This document has been translated from the Japanese original for reference purposes only.
In the event of any discrepancy between this translated document and the Japanese original,
the original shall prevail. The Company assumes no responsibility for this translation or for
direct, indirect or any other forms of damages arising from the translation.

Financial Results for the Year Ended March 31, 2021
[Japanese GAAP] (Consolidated)
May 12, 2021
Company name: Tatsuta Electric Wire & Cable Co., Ltd.
Stock exchange listing: Tokyo Stock Exchange
Stock Code: 5809
URL: http://www.tatsuta.com
Representative: Hirohito Miyashita, President and Representative Director
Contact: Tetsuya Shibata, Director, Senior Executive Officer
Phone: +81-6-6721-3011
Scheduled date of General Meeting of Shareholders: June 18, 2021
Scheduled date of filing Annual Securities Report: June 18, 2021
Scheduled date of commencing dividend payments: May 31, 2021
Availability of supplementary briefing material on annual financial results: Available
Schedule of annual financial results briefing session: Scheduled (for institutional investors, analysts and journalists)(Amounts of less than one million yen are rounded down.)
1. Consolidated Financial Results for the Year Ended March 31, 2021 (April 1, 2020 to March 31, 2021)(1) Consolidated Operating Results(% indicates changes from the previous corresponding period.)
Net sales
Fiscal year ended
March 31, 2021
Fiscal year ended
March 31, 2020

Operating income

Profit attributable toowners of parent
Million yen%

Ordinary income

Million yen%

Million yen%

Million yen%

54,516

(6.3)

3,532

(6.6)

3,629

(7.4)

2,645

(3.5)

58,171

0.3

3,781

(7.0)

3,917

(4.1)

2,740

(6.4)

(Note) Comprehensive income: Fiscal year ended March 31, 2021: 3,874 million yen [107.2%]
Fiscal year ended March 31, 2020: 1,870 million yen [(35.5)%]

Fiscal year ended
March 31, 2021
Fiscal year ended
March 31, 2020

Basic earnings
per share
Yen

Diluted earnings
per share
Yen

Rate of return on
equity%%Operating profit
ratio
%

42.83

-

5.8

6.5

6.5

44.36

-

6.3

7.3

6.5

Return on assets(Reference) Equity in earnings of affiliates: Fiscal year ended March 31, 2021: NA
Fiscal year ended March 31, 2020: NA(2) Consolidated Financial Position
As ofMarch 31, 2021
As ofMarch 31, 2020

Total assets
Million yen

Net assets
Million yen

56,961
54,970%Net assets per share
Yen

46,901

82.3

759.14

44,13980.3

714.43(Reference) Equity: As of March 31, 2021: 46,901 million yen
As of March 31, 2020: 44,139 million yen(3) Consolidated Cash Flows

Fiscal year ended
March 31, 2021
Fiscal year ended
March 31, 2020

Equity ratio

Net cash provided by(used in) operating
activities
Million yen

Net cash provided by(used in) investing
activities
Million yen

Net cash provided by(used in) financing
activities
Million yen

Cash and cash
equivalents at end of
periodMillion yen

5,153(3,952)(1,212)

1,444

7,223

(5,839)(1,050)1,462

2. Dividends
Annual dividends

Fiscal year ended
March 31, 2020
Fiscal year ended
March 31, 2021
Fiscal year ending
March 31, 2022
(Forecast)Fiscal year ended
March 31, 2020
Fiscal year ended
March 31, 2021
Fiscal year ending
March 31, 2022
(Forecast)

1st quarter-end
Yen

2nd quarter-end
Yen

3rd quarter-end
Yen

Year-end

-

9.00

-

9.00

18.00

-

9.00

-

9.00

18.00

-

9.00

-

9.00

18.00

Yen

Total

Yen

Total dividend
Dividend payout Dividend on equity
paid out
ratio (consolidated)(consolidated)
Million yen
%
%
1,112

40.6

2.5

1,112

42.0

2.4

38.3

3. Consolidated Financial Results Forecast for the Fiscal Year Ending March 31, 2022 (April 1, 2021 toMarch 31, 2022)(% indicates changes from the previous corresponding period.)
Net sales
Million yen
First half
Full year

30,40060,300Operating income% Million yen
11.0
10.6

2,300
4,000

%
14.3
13.2

Ordinary income
Million
yen
2,350
4,100

%
15.6
13.0

Profit attributableto owners ofparentMillion
%
yen
1,700
16.4
2,900
9.6

Profitper share
Yen
27.52
46.94

Notes:(1) Changes in significant subsidiaries during the period under review (changes in specified subsidiaries resulting
in changes in scope of consolidation): No
Newly added: NA
Excluded: NA(2) Changes in accounting principles, changes in accounting estimates and retrospective restatement
1) Changes in accounting principles due to the revision of accounting standards: No
2) Changes in accounting principles other than 1) above: No
3) Changes in accounting estimates: No4) Retrospective restatement: No(3) Total number of issued shares (common stock)1) Total number of issued shares at the end of the period (including treasury shares):
As of March 31, 2021
70,156,394 shares
As of March 31, 2020
70,156,394 shares2) Total number of treasury shares at the end of the period:
As of March 31, 2021
8,374,360 shares
As of March 31, 2020
8,373,920 shares
3) Average number of shares during the period:
Fiscal year ended March 31, 2021
61,782,316 sharesFiscal year ended March 31, 2020
61,782,768 shares* These consolidated financial results are outside the scope of audit by a certified public accountant or an audit
corporation.
* Explanation of the proper use of financial results forecast and other notes
The earnings forecasts and other forward-looking statements herein are based on information available to theCompany and certain assumptions deemed reasonable as at the date of publication of this document and should
not be interpreted as any kind of guarantee or promise by the Company to achieve such forecasts. In addition,
actual results may differ significantly from these forecasts due to a wide range of factors.
The supplemental financial information is scheduled to be disclosed on the TDnet on that same day as well ason the Company’s website.

Table of Contents of Reference Materials
1. Overview of Business Results, etc. ............................................................................................................... 1(1) Overview of business results for the fiscal year under review .................................................................... 1(2) Overview of financial position for the fiscal year under review .................................................................. 4(3) Overview of cash flows for the fiscal year under review ............................................................................ 4(4) Basic policy on distribution of profits and dividends for the current term and next term............................... 4
2. Overview of Group Operations ..................................................................................................................... 5
3. Basic Approach to the Selection of Accounting Standards .............................................................................. 8
4. Consolidated Financial Statements and Notes ................................................................................................ 9(1) Consolidated Balance Sheets .................................................................................................................. 9(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income .................... 11(3) Consolidated Statements of Changes in Equity ....................................................................................... 13(4) Consolidated Statements of Cash Flows................................................................................................. 15(5) Notes to the consolidated financial statements ........................................................................................ 17(Notes on the going concern assumption) ................................................................................................ 17(Notes on important matters for the preparation of consolidated financial statements) ................................. 17(Segment information, etc.) .................................................................................................................... 20(Per share information) .......................................................................................................................... 25(Important subsequent events) ................................................................................................................ 25

1. Overview of Business Results, etc.
(1) Overview of business results for the fiscal year under review(i) Operating results for the period under review
The Japanese economy experienced a substantial decline during the first three months of the fiscal year underreview due to the impact of COVID-19, in terms of aspects including corporate earnings, capital investment, personal
consumption, and production. There were subsequently signs of a recovery, despite slowdowns due to the impact of
the second and third wave of infections. Overall, however, conditions were extremely adverse. The world economy
also experienced a serious slump due to the impact of COVID-19, and conditions remained adverse despite somesubsequent signs of an upturn in places.
Domestic quotation prices for copper, the main raw material used for the Company’s products, continued to risefrom the start of the fiscal year onward. The year-end price was significantly higher than the price at the beginning of
the year, and average prices were also up year on year.
At the same time, demand for electric wires for infrastructure declined substantially due to factors such as the
postponement of works and the revision of investment plans due to the impact of COVID-19. Demand conditions in
the equipment wire and cable business were also severe overall, despite a recovery in demand from some users.
Meanwhile, materials demand remained strong for mobile terminals, the main usage of functional films, increasing
year on year.
In this environment, income and profit both fell compared to the previous fiscal year. Net sales for the fiscal year
under review amounted to 54,516 million yen (down 6.3% from the previous fiscal year), operating income was 3,532
million yen (down 6.6%), ordinary income was 3,629 million yen (down 7.4%), and profit attributable to owners ofparent was 2,645 million yen (down 3.5%).

Net sales

Fiscal year ended
March 31, 2020(previous fiscal year)
58,171(Millions of yen, unless otherwise stated)

Fiscal year ended
March 31, 2021 (fiscal
year under review)
54,516

Year on yearchange(6.3)%

Operating income

3,781

3,532

(6.6)%

Ordinary income
Profit attributable toowners of parent

3,917

3,629

(7.4)%

2,740

2,645

(3.5)%

An overview of the Group’s business performance by segment is as follows:[Electric Wire and Cable Business]

Net sales
Operating income

Fiscal year ended
March 31, 2020(previous fiscal year)
36,996523(Millions of yen, unless otherwise stated)

Fiscal year ended
March 31, 2021 (fiscal
year under review)
33,007409

Year on yearchange(10.8)%(21.9)%

Demand for electric wires for infrastructure slumped due to factors such as the postponement of works and therevision of investment plans due to the impact of COVID-19, and sales volume declined (down 12.2% from the1

previous fiscal year). This impact also brought about a continuing slowdown in sales of equipment wire and cable. As
a result, segment net sales were 33,007 million yen (down 10.8% from the previous fiscal year). Operating income
was 409 million yen (down 21.9%) due to the slump in demand, despite improvements due to sales mix and the effectof movements in copper prices.
[Electronic Materials Business]

Net sales

Fiscal year ended
March 31, 2020(previous fiscal year)
19,129Operating income

3,762(Millions of yen, unless otherwise stated)

Fiscal year ended
March 31, 2021 (fiscal
year under review)
19,595
3,813

Year on yearchange2.4%
1.3%

We endeavored to maintain and expand our market share for functional films, our flagship products, and expand
sales of high function products, amid strong demand for materials for mobile terminals. As a result, sales volume
increased year on year (up 6.1% from the previous fiscal year) and segment net sales were 19,595 million yen (up2.4%). Operating income was 3,813 million yen (up 1.3%) as a result of the increase in sales and our efforts to reduce
costs, despite a deterioration in sales mix.
[Other Businesses]

Net sales

Fiscal year ended
March 31, 2020(previous fiscal year)
2,073

Operating income

159(Millions of yen, unless otherwise stated)

Fiscal year ended
March 31, 2021 (fiscal
year under review)
1,946
39

Year on yearchange(6.1)%(75.4)%

Despite efforts to reduce costs across the board at our sensor, medical equipment materials, and environmental
analysis businesses, we faced a significant decline in demand due to the impact of COVID-19, and segment net sales
were 1,946 million yen (down 6.1% from the previous fiscal year) and operating income was 39 million yen (down
75.4%).
(ii) Earnings forecasts for the next term

The future outlook is uncertain for both the domestic and global economy at present, with the persisting impact
of COVID-19 in addition to factors such as the continuation of US-China antagonism. However, we expect therecovery trend observed during the second half of the fiscal year under review to continue.
The Company’s businesses are also anticipated to enter a recovery phase in business performance overall,
despite the recovery in demand for some products still expected to fall short of the levels seen prior to the COVID19 crisis.
As a company, our priority will be to continue to secure the safety of our employees and society throughintensive COVID-19 countermeasures, and fulfill our responsibility to maintain supply to our customers. On thispremise, while steadily seizing business opportunities associated with the spread of 5G and carbon-neutral society,we will endeavor to maintain and build on our existing competitive strength, expand sales into periphery fields andstrengthen our cost competitiveness in our flagship electric wires for infrastructure and films businesses. At the2same time, we will actively pursue business growth in other businesses as well, through sales expansion andproduct development accurately capturing the recovery in demand.
Consolidated Financial Results Forecast for the Fiscal Year Ending March 31, 2022
(Millions of yen)

Net sales

Operating income

Ordinary income

Profit attributable toowners of parent

First half

30,400

2,300

2,350

1,700

Full year(Reference)
Fiscal year ended
March 31, 2021

60,300

4,000

4,100

2,900

54,516

3,532

3,629

2,645

3

(2) Overview of financial position for the fiscal year under review
Total assets at the end of the fiscal year under review increased by 1,990 million yen from the end of the previous
fiscal year to 56,961 million yen, mainly due to increases in short-term loans receivable, work in process, raw materials
and supplies, despite a decrease in notes and accounts receivable – trade. The increases in work in process and raw
materials and supplies are due mainly to a hike in copper price.
Total liabilities decreased by 771 million yen from the end of the previous fiscal year to 10,060 million yen primarily
as a result of decreases in income taxes payable and retirement benefit liability.
Total net assets increased by 2,762 million yen from the end of the previous fiscal year to 46,901 million yen mainly
due to an increase in retained earnings, resulting from the posting of profit attributable to owners of parent, as well as
increases in deferred gains or losses on hedges and remeasurements of defined benefit plans.
As a result, the equity ratio increased by 2.0 percentage points from the end of the previous fiscal year to 82.3%.

(3) Overview of cash flows for the fiscal year under review
Cash and cash equivalents (hereinafter referred to as “funds”) at the end of the fiscal year under review amounted
to 1,444 million yen, a decrease of 18 million yen from the end of the previous fiscal year.
Overall cash flows and the reasons therefor are as follows:(Cash flows from operating activities)
Net cash provided by operating activities amounted to 5,153 million yen, a decrease in cash inflow of 2,070 million
yen from the previous fiscal year, with netting factors such as profit before income taxes of 3,618 million yen, decreasein trade receivables of 2,026 million yen, and the posting of depreciation of 1,770 million yen contributing to anincrease in funds and factors contributing to a decrease in funds including income taxes paid of 1,362 million yen.
(Cash flows from investing activities)
Net cash used in investing activities resulted in a net cash outflow of 3,952 million yen, a decrease in cash outflow
of 1,886 million yen from the previous fiscal year, due primarily to an increase in short-term loans receivable of 1,906
million yen and the purchase of property, plant and equipment of 1,793 million yen contributing to a decrease in funds.
(Cash flows from financing activities)
Net cash used in financing activities resulted in a net cash outflow of 1,212 million yen mainly due to cash dividends
paid of 1,112 million yen, an increase in net cash outflow by 161 million yen from the previous fiscal year.
(4) Basic policy on distribution of profits and dividends for the current term and next term
The Company’s basic policy on dividends, etc., is to provide stable dividend payments on a continuing basis with atarget of a dividend payout ratio of 30%. It makes a determination by comprehensively taking trends of businessperformance and future capital expenditures into consideration. The Company intends to pay the year-end dividendof 9 yen per share, resulting in a total dividend of 18 yen per share for the year including the interim dividend.
As for the next fiscal year, the Company intends to pay a total dividend of 18 yen per share with an interim dividendof 9 yen and a year-end dividend of 9 yen.

4

2. Overview of Group Operations
The Company’s Group is comprised of the Company and six subsidiaries, and is engaged in the electric wire and cablebusiness, the electronic materials business, as well as the sensor and medical products business, and the environmental
analysis business etc.
The details of businesses of the Company’s Group and the positioning of subsidiaries in each business segment are as
follows.
Reporting segment

Details of businessPrimary company(s)Electric Wire and Cable

Electric wire and cable business

The Company

Business

Manufacturing and sales of wires forinfrastructure and general industrial
machinery
Equipment wire and cable business

The Company, Chugoku Electric

Manufacturing and sales of wires for FAs

Wire & Cable Co., Ltd., Tatsuta

and precision industrial machinery

Tachii Electric Cable Co., Ltd.,
Changzhou Tatsuta Chugoku Electric
Wire & Cable Co., Ltd.

Electronic Materials Business

Functional films business

The Company

Manufacturing and sales of EMI shielding
film etc. for electronic equipment
Functional paste business

The Company

Manufacturing and sales of conductive
paste, etc. for electronic equipment
Bonding wire business

The Company, TATSUTA

Manufacturing and sales of ultra-fine

ELECTRONIC MATERIALS

bonding wires for wiring of electronic

MALAYSIA SDN. BHD.

parts

5

Other Businesses

Sensor & medical products business(Sensor business)
Manufacturing and sales of water leakage
detection systems, intrusion monitoring
systems, access control systems, and otherequipment systems, as well as visible
wavelengths fiber devices, optical fiber
couplers, and other photo-electronics

The Company

products(Medical equipment materials business)
Manufacturing and sales of equipment,
components, and materials for medicaluse, including sensors, tubes, and wires for
medical use.
Environmental analysis business

Tatsuta Environmental Analysis

Measurement and analysis of water

Center Co., Ltd.

quality, air, noise, vibration and odor;
research and analysis of toxic substance,
soil pollution and asbestos

6

The Group’s business organization chart is as follows:

Subsidiaries of other affiliate
Pan Pacific Copper Co., Ltd., etc.
Subsidiary* Chugoku Electric Wire & Cable Co., Ltd.
(manufacture, sale)

Subsidiary* Changzhou Tatsuta Chugoku Electric Wire & Cable
Co., Ltd.
(manufacture, sale)

Subsidiary* Tatsuta Tachii Electric Cable Co., Ltd.
(manufacture, sale)
Subsidiary* Tatsuta Environmental Analysis Center Co., Ltd.
(service provision)
Subsidiary* Tatsuta Welfare Service Co., Ltd.
(service provision)
Subsidiary* TATSUTA ELECTRONIC MATERIALSMALAYSIA SDN. BHD.
(manufacture, sale)Note 1
Note 2* Consolidated subsidiaries
Products
Services
Materials

7

Customers

Manufacture and Sales

The Company

Other affiliates
ENEOS Holdings, Inc.
JX Nippon Mining & Metals Corporation

3. Basic Approach to the Selection of Accounting Standards
The policy of the Group is to prepare its consolidated financial statements under the Japanese standards, inconsideration of the comparability of its consolidated financial statements between periods and other factors.
Meanwhile, we intend to address the future application of IFRS in a timely and appropriate manner upon taking
both internal and external environments into consideration.

84. Consolidated Financial Statements and Notes(1) Consolidated Balance Sheets(Millions of yen)
As of March 31, 2020
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - tradeFinished goods
Work in process
Raw materials and supplies
Short-term loans receivable
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures
Accumulated depreciation
Buildings and structures, net
Machinery, equipment and vehicles
Accumulated depreciation
Machinery, equipment and vehicles, net
Tools, furniture and fixtures
Accumulated depreciation
Tools, furniture and fixtures, net
LandConstruction in progress
Total property, plant and equipment
Intangible assets
Software
Software in progress
Right to use facilities
Other
Total intangible assets
Investments and other assets
Investment securities
Long-term prepaid expenses
Deferred tax assets
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets

9

As of March 31, 2021

1,462
16,682
2,416
4,609
897
10,660339(205)
36,864

1,444
14,457
2,491
5,304
1,244
12,5791,271(13)38,78019,098(11,222)
7,876
21,746(19,184)
2,562
3,078
(2,707)
371
3,799
947
15,556

19,375(11,765)
7,610
23,152(19,795)
3,357
3,127
(2,772)
355
3,799
606
15,728

143
7
5
8
165

138
9
5
5
158

815
23
1,433
118
(7)
2,384
18,10654,970

922
11
986
566
(193)
2,293
18,181
56,961

(Millions of yen)
As of March 31, 2020
Liabilities
Current liabilities
Notes and accounts payable - trade
Current portion of long-term borrowings
Accounts payable – otherAccrued expenses
Income taxes payable
Other
Total current liabilities
Non-current liabilities
Long-term borrowings
Provision for environmental measures
Retirement benefit liability
Asset retirement obligations
Deferred tax liabilities
Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders’ equity
Share capital
Capital surplus
Retained earnings
Treasury shares
Total shareholders’ equity
Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Total net assets
Total liabilities and net assets

10

As of March 31, 2021

3,963
1,000
926
1,493
843
721
8,948

3,757
928
1,469
541
979
7,676

110
1,599
62
0
110
1,883
10,831

900
1,301
70
1
109
2,383
10,0606,676
4,516
36,183(2,458)44,9186,676
4,516
37,717(2,458)46,452

142
(308)
(57)
(555)
(779)
44,13954,970

212
414
(62)
(114)
449
46,901
56,961

(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income
Consolidated Statements of Income(Millions of yen)

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating profit
Non-operating income
Interest income
Dividend income
Royalty income
Subsidy income
Other
Total non-operating income
Non-operating expenses
Interest expenses
Foreign exchange losses
Other
Total non-operating expenses
Ordinary profit
Extraordinary income
Gain on sale of investment securities
Gain on sale of non-current assets
Insurance claim income
Total extraordinary income
Extraordinary losses
Loss on valuation of investment securities
Impairment losses
Loss on abandonment of non-current assets
Total extraordinary losses
Profit before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
ProfitProfit attributable to owners of parent

11

Previous fiscal year
(From April 1, 2019 toMarch 31, 2020)
58,17144,367
13,803
10,021
3,781

Current fiscal year
(From April 1, 2020 toMarch 31, 2021)
54,516
41,301
13,215
9,682
3,532

7
23
18
89
30
168

15
18
18
24
42
119

9
15
7
32
3,917

6
6
8
22
3,629

106
59
166

0
17
18

57
5
63
4,020
1,336
(56)
1,279
2,740
2,740

29
29
3,618
1,075
(102)
972
2,645
2,645

Consolidated Statements of Comprehensive Income(Millions of yen)

ProfitOther comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Remeasurements of defined benefit plans, net of tax
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of parent

12

Previous fiscal year
(From April 1, 2019 toMarch 31, 2020)
2,740

Current fiscal year
(From April 1, 2020 toMarch 31, 2021)
2,645

(89)
(400)
0
(380)
(870)
1,870

69
723
(5)
440
1,228
3,874

1,870

3,874

(3) Consolidated Statements of Changes in Equity
Previous fiscal year (From April 1, 2019 to March 31, 2020)(Millions of yen)
Shareholders’ equity
Share capital
6,676

Balance at beginning of period

Retainedearnings

Capital surplus
4,516

Treasury shares

34,493

Total
shareholders’equity(2,457)43,228Changes during period
Dividends of surplus
Profit attributable to owners of parent(1,050)(1,050)

2,740

2,740
(0)

Purchase of treasury shares(0)

Net changes in items other thanshareholders’ equity–

Total changes during period
Balance at end of period

–

–

1,690

(0)

1,690

6,676

4,516

36,183(2,458)44,918

Accumulated other comprehensive income

Balance at beginning of period

Valuationdifference on
available-forsale securities

Deferred gains orlosses on hedges

Foreign currencytranslation
adjustment

Remeasurementsof defined benefit
plans

Total accumulated
othercomprehensive
income

231

91

(58)

(174)

91

Total net assets

43,319Changes during period(1,050)

Dividends of surplus

2,740

Profit attributable to owners of parent(0)

Purchase of treasury shares
Net changes in items other thanshareholders’ equity

(89)

(400)

0

(380)

(870)

Total changes during period(89)

Balance at end of period

142

(400)

0

(380)

(870)

819

(308)

(57)

(555)

(779)

44,13913(870)

Current fiscal year (From April 1, 2020 to March 31, 2021)(Millions of yen)
Shareholders’ equity
Share capital
6,676

Balance at beginning of period

Retainedearnings

Capital surplus
4,516

Total
shareholders’equityTreasury shares

36,183(2,458)44,918Changes during period
Dividends of surplus
Profit attributable to owners of parent(1,112)(1,112)

2,645

2,645
(0)

Purchase of treasury shares(0)

Net changes in items other thanshareholders’ equity

–
–

–

1,533

(0)

1,533

6,676

4,516

37,717(2,458)46,452

Total changes during period
Balance at end of period

Accumulated other comprehensive income

Balance at beginning of period

Valuationdifference on
available-for-salesecurities

Deferred gains orlosses on hedges

Foreign currencytranslation
adjustment

Remeasurementsof defined benefit
plans

Total accumulated
othercomprehensive
income

142

(308)

(57)

(555)

(779)

Total net assets

44,139Changes during period(1,112)

Dividends of surplus

2,645

Profit attributable to owners of parent(0)

Purchase of treasury shares
Net changes in items other thanshareholders’ equity

69

723

(5)

440

1,228

1,228

Total changes during period

69

723

(5)

440

1,228

2,762

Balance at end of period

212

414

(62)

(114)

449

46,90114

(4) Consolidated Statements of Cash Flows(Millions of yen)Previous fiscal year
(From April 1, 2019 toMarch 31, 2020)

Cash flows from operating activities
Profit before income taxes
Depreciation
Impairment losses
Increase (decrease) in retirement benefit liability
Decrease (increase) in retirement benefit asset
Increase (decrease) in provision for environmental measures
Increase (decrease) in allowance for doubtful accounts
Interest and dividend income
Loss (gain) on sale and valuation of investment securities
Subsidy income
Insurance claim income
Interest expenses
Loss (gain) on sale of non-current assets
Loss on abandonment of non-current assets
Decrease (increase) in trade receivables
Decrease (increase) in inventories
Decrease (increase) in other assets
Increase (decrease) in trade payables
Increase (decrease) in accounts payable - other
Increase (decrease) in accrued expenses
Increase (decrease) in accrued consumption taxes
Increase (decrease) in other liabilities
SubtotalInterest and dividends received
Interest paid
Income taxes paid
Subsidies received
Proceeds from insurance income
Payments associated with disaster loss
Net cash provided by (used in) operating activities

4,020
1,836
5
253
204
(30)
(49)
(89)
(59)
9
1
808
759
78
523
(123)
132
162
(426)
8,018
30
(9)
(890)
69
59
(53)
7,223

15

Current fiscal year
(From April 1, 2020 toMarch 31, 2021)
3,618
1,770
304
(2)
3
(5)
(34)
(0)
(24)
6
(17)
34
2,026
(1,114)
(277)
(202)
29
(21)
(268)
630
6,453
27
(8)
(1,362)
44
5,153

(Millions of yen)Previous fiscal year
(From April 1, 2019 toMarch 31, 2020)

Cash flows from investing activities
Purchase of investment securities
Proceeds from sale of investment securities
Purchase of property, plant and equipment
Proceeds from sale of property, plant and equipment
Purchase of intangible assets
Net decrease (increase) in short-term loans receivable
Other, net
Net cash provided by (used in) investing activities
Cash flows from financing activities
Proceeds from long-term borrowings
Repayments of long-term borrowings
Dividends paid
Purchase of treasury shares
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period

16

Current fiscal year
(From April 1, 2020 toMarch 31, 2021)(4)
122(2,176)(65)(3,665)(50)(5,839)(2)
1(1,793)17(49)(1,906)(219)(3,952)(1,050)(0)(1,050)
10
343
1,118
1,462

900
(1,000)(1,112)(0)(1,212)
(6)
(18)
1,462
1,444

(5) Notes to the consolidated financial statements(Notes on the going concern assumption)
N/A(Notes on important matters for the preparation of consolidated financial statements)
1. Scope of the consolidation(1) Number of consolidated subsidiaries: 6
Chugoku Electric Wire & Cable Co., Ltd.
Tatsuta Tachii Electric Cable Co., Ltd.
Tatsuta Environmental Analysis Center Co., Ltd.
Tatsuta Welfare Service Co., Ltd.
Changzhou Tatsuta Chugoku Electric Wire & Cable Co., Ltd.
TATSUTA ELECTRONIC MATERIALS MALAYSIA SDN. BHD.
(2) Number of non-consolidated subsidiaries: 2(Reason for exclusion from the scope of consolidation)
These non-consolidated subsidiaries are excluded from the scope of consolidation, because they are small in size
and their respective total assets, net sales, net income (corresponding to equity held by the Company) and retained
earnings (corresponding to equity held by the Company) of these companies have little impact on the consolidated
financial statements.
2. Application of the equity method
Number of non-consolidated subsidiaries that are not accounted for by the equity method: 2(Reason for non-application of the equity method)
Non-consolidated subsidiaries that are not accounted for by the equity method are excluded from the scope of theapplication of the equity method, because their respective net income (corresponding to equity held by the Company)
and retained earnings (corresponding to equity held by the Company) have little impact on the consolidated financial
statements even if they are excluded from the scope of the equity method, as well as have minor significance as awhole.
3. Fiscal years, etc., of the consolidated subsidiaries
The closing date of Changzhou Tatsuta Chugoku Electric Wire & Cable Co., Ltd. and TATSUTA ELECTRONIC
MATERIALS MALAYSIA SDN. BHD., which are among the Company’s consolidated subsidiaries, is December
31. The consolidated financial statements of these consolidated subsidiaries were prepared using the financial
documents dated as of such closing date. Necessary adjustments are made on any significant transactions that took
place between this date and the consolidated closing date.
The final day of the fiscal year of other consolidated subsidiaries is the same as the closing date of the consolidated
fiscal year.
4. Notes to accounting policies(1) Valuation basis and methods for significant assetsa) Marketable securities
Other marketable securities
Securities with market value:
Market value method based on the market value, etc., at the end of the consolidated fiscal year (anyvaluation gain or loss to be reported in a designated component of net assets; cost of sale to be computed by
the moving-average method).
17Securities without market value
Stated at cost based on the moving average method.
b) Derivatives
Stated at fair valuec) Inventories
Stated at cost mainly using the gross monthly average method (book value is written down based on thedecreased profitability).
(2) Depreciation method of significant depreciable assetsa) Property, plant and equipment: Declining-balance method
Straight-line method for buildings (excluding facilities attached to buildings) acquired on or after April 1, 1998
and facilities attached to buildings and structures acquired on or after April 1, 2016
Useful lives of major items are as follows:
Buildings and structures: 15 to 38 years
Machinery, equipment and vehicles: 4 to 8 yearsb) Intangible fixed assets (excluding leased assets): Straight-line method
Straight-line method for software, which is used in the Company, based on the life in the Company (5 years)(3) Standards of accounting for significant provisionsa) Allowance for doubtful receivables
In order to provide for losses due to doubtful receivables and bad debts, etc., an amount based on the percentageof actual historical bad debts is recorded for ordinary receivables, and the estimated amounts of irrecoverable
debt based on the estimated recoverability of individual cases is recorded for specified receivables such as
doubtful receivables.
b) Provision for environmental measures
The Company provided an estimated disposal cost to cover expenditures such as the disposal of PCB waste
required under the “Law Concerning Special Measures for Promotion of Appropriate Disposal of PCB(polychlorinated biphenyl) Waste.”(4) Accounting methods for retirement benefits(i) Method of attributing the projected amount of retirement benefit to the period
In calculating retirement benefit obligations, the Company uses the benefit formula method to allocate theprojected retirement benefit for the period up to the end of the consolidated fiscal year under review.
(ii) Method of amortizing actuarial gain and loss and past service cost
Past service cost is amortized by the straight-line method over the average remaining years of service of theemployees (11 years).
Actuarial gain and loss are written off in the year following the consolidated fiscal year in which the gain orloss is recognized by the straight-line method over the average remaining years of service of the eligible
employees (11 years).
(iii) Application of the simplified method to small-size companies, etc.
For some consolidated subsidiaries, a simplified method is applied for the calculation of retirement benefit
obligations and retirement benefit expenses in which the necessary retirement benefit provisions for voluntary
resignations at the end of the fiscal year are recorded as retirement benefit obligations.
(5) Basis for the conversion of important foreign-currency assets or liabilities into Japanese yen
18

Monetary receivables and payables denominated in foreign currencies are translated into Japanese yen at theexchange rate at the balance sheet date. The foreign exchange gains and losses from translation are recognized in
profit or loss. Assets and liabilities of overseas subsidiaries, etc., are translated into Japanese yen using the spot
exchange rate on the consolidated balance sheet date thereof. Revenue and expenses are translated into Japanese
yen using the average exchange rates of the consolidated fiscal year. The translation differences are included inforeign currency translation adjustment in the net assets section.
(6) Method of important hedge accountinga) Method of hedge accounting
The Company has adopted the deferred hedge accounting method. Certain forward exchange contracts are
subject to appropriation if they satisfy the requirements of appropriation treatment (“furiate-shori”).
b) Hedging instruments and hedged items
Hedge accounting was applied to the following hedging instruments and hedged items during the consolidated
fiscal year under review.
(Hedging instruments)(Hedged items)
Foreign exchange forward contracts
Foreign currency receivable and payable, etc.
Commodity derivatives
Raw materialsc) Hedging policy
Foreign exchange forward contracts and commodity derivatives are used to hedge the foreign currency risk on
the hedged items and the price fluctuation risk of raw materials in accordance with the internal rules.
d) Method to evaluate effectiveness of hedging
The effectiveness of hedging is assessed based on the market fluctuation of hedging instruments and hedged
items through the comparison of the cumulative amount thereof for the period from the commencement ofhedging to evaluate the effectiveness thereof.
(7) Scope of funds in the consolidated cash flow statement
Funds in the consolidated cash flow statement (cash and cash equivalents) consists of cash on hand, deposits thatcan be withdrawn at any time, and short-term investments with a maturity of three months or less when purchased
which can easily be converted to cash and are subject to little risk of change in value.
(8) Other important matters for the preparation of consolidated financial statementsa) Accounting of consumption taxes
Tax exclusion methodb) Application of consolidated tax payment system
AppliedApplication of tax effect accounting relating to transition from consolidated tax payment system to group tax
sharing system
Regarding the transition to the group tax sharing system established by the Act for Partial Revision of the
Income Tax Act, etc. (Act no. 8 of 2020) and the items reviewed on non-consolidated taxation system in linewith the transition to the group tax sharing system, in accordance with the treatment specified under Paragraph
3 of “Practical Solution on the Treatment of Tax Effect Accounting for the Transition from the Consolidated
Taxation System to the Group Tax Sharing System” (PITF No.39; March 31, 2020), the Company and its
domestic consolidated subsidiaries follow the provisions under tax laws before amendment with respect to theamounts of deferred tax assets and deferred tax liabilities, without applying the provisions under Paragraph 44
of “Implementation Guidance on Tax Effect Accounting” (ASBJ Guidance No. 28; February 16, 2018).

19

(Segment information, etc.)[Segment information]
1

Outline of reportable segments
The reportable segments of the Company are components of the Company about which separate financial
information is available and are evaluated regularly by the Board of Directors in deciding how to allocate resources
and in assessing performance.
The Company consists of business segments by product and service based on operating divisions and operatingcompanies. Categories of reportable segments and key products, etc., relating to the respective reportable segments
are as follows:
Reportable segment

Key products, etc.

Electric Wire and Cable Business

Bare wires, cables (for electric power, fiber optic andtelecommunication), covered wires

Electronic Materials Business

Functional film, functional paste, bonding wires

2

Basis for calculating sales, profit and loss, assets and other items by reportable segment
The method for the accounting process of reportable segments is equivalent to the method described in “Notes
on important matters for the preparation of consolidated financial statements.” Segment performance is evaluatedbased on operating income or loss. Profit of reportable segments figures are based on operating income. Inter-segment
revenue and transfer within the segments are based on the prevailing market price.

3 Information on amounts of sales, profit or loss, assets and other items by reportable segments
Previous consolidated fiscal year (from April 1, 2019 to March 31, 2020)
Reportable segment
Subtotal

Other
Business(Note 1)

Total

Adjustment(Note 2)

19,12956,125

2,045

58,171－

58,171

－

－

－

27

27

(27)

－

36,996

19,12956,125

2,073

58,198(27)

58,171

523

3,762

4,286

159

4,446

(664)

3,781

24,77812,14436,923

1,369

38,292

16,67854,970

812

749

1,562

95

1,657

178

1,836

729

1,141

1,870

158

2,029

98

2,128

Electric
Wire and
Cable
Business

Electronic
Materials
Business

Net sales
Net sales to externalcustomers
Net intersegment
sales or transfer

36,996

Total
Segment profit (loss)
Segment assets
Other items
Depreciation andamortization
Increase inproperty, plant,
equipment andintangible assets(Millions of yen)Amounts statedin consolidated
financialstatements(Note 3)(Notes)1. “Other Business” is a business segment that is not included in the reportable segments, and comprises the sensor
and medical products business and the environmental analysis business. The equipment system business and theoptical components business described in the previous year have been reorganized into the sensor and medical
products business.
20

2. The adjustment is as follows:(1) The adjustment to segment profit (loss) of negative 664 million yen represents 12 million yen in inter-segment
eliminations and negative 677 million yen of corporate assets not allocated to each reportable segment.
Corporate assets mainly include general administrative expenses and research expenses that are not attributableto reportable segments.
(2) The adjustment to segment assets of 16,678 million yen represents negative 2,059 million yen in offsets against
receivables of the administrative division of headquarters and 18,737 million yen of corporate assets notallocated to each reportable segment. Corporate assets mainly include funds to manage surplus assets (cashand short-term loans receivable), long-term investment funds (investment securities), deferred tax assets, andassets related to the administration and research divisions (general affairs, basic research), which are not
attributable to reportable segments.
(3) The adjustment to increase in property, plant, equipment and intangible assets of 98 million yen represents
capital investment including headquarters building, administration and research divisions (general affairs,
basic research).
3. Segment profit (loss) is adjusted to operating income in the consolidated financial statements.
Consolidated fiscal year under review (from April 1, 2020 to March 31, 2021)
Reportable segment
Subtotal

Other
Business(Note 1)

Total

Adjustment(Note 2)

19,59552,602

1,914

54,516－54,516

－

－

－

32

32

(32)

－

33,007

19,59552,602

1,946

54,549(32)

54,516

409

3,813

4,222

39

4,261

(729)

3,532

25,226

11,551

36,777

1,392

38,16918,79256,961

798

701

1,500

101

1,601

169

1,770

926

479

1,405

145

1,551

396

1,947

Electric
Wire and
Cable
Business

Electronic
Materials
Business

Net sales
Net sales to externalcustomers
Net intersegment
sales or transfer

33,007

Total
Segment profit (loss)
Segment assets
Other items
Depreciation andamortization
Increase inproperty, plant,
equipment andintangible assets(Millions of yen)Amounts statedin consolidated
financialstatements(Note 3)(Notes)1. “Other Business” is a business segment that is not included in the reportable segments, and comprises the sensor
and medical products business and the environmental analysis business. The equipment system business and theoptical components business described in the previous year have been reorganized into the sensor and medical
products business.
2. The adjustment is as follows:(1) The adjustment to segment profit (loss) of negative 729 million yen represents 12 million yen in inter-segment
eliminations and negative 742 million yen of corporate assets not allocated to each reportable segment.
Corporate assets mainly include general administrative expenses and research expenses that are not attributable21

to reportable segments.
(2) The adjustment to segment assets of 18,792 million yen represents negative 1,808 million yen in offsets against
receivables of the administrative division of headquarters and 20,601 million yen of corporate assets notallocated to each reportable segment. Corporate assets mainly include funds to manage surplus assets (cashand short-term loans receivable), long-term investment funds (investment securities), deferred tax assets, andassets related to the administration and research divisions (general affairs, basic research), which are not
attributable to reportable segments.
(3) The adjustment to increase in property, plant, equipment and intangible assets of 396 million yen represents
capital investment including headquarters building, administration and research divisions (general affairs,
basic research).
3. Segment profit (loss) is adjusted to operating income in the consolidated financial statements.

22[Related Information]
Previous consolidated fiscal year (from April 1, 2019 to March 31, 2020)
1. Information by product and service
Information is omitted as similar information is disclosed in Segment Information.
2. Information by geographical area
(1) Net sales(Millions of yen)
Japan

China

South Korea

Other Asia

Other

39,651
11,1622,744
4,550(Note) 1. Net sales are segmented by country or region based on customer location.

Total
61

58,171(2) Property, plant, and equipment
Information is omitted since amount of property, plant and equipment in Japan exceeds 90% of property, plantand equipment on the consolidated balance sheet.
3. Information by major customer(Millions of yen)
Customer name

Net sales

SUMIDEN HITACHI CABLE Ltd.

Related segment name12,230 Electric Wire and Cable Business

Consolidated fiscal year under review (from April 1, 2020 to March 31, 2021)
1. Information by product and service
Information is omitted as similar information is disclosed in Segment Information.
2. Information by geographical area
(1) Net sales(Millions of yen)
Japan

China

South Korea

Other Asia

Other

35,53011,3203,566
4,053(Note) 1. Net sales are segmented by country or region based on customer location.

Total
45

54,516(2) Property, plant, and equipment
Information is omitted since amount of property, plant and equipment in Japan exceeds 90% of property, plantand equipment on the consolidated balance sheet.
3. Information by major customer(Millions of yen)
Customer name

Net sales

SUMIDEN HITACHI CABLE Ltd.

Related segment name11,077 Electric Wire and Cable Business23

[Information on impairment loss on fixed assets by reportable segment]
Previous consolidated fiscal year (from April 1, 2019 to March 31, 2020)(Millions of yen)
Reportable segment
Electric
Other
Electronic
Wire andMaterials Subtotal Business
Cable
Business
Business
Impairment loss

5

―

5

Corporate items
andeliminations

Total

―

5

Consolidated fiscal year under review (from April 1, 2020 to March 31, 2021)
N/A[Information on amortization of goodwill and unamortized balance by reportable segment]
Previous consolidated fiscal year (from April 1, 2019 to March 31, 2020)
N/A
Consolidated fiscal year under review (from April 1, 2020 to March 31, 2021)
N/A[Information on gain on negative goodwill by reportable segment]
Previous consolidated fiscal year (from April 1, 2019 to March 31, 2020)
N/A
Consolidated fiscal year under review (from April 1, 2020 to March 31, 2021)
N/A

24

―

Total

5

(Per share information)
Previous consolidated fiscal year
(from April 1, 2019 to March 31, 2020)

Consolidated fiscal year under review(from April 1, 2020 to March 31, 2021)

Net assets per share

714.43 yen Net assets per share759.14 yen

Net income per share

44.36 yen Net income per share

42.83 yen

There is no diluted net income per share as there
are no shares with dilutive effect.

There is no diluted net income per share as there
are no shares with dilutive effect.

Basis for calculation
1. Net assets per share
Total amount in net
assets on the
consolidatedbalance sheet
Amount deducted fromthe total amount in
net assets

Basis for calculation
1. Net assets per share
Total amount in net
assets on the
44,139 million yen
consolidated balance
sheet
Amount deducted from- million yen
the total amount in
net assets

Net assets on commonsharesNumber of commonshares at the end of
fiscal year

assets on common
44,139 million yen Net shares
Number of commonshares at the end of
61,782 thousand sharesfiscal year

2. Net income per share
Net income (loss)
attributable toowners of parent inconsolidated
statements ofincomeAmount not attributable
to common shares
Net income (loss)
attributable toowners of parent oncommon shares
Average number ofcommon shares
during the period

2. Net income per share
Net income (loss)
attributable toowners of parent in
2,740 million yen
consolidated
statements ofincomeAmountnot attributable- million yen
to common shares
Net income (loss)
attributable to2,740 million yen
owners of parent oncommon shares
Average number of
61,782 thousand sharescommon shares
during the period(Important subsequent events)
N/A

25

46,901 million yen- million yen

46,901 million yen
61,782 thousand shares

2,645 million yen- million yen
2,645 million yen
61,782 thousand shares