CONSOLIDATED FINANCIAL STATEMENTSFURUKAWA ELECTRIC CO., LTD. AND
SUBSIDIARIESMarch 31, 2019 and 2018

1

CONSOLIDATED BALANCE SHEETSFURUKAWA ELECTRIC CO., LTD. AND
SUBSIDIARIESAt March 31, 2019 and 2018

Millions of yen
2019
2018
ASSETS
Current assets:
Cash and bank deposits (Note 4)
Marketable securities (Note 5)
Notes and accounts receivable
Inventories (Note 6)
Other current assets
Allowance for doubtful accounts
Total current assets

Thousands of
U.S. dollars(Note 3)
2019

44,628 \2,371
219,347
122,890
32,365(1,090)420,51350,635 $0224,335
113,792
28,643(1,215)416,191

405,70921,555
1,994,064
1,117,182
294,227(9,909)3,822,845

Property, plant and equipment (Note 8)Land
Buildings
Machinery and equipment
Leased assets
Construction in progress
Total
Accumulated depreciation
Net property, plant and equipment

36,777
216,932
539,225
3,444
36,444
832,823(603,463)
229,360

39,981
218,385
535,863
3,808
20,484
818,523(601,794)
216,728

334,336
1,972,109
4,902,045
31,309331,309
7,571,118(5,486,027)
2,085,091

Investments and other assets:
Investments and long-term loans (Notes 5, 7and 8)
Deferred tax assets (Note 15)
Asset for retirement benefits (Notes 2g and 9)
Other non-current assets
Allowance for doubtful accounts
Total investments and other assets

127,141
13,644
5,633
22,898(1,172)
168,148

141,256
6,359
5,143
24,157(1,206)
175,713

1,155,827
124,036
51,209208,164(10,655)
1,528,618

\

Total

\

2

818,021\808,632$

7,436,555

LIABILITIES AND NET ASSETS
Current liabilities:
Short-term debt (Note 8)
Current portion of bonds (Note 8)
Notes and accounts payable
Accrued income taxes
Provision for product defectcompensation (Note 2h)
Other current liabilities
Total current liabilities
Long-term liabilities :Bonds (Note 8)Long-term debt (Note 8)
Liability for retirement benefits (Notes 2g and 9)
Provision for environmental costs (Note 2i)
Asset retirement obligations
Deferred tax liabilities (Note 15)
Other long-term liabilities
Total long-term liabilities\

Millions of yen
2019
2018

Thousands of
U.S. dollars(Note 3)
2019

106,710$

131,422
3,893\-

106,279
10,000124,387
4,024

970,091
1,194,745
35,391-

28,40061,193331,621

22,82762,815
330,335

258,182556,300
3,014,736

20,000119,298
47,731
10,691
1,246
1,547
5,972
206,488

20,000122,227
43,174
10,470
1,084
2,327
6,943
206,226

181,818
1,084,527
433,918
97,191
11,327
14,06454,291
1,877,164

69,39522,535
151,744

69,39522,271
128,130

630,864
204,864
1,379,491(600)
243,074(613)
219,182(5,455)2,209,764

21,78830,020198,073

124(8,391)(8,937)
4,584
32,252(495)(6,525)(5,664)
17,33535,552

1,127(76,282)(81,245)
41,673
293,200

279,911
818,021272,071808,6322,544,645
7,436,555

Contingent liabilities (Note 11)
Net assets
Shareholders' equity (Note 10)
Common stock
Authorized shares,
250,000 thousand in 2019 and 2018
Issued shares,
70,666 thousand in 2019 and 2018
Capital surplus
Retained earnings
Common treasury stock, at cost
48,900 in 2019
48,650 in 2018
Total shareholders' equity
Accumulated other comprehensive income
Unrealized gain on
available-for-sale securities (Note 5)
Deferred gain (loss) on derivatives
under hedge accounting (Note 2c)
Adjustments for retirement benefits
Foreign currency translation adjustments
Total accumulated other comprehensive income
Non-controlling interests
Total net assets
Total

\

See accompanying notes to consolidated financial statements.

3

\

$

CONSOLIDATED STATEMENTS OF INCOMEFURUKAWA ELECTRIC CO., LTD. AND
SUBSIDIARIESFor the years ended March 31, 2019 and 2018

Net sales\
Cost of sales (Note 12)
Gross profit
Selling, general and administrative
expenses (Note 12)
Operating income
Other income (expenses):
Interest and dividend income
Interest expense
Foreign exchange loss, net
Equity in income of non-consolidated
subsidiaries and affiliates
Gain on sales of investmet securities
Gain on disposal of property, plant andequipment
Loss on disposal of property, plant andequipment
Impairment loss (Note 14)
Provision for product defect compensation (Note 2h)Provision for loss on litigation
Other, net
Profit before income taxes
Income taxes (Note 15) :Current
DeferredProfitattributable to non-controlling interests
attributable to owners of parent\

Millions of yen
2019
2018
991,590\
967,333
824,481
801,411167,108
165,921

Thousands of
U.S. dollars(Note 3)
2019$
9,014,455
7,495,282
1,519,164

126,266
40,842

121,11744,804

1,147,873
371,291

3,373(4,075)(1,100)2,564(3,977)(1,216)30,664(37,045)(10,000)

1,685
4,952

4,311
220

15,31845,018

3,779

9,362

34,355(2,779)(2,627)(6,364)(1,929)35,757(967)(3,122)(7,157)(2,131)(2,224)
40,466(25,264)(23,882)(57,855)(17,536)
325,064

8,811(5,500)3,310
32,446
3,338
29,108

8,402
(251)
8,151
32,314
3,767
28,547

80,100(50,000)
30,091
294,964
30,345
264,618\$

U.S. dollars

Yen

Per share of common stock( Notes 2p and 17)
Basic profit
Diluted profit
Cash dividends applicable to the year\\\

412.98
85.00

\
\
\

See accompanying notes to consolidated financial statements.

4405.05
80.00

$
$
$

3.75
0.77

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOMEFURUKAWA ELECTRIC CO., LTD. AND
SUBSIDIARIESFor the years ended March 31, 2019 and 2018
Thousands of
U.S. dollars(Note 3)2019

Millions of yen
2019
2018
Profit\Other comprehensive income
Unrealized gain (loss) on available-for-salesecurities
Deferred gain (loss) on derivatives under hedge
accounting
Adjustments for retirement benefits (Notes 2g and 9)
Foreign currency translation adjustments
Share of other comprehensive income of affiliates
accounted for by the equity method
Total other comprehensive income (Note 16)
Total comprehensive income\
Attributable to :Owners of parent\
Non-controlling interests\

32,446\$294,964(8,055)

3,561(73,227)733(1,787)(2,792)(1,205)
1,786
703

6,664
(16,245)(25,382)(1,408)(13,309)
19,137

\

524
5,369
37,684$(12,800)(120,991)
173,973

16,1942,943\\

33,455
4,229$$

147,218
26,755

See accompanying notes to consolidated financial statements.

532,314

CONSOLIDATED STATEMENTS OF CHANGES IN NET ASSETSFURUKAWA ELECTRIC CO., LTD. AND
SUBSIDIARIES(For the year ended March 31, 2019)

Balance at March 31, 2018
Cash dividends paid
Profit attributable to owners of parent
Net effect of increase in consolidated
subsidiaries
Net effect of decrease in consolidated
subsidiaries
Net effect of decrease in an affiliated company
accounted for by the equity method due tochange in scope of equity method
Acquisition of treasury stock
Disposal of treasury stock
Net effect of change in parent's equity
due to transaction with non-controlling interests
Net change in items other than thosein shareholders' equity
Net change during the year
Balance at March 31, 2019

Balance at March 31, 2018
Cash dividends paid
Profit attributable to owners of parent
Net effect of increase in consolidated
subsidiaries
Net effect of decrease in consolidated
subsidiaries
Net effect of decrease in an affiliated company
accounted for by the equity method due tochange in scope of equity method
Acquisition of treasury stock
Disposal of treasury stock
Net effect of change in parent's equity
due to transaction with non-controlling interests
Net change in items other than thosein shareholders' equity
Net change during the year
Balance at March 31, 2019

Thousands
Number ofshares ofCommonstock
70,481Millions of yen
Shareholders' equity
Commonstock\ 69,395
-

(0)
5

\

Capitalsurplus22,271-\

CommonTotal
treasuryshareholders'stockequity\(613) \
219,182(5,649)29,108

-

-

198

-

198

-

-

-

-

0

-

-

(43)

-

5
70,486

Retainedearnings\
128,130(5,649)29,10869,395

\

-

(1)
15

(43)
(1)
15

13
(600)

264

-

-

264

264
22,53523,613
151,744-

23,891
243,074\\\

Millions of yen
Accumulated other comprehensive income
Unrealized
Deferred gain (loss)Adjustment
Foreign
Total
gain onon derivatives for retirement currency
accumulated otheravailable-for- under hedgetranslation
comprehensive
Non-controlling
Total net
benefits
sale securities
accounting (Note 10)
adjustments
incomeinterests
assets\ 30,020 \(495) \
(6,525) \(5,664) \17,335 \35,552 \272,071(5,649)29,108

\

-

-

-

-

-

-

198

-

-

-

-

-

-

0

-

-

-

-

-

-

(43)
(1)
15

-

-

(8,232)(8,232)
21,788

620
620
124

\

\

(1,866)(1,866)(8,391)-\(3,273)(3,273)(8,937)-\-(12,750)(12,750)
4,584\(3,300)(3,300)32,252264\(16,050)
7,840
279,911

Thousands of U.S. dollars (Note 3)
Shareholders' equity

Balance at March 31, 2018
Cash dividends paid
Profit attributable to owners of parent
Net effect of increase in consolidated
subsidiaries
Net effect of decrease in consolidated
subsidiaries
Net effect of decrease in an affiliated company
accounted for by the equity method due toAcquisition of treasury stock
Disposal of treasury stock
Net effect of change in parent's equity
due to transaction with non-controlling interests
Net change in items other than thosein shareholders' equity
Net change during the year
Balance at March 31, 2019

Balance at March 31, 2018
Cash dividends paid
Profit attributable to owners of parent
Net effect of increase in consolidated
subsidiaries
Net effect of decrease in consolidated
subsidiaries
Net effect of decrease in an affiliated company
accounted for by the equity method due toAcquisition of treasury stock
Disposal of treasury stock
Net effect of change in parent's equity
due to transaction with non-controlling interests
Net change in items other than thosein shareholders' equity
Net change during the year
Balance at March 31, 2019

Commonstock$ 630,864-$

Capitalsurplus202,464-Retainedearnings$ 1,164,818(51,355)
264,618

CommonTotal
Total
treasuryshareholders'stockequityequity$(5,573) $ 1,992,564(51,355)
264,618

-

-

1,800

-

1,800

-

-

-

-

-

-

-

-

-

-

2,400

-

-

$ 630,864

2,400
204,864

214,664$ 1,379,491

118(5,455)

$

(9)
136

$

0
(410)
(9)
136

2,400

$

217,191
2,209,764

Thousands of U.S. dollars (Note 3)
Accumulated other comprehensive income
Unrealized
Deferred gain (loss)Adjustment
Foreign
Total
gain onon derivatives for retirement currency
accumulated otheravailable-for- under hedgetranslation
comprehensive Non-controlling
Total net
benefits
sale securities
accounting (Note 10)
adjustments
incomeinterests
assets$ 272,909 $(4,500) $(59,318) $ (51,491) $157,591 $323,200 $ 2,473,373(51,355)
264,618
-

-

-

-

-

-

1,800

-

-

-

-

-

-

0

-

-

-

-

-

-

(9)
136

(74,836)(74,836)$ 198,073

-

$

-

5,636
5,636
1,127

See accompanying notes to consolidated financial statements.

6$(16,964)(16,964)(76,282)

$

-

-

-

(29,755)(29,755)(81,245)(115,909)(115,909)
41,673(30,000)(30,000)
293,200

$

$

2,400
(145,909)
71,273$ 2,544,645

CONSOLIDATED STATEMENTS OF CHANGES IN NET ASSETSFURUKAWA ELECTRIC CO., LTD. AND
SUBSIDIARIES(For the year ended March 31, 2018)

Balance at March 31, 2017
Cash dividends paid
Profit attributable to owners of parent
Net effect of increase in consolidated
subsidiaries
Acquisition of treasury stock
Disposal of treasury stock
Net effect of change in parent's equity
due to transaction with non-controlling interests

Thousands

Millions of yen

Number ofshares ofCommon stock
outstanding
70,473

Shareholders' equity
Commonstock\
69,395
-

\

-

(0)
8

Capitalsurplus21,562-Retainedearnings\
103,942(3,884)28,547-\

Commontreasury
stock
(633)
-

(475)
-

-

Total
shareholders'equity\194,267(3,884)28,547
(475)
(3)
23

(3)
23

-

708

-

-

69,39524,187
128,130-708
22,271708

Net change in items other than thosein shareholders' equity
Net change during the year
Balance at March 31, 2018

8
70,481

\

\

\

19
(613)

\

\

24,915219,182

Millions of yen
Accumulated other comprehensive income

Balance at March 31, 2017
Cash dividends paid
Profit attributable to owners of parent
Net effect of increase in consolidated
subsidiaries
Acquisition of treasury stock
Disposal of treasury stock
Net effect of change in parent's equity
due to transaction with non-controlling interests
Net change in items other than thosein shareholders' equity
Net change during the year
Balance at March 31, 2018

Unrealized
Deferred gain (loss)
gain onon derivatives
available-forunder hedge
sale securities
accounting\
26,622\
717-\

Adjustment
Foreign
for retirement
currencytranslation
benefits(Note 10)adjustments\(8,138) \(6,756)-

Total
accumulated othercomprehensive
Non-controllingincomeinterests\
12,445\30,338-\

Total net
assets237,051(3,884)28,547

-

-

-

-

-

-

(475)
(3)
23

-

-

-

-

-

-

708

(1,213)(1,213)
(495)

1,612
1,612
(6,525)

1,092
1,092
(5,664)

4,890
4,890
17,3355,213
5,213
35,552

3,398
3,398
30,020\See accompanying notes to consolidated financial statements.

7

\

\

\

\

\

10,10435,020272,071

CONSOLIDATED STATEMENTS OF CASH FLOWSFURUKAWA ELECTRIC CO., LTD. AND
SUBSIDIARIESFor the years ended March 31, 2019 and 2018

Millions of yen
2019
2018

Thousands of
U.S. dollars(Note 3)
201935,75740,466＄ 325,064

26,271

25,106

238,827(1,685)(4,311)(15,318)(4,954)(221)(45,036)(1,000)2,627
1,366(3,373)
4,075
(111)
1,196
(11,479)
6,009
2,165

(8,394)
3,122
1,297(2,564)
3,977(137)(26,363)(9,387)
17,057(142)(9,091)
23,882
12,418(30,664)
37,045(1,009)10,873(104,355)
54,627
19,682223(1,083)

2,027

5,785
(7,604)55,271
4,732(4,152)(9,390)46,4606,814
1,200
46,436
3,961(3,953)(8,014)38,42952,591(69,127)
502,464
43,018(37,745)(85,364)
422,364

767(2,924)

190
(799)

6,973
(26,582)

9,051

526

82,282

1,829

72

16,627

Cash flows from operating activities:
Profit before income taxes\
Adjustments for:
Depreciation
Equity in income of non-consolidated
subsidiaries and affiliates
Gain on sales of marketable securities
and investment securities, net
Gain on disposal of property, plantand equipment, net
Impairment loss
Loss on write-down of inventories
Interest and dividend income
Interest expense
Foreign exchange gain, net
Decrease (increase) in trade receivable
Increase in inventories
Increase in trade payable
Increase (decrease) in liability for retirement benefits
Increase (decrease) in provision
for environmental costs
Increase in provision for product defectcompensation
Other, net
SubtotalInterest and dividend income received
Interest expense paid
Income taxes paid
Net cash provided by operating activities
Cash flows from investing activities:
Increase in time deposits, net
Purchases of investment securities
Proceeds from sales and redemptionof investment securities
Proceeds from sales of investments in subsidiaries
resulting in change in scope of consolidation
Purchases of investments in subsidiaries
resulting in change in scope of consolidation
Purchases of property, plant andequipment
Purchases of intangible assets
Proceeds from sales of non-current assets
Dearease (increase) in short-term loans, net
OtherNet cash used in investing activities

8

\

138

-

1,255

(43,053)(3,997)
5,515
2,182

(34,349)(3,533)
9,951(5,886)(391,391)(36,336)
50,136
19,836

(550)

(491)

(5,000)(31,042)(34,319)(282,200)

Millions of yen
2019
2018
Cash flows from financing activities:
Decrease in short-term debt, net
Proceeds from long-term debt
Repayments of long-term debt
Proceeds from issue of bonds
Repayments of redemption of bonds
Proceeds from non-controlling shareholders
Payments for purchase of common treasury stock
Payments for purchase of common treasury stockby subsidiaries
Cash dividends paid
Cash dividends paid to non-controlling shareholders
Other
Net cash used in financing activities
Effect of exchange rate changes on cash and cash
equivalents
Net (decrease) increase in cash and cash equivalents
Cash and cash equivalents at beginning of year
Cash and cash equivalents of newly consolidated
subsidiaries
Cash and cash equivalents of de-consolidated
subsidiaries
Cash and cash equivalents at end of year (Note 4)4,140
26,186(31,421)(10,000)(1)875
19,668(17,778)
10,000(10,000)
1,649(3)

37,636238,055(285,645)(90,909)(9)(8)(5,647)(2,291)(161)(3,885)(1,226)(73)(51,336)(20,827)(372)(19,414)(1,081)(1,943)(3,382)(176,491)

853(3,142)49,7581,040
3,206
46,147

7,755(28,564)452,345

223

463

2,027

(59)
49,758＄ 425,800

46,838\\See accompanying notes to consolidated financial statements.

9

Thousands of
U.S. dollars(Note 3)2019-

NOTES TO CONSOLIDATED FINANCIAL STATEMENTSFURUKAWA ELECTRIC CO., LTD. AND
SUBSIDIARIES

1.

Basis of Presenting Consolidated Financial Statements
The accompanying consolidated financial statements of Furukawa Electric Co., Ltd. (the"Company") have been prepared in accordance with the provisions set forth in the Japanese
Financial Instruments and Exchange Act and its related accounting regulations and inaccordance with accounting principles generally accepted in Japan ("Japanese GAAP"),
which are different in certain respects as to the application and disclosure requirements ofInternational Financial Reporting Standards (“IFRS”).
In preparing these consolidated financial statements, certain reclassifications andrearrangements have been made to the consolidated financial statements issued
domestically in order to present them in a form which is more familiar to readers outside
Japan. In addition, certain reclassifications have been made in the 2018 consolidated
financial statements to conform to the classifications used in 2019.
Japanese yen figures less than a thousand yen are rounded down to the nearest thousand
yen, except where otherwise indicated.

2.

Significant Accounting Policiesa)Basis of consolidation
1) The consolidated financial statements as of March 31, 2019, include the accounts of
the Company and its 109 (108 in 2018) significant subsidiaries (together, the "Group").
Under the control and influence concepts, those companies in which the Company,
directly or indirectly, is able to exercise control over operations are consolidated, andthose companies over which the Group has the ability to exercise significant influence
are accounted for using the equity method.
Investments in 12 (14 in 2018) unconsolidated subsidiaries and associated companies
are accounted for using the equity method.
Investments in the remaining unconsolidated subsidiaries and associated companies
are stated at cost. If the equity method of accounting had been applied to theinvestments in these companies, the effect on the accompanying consolidated financial
statements would not be material.

10

The excess of the cost of acquisition over the fair value of the net assets of an acquired
subsidiary at the date of acquisition is amortized over a period of 20 years.
All significant intercompany balances and transactions have been eliminated inconsolidation. All material unrealized profit included in assets resulting fromtransactions within the Group is also eliminated.
2)

Fiscal year-end of the consolidated subsidiaries

There are 50 subsidiaries' fiscal year-ends that differ from that of the Company due tolocal statutory requirements. Those 50 subsidiaries' fiscal year-ends are as of December
31, and the Company makes necessary adjustments if there are any significant
transactions. There have been no significant transactions, those which would
materially affect the Company's financial position and results of operations, with such
subsidiaries during the period from January 1 to March 31.
3) Unification of Accounting Policies Applied to Foreign Subsidiaries for theConsolidated Financial Statements
Under Accounting Standards Board of Japan ("ASBJ") Practical Issues Task Force("PITF") No. 18, "Practical Solution on Unification of Accounting Policies Applied toForeign Subsidiaries for the Consolidated Financial Statements," the accounting
policies and procedures applied to a parent company and its subsidiaries for similartransactions and events under similar circumstances should in principle be unified forthe preparation of the consolidated financial statements. However, financial
statements prepared by foreign subsidiaries in accordance with either International
Financial Reporting Standards or generally accepted accounting principles in the
United States of America (Financial Accounting Standards Board AccountingStandards Codification) tentatively may be used for the consolidation process, except
for the following items that should be adjusted in the consolidation process so that net
income is accounted for in accordance with Japanese GAAP, unless they are notmaterial: (a) amortization of goodwill; (b) scheduled amortization of actuarial gain orloss of pensions that has been recorded in equity through other comprehensive income;(c) expensing capitalized development costs of R&D; and (d) cancellation of the fairvalue model of accounting for property, plant and equipment and investment
properties and incorporation of the cost model of accounting.
4) Unification of Accounting Policies Applied to Foreign Associated Companies for the
Equity Method
ASBJ Statement No. 16, "Accounting Standard for Equity Method of Accounting forInvestments," requires adjustments to be made to conform the associate's accounting
policies for similar transactions and events under similar circumstances to those of theparent company when the associate's financial statements are used in applying theequity method, unless it is impracticable to determine such adjustments. In addition,
financial statements prepared by foreign associated companies in accordance witheither International Financial Reporting Standards or generally accepted accounting
principles in the United States of America tentatively may be used in applying theequity method if the following items are adjusted so that net income is accounted forin accordance with Japanese GAAP, unless they are not material: (a) amortization of
goodwill; (b) scheduled amortization of actuarial gain or loss of pensions that has beenrecorded in equity through other comprehensive income; (c) expensing capitalized

11

development costs of R&D; and (d) cancellation of the fair value model of accounting
for property, plant and equipment and investment properties and incorporation of thecost model of accounting.
b)Cash and cash equivalents
Cash and cash equivalents in the consolidated statements of cash flows are composedof cash on hand, bank deposits capable of being withdrawn on demand, and short-term
investments with an original maturity of three months or less and subject to a minor
risk of fluctuation in value.

c)Financial instruments
1) Debt and equity securities
Debt securities for which the Company and its consolidated subsidiaries have both thepositive intent and ability to hold to maturity are classified as “held-to-maturity debt
securities” and mainly carried at amortized cost. Securities other than held-tomaturity debt securities and investments in equity securities of non-consolidated
subsidiaries and affiliates are classified as “available-for-sale securities” and are
carried at fair value with unrealized gain and loss, net of tax, reported as a separate
component of net assets. For the purpose of computing gain and loss on securities sold,the cost of these securities is determined using the moving average method. Securities
that do not have readily determinable fair values are recorded at cost. For other-thantemporary declines in fair value, investment securities are reduced to net realizablevalue by a charge to income. The Company and its consolidated subsidiaries do nothold any trading securities.
Debt securities due within one year are presented as “Marketable securities” undercurrent assets, and all other securities are presented as “Investments and long-termloans” in the accompanying balance sheets.
Additional information with respect to marketable debt and equity securities is
included in Note 5.
2) Derivatives and Hedging Activities
The Group uses derivative financial instruments to manage its exposures tofluctuations in foreign exchange, interest rates and prices of raw materials. Foreignexchange forward contracts, currency swap contracts, interest rate swap contracts, andforward contracts for metal materials are utilized by the Group to reduce foreign
currency exchange risks, interest rate risks and price fluctuation risk of raw materials.
The Group does not enter into derivatives for trading or speculative purposes.
Derivative financial instruments are classified and accounted for as derivatives used
for hedging purposes if such derivatives qualify for hedge accounting, which requires
high correlation and effectiveness between the hedging instruments and the hedged
items. For such derivatives, gains or losses on derivatives are deferred until maturityof the hedged transactions.

12Foreign currency forward contracts employed to hedge foreign exchange exposures forexport sales and purchases are measured at fair value, and the unrealized gains/losses
are recognized in income.
Forward contracts applied for forecasted (or committed) transactions are also measured
at fair value, but the unrealized gains/losses are deferred until the underlying
transactions are completed.
Trade receivables and trade payables denominated in foreign currencies for which
foreign exchange forward contracts are used to hedge the foreign currency fluctuations
are translated at the contracted rate if the forward contracts qualify for hedge
accounting.
Long-term debt denominated in foreign currencies for which currency swaps are used
to hedge the foreign currency fluctuations is translated at the contracted rate if theforward contracts qualify for hedge accounting. Also, long-term debt with interest rate
swaps that qualify for hedge accounting and meet specific matching criteria are not remeasured at market value. Instead, the differential paid or received under the swap
agreements are recognized and included in interest expense.
Additional information on derivatives is presented in Note 19.
d)Inventories
Inventories are stated principally at cost determined using the average method, which
requires the amount of the inventories on the balance sheet be written down when
there is a decrease in profitability.

e)

Allowance for doubtful accounts
Allowance for doubtful accounts is provided at the amount of estimated nonrecoverable receivables on an individual account basis, plus the amount calculated byapplying the historical bad debt loss ratios to the remaining receivables.

f)

Property, plant and equipment
Property, plant and equipment, including significant capital expenditures andadditions, are stated at cost. Repairs and maintenance expense are charged to income
as incurred. Properties other than leased assets are depreciated principally using thestraight-line method.

g) Retirement benefits
Employees who terminate their service with the Company or its domestic, consolidated
subsidiaries are entitled to lump-sum severance indemnities determined based on
accumulated points allocated to employees each year according to their jobclassification and performance. The liability for these severance indemnities is notfunded.

13

The retirement benefit plans of the Company and its domestic consolidated
subsidiaries have features whereby employees who retire at age 55 or over with 20 ormore years of service may elect to receive benefits in the form of pensions. These plans,
which are non-contributory and funded, generally provide for an annuity payable overa ten-year period subsequent to retirement. The annual contributions for pension
benefits include current service costs, amortization of prior service costs, and intereston the unfunded portion of past service costs.
The Company and its domestic consolidated subsidiaries recognize retirement benefits
based on the estimated amounts of projected benefit obligation reduced by the fairvalue of the pension plan assets at each fiscal year-end. The retirement benefit
obligation for employees is attributed to each period by the benefit formula method.
Prior service cost is amortized as incurred using the straight-line method over periods
that are shorter than the average remaining years of service of the employees(generally one to ten years).
Actuarial gain or loss is amortized in the year following the original recognition of thegain or loss and is recognized primarily by the straight-line method over periods thatare shorter than the average remaining years of service of the employees (generally one
to ten years).
A minimum pension liability adjustment is generally required for the Company’s
consolidated subsidiaries in the U.S. when the accumulated benefit obligation exceeds
plan assets under U.S. GAAP. The minimum liability adjustment, less allowableintangible assets, is directly charged to retained earnings, net of tax benefit, in theaccompanying consolidated financial statements.
Certain consolidated subsidiaries use a simplified method for calculating retirement
benefit expenses and liabilities based on the assumption that the benefits payable,
which are calculated as if all eligible employees voluntarily terminated theiremployment at fiscal year-end, approximates the retirement benefit obligation at yearend.
h) Provision for product defect compensation
Provision for product defect compensation is provided at an amount deemednecessary to cover possible compensation costs.
i)

Provision for environmental costs
Provision for environmental costs, mainly to remove Poly Chlorinated Biphenyl(“PCB”) and to improve soil conservation, is provided to cover estimated future
costs.

j)Research and development costs, and computer software

14

Research and development expenditures are charged to income as incurred.
Expenditures relating to computer software developed for internal use are charged
against income as incurred, except when such expenditures contribute to thegeneration of income or to future cost savings. In these circumstances, such
expenditure are capitalized as an asset and amortized using the straight-line method
over its estimated useful life of 5 years.
k) Leases
Finance lease transactions are capitalized by recognizing lease assets and leaseobligations in the balance sheet.
Depreciation of finance lease assets that transfer ownership of the assets is calculatedby the same method applied for property, plant and equipment. Depreciation of financelease assets that do not transfer ownership of the assets at the end of the lease term,
mainly machinery and equipment, and vehicles, are calculated using the straight-line
method over the lease periods, which are deemed as the useful lives assuming noresidual value.
All other leases are accounted for as operating leases.
l) Construction Contracts
Construction revenue and construction costs are recognized by the percentage-ofcompletion method if the outcome of a construction contract can be estimated reliably.
When total construction revenue, total construction costs, and the stage of completionof the contract at the balance sheet date can be reliably measured, the outcome of aconstruction contract is deemed to be estimated reliably. If the outcome of aconstruction contract cannot be reliably estimated, the completed-contract methodshould be applied. When it is probable that the total construction costs will exceed total
construction revenue, an estimated loss on the contract should be immediately
recognized by providing for a loss on such construction contracts.
m) Income taxes
The provision for income taxes is computed based on the pretax income included in
the consolidated statements of income.
Deferred income taxes are recognized to reflect the net tax effects of temporary
differences between the carrying amounts of assets and liabilities for financial
reporting purposes and the amounts used for income tax purposes. Such recognition ismeasured using the enacted tax rates and laws that are expected to be in effect whendifferences are expected to reverse.
The Company has elected to file its tax return under the consolidated tax filing system.
On February 16, 2018, the ASBJ issued ASBJ Statement No. 28, "Partial
Amendments to Accounting Standard for Tax Effect Accounting," which requires
deferred tax assets and deferred tax liabilities to be classified as investments and15other assets and long-term liabilities, respectively. Deferred tax assets werepreviously classified as current assets and investments and other assets, and deferred
tax liabilities were previously classified as current liabilities and long-term liabilities
under the previous accounting standard. The revised accounting standard, which iseffective for annual periods beginning on or after April 1, 2018, has been
retrospectively applied. As a result, in its consolidated balance sheet as of the last
fiscal year-end, deferred tax assets of ¥ 9,931 million and deferred tax liabilities of¥ 1 million which were previously classified as current assets and current liabilities,
respectively, as of March 31, 2018, have been reclassified as investments and otherassets and long-term liabilities, respectively, in the accompanying consolidatedbalance sheet.
The effect of off-setting deferred tax assets with deferred tax liabilities related to thesame tax-paying body resulted in reducing total assets and total liabilities by ¥ 7,190
million each, as compared with the previous consolidated balance sheet.
For disclosures on deferred tax accounting, certain items were added under thePartial Amendments article 3 through 5. However, the contents of the previous year
were not disclosed in accordance with the transition treatment set out in the Partial
Amendments article 7.
n) Translation of foreign currency accounts
Current and non-current monetary items denominated in foreign currencies aretranslated into Japanese yen at exchange rates in effect at the respective balance sheet
dates. Monetary items denominated in foreign currencies, for which foreign exchange
forward contracts are used to hedge the foreign currency fluctuation, are translated
into Japanese yen at the contracted rates. Exchange gain or loss is credited or charged
to current operations.
The Company translates the revenue and expense accounts of the overseas
consolidated subsidiaries and affiliates accounted for by the equity method at the
average rates of exchange in effect during the year. The balance sheet accounts, except
for the components of net assets (excluding non-controlling interests in the overseas
consolidated subsidiaries and affiliates accounted for by the equity method), aretranslated into Japanese yen at the rates of exchange in effect at the respective balance
sheet date. The components of net assets (excluding non-controlling interests in theoverseas consolidated subsidiaries and affiliates accounted for by the equity method)
are translated at their historical exchange rates. Differences arising from suchtranslation are shown as “Foreign currency translation adjustments” underaccumulated other comprehensive income in a separate component of equity.
o)Impairment of property, plant and equipment
Property, plant and equipment are periodically reviewed for impairment whenever
events or changes in circumstances indicate that the carrying amount of an asset may
not be recoverable. An impairment loss shall be recognized in the statements of income
by reducing the carrying amount of impaired assets, or a group of assets, to therecoverable amount, which is measured using the higher of net selling price or value in
use.

16

Accumulated loss of impairment is deducted directly from the acquisition costs of therelated assets in accordance with the revised disclosure requirements.
Additional information on impairment of property, plant and equipment, anddepreciation is presented in Note 14.
p) Per Share Information
Basic net income per share is computed by dividing net income attributable to commonshareholders by the weighted-average number of common shares outstanding for theperiod, retroactively adjusted for stock splits.
Diluted net income per share is not presented as the effect of including potential
common shares is anti-dilutive.
Cash dividends per share presented in the accompanying consolidated statements ofincome are dividends applicable to the respective fiscal years, including dividends to be
paid after the end of the year.
q)

Accounting change
IFRS No.9 (Financial Instruments) and IFRS No.15 (Revenue from Contracts with
Customers) have been adopted from this fiscal year in overseas subsidiaries other than
United States of America. IFRS No.9 and IFRS No.15 do not have a material impact on
the consolidated financial statements.

r)Standards issued but not yet effective
1. Accounting Standard for Revenue Recognition (ASBJ Statement No 29)
Implementation Guidance on Accounting Standard for Revenue Recognition (ASBJ
Guidance No.30)(1) Overview
The International Accounting Standard Board (“IASB”) and the Financial
Accounting Standard Board (“FASB”) jointly developed a comprehensive accounting
standard for revenue recognition, and the Revenue from Contracts with Customers
was issued in May 2014, (IFRS No.15 by IASB and Topic 606 by FASB).
Topic 606 was applied from annual reporting periods beginning on or after December
15, 2017, and IFRS No.15 was applied for annual reporting periods beginning on orafter January 2018. Based on this, the ASBJ developed a comprehensive accounting
standard for revenue recognition and the related implementation guidance andissued them together.
Based on the ASBJ’s basic policy for the development of the accounting standard forrevenue recognition, the basic principles of IFRS No.15 were incorporated into the
ASBJ Statement No.29 as a starting point. Then, the Statement was further writtenwith the goal of increasing comparability among financial statements. If there are
any items which should be updated, as it relates to Japanese GAAP, alternative17

treatments are incorporated, to the extent that comparability is not sacrificed.
(2) Schedule date of adoption
It will be applied to the accounting reporting period for the year ending March 31,
2022.
(3) Impact of adoption of accounting standard and implementation guidance
The impact to consolidated financial statements is still being evaluated.
2. Overseas consolidated subsidiaries
Leases (IFRS No.16)(1) Overview
IFRS 16 sets out the revisions for current accounting standard and disclosures oftreatments of leases. More specially, IFRS No.16 generally requires all leases withina term of more than 12 months to recognize right-of-use assets and lease liabilities
on financial statements.
(2) Schedule date of adoption
It will be applied to the accounting reporting period for the year ending March 31,
2020.
(3) Impact of adoption of accounting standard and implementation guidance
The impact to the consolidated financial statements is still being evaluated.
s) Additional information(Board Benefit Trust)Based upon a resolution of the 194th Ordinary General Meeting of Shareholders on June27, 2016, the Company has introduced a Performance-Linked Stock Compensation
System (Board Benefit Trust, hereafter the “BBT”) to be a part of the remuneration
process for Directors excluding Outside Directors and the Executive Officers other than
Directors and the Senior Fellows (collectively the “Directors, etc.”). The goals of the
BBT are to form a stronger linkage between remuneration and the Company’s businessperformance and to provide incentive for meeting and exceeding the Company’s
medium - to long-term business plans.
1)
Overview of the transaction
In accordance with the Stock Benefit Regulations for Executives (the “Regulation”),
previously set out by the Company, points are granted to the Directors, etc. under the
BBT during their term in office, and the accumulated points are exchanged for anequivalent amount of shares at the time of retirement. Points granted are adjusted
once every three years and are linked to the Company’s business performance. If the
Directors, etc., who are eligible to receive the benefits, meet the requirements of theRegulation, money in an amount equivalent to a certain portion of those points granted
to the Directors, etc. shall be provided to them instead of the Company’s shares.
The shares to be provided to the Directors, etc., including the shares to be provided fortheir future services, are acquired using monetary assets contributed previously by theCompany to the BBT. Those shares are managed separately as an asset in BBT.

18

2) Accounting treatment
The Gross method has been applied in accordance with “Practical Solution on
Transactions of Delivering the Company’s Own Stock to Employees etc. through Trusts”(PITF No. 30 issued on March 26, 2015).
3) The Company’s shares remaining in the BBTThe Company’s shares owned by the BBT are accounted for as treasury stock in the
Net Assets section at book value recorded by the BBT (excluding acquisition-related
costs). The book value and the number of shares of treasury stock are ¥307 million($2,790 thousand) and 115,000 shares at March 31, 2019 and ¥323 million and 120,800
shares at March 31, 2018.

3．U.S. Dollar Amounts
The consolidated financial statements are stated in Japanese yen, which is the currency ofthe country in which the Company is incorporated and operates. The translation ofJapanese yen amounts into U.S. dollar amounts are included solely for the convenience ofreaders outside Japan and have been made at the rate of ¥ 110 to $1, the approximate rateof exchange at March 31, 2019. Such translations should not be construed as
representations that the Japanese yen amounts could be converted into U.S. dollars at thator any other rate.

4.

Cash Flow Information
1) Cash and cash equivalents as of March 31, 2019 and 2018 consisted of:Cash and bank deposits
Less, time deposits with an
original maturity of more than 3monthsHighly liquid securities
Cash and cash equivalents

Millions of yen
2019
2018
¥ 44,628¥ 50,635

Thousands
ofU.S. dollars
2019$ 405,709

(142)
2,352

(878)
0

(1,291)
21,382¥46,838¥49,758$ 425,800

2) The followings are the summary of assets and liabilities which were transferred
related to FCM Corporation and represent the costs of shares and proceeds from salesof investments in the subsidiary.
(For the year ended March 31, 2019)
Millions ofyen

19

Thousands
ofU.S. dollars

5.

Current assets

2019¥ 7,6912019$ 69,918

Non-current assets
Current liabilities
Non-current liabilities
Non-controlling interests
Gain on sale of shares of the subsidiary
Sales amount of those shares
Cash and cash equivalents
Proceeds from sales of those shares

4,552(5,431)(2,153)(2,084)293¥ 2,866(1,037)¥ 1,829

41,382(49,373)(19,573)(18,945)
2,664$ 26,055(9,427)$ 16,627

Debt and Equity Securities
Investments in debt and equity securities that have a readily determinable fair value
as of March 31, 2019 and 2018 included in “Marketable securities” (Current assets) andin “Investments and long-term loans” (Non-current assets) are summarized as follows:
Millions of yen
2019
Cost

Fair valueGrossunrealized
gain¥ 2,370¥ 2,370

¥ －

¥ －

99
¥ 2,469101¥ 2,471

1
¥ 1

－
¥ －

Available-for-sale securities:
Marketable equity securities¥ 13,913
Other securities
0
Total available-for-sale securities ¥ 13,914¥ 45,4820¥ 45,483¥ 31,623－¥ 31,623¥ (53)－¥ (53)

Held-to-maturity debt securities:
Government bonds, municipal bonds
and other
Other debt securities
Total held-to-maturity debt securities

Gross
unrealized
loss

Thousands of U.S. dollars
2019
Cost

Fair valueGrossunrealized
gain$ 21,545$ 21,545

$ －

$ －

900
$ 22,445

918$ 22,464

9
$ 9

－
$ －

Available-for-sale securities:
Marketable equity securities$ 126,482
Other securities
0
Total available-for-sale securities $ 126,491$ 413,473
0$ 413,482$ 287,482－$ 287,482$ (482)－$ (482)

Held-to-maturity debt securities:
Government bonds, municipal bonds
and other
Other debt securities
Total held-to-maturity debt securities

20

Gross
unrealized
lossMillions of yen
2018
Fair valueGrossunrealized
gain

Gross
unrealized
loss

－

¥ －

¥ －

¥ －

99
¥ 99

102
¥ 102

2
¥ 2

－
¥ －

Available-for-sale securities:
Marketable equity securities¥ 15,784
Other securities
0
Total available-for-sale securities ¥ 15,785¥ 57,7140¥ 57,715¥ 41,935－¥ 41,935

¥ (5)
－
¥(5)

Cost

Held-to-maturity debt securities:
Government bonds, municipal bonds
and other
Other debt securities
Total held-to-maturity debt securities¥

Proceeds from sales of available-for-sale securities for the years ended March 31, 2019and 2018 were ¥6,660 million ($60,545 thousand) and ¥405 million, respectively.
The gross realized gains on those sales for the years ended March 31, 2019 and 2018
were ¥4,657 million ($42,336 thousand) and ¥221 million, respectively. There was nogross realized losses on those sales for the year ended March 31, 2019 and 2018.
Impairment loss on available-for-sale securities with fair value for the years ended
March 31, 2019 and 2018 amounted to ¥168 million ($1,527 thousand) and ¥395 million,
respectively.

6.

Inventories
Inventories as of March 31, 2019 and 2018 consisted of the following:
Millions of yen
2019
2018
Merchandise and finished goods
Work in process
Raw materials and supplies¥ 40,169
36,95645,764¥ 122,890¥ 36,814
32,27344,703¥ 113,792

Thousands of
U.S. dollars
2019$ 365,173
335,964
416,036$ 1,117,182

The amounts of inventories for normal sales written down due to a decrease ofprofitability are ¥1,366 million ($12,418 thousand) and ¥1,297 million for the years
ended March 31, 2019 and 2018, respectively, and are charged to cost of sales.

7.

Investments and Long-term Loans
Investments and long-term loans at March 31, 2019 and 2018 consisted of the following:
21Millions of yen
2019
2018
Non-consolidated subsidiaries
and affiliates
Other

8.

¥ 77,938
49,203¥ 127,141¥ 78,383
62,873¥ 141,256

Thousands of
U.S. dollars
2019$ 708,527
447,300$ 1,155,827

Short-term Debt, Long-term Debt and Bonds
Short-term debt represents notes payable to banks, most of which are unsecured, bankoverdrafts and commercial papers issued by the Company. The annual weighted averageinterest rates for short-term debt applicable at March 31, 2019 and 2018 are 3.0% and 2.1%,
respectively.
Bonds and long-term debt as of March 31, 2019 and 2018 consisted of the following:Thousands ofMillions of yen
U.S. dollars
2019
2018
2019
0.79% unsecured bonds due 2018
¥10,000$0.43% unsecured bonds due 2026
10,00010,00090,9090.53% unsecured bonds due 2027
10,00010,00090,909Loans, principally from banks andinsurance companies, due from 2020
to 2029 with interest rates ranging
from 0.8% to 1.7% and predominantly
collateralized
146,658
154,254
1,333,255
166,658
184,254
1,515,073
Less: portion due within one year
(27,360)(42,027)(248,727)¥ 139,298¥ 142,227$ 1,266,345

At March 31, 2019, the following assets were pledged as collateral for short-term debt of¥638 million ($5,800 thousand), long-term debt of ¥750 million ($6,818 thousand), andothers of ¥1,684 million ($15,309 thousand):Millions ofThousands ofyen
U.S. dollars
2019
2019
Current assets *¥ 2,366$ 21,509
Property, plant and equipment
1,757
15,973¥ 4,123$ 37,482*) Collateral for guarantee on the extension of the deadline to pay importconsumption tax
At March 31, 2018, the following assets were pledged as collateral for short-term debt of¥1,190 million, long-term debt of ¥668 million, and others of ¥382 million:

22

Property, plant and equipment
Investments in securities

Millions ofyen
2018¥ 1,992562¥ 2,554

The aggregate annual maturities of the non-current portion of long-term debt and bonds
as of March 31, 2019 were as follows:
Thousands ofYear ending March 31
Millions of yen
U.S. dollars
2020¥ 27,360$ 248,727
2021
30,911
281,0092022
25,753
234,1182023
8,011
72,8272024 and thereafter
74,623
678,391¥ 166,658$ 1,515,073

9.

Severance and Retirement Plans
The Company and its consolidated subsidiaries have funded and unfunded defined benefit
pension plans and defined contribution plans. The defined benefit plans consist of
Employees’ Pension Fund Plan, defined benefit corporation pension plan, and lump-sum
severance indemnity plan.
There are cases where additional retirement benefits are paid at the time of retirement of
employees. The Company has established an employees’ retirement benefit trust andcertain consolidated subsidiaries have joined multi-employer employees’ pension fund.
The plans where it is not possible to reasonably compute the amounts of plan assets
corresponding to their own contribution amounts are accounted for in the same way as thedefined contribution plan.
Liability for retirement benefits and net periodic benefit costs are, however, calculated by
the simplified method under the defined benefit corporation pension plans and the lumpsum severance indemnity plans set up by a part of consolidated subsidiaries.

(For the years ended March 31, 2019 and 2018)
1. Defined benefit plans
The changes in defined benefit obligation for the years ended March 31, 2019 and 2018:
Millions of yen
2019
2018
¥ 103,760¥ 101,673
3,915
4,876
1,196
1,213
1,585
2,410

Balance at beginning of year
Current service cost
Interest cost
Actuarial gain and loss

23

Thousands of
U.S. dollars
2019$ 943,273
35,591
10,873
14,409Benefits paid
Foreign currency transaction adjustments
Balance at end of year

(6,353)167¥ 104,271(6,678)264¥ 103,760(57,755)
1,518$ 947,918

The changes in plan assets for the years ended March 31, 2019 and 2018:
Millions of yen
2019
2018
¥ 67,779¥ 63,690
1,792
1,853
(1,944)
2,119
1,221
2,832
(5,238)(3,376)71
659¥ 63,681¥ 67,779

Balance at beginning of year
Expected return on plan assets
Actuarial gain and loss
Contributions from the Company
Benefits paid
Foreign currency transaction adjustments
Balance at end of year

Thousands of
U.S. dollars
2019$ 616,173
16,291(17,673)
11,100(47,618)645$ 578,918

The changes in net liability for retirement benefits using a simplified method for the years
ended March 31, 2019 and 2018:
Millions of yen
2019
2018
¥ 2,049¥ 2,309
502
633
(290)
(213)
(249)
(250)

Balance at beginning of year
Retirement benefit expenses
Benefits paid
Contributions to fundNet effect resulting in change in scopeof consolidation
Balance at end of year

Thousands of
U.S. dollars
2019$ 18,627
4,584(2,636)(2,264)

(502)

(431)

(4,564)¥ 1,508¥ 2,049$ 13,709

Reconciliation between the liabilities recorded in the consolidated balance sheet and thebalances of defined benefit obligation and plan assets as of March 31, 2019 and 2018:
Millions of yen
2019
2018
¥ 99,875¥ 98,944(68,039)(71,943)
31,83627,00010,261
11,02942,09738,030Funded defined benefit obligation
Plan assets
Unfunded defined benefit obligation
Net liability for defined benefit obligation

Liability for retirement benefits
47,731
43,174
Asset for retirement benefits(5,633)(5,143)Net liability for defined benefit obligation¥ 42,097¥ 38,030
Note: The above items include the part used a simplified method.

Thousands of
U.S. dollars
2019$ 907,955(618,536)
289,418
93,282382,700
433,918(51,209)$ 382,700

The components of retirement benefit expenses for the years ended March 31, 2019 and
2018:
24

Service cost
Interest cost
Expected return on plan assets
Amortization of actuarial gain and loss
Amortization of prior service cost
Retirement benefit expenses calculated on asimplified method
Total retirement benefit expenses

Millions of yen
2019
2018
¥ 3,915¥ 4,876
1,196
1,213(1,792)(1,853)
1,484
1,790
60
110
502
¥ 5,366

Thousands of
U.S. dollars
2019$ 35,591
10,873(16,291)
13,491545

633¥ 6,770

4,564$ 48,782

The components of adjustments for retirement benefits in other comprehensive income(before tax effects) for the years ended March 31, 2019 and 2018:
Millions of yen
2019
2018
¥ 58
¥ 111
(2,448)1,715¥ (2,390)¥ 1,826

Prior service cost
Actuarial gain and loss
Total

Thousands of
U.S. dollars
2019
$ 527
(22,255)$ (21,727)

The components of adjustments for retirement benefits in accumulated othercomprehensive income (before tax effects) for the years ended March 31, 2019 and 2018:
Millions of yen
2019
2018
¥ 104
¥ 162
9,778
7,329
¥ 9,882¥ 7,491

Unrecognized prior service cost
Unrecognized actuarial gain and loss
Total

Thousands of
U.S. dollars
2019
$ 945
88,891$ 89,836

Plan assets as of March 31, 2019 and 2018a) Components of plan assets
Plan assets consisted of the followings:
Equity investments
Debt investments
Assets in a life-insurer's general accountCash and deposits
OthersTotal*

2019
37%
25%
19%
3%
16%
100%

2018
47%
22%
17%
3%
11%
100%

(*): The above plan assets included 14% and 17% of assets held by theretirement benefit trust set up for the retirement benefit plan as of March
31, 2019 and 2018, respectively.
b) Method of determining the expected rate of return on plan assets
The expected rate of return on plan assets is determined considering the long-term rates
of return from the various components of the plan assets.
25

Assumptions used for the years ended March 31, 2019 and 2018 were set forth as follows:
Discount rate
Expected rate of return on plan assets

2019
0.4-8.5%
1.0-6.2%

2018
0.1-5.6%
1.0-5.8%

2. Defined contribution plans
Required contributions for defined contribution plans for the years ended March 31, 2019and 2018 were ¥520 million ($4,727 thousand) and ¥666 million, respectively.
3. The multi-employer plan which contributions necessary is treated as net periodic
pension costs is as follows:a) The funded status of the multi-employer plan as of March 31, 2019 and 2018:

Plan assets
Sum of actuarial liabilities of pension
plan and minimum actuarial reserve
Net balance

Millions of yen
2019
2018
¥ 205,822¥ 224,850(188,665)¥ 17,156(210,705)¥ 14,144b) The contribution ratio of the Group in the multi-employer plan for the years ended
March 31, 2019 and 2018:
2019
2018
The contribution ratio of the Group in the
0.4%
0.5%
multi-employer planc) Supplementary explanation
The above net balance resulted mainly from past service cost under the plan in pension
actuarial valuation and special reserve. The ratios above do not represent the actual
actuarial liability ratio of the Group.

10.

Shareholders’ Equity
Japanese companies are subject to the Companies Act of Japan (the "Companies Act").
Under the Companies Act, companies can pay dividends at any time during the fiscal year
in addition to the year-end dividend upon resolution at the shareholders' meeting.
Additionally, for companies that meet certain criteria including (1) having a Board of
Directors, (2) having independent auditors, (3) having an Audit & Supervisory Board, and(4) the term of service of the directors being prescribed as one year rather than thenormal two-year term by its articles of incorporation, the Board of Directors may declare
dividends (except for dividends-in-kind) at any time during the fiscal year if the company
has prescribed as such in its articles of incorporation.
Semi-annual interim dividends may also be paid once a year upon resolution by the Boardof Directors if the articles of incorporation of the company so stipulate. The Companies
Act provides certain limitations on the amounts available for dividends or the purchase oftreasury stock. The limitation is defined as the amount available for distribution to the26shareholders, but the amount of net assets after dividends must be maintained at no lessthan ¥3 million.
The Companies Act also provides for companies to purchase treasury stock and dispose ofsuch treasury stock by resolution of the Board of Directors. The amount of treasury stock
purchased cannot exceed the amount available for distribution to the shareholders, which
is determined by a specific formula.
(Dividends)
Dividends whose record date is attributable to the year ended March 31, 2018 but
which is effective in the following year:
1) Dividend payment
Approvals by shareholders’ meeting held on June 22, 2018 are as follows:
Type of shares
Common stock
Total amount of dividends¥5,649 million
Funds for dividends
Retained earnings
Dividends per share¥80.00Record date
March 31, 2018
Effective dateJune 25, 2018
(Note) Total amount of dividend payments includes dividends of ¥9 million paid for
the Company’s shares held in BBT.
2) Dividends whose record date is attributable to the year ended March 31, 2019 but
which is effective in the following year:
Approvals by shareholders’ meeting held on June 27, 2019 are as follows:
Type of shares
Common stock
Total amount of dividends¥6,002 million ($54,564 thousand)Funds for dividends
Retained earnings
Dividends per share¥85.00 ($0.77)
Record date
March 31, 2019
Effective dateJune 28, 2019
(Note) Total amount of dividend payments includes dividends of ¥9 million ($82
thousand) paid for the Company’s shares held in BBT.

11.

Contingent Liabilities
1)

Contingent liabilities as of March 31, 2019 and 2018:
Millions of yen
2019
2018

Loans guaranteed (principally for
non-consolidated subsidiaries andaffiliates)
Repurchase obligation of the
securitization of receivables
Total

¥

6,004

¥

5,931
¥

27

11,935

6,993

Thousands of
U.S. dollars
2019
$

6,463
¥

13,45654,58253,918$

108,500

2)

Othera) The Company and its related companies are currently in negotiations with
automobile manufactures, regarding compensations for damages due to a violationof the Competition Act related to automobile wire harness cartels.
b) In reference to the automotive parts manufactured by its consolidated subsidiaries,
vehicles with such parts have been recalled, and the Company and its consolidated
subsidiaries were requested to compensate a portion of costs incurred by TOKAI
RIKA Co., LTD. (“TOKAI”), a purchaser of such parts. The Company and its
consolidated subsidiaries have been party to negotiations but have not yet reached
an agreement.
In terms of the above case, American Furukawa, Inc., a consolidated subsidiary of
the Company, is the subject of litigation with the Michigan court of justice in the
U.S. as filed by TRAM, Inc. and TRMI, Inc., subsidiaries of TOKAI, (Delivery dateof legal complaint; June 15, 2017 (local time))
In instances where automobiles that incorporated parts manufactured byconsolidated subsidiaries are being recalled separately from the above,, theCompany and its consolidated subsidiaries are requested to compensate a portionof such costs by the purchaser of those parts.
Compensation costs have been reasonably estimated and reserved for, as it relates
to the continued negotiations and such costs may impact the consolidated results of
the Company. As it relates to additional contingent liabilities, at present, it is
impossible to estimate reasonably such additional potential amounts.

12. Selling, General and Administrative Expenses
The components of selling, general and administrative expenses for the years ended
March 31, 2019 and 2018 were as follows:

Freightage and packing expenses ¥Sales commissions
Salaries and wages
Retirement benefit expenses
Depreciation
Research and development costs
Other
Total

¥

Millions of yen
2019
2018
21,180 ¥20,824
1,969
2,538
45,58544,198
2,118
2,810
2,665
2,589
17,25815,50435,491
32,651
126,266¥

121,117

Thousands of
U.S. dollars
2019$192,545
17,900414,409
19,25524,227
156,891
322,645$

1,147,873

Research and development costs charged to“Selling, general and administrative expenses”
and manufacturing costs for the years ended March 31, 2019 and 2018 amounted to¥ 21,141 million ($192,191 thousand) and ¥19,533 million, respectively.

28

13.

LeasesThe minimum rental commitments under non-cancelable operating leases for the years
ended March 31, 2019:
Thousands ofMillions of yen
U.S. dollars
2019
2018
2019
Due within one year¥
1,038 ¥
- $9,436
Due after one year
2,413
21,936
Total

¥

3,451

¥

-

$

31,373

14. Impairment Loss
(For the year ended March 31, 2019)
The Group has recognized impairment loss of the following asset groups in this fiscal year.
The Group classifies property, plant and equipment into groups by company, business orbusiness unit (each of which is deemed to generate independent cash flows), and idle
properties into individual, independent groups.
Impairment loss by type of assets for the year ended March 31, 2019 consisted of thefollowing:

Location

Usage

Ichihara-city,
Chiba prefecture

Fixed assets
for business
use

Hiratsuka-city,
Kanagawa
prefecture

Fixed assets
for businessuse

Ohta-ku, Tokyo

Fixed assets
for businessuse

Nikko-city,
Tochigi prefecture

Fixed assets
for business
use

Other

Fixed assets

Type of asset
Buildings ¥ 757 million($6,882 thousand),Machinery and equipment¥ 278 million ($2,527
thousand) and others¥ 698million ($6,345
thousand)
Buildings ¥157 million($1,427 thousand),Machinery and equipment¥31 million ($282 thousand)and others ¥186 million($1,691 thousand)
Buildings ¥99 million ($900
thousand), Machinery andequipment ¥38 million ($345
thousand) and others ¥153
million ($1,391 thousand)
Machinery and equipment¥15 million ($136 thousand)and others ¥11 million ($100
thousand)Machinery and equipment

29

Millionsof yenThousands
ofU.S. dollars¥ 1,733$ 15,755

375

3,409

292

2,655

26

236

199

1,809

for businessuse

and others
Total¥ 2,627$ 23,882

It has been decided that recoverable amounts of fixed assets for business use in Chiba
prefecture, Kanagawa prefecture, Tokyo, and Tochigi prefecture were less than theircarrying amounts due to continuing negative cash flow generated from operating activities
and the likelihood of the carrying amount not being recoverable by future cash flows.
Accordingly, the carrying amounts of such assets were reduced to the recoverable amounts.
The recoverable amounts of the asset groups were mainly evaluated based on the appraisal
value.
(For the year ended March 31, 2018)
The Group has recognized impairment loss of the following asset groups in this fiscal year.
The Group classifies property, plant and equipment into groups by company, business orbusiness unit (each of which is deemed to generate independent cash flows), and idle
properties into individual independent groups.
Impairment loss by type of assets for the year ended March 31, 2018 consisted of thefollowing:

Location
Liaoning Sheng,
the People's
Republic of China
Tanba-city, Hyogo
prefecture

Usage
Fixed assets forbusiness use

Fixed assets forbusiness use
Hakui-county,
Fixed assets for
Ishikawa prefecture business use
Fixed assets for
Otherbusiness use

Type of asset
Building, Machineryand equipment andothersLand, Building andequipment
Land, Building andequipment

Millionsof yen¥ 2,492
341
280

Building and others

8

Total

¥ 3,122It has been decided that recoverable amounts of fixed assets for business use in the People's
Republic of China, Ishikawa prefecture, and other, were less than their carrying amounts
due to continuing negative cash flow generated from operating activities and the likelihoodof the carrying amount not being recoverable by future cash flows. Accordingly, the carrying
amounts of such assets were reduced to the recoverable amounts. The recoverable amountsof the asset groups were mainly evaluated based on the appraisal value. The carrying
amounts of fixed assets for business use in Hyogo prefecture were reduced to the recoverable
amounts, of which assets had no chance for future use because the factory was shut down.
15. Income Taxes
Income taxes applicable to the Company and its domestic consolidated subsidiaries consistof corporation tax, inhabitants’ tax, and enterprise tax, which in the aggregate would resultin a statutory income tax rate of approximately 30.6% and 30.9% for the years ended March
31, 2019 and 2018, respectively. Overseas consolidated subsidiaries are subject to income
taxes in the countries in which they operate.

30

Summarized below is a reconciliation of the statutory income tax rate and the effective
income tax rate for the years ended March 31, 2019 and 2018:
2019
2018
Japanese statutory income tax rate
30.6%
30.9%
Entertainment expense and other
1.7
1.6
Dividend income non- taxable
(2.4)
(1.5)
Equity in income (loss) of non-consolidated
subsidiaries and affiliates
(1.4)
(3.3)
Research and development cost
(1.8)
Valuation allowance
8.1
(1.4)
Difference of applicable tax rate of overseas
consolidated subsidiaries
(6.2)
(3.2)
Utilization of loss carryforwards(19.7)(16.0)
Amortization of goodwill
0.5
0.4
Undistributed earnings of subsidiaries andaffiliates
0.3
8.6
Other, net
(0.4)
3.9
9.3%
20.1%
Effective income tax rate
Deferred tax assets (liabilities) as of March 31, 2019 and 2018:2018

Thousands of
U.S. dollars
2019¥ 15,341
3,209
39,209
3,227
2,837
6,408
6,963
931
7,234
85,361$ 145,518
29,791
423,827
30,24530,04585,65562,3009,100
81,545
898,064-(368,909)(54,238)
31,123(199,436)(568,345)
329,709(12,089)(88,845)(9,197)(499)(5,304)(27,090)¥ 4,032(84,627)(6,545)(39,691)(219,727)$ 109,973

Millions of yen
2019Liability for retirement benefits¥ 16,007
Provision for environmental costs
3,277
Loss carryforwards
46,621
Accrued bonus
3,327
Depreciation
3,305
Provision for product defect compensation
9,422
Impairment loss
6,853
Loss on write-down of inventories
1,001
Other
8,970
Gross deferred tax assets
98,787Less valuation allowance for loss
carryforwards(40,580)
Less valuation allowance for total of
future deductible temporary differences
etc.
(21,938)
Valuation allowance(62,518)
Total deferred tax assets
36,268
Unrealized gain on
available-for-sale securities(9,773)
Undistributed earnings of subsidiaries
and affiliates(9,309)
Revaluation difference on land
(720)
Other
(4,366)
Total deferred tax liabilities(24,170)
Net deferred tax assets¥ 12,097
31

The expiration of loss carryforwards, the related valuation allowances, and the resulting net
deferred tax assets as of March 31, 2019:

March 31, 2019
Deferred tax assets
relating to loss
carryforwards
Less valuation
allowances for loss
carryforwards
Net deferred tax
assets relating toloss carryforwards

March 31, 2019

1 Year orLess¥ 1,309¥ 1,385

6,240¥ 7,062

(778)

(937)

(2,558)

¥ 530

¥ 447

¥ 3,681

1 Yearor Less

Deferred tax assets
relating to loss
$ 11,900
carryforwards
Less valuation
allowances for loss
(7,073)carryforwards
Net deferred tax
assets relating toloss carryforwards $ 4,818

16.

Millions of Yen
After
After
After
2 Years
3 Years
4 Years
through through through3 Years
4 Years
5 Years

After
1 Yearthrough
2 Years

After
5 Years

Total¥ 6,268¥24,355¥46,621(6,112)(6,171)(24,021)(40,580)

¥ 949

¥ 97

¥ 333

¥ 6,041

After
1 Yearthrough
2 YearsAfter
2 Years
through
3 Years

Thousands of
U.S. dollars
After
After
3 Years
4 Years
through through4 Years
5 Years$ 12,591$ 56,727$ 64,200$ 56,982$ 221,409$ 423,827(8,518)(23,255)(55,564)(56,100)(218,373)(368,909)$ 4,064$ 33,464$ 8,627$ 882$3,027$ 54,918

After
5 Years

Total

Other Comprehensive Income (Loss）(For the year ended March 31, 2019)1)

The following table presents components of recycled amounts of other comprehensive
income for the year ended March 31, 2019:
Millions of yen
Unrealized gain or loss on available-for-salesecurities
Amount arising during the year
Reclassification adjustments for gains andlosses included in profit32¥ (5,792)(4,571)¥ (10,363)

Deferred gain or loss on derivatives underhedge accounting
Amount arising during the year
Reclassification adjustments for gains andlosses included in profit
Adjustments for amounts transferred toassets’ acquisition costs
Adjustments for retirement benefits
Amount arising during the year
Reclassification adjustments for gains andlosses included in profit
Foreign currency translation adjustments
Amount arising during the year
Share of other comprehensive income ofaffiliates accounted for by the equity method
Amount arising during the year
Reclassification adjustments for gains andlosses included in profit
Adjustments for amounts transferred toassets’ acquisition costs
Subtotal before tax effects
Tax effects
Total other comprehensive income

887
(165)
355

1,077

(3,924)
1,534(2,390)(2,792)(2,792)(1,409)10¥ (9)(1,408)(15,875)
2,566¥ (13,309)

Thousands of U.S. dollars
Unrealized gain or loss on available-for-salesecurities
Amount arising during the year
Reclassification adjustments for gains andlosses included in profit
Deferred gain or loss on derivatives underhedge accounting
Amount arising during the year
Reclassification adjustments for gains andlosses included in profit
Adjustments for amounts transferred toassets’ acquisition costs
Adjustments for retirement benefits
Amount arising during the year
Reclassification adjustments for gains andlosses included in profit
Foreign currency translation adjustments
Amount arising during the year
Share of other comprehensive income ofaffiliates accounted for by the equity method
Amount arising during the year
Reclassification adjustments for gains andlosses included in profit
Adjustments for amounts transferred toassets’ acquisition costs33$ (52,655)(41,555)$ (94,209)

8,064(1,500)
3,227

9,791

(35,673)
13,945(21,727)(25,382)(25,382)(12,809)91(82)(12,800)(144,318)
23,327$ (120,991)

Subtotal before tax effects
Tax effects
Total other comprehensive income2) Deferred tax of other comprehensive income for the year ended March 31, 2019:
Millions of yen
Tax
Before-tax
Net-of-tax(expense)amounts
amounts
Benefits
Unrealized gain or loss on available-for-salesecurities
Deferred gain or loss on derivatives underhedge accounting
Adjustments for retirement benefits
Foreign currency translation adjustments
Share of other comprehensive income ofaffiliates accounted for by the equity method
Total other comprehensive income¥ (10,363)¥ 2,307¥ (8,055)

1,077

(344)

733

(2,390)(2,792)602-(1,787)(2,792)(1,408)-(1,408)¥ (15,875)¥ 2,566¥ (13,309)(For the year ended March 31, 2018)

Thousands of U.S. dollars
Tax
Before-tax
Net-of-tax
benefits
amounts
amounts(expense)
Unrealized gain or loss on available-for-sale$ (94,209)$ 20,973$ (73,227)
securities
Deferred gain or loss on derivatives under
9,791(3,127)
6,664
hedge accounting
Adjustments for retirement benefits(21,727)
5,473(16,245)
Foreign currency translation adjustments(25,382)(25,382)
Share of other comprehensive income of(12,800)(12,800)
affiliates accounted for by the equity method
Total other comprehensive income $ (144,318)$ 23,327 $ (120,991)
1) The following table presents components of recycled amounts of other comprehensive
income for the year ended March 31, 2018:
Millions of yen
Unrealized gain or loss on available-for-salesecurities
Amount arising during the year
¥ 6,357
Reclassification adjustments for gains andlosses included in profit(220)¥ 6,136
Deferred gain or loss on derivatives underhedge accounting
Amount arising during the year
(1,693)
Reclassification adjustments for gains andlosses included in profit
97

34

Adjustments for amounts transferred toassets’ acquisition costs
Adjustments for retirement benefits
Amount arising during the year
Reclassification adjustments for gains andlosses included in profit
Foreign currency translation adjustments
Amount arising during the year
Share of other comprehensive income ofaffiliates accounted for by the equity method
Amount arising during the year
Reclassification adjustments for gains andlosses included in profit
Adjustments for amounts transferred toassets’ acquisition costs
Subtotal before tax effects
Tax effects
Total other comprehensive income(1,777)

(180)
(73)
1,900

1,826

703

703

488
(71)
¥ 106

524
7,413
(2,044)¥ 5,3692) Deferred tax of other comprehensive income for the year ended March 31, 2018:
Millions of yen
Tax
Before-tax
Net-of-tax(expense)amounts
amounts
benefits
Unrealized gain or loss on available-for-salesecurities
Deferred gain or loss on derivatives underhedge accounting
Adjustments for retirement benefits
Foreign currency translation adjustments
Share of other comprehensive income ofaffiliates accounted for by the equity method
Total other comprehensive income

17.

¥ 6,136¥ (2,575)¥ 3,561(1,777)571(1,205)

1,826
703

(40)
-

1,786
703

524

-

524

¥ 7,413¥ (2,044)¥5,369Amount Per ShareYen
Profit attributable to owners of parent
per share:
Basic
Diluted

2019

2018

¥ 412.98¥ -¥ 405.05¥ -Yen

Net assets per share

2019

2018

¥ 3,513.58¥ 3,355.77

35

U.S. dollars
2019$ 3.75$ U.S. dollars
2019$ 31.94

Basic profit attributable to owners of parent per common stock (the “Basic profit per share”)
is calculated by dividing profit attributable to owners of parent by the weighted average
number of shares of common stock outstanding during the respective years (the “Weighted
average number of shares”), adjusted for treasury stock held.
Diluted profit attributable to owners of parent per common stock has not been presented
for the years ended March 31, 2019 and 2018, since the Company has issued no potentiallydilutive shares.
Net assets per share are computed based on the net assets excluding non-controllinginterests, and the number of shares of common stock outstanding at the year end.
The Company’s shares held in Board Benefit Trust (See in Note 2. (s)), which are treatedas treasury stock, are deducted from the number of shares at the end of the fiscal year usedin the calculation of the net asset per share and are also deducted from the weighted
average number of shares used in the calculation of basic profit per share.
The number of shares of the above treasury stock deducted as of March 31, 2019 and 2018
are 115,000 and 120,800 shares, respectively. The weighted average number of shares of
the above treasury stock deducted during the fiscal year ended March 31, 2019 and 2018
are 116,450 and 122,975 shares, respectively.
The bases for “Amount Per Share” calculation are as follows:
1) Basic profit attributable to owners of parent per share:
Thousands of shares
2019
2018
Weighted average number of shares of common stockduring the fiscal year

70,485

Thousands of
U.S. dollars
2019

Millions of yen
Profit attributable to owners ofparentProfit not attributable to owners ofparentProfit attributable to owners ofparent related to common stock

70,47920192018¥ 29,108¥ 28,547$ 264,618---¥ 29,108¥ 28,547$ 264,618

2) Net assets per share
Thousands of shares
2019
2018
Number of shares of common stock at the end of the
fiscal year

70,486

Millions of yen
Total net assets

2019¥ 279,911
36

2018¥ 272,071

70,481Thousands of
U.S. dollars
2019$ 2,544,645

Amounts deducted from total net
assets:Non-controlling interests
Net assets attributable to sharesof common stock18.

¥ (32,252)¥ (35,552)$ (293,200)¥ 247,659¥ 236,518$ 2,251,445

Financial Instruments and Related Disclosures
1. Conditions of Financial instruments
1) Policy for financial instruments
The fund management policy of the Group (the Company and its consolidated subsidiaries)
has been set up to put its operating funds in deposits or investments that are assured of no
impairment, and the necessary funding is obtained through borrowings from banks andother financial institutions and from bond issuances. Derivative transactions are notentered into for speculative purposes.
2) Details of financial instruments and associated risks and risk management system
Trade notes and accounts receivable arising from operation are exposed to credit risk ofcustomers. The Group carries out the practice of keeping track of due dates and outstandingbalances of each customer under the credit management rules, as well as monitoring major
customers’ credit status on a regular basis in order to minimize credit risk.
Marketable securities and investment securities are mainly equity securities and are
exposed to the risk of changes in market value. These securities are primarily the sharesof companies with which the Group has business relationship, and the fair value of thesesecurities are evaluated on a regular basis.
Trade notes and accounts payable arising from operations normally have payment terms ofless than one year.
Short-term and long-term debt are mainly utilized for working capital and capital
investments. The interest rate risk of a certain portion of those loans payable is hedgedusing interest rate swaps as hedging instruments.
Although trade payable, short-term debt, and long-term debt are exposed to liquidity risk,these payables are managed by such means as cash flow projections prepared on a timely
manner.
As it relates to derivative transactions, foreign exchange forward contracts are used forhedging foreign currency risk associated with receivables and payables arising fromoperations that are denominated in foreign currency; interest rate swaps are used forhedging interest rate risk associated with loans payable; and metal forward contracts areused for hedging the price risk related to raw materials and work in process. Execution andmanagement of derivative transactions are subject to related internal rules. In relation toaccounting for hedge transactions, hedging instruments, and hedged items, the Company’s
hedging policy and effectiveness of hedge transactions are set out in the Company’s internal37

rules.
3) Supplementary information on the fair value of financial instruments
The fair value of financial instruments is based upon the market prices or reasonableestimates of fair value of these instruments if these fair values are not available. The
estimated fair values would not be fixed due to variety of factors and assumptions. In
addition, the contractual amounts of the derivative transactions set out in “2. Fair value offinancial instruments” below are not an indicator of the market risk associated with
derivative transactions.
2.

Fair value of financial instruments

The carrying amounts on the consolidated balance sheet, the fair value amounts, anddifferences as of March 31, 2019 and 2018 are below. Note that financial instruments
whereby it is extremely difficult to measure the fair value are not included in the following
table. For this information, please see “Financial instruments whereby the fair value isextremely difficult to measure”)(As of March 31, 2019)(1) Cash and bank deposits(2) Trade receivable(3) Marketable securities andinvestments securities
a. Held-to-maturity debt securities
b. Available-for-sale securitiesc. Unconsolidated subsidiaries
and affiliated companies
Total of assets(1) Trade payable(2) Short-term debt
(3) Bonds (including current portion)(4) Long-term debt
Total of liabilities

Millions of yen
Carrying
Fair value
amount (*1)(*1)
¥ 44,628¥ 44,628
219,347
219,347

Derivative transactions (*2)
(1) Derivative transactions for which
hedge accounting does not apply(2) Derivative transactions for which
hedge accounting apply
Total of derivative transactions

38

Difference
¥-

2,469
45,4832,471
45,483

1-

59,878371,809(131,422)(106,710)(20,000)(119,298)(377,432)

38,379350,311(131,422)(106,710)(20,130)(119,994)(378,258)(21,499)(21,497)
(130)
(695)
(826)

(146)

(146)

697

697

¥ 551

¥ 551

-

¥ -

(1) Cash and bank deposits(2) Trade receivable(3) Marketable securities andinvestments securities
a. Held-to-maturity debt securities
b. Available-for-sale securitiesc. Unconsolidated subsidiaries andaffiliated companies
Total of assets(1) Trade payable(2) Short-term debt
(3) Bonds (including current
portion)portion)(4) Long-term debt

Thousands of U.S. dollars
Carrying
Fair value
Difference
amount (*1)(*1)
$ 405,709$ 405,709$1,994,064
1,994,064-

Total of liabilities

22,445
413,482

22,464413,4829-544,345

348,900(195,445)

3,380,082(1,194,745)( 970,091)(181,818)

3,184,645(1,194,745)(970,091)(183,000)(195,427)(1,182)(1,084,527)(1,090,855)(6,318)(3,431,200)(3,438,709)(7,509)(1,327)(1,327)

-

6,336

6,336

-

$ 5,009$ 5,009$ -Derivative transactions (*2)
(1) Derivative transactions for which
hedge accounting does not apply(2) Derivative transactions for which
hedge accounting apply
Total of derivative transactions(*1); Liabilities are included in parentheses.
(*2); Assets and liabilities arising from derivative transactions are presented on a net
basis and net liabilities are included in parentheses.
(As of March 31, 2018)(4) Cash and bank deposits(5) Trade receivable(6) Marketable securities andinvestments securities
b. Held-to-maturity debt securities
b. Available-for-sale securities
d. Unconsolidated subsidiaries
and affiliated companies
Total of assets(4) Trade payable(5) Short-term debt
(6) Bonds (including current portion)(4) Long-term debt

Carrying
amount (*1)
¥ 50,635
224,335

Millions of yen
Fair value(*1)¥ 50,635
224,335

99
57,715102
57,7152-

60,695
393,480(124,387)(106,279)(30,000)(122,227)

46,396379,184(14,298)(14,295)(124,387)(106,279)(30,018)(122,659)

(18)
(432)

39

Difference¥-Total of liabilities
Derivative transactions (*2)
(3) Derivative transactions for which
hedge accounting does not apply(4) Derivative transactions for which
hedge accounting apply
Total of derivative transactions(382,893)(383,345)

(451)

61

61

(459)

(459)

-

¥ (398)¥ (398)¥ --(*1); Liabilities are included in parentheses.
(*2); Assets and liabilities arising from derivative transactions are presented on a net
basis and net liabilities are included in parentheses.
I. Fair value of financial instruments
Assets(1) Cash and deposits
The carrying amount approximates fair value due to the short maturity of these
instruments.
(2) Trade receivable
The carrying amount approximates fair value due to the short maturity of these
instruments. A part of trade receivable is treated as receivable denominated inJapanese yen due to applying the special treatment of foreign currency exchange
contracts and the carrying amount approximates fair value.
(3) Marketable securities and investment securities
The fair value of equity securities is based on quoted market price, if available. The
fair value of debt securities is based on quoted market price or provided price byfinancial institutions. Marketable securities and investment securities by holding
purpose are set out in “Note 5. Debt and Equity Securities”.
Liabilities(1) Trade payable
The carrying amount approximates fair value because of the short maturity of these
instruments. A part of trade payable is treated as payable denominated inJapanese yen due to applying the special treatment of foreign currency exchange
contracts and the carrying amount approximates fair value.
(2) Short-term debt
The carrying amount approximates fair value because of the short maturity of these
instruments.
(3) Bonds
Fair value of bonds is based on quoted market price, if available. If not, the fairvalue is based on present value by discounting total cash flows of principal andinterest to be paid at the rate considering remaining periods of those bonds and therelated credit risk.
(4) Long-term debt
Fair value of long-term debts is based on the price provided by financial institutions
40

or the present value of future cash flows discounted using the current interest rate
for similar debt of a comparable maturity. Interest rate swaps subject to special
treatment are used for long-term floating rate debt. Embedded interest rate swaps
are discounted using current interest rate, which is reasonably estimated using
similar debt of a comparable maturity.
Derivative Transactions
Notional amount, fair value, unrealized gain or loss, and others are described in
Note 19. “Additional Information on Derivatives”.
II. Financial instruments whereby the fair value is extremely difficult to measure
Unlisted investment securities of unconsolidated subsidiaries and affiliatedcompanies amounted to ¥13,727 million ($124,791 thousand) and ¥13,761 million asof March 31, 2019 and 2018 are not included in (3) Marketable securities andinvestments securities a. Held-to-maturity debt securities and c. Unconsolidated
subsidiaries and affiliated companies above, because market value is not available
and their future cash flow are difficult to estimate, accordingly it is not practicable toestimate the fair value.
III. The redemption schedule for money claim and held-to-maturity debt securities withmaturity date subsequent to the consolidated balance sheets date:(As of March 31, 2019)
Within 1
year
Bank deposits
Trade receivable
Marketable securities andinvestments securities
Held-to-maturity debt securities:
1) Government bonds,
municipal bonds and other2) Other debt securities
Total

Bank deposits
Trade receivable
Marketable securities andinvestments securities
Held-to-maturity debt securities:
1) Government bonds,
municipal bonds and other¥ 43,305
219,347

2,370¥ 265,023

Millions of yen
Over 1
Over 5 year
year to 5
to 10 years
years
¥ ¥ -

99
¥ 99

¥-

Thousands of U.S. dollars
Over 1
Within 1
Over 5 year
year to 5
year
to 10 years
years$ 393,682$ $ 1,994,064-

21,54541-

Over 10
years
¥ -

¥-

Over 10years$ -2) Other debt securities
Total$ 2,409,300

900
$ 900

$-

$-

(As of March 31, 2018)
Within 1
year
Bank deposits
Trade receivable
Marketable securities andinvestments securities
Held-to-maturity debt securities:
Other debt securities
Total¥ 49,810
224,335¥ 274,145

Millions of yen
Over 1
Over 5 year
year to 5
to 10 years
years
¥ ¥ -

99
¥ 99

¥-

Over 10
years
¥ -

¥-

IV. The redemption schedule for long-term debt and other interest bearing debt withmaturity date subsequent to the consolidated balance sheets date are described in “Note
8. Short-term Debt, Long-term Debt and Bonds”.

19.

Additional Information on Derivatives

1. As of March 31, 20191) Derivative transactions for which hedge accounting does not applya) Foreign currency related transactions
Millions of yen
2019
Fair
Notional Portion
Unrealized
over 1value
Amountgain(loss)
year(*)
Non-market transaction
Foreign currency:
Sell
U.S.$ ¥ 2,185- ¥ (16)¥ (16)
Yen
1,019
38
38
QatariRiyal
Bahraini
Dinar

Thousands of U.S. dollars
2019
Portion
Fair
Notional
Unrealized
over 1value
Amountgain(loss)
year
(*)

$ 19,864
9,264-$ (145)345$ (145)
345

1,213

-

(51)

(51)

11,027

-

(464)

(464)

4,991

622

(131)

(131)

45,373

5,655(1,191)(1,191)

2,911
Rupiah
Other
73
Buy
U.S.$
3,465
Yen
1,554
Other
666
Total ¥18,081

-

(56)
(0)

(56)
(0)

26,464
664

-

(509)
(0)

(509)
(0)

¥ 622

16
5
18
¥ (177)16
31,5005
14,12718
6,055¥ (177) $ 164,373

-

145
45
164
$(1,609)

145
45
164
$ (1,609)

Indonesian42$ 5,655

(*) Fair value is determined by prices obtained from foreign exchange market.
b)Commodity related transactions

Millions of yen
2019Portion
Fair
Notional
over 1value
Amountyear(*)
Market transaction

Thousands of U.S. dollars
2019
Portion
Fair
Notional
Unrealized
over 1value
Amountgain(loss)
year
(*)

Unrealizedgain(loss)

Forward contracts:
Sell ¥ 9,322
Buy
5,260
Total ¥ 14,583

¥¥-

¥(98)
127
¥ 28

¥(98)
127
¥ 28

$ 84,745
47,818$ 132,573$$-$ (891)
1,155
$ 255

$ (891)
1,155
$ 255

(*) Fair value is determined by prices obtained from commodity exchange market.
2) Derivative transactions for which hedge accounting applya) Foreign currency related transactions
Millions of yen
2019
Hedgeditem

Notional
AmountNormal accounting method
Foreign currency:
Sell
Trade
U.S.$
¥6,739Euro Receivable
365(ForecastOther transactions)
150
Buy
U.S.$
11,941
Trade
Euro payable
75
Other

(Forecasttransactions)

3,597

Fair
value
(*)

Calculation
method offair value

Thousands of U.S. dollars
2019
Fair
PortionNotional
over 1value
Amount
year
(*)

¥ 268
77
-

¥ (18)
10(1)

Forwardrate offoreigncurrency$ 61,264
3,318
1,364

$ 2,436700-$ (164)
91
(9)

19
-

(12)
0

108,555
682

173
-

(109)
0

-

(26)

32,700

-

(236)

-

-

Portionover 1year

Forwardrate offoreigncurrency

Assignment accounting (special treatment for foreign exchange forward contracts)
Foreign currency:
Sell
U.S.$
15,015
136,500
Trade
Other receivable
383
3,482
Buy
U.S.$
489
4,445
Trade
payableOther
Currency swap
Long-term
debt

2,000

2,000

-

18,182

18,182-

Total¥40,757¥2,365¥ (47)$ 370,518$ 21,500$ (427)43

(*) The fair value of foreign currency related transactions subject to assignment
accounting (special treatment for foreign exchange forward contract) is
accounted for together with the underlying trade receivable or trade payable or
long-term debt subject to hedging.
b)

Interest-rate related transactions
Millions of yen
2019
Hedgeditem

Notional
AmountThousands of U.S. dollars
2019

Portionover 1
year

Fair
value
(*)

Notional
AmountPortion over
1 year

Fair
value
(*)

Special treatment interest rate swap:
Receiving fixed
rates and paying
Longfloating rates
term debt
Receiving floating
rates and paying
Longfixed rates
term debt

Total

¥ -

¥ -

-

$ -

$ -

-

46,100¥ 46,100

26,100¥ 26,100-

419,091$ 419,091

237,273$ 237,273-(*) The fair value of interest rate swaps subject to special treatment embedded
in long-term debt subject to hedging included in the fair value of thecorresponding long-term debt.
c)Commodity related transactions

Millions of yen
2019PortionHedged Notional
Fair
over 1
item
Amountvalue
year
Normal accounting method:
Forward contracts for metal materials:
Raw¥ 2,466¥¥ (53)
Sell materials
and work
17,479837
799
in
Buy process
¥ 837
¥ 745
Total ¥ 19,946

Calculation
method offair value

Forwardrate ofmetalmaterial

Thousands of U.S. dollars
2019
PortionNotional
Fairover 1
Amountvalue
year$ 22,418$-$ (482)

158,900

7,609

7,264

$ 181,327$ 7,609$ 6,773

2. As of March 31, 2018
1) Derivative transactions for which hedge accounting does not applya) Foreign currency related transactions
Millions of yen
2018
Portion
Fair
Notional
over 1value
Amountyear(*)
Non-market transaction
44

Unrealizedgain(loss)

Foreign currency:
Sell
U.S.$
¥ 959
Yen
1,024
Qatari1,243
Riyal
Bahraini
Dinar

-

¥ (9)
31
33

¥ (9)
31
33

550

-

20

20

Indonesian

2,783

-

(7)

(7)

Buy
U.S.$
2,575
Yen
1,186
Other
50
Total ¥ 10,375

186
¥ 186

(33)
(3)
4
¥ 36

(33)
(3)
4
¥ 36

Rupiah(*) Fair value is determined by prices obtained fromforeign exchange market.
b)Commodity related transactions

Notional
AmountMarket transaction
Forward contracts:
Sell¥ 8,790
Buy
8,491
Total ¥ 17,281

Millions of yen
2018
PortionFair
over 1
value
year
(*)

¥¥-

Unrealizedgain(loss)

¥ 157
(132)
¥ 25

¥ 157
(132)
¥ 25

(*)Fair value is determined by prices obtained from
commodity exchange market.
2)

Derivative transactions for which hedge accounting applya) Foreign currency related transactions
Millions of yen
2018
Hedged
item

Fair
value
(*)

Calculation
method offair value

¥ 79
-

¥ 313
2
3

Forwardrate offoreigncurrency

-

(447)
21

ForwardPortionover 1year

Notional
AmountNormal accounting method
Foreign currency:
Sell
Trade
U.S.$
¥8,535receivableEuro
316(ForecastOther transactions)
2,391
Buy
U.S.$
11,896
Trade
Euro payable318
45

Other(Forecasttransactions)

2,127

(157)

rate offoreigncurrency

Assignment accounting (special treatment for foreign exchange
forward contracts)
Foreign currency:
Sell
U.S.$
4,969
Trade
receivable
Other
1,432
Buy
U.S.$
837
Trade
payableOther
37
Currency swap
Long-term
debt

2,000

Total

¥ 34,862

2,000

-

-

¥ 2,079 ¥ (263)--(*) The fair value of foreign currency related transactions subject toassignment accounting (special treatment for foreign exchange forward
contract) is accounted for together with the underlying trade receivable ortrade payable or long-term debt subject to hedging.
b)

Interest-rate related transactions
Millions of yen
2018
PortionHedgedNotional
over 1
item
Amountyear
Special treatment interest rate swap:
Receiving fixed rates
Longand paying
term
floating rates
debt
¥ 220
¥ Receiving floating
Longrates and paying
term
fixed rates
debt
59,98846,988
Total ¥ 60,209 ¥ 46,988

Fairvalue (*)-(*) The fair value of interest rate swaps subject to special treatment
embedded in long-term debt subject to hedging included in the fair value ofthe corresponding long-term debt.
c)Commodity related transactions
Millions of yen
2018
Hedged item

Notional
AmountPortionover 1 year

Normal accounting method:
Forward contracts for metal materials:
Sell Raw materials¥ 2,768
and work in
Buy
14,678

¥

46

Fair
value

-

¥(20)

375

(175)

Calculation
method of fairvalue

Forwardrate of metal

process
Total

20.

material¥ 375¥ 17,446¥ (195)

Segment Information

1. Outline of reportable segments
The reportable segments of the Company are components for which the financial
information can be obtained separately from its other components, and the Board of
Directors reviews such reportable segments on a regular basis in order to decide
allocations of managerial resources and evaluate business performance.
The Group establishes divisions by type of product and service, and each division draws
up their comprehensive strategy of the products sold and services performed indomestic and overseas market.
Products and services of main business on each segment are as follows;(1) Infrastructure
Optical fiber, optical fiber cable, optical components, semiconductor
optical devices, material communication cable, fusion splicer, industrial
lasers, network equipment, CATV system, radio products, powertransmission cable, power transmission cable accessories andinsulations, insulated wires, electrical insulation tape, electronicmaterial products, etc.
(2) Electronics & Automotive Systems
Automotive components (wire harness, steering roll connector, battery
state sensor, perimeter monitoring radar, etc.), automaticbatteries/batteries for industrial use, copper/aluminum wires, magnet
wires, copper and copper alloy products, functional surface products(plating), processed products for electronic parts (leading frame, etc.),superconducting
products,
specialmetalmaterials(shapememory/super-elastic alloys), etc.
(3) Functional Products
Cable conduits, water-feeding pipe materials, foaming products, UV
tapes for semiconductor manufacturing, electronic components materials,
heat-dissipation products, hard disc drive (HDD) aluminum substrates,
electrodeposited copper foils, etc.
(4) Service and Development, etc.
Logistics, supporting service for each business of the Group as businessin trust etc., real-estate leasing, hydraulic power generation, driving of
R&D for new products, etc.
SPC No.5 formed by Aspirant Group Inc. made a Take Over Bid ( the “TOB”) for sharesof FCM CO., Ltd. The Company applied all ordinary shares hold by the Company tosuch TOB and this TOB succeeded on November 30, 2018. As a result, FCM CO., Ltd
was excluded from the scope of its consolidated subsidiaries.
47

The operation for industrial lasers, which was previously classified as “Service andDevelopment, etc.” segment, turned out to have no prospect to commercialization. As aresult, such an operation was reviewed, and it was reclassified to be part of theInfrastructure” segment.
The allocation method of head office’s costs of the Company has been changed from thisfiscal year in order to reflect results of each reportable segment more appropriately.
The last year’s segment information was retroactively revised based on the current
classification.

48

2. Segment information on sales and income (loss), identifiable assets and other items by business for the years ended March 31, 2019and 2018 is summarized as follows:（For the year ended March 31, 2019）

Millions of yen

Infrastructure

Net sales
Outside customers
Inter-segment sales
Total
Segment income(loss)
AssetsOthersDepreciation
Amortization of goodwill
Investments in affiliates
accounted for by the equity
methodTangible/intangible fixed
assets increased.

Electronics &Automotive
Systems

Total

\
\

140,748 \8,551
149,300
13,539 \102,879 \

31,916 \15,64947,56555 \138,621 \991,590 \
55,921
1,047,511
40,731 \845,555 \- \(55,921)(55,921)111 \(27,534) \991,590－
991,590
40,842
818,021\\

7,632 \
114 \

11,797 \9 \4,416 \
119 \

1,218 \
345 \

25,064 \588 \1,207 \
- \26,271588\

7,082 \

7,091 \

6,983 \

48,895 \70,052 \- \70,052\

23,986 \16,133 \5,247 \

1,692 \

47,060 \2,976 \

50,036

Millions of yen.

Electronics &Automotive
Systems

Functional
products

Service andDevelopment,
etc.

Sub-total

Adjustments*

Total

\
\

286,029 \
7,366
293,396
12,375 \251,329 \502,521 \
31,269533,790
18,360 \332,930 \

144,198 \
8,867
153,065
14,032 \
114,164 \

34,584 \16,41651,001(22) \
134,678 \967,333 \63,9201,031,254
44,746 \833,104 \- \(63,920)(63,920)58 \(24,471) \967,333－
967,333
44,804
808,632\\

6,839 \
129 \

11,722 \6 \4,289 \
117 \

1,150 \
345 \

24,001 \599 \1,105 \
- \25,106599\

6,673 \

7,214 \

7,243 \

49,441 \

70,573 \- \70,573\

17,868 \12,070 \3,645 \

2,042 \

35,627 \

2,916 \

38,543\（For the year ended March 31, 2019）

Infrastructure

Net sales
Outside customers
Inter-segment sales
Total
Segment income(loss)
AssetsAdjustments*

536,675 \
25,995562,671
19,706 \
340,767 \Infrastructure

OthersDepreciation
Amortization of goodwill
Investments in affiliates
accounted for by the equity
methodTangible/intangible fixed
assets increased

Sub-total

282,250 \5,723
287,9737,430 \
263,288 \\（For the year ended March 31, 2018）

Net sales
Outside customers
Inter-segment sales
Total
Segment income(loss)
AssetsService andDevelopment,etc.

Functional
products.

Thousands of U.S. dollars (Note 3)
Electronics &Automotive
Systems

Functional
products

Sub-total

Adjustments*

Total

$
$

2,565,909 $
52,0272,617,936
67,545 $2,393,527 $OthersDepreciation
Amortization of goodwill$$

69,382 $
1,036 $

107,245 $82 $40,145 $1,082 $

11,073 $3,136 $

227,855 $5,345 $

10,973 $- $238,827
5,345

Investments in affiliates
accounted for by the equity
method$64,382 $64,464 $63,482 $444,500 $636,836 $- $636,836

Tangible/intangible fixed
assets increased$

218,055 $146,664 $

47,700 $15,382 $427,818 $

27,055 $454,873$

4,878,864 $ 1,279,527 $
236,318
77,736
5,115,191
1,357,273
179,145 $
123,082 $3,097,882 $
935,264 $Service andDevelopment,
etc.

290,145 $142,264
432,409500 $
1,260,191 $9,014,455 $
508,373
9,522,827
370,282 $7,686,864 $- $(508,373)(508,373)
1,009 $
(250,309) $9,014,455
9,014,455
371,291
7,436,555＊ Inter-segment transactions are eliminated from the consolidated financial statements. Corporate
assets are included in the consolidated financial statements. Adjustments include increase of
tangible/intangible fixed assets and depreciation related to the corporate assets.

49

<Related information>
Information by regions(For the year ended March 31, 2019)

Net sales\

Property, plant and equipment,
net of accumulated depreciation

\

China

521,281 \94,006 \

Japan

Asia

131,647 \

56,394 \$4,738,918 $Japan
Property, plant and equipment,
net of accumulated depreciation$

213,260 \Millions of yen
North
middleamerica

854,600 $\Property, plant and equipment,
net of accumulated depreciation\

9,283 \

1,938,727 $Thousands of U.S. dollars (Note 3)
North
Asia
middleamerica

1,196,791 $

512,673 $

Japan

China

510,663 \

96,911 \291,227 $

Japan

Asia

128,724 \

55,076 \991,590229,360

Other

Total

Other

Total

84,391 $ 2,085,091

84,746 \

Other

Total

81,952 \967,333

Total

Other

23,835 \90,364 \821,491 $ 9,014,455

Millions of yen
North
middleamerica

193,059 \Total

660,700 $Other asianareas

Millions of yen
North
middleamerica

Other

Total

Other

32,035 \(For the year ended March 31, 2018)

Net sales

72,677 \Thousands of U.S. dollars (Note 3)
North
Other asian
middleChina
areasamericaJapan
Net sales

Millions of yen
North
middleamerica

Other asian
areas

Japan

9,092 \

216,728<Information of impairment loss by reportable segments>(For the year ended March 31, 2019)

Millions of yen
Infrastructure

Electronics &Automotive
Systems

Impairment loss\

2,465 \

161 \Impairment$

22,409 $1,464 $

loss

Sub-total

Adjustment

Total

2,627 \-\

2,627

Thousands of U.S. dollars (Note 3)－ $－ $23,882 $- $23,882－ \(For the year ended March 31, 2018)－ \Millions of yen
Infrastructure

Impairment loss

Service andDevelopment,etc.

Functional
products\

2,774 \

Electronics &Automotive
Systems

Service andDevelopment,etc.

Functional
products

342 \

5 \

－ \

Sub-total

3,122 \

Adjustment

-\

Total

3,122

<Information of goodwill by reportable segments>(For the year ended March 31, 2019)

Millions of yen
Infrastructure

Electronics &Automotive
Systems

Amortization of goodwill
Goodwill as of March 31

\
\

114 \
133 \

9 \
830 \

Amortization of goodwill
Goodwill as of March 31$$

1,036 $
1,209 $

82 $7,545 $

119 \
261 \

345 \
1,526 \

Sub-total

Adjustment

Total

588 \
2,751 \

－ \
－ \

588
2,751

Thousands of U.S. dollars (Note 3)
1,082 $
3,136 $
5,345 $
2,373 $
13,873 $25,009 $

- $
- $

5,345
25,009(For the year ended March 31, 2018)

Millions of yen
Infrastructure

Amortization of goodwill
Goodwill as of March 31

Service andDevelopment,etc.

Functional
products

\
\

129 \
264 \

Electronics &Automotive
Systems

Functional
products

6 \
14 \

50

117 \
392 \

Service andDevelopment,
etc.

345 \
1,871 \

Sub-total

599 \2,542 \

Adjustment

- \
- \

Total

599
2,542

22. Related Party Transactions
1. 1) Transactions of the Company with related companies and others（For the year ended March 31, 2019）a) Officers and major shareholders of the Company (only in the case of individuals), etc.
Directors
Type of Related Party
Tatsuo Teratani
Name
Address
Capital
Director
Type of businessDirect 0.0％
Voting right share owing (share owned)
Conclusion of engineering guidanceBusiness relationshipcontact
Payment of engineering guidance fee
Description of transactions￥6 million ($54 thousand)Amounts of transactionsb) Transactions of the non-consolidated subsidiaries and affiliates of the Company
Non-consolidated subsidiary
Type of Related Party
Tohoku Access Cable Company
Name
Hachinohe-city Aomori prefecture
Address￥20 million ($182 thousand)CapitalManufacturing
Type of businessDirect 100.0％
Voting right share owing (share owned)
Business relationship
Description of transactions

Supply of raw materials and sales of
it's products
Distribution of residual assets as aresult of liquidation￥349 million ($3,173 thousand)Amounts of transactions(Note)
Since Tohoku Access Cable Company completed liquidation procedures in
December, 2018, the above amounts were transaction amounts of the period when
it was a related party and the above voting right share owing (share owned) was ata point of time when it did not correspond to a related party.
In terms of distribution of residual assets due to liquidation, it considered financial
condition of the subsidiary and others.

（For the year ended March 31, 2018）
None.
2) Transactions of the subsidiaries with related companies and others（For the year ended March 31, 2019）
Directors
Type of Related Party
Tatsuo Teratani
Name
Address
Capital
Director
Type of business
Non-direct 0.0％
Voting right share owing (share owned)
Conclusion of engineering guidanceBusiness relationshipPayment of engineering guidance fee1) Description of transactions\9 million ($81 thousand)Amounts of transactions
Accrued expense
Accounts
Year-end balances（For the year ended March 31, 2018）
None.
2. Information on the parent company and significant affiliate companies(For the years ended March 31, 2019 and 2018)
1) Information on the parent company
None.
2) Financial statements of a significant affiliate company
A significant affiliate company is UACJ Corporation (hereafter “UACJ”).
Summarized aggregate financial statement data of UACJ is as follows.
Thousands of U.S.
dollars (Note 3)
2018
2019
¥322,461$3,166,282¥451,610$4,172,118¥273,148$2,484,264¥292,527$2,979,555¥208,396$1,874,582

Millions of yen
Total current assets
Total non-current assets
Total current liabilities
Total non-current liabilities
Net assets

2019¥348,291¥458,933¥273,269¥327,751¥206,204

Sales
Profit before income taxes
Profit attributable to owners of parent¥661,330¥10,041¥1,11651¥624,270¥19,692¥12,253$6,012,091$91,282$10,145