Financial Results for the Year Ended March 31, 2018
[Japanese GAAP] (Consolidated)
May 11, 2018
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
Phone: +81-6-6721-3011
Scheduled date of General Meeting of Shareholders: June 22, 2018
Scheduled date of filing Annual Securities Report: June 22, 2018
Scheduled date of commencing dividend payments: June 4, 2018
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, 2018 (April 1, 2017 to March 31, 2018)(1) Consolidated Operating Results(% indicates changes from the previous corresponding period.)
Net sales
Fiscal year ended
March 31, 2018
Fiscal year ended
March 31, 2017

Operating income

Profit attributable toowners of parent
Million yen%

Ordinary income

Million yen%

Million yen%

Million yen%

55,194

12.4

5,047

17.7

5,219

19.5

3,677

10.6

49,114

(6.5)

4,286

(3.1)

4,368

(4.1)

3,324

12.6

(Note) Comprehensive income: Fiscal year ended March 31, 2018: 4,077 million yen (10.3%)
Fiscal year ended March 31, 2017: 3,697 million yen (73.8%)

Fiscal year ended
March 31, 2018
Fiscal year ended
March 31, 2017

Basic earnings
per share
Yen

Diluted earnings
per share
Yen

Rate of return on
equity%%Operating profit
ratio
%

59.52

-

9.2

10.6

9.1

52.79

-

9.0

9.5

8.7

Return on assets(Reference) Equity in earnings of affiliates: Fiscal year ended March 31, 2018: NA
Fiscal year ended March 31, 2017: NA(2) Consolidated Financial Position

As ofMarch 31, 2018
As ofMarch 31, 2017

Total assets
Million yen

Net assets
Million yen

51,48047,145Equity ratio%

Net assets per share
Yen

41,40680.4

670.1938,15380.9

617.52(Reference) Equity: As of March 31, 2018: 41,406 million yen
As of March 31, 2017: 38,153 million yen(3) Consolidated Cash Flows

Fiscal year ended
March 31, 2018
Fiscal year ended
March 31, 2017

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

1,545

(683)

(826)

1,286

5,411

(4,092)(1,649)1,254

2. Dividends
Annual dividends
1st quarter-end
Yen

2nd quarter-end
Yen

3rd quarter-end
Yen

-

6.00

-

Fiscal year ended
March 31, 2017
Fiscal year ended
March 31, 2018
Fiscal year ending
March 31, 2019
(Forecast)Year-end

Total
Yen

Yen

-

6.00

12.00

7.00

-

8.00

15.00

8.00

-

8.00

16.00

Total dividend
Dividend payout Dividend on equity
paid out
ratio (consolidated)(consolidated)
Million yen%%
Fiscal year ended
March 31, 2017
Fiscal year ended
March 31, 2018
Fiscal year ending
March 31, 2019
(Forecast)

753

22.7

2.0

926

25.2

2.3

28.2

3. Consolidated Financial Results Forecast for the Fiscal Year Ending March 31, 2019 (April 1, 2018 toMarch 31, 2019)(% indicates changes from the previous corresponding period.)
Net salesFirst half
Full year

Million yen
30,10060,000Operating income

Profit attributable toowners of parent% Million yen%(12.6)
2,000(18.8)
(4.2)
3,500
(4.8)

Ordinary income% Million yen% Million yen
10.4
2,750 (12.2)
2,750
8.7
5,000 (0.9)
5,000Profitper share
Yen
32.37
56.65

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, 201870,156,394 shares
As of March 31, 201770,156,394 shares2) Total number of treasury shares at the end of the period:
As of March 31, 2018
8,372,706 shares
As of March 31, 2017
8,371,505 shares
3) Average number of shares during the period:
Fiscal year ended March 31, 2018
61,784,287 sharesFiscal year ended March 31, 2017
62,987,555 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.
Please see our website for supplemental financial information.

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 .................................................................. 2(3) Basic policy on distribution of profits and dividends for the current term and next term............................... 3
2. Overview of Group Operations ..................................................................................................................... 4
3. Management Policy ..................................................................................................................................... 6(1) The Company’s basic policy of management ............................................................................................ 6(2) The Company’s mid- and long-term management strategy......................................................................... 6
4. Basic Approach to the Selection of Accounting Standards .............................................................................. 6
5. Consolidated Financial Statements................................................................................................................ 7(1) Consolidated Balance Sheets .................................................................................................................. 7(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income ...................... 9(3) Consolidated Statements of Changes in Equity ....................................................................................... 11(4) Consolidated Statements of Cash Flows................................................................................................. 13(5) Notes to the consolidated financial statements ........................................................................................ 15(Notes on the going concern assumption) ................................................................................................ 15(Notes on important matters for the preparation of consolidated financial statements) ................................. 15(Segment information, etc.) .................................................................................................................... 18(Per share information) .......................................................................................................................... 22(Important subsequent events) ................................................................................................................ 22

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 gradually recovered, as improvements in corporate
earnings and the employment environment were seen. When looking overseas, economy gradually recovered as awhole, despite some risk factors such as the policy trends in the U.S., concern about the economic slowdown in
China and the situation in North Korea. As for natural resource prices, oil prices were generally on the uptrend.
Domestic quotation prices for copper were on an upward trend as a whole and the average price for the period
exceeded the level of the previous fiscal year.
During this period, demand for copper wire within Japan were generally firm, roughly on par with that of theprevious fiscal year. With respect to the electronic materials segment, demand for functional films, our flagshipproduct, significantly increased from the previous fiscal year, despite sharp fluctuation during the period.
Under these circumstances, the Group continued to steadily promote various efforts to strengthen its businessfoundation including improvement of efficiency in business operations, a shift toward high value-added products
and the development of new and peripheral businesses, while taking all possible measures to ensure provision offunctional film products. As a result, net sales for the current fiscal year were 55,194 million yen (up 12.4% fromthe previous fiscal year), operating income was 5,047 million yen (up 17.7% from the previous fiscal year), ordinary
income was 5,219 million yen (up 19.5% from the previous fiscal year), and profit attributable to owners of parent
was 3,677 million yen (up 10.6% from the previous 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 32,621 million yen (up 14.6% from the previous fiscal
year) mainly due to the market price of copper remaining at a higher level compared with the previous year,
whereas operating income was 949 million yen (down 21.2% from the previous fiscal year) owing mainly to theimpacts of rises in prices of petrochemicals and freight cost and an increase in depreciation.

[Electronic Materials Business]
Net sales of the electronic materials business were 20,902 million yen (up 10.2% from the previous fiscal year)
and operating income was 4,808 million yen (up 35.1% from the previous fiscal year) mainly due to a significant
year-on-year increase in sales of functional films for mobile terminals caused by a temporary surge in demand fornew-model smartphones.

[Other Businesses]
Net sales for this segment were 1,703 million yen (up 0.1% from the previous fiscal year) and operating income
was 52 million yen (down 51.8% from the previous fiscal year) in spite of an increase in revenue from theenvironmental analysis business, due in part to a change in the sales mix, as represented by a decrease in revenue
from the optical components business.

1

(ii) Earnings forecasts for the next term
The Japanese economy is expected to recover gradually during the next term, mainly due to the implementation of
economic measures and monetary easing by the Bank of Japan.
Amid this situation, in the wire and cable business sector in Japan, private capital expenditures are expected toincrease gradually and an increase in demand is anticipated toward the full-scale commencement of preparation for
the Tokyo Olympics and urban redevelopment projects. In addition, with regards to the functional films business,while growth of the entire market of smartphones and other mobile terminals will slow, change in the product mix is
expected to continue due to sophistication of functions.
Under these circumstances, the financial results forecast for the next fiscal year is as follows.

Consolidated Financial Results Forecast for the Fiscal Year Ending March 31, 2019
Net sales

Operating income

Ordinary income

First half

30,100

2,750

2,750

(Millions of yen)
Profit attributable toowners of parent
2,000

Full year(Reference)
Fiscal year ended
March 31, 2018

60,000

5,000

5,000

3,500

55,194

5,047

5,219

3,677

(2) Overview of financial position for the fiscal year under review
Financial position during the fiscal year under review
In regard to the financial position for the fiscal year under review, total assets increased by 4,335 million yen fromthe end of the previous fiscal year to 51,480 million yen, mainly due to an increase in notes and accounts receivabletrade and inventories, in spite of a decrease in short-term loans receivable.
Total liabilities increased by 1,081 million yen to 10,074 million yen primarily as a result of an increase in income
taxes payable and notes and accounts payable - trade, in spite of a decrease in net defined benefit liability.
Total net assets increased by 3,253 million yen from the end of the previous fiscal year to 41,406 million yen
mainly due to an increase in retained earnings.

Overall cash flows and the reasons therefor are as follows:

Net cash provided by operating activities amounted to 1,545 million yen, a decrease by 3,865 million yen from theprevious fiscal year, with netting factors contributing to capital increase such as income before income taxes andminority interests of 5,013 million yen and depreciation of 1,695 million yen and factors contributing to a capitaldecrease including a decrease (increase) in notes and accounts receivable - trade of 2,848 million yen and a decrease(increase) in inventories of 2,478 million yen.

Net cash used in investing activities resulted in a net cash outflow of 683 million yen, a decrease of 3,409 million
yen from the previous fiscal year, with netting factors contributing to a capital increase such as a decrease (increase)in short-term loans receivable of 1,685 million yen and factors contributing to capital decrease including the2

purchase of property, plant and equipment of 2,578 million yen.

As a result, free cash flow, calculated by deducting net cash used in investing activities from net cash provided byoperating activities, amounted to positive 862 million yen (compared with 1,318 million yen of the previous fiscal
year).

Net cash used in financing activities resulted in a net cash outflow of 826 million yen mainly due to cash
dividends paid of 803 million yen, a decrease in net cash outflow by 823 million yen from the previous year.

(3) 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 15 yen per share for the year including the interim dividend.
As for the next fiscal year, the Company also intends to pay a total dividend of 16 yen per share with an interim
dividend of 8 yen and a year-end dividend of 8 yen.

3

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., Tachii Electric
Wire 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
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

4

Tatsuta Environmental Analysis
Center Co., Ltd.

The Company

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

Manufacture and Sales

Other affiliate
JX Holdings, Inc.

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

Subsidiary*1
Tachii Electric Wire 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 MATERIALSMALAYSIA SDN. BHD.
(manufacture, sale)Note 1*1 Consolidated subsidiaries

Note 2

Products
Services
Materials

5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 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.

65. Consolidated Financial Statements(1) Consolidated Balance Sheets(Millions of yen)
As of March 31, 2017
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - tradeFinished goods
Work in process
Raw materials and supplies
Deferred tax assets
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
Leased assets
Accumulated depreciation
Leased assets, net
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
Net defined benefit asset
Deferred tax assets
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets

7

As of March 31, 2018

1,254
14,375
1,988
3,468
624
201
9,726
620
(1)
32,258

1,286
17,228
2,459
5,215
890
384
8,041
505
(0)
36,011

15,888(10,912)
4,976
20,240(17,308)
2,931
2,878
(2,539)
339
3,916
912
7
(7)
0
13,075

16,326(10,627)
5,699
20,165(17,581)
2,584
2,922
(2,550)
372
3,799
1,142
6
(6)
0
13,598

144
0
5
17
168

119
3
5
14
143

930
10
615
97
(10)
1,643
14,887
47,145

1,077
10
27
505
114
(7)
1,727
15,46951,480(Millions of yen)
As of March 31, 2017
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
Lease obligations
Provision for environmental measures
Provision for business structure improvement
Net defined 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

8

As of March 31, 2018

3,398
2
720
1,157
826
466
6,571

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

1,050
0
106
183
797
182
15
84
2,421
8,992

1,050
80
12
318
173
14
87
1,737
10,074

6,676
4,536
29,681(2,456)38,437

6,676
4,516
32,555(2,457)
41,290

229
149
(51)
(611)
(283)
38,15347,145

262
(69)
(46)
(31)
116
41,40651,480(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
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
Total extraordinary income
Extraordinary losses
Loss on abandonment of non-current assets
Impairment loss
Total extraordinary losses
Profit before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
ProfitProfit attributable to owners of parent

9

Previous fiscal year
(From April 1, 2016 to
March 31, 2017)49,11436,647
12,467
8,180
4,286

Current fiscal year
(From April 1, 2017 toMarch 31, 2018)55,194
41,286
13,908
8,860
5,047

7
15
51
40
55
170

6
17
19
109
77
231

14
17
16
14
25
88
4,368

14
5
3
1
33
59
5,219

-

5
233
239

4,368
1,302
(258)
1,043
3,324
3,324

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

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

10

Previous fiscal year
(From April 1, 2016 to
March 31, 2017)
3,324

Current fiscal year
(From April 1, 2017 toMarch 31, 2018)
3,677

25
347
(70)
69
372
3,697

32
(218)
5
580
400
4,077

3,697

4,077

(3) Consolidated Statements of Changes in Equity
Previous fiscal year (From April 1, 2016 to March 31, 2017)(Millions of yen)
Shareholders' equity
Capital stock
6,676

Balance at beginning of current period

Retainedearnings

Capital surplus
4,536

Total
shareholders'equityTreasury shares

27,121(1,585)36,749Changes of items during period
Dividends of surplus

(765)

(765)

Profit attributable to owners of parent

3,324

3,324
(871)

Purchase of treasury shares(871)

Change in ownership interest of parent
due to transactions with non-controllinginterests
Net changes of items other thanshareholders' equity－

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

–

–

2,559

(871)

1,687

6,676

4,536

29,681(2,456)38,437

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

203

(198)

19

(681)

(656)

Total net assets

36,093

Changes of items during period
Dividends of surplus(765)

Profit attributable to owners of parent

3,324

Purchase of treasury shares(871)

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

Net changes of items other thanshareholders' equity

25

347

(70)

69

372

372

Total changes of items during period

25

347

(70)

69

372

2,060

Balance at end of current period

229

149

(51)

(611)

(283)

38,15311

Current 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 noncontrolling interests

(0)

(20)

(20)

Net changes of items other thanshareholders' equity

–
–

(20)

2,874

(0)

2,853

6,676

4,516

32,555(2,457)

41,290Total 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

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 noncontrolling interests(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

41,40612

(4) Consolidated Statements of Cash Flows(Millions of yen)Previous fiscal year
(From April 1, 2016 to
March 31, 2017)
Cash flows from operating activities
Profit before income taxes
Depreciation
Impairment loss
Increase (decrease) in net defined benefit liability
Decrease (increase) in net defined 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
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
Net cash provided by (used in) operating activities

13

4,368
1,596
(37)
232
(64)
(5)
2
(22)
(40)
14
(0)
17
(334)
25
50
115
51
(16)
45
245
(10)
6,233
22
(15)
(870)
40
5,411

Current fiscal year
(From April 1, 2017 toMarch 31, 2018)
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

(Millions of yen)Previous fiscal year
(From April 1, 2016 to
March 31, 2017)
Cash flows from investing activities
Purchase of securities
Proceeds from sales of 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
Proceeds from long-term loans payable
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(209)(2,360)1(74)(1,444)(6)(4,092)
1,000(1,010)
(765)

(871)
(2)
(1,649)
(10)
(341)
1,595
1,254

14

Current fiscal year
(From April 1, 2017 toMarch 31, 2018)(105)
13(2,578)
360
(36)
1,685
(20)
(683)
(803)

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

(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.
Tachii Electric Wire 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 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 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 value: Market value method based on the market value, etc., at the end of theconsolidated fiscal year (any valuation gain or loss to be reported in a designated component of net assets;cost of sale to be computed by the moving-average method).
15

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 (excluding leased assets): 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 50 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);declining-balance method for other intangible fixed assetsc) Leased assets:
Straight-line method, whereby the leasing period is deemed to be the duration of useful life and the residual
value is zero.
(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.”c) Provision for business structure improvement
The Company provided a reasonably estimated amount to cover expected expenses and losses on businessstructure improvement in the Electric Wire and Cable Business.
(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).
16

(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
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
Applied17

(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, 2016 to March 31, 2017)
Reportable segment
Electric
Wire and
Cable
Business

Electronic
Materials
Business

Net sales
Net sales to externalcustomers
Net intersegment
sales or transfer

28,466

18,974―

Total(Millions of yen)Amounts statedin consolidated
financialstatements(Note 3)

Other
(Note 1)

Total

Adjustment(Note 2)47,441

1,672

49,114―

49,114

―

―

28

28

―

28,466

18,97447,441

1,701

49,143(28)

Segment profit (loss)

1,205

3,559

4,765

109

4,874

Segment assets

20,265

11,611

31,876

1,212

480

942

1,423

1,110

895

2,006

Other items
Depreciation andamortization
Increase inproperty, plant,
equipment andintangible assets

Subtotal(28)

49,11433,089(587)

14,05647,145

53

1,477

119

1,596

145

2,151

172

2,324

4,286

(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.
18

2. The adjustment is as follows:(1) The adjustment to segment profit (loss) of negative 587 million yen represents 9 million yen in intersegment eliminations and negative 597 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 14,056 million yen represents negative 1,619 million yen in offsets
against receivables of the administrative division of headquarters and 15,676 million yen of corporate assets
not allocated to each reportable segment. Corporate assets mainly include funds to manage surplus assets(cash and short-term loans), long-term investment funds (investment securities), deferred tax assets, andassets related to the administration and research divisions (general affairs, basic research).
(3) The adjustment to increase in property, plant, equipment and intangible assets of 172 million yen represents
capital investment including headquarters building and research & development assets.
3. Segment profit (loss) is adjusted to operating income in the consolidated financial statements.
Consolidated fiscal year under review (from April 1, 2017 to March 31, 2018)
Reportable segment
Electric
Electronic
Wire andMaterials
Subtotal
Cable
Business
Business
Net sales
Net sales toexternalcustomers
Net intersegment
sales or transfer
Total

Other
(Note 1)

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 inproperty, plant,
equipment andintangible assets

25,41812,53337,951

642

897

1,540

72

1,570

375

1,946

43

Total

1,670 55,194
33

33

―

55,194

(33)

―

(33)

55,194(763)

12,42451,480

1,612

82

1,695

1,990

721

2,711

1,703 55,228
52(Millions of yen)Amounts statedin consolidated
Adjustment
financial(Note 2)statements(Note 3)5,810

1,104 39,056

5,047(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 763 million yen represents 12 million yen in intersegment eliminations and negative 775 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 12,424 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 to manage surplus assets(cash and short-term loans), long-term investment funds (investment securities), deferred tax assets, andassets related to the administration and research divisions (general affairs, basic research).
19

(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.
3. Segment profit (loss) is adjusted to operating income in the consolidated financial statements.
[Related Information]
Previous consolidated fiscal year (from April 1, 2016 to March 31, 2017)
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

31,957
10,7044,121
2,307(Note) 1. Net sales are segmented by country or region based on customer location.

Total
24

49,114(2) Property, plant, 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 name9,703 Electric Wire and Cable Business

Consolidated fiscal year under review (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, 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.

20

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[Information on impairment loss on fixed assets by reportable segment]
Previous consolidated fiscal year (from April 1, 2016 to March 31, 2017)
N/A
Consolidated fiscal year under review (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

―

[Information on amortization of goodwill and unamortized balance by reportable segment]
Previous consolidated fiscal year (from April 1, 2016 to March 31, 2017)
N/A
Consolidated fiscal year under review (from April 1, 2017 to March 31, 2018)
N/A[Information on gain on negative goodwill by reportable segment]
Previous consolidated fiscal year(from April 1, 2016 to March 31, 2017)
N/A
Consolidated fiscal year under review (from April 1, 2017 to March 31, 2018)
N/A

21

Total

290

(Per share information)
Previous consolidated fiscal year
(from April 1, 2016 to March 31, 2017)

Consolidated fiscal year under review(from April 1, 2017 to March 31, 2018)

Net assets per share

617.52 yen Net assets per share

670.19 yen

Net income per share

52.79 yen Net income per share

59.52 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
38,153 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
38,153 million yen Net shares
Number of commonshares at the end of
61,784 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
3,324 million yen
consolidated
statements ofincomeAmountnot attributable- million yen
to common shares
Net income (loss)
attributable to3,324 million yen
owners of parent oncommon shares
Average number of
62,987 thousand sharescommon shares
during the period(Important subsequent events)
N/A

22

41,406 million yen- million yen

41,406 million yen
61,783 thousand shares

3,677 million yen- million yen
3,677 million yen
61,784 thousand shares