CONSOLIDATED STATEMENTS OF CHANGES IN NET ASSETSFURUKAWA ELECTRIC CO., LTD. ANDITS SUBSIDIARIES(For the years ended March 31, 2015)Millions of yenShareholders' equityBalance at March 31, 2014Cumulative effect of changein accounting principle(Note 2)Restated balance at April 1, 2014Cash dividends paidNet incomeNet effect of increase in consolidatedsubsidiariesNet effect of decrease in consolidatedsubsidiariesNet effect of merger of non-consolidatedsubsidiariesAcquisition of treasury stockDisposal of treasury stockNet change during the yearBalance at March 31, 2015Commonstock\69,395Capitalcapitalsurplus\21,46869,395-21,468-\Retainedearnings79,219\Commontreasurystock(277)TotalShareholders'equity\169,805(770)78,449(2,119)
7,356-(770)169,035(2,119)
7,356(277)--(299)-(299)--(150)-(150)

28\69,395(0)21,468\\

28
(2)0

(2)083,265\(279)173,849\Millions of yenAccumulated other comprehensive incomeBalance at March 31, 2014Cumulative effect of changein accounting principle(Note 2)Restated balance at April 1, 2014Cash dividends paidNet incomeNet effect of increase in consolidatedsubsidiariesNet effect of decrease in consolidatedsubsidiariesNet effect of merger of non-consolidatedsubsidiariesAcquisition of treasury stockDisposal of treasury stockNet change during the yearBalance at March 31, 2015UnrealizedDeferred gaingain onon derivativesavailable-forunder hedgesale securitiesaccounting\19,095 \(298)\Adjustmentfor retirementbenefits(Note 10)\(5,556)

Foreigncurrencytranslationadjustments\(5,809)--Totalaccumulated othercomprehensiveincome\7,432 \Minorityinterests22,497\Total netassets199,73419,095-

-

-

----

-

-22,497-

-

-

-

-

-

-

-(299)

-

-

-

-

-

-

-(150)2,49621,591

-

-

-

-

\1,50424,001\

28(2)010,965214,743Totalaccumulated othercomprehensiveincome$61,934 $Minorityinterests187,475$Total netassets1,664,451(298)814
516\(5,556)(3,737)(9,293)\(5,809)9,8884,079\7,4329,46116,893\(770)198,964(2,119)
7,356Thousands of U.S. dollars (Note 3)Shareholders' equityCommonstockBalance at March 31, 2014

$Cumulative effect of changein accounting principle(Note 2)Restated balance at April 1, 2014Cash dividends paidNet incomeNet effect of increase in consolidatedsubsidiariesNet effect of decrease in consolidatedsubsidiariesNet effect of merger of non-consolidatedsubsidiariesAcquisition of treasury stockDisposal of treasury stockNet change during the yearBalance at March 31, 2015578,292Capitalcapitalcapital$578,292-$CommonShareholders'treasurystockequityRetainedearnings178,900$178,900-660,158$(2,308)

TotalShareholders'equity$1,415,042(6,417)
653,741(17,658)
61,300-(6,417)
1,408,625(17,658)
61,300(2,308)--(2,491)-(2,491)--(1,250)-(1,250)

-

-

233

-578,292-(0)$178,900

$

233
(17)
0-

(17)
0-693,875$(2,325)$1,448,742Thousands of U.S. dollars (Note 3)Accumulated other comprehensive incomeBalance at March 31, 2014Cumulative effect of changein accounting principle(Note 2)Restated balance at April 1, 2014Cash dividends paidNet incomeNet effect of increase in consolidatedsubsidiariesNet effect of decrease in consolidatedsubsidiariesNet effect of merger of non-consolidatedsubsidiariesAcquisition of treasury stockDisposal of treasury stockNet change during the yearBalance at March 31, 2015UnrealizedDeferred gaingain onon derivativesavailable-forunder hedgesale securitiesaccounting$159,125 $(2,483)
159,125-$Adjustmentfor retirementbenefits(Note 10)$(46,300)

Foreigncurrencytranslationadjustments$(48,408)(2,483)--(48,408)----187,475-------(2,491)------(1,250)

20,800179,925--82,40033,992-12,533200,008$6,7834,300(46,300)$(31,142)(77,442)$See accompanying notes to consolidated financial statements.

661,934$78,841140,775$(6,417)
1,658,034(17,658)
61,300$233(17)091,3741,789,525CONSOLIDATED STATEMENTS OF CHANGES IN NET ASSETSFURUKAWA ELECTRIC CO., LTD. ANDITS SUBSIDIARIES(For the years ended March 31, 2014)Millions of yenShareholders' equityBalance at April 1, 2013Cumulative effect of changein accounting principleRestated balance at April 1, 2013Cash dividends paidNet incomeNet effect of increase in consolidatedsubsidiariesNet effect of decrease in affiliatesaccounted for by the equity methodNet effect of decrease in consolidatedsubsidiariesNet effect of merger of non-consolidatedsubsidiariesAcquisition of treasury stockDisposal of treasury stockNet change during the yearBalance at March 31, 2014Commonstock\69,395\\69,395-Capitalcapitalsurplus\21,468\21,468-\Retainedearnings76,125\\Commontreasurystock(275)-166,713(2,119)
5,609(353)-(353)(43)-\76,125(2,119)
5,609(275)

-

-

-

-

-

-

-

-42,936155,344-138,790\\TotalShareholders'equity\166,713\(43)(2)\(552)\(2)336,518Millions of yenAccumulated other comprehensive incomeBalance at April 1, 2013Cumulative effect of changein accounting principleRestated balance at April 1, 2013Cash dividends paidNet incomeNet effect of increase in consolidatedsubsidiariesNet effect of decrease in affiliatesaccounted for by the equity methodNet effect of decrease in consolidatedsubsidiariesNet effect of merger of non-consolidatedsubsidiariesAcquisition of treasury stockDisposal of treasury stockNet change during the yearBalance at March 31, 2014UnrealizedDeferred gaingain onon derivativesavailable-forunder hedgesale securitiesaccounting\18,160\
419\\18,160-Adjustmentfor retirementbenefits(Note 10)\-Adjustmentsfor retirementbenefits of an overseassubsidiary\(4,206)

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

93537,255\\

419(717)
121\\(4,206)

4,206\\-

7Foreigncurrencytranslationadjustments\(15,346)\Total netassets222,844

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-(34,607)
79,601-(5,556)(5,556)\9,537(21,155)-Minorityinterests57,10457,104-\(15,346)-Totalaccumulated othercomprehensiveincome\(973) \\\(973)8,4056,459\\\222,844(2,119)
5,609(353)(43)\(2)(26,202)
422,5782. Segment information on sales and income (loss), identifiable assets and other items by business for the years ended March 31, 2015 and 2014 is summarized asfollows:（For the year ended March 31, 2015 ）Millions of yenTelecommuni-cationsNet salesOutside customersInter-segment salesTotalSegment income(loss)AssetsOthersDepreciationAmortization of goodwillInvestments in affiliatesaccounted for by the equitymethodTangible/intangible fixedassets increasedEnergy andindustrialproductsElectronics andautomotivesystemsServices,developmentand otherLightmetalsMetalsSub-totalAdjustments*Total.
\\\149,565 \5,650155,2155,653 \133,384 \251,386 \41,826293,2124,293 \158,981 \299,667 \8,540308,20712,923 \219,767 \130,255 \3,436133,691(4,944) \112,703 \‐ \‐‐‐ \\36,945 \16,57253,517(122) \139,740 \867,818 \76,024943,84217,803 \764,575 \- \(76,024)(76,024)
70 \(30,450) \867,818－867,81817,873734,125\\4,928 \88 \3,166 \124 \7,408 \70 \4,488 \‐ \‐ \‐ \1,360 \345 \21,350 \627 \1,159 \‐ \22,509
627\1,630 \12,666 \9,305 \5,925 \‐ \49,331 \78,857 \‐ \78,857\5,215 \2,992 \11,837 \8,227 \‐ \1,724 \29,995 \680 \30,675（For the year ended March 31, 2014 ）Millions of yenTelecommuni-cationsNet salesOutside customersInter-segment salesTotalSegment income(loss)AssetsOthersDepreciationAmortization of goodwillInvestments in affiliatesaccounted for by the equitymethodTangible/intangible fixedassets increasedEnergy andindustrialproductsElectronics andautomotivesystemsMetalsServices,developmentand otherLightmetalsSub-totalAdjustments*Total.
\\\148,325 \5,526153,8517,810 \132,333 \256,795 \42,149298,9441,663 \167,130 \282,866 \8,106290,97214,006 \198,619 \125,942 \4,762130,704(3,054) \102,877 \94,029 \2,55996,5884,445 \- \23,825 \20,28844,113403 \133,145 \931,782 \83,3901,015,17225,273 \734,104 \- \(83,390)(83,390)
184 \(19,259) \931,782－931,78225,457714,845\\4,624 \87 \3,363 \158 \6,668 \106 \5,597 \‐ \5,400 \101 \1,349 \346 \27,001 \798 \1,106 \‐ \28,107
798\1,165 \14,296 \7,265 \5,398 \‐ \44,504 \72,628 \‐ \72,628\5,988 \3,956 \13,299 \2,736 \9,213 \1,463 \36,655 \781 \37,436（For the year ended March 31, 2015 ）Thousands of U.S.dollarsTelecommuni-cationsNet salesOutside customersInter-segment salesTotalSegment income(loss)AssetsEnergy andindustrialproductsElectronics andautomotivesystemsMetalsServices,developmentand otherSub-total‐ $‐‐‐ $$307,875 $138,100445,975(1,017) $1,164,500 $7,231,817 $633,5337,865,350148,358 $6,371,458 $- $(633,533)(633,533)
584 $(253,750) $7,231,817－7,231,817148,9426,117,708LightmetalsAdjustments*Total.
$$$1,246,375 $ 2,094,884 $47,083348,5501,293,4582,443,43447,108 $35,776 $1,111,533 $ 1,324,841 $2,497,225 $ 1,085,458 $71,16728,6332,568,3921,114,091107,692 $(41,201) $1,831,392 $939,192 $OthersDepreciationAmortization of goodwill$$41,067 $733 $26,383 $1,033 $61,733 $583 $37,400 $‐ $‐ $‐ $11,333 $2,875 $177,916 $5,224 $9,659 $‐ $187,5755,224Investments in affiliatesaccounted for by the equitymethod$13,583 $105,550 $77,542 $49,375 $‐ $411,092 $657,142 $‐ $657,142$43,458 $24,933 $98,642 $68,558 $‐ $14,367 $249,958 $5,667 $255,625Tangible/intangible fixedassets increased＊ Inter-segment transactions are eliminated from the consolidated financial statements. Corporate assets are included in theconsolidated financial statements. Adjustments include increase of tangible/intangible fixed assets and depreciation related to thecorporate assets.
(Change for the year ended March 31, 2015)Changes in reportable segmentsA business unit, which had previously been included in “Telecommunication” segment was changed to “Service andother” segment as a result of revisions of controlling business units effective from the current fiscal year toaccelerate developments of more new business.
In order to disclose more appropriate position among reportable segments, the name of segment “Service andother” has been changed to “Service, development and other”.
Segment information for the previous fiscal year has been prepared based on the new reportable segments.
(Change for the year ended March 31, 2014)1) On depreciation method of property, plant and equipment, the Company and certain domestic consolidatedsubsidiaries mainly adopted the declining-balance method for property, plant and equipment other than buildingsand overseas consolidated subsidiaries mainly adopted the straight-line method so far. The Company and thecertain domestic consolidated subsidiaries, however, have changed the depreciation method to the straight-linemethod from this fiscal year.
The Group planned in the medium-term management plan to increase resources allocated to overseas operationbase for expanding business in the overseas market which can expect growth, its policy was made clear, to shift toinvestments for maintenance and updates corresponding to mature market environment in the domestic market.
After this, as a result of investigating the operation status of its assets, which are mainly domestic productionfacility owned by the Company and the certain domestic consolidated subsidiaries, long-term and stable operationstatus of those assets were expected afterwards. Therefore, it was judged that depreciation using by the straightline method provides reasonable cost allocation reflecting such an operation status of those assets.
As a result of this change, segment income (loss) of Telecommunications, Energy and industrial products,Electronics and automotive systems, Metals, Loght metals and Services and other increased by \516 million, \555million, 545 million, 72 million, 17 million and \312 million, respectively, compared with previous method hadbeen applied.

2) The financial statements of P.T. Tembaga Mulia Semanan,Tbk, whose statutory financial year end was December31, has been consolidated by using their financial statements as of the parent fiscal year end which are preparedsolely for consolidation purpose to further enhance appropriate disclosure of consolidated financial information.
Accordingly, consolidated financial statements have been prepared based on financial statements for the fifteenmonths fiscal period, from January 1, 2013 to March 31, 2014.
As a result of this change, net sales and segment income increased by \15,916 million and \176 million,respectively,compared with previous method had been applied.

50<Relative information>Information by regions(For the year ended March 31, 2015)Net salesProperty, plant and equipment,net of accumulated depreciationJapanMillions of yen
AsiaOther areasTotal\482,565 \245,005 \140,248 \867,818\118,911 \55,688 \24,618 \199,217JapanNet salesProperty, plant and equipment,net of accumulated depreciationThousands of U.S. dollars (Note 3)
AsiaTotalOther areas$ 4,021,375 $ 2,041,708 $$1,168,734 $7,231,817205,150 $1,660,141990,925 $464,066 $JapanMillions of yen
AsiaOther areasTotal\547,699 \258,990 \125,093 \931,782\116,543 \51,317 \23,209 \191,069(For the year ended March 31, 2014)Net salesProperty, plant and equipment,net of accumulated depreciation<Information of impairment loss by reportable segments>(For the year ended March 31, 2015)Millions of yenImpairment lossEnergy
andTelecommuni-cationsindustrialproducts\
93 \546 \Impairment loss

$775 $4,550 $Electronicsandautomotivesystems78 \650 $Services,development and otherLightmetalsMetals185 \- \Sub-totalAdjustmentsTotal445 \1,347 \-\1,347Thousands of U.S. dollars (Note 3)1,542 $- $3,708 $11,225 $-$11,225(For the year ended March 31, 2014)Millions of yenImpairment lossEnergy
andTelecommuni-cationsindustrialproducts\621 \815 \Electronicsandautomotivesystems24 \Services,development and otherLightmetalsMetals2,935 \2,410 \- \Sub-total6,805 \Adjustments-\Total6,805<Information of goodwill by reportable segments>(For the year ended March 31, 2015)Millions of yenAmortization of goodwillGoodwill as of March 31Energy
andTelecommuni-cationsindustrialproducts\88 \124 \\72 \794 \Amortization of goodwillGoodwill as of March 31$$733 $600 $1,033 $6,616 $Electronicsandautomotivesystems

69 \104 \575 $867 $Services,development and otherLightmetalsMetals- \- \- \- \Sub-totalAdjustmentsTotal346 \2,909 \627 \3,879 \-\-\6273,879Thousands of U.S. dollars (Note 3)- $- $2,883 $- $- $24,242 $5,224 $32,325 $-$-$5,22432,325(For the year ended March 31, 2014)Millions of yenAmortization of goodwillGoodwill as of March 31EnergyandTelecommuni-cationsindustrialproducts\
87 \158 \\177 \515 \ElectronicsandautomotivesystemsLightmetalsMetals106 \124 \51- \- \101 \- \Services,development and other346 \3,254 \Sub-total798 \4,070 \Adjustments-\-\Total
7984,070