Note: This is an excerpt translation of the “Yukashoken-Houkokusho” for the convenience of overseas
stakeholders. In cases where any differences occur between the English version and the original Japaneseversion, the Japanese version shall prevail. F-TECH INC. assumes no responsibility for this translation or for
direct, indirect or any other forms of damages arising from the translation.

Consolidated Financial Statements
March 31, 2017

F-TECH INC.
19, Showanuma, Shobu-cho, Kuki City, Saitama, JAPANConsolidated financial statements, etc.
(1) Consolidated financial statementsi)Consolidated balance sheets(Millions of yen)
As of March 31, 2016

As of March 31, 2017

6,831
28,930
4,779
3,942
8,069
368
4,486
57,4095,719
33,151
5,883
4,228
8,533
541
3,841
61,899AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade
Merchandise and finished goods
Work in process
Raw materials and supplies
Deferred tax assets
Other
Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures, net
Machinery, equipment and vehicles, net
Dies and tools, net
Land
Leased assets, net
Construction in progress
Other, net
Total property, plant and equipment
Intangible assets
SoftwareRight of using facilities
Other
Total intangible assets
Investments and other assets
Investment securities
Long-term loans receivable
Net defined benefit asset
Deferred tax assets
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets

*1

*1

*2

19,64829,985
1,969
6,024
809
13,423
1,549
73,410

*1

*1

*2

608
44
18
671
*3

-1-

4,880
261
34
449
862
–
6,489
80,570137,980

18,93733,374
2,313
5,978
937
11,416
1,718
74,676
468
40
–
508

*3

5,677
236
35
569
834
(17)
7,336
82,521
144,420

(Millions of yen)
As of March 31, 2016
Liabilities
Current liabilities
Notes and accounts payable - trade
Short-term loans payable
Current portion of long-term loans payable
Lease obligations
Income taxes payable
Accounts payable - otherNotes payable - facilities
Provision for directors’ bonuses
Other
Total current liabilities
Non-current liabilities
Bonds payable
Long-term loans payable
Lease obligations
Deferred tax liabilities
Provision for directors’ retirement benefits
Net defined benefit liability
Long-term accounts payable - other
Negative goodwill
Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders’ equity
Capital stock
Capital surplus
Retained earnings
Treasury shares
Total shareholders’ equity
Accumulated other comprehensive income
Valuation difference on available-for-salesecurities
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Non-controlling interests
Total net assets
Total liabilities and net assets

*4
*1

*1

-2-

18,69022,589
11,576
395
499
4,347
85
99
4,207
62,492As of March 31, 2017*4
*1

21,186
20,562
10,953
742
649
4,873
114
134
4,248
63,4654,000
18,597
485
3,369
233
954
693
72
13
28,41990,911

2,350
23,271
442
3,294
280
987
512
67
16
31,222
94,6884,790
5,419
17,512(18)
27,703

5,615
6,155
21,425(18)
33,177

618

740

1,533
(549)
1,602
17,76247,068137,980

270
(533)
477
16,07749,732
144,420

ii)

Consolidated statements of income and comprehensive income(Millions of yen)
Fiscal year ended
March 31, 2016

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating profit
Non-operating income
Interest income
Dividend income
Share of profit of entities accounted for using equity
methodOther
Total non-operating income
Non-operating expenses
Interest expenses
Foreign exchange losses
Other
Total non-operating expenses
Ordinary profit
Extraordinary income
Gain on sales of non-current assets
Gain on sales of investment securities
Total extraordinary income
Extraordinary losses
Loss on sales of non-current assets
Loss on retirement of non-current assets
Impairment loss
Total extraordinary losses
Profit before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
ProfitProfit attributable toProfit attributable to owners of parent
Profit attributable to non-controlling interests
Other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Remeasurements of defined benefit plans, net of tax
Share of other comprehensive income of entities
accounted for using equity method
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of parent
Comprehensive income attributable to non-controllinginterests*1*2, *3

196,343
173,714
22,62915,8086,821*1*2, *3

197,941
173,372
24,56916,533
8,035

55
46

55
43

437

536

192
732

230
865

883
449
38
1,371
6,182

873
770
43
1,686
7,214

*4

963
–
963

*4

42
2
44

*5

4
76
110
191
6,953
1,171
1,188
2,360
4,593

*5

6
132
153
292
6,966
1,971
(438)
1,533
5,432

*6
*7

*8

-3-

Fiscal year ended
March 31, 2017

*6
*7

2,704
1,888

4,035
1,397

(215)
(3,298)(878)

104(2,035)
32

(212)

(12)

(4,605)(11)*8(1,911)
3,521

(707)

2,910

695

610

iii) Consolidated statements of changes in net assets
Fiscal year ended March 31, 2016
(Millions of yen)
Shareholders’ equity

Balance at beginning ofcurrent period

Capital stock

Capital surplus

4,790

5,228

Retained earnings

Treasury shares

15,115(18)

Total shareholders’equity25,115

Changes of items during
periodDividends of surplus

(307)

(307)

Profit attributable toowners of parent

2,704

2,704

Purchase of treasury shares(0)Change in the parent
company’s ownershipinterest of subsidiaries due
to transactions with noncontrolling shareholders
Net changes of items otherthan shareholders’ equity

190

Total changes of items during
periodBalance at end of current
period

(0)

190

–

190

2,397

(0)

2,587

4,790

5,419

17,512(18)

27,703

Accumulated other comprehensive income
Valuationdifference on
availablefor-salesecurities
Balance at beginning ofcurrent period

858

Foreign currency Remeasurements
translationof defined benefit
adjustment
plans
4,085

338

Total
accumulated
othercomprehensive
income5,283

Non-controllinginterests

15,958

Total net assets

46,356

Changes of items during
periodDividends of surplus(307)

Profit attributable toowners of parent

2,704

Purchase of treasury shares(0)Change in the parent
company’s ownershipinterest of subsidiaries due
to transactions with noncontrolling shareholders

190

Net changes of items otherthan shareholders’ equity(240)(2,552)(888)(3,680)1,804(1,876)

Total changes of items during
period(240)(2,552)(888)(3,680)

1,804

711

Balance at end of current
period

618

1,533

(549)

1,602

17,76247,068-4-

Fiscal year ended March 31, 2017
(Millions of yen)
Shareholders’ equity

Balance at beginning of current
periodCapital stock

Capital surplus

Retained earnings

Treasury shares

Total shareholders’equity

4,790

5,419

17,512(18)

27,703825

825

Changes of items during period
Conversion of convertiblebond-type bonds with
subscription rights to shares

1,650

Dividends of surplus

(307)

(307)

Profit attributable to ownersof parent

4,035

4,035

Purchase of treasury shares–

Change in the parent
company’s ownership interestof subsidiaries due totransactions with noncontrolling shareholders

(88)

(88)

Increase (decrease) due tochange in fiscal year-end of
consolidated subsidiaries

184

184

Net changes of items otherthan shareholders’ equity
Total changes of items during
period

825

736

3,912

–

5,473

Balance at end of current period

5,615

6,155

21,425(18)

33,177

Accumulated other comprehensive income
Valuation
Total
Foreigndifference
Remeasurements accumulated Non-controllingcurrencyinterests
on availableof definedothertranslation
for-salebenefit planscomprehensive
adjustment
securities
incomeBalance at beginning of current
periodChanges of items during period
Conversion of convertiblebond-type bonds with
subscription rights to shares
Dividends of surplus
Profit attributable to ownersof parent
Purchase of treasury shares
Change in the parent
company’s ownership interestof subsidiaries due totransactions with noncontrolling shareholders
Increase (decrease) due tochange in fiscal year-end of
consolidated subsidiaries
Net changes of items otherthan shareholders’ equity
Total changes of items during
periodBalance at end of current period

618

1,533

(549)

1,602

17,762

Total net
assets

47,068

1,650
(307)
4,035
–

(88)

184
121

(1,262)16(1,124)(1,685)(2,809)121(1,262)16(1,124)(1,685)

2,663

740

270

(533)

477

16,07749,732-5-

iv)

Consolidated statements of cash flows(Millions of yen)
Fiscal year ended
March 31, 2016

Cash flows from operating activities
Profit before income taxes
Depreciation
Impairment loss
Amortization of goodwill
Loss (gain) on sales of investment securities
Increase (decrease) in assets and liabilities related toretirement benefits
Increase (decrease) in provision for directors’
retirement benefits
Increase (decrease) in provision for directors’
bonusesInterest and dividend income
Interest expenses
Foreign exchange losses (gains)Share of (profit) loss of entities accounted for using
equity method
Loss (gain) on sales of property, plant and equipment
Loss on retirement of property, plant and equipment
Decrease (increase) in notes and accounts receivable- tradeDecrease (increase) in inventories
Increase (decrease) in notes and accounts payable trade
Other, net
SubtotalInterest and dividend income received
Interest expenses paid
Income taxes paid
Net cash provided by (used in) operating activities
Cash flows from investing activities
Purchase of property, plant and equipment
Proceeds from sales of property, plant and equipment
Purchase of intangible assets
Purchase of investment securities
Proceeds from sales of investment securities
Other, net
Net cash provided by (used in) investing activities-6-

Fiscal year ended
March 31, 2017

6,953
10,081
110
(5)
–

6,966
10,334
153
(5)
(2)

(145)

34

20

47

10

35

(102)
883
356

(98)
873
157

(437)

(536)

(959)
76

(36)
132

(3,224)(4,977)(364)(2,351)

3,213

2,998

(543)
15,924137(887)(3,032)
12,140

1,953
15,677133(863)(1,702)
13,245(19,318)
1,757
(211)
(30)
55
(61)
(17,810)(12,840)
123
(174)
(158)
3
(69)
(13,116)(Millions of yen)
Fiscal year ended
March 31, 2016
Cash flows from financing activities
Net increase (decrease) in short-term loans payable
Proceeds from long-term loans payable
Repayments of long-term loans payable
Purchase of treasury shares
Proceeds from share issuance to non-controllingshareholders
Proceeds from sales and installment backs
Repayments of installment payables
Cash dividends paid
Dividends paid to non-controlling interests
Repayments of finance lease obligations
Proceeds from sales and leasebacks
Payments from changes in ownership interests in
subsidiaries that do not result in change in scope of
consolidation
Other, net
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash
equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Increase (decrease) in balance resulting from change infiscal year-end of consolidated subsidiaries
Cash and cash equivalents at end of period

*1

-7-

Fiscal year ended
March 31, 2017

4,438
10,010(11,703)(0)(2,624)
15,730(11,075)
–

1,651

–

833
(256)
(307)
(597)
(676)
400

–
(419)
(307)
(1,253)
(797)
1,086

–

(1,210)

–
3,792

0
(870)

(274)

(261)

(2,151)
8,983(1,002)
6,831

–

(110)

6,831

*1

5,719

Notes to consolidated financial statements
Basis of presentation and significant accounting policies for preparation of consolidated financial
statements
1. Basis of presentation of consolidated financial statements
The accompanying consolidated financial statements have been prepared in accordance with the provisions
set forth in the Japanese Financial Instruments and Exchange Act and its related accounting regulations, andin accordance with accounting principles generally accepted in Japan (“Japanese GAAP”), which are
different in certain respects as to the application and disclosure requirements of International Financial
Reporting Standards (“IFRS”).
As permitted by the Japanese Financial Instruments and Exchange Act, amounts less than one million yen
have been omitted. As a result, the totals shown in accompanying financial statements do not necessarily
agree with the sum of the individual amounts.
2.

Disclosure of scope of consolidation(1) Number of consolidated subsidiaries: Sixteen
F&P Mfg., Inc.
F&P America Mfg., Inc.
F.tech Philippines Mfg., Inc.
F.E.G. DE QUERETARO, S.A. DE C.V.
F.tech Zhongshan Inc.
F.tech R&D North America Inc.
F.tech Wuhan Inc.
Fukuda Engineering Co., Ltd.
Kyushu F.tech Inc.
F.tech Mfg. (Thailand) Ltd.
Reterra Co., Ltd.
F.tech R&D Philippines Inc.
F.tech R&D (Guangzhou) Inc.
F&P MFG.DE MEXICO S.A. DE C.V.
Yantai Fuyan Mould Co., Ltd.
PT. F.tech INDONESIA(2) Number of non-consolidated subsidiaries: One
Laguna Greenland Corp.
Reason for exclusion from scope of consolidation
The non-consolidated subsidiaries are small in scale and the amounts of their total assets, net sales,
profit (loss) (for the Company’s equity interest), retained earnings (for the Company’s equity
interest) and other financial statement items do not have a significant impact on the Company’s
consolidated financial statements.

3.

Disclosure about application of equity method(1) Non-consolidated subsidiaries accounted for using the equity method
Not applicable.

-8-(2) Number of associates accounted for using the equity method: FourJohnan Manufacturing Inc.
JOHNAN AMERICA, Inc.
JOHNAN F.TECH (THAILAND) LTD.
JOHNAN DE MEXICO, S.A. DE C.V.
(3) Number of non-consolidated subsidiaries not accounted for using the equity method: One
Laguna Greenland Corp.
Number of associates not accounted for using the equity method: Five
Progressive Tools & Components Pvt Ltd.
JOHNAN UK LTD.
PT. JFD INDONESIA
JOHNAN WUHAN INC.
Johnan Kyushu Manufacturing Inc.
Reason for exclusion from scope of equity method
The non-consolidated subsidiaries and associates that are not accounted for using the equity
method are excluded from the application of the equity method since such exclusion has no
significant impact on the Company’s consolidated financial statements in terms of profit (loss)(for the Company’s equity interest), retained earnings (for the Company’s equity interest) andother financial statement items, and overall they are of minor significance.
(4) The fiscal year ends of certain companies accounted for using the equity method are different fromthe consolidated fiscal year end. In preparing the consolidated financial statements, the Company
uses the financial statements of these companies as of their fiscal year end.
4.

Disclosure about fiscal years, etc. of consolidated subsidiaries
Among the consolidated subsidiaries, the fiscal year end of F.tech Philippines Mfg., Inc. and F.tech R&D
Philippines Inc. is January 31 and the fiscal year end of F.E.G. DE QUERETARO, S.A. DE C.V., F.tech
Zhongshan Inc., F.tech Wuhan Inc., Yantai Fuyan Mould Co., Ltd., F.tech R&D (Guangzhou) Inc., F&P
MFG.DE MEXICO S.A. DE C.V. and PT. F.tech INDONESIA is December 31.
In the preparation of the consolidated financial statements, the financial statements as of these dates areused. However, for major transactions that occurred between these fiscal year ends and the consolidated
fiscal year end, necessary adjustments are made in the consolidated financial statements.
In the fiscal year ended March 31, 2017, in order to achieve a more appropriate disclosure of consolidated
financial information, F.tech Mfg. (Thailand) Ltd. changed its fiscal year-end from December 31 to March
31.
As a result of this change in fiscal year-end, the Company recognized profit or loss of the relevant
consolidated subsidiary for the period between the end of the previous fiscal year and the beginning of thecurrent fiscal year directly as “Retained earnings” in the consolidated balance sheet for the fiscal year
ended March 31, 2017, and presented the amount in the consolidated statement of changes in net assets as“Increase (decrease) due to change in fiscal year-end of consolidated subsidiaries.” In addition, theCompany presented the increase (decrease) in cash and cash equivalents for the aforementioned period in
the consolidated statement of cash flows for the fiscal year ended March 31, 2017, as “Increase (decrease)in balance resulting from change in fiscal year-end of consolidated subsidiaries.”

-9-

5.

Disclosure of accounting policies(1) Accounting policy for measuring significant assetsi)Securities
Available-for-sale securities (other securities)
Securities with a fair value
Stated at fair value based on market prices on the closing date of the accounting period.
(Valuation difference is stated as a component of net assets in the consolidated balance sheets,the cost of securities sold is calculated applying the moving-average method.)
Securities without a fair value
Stated at cost determined by the moving-average method.
ii) Derivatives
Stated at fair value.
iii) Inventories
Inventories of the Company and its domestic consolidated subsidiaries are stated at cost determinedby the average cost method (balance sheet amounts are determined based on the method of writing
down book value in accordance with decreased profitability). Inventories of foreign consolidated
subsidiaries are stated at the lower of cost or market, determined by the first-in, first-out method.
(2) Accounting policy for depreciation of significant assetsi)
Property, plant and equipment (excluding leased assets)
Depreciated by the straight-line method.
ii) Intangible assets (excluding leased assets)
Amortized by the straight-line method.
Software (for internal use) is amortized by the straight-line method over the usable period in the
Company (5 years).
iii) Leased assets
Leased assets relating to finance lease transactions that do not transfer ownership are depreciated by
the straight-line method assuming the lease periods as useful lives without residual value.
(3) Accounting policy for significant provisionsi)
Allowance for doubtful accounts
To prepare for losses from bad debts, an estimated uncollectible amount is provided either bymaking an estimation using the historical rate of credit loss in the case of general receivables, orbased on individual consideration of collectability in the case of specific receivables such as highly
doubtful receivables.
ii) Provision for directors’ retirement benefits
At the Company and some subsidiaries, to prepare for the payment of directors’ retirement benefits,
the amount to be paid at the fiscal year end, based on the internal rules for directors’ retirement
benefits, is provided.
iii) Provision for directors’ bonuses
To prepare for the payment of directors’ bonuses, the amount expected to be paid at the current fiscal
year end is provided.
(4) Accounting method of retirement benefitsi)Methods of attributing estimated retirement benefits to accounting periods
When calculating retirement benefit obligations, the benefit formula method is used to attribute
estimated benefit amounts to periods of service until the fiscal year end.
ii) Amortization of actuarial gains and losses
Actuarial gains and losses are amortized beginning in the following fiscal years by the straight-line- 10 -

method over a period which is equal to or less than the average remaining service period of
employees (mainly 5 years) at the time of occurrence.
iii) Application of simplified method for small businesses
In calculating net defined benefit liability, certain consolidated subsidiaries apply the simplified
method in which the net defined benefit liability and retirement benefit costs are deemed to be theamount of retirement benefits to be paid in cases where all eligible employees retired on a voluntarybasis at the fiscal year-end date.
(5) Translation basis of significant assets and liabilities denominated in foreign currencies
Receivables and payables denominated in foreign currencies are translated into Japanese yen at the spot
exchange rates prevailing at the consolidated fiscal year end, and the translation adjustment isrecognized in the consolidated statements of income. Assets and liabilities of foreign consolidated
subsidiaries are translated into Japanese yen at the spot exchange rates as of the fiscal year end, andrevenues and expenses of foreign consolidated subsidiaries are translated into Japanese yen at the
average exchange rates. Translation adjustments are included in foreign currency translation adjustment
and non-controlling interests in net assets in the consolidated balance sheets.
(6) Accounting policy for goodwill
All goodwill and the portion of negative goodwill that was recognized on or before March 31, 2010
have been amortized by the straight-line method over periods not exceeding 20 years based on theestimated period during which their effect will be recognized for each investment.
(7) Scope of cash and cash equivalents in consolidated statements of cash flows
Cash and cash equivalents consist of cash on hand, demand deposits, and short-term investments thatare readily convertible to known amounts of cash and subject to insignificant risk of change in value
and due within three months from the date of acquisition.
(8) Other significant matters for preparing consolidated financial statements
Accounting policy for consumption taxes
Tax exclusive method is adopted.

- 11 -

Additional information
The Company and its domestic subsidiaries adopted “Revised Implementation Guidance on
Recoverability of Deferred Tax Assets” (ASBJ Guidance No. 26, March 28, 2016) from the fiscal year
ended March 31, 2017.

- 12 -

Notes to consolidated balance sheets*1. Assets pledged and liabilities secured
Assets pledged as collateral are as follows:(Millions of yen)
As of March 31, 2016

As of March 31, 2017

Buildings and structures

174

166

Land

240

240

415

407

As of March 31, 2016

As of March 31, 2017

Current portion of long-term loans payable30

17Long-term loans payable

17

–

47

17

Total

Liabilities secured are as follows:(Millions of yen)Total

*2. Accumulated depreciation of property, plant and equipment is as follows:(Millions of yen)
As of March 31, 2016

As of March 31, 2017
94,78499,278*3. Investment securities relating to non-consolidated subsidiaries and associates are as follows:(Millions of yen)
As of March 31, 2016

As of March 31, 2017

3,483

3,972

Investment securities (stocks)*4. The Group has entered into overdraft agreements and loan commitment agreements with 15 banks toefficiently raise working capital. Balance of unexecuted borrowings at end of period under these
agreements is shown below:(Millions of yen)
As of March 31, 2016

As of March 31, 2017

Total amount of overdraft facility limit and loan
commitment

40,09344,180

Balance of borrowings outstanding

21,53919,52918,55324,651Unexecuted balance- 13 -

Notes to consolidated statements of income and comprehensive income*1. The ending balance of inventories represents the amount after write-down of the book value inaccordance with the decline in profitability and the following loss (reversal) on valuation of inventories
is included in cost of sales.
(Millions of yen)
Fiscal year ended March 31, 2016

Fiscal year ended March 31, 201733

132

*2. The major items of selling, general and administrative expenses are as follows:(Millions of yen)
Fiscal year ended
March 31, 2016

Fiscal year ended
March 31, 2017

Haulage expenses

1,917

2,642

Salaries, allowance and bonuses

4,625

4,330

Retirement benefit costs

129

182

Provision for directors’ bonuses

95

126

Provision for directors’ retirement benefits

20

60

Depreciation

640

638

3,293

3,238

Research and development expenses*3. Research and development expenses included in general and administrative expenses(Millions of yen)
Fiscal year ended
March 31, 2016

Fiscal year ended
March 31, 2017
3,293

3,238

*4. The breakdown of gain on sales of non-current assets is as follows:(Millions of yen)
Fiscal year ended
March 31, 2016

Fiscal year ended
March 31, 2017

Buildings and structures

132

29

Machinery, equipment and vehicles

23

12

Land

806

–

Other

1

0

963

42

Total

*5. The breakdown of loss on sales of non-current assets is as follows:(Millions of yen)
Fiscal year ended
March 31, 2016

Fiscal year ended
March 31, 2017

Machinery, equipment and vehicles

3

5

Other

0

0

4

6

Total

- 14 -

*6. The breakdown of loss on retirement of non-current assets is as follows:(Millions of yen)
Fiscal year ended
March 31, 2016

Fiscal year ended
March 31, 2017

Buildings and structures

30

10

Machinery, equipment and vehicles

44

108

Dies and tools

0

2

Other

1

11

76

132

Total

*7. Impairment loss
For the fiscal year ended March 31, 2016, the Group recorded impairment loss on the following asset
groups:Location
Karawang, Indonesia

Use
Idle assets

TypeConstruction in progress

Amount
110 million yen

The Group’s idle assets are grouped by each asset.
The carrying amount of construction in progress as idle assets was reduced to the recoverable amount, andthe reduced amount is recorded as impairment loss in extraordinary losses.
The recoverable amount was measured based on the value in use and the carrying amount was fully
reduced to the full amount with the recoverable amount deemed as zero.
For the fiscal year ended March 31, 2017, the Group recorded impairment loss on the following asset
groups:Location

Use

Type

AmountKuki Plant(Kuki City, Saitama)

Idle assets

Machinery and equipment

36 million yen

Kuki Plant(Kuki City, Saitama)

Idle assets

Machinery and equipment

17 million yen

Ontario, Canada

Idle assets

Machinery and equipment

71 million yen

Karawang, Indonesia

Idle assets

Buildings

28 million yen

Total

153 million yen

The Group’s idle assets are grouped by each asset.
The carrying amounts of machinery and equipment, and buildings as idle assets were reduced to therecoverable amounts, and the reduced amounts are recorded as impairment loss in extraordinary losses.
The recoverable amounts were measured at the net selling prices. If the possible sale of the assets is
considered to be remote, the net selling prices are assessed as zero.

- 15 -

*8. Notes regarding reclassification adjustments and tax effects relating to other comprehensive income(Millions of yen)
Fiscal year ended
March 31, 2016

Fiscal year ended
March 31, 2017

Valuation difference on available-for-sale securities
Increase (decrease) during the period

(326)

148

Pre-adjustment of tax effect

(326)

148

Tax effect amount

110

(43)

Valuation difference on available-for-sale securities

(215)

104

(3,298)(2,035)(3,298)(2,035)

Increase (decrease) during the period

(807)

(67)

Reclassification adjustments

(80)

99

(887)

32

9

–

(878)

32

(212)

(12)

(212)

(12)

(4,605)(1,911)

Foreign currency translation adjustment
Increase (decrease) during the period
Foreign currency translation adjustment
Remeasurements of defined benefit plans, net of tax

Pre-adjustment of tax effectTax effect amountRemeasurements of defined benefit plans, net of tax
Share of other comprehensive income of entities
accounted for using equity method
Increase (decrease) during the period
Share of other comprehensive income of entities
accounted for using equity method
Total other comprehensive income- 16 -

Notes to consolidated statements of changes in net assets
Fiscal year ended March 31, 2016
1. Class and total number of issued shares and class and number of treasury shares(Thousands of shares)
Number of shares asof beginning ofcurrent fiscal year

Number of shares
increased in current
fiscal year

Number of shares
decreased in current
fiscal year

Number of shares asof end of current
fiscal year

Common shares

15,390––15,390Total

15,390––15,390Common shares

33

0

–

33

Total

33

0

–

33

Issued shares

Treasury shares(Note)

2.

The breakdown of the increase in number of treasury shares is as follows:• Increase from the purchase of treasury shares: 47 shares

Dividends(1) Cash dividends paid

Resolution

Class of shares

Total cash
dividend(Millions of yen)

Source ofdividends

Dividend pershare (Yen)Record date

Effective date

Annual General
Meeting of
Shareholders heldon June 19, 2015

Common shares

153

Retained earnings

10

March 31, 2015

June 22, 2015

Board of Directors’
meeting held on
November 5, 2015

Common shares

153

Retained earnings

10

September 30,
2015

December 1, 2015

(2) Dividends whose record dates are in the current fiscal year but whose effective dates fall in thenext fiscal year
Resolution

Class of shares

Total cash
dividend(Millions of yen)

Annual General
Meeting of
Shareholders heldon June 21, 2016

Common shares

153

Source ofdividends

Retained earnings- 17 -

Dividend pershare (Yen)10

Record date

Effective date

March 31, 2016

June 22, 2016

Fiscal year ended March 31, 2017
1. Class and total number of issued shares and class and number of treasury shares(Thousands of shares)
Number of shares asof beginning ofcurrent fiscal year

Number of shares
increased in current
fiscal year

Number of shares
decreased in current
fiscal year

Number of shares asof end of current
fiscal year

Common shares

15,3901,370–

16,760Total

15,3901,370–

16,760Common shares

33

–

–

33

Total

33

–

–

33

Issued shares

Treasury shares(Note)

2.

The breakdown of the increase in number of common shares is as follows:• Increase from the exercise of subscription rights to shares in convertible bond-type bonds with subscription rights
to shares: 1,370,425 shares

Dividends(1) Cash dividends paid

Resolution

Class of shares

Total cash
dividend(Millions of yen)

Source ofdividends

Dividend pershare (Yen)Record date

Effective date

Annual General
Meeting of
Shareholders heldon June 21, 2016

Common shares

153

Retained earnings

10

March 31, 2016

June 22, 2016

Board of Directors’
meeting held on
November 7, 2016

Common shares

153

Retained earnings

10

September 30,
2016

December 1, 2016

(2) Dividends whose record dates are in the current fiscal year but whose effective dates fall in thenext fiscal year
Resolution

Class of shares

Total cash
dividend(Millions of yen)

Annual General
Meeting of
Shareholders heldon June 23, 2017

(Note)

Common shares

284

Source ofdividends

Retained earnings

Dividend pershare (Yen)17

Record date

Effective date

March 31, 2017

June 26, 2017

A 70th anniversary commemorative dividend of 7 yen is included in the dividend per share resolved at the Annual
General Meeting of Shareholders held on June 23, 2017.

- 18 -

Notes to consolidated statements of cash flows*1. Reconciliation of ending balance of cash and cash equivalents with account balances per balance sheet(Millions of yen)
Fiscal year ended
March 31, 2016

Fiscal year ended
March 31, 2017

Cash and deposits

6,831

5,719

Cash and cash equivalents

6,831

5,719

2.

Description of significant transactions not requiring use of cash or cash equivalents(1) Assets and liabilities associated with finance lease transactions(Millions of yen)
Fiscal year ended
March 31, 2016

Assets and liabilities associated with finance leasetransactions

Fiscal year ended
March 31, 2017

517

1,141

(2) Exercise of subscription rights to shares in convertible bond-type bonds with subscription rights toshares:(Millions of yen)
Fiscal year ended
March 31, 2016

Fiscal year ended
March 31, 2017

Increase in amount of capital stock from exercise ofsubscription rights to shares–

825

Increase in amount of capital surplus from exercise ofsubscription rights to shares–

825

Decrease in amount of bonds payable from exercise ofsubscription rights to shares

–

1,650

- 19 -

Notes on leases
As lessee
1. Finance lease transactions
Finance lease transactions that do not transfer ownershipi) Leased assets
Property, plant and equipment
Production facilities:
Machinery and equipmentii) Depreciation of leased assets
Depreciation of leased assets is as stated in “5. Disclosure of accounting policies, (2) Accounting
policy for depreciation of significant assets” under “Basis of presentation and significant accounting
policies for preparation of consolidated financial statements.”
For finance lease transactions that do not transfer ownership and commenced on or before March 31,
2008, the accounting treatment follows the method applicable to ordinary rental transactions. The
detail is as shown below:(1) Acquisition cost equivalent, accumulated depreciation equivalent and net book value equivalentat end of period(Millions of yen)
As of March 31, 2016
Acquisition costequivalent

Accumulated
depreciation equivalent

Net book value
equivalent at end of
periodMachinery, equipment and vehicles

82

82

–

Other

–

–

–

Total

82

82

–
(Millions of yen)

As of March 31, 2017
Acquisition costequivalent

Accumulated
depreciation equivalent

Net book value
equivalent at end of
periodMachinery, equipment and vehicles

–

–

–

Other

–

–

–

Total

–

–

–

(Note)

The acquisition cost equivalent includes the imputed interest expense portion, since the outstanding balance of futurelease payments at end of period represented a small proportion of property, plant and equipment.

(2) Outstanding balance of future lease payments at end of period, etc.
Not applicable.
(3) Lease fees paid and depreciation equivalent during the period(Millions of yen)
Fiscal year ended
March 31, 2016

Fiscal year ended
March 31, 2017

Lease fees paid

6–

Depreciation equivalent

6–(4) Calculation method for depreciation equivalent
The straight-line method is used assuming the lease periods as useful lives without residual value.
- 20 -

2.

Operating lease transactions
Future lease payments under non-cancellable leases of operating lease transactions(Millions of yen)
As of March 31, 2016

As of March 31, 2017

Due within one year

161

158

Due over one year

170

169

Total

332

328

- 21 -

Notes on financial instruments
1. Overview of financial instruments(1) Policy on treatment of financial instruments
The Group raises necessary funds (mainly loans from banks and issuance of corporate bonds)
according to the capital expenditure plan to conduct the auto parts related business consisting of the
manufacture and sale of auto parts and dies, equipment, tools, etc. for these parts. The Group utilizes
derivatives to hedge its exposure to risks described below and adheres to a policy of not conducting
derivative transactions for speculative purposes.
(2) Financial instruments and related risks
Notes and accounts receivable - trade that are operating receivables are exposed to the credit risk ofcustomers. Although operating receivables denominated in foreign currencies, which arise fromintercompany transactions due to the globally developed businesses, are exposed to the risk offluctuations in exchange rates, forward exchange contracts are used to hedge this risk. Investment
securities are principally stocks related to business activities or capital alliances with business partners
and exposed to the risk of fluctuations in market prices. Long-term loans receivable are intercompany
loans and exposed to the credit risk of the borrowers.
Notes and accounts payable - trade that are operating payable and accounts payable - other are due
within one year. Some of these payables are denominated in foreign currencies due to import ofmaterials, etc. and exposed to the risk of fluctuations in exchange rates, however they are within therange of the outstanding balance of accounts payable - trade denominated in the same foreign currency
on a permanent basis. Loans payable, bonds payable and lease obligations on finance leases are
principally for procuring funds needed for capital expenditure and due for repayment within up to eight
years after the fiscal year end.
Derivative transaction is forward exchange contracts to hedge the foreign currency risk on operatingreceivables arising from intercompany transactions.
(3) Risk management system for financial instrumentsi)Management of credit risk (customers’ default risk)
For operating receivables, the Company conducts maturity management and balance management by
counterparty through periodical monitoring of major business partners’ status in the operation
division and the management division of each department in accordance with the internal rules onsales management, and endeavors to quickly determine and mitigate any concern on the collection ofreceivables due to deteriorated financial conditions. Consolidated subsidiaries also manage operatingreceivables in the same manner in accordance with the Company’s internal rules on sales
management. For long-term loans receivable, the Company periodically monitors the status ofborrowers to quickly determine and mitigate any concern on the collection of loans due to theirdeteriorated financial condition and other factors.
ii) Management of market risk (fluctuation risk of foreign currency exchange and interest rates, etc.)
The Company and some consolidated subsidiaries utilize forward exchange contracts in principle tohedge the foreign currency exchange rate fluctuation risk by currency on a monthly basis for
operating receivables arising from intercompany transactions. Depending on the status of foreignexchange rates, forward exchange contracts are entered into for a maximum of 12 months in relation
to operating receivables denominated in foreign currencies that are certainly expected to arise fromforecast royalty transactions.
For investment securities, the Company periodically assesses market value and financial conditionsof issuers (business partners).
For derivative transactions, the Company assesses the positions to conduct hedge transactions on amonthly basis under the hedge policy of the funds and foreign exchange conference, in accordancewith the internal rules on foreign exchange risks which stipulate transaction authority, limit amounts
and other matters. Based on this assessment, the accounting department conducts transactions, andrecords information on the transaction and checks balances with counterparties.
- 22 -

iii) Management of liquidity risk associated with fund raising (risk of inability to pay on due date)
The Company’s accounting department prepares and updates financial plans annually and monthly
based on reports from each department.
(4) Supplementary explanation concerning fair values of financial instruments
Fair values of financial instruments comprise of values based on market prices and reasonably
measured values where market prices are unavailable. As several variable factors are incorporated in
calculating the relevant fair value, the resulting amount may vary depending on the different
preconditions employed.
(5) Concentration of credit risks
As of March 31, 2017, 62.4% of operating receivables were associated with the major customers.

- 23 -

2. Fair values of financial instruments
Carrying amounts on the consolidated balance sheets, fair values and differences therebetween of thefinancial instruments are shown below. However, financial instruments whose fair values are deemed to
be extremely difficult to determine are not included therein (Please refer to Note 2 below).
As of March 31, 2016
(Millions of yen)
Carrying amount on
the consolidatedbalance sheet

Fair value

Difference(1) Cash and deposits

6,831

6,831

–

(2) Notes and accounts receivable - trade28,93028,930

–

1,170

1,170

–

261

261

0

(5) Notes and accounts payable - trade

18,69018,690–(6) Accounts payable - other

4,347

4,347

–

(7) Short-term loans payable

22,58922,589–(8) Bonds payable

4,000

4,150

150

(9) Long-term loans payable (*1)

30,17430,22147(10) Lease obligations (*2)

880

898

17

(11) Derivatives (*3)

43

43

–

(3) Investment securities
Available-for-sale securities (other securities)(4) Long-term loans receivable(*1) Current portion of long-term loans payable in current liabilities is included.
(*2) The total amount of lease obligations in current liabilities and lease obligations in non-current liabilities is presented.
(*3) Claims and obligations arising from derivative transactions are presented on a net basis.

As of March 31, 2017
(Millions of yen)
Carrying amount on
the consolidatedbalance sheet

Fair value

Difference(1) Cash and deposits

5,719

5,719

–

(2) Notes and accounts receivable - trade33,151

33,151

–

1,351

1,351

–

236

237

1

(5) Notes and accounts payable - trade21,18621,186–(6) Accounts payable - other

4,579

4,579

–

(7) Short-term loans payable

20,562

20,562–(8) Bonds payable

2,350

2,774

424

(9) Long-term loans payable (*1)

34,225

34,154(71)(10) Lease obligations (*2)

1,184

1,192

7

806

753

(52)

2

2

–

(3) Investment securities
Available-for-sale securities (other securities)(4) Long-term loans receivable(11) Long-term accounts payable - other (installment) (*3)(12) Derivatives (*4)(*1) Current portion of long-term loans payable in current liabilities is included.
(*2) The total amount of lease obligations in current liabilities and lease obligations in non-current liabilities is presented.
(*3) Current portion of long-term accounts payable - other (installment) included in accounts payable - other in current- 24 -

liabilities is included.
(*4) Claims and obligations arising from derivative transactions are presented on a net basis.
(Notes) 1. Measurement method of fair values of financial instruments and matters concerning securities and derivatives(1) Cash and deposits and (2) Notes and accounts receivable - trade
The fair value of these assets is based on the book value, given that the fair value is almost the same as thebook value, as they are settled in a short period.
(3) Investment securities
The fair value of stocks with fair value is based on the quoted market price.
(4) Long-term loans receivable
The fair value of long-term loans receivable is calculated based on the present value of future cash flows(principal and interest) discounted using the assumed interest rate of similar new borrowings.
(5) Notes and accounts payable - trade, (6) Accounts payable - other and (7) Short-term loans payable
The fair value of these liabilities is based on the book value, given that the fair value is almost the same as thebook value, as they are settled in a short period.
(8) Bonds payable
The fair value of bonds payable issued by the Company is calculated based on market prices.
(9) Long-term loans payable, (10) Lease obligations and (11) Long-term accounts payable - other (installment)
The fair values of long-term loans payable with fixed interest rates, lease obligations and long-term accounts
payable - other (installment) are calculated by discounting the total amount of principal and interest at theassumed interest rate of similar new borrowings, lease contracts and installment payment contracts. Since longterm loans payable with floating interest rates reflect market interest rates within a short period, the fair value isapproximately the same as the book value and thus presented at the book value.
(12) Derivatives
The fair value of derivatives is based on the prices presented by the financial institution with which the contract
has been made. These derivatives are forward exchange contracts to hedge the exchange rate fluctuation risk on
operating receivables denominated in foreign currencies.
2. Financial instruments whose fair values are deemed to be extremely difficult to determine(Millions of yen)Classification

As of March 31, 2016

As of March 31, 2017

3,483

3,972

226

352

3,710

4,325

Non-listed shares
Shares of subsidiaries and associates
Other
Total
(Note)

The above are not included in “(3) Investment securities” above because their market prices are notavailable and the future cash flows cannot be estimated reliably, and thus their fair values are deemed
extremely difficult to determine.

3. Redemption schedule for monetary receivables after the fiscal year end
As of March 31, 2016
(Millions of yen)
Due within one
year

Due after one
Due after five
year through five years through ten
years
years

Due over ten
years

Cash and deposits

6,831

–

–

–

Notes and accounts receivable - trade28,930

–

–

–

–

–

72

188

35,762–

72

188

Long-term loans receivable
Total- 25 -

As of March 31, 2017
(Millions of yen)
Due within one
year

Due after one
Due after five
year through five years through ten
years
years

Due over ten
years

Cash and deposits

5,719

–

–

–

Notes and accounts receivable - trade33,151

–

–

–

–

–

65

171

38,870–65

171Long-term loans receivable
Total

4. Repayment schedule for bonds payable, long-term loans payable, lease obligations and other interest-bearing debts
As of March 31, 2016
(Millions of yen)
Due within one
year
Short-term loans payable
Bonds payable
Long-term loans payable
Lease obligations
Total

Due after one
Due after five
year through five years through ten
years
years

Due over ten
years

22,589

–

–

–

–

4,000

–

–

11,576

18,531

65

–

395

484

1

–

34,56223,01566–

As of March 31, 2017
(Millions of yen)
Due within one
year
Short-term loans payable

Due after one
Due after five
year through five years through ten
years
years

Due over ten
years

20,562

–

–

–

–

2,350

–

–

10,95323,22051–

Lease obligations

742

442

–

–

Long-term accounts payable - other(installment)

293

512

–

–

Total

32,552

26,52551–

Bonds payable
Long-term loans payable- 26 -

Notes on securities
1. Available-for-sale securities (other securities)
As of March 31, 2016
(Millions of yen)Type

Items whose carrying
amount on the consolidatedbalance sheet exceeds
original purchase price
Items whose carrying
amount on the consolidatedbalance sheet does notexceed original purchase
price

Carrying amount on
the consolidatedbalance sheet

Difference(1) Shares

1,156

591

564

(2) Bonds–––(3) Other

–

–

–

1,156

591

564

(1) Shares

13

18

(4)

(2) Bonds–––(3) Other

–

–

–

13

18

(4)

1,170

609

560

Subtotal

Subtotal

Total(Note)

Original purchasepriceNon-listed shares (carrying amount on the consolidated balance sheet: 226 million yen) are not included in“Available-for-sale securities (other securities)” above because their market prices are not available and their fairvalues are deemed extremely difficult to determine.

As of March 31, 2017
(Millions of yen)Type

Items whose carrying
amount on the consolidatedbalance sheet exceeds
original purchase price
Items whose carrying
amount on the consolidatedbalance sheet does notexceed original purchase
price

Carrying amount on
the consolidatedbalance sheet

Difference(1) Shares

1,346

637

709

(2) Bonds–––(3) Other

–

–

–

1,346

637

709

(1) Shares

4

4

(0)

(2) Bonds–––(3) Other

–

–

–

4

4

(0)

1,351

641

709

Subtotal

Subtotal

Total(Note)

Original purchasepriceNon-listed shares (carrying amount on the consolidated balance sheet: 352 million yen) are not included in“Available-for-sale securities (other securities)” above because their market prices are not available and their fairvalues are deemed extremely difficult to determine.

- 27 -

2.

Available-for-sale securities (other securities) sold
As of March 31, 2016
(Millions of yen)Type

Amount soldTotal gain on sales

Total loss on sales(1) Shares

55

–

–

(2) Bonds–––(3) Other

–

–

–

Total

55

–

–

As of March 31, 2017
(Millions of yen)Type

Amount soldTotal gain on sales

Total loss on sales(1) Shares

3

2

–

(2) Bonds–––(3) Other

–

–

–

Total

3

2

–

- 28 -

Notes on derivatives
1. Derivative transactions to which hedge accounting is not applied(1) Foreign currency
As of March 31, 2016
(Millions of yen)
As of March 31, 2016
Classification

Type of transaction

Contract/notionalamountPortion ofcontract/notionalamount over one
year

Fair value

Valuation gain
(loss)

Forward exchange
contracts
Transactions otherthan market
transactions

Sell
U.S. dollar

1,057

–

43

43

Canadian dollar

–

–

–

–

Thai Baht

60

–

(0)

(0)

1,118

–

43

43

Total
(Note)

Measurement method for fair values
Fair values are calculated based on price presented by counterparty financial institutions, etc.

As of March 31, 2017
(Millions of yen)
As of March 31, 2017Classification

Type of transaction

Contract/notionalamountPortion ofcontract/notionalamount over one
year

Fair value

Valuation gain
(loss)

Forward exchange
contracts
Transactions otherthan market
transactions

Sell
U.S. dollar
Euro
Canadian dollar
Thai Baht
Total(Note)

1,318

–

(14)

(14)

45

–

0

0

1,228

–

20

20

45

–

(3)

(3)

2,636

–

2

2

Measurement method for fair values
Fair values are calculated based on price presented by counterparty financial institutions, etc.

(2) Interest rate
As of March 31, 2016
Not applicable.
As of March 31, 2017
Not applicable.

- 29 -

2.

Derivative transactions to which hedge accounting is applied(1) Foreign currency
As of March 31, 2016
Not applicable.
As of March 31, 2017
Not applicable.
(2) Interest rate
As of March 31, 2016
Not applicable.
As of March 31, 2017
Not applicable.

- 30 -

Notes on retirement benefits
1. Summary of retirement benefit plans adopted
The Company has established an employees’ pension fund plan and a constitution-based defined
benefit corporate pension plan. Some domestic consolidated subsidiaries have established constitutionbased defined benefit corporate pension plans and lump-sum retirement benefit plans. Some foreign
consolidated subsidiaries have established defined benefit plans or the defined contribution plans.
Some consolidated subsidiaries apply simplified methods in calculating retirement benefit obligations.
As for the employees’ pension fund plan, the Company has participated in the Social Welfare Pension
Fund of Nippon Sheet Metal Presswork (multi-employer contributory pension plans) since 1970. The
Social Welfare Pension Fund of Nippon Sheet Metal Presswork would request an increased burden on
members, such as through increased member contributions, for its survival following recent changes in
Employees’ Pension Insurance Act. Based on the conclusion that it is difficult to continue its operation,
ordinary dissolution of the fund was resolved at a meeting of its board of representatives held on
August 4, 2014. The Minister of Health, Labour and Welfare approved dissolution on September 29,
2016, and as of the current consolidated fiscal year end, the liquidation process is underway. Moreover,no additional cost arising from the dissolution of the fund is expected. With this dissolution, theCompany has changed its employees’ pension fund plan to JMSA Welfare Pension Fund (multiemployer contributory pension plans) in October 2016.
Because the Company cannot reasonably calculate the amount of plan assets in terms of its
contributions for these multi-employer contributory pension plans, retirement benefit obligations forthese plans are accounted for in the same manner as a defined contribution plan.
2.

Defined benefit plans(1) Reconciliation between the balance at beginning of period and the balance at end of period ofretirement benefit obligations (excluding plans to which the simplified method was applied)(Millions of yen)
Fiscal year ended
March 31, 2016

Fiscal year ended
March 31, 2017

5,296

6,199

Service cost

373

442

Interest cost

62

18

Actuarial loss (gain)676

7

Benefits paid

(183)

(220)

Other

(25)

(27)

6,199

6,419

Balance at beginning of period

Balance at end of period(2) Reconciliation between the balance at beginning of period and the balance at end of period of plan
assets (excluding plans to which the simplified method was applied)(Millions of yen)
Fiscal year ended
March 31, 2016

Fiscal year ended
March 31, 2017

5,209

5,376

Expected return on plan assets

103

111

Actuarial loss (gain)

(103)

(60)

Contributions paid by the employer

358

363

Benefits paid

(181)

(215)

(8)

(16)

5,376

5,560

Balance at beginning of period

Other
Balance at end of period- 31 -

(3) Reconciliation between the balance at beginning of period and the balance at end of period of net
defined benefit liability for plans to which the simplified method was applied(Millions of yen)
Fiscal year ended
March 31, 2016

Fiscal year ended
March 31, 20179396

Benefit costs

22

26

Benefits paid

(8)

(20)

Contributions paid by the employer

(10)

(9)

96

92

Balance at beginning of period

Balance at end of period(4) Reconciliation between the balances at end of period of retirement benefit obligations and plan
assets, and net defined benefit liability and net defined benefit asset recorded in the consolidatedbalance sheet(Millions of yen)
As of March 31, 2016

As of March 31, 2017

Funded retirement benefit obligations

6,250

6,395

Plan assets(5,476)(5,668)773

726

Unfunded retirement benefit obligations

146

224

Total net liability (asset) for retirement benefits

919

951

Net defined benefit liability

954

987

Net defined benefit asset

(34)

(35)

Total net liability (asset) for retirement benefits

919

951

Fiscal year ended
March 31, 2016

Fiscal year ended
March 31, 2017

Service cost

373

442

Interest cost

62

18

Expected return on plan assets

(103)

(111)

Net actuarial loss amortization

(107)

99

22

26

247

474

(Note)

Includes plans to which simplified methods were applied.

(5) Retirement benefit costs(Millions of yen)

Retirement benefit costs calculated using simplified
methods
Total- 32 -

(6) Remeasurements of defined benefit plans, net of tax
The breakdown of the items recorded in remeasurements of defined benefit plans, net of tax (before
deducting tax effect) in the consolidated statement of income and comprehensive income is asfollows:(Millions of yen)
Fiscal year ended
March 31, 2016

Fiscal year ended
March 31, 2017

(887)

32

(887)

32

Actuarial gains and losses
Total(7) Remeasurements of defined benefit plans
The breakdown of the items recorded in remeasurements of defined benefit plans (before deducting
tax effect) in accumulated other comprehensive income in the consolidated balance sheet is asfollows:(Millions of yen)
Fiscal year ended
March 31, 2016

Fiscal year ended
March 31, 2017

(551)

(519)

(551)

(519)

Actuarial gains and losses that are yet to be recognized
Total(8) Plan assetsi)
Breakdown of major categories of plan assets
The ratio of major categories to total plan assets is as follows:
As of March 31, 2016
Bonds

26.1%

26.8%

Equity securities

10.4

11.0

General account

57.1

57.4

Other

6.4

4.8

100.0

100.0

Total

ii)

As of March 31, 2017

Method to determine rate of expected long-term return
The rate of expected long-term return is determined in consideration of the present and expectedasset mix and the present and expected long-term return rate on the various assets that comprisethe plan assets.

(9) Actuarial assumptions
Major bases for actuarial calculations at end of period
As of March 31, 2016

As of March 31, 2017

Discount rate

0.1%

0.1%

Long-term expected rate of return

2.0%

2.0%

Expected rate of salary increase

3.0%

3.0%

- 33 -

3.

Defined contribution plan
The required contribution amount to defined contribution plans (including employees’ pension fundplan in multi-employer contributory pension plans which is accounted for in the same manner) was 387
million yen in the previous fiscal year and 367 million yen in the current fiscal year.

4.

Multi-employer contributory pension plans
The required contribution amount to the multi-employer contributory pension plan-type employees’
pension fund plan, which is accounted for in the same manner as a defined contribution plan, anddefined benefit plans was 189 million yen in the previous fiscal year and 189 million yen in the current
fiscal year for Social Welfare Pension Fund of Nippon Sheet Metal Presswork, and 22 million yen in
the current fiscal year for JMSA Welfare Pension Fund.
(1) Latest funding position of the multi-employer contributory pension plansi) Social Welfare Pension Fund of Nippon Sheet Metal Presswork(Millions of yen)Previous fiscal year
Current fiscal year
(As of March 31, 2015) (As of March 31, 2016)
Amount of plan assets

76,331

70,886

Total of actuarial benefit obligations for the purpose ofpension financing calculation and minimum reserve

75,03270,409Difference

1,299

476

ii) JMSA Welfare Pension Fund(Millions of yen)
Current fiscal year
(As of March 31, 2017)

Amount of plan assets

540

Amount of reserve for the purpose of pension financing
calculation

622

Difference(81)(2) Ratio of the Group’s members to the entire plani) Social Welfare Pension Fund of Nippon Sheet Metal Presswork
Previous fiscal year
6.9% (As of March 31, 2015)
Current fiscal year
5.9% (As of March 31, 2016)ii) JMSA Welfare Pension Fund
Current fiscal year
16.3% (As of March 31, 2017)(3) Supplementary explanation
The main reasons for the difference in (1) above are 1,299 million yen and 476 million yen of
surplus carried-forward in the previous fiscal year and in the current fiscal year, respectively, by theSocial Welfare Pension Fund of Nippon Sheet Metal Presswork, and 581 million yen of past service
liabilities for the purpose of pension financing calculation and 662 million yen of deficiency carriedforward in the current fiscal year by JMSA Welfare Pension Fund.
Under Social Welfare Pension Fund of Nippon Sheet Metal Presswork, past service liabilities areamortized over 20 years using the equal repayment method. Under JMSA Welfare Pension Fund,
past service liabilities are amortized over 6 years and 2 months using the equal repayment method.
The ratio in (2) above is different from the ratio of the Group’s actual contributions.

- 34 -

Notes on share options, etc.
Not applicable.

- 35 -

Notes on tax effect accounting
1. Breakdown of deferred tax assets and deferred tax liabilities by major component
As of March 31, 2016

(Millions of yen)
As of March 31, 2017

Deferred tax assets
Tax loss carry forwards

2,669

2,416

Elimination of unrealized gains on non-current assets

1,213

1,010

Excess depreciation

574

567

Impairment loss

575

538

Accrued bonuses

314

284

Loss on valuation of inventories

169

210

Net defined benefit liability

119

115

Other

339

498

Deferred tax assets subtotal

5,976

5,642

Valuation allowance(5,068)(4,140)

907

1,502

Depreciation (foreign consolidated subsidiaries)(3,301)(3,318)Valuation difference on available-for-sale securities

(170)

(213)

Net defined benefit asset

(9)

(10)

Other

(20)

(142)

Total deferred tax liabilities(3,502)(3,685)Net deferred tax assets (liabilities)(2,595)(2,183)

Total deferred tax assets
Deferred tax liabilities(Note)Net deferred tax assets (liabilities) as of March 31, 2016 and March 31, 2017 are included in the following
items in the consolidated balance sheets.
(Millions of yen)
As of March 31, 2016
As of March 31, 2017

Current assets – Deferred tax assets

368

541

Non-current assets – Deferred tax assets

449

569

Current liabilities – Other

(43)

–

(3,369)(3,294)Non-current liabilities – Deferred tax liabilities- 36 -

2.

Reconciliation of significant difference between statutory income tax rate and effective income tax rate
after application of tax effect accounting
As of March 31, 2016

As of March 31, 2017

32.5%

30.3%

1.6

(10.8)–

6.0

Tax rate differences in foreign consolidated subsidiaries

(5.0)

(4.4)

Share of profit (loss) of entities accounted for using equity
method

(2.0)

(2.3)

Expenses not deductible permanently such as entertainment
expenses

1.1

1.9

Inhabitant per capita tax

0.2

0.2

Foreign withholding tax

3.6–

Income taxes for prior periods

1.1

–

Other

0.8

1.1

Effective income tax rate after application of tax effectaccounting

33.9

22.0

Statutory income tax rate
(Adjustments)
Change in valuation allowance
Foreign tax credit- 37 -

Notes on business combinations
Transactions under common control, etc.
1. Acquisition of additional shares of a subsidiary(1) Outline of transactioni)Name of a company involved in business combination and nature of its business
Name of a company involved in business combination:
F.tech Wuhan Inc. (Consolidated subsidiary of the Company)
Nature of business:
Manufacture and sale of auto partsii) Date of business combination
June 30, 2016 (deemed acquisition date)iii) Legal form of business combination
Acquisition of shares from non-controlling shareholdersiv) Name of company after business combination
No change was made.
v) Other items regarding outline of transaction
The Company underwrote the acquisition of shares from non-controlling shareholders for the
purpose of further strengthening the capital ties as well as stabilizing and strengthening themanagement of the Group.
(2) Outline of accounting treatment applied
The transaction was accounted for as transactions with non-controlling shareholders categorizedunder transactions under common control, etc. in accordance with the Accounting Standard forBusiness Combinations (ASBJ Statement No. 21, September 13, 2013) and the Guidance on
Accounting Standard for Business Combinations and Accounting Standard for Business
Divestitures (ASBJ Guidance No. 10, September 13, 2013).
(3) Matters concerning acquisition of additional shares of a subsidiary
Acquisition cost of the acquired company and breakdown thereof by consideration type
Consideration for acquisition
Cash and deposits
403 million yen(4) Matters concerning change in the parent company’s ownership interest of subsidiaries due totransactions with non-controlling shareholdersi)
Major factor of change in capital surplus
The change in capital surplus is attributable to the difference between the acquisition cost for
the additional shares by the Company and the amount of decrease in non-controlling interests
due to the additional acquisition by the Company.
ii) Amount of capital surplus decreased by transactions with non-controlling shareholders
9 million yen- 38 -

2.

Acquisition of additional shares of a subsidiary(1) Outline of transactioni)Name of a company involved in business combination and nature of its business
Name of a company involved in business combination:
F.tech Mfg. (Thailand) Ltd. (Consolidated subsidiary of the Company)
Nature of business:
Manufacture and sale of auto partsii) Date of business combination
September 30, 2016 (deemed acquisition date)iii) Legal form of business combination
Acquisition of shares from non-controlling shareholdersiv) Name of company after business combination
No change was made.
v) Other items regarding outline of transaction
The Company underwrote the acquisition of shares from non-controlling shareholders for the
purpose of further strengthening the capital ties as well as stabilizing and strengthening themanagement of the Group.
(2) Outline of accounting treatment applied
The transaction was accounted for as transactions with non-controlling shareholders categorizedunder transactions under common control, etc. in accordance with the Accounting Standard forBusiness Combinations (ASBJ Statement No. 21, September 13, 2013) and the Guidance on
Accounting Standard for Business Combinations and Accounting Standard for Business
Divestitures (ASBJ Guidance No. 10, September 13, 2013).
(3) Matters concerning acquisition of additional shares of a subsidiary
Acquisition cost of the acquired company and breakdown thereof by consideration type
Consideration for acquisition
Cash and deposits
806 million yen(4) Matters concerning change in the parent company’s ownership interest of subsidiaries due totransactions with non-controlling shareholdersi)
Major factor of change in capital surplus
The change in capital surplus is attributable to the difference between the acquisition cost for
the additional shares by the Company and the amount of decrease in non-controlling interests
due to the additional acquisition by the Company.
ii) Amount of capital surplus decreased by transactions with non-controlling shareholders
78 million yen- 39 -

Notes on asset retirement obligations
Not applicable.
Notes on real estate for lease, etc.
The Company and a subsidiary own rental properties and idle properties in Saitama Prefecture and otherareas.
In the current fiscal year, net rental revenue from the rental properties amounted to 27 million yen (rental
revenue was recorded in non-operating income). Carrying amount on the consolidated balance sheet,increase (decrease) in the current fiscal year and fair value of these real estate properties for lease, etc. are
as follows:(Millions of yen)
Fiscal year ended
March 31, 2016

Fiscal year ended
March 31, 2017

Carrying amount on the consolidatedbalance sheet
Balance at beginning of period

1,465

1,308

Increase (decrease) during period

(156)

(51)

Balance at end of period

1,308

1,257

1,585

1,496

Fair value at end of period(Notes) 1. Carrying amount on the consolidated balance sheet is calculated by subtracting accumulated depreciation andimpairment loss from acquisition cost.
2. The increase (decrease) during the fiscal year ended March 31, 2017 includes a decrease due to foreign
currency translation difference (51 million yen).
3. Fair values at end of period are based on certain appraisal value and indicators that are considered toappropriately reflect market prices.

- 40 -

Segment information, etc.
Segment information
1. Description of reportable segments
The reportable segments of the Company are components for which discrete financial information isavailable and whose operating results are regularly reviewed by the Board of Directors to makedecisions about resource allocation and assess their performance.
The Company is engaged in the manufacture and sale of auto parts. As of the end of the current fiscal
year, four companies including the Company in Japan as well as five local corporations in North
America and eight local corporations in Asia each conduct the business operations. These local
corporations, which are independent management units, formulate comprehensive strategies anddevelop business activities in each area.
For this reason, the Company consists of regional segments based on the manufacturing and sales
systems and has three reportable segments, namely Japan, North America and Asia.
2.

Explanation of measurements of net sales, profit (loss), assets, liabilities, and other items for eachreportable segment
The accounting procedures for reportable segments are consistent with those stated in “Basis ofpresentation and significant accounting policies for preparation of consolidated financial statements.”
Profit of reportable segments is based on operating profit (before amortization of goodwill).
Transactions with other segments are based on prevailing market prices.

3.

Disclosure of net sales, profit (loss), assets, liabilities, and other items for each reportable segment
Fiscal year ended March 31, 2016
(Millions of yen)
Reportable segments
Japan

North America

Total

Asia

Net sales
Net sales to external customers

22,016

124,953

49,372

196,343

Transactions with other segments

16,535

1,718

2,037

20,291

Total

38,552

126,671

51,410216,635

Segment profit

381

4,675

2,069

7,126

Segment assets

57,39367,86540,306

165,564

Depreciation

2,474

4,475

3,549

10,500Investments in entities accounted forusing equity method

3,089

259

–

3,348

Increase in property, plant andequipment and intangible assets

3,340

13,507

4,691

21,539Other items- 41 -

Fiscal year ended March 31, 2017
(Millions of yen)
Reportable segments
Japan

North America

Total

Asia

Net sales
Net sales to external customers

25,229120,433

52,279197,941

Transactions with other segments

14,713

1,774

3,050

19,538

Total

39,943

122,207

55,329217,480

Segment profit

958

2,928

3,868

7,754

Segment assets

56,43872,614

41,257

170,310Depreciation

2,771

4,523

3,526

10,821

Investments in entities accounted forusing equity method

3,560

276

–

3,837

Increase in property, plant andequipment and intangible assets

3,839

6,623

3,861

14,323

Other items

4.

Differences between total amounts for reportable segments and amounts in the consolidated financial
statements and main details of these differences (matters relating to difference adjustments)(Millions of yen)
Fiscal year ended
March 31, 2016

Net sales

Fiscal year ended
March 31, 2017

Reportable segments total

216,635

217,480

Elimination of intersegment transactions(20,291)(19,538)

Net sales in the consolidated financial statements

196,343

197,941(Millions of yen)

Fiscal year ended
March 31, 2016

ProfitFiscal year ended
March 31, 2017

Reportable segments total

7,126

7,754

Elimination of intersegment transactions

(305)

281

Operating profit in the consolidated financial statements

6,821

8,035
(Millions of yen)

Fiscal year ended
March 31, 2016

AssetsFiscal year ended
March 31, 2017

Reportable segments total

165,564

170,310

Elimination of intersegment transactions(27,571)(25,878)

(12)

(11)

137,980

144,420

Other adjustments
Total assets in the consolidated financial statements- 42 -

(Millions of yen)
Reportable segments total
Other items

Amount recorded in the
consolidated balance sheet

Adjustments

Fiscal year
Fiscal year
Fiscal year
Fiscal year
Fiscal year
ended March ended March ended March ended March ended March
31, 2016
31, 2017
31, 2016
31, 2017
31, 2016

Fiscal year
ended March
31, 2017

Depreciation

10,50010,821

(419)

(486)

10,081

10,334

Investments in entities
accounted for using equity
method

3,348

3,837

–

–

3,348

3,837

Increase in property, plantand equipment andintangible assets

21,53914,323

(960)

(230)

20,57814,093(Note)

Adjustments of increase in property, plant and equipment and intangible assets are the effect of intersegment
consolidation adjustments.

- 43 -

Information associated with reportable segments
Fiscal year ended March 31, 2016
1. Information by product or service
This information has been omitted as net sales to external customers in a single product or service
category account for more than 90% of net sales recorded in the consolidated statements of income.
2.

Information by geographical region(1) Net salesJapan
21,126(Note)U.S.A.

(Millions of yen)Canada73,449China

44,718Other

38,464

Total

18,585Net sales are segmented by country or region based on customer locations.

(2) Property, plant and equipment
Japan
18,342

3.

196,343(Millions of yen)

U.S.A.

Canada17,722

China

12,466

Other

12,363

Total

12,514

Information for major customers

73,410(Millions of yen)Counterparty

Revenues

Honda Motor Co., Ltd. and its group companies

Relevant segment

152,435

All reportable segments

Fiscal year ended March 31, 2017
1. Information by product or service
This information has been omitted as net sales to external customers in a single product or service
category account for more than 90% of net sales recorded in the consolidated statements of income.
2.

Information by geographical region(1) Net salesJapan
24,116(Note)U.S.A.

(Millions of yen)Canada65,584

China

48,269Other

39,464

Total

20,507

Net sales are segmented by country or region based on customer locations.

(2) Property, plant and equipment
Japan
16,803

3.

197,941

U.S.A.

(Millions of yen)Canada17,859China

13,495

Mexico12,077

7,710

Information for major customers

Other

Total

6,729

74,676(Millions of yen)Counterparty

Revenues

Relevant segment

Honda Motor Co., Ltd. and its group companies

149,738

All reportable segments

General Motors Company and its group companies

23,682All reportable segments- 44 -

Disclosure of impairment loss on non-current assets for each reportable segment
Fiscal year ended March 31, 2016
(Millions of yen)Japan

North America

Impairment loss–

Unallocatedamounts andelimination

Asia

–

110

Total

–

110

Fiscal year ended March 31, 2017
(Millions of yen)Japan
Impairment loss

North America
53

Unallocatedamounts andelimination

Asia

71

28

Total

–

153

Amortization and unamortized balance of goodwill for each reportable segment
Fiscal year ended March 31, 2016
(Millions of yen)Japan

North America

Unallocatedamounts andelimination

Asia

Total

Amortization during
period

–

0

–

–

0

Balance at end of
period

–

12

–

–

12

Amortization and unamortized balance of negative goodwill in accordance with businesscombinations that took effect before April 1, 2010 are as follows:(Millions of yen)Japan

North America

Unallocatedamounts andelimination

Asia

Total

Amortization during
period

1

1

3

–

6

Balance at end of
period

21

21

42

–

85

Fiscal year ended March 31, 2017
(Millions of yen)Japan

North America

Unallocatedamounts andelimination

Asia

Total

Amortization during
period

–

0

–

–

0

Balance at end of
period

–

11

–

–

11

- 45 -

Amortization and unamortized balance of negative goodwill in accordance with businesscombinations that took effect before April 1, 2010 are as follows:(Millions of yen)Japan

North America

Unallocatedamounts andelimination

Asia

Total

Amortization during
period

1

1

3

–

6

Balance at end of
period

19

20

39

–

79

Information about gain on bargain purchase for each reportable segment
Fiscal year ended March 31, 2016
Not applicable.
Fiscal year ended March 31, 2017
Not applicable.

- 46 -

Related parties
Fiscal year ended March 31, 2016
1. Related-party transactions(1) Transactions between the company filing the consolidated financial statements and relatedpartiesi)
The parent company and major shareholders (limited to companies) of the company filingthe consolidated financial statements
Type

Name

Other
associate

Honda
Motor Co.,Ltd.

Location

Minato-ku,
Tokyo

Capital stock
or stakeTransaction
Nature of Voting rights Relationship Description
amountholdingratiobusiness orwith theof(Millions of occupation(Millionsofrelated party transactions
(%)
yen)
yen)
Manufactureand sale of(Owned)motor
86,067
vehicles and Direct 16.6
passengers
car bodies

Purchaser of
products ofSale ofthe Groupfinished
and seller ofgoods
parts and raw
materials

13,843

Line item

Accounts
receivable tradeEndingbalance(Millions of
yen)

1,919

(Notes) 1. Terms and conditions of transactions and policy on determination thereof
Selling prices are determined by making an estimate based on economic rationality in view of market prices andthe Company’s manufacturing technologies, submitting the estimate to the customer and then negotiating on price.
2. In the above amounts, transaction amounts do not include consumption taxes while ending balances do.

(2) Transactions between consolidated subsidiaries of the company filing the consolidated
financial statements and related partiesi)Companies which have the same parent company as the company filing the consolidated
financial statements and subsidiaries of other associates of the company filing theconsolidated financial statements
Type

Name

Subsidiaryof otherassociates

Honda of
America
Mfg., Inc.

Subsidiaryof otherassociates

Honda
Manufacturing of
Alabama,
LLC

Subsidiaryof otherassociates

Location

Ohio, U.S.A.

Capital stock
or stakeTransaction
Nature of Voting rights Relationship Description
amountbusiness or holding ratio with theof(Millions of occupation(Millionsofrelated party transactions
(%)
yen)
yen)
Manufactureand sale of
USD
motor
561,568
vehicles andthousandpassengers
car bodies

Alabama,
U.S.A.

Manufactureand sale of
USD
motor
400,000
vehicles andthousandpassengers
car bodies

Honda
Ontario,
Canada, Inc. Canada

Manufactureand sale of
CAD
motor
226,090vehicles andthousandpassengers
car bodies(Millions ofyen)

39,328

Accounts
receivable trade

2,884

27,061

Accounts
payable trade

2,815

–

Purchaser of
products ofSale ofthe Groupfinished
and seller ofgoods
parts and raw
materials

26,087

Accounts
receivable trade

2,190

–

Purchaser of
products ofSale ofthe Groupfinished
and seller ofgoods
parts and raw
materials

25,424

Accounts
receivable trade

2,747

–

Purchaser of Sale ofproducts of finishedgoods
the Groupand seller of Purchase ofparts and raw raw
materials
materials

Line item

Endingbalance(Notes) 1. Terms and conditions of transactions and policy on determination thereof(1) Selling prices are determined by making an estimate based on economic rationality in view of market prices
and the Company’s manufacturing technologies, submitting the estimate to the customer and then negotiatingon price.
(2) In purchases of raw materials, prices are determined through negotiations on price by reference to market
prices.
2. In the above amounts, transaction amounts do not include consumption taxes while ending balances do.

2.

Notes on the parent company or major associates
Not applicable.
- 47 -

Fiscal year ended March 31, 2017
1. Related-party transactions(1) Transactions between the company filing the consolidated financial statements and relatedpartiesi)
The parent company and major shareholders (limited to companies) of the company filingthe consolidated financial statements
Type

Name

Other
associate

Honda
Motor Co.,Ltd.

Location

Minato-ku,
Tokyo

Capital stock
or stakeTransaction
Nature of Voting rights Relationship Description
amountholdingratiobusiness orwith theof(Millions of occupation(Millionsofrelated party transactions
(%)
yen)
yen)
Manufactureand sale of(Owned)motor
86,067
vehicles and Direct 15.2
passengers
car bodies

Purchaser of
products ofSale ofthe Groupfinished
and seller ofgoods
parts and raw
materials

17,156

Line item

Accounts
receivable tradeEndingbalance(Millions of
yen)

2,152

(Notes) 1. Terms and conditions of transactions and policy on determination thereof
Selling prices are determined by making an estimate based on economic rationality in view of market prices andthe Company’s manufacturing technologies, submitting the estimate to the customer and then negotiating on price.
2. In the above amounts, transaction amounts do not include consumption taxes while ending balances do.

(2) Transactions between consolidated subsidiaries of the company filing the consolidated
financial statements and related partiesi)Companies which have the same parent company as the company filing the consolidated
financial statements and subsidiaries of other associates of the company filing theconsolidated financial statements
Type

Name

Subsidiaryof otherassociates

Honda of
America
Mfg., Inc.

Subsidiaryof otherassociates

Honda
Manufacturing of
Alabama,
LLC

Subsidiaryof otherassociates

Location

Ohio, U.S.A.

Capital stock
or stakeTransaction
Nature of Voting rights Relationship Description
amountbusiness or holding ratio with theof(Millions of occupation(Millions ofrelatedpartytransactions
(%)
yen)
yen)
Manufactureand sale of
USD
motor
561,568
vehicles andthousandpassengers
car bodies

Alabama,
U.S.A.

Manufactureand sale of
USD
motor
400,000
vehicles andthousandpassengers
car bodies

Honda
Ontario,
Canada, Inc. Canada

Manufactureand sale of
CAD
motor
226,090vehicles andthousandpassengers
car bodies

Endingbalance(Millions ofyen)

35,514

Accounts
receivable trade

3,511

26,578

Accounts
payable trade

3,681

–

Purchaser of
products ofSale ofthe Groupfinished
and seller ofgoods
parts and raw
materials

23,207

Accounts
receivable trade

2,052

–

Purchaser of
products ofSale ofthe Groupfinished
and seller ofgoods
parts and raw
materials

26,594

Accounts
receivable trade

2,445

–

Purchaser of Sale ofproducts of finishedgoods
the Groupand seller of Purchase ofparts and raw raw
materials
materials

Line item(Notes) 1. Terms and conditions of transactions and policy on determination thereof(1) Selling prices are determined by making an estimate based on economic rationality in view of market prices
and the Company’s manufacturing technologies, submitting the estimate to the customer and then negotiatingon price.
(2) In purchases of raw materials, prices are determined through negotiations on price by reference to market prices.
2. In the above amounts, transaction amounts do not include consumption taxes while ending balances do.

2.

Notes on the parent company or major associates
Not applicable.
Notes on special purpose entities subject to disclosure
Not applicable.
- 48 -

Per share information(Yen)
Fiscal year ended
March 31, 2016
Net assets per share

Fiscal year ended
March 31, 2017

1,908.40

2,012.06

Basic earnings per share

176.14261.01

Diluted earnings per share

144.81216.05(Note)

Basis for calculating basic earnings per share and diluted earnings per share is as follows:
Fiscal year ended
March 31, 2016

Fiscal year ended
March 31, 2017

Basic earnings per share
Profit attributable to owners of parent (Millions of yen)

2,704

4,035

–

–

Profit attributable to owners of parent related tocommon shares (Millions of yen)

2,704

4,035

Average number of shares (Thousands of shares)

15,356

15,461––

Increase in number of common shares(Thousands of shares)

3,322

3,217

[Of the above, convertible bond-type bonds with
subscription rights to shares (Thousands of shares)](3,322)(3,217)

Outline of potential shares that were not used in
calculating diluted earnings per share because they haveno dilutive effects––

Amounts not attributable to common shareholders(Millions of yen)

Diluted earnings per share
Adjustment on profit attributable to owners of parent(Millions of yen)

Significant subsequent event
Not applicable.

- 49 -

v)

Annexed consolidated detailed schedules
Annexed detailed schedule of corporate bonds
Balance atBalance at end of
beginning ofcurrent period
current period(Millions of yen)
(Millions of yen)Company
nameType of bondDate ofissuance

F-TECH
INC.

Yen-denominatedconvertible bondtype bonds with
subscription rights toshares due 2020
(Note 1)March 20,
2015

4,000

Total

–

–

4,000

Interest
rate(%)

Collateral

Date ofmaturity

2,350

–

None

March 23,
2020

2,350

–

–

–

(Notes) 1. The information about the bonds with subscription rights to shares is as follows.
Type of bondDue 2020

Shares to be issued

Common shares

Issue value per subscription right to shares (Yen)

Without contribution

Issue price per share (Yen)

1,204

Total issue value (Millions of yen)

4,000

Total issue value of shares issued upon exercise of subscription rights toshares (Millions of yen)

1,650

Granting ratio of subscription rights to shares (%)

100
From April 2, 2015
to March 9, 2020

Exercise period of subscription rights to shares(Note)

When there is a request from a person intending to exercise subscription rights to shares, in place of theredemption of the full amount of the bonds to which the subscription rights to shares are attached, it isdeemed that the full amount to be paid in upon exercise of the subscription rights to shares has been paidin. In addition, when subscription rights to shares are exercised, it is deemed that the said request has been
received.

2. Amounts of redemption scheduled within five years after the closing date of the accounting period are as follows:(Millions of yen)
Due within
one year–

Due after one year
through two years

Due after two years
through three years

–

2,350

- 50 -

Due after three years
through four years–

Due after four years
through five years–

Annexed detailed schedule of borrowings
Balance atBalance at end Average interest
beginning ofof current periodratecurrent period(Millions of yen)(%)
(Millions of yen)Classification

Payment due

Short-term loans payable

22,58920,562

1.67–

Current portion of long-term loans payable

11,576

10,953

1.46–

Current portion of lease obligations

395

742

0.94

–

Current portion of long-term accounts payable other (installment)

347

293

2.42

–

18,597

23,271

1.66

2018–2025

Lease obligations (excluding current portion)

485

442

0.99

2018–2022

Long-term accounts payable - other (excluding
current portion)

693

512

3.33

2018–2021

53,64456,779––Long-term loans payable (excluding current portion)

Total(Notes) 1. The average interest rate is calculated using the interest rate and balance at end of period.
2. Repayment of long-term loans payable, lease obligations and long-term accounts payable - other (installment)(excluding current portion) above scheduled within five years after the closing date of the accounting period are as
follows:(Millions of yen)
Due after one year
through two years

Due after two years
through three years

10,419

7,150

4,217

1,432

Lease obligations

281

131

25

4

Long-term accounts payable other (installment)

195

201

112

2

Long-term loans payable

Due after three years
through four years

Due after four years
through five years

Annexed detailed schedule of asset retirement obligations
Not applicable.
(2) Other information
Quarterly information for the fiscal year ended March 31, 2017
(Cumulative period)

Three months
ended June 30,
2016

Six months ended
September 30,
2016

Nine months
ended December
31, 2016

Fiscal year ended
March 31, 2017

Net sales (Millions of yen)

47,25490,801

141,530

197,941

Profit before income taxes (Millions of yen)

1,758

2,193

4,835

6,966

663

687

2,396

4,035

43.21

44.77

156.00261.01First quarter

Second quarter

Third quarter

Fourth quarter

43.21

1.55

111.19103.95

Profit attributable to owners of parent(Millions of yen)
Basic earnings per share (Yen)(Three-month period)
Basic earnings per share (Yen)- 51 -