α″働 刀♂οカカ ″″Fli αηcliα Jざ′♂刀倉ノbF√ 力♂ノ?α F♂ 刀虎 ″JИ ttFじ力 J′ ,2θ ′イ

srccsヵ 。″αμο[dings働 .,L′濃♂″ぎ
αИ″CO寛 ♂οliEα′"bs'Etarics

CONSOLIDATED BALANCE SHEETSWCC SHOWA HOLDfNOS CO,LTD and Consolidattcd Subsidiarics
2014

2014

2013

ο
′
sα ″
′
dげ
′
′
′
と
】
s,
〕d′ ο
2,ノ
rⅣ ο

′
′
′
ο
″
Sοノ
(νど
ノ?〃

rT力

ASSETS
Current assets:¥8,683¥7,785

S75,641,s′ 2,ヵ プ′,ノ
どと
Tradc notes and accounts rccc"able rⅣ ο

47,054

48,618472お 86

Inventojes rブ Vο 舵 り

19,24821,473

208,638

982

776

7,540

3,343

5,199

50,516′vο ?s,αCash and time dcposits rブ

ヵプ′
9ノ

セ ′∂
Defetted tax asscts rⅣ ο
ノ
Other

(243)

(160)

(1,555)79,067

83,691

813,166

38,32738,709376,108

69,603

71,165

691,459

924,01024,001

233,201

809

1,950

18,946

Accumulated dcprcciation(90,972)(92,289)(896,706)

41,77743,536

423,008

2,102

2,055

19,966

2,102

2,055

19,966

7,629

8,425

81,8601,4,014,477

1,S12

14,691A‖ owancc for doubtljl accounts

Total current assets

Properけ ,plant and equipment:

ヵプ′り
Buildings and structurcs rブ Vο rθ s∂ αMachincry,equipmcnt and tools ryVο

′
θ
d∂ α
″ι
′′
9

Land rⅣ οη′′rθ s a FJ α

0thcr

Total property,plant and equipment
lntangiblc assets

0

Goodwill♂′
Othcr rブ Vο れりTotal intangible asscts

lnvestments and other assets:,s名 ∂α力′′てInvestmcnt sccuritics r′ Vο ′
ワ

10

,′ ∂
て
Deferrcd tax assets r'Vο ′
)

,9
′
て
Other rⅣ ο

6,696

Nct deined bcncit assct rデ Vο 惚 /θノ
Allowance for doubtAュ l accounts

Totalinvestments and other assets
Total assets

Sて ,9Иθθο胸′
夕
とノ
'■

'″ =プ

Vο 2srο

ど
と
】
′税ι
J舵
:と ゴ
α′
9ι ゴ
FJ″ と
,″ じ
cο ,,sο ′

9,,ど

∫

(390)

(337)

(3,274)

13,945

11,090107,754¥136,891¥140,372

Sl 〕
363,894

2014

2014

2013

∫9た Иタリrν!〃 ,ο ヵ

∫
α
ヵ
′
sο ア
ο
ク
′
∫
けd′ ο
′
α′
ノ
9つ
r,Vο どrT力

LIABILITIES AND NET ASSETS
Current liabilities:¥43,076¥44,328

S435,S62

23,631

24,026

233,443

Accrucd incomc taxes

330

317

3,080

Rcscrvc for consttuction ioss

31

106

1,030

1,188

215

2,089

RcscⅣ c fOr Surchargc

630

6,121

Othcr accounts payablc

7,262

7,719

75,000

Other

3,528

3,449

33,512

79,046

81,290789,837

14,101

17,277

167,868

S64

5,480

Short‐ tcrn dcbt rAr。

セ∫∂ι
】 ゴ′
ワ
,,と

Tradc notcs and accounts payablerA/ο r̀,s′ 2,″

′′
ワ

7,
RcscⅣ c fOr business structurc impЮ vcmcnt cxpenses rブ vο セ′

Total current liab‖ ities

Long‐ term!iabilities:∫∂,,T′ ′9,
Long‐ tcHn dcbt ttorセ テ
Accrucd rcdrcment bencits for employccs ttο

そ /θ)

649

ο
Nct dcincd bcneit liability rⅣ οセ ′
′
113

114

1,108

1,485

1,035

10,056

4,739

4,876

47,377

1,408

1,637

15,905

Tota1 long‐ term liabilities

22,49525,503

247,794

Total liabilities

101,541

Accrucd rcttircment bencSts for directors and statutory auditors∂
Dcfcrcd tax ltabJtties rブ vο セ′)
Defcrrcd tax ltabilities rclatcd
to land rcvaluation rA「

′′
∂
οど
θ
s′ ,,ヵ とノ

OtherContingent liabilities rⅣ

1,037,631ο惚 ′′)Net assets:

Shareholders'equity:

Common stock:
Authorizcd‐ 700,000,000 shares‐308,268,61l shares rブ vο ′,′ 7)て235お 48

24,222

24,222

佗 /7ノCap■ al surplus rハ「ο11,035

6,429

62,466

Retaincd carnings rⅣ ο,′ 7)(6,077)(1,276)(12お 98)

lssucdrてθ′
7,Treasury stock r′Vο ′

(13)

(14)

(136)

29,16729,361

285,280

Unrcalizcd holding gains on other sccuritics

780

816

7,928

Dcfcrrcd gains on hcdgcs

24
5,031

4,894

47,552

55

1,613

15,672

Total shareholders'equiⅢ
Accuコ nulated other comnprehensive income:セ′J)
Variancc ofland rcvaluation rⅣ ο
Forcign cu∬ ency translation attustmCnts

Rcmcasurements ofdcined bcncit plans
Total accuコ nulated other commprehensive income
ⅣHnority interests
Total net assets
Total liabilities and met assets

S9ι Иθ
θοttr,と:,Pノ 丁''gザd:r9胸 9,η ′
″sο ′
,と ゴ
と
:セ ι
′F′ ,!と Jη θ:'ど 税ιVο rて ,s rο (デ ο

(3,402)(33,054)

5,890

3,921

38,098

293

297

2,885

35,35033,S79326,263¥136,891¥140,372

Sl,363,894

CONSOLIDATED STATEMENT OF OPERATIONSSWCC SHOWA HOLDttGS CO,LTD and Consolidated Subsidiaries
2014

2014

2013

〃FOヵ dげ /〃
rν′

d,″ ′
Sげ
″
仲ο
′
と
Jd′ ο′
,′sノ
vο ど
9,ノ
rブ

Net sales♂ba″∬′5)
Cost oFsales rノ VOどιGross proatvο r?′ J)

Sc‖ ing,general and administrative expenses rプ

Opcrating income¥169,798¥183,289

Sl,780,888

151,295

163,727

1,590,818

18,503

19,562

190,070

17,37617,009165,264

1,127

2,553

24,806

Other income(expenses):
Intcrest incomc

18

Divldend incomc

137

Foreign curcncy cxchangc incomc

44

117

(1,042)(10,610)lnterest cxpcnsc

Repalr work cxpcnse(689)

Equity l■ losscs ofarlhatcs(184)

Gain on compcnsation for mowing

100

Gain on salcs ofixed asscts

33

1,457

(271)

(2,633)Gain on bargaln purchasc

18

175

Statt subsidy

878

Gain on sales ofinvcstment sccuritics

4

39

(630)

(6,121)

Thc alnount ofsurchargc reseⅣ c ttnd transfer
Loss on impainncnt ofixed asscts rⅣοセ ′りBusincss stmCturc improvement cxpcnscs rⅣ

Or♂

′7ノ

Othcr.nct
y inttrests
Incomc(losS)bCfOre incomc taxcs and mino苗 亡(4,348)(8)(78)(1,578)(243)(2,410)

(443)

(172)

11,671)(7,950)(2,184)(21,220)(6,823)

369

3,586

,′ じ
lncome taxes rⅣ οどと)Currcnt

413

Deferrcd

(278)

(242)

(2,351)

4,391

135

210

2,040

(6,958)

159

1,S46

ⅣIinority interests

593

36

349

Netincome(Ioss)¥(6,365)¥195

Sl,895

Income(losS)befOre mino両 ty interests

S?θ ′
4て

,て

,ο

ど
と
を
′税♂修″,￠ ″′s′′とて′F,η ι
Jヵ θ
力gプ Vο ,srο Cο ヵdο ′
翔ヮα ′
rて

',ノ

,′

,ι

IE
CONSOLIDATED STATEⅣ IENT OF COⅣ IPREHENSIVE INCOヽ イ
SWCC SHOWA HOLDNGS CO,LTD and Consolidated Subsidiaries
2014

2014

2013
rνJ〃

丁
0パ げ/″′

rη

巧
み
ο

J,4セ

rdげ

"dと

Js′ 。

rr̀:″ s,

５
９

９
５

２
２

６
３

２

４
２

Imcome(Loss)beFore minority interests

Other comprehens市 c income r7Vο 舵 2つ
Unreahzed holding gains on other securitics

く

石
︲
４

Total other coコ nprehensive income

Comnprehe:isive income

１ ︐

︲
９

９
０

Sharc ofother comprehcnslve incomc ofariliates in cquity mcthod︒
３

Fottign curcncy trmЫ ttion adJustmcnts

男

Variancc ofland revaluation

７
３

Defered gains on hedgesr′YOtt J)

1,546

349
(233)
(1,331)

7,68S
7,530
14,000(5,867)1,600

15.546(5,327)

1,627

15,808Comprehensive iEiCOme attributable to

OWDerS Ofthe Company(540)

Minority interStSИ,И θ ,r sr̀Jr(,″ :?η 肛
どとr,′ ゴ「メ〕,ο ′〃′ ,″ ツJ′ :gザVOど ￠dど O Cο ,lsο ′S??ン 4θ て
'と

̀タ

̀と

(262)

CONSOLDATED STÅ TEMENT OF CHANGESIN NET ASSETSSWCC SHOWA HOLDttGS CO,LTD and Consolidated Subsidiaies

r九

イ
′
′
′
!ο

"dげ

/″ノ

Acoumulated othc「Shareholders'CommonCapitalstOCk

su「 plus

Rctaincd Treasu「 y銘mings stock

Unf∽ hzcd

Tolal

sharcholders

DeferedWa前 an∝hЫ d市 B Bains gains ttossCS)

oflandon s∝ uities
Balancc at Ap「 ill,2012¥24,222

¥(13)

¥604

¥11,035

on hcdRCS¥557

平35,848

ForciBn curency
anslationt「Mino市 げothcfcomprehensive

ewaluation
Y―¥5,023¥4,845¥(735)¥1,086ｔ(308)

Ncttoss for the year

(6,365)

Rcve「 sni offevaluahon resewc fortand¥41,779(308)

６︐

C■ sh diwidends paid

Total

(6,365)
(8)

(3)

(0)

Purchtte of treasury stock

Changes other than
24

shareholder・ s equity¥24,222

Balanccょ ,vlarch 31.2013¥11 035¥f6̲0771¥780¥29、 167

¥̀13Ⅲ

¥24

¥55

¥5,031

1045

(798う

¥5,890¥29a

252¥35,350

′
′
ο
″
びり
「
V′ ′

"け
κ cumulatcd

Sharcholdcrs'

accumulat

CommonCapitalRctained

Treasury

Total

stock

su「 pluseam[ngsstock

sharcholder'scqu!げtOSSCS)¥24,222

Datancc at ApiI I,2013
TransFc「 tO rctained eamings「capitai surptus(4,606)

4,606

虫 13)

翌 9,167

Ч14)

塑9う 61

195

Netincome forthc yca「Minoit)′TOtal

cOmprehe

plans

早55

¥780

¥24

撃S,031

ri37】

1.558

(3.402Ⅲ¥316

Y―¥4,894¥1,613

当3,402)¥一望S,890¥293

翠35,350¥3つ 21¥297

43,579Ｓ ω・︐

業 6,077)ed othcf

OFdettned beneSt

５
９ ω
・

¥11,035om

Remeasurcmcnis

Unreanzed
DeferedVahance Forcign curcncy
holdng gains Bdns tosscS)Of ttnd
tranunお non sccu両 hes on hcdBcs ewaluation adJustments

Purchそ li,c Oft「 Cttsu「 y stock

Chanses othcrthan
shareholdcド s cqui〜を4.222

Batance at March 31,2014¥6■ 29章1,76)

rT力

rlと

'651

′
′
,つ
′
sげ 〔
/S′ ο
l̀:/s,rⅣο

ο
vざ
̀:η

Accumulated other comp「 chensive incomc

Sha「 eholders'equiげTolaI

accunulat

CornmonCapitalRelained

Trcと ￨,urystock

su「 plus

earnings

stock

dOSSeS)S23S解 8 S107,19

Balancc at April l,2013
T「 ansFc「 to rctained eamings「CqulげS(59,046) S(126)

holdinB 8jns gttns aOsscs)

Variance Forcign cu「 cncy
oFiandtranslation

on sccu苗 icsev』 uatlon

Unfealized

Total

sha「 cholder'sS283,39S

S7,S79Deferedon hcdgs

S233

S48,383

adJustmeǹ

S534

Minority

Total

intc「 csts

cOmprehe

ptans

S‐

SS7,29S2,347

S343,471

44,753(44,753)

Pu「 chそ Isc oftreasury stock

1,895

1,395

1,395

Netincomc Fofthc ycn「(10)ChanBcs otherthan

34'

sha「 choldef's equity

S23S348

Balance at ryrarch 31 2014

?ざ ′0(:0″ びο′′
′ 9ど カカ「ο′"=ハed othc「OFdc5ned benttt

omcapital surptus

S99 Иσσο′′,r'̀I"ノ ′RemeそIsurcmcnts

̀:′

̀I″

S62M66

S̀12398ヽ

∫σ ′Sr̀:′ 9′ ,l￠ ″′!̀子

S(136ヽ

S28S,80(233) (1,31)

15,138(33,0割 〕 (19,131)

347.552

S15る 72

S(33.OS4)

S‐

38(19,093)

CONSOLIDATED STATEⅣ EENT OF CASH FLOWSSWCC SHOWA HOLDNGSCO,LTD鉗 趙Consolidated Subsidiancs
2013

2014

2014

ゎ,sο/ノ9,ノ

rirl″

ο おο
/
"d伽
〔
アS′ ο
′
′
と

rT力

,″ d′

rザ

Vο

J′
̀￠

:

¥(6,823)¥369

Dcprcciation add alnO― don

3,170

2,948

Loss on mpament oflixcd asscts

4,348

hcome ooss)befOre hcomc taxcs and alinOnty lmttrcus

Compcnsation mc(,me(101)

Cain on sales ofhvcstncnt sccundcs

(2)

(33)

Loss on disPosal ofpЮ pc■y,plant and eq面 pme正

49

(4)
７

Gain On salcs ofpropeHy,plant md cqulpmcnt

３40

Loss on dcvaluation h invcsmcnt sccimtcs

りhcrcasc(dcCrcasc)h2uowance for doubld ac∞ unts

(■ 3)

28

hcrcasc(dcCrcase)h acCrued retircmcnt bcncfits for cmployccs(37)

lncrease(dCCrcasc)b prOⅥ Sion for Net dcttned beneit hablity

５

hcrease(deCreasc)in rCSCrvc for consmcdOn IOss

(115)

７い０ ２
６２い７
２
６
螂４
︐
８
２

cash aOws from operndng ac● vidω

(1,117)

htcrcst and dl萌 dend hcomc

(155)

(195)

(1,895)

htcrctt cxpcnscs

1,042

1,092

10,610630

6,121(1,267)(12,311)(2,107)(20,473)

Rcscrvc for surcliarge
９
９
３

Ｌ

的 dc notcs and accowts rccc市 able

７３

(hCreasc)dCCrcasc」 l odlCr Currcnt assets

106

1,030

(1,020)(9,911)

925

8,988

５
１

く

hcrcase(deCrease)h ttdC nOtcs and accollats payablc

０４

く(hCrCasc)dCCrcasc h山 vcntoncs︲
８(hCrCase)deCrease血

乳hcrcasc(dcCrcasc)lD rCSCⅣ C fOr disaster ioss

hcrcasc(dcCrcase)h other current hab山 ies
９８Repar work expense３３

es and attliatcs

８
７

ＬLoss on salcs ofiavcstDiCntS h subsid五Busmess strucは re hprovemcnt cxpcnscs

248

2,410

(1,400)(13,603)９９

Oher
Sub‐ totaI

hterest and d宙 dends recc市 cd
htcrcst paldscnlcment pald

6,535

83

306

157

206

2,002

(1,044)(1,088)(1悦 571)(217)

hcome taxcs pald
Nct cash p〔 雨 ded by operating acti宙 hcs

(46)

(409)

(3,974)

5,385(1,208)(■ ,737)

Ｇ
４
４
５
８
４

Purchascs ofprop釘 ゥちplant and eqttpmcnt

８０ＣPr∝ ccds iom salcs ofprOpc■ y,plant and equlpment
Expcnditlres for acqlmSdon ofhvcslmcnts tta an a価

Iatc

Procccds IIom plirchasc ofshと ,cs ofSibSidi江 es rcsdthg h chaIIgc in scope ofconsolidaion

単

ばCS

３︐

Proceeds iom salcs oFuivcsmcnt sccllコ

り ８ り ９ ９ ０

Cash■ ows fro:二 l ilivesCIig acSvides:
PurcLascs ofiavcstnent secunties(4,838)５
３

Proceeds iom sales of41VCStncnts Jl stibSidiancs capital h chalige h scopc ofcoasolidaton
７

Procccds for acqws:dod ofshares ofnew conso

datcd subsidlancs０

Nct caSh uscd in mveshg aci宙 ies

29(1,002)(9,736)(4,S67)(44,374)

４
４

9her

︒

―
にHn loans receivabに

４
９(InCrCasc)dCCrcasc h sho■︒

Proceeds tom salcs ofhvcstmcnts

1,059(3,914)

2013

2014

2014
rir′

′
ど′
,sO/ノ ?″′
,ο

rT力

ο″
d̀ュ ′
,お 0/

[/S′ ο Jrd)
rrとrザcash aOws from inancing acdviSes:
hcreasc(dcCrease)in shO■ ‐lcΠ はbank b〔 )∬ o胡 ngs

Vο 19 J)

(1,401)

1,041

10,115

Procccds lrom iong‐ 俺耳n debt

7,610

11,050107,365

Rcpaymcnt ofiong― tem dcbt

(7,239)(3,332)(80,956)

Repttcnt ofcorporatc bonds(70)
7

Procccds IIom payment by Hlm()nty sh鰤 謝Юldcrs
Cash di宙 dcnds pald

(308)

DlⅥdends payment(6)

OtllcrNet cash pro覇 dcd by(uscd m)mancing acti萌 tics
EfFect of exchange rate chaElg9s On cash and cash equivalellts

Net imcrease(d∝ reaSe)in Cash and casL equivttlents
Cash and cash ecuivalents at beゴ nming ofyear
CasL and cash equivalents at end ofyear rブ

膨 ?′ 電
て,0"メ
,て

'η

胞 5)

′′

ノl″ gデVο 彪 οConsO力 ととF′ ,,α lθ ,rsど ,r￠

rtJ′

̀ど

Vο

̀,′

"切

rd

688

9,531

(719)

45,997

266

4,100

1,018

(6,014)

7,206

8,224

79,906¥8,224¥7,60573,892

蝉

IIINANCIAL蜘

Ю耐

SWCC SHOWA HOLDINGS CO,LTD and Consondated subsidiaries
1.Basis of Presentation

The accompanying consolidated financial statements of SWCC SHOWA HOLDINGS CO., LTD.(heCompany'')and itS COnsolidated subsidiaries(collect市

Companies'つ have been prcpared on he basis

ely heof accounting prhciples gencrany accepted in Japan,which are different in certain respects as to the apphcationand disclosure requirements of lntemational Financial Repotting Standards,and havc been compiled tom theconsondatcd flnancial statements prepared by the Company as required by he Financial lnstruments andExchange Law ofJapan.
In addition,the notcs to the consoLdated flnancial statements include infollllation which is■

ot required underaccounting principles generaHy accepted in Japan. Certain reclassiflcations have becn made to present theaccompanyhg consondated financial statements in a follllat Which is faminar tO readers outside Japan.

2.Summary of Signiflcant Accounting Policiesデο′,Sο
ぬ t,0′ :「▼)Pri秘呵pね げ てrα

The consolidated flnancial statements include the accounts ofthe Company and tts consoHdated subsidiaries.In
preparing the consolidated anancial statcments,an significant intercompany transactions,account balances anduばealized proats Or iOsses among the Companies have been elinlinated.In the elimination of investments inconsondated subsidiaries, the assets and liabilitics of he consolidated subsidiaries, hcluding the portion
at,ibutable to mino五 サ shareholders,are recorded based on he faと valuc at the time the Compそ my acquired
con仕 ol ofthe respectivc subsidiaries.
Differences between he cost ofthc investinents in consolidated subsidiaries and he underlying equity at faとvalue ofdates ofacquisition have becn amortized by the straight― line incthod over a period offive ycars.

The equiり mehOd Of accolnthg has been adopted for hvcstments in he mttor afrlhated companies overwhich the Company exercises significant inauence h teIHIs oftheir operating and flnancial policies.

The total assets,retahed eamings,nct sales and net incomc(loss)Of the uncOnsohdatcd subsidiades andafflhtted companies which are not accounted lbr by the equity l■

ethod in thc aggregate werc not signiacant inrelation to the cofrespondhg consolidated balances ofhc Companies.
Thc number ofthe consondatcd subsidiarics at March 31,2014 is 25 1isted as fonows:
Nalnc

Pcrccntagc ofPaid‐incquity owncrship

capital
rirrザ

イ
ザ
ο
η∫
)

SWCC Showa Cablc Systtms Co,Ltd

1000%¥10,000

SWCC Showa Dcvice Tcchnology Co,Ltd

1000

3,500

EXSYM Cottoration

851

500

Unimac Ltd

550

480

1000

318

Daul Co,Ltd

1000

480

AXIO Corporation

1000

310

Miyazaki Elcctric Wircよ c Cable Co,Ltd

1000

100

SWCC Showa Busincss Solutions Co,Ltd

1000

100

SDS Corporation

1000

100

Logis‐ Works

1000

95

Fu」 i

Electric Cable cO,Ltd.

Co,LtdAo■ lori Showa Electric Cablc Co,Ltd

1000

80

Tamagawa Magnet Wirc Co,Lttd

1000

46

Showa Recycle Co,Ltd

1000

20

Showa Tcchnical Corporation

1000

20

Shoukou Equipment lndustry Co,Ltd

1000

80

Tittjin Showa EnarncJcd Wire Co,Ltd

548

USS17 0Fuqing Showa Sciko Electric Co,Ltd

1000

USS3 4SWCC Showa(VIETNAM)Co,Ltd

1000

USS7 0

SWCC Showa(ShangHal)CO,Ltd

1000

USS5 2

Jiaxing Showa lntcrconnect Products Co,Ltd

952

USS3 2SWCC Showa(HK)Co,Ltd

1000

HK$843

Dongguan Showa lntcrconncct Products Co,Ltd

1000

USS1 7

HangZhou FuTong Showa lntcrconncct PЮducts Co,Lttd

Showa Scicncc Co,Ltd

900

CNY S12700

40The number of amliatcs,in which investments are accounted for by the equity mcthod,is 5 1isted as follows:
Pcrccntage ofPald― incquity owncrship

caPitalヽ
6ノイlμ ,ο ヵr′

Hua Ho Enginccring Co,Ltd

NTS35

Showa‐ TBEA(Shan Dong)CablC Accessories Co,Lttd

USS14

HangZhou FuTong‐ Showa Electtic Wirc Cable Matcrial R&D Co,Ltd

CNY¥10

FuTong‐ Showa Elccthc Wirc tt Cable(HangZhOu)Co,Ltd

CNY¥322

FuTong‐ Showa Elcctric Wire&Cable(Tianhn)CO,Ltd

CNY¥100

EIfective the year ended March 31,2014, Showa Science Co.,Ltd.9 has bcen excluded it ffonl scope of theequiり mettod attliated companies and changed in the consolidation due to ow■

ership ratio incrcased byadditional acquisition.

In he year M[rch 31,2014,Showa Science Co.,Ltd.,controlled hdrectly by the company,hcluded h theconsondatcd subsidiarics.

In the year March 31,2014,HangZhou FuTong Showa Copper Co.,Ltd.and HangZhou FuTong Showa Wirc
&Devices Co.,Ltd.,in which ttvestments were accounted for by the equity method,were merged by
FuTong― Showa Electtic Wと e&Cable(HangZhOu)Co.,Ltd.

)FOκ ,g,C′ ″じИcノ T′ ″ S′ αお0″rうAssets and liabilities denominatcd in foreign curencics are translated into Japanese yen at applicable exchange
rates at thc balance sheet date,and differences resuhing from the ttanslation are included in othcr income orother expenses in the consolidated statements ofincomc.
The assets and liabilities of foreign consondated subsidiaries and afflliates that operate h local currency aretranslated into Japanese yen at hc applicablc exchange rates at the balancc sheet date, except for thecomponents of net assets excludhg mhority hterests which are ttansltted at her histOrical exchange rates.
Income and expense accounts are also ttanslated at the applicable exchange rates at the balance sheet date.

Differences arismg iom thc transtation are presented as ttanslation attusmentS and minorl,lnterests inaccumulated oher comprehensive income ofits consolidated flnancial statcments.
?打 奮
ω CaSЙ α刀″GttЙ どTИ 力α′Cash and cash equivalents consist of cash on hand, cash in banks which is readily available and short‐
investments with maturtties ofthrce months or less when purchased which can easily be converted to cash andtellllare subiect tO little risk ofchange in value.
gs
ι
′ο′
′
)れ ッ
,ど

r′

lnventoriesを re prunar』 y stated at the lower of cost deterlnined by the average method or net rcalizable value.

Ined by thc lnoving avcrage「mcthod of by the speciflc identification mettod or net realizable valuc.When hc costs excccd he net realizable
Invcntories ofcenain cOnsOlidated subsidiaries are stated at the lower ofcost deteコvalues,inventories are written down to the net realizable value.

ゼsr胴 ♂
Иr ttc,′
『ッ

r♂)f′

s

illiβ

Markctable securtties classifled as̀Foher securities"[re cattmed at fair value wtth changes in uば

calized hold血 8

gains or losses,net of hc applicable hcome taxes,included directly h net assets.Non― marketable securhies
classined as̀̀Oher securitiesデ'、

VhiCh have no far values,are cattried at cost detcHnined by thc moving averagemethod.Cost ofsecurhics sold is deterinined by the movhg average:nehod.

♂

距″どT ″″:"r″αο′?′ 1ツ,P′ ″lt and equゃ ment are stated at cost.Depreciation is calculatcd by ttc straight‑lhe mehod over he
PropeHy,pl孤'P′estimatcd usettH市 es.The mah estimatcd usettH市 es ofproperけ ,plant and equゃ ment are as follows:

Buildings and sttuctures

31 years(3‐ 50 years)

Machinery and Vehicles

10 years(2‑14 years)
5 ycars(2‑15 years)

Equや ment and tools

αgrう ルИ郎?おrg)/ どIntangible assets are amortized by thc straight‑line method over each oftheir estilnated usc角

1 lives.Especially,

computer sotwarc for intemal use is amoiized by thc s,aight―

line inethod over its cstil■ ated uscful lives of 5

ycars.

6

ぎ
)Lια

r力

Depreciation of fmance Lase assets h証 伊ansfer ownershゃ Ofhe asscts,mttnly omce equipmcntね

calculatedby the same method applied for pЮ perり ,plant and cquipment.
Finance leases,the agrccments of、 vhich do not include the ttansfcr of owncrship,are accounted for in the same
linc method over hemanner as ordinary purchase ttansactions of ixed assets and are depreciated by sttaight―
respective lease teIIlis with a zero residential value. Whilc, flnancc leases, thc agreements of which do notinclude the ttansfer of ownership and started on of beforc March 31, 2008, are accounted for as operating
leascs.

う″じο 奮R?じ αうrデ,frИ じOψ α,c♂ デ0′ Dο И0ノ 4どどThe anOwancc for doubtall accounts receivable is provided based on historical default rates and additional,′giッ

cstimated uncollectible amounts to cover speciflc doubtill accounts receivable.

O RCtirc躍 ?′ Pr】 ?′ Pび盗(1)MehOd Ofattibuthg beneflts to periods ofseⅣ ice
When calculating retirement benerit Obligations,the stra18ht― line basis is uscd for attibuting expected
retrement beneits to periods of service。
ice costs(2)McthOd Ofexpenses for actuarial gahs and losses and past seⅣ
ice
line
basis
over
cchainperiods wnhin he average remaining seⅣ
izcd
on
a
sttaight―
Past seⅣ ice cost is amo■omheyearinwhich
itarises.
livcs ofemployees(mainly 13 years)とActuarial gains and losses are amortized on a sttaight‐ line basis over ce■ ah periods withh the averageremahhg service l市 es ofcmployees(mainly 13 years)iom he year following hatin which they arise。
澪
′′
0り И
′
οパ α ″説 α′,9尼 rsデο′D′κじ流 力″頚/R?1'「c ?′,ど 】ι′r打,P′ θ"rir。
To provide for he aiture benefit payment for dと cctors and statutory auditors,the Companies have provided
accrued rettement benerits based On their intemal regulations.
tt Lο ss
?デ0′ GO″ Sr′)翼 ?s?′ ッ":οReseⅣ e for consttuction ioss is provided at the cstilnated amount for anticlpated losses on he constructionr′conttacts h progress.

)R賀 ?′ ッ♂デο′うИ∫力kだ s srrJ′ じど ′?力 Ψ ΓOフ?″ :♂′ ′0ごS

r胴

,′

:′

ReseⅣe for business structure improvement loss is proved based on an estimate of business sructure
improvement expenses,
gど′:)R盗 ?「 ッ?デ0′ ♂ rcヵ α
ReseⅣ e for Surcharge is recorded at the expected loss resultingとJ′r′om the payment of a surcharge payment order

based on the European Co■ llnlssion.
rο)R♂

′
cぬ
0″ GO ′
α
,sP′″
c▼ ′
:″ Cbs′ 9rGο ′
フ
?刀 ′
?α ′

of― completion
The Company recognized revenue and cost of construction contracts under the percentage―iり・Otherwise,
ityisdeemedcciaindurttgthecourseofhe
act市
mehod iftte outcome oftte construction act市
ehod.The
percentage
ofcompletionisconttactl■
the Company recognized revenuc and cost upon completed―calculated at the cost incured as a percentage ofthe estilnated total cost.

αわ♂
rP,D?ガ リ
The Companics use foreign curency forward exchange contracts and interest rate swap agreements to hedge therisk of aucmations■ l foreign curcncy exchange rates and intercst rates,respectively.Cain of loss on changes■l the faif rnarket values ofthe derivative financial insttuments、

vhich lneet cciain criteria as hedges is defelTedon the balance sheet until gain or loss on the hedged itcms are recognized.
Ho、 vever,foreign curency forward exchange conttacts,which ineet certaul conditions,are accounted for as apa■ ofttanslating foreign curency lnonetary asscts and liabilhies in the consondated balancc sheets.

In case where hterest rate swap agreements are used as hedges and meet ccrtain hedghg criteria,血 e nct
anount to be paid or reccived under the conttact is addcd to or deduced flo■ 1血 e hterest on the assets or
liabilities for which the swap contract is executed.

Shce conlmencemcnt of hedBe conracts, he Companies have assessed the erectivcness of each hedge
conttact by comparing the total cash aow auctuation or market auctuation of hedging insttuments and hedged士ems.

∫胴Prテο T2χ 斜
rT,Gθ 刀Transactions suttect tO COnsumption taxes arc recordcd at amounts exclus抒

e ofconsumption taxcs

6

,?Taχ
)r″ cο ″Defclred tax assets and liabilitics arc determined based on he differcnces bctween flnancial reporting and thetax bases of hc assets and liabihies and are measurcd using the enacted tax rates and laws which will be inr′erect when the differenccs are expected to reverse. Thc companies in Japan fllc he consondated tax retum.
Overseas consolidated subsidiaries are sutteCt tO hcome taxes in thc countties in which hey operate.

3.Accounting Change
Effective the year cnded March 31, 2014, he following change in accounting poncy and new accounting
standard were adopted.

ntixgPο れリccο ″,α g?加 Иra)ご ′
Effective ttom the year ended March 31,2014,the Company and its consondated domestic subsidiaries haveapplied he WAccounting Standard for Retirement Beneats"(Accollnthg Standards Board of Japan cASBJりStatement No.26,May17,2012(Statement No.26))and WGuidance on Accounting Standard for Retttment
BenefltsW(ASBJ Guidance No.25,May 17,2012(Guidance No.25))except he nicle 35 of he Statement
No.26 and tte article 67 ofthc Guidance No.25 and uば eco8■ iZed actuarial gains and losses and unrecognized
past seⅣ ice costs have been recognized and he difference between retirement beneflt obligations and plan
assets has been recognized as net deined bcnefit liabilities(or aSSets).In aCCOrdance with the aiicle 37 oftheStatement No.26, he erect of the changc in accounting poncies arising tom 血mal apphcation has beenrecognized h accumulated remeasurements of dcaned benefit plans in accumulated oher comprehensive

mcome.
As a resuh of he application, accumulatcd otter comprchensivc hcomc has decreased by¥3,402■lillion(USS33,055 thousand),fOr he year ended March 31,2014.

4.U.S.Dollar Amounts
For the convenicnce of the readers outside Japan, hc accompanying consondated financial statements arepresented in U.S.donars by'孤 lSlating an Japancse yen amouHs at the exchangc rate of¥102.92三USSl,00

Iarch 31,2014.This ttanslation should■ ot be construed as a representation ttat the Japanese yen
prevailhg onヽ ′amounts actuany rcpresent,or havc been or could be converted mto U.S,dollar amounts at the above or any
other rate.

5。

Cash and Time Deposits

lnfo二 11lation

cash and tirne depostts at March 3 1
2013.2013 and 2014 was as follows:

Cash and timc deposits due within 3 months

ク
∫
α
刀切
ζ9′ [ガ Sとrο r肋 /s,rT力 ο
S73,892¥7,605¥8,224180

1,749¥7,785

S75,641

Time dcposits duc ovcr 3 mondis
Total

2014

2014
′
ο
tts O/ノ ?砂rry′ μ¥8,683

6.Inventories
Thc breakdo、 vn oflnventories at March 31

2013 and 2014 was as follows:
2014

2013
rν

r′

′
丁
Oヵ dO/ノ ?力)

2014
ι
rd,И
(T力 ο

0′
̀/∫

/sと ror筋 っ〔¥8,271¥9,038387,816Work in process

6,486

7,159

69,559Raw matcrials and supplies

4,491

5,276

51,263¥19,248¥21,473

Mcrchandise and inished goods

S208,638

1nventories wcre revalued at he lo、 vcr of cost or net realizable valuc wtth dcvaluation losses, which werc

included in Cost of Sales,Iorthc years ended March 31,2013 and 2014 h he amounts of¥86 1nillion and¥69

million(US$670 housand),respect"ely.

ヽ￨

7.Investment Securities(a)InfOmlation regarding marketable oher securitics at March 3 1,2013 and 2014 was as follows:2013帥/ゝcて 1と

cost

Val暖

2014

21114

jm Cm UrLア calttd
匹競
即 ф嘲

而

∞st

C― gUm』咀

価On

帥

Ctt Um、 :ahttd

V』 uc

cost

如 ω

ymф 嘲

筋′
d)
″″
おο
Sと ′
/廷 ナ
rT力 ο

,dο/ノ ?Иツ
″′
rν ′

rο

s̀〕

lο

Sccuritics whose catting valuc cxceeds
their acquisition cost

Stocks¥1,678¥3,132¥1,454¥2,033¥3,400Stocks

l,020

Total

¥2,698¥1,367

737

(283)

683

554

(129)

¥3,869¥1,171¥2,716¥3,954¥1,238319,753

S33,035

313,8283(1,253)

S38,418

S12,029

Sccurities whose acquisition cost exceeds
thcir caHying value:

6,636

5→

89

S26β

⑥.Forthe year ended March 31,2013,and 2014,shce sales of securities classifled as other securities were not
impottant,he infon■ ation was omttted.

8.Short― term and Long― term Debts
tettm debt composes short‐ telili borowings and curent portio■ oflong― term borowings,flnance lease
Sho五 ―
teコ m boffowings and current portion oflong― tel11:
obhgations.The weighted average interest rates for sho五 ―borowings at March 31,2014 were l.520/O and 2.080/0,rcspectively.
te1111 borowintts at March 31.2013 and 2014 consisted ofhc
tett11l borowhRs and lon宮 ‐Sho■ ‐rJヽ

fo1lowing:

2014

2014

2013
′
″lο Иsの ?И)イ″t,と ,′ 〕
ぬ 0/
(T力 ο

Jsと rorrと ∫),′15,828

Sccured

19,570152o46¥35,398

４
４
７
７
７
４
０ ︐一 ６︐一２
３￥

Unsecurcd

０
０
７
５︐
︲

Short‐ term borrowings

S354β 92

Unsccurcd

8,788

12,046

117,042

Sccurcd

12,51011,964¥21,298¥24,010201,346

Long̲term borrowings

116,46
S233,288

Lon宜 ―
teHn debt at March 31.2013 and 20 14 consisted ofhc followin2:
2014

2014

2013
r′ ′
ο
ヵ
sο/ノ?И)
rν ι

″
S'η と
rd。デ
(T力 ο
ys̀rorrと ,/5)

Loans principauy frOni banks and insurance companics duc
scrially to 2019 and predominantly couaterahzed,

233,288

21,29824,010Financc lcase obhgations duc 2022

481

1,621

15,750Lcssi portion due within onc ycar

(7,678)(8→ 54)(81,170)¥14,101¥17,77

S167,868with a wttghted average m俺 rcst of 2 0%

The aggregate annual rnaturities oflong―tettHl debt subsequent to March 31,2014 were as follows:
Ycar cnding March 31,

s Orノ θりrν lrど ,ο И

,ぬ QrrT力 ο〃 ′d̀ェ

〔/Sと yο rr,/6)¥7,002

2016

5,423

52,691

3,262

31,69520172018 and thcrcancr

卿
一
型
一

2015

S68,033

15,449
S167,868

At WIarch 31,2013 and 2014,the fo■ owing asscts were pledgcd as collateral fbr ceia■

l ofthe above dcbts:

2014

2014

2013
rνlμ ,ο ttsげ /リ

(7,ち

ο

,と rs

fりr

"sa′

/S′ο
も
と
ザ
ね″
,
Invcstment sccurities¥2,015¥2,047

S19,889

5,273

5,123

49,777

PropeHy,plant and equipmcnt,at nct book value:
Buildings and structtrcs

273

141

lβ 70

17,883

17,883

173,756

Machincry,equipmcnt and toois

Land

9

3

29

¥25,453¥25,197

S244,321

Otthcr

9.Leases
,∫ ∫
И∫′
て
99
The fo■ owing pro foHna anounts represent the acquisition costs,acCumulated depreciation and net book valueof ttnance leases,the agreements of which do not hclude he ttansfer of o、 vnership and started on of beforeヽ狂arch 31,2008,as of March 31,2013 and 2014,which would have been rcnected in the consohdated balancc
sheets ifthe leases had been accounted for in the same rnanncr as ordinary purchase ttansactions offlxed assets:
2013

2014

2014

Sα ユ
″
(T力 ο

′
ど
′
ο
η
s ο
F)′ ?リ
r豚 ′

60/

'′

ガ逓
兎と
デ
ο
ど
ど
αLE〃
こ

¥831
643

¥643

66,248

Accumulatcd dcprcciation
Nct book valuc

¥188

¥109

Sl,060Acquisition costs′Vο セ ∫И d∫ ″'9′Zθ ′ ,И ttxぉ rr力θ′ヵθ θι:r,,ど とJ′ ′じOsrS:''θ rク ル ′

,(7″
ゴρて

"̀,と

′
′
'rο

'Sデ

"0″

,ヵ
'''ど

'P′

メθ
?ク ″

"θ

,α ′
て ,た
′
んω!′ IS肋 ″
′αど
ノ 】
ノと
'α

S,188

′οr'ο rr,ο ″ ο
И,α S r力θメタノヵ r″ κ,″ ,″ 加Pq/胞 て'″ rs rο ′ο′と,′

″脇 ル鯉

̀,ο

,′ Jと

'と

'dて

Future■五nimum lease payments subsequent toヽ larch 31,2013 and 2014,for fmance leases,the agreementsof which do not hclude the transfer of ow■ ershゃ and Started on or beforc March 31,2008,are sualmarized as
fo1lows:
2013

2014

2014
2d伽 ぬ げ(T力 ο,sげ /ηノrν lrど ,ο ′

アSと 了
ο
′
′′
,)
〔
̀ュ

Within onc ycar

¥75

¥58

3563

Over onc ycar

1i3

51

497

¥188

¥109

Sl,060Total
デVο 佗:И 郎rdと,d?メ
0刀 ヴン ど″κ
dど 肋?躍 οИ,̀ユ S′ 力?ρ ′ορο声′
z?と ど
′
′
,セ 声
￠
r?r力 ?て IP'rと ′,,1てαS?sl,1じ ′とθ,sθ ρとこ
IS/0′ ガИと″/(:″ ′′″′′,,7″ ′ノ力ど'ノ "?η
'?力"l,:丁 "ク "施"9η
どl,′ ?″つИ
ど?92,メ′ar'Sで
rα ′ノ9'卜 ?″ どlもフ9■)r,肋 力と
P′ ο
,と

￨を

I′

'と

",,l?′
rο

,と ,′

̀ο

'力 '9打'"ヵ'α

Lcasc payments under such leases for tte years ended March 31,2013 and 2014,were¥265 Hlillion and¥75

million(US$729housand),respect市 ely.These lease payments were equal to the depreciation of leased assets
computed by the straight‐ hne lnethod over the respcctive lease tettms with a zero residential value.

In addition,the nュture minirnum payment for operating leascs subsequent to Mそ rch 31,2013 and 2014 aresummarized as follows:
2013

2014

Within one year

¥106

Over onc year

160

Total

¥266

″
Sと,″ ′
s Or
(7カ ο

３蜘
り６
一

,dο/ノ ￠″)
rνl″ lο ュ

2014
〃,/6ノ
[/S′ ο

S,43
612
Sl,555

10.Retirement Benerlts fOr Employees
Parent tompany and domestic consolidated subsidiaries are as deaned beneflt plans providhg pension ttd,sum retiremcnt benefltplans and deaned conttibution pension
deincd beneit corporate pcnsion plans and lump―plans,is thc parent company and certain consolidated subsidiaries sct the employcc retirement beneflt ttust.

Pension beneFlt companics and retrement lump sum with certain subsidiaries are calculated dcrined beneit
liabilities and retirement beneflt costS by the sirnphflcd lnethod.

■ed conttibution
AIso,in ccrtain overscas consolidatcd subsidiaries havc deflned bcncat plans.silnilar to de■plan cannot reasonably calculate the amount ofpension assets,coresponding to their con,ibution regarding theaccounting tteatnlcnt,some consolidated subsidiariesjoined a multi‐ employer pension and.

Derlned benerit plans 2013
The Companies have principany defincd beneflt plans such as employce's pension ttnd and deined beneat
corporate pension plans, lump‐ sum retirement beneit plans and defincd conttibution pension plans. Thc
company and certain consolidated subsidiaries also have securities conttibuted to retirement bcnefit ttust.
Certain consondated Overseas subsidiaries have deflncd beneflt plans.

(a)Retiremcnt beneit obligation:
2013

s氏Ⅲ
″
fο ″
輪
rν′

Retircmcnt bcneflts obhgation¥(12,953)

Plan assctts at fatr valuc

12,800Unfundcd rctirement bcncrit Obligttion(153)

Prepaid pcnsion cost

(5,075)

Unrccognizcd prior scrvicc cost2

Unfccogaized actuaria1 loss

4,577

Retiremcnt bcnefit obligattion for employccs¥(649)

″プθ
と
′,,,
,′ ′
て
ο″rJ′ θ,″ ?″ どう9Tガ ′″クV αrて ,,,,θ ′Ⅳο′?∫ Sθ じク′ ,9s θO″ ″rb″ ど
,ど

?"

Jど ク
P′ と
】
И,ss9′ sと :ど 力 ″ツと

The components ofretirement bcnefit expenses:
2013
rrヽ

η
dげ /リ
ィ
lμ
lο

¥762

Scrvicc cost164

lntcrcst coSt

Expcctcd rcmm On plan assets for hc ycar

(382)

2

Amortization of p● or scnrice cost

725

Amortization ofactuaria1 loss

¥1,271Total

l Rctircment bencit cxpenses lor consohdated subsidiaries adopting the simplincd methOd arc included iǹ̀Scrvicc cost"
2 Thc Companies'contjblltion to dcflncd contributiom pension Pians is includcd in

Sewicc cost"(C)The actuarial assumptions used in the abovc computations for he ycars ended March 31,2013:
a Methods ofattrbuing thc proJccted bencit obngatiOns to peHods ofscrvЮ

b Discount ratc:

α s甘 創Bht‐ lhe bas億10%c Expcctcd rate ofretum on plan assets:

35%

d Thc acttaΠ al gain or loss and prior servicc cost are amortizcd by hc straight‑11■ e mcthod over 13 ycars,which are w■ hin thc
estimatcd average rcmaining ycars ofscrvicc ofthe cligible eコ

nployccs

Derined benerlt plans 2014(a)Deaned beneit plans(excluding plans applyhg the simplifled method)(1)Movements in retrcment beneflt oblittations
2014

″
ゎ″
「

riィ

sο/ノ 9砂2014″
sと ,,ζ げ
(7祐 ο
,′

アS′οど
物/s,
と

¥11,03

S109,823

ScⅣ icc cost

435

4,27

lntcrcst coSt

113

1,098

Actuarial gttns alld iosscs

598

5,810

Balancc at beginning

Benerits paid
Total

(663)

(6,442)¥11,786

S l14,S16

(2Ⅲ Movemcnts

in plan assets
2014

′
′
丁
OИ sげ ヵり
rν′

2014
ク
S,И と げ(7カ οJ∫ナSとrOlrと s)【,′Balance at bcginning¥11,774

Expcctcd rettm on plan asscts
Actuarial gains and losses

4,003

1,050

10,202

637

6,188

丁
661Ⅲ

r6.423ゝ

¥13,12

S128370

Cont● butions paid by the employcr
Benefits pald
Total

S l14,400

412(3)Reconciliation from rctirement benerit obh8ations and plan assets to net dermed bencrit liabilities(aSSets)
in he consolidatcd balance sheets.

rνl〃 ,ο

2014
sげ ノ
aリ
″

2014
6げ
VSと ,″ ′
(勁 ο
′
′
♂′
∫
はS′ο
)

Fundcd rctiremcnt bcncttt obligations
Plan asscts¥11,786

S l14づ 16(13,12)(128,72)(1,426)(13,856)

rl.4261

r13.856Ⅲ(1,426)(13,856)

11.426Ⅲ(13.356Ⅲ

Total nct dcined bcncit liabilitics(assetS)

Nct dcined bcncit habJitics
Totai nct dcaned bcncit liabnitics(assetS)(4)Retiremcnt beneflt costs
2014
rν,怖

ο
И
s ο
/ノ リ

2014
″
♂
とぬ 0′
(T力 ο
'″

/sと rorr̀:′ 耳こ)

ScⅣ icc cost

¥435

S4,27

lnttrcst cost

113

1,098

(412)

(4,003)

723

7,025

Expccttd rcmm on plan assets

Amortization
Actuarial gains and losses

10

1

8β 57

Past scrvicc costs(5)Accumulated remeasurcments ofdeaned bcneFit plans(befOre tax)
2014

2014
9つ
〃
肋sο ′
ノ
rν′

″
Sと
(T力 ο

'''ぬ

げ

ど
h2/受 〃〔/S̀了ο
Unrccognizcd actuarial Bains and iosscs
Total

3,402

33,055

3.402

33.055(6)PIan aSSets①Plan asscts comprise2014
Lifc insurancc general accounts

23.70/O

Domcstic bonds

15,6

Domeslc equity sccurities

36.4

Forcign bonds

4.2

Forcign equity sccuritics

12.9

Other asscts

7̲2
100,00/O

②Long― te∬l expccted ratc ofretum
Curent and target asset aHocations,historical and expected retlms on various categories ofplan assets havebeen considcred in deterinining the long―tcm expected rate ofretum.

(7)Actuarial assumptions
Iarch 31, 2014 are as fb1lo、 vs
The prhcipal actuarial assumptions atふ ン
2014

1.0%

Discount ra俺Long‐ tenm expcctcd rate ofrctum(b)Derined bcnerit plans applying the silnphfled lnehod
Movements in defmed beneflt liabilities
(1 Ⅲ
2014

2014

ω

ttο

Sの の
η

r,げ
(T力 οS,刀 と/sと ror′ ,rs)こ¥624

S6,063140

1癖 60

Bcnc5ts paid

(180)

(1,749)Contibutions paid by thc cmploycr(139)(1'SO)

Balance at beginning
Rctirement bcncttt costs

Foreign curency translation ttustmCnts

329

lncrcasc by the ncw consondatcd subsidiarics

30

291
4,644

Balance at cnd

８
９
騨
７
卿
岬
︐
ω
２
梨
一
¨
一
一

(2)Reconciliation iom retrcment bencrit obligations and plan assets to net defined beneflt liabiltties(assetS)流

he consondated balance shccts
2014

sの 9リ

加ο
ヵ
rν′

¥1,148Funded rctircment bcncSt obngations(958)

Plan assets

190
Unttndcd rctiremcnt bcnerit Obligations

288

Total net dcSncd bcncat liabilitics(assetS)478

Nct deined bcneit liabilities
Nct defined bcncttt asscts

86

Total net dcincd beneSt tiabilidcs(assctS)478(3 ヽRetirement beneat cOst calculated

bv he silnolifled inethod
2014

2014
rν l〃

′
ο
И
sげ /″)

(勁 ο

"d,刀

[ナ

¥140

おげ

r̀,μ もS′ ο
ザノSl→ 60(c)Derined contribution plans lor riscal year 2014
The amount of requと ed contributions to the deaned cOnttibution plans of thc Company and its consondated
subsidiaries was¥1 83 million(US$1,778血 ousand).

11.Contingent Liab』 ities
At March 31,2013 and 2014,the Companies were contingently liable for the following hcms
2013

2t,14
rν lJ″

οヵdο/ノ ?Иノ

2014
″
S'′
Sげ
(勁 ο
̀′

/S′ο
rr̀:′ ,)〔
Discountcd and cndorsed tradc notes rcccivable

Guarantccs ofindcbtcdness ofcmployees¥1,339¥1,963¥1,350

S19,07368

11¥1,970

S19,141

12.Notes Receivable and Payable
Although March 31,2013 was a bank holiday,he Company accounted fof he notes whose maturity date wasMarch 31,2013 as ifthey had bcen conected On the day.
The amounts ofthcse notes receivable and payable arc shown as fomOws:
2014

2014

2013

Sa″ も
ο
″
/
(7枠 ο

どο
ヵs9rノ 94)
rν ′
r′

̀ゴ

/S♂ ο
′,rs,
〔
rと

Notes receivablc¥430

Notes payablc

2,137¥2,567¥―13.Land Revaluationvhich

ln accordance with the Law Concenling Revaluation of Land enacted on March 31, 1998 and the Law、

rcvises a pm ofLaw Concemng Revaluation ofLand enacted on March 31,2001,land owned by the Company
used for bushcss was revalucd,and the unrealized gain on the revaluation of land,net of defeITed tax,was
repOned as ̀̀Variance of land revaluation" witth net assets, and the relevant defelTed tax was included血
liabilhies as Defered taxes related to land revaluation"at March 31,2002.
lillionThe faと valuc ofthe land at March 31,2013 and 2014 was iower than its carying amount by¥8,855■
and¥89904 1nillion(USS86,514 thousand),respcctively.

14.Net Assets
The Japanese Corporate Law(heLaw")prO宙 des hat amomts tom capital surplus and retahed eamings may

ectors if
bc distributed to he shareholdcrs at any tilne by resolution ofthc shareholdcrs of by he Board ofI)とcertain pro宙 sions are met suttect tO the extent ofapplicable sourccs ofsuch disttbutions.
e
Thc Law i区Hher provides that amounts equalto 10%ofsuch distributions be,ansfeIFed tO the capital rescⅣ
included in capital surplus or the lcgal reseⅣ c includedと l retained camings based on the applicable sollrces ofsuch dis,ibutions untilthe sum ofthe capital reseⅣ e and the legal reseⅣ e equals 250/O ofcommon stock.
InfoHnation fegarding changes in nct assets for the years ended March 31,2013 and 2014 were as follows:
rと ,s tts夕 θプα
ηプ″9と,d夕 4フ drOと,たrα)s力 αForthe vear cndedヽ arch 31 2013
1生

Numbcr ofsharcs

Typcs of sharesat April l,2012

Numbcr ofsharcs

Dccrcasc

Incrcasc
T,lο ″
1と rS
sα ′at March 31,2013

S力 と
,79S

Sharc lssucd:

Common stock‐

308,269‑102

5308,269

Trcasury stock:

Common stockr9ι :dク ′ザ,′ θ
βtt O/j′ 力ο″S'″ ′S力 て s力 どVο セ∫r,っ て/d′ Oθ 々'″For he vear ended March 31

107

了
α′
′″ガ′
,力 ,sθ d,ハ カ
α″ S ttss r力,ヵ sど ,″とて
クタ οp″ ′'S′

2014
Numbcr ofsharcs

Typcs ofsharcs

̲at April l,2013

Numbcr ofsharesDccrcase

Incrcase

at March 31,2014

助ο
ク
dα ヵ
プ
∫げ∫
力
αttS
Sharc lssuedi

Common stock‐

308,269‐

308,69‐118

Treasury stock:

Common stock107

力ο″s,И
デVο ′θf r,,c″ αw ο
ノ″ ′

11

,,s″ 1/SrOて ,た た′″θ′οフ″′,腔 srヵ v′ と

's力

̀'力

'S9sり

ヵと
ゴ
と
,′′′
,,,ど
監力β″ Sた Ss′ 力αヵsrι 】

虎ηと
′
∫
ω Dル デDividends paid to shareholders for the years cnded WIarch 3 1,2013
Total

Rcsolution

Typc ofshares

dividcnds

Origin of(milliOns Of

dividcnds

D"idends
pcr share

Ercct"eCut‐ ordate

datc

(yCn)

ycn)

Annual generalmccting of dle

Commonsharcholdcrs on

stock

308

Rctaincd

100

eanllngs

March 31

Junc 28,2012

2012

Junc 27,2012

There werc no dividends paid forthe years ended March 31,2014.

15。

Selling,General and Administrative Expenses

The breakdown of

Scning,General and Ad■ linistrative Expcnses"forthe years ended March 31,2013 and2014 was as follo、 vs:
2013

2014

¥1,361

Shipping chargcs
Other scWing cxpenses
Salarics and otther allowanccs for employces

873
6,446

Retircmcnt bcneits expcnscs lor employees

765

Retiremcnt bcncits expcnscs for directors and statttory auditors

25

A‖ owancc for doubtin accOunts

34

Deprectation and amoHization cos亡

831
7,041

Other

¥17,376

︲ ８９
２
０
３
２
４
ω
朗
７
７
９．
０
蜘
即
︐
７
一
一

η
∫ο
″
′
rν lr″ ο
ノ￠
ノ

2014

"ぬ /

お
(勁 ο

ο

ls̀r。 ′
こ
′
と
ェ
rs,

S12,923
6,811
61,378
7,122

272
(593)

8,929
68,422
S165,264

Selling, general and administtat市 e expenses'' andResearch and development expended included hmanufacture costs for the year cnded WIarch 31,2013 and 2014 amounted to¥995■ lillion and¥252巨 lillion,¥858 1nilhon(USS8,337 thousand)and¥240 1niltton(USS2,332 thousand),respectivcly.

16.Impairment of Fixed Assets
Forthe years ended March 31,2013 and 2014,the Companics recognized loss on impattent of flxed assets of¥4,348 million and¥8 million(USS78 thousand).
For assessment ofilnpai二 11lent offlxed assets,the Companics group idle assets and assets for lease based on an
individual asset9 and oher assets based on he catcgories uscd in the company's lnanagerial accounting,where
gain or loss periodicany lnonitored.

Forthc year ended March 31,2013,as for faciltties felated to power cable manufacture located in Aichi,therprofltabiliり

had remarkably dechned due to sluggish domestic demand and he book value of the assets was■liniOn. As for facilhies related toreduced to recoverable amount. The amount written down was¥3,342
magnct wire manufactllre locatcd in Tiatth,China,hcir proatabiliv had remarkably declined duc to hechangcs in market environlnent and the book value of he assets was reduced to recoverable amount. The
amount written down was¥561 million.As for facilities related to communications cable manufacture locatedh Miyagi,it has been scheduled to dissolvc consolidated subsidiary of Miyazaki Electtic Wre&cable Co.,

Ltd. and the book value of the assets was reduced to recoverable amount. The amount written down was¥361million.As for facilities related to Ю ller manufacture and lease assets located in Fukushima and Tokyo,

her market valuc has remarkably fallen against ther carying amount and hc book value of the assets was
liniOn and¥21■ 五Hion,respectively.
reduced to recoverable amount.The amount written down was¥63■
Forthe year ended Mと rch 31,2014,as for facilities related to lease assets located in l■ okkaido,their markct
vas reduced tovaluc has remarkably fallen agahst ther carying amount and the book value of he assets、

recoverable amount.The amount written down was¥8 million(USS78 housand),reSpect市 ely.
The recovcrable amounts are hcr net selling prices based on estimated sening priccs and he pubhshed land
price as for leased assets,

The amount written down、 vas recordcd as loss on impailrnent of flxed assets. The breakdown of loss on
impattcnt offlxed assets was as follows:rT力¥3,239Buildings and structtrcs

2014

2014

2013
rど ,ο 刀∫9rノ 9"ノ
rν′

∫ ぬο
ο″
r
̀,И
ガd′οど
r̀,「 sノこ¥‐S‐Machincry,cquipmcnt and Vehicles
Tools,色 miturc and ixttrcs
78

Land

Ohcr

77

¥8

¥4,34817.Business structure iコ RprOVement expenses

Details ofbusiness structure improvement expenses
2014

2013

Scvcrance paymcnts fbr early rctircment

¥326

2014
おとぬ げ
(η ο

ど
ど
′
ο
η
sげ /刀)
rν ′

'″

も
〔
ナ&′οr筋 ′,¥120

Sl,166

Loss on dissolvc subsidiary rclatting to windrawal

l,170

75

72,

other

,ona certain business

82

53

515

Tot』

判 ,578¥248

S2,410Forthe year ended March 31,2013 and 2014,the amount ofbusincss sttucturc improvement expenses includes¥1,188 million and¥1 87 million(USSl,817血 ousand)tranSfered to he pЮ 宙sion for busincss strucmre

improvement expcnses.

18.Income Taxes
Signiicant components ofdefered taxes at March 31,2013 and 2014 were as fonows:
2013

2014

2014
Sο/
〃
S,″ ど
(勁 ο
こ
たS̀ゴο ,′♂
)′
ο げ/″)
rν ′
,′

"♂

rrと

Dcfered tax asscts:

Loss c叫 ‐fOnvards
Unrcalized gain on rcal estatcs

Accrucd bonuscs
Dcprcciation¥8,787¥8,888

S86癖 10

624

623

6,053

537

539

5,37

1,409

1,43

12,077

1,11

11,766

Actuarial ghn of loss
Othcr accounts Payablc

RcscⅣ c fOr busincss structtre improvcment loss

Ohcr
Subttotal deferrcd tax assets

Valuation allowancc
Total deferred tax asscts

387
440
1,939

2→ 41

22,747

14,123

14,840144,190(12,536)(13,453)(130,714)

1,587

1お 87

13,476(538)(5,227)(419)(4,071)(173)(1,681)

Dcfcred tax liab‖ ittcs:
Net derlncd bcncrit asset

Unrealizcd holding gains on sccu両 ties

(391)

Profit and ioss adJustment ofthe conncction corporation
intewal busincss
Prepaid pcnsion cost
Securitics contributtd to rctircment bcncfitt trust(1,010)
(403)
(276)

(516)

(5,013)

Total dcferred tax liabilities(2,080)(1,646)(15,992)

Nct dcfcttcd tax asscts oiabJlies):¥(493)

Other

Dcfcrcd tax asscts rclatcd to land rcvaluation:

Valuation allowancc

S(2,516)

1,359

13,583(1,359)

13づ 83)てTotal dcfcrcd tax assets rclated to land rcvaluaion
Dcfcred tax liabilitics rclatcd to land revaluttion:
Total dcfered tax asscts(liabilidcs)rclated to land rcvaluation
Nct defcrrcd tax liabnities rcl正 cd to land rcvaluation:(4,739)(4,876)(47→ 77〉(4,739)(47,377)¥(4,739)

S(47お 77)

The differences bettccn the statutory tax rate and he cffective tax rate werc summarizcd as follows:
2014

2013
ノ

(°/o)

r/ο

37.4

Leg』 ercct"c tax ratc54。 2

Thc items which are ncvcr counted in ioss ofrnoney such as donations
Thc a【 nount ofincrcase and dccrcase ofthe arnount ofevaluation‐△ 79.9relatcd mongagc

Thc hcms which arc ncver countcd in a gain such as receipt d市 idend△ 3.8

Residcncc tax per capita rate

28.0

lnvestmcntloss by thc cquity mehod

27.5
14.7

Reduction correction ofdcfcred tax assctts by the tax ratc changc△ 15.7

Overseas tax rate dircrcncc

Amortization ofhe Coodw‖

△ 2.4

I

Other

△ 2.9

E∬cct市 c tax rate

57.1

Corection ofthe amount ofrnoney ofthe defelTed tax assets by thc change ofthe tax rates such as corporation
Act lも r Partial Revision ofthe lncome Tax Act etc."

taxes and the putting offtax debt on March 31,2014,thc(Act.No. 10 of2014)was offlCiany issued and,accordingly,the special Japanese reconsttuction corporate tax
applicable to the Company and hs domestic subsidiaries will not be apphed effective the year ending M【 rch 31,
2014. Corespondhg to this change,he statutory tax rate applied in calculating defelTed income taxes was

reduced IIom 37.4%to 35.6%.
By the change ofthis tax rate,the amount ofrnoney ofdefelTcd tax asscts decreased 54■

lillion r[′dj2j r力

∫
α
η
′
ο
ク
,9

と
ゴ
″
sα η
).
and he amount ofsuch as corporation taxes attustment Юse 54 million ttSSj2j r力 ο

19.Financial lnstruments(a)POliCy fof inancial hstruments
According to the ttnd management policy of thc Company,temporary surplus aュ

nds win be hvested into hehighly secured rinancial assets, and nccessary ttnds for finance investHlent are prilnarily borowed tttollghbank loans.Derivative ttansactions are only used for hedging risk ofthe significant auctuations in interest rates
and foreign cllrency exchangc rates,not fbr speculative purpose.

(b)Fh孤 lCialinsttuments and accompanyhg risks
Trade notcs and accounts receivablc are exposed to customer credtt risk.Trade receivablcs in foreign currencics
and foreign― curency loans among the Companies arc exposed to exchange rate ductuation risk, which ishedged tttough foreign curency forward exchange contracts.Invcstment securhies are composed primarily of
equlty secllnties ofcustomers and exposed to he market value auctuation isk.
Trade notes and accounts payable nollllally have payment telills of less than one year.Although part of theabove ttade payables and foreign‐ currcncy borowings trc cxposed to the risk ofexchange rate fluctuation,theycurrcncy ttadc receivablcs.Long‐ terin debts,which haveare constantly controlled within the amount of foreign―

maturity dates wihin flvc years and nine monh,are primarily uthzed to secure ananchg fOr equipment.

Borowings、 vhich are based on variable interest rates arc exposed to interest rate nuctuatiOn fisk.However,
hey are hedgcd tttough derivative,ansactions,i.e.illterest rate s、 vap agreements.It is possible that longiel111
debts under syndicated loan conttacts which are decided by the inancial rcgulatory condttions wi11 losc tellll
bcnerit ifany con,adictions occurred.

Derivativc ttansactions consist mainly of foreign currency forward exchange contacts which are used for■uctuations ■l trade receivables and payables dcnonlinated h foreign

hedging he risk of exchange ratecurrency,and interest rate swap conttacts which are used for hcdging he risk of intcrest rate auctuations inborowings.As hedghg policy,appropriate hedge hsttuments shan be sclected per risk category.Evaluation ofhedge effectiveness is perfoHncd tttough comparing market value ofhedge items or the amounts of cash aowswith lnarket value ofhedge instruments or the amounts ofcash aows.

(C)HSkS managemcnt system assodated wih anancialinstrumcntsl)Credit risk management(Hsk Ofdettult on payment by counterparts,etc.)
1l and payment balance per ttade ttansaction m order to con仕 ol and
The Companics lnanage paymentte二 二、vith the Companies' creditm■ igate credit risks due to financial situation difficuhies in accordance

management poncy.
Whcn dealing witt he der市 at市 e,ansactionsラ hc Companies only ttade wtth highly rated fmancial
institutions to minimizc he counterparり 'S Credit risks.

2)Market risk management(Risk ofcxchange rate and interest rate auctuation,ctc.)
Thc Company utilizes forcign curcncy foAVard exchange conttacts to hedge he risk of exchange ratc
ductuation,Depending on thc situation of fbreign curency exchange market,he Companies use foreignforward exchange contracts for trade receivables in forcign curency. On the oher hand, ょltcrest rateswap agreements are utilized to hedge the interest ratc auctuation risk associated with corporate bonds

and borowings.
The Company periodically reviews the皇 五r valucs of financial insttllments,such as lnarketable securities
llation andand hvesttnent securities, and he financial position of he issuers. Based on this info二 二
relationshゃ with thC iSsucrs,thc Company evaluates whether he sccurities should bc maintahcd or not.

Derivative 廿孤lSaCtions are perfomed and managed in accordance with he Companies' credit
management policy.
3)Liquidiり risk management on inancing activities(Hsk Ofinability to repay on due date)

The Company, as parent company, manages ttnd of the group companics. The inancc dcpartment
preparcs and updates fmancing plans periodically based on thc group companies'neccssaries and keeps arisk managcment.

ccrtah amount ofcash in hand for the purpose ofliquidiり(d)OthCr supplemcntary in thc fair value of anancial instruments
The faと values of anancial insttuments are based on the markets prices or rcasonablc cstiinated fal values

when he Fair values are not available.The estimated far valucs win auctuate due to variety of factors andassumptions.
InfollHation regarding non‐ marketable other securities,fbr which it is exttemely difflcult to deteHnine the fairvalue at March 31

2013 and 2014 is shown as follo、 vs:
2013

2014

2014

CaHying amounts(Tヵ ο″Sa,′ ,げr′ 。
Иs pr/り
rν ′

[ガ

ο′
′
と
こ
′
s)
Sと了

Othcr sccu百 tics

Stocks and invcstmcnts in unlisttd companics¥3,760¥4,471¥3,760S43,442¥4,471

S43,442

The canyhg amounts and faと values ofthe flnancial ins,uments on the consolidated balancc shcct as of March
31 2013 and 2014 are summarized as follows
2014

2013

CttingFaif

amounts

Valuesamountt

,sげ ノ
θ
力
′
r″J〃 Jο ′¥8,683(1)CaSh and jmc dcposls¥8,6832014
嫌CΥ Ving

Fair

Valucs〃,ο η
sげ /4)rν′amounts

ValucsC∬ Ving嫌Fatr¥7,785(助"d,,,'SげS‐

471β 37

471,50(87〉

3,S4

38,41838,418(24,026)(24,026)(233,443)(233,443〉(36,474)(36,474)(354→ 92)(354→ 92)

(233,288)(234づ 03)

(14,846)(14,846)¥―

S75,641

ナdι ゴ
【
ο
ど
ね′
s,

S75,641¥‐¥7,785

嫌(2)TradC nOtcs andaccounts rcccivablc

47,054

48,618472→ 86

(197)

(108)

(1,049)A‖ owancc for doubtaJ
accounts

46,857

46,849

3,869

3,869

accounts payablc(23,631)(23,612)(5)Short‐ ten■ boHowings(35,398)(35,398)(8)

48,51048,501(9)(3)InveStment sccuritics

and ohersccur■ ics

3,954(4)Trade nOtes and(6)Long‐ tcHn borrOwings(21,298)(19)

76(21,374)(24,010)(24,13S)(1,S28)(1,523)125

1,lS(7)Dc● vativc transacjons(1)HCdgc accounting
not applicablc(94)(ii)HCdgc accounting

38

38

applicableプVο セsfr′,,″ ?′ιねノc,s力 ̀Jヵ プ′
Pο ∫rヵ 9 θ
,メα/ヮ Jン ,g ρttο ″″ と,ど ο力9s力 ο
′
ο
θ
d力丁
′ν
,′ ″
θと
′
クて
ガ″ ″′
テ
カθ
S"〃 s′ ′
″胞θ
η簿
″肋α′
νげ サ
,と ,ど

'フ

,″ ο
′
θ
d,P,ブ ,θ θOク ″恋″て,,フ ι】う修r7)磁 ′て
,て

,プ ο
′
:′て
,″ ο ,s,η ′,て ,ο ク
″rS″ θ
9,フと,う ′とて″r力 θP′フと″9″ s,,,=ι アフ″θ″′Jsθ ο′ヵr′とθ勁 ?力 α′ク￠げ r′とリ /Jι Jセ θ'フ̀,Fsう̀,s9,,′
'rツ
ど
′
ュ
∫
た
】9θ 比修′″
ο
η′
力
￠
″じ
ο
ッ
91ン
′
て
″
:と
】
И
′′
力
?θ
xχ
フ
rて

:∫

,て

:′

:メ

:ど

,′

'″

r,ノ

,″ ′
s,″ 9η r sθ て丁′諺s,″ ′0ど 施rsて,て,″ r'ア セSr,,フ θ

y打 ′ッ
T力 ♂
αザ
クθげ 加wsy,″?″ sθ ω′,ど,9う
αsて,′ ο,,9ク οた′胸αr々てフガて
,ど

'9dお

プ9ヵ οセ∫と
ど
ιθ
ど
う′
,ヵ ′と
ο″〃rd Pと 】てrイ, T′α
ノと',て :S力r"′ ″ιο″,s,″ ′α∫￠∫″廟,セ どう,sθ ′οヵr力 ?フ 確s9,,ど ν
ι″θ轄ェ ′′′て勁 θカ テιゴ
9カ ο′てθθο″″rsフ ,ノαうた ′ア′′0,7∫ ″d:′ ,gと !P/,rο′ ′
:′

:ι

:0ツ て
pο ,,″って,″ ′′9,,ど とど
Isて ,ο ク,,ど ′とど/θ ν力 ,力 Jd】 ?θ :̀ゴθ
′″
て

/´ ,7
//ο 予
う
ο
7'P,gsノ s力 ο

r」

rて

'r/′

'て

9′

′
″α
'P′

,と

'″
,rて ,′:r′
て

サ
οο
's々

'セ

T力 θて:/1/1′ :gα,ι"ο,防 bο ″οw:″gd wrr力 ,η ο″9∫r′ ″′″?ヵ た と0',=‐ ど
と
′
d?′ ″
クθ′″列 οr力 θs力 οォ胸 ″′″,,ど とIPprο テ肋αセs力 ″ッα′
ぅ′げ r力 θ
̀:′

,メ ′
,,ど ο
,,g舵 ′
′
″bο ″
″
οェ
クカgs
て て Or′て
ノ ″α″
'′ 'θ
̀'α

′
,=佗 ′
′
″う
ο
″
′
ο
ν,,P=sノ 上ο

r」

勁 9ジ し ,ァ ッα′
ク9ヮ

rθ

。′
メ ′と て'ο'ど,″ sr′ιカ ,力 α形′￠″′ Isθ O″ヵセ ′ 丁″′て】rて ,s予 ク,,gs ακ うとJ∫ θ′ οИ r力 ￠ θ″′ι
rs,″ メ ′οИgど ″ 脇 bο ″ οlッ 丁
Jで

'bO″

̀′

で
と
を
ど
″テ
脇■
ν 力丁
″0″ 9/α ′α′′,=s,7'rカ カ￠′
″
,う ο
ヵと
ゴ
dα ′
,ダ ′
οη ′
て″ うο″οンテ
脇?θ O′ ′rFOИ s COrr'ο ′α′てう0″ 0,7て ′,7'′ 力′
力9 sι 】
タ セ′
'ブ

'ι

デ
ヵvο ′
ッ
θ江

'′

=‐

2013 and 2014 are summarized as follows:schedules for cash and trade receivables ancr March 31
Within l ycar

Over l yearrνOver 5 years

Within i

and within 5

and within

ycars

10 vears

J〃

'

'′

Over l year

ycar

Over 5 years

and within 5

and within 10

years

ycars

ガd′ο
″
∫
α
″
ゴSげ こ
′
ね/s,
(勁 ο

丁
0,,dげ /〃

2013￥

¥8,683

Cash and timc dcposits¥‐

Tradc nOttcs and43,196

3,858¥51,879¥3,858¥7,785¥‐￥accouats receivable

Total ofthe amounts

2014￥

Cash and time deposits

S75お41

S‐

Trnde motes and45,4793,139

Total oFthe amounts¥53,64¥3,139

Redemption schedules for ttade payables,long―￥accounis receivable

441,387

30,499SS17,528

830,499bo■ owings ater March 31,2013 and 2014[retcコ msummarized as fo1lows:
Within l year

Ovcr 5 ycars

Within l

and wihin 5

and within 10

year

ycars

years

Ovcr l ycarp布 〃ゎ′
,s。ノ
砂
ノ￠

(7´

Trade notts and¥23,174

¥457

7,525

13,773

Ovcr 5 ycars

and witthin 5

and within 10

ycars

vears

′dと ゴ
ど
′
ιs,
ο
″
S,力at ο
ο
ノ〔
:′

￥．

2013

Ovcr l year

accounts payablc

borowings

Tottal ofthe amounts

305¥30,853¥14,535¥24,026¥‐

7,975

16,031379

1,155¥32→ 80¥17,186

２
２
￥

154

Lcasc obligations２． ２

Long‐ 俺m2014
Trade notes and¥‐S233,443

S‐

77,488

155,761
11,223

S314,613

3166,984

４
８
８

Total ofthe amounts

3,682

５
４
８

Lcase obliganons

８ 瑚Long̲term borrowings

９３

accounts payable

20.Derivatives
The fo1lowing is a su■ lmary ofthe derivative contracts which do not rneet the criteria fof hedge accounting:(a) Currency― related Transactions
2014

2014

2013
Contracted

Falr

Rccogn:zed

Contracttcd

Fair

Recognizcd

Contracttd

Fair

Rccognizcd

alnountvaluegain(10SS)

alnountvalucgain(10SS)

amountvalue

gain(IOSS)

ο
ヵ
s9′ ノ
9打)
rν lμ ′

rT力 ο

′
′
ア
ο
ヵdο/ノ?″)rν ′′ysrェ ,どsο
/廷

y,′も
/Sどο
′
)

FoAvard forcign

¥(79)

¥935

(7)

(7)

1,461

(1)

(1)

25

187

(5)

(5)

¥943

¥(3)

¥(3)

(sen̲usD)¥1,893

QAR)

148

KWD)

4

‐
(Sc田 SGD)(Sell‐

(SЛ 卜

¥(79)

則０．

則①．

exchangc contracts

S9,085

S'7

S97

14,195

(68)

(68)

243

10

10

Fomvard forcign
exchange contracts(Buy‐ USD)て,ぬ,Vο セf Fbrrソ と
,ど ク

¥516

¥(2)

θ
θどツと
】
′
,9∫ prο ッ:プ9′ 妙 y渤 順″う,w′ ο″′力99ク οセ′″′
ι
J′ 々

,と:′

,″ s′ ,ど

平(2)
クサ
:Oヵ s

SS,014

S(19)

S(19)

The fo■ owing is a summary ofthe derivative conttacts which tmect the criteria fof hedge accounting:fa)Currencv‐ related Transactions

Cm

Contactcd

Faば

amolmtoveram()unt

2014

2014

2013
valuc

Contracted

Conttncted

Fttr

Contracttd

Conけ acttd

Faramountamountover

valucamountamountover

valuc

ly釘

l yearl ycar

′
′
Trd)
み
ο
″
da″ ぬ げ Jd∬ ο

″
♂ο
″
ο
側▼
デJ'?■)もげ/砂″解 lrォ 。

『

Forward foreign

cxchangc
conttacts underpinciple(Buy)

EUR

¥178

¥‐

¥38

¥‐

¥‐

¥‐

S‐

S‐

$―

′
とJ,,s′ Fr′ ′
′
0″ &
ツ′
で
,′ bノ ′
η
αИ
θ
′
々
￠
ィ
ッ
α′ sフ ′
ο
α
v′ ο
″ど
力
θ9″ ο,メ ″″プ
Vο セf Fι :,′ ッとJr″ 9ぉ ぅ
rて

,′

rι

,ィ

"θ

fb)Interest― related Transactions

ContacindContactcd

amoint overalnount

2014

2014

2013

Far
v』 uc

cOnmcttd

Cont■ cledamountaコ

nount overFair

cOmmctedContracted

F正 r

valuc

amountamountovervaluc

l yearl yearl year

″
物
P:″ ο
″
Sο ′
メ♂
)
や

ν′
rr,。 И
s。/ノ 9砂r′

rT′ :ο

′rars)″J̀:″ ♂
Jげ uSど ο

Intcrcst rate swaps
Pay/荀 xed andReceive/11oating
Long‐ tcrln debt

¥9,158¥6,150,s,フ と】力?J,,r̀,″ sr rα ′てダVο ttf r「2,′ フ
と
:′ 夕
θο
′
ノ′

'S′

¥‐

¥10.010¥6,675¥―

S97,60S64.856

S―

′と
JИ ∫
と
:θ ど
テ
0,た J,,θ ′クι′と,′ ′η ′力9ヵ ″ Vα ′′?οガ′力?′ ο,,grて ,″ 阿 ιゴθうん

21.Per Share lnformation
Net hcome floss)and net assets DCr Share forthe vears ended March 31.2013 and 2014 wcre as fbllo、
2014

2013
r/9刀)

Nctincomc(10SS)per sharc

(こ

判 .63

¥(2066)vs:2014
ガS rrο

rrと ,″ 6ノSO.006Sl.049Nct assets pcr sharc¥11376¥108Ю ONet incomc per share is calculated based on he net hcome(loss)and he Weighed average number ofshares
outstandhg during each year.Net assets per share are calculated based on he net assets excluding he minority
end.
interests and the number of shares outstanding atthe yea『The basis for calculation ofbasic net income per share was as fomows:
2014

2013
'ο

Net incomc(10SS)¥(6,365)

Net incomc(10SS)attributablc to shares ofcommon stock¥(6)365)

Weightcd avcrage numbcr ofshares lbr basic nct income

308,164

rT力

ο
"sと

2014
S,′ ,ぬ ο/(勁 ο″
アSどο′σ′6)とS9Fノ 9И)
留 ど〃
lザ

¥195
¥195

,′

Sl,895
Sl,89550/訪 ,声 つ,ど

308,156

As‖ Changes in accolnting prhciplesW,h accordance wtth ttansitional accounting as stゃ

ulated in article 37 of

the Accounting Standard for Retirement Beneflts,as a result,net assets per share decreased by¥11.4.

22.Other Comprehensive lncome
Reclassiacation adiustments and tax benerit included近 l other comprehensive income are shown as foHowsi
2014

2013
rν l″

2014
ど
(T力 ο
̀げ
ナsと ど
lα ″
s,
〔

′
ο
ttsげ/刀′

:lSと

'И

r。

Nct unrcalized holding gが ns(10SSes)on othCr sccurities

¥62

¥287

lncrcasc during thc ycar

RcciassiacatiOm ttustmCnts

38

Subtotal bcfore tax

325

(26)

(102)

Tax cffcct

S602

(253)

Nct unrcalzed holding iosscs on Other securitics

Dcfcrcd gains(losSes)On hCdgcs

Subtotal before tax(14)

Tax crect

６
３
瑚︲

(38)

lncrcasc during the ycar

(369)

14

Nct deferred gains on hcdges(233)

Variance ofland rcvaluation

Tax erect(137)(1お 31)

791

7お 85

791

7お 85

ustmCnts
Foreign curcncy translation田 しlncreasc(dCCrcそ LSe)during dlc ycar

540

RcciassiacatiOn adJustmcnts(4)

Nct forcign curency transtation adJustments
Sharc ofothcr comprehcnsivc incomc ofalttliatcs in cquity mcthod

Total other commprchensive income︲
８９０
３ 一０ 一︲︐

lncrcasc during the year

775
1■ 41

23.Segment lnformatioll
Business Segments¶随 bushesses oftte Companies are d市 ided based on he similarity in pЮ ducts and seⅣ icc categodes hto ive
atiOn are separately available fOr the rnanagement to make decisionsclassiflcations whose financial info二 皿二regardhg management resources allocation and evaluate each business segments result regularly.

Thc Companies prharily operate h he fo1lowhg ive reportable bushess segments:(1)Elec前 c Wire operations:
Bare conductors,bus,insulated wres(2)Power SyStem operations:Electtic power cables,electnc power appliance,power cable consttuctions(3)MagnCt Wと e operttions:
Magnct wres(4)Conlmunication Systcm operations:
Optical riber cables,corxlmunication cables,co■ lmuniCation cable cOnsttuction,ncⅢ Ⅳork sOlution system(5)De宙 ce operations:Prccision devices,vibration controlling devices and wre harnesses

The bushess segmcnt

C)thers"which is not sttited as reportable bushess segment,hcludes the businesses ofselhng superconducthg wres,10giStics and oher operatlons.
RepOrtable segmcnt perfoHnance is evaluated based on opcrating incomc or loss.Theと ltersegment sales and仕ansfers bemeen sc8ments are made at arm's lcngth prices.

The bushess segment infoHnation for the Companies for the year endcd March 31,2013 is summarized asfollows:

RcpoHablc Busincss Scgmcnts

2013

SC卿 面 硼 曲

g

Ⅲ噸

¨

髄 n

Wrc

S、

Elc血

FbⅥ

Vrc

S、

Tttl

Odl鶴

酌 儘

帥

呻

髄 ■1

rν J〃 FO,,sげ /力)Net salcs
半169,798

10,30438,322(33,322)¥12,324

撃203,120<33,322)<447)¥1,212

当3S)¥1,127¥10,221¥136,659¥232¥136,891

663

3,279

(109)

3,170

2,352

71

3,129

701

11283

3,923

¥19,SSl¥41,364

18,3771,164¥85,164¥42,S28

ioss¥2,377

業1,403)撃(157)<218)¥1,065

Scttent assets

堅41,236¥391688¥12,637

挙18,465

撃14,412

510

836

354

489

427

lnter scgmcnt
Total¥169,798

撃2,020¥20,217¥19,859¥66,787

Outsidc customers

2,OSS¥20,303¥22,272¥20,529¥169,798

ScBmcntincomc or

Dcprcciation

hvcsmcntt h eq面 げ嗣

od attliates

lncreasc in flx assets

3,129
3,812

(111)

Ⅳοtts∫〃ブο乳∫0デ γ∂j′ ″√″河?とゴど″Иとゴ
οddゴ ηθ′ノ″ ,″ 9〃 ′)Segttθ ηr ttθ ο脇?ο ′′
sど

r′

,″

,し ′
彦αサ
JOヵ
て
,ゴ ″′
げ ,μ ο′′ノ θO力 Sた ′′′οO/gο ο′,ク デ/ヨ 師 7

デ
′
′
デ
οη

ο
′
οθα″′ ′
躍デ
′
′
Jο ″
て ′
ο箋
,解 ,力 ′ノ じοη∫:∫ 佗ブ 0/r力 ?θο脇瑠οη αttθ 癒 刀Or α′
ノSegttθ ″ αss9′∫力て クカ メ カ Ѝゴプ′sr,Tθ ″rs α″Tο ″η′
'′
',フ
g,ど
′
セ
,α
′
彦
9′
″ο
″
T″
′
ブ
ο
η
α
η
′
″
η
〃
sげ
9Jび
,「 ∫
ηチ
て
?gμ 9η ′″αη∫αθriο
ブ′′ブοtt θ力脇ど〃α″0〃 ο翌
αワ d('g″ T9η √げ ≠′2,J'7
デ
デブ
,′

rク

学2,979ゲ′′ゴοη T力 ?θ ο″躍 OИ

テ∫￠【″′J′ ブs

rθ

,∫ す
盟9刀 ′
rs αη″ ヵッて,′ ヴ と:∫ ヵてοαり s9gttθ ″r脇 ,ヵ ′チ ηO′ α〃Oθ α姥′′,ガ 脇?′ θρο∫ヴノ θοηdね ′
6・

'SSθ

̀テ

,α ′
て
滋 ′gと J,ヵd θOrrて ,dPο ″′∫rο クη′,pVθ 力万Oヵ 力 И菊笠sttη 9カ ザノつて力μ′9α ′
滋 ′gと を′て,θrィノヵ θ
カ θtt β∫∫θね 力 Иけ クd′ 脇θηtt θO′′9SPO″ 汐
.

rじ

̀9カ

rjノ

.

̀rO′
′
F4g力 θ
ο
ηθ
η
∫
ο
′
財α
セ
′ο″α
Oη ぬ ′
οθ
ο

′′
ο
rκ ψ
ο
ttθ ο
ο
∫
s θ
s9gttθ η
r力 θ

ρ

.

arized as

Thc business segment infoHnation for he Companies for the year cnded March 31, 2014 is sul剛
follows
2014

SC卿 的

Reportablc Business ScBmcnts
Fも Ⅵビ

軸

S髄 ィ

Wgc

蜘

l

飢

帥

…

Wre

l

Tぬ

臨

蘭 nCe

山躯

S商
0,,sげ ノ9″)rν :〃 丁Nct salcs

Outsidc customers
lnter segrnCnt

Total¥86,544¥27,900

単21,751¥23,597962

21,206

望107,750¥211356¥28,096¥22,386¥22,318■23,817¥183,289¥2,141¥183,289

10,28833,S07(33,507)¥12,429

堅216,796<33,S07)¥183,289

Segmentincomc Or
ioss

Scgment assets
Dcprcciation¥1,554

諷 392)

×46)

半S67¥1,153

業331)¥2,505当8¥2,553¥47,092

望32,879¥13,506

撃19,673¥16,187¥10,720¥140,057¥31S¥140,372

636

353

352

440

522

762

3,065

(■ 7)

2,948

789

1,272

hvcstncnts h cqulty

mttod a価 1山 陰
Incrcasc in ix assets

3,831

2,322

4,515

3,331

2014

Rcportable Busincss Segmcntts

se卿 ―

Fb■ g

軸

m(/Ja

酎駐m

Wrc

Ods

IⅡ 横

N唖

Tttl

ハ巾 的 鮎

¨

…
齢帥

Wre

rT力

′
′
αr,,
ο
″
∫
と
,,,お 0/と /S♂ ο

Nct sales
Sl,780,388

Outsidc customcrs

S840,386

S271,085

3211,339

S207.501

S229,27S

S20,802

Sl,780,888

lnter segmcnt

206,044

1,904

6,170

9,347

2,138

99,961

325,564(325,564)

Sl1046,930

S272,989

3217,509

S216,348

S231,413

S120,763

S2,106,452

S(325,S64)

Sl,780,388

S15,099

S(3,809)

S (447)

SS,509Sll,203S(3,216)

S24,339

S467

S24,806

3457,559

3319,462

S131,228

S191,148

SiS7,277

S1041159

Sl,360,833

S3,061

Sl,363,894

3,420

4,275

5,072

7,403

29,780(1,136)28,6441050

37,2239,202

43,869To(alScBmcnt income orioss

Scgmcnt assets

6,180

3,430

mcdlod atthates

27,4198,7S4

lncreasc in ix assets

7,112

3,099

Depreciation
hvcsincntt m c■ uけ

7,666

4,431

12,35937,223(525)

43,344

′
Vο セ∫
∫
r♂
′
ゴ
〃デ
οηFノ S,イ び7rヵ ο″sα ηと),μ α力′ノじο′ 佗′り

8′ク施 ′力 И〆OS∫ 力θθ〃 力θοttθ O′ ′プ″sr刀 19,,府 0デ ■″,S箸 ″ιs,″ 妙クgο ο〃んИFノ S,72,チ カο
′ン
ク
デ
〃ο
/野5 デ

r′

ω

'SI∫

οrrJz,rブ ο″ο
デ′力ο″ r〔 アs,3,0び ′ r力 οク∫αηり ,〃 Tα 加 ′ο ≠J′ 」 脇 デ∫αttOク カ佗 ′ チ
ゴ/r力 θ θο盟 ″Tο ηノ θοηSね セ ′ ο
プ″s,″ ￠ヵ′
Segttθ ηr,郎 ?た 力 θ力 河?′ 力 Иと
′
作
sて
,g″
Tθ
ηr
α
rJο
И
ヵ
セ
力腔力
′
力ο〃 (USS′ ′■ 7イ 9r力 ο″∫αヵ′ノゥθ′′οθα佗 ′ ′ο α,7sて,g"θ 力rοデ 判 ′,3′ θ デα∬ θチ∫ ηOr α′っOtt Oデ 親 97,″ ,デ 〃ブοη r〔 ア(sd99 77'力 οクsα ″砂 ,η ブ ″″躍 α′テz″ gα ttη οデ 髪 Wν

′
,オ ブ
rrと ど
?dα て

,′ 脇 ,力 ′ θο′Oθ ,チ て,′ rO αヮ s9gttθ ′∫ηOr α′θO脇 ″,0″ αSS♂チノ

ね r̀テ ′ ヴrcとゴ″T"デ οη (USS2α 9θ 9 r力 οクM″ と)」 駒θ

,ガ 開 ♂ ′￠F'ο ∫デrs,η ′ ヵ ッθd′ θ″ ∫?θ ク′肪 θS.

J∫ 力

'1∫

″セ′ gα 閉,ど,′ θ
αガοヵ 力 И 寛″ ∫滅 θηtt θO′ ′?∫POη ′S rOク ″躍 α′θゴr9,つ てrィ)r,,θ ttα

Wブ ゆ

″
'S∫

9鶯 ブ
η Иウ

g,滋

,α ′
ο クη′て∫脇 ?η tt θO″ θψ O刀 ゐ ′rj)segttθ ηr力 じο″,ι ο′′οsd θο′′￠SPο ηぬてサο θοη∫ο脱 力 ど'′'Zて 'ガοPダ α肪 昭 力 θο脇 ?

GeographicaI Segments
Geo8Taphical segmcnt sales for the years ended March 3 1,2013 and 2014 arc sunll■
Ycar cnded March 31,2013

Asia

Japan

Othcr

arized as foⅢ ows

TottalИ♂げ/ワrA〃 ″ οr′

Sales

Ycar ended March 31,2014¥149,114¥20,401¥283¥169,798

Japan

Asia

Othcr

Total

ο
′
,s ο
′
ノ? )
rν ″
lど

¥159,051

Sales

Year ended March 31,2014¥23,877

¥361

Asia

Othcr

Japan

″
rT力 ο

sと :,,とSl,545β 8S

Sales

Total

r筋 ″
も
イ
dげ 〔
ア&′ ο
ノ

S231,996てο″′?′∫'=密 οgrD′ 力′rsθ ど οИ ′力?￠ 郎 ′
9′ うと′vοr(,I cο ″″r′ ,9s,,,′ α/̀,α αtt S?g"?力 ど¥183,89

S3,507

Sl,780,888rο じ,rroヵ s''どMaiOr CustOmer lnformation
2013
Mjor customer

Segmentsd ο
刀Salesaれ 〃 И
/ノθ
)
lο

¥21,940SENSHU ELECTRIC CO,ETD

Elcctric Wtre and Communication Systtm

2014
MttOr CustOmer

Settments∫げ/″)Salcsrν lJr,ο ″¥23,812SENSHU ELECTRIC CO,LTD

Elcctric Wlre and Commudcttion Systcm

2014
MaiOr CustOmer
SENSHU ELECTRIC CO,ETD

どb)
ど″dと ,ね げ[ア d′ οSalesrT力 ο:′

Settments'′$231,364

Elcctric Wirc and Communication Systtm

Se8ment infollllation on impain■ ent losses on flxed assets for the years ended March 31,2013 and 2014 aresummarized as follows:
Rcportable Business ScBmcnts

Ycar endcd March

Elccttic

Powcr

MagnctCommunication

31,2013

Wirc

SystcmWire

Systcm3,342

561

Eliminations

Dcv:ccOthers63

21

DcviccOthcrsTotal￠
砂rνI〃 ,ο ,,sοデノ
ImpatHnent iosses of

361

4,348

flxcd assets

RepoHablc Business Scgments

Ycar endcd March

Elccttic

Powcr

Magnct31,2014

Wirc

SysttmWire

Communication

Eliminations

Total

Systcmrν :〃 ,ο

刀
∫ο
砂
/ノ θ
8

8

Impaiπ ncnt losscs of
Sxcd assets

Reporttablc Busincss Segmcnts

Year cndcd March
3

2014

Electric

Power

MagnetCommunication

Wirc

SystcmWirc

SystcmrT力οOthcrsDeviceEliminttions

Total

y6。

"s,,と

/[/Sと rorl,″ dノ

78IInpainncnt iosscs ofixcd asscts
Ⅳ οr?f/"7̀了 ″胸 9″ r。 郎 ?s、洋

?ど と,SS?IS'″う″s′ ′,9ss

0′ 力?′

s?="9″ ′'s/θ

￠′ 郎
r力 ?′ ′′′
̀】s?体 ッカた 力 ,躍 οッ,l?′ bノ 肋 ￠ Cο pr,と

,′ ,ノ

テ
レ9"0′ ,,=9″ lθ I'どθηgq『 ′ l,,α セ
ユ ″,sr翅 ど"′̀?ど ̀ο

The Company addhionally acquired shares of consolidatcd subsidiary of Showa Science Co.,Ltd.which is
undcr the segment ofDcvice Operations forthc year ended Mtrch 31,2014.As a result ofthis acquisition,gainon negat市 e800dWill of¥18 million(USS175 thousand)waS rccognized.

24.A parent company or important afrlliates
A summary ofthe financial info111lation ofimportant afflliated company

TBEA(Shan Dong)ln consolidated account ycar,impoiant amhates are Hua Ho Enghcering Co.,Ltd.,Showa―
Cable Accesso五 es Co.,Ltd and FuTong‐ Showa Electtic Wre&cable(HangZhOu)Co.,Ltd and The adding up
absttact financial affairs infonnation is as fbllows.

I
2014

2013
P′

rr,。

2014
sο/
″′
rT力 ο
"d̀ェ
′
′
と
,/s)
ひS′ο

И
sげ χ力
)

Total current asscts¥6,144

Total flxed asscts

2,932

28,487

Total cuttent habilities

3,270

31,772

S59,6973

29

Totai net asscts

5,803

56,383

Nct sales

15,170147β 96

Loss beforc income taxcs and minority intcrcsts(457)(4,440)

Nct ioss(473)(4,596)TotЛ long‐ 俺Hn ttabilities

Because importance added,Hua Ho Engheering Co.,Ltd.,Showa― TBEA(Shan Dong)Cable Accesso五 es Co,,Ltd and FuTong― Showa Electtic Wire&Cable(HangZhou)Co.ク Ltd are assumed important amliates IIom ourconsolidated account ycar.