock • Photosensitive drum materials• Printing roll • Industrial materials• Aluminum honeycomb panel • Scaffolding

8,000

60,0004,000

40,0000

20,000-4,000’06 ’07 ’08 ’09 ’10-8,000• Transport• Electronics’06 ’07 ’08 ’09 ’10■ Overview of results for fiscal 2009
In the Aluminum Sheet
operations, shipment of
thick plates forsemiconductor and LCD
manufacturing
equipment increased,
while production of basic
Sunroof Railmaterials for electricalmachinery and electronics recovered and remained robust
thereafter, which, however, failed to offset significant drop in the
shipment of foil stock for Electrolytic Capacitors, resulting in overallsales volume at nearly the same level as the previous year.
Meanwhile, product prices, though on a recovery trend, failed toreach the level of the previous year. As a result, sales declined
compared to the previous year.
In terms of profits, profitability improved compared to theprevious year, thanks to inventory reduction and other streamlining
measures, along with stabilized factory utilization which absorbed
the burden of fixed expenses.
In the Aluminum Extrusion operations, business in the mainstay
transport industry remained robust, thanks to the positive orders
from railway car manufacturing industries, along with solid
shipment of automotive parts mainly in China, which, however was
outweighed by the stagnant shipment of truck body parts especially• Industrial• Building materials and• infrastructure materials

in the first half of the year, resulting in a decrease in overall sales
volume compared to the previous year. In other areas including
electrical machinery and electronics industries, sales ended up in adecrease despite the latest trend of recovery in demand.
Although the continued high price of fuels and side materials,squeezing profitability of this segment, earnings improved thanks to
the robust sales in China along with cost-cutting in various aspects ofoperation and inventory reduction.
As a result, Aluminum Ingot and Chemicals segment sales
decreased 17.8%, or ¥11,897 million, to ¥54,869 million, while¥5,020 million improvements in operating results proved short ofgenerating income, resulting in an operating loss of ¥717 million.

Shaped sheet product

12

11.9%

■ Consolidated Operating Profit

80,000054,869Millions of Yen

Review of Operations

Fabricated Products and Others
Consolidated Net Sales

Profile The NLM Group includes a number of companies that handle distinctive
fabricated products. In particular, Toyo Aluminium’s aluminum foil and aluminum
powder and paste, Nippon Freuhauf’s van and truck bodies and Nikkei Panel System’scommercial refrigerator and freezer panels enjoy an excellent reputation for quality andare market share leaders in their respective fields. In addition, the Group provides familiar
consumer products, including anodized aluminum foil for aluminum electrolytic
capacitors, automotive parts, landscaping products, containers and packaging materials.

198,249
Millions of Yen

43.1%■ Consolidated Operating Profit■ Applications■ Principal Products(Millions of Yen)

(Millions of Yen)

• Automobile

280,000

17,500• Powder and paste • Cast and forged parts for automobiles• Heat exchangers for automobiles• Van truck bodies and trailers• Aluminum foil for electrolytic capacitors • Clean rooms• Anodized foil for electrolytic capacitors• Landscape engineering products• Solid truss structural materials (Aluminum truss)• Plant package for communication base stations• Aluminum foil • Panels for commercial refrigerators and freezers■ Net Sales

10,500140,000

7,000

70,0000• Transport• Electronics

14,000210,000

3,500’06 ’07 ’08 ’09 ’10

0’06 ’07 ’08 ’09 ’10■ Overview of results for fiscal 2009
Following is a summary of the major sectors in the Fabricated Products
and Others operations.
In the Aluminum Foil, Powder and Paste sector, aluminum foil
business has been solid thanks to the ongoing recovery trend in the
shipment of high-purity aluminum foil for electrolytic capacitors, which
bottomed out in the previous year, as well as the favorable shipment ofsolar cell back-sheets, which are in great demand in China. Yet on
annual basis, these positive elements could not offset the decline in sales
volume recorded in the first half of the year, resulting in lower sales
compared to the previous year. In the Aluminum Powder Products
sector, exports for China, Korea and India, as well as North America werefavorable, while domestic shipments of aluminum paste used forautomobile paint were lower compared to the previous year. Meanwhile,
functional ink for solar cells sales were higher compared to the previous
year, thanks to the new orders from China and Taiwan, along withrecovery in demand both at home and abroad.
In terms of profits, this sector was boosted by the favorable sales ofback-sheets and functional ink for solar cells, which overwhelmed theprice-cutting pressure for some of our products associated with the
declining raw materials prices, resulting in a sizable increase in income.
In the Transport-Related sector, sales in the van and truck outfitting
business fell by a sharp drop in demand for vans and trucks, as a resultof stagnant logistic activities and capital expenditure under the current
economic recession.
In the area of capacitors for car air conditioners, shipments of capacitors used in mini vehicles were largely solid, while general demand wason a recovery trend from the second half of the year, which, however, wasoutweighed by the slow recovery in sales of the types of cars primarily forexport, resulting in overall lower sales compared to the previous year.

• Building materials• and infrastructure• materials• Food and lifestyle

In the Shaped Parts sector, despite an increase in sales of parts forenvironmentally friendly or fuel-economy cars, including hybrid cars,
overall sales proved short of the level achieved in the previous year,
resulting in a slight drop compared to the previous year.
In the Electronic Materials sector, while demand for anodized
aluminum foil for electrolytic capacitors used for the digital appliances
was in a recovery trend thanks to the growing demand for electricalmachinery and electronics equipment in Asian markets, recovery indemand for those used for the manufacturing equipment was slow,
resulting in overall lower sales compared to the previous year.
In the Panel System sector, sales of clean rooms and industrial
refrigerators and freezers registered resulted in lower sales compared tothe previous year because of the still stagnant capital expenditure.
Profitability also suffered in this sector as we were forced to accept lessprofitable orders under increasingly competitive market environment.
In the Fabricated Products and Others segment, sales of containers
managed to maintain the previous year’s level, thanks to the robust
shipment of commercial washing containers for beer servers, offsetting
the significant drop in the shipment of mainstay aluminum kegs due doa decrease in demand for beer, reflecting unstable weather in lastsummer, as well as a shift of consumer preference for beer-like alcoholic
beverages as money saving alterative in an effort to cope with economic
recession.
In landscaping products, while sales of mainstay aluminum railings
remained at roughly the previous year’s level, shipments of brazed
honeycomb panels declined along with reduction in public investment,
resulting in overall lower sales compared to the previous year.
As a result, sales in the Fabricated Products and Others operations
declined 12.5%, or ¥28,294 million, to ¥198,249 million. Operating
profit increased 125.0%, or ¥4,971 million, to ¥8,947 million.
13

Review of Operations

Building Materials
Consolidated Net Sales

Profile Shin Nikkei played a central role in providing high-quality aluminum building
materials, operating in accordance with the basic concept of placing importance on thepreferences of residents and users. Products included everything from building construction
materials such as curtain walls, to window sashes, front doors, and other housing materials
as well as gates-fences, and other exterior products. Also, Shin Nikkei was developing products
adapted to wideranging user needs for energy conservation, environmental coexistence,
universal design, and security enhancement.
■ Net Sales■ Consolidated Operating Profit■ Applications■ Principal Products(Millions of Yen)

(Millions of Yen)

• Building• Building materials• Housing materials• Exterior products

200,000

8,000

150,000

4,000

100,000

0

50,000-4,0000’06 ’07 ’08 ’09 ’10-8,000Millions of Yen

25.9%’06 ’07 ’08 ’09 ’10■ Overview of results for fiscal 2009
In the Building Materials
operations, demand forsingle family houses aswell as condominiums
remained stagnant as
individual motivation forownership of housing has
Deck fences
waned under economic
uncertainty and concern over job and income security, while
reduction in private capital expenditure as well as public investment
exerted obvious adverse impact, making the business environment inthis sector as severe as it was in the previous year.
Given these circumstances, we have been focused on enhancing ourcompetitiveness through thorough cost-cutting exercise, along withstructural reform including workforce rationalization, andrealignment and consolidation of manufacturing sites, in an effort toestablish an operational structure that enables survival in theshrinking market.
Given such continuously contracting market riddled with weak
demand, Building Materials sales decreased 14.7%, or ¥20,638
million, to ¥119,422 million. In terms of profits, operating results
made ¥6,491 million improvement thanks to the aforementioned
efforts, which, however, proved short of generating profit, resulting
in a ¥1,379 million operating loss.

On April 1, 2010, the Company transferred all shares of Shin
Nikkei Co., Ltd. to the JS Group Corporation, and as a result the Shin
Nikkei Co., Ltd. ceased to be the Company’s subsidiary, significantly
reducing sales of the building materials products within the Group
from the next fiscal year. Nonetheless, the Group is determined toensure that the Group companies handling building materials, suchas Riken Light Metal Industrial Co., Ltd. and Nikkei Kenzai Kogyo
Co., Ltd. further reinforce their efforts to promote sales of uniqueand profitable products.

Insulated front doors

14

119,422

NLM Group

Nippon Light Metal Group consists of 113 subsidiaries and 42 affiliates,
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.

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

● Nikkei Sangyo Co., Ltd.

● Nikkeikin Aluminium Core Technology Co., Ltd.
● Nikkei Siam Aluminium Ltd.
● Nonfemet International (China-Canada-Japan)

Aluminium Co., Ltd.

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

● Nikkei Information System Co., Ltd.

● Toyo Aluminium K.K.

● Nikkei Logistics Co., Ltd.

● Toyal Zhaoqing Co., Ltd.

● Sumikei Nikkei Engineering Co., Ltd.

● Tokai Aluminum Foil Co., Ltd.

● Toho Earthtech Inc.

● Toyal America Inc.
● Toyal Europe S.A.S.U.

FabricatedProducts
and Others● Toyo Aluminium Ekco Products Co., Ltd.
● Nikkei Sangyo Co., Ltd.
● Nikkei Panel System Co., Ltd.
● Nikkei Matsuo Co., Ltd.
● Nippon Electrode Co., Ltd.
● Nippon Fruehauf Co., Ltd.
● Sam-A Aluminium Co., Ltd.
● Nikkei Heat Exchanger Co., Ltd.

Building
Materials(Manufacture and Sales)(Sales and Others)● Shin Nikkei Co., Ltd.

● Nikkei Sangyo Co., Ltd.

● Riken Light Metal Industrial Co., Ltd.
● Nikkei Kenzai Kogyo Co., Ltd.

Customer● Consolidated subsidiaries: 106 companies● Affiliates accounted for by the equity method: 18 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, 2010)15

CONSOLIDATED SIX-YEAR SUMMARY

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

Gross Profit and
Gross Profit Margin2005%

150,000

Gross Profit
Gross Profit Margin20

90,00015

60,00010

30,0005

02005 2006 2007 2008 2009 2010

Millions of yen

0Years ended March 31

Interest-bearing Debt
300,000

250,000

200,000

150,000

100,000

50,00002005 2006 2007 2008 2009 2010

Millions of yen

Years ended March 31

Free Cash Flows
25,00020,00015,00010,0005,000

0-5,0002005 2006 2007 2008 2009 2010

Millions of yen(Millions of yen)25

120,000

Years ended March 31

2006

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. ...........................................................................
Total. .................................................................................................
Operating Profit (Loss):
Aluminum Ingot and Chemicals......................................................
Aluminum Sheet and Extrusions.....................................................
Fabricated Products and Others.......................................................
Building Materials. ...........................................................................
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)................................................................
Valuation and translation adjustments (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. ...........................................................................

¥560,284
117,741
21.0
30,56021,857
13,488¥577,061
116,078
20.1
28,92322,353
9,684

92,94872,824
219,802174,710560,284

97,07770,714
238,422
170,848
577,061

8,866
5,785
14,883
4,068(3,042)30,5609,640
6,435
15,848(163)(2,837)28,923285,252
179,614
3,895
46,020266,212129,237
112,068
3,214
4,050
210,368

294,331
185,005
5,261
48,929281,505
122,033
119,7196,275
3,994
208,817

32,345
16,591(14,131)
16,973(22,702)

26,77917,315(19,724)
19,819(9,862)¥ 24.78
23.83
212.633.5¥ 17.79
16.89
232.54
4.0

8.6
12.4
22.4

8.6
8.0
23.6

543,350¥ 5,538
12,927543,350¥ 5,133
13,492

Note 1: U
 .S. dollar amounts have been translated, for convenience only, at the exchange rate of ¥93.04 =U.S.$1.00. See Note 2 of the Notes to the Consolidated Financial Statements.
Note 2: Interest-bearing Debt = Long-term debt and Short-term borrowings, excluding capital lease obligations +Notes discounted + Notes endorsed
Note 3: E ffective the year ended March 31, 2007, the Company adopted the new accounting standard“Accounting Standard for Presentation of Net Assets in the Balance Sheet”.

16

2007

2008

2009

2010

Return on Capital Employed(ROCE)

2010(Thousands of
U.S. dollars)(Note1)(Millions of yen)9

6¥618,158
120,345
19.5
30,51925,24812,755¥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

$4,951,429
880,105

110,667
78,929255,514173,048
618,158

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

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

88,141
54,869198,249
119,422460,681

947,345589,736
2,130,793
1,283,555
4,951,429

11,667
6,443
14,156
1,073(2,820)30,519

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

3,425
(717)
8,947
(1,379)(2,603)
7,673

36,812(7,706)
96,163(14,822)(27,977)
82,470340,897
184,070
5,969
48,527
287,436
149,916130,176
7,770
4,165
223,607

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

2,782,018
1,780,009
55,320552,7092,678,246
1,490,907
937,715
16,197
46,991
2,383,061

21,397
17,481(19,514)
20,702
12,48325,018
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)283,620
222,668(169,733)
152,590(95,443)¥ 23.56
22.36
254.82
5.0¥ (19.00)—
223.61
3.0¥ (57.77)—
154.22—¥ 3.83
3.63
163.13
—

9.3
9.7
23.8

4.5
(7.9)
22.5

(4.1)
(30.6)
17.5

2.2
2.4
18.5

2.2
2.4
18.5

543,350¥ 5,504
13,493545,126¥ 5,858
14,084545,126
5,972
13,678545,126
5,085
12,854545,126$ 54,654
12,854

3

82,47028,82622,3990-3-62005 2006 2007 2008 2009 2010

Years ended March 31%

Return on Equity (ROE)
20

10

0

-10

-20

-30

-40

2005 2006 2007 2008 2009 2010

Years ended March 31%

R&D Expenditures
7,000

6,000

$

0.04
0.04
1.75
—

5,000

4,000

3,000

2,000

2004
1,000

0

2005 2006 2007 2008 2009 2010

Millions of yen

Years ended March 31

17

FINANCIAL REVIEWOverview
The Japanese economy during fiscal 2009 (year ended March
31, 2010) remained stagnant as seen in the general corporate
behavior such as inventory adjustment and restraint incapital expenditure, along with prolonged slump in private
consumption due to concern over the further deterioration of
employment/income environment, although some sector of
the economy started to show signs of recovery.
Domestic aluminum industry as a whole was on track for
improvement, as there were signs of recovery linked with theprogress in inventory adjustment in the core markets such as
automotive, electrical and electronics industries, while
demand further cooled down in the building related markets.
But such improvement proved short of achieving the level ofbusiness as attained prior to the current economic recession,and aggregate demand for aluminum products declined
compared to the previous year.

operating profit/loss transitioned from an operating loss of¥11.9 billion in the previous year to an operating profit of¥7.7 billion ($82 million) in the year under review.
Non-operating income decreased 1.2% year on year, to¥4.5 billion ($48 million), while non-operating expenses
shrank 1.1% year on year, to ¥9.5 billion ($102million).
There is no significant difference in non-operating profit/loss
from the previous year. As a result, ordinary profit/loss
transitioned from a loss of ¥16.9 billion in the previous year
to a profit of ¥2.7 billion ($29 million) in the year underreview.
As special gains, ¥0.7 billion ($7 million) gains onreversal of accrued special retirement expenses wererecorded.
Special losses totaled ¥9.2 billion ($99 million), as aresult of recording ¥4.5 billion ($48 million) provision forloss on sales of subsidiaries and affiliates’ stocks and ¥4.1
billion ($44 million) loss on transfer of subsidiaries andaffiliates’ stocks upon transfer of shares in Shin Nikkei Co.,
Ltd., along with ¥0.4 billion ($4 million) repair and othercosts related to resin sashes as cost of corrective measures for
product defects.
As a result, the loss before income taxes and minority
interests during the period under review was ¥5.8 billion ($62
million). Corporate, inhabitant and business taxes increased¥1.2 billion year on year, to ¥2.3 billion ($25 million).
Meanwhile, deferred income taxes during the period underreview were decreased by ¥9.7 billion, as a result of recording
deferred tax assets in respect of part of the hitherto valuation

Earnings and Expenses
Under such circumstances, the NLM Group’s consolidated net
sales decreased 16.9% year on year, to ¥460.7 billion ($4,951
million). 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 20.7% year on year, to¥378.8 billion ($4,071 million), while the cost to sales ratio
improved 4.0 percentage points year on year, to 82.2%.
Selling, and general administrative expenses decreased 16.3%
year on year, to ¥74.2 billion ($798 million). As a result,
Net Sales By Segment
700

Total Net Assets

Equity Ratio

150

25

120

20

90

15

60

10

30

5

600
500
400
300
200
100
0

2006

Billions of yen

2007

2008

2009

Years ended March 31

Aluminum Ingot and Chemicals
Aluminum Sheet and Extrusions
Fabricated Products and Others
Building Materials

18

2010

0

2006

Billions of yen

2007

2008

2009

0

2010

As of March 31

%

2006

2007

2008

2009

2010

As of March 31

losses on shares in affiliated companies concerning Shin
Nikkei Co., Ltd..
As a result of the above, net income/loss transitioned
from ¥31.4 billion net loss in the previous year to ¥2.1 billion($22 million) net income in the period under review. The
average number of shares outstanding decreased from544,306,000 in the previous year to 544,094,000 in the year
under review. Therefore, net income/loss per sharetransitioned from ¥57.77 net loss in the previous year to¥3.83 ($0.04) net income in the period under review. There isno cash dividend per share, which is on par with the previous
year, in accordance with a resolution at the General Meetingof Shareholders held on June 29, 2010.
Assets, Liabilities and Shareholders’ Equity
Total assets increased 0.5% year on year, to ¥481.0 billion($5,170 million), resulting primarily from the influence ofan increase in the balance of notes and accounts receivable–
trade as well as in deferred tax assets in investments andother assets, while inventories and property, plant andequipment decreased.
Total liabilities decreased 0.5% year on year, to ¥387.9
billion ($4,169 million), as a result of redemption of bonds
and a decrease in short-term borrowings, while notes andaccounts payable-trade increased.
Interest-bearing debt decreased ¥10.0 billion year on
year, to ¥221.7 billion, thanks primarily to the redemption ofbonds.
Net assets increased 4.9% year on year, to ¥93.1 billion($1,001 million), thanks primarily to an increase in retained
earnings due to record net income in the period under review,
as well as the influence of an increase in valuation andtranslation adjustments. Net assets per share increased 5.8%,
to ¥163.13 ($1.8), while the equity ratio improved 1.0
percentage point, to 18.5%.
Cash Flows
Cash and cash equivalents on a consolidated basis as ofMarch 31, 2010 increased ¥1.6 billion (up 3.7%) year on year,to ¥45.6 billion ($491 million).
Net cash provided by operating activities decreased ¥0.3
billion (down 1.1%) year on year, to ¥26.4 billion ($284
million), which is nearly the same amount as the previous
year.
Net cash used in investing activities decreased ¥6.3 billion(down 28.5%) year on year, to ¥15.8 billion ($170 million),
thanks primarily to a decrease in payments for purchase of
fixed assets.

In the fiscal year under review, ¥8.9 billion ($95 million)
net cash was used in financing activities, compared with ¥6.4
billion net cash provided by the same activities in theprevious year, reflecting mainly the redemption of bonds andrepayment of borrowings during the year.
Outlook for Fiscal 2010
Whereas the outlook of the global economy riddled withcritical issues including the current credit crisis in Greece, islikely to remain in the balance, leaving no room for
optimism, it is expected to get on a track for moderate
recovery, thanks primarily to the growth in emerging
economies not least China. Meanwhile, the Japanese economy
is also expected to move towards recovery albeit at a gradualpace, driven primarily by the exporting sector supported by
the solid external demand.
In such circumstance, the NLM Group developed threeyear Mid-Term Management Plan starting in the fiscal year
ending March 2011, with the strategic purposes to strengthen
our management base for sustainable growth as well as toengineer significant leap forward in business development in
the recovery phase expected to arrive later. Under the plans,
we aim at enhancing earning power through focused
allocation of management resources to the business units
targeting growing markets, further strengthening of thebusiness areas where we dominate as market leader andaccelerated development of overseas business, along with
development of new products and businesses using integrated
strength of the Group based on a wealth of expertise inaluminum built up over the years, on top of the technologicalcapabilities that fully exploit aluminum and other raw
materials, let alone contribution to conservation andprotection of the global environment involving such new
products and businesses.
Referring to the outlook of the NLM Group’s businessperformance in fiscal 2010*, although the sales is bound tobe significantly reduced to ¥380.0 billion as a result of thetransfer of all of its shares in Shin Nikkei Co., Ltd to the JS
Group Corporation on April 1, 2010, we are projecting, thanks
primarily to expected increase in sales at each businesssegment, ¥16.0 billion operating profit, ¥10.0 billion ordinary
profit and ¥5.5 billion net income, along with ¥10.11 net
income per share while cash dividends per share is to be
determined later.
(Note)* Figures are as of May 14, 2010, the date of announcement.

19

CONSOLIDATED BALANCE SHEETS

Nippon Light Metal Company, Ltd. and consolidated subsidiaries

2009

March 31,
2010

(Millions of yen)

2010
(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 ¥ 44,223 ¥ 45,843
124,230
136,644
26,73222,751
28,947
23,57019,395
17,220
6,629
4,159
9,838
10,124(2,608)(1,472)
257,386
258,839$ 492,723
1,468,659
244,529
253,332
185,082
44,701
108,813(15,821)
2,782,018

Property, plant and equipment (Note 5):
Land 
Buildings and structures 
Machinery and equipment 
Construction-in-progress 
Accumulated depreciation 
Total property, plant and equipment 

63,076146,260
295,524
5,736(334,365)
176,23160,720140,116
289,607
4,391(329,222)
165,612652,623
1,505,976
3,112,715
47,195(3,538,500)
1,780,009

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

1,376
3,629
5,005

1,354
3,793
5,147

14,55340,76755,320Investments 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 

25,317
6,548
10,590(2,506)39,94928,075
17,4279,320(3,398)51,424

301,752
187,307
100,172(36,522)552,709¥478,571¥481,022$5,170,056

Total assets 

20

2009

March 31,
2010

(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
(984,847 shares in 2009 and 1,071,652 shares in 2010) 
Total shareholders’ equity 
Valuation and translation adjustments:
Net unrealized gains on securities (Note 4) Net unrealized gains (losses) on hedges (Note 1(n)) 
Revaluation surplus (Note 10) 
Foreign currency translation adjustments 
Total valuation and translation adjustments 
Minority interests in consolidated subsidiaries 
Total net assets Contingent liabilities (Note 14)
Total liabilities and net assets 

2010(Thousands of
U.S. dollars)(Note 2)

¥108,851
34,09078,063854—
42,528264,386¥100,202
19,44086,3001,737
4,457
37,048249,184$1,076,978208,942
927,558
18,66947,904
398,195
2,678,246

91,07027,163522
6,649
125,404
389,790

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

1,134,953
287,726
5,610
62,6181,490,907
4,169,153

39,08525,42020,83539,08525,42022,919420,088273,216
246,335

(170)

(179)

(1,924)85,17087,245

937,715

374
(991)
145
(783)
(1,255)
4,866
88,781

1,590
158
145
(386)
1,507
4,372
93,12417,0891,698
1,559(4,149)16,197
46,9911,000,903¥478,571¥481,022$5,170,056

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

21

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

Year ended March 31,
2010

2009

(Millions of yen)

Net sales 
Cost of sales (Note 13) 
Gross profit 
Selling, general and administrative expenses (Note 13) 
Operating profit (loss) 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 (loss) Special gains:
Gain on reversal of accrued special retirement expenses 
Total special gains Special losses:
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 
Loss on impairment of fixed assets (Note 15) 
Restructuring loss 
Loss on disposal of fixed assets 
Total special losses 
Loss before income taxes and minority interests 
Income taxes (Note 8):
Current Deferred 
Minority interests in net loss of consolidated subsidiaries 
Net income (loss) Per share of common stock (Note 16):
Net income (loss):
Basic Diluted 
Cash dividends 
The accompanying notes are an integral part of these financial statements.

22

2010
(Thousands of
U.S. dollars)(Note 2)¥554,094 ¥460,681
477,374
378,796
76,72081,88588,612
74,212(11,892)
7,673$4,951,429
4,071,324
880,105
797,635
82,470

147
1,001
766
407
2,215
4,536

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

1,290
13,091
7,029
2,966
23,775
48,151

3,750
2,025
3,805
9,580
(16,936)

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

38,61820,27142,906
101,795
28,826

—
—

695
695

7,470
7,470

—
—
1,859
5,047
5,245
2,461
437
15,049(31,985)

4,457
4,056
387
191
99
—
—
9,190
(5,813)47,904
43,594
4,160
2,053
1,064
—
—
98,775(62,479)

1,110
2,291
457
(9,684)
1,567(7,393)(2,110)(504)¥(31,442) ¥ 2,084

24,624(104,084)(79,460)(5,418)$ 22,399(U.S. dollars)(Note 2)(Yen)¥ (57.77) ¥
—
—

3.83
3.63
—

$

0.04
0.04
—

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

Shareholders’ equity

Balance at March 31, 2008 
Net loss 
Cash dividends (Note 9) Net increase in treasury stock 
Net unrealized losses on
securities (Note 4) Net unrealized losses on hedges 
Foreign currency translation
adjustments Net decrease in minority interests
in consolidated subsidiaries 
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 Commonstock

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

Retainedearnings¥53,911(31,442)(1,634)¥2,219

¥308

¥145

¥793

(48)

¥7,238 ¥128,997(31,442)(1,634)(48)(1,845)(1,299)(1,299)(1,576)39,08525,42020,835
2,084

(170)

374

¥39,085¥25,420¥22,919

Additional
paid-in
capitalRetainedearnings$420,088 $273,216 $223,936
22,399

(991)

145

(783)

(9)
1,216

Commonstock

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 ¥(122)(1,845)

Shareholders’ equity

Balance at March 31, 2009 
Net income Treasurystock,
at costValuation and translation adjustments
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)¥(179)¥1,590¥145(2,372)
88,781
2,084
(9)

397

397

¥(386)(494)(494)¥4,372 ¥ 93,124

Valuation and translation adjustments
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)$(1,827) $ 4,020 $(10,652)$1,559(97)$(8,416) $52,301 $ 954,225
22,399(97)

13,06913,06912,35012,3504,267$420,088 $273,216 $246,335(2,372)
4,866

1,216
1,149

1,149

¥158

(1,576)$(1,924) $17,089 $ 1,698$1,5594,267(5,310) (5,310)$(4,149) $46,991 $1,000,903

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

23

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

2009

Year ended March 31,
2010(Millions of yen)

Cash flows from operating activities
Loss before income taxes and minority interests 
Depreciation and amortization 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 
Loss on impairment of fixed assets 
Restructuring loss 
Loss on disposal of fixed assets Gain on reversal of accrued special retirement expenses 
Increase (Decrease) in allowance for doubtful accounts 
Decrease in accrued pension and severance costs Interest and dividend income Interest expense 
Equity in earnings of affiliates (Increase) Decrease in notes and accounts receivable – trade 
Decrease in inventories 
Increase (Decrease) 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
Net decrease in time deposits 
Payments for purchases of fixed assets Proceeds from sales of fixed assets 
Payments for purchases of investment securities Proceeds from sales of investment securities 
Purchase of stocks of subsidiaries and affiliates Proceeds from sales of stocks of subsidiaries and affiliates 
Net increase in long-term loans receivable 
Other Net cash used in investing activities 
Cash flows from financing activities
Net increase (decrease) in short-term borrowings Proceeds from long-term debt 
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 provided by (used in) financing activities 
Effect of exchange rate changes on cash and cash equivalents 
Net increase in cash and cash equivalents Cash and cash equivalents at beginning of year 
Increase in cash and cash equivalents resulting from merger withunconsolidated subsidiaries
Cash and cash equivalents at end of year (Note 3) 
The accompanying notes are an integral part of these financial statements.

24

2010
(Thousands of
U.S. dollars)(Note 2)

¥(31,985)
22,113
—
—
1,859
5,047
5,245
2,461
437
—
1,131
(934)
(552)
3,750
(1,001)47,22911,239(28,345)(1,858)35,836685(3,734)(2,469)(675)—(2,969)26,674¥(5,813)
20,717
4,457
4,056
387
191
99
—
—
(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$(62,479)
222,668
47,904
43,594
4,160
2,053
1,064
—
—
(7,470)(2,623)(4,321)(3,493)38,618(13,091)(125,505)
122,10980,331
22,302365,8215,439(39,542)(29,708)(12,350)(3,353)(2,687)
283,62047(22,567)
490
(48)
65
—
849
(401)
(521)
(22,086)

19(15,043)
290
(38)
346
(797)
269
(7)
(831)
(15,792)

204(161,683)
3,117
(408)
3,719
(8,566)2,891(75)(8,932)(169,733)

16,122
19,104(26,497)———(1,611)
(283)
(413)
6,422
(34)
10,97633,006(8,654)31,005(24,405)
1,970(9,950)
2,000
(16)
(13)
(817)
(8,880)(74)
1,642
44,003(93,014)333,244(262,307)
21,174(106,943)
21,496(172)(140)(8,781)(95,443)(796)
17,648472,947

21¥ 44,003—¥45,645—$490,595

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.
(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.
On July 5, 2006, the Accounting Standards Board of Japan (“ASBJ”) issued ASBJ Statement No. 9, “Accounting Standard for Measurement of
Inventories.” Effective April 1, 2008, the Company adopted this accounting standard. The net book value of inventories held for sale in the ordinary
course of business is written down when their net realizable values decline. The effect of this change for the year ended March 31, 2009, was toincrease operating loss, ordinary loss, and loss before income taxes and minority interests by ¥7,596 million, and increase net loss by ¥4,873
million as compared to the amounts which would have been recorded under the previous method. In addition, in accordance with the change,
devaluation on inventories, which was previously recorded as non-operating expenses, has been changed to be recorded as cost of sales. The effectof this change for the year ended March 31, 2009, was to increase operating loss by ¥2,159 million.
(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.

25

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(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, 2008, the Company and its domestic consolidated subsidiaries have changed their useful life of machinery and equipment
stimulated by the revision made to the Corporate Tax Law which went into effect on April 1, 2008. The effect of this change for the year ended
March 31, 2009 was to increase operating loss, ordinary loss, and loss before income taxes and minority interests by ¥2,127 million , and increase
net loss by ¥1,439 million 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. Unrecognized transition obligation is amortized by the straight-line
method over a period of 12 years and unrecognized actuarial gain or loss is amortized by the declining-balance method over a period of 12 years
from the year following that in which it arises, except for unrecognized costs with respect to employees who retired under the early retirement
program which were fully amortized at the time of the employees’ retirement.
Effective April 1, 2009, the Company and its consolidated subsidiaries adopted the accounting standard, ASBJ Statement No. 19 “Partial
Amendments to Accounting Standard for Retirement Benefits (Part 3).” There is no effect of this change for the year ended March 31, 2010.
(l) Lease transactions
Effective April 1, 2008, the Company adopted the accounting standard, ASBJ Statement No. 13 “Accounting Standard for Lease Transactions” andASBJ Guidance No. 16 “Guidance on Accounting Standard for Lease Transactions.” released on March 30, 2007. Under this accounting standard,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. The effect of this change for the year ended March 31, 2009 was insignificant.
(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.
26

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

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 (loss) per share
Basic net income (loss) per share of common stock, presented in the accompanying consolidated statements of operations, is computed based on
the weighted 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.
(s) Unification of Accounting Policies
On May 17, 2006, the ASBJ issued ASBJ Practical Issues Task Force No. 18, “Practical Solution on Unification of Accounting Policies Applied toForeign Subsidiaries for Consolidated Financial Statements.” Effective April 1, 2008, the Company adopted this accounting standard and mademodification on consolidation accounting. The effect of this change for the year ended March 31, 2009 was insignificant.
(t) Construction Contracts
Until the year ended March 31, 2009, the Company and its consolidated subsidiaries applied the percentage-of-completion method to construction
contract whose contract amount was more than 1 billion yen and the projected schedule longer than 1 year, while the completed-contract method
was applied to other construction.
Effective April 1, 2009, the Company and its consolidated subsidiaries adopted the accounting standard, ASBJ Statement No. 15 “AccountingStandard for Construction Contracts” and ASBJ Guidance No. 18 “Guidance on Accounting Standard for Construction Contracts” released on
December 27, 2007. Under this accounting standard, the Company and its consolidated subsidiaries apply the percentage-of-completion method tothe construction contract whose degree of progress at the balance sheet date can be estimated reliably, while the completed-contract method isapplied to construction contract where the outcome cannot be reliably estimated.
The effect of this change for the year ended March 31, 2010 was insignificant.
(u) Transfer of Subsidiaries’ Stocks
On March 9, 2010, the Company resolved to transfer all stocks of Shin Nikkei Co., Ltd. (“SNC”), a subsidiary of the Company, to JS Group
Corporation (“JS Group”), and transferred them on April 1, 2010. The reason for the stock transfer was that the Company judged that SNC
corporate value would be improved by leaving management of SNC with the JS Group, which has a stable management foundation that canmaintain the SNC brand and ensure the employment of employees. SNC engages in the production, sale, and construction of aluminum sashes,
curtain walls, and other building materials. The JS Group engages in managing companies operating the housing and urban environmental
management business. The number of SNC shares held by the Company and the subsidiary before the transfer was 65,400,000, which became zeroafter the transfer of all the shares. The amount of the transfer was ¥1 per 100 shares, totaling ¥654,000.
2. U.S. Dollar Amounts
The rate of ¥93.04 = U.S.$1, the approximate exchange rate prevailing on March 31, 2010, 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, 2009 and 2010 is summarized as follows:
2010

2009
(Millions of yen)

Cash and deposits Time deposits with maturities in excess of 3 months 
Cash and cash equivalents ¥44,223(220)¥44,003¥45,843(198)¥45,645

2010(Thousands of
U.S. dollars)$492,723(2,128)$490,595

27

NOTES TO THE 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, 2009 and 2010 were as follows:
2010

2009

2010

(Millions of yen)

¥6,284
2,829(137)¥8,976¥3,754
1,277(436)¥4,595

Cost 
Unrealized gains 
Unrealized losses 
Carrying amount (Thousands of
U.S. dollars)$67,541
30,406(1,472)$96,475(b) Sales of available-for-sale securities
The realized gains on sales of available-for-sale securities for the years ended March 31, 2009 and 2010 were as follows:
2010

2009

2010

(Millions of yen)

¥346
212
0

¥65
34
6

Sales proceeds 
Realized gains on sales 
Realized losses on sales (Thousands of
U.S. dollars)$3,7192,2790(c) Held-to-maturity securities and available-for-sale securities without available market quotations
The carrying amounts of held-to-maturity securities and available-for-sale securities without available market quotations at March 31, 2009 wereas follows:
2009(Millions of yen)Held-to-maturity securities:
Privately offered domestic debt securities 
Available-for-sale securities:
Equity investments in non-public companies 
Other ¥73

11,05821¥11,152(d) Maturities of debt securities
Maturities of debt securities at March 31, 2009 were as follows:2009
Due within
one year

Due after one year but
within five years

Due after five years but
within ten years

Due after
ten years(Millions of yen)

Debt securities:
Government and municipal bonds 
Corporate debt securities 
Other 

28

¥15
—
10
¥25

¥34
10
—
¥44

¥9
—
—
¥9

¥5
—
—
¥5

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

5. Short-Term Borrowings and Long-Term Debt
Short-term borrowings at March 31, 2010 bore interest at annual rates ranging from 0.53% to 5.84% and mainly consisted of bank loans andshort-term notes maturing at various dates within one year.
Long-term debt at March 31, 2009 and 2010 comprised the following:
2010

2009

2010

(Millions of yen)

Loans, principally from banks and insurance companies due from 2009 to 2018with interest rates ranging from 0.90% to 7.00%:
Secured 
Unsecured Loans, principally from banks and insurance companies due from 2010 to 2018with interest rates ranging from 0.90% to 5.94%:
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, 2009 (*1) 
Zero coupon convertible bonds due September 30, 2016 (*2) Capital lease obligations due from 2009 to 2029 with interest rates ranging from
3.40% to 7.20% Capital lease obligations due from 2010 to 2029 with interest rates ranging from
1.97% to 7.20% Less: portion due within one year 
Total long-term debt ¥ 16,327
75,510(Thousands of
U.S. dollars)

¥

—
—

$

—
—

—
—
—
589
9,955
20,073

20,68477,7362,000
558—
20,063

222,313835,512
21,496
5,997—
215,638

2,706

—

—

—
125,160(34,090)¥ 91,070

3,995
125,036(19,440)¥105,596

42,9391,343,895(208,942)$1,134,953(*1) The details of the zero coupon convertible bonds due September 30, 2009 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: 

Common stockNone¥350 per share¥10,050 million
From August 9, 2004 to September 16, 2009(*2) 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: 

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

A summary of assets pledged as collateral for short-term borrowings and long-term debt at March 31, 2010 is as follows:
Cash and deposits Property, plant and equipment 
Other intangible assets 
Investment securities (Millions of yen)(Thousands of
U.S. dollars)¥
16
50,1184179$
172
538,672
441
849(Millions of yen)(Thousands of
U.S. dollars)¥ 19,440
16,711
21,432
17,294
16,38033,716¥124,973$ 208,942
179,611230,353
185,877
176,053362,382$1,343,218

The aggregate annual maturities of long-term debt outstanding at March 31, 2010 are summarized as follows:
Years ending March 31,

2011 
2012 
2013 
2014 
2015 
Thereafter 

29

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

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 sheet as of March 31, 2010 and estimated fair value are as follows:2010
Carrying Value *1

Estimated Fair Value *1

Difference(Millions of yen)

(1) Cash and deposits ¥ 45,843(2) Notes and accounts receivable-trade 136,644(3) Investment securities
Stocks of subsidiaries and affiliates 
3,021
Other securities 6,284(4) Notes and accounts payable-trade (86,300)(5) Short-term borrowings *2 (100,202)(6) Bonds (22,621)(7) Long-term borrowings *2 
(98,420)269(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

¥ —
—

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

2010
Carrying Value *1

Estimated Fair Value *1

Difference(Thousands of U.S. dollars)(1) Cash and deposits $ 492,723(2) Notes and accounts receivable-trade 
1,468,659(3) Investment securities
Stocks of subsidiaries and affiliates 
32,470
Other securities 
67,541(4) Notes and accounts payable-trade (927,558)(5) Short-term borrowings *2 
(1,076,978)(6) Bonds (243,132)(7) Long-term borrowings *2 
(1,057,825)
2,891(8) Derivatives *1 Liabilities are shown in parenthesis.
*2 The current portion of long-term borrowings is included in long-term borrowings.
30$ 492,723
1,468,659$——14,682
67,541(927,558)(1,076,978)(217,713)(1,055,503)
2,891(17,788)———
25,4192,322—

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

Notes:
1. Method for determining the estimated fair value of financial instruments and other matters related to securities and derivative transactions(1) Cash and deposits, (2) Notes and accounts receivable-trade
Since these items are settled in a short period of time, their carrying value approximates fair value.
(3) Investment securities
The fair value of stocks is based on quoted market prices. For information on securities classified by holding purpose, refer to Note 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 (¥7,642 million ($82,137 thousand)) without market prices are not included in “(3) Investment
securities” because forward cash flows cannot be estimated, and it is extremely difficult to determine the fair value.
3. Unlisted stocks (¥11,128 million ($119,604 thousand)) are not included in “(3) Investment securities” because no quoted market prices areavailable, forward cash flows cannot be estimated, and it is extremely difficult to measure the fair value.
4. The redemption schedule for receivables and marketable securities with maturities at March 31, 2010 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 

Due after
ten years¥ 45,772
136,644

¥—
—

¥—
—

¥—
—

13
—
¥182,429

23
10
¥ 33

9
—
¥ 9

3
—
¥ 3

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)2010
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$ 491,960
1,468,659

$ —
—

$—
—

$—
—

140
—
$1,960,759

247
108
$355

97
—
$ 97

32
—
$ 32

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

Bonds Long-term borrowings ¥ —18,406¥18,406
Due within
one year2010
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¥32,8752010
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¥——¥—
Due after
ten years$—$ 21,496$220,959$—
197,829
727,612132,384—$197,829$749,108$353,343$—
Effective April 1, 2009, the Company and its consolidated subsidiaries adopted the accounting standard, ASBJ Statement No. 10 “AccountingStandard for Financial Instruments” and ASBJ Guidance No. 19 “Guidance on Disclosures about Fair Value of Financial Instruments” released on
March 10, 2008.
Bonds Long-term borrowings 

31

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

7. Retirement Benefit Plans
The Company and its domestic consolidated subsidiaries have defined benefit tax-qualified pension plans and a non-contributory plan covering
substantially all employees in Japan. Additional benefits may be granted to employees according to the conditions under which termination of
employment occurs. Certain foreign subsidiaries have defined contribution pension plans.
Accrued pension and severance costs at March 31, 2009 and 2010 are summarized as follows:
2010

2010
(Thousands of
U.S. dollars)¥(52,124)
20,033(32,091)
3,414
2,110
(203)
¥(26,770)$(560,232)
215,316(344,916)
36,694
22,678(2,182)$(287,726)

2009(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 ¥(57,684)
19,376(38,308)
5,657
5,488
—
¥(27,163)

The net pension and severance costs related to retirement benefits for the years ended March 31, 2009 and 2010 are summarized as follows:
2010

2009

2010
(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 *2 
Net pension and severance costs ¥3,042
1,151
(403)
2,243
922
¥6,955¥3,453
1,289
(575)
2,443
918
¥7,528$32,696
12,371(4,332)
24,108
9,910$74,753*1 The above figures include ¥418 million and ¥357 million ($3,837 thousand) for the year ended March 31, 2009 and 2010, in respect of employees
who retired during each year. This amount was fully amortized at the time of employees’ retirement.
*2 The above figures include an amount of ¥317 million for the years ended March 31, 2009 in respect of employees who retired during the year ended
March 31, 2009 under the early retirement program. This amount was fully amortized at the time of employees’ retirement.
*3 In addition to *1 and *2 above, additional benefits of ¥4,312 million and ¥679 million ($7,298 thousand) under the early retirement program were
granted for the year ended March 31, 2009 and 2010. The total amounts of all these costs are included within special losses as “Additional retirement
allowance for early retirement program” for the year ended March 31, 2009, “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:
2010

2009

Discount rate Expected rate of return on plan assets 
Method of attributing projected benefits to periods of employee service 
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

2.5%
Mainly 2.5%
Straight-line basis
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, 2009 and 2010.
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, 2009 and 2010 were as follows:
2010

2009
(Millions of yen)

Deferred tax assets:
Tax loss carryforwards 
Accrued pension and severance costs 
Loss on impairment of fixed assets Allowance for doubtful accounts 
Devaluation on inventories 
Accrued bonuses 
Loss on disposal of fixed assets 
Other Total deferred tax assets 
Valuation allowance 
Total deferred tax assets, net of valuation allowance 
32¥16,129
10,384
6,676
3,661
3,209
2,313
1,374
13,22356,969(40,611)
16,358¥28,537
10,193
5,882
3,347
—
2,255
1,310
10,54862,072(38,589)
23,483

2010(Thousands of
U.S. dollars)$306,718
109,555
63,22035,974—
24,237
14,079113,371
667,154(414,757)
252,397

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

2010

2009

2010

(Millions of yen)

Deferred tax liabilities:
Revaluation gain on subsidiaries 
Unrealized gain on securities 
Other Total deferred tax liabilities 
Net deferred tax assets 

(887)
(442)
(2,146)(3,475)¥12,883(Thousands of
U.S. dollars)(900)(1,048)(520)(2,468)¥21,015(9,673)(11,264)(5,589)(26,526)$225,871

Deferred tax assets and liabilities that comprise net deferred tax assets are included in the accompanying consolidated balance sheets as follows:
2010

2009

2010

(Millions of yen)

Deferred tax assets (current assets) Deferred tax assets (investments and other assets) 
Other long-term liabilities ¥6,6296,548(294)(Thousands of
U.S. dollars)¥ 4,159
17,427(571)$ 44,701
187,307(6,137)

In addition to the above, the Company recorded deferred tax liabilities on land revaluation surplus of ¥522 million ($5,610 thousand) at March
31, 2009 and 2010 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 years ended March 31, 2009 and 2010 have been omitted.
9. Appropriations of Retained Earnings
No cash dividends were proposed and approved at the ordinary general meeting of shareholders of the Company held on June 29, 2010.
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 or credit to income periodic lease payments and receipts 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 ¥1,108 million and¥842 million ($9,050 thousand), and receipts under finance lease contracts totaled ¥112 million and ¥45 million ($484 thousand) for the years
ended March 31, 2009 and 2010, respectively. Future lease payments and receipts under finance leases and non-cancelable operating leases,
including interest, at March 31, 2009 and 2010 are summarized as follows:
2010

2009

2010

(Millions of yen)

Lease payments:
Due within one year 
Due after one year 
Lease receipts:
Due within one year 
Due after one year (Thousands of
U.S. dollars)¥1,0102,076¥3,086¥ 9051,109¥2,014$ 9,727
11,920$21,647

¥

¥

$

45
—
¥ 45

¥

—
—
—

$

—
—
—

33

NOTES TO THE 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, 2009 and 2010 would have been as follows:
2009
Cost

Accumulated
depreciation/amortization¥5,497548¥6,045¥2,665308¥2,973

Accumulated
impairment loss

Netamount(Millions of yen)

Machinery and equipment 
Intangible assets 

¥26
—
¥26

¥2,806240¥3,046

2010
Cost

Machinery and equipment 
Intangible assets ¥4,230426¥4,656

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

¥2,373298¥2,671

¥7
—
¥7

Net
amountNetamount(Thousands of
U.S. dollars)¥1,850128¥1,978$19,884
1,376$21,260

Depreciation (amortization) for these leased assets computed using the straight-line method over the respective lease periods would have been
¥1,108 million and ¥842 million ($9,050 thousand) for the years ended March 31, 2009 and 2010, respectively.
Fixed assets, which are leased to other companies under finance leases without options to transfer ownership of the leased assets to the lessee atMarch 31, 2009, are summarized as follows:
2009
Cost

Accumulated
depreciation

Net
amount(Millions of yen)

Machinery and equipment 

¥166

¥128

¥38

Depreciation for these leased assets computed using the straight-line method over the respective lease periods would have been ¥93 millionand ¥38 million ($408 thousand) for the years ended March 31, 2009 and 2010, respectively.
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.
At March 31, 2009, there were no derivative financial instruments, except for those instruments to which hedge accounting was applied.
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, 2009 and2010 were ¥5,972 million and ¥5,085 million ($54,654 thousand), respectively.
14. Contingent Liabilities
Contingent liabilities at March 31, 2010 amounted to ¥3,104 million ($33,362 thousand) for loans guaranteed and other guarantees given in theordinary course of business, including ¥600 million ($6,449 thousand) shared by other joint guarantors, ¥457 million ($4,912 thousand) for notes
discounted, and ¥20 million ($215 thousand) for notes endorsed.

34

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

15. Loss on Impairment of Fixed Assets
The Company and its consolidated subsidiaries recognized ¥5,245 million of loss on impairment of fixed assets, of which the significant items forthe year ended March 31, 2009, are presented below:
2009
Location

Funabashi City,
Chiba Prefecture

Major use

Asset category(Millions of yen)

Manufacturing facilities which
are planned to be out of use

Buildings and structures
Machinery and equipment¥1,951
1,088

In accordance with withdrawal from material producing department of Funabashi factory as part of summary and reorganization of production
bases, which aims to respond to severe business environment and increasingly intense competition of building material segment, the Company
and its consolidated subsidiaries recognized ¥3,039 million of the impairment loss. The facilities have been written down to memorandum value,
since they are planned to be out of use.
The Company and its consolidated subsidiaries recognized ¥2,814 million ($30,245 thousand) of loss on impairment of fixed assets as “Loss ontransfer 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(Millions of yen)(Thousands of
U.S. dollars)¥1,520741
352$16,337
7,964
3,784

Land
Land
Buildings and structures

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 ($16,337 thousand) of loss on impairment, upon deeming such assets to be impaired. In
addition, since a plant site in Tochigi City, Tochigi Prefecture is planned to be reduced and its redundant building is to be leased out in accordancewith the change of business environment, it shows signs of impairment. Therefore, the Company and its consolidated subsidiaries recognized¥1,093 million ($11,748 thousand) of loss on impairment.
16. Net Income (Loss) Per ShareA reconciliation of the differences between basic and diluted net loss per share for the years ended March 31, 2009 and 2010 is summarized asfollows:
2009

Net loss 
Basic net loss 
Effect of convertible bonds 
Diluted net loss 

Net
loss
(Millions of yen)

Weighted
averagenumber ofshares(Thousands of shares)¥31,442
31,442—¥31,442544,306—
544,306

Net
income(Millions of yen)

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

544,094
28,571
572,665

Net
loss
per share(Yen)¥57.77¥ —2010

Net income Basic net income Effect of convertible bonds 
Diluted net income 

Net income per share(Yen)(U.S. dollars)

¥3.83

$0.04

¥3.63

$0.04

Due to the recording of net loss, diluted net loss per share was not presented for the years ended March 31, 2009.

35

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

17. Subsequent Events
The meeting of shareholders on June 29, 2010 duly approved a resolution for a reduction in legal capital surplus and an appropriation of surplus,
which had been approved at the meeting of the Board of Directors on May 14, 2010.
The objectives of reducing the legal capital surplus and the appropriation of surplus are to cancel the loss carried forward in order to allow for
dividend resources and enable the payment of a cash dividend. The reduction in legal capital surplus is, based on Article 448-1 of the Corporate
Law of Japan, to implement a partial reversal of legal capital surplus and its transfer to other capital surplus. Accordingly, the amount of legal
capital surplus was reduced by ¥4,241 million ($45,583 thousand). The appropriation of surplus is, based on Article 452 of the Corporate Law ofJapan, a reduction of the total amount of other capital surplus after the above transfer of ¥14,241 million ($153,063 thousand) and the reserve foradvanced depreciation of noncurrent assets of ¥26 million ($279 thousand), resulting in an increase of retained earnings brought forward by¥14,267 million ($153,342 thousand) in order to cancel out the same amount of loss carried forward.
The schedule for the reduction in legal capital surplus and appropriation of other capital surplus is as follows:(1) Date of resolution of the Board of Directors
May 14, 2010(2) Meeting of shareholders
June 29, 2010(3) Effective dateJune 29, 201018. 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 years ended March 31, 2009 and 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 ¥3,009 million are included.

36

Aluminumingot andchemicals

Aluminum
sheet andextrusions

2009
Fabricatedproducts
Buildingand others
materials(Millions of yen)

Eliminationor
corporate items

Consolidated¥120,725
71,242
191,967
191,219¥ 748¥107,119¥ 4,965¥ 534¥ 5,662¥66,766
25,73492,50098,237¥(5,737)¥58,920¥ 4,271¥
4¥ 5,322¥226,543
15,640242,183
238,207¥ 3,976¥200,747¥ 8,879¥ 514¥ 11,065¥—(115,878)(115,878)(112,869)*1¥ (3,009)¥ (2,502)*2
¥
92
¥
—
¥
95

¥554,094—
554,094565,986¥(11,892)¥478,571¥ 22,113¥ 5,245¥ 24,997*2 Corporate items of ¥22,886 million are included.

¥140,060
3,262
143,322
151,192¥ (7,870)¥109,283¥ 3,906¥ 4,193¥ 2,853

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

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.

Sales:
Customers Intersegment 
Total Operating expenses 
Operating profit (loss) 
Total assets 
Depreciation and amortization 
Loss on impairment of fixed assets Capital expenditures 

Aluminumingot andchemicals

Aluminum
sheet andextrusions¥ 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

2010
Fabricatedproducts
Buildingand others
materials(Millions of yen)

¥198,249
14,544
212,793
203,846¥ 8,947¥211,683¥ 8,497¥—¥ 5,812

Eliminationor corporate
items¥119,422
1,941
121,363
122,742¥ (1,379)¥ 94,618¥ 3,105¥ 2,814¥ 1,662¥
—(76,461)(76,461)(73,858)*1¥ (2,603)¥ 9,290 *2
¥
91
¥
—
¥
74

Consolidated¥460,681—
460,681453,008¥ 7,673¥481,022¥ 20,717¥ 2,913¥ 14,197*2 Corporate items of ¥32,969 million are included.

Aluminumingot andchemicals

Aluminum
sheet andextrusions$ 947,345
446,604
1,393,949
1,357,137$ 36,812$1,124,355$ 50,989$ 1,064$ 46,077$589,736
198,022787,758
795,464$ (7,706)$653,708$ 46,002$—$ 25,387*1 Corporate items of $27,977 thousand are included.

2010
Fabricatedproducts
Buildingand others
materials(Thousands of U.S. dollars)$2,130,793
156,320
2,287,113
2,190,950$ 96,163$2,275,183$ 91,326$—$ 62,468$1,283,555
20,862
1,304,417
1,319,239$ (14,822)$1,016,960$ 33,373$ 30,245$ 17,863

Eliminationor corporate
items

Consolidated$—(821,808)(821,808)(793,831)*1$(27,977)$ 99,850 *2
$
978
$
—
$
795

$4,951,429—
4,951,429
4,868,959$ 82,470$5,170,056$ 222,668$ 31,309$ 152,590*2 Corporate items of $354,353 thousand are included.

As more than 90% of sales for the years ended March 31, 2009 and 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, 2009 and 2010 were summarized as follows:
2009
Export sales andoperations
outside Japan

Consolidated
net sales(Millions of yen)

¥58,497¥554,094

Percentage ofconsolidated
net sales

10.6%

2010
Export sales andoperations
outside Japan

Consolidated
net sales(Millions of yen)

¥56,269¥460,681

Percentage ofconsolidated
net sales

12.2%

2010
Export sales andoperations
outside Japan

Percentage ofConsolidated
consolidated
net sales
net sales(Thousands of U.S. dollars)$604,783$4,951,429

12.2%

37

REPORT OF INDEPENDENT AUDITORS38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%)

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

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

Toyal America Inc.
Illinois, U.S.A.
Phone: 1-815-740-3037
Aluminum powder and paste(100%)

Nikkei (Shanghai) Body Parts
Co., Ltd.
Shanghai, China
phone: 86-21-5986-9388
Automobile components(100%)

Nikkei Siam Aluminium
LimitedThailandPhone: 66-2-529-0136
Aluminum sheet, foil
(100%)NI Nikkei Shenzhen Co., Ltd.
Shenzhen, China
Phone: 86-755-2650-5656
Automobile components(55%)

Nikkei Singapore
Aluminium Pte. Ltd.
Singapore
Phone: 65-6222-8991
Trading and marketing(100%)

EuropeToyal Europe Société par
Actions Simplifiée
Unipersonnelle
Accous, France
Phone: 33-5-59-983-535
Aluminum powder and paste(100%)

Nonfemet International(China-Canada-Japan)
Aluminium Co., Ltd.
Shenzhen, China
Phone: 86-755-2661-1569
Extrusion(18%)

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, 2010)

39

DIRECTORS AND OFFICERS

Directors

Officers

Ichiro Okamoto

President
Representative Director

President
Chief Executive Officer

Takashi Ishiyama

Takashi Ishiyama

Directors

Senior Executive Officers

Tsuyoshi Nakajima
Makoto Fujioka
Mitsuru Ishihara
Tadakazu Miyauchi
Ichiro Okamoto
Masao Imasu
Yoshinobu Hiki
Hidetane Iijima*
Kuniya Sakai*

General Manager of Technology &Development Group,Group Technology Center of Technology &Development Group and Central
Product Safety & Quality AssuranceDiv.

Tsuyoshi Nakajima* Outside Director

Auditors
Standing Statutory Auditors

Yoshihiko Hamabe
Hideki Nakamura
Outside Statutory Auditors

Yuzuru Fujita
Katsuo Wajiki
Yasuo Yuki

In Charge of Overseas Strategy,
Supervision of Strategic Committee
for Product Commercialization andBusiness Development, Accounting
Dept., Purchasing &Logistics Dept. andGroup Metal Center

Makoto Fujioka
General Manager of Internal Control
Office, In Charge of Compliance,
Supervision of Auditing Office andLegal Dept., In charge of Environment
and Specific Projects for Group Sales

Mitsuru Ishihara
Supervision of Rolled Product Div.,
Chemicals Div. and Capacitor Foil Div.
Executive Officers

Tadakazu Miyauchi
Supervision of Heat exchanger Div.,
Metal & Alloy Div., Shaped Parts Div.,
Kambara Complex and Group Casting
CenterKoji Ueno
Supervision of Personnel Dept.,
General Affairs Dept. and IR & Public
Relations, In Charge of Safety

Atsushi Inoue
General Manager of Sheet & Extrusion
Fabricated Products Controlling Dept.,
Supervision of Panel Products andLandscape Products Dept.

Officers

Tadashi Asahi
In Charge of Group Sales Promotion,
General Manager of Osaka/Nagoya
Regional Office

Toshihide Murakami
General Manager of Kambara Complex,
Divisional Manager of Capacitor Foil

Takashi Hara
Divisional Manager of Shaped Parts
and Metal & Alloy

Hiroyasu Hiruma
General Manager of Personnel Dept.

Yasunori Okamoto
General Manager of Planning Dept., In
charge of China and Southeast Asia,
Supervision of Tomakomai Complex

Hirokazu Takatoku
General Manager of Legal Dept. andCompliance Office

Kotaro Yasuda
Divisional Manager of Chemicals

Minoru Sotoike
General Manager of Accounting Dept.

Yasuhiro Sai
Divisional Manager of Rolled Products

Shinichi Shinohara
Divisional Manager of Heat Exchanger

Hideki Amimura
General Manager of Group Metal
Center and Purchasing & Logistics
Dept.
40

(As of June 29, 2010)

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

58,2682010

2009

Millions of yen

For the year:
Net sales 
Operating profit (loss) Net income (loss) ¥554,094 ¥460,681 $4,951,429(11,892)
7,673
82,470(31,442)
2,084
22,399At year-end:
Total assets 
Net assets 
Short-term borrowings and long-term debt,
including bonds and capital lease obligation 

Net Sales

478,571
88,781

481,022
93,124

5,170,056
1,000,903

234,011225,2382,420,873

Operating Profit
35

800

2010
Thousands of
U.S. dollars

Stock Exchange Listings

Tokyo, Osaka
Transfer Agent of Common Stock

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

June 29, 2010

600

25

450

20

The Master Trust Bank of Japan, Ltd.
(trust accounts)(5.0%)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(2.5%)
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)(5.8%)(As of March 31, 2010)

15
10

400

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
02005 2006 2007 2008 2009 2010

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, as2005 2006 2007 2008 2009 2010

Billions of yen

Years ended March 3102005 2006 2007 2008 2009 2010

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.
41

NIPPON LIGHT METAL COMPANY, LTD. ANNUAL REPORT 2010

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