Annual Report 2015
For the Year Ended 31st March 2015

PROFILE
Since its establishment in 1958, MARUDAI FOOD CO., LTD. has been dedicated tooffering delicious, high-quality meat products. In order to understand the latest
consumer trends and to meet the needs of modern lifestyles, we have continuously
strengthened our research, sales and production operations. Intending tobecome Japan’s leading food company, we successfully listed our stock on theFirst Section of both the Tokyo and Osaka Stock Exchanges in 1972.
Starting as a ham and sausage producer, Marudai Food has steadily expanded
its range of products to include heat-processed, vacuum-packed food, cheeseand fresh meats. Ham and sausage, however, remain an integral part of our product line
and continue to account for almost half of our sales.
While pursuing a leading position in the ham and sausage market, Marudai
Food was eager to explore new avenues by developing precooked and processed foods,
which went on sale in 1973. This long shelf-life food was developed to meet the specific needfor fast meal preparation. Containing absolutely no preservatives and requiring only
several minutes to prepare, Marudai precooked and processed foods have established a strong
foothold in the market. Building on this success, we will make even greater efforts to create
new products that satisfy the increasingly discriminating tastes of consumers.

CONTENTSFINANCIAL HIGHLIGHTS ............................................................................... 1
TO OUR SHAREHOLDERS .............................................................................. 2
PRODUCTS ......................................................................................................... 4
CONSOLIDATED BALANCE SHEETS ............................................................ 6
CONSOLIDATED STATEMENTS OF INCOME .............................................. 8CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME ............ 9
CONSOLIDATED STATEMENTS OF CHANGE IN NET ASSETS .............. 10
CONSOLIDATED STATEMENTS OF CASH FLOWS ................................... 11
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS ......................... 12
INDEPENDENT AUDITOR’S REPORT .......................................................... 32
DIRECTORS AND STATUTORY AUDITORS ................................................ 33
OUTLINE OF THE COMPANY ....................................................................... 34

MARUDAI FOOD CO., LTD.

FINANCIAL HIGHLIGHTS
For the Years Ended 31st March 2015 and 2014
(Consolidated basis)Thousands of
U.S. dollars, except
per share amounts

Millions of yen,
except per share amounts(Note)
2015

2014

2015

Net sales ...................................................................................................

¥222,317¥213,679$1,850,329

Net income ...............................................................................................

1,806

1,726

15,031

Net income (yen and dollars) .............................................................

13.89

13.29

0.12

Net income, diluted (yen and dollars) ................................................

–

–

–

Dividends (yen and dollars) ...............................................................

7.00

7.00

0.06

Total assets ...............................................................................................

¥123,909¥120,694$1,031,286

Per share:

Note: U.S. dollar amounts are translated from yen for convenience only at the rate of ¥120.15 to U.S.$1.00.

1MARUDAI FOOD CO., LTD.

TO OUR SHAREHOLDERS

With the issuance of our company’s 67th annual report,
we hope that our shareholders are enjoying health andprosperity. We would also like to take this opportunity to
express our deep appreciation for your continued
support.

The Marudai Food Group’s Processed Food Products
business continues to operate in a challenging
environment characterized by sharp increases in raw
material prices in line with the weakening of the yen andintensifying sales competition. The environment for theMeat Products business also remained challenging. While

During the fiscal year ended 31st March 2015, theJapanese economy was on a recovery path as corporate

prices of beef and pork remained firm, reflecting
decreased supply, purchase prices of imported raw

earnings improved, centering on export relatedcompanies and reflecting factors that include the positive
impact of the Abe administration’s economic policies.
With regard to personal consumption, however, concerns

materials further rose partly because of purchases by
emerging countries.

about the reduction in disposable income attributable tothe consumption tax increase persisted and there wasproducts that satisfy the highest standards of safety andreliability by adhering to the Marudai Food Group’s

little ground for optimism concerning consumption ofdaily necessities such as foods and household goods.

policies of putting the customer first, thoroughcompliance and uncompromising commitment to safety
and quality. In parallel, we implemented a diversification

2

Under such circumstances, we strove to offer foodstrategy and initiatives to reinforce Group management
and strengthen product development capabilities.
As a result, consolidated net sales for the fiscal year
ended 31st March 2015 increased by 4.0% year on year to222,317 million yen. And, although operating income
decreased by 4.6% to 2,731 million yen, net income
increased by 4.6% to 1,806 million yen.
Once again we would like to thank you, ourshareholders, for your support and trust that we can rely
on your continued confidence.
June 2015

Tokuo Kudara
President

3

MARUDAI FOOD CO., LTD.

PRODUCTS

The following table shows an analysis of the consolidated sales of MARUDAI FOOD CO., LTD. and its consolidated subsidiaries(together, the “Companies”) by product categories for the years ended 31st March 2015 and 2014:

Millions of yen(percent of total net sales)

Processed Food Products .........................................................................

Meat Products ..........................................................................................

Other ........................................................................................................

Total ....................................................................................................

2015

2014

¥156,952¥150,193(70.6%)(70.3%)

65,002

63,120(29.2%)(29.5%)

363

366(0.2%)(0.2%)¥222,317¥213,679

2015

Note: U.S. dollar amounts are translated from yen for convenience only at the rate of ¥120.15 to U.S.$1.00.

4

Thousands of
U.S. dollars (Note)$1,306,300

541,007

3,022$1,850,329

Processed Food Products
The Ham & Sausage Products operations made vigorous efforts to expand sales of mainstay products such as the “KunseiyaRipened Pork Sausage,” which marked the 20th anniversary of its launch through sales promotions, including the “Yugana
Hitotoki” gift campaign. We also vigorously marketed new products, including the “Usushio” series of products with low sodium
content but whose taste is uncompromised and the “Yo-Kai Watch Sausage,” which are sausages with popular anime characters
printed on them. For midsummer and year-end gift products, we focused our efforts mainly on expanding sales of the “Ouha”
series of gift packages, consisting of products that won the Monde Selection Grand Gold Quality Award in the food products
category for the third consecutive year in 2014. As a result, sales of the Ham & Sausage Products operations increased by 1.9%
year on year.
In the Precooked & Processed Foods operations, sales of the “Sundubu” series of Korean-style soup mixes were robust thanks
to the enriched line-up with the addition of “Seafood Kimchi Flavour.” We strove to vigorously expand sales through theintroduction of new products, including the “Soup BIZ” series of one-person-packaged soup served cold offering rich tasting
ingredients and medium-hot savoury “Keema Curry.” With regard to desserts and beverages, we conducted a sales promotion
campaign for the “SWEET CAFE” mainstay series of desserts to increase sales, and sales of the “TAPIOCA TIME” series ofbeverages with black tapioca were robust. As a result, sales of the Precooked & Processed Foods operations increased by 8.3%
year on year.
Overall, sales in the Processed Food Products segment amounted to 156,952 million yen, up 4.5% year on year. Operating
income, however, decreased by 27.5% to 1,886 million yen, owing to intense sales competition and sharp increases in raw
materials prices despite our efforts to reduce costs.
Meat Products
While beef prices remained high, we made vigorous efforts to expand sales of American branded beef. Amid soaring pork
prices owing to a decrease in supply because of porcine epidemic diarrhoea (PED) and a decrease in imports resulting from thelabour issue at ports on the U.S. West Coast, we emphasized sales of Japanese pork, and consequently, sales of pork were robust.
As a result, sales in the Meat Products segment increased by 3.0% year on year to 65,002 million yen and operating income
amounted to 666 million yen, a significant increase from the previous year.
Other
Sales of the Other business decreased by 1.0% year on year to 363 million yen, and operating income decreased by 10.8% to179 million yen.

5

MARUDAI FOOD CO., LTD.

CONSOLIDATED BALANCE SHEETS
31st March 2015 and 2014

Millions of yen
ASSETS
Current assets:
Cash and time deposits (Notes 3 and 16) ...........................................
Receivables:
Trade notes and accounts (Note 3) ...............................................
Other .............................................................................................
Allowance for doubtful accounts ..................................................
Inventories (Note 6) ............................................................................
Deferred tax assets (Note 10) .............................................................
Advances and other current assets .....................................................
Total current assets .......................................................................
Investments and other assets:
Investment securities (Notes 3 and 4)
Affiliates .......................................................................................
Other .............................................................................................
Deferred tax assets (Note 10) .............................................................
Other ...................................................................................................
Allowance for doubtful accounts .......................................................
Total investments and other assets ................................................
Property, plant and equipment, at cost:
Land (Note 8) .....................................................................................
Buildings and structures (Note 8) ......................................................
Machinery and equipment (Note 8) ...................................................
Lease assets ........................................................................................
Construction in progress ....................................................................
Less accumulated depreciation ..........................................................
Net property, plant and equipment ...............................................
Intangible assets .....................................................................................
Total assets .........................................................................................

2015

2014

¥ 13,923¥ 14,898$ 115,880

23,952334(56)
17,034
1,026
425
56,63823,146348(62)
13,662
1,124
450
53,566

199,351
2,780(466)
141,7738,539
3,537
471,394–
12,683
109
5,440
(308)
17,92440
10,984
79
5,291
(396)
15,998–105,560
907
45,276(2,563)
149,180

18,24548,08155,8596,097
63
128,345(80,032)
48,313
1,034¥123,909

18,74847,44953,9186,450
691
127,256(77,416)
49,8401,290¥120,694

151,852
400,175
464,91150,745524
1,068,207(666,101)
402,106
8,606$1,031,286

See accompanying Notes to Consolidated Financial Statements.

6

Thousands of
U.S. dollars (Note 1)
2015Thousands of
U.S. dollars (Note 1)
2015

LIABILITIES AND NET ASSETS

Millions of yen
2015
2014

Current liabilities:
Trade notes and accounts payable (Note 3) ���������������������������������������
Short-term borrowings (Notes 3, 7 and 8) �����������������������������������������
Long-term debt due within one year (Notes 3, 7 and 8) �������������������
Short-term lease obligations (Notes 3 and 7) ������������������������������������
Accrued expenses ������������������������������������������������������������������������������
Accrued income taxes �����������������������������������������������������������������������
Other current liabilities ���������������������������������������������������������������������
Total current liabilities �����������������������������������������������������������������

¥ 21,072
7,301
2,095
746
2,252
767
6,758
40,991¥ 19,547
7,276
2,990
778
2,217
1,045
6,169
40,022$ 175,381
60,766
17,437
6,209
18,743
6,384
56,245341,165

Long-term liabilities:
Long-term debt due after one year (Notes 3, 7 and 8) ����������������������
Long-term lease obligations (Notes 3 and 7) ������������������������������������
Deferred tax liabilities (Note 10) ������������������������������������������������������
Liabilities for retirement benefits (Note 9) ����������������������������������������
Other long-term liabilities �����������������������������������������������������������������
Total long-term liabilities ������������������������������������������������������������

5,224
2,089
1,610
1,728
559
11,210

4,972
2,604
1,035
3,018
466
12,09543,47917,387
13,40014,382
4,652
93,300

NET ASSETS (Note 12)
Shareholders’ equity:
Common stock
Authorised — 200,000,000 shares
Issued — 132,527,909 shares in 2015 (132,527,909 shares in 2014) �����
Capital surplus �����������������������������������������������������������������������������������
Retained earnings ������������������������������������������������������������������������������
Treasury stock at cost ������������������������������������������������������������������������
Total shareholders’ equity �����������������������������������������������������������

6,716
22,07339,616(10)
68,395

6,716
21,686
38,719(705)
66,41655,897
183,712
329,721(83)
569,247

Accumulated other comprehensive income:Unrealised gains on securities �����������������������������������������������������������
Deferred gains on hedges ������������������������������������������������������������������
Foreign currency translation adjustments �����������������������������������������
Adjustments for retirement benefits ��������������������������������������������������
Total accumulated other comprehensive income �������������������������

4,776
8
(153)
(1,720)
2,911

3,418
1
(106)
(2,737)576

39,75066(1,273)(14,315)
24,228

Minority interests ����������������������������������������������������������������������������������
Total net assets ����������������������������������������������������������������������������������
Total liabilities and net assets ������������������������������������������������������������

402
71,708¥123,909

1,585
68,577¥120,694

3,346
596,821$1,031,286

Contingent liabilities (Note 11)

7

MARUDAI FOOD CO., LTD.

CONSOLIDATED STATEMENTS OF INCOME
Years Ended 31st March 2015 and 2014

Net sales �������������������������������������������������������������������������������������������������
Cost of sales �������������������������������������������������������������������������������������������

Millions of yen
2015
2014
¥222,317¥213,679
172,256
163,988

Thousands of
U.S. dollars (Note 1)
2015$1,850,329
1,433,675

Gross profit ����������������������������������������������������������������������������������������
Selling, general and administrative expenses (Note 13) ���������������������

50,06147,33049,691
46,829416,654
393,924

Operating income ������������������������������������������������������������������������������

2,731

2,862

22,730

308
(243)
36
345
–
(133)
332

308
(274)
461
(59)
(182)
(248)
172

2,563
(2,022)300
2,871–(1,107)
2,763

645

178

5,368

Income before income taxes and minority interests ���������������������������

3,376

3,040

28,098

Income taxes (Note 10):
Current �����������������������������������������������������������������������������������������������
Deferred ���������������������������������������������������������������������������������������������

1,252
55

1,137
128

10,420
458

1,307

1,265

10,878

2,069
(263)

1,775
(49)

17,220(2,189)Other income (expenses):
Interest and dividend income ������������������������������������������������������������
Interest expense ���������������������������������������������������������������������������������
Gain on sale of securities, net �����������������������������������������������������������
Gain (loss) on disposal of property, plant and equipment, net ����������
Loss on early retirement benefits ������������������������������������������������������
Loss on impairment of assets (Note 14) ��������������������������������������������
Other, net �������������������������������������������������������������������������������������������

Income before minority interests ����������������������������������������������������������
Minority interests ����������������������������������������������������������������������������������
Net income ���������������������������������������������������������������������������������������������

¥

1,806

¥

1,726

$

15,031

U.S. dollars (Note 1)

Yen
Net income per share (Note 2) ��������������������������������������������������������������

¥13.89¥13.29$0.12

Net income, diluted per share (Note 2) ������������������������������������������������

–

–

–

Dividends per share ������������������������������������������������������������������������������

¥ 7.00¥ 7.00$0.06

See accompanying Notes to Consolidated Financial Statements.

8

MARUDAI FOOD CO., LTD.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
Years Ended 31st March 2015 and 2014

Income before minority interests ����������������������������������������������������������
Other comprehensive income:Unrealised gains on securities �����������������������������������������������������������
Deferred gains on hedges ������������������������������������������������������������������
Foreign currency translation adjustments �����������������������������������������
Adjustments for retirement benefits ��������������������������������������������������
Share of other comprehensive income of associates accounted for using equity method ���Total other comprehensive income (Note 17) �����������������������������
Comprehensive income �������������������������������������������������������������������������
Comprehensive income attributable to:
Owners of the parent �������������������������������������������������������������������������
Minority interests ������������������������������������������������������������������������������

Millions of yen
2015
2014
¥2,069¥1,775

Thousands of
U.S. dollars (Note 1)
2015$17,220

1,357
8
(52)
1,022
5
2,340
¥4,409

478
0
5
–
13
496
¥2,271

11,294
67
(433)
8,506
42
19,476$36,696¥4,142¥ 267¥2,222¥ 49$34,474$ 2,222

See accompanying Notes to Consolidated Financial Statements.

9

MARUDAI FOOD CO., LTD.

CONSOLIDATED STATEMENTS OF CHANGES IN NET ASSETS
Years Ended 31st March 2015 and 2014

Thousands of
U.S. dollars (Note 1)
2015

Millions of yen
2015
2014
Common stock:
Balance at beginning and end of the year �����������������������������������������

¥ 6,716¥ 6,716$ 55,897

Capital surplus:
Balance at beginning of the year �������������������������������������������������������
Disposal of treasury stock �����������������������������������������������������������������
Balance at end of the year �����������������������������������������������������������������

¥ 21,686
387¥ 22,073¥ 21,686–¥ 21,686$ 180,491
3,221$ 183,712

Retained earnings:
Balance at beginning of the year �������������������������������������������������������Cash dividends paid ��������������������������������������������������������������������������
Net income ����������������������������������������������������������������������������������������
Balance at end of the year �����������������������������������������������������������������

¥ 38,719
(909)
1,806
¥ 39,616¥ 38,032(1,039)1,726¥ 38,719$ 322,256(7,566)15,031$ 329,721

¥

¥

(698)
(7)
–
(705)

$ (5,868)
(133)
5,918
$
(83)

¥ 3,418
1,358¥ 4,776¥ 2,940478¥ 3,418$ 28,448
11,302$ 39,750

¥

1
7
8

¥

0
1
1

$

(106)
(47)
(153)

¥

(124)
18
(106)

$

Treasury stock, at cost:
Balance at beginning of the year �������������������������������������������������������
Purchase of treasury stock �����������������������������������������������������������������
Disposal of treasury stock �����������������������������������������������������������������
Balance at end of the year �����������������������������������������������������������������
Unrealised gains on securities:
Balance at beginning of the year �������������������������������������������������������
Increase for the year ��������������������������������������������������������������������������
Balance at end of the year �����������������������������������������������������������������
Deferred gains on hedges:
Balance at beginning of the year �������������������������������������������������������
Increase for the year ��������������������������������������������������������������������������
Balance at end of the year �����������������������������������������������������������������
Foreign currency translation adjustments:
Balance at beginning of the year �������������������������������������������������������
Increase (decrease) for the year ���������������������������������������������������������
Balance at end of the year �����������������������������������������������������������������

¥

(705)
(16)
711
(10)

¥

¥
¥

¥

¥

¥

$

8
58
66

(882)
(391)
$ (1,273)

Adjustments for retirement benefit:
Balance at beginning of the year �������������������������������������������������������
Increase (decrease) for the year ���������������������������������������������������������
Balance at end of the year �����������������������������������������������������������������

¥ (2,737)
1,017¥ (1,720)–¥ (2,737)¥ (2,737)$ (22,780)
8,465$ (14,315)

Minority interests:
Balance at beginning of the year �������������������������������������������������������
Increase (decrease) for the year ���������������������������������������������������������
Balance at end of the year �����������������������������������������������������������������

¥ 1,585(1,183)¥ 402¥ 1,56025¥ 1,585$ 13,192(9,846)$ 3,346

See accompanying Notes to Consolidated Financial Statements.

10

MARUDAI FOOD CO., LTD.

CONSOLIDATED STATEMENTS OF CASH FLOWS
Years Ended 31st March 2015 and 2014

Millions of yen
2015
2014

Thousands of
U.S. dollars (Note 1)
2015

Cash flows from operating activities: ���������������������������������������������������
Income before income taxes and minority interests ��������������������������
Depreciation and amortisation ����������������������������������������������������������
Loss on impairment of assets ������������������������������������������������������������
Decrease in allowance for doubtful accounts ������������������������������������
Increase in severance and retirement benefits �����������������������������������
Decrease in liabilities for retirement benefits ������������������������������������
Interest and dividend income ������������������������������������������������������������
Interest expense ���������������������������������������������������������������������������������
Gain on sale of securities, net �����������������������������������������������������������
Write-down of investment in securities ���������������������������������������������
Loss (gain) on disposal of property, plant and equipment, net ���������
Decrease (increase) in receivables ����������������������������������������������������
Decrease (increase) in inventories �����������������������������������������������������
Increase (decrease) in trade notes and accounts payable ������������������
Increase in consumption tax payable ������������������������������������������������
Other, net �������������������������������������������������������������������������������������������
Subtotal ����������������������������������������������������������������������������������������
Interest and dividends received ���������������������������������������������������������
Interest paid ���������������������������������������������������������������������������������������
Income taxes paid ������������������������������������������������������������������������������
Net cash provided by operating activities ������������������������������������

¥ 3,376
5,435
133
(94)
–
(20)
(308)
243
(36)
4
(345)
(759)
(3,366)
1,629
609
460
6,961
297
(242)
(1,406)
5,610¥ 3,040
5,609
248
(11)
903
(668)
(308)
274
(461)
11
59
1,860
809
(471)
204
(117)
10,981
308
(275)
(338)
10,676$ 28,098
45,235
1,107
(782)
–
(166)
(2,563)
2,022
(300)
33
(2,871)(6,317)(28,015)
13,558
5,069
3,828
57,9362,472(2,014)(11,702)46,692

Cash flows from investing activities:
Purchase of short-term investments and investment securities ���������
Proceeds from sale of short-term investments and investment securities ��
Purchase of property, plant and equipment ���������������������������������������
Proceeds from sale of property, plant and equipment �����������������������
Other, net �������������������������������������������������������������������������������������������
Net cash used in investing activities ��������������������������������������������

(29)
56(4,361)636(155)(3,853)(30)
884(4,718)771
57(3,036)(241)466(36,296)
5,293(1,290)(32,068)

Cash flows from financing activities:
Net decrease in short-term borrowings ��������������������������������������������
Proceeds from long-term debt �����������������������������������������������������������
Repayment of long-term debt ������������������������������������������������������������
Repayment of lease obligations ��������������������������������������������������������Cash dividends paid ��������������������������������������������������������������������������
Proceeds from disposal of treasury stock �����������������������������������������
Repayments to minority shareholders ����������������������������������������������
Other, net
Net cash used in financing activities ��������������������������������������������

(36)
2,482
(3,125)
(775)
(910)
1,098
(1,440)(28)(2,734)

(634)
1,459
(2,516)(818)(1,039)––(25)(3,573)(300)
20,658(26,009)(6,450)(7,574)
9,139(11,985)(234)(22,755)

Effect of exchange rate changes on cash and cash equivalents ���������
Net increase (decrease) in cash and cash equivalents ������������������������Cash and cash equivalents at beginning of year ���������������������������������Cash and cash equivalents at end of year (Note 16) ���������������������������

2(975)
14,898¥13,923

4
4,071
10,827¥14,898

16(8,115)
123,995$115,880

See accompanying Notes to Consolidated Financial Statements.

11

MARUDAI FOOD CO., LTD.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
For years Ended 31st March 2015 and 2014

1. Basis of presenting consolidated financial statements
The accompanying consolidated financial statements of MARUDAI FOOD CO., LTD. (the “Company”) and its consolidated
subsidiaries (together, the “Companies”) have been prepared in accordance with the provisions set forth in the Japanese Financial
Instruments and Exchange Law and its related accounting regulations and in conformity with accounting principles generally
accepted in Japan (“Japanese GAAP”), which are different in certain respects as to application and disclosure requirements fromInternational Financial Reporting Standards.
The accompanying consolidated financial statements have been restructured and translated into English from the consolidated
financial statements of the Company prepared in accordance with Japanese GAAP and filed with the appropriate Local Finance
Bureau of the Ministry of Finance as required by the Japanese Financial Instruments and Exchange Act. Certain supplementary
information included in the statutory Japanese language consolidated financial statements, but not required for fair presentation,
is not presented in the accompanying consolidated financial statements.
The translation of the Japanese yen amounts into U.S. dollar amounts is included solely for the convenience of readers outside
Japan, using the prevailing exchange rate at 31st March 2015, which was ¥120.15 to U.S. $1.00. These translations should not be
construed as representations that the Japanese yen amounts have been, could have been or could in the future be converted into
U.S. dollars at this or any other rate of exchange.
2. Significant accounting policies
Consolidation - The consolidated financial statements include the accounts of the Company and its 33 subsidiaries. Thirty-twoof the Company’s subsidiaries have the same fiscal year end as the Company, 31st March. One of the Company’s subsidiaries is
consolidated using a fiscal year ending 31st December. Significant transactions occurring from 1st January to 31st March areadjusted for in the consolidated financial statements.
All significant intercompany balances, transactions and profits have been eliminated. In the elimination of investments in
subsidiaries, the assets and liabilities of the subsidiaries, including the portion attributable to minority shareholders, are evaluatedusing the fair value at the time the Company acquired control of the respective subsidiary. The difference between the cost of aninvestment and the equity in the assets at the date of acquisition is amortized over five years. Equity method accounting is applied
to affiliates which are substantially controlled by the Company. Betagro MF Deli Co., Ltd. is being included in the scope of theCompanies to which the equity method is applied.
Cash and cash equivalents - Cash on hand, readily available deposits and short-term highly liquid investments with maturities
not exceeding three months at the time of purchase are considered cash and cash equivalents.
Securities - Available-for-sale securities with available fair market value are stated at fair market value. Unrealized gains andlosses on these securities are reported, net of applicable income taxes, as a separate component of shareholders’ equity. Realized
gains and losses on the sale of such securities are computed using the moving average cost method. Debt securities with noavailable fair market value are stated at amortized cost, net of the amount considered not collectible. Other securities with noavailable fair market value are stated using the moving average cost method.
If the market value of equity securities or available-for-sale securities declines significantly, the difference between the fairmarket value and the carrying amount is recognized as loss in the period of the decline. If the fair market value of equity securities
is not readily available, such securities are written down to net asset value with a corresponding charge in the consolidated
statement of income in the event the net asset value declines significantly. In these cases, the fair market value or the net asset
value will be the carrying amount of the securities at the beginning of the next year.
Derivatives and hedge accounting - The Companies account for derivative financial instruments at fair value and recognizechanges in the fair value as gain or loss unless the derivative financial instrument is used for hedging purposes. If derivative
financial instruments are used as hedges and meet certain hedging criteria, the Companies defer recognition of gain or loss
resulting from changes in the fair value of the derivative financial instrument until the related loss or gain on the hedged item isrecognized. However, foreign monetary obligations denominated in foreign currencies for which foreign exchange forward
contracts are used to hedge foreign currency fluctuations are translated at the contracted rate if the forward contracts qualify for12hedge accounting (“the alternative method”). Also, if interest rate swap contracts are used as hedges and meet certain hedging
criteria, the net amount to be paid or received under the interest rate swap contract is added to or deducted from the interest on theassets or liabilities for which the swap contract was executed (“the special treatment”).
Allowance for doubtful accounts - An allowance for doubtful accounts is provided to cover possible losses on collection. With
respect to normal trade accounts receivable, it is stated at an amount based on the actual rate of historical bad debts. For certain
doubtful receivables, the uncollectible amounts are individually estimated.
Inventories - The Company and its domestic consolidated subsidiaries state inventories at the lower of average cost or net
realizable value.
Property, plant and equipment - Property, plant and equipment are stated at cost. Depreciation is computed primarily using thedeclining balance method. Buildings acquired after 1st April 1998, however, are depreciated using the straight-line method. The
useful life of buildings and structures ranges from 12 to 50 years. The useful life of machinery and equipment ranges from 4 to 10
years.
Software - The Company and its consolidated domestic subsidiaries include software in intangible assets and amortize it using
the straight-line method over the estimated useful life of 5 years.
Goodwill - Goodwill is amortized over a period of 5 years using the straight-line method.
Lease assets - Assets under finance leases that do not transfer ownership of the lease assets are amortized using the straightline method over the lease term with the assumption that the useful life coincides with the lease term and the residual value is
zero.
Research and development expenses - Research and development expenses for the improvement of existing products and thedevelopment of new products, including basic research and fundamental development costs, are charged to expenses as incurred.
Bonuses - The Company and its consolidated domestic subsidiaries follow the general Japanese practice of paying bonuses to
employees in July and December. Accrued bonus liabilities are determined based upon the estimated amounts to be paid in thesubsequent period and are included in accrued expenses.
Translation of foreign currencies - Short-term and long-term receivables and payables denominated in foreign currencies aretranslated into Japanese yen at year-end rates. Financial statements of consolidated overseas subsidiaries are also translated into
Japanese yen at year-end rates, except for shareholders’ equity accounts, which are translated at historical rates.
Accounting for Retirement Benefits - Projected benefit obligations are attributed to periods on a benefit formula basis indetermining retirement benefit obligations. Prior service costs are amortized by the straight-line method over a fixed period of 5
years, which is the average remaining service years of the eligible employees beginning in the fiscal year in which the priorservice costs are recognized. Actuarial gains and losses are amortized by the straight-line method over a fixed period of 10 years,
which is the average remaining service years of the eligible employees beginning in the fiscal year following the year in which thegains and losses are recognized. In determining the amount of retirement benefit obligations and retirement benefit costs, somesmall sized consolidated subsidiaries have adopted a simplified method in which the amount that would be required if all theemployees retired voluntarily at the fiscal year end is treated as retirement benefit obligation.
Income taxes - The asset-liability approach is used to recognize deferred tax assets and liabilities for tax loss carryforwards
and the expected future tax consequences of temporary differences between the carrying amounts of assets and liabilities forfinancial reporting purposes and the amounts used for income tax purposes.

13Amounts per share - The computations of net income per share of common stock shown on the consolidated statements ofincome are based on the weighted average number of shares outstanding during each financial period. Cash dividends per share
shown in the consolidated statements of income are the amounts applicable to the respective years. Diluted net income is notdisclosed because the Company had no outstanding securities which might have diluted the per share amounts for the years ended
31st March 2015 and 2014.
Accounting changes
Accounting Standard for Retirement Benefits - The Company and its consolidated domestic subsidiaries adopted Article 35 of
the “Accounting Standard for Retirement Benefits” (ASBJ Statement No. 26, 17th May 2012 (hereinafter, “Statement No. 26”))
and Article 67 of the “Guidance on Accounting Standard for Retirement Benefits” (ASBJ Guidance No. 25, 26th March 2015
(hereinafter, “Guidance No. 25”)) from the current fiscal year and have changed the determination of retirement benefit
obligations and current service cost. In addition, the Company and its consolidated domestic subsidiaries have changed themethod of attributing expected benefit to periods from a straight-line method to a benefit formula basis and have changed themethod of determining the discount rate to a method that uses a single-weighted average discount rate reflecting the projected
payment periods of retirement benefits and the amount for each projected payment period.
In applying Statement No. 26 and Guidance No. 25, the Company and its consolidated domestic subsidiaries has followed thetransitional treatment prescribed in Article 37 of Statement No. 26.
The above changes had no effect on retained earnings as of 1st April 2014 or net income for the fiscal year ended 31st March
2015.
3. Financial instruments(1) Current status of financial instruments① Policy concerning financial instruments
The Group makes it a policy to limit fund investments to bank deposits and other investments in which the principal
thereof is free from risk and raise funds principally through borrowings from financial institutions such as banks andissuance of corporate bonds. The Group uses derivatives to reduce foreign exchange and interest rate fluctuation risks but
does not engage in any speculative transactions.
② Details of financial instruments and their risks and the Group’s risk management system
The Group is exposed to credit risk arising from operating receivables such as trade notes and accounts receivable. To
limit the risk, the Company conducts due date and outstanding receivable management by customer in accordance with its
credit exposure management guidelines and has a grading system to evaluate the credit condition of its major customers
every six months. The consolidated subsidiaries manage credit risk similarly, following the Company’s credit exposure
management guidelines.
The Group is exposed to market price risk arising from the investment securities it holds. These securities constituteshares of companies with which companies in the Group have business relationships. The fair values of such shares are
periodically assessed and reported to the Board of Directors.
Operating payables, such as trade notes and accounts payables, are generally payable within one year. Some arise inconnection with the import of raw materials and goods that are denominated in foreign currencies. The Company uses
foreign currency forward contracts to reduce foreign currency fluctuation risk that arises from operating payables in foreign
currencies.
The Group primarily uses loans to procure operating funds and lease receivables from finance leases to raise funds forcapital expenditure. When the loans have floating interest rates, the Company is exposed to interest rate fluctuation risk. For
most long-term loans with floating interest rates, the Company uses derivatives (interest rate swaps) for each individual loan
as a hedge instrument to fix interest payments. Since the requirements for special treatment for interest rate swaps are
satisfied, the Company uses the special treatment for the assessment of hedge effectiveness. To minimize counterparty risk,
the Company follows its derivative transaction rules and enters such transactions only with highly rated financial institutions.

14

The Company is exposed to liquidity risk arising from its operating obligations and loan payables. To minimize this risk,
the Accounting Department prepares statements of cash flows based on other divisions’ reports and regularly updates thestatements. The consolidated subsidiaries also manage liquidity risk in accordance with the methods used by the Company.
③ Supplementary explanation on fair values of financial instruments
The fair values of financial instruments include values based on market prices or reasonably calculated values whenmarket prices are not available. Because a variety of factors, some of which are variable, are taken into account whencalculating the values, the adoption of different assumptions may result in different values.
The contract amounts of the derivative transactions stated in “(2) Fair value of financial instruments” do not reflect themarket risk involved in the derivative transactions themselves.
(2) Fair value of financial instruments
The following table shows consolidated balance sheet amounts, fair value and any difference between book value and fairvalue as of 31st March 2015. However, financial instruments whose fair values were deemed difficult to determine are notincluded in the table (refer below to (※2)).
Millions of yen
Thousands of U.S. dollars (Note 1)
Consolidated Fair value
Difference
Consolidated Fair value
Difference
balance sheet
balance sheet
amounts
amounts¥13,923¥13,923¥ –$115,880$115,880$ –① Cash and time deposits
23,952
23,952–
199,351
199,351–② Trade notes and accounts receivable
Investment
securities③
Available-for-sale securities
12,632
12,632–
105,135
105,135–
21,072
21,072–
175,381
175,381–④ Trade notes and accounts payable
7,301
7,301
–
60,766
60,766–⑤ Short-term borrowings
7,319
7,288
(31)
60,91660,658(258)⑥ Long-term debt
2,835
2,919
84
23,59624,295699⑦ Lease obligations
13
13
–
108
108
–
⑧ Derivatives (*)(*) Derivative assets and liabilities are presented on a net basis.
(※1) Determination of fair value for financial instruments and matters concerning securities and derivative transactions① Cash and time deposits and ② Trade notes and accounts receivable
The fair value of these items are stated at book value. Because these instruments are settled in a short period oftime, book value approximates fair value.
③ Investment securities
The fair value of these securities are based on prices on securities exchanges. For information on securities
classified by the purpose for which they are held, refer to Note 4, “Securities.”④ Trade notes and accounts payable and ⑤ Short-term borrowings
The fair value of these items are stated at book value. Because these instruments are settled in a short period oftime, book value approximates fair value.
⑥ Long-term debt and ⑦ Lease obligations
To calculate the fair value of these items, the combined amount of principal and interest is discounted by theinterest rate considered applicable to similar new loans or lease transactions. For the fair value of long-term debt withfloating interest rates subject to special treatment for interest rate swaps, the combined amount of principal andinterest processed as a single item with the interest swap is discounted by the price provided by the financial
institution.
⑧ Derivatives
Refer to Note 5, “Derivative financial instruments and hedging transactions.”15

(※2) Financial instruments whose fair values are deemed extremely difficult to determine
Category
Unlisted stocks

Millions of yen
Consolidated balance sheet amounts¥51

Thousands of U.S. dollars (Note 1)
Consolidated balance sheet amounts$425

Since no market prices were available for the above financial instruments and their fair values were difficult to determine by
the estimation of the future cash flows, these items were not included in “③ Investment securities-Available-for-sale securities.”(※3) Estimated redemption amounts of monetary assets and available-for-sale securities with maturity dates after the
consolidated balance sheet dateMillions of yen
Over one year Over five
but within
years
five years¥13,923––
23,952––¥37,875––

Within one
year
Cash and time deposits
Trade notes and accounts receivable
Total

Thousands of U.S. dollars (Note 1)
Within one Over one year Over fiveyear
but within
years
five years$115,880––
199,351––$315,231––(※4) For estimated repayment amounts of long-term debt, lease obligations and other interest bearing debt, refer to Note 7,“Short-term borrowings, long-term debt and lease obligations.”
The following table shows consolidated balance sheet amounts, fair value and any difference between book value and fairvalue as of 31st March 2014. However, financial instruments whose fair values were deemed difficult to determine are notincluded in the table (refer below to (※2)).
Millions of yen
Consolidated Fair value
Difference
balance sheet
amounts¥14,898¥14,898¥ –① Cash and time deposits
23,14623,146–② Trade notes and accounts receivable③ Investment securities
Available-for-sale securities
10,923
10,923–
19,547
19,547–④ Trade notes and accounts payable
7,276
7,276
–
⑤ Short-term borrowings
7,962
7,935
(27)
⑥ Long-term debt
3,382
3,475
93
⑦ Lease obligations
Derivatives
(*)
1
1
–
⑧
(*) Derivative assets and liabilities are presented on a net basis.
(※1) Determination of fair value for financial instruments and matters concerning securities and derivative transactions① Cash and time deposits and ② Trade notes and accounts receivable
The fair value of these items are stated at book value. Because these instruments are settled in a short period oftime, book value approximates fair value.
③ Investment securities
The fair value of these securities are based on prices on securities exchanges. For information on securities
classified by the purpose for which they are held, refer to Note 4, “Securities.”16

④ Trade notes and accounts payable and ⑤ Short-term borrowings
The fair value of these items are stated at book value. Because these instruments are settled in a short period oftime, book value approximates fair value.
⑥ Long-term debt and ⑦ Lease obligations
To calculate the fair value of these items, the combined amount of principal and interest is discounted by theinterest rate considered applicable to similar new loans or lease transactions. For the fair value of long-term debt withfloating interest rates subject to special treatment for interest rate swaps, the combined amount of principal andinterest processed as a single item with the interest swap is discounted by the price provided by the financial
institution.
⑧ Derivatives
Refer to Note 5, “Derivative financial instruments and hedging transactions.”(※2) Financial instruments whose fair values were deemed extremely difficult to determine
Category
Unlisted bonds
Unlisted stocks

Millions of yen
Consolidated balance sheet amounts¥ 6
55

Since no market prices were available for the above financial instruments and their fair values were difficult to determine byan estimation of the future cash flows, these items were not included in “③ Investment securities-Available-for-sale securities.”(※3) Estimated redemption amounts of monetary assets and available-for-sale securities with maturity dates after the
consolidated balance sheet dateMillions of yen
Over one year Over five
but within
years
five years¥14,898––
23,146––

Within one
year
Cash and time deposits
Trade notes and accounts receivable
Investment securities
Available-for-sale securities withmaturity dates (bonds)
Total

6¥38,050––––(※4) For estimated repayment amounts of long-term debt, lease obligations and other interest bearing debt, refer to Note 7,“Short-term borrowings, long-term debt and lease obligations.”17

4. Securities
The following tables summarize historical costs and book values (fair values) of available-for-sale securities with available
fair market values as of 31st March 2015 and 2014.
Securities with book values
exceeding historical cost:

Millions of yen
2015

Historicalcost
Equity securities ������������������� ¥5,101–
Bonds �����������������������������������
–Others �����������������������������������
Total ������������������������������������� ¥5,101

Book
value
¥12,145––¥12,145

Securities with book values
not exceeding historical cost:2015

Historicalcost
Equity securities �������������������
¥696–
Bonds �����������������������������������
–Others �����������������������������������
Total �������������������������������������
¥696

Book
value
¥487
–
–
¥487

Type

.

Type

Thousands of U.S. dollars (Note 1)
2014

Gain
¥7,044––¥7,044

Historicalcost¥4,518––¥4,518Book
value¥9,900––¥9,9002015
Gain¥5,382––¥5,382

Historical
Book
cost
value
$42,455 $101,082––––$42,455 $101,082

2014
Loss
¥(209)––¥(209)

Historicalcost¥1,264––¥1,264Book
value¥1,023––¥1,023

Gain$58,627––$58,627

2015
Loss¥(241)––¥(241)

Historicalcost$5,793––$5,793Book
value$4,053––$4,053Loss$(1,740)––$(1,740)

Unlisted stocks (carrying amount of ¥51 million ($425 thousand)) as of 31st March 2015 and unlisted stocks (carrying amountof ¥55 million) and unlisted bonds (carrying amount of ¥6 million) as of 31st March 2014 were not included in the above table as
no market prices for these securities were available and their fair values were deemed extremely difficult to determine by an
estimation of the future cash flows.
Available-for-sale securities
sold during the year:

Millions of yen
2015

Type
Equity securities �������������������
Bonds �����������������������������������
Total �������������������������������������

Proceeds

.

¥50
6
¥56

Gains
on sales¥36–¥36

Thousands of U.S. dollars (Note 1)
2014

Losseson sales–––Proceeds
¥884
–
¥884

Gains
on sales
¥461
–
¥461

2015
Losseson sales–––Proceeds
$416
50
$466

Gains
on sales
$300
–
$300

Losseson sales–––The Group recognized impairment loss on investment securities categorised as other securities with market value in theamount of ¥4 million ($33 thousand) for the year ended 31st March 2015.
The Group recognized impairment loss on investment securities categorised as other securities with market value in theamount of ¥11 million for the year ended 31st March 2014.
When the value of stocks depreciated from 30% to 50%, the Company determined impairment loss by analyzing theoperational performance of the issuing entities based on prevailing financial data and market value information such as
discrepancies between the book value and the highest or lowest market value during the year.

18

5. Derivative financial instruments and hedging transactions
Derivative financial instruments and hedging transactions at 31st March 2015 were as follows:(1) Currency related
Millions of yen Thousands of U.S. dollars (Note 1)
Hedge accounting
methodAlternative method

Transaction types

Major hedged Contract
items
amounts

Foreign exchange trading
Accounts
On purchased
payableU.S. dollar
Total

Due overone year

Fair
Value

Contract
amounts

Due overone year

Fair
Value

¥1,027–(※) ¥13$8,548–$108¥1,027–¥13$8,548–$108※ Fair value is based on information provided by financial institutions at the end of the fiscal year.
(2) Interest related
Millions of yen Thousands of U.S. dollars (Note 1)
Hedge accounting
methodSpecial treatment

Transaction types
Interest rate swaps
Pay fixed,
receive floating
Total

Major hedged Contract
items
amounts
Long-termdebt

Due overone year

Fair
Value

Contract
amounts

Due overone year

Fair
value

¥3,768¥3,768(※) –$31,361$31,361–¥3,768¥3,768–$31,361$31,361–※ According to the special treatment for interest rate swaps as applied to integrated and long-term debt, the fair value of thederivative financial instrument is included in the fair value of the long-term debt.
Derivative financial instruments and hedging transactions at 31st March 2014 were as follows:(1) Currency related
Millions of yen
Hedge accounting
methodAlternative method

Transaction types

Major hedged Contract
items
amounts

Foreign exchange trading
Accounts
On purchased
payableU.S. dollar
Total

Due overone year

Fair
value

¥468

–

(※) ¥1

¥468

–

¥1

※ Fair value is based on information provided by financial institutions at the end of the fiscal year.
(2) Interest related
Millions of yen
Hedge accounting
methodSpecial treatment

Transaction types
Interest rate swaps
Pay fixed,
receive floating
Total

Major hedged Contract
items
amounts
Long-termdebt

Due overone year

Fair
value

¥3,808¥2,958(※) –¥3,808¥2,958–19

※ According to the special treatment for interest rate swaps as applied to integrated and long-term debt, the fair value of thederivative financial instrument is included in the fair value of the long-term debt.
6. Inventories
Inventories at 31st March 2015 and 2014 consisted of the following:Thousands of
U.S. dollars (Note 1)

Millions of yen
Finished goods and merchandise ������������������������������������������������������������
Work in progress �������������������������������������������������������������������������������������
Raw materials and supplies ���������������������������������������������������������������������

2015

2014

2015

¥10,534
568
5,932¥17,034¥ 7,469773
5,420¥13,662$ 87,674
4,727
49,372$141,773

7. Short-term borrowings, long-term debt and lease obligations
Short-term borrowing at 31st March 2015 and 2014 consisted of short-term notes, which generally mature within one year,with average interest rates of 0.65% and 0.64%, respectively.
Long-term debt at 31st March 2015 and 2014 consisted of the following:
Millions of yen
2015
2014
Loans from banks, insurance companies and otherfinancial institution at 0.72% to 1.55% maturing through 2023
Secured ����������������������������������������������������������������������������������������������������
Unsecured �����������������������������������������������������������������������������������������������
Less current portion ��������������������������������������������������������������������������������

¥ 1,0936,226
7,319(2,095)¥ 5,224

Thousands of
U.S. dollars (Note 1)2015¥ 1,462
6,500
7,962(2,990)¥ 4,972$ 9,097
51,81960,916(17,437)$ 43,479

The aggregate annual maturities of long-term debt as of 31st March 2015 were as follows:
Years ending 31st March,2016 ������������������������������������������������������������������������������������������������
2017 ������������������������������������������������������������������������������������������������
2018 ������������������������������������������������������������������������������������������������
2019 ������������������������������������������������������������������������������������������������
2020 ������������������������������������������������������������������������������������������������
2021 and thereafter �������������������������������������������������������������������������

20

Millions of yen

Thousands of U.S. dollars (Note 1)

2015

2015
¥2,095
1,724
2,373
656
382
89
¥7,319$17,437
14,34919,750
5,460
3,179
741
$60,916

The aggregate annual maturities of lease obligations as of 31st March 2015 were as follows:
Years ending 31st March,2016 ������������������������������������������������������������������������������������������������
2017 ������������������������������������������������������������������������������������������������
2018 ������������������������������������������������������������������������������������������������
2019 ������������������������������������������������������������������������������������������������
2020 ������������������������������������������������������������������������������������������������
2021 and thereafter �������������������������������������������������������������������������

Millions of yen

Thousands of U.S. dollars (Note 1)

2015

2015
¥ 746
654
662
380
367
26
¥2,835$ 6,209
5,443
5,510
3,163
3,055
216
$23,596

8. Pledged assets
Assets were pledged as collateral for short-term borrowings of ¥300 million ($2,497 thousand), the current portion of longterm debt of ¥365 million ($3,038 thousand) and long-term debt of ¥728 million ($6,059 thousand) as of 31st March 2015 and forshort-term borrowings of ¥300 million, the current portion of long-term debt of ¥369 million and long-term debt of ¥1,093
million as of 31st March 2014. The assets pledged are summarized as follows:

Land ��������������������������������������������������������������������������������������������������������
Buildings and structures ��������������������������������������������������������������������������
Machinery and equipment �����������������������������������������������������������������������

Millions of yen
2015
2014
¥ 468
¥ 488
904
965
113
143
¥1,485¥1,596

Thousands of
U.S. dollars (Note 1)2015$ 3,895
7,524
941$12,360

9. Retirement benefits(1) Outline of retirement benefit plans adopted
The Companies have established defined benefit plans (fund type), lump-sum payment plans and defined contribution plans(prepayment of benefits can be selected). In some cases, additional severance benefits may be paid to the employees uponretirement.
(2) Defined Benefit Obligation① The changes in retirement benefit obligation for the fiscal years ended 31st March 2015 and 2014 (excluding those for which
the simplified method was applied) were as follows:

Beginning balance of retirement benefit obligation ��������������������������������
Service cost - benefits earned during the year ����������������������������������������
Interest cost on projected benefit obligation �������������������������������������������
Actuarial gains and losses �����������������������������������������������������������������������
Retirement benefits paid �������������������������������������������������������������������������
Ending balance of retirement benefit obligation �������������������������������������

Millions of yen
2015
2014
¥23,489¥23,988
762
825
188
192
14
(47)
(1,171)(1,469)¥23,282¥23,489

Thousands of
U.S. dollars (Note 1)
2015$195,497
6,342
1,565
116
(9,746)$193,774

21

② The changes in plan assets for the fiscal years ended 31st March 2015 and 2014 (excluding those for which the simplified
method was applied) were as follows:

Beginning balance of plan assets ������������������������������������������������������������
Expected return on plan assets ����������������������������������������������������������������
Actuarial gains and losses �����������������������������������������������������������������������
Contribution from the employer �������������������������������������������������������������
Retirement benefits paid �������������������������������������������������������������������������
Ending balance of plan assets �����������������������������������������������������������������

Millions of yen
2015
2014
¥21,386¥20,771
641
623
991
692
552
567
(1,053)(1,267)¥22,517¥21,386

Thousands of
U.S. dollars (Note 1)
2015$177,994
5,335
8,248
4,594
(8,764)$187,407③ The changes in liabilities for retirement benefits of the plans for which the simplified method was applied for the fiscal years
ended 31st March 2015 and 2014 were as follows:

Beginning balance of liabilities for retirement benefits ��������������������������
Retirement benefit expenses �������������������������������������������������������������������
Retirement benefits paid �������������������������������������������������������������������������
Ending balance of liabilities for retirement benefits �������������������������������

Millions of yen
2015
2014
¥915
¥ 918
96
106
(48)
(109)
¥963
¥ 915

Thousands of
U.S. dollars (Note 1)
2015$7,615799(399)$8,015④ Reconciliation between the ending balance of projected benefit obligation and plan assets and liability and asset for
retirement benefits recorded in the consolidated balance sheet

Funded retirement benefit obligation ������������������������������������������������������
Plan assets �����������������������������������������������������������������������������������������������
Unfunded retirement benefit obligation ��������������������������������������������������
Net liability (asset) for retirement benefits recordedin the consolidated balance sheet �����������������������������������������������������������
Liabilities for retirement benefits ������������������������������������������������������������
Net liability (asset) for retirement benefits recordedin the consolidated balance sheet �����������������������������������������������������������
Note: The plans to which the simplified method is applied are included.

22

Millions of yen
2015
2014
¥23,282¥23,489(22,517)(21,386)
765
2,103
963
915

Thousands of
U.S. dollars (Note 1)
2015$193,774(187,407)
6,367
8,015

1,728
1,728

3,018
3,018

14,382
14,382¥ 1,728¥ 3,018$ 14,382

⑤ The components of retirement benefit expenses were as follows:

Service cost - benefits earned during the year ����������������������������������������
Interest cost on projected benefit obligation �������������������������������������������
Expected return on plan assets ����������������������������������������������������������������
Amortisation of actuarial differences ������������������������������������������������������
Amortisation of prior service costs ���������������������������������������������������������
Retirement benefit expenses calculated using the simplified method �����
Retirement benefit expenses on defined benefit plans ����������������������������

Millions of yen
2015
2014
¥ 761
¥823
188
192
(641)
(623)
286
607
7
7
96
97
¥ 697
¥1,103

Thousands of
U.S. dollars (Note 1)2015$ 6,334
1,565(5,335)
2,380
58
799
$ 5,801

Note: For the fiscal year ended 31st March 2014, in addition to the above retirement benefit expenses, additional severance
benefits of ¥182 million were paid and recorded under other expenses.
⑥ Adjustments for retirement benefits
The components of adjustments for retirement benefits (before tax effect) were as follows:

Prior service cost �������������������������������������������������������������������������������������
Actuarial gains and losses �����������������������������������������������������������������������
Total ��������������������������������������������������������������������������������������������������������

Millions of yen
2015
2014
¥
6
1,263
¥1,269–––Thousands of
U.S. dollars (Note 1)
2015
$
50
10,512$10,562$10,562⑦ Accumulated adjustments for retirement benefits
The components of accumulated adjustments for retirement benefits (before tax effect) were as follows:

Unrecognised prior service costs ������������������������������������������������������������
Unrecognised actuarial geins and losses �������������������������������������������������
Total ��������������������������������������������������������������������������������������������������������

Millions of yen
2015
2014
¥ 10
¥ 17
2,406
3,668
¥2,416¥3,685

Thousands of
U.S. dollars (Note 1)
2015
¥
83
20,025¥20,108

2015

2014

⑧ Plan assets
The components of plan assets were as follows:
Debt securities ���������������������������������������������������������������������������������
Equity securities ������������������������������������������������������������������������������
Alternatives �������������������������������������������������������������������������������������
Short-term assets �����������������������������������������������������������������������������
General account ������������������������������������������������������������������������������
Total ������������������������������������������������������������������������������������������������

44.5%
24.1
22.2
2.5
6.7
100.0%

37.9%
26.8
19.6
8.7
7.0
100.0%

Note: Regarding alternatives, hedge fund investments are made for the purpose of risk diversification.

23

Method of determining long-term expected rate of return
The long-term expected rate of return on plan assets is determined by taking into consideration allocation of plan assets
which are expected currently and in the future and the long-term rates of return which are expected currently and in the
future from the various components of the plan assets.
⑨ Assumptions used for actuarial calculations for the fiscal years ended 31st March 2015 and 2014 were as follows:
Discount rate: 0.8%
Long-term expected rate of return: 3.0%
Expected rate of salary increase
Defined benefit plans (fund type): 1.0%
Lump-sum payment plans: 4.8%
Note: The expected rate of salary increase is calculated by taking the average of the salary increase index of each plan.
(3) Define Contribution Plans
The amount of required contribution to the defined contribution plans of the Companies was ¥50 million ($416 thousand) for
the year ended 31st March 2015 and 48 million for the year ended 31st March 2014.
10. Income taxes
Income taxes applicable to the Company and its domestic consolidated subsidiaries comprise corporate taxes, inhabitants
taxes and enterprise taxes which, in the aggregate, resulted in a statutory tax rate of 35.6% and 38.0% for the years ended 31st
March 2015 and 2014, respectively.
The following table summarises the significant differences between the statutory income tax rate and the Companies’ effective
tax rate for financial statement purposes for the years ended 31st March 2015 and 2014.
Statutory tax rate
Non-deductible expenses, including entertainment expenses
Non-taxable income, including dividend received
Per capita inhabitants tax
Changes in valuation allowance
Tax credit for testing and research expenses
Adjustments of deferred tax assets and liabilities due to a change in the corporate income tax rate
Other
Effective tax rate

24

2015
35.6%
1.4
(1.4)
3.5
(1.6)
(1.4)
1.4
1.2
38.7%

2014
38.0%
2.1
(1.7)
3.9
(0.5)
(1.5)
1.7
(0.4)
41.6%

Significant components of the Companies’ deferred tax assets and liabilities as of 31st March 2015 and 2014 were as follows:

Deferred tax assets:
Loss on impairment of assets ������������������������������������������������������������
Liabilities for retirement benefits ������������������������������������������������������
Loss carryforwards ����������������������������������������������������������������������������
Accrued bonuses �������������������������������������������������������������������������������
Accounts payable on distribution expenses ��������������������������������������
Long-term trade receivables ��������������������������������������������������������������
Allowance for doubtful accounts ������������������������������������������������������
Other �������������������������������������������������������������������������������������������������
Total deferred tax assets ��������������������������������������������������������������������������
Valuation allowance ��������������������������������������������������������������������������
Net deferred tax assets ����������������������������������������������������������������������������

Millions of yen
2015
2014
¥ 1,220¥ 1,355
546
690
506
684
335
375
252
227
227
254
119
157
759
755
¥ 3,964¥ 4,497(2,128)(2,429)
1,836
2,068

Deferred tax liabilities:
Unrealised gains on securities �����������������������������������������������������������
Reserve for property, plant and equipment ���������������������������������������
Other �������������������������������������������������������������������������������������������������
Total deferred tax liabilities ��������������������������������������������������������������������
Net deferred tax assets ����������������������������������������������������������������������������

(2,062)(34)(215)(2,311)¥ (475)(1,725)(38)(137)(1,900)¥ 168

Thousands of
U.S. dollars (Note 1)2015$ 10,154
4,544
4,211
2,788
2,097
1,889
990
6,318
$ 32,991(17,711)
15,280(17,162)(283)(1,789)(19,234)$ (3,954)

Changes in presentation method
To enhance clarity the presentation of significant components of the Company’s deferred tax assets and liabilities have beenchanged as follows :a. “Accounts payable on distribution expenses” and “Long-term trade receivables” which had previously been included in “Other”
under “Deferred tax assets” have been separately listed from 31st March 2015.
b. The temporary differences to be deducted from future taxable income which were not recorded in the consolidated financial
statements such as “Write-down of investment in affiliates” which had been included in “Other” have been excluded from“Deferred tax assets” from 31st March 2015.
c. “Prepaid pension cost” which had been separately listed under “Deferred tax liabilities” in the previous fiscal year has been
included in “Liabilities for retirement benefits” under “Deferred tax assets” from 31st March 2015.

25

In order to reflect these changes in the presentation method, notes to the previous fiscal year were restated. Consequently, thepresentation for the previous fiscal year has been restated as follows:
Millions of yen
Beforerestatement
Deferred tax assets:
Liabilities for retirement benefits
Accounts payable on distribution expenses
Long-term trade receivables
Other
Total deferred tax assets
Valuation allowance
Net deferred tax assets
Deferred tax liabilities:
Prepaid pension cost
Total deferred tax liabilities

After
restatement¥ 1,235
–
–
2,000
5,806
(3,193)
2,613

¥

690
227
254
755
4,497
(2,429)
2,068

(545)
¥(2,445)–¥(1,900)

Adjustments of deferred tax assets and liabilities due to a change in the corporate income tax rate:
The “Partial Amendments to Income Tax Act, etc.” (Act No. 9 of 2015) and “Partial Amendments to Local Tax Act, etc.” (ActNo. 2 of 2015) were promulgated on 31st March 2015. Due to this change, the statutory tax rate to be used for computing deferred
tax assets and deferred tax liabilities has been changed from 35.6% to 33.1% for the temporary differences expected to be settled
in the fiscal year beginning on 1st April 2015 and to 32.3% for the temporary differences expected to be settled in the fiscal years
beginning on and after 1st April 2016. As a result, deferred tax assets, net of deferred tax liabilities, deferred income taxes,
unrealised gains on securities and deferred gains on hedges increased by ¥95 million ($791 thousand), ¥44 million ($366
thousand), ¥213 million ($1,773 thousand) and ¥0 million ($0 thousand), respectively, and accumulated adjustments for
retirement benefits decreased by ¥74 million ($616 thousand).
11. Contingent liabilities
There are no matters to be reported.
12. Net assets
Under the Japanese laws and regulations, the entire amount paid for new shares is required to be designated as common stock.
However, a company may, by a resolution of the Board of Directors, designate an amount not exceeding one half of the price ofthe new shares as additional paid-in capital, which is included in capital surplus. Under the Japanese Corporate Law (“the Law”),
in cases in which a dividend distribution of surplus is made, the smaller of an amount equal to 10% of the dividend or the excess,if any, of 25% of common stock over the total of additional paid-in capital and legal earnings reserve must be set aside asadditional paid-in capital or legal earnings reserve. Legal earnings reserve is included in retained earnings in the accompanying
consolidated balance sheets. Under the Law, both of these appropriations generally require a resolution of the shareholders’meeting.
Additional paid-in capital and legal earnings reserve may not be distributed as dividends. Under the Law, all additional paid-in
capital and all legal earnings reserve may be transferred to other capital surplus and retained earnings, respectively, which arepotentially available for dividends. The maximum amount that the Company can distribute as dividends is calculated based on thenonconsolidated financial statements of the Company in accordance with Japanese laws and regulations.

26

At the general shareholders’ meeting held on 26th June 2015, appropriations of retained earnings for year-end dividends
applicable to the year ended 31st March 2015 were duly approved as follows:
Millions of yen
Thousands of U.S. dollars
Cash dividends: ¥7.00 ($0.06) per share �����������������������������������������

¥927$7,715

13. Research and development expenses
Research and development expenses included in selling, general and administrative expenses for the years ended 31st March
2015 and 2014 were ¥677 million ($5,635 thousand) and ¥688 million, respectively.
14. Loss on impairment of assets
The Company recorded impairment loss on certain asset groups for the year ended 31st March 2015. The Company classified
fixed assets into three categories: business assets, rental assets and idle assets. The Company groups its business assets by cash
generating units and rental assets and idle assets by individual asset as these represent the smallest identifiable assets generating
cash inflows. The Company records impairment loss for property, plant and equipment when the original carrying amount isbelow the estimated recoverable amount based on projected future cash flows. The total impairment loss for the year ended 31st
March 2015 consisted of ¥96 million ($799 thousand) for land and ¥37 million ($308 thousand) for buildings and other. The
recoverable amounts are measured by value in exchange for idle assets. Value in exchange was determined using independent
appraisals.
The Company recorded impairment loss on certain asset groups for the year ended 31st March 2014. The Company classified
fixed assets into three categories: business assets, rental assets and idle assets. The Company groups its business assets by cash
generating units and rental assets and idle assets by individual asset as these represent the smallest identifiable assets generating
cash inflows. The Company records impairment loss for property, plant and equipment when the original carrying amount isbelow the estimated recoverable amount based on projected future cash flows. The total impairment loss for the year ended 31st
March 2014 consisted of ¥131 million for land and ¥117 million for buildings and other. The recoverable amounts are measured
by value in use for property, plant and equipment, value in use or exchange for rental assets and value in exchange for idle assets.
Value in exchange was determined using independent appraisals. Value in use was calculated based on estimated future cash flows
and was discounted at the rate of 2.8%.
15. Segment information(1) Overview of the reportable segments① Method for determining reportable segments
The Group’s reportable segments are determined based on the availability of separate financial information for suchsegments that is examined periodically by the Board of Directors to make decisions regarding the allocation of management
resources and to assess business performance. The Group has divided its business operations into two reportable segments
and an “Other” segment. Its reportable segments are “the Processed Food Products” segment and “the Meat Products”
segment.
② Description of the businesses that constitute each reportable segment
In the Processed Food Products segment, the Company purchases, manufactures and sells ham, sausage and cooked andprocessed foods. In the Meat Products segment, the Company purchases, manufactures and sells meat products.
(2) Methods of measurement for sales, profit (loss), assets, liabilities and other items for each reportable segment
Accounting policies adopted by the reportable segments are identical to those described in Note 2, “Significant Accounting
Policies.”
As noted in “Accounting changes” under Note 2, the Company changed the calculation method for retirement benefit
obligations and service costs, and accordingly, applied the same changes to the business segments as well.
There was no effect on segment income for the year ended 31st March 2015.

27

(3) Segment information for the years ended 31st March 2015 and 2014
Segment information as of and for the fiscal year ended 31st March 2015 was as follows:
2015
Millions of yen
Reporting segments
Processed
Meat
Food Products
Products

Sales:
Sales to third parties ���������������������
Intersegment sales and transfers ��
Net sales ���������������������������������������
Segment income ���������������������������
Segment assets �����������������������������
Other items:
Depreciation and amortization �����
Increase in property, plant andequipment and intangible fixed
assets �������������������������������������������

Total

Other
(*1)

Total

¥156,952–
156,952
1,886
71,734¥65,002–65,002666
18,306¥221,954–
221,9542,552
90,040

¥ 363
1,030
1,393
179
390

¥222,317
1,030
223,347
2,731
90,430

5,092

324

5,416

19

4,268

132

4,400

23

Adjustments(*2)¥

Consolidated(*3)–(1,030)(1,030)–33,479¥222,317–
222,317
2,731
123,909

5,435

–

5,435

4,423

15

4,438

Adjustments(*2)

Consolidated
(*3)

$

–
(8,573)(8,573)–
278,643$1,850,329–
1,850,329
22,7301,031,286

2015
Thousands of U.S. dollars (Note 1)
Reporting segments
Processed
Meat
Food Products
Products

Sales:
Sales to third parties ��������������������� $1,306,300–
Intersegment sales and transfers ��
Net sales ��������������������������������������� 1,306,300
15,697
Segment income ���������������������������
597,037
Segment assets �����������������������������
Other items:
42,380Depreciation and amortization �����
Increase in property, plant andequipment and intangible fixed
35,522
assets �������������������������������������������

Total

Other
(*1)

Total

$541,007–
541,007
5,543
152,360$1,847,307–
1,847,307
21,240749,397$ 3,022
8,573
11,595
1,490
3,246$1,850,329
8,573
1,858,902
22,730752,643

2,697

45,077

158

45,235–45,235

1,099

36,621

191

36,812125

36,937(*1) The “Other” segment is business other than that of the reporting segments and includes the insurance agency business.
(*2)	Adjustments for total assets of ¥33,479 million ($278,643 thousand) indicate assets not attributed to any other segments and comprisemainly cash and deposits, investments in securities and rental properties.
(*3)	Total segment income of the reporting segments and “Other” is equal to the operating income in the consolidated statements ofoperations.
(*4)	Depreciation and amortisation and increase in property, plant and equipment and intangible fixed assets include long-term prepaid
expenses.

28

Segment information as of and for the fiscal year ended 31st March 2014 was as follows:
2014
Millions of yen
Reporting segments
Processed
Meat
Food Products
Products

Sales:
Sales to third parties ���������������������
Intersegment sales and transfers ��
Net sales ���������������������������������������
Segment income ���������������������������
Segment assets �����������������������������
Other items:
Depreciation and amortization �����
Increase in property, plant andequipment and intangible fixed
assets �������������������������������������������

Total

Other
(*1)

Total

Adjustments(*2)¥150,193–
150,193
2,600
71,938¥63,120–
63,12062
15,839¥213,313–
213,313
2,662
87,777

¥ 366
1,058
1,424
200
418

¥213,679
1,058
214,737
2,862
88,195

5,247

343

5,590

19

4,877

156

5,033

17

¥

Consolidated(*3)–(1,058)(1,058)–32,499¥213,679–
213,679
2,862
120,694

5,609

–

5,609

5,050

8

5,058

(*1) The “Other” segment is business other than that of the reporting segments and includes the insurance agency business.
(*2)	Adjustments for total assets of ¥32,499 million indicate assets not attributed to any other segments and comprise mainly cash anddeposits, investments in securities and rental properties.
(*3)	Total segment income of the reporting segments and “Other” is equal to the operating income in the consolidated statements ofoperations.
(*4)	Depreciation and amortisation and increase in property, plant and equipment and intangible fixed assets include long-term prepaid
expenses.

(4) Information about loss on impairment of assets by reportable segment
Information about loss on impairment of assets by reportable segments as of and for the fiscal year ended 31st March 2015
was as follows:
Millions of yen
Reporting segments
Processed
Meat
Food Products
Products

Loss on impairment of assets �������

–

Other

Total

–

–

Total
–

–

Adjustments

Consolidated

¥133

¥133

Adjustments

Consolidated$1,107$1,107

Thousands of U.S. dollars (Note 1)
Reporting segments
Processed
Meat
Food Products
Products––
Loss on impairment of assets �������

Other

Total
–

Total
–

–

Information about loss on impairment of assets by reportable segment as of and for the fiscal year ended 31st March 2014
was as follows:
Millions of yen
Reporting segments
Processed
Meat
Food Products
Products¥62–
Loss on impairment of assets �������

Total
¥62

Other

Total
–

¥62

Adjustments

Consolidated

¥186

¥248

29

(5) Information about amortisation and balance of goodwill by reportable segment
Information about amortisation and balance of goodwill by reportable segment as of and for the fiscal year ended 31st
March 2015 was as follows:
Millions of yen
Reporting segments
Processed
Meat
Food Products
Products¥182–
Amortisation of goodwill �������������
301–
Balance of goodwill ���������������������

Total

Other

¥182
301

Total
–
–

¥182
301

Adjustments

Consolidated

–
–

¥182
301

Adjustments

Consolidated––$1,515
2,505

Thousands of U.S. dollars (Note 1)
Reporting segments
Processed
Meat
Food Products
Products$1,515–
Amortisation of goodwill �������������
2,505–
Balance of goodwill ���������������������

Total

Other

$1,515
2,505

Total
–
–

$1,515
2,505

Information about amortisation and balance of goodwill by reportable segment as of and for the fiscal year ended 31st
March 2014 was as follows:
Millions of yen
Reporting segments
Processed
Meat
Food Products
Products

Amortisation of goodwill �������������
Balance of goodwill ���������������������

Total

Other

Total

Adjustments

Consolidated

¥183

–

¥183

–

¥183

–

¥183

470

–

470

–

470

–

470

16. Cash flow information
The reconciliation of cash and time deposits in the consolidated balance sheets and cash and cash equivalents in the
consolidated statements of cash flows as of 31st March 2015 and 2014 was as follows:
Thousands ofMillions of yen
U.S. dollars (Note 1)
2015
2014
2015
¥13,923¥14,898$115,880
Cash and time deposits in the consolidated balance sheets ��������������������Cash and cash equivalents in the consolidated statements of cash flows ����
¥13,923¥14,898$115,88030

17. Comprehensive income
Amounts reclassified to net income in the current period that were recognised in other comprehensive income in the current or
previous periods and the tax effects for each component of other comprehensive income were as follows:
Thousands of
U.S. dollars (Note 1)
2015

Millions of yen
2015
2014
Unrealised gains on securities
Increase during the year ��������������������������������������������������������������������
Reclassification adjustments �������������������������������������������������������������
Amount before tax effect �������������������������������������������������������������������
Tax effect �������������������������������������������������������������������������������������������
Subtotal ���������������������������������������������������������������������������������������������
Deferred gains on hedges
Increase during the year ��������������������������������������������������������������������
Amount before tax effect �������������������������������������������������������������������
Tax effect �������������������������������������������������������������������������������������������
Subtotal ���������������������������������������������������������������������������������������������
Foreign currency translation adjustments
Decrease (increase) during the year ��������������������������������������������������
Adjustments for retirement benefits
Increase during the year ��������������������������������������������������������������������
Reclassification adjustments �������������������������������������������������������������
Amount before tax effect �������������������������������������������������������������������
Tax effect �������������������������������������������������������������������������������������������
Subtotal ���������������������������������������������������������������������������������������������
Share of other comprehensive income of associates accounted for using equity method
Increase during the year ��������������������������������������������������������������������
Total other comprehensive income ���������������������������������������������������������

¥1,726
(32)
1,694
(337)
1,357

¥1,105
(450)
655
(177)
478

$14,365(266)
14,099(2,805)
11,294

12
12
(4)
8

0
0
(0)
0

100
100
(33)
67

(52)

5

(433)

976
293
1,269
(247)
1,022

–
–
–
–
–

8,123
2,439
10,562(2,056)8,506

5¥2,34013¥496

42$19,47631

Independent Auditor’s Report
To the Board of Directors of MARUDAI FOOD CO., LTD.:
We have audited the accompanying consolidated financial statements of MARUDAI FOOD CO., LTD. and its
consolidated subsidiaries, which comprise the consolidated balance sheets as at 31st March 2015 and 2014,
and the consolidated statements of income, statements of comprehensive income, statements of changes in net
assets and statements of cash flows for the years then ended, and a summary of significant accounting policies
and other explanatory information.
Management’s Responsibility for the Consolidated Financial Statements
Management is responsible for the preparation and fair presentation of these consolidated financial statementsin accordance with accounting principles generally accepted in Japan, and for such internal control as
management determines is necessary to enable the preparation of consolidated financial statements that are
free from material misstatements, whether due to fraud or error.
Auditor’s Responsibility
Our responsibility is to express an opinion on these consolidated financial statements based on our audits. We
conducted our audits in accordance with auditing standards generally accepted in Japan. Those standards
require that we comply with ethical requirements and plan and perform the audit to obtain reasonableassurance about whether the consolidated financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the
consolidated financial statements. The procedures selected depend on our judgement, including the assessmentof the risks of material misstatement of the consolidated financial statements, whether due to fraud or error. In
making those risk assessments, we consider internal control relevant to the entity’s preparation and fairpresentation of the consolidated financial statements in order to design audit procedures that are appropriate
in the circumstances, while the objective of the financial statement audit is not for the purpose of expressing
an opinion on the effectiveness of the entity’s internal control. An audit also includes evaluating theappropriateness of accounting policies used and the reasonableness of accounting estimates made bymanagement, as well as evaluating the overall presentation of the consolidated financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
audit opinion.
OpinionIn our opinion, the consolidated financial statements present fairly, in all material respects, the financial
position of MARUDAI FOOD CO., LTD. and its consolidated subsidiaries as at 31st March 2015 and 2014,
and their financial performance and cash flows for the years then ended in accordance with accounting
principles generally accepted in Japan.
Convenience Translation
The U.S. dollar amounts in the accompanying consolidated financial statements with respect to the year ended
31st March 2015 are presented solely for convenience. Our audit also included the translation of yen amounts
into U.S. dollar amounts and, in our opinion, such translation has been made on the basis described in Note 1
to the consolidated financial statements.

28th July 2015
Osaka, Japan32

DIRECTORS AND STATUTORY AUDITORS
President andRepresentative Director:

Tokuo Kudara

Senior Executive andManaging Director:

Keiichi Katoh

Managing Directors:

Yoshio Kuramori
Yasushi Sawada

Directors:

Nobuyoshi Katoh
Shigeyoshi Chiba
Wataru Fukiage
Susumu Shimadzu

Statutory Auditors:

Yoshikazu Sawanaka
Takuji OkudairaMotoaki Nishimura(As of 29th June 2015)

33

OUTLINE OF THE COMPANY
Established:

10th June 1958

Major Subsidiaries:
Hokkaido Marudai Food Co., Ltd.

Stated Capital:¥6,716 million

Tohoku Marudai Food Co., Ltd.
Shin-etsu Marudai Food Co., Ltd.

Number of Employees: 2,157

Kanto Marudai Food Co., Ltd.
Chubu Marudai Food Co., Ltd.

Head Office:21-3 Midori-cho, Takatsuki-shi,

Kansai Marudai Food Co., Ltd.

Osaka, Japan

Chu-Shikoku Marudai Food Co., Ltd.
Kyushu Marudai Food Co., Ltd.

Branch Office:4-7-5 Tsukiji, Chuou-ku, Tokyo,

Toda Foods Co., Ltd.

Japan

Azumino Food Co., Ltd.
Marushin Foods Co., Ltd.

Sales Offices:

The sales headquarters at thePioneer Foods Co., Ltd.

Company’s head office in Osaka

Umeya Co., Ltd.

controls 10 distribution centers andYahata Food Co., Ltd.

3 regional sales departments which

Hornmeier Co., Ltd.

service 48 local outlets.

Marudaifood Co., Ltd.
Marudai Meat Co., Ltd.

Plants:Hokkaido, Iwate,

Meat Supply Co., Ltd.

Niigata, Kanto,

Marbest Trading Co., Ltd.

Ibaraki, Yokosuka, Shounan,

Marudai Service Co., Ltd.

Shizuoka, Matsusaka,

Marudai Food (Qingdao) Co., Ltd.

Takatsuki, Hyogo,

12 Other subsidiaries

Okayama, Hiroshima,(As of 31st March 2015)

Karatsu
Associated Company:
Overseas Office:34

Chicago, U.S.A.

Betagro MF Deli Co., Ltd.

Head Office: 21-3 Midori-cho, Takatsuki-shi, Osaka, Japan
Telephone: 81-726-61-2518 Fax: 81-726-61-5006