Consolidated Financial Statements
for the year ended March 31, 2013
SWCC Showa Holdings Co., Ltd.
and Consolidated Subsidiaries

CONSOLIDATED BALANCE SHEETSWCC SHOWA HOLDINGS CO., LTD. and Consolidated Subsidiaries
At March 31, 2011 and 2012
2012

2013

2013
(Thousands of(Millions of yen)

U.S. dollars)(Note 3)ASSETS
Current assets:
Cash and time deposits (Notes 4 and 18)¥7,447¥8,683$92,323

Trade notes and accounts receivable (Notes 11 and 18)

50,72447,054500,308

Inventories (Note 5)

18,984

19,248204,657

929

982

10,441

Other

3,333

3,343

35,545

Allowance for doubtful accounts

(242)

(243)

(2,583)

81,17579,067

840,691

Deferred tax assets (Note 17)

Total current assets
Property, plant and equipment:
Buildings and structures (Notes 7 and 15)

41,73638,327

407,517

Machinery, equipment and tools (Notes 7 and 15)

71,182

69,603740,064

Land (Notes 7, 12 and 15)

24,48224,010255,290

624

809

8,602

(91,700)(90,972)(967,273)

46,324

41,777444,200

Other
Accumulated depreciation
Total property, plant and equipment
Intangible assets
Goodwill

163

0

0

Other (Note 15)

2,266

2,102

22,350

2,429

2,102

22,350

6,440

7,629

81,116

11

10

106

7,623

6,696

71,197

Total intangible assets
Investments and other assets:
Investment securities (Notes 6, 7 and 18)
Deferred tax assets (Note 17)
Other (Note 7)
Allowance for doubtful accounts
Total investments and other assets
Total assets
See Accompanying Notes to Consolidated Financial Statements.

(503)

(390)

(4,147)

13,571

13,945148,272¥143,499¥136,891$1,455,513

2012

2013

2013
(Thousands of(Millions of yen)

U.S. dollars)(Note 3)
LIABILITIES AND NET ASSETS
Current liabilities:
Short-term debt (Notes 7 and 18)
Trade notes and accounts payable (Notes 11 and 18)
Accrued income taxes
Reserve for construction loss

¥43,862¥43,076$458,012

24,352

23,631

251,260

409

330

3,509

3

31

330

1,188

12,632

Reserve for business structure improvement expenses (Note 16)-

Reserve for disaster loss

2

Other accounts payable

5,335

Other

7,262

77,214

5,247

3,528

37,511

Total current liabilities

79,21079,046

840,468

Long-term liabilities:
Long-term debt (Notes 7 and 18)

14,592

14,101

149,931

Accrued retirement benefits for employees (Note 9)

686

649

6,901

Accrued retirement benefits for directors and statutory auditors

96

113

1,201

1,596

1,485

15,789

4,739

4,739

50,388801

1,408

14,971

Total long-term liabilities

22,51022,495239,181

Total liabilities

101,720

101,541

1,079,649

Deferred tax liabilities (Note 17)
Deferred tax liabilities related
to land revaluation (Notes 12 and 17)
Other

Contingent liabilities (Note 10)
Net assets:
Shareholders’ equity:
Common stock:
Authorized - 700,000,000 shares
24,222

24,222257,544

Capital surplus (Note 13)

Issued- 308,268,611 shares (Note 13)

11,035

11,035

117,331

Retained earnings (Note 13)604(6,077)(64,615)

Treasury stock (Note 13)

(13)

(13)

(138)

35,84829,167

310,122

780

8,293

Total shareholders’ equity
Accumulated other comprehensive income:Unrealized holding gains on other securities

557

Deferred gains on hedges
Variance of land revaluation (Note 12)
Foreign currency translation adjustments
Total accumulated other comprehensive income

5,023

24

256

5,031

53,493

(735)

55

585

4,845

5,890

62,627

1,086

293

Total net assets

41,77935,3503,115
375,864

Total liabilities and net assets¥143,499¥136,891$1,455,513

Minority interests

See Accompanying Notes to Consolidated Financial Statements.

CONSOLIDATED STATEMENT OF OPERATIONSSWCC SHOWA HOLDINGS CO., LTD. and Consolidated Subsidiaries
For the years ended March 31, 2011 and 2012
2012

2013

2013
(Thousands of(Millions of yen)

U.S. dollars)(Note 3)
Net sales¥171,781¥169,798$1,805,401

Cost of sales (Notes 5 and 14)
Gross profit

152,519

151,295

1,608,666

19,262

18,503

196,735

Selling, general and administrative expenses (Note 14)
Operating income

17,316

17,376

184,752

1,946

1,127

11,983

Other income (expenses):
Interest income

20

18

191

Dividend income

415

137

1,457

Foreign currency exchange income
Interest expense

-

44

468

(1,103)(1,042)(11,079)

Repair work expense

-

(689)

(7,326)Equity in losses of affiliates

(63)

(184)

(1,956)

Foreign currency exchange loss

(220)

-

Gain on compensation for moving
Gain on contribution of securities to retirement benefit trust

-

100

1,063

1,557

-

Gain on negative goodwill

128-

Gain on sales of fixed assets

61

33

Gain on sales of investment securities

192

Compensation expenses for products(1,099)-Settlement

(510)

-

-

Loss on impairment of fixed assets (Note 15)(89)(4,348)(46,231)(16,778)

Business structure improvement expenses (Note 16)

351
21
-

-

(1,578)

(390)

(443)

(4,711)(1,274)(7,950)(84,530)

Income (loss) before income taxes and minority interests

672(6,823)(72,547)

Income taxes (Note 17)
Current

436

413

4,391

376

(278)

(2,956)

Other, net

Deferred
Loss before minority interests

812

135

1,435

(140)

(6,958)(73,982)

Minority interests

302

593

6,305

Net income （loss）¥162¥(6,365)$(67,677)

See Accompanying Notes to Consolidated Financial Statements.

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
SWCC SHOWA HOLDINGS CO., LTD. and Consolidated Subsidiaries
For the years ended March 31, 2011 and 2012
2012

2013

2013
(Thousands of(Millions of yen)

U.S. dollars)(Note 3)
Loss before minority interests(140)(6,958)(73,982)

Other comprehensive income (Note 21)
Unrealized holding gains (losses) on other securities

2,371

(686)

223

Deferred gains on hedges

024

Variance of land revaluation

671

Foreign currency translation adjustments(55)

Share of other comprehensive income of affiliates in equity method

255
-

536

5,699

8

308

3,275

(62)

1,091

11,600(202)(5,867)(62,382)

Owners of the Company

105(5,327)(56,640)

Minority interests

(307)

(540)

(5,742)

Total other comprehensive income
Comprehensive income
Comprehensive income attributable to

See Accompanying Notes to Consolidated Financial Statements.

CONSOLIDATED STATEMENT OF CHANGES IN NET ASSETSSWCC SHOWA HOLDINGS CO., LTD. and Consolidated Subsidiaries
For the years ended March 31, 2011 and 2012

(Millions of yen)

Shareholders’ equity
Commonstock

Capitalsurplus

Balance at April 1, 2011¥21,222¥8,035

Issue of new shares

3,000

3,000

Net income for the year

Accumulated other comprehensive income

Retainedearnings

Treasury
Total
stock
shareholder’sequity¥442¥(13)¥29,686

Balance at March 31, 2012¥24,222¥11,035¥604

Total accumulated
other
Minority
Total
comprehensive
interests net assets
income¥4,902¥930¥35,518

6,000

6,000

162

162

(0)

(0)

(0)

¥(13)

¥35,848

162

Purchase of treasury stock
Changes other thanshareholder’s equity

Unrealized
Deferred
Variance Foreign currencyof landtranslation
holding gains gains (losses)
evaluation
adjustmentson securities
on hedges¥1,243¥(0)¥4,352¥(693)

(686)

0

671

(42)

(57)

156

99

¥557

¥-

¥5,023¥(735)¥4,845¥1,086¥41,779(Millions of yen)

Shareholders’ equity
Commonstock
Balance at April 1, 2012
Cash dividends paid

¥24,222

CapitalsurplusRetained Treasury
Total
stock
shareholder’searnings(losses)
equity¥11,035¥604¥(13)¥35,848(308)(6,365)Net loss for the year
Reversal of revaluation reserve for land

¥24,222¥11,035¥(6,077)

Unrealized
Deferred
Variance Foreign currencyof landtranslation
holding gains gains (losses)
evaluation
adjustmentson securities
on hedges¥557¥¥5,023¥(735)

Total accumulated
other
Minority
Total
comprehensive
interests net assets
income¥4,845¥1,086¥41,779(308)(6,365)(308)(6,365)

(0)

(8)
(0)

(8)
(0)

¥(13)

¥29,167(8)

Purchase of treasury stock
Changes other thanshareholder’s equity
Balance at March 31, 2013

Accumulated other comprehensive income

223

24

8

790

1,045

(793)

252

¥780

¥24

¥5,031¥55¥5,890¥293¥35,350(Thousands of U.S. dollars) (Note 3)
Shareholders’ equity
Commonstock
Balance at April 1, 2012

$257,544

Accumulated other comprehensive income

CapitalsurplusRetained Treasury
Total
stock
shareholder’searnings(losses)
equity$117,331$6,422$(138)$381,159

Unrealized
Deferred
Variance Foreign currencyof landtranslation
holding gains gains (losses)
evaluation
adjustmentson securities
on hedges$5,922$$53,408$(7,815)

Total accumulated
other
Minority
Total
comprehensive
interests net assets
income$51,515 $11,547 $444,221

Cash dividends paid

(3,275)(3,275)(3,275)Net loss for the year
Reversal of revaluation reserve for land

(67,677)(67,677)(67,677)

(0)

(85)
(0)

(85)
(0)

$(138)$310,122(85)

Purchase of treasury stock
Changes other thanshareholder’s equity
Balance at March 31, 2013

$257,544$117,331

See Accompanying Notes to Consolidated Financial Statements.

$(64,615)

2,371

256

85

8,400

11,112(8,432)

2,680$8,293$256$53,493$585$62,627$3,115$375,864

CONSOLIDATED STATEMENT OF CASH FLOWSSWCC SHOWA HOLDINGS CO., LTD. and Consolidated Subsidiaries
For the years ended March 31, 2011 and 2012z
2012

2013

2013

(Millions of yen)(Thousands of
U.S. dollars)(Note 3)

Cash flows from operating activities:
Income (loss) before income taxes and minority interests¥672¥(6,823)$(72,547)

Depreciation and amortization

3,279

3,170

33,705

Loss on impairment of fixed assets

89

4,348

46,231Gain on sales of investment securities

(19)

(2)

(21)

Gain on sales of property, plant and equipment

(74)

(33)

(351)

Loss on disposal of property, plant and equipment

49

49

521

Loss on devaluation in investment securities

4

40

426

Increase (decrease) in allowance for doubtful accounts

(19)

(113)

(1,201)

Increase (decrease) in reserve for construction loss

(16)

28

298

Increase (decrease) in accrued retirement benefits for employees

(23)

(37)

(393)

Interest and dividend income

(435)

(155)

(1,648)Interest expenses

1,103

1,042

11,079Gain on contribution of securities to retirement benefit trust(1,557)--Compensation expenses for products

1,099

-

-

Settlement

510

-

-

Increase (decrease) in reserve for disaster loss

(95)

(2)

(21)

(Increase) decrease in trade notes and accounts receivable(3,875)

3,581

38,075(95)(1,139)(12,111)

Increase (decrease) in trade notes and accounts payable

498

(540)

(5,742)(Increase) decrease in other current assets

(372)

(115)

(1,223)

Increase (decrease) in other current liabilities

1,045

37

393

Repair work expense

-

689

7,326

Loss on sales of investments in subsidiaries and affiliates

-

33

351

Business structure improvement expenses

-

1,578

16,778(Increase) decrease in inventories

Other
Sub-totalInterest and dividends received

(53)

899

9,559

1,715

6,535

69,484

176

157

1,669

Interest paid

(1,151)(1,044)(11,100)

Settlement paid

(271)

(217)

(2,307)

Income taxes paid

(357)

(46)

(489)

112

5,385

57,257

Cash flows from investing activities:
Purchases of investment securities

(8)

(8)

(85)

Proceeds from sales of investment securities

30

4

43

Purchases of property, plant and equipment(2,284)(3,254)(34,599)

Net cash provided by operating activities

Proceeds from sales of property, plant and equipment

177

448

4,763

(1,411)(308)(3,275)

Proceeds from sales of investments in subsidiaries capital in change in scope of consolidation

-

35

372

Proceeds for acquisition of shares of new consolidated subsidiaries

-

7

75

Expenditures for acquisition of investments in an affiliate

Proceeds from sales of investments(Increase) decrease in short-term loans receivable
Other
Net cash used in investing activities

0

0

0

(85)

(294)

(3,126)

(719)

(544)

(5,784)(4,300)(3,914)(41,616)

2012

2013

2013
(Thousands of(Millions of yen)

U.S. dollars)(Note 3)
Cash flows from financing activities:
Increase (decrease) in short-term bank borrowings(5,762)(1,401)

Proceeds from long-term debt

8,600

7,610

80,914

Repayment of long-term debt

(8,733)(7,239)(76,970)(744)

Repayment of corporate bonds(14,896)

(20)

(70)

Proceeds from new shares issued to a third party

6,000

-

Proceeds from payment by minority shareholders

596

7

74

Cash dividends paid

-

(308)

(3,275)

Dividends payment

(5)

(6)

(64)

(119)

688

7,316

Net cash provided by (used in) financing activities

557

(719)

(7,645)

Effect of exchange rate changes on cash and cash equivalents

(37)

266

2,828

Net increase (decrease) in cash and cash equivalents(3,668)

1,018

10,824

Cash and cash equivalents at beginning of year

10,874

7,206

76,619Cash and cash equivalents at end of year (Note 4)¥7,206¥8,224$87,443

Other

See Accompanying Notes to Consolidated Financial Statements.

-

NOTES TO CONSOLIDATED FINANCIALSTATEMENTS
SWCC SHOWA HOLDINGS CO., LTD. and Consolidated Subsidiaries

1. Basis of Presentation
The accompanying consolidated financial statements of SWCC SHOWA HOLDINGS CO., LTD. (the“Company”) and its consolidated subsidiaries (collectively the “Companies”) have been prepared on the basisof accounting principles generally accepted in Japan, which are different in certain respects as to the applicationand disclosure requirements of International Financial Reporting Standards, and have been compiled from theconsolidated financial statements prepared by the Company as required by the Financial Instruments andExchange Law of Japan.
In addition, the notes to the consolidated financial statements include information which is not required underaccounting principles generally accepted in Japan. Certain reclassifications have been made to present theaccompanying consolidated financial statements in a format which is familiar to readers outside Japan.

2. Summary of Significant Accounting Policies(a) Principles of Consolidation
The consolidated financial statements include the accounts of the Company and its consolidated subsidiaries. In
preparing the consolidated financial statements, all significant intercompany transactions, account balances andunrealized profits or losses among the Companies have been eliminated. In the elimination of investments inconsolidated subsidiaries, the assets and liabilities of the consolidated subsidiaries, including the portion
attributable to minority shareholders, are recorded based on the fair value at the time the Company acquired
control of the respective subsidiaries.
Differences between the cost of the investments in consolidated subsidiaries and the underlying equity at fairvalue of dates of acquisition have been amortized by the straight-line method over a period of five years.
The equity method of accounting has been adopted for investments in the major affiliated companies overwhich the Company exercises significant influence in terms of their operating and financial policies.
The total assets, retained earnings, net sales and net income (loss) of the unconsolidated subsidiaries andaffiliated companies which are not accounted for by the equity method in the aggregate were not significant inrelation to the corresponding consolidated balances of the Companies.
The number of the consolidated subsidiaries at March 31, 2013 is 24 listed as follows:
Name

Percentage ofPaid-inequity ownership

capital(Millions)

SWCC Showa Cable Systems Co., Ltd.

100.0 %

¥10,000

SWCC Showa Device Technology Co., Ltd.

100.0

3,500

EXSYM Corporation

85.1

500

Unimac Ltd.

55.0

480

Fuji Electric Cable Co., Ltd.

100.0

318

Daiji Co., Ltd.

100.0

480

AXIO Corporation

100.0

310

Miyazaki Electric Wire & Cable Co., Ltd.

100.0

100

SWCC Showa Business Solutions Co., Ltd.

100.0

100

SDS Corporation

100.0

100

Logis-Works Co., Ltd.

100.0

95

Aomori Showa Electric Cable Co., Ltd.

100.0

80

Tamagawa Magnet Wire Co., Ltd.

100.0

46

Showa Recycle Co., Ltd.

100.0

20

STEC (Showa Technical Corporation)

100.0

20

Shoukou Equipment Industry Co., Ltd.

100.0

80

Tianjin Showa Enamelled Wire Co., Ltd.

54.8

US$17.0

Fuqing Showa Seiko Electric Co., Ltd.

100.0

US$3.4SWCC Showa (VIETNAM) Co., Ltd.

100.0

US$7.0

SWCC Showa (ShangHai) Co., Ltd.

100.0

US$5.2

Jiaxing Showa Interconnect Products Co., Ltd.

95.2

US$3.2SWCC Showa (H.K.) Co., Ltd.

100.0

HK$84.3

Dongguan Showa Interconnect Products Co., Ltd.

100.0

US$1.91

HangZhou FuTong Showa Interconnect Products Co., Ltd.

90.0

CNY $12The number of affiliates, in which investments are accounted for by the equity method, is 8 listed as follows:
Percentage ofPaid-inequity ownership

capital(Millions)Showa Science Co., Ltd.

50.0 %¥40

Hua Ho Engineering Co., Ltd.

50.0

NT$35

Showa-TBEA (Shan Dong) Cable Accessories Co., Ltd

49.0

US$14

HangZhou FuTong Showa Copper Co., Ltd

50.0

CNY¥100

HangZhou FuTong-Showa Electric Wire Cable Material R&D Co., Ltd

50.0

CNY¥10

FuTong-Showa Electric Wire & Cable (HangZhou) Co., Ltd

50.0

CNY¥100

FuTong-Showa Electric Wire & Cable (TianJin) Co., Ltd

50.0

CNY¥100

HangZhou FuTong Showa Wire & Devices Co., Ltd.

50.0

US$12.2

In the year March 31, 2013, HangZhou FuTong Showa Interconnect Products Co., Ltd., controlled indirectlyby the company, included in the consolidated subsidiaries.
Effective the year ended March 31, 2013, HangZhou FuTong Showa Wire & Devices Co., Ltd. has been
excluded it from scope of consolidation and changed in the equity method affiliated companies due toownership ratio decreased by transfer of part of the members share.
(b) Foreign Currency Translation
Assets and liabilities denominated in foreign currencies are translated into Japanese yen at applicable exchange
rates at the balance sheet date, and differences resulting from the translation are included in other income orother expenses in the consolidated statements of income.
The assets and liabilities of foreign consolidated subsidiaries and affiliates that operate in local currency aretranslated into Japanese yen at the applicable exchange rates at the balance sheet date, except for thecomponents of net assets excluding minority interests which are translated at their historical exchange rates.
Income and expense accounts are also translated at the applicable exchange rates at the balance sheet date.
Differences arising from the translation are presented as translation adjustments and minority interests inaccumulated other comprehensive income of its consolidated financial statements.
(c) Cash and Cash Equivalents
Cash and cash equivalents consist of cash on hand, cash in banks which is readily available and short-term
investments with maturities of three months or less when purchased which can easily be converted to cash andare subject to little risk of change in value.
(d) Inventories
Inventories are primarily stated at the lower of cost determined by the average method or net realizable value.
Inventories of certain consolidated subsidiaries are stated at the lower of cost determined by the moving averagemethod or by the specific identification method or net realizable value. When the costs exceed the net realizablevalues, inventories are written down to the net realizable value.
(e) Investment Securities
Marketable securities classified as “other securities” are carried at fair value with changes in unrealized holding
gains or losses, net of the applicable income taxes, included directly in net assets. Non-marketable securities
classified as “other securities,” which have no fair values, are carried at cost determined by the moving averagemethod. Cost of securities sold is determined by the moving average method.
(f) Property, Plant and Equipment
Property, plant and equipment are stated at cost. Depreciation is calculated by the straight-line method over theestimated useful lives. The main estimated useful lives of property, plant and equipment are as follows:
Buildings and structures
Machinery and vehicles
Equipment and tools

31 years (3 - 50 years)
10 years (2 - 14 years)
5 years (2 - 15 years)(g) Intangible Assets
Intangible assets are amortized by the straight-line method over each of their estimated useful lives. Especially,
computer software for internal use is amortized by the straight-line method over its estimated useful lives of 52

years.
(h) Leases
Finance leases, the agreements of which do not include the transfer of ownership, are accounted for in the samemanner as ordinary purchase transactions of fixed assets and are depreciated by straight-line method over therespective lease terms with a zero residential value. While, finance leases, the agreements of which do notinclude the transfer of ownership and started on or before March 31, 2008, are accounted for as operatingleases.
(i) Allowance for Doubtful Accounts Receivable
The allowance for doubtful accounts receivable is provided based on historical default rates and additional
estimated uncollectible amounts to cover specific doubtful accounts receivable.
(j) Provision for Retirement Benefits for Employees
Accrued retirement benefits for employees have been provided based on the projected benefit obligation, thefair value of securities to retirement benefit trust and plan assets. Prior service costs are amortized as incurredby the straight-line method over a period that is within the average remaining service period of employees.
Unrecognized actuarial gains and losses are amortized in the year following the year in which the gains orlosses are recognized by the straight-line method over a period that is within the average remaining service
period of employees.
(k) Provision for Retirement Benefits for Directors and Statutory Auditors
To provide for the future benefit payment for directors and statutory auditors, the Companies have provided
accrued retirement benefits based on their internal regulations.
(l) Reserve for Construction Loss
Reserve for construction loss is provided at the estimated amount for anticipated losses on the construction
contracts in progress.
(m) Reserve for business structure improvement loss
Reserve for business structure improvement loss is proved based on an estimate of business structure
improvement expenses.
(n)Revenue and Cost of Construction Contracts
The Company recognized revenue and cost of construction contracts under the percentage-of-completion
method if the outcome of the construction activity is deemed certain during the course of the activity. Otherwise,
the Company recognized revenue and cost upon completed-contract method. The percentage of completion is
calculated at the cost incurred as a percentage of the estimated total cost.
(o) Derivative
The Companies use foreign currency forward exchange contracts and interest rate swap agreements to hedge therisk of fluctuations in foreign currency exchange rates and interest rates, respectively. Gain or loss on changes
in the fair market values of the derivative financial instruments which meet certain criteria as hedges is deferredon the balance sheet until gain or loss on the hedged items are recognized.
However, foreign currency forward exchange contracts, which meet certain conditions, are accounted for as apart of translating foreign currency monetary assets and liabilities in the consolidated balance sheets.
In case where interest rate swap agreements are used as hedges and meet certain hedging criteria, the net
amount to be paid or received under the contract is added to or deduced from the interest on the assets or
liabilities for which the swap contract is executed.
Since commencement of hedge contracts, the Companies have assessed the effectiveness of each hedge
contract by comparing the total cash flow fluctuation or market fluctuation of hedging instruments and hedged
items.
(p) Consumption Taxes
Transactions subject to consumption taxes are recorded at amounts exclusive of consumption taxes.
(q) Income Taxes
Deferred tax assets and liabilities are determined based on the differences between financial reporting and thetax bases of the assets and liabilities and are measured using the enacted tax rates and laws which will be ineffect when the differences are expected to reverse. The companies in Japan file the consolidated tax return.
Overseas consolidated subsidiaries are subject to income taxes in the countries in which they operate.
33. U.S. Dollar Amounts
For the convenience of the readers outside Japan, the accompanying consolidated financial statements arepresented in U.S. dollars by translating all Japanese yen amounts at the exchange rate of ¥94.05 = US$1.00
prevailing on March 31, 2013. This translation should not be construed as a representation that the Japanese yenamounts actually represent, or have been or could be converted into U.S. dollar amounts at the above or any
other rate.
4. Cash and Time Deposits
Information regarding cash and time deposits at March 31, 2012 and 2013 was as follows:
2012

2013

2013

(Millions of yen)

Cash and time deposits due within 3 months¥7,206¥8,224

241

459

4,880

¥7,447¥8,683$92,323

Time deposits due over 3 months
Total(Thousands of U.S. dollars)$87,443

5. Inventories
The breakdown of Inventories at March 31, 2012 and 2013 was as follows:
2012

2013

2013

(Millions of yen)(Thousands of
U.S. dollars)

Merchandise and finished goods¥7,540¥8,271$87,943

Work in process

6,670

6,486

68,963

Raw materials and supplies

4,774

4,491

47,751¥18,984¥19,248$204,657

Inventories were revalued at the lower of cost or net realizable value with devaluation losses, which were
included in Cost of Sales, for the years ended March 31, 2012 and 2013 in the amounts of ¥76 million and ¥86
million (US$914 thousand), respectively.

6. Investment Securities(a) Information regarding marketable other securities at March 31, 2012 and 2013 was as follows:
Acquisition
cost

2012
Carrying Unrealized
value gain (loss)

2013
2013
Acquisition Carrying Unrealized Acquisition Carrying Unrealized
cost
value gain (loss)
cost
value
gain (loss)(Millions of yen)(Thousands of U.S. dollars)

Securities whose carrying value exceeds
their acquisition cost:
Stocks¥1,133¥2,294¥1,161¥1,678¥3,132¥1,454$17,842$33,302$15,460

Securities whose acquisition cost exceeds
their carrying value:
Stocks

1,592

1,278

(314)

1,020

737

(283)

10,845

7,836(3,009)Total¥2,725¥3,572¥847¥2,698¥3,869¥1,171$28,687$41,138$12,451(b)There were no sales of other securities for the year ended March 31, 2012. For the year ended March 31, 2013,

since sales of securities classified as other securities were not important, the information was omitted.

47. Short-term and Long-term Debts
Short-term debt composes short-term borrowings and current portion of long-term borrowings, corporate bonds
and finance lease obligations. The weighted average interest rates for short-term borrowings and current portionof long-term borrowings at March 31, 2013 were 1.53% and 2.15%, respectively.
Short-term borrowings and long-term borrowings at March 31, 2012 and 2013 consisted of the following:
2012

2013

(Millions of yen)

2013
(Thousands of
U.S. dollars)

Short-term borrowings
Unsecured

17,422

15,828

Secured19,63819,570208,081¥37,060¥35,398$376,374

168,293Long-term borrowings
Unsecured

9,040

8,788

93,440

Secured11,88812,510133,014¥20,928¥21,298$226,454

Long-term debt at March 31, 2012 and 2013 consisted of the following:
2012

2013

(Millions of yen)

2013
(Thousands of
U.S. dollars)

0.54% yen unsecured straight bonds due 2012

70

-

-

20,928396

21,298481

226,454
5,115

Loans principally from banks and insurance companies due
serially to 2018 and predominantly collateralized,with a weighted average interest of 2.1%
Finance lease obligations due 2022
Less: portion due within one year

(6,802)(7,678)(81,638)¥14,592¥14,101$149,931

The aggregate annual maturities of long-term debt subsequent to March 31, 2013 were as follows:Year ending March 31,(Millions of yen)(Thousands of
U.S. dollars)

2015¥5,924$62,988

2016

4,546

48,336

2017

2,780

29,559851

9,048¥14,101$149,931

2018 and thereafter

At March 31, 2012 and 2013, the following assets were pledged as collateral for certain of the above debts:
2012

2013

(Millions of yen)

2013
(Thousands of
U.S. dollars)

Investment securities¥1,791¥2,015$21,425

8,492

5,273

56,066

Property, plant and equipment, at net book value:
Buildings and structures
Machinery, equipment and tools
Land
Other

5

546

273

2,903

17,883

17,883

190,14411

9

95¥28,723¥25,453$270,633

8. Leases
As lessee
The following pro forma amounts represent the acquisition costs, accumulated depreciation and net book valueof finance leases, the agreements of which do not include the transfer of ownership and started on or before
March 31, 2008, as of March 31, 2012 and 2013, which would have been reflected in the consolidated balance
sheets if the leases had been accounted for in the same manner as ordinary purchase transactions of fixed assets:
2012

2013

(Millions of yen)

Acquisition costs
Accumulated depreciation
Net book value

2013(Thousands of
U.S. dollars)¥2,095
1,642

¥831
643

$8,836
6,837

¥453

¥188

$1,999Note: Assumed acquisition costs include the capitalized interest thereon, as the proportion of future minimum lease payments to total
property, plant and equipment at fiscal year-end is immaterial.

Future minimum lease payments subsequent to March 31, 2012 and 2013, for finance leases, the agreementsof which do not include the transfer of ownership and started on or before March 31, 2008, are summarized asfollows:
2012

2013

(Millions of yen)

Within one year
Over one year
Total

2013
(Thousands of
U.S. dollars)

¥265
188

¥75
113

$797
1,202

¥453

¥188

$1,999Note: Assumed future minimum lease payments for finance leases include the capitalized interest thereon, as the proportion of future minimum lease payments
to total property, plant and equipment at fiscal year-end is immaterial.

Lease payments under such leases for the years ended March 31, 2012 and 2013, were ¥425 million and ¥265
million (US$2,818thousand), respectively. These lease payments were equal to the depreciation of leased assets
computed by the straight-line method over the respective lease terms with a zero residential value.
In addition, the future minimum payment for operating leases subsequent to March 31, 2012 and 2013 aresummarized as follows:
2012

2013

(Millions of yen)

Within one year
Over one year
Total

2013
(Thousands of
U.S. dollars)

¥154
266

¥106
160

$1,127
1,701

¥420

¥266

$2,828

9. Retirement Benefits for Employees
The Companies have principally defined benefit plans such as employee’s pension fund and defined benefit
corporate pension plans, lump-sum retirement benefit plans and defined contribution pension plans. The
company and certain consolidated subsidiaries also have securities contributed to retirement benefit trust.
Certain consolidated overseas subsidiaries have defined benefit plans.
(a) Retirement benefit obligation:
2012

2013

(Millions of yen)

2013
(Thousands of
U.S. dollars)

Retirement benefits obligation¥ (12,541)¥ (12,953)$ (137,725)

Plan assets at fair value

11,85312,800136,098

(688)

(153)

(1,627)(5,328)(5,075)(53,961)

Unfunded retirement benefit obligation
Prepaid pension cost
Unrecognized prior service cost
Unrecognized actuarial loss
Retirement benefit obligation for employees

4

2

21

5,326

4,577

48,666¥ (686)¥ (649)$ (6,901)

Note: Securities contributed to retirement benefit trust are included in “Plan assets at fair value.”6

(b) The components of retirement benefit expenses:
2012

2013

(Millions of yen)

2013
(Thousands of
U.S. dollars)Service cost

¥778

¥762

Interest cost

210

164

1,744

Expected return on plan assets for the year

(302)

(382)

(4,062)

Amortization of prior service cost
Amortization of actuarial loss

$8,102

2

2

21

653

725

7,709

Total
¥1,341¥1,271$13,514
1. Retirement benefit expenses for consolidated subsidiaries adopting the simplified method are included in “Service cost.”
2. The Companies’ contribution to defined contribution pension plans is included in “Service cost.”(c) The actuarial assumptions used in the above computations for the years ended March 31, 2012:
a. Methods of attributing the projected benefit obligations to periods of service: straight-line basis
b. Discount rate:

1.5%

c. Expected rate of return on plan assets:

3.5%

d. The actuarial gain or loss and prior service cost are amortized by the straight-line method over 13 years, which are within theestimated average remaining years of service of the eligible employees.

The actuarial assumptions used in the above computations for the years ended March 31, 2013:
a. Methods of attributing the projected benefit obligations to periods of service: straight-line basis
b. Discount rate:

1.0%

c. Expected rate of return on plan assets:

3.5%

d. The actuarial gain or loss and prior service cost are amortized by the straight-line method over 13 years, which are within theestimated average remaining years of service of the eligible employees.

10. Contingent Liabilities
At March 31, 2012 and 2013, the Companies were contingently liable for the following items:
2012

2013

(Millions of yen)

2013
(Thousands of
U.S. dollars)Discounted and endorsed trade notes receivable
Guarantees of indebtedness of employees¥1,072¥1,339$14,237

20

11

117

¥1,092¥1,350$14,354

11. Notes Receivable and Payable
Although March 31, 2012 and 2013 was a bank holiday, the Company accounted for the notes whose maturity
date was March 31, 2012 ands 2013 as if they had been collected on the day.
The amounts of these notes receivable and payable are shown as follows:
2012

2013

(Millions of yen)

2013
(Thousands of
U.S. dollars)

Notes receivable¥528

Notes payable¥430$4,572

1,622

2,137

22,722¥2,150¥2,567$27,294

12. Land Revaluation
In accordance with the Law Concerning Revaluation of Land enacted on March 31, 1998 and the Law whichrevises a part of Law Concerning Revaluation of Land enacted on March 31, 2001, land owned by the Company
used for business was revalued, and the unrealized gain on the revaluation of land, net of deferred tax, wasreported as “Variance of land revaluation” within net assets, and the relevant deferred tax was included inliabilities as “Deferred taxes related to land revaluation” at March 31, 2002.
7

The fair value of the land at March 31, 2012 and 2013 was lower than its carrying amount by ¥8,811 millionand ¥8,855 million (US$94,152 thousand), respectively.

13. Net Assets
The Japanese Corporate Law (the “Law”) provides that amounts from capital surplus and retained earnings may
be distributed to the shareholders at any time by resolution of the shareholders or by the Board of Directors if
certain provisions are met subject to the extent of applicable sources of such distributions.
The Law further provides that amounts equal to 10% of such distributions be transferred to the capital reserve
included in capital surplus or the legal reserve included in retained earnings based on the applicable sources ofsuch distributions until the sum of the capital reserve and the legal reserve equals 25% of common stock.
Information regarding changes in net assets for the years ended March 31, 2012 and 2013 were as follows:(a) Shares issued and treasury stock
For the year ended March 31, 2012
Types of shares

Number of shares

Increase

at April 1, 2011

Number of shares

Decrease

at March 31, 2012

Thousands of shares
Share issued:
Common stock

251,127

57,142-308,269

98

4

-

102

Treasury stock:
Common stock

Note: Increase of 57,142 thousand shares is due to issue of new shares attributable to a third-party.
Increase of 4 thousand shares in treasury stock is due to purchases of shares less than standard unit.

For the year ended March 31, 2013
Types of shares

Number of shares

Increase

at April 1, 2012

Number of shares

Decrease

at March 31, 2013

Thousands of shares
Share issued:
Common stock

308,269--

308,269

Common stock
102
5
Note: Increase of 5 thousand shares in treasury stock is due to purchases of shares less than standard unit.

107

Treasury stock:(b) Dividends
There were no dividends paid for the years ended March 31, 2012.
Dividends paid to shareholders for the years ended March 31, 2013.
Total
Resolution

Type of shares

dividends

Origin of(millions ofdividends

Dividends
per share

Cut-off date

(yen)

yen)

Effective
date

Annual general
meeting of theCommonshareholders on

stock

Retained

308

March 31,

1.00

earnings

2012

June 28, 2012

June 27, 2012

14. Selling, General and Administrative Expenses
The breakdown of “Selling, General and Administrative Expenses” for the years ended March 31, 2012 and2013 was as follows:
2012

2013

(Millions of yen)

2013
(Thousands of
U.S. dollars)

Shipping charges¥1,204¥1,361Other selling expenses

1,068

873

9,282

Salaries and other allowances for employees

6,555

6,446

68,538Retirement benefits expenses for employees

830

765

8,134

Retirement benefits expenses for directors and statutory auditors

31

25

266

Allowance for doubtful accounts

132

34

362

683

831

8,836

Depreciation and amortization cost8

$14,471Other

6,813

7,041

74,863¥17,316¥17,376$184,752

Research and development expensed included in “Selling, general and administrative expenses” andmanufacture costs for the year ended March 31, 2012 and 2013 amounted to ¥1,019 million and ¥229 million,¥995 million (US$10,579 thousand) and ¥252 million (US$2,679 thousand), respectively.
15. Impairment of Fixed Assets
For the years ended March 31, 2012 and 2013, the Companies recognized loss on impairment of fixed assets of¥89 million and ¥ 4,348 million (US$46,231 thousand).
For assessment of impairment of fixed assets, the Companies group idle assets and assets for lease based on
an individual asset, and other assets based on the categories used in the company’s managerial accounting,where gain or loss periodically monitored.
For the year ended March 31, 2012, as for idle assets and lease assets located in Miyagi and Oita, their market
value has remarkably fallen against their carrying amount and the book value of the assets was reduced torecoverable amount. The amount written down was ¥35 million and ¥44 million, respectively. As for facilities
related to roller manufacture located in Fukushima, their profitability had remarkably declined due to businessreform and the book value of the assets was reduced to recoverable amount. The amount written down was ¥10
million.
The recoverable amounts are their net selling prices based on estimated selling prices and the published land
price. Roller facilities and leased assets are revalued based on value in use, and the future cash flow is
calculated with the discounted rate of 2.76%.
For the year ended March 31, 2013, as for facilities related to power cable manufacture located in Aichi, theirprofitability had remarkably declined due to sluggish domestic demand and the book value of the assets was
reduced to recoverable amount. The amount written down was ¥3,342 million (US$35,534 thousand). As forfacilities related to magnet wire manufacture located in Tianjin, China, their profitability had remarkably
declined due to the changes in market environment and the book value of the assets was reduced to recoverable
amount. The amount written down was ¥561 million (US$5,965 thousand). As for facilities related tocommunications cable manufacture located in Miyagi, it has been scheduled to dissolve consolidated subsidiaryof Miyazaki Electric Wire & Cable Co., Ltd. and the book value of the assets was reduced to recoverable
amount. The amount written down was ¥361million (US$3,839 thousand). As for facilities related to roller
manufacture and lease assets located in Fukushima and Tokyo, their market value has remarkably fallen against
their carrying amount and the book value of the assets was reduced to recoverable amount. The amount written
down was ¥63 million (US$670 thousand) and ¥21million (US$223 thousand), respectively.
The recoverable amounts are their net selling prices based on estimated selling prices and the published land
price as for Roller facilities and leased assets. Other facilities are revalued based on value in use, and the future
cash flow is calculated with the discounted rate of 2.66%.
The amount written down was recorded as loss on impairment of fixed assets. The breakdown of loss on
impairment of fixed assets was as follows:
2012

2013

(Millions of yen)

Buildings and structures

2013(Thousands of
U.S. dollars)¥20¥3,239$34,439

Machinery, equipment and Vehicles

4

685

7,283

Tools, furniture and fixtures

1

281

2,988

Land

64

66

702

Other

0

77

819

¥89

¥4,348$46,231

16. Business structure improvement expenses
Details of business structure improvement expenses
2012

2013

(Millions of yen)

Severance payments for early retirement

2013(Thousands of
U.S. dollars)

¥-

¥326

$3,466from certain business

-

1,170

12,440

Other
Total

-

82

872

¥-

¥1,578$16,778

Loss on dissolve subsidiary relating to withdrawal

The amount of business structure improvement expenses includes ¥1,188 million (US$12,632thousand)9

transferred to the provision for business structure improvement expenses.

17. Income Taxes
Significant components of deferred taxes at March 31, 2012 and 2013 were as follows:
2012

2013

(Millions of yen)

2013
(Thousands of
U.S. dollars)

Deferred tax assets:
Loss carry-forwards¥6,488¥8,787$93,429

Unrealized gain on real estates

621

624

6,635

Accrued bonuses

587

537

5,710

Other accounts payable

316

387

4,115

-

440

4,678

179
2,004

1,409
1,939

14,981
20,617

Reserve for business structure improvement loss
Depreciation
Other
Subtotal deferred tax assets
Valuation allowance
Total deferred tax assets

10,195

14,123150,165(8,735)(12,536)(133,291)

1,460

1,587

16,874(10,739)

Deferred tax liabilities:
Prepaid pension cost

(1,128)(1,010)

Securities contributed to retirement benefit trust

(403)

(403)

(4,285)

Unrealized holding gains on securities

(290)

(391)

(4,157)

(296)

(276)

(2,935)

Total deferred tax liabilities

Other(2,117)(2,080)(22,116)

Net deferred tax assets (liabilities):¥(657)¥(493)$(5,242)

Deferred tax assets related to land revaluation:

1,361

1,359

14,450

Valuation allowance
Total deferred tax assets related to land revaluation(1,361)-(1,359)-(14,450)-

Deferred tax liabilities related to land revaluation:(4,739)(4,739)(50,388)(4,739)(4,739)(50,388)¥ (4,739)¥(4,739)$(50,388)

Total deferred tax assets (liabilities) related to land revaluation
Net deferred tax liabilities related to land revaluation:

18. Financial Instruments(a) Policy for financial instruments
According to the fund management policy of the Company, temporary surplus funds will be invested into thehighly secured financial assets, and necessary funds for finance investment are primarily borrowed throughbank loans. Derivative transactions are only used for hedging risk of the significant fluctuations in interest rates
and foreign currency exchange rates, not for speculative purpose.
(b) Financial instruments and accompanying risks
Trade notes and accounts receivable are exposed to customer credit risk. Trade receivables in foreign currencies
and foreign-currency loans among the Companies are exposed to exchange rate fluctuation risk, which ishedged through foreign currency forward exchange contracts. Investment securities are composed primarily ofequity securities of customers and exposed to the market value fluctuation risk.
Trade notes and accounts payable normally have payment terms of less than one year. Although part of theabove trade payables and foreign-currency borrowings are exposed to the risk of exchange rate fluctuation, they
are constantly controlled within the amount of foreign-currency trade receivables. Corporate bonds andlong-term debts, which have maturity dates within five years, are primarily utilized to secure financing forequipment. Certain bonds and borrowings which are based on variable interest rates are exposed to interest rate
fluctuation risk. However, they are hedged through derivative transactions, i.e. interest rate swap agreements. It
is possible that long-term debts under syndicated loan contracts which are decided by the financial regulatory
conditions will lose term benefit if any contradictions occurred.
Derivative transactions consist mainly of foreign currency forward exchange contracts which are used forhedging the risk of exchange rate fluctuations in trade receivables and payables denominated in foreign
currency, and interest rate swap contracts which are used for hedging the risk of interest rate fluctuations incorporate bonds and borrowings. As hedging policy, appropriate hedge instruments shall be selected per risk
category. Evaluation of hedge effectiveness is performed through comparing market value of hedge items or theamounts of cash flows with market value of hedge instruments or the amounts of cash flows.
(c) Risks management system associated with financial instruments101) Credit risk management (Risk of default on payment by counterparts, etc.)
The Companies manage payment term and payment balance per trade transaction in order to control andmitigate credit risks due to financial situation difficulties in accordance with the Companies’ credit
management policy.
When dealing with the derivative transactions, the Companies only trade with highly rated financial
institutions to minimize the counterparty’s credit risks.
2) Market risk management (Risk of exchange rate and interest rate fluctuation, etc.)
The Company utilizes foreign currency forward exchange contracts to hedge the risk of exchange rate
fluctuation. Depending on the situation of foreign currency exchange market, the Companies use foreignforward exchange contracts for trade receivables in foreign currency. On the other hand, interest rate
swap agreements are utilized to hedge the interest rate fluctuation risk associated with corporate bonds
and borrowings.
The Company periodically reviews the fair values of financial instruments, such as marketable securities
and investment securities, and the financial position of the issuers. Based on this information andrelationship with the issuers, the Company evaluates whether the securities should be maintained or not.
Derivative transactions are performed and managed in accordance with the Companies’ credit
management policy.
3) Liquidity risk management on financing activities (Risk of inability to repay on due date)
The Company, as parent company, manages fund of the group companies. The finance department
prepares and updates financing plans periodically based on the group companies’ necessaries and keeps acertain amount of cash in hand for the purpose of liquidity risk management.
(d) Other supplementary in the fair value of financial instruments
The fair values of financial instruments are based on the markets prices or reasonable estimated fair values
when the fair values are not available. The estimated fair values will fluctuate due to variety of factors andassumptions.
Information regarding non-marketable other securities, for which it is extremely difficult to determine the fairvalue at March 31, 2012 and 2013 is shown as follows:
2012

2013

2013

Carrying amounts(Millions of yen)(Thousands of
U.S. dollars)

Other securities
Stocks and investments in unlisted companies¥2,868¥3,760$39,978¥2,868¥3,760$39,978

The carrying amounts and fair values of the financial instruments on the consolidated balance sheet as of March
31, 2012 and 2013 are summarized as follows:
2012
Carrying
amounts(1) Cash and time deposits

2013

Fair

Differences

Carrying

Values(Millions of yen)amounts

2013

Fair

Differences

Carrying

Values(Millions of yen)

Fair

Differences

amounts
Values(Thousands of U.S.dollars)¥7,447¥ 7,447¥-¥8,683¥8,683¥-$92,323$92,323$-

accounts receivable

50,724--47,054--500,308--

Allowance for doubtful

(196)

-

-

(197)

-

-

(2,094)--50,52850,505(23)

46,857

46,849(8)498,214498,129

(85)

3,572

3,572

-

3,869

3,869

-

41,13841,138(202)(2) Trade notes andaccounts(3) Investment securities
and other securities(4) Trade notes andaccounts payable(24,352)(24,325)(27)(23,631)(23,612)(19)(251,260)(251,058)(5) Short-term borrowings(37,060)(37,060)-(35,398)(35,398)-(376,374)(376,374)

-

(70)

(70)

(0)

-

-

-

-

-

-

(20,928)(21,031)103(21,298)(21,374)76(226,454)(227,262)

808

(251)

(251)

-

(94)

(94)

-

(999)

(999)

-

-

-

-

38

38

-

404

404

-

(6) Corporate bonds(7) Long-term borrowings(8) Derivative transactions(i) Hedge accounting notapplicable(ii) Hedge accounting
applicable
Notes:(1)

Cash and time deposits
11The carrying amount approximates fair value due to the short maturity of these instruments.
(2)

Trade notes and accounts receivable
The fair value of trade notes and accounts receivable is based on the present value using appropriate current discount rate
decided upon the recovery term and the credit risk.

(3)

Investment securities and other securities
The fair value of investment securities is based on quoted market price.

(4)

Trade notes and accounts payable
The fair value of trade notes and accounts payable is estimated based on the present value of future cash flows using appropriate
current discount rate which is decided upon recovery term and credit risk too.

(5)

Short-term borrowings
The carrying amount approximates fair value due to the short maturity of these instruments. Long-term borrowings within one
year are recorded in long-term borrowings.

(6)

Corporate bonds and (7) Long-term borrowings
The fair value of corporate bonds and long-term borrowings are based on the current discounted interest rates which areborrowed with the same conditions. Corporate bonds and long-term borrowings with the maturity term within one year are
involved.

Redemption schedules for cash and trade receivables after March 31, 2012 and 2013 are summarized as follows:
Within 1 year

Over 1 year

Over 5 years

Within 1

Over 1 year

Over 5 years

and within 5

and within

year

and within 5

and within 10years

10 years

years

years

(Millions of yen)(Thousands of U.S.dollars)

2012
Cash and time deposits¥7,447¥-¥-

Trade notes andaccounts receivable

46,2694,455-

Total of the amounts¥53,716¥4,455¥-¥8,683

¥-

¥-

2013
Cash and time deposits$92,323$-$-

Trade notes andaccounts receivable

43,1963,858-

459,288

41,020-Total of the amounts¥51,879¥3,858¥-$551,611$41,020$-

Redemption schedules for trade payables, corporate bonds and long-term borrowings after March 31, 2012
and 2013 are summarized as follows:
Within 1 year

Over 1 year

Over 5 years

Within 1

Over 1 year

Over 5 years

and within 5

and within 10

year

and within 5

and within 10

years

years

years

years

(Millions of yen)(Thousands of U.S.dollars)2012
Trade notes and¥23,882¥470¥-

accounts payable
Corporate bonds
Long-term borrowings
Lease obligations
Total of the amounts

70

-

6,595

14,333

-

138

254

5

¥30,685¥15,057

5¥23,174

¥457

¥-

2013
Trade notes and$246,401$4,859$-accounts payable
Corporate bonds
Long-term borrowings
Lease obligations
Total of the amounts

-

-

-

-

-

7,525

13,773-80,011

146,443

-

154

305

22

1,637

3,243

235

¥30,853¥14,535¥22$328,049$154,545$235

12

19. Derivatives
The following is a summary of the derivative contracts which do not meet the criteria for hedge accounting:(a) Currency-related Transactions
2012

2013

2013

Contracted

Fair

RecognizedContracted

Fair

RecognizedContracted

Fair

Recognizedamountvalue

gain (loss)

amountvalue

gain (loss)

amountvalue

gain (loss)(Millions of yen)

(Millions of yen)(Thousands of U.S. dollars)

Forward foreignexchange contracts(Sell-USD)¥5,308¥ (209)¥ (209)¥1,893

¥(79)

¥(79)

$20,128$ (840)(Sell-QAR)

351

(19)

(19)

148

(7)

(7)

1,574

(74)

$(840)(74)(Sell-KWD)

9

(1)

(1)

4

(1)

(1)

43

(11)

(11)

(Sell-SGD)

-

-

-

187

(5)

(5)

1,988

(53)

(53)

¥3,957

¥(24)

¥(24)

¥943

¥(3)

¥(3)

$10,027

$(32)

$(32)

Forward foreignexchange contracts(Buy-USD)

Note: Fair value is based on the quoted market values provided by financial institutions.

The following is a summary of the derivative contracts which meet the criteria for hedge accounting:(a) Currency-related Transactions
2012

2013

2013

Contracted

Contracted

Fair

Contracted

Contracted

Fair

Contracted

Contracted

Fair

amountamount overvalue

amountamount overvalue

amountamount overvalue

1 year

1 year(Millions of yen)

1 year(Millions of yen)(Thousands of U.S. dollars)

Forward foreignexchange
contracts underprinciple (Buy)
EUR

¥-

¥-

¥-

¥178

¥-

¥38

$1,893$-$404

Note: Fair value is based on the quoted market values provided by financial institutions.

(b)Interest-related Transactions
2012

2013

2013

Contracted

Contracted

Fair

Contracted

Contracted

Fair

Contracted

Contracted

Fair

amountamount overvalue

amountamount overvalue

amountamount overvalue

1 year

1 year(Millions of yen)

1 year(Millions of yen)(Thousands of U.S. dollars)Interest rate swaps
Pay/fixed andReceive/floating
Long-term debt

¥7,903¥5,093¥¥9,158¥6,150¥$97,374
Note: Fair value of the interest rate swaps transaction is included in the fair value of the long-term debts.

$65,391$-

20. Per Share Information
Net income (loss) and net assets per share for the years ended March 31, 2012 and 2013 were as follows:2012
Net income (loss) per share
Net assets per share

2013

2013

(Yen)

(U.S. dollars)¥ 0.57¥（20.66）$（219.670）¥132.05¥ 113.76$1.210Net income per share is calculated based on the net income (loss) and the weighted average number of shares
outstanding during each year. Net assets per share are calculated based on the net assets excluding the minority
interests and the number of shares outstanding at the year end.

13

The basis for calculation of basic net income per share was as follows:
2012

2013

(Millions of yen)

2013
(Thousands of
U.S. dollars)

Net income (loss)¥162¥(6,365)$(67,677)

Net income (loss) attributable to shares of common stock¥162¥(6,365)$(67,677)

Weighted average number of shares for basic net income

283,189(Thousands of shares)

308,164

21. Other Comprehensive Income
Reclassification adjustments and tax benefit included in other comprehensive income are shown as follows:
2012

2013

(Millions of yen)

2013
(Thousands of
U.S. dollars)

Net unrealized holding gains (losses) on other securities
Increase during the year

¥373

¥287

Reclassification adjustments(1,553)38$3,052404

Subtotal before tax(1,180)

325

3,456

Tax effect

494

(102)

(1,085)Net unrealized holding losses on other securities

(686)

223

2,371

Increase during the year

0

38

404

Subtotal before tax

0

38

404

Tax effect

-

(14)

(149)

Net deferred gains on hedges

0

24

255

671

-

-

(55)

540

5,742

-

(4)

(43)

(55)

536

5,699

Deferred gains (losses) on hedges

Variance of land revaluation
Tax effectForeign currency translation adjustments
Increase (decrease) during the year
Reclassification adjustments
Net foreign currency translation adjustments
Share of other comprehensive income of affiliates in equity method
Increase during the year
Total other comprehensive income

8

308

3,275

（62）

1,091

11,60022. Segment Information
Business Segments
The businesses of the Companies are divided based on the similarity in products and service categories into fiveclassifications whose financial information are separately available for the management to make decisions
regarding management resources allocation and evaluate each business segments result regularly.
The Companies primarily operate in the following five reportable business segments:(1) Electric Wire operations:
Bare conductors, bus, insulated wires(2) Power System operations:Electric power cables, electric power appliance, power cable constructions(3) Magnet Wire operations:
Magnet wires(4) Communication System operations:
Optical fiber cables, communication cables, communication cable construction, network solution system(5) Device operations:
Precision devices, vibration controlling devices and wire harnesses
The business segment “Others” which is not stated as reportable business segment, includes the businesses ofselling superconducting wires, logistics and other operations.
Reportable segment performance is evaluated based on operating income or loss. The intersegment sales andtransfers between segments are made at arm’s length prices.
The business segment information for the Companies for the year ended March 31, 2012 is summarized asfollows:
14

2012
Segment Information

Reportable Business Segments
Electric

Power

MagnetCommunication

Wire

SystemWire

SystemOthersDevice

Total

Adjustments

Consolidated(Millions of yen)
Net sales
Outside customers¥64,508¥42,287¥22,186¥22,269¥18,005¥2,526¥171,781-¥171,781

Inter segment

19,663

1,027

1,078

2,176

372

9,683

33,999(33,999)-

Total¥84,171¥43,314¥23,264¥24,445¥18,377¥12,209¥205,780¥(33,999)¥171,781

Segment income orloss¥2,425¥(446)¥270¥(176)¥741¥(704)¥2,110¥(164)¥1,946

Segment assets¥40,181¥45,760¥14,701¥19,603¥13,664¥10,014¥143,923¥(424)¥143,499

536

1,069

363

513

361

509

3,351

(72)

3,279

1,526

538

-

-

70

62

2,196

-

2,196

367

398

313

332

853

782

3,045

(162)

2,883

Depreciation
Investments in equity
method affiliates
Increase in fix assets

Notes:(1) Segment income or loss included in Adjustments of ¥164 million, mainly consisted of unrealized profits of ¥58 million andamortization of goodwill of ¥88 million.
(2) Segment assets included in Adjustments amounted to ¥424 million, mainly consisted of the common assets not allocated toany segment of ¥11,549 million, elimination of inter-segment transactions of ¥9,898 million and unrealized gain of¥2,076 million. The common assets not allocated to any segment mainly consisted of cash, time deposits and investment
securities.
(3) Depreciation in Adjustments corresponds to unrealized gain.
(4) Increase in fixed assets in Adjustments corresponds to unrealized gain.
(5) Segment income or loss corresponds to consolidated operating income.

The business segment information for the Companies for the year ended March 31, 2013 is summarized asfollows:
2013
Segment Information

Reportable Business Segments
Electric

Power

MagnetCommunication

Wire

SystemWire

SystemOthersDevice

Total

Adjustments

Consolidated(Millions of yen)
Net sales
Outside customers¥66,787¥41,364¥19,859¥20,217¥19,551¥2,020¥169,798-Inter segment

18,377

1,164

670

2,055

752

10,30433,322(33,322)¥169,798-

Total¥85,164¥42,528¥20,529¥22,272¥20,303¥12,324¥203,120¥(33,322)¥169,798

loss¥2,377¥(1,408)¥(157)¥(218)¥1,065¥(447)¥1,212¥(85)¥1,127

Segment assets¥41,236¥39,688¥12,637¥18,465¥14,412¥10,221¥136,659¥232¥136,891

510

836

354

489

427

663

3,279

(109)

3,170

2,352

651

-

-

55

71

3,129

-

3,129

701

393

329

637

580

1,283

3,923

(111)

3,812

Segment income or

Depreciation
Investments in equity
method affiliates
Increase in fix assets

15

2013

Reportable Business Segments

Segment Information

Electric

Power

MagnetCommunication

Wire

SystemWire

SystemOthersDevice

Total

Adjustments

Consolidated(Thousands of U.S. dollars)

Net sales
Outside customers$710,122$439,809$211,154$214,960$207,879$21,477$1,805,401-$1,805,401

Inter segment

195,396

12,376

7,124

21,8507,996

109,559354,301(354,301)

-

Total

$905,518$452,185$218,278$236,810$215,875$131,036$2,159,702$(354,301)$1,805,401

loss$25,274$(14,971)$（1,669）$(2,318)$11,324$(4,753)$12,887$(904)$11,983

Segment assets$438,448$421,988$134,365$196,332$153,237$108,676$1,453,046$2,467$1,455,513

5,423

8,889

3,764

5,199

4,540

7,049

34,864(1,159)33,705method affiliates

25,008

6,922

-

-

585

755

33,270-33,270

Increase in fix assets

7,453

4,179

3,498

6,773

6,167

13,642

41,712(1,180)40,532

Segment income or

Depreciation
Investments in equity

Notes:(1) Segment income or loss included in Adjustments of ¥85 million (US$904 thousand), mainly consisted of amortization of
goodwill of ¥67 million (US$712 thousand).
(2) Segment assets included in Adjustments amounted to ¥232 million (US$2,467 thousand), mainly consisted of the common
assets not allocated to any segment of ¥12,537 million (US$133,302 thousand), elimination of inter-segment
transactions of ¥9,956 million (US$105,859 thousand) and unrealized gain of ¥2,349 million (US$24,976 thousand).
The common assets not allocated to any segment mainly consisted of cash, time deposits and investment securities.
(3) Depreciation in Adjustments corresponds to unrealized gain.
(4) Increase in fixed assets in Adjustments corresponds to unrealized gain.
(5) Segment income or loss corresponds to consolidated operating income.

Geographical Segments
Geographical segment sales for the years ended March 31, 2012 and 2013 are summarized as follows:Year ended March 31, 2012

Japan

Asia

Other

Total

¥152,557¥18,984¥240¥171,781

Japan

Asia

Other

Total

¥149,114¥20,401¥283¥169,798

Japan

Asia

Other

Total

(Millions of yen)

Sales

Year ended March 31, 2013

(Millions of yen)

Sales

Year ended March 31, 2013

(Thousands of U.S. dollars)

Sales$1,585,476$216,916$3,009$1,805,401

Note: Countries and area are segmented based on the customers’ geographical locations.

Major Customer Information
For the year ended March 31, 2012, since there was no particular customer, sales to which exceeds 10% ofsales stated on the consolidated statement of operations, the information was omitted.
2013
Major customer

Sales(Millions of yen)Segments￥21,940SENSHU ELECTRIC CO.,LTD.

Electric Wire and Communication System

2013
Major customer

Sales(Thousands of U.S. dollars)＄233,280

SENSHU ELECTRIC CO.,LTD.

16

Segments
Electric Wire and Communication System

Segment information on impairment losses on fixed assets for the years ended March 31, 2012 and 2013 aresummarized as follows:
Reportable Business Segments
Year ended March

Electric

Power

MagnetCommunication

31, 2012

Wire

SystemWire

SystemDeviceOthersEliminations

Total

10

55

-

89

DeviceOthersEliminations

Total

63

21

-

4,348

DeviceOthersEliminations

Total

670

223

(Millions of yen)
Impairment losses of

24

-

-

-

fixed assets

Reportable Business Segments
Year ended March

Electric

Power

MagnetCommunication

31, 2013

Wire

SystemWire

System(Millions of yen)

Impairment losses of

-

3,342

561

361

fixed assets

Reportable Business Segments
Year ended March

Electric

Power

MagnetCommunication

31, 2013

Wire

SystemWire

System(Thousands of U.S. dollars)

Impairment losses of-

35,534

5,965

3,839

-

46,231

fixed assets
Note: Impairment losses of fixed assets in other segment is related to the idled assets which are owned by the company engaged in administrative managementbusiness.

17