ANNUAL REPORTFor the year ended March 31, 2016

2016

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, 2016, Japan’s economy saw a slower pace of economic
Millions of yen

Thousands of
US dollars

recovery due to weakness in exports caused by the slowdown in China’s economy and an overall lackof strength in the economy given a decline in public-sector investment. On a positive note, however,

2016

2015

2014

2013

2012

2016

¥ 114,088¥ 125,467¥ 114,317¥ 102,840¥ 101,505$ 1,012,495

4,483

5,973

3,903

3,873

3,024

39,787

162,379

170,055

161,325

144,539

132,470

1,441,069

For the year
Net Sales

corporate earnings improved on the back of the government’s economic stimulus measures and theProfit Attributable to Owners of Parent
At year-end
Total Assets

Bank of Japan’s monetary easing.
In these economic conditions, the Nittetsu Mining Group posted net sales of ¥114,088 million,
down 9.1% year on year, due to the drop in sales within the Mineral Resources Group.
As for profit and loss, ordinary income totaled ¥9,723 million, up 1.1% year on year, which wasYen

US dollars

Per share data
Profit per Share¥ 53.86¥ 71.75¥ 46.89¥ 46.53¥ 36.32$ 0.48largely on par with the previous fiscal year. However, profit attributable to owners of parent dropped
24.9% year on year to ¥4,483 million owing to the booking of an impairment loss related to its newcopper mine in Chile.

Non-Consolidated

Consolidated Business Results by Segment

Nittetsu Mining Co., Ltd.
Years ended March 31
Thousands of
US dollars

Millions of yen

2016

2015

2014

2013

2012

2016

Net Sales¥ 88,935¥ 102,782¥ 92,547¥ 87,079¥ 86,928$ 789,278

Net Income

3,773

6,536

5,116

3,816

2,754

33,489For the year

Mineral Resources Group
Non-Metallic Minerals Division
Net sales of the Non-Metallic Minerals Division fell 1.9%, or ¥1,045 million, over the previous fiscal
year to ¥55,176 million, due to a drop in the sales volume of mainstay product limestone as well as adecline in sales of oil products following the collapse in crude oil prices.
Operating income increased 7.0%, or ¥459 million, to ¥6,978 million, reflecting lower

At year-end
Total Assets

137,197

143,802

134,155

124,968

114,493Yen

1,217,583
US dollars

Per share data
Profit per Shareproduction costs.

Metallic Minerals Division¥ 45.34¥ 78.52¥ 61.46¥ 45.84

Note: US dollar amounts are translated from yen, for convenience only, at the rate of ¥112.68=US$1.

¥ 33.08$ 0.40Net sales of the Metallic Minerals Division dropped 22.2%, or ¥12,316 million, over the previous
fiscal year to ¥43,145 million due to the collapse in copper prices. Operating income, too, fell
60.1%, or ¥2,055 million, to ¥1,364 million.

Machinery & Environmental Engineering Group
The Machinery & Environmental Engineering Group saw net sales advance 5.0%, or ¥462 million, toContents
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¥9,766 million, because of strong sales of water treatment agents, a mainstay product of theEnvironmental Engineering Division, and dust collectors, a mainstay product of the Machinery
Division, as well as strong sales recorded by subsidiaries. Operating income, too, advanced 22.6%, or¥187 million, to ¥1,018 million.

Real Estate GroupThe Real Estate Group saw net sales rise 55.0%, or ¥1,460 million, over the previous fiscal year to¥4,116 million, while operating income also rose 110.7%, or ¥1,500 million, to ¥2,855 million
thanks to robust market conditions for leased properties and the sale of real estate for sale.

1Message from the Management

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

Net Sales by Business Segment

Renewable Energy Group(Year ended March 31, 2016)

The Renewable Energy Group saw sales advance 3.3%, or ¥60 million, from the previous fiscal yearto ¥1,883 million, buoyed by the new operation of solar power plants, despite a drop in sales of the
Geothermal Division.

Net sales% change from
(Millions of yen) previous fiscal year

Business segment

Real Renewable
Estate Energy% of total
net sales

Non-Metallic Minerals¥ 55,176

(1.9)

48.4

Metallic Minerals¥ 43,145(22.2)

37.7

Machinery & Environmental
Engineering

¥

9,766

5.0

8.6

Real Estate

¥

4,116

55.0

3.6

Renewable Energy

¥

1,883

3.3

1.7

¥ 114,088

(9.1)

100.0

Machinery &Environmental
Engineering

Operating income dipped 1.6%, or ¥5 million, to ¥314 million due to an increase in depreciation
and amortization costs.

Capital Expenditures, Financing and Other Related Matters
Capital expenditures of the Nittetsu Mining Group totaled ¥6,240 million during the fiscal year underreview, down 20.6% from the previous fiscal year, and no major facilities were completed in the

Total

Non-Metallic
Minerals

Sales
Distribution
Ratio
Metallic
Mineralsfiscal year under review.

Challenges Facing the Group

Breakdown of Net Sales(Years ended March 31)(Millions of yen)

The future outlook indicates the operating environment facing the Nittetsu Mining Group willcontinue to require caution. This is because of economic uncertainty caused by the slowdown in

Business segment

2016

Major products

Net sales% of total net
sales¥ 27,500

24.1¥ 27,913

22.2

Crushed stone

6,401

5.6

6,874

5.5

(473)

Calcium carbonate

3,631

3.2

3,694

2.9

(63)

Ancillary products
and others

17,643

15.5

17,73914.2(96)

Sub-total

55,17648.4

56,22244.8(1,045)

Electrolytic copper

28,31424.8

32,162

25.6(3,848)

Copper concentrate

9,248

8.1

16,89813.5(7,650)

Others

5,582

4.8

6,400

5.1

(818)

Sub-total

43,14537.7

55,461

44.2(12,316)¥ 98,321

86.1¥ 111,684

89.0¥(13,362)

Machinery engineering

4,747

4.2

4,430

3.5

317

Environmental engineering

5,018

4.4

4,873

3.9

145

9,766

8.6

9,303

7.4

Limestone

foreign exchange rates and commodity price trends.
The Nittetsu Mining Group will respond to this operating environment by striving to enhance its
Non-Metallic
Mineralsmanagement structure. It will accomplish this by such means as further boosting sales, raisingproductivity, cutting costs and strengthening its business continuity plan.
Going forward, the Nittetsu Mining Group will work to achieve sustainable growth and enhancemedium- to long-term corporate value, while improving corporate governance. In this way, it will

MineralResources

seek to fulfill its responsibilities to supply raw materials to basic industries as well as contribute to theprosperity of shareholders, business partners, local communities, employees and other stakeholders.

Metallic
Minerals

In addition, the Nittetsu Mining Group will continue with its commitment to pursue eco-friendly

Increase(decrease)

Net sales

China’s economy and weaker economic growth in emerging countries, as well as concerns overbusiness performance as it upgrades and expands its operating base and improves and enhances its

2015% of total net
sales

¥

(412)

business activities. These include compliance with ISO 14001, greenery initiatives at mined sites,
obtaining certification for company-owned forests, and generating power from natural energy.

Total

We extend our appreciation to all shareholders and ask for your continued support andcooperation.
June 2016

Kimio Sato
Representative Director and President

Machinery &Environmental
Engineering

Total

¥

¥

462

Real Estate

Real estate rentals and sales

4,116

3.6

2,655

2.1

1,460

Renewable
EnergyGeothermal steam supply, solar power,hydroelectric power

1,883

1.7

1,823

1.5

60

¥ 114,088

100.0¥ 125,467

100.0¥(11,379)

Total

2

¥

3

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

Balance Sheets
As of March 31, 2016 and 2015

AssetsLiabilities and Net Assets
Millions of yen

2016

Thousands of US dollars

2015

Millions of yen

2016

Current Assets

Thousands of US dollars

2016

2015

2016

¥ 10,174¥ 10,643

8,725

9,659

Current Liabilities

Cash and deposits¥ 26,648¥ 24,118$

236,497

Notes and accounts receivable—trade25,22325,587

223,849

Lease investment assets

4,128

4,334

36,638Merchandise and finished goods

4,659

4,540

Short-term loans payable$

90,29877,440

Lease obligations

768

640

6,822

Accounts payable

5,480

5,236

48,63541,352

Income taxes payable

1,254

1,950

11,129Provision for bonuses

943

921

8,369

Provision for directors’ bonuses

23

23

211

Provision for shareholders’ benefits

11

12

99

Work in process

7,975

7,571

70,781

Raw materials and supplies

2,041

1,948

18,117

421

483

3,739

Deferred tax assets

Notes and accounts payable—trade

Other

3,084

3,002

27,376

Allowance for doubtful accounts

(408)

(80)

(3,625)73,77471,506

654,727

Non-Current Assets
Property, plant and equipment:

3,653

5,337

32,42531,03534,424275,431

Long-term loans payable

18,10319,064

160,661

Lease obligations

1,376

1,210

12,212

Deferred tax liabilities

5,242

8,785

46,525

Provision for directors’ retirement benefits

119

118

1,056

Provision for environmental safety measures

150

151

1,333

Other

Non-Current Liabilities

Buildings and structures

24,21425,966

214,899

Provision for special repairs

102

224

912

Machinery, equipment and vehicles

11,22011,07999,576

Net defined benefit liability

4,060

2,184

36,034

Land used for mining operations

3,883

3,989

34,466

Asset retirement obligations

4,371

4,290

38,798Land for general use

16,685

16,635148,076

Construction in progress

711

918

6,313

Other

526

644

4,675

57,242

59,234

508,008

Other

Total Liabilities

1,418

1,669

12,592

54,578Treasury shares

(144)

(139)

(1,286)

79,72675,831

707,550

8,929

13,50579,250

(51)

(252)

(453)

Deferred tax assets

969

966

8,605

(3,528)

Allowance for investment loss

—

(19)

—

Total Assets

29,94337,644

265,741¥ 162,379¥ 170,055$ 1,441,069

37,062
617,196

223,370

(400)

4,176
6,149

32,444

(397)

4,176

65,64525,169Allowance for doubtful accounts

634,797

6,149

Investment securities

37,29377,58969,545

Shareholders’ equity

4,652

71,528Retained earnings

Accumulated Other Comprehensive Income

4,202

61,831
359,366

Capital surplus

Investments and Other Assets

Other

7,135
43,164

Net Assets
Capital stock

Intangible assets

6,967
40,493

Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustment

927

901

8,232

Remeasurements of defined benefit plans(2,060)(766)(18,289)

7,745

13,387

68,739

3,378

3,246

29,982

Total Accumulated Other Comprehensive Income
Non-controlling interests
Total Net Assets

90,85092,466806,272

Total Liabilities and Net Assets¥ 162,379¥ 170,055$ 1,441,069

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, 2016 and 2015

Years ended March 31, 2016 and 2015
Millions of yen

Thousands of US dollars

Millions of yen

2016

2015

2016

¥ 114,088¥ 125,467$ 1,012,495

Cost of Sales

84,901

95,975753,476

Selling, General and Administrative Expenses

19,095

19,258

169,470

Other comprehensive income:Operating Income

10,090

10,23289,548Valuation difference on available-for-sale securities

Interest income

39

41

347

Dividends income

765

677

6,796

Net Sales

Non-Operating Income:

Share of profit of entities accounted for using equity method

257

—

2,281

Other

172

315

1,528

1,234

1,036

10,953Thousands of US dollars

2016

2015

2016

¥ 5,037¥ 6,627$ 44,701(4,576)2,137(40,619)

Deferred gains or losses on hedges

201

(450)

1,783

Foreign currency translation adjustment

39

1,003

352

(1,293)(29)(11,483)

(1)

0

—

(5,631)

2,661(49,981)

(594)

9,288

(5,280)Comprehensive income attributable to owners ofparent(1,159)8,451(10,286)

Comprehensive income attributable to noncontrolling interests¥837$ 5,006

ProfitRemeasurements of defined benefit plans, net of tax
Share of other comprehensive income of entities
accounted for using equity method

Non-Operating Expenses:
Interest expenses

356

Share of loss of entities accounted for using equity method
Other

Ordinary Income

401

3,160

—

256

—

1,245

995

11,050

1,601

1,656

14,210

9,723

9,613

86,292Extraordinary Income:Gain on sales of non-current assets

86

463

764

Gain on sales of investment securities

50

0

444

Compensation income

115

34

1,025

Other

5

21

52

257

520

2,285

271

162

2,411

Total other comprehensive income
Comprehensive income564¥

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

Extraordinary Losses:
Loss on sales and retirement of non-current assets

1,727

138

15,335

Loss on valuation of investment securities

Impairment loss

425

1

3,771

Other

31

12

277

2,455

314

21,795

Profit before Income Taxes

7,525

9,819

66,782

Income Taxes:

Years ended March 31, 2016 and 2015
Millions of yen

Thousands of US dollars

2016

2015

2016

¥ 11,070¥ 19,811$ 98,247

Net cash used in investing activities(4,993)(4,289)(44,318)

Net cash used in financing activities(3,675)(3,832)(32,621)

Effect of exchange rate change on cash and cash equivalents

(145)

487

(1,287)

Net cash provided by operating activities

Income taxes—current

2,855

3,144

25,337

Income taxes—deferred

(367)

47

(3,257)

2,488

3,192

22,080553

654

44,701

Net increase in cash and cash equivalents

2,255

12,17820,020

4,483

5,973

4,914

Cash and cash equivalents at beginning of period

23,717

11,539210,488

39,787

Cash and cash equivalents at end of period¥ 25,973¥ 23,717$ 230,509

Profit attributable to non-controlling interests
Profit attributable to owners of parent
Profit
The accompanying notes are an integral part of these statements.
Totals may not add up due to rounding.

6

Statements of Cash Flows

¥

5,037

¥

6,627

$

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,and their total assets, net sales, profit 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 profit 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 Non-controlling interests in
the Net Assets section of the Balance Sheets.

(8) Main hedge accounting methods(a) Hedge accounting method
The Company uses mainly deferred 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. Summary of Significant Accounting Policies(Notes Concerning Changes to Accounting Policy)‘‘Accounting Standard for Business Combinations”(ASBJ Statement No. 21, September 13, 2013),‘‘Accounting Standard for Consolidated Financial
Statements” (ASBJ Statement No. 22, September 13,2013), and ‘‘Accounting Standard for Business
Divestitures” (ASBJ Statement No. 7, September 13,2013) were applied from the year ended March 31,
2016. As a result of this application, differences
resulting from changes in the Company’s ownershipinterests in subsidiaries remaining under control of theCompany are accounted for as a capital surplus, andthe accounting method for costs in consolidated fiscal
years in which acquisition related costs are incurred
was changed. In addition, for business combinations
executed on or after the first day of the year ended
March 31, 2016, if changes in the allocation amountfor the acquisition cost reached by finalization ofprovisional accounting treatment are carried out in thefollowing fiscal year of the business combination, theimpact on the initial balance of the fiscal year in whichthese changes are made will be presented in an
individual category and the initial balance after9

Notes to Consolidated Financial Statements

reflection of this impact will be posted. Furthermore,changes have been made in the presentation of profit,
while minority interests have been changed to noncontrolling interests.
The application of the ‘‘Accounting Standard forBusiness Combinations” follows the provisional
handling stipulated in Article 58-2(4) of ‘‘AccountingStandard for Business Combinations,” Article 44-5(4) of‘‘Accounting Standard for Consolidated Financial
Statements” and Article 57-4(4) of ‘‘AccountingStandard for Business Divestitures,” and is applied fromthe first day of the year ended March 31, 2016 andindefinitely thereafter.
These changes had no effect on the consolidated
financial statements.
(Notes Concerning Changes in Presentation)‘‘Provision of allowance for doubtful accounts”
presented within ‘‘other” non-operating expenses in theyear ended March 31, 2015 is now stated separatelyfrom the year ended March 31, 2016, due to thesignificant monetary impact on the financial statements.
Provision of allowance for doubtful accounts in the year
ended March 31, 2015 totaled ¥4 million.
‘‘Gain on sales of investment securities” presented
within ‘‘other” extraordinary income in the year ended
March 31, 2015 is now stated separately from the year
ended March 31, 2016, due to the significant monetaryimpact on the financial statements. The gain on sales ofinvestment securities in the year ended March 31, 2015
totaled ¥0 million.

‘‘Loss on valuation of investment securities” presented
within ‘‘other” extraordinary losses in the year ended
March 31, 2015 is now stated separately from the year
ended March 31, 2016, due to the significant monetaryimpact on the financial statements. The loss on
valuation of investment securities in the year ended
March 31, 2015 totaled ¥1 million.

6. Notes to the Consolidated Balance Sheets(1) Collateral assets(Millions of yen)Foundation mortgage
Property, plant and equipment
Debt collateralized by the above
Short-term loans payable
Long-term loans payable¥ 5,146
20
50
70

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

¥ 643
31
299
10
341

Total

¥154,432 million(Millions of yen)

Total guarantee
Iwaki Kyodo Tancal Co., Ltd.
HAKODATE NAMA CONCRETE CO., LTD.
Total

¥ 110
10
120

OutlineAs of March 31, 2016

Date of Establishment

Consolidated
company debt
¥ (20)(0)(21)

Number of Employees (Consolidated)

May 20, 1939

Mineral Resources

Common Stock

Non-Metallic Minerals

1,127

Authorized

200,000,000 shares

Metallic Minerals

247

Issued andOutstanding

83,523,195 shares

Machinery & Environmental Engineering

260(including 295,400 shares of treasury stock)

Real Estate

4

4,863

Renewable Energy

10

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)(2) Accumulated depreciation of tangible assets(3) Guaranteed liabilities

Corporate Information

CBNY DFA INTL SMALL CAP VALUE PORTFOLIO
Nittetsu Kogyo Shareholding Association
CBNY-GOVERNMENT OF NORWAY
The Bank of Tokyo-Mitsubishi UFJ, Ltd.

14.87
7.70
4.86
3.53
3.49
3.20
2.39
1.88
1.74
1.68

Corporate (shared)

108

Total

1,756

Number of Employees (Non-Consolidated)

670

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

*Non-profit corporation

7. Segment Information
Millions of yen

2016

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

Non-Metallic
Minerals

Metallic
Minerals

Machinery &Environmental
Engineering

Real Estate

Renewable
Energy¥ 55,176
1,049
56,226¥ 43,145—
43,145¥ 9,766
1,657
11,423¥ 4,1168
4,125¥ 1,883
—
1,883

6,978

1,364

1,018

2,855

Eliminations
andCorporate¥

Total

As of March 31, 2016—
(2,716)(2,716)¥ 114,088—
114,088314(2,440)10,090

Renewable
EnergyEliminations
andCorporate

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¥ 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

¥

Primary Businesses

Total

—
(1,898)(1,898)¥ 125,467—
125,467319(2,211)

10,232Eliminations
andCorporateGroup

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
Machinery& Environmental
Engineering

Thousands of US dollars

2016

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

Non-Metallic
Minerals

Metallic
Minerals

Machinery &Environmental
Engineering

Real Estate

Renewable
Energy$ 489,676
9,316
498,992$ 382,899—
382,899$ 86,670
14,711
101,382$ 36,530
79
36,609$ 16,719—
16,71961,935

12,106

9,035

25,345

2,787(21,662)

89,548

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

$
— $ 1,012,495(24,108)—(24,108)
1,012,495

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 29, 2016

As of April 1, 2016
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 Subsidiaries

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

Taiwan Subsidiaries

No. 46, Section 2, Zhongshan N Rd, Zhongshan District, Taipei City, Taiwan 104
Tel: +886-2-2521-7316 Fax: +886-2-2521-7756

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

Tohoku Branch Office

Major Subsidiaries
As of March 31, 2016

Directors and Audit & Supervisory Board Members
As of June 29, 2016
Representative Director and President

Kimio SatoManaging Director

Yoshifumi Noguchi
Directors

Hiroyasu Adachi
Audit & Supervisory Board Members

Yohtaro Matsuo

Hiroshi Koyama

Yoshiro Wakayanagi(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 President, Hachinohe Mining Co., Ltd.)

Takeyuki Kumamura
Katsuhiko Kaneko

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.

100

70.0

Mining and sales of limestone

Izumi Tanaka

Jun Matsunaga(Supervision of Resources Development Department)

12Standing Audit & Supervisory Board Members

Subsidiaries

Corporate Executives

Hideaki Kido

(General Manager of Mining Department)

Primary businesses

1. No subsidiaries fall under the category of specified wholly owned subsidiary.
2. The paid-in capital of Hachinohe Mining Co., Ltd. was reduced on August 7, 2015, resulting in a decline in capital stock.

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