Financial Results for the Year Ended March 31, 2019
[Japanese GAAP] (Consolidated)
May 13, 2019
Company name: Tatsuta Electric Wire & Cable Co., Ltd.
Stock exchange listing: Tokyo Stock Exchange
Stock Code: 5809
URL: http://www.tatsuta.co.jp
Representative: Rentaro Tonoike, President and Representative Director
Contact: Tetsuya Shibata, Managing Officer and Director, General Manager of Corporate Planning Department
Phone: +81-6-6721-3011
Scheduled date of General Meeting of Shareholders: June 21, 2019
Scheduled date of filing Annual Securities Report: June 21, 2019
Scheduled date of commencing dividend payments: June 3, 2019
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, 2019 (April 1, 2018 to March 31, 2019)(1) Consolidated Operating Results(% indicates changes from the previous corresponding period.)
Net sales
Fiscal year ended
March 31, 2019
Fiscal year ended
March 31, 2018

Operating income

Ordinary income

Profit attributable toowners of parent
Million yen%

Million yen%

Million yen%

Million yen%

57,9955.1

4,067(19.4)

4,087(21.7)

2,926(20.4)

55,194

12.4

5,047

17.7

5,219

19.5

3,677

10.6

(Note) Comprehensive income: Fiscal year ended March 31, 2019: 2,901 million yen [(28.8)%]
Fiscal year ended March 31, 2018: 4,077 million yen [10.3%]

Fiscal year ended
March 31, 2019
Fiscal year ended
March 31, 2018

Basic earnings
per share
Yen

Diluted earnings
per share
Yen

Rate of return on
equity%%Operating profit
ratio
%

47.37

-

6.9

7.9

7.0

59.52

-

9.2

10.6

9.1

Return on assets(Reference) Equity in earnings of affiliates: Fiscal year ended March 31, 2019: NA
Fiscal year ended March 31, 2018: NA(2) Consolidated Financial Position

As ofMarch 31, 2019
As ofMarch 31, 2018

Total assets
Million yen

Net assets
Million yen

52,39751,468Equity ratio%

Net assets per shareYen

43,31982.7

701.16

41,40680.5

670.19(Reference) Equity: As of March 31, 2019: 43,319 million yen
As of March 31, 2018: 41,406 million yen(3) Consolidated Cash Flows

Fiscal year ended
March 31, 2019
Fiscal year ended
March 31, 2018

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

3,435(2,577)(1,039)

1,118

1,545

(683)

(826)

1,286

2. Dividends
Annual dividends
1st quarter-end
Yen

2nd quarter-end
Yen

3rd quarter-end
Yen

-

7.00

-

Fiscal year ended
March 31, 2018
Fiscal year ended
March 31, 2019
Fiscal year ending
March 31, 2020
(Forecast)Year-end

Total
Yen

Yen

-

8.00

15.00

8.00

-

8.00

16.00

9.00

-

9.00

18.00

Total dividend
Dividend payout Dividend on equity
paid out
ratio (consolidated)(consolidated)
Million yen%%
Fiscal year ended
March 31, 2018
Fiscal year ended
March 31, 2019
Fiscal year ending
March 31, 2020
(Forecast)

926

25.2

2.3

988

33.8

2.3

30.9

3. Consolidated Financial Results Forecast for the Fiscal Year Ending March 31, 2020 (April 1, 2019 toMarch 31, 2020)(% indicates changes from the previous corresponding period.)
Net salesFirst half
Full year

Million yen
31,00061,500Operating income% Million yen
3.4
2,900
6.0
5,000

Profit attributable toowners of parent% Million yen
%
7.5
2,100
5.6
22.3
3,600
23.0

Ordinary income% Million yen
8.9
2,900
22.9
5,000

Profitper share
Yen
33.99
58.27

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, 201970,156,394 shares
As of March 31, 201870,156,394 shares2) Total number of treasury shares at the end of the period:
As of March 31, 2019
8,373,369 shares
As of March 31, 2018
8,372,706 shares
3) Average number of shares during the period:
Fiscal year ended March 31, 201961,783,485 sharesFiscal year ended March 31, 2018
61,784,287 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) Business results for the fiscal year under review ....................................................................................... 1(2) Overview of financial position for the fiscal year under review .................................................................. 3(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............................... 5
2. Overview of Group Operations ..................................................................................................................... 6
3. Management Policy ..................................................................................................................................... 8(1) The Company’s basic policy of management ............................................................................................ 8(2) The Company’s mid- and long-term management strategy......................................................................... 8
4. Basic Approach to the Selection of Accounting Standards .............................................................................. 8
5. Consolidated Financial Statements................................................................................................................ 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) .......................................................................................................................... 24(Important subsequent events) ................................................................................................................ 24

1. Overview of business results, etc.
(1) Business results for the fiscal year under review(i) Operating results for the period under review
The Japanese economy during the fiscal year under review continued to gradually recover, as improvements incorporate earnings and the employment environment were seen. The world economy saw the speed of its growth
slowly decline in the latter half of fiscal year, as exemplified by the economic slowdown in China and the
manifestation of an adjustment phase for semiconductor demand, although it remains on an expansion track. As fornatural resource prices, oil prices started declining sharply in October after having remained on the uptrend since thebeginning of the term. Domestic quotation prices for copper rose from the beginning of the term to the first half ofJune, but then continued to fall for a long term. Although it grew again after mid-January, the year-end pricedeclined from the beginning-of-period price. The average domestic quotation prices for copper were a little lower
than the level of the previous fiscal year.
During this period, demand for copper wire within Japan was generally firm, a little greater than that of theprevious fiscal year. With respect to the electronic materials segment, sales of functional films, the mainstay productof the Group, decreased from the previous fiscal year when they remained at high levels.
Under these circumstances, the Group saw its revenue increase and its profit decrease, posting net sales for thecurrent fiscal year of 57,995 million yen (up 5.1% from the previous fiscal year), operating income of 4,067 million
yen (down 19.4% from the previous fiscal year), ordinary income of 4,087 million yen (down 21.7% from theprevious fiscal year), and profit attributable to owners of parent of 2,926 million yen (down 20.4% from theprevious fiscal year).

An overview of the Group's business performance by segment is as follows.

[Electric Wire and Cable Business]
Net sales for the electric wire and cable business were 37,092 million yen (up 13.7% from the previous fiscal
year) due to a greater sales volume than that of the previous year (up 12% from the previous fiscal year), which ismainly attributable to an increase in sales to construction, electric constructors and distributors, and electric powercompanies. Operating income was 601 million yen (down 36.7% from the previous fiscal year). With regard toelectric wires for infrastructure, earnings were squeezed by continued declines in copper prices over a long period,
the product composition was aggravated and operation trouble occurred due to natural disasters, etc., while as forequipment wires, productivity fell in the first half of the term following labor shortage and other causes and demand
declined rapidly due to the impacts of trade friction in the latter half of the term.
Though profit declined sharply from the previous fiscal year due to a combination of factors to decrease
earnings, as mentioned above, we will strive to take all measures to ensure stabilization of operations and increase
sales of high value-added products.

[Electronic Materials Business]
Net sales of the electronic materials business were 19,073 million yen (down 8.7% from the previous fiscal year)
and operating income was 4,058 million yen (down 15.6% from the previous fiscal year), as the sales volume of1

functional films for mobile terminals, our mainstay product, decreased from the previous fiscal year (down 9%) due
to sluggish demand because of the impacts of trade friction in and after the fourth quarter in addition to a pause inincrease of demand for new-model smartphones.
From now on, we will do our utmost to ensure sales volumes along with market shares by surely handling needs
for higher functions of products.

[Other Businesses]
Net sales for this segment were 1,871 million yen (up 9.9% from the previous fiscal year) and operating income
was 98 million yen (up 86.9% from the previous fiscal year) mainly due to an increase in revenue from theenvironmental analysis business.
From now on, we will strive to boost earnings levels through expansion of overseas sales of equipment systemproducts and other measures.

Income was below the financial results forecast (operating income forecast for fiscal 2018: 4.5 billion yen) as
demand for equipment wires and functional films rapidly declined due to the impacts of trade friction, etc. while thesales composition of electric wires for infrastructure aggravated in the fourth quarter.
With regard to the mid-term management plan (operating income target for fiscal 2018: 4.7 billion yen), wewere also unable to achieve the target income mainly due to aggravation of earnings caused by a sharp decline indemand for equipment wires following the impacts of trade friction in the latter half of the term, in addition toaggravation of earnings attributable to worsening of the sales composition, operation trouble, continued declines incopper prices over a long period, etc. in the electric wire and cable business. However, capital expenditures, etc. forthe strengthening of the business foundation in for-profit businesses and development of new products in for-growthbusinesses are making steady progress, although they are a little behind schedule.

(ii) Earnings forecasts for the next term
While the Japanese economy is expected to recover gradually during the next term, mainly due to theimplementation of economic measures and monetary easing by the Bank of Japan, uncertainty remains about how
long the current standstill in demand related to equipment wires and electronic materials will continue.
Amid this situation, in the electric wire and cable business, a further increase in demand for wires forinfrastructure is anticipated toward the Tokyo Olympics and urban redevelopment projects. In addition, with regard
to the functional films business, while growth of the market of smartphones and other mobile terminals will remain
at a standstill, sophistication of demand for functional films is expected to continue due to sophistication offunctions.
Under these circumstances, the financial results forecast for the next fiscal year is as follows. We expect bothrevenue and income for the next fiscal year to increase from the fiscal year under review by incorporating recovery
from the aggravation of earnings caused by temporary factors that occurred in the fiscal year under review, anincrease in sales of electric wire and cable products and other factors, though the goals set under the mid-term
management plan (operating income target for fiscal 2019: 5.4 billion yen) will not be attained in the next fiscal
year.

2

Consolidated Financial Results Forecast for the Fiscal Year Ending March 31, 2020
Net sales

Operating income

Ordinary income

First half

31,000

2,900

2,900

(Millions of yen)
Profit attributable toowners of parent
2,100

Full year(Reference)
Fiscal year ended
March 31, 2019

61,500

5,000

5,000

3,600

57,995

4,067

4,087

2,926

(2) Overview of financial position for the fiscal year under review
Financial position of the overall business and that by segment stated in segment information(i)

Financial position of the overall businessTotal assets at the end of the fiscal year under review increased by 928 million yen from the end of the previous

fiscal year to 52,397 million yen, mainly due to an increase in property, plant and equipment despite a decrease in
short-term loans receivable. The increase in property, plant and equipment is primarily attributable to rebuilding of
headquarters building.
Total liabilities decreased by 984 million yen from the end of the previous fiscal year to 9,077 million yen
primarily as a result of a decrease in income taxes payable.
Total net assets increased by 1,912 million yen from the end of the previous fiscal year to 43,319 million yen
mainly due to an increase in retained earnings, resulting from the posting of profit attributable to owners of parent,
despite a decrease caused by payment of dividends.
As a result, the equity ratio increased by 2.2 percentage points from the end of the previous fiscal year to 82.7%,
remaining at a high level.

(ii) Financial position by segment stated in segment information[Electric Wire and Cable Business]
Segment assets at the end of the fiscal year under review increased by 890 million yen from the end of theprevious fiscal year to 26,296 million yen. The increase is mainly due to an increase in notes and accounts
receivable - trade and an increase in property, plant and equipment as a result of various kinds of investment to help
enhance efficiency and refurbishment of buildings at works, despite a decrease in inventories following an increasein sales.

[Electronic Materials Business]
Segment assets at the end of the fiscal year under review decreased by 130 million yen from the end of theprevious fiscal year to 12,403 million yen. The decrease is primarily due to a decrease in notes and accounts
receivable – trade, attributable to decreased sales, and a decrease in property, plant and equipment as a result ofadvance in depreciation, although inventories increased because of an increase in stock in preparation for demandseasons.

3

[Other Businesses]
Segment assets at the end of the fiscal year under review increased by 27 million yen from the end of the previous
fiscal year to 1,132 million yen.

[Corporate assets]
Corporate assets at the end of the fiscal year under review increased by 141 million yen from the end of theprevious fiscal year to 12,565 million yen due to an increase in property, plant and equipment as a result of
rebuilding of headquarters building despite a decrease in short-term loans receivable mainly corresponding to funddemand.

(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 1,118 million yen, a decrease of 167 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 3,435 million yen, an increase by 1,890 million yen fromthe previous fiscal year, with netting factors contributing to capital increase such as profit before income taxes of
3,842 million yen and posting of depreciation of 1,676 million yen and factors contributing to a capital decrease
including income taxes paid of 1,910 million yen.

(Cash flows from investing activities)
Net cash used in investing activities resulted in a net cash outflow of 2,577 million yen, an increase in cash
outflow by 1,894 million yen from the previous fiscal year, with netting factors contributing to a capital increasesuch as a decrease in short-term loans receivable of 1,046 million yen and factors contributing to capital decrease
including the purchase of property, plant and equipment of 3,532 million yen. Purchase of property, plant andequipment increased by 954 million yen from the previous fiscal year, mainly due to rebuilding of headquarters
building.

(Cash flows from financing activities)
Net cash used in financing activities resulted in a net cash outflow of 1,039 million yen mainly due to cash
dividends paid of 988 million yen, an increase in net cash outflow by 212 million yen from the previous fiscal year.

(Information on financial resources of capital and liquidity of funds)
The Group plans to continue proactive investments toward the achievement of the 2025 long-term vision.
Although we plan to procure necessary funds from funds on hand in the near term, we will execute borrowings ifnecessary.
We procured funds for rebuilding of headquarters building, which was executed in the fiscal year under review,

4from funds on hand.

(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 witha target 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 8 yen per share, resulting in a total dividend of 16 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
dividend of 9 yen and a year-end dividend of 9 yen.

5

2. Overview of Group Operations
The Company's Group is comprised of the Company and six subsidiaries, and is engaged in the electric wire andcable business, the electronic materials business, as well as the equipment system product business, the opticalcomponents 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

Communication Wire Business

The Company

Business

Manufacturing and sales of wires forinfrastructure and general industrial
machinery
Equipment Wire Business
Manufacturing and sales of wires for FAs
and precision industrial machinery

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

Electronic Materials Business

Functional Materials Business

The Company

Manufacturing and sales of functional
materials for electronic equipment
including EMI shielding film andconductive paste, etc.
Fine Wire Business

The Company, TATSUTA

Manufacturing and sales of ultra-fine

Other

ELECTRONIC MATERIALS

bonding wires for wiring of electronic parts

MALAYSIA SDN. BHD.

Equipment System Business

The Company

Manufacturing and sales of water leakage
detectors, intrusion monitoring system,
access control system, medical equipment
system, etc.
Optical Components Business

The Company

Manufacturing and sales of visible
wavelengths fiber device, optical fiber
coupler, optical components for medicaluse, etc.
Environmental Analysis BusinessMeasurement and analysis of water
quality, air, noise, vibration and odor;
research and analysis of toxic substance,
soil pollution and asbestos

6

Tatsuta Environmental Analysis
Center Co., Ltd.

(Note) Tachii Electric Wire Co., Ltd. changed its trade name to Tatsuta Tachii Electric Cable Co., Ltd. as of January 1,
2019.

The Company

Subsidiaries of other affiliate
Pan Pacific Copper Co., Ltd., etc.

Manufacture and Sales

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

Subsidiary*1 Chugoku Electric Wire & Cable Co., Ltd.
(manufacture, sale)

Subsidiary*1 Tatsuta Tachii Electric Cable Co., Ltd.
(manufacture, sale)

Subsidiary*1 Changzhou Tatsuta Chugoku Electric Wire &Cable Co., Ltd.
(manufacture, sale)
Subsidiaries*1 Tatsuta Environmental Analysis Center Co., Ltd.
(service provision)*1 Tatsuta Welfare Service Co., Ltd.
(service provision)

Other

Electronic Materials
Business

Electric Wire andCable Business

The Group's business organization chart is as follows:

Subsidiary*1 TATSUTA ELECTRONIC MATERIALS MALAYSIA
SDN. BHD.
(manufacture, sale)Note 1
Note 2*1 Consolidated subsidiaries
Products
Services
Materials

73. Management Policy(1) The Company’s basic policy of management
The basic management policy of the Group is to:(i) continuously and proactively take up the development of businesses that will lead the next generation, based on
our core businesses of electric wire/cable and electronic materials and with overwhelming vitality and speed, while
we promote a consolidated management that is both highly conscientious and transparent so that we may create
sustainable growth and improve mid- and long-term corporate value, and(ii) consider global environmental problems while we provide products and services with characteristics that willmeet customer needs, and thus also contribute to the sustainable growth and development of society.
(2) The Company’s mid- and long-term management strategy(i) 2025 long-term vision:
Our goal is to achieve net sales of ¥100 billion and operating income of ¥10 billion in fiscal 2025. We will explore
the frontiers of electric wire and electronic materials with the aim of becoming a niche top supplier that provides
unique cutting-edge parts and materials.
To achieve this, we will actively invest in the fields which are expected to achieve market expansion; namely,
conductive paste and medical equipment parts & materials in pursuit of growth. For other existing business fields,
we will implement strategies such as promoting investment to help enhance efficiency and shifting our operational
focus to high margin products to pursue the optimization of profit.
(ii) Mid-term management plan for Fiscal Year Ending March 31, 2018 through Fiscal Year Ending March 31,
2020:
While focusing on the establishment of the foundation to attain the 2025 Long-Term Vision, we aim to achieve net
sales of ¥58.0 billion and operating income of ¥5.4 billion for the Fiscal Year Ending March 31, 2020.
4. 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5. Consolidated Financial Statements(1) Consolidated Balance Sheets(Millions of yen)
As of March 31, 2018
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 of using facilities
Other
Total intangible assets
Investments and other assets
Investment securities
Long-term prepaid expenses
Retirement benefit asset
Deferred tax assets
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets

9

As of March 31, 2019

1,286
17,228
2,459
5,215
890
8,041
505
(0)
35,626

1,118
17,496
1,939
5,770
978
6,995
513
(0)
34,811

16,326(10,627)
5,699
20,165(17,581)
2,584
2,922
(2,550)
372
3,799
1,142
13,59818,482(10,781)
7,701
20,978(18,408)
2,570
3,018
(2,594)
423
3,799
788
15,283

119
3
5
14
143

118
19
5
11
155

1,077
10
27
877
114
(7)
2,099
15,841
51,468

1,032
33
974
114
(7)
2,147
17,58552,397

(Millions of yen)
As of March 31, 2018
Liabilities
Current liabilities
Notes and accounts payable - trade
Lease obligations
Accounts payable - otherAccrued expenses
Income taxes payable
Other
Total current liabilities
Non-current liabilities
Long-term loans payable
Provision for environmental measures
Provision for business structure improvement
Retirement benefit liability
Asset retirement obligations
Deferred tax liabilities
Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders' equity
Capital stock
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, 2019

3,661
0
967
1,383
1,315
1,009
8,337

3,382
1,116
1,360
375
715
6,950

1,050
80
12
318
173
1
87
1,724
10,061

1,000
80
796
163
1
84
2,127
9,077

6,676
4,516
32,555(2,457)
41,2906,676
4,516
34,493(2,457)43,228

262
(69)
(46)
(31)
116
41,406
51,468

231
91
(58)
(174)
91
43,31952,397

(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
Total selling, general and administrative expenses
Operating profit
Non-operating income
Interest income
Dividend income
Reversal of provision for business structure improvement
Royalty income
Subsidy income
Other
Total non-operating income
Non-operating expenses
Interest expenses
Loss on abandonment of non-current assets
Foreign exchange losses
Derivative loss
Other
Total non-operating expenses
Ordinary profit
Extraordinary income
Gain on sales of investment securities
Gain on sales of non-current assets
Insurance income
Total extraordinary income
Extraordinary losses
Loss on abandonment of non-current assets
Impairment loss
Loss on disaster
Head office transfer cost
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, 2017 toMarch 31, 2018)55,194
41,286
13,908
8,860
5,047

Current fiscal year
(From April 1, 2018 toMarch 31, 2019)57,99544,61013,384
9,317
4,067

6
17
19
18
109
59
231

6
23
19
4
32
85

14
5
3
1
33
59
5,219

15
0
27
2
20
65
4,087

5
233
239

4
2
7

154
290
445
5,013
1,586
(250)
1,335
3,677
3,677

28
74
149
252
3,842
1,001
(85)
915
2,926
2,926

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, 2017 toMarch 31, 2018)
3,677

Current fiscal year
(From April 1, 2018 toMarch 31, 2019)
2,926

32
(218)
5
580
400
4,077

(30)
160
(11)
(143)
(25)
2,901

4,077

2,901

(3) Consolidated Statements of Changes in Equity
Previous fiscal year (From April 1, 2017 to March 31, 2018)(Millions of yen)
Shareholders' equity
Capital stock
6,676

Balance at beginning of current period

Retainedearnings

Capital surplus
4,536

Total
shareholders'equityTreasury shares

29,681(2,456)38,437

Changes of items during period
Dividends of surplus

(803)

(803)

Profit attributable to owners of parent

3,677

3,677
(0)

Purchase of treasury shares
Change in ownership interest of parent
due to transactions with non-controllinginterests

(0)

(20)

(20)

Net changes of items other thanshareholders' equity－

Total changes of items during period
Balance at end of current period

–

(20)

2,874

(0)

2,853

6,676

4,516

32,555(2,457)

41,290

Accumulated other comprehensive income

Balance at beginning of current period

Valuationdifference on
available-forsale securities

Deferred gains orlosses on hedges

Foreign currencytranslation
adjustment

Remeasurementsof defined benefit
plans

Total accumulated
othercomprehensive
income

229

149

(51)

(611)

(283)

Total net assets

38,153

Changes of items during period
Dividends of surplus(803)

Profit attributable to owners of parent

3,677

Purchase of treasury shares(0)Change in ownership interest of parent
due to transactions with non-controllinginterests(20)

Net changes of items other thanshareholders' equity

32

(218)

5

580

400

400

Total changes of items during period

32

(218)

5

580

400

3,253

Balance at end of current period

262

(69)

(46)

(31)

116

41,40613

Current fiscal year (From April 1, 2018 to March 31, 2019)(Millions of yen)
Shareholders' equity
Capital stock
6,676

Balance at beginning of current period

Retainedearnings

Capital surplus
4,516

Total
shareholders'equityTreasury shares

32,555(2,457)

41,290Changes of items during period
Dividends of surplus

(988)

(988)

Profit attributable to owners of parent

2,926

2,926
(0)

Purchase of treasury shares(0)Change in ownership interest of parent
due to transactions with noncontrolling interests–

Net changes of items other thanshareholders' equity

–
–

–

1,938

(0)

1,937

6,676

4,516

34,493(2,457)43,228

Total changes of items during period
Balance at end of current period

Accumulated other comprehensive income

Balance at beginning of current period

Valuationdifference on
available-for-salesecurities

Deferred gains orlosses on hedges

Foreign currencytranslation
adjustment

Remeasurementsof defined benefit
plans

Total accumulated
othercomprehensive
income

262

(69)

(46)

(31)

116

Total net assets

41,406

Changes of items during period
Dividends of surplus(988)

Profit attributable to owners of parent

2,926
(0)

Purchase of treasury shares
Change in ownership interest of parent
due to transactions with noncontrolling interests–

Net changes of items other thanshareholders' equity

(30)

160

(11)

(143)

(25)

(25)

Total changes of items during period

(30)

160

(11)

(143)

(25)

1,912

Balance at end of current period

231

91

(58)

(174)

91

43,31914

(4) Consolidated Statements of Cash Flows(Millions of yen)Previous fiscal year
(From April 1, 2017 toMarch 31, 2018)
Cash flows from operating activities
Profit before income taxes
Depreciation
Impairment loss
Increase (decrease) in retirement benefit liability
Decrease (increase) in retirement benefit asset
Increase (decrease) in provision for business structure improvement
Increase (decrease) in provision for environmental measures
Increase (decrease) in allowance for doubtful accounts
Interest and dividend income
Loss (gain) on sales and valuation of investment securities
Subsidy income
Insurance income
Loss on disaster
Interest expenses
Loss (gain) on sales of non-current assets
Loss on retirement of non-current assets
Decrease (increase) in notes and accounts receivable - trade
Decrease (increase) in inventories
Decrease (increase) in other assets
Increase (decrease) in notes and accounts payable - trade
Increase (decrease) in accounts payable - other
Increase (decrease) in accrued expenses
Increase (decrease) in accrued consumption taxes
Increase (decrease) in other liabilities
Other, net
SubtotalInterest and dividend income received
Interest expenses paid
Income taxes paid
Proceeds from subsidy income
Proceeds from insurance income
Payments for loss on disasterNet cash provided by (used in) operating activities

15

5,013
1,695
290
28
304
(170)
(26)
(3)
(24)
(5)
(109)
14
(226)
177
(2,848)(2,478)
(92)
255
146
226
(74)
469
(9)
2,551
24
(14)
(1,124)109
1,545

Current fiscal year
(From April 1, 2018 toMarch 31, 2019)
3,842
1,676
220
76
(12)
0
(29)
(4)
(4)
(2)
74
15
173
(278)
(132)
120
(271)
8
(22)
132
(226)
(9)
5,346
29
(15)
(1,910)
4
2
(20)
3,435

(Millions of yen)Previous fiscal year
(From April 1, 2017 toMarch 31, 2018)
Cash flows from investing activities
Purchase of investment securities
Proceeds from sales of investment securities
Purchase of property, plant and equipment
Proceeds from sales of property, plant and equipment
Purchase of intangible assets
Net decrease (increase) in short-term loans receivable
Decrease (increase) in other investments
Net cash provided by (used in) investing activities
Cash flows from financing activities
Repayments of long-term loans payable
Cash dividends paid
Payments from changes in ownership interests in
subsidiaries that do not result in change in scope of
consolidation
Purchase of treasury shares
Other, net
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, 2018 toMarch 31, 2019)

(105)
13
(2,578)
360
(36)
1,685
(20)
(683)

(4)
5
(3,532)
(63)
1,046
(27)
(2,577)

(803)

(50)
(988)

(20)
(0)
(2)
(826)
(4)
31
1,254
1,286

(0)
(0)
(1,039)
13
(167)
1,286
1,118

(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 Environmental Analysis Center Co., Ltd.
Tatsuta Welfare Service Co., Ltd.
Changzhou Tatsuta Chugoku Electric Wire & Cable Co., Ltd.
TATSUTA ELECTRONIC MATERIALS MALAYSIA SDN. BHD.
Tatsuta Tachii Electric Cable Co., Ltd.
(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 insize and their respective total assets, net sales, net income (corresponding to equity held by the Company) andretained 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 theCompany) 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 haveminor significance as a whole.
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 theconsolidated fiscal year.
4. Notes to accounting policies(1) Valuation basis and methods for significant assetsa) Marketable securities
Other marketable securities
Securities with market valueMarket 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 thepercentage of actual historical bad debts is recorded for ordinary receivables, and the estimated amounts ofirrecoverable 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 theconsolidated 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 riskon 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
that can be withdrawn at any time, and short-term investments with a maturity of three months or less whenpurchased 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
Applied19

(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 BusinessElectronic Materials Business

Bare wires, cables (for electric power, fiber optic andtelecommunication), covered wires
Electronic materials (conductive functional materials, bonding wires,
etc.)

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. Intersegment 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, 2017 to March 31, 2018)
Reportable segment
Electric
Wire and
Cable
Business

Other(Note 1)

Electronic
Materials
Business

Subtotal

32,621

20,90253,524―――32,621

20,90253,524

Segment profit (loss)

949

4,808

5,758

Segment assets
Other items
Depreciation andamortization
Increase in property,
plant, equipment
and intangible
assets25,405

12,53337,939

642

897

1,540

72

1,570

375

1,946

43

Net sales
Net sales to externalcustomers
Net intersegment sales
or transfer
Total

Total

(Millions of yen)Amounts statedin
Adjustment
consolidated(Note 2)
financialstatements(Note 3)―55,194

33

(33)

―

1,703 55,228(33)

55,194

5,810

(763)

5,047

1,104 39,044

12,42451,468

1,612

82

1,695

1,990

721

2,711

1,670 55,194
33

52(Notes)1. “Other” is a business segment that is not included in the reportable segments, and comprises theequipment system product business, the optical components business and the environmental analysis
business.
20

2. The adjustment is as follows:(1) The adjustment to segment profit (loss) of negative 763 million yen represents 12 million yen in intersegment eliminations and negative 775 million yen of corporate assets not allocated to eachreportable segment. Corporate assets mainly include general administrative expenses and researchexpenses that are not attributable to reportable segments.
(2) The adjustment to segment assets of 12,424 million yen represents negative 1,632 million yen in
offsets against receivables of the administrative division of headquarters and 14,056 million yen of
corporate assets not allocated to each reportable segment. Corporate assets mainly include funds tomanage surplus assets (cash and short-term loans receivable), long-term investment funds (investment
securities), deferred tax assets, and assets related to the administration and research divisions (generalaffairs, basic research), etc.
(3) The adjustment to increase in property, plant, equipment and intangible assets of 721 million yen
represents capital investment including headquarters building and research & development assets, etc.
3. Segment profit (loss) is adjusted to operating income in the consolidated financial statements.
Consolidated fiscal year under review (from April 1, 2018 to March 31, 2019)
Reportable segment
Electric
Wire and
Cable
Business

Electronic
Materials
Business

Net sales
Net sales to externalcustomers
Net intersegment
sales or transfer

37,092

19,073―

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)

Other
(Note 1)

Total

Adjustment(Note 2)56,166

1,829

57,995―57,995

―

―

42

42

(42)

―

37,092

19,07356,166

1,871

58,037(42)

57,995

601

4,058

4,659

98

4,758

(690)

4,067

26,296

12,40338,6991,132

39,831

12,56552,397

683

804

1,488

79

1,567

108

1,676

1,199

665

1,864

84

1,948

1,480

3,429

Subtotal(Notes)1. “Other” is a business segment that is not included in the reportable segments, and comprises the equipment
system product business, the optical components business and the environmental analysis business.
2. The adjustment is as follows:(1) The adjustment to segment profit (loss) of negative 690 million yen represents 12 million yen in intersegment eliminations and negative 703 million yen of corporate assets not allocated to each reportablesegment. Corporate assets mainly include general administrative expenses and research expenses that are not
attributable to reportable segments.
(2) The adjustment to segment assets of 12,565 million yen represents negative 2,046 million yen in offsets
against receivables of the administrative division of headquarters and 14,612 million yen of corporate assets
not allocated to each reportable segment. Corporate assets mainly include funds to manage surplus assets
21

(cash and short-term loans receivable), long-term investment funds (investment securities), deferred tax
assets, and assets related to the administration and research divisions (general affairs, basic research), etc.
(3) The adjustment to increase in property, plant, equipment and intangible assets of 1,480 million yen
represents capital investment including headquarters building and administration and research divisions(general affairs, basic research), etc.
3. Segment profit (loss) is adjusted to operating income in the consolidated financial statements.

[Related Information]
Previous consolidated fiscal year (from April 1, 2017 to March 31, 2018)
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

35,381
10,9044,768
4,112(Note) 1. Net sales are segmented by country or region based on customer location.

Total
27

55,194(2) Property, plant, and equipment
Information is omitted since amount of property, plant and equipment in Japan exceeds 90% of property,
plant and equipment on the consolidated balance sheet.
3. Information by major customer(Millions of yen)
Customer name

Net sales

SUMIDEN HITACHI CABLE Ltd.

Related segment name10,564 Electric Wire and Cable Business

Consolidated fiscal year under review (from April 1, 2018 to March 31, 2019)
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

39,58010,8453,179
4,348(Note) 1. Net sales are segmented by country or region based on customer location.

Total
42

57,995(2) Property, plant, and equipment
Information is omitted since amount of property, plant and equipment in Japan exceeds 90% of property,
plant and equipment on the consolidated balance sheet.
22

3. Information by major customer(Millions of yen)
Customer name

Net sales

SUMIDEN HITACHI CABLE Ltd.

Related segment name12,248 Electric Wire and Cable Business[Information on impairment loss on fixed assets by reportable segment]
Previous consolidated fiscal year (from April 1, 2017 to March 31, 2018)(Millions of yen)
Reportable segment
Electric
Electronic
Wire andMaterials Subtotal
Cable
Business
Business
Impairment loss

290

―

290

Other

Total

Corporate items
andeliminations

―

290

―

Consolidated fiscal year under review (from April 1, 2018 to March 31, 2019)
N/A[Information on amortization of goodwill and unamortized balance by reportable segment]
Previous consolidated fiscal year (from April 1, 2017 to March 31, 2018)
N/A
Consolidated fiscal year under review (from April 1, 2018 to March 31, 2019)
N/A[Information on gain on negative goodwill by reportable segment]
Previous consolidated fiscal year (from April 1, 2017 to March 31, 2018)
N/A
Consolidated fiscal year under review (from April 1, 2018 to March 31, 2019)
N/A

23

Total

290

(Per share information)
Previous consolidated fiscal year
(from April 1, 2017 to March 31, 2018)

Consolidated fiscal year under review(from April 1, 2018 to March 31, 2019)

Net assets per share

670.19 yen Net assets per share

701.16 yen

Net income per share

59.52 yen Net income per share

47.37 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
41,406 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
41,406 million yen Net shares
Number of commonshares at the end of
61,783 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
3,677 million yen
consolidated
statements ofincomeAmountnot attributable- million yen
to common shares
Net income (loss)
attributable to3,677 million yen
owners of parent oncommon shares
Average number of
61,784 thousand sharescommon shares
during the period(Important subsequent events)
N/A

24

43,319 million yen- million yen

43,319 million yen
61,783 thousand shares

2,926 million yen- million yen
2,926 million yen
61,783 thousand shares