ANNUAL REPORTFor the year ended March 31, 2015

2015

Nittetsu Mining Co., Ltd.
Yusen Building, 3-2, Marunouchi 2-chome
Chiyoda-ku, Tokyo 100-8377, JapanTe l : +81-3-3284-0516
Fax: +81-3-3215-8480
URL: http://www.nittetsukou.co.jp/eng/

Printed in Japan

Nittetsu Mining Co., Ltd.

Financial Highlights

Message from the Management

Consolidated

Operating Conditions and Consolidated Results

Nittetsu Mining Co., Ltd. and Consolidated Subsidiaries
Years ended March 31

During the fiscal year ended March 31, 2015, Japan’s economy enjoyed a recovery, albeit gradual,
Millions of yen

Thousands of
US dollars

thanks to strong public-sector investment and growing private-sector investment driven by improving
corporate earnings, underpinned by the government’s economic stimulus measures and the Bank of

2015

2014

2013

2012

2011

2015

¥ 125,467¥ 114,317¥ 102,840¥ 101,505¥ 107,741$ 1,044,080

5,973

3,903

3,873

3,024

1,638

49,704

170,055

161,325

144,539

132,470

136,145

1,415,127

For the year
Net Sales

Japan’s monetary easing. In this way, the economy overcame the prolonged effects of the drop in

Net Income
At year-end
Total Assets

last-minute demand prior to the consumption tax hike.
In these economic conditions, the Nittetsu Mining Group posted net sales of ¥125,467 million,
up 9.8% year on year, and ordinary income of ¥9,613 million, up 7.3% year on year, driven by a risein sales of limestone, a mainstay product of the Non-Metallic Minerals Division, and an increase inYen

US dollars

Per share data
Net Income per Share¥ 71.75¥ 46.89¥ 46.53¥ 36.32¥ 19.68$ 0.60¥5,973 million, owing to a drop in extraordinary losses.

Consolidated Business Results by Segment

Non-Consolidated
Nittetsu Mining Co., Ltd.
Years ended March 31

Mineral Resources Group
Thousands of
US dollars

Millions of yen

2015

2014

2013

2012

2011

2015

¥ 102,782¥ 92,547¥ 87,079¥ 86,928¥ 94,076$ 855,310

6,536

5,116

3,816

2,754

1,258

54,393For the year
Net Sales

revenue from the Metallic Minerals Division. Net income rose significantly, up 53.0% year on year to

Net Income

Non-Metallic Minerals Division
Net sales of the Non-Metallic Minerals Division grew 2.4%, or ¥1,321 million, over the previous fiscal
year to ¥56,222 million, and operating income increased 10.8%, or ¥634 million, to ¥6,519 million,
reflecting a rise in the sales volume of crushed stone and mainstay product limestone.

Metallic Minerals Division
Net sales of the Metallic Minerals Division expanded 20.5%, or ¥9,443 million, over the previous

At year-end
Total Assets

143,802

134,155

124,968

114,493

119,919

Yen

1,196,662

fiscal year to ¥55,461 million thanks to a rise in the domestic sales price of electrolytic copper and an

US dollars

increase in sales volume of copper concentrates. Operating income, however, declined 0.2%, orPer share data
Net Income per Share¥5 million, to ¥3,420 million due to a drop in copper prices.
¥ 78.52¥ 61.46¥ 45.84¥ 33.08

Note: US dollar amounts are translated from yen, for convenience only, at the rate of ¥120.17=US$1.

¥ 15.11$ 0.65

Machinery & Environmental Engineering Group
The Machinery & Environmental Engineering Group saw net sales advance 0.6%, or ¥56 million, to¥9,303 million, because of strong sales of water treatment agents, a mainstay product of theEnvironmental Engineering Division. Operating income, however, declined 6.2%, or ¥55 million, to¥830 million, due to weak sales from the Machinery Division.

Contents
1

Message from the Management

3

Consolidated Financial Information

4

Balance Sheets

6

Statements of Income

7

Statements of Comprehensive Income / Statements of Cash Flows8

Notes to Consolidated Financial Statements

11

Corporate Information

Real Estate GroupThe Real Estate Group saw net sales decline 0.2%, or ¥4 million, over the previous fiscal year to¥2,655 million, but operating income increased 11.7%, or ¥141 million, to ¥1,355 million thanks toa drop in repair expenses.

Renewable Energy GroupThe Renewable Energy Group saw net sales advance 22.3%, or ¥333 million, from the previous fiscal
year to ¥1,823 million, buoyed by a strong performance by the geothermal business and the1Message from the Management

Consolidated Financial Information
Nittetsu Mining Co., Ltd. and Consolidated Subsidiaries

operation of new solar power plants. Operating income rose 31.5%, or ¥76 million, to ¥319 million
thanks to lower depreciation in the geothermal business.

Net Sales by Business Segment(Year ended March 31, 2015)
Net sales(millions of yen)

Business segment

Capital Expenditures, Financing and Other Related Matters
During the fiscal year ended March 31, 2015, capital expenditures of the Nittetsu Mining Group
totaled ¥7,855 million, up 14.7% year on year. Major outlays during the fiscal year under review
were as follows.

% change fromprevious fiscal year

Real Renewable
Estate Energy% of total
net sales

Non-Metallic Minerals¥ 56,222

2.4

44.8

Metallic Minerals¥ 55,461

20.5

44.2

Machinery & Environmental
Engineering

¥

9,303

0.6

7.4

Real Estate

¥

2,655

(0.2)

2.1

Renewable Energy

¥

1,823

22.3

1.5

¥ 125,467

9.8

100.0

Machinery &Environmental
Engineering
Non-Metallic
Minerals

Sales
Distribution
Ratio
Metallic
Minerals

Major facilities acquired during the fiscal year under review
Nogi Mega Solar Power Plant
Kamaishi Mine Mega Solar Power Plant

Total

Kamihonami Mega Solar Power Plant

Challenges Facing the Group

Breakdown of Net Sales
The future outlook indicates the operating environment facing the Nittetsu Mining Group will continue to(Years ended March 31)(Millions of yen)require caution. Despite expectations of a continuing modest recovery in Japan’s economy, there are still
uncertainties about the future of the global economy, such as weaker growth in China and other emerging

Business segment

Net sales% of total net
sales¥ 31,607

25.2¥ 29,336

25.7¥ 2,270

Crushed stone

6,874

5.5

5,977

5.2

896

Ancillary products
and others

17,73914.1

19,58617.1(1,846)Sub-total

56,22244.8

54,901

48.0

1,321

Electrolytic copper

32,162

25.6

32,13928.1

23

Copper concentrate

16,898

13.5

6,624

5.8

10,273

Others

6,400

5.1

7,254

6.4

(853)

Sub-total

55,461

44.2

46,018

40.3

9,443

¥ 111,684

89.0¥ 100,919

88.3¥ 10,764

Machinery engineering

4,430

3.5

4,440

3.9

(10)

Environmental engineering

4,873

3.9

4,806

4.2

67

9,303

7.4

9,246

8.1

Limestone, calcium
carbonate

Non-Metallic
Mineralsstructure. It will accomplish this by such means as further boosting sales, raising productivity, cutting costs
and strengthening its business continuity plan.
In addition, the Nittetsu Mining Group will continue with its commitment to pursue eco-friendly business
MineralResources

for company-owned forests, and generating power from natural energy.
We extend our appreciation to all shareholders and ask for your continued support and cooperation.

Metallic
Minerals

June 2015

Total

Kimio Sato
Representative Director and President

Machinery &Environmental
Engineering

Total

¥

¥

¥

56

Real Estate

Real estate rentals and sales

2,655

2.1

2,660

2.3

(4)

Renewable
EnergyGeothermal steam supply, solar power,hydroelectric power

1,823

1.5

1,490

1.3

333

¥ 125,467

100.0¥ 114,317

100.0¥ 11,149

Total

2

Increase(decrease)

Net sales

The Nittetsu Mining Group will respond to this operating environment by striving to enhance its businessperformance as it upgrades and expands its operating base and improves and enhances its management

2014% of total net
sales

countries as well as a slowdown in Europe and monetary policy trends in the United States.

activities. These include compliance with ISO14001, greenery initiatives at mined sites, obtaining certification

2015

Major products3

Consolidated Financial Information
Nittetsu Mining Co., Ltd. and Consolidated Subsidiaries

Balance Sheets
As of March 31, 2015 and 2014

AssetsLiabilities and Net Assets
Millions of yen

2015

Thousands of US dollars

2014

Millions of yen

2015

Current Assets

Thousands of US dollars

2015

2014

2015

¥ 10,643¥ 11,106

9,659

9,806

Current Liabilities

Cash and deposits¥ 24,118¥ 14,005$

200,702

Notes and accounts receivable—trade25,58728,216

212,930

Lease investment assets

4,334

4,648

36,072—30

Short-term investment securities

Notes and accounts payable—trade
Short-term loans payable

640

497

5,326

Accounts payable

5,236

4,775

43,576—

Income taxes payable

1,950

702

16,230

Deferred tax liabilities

—

1

—

Provision for bonuses

921

799

7,665

Provision for directors’ bonuses

23

24

198

4,540

3,879

37,783Work in process

7,571

13,19663,005

Raw materials and supplies

1,948

1,676

16,214

Provision for shareholders’ benefits
Other

Other
Allowance for doubtful accounts

12

104

6,085

44,41534,42433,810286,468

250

4,024

3,002

2,328

24,987

(80)

(165)

(673)

Non-Current Liabilities

71,506

68,067595,047

Long-term loans payable

19,064

20,576

158,645

Lease obligations

1,210

953

10,072

Deferred tax liabilities

Property, plant and equipment:
25,96624,932

8,785

8,514

73,106

Provision for directors’ retirement benefits

118

128

982
1,260

Provision for environmental safety measures

151

151

216,085

Provision for special repairs

224

85

1,871

Net defined benefit liability

2,184

2,044

18,178Asset retirement obligations

4,290

3,096

35,704

Other

7,135

7,209

59,377

43,16442,759359,199

77,58976,570645,667

4,176

4,176

34,752

Machinery, equipment and vehicles

11,0799,341

92,201

Land used for mining operations

3,989

4,399

33,196

Land for general use

16,635

16,503

138,433

Construction in progress

918

1,282

7,643

Other

644

421

5,362

59,23456,880492,921

Total Liabilities
Net Assets
Capital stock

Intangible assets

12
5,337

483

Non-Current Assets

Buildings and structures

88,57180,379Lease obligations

Merchandise and finished goods

Deferred tax assets

$

1,669

1,955

13,895

Capital surplus

6,149

6,149

51,176

Retained earnings

65,64560,490546,268

Treasury shares
Shareholders’ equity

Investments and Other Assets

(139)

(134)

(1,163)75,831

70,682

631,033

13,505

11,368112,390

Accumulated Other Comprehensive Income

Investment securities

32,44429,597

269,991

Deferred tax assets

966

869

8,041

Deferred gains or losses on hedges

(252)

198

(2,098)

Other

4,652

4,362

38,720Foreign currency translation adjustment

901

79

7,498

Allowance for doubtful accounts

(400)

(407)

(3,330)Remeasurements of defined benefit plans

Allowance for investment loss

Total Assets

(19)

—

(158)

37,64434,421

313,263¥ 170,055¥ 161,325$ 1,415,127

Valuation difference on available-for-sale securities

Total Accumulated Other Comprehensive Income
Minority interests

(766)

(736)

(6,381)

13,387

10,909111,408

3,246

3,163

27,017

Total Net Assets

92,46684,755

769,460

Total Liabilities and Net Assets¥ 170,055¥ 161,325$ 1,415,127

The accompanying notes are an integral part of these statements.
Totals may not add up due to rounding.

45

Consolidated Financial Information
Nittetsu Mining Co., Ltd. and Consolidated Subsidiaries

Statements of Income

Statements of Comprehensive Income

Years ended March 31, 2015 and 2014

Years ended March 31, 2015 and 2014
Millions of yen

Thousands of US dollars

2015

2014

2015

¥ 125,467¥ 114,317$ 1,044,080

Cost of Sales

95,975

85,136

798,665

Selling, General and Administrative Expenses

19,25819,662160,260

Operating Income

10,232

9,517

85,154

Interest income

41

55

346

Dividends income

677

601

5,640

316

351

2,636

1,036

1,008

8,623

Net Sales

Non-Operating Income:

Other

Millions of yen

2015

2014

2015

¥ 6,627¥ 4,911$ 55,147

Valuation difference on available-for-sale securities

2,137

2,057

17,791

Deferred gains or losses on hedges

(450)

332

(3,749)Foreign currency translation adjustment

1,003

1,708

8,351

(29)

—

(249)

0

0

1

Income before minority interests
Other comprehensive income:Remeasurements of defined benefit plans, net of tax
Share of other comprehensive income of entities
accounted for using equity method

Non-Operating Expenses:

Thousands of US dollars

Interest expenses

401

431

3,341

Share of loss of entities accounted for using equity method

256

161

2,135

Total other comprehensive income

2,661

4,097

22,145Comprehensive income

9,288

9,009

77,293Comprehensive income attributable to owners ofparent

8,451

7,643

70,327837¥ 1,365$ 6,965

Other

Ordinary Income

998

976

8,305

1,656

1,568

13,782

9,613

8,957

79,995Extraordinary Income:Gain on sales of non-current assets

463

228

3,857

Compensation income

34

48

290

Other

22

1

185

520

278

4,332

Loss on sales and retirement of non-current assets

162

139

1,350

Comprehensive income attributable to minority
interests¥

The accompanying notes are an integral part of these statements.
Totals may not add up due to rounding.

Extraordinary Losses:
Impairment loss

138

1,366

1,151

Settlement for occupational diseases

11

6

91

Litigation expenses

—

11

—

Statements of Cash Flows

Other

2

147

20

Years ended March 31, 2015 and 2014

314

1,672

2,614

9,819

7,564

81,713

Income before Income Taxes
Income Taxes:
Income taxes—current

3,144

2,482

26,169

Income taxes—deferred

47

170

397

3,192

2,652

26,566

6,627

4,911

55,147

654

1,008

5,442

Income before Minority Interests
Minority Interests in Income
Net Income
The accompanying notes are an integral part of these statements.
Totals may not add up due to rounding.

6

¥

5,973

¥

3,903

$

49,704

Millions of yen

Thousands of US dollars

2015

2014

2015

¥ 19,811¥ 5,742$ 164,865

Net cash used in investing activities(4,289)(10,186)(35,691)

Net cash provided by (used in) financing activities(3,832)0(31,892)

Effect of exchange rate change on cash and cash equivalents

487

515

4,058

Net increase (decrease) in cash and cash equivalents

12,178(3,927)

101,340

Cash and cash equivalents at beginning of period

11,53915,46796,028¥ 23,717¥ 11,539$ 197,369

Net cash provided by operating activities

Cash and cash equivalents at end of period
The accompanying notes are an integral part of these statements.
Totals may not add up due to rounding.

7

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements

Nittetsu Mining Co., Ltd. and Consolidated Subsidiaries

1. Scope of Consolidation(1) Number of consolidated subsidiaries: 21 companies
Main consolidated subsidiaries:
Funao Mining Co., Ltd., Hachinohe Mining Co., Ltd.,
Sociedad Contractual Minera Atacama Kozan, Hokkaido
Lime Co., Ltd., Nittetsu Mining Consultants Co., Ltd.,
Nittetsukoukenzai Co., Ltd., Kobukuro Techno Co., Ltd.

(2) Names of principal unconsolidated subsidiaries
Shin Yaguki Mining Co., Ltd., Yaguki Aggregate Co., Ltd.
Reason for exclusion from scope of consolidation:
The unconsolidated subsidiaries are small in scale, andtheir total assets, net sales, net income and retained
earnings, etc., (commensurate with equity holdings) do
not have a material effect on the consolidated
financial statements.

2. Application of the Equity Method(1) Number of affiliated companies accounted for by
the equity method:
1 company: Hibi Kyodo Smelting Co., Ltd.

(2) Unconsolidated subsidiaries (Shin Yaguki Mining Co.,
Ltd. and others) and an affiliated company(POLYTETSU-KOREA Co., LTD.) not accounted for by
the equity method are excluded from the scope of
application of the equity method because they have nooverall significance and their net income and retained
earnings (commensurate with equity holdings) would
have an immaterial effect on consolidated financial
statements even if they were excluded from eligibility
for the equity method.

3. Business Years of Consolidated Subsidiaries
Companies with account settlement dates different
from the consolidated account settlement date are as
follows:
Company Name
Settlement Date
Sociedad Contractual Minera
December 31
Atacama Kozan
Minera Nittetsu Chile Limitada
December 31
The financial statements of the consolidated subsidiaries
as of the account settlement date are used. Necessary
adjustments are made in consolidation for significant
transactions occurring between then and theconsolidated account settlement date.

4. Summary of Significant Accounting Policies(1) Valuation standard and method for significant assets(a) Marketable securities
Other marketable securities:
Securities with fair market value:
Valued at fair market value based on market prices,
etc., at the balance sheet date (valuation differences
are directly charged or credited to net assets, andcost of securities sold calculated by the movingaverage method).
Securities without fair market value:
Valued at cost by the moving-average method.
(b) Derivatives
Market value method(c) Inventories
The standard for evaluation is the cost method(book value devaluation method based on the8decline in profitability). The method of evaluation is
the periodic-average method or the first-in, firstout method, depending on the product line or typeof business.

(2) Method for depreciation and amortization ofsignificant depreciable assets(a) Property, plant and equipment (except for lease assets)
The Company and its domestic consolidated
subsidiaries primarily use the declining balancemethod. However, buildings acquired on or after
April 1, 1998, excluding leasehold improvements andauxiliary facilities attached to buildings, aredepreciated using the straight-line method. Certain
structures (major mineshafts) and all mining land are
depreciated using the production output method.
Overseas consolidated subsidiaries primarily use thestraight-line method.
Estimated useful lives are as follows:
Buildings and structures: 5–60 years
Machinery, equipment and vehicles: 3–20 years(b) Intangible assets (except for lease assets)
For mining rights, the production output method isadopted. For others, the straight-line method isadopted. Software for internal use is amortized using
the straight-line method based on the usable period in
the company (5 years).
(c) Lease assets
Leased property under finance leases that do nottransfer ownership of the lease property are computed
over the lease terms assuming no residual value.

(3) Accounting for significant reserves and allowances(a) Allowance for doubtful accounts
At the end of each fiscal year, the Company and its
domestic consolidated subsidiaries set aside anallowance for doubtful accounts in the estimatedunrecoverable amount, based on the Company’s loss
experience for general credit and on the Company’s
individual estimates of future recoverability for specificaccounts, including doubtful accounts.
(b) Allowance for investment loss
The Company sets aside a reserve to compensate forlosses related to investments in affiliates in the mining
business based on the financial standing of theapplicable affiliate.
(c) Provision for bonuses
The Company and its domestic consolidated subsidiaries
set aside a reserve for provision for bonuses, calculated
based on estimated payments to cover payment ofbonuses to employees.
(d) Provision for directors’ bonuses
The Company and its domestic consolidated subsidiaries
set aside a reserve to match provision for bonuses,
calculated based on estimated payments to cover
payment of bonuses to directors.
(e) Provision for shareholders’ benefits
The Company sets aside a reasonable reserve to cover
payments for expenses of the shareholders’ benefits program.
(f) Provision for directors’ retirement benefits
The Company and its domestic consolidated subsidiaries
set aside the amount required to be paid out at the endof the fiscal year to fund the retirement benefits of directors
in accordance with internal company regulations.

(g) Provision for environmental safety measures
In accordance with the Special Measures Law for the
Promotion of Proper Disposal of PCB Waste (Law No.
65, June 22, 2001), the Company sets aside a
reasonable reserve in an amount equivalent to theestimated disposal expenses for stored PCB.
(h) Provision for special repairs
The Company and its domestic consolidated subsidiaries
have a provision for special repairs based on theestimated cost of applicable special repairs for theinspection and repair of ships requiring regularinspections under the Ship Safety Act and for regular
repairs to steam production and transport facilities.

(4) Accounting method for retirement benefits(a) Attribution method of retirement benefit estimates
The straight-line basis is used as the method for
attributing estimated retirement benefits for the period
until the the end of the current fiscal year.
(b) Method of expense recording for actuarial differences
Actuarial differences are recorded as expenses from eachconsolidated fiscal year in which they occur by dividing
the amount proportionately using the straight-line
method over a certain number of years (13 years) within
the average remaining service period of employees
during the consolidated fiscal year. Certain consolidated
subsidiaries of the Company record a lump-sum expensein the consolidated fiscal year in which they occur.
(c) Adoption of the simplified valuation method at small
enterprise, etc.
Certain consolidated subsidiaries employ the simplified
method in which the retirement benefit amountrequired for voluntary termination at year-end isdeemed a retirement benefit obligation for the
calculation of liability associated with retirement andretirement benefit expenses.

(5) Calculation method for revenue from construction work
completed and costs of completed construction work
The percentage-of-completion method is used forconstruction contracts where the outcome of the sectionin progress is deemed certain by the end of the current
consolidated fiscal year, while the completed contract
method is applied to all other construction contracts. In
addition, estimates of the state of completion at the endof the current consolidated fiscal year are calculatedusing the cost-to-cost method for construction projects
using the percentage-of-completion method.

(6) Accounting standard for profits from financial
lease transactions
Lease fees are accounted for in net sales and cost priceat the time of receipt.

(7) Standards for translation of significant foreign
currency denominated assets and liabilities into
Japanese yen
Current and non-current monetary accounts
denominated in foreign currencies are translated into
yen at the current exchange rates as of the balance
sheet date, and any translation difference is accounted
for as a profit or loss for the year.
All assets and liabilities of overseas consolidated
subsidiaries are translated at the rates of exchange in
effect at the overseas consolidated subsidiary’s balance
sheet date. All revenues and expenses of overseas

consolidated subsidiaries are translated at the average
rates of exchange for the fiscal year. Foreign currencytranslation adjustments are included in Valuation andtranslation adjustments and Minority interests in the
Net Assets section of the Balance Sheet.

(8) Main hedge accounting methods(a) Hedge accounting method
The Company uses mainly deffered hedging. However,for interest rate swaps, special treatment is applied incases that meet the necessary requirements. The
recognition of gains and losses on foreign monetary
rights or obligations at a preset price is used for
currency swap transactions that qualify for hedge
accounting requirements.
(b) Hedge instruments, hedge objects and hedge policy
The Company’s interest rate swap transactions arecarried out to avoid risk associated with loan interest
rate fluctuations.
(c) Method of assessing the effectiveness of hedges
Over the period from the beginning of a commodity
future transaction to the point at which theeffectiveness is determined, the market fluctuations of
the hedged commodity and the market fluctuations of
the hedged instrument are compared and theeffectiveness is determined. However, interest rate
swap transactions are treated separately and areomitted from this effectiveness evaluation.

(9) Goodwill amortization method and period
The equal installment method is used for theamortization of goodwill over a period of time (lessthan 20 years) in which the investment effect in eachsubsidiary is realized. In addition, when the amount isimmaterial, the complete amount is amortized in the
consolidated fiscal year in which it occurs.

(10) Accounting method for consumption tax, etc.
The tax exclusion method is used when accounting for
consumption tax and regional consumption tax.

5. Notes Concerning Changes to
Accounting Policy
The Company and its domestic consolidated
subsidiaries have applied the provisions of No. 35 of
the Accounting Standard for Retirement Benefits (ASBJ
Statement No. 26; May 17, 2012; hereinafter‘‘Accounting Standard for Retirement Benefits”) andthe provisions of No. 67 of Guidance on AccountingStandard for Retirement Benefits (ASBJ Guidance No.
25; March 26, 2015; hereinafter ‘‘Guidance on
Accounting Standard for Retirement Benefits”) fromthe current consolidated fiscal year. As a result, it changed
its calculation method for retirement benefit obligations
and employment costs and changed its method for
determining the discount rate from the number of years
close to the average service period of employees for theperiod of the securities that are the basis for determining
the discount rate to a uniform weighted average discountrate that reflects the amount for the estimated payment
period of the retirement benefit and the amount for eachestimated payment period.
The application of Accounting Standard for Retirement
Benefits is in accordance with transitional handlingprescribed in provisions of No. 37 of Accounting Standard

9

Notes to Consolidated Financial Statements

for Retirement Benefits, and at the beginning of the current
consolidated fiscal year the effect of these changes to thecalculation method of retirement benefit obligations andemployment costs has been adjusted in retained earnings.
As a result, liabilities associated with retirement
benefits at the beginning of the consolidated fiscal year
increased ¥176 million and retained earnings werereduced by ¥111 million. There was only a minimal
effect on operating income, ordinary income andincome before income taxes and other adjustments forthe consolidated fiscal year.

6. Note Concerning Changes to
Accounting Estimates
Asset retirement obligations for the Torigatayama
Quarry Complex recorded as mine pollution prevention
costs in accordance with legal requirements to prevent
pollution at mined sites after extraction stipulated in the
Mine Safety Act originally had a defined number ofminable years from start of operations using an
estimated period until the incurrence of these
expenditures. However, as a result of mining activities, it
was determined that there is an abundance of ore in
the surrounding vicinity, requiring additions to minable
reserves. Therefore, changes were made to reflect
future production starting from the end of theconsolidated fiscal year to modify the estimatedpollution prevention costs and extend the estimatedperiod until these expenditures are incurred.
As a result, compared to the conventional method,
operating income, ordinary income and income before
income taxes and other adjustments for the consolidated
fiscal year each have been increased by ¥23 million.

7. Notes to the Consolidated Balance Sheets(1) Collateral assets

83,523,195 shares

Machinery & Environmental Engineering

254(including 286,109 shares of treasury stock)

Real Estate

3

5,418

Renewable Energy

10(Millions of yen)

¥ 70

1,113

Issued andOutstanding¥150,426 million

Iwaki Kyodo Tancal Co., Ltd.

Non-Metallic Minerals¥ 5,203(2) Accumulated depreciation of property, plant and equipment

Total guarantee

Mineral Resources

Common Stock

308

31
331
10
372

(3) Guaranteed liabilities

Number of Employees (Consolidated)

May 20, 1939

Metallic Minerals

¥ 679

Total

Date of Establishment

200,000,000 shares(Others)
Property, plant and equipment
Debt collateralized by the above
Short-term loans payable
Long-term loans payable
Guarantee deposits received

As of March 31, 2015

Authorized

27
70
97

Total

Outline(Millions of yen)

Floating mortgage
Property, plant and equipment
Debt collateralized by the above
Short-term loans payable
Long-term loans payable

Corporate Information

Consolidated
company debt
¥ (13)

8. Segment Information

Number of Shareholders
Major Shareholders% of total

Nippon Steel & Sumitomo Metal Corporation
Nittetsu Kogyo Shogakukai*
The Master Trust Bank of Japan, Ltd. (trust account)
Mizuho Bank, Ltd.
Sumitomo Mitsui Banking Corporation
Japan Trustee Services Bank, Ltd. (trust account)
CBNY DFA INTL SMALL CAP VALUE PORTFOLIO
Nittetsu Kogyo Shareholding Association
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
Mitsubishi Materials Corporation

14.87
7.70
4.71
3.53
3.49
2.89
2.40
1.79
1.68
1.62

Corporate (shared)

99

Total

1,787

Number of Employees (Non-Consolidated)

657

Principal Lenders
Sumitomo Mitsui Banking Corporation
Mizuho Bank, Ltd.
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
Sumitomo Mitsui Trust Bank, Ltd.

*Non-profit corporation
Millions of yen

2015

Sales to external customers
Inter-segment sales
Segment Revenue
Segment Profits

Non-Metallic
Minerals

Metallic
Minerals

Machinery &Environmental
Engineering

Real Estate

Renewable
Energy¥ 56,222
792
57,015¥ 55,461—
55,461¥ 9,303
1,083
10,387¥ 2,655
21
2,677¥ 1,823
—
1,823

6,519

3,420

830

1,355

319

Eliminations
andCorporate
¥

Total

—
(1,898)(1,898)¥ 125,467—
125,467(2,211)

10,232Millions of yen

2014

Sales to external customers
Inter-segment sales
Segment Revenue

Non-Metallic
Minerals

Metallic
Minerals

Machinery &Environmental
Engineering

Real Estate

Renewable
Energy¥ 54,901
470
55,371¥ 46,018—
46,018¥ 9,246
1,296
10,543¥ 2,660
34
2,695¥ 1,490
—
1,490

5,885

3,425

885

1,213

242

Eliminations
andCorporate
¥

Total

—
(1,802)(1,802)¥ 114,317—
114,317(2,134)

9,517

Primary Businesses
As of March 31, 2015
Group

Mineral Resources Non-Metallic Minerals
Limestone, dolomite, crushed stone, calcium carbonate, silica rock, quicklime, hydrated
lime, cement, gypsum, ready-mixed concrete and concrete products, petroleum products,
coal, LPG, chips for pulp, mineral water, specialty papers (fire-retardant, calcium carbonate),
granulates, handling and transportation of mineral products, technological consulting formining and civil engineering
Metallic Minerals
Electrolytic copper, gold and silver, copper concentrate
MachinerySegment Profits& Environmental
Engineering

Thousands of US dollars

2015

Sales to external customers
Inter-segment sales
Segment Revenue
Segment Profits10

Non-Metallic
Minerals

Metallic
Minerals

Machinery &Environmental
Engineering

Real Estate

Renewable
Energy$ 467,858
6,598
474,456$ 461,527—
461,527$ 77,420
9,019
86,440$ 22,097
182
22,280$ 15,176—
15,17654,25328,4606,909

11,276

2,656

Eliminations
andCorporate(18,402)85,154

Machinery Engineering
Dust collectors, crushing and grinding equipment, mining machinery, construction-related
machinery, civil engineering machinery, electric machinery, monorail for passenger
transportation, ball valves, powder/fluid-related machinery, maintenance/repair of baryta
machinery, others
Environmental Engineering
Water treatment agents, deodorizers, others

Total

$
— $ 1,044,080(15,800)—(15,800)
1,044,080

Major Products

Real Estate

Rentals of office buildings, condominiums, commercial spaces, factories and warehouses andreal estate sales

Renewable Energy Geothermal steam supply, solar power, hydroelectric power

11

Corporate Information
Organizational Chart

Offices

As of June 26, 2015

As of April 1, 2015
Torigatayama Quarry Complex

General Meetingof Shareholders

Shiriya Quarry Complex

General Administration
Department

Board of Directors

Domestic
Yusen Building, 3-2, Marunouchi 2-chome, Chiyoda-ku, Tokyo 100-8377, Japan
URL: http://www.nittetsukou.co.jp/eng/

Head Office
General Administration Section

Tel: +81-3-3284-0516

Fax: +81-3-3215-8480

Public & Investor Relations Group

Tel: +81-3-3284-0518

Fax: +81-3-3215-8480

Information System Section

Tel: +81-3-3216-5231

Fax: +81-3-3216-5232

Ikura Quarry Complex

Audit & Supervisory
Board Members

General Accounting
Department

Audit & Supervisory
Board

Higashi-shikagoe Quarry Complex
Limestone & Raw Materials
Sales Department
Non-Ferrous Metal & Ore
Department

Limestone Sales Section

Tel: +81-3-3216-5261

Fax: +81-3-3284-0037

Nagaoyama Quarry

Limestone Powder
and Aggregate Sales Section

Tel: +81-3-3216-5260

Fax: +81-3-3284-0037

Yamaguchi Quarry

Fine Materials Sales Section

Tel: +81-3-3216-5254

Fax: +81-3-3215-7293

Non-Ferrous Metal & Ore Section

Tel: +81-3-3216-5265

Fax: +81-3-3284-0037

Environmental Sales Section

Tel: +81-3-3216-5320

Fax: +81-3-3216-5262

Machinery Sales Section

Tel: +81-3-3216-5321

Fax: +81-3-3216-5263

Resources Development Section

Tel: +81-3-3216-5281

Fax: +81-3-5962-5180

Tokiwa Quarry

Machinery & Environmental
Sales Department

Oita Quarry Complex

President
Mining Department

Management Council

Tochigi Quarry Complex

R&D Department
Resources Development
Department

Kagoshima Geothermal Facility

8-1, Hirai, Hinode-cho, Nishitama-gun, Tokyo 190-0182, Japan
R&D Administration Section
Tel: +81-42-597-7001 Fax: +81-42-597-7013

Overseas
Osaka Branch Office

R&D Department

Sydney Branch Office

Level 24, 1 York Street, Sydney, NSW 2000, Australia
Tel: +61-2-9252-2076 Fax: +61-2-9252-2220

Kyushu Branch Office
Safety Administration Office
Hokkaido Branch OfficeBusiness Continuity
Management Office

Tohoku Branch Office

As of March 31, 2015

Directors and Audit & Supervisory Board Members

Subsidiaries

Capital(Millions of yen)Company
holdings (%)

Nittetsu Mining Consultants Co., Ltd.

100

100.0

Consulting services for geological surveys, geophysicalexploration, test boring and construction

Hokkaido Lime Co., Ltd.

80

100.0

Manufacture and sales of quicklime and hydrated lime

Funao Mining Co., Ltd.

60

100.0

Mining and sales of limestone
Manufacture and sales of calcium carbonate

Nittetsukoukenzai Co., Ltd.

50

100.0

Buying and selling of limestone, crushed stone and calcium
carbonate

Kobukuro Techno Co., Ltd.

50

100.0

Manufacture and sales of crushing and grinding equipment andelectric machinery

Hachinohe Mining Co., Ltd.

2,000

70.0

Mining and sales of limestone

As of June 26, 2015
Representative Director and President

Kimio SatoManaging Director

Yoshifumi Noguchi
Directors

Standing Audit & Supervisory Board Members

Hikoso Takahashi
Izumi Tanaka
Audit & Supervisory Board Members

Jun Matsunaga

Yohtaro Matsuo

Hiroshi Koyama

Yoshiro Wakayanagi(Supervision of Resources Development Department)(Supervision of General Administration Department and General
Accounting Department and BCM Promotion Office)Shinya Yamasaki(Supervision of Limestone & Raw Materials Sales Department, Non-Ferrous
Metal & Ore Department, Machinery & Environmental Sales Department)

Hideo Kawamura(Representative Director and Vice President, Hachinohe Mining Co., Ltd.)

Takeyuki Kumamura
Katsuhiko Kaneko

12

Major Subsidiaries

Sydney Branch Office

Corporate Executives

Hideaki Kido

(General Manager of Mining Department)

Primary businesses

Note: Sumimetal Mining Co., Ltd. changed its trade name to Hachinohe Mining Co., Ltd. effective April 1, 2014.

Yuji Somatsu(General Manager of Torigatayama Quarry Complex)

Reiichi Morikawa(General Manager of Limestone & Raw Materials Sales Department)

Subsidiary

Sociedad Contractual Minera
Atacama Kozan

Capital(Thousands of US dollars)Company
holdings (%)

3,750

60.0

Primary businesses

Mining and sales of copper and other minerals

13