JSP A nnual Review 2016
Year ended March 31, 2016

Searching Deeper
	Reaching Higher

Financial Highlights

Environmentally
responsible

JSP Annual Review 2016

JSP Corporation and Consolidated Subsidiaries—Years ended March 31

Development
capability
Automotive

Global network

Material anddesign proposal
capability

Supplycapability

JSP technologies offer a wide range of performance
benefits to automobile manufacturers, from enhancing
collision safety performance to reducing vehicle weight andimproving fuel efficiency. JSP supplies leading automakers with automotive components that take full advantageof the unique capabilities of high-performance plastics,
highlighted by our revolutionary lightweight and shockabsorbent ARPRO® (Expanded Poly Propylene) material.

For the Year:

Construction
JSP insulation materials contribute to creating comfortable home living environments by providing exceptional
insulation performance for heat and cold retention andwater shedding. Our core expanded polystyrene product
MIRAFOAM™ is widely used in homes, apartment andoffice buildings, and other large structures and by commercial operators with refrigerated warehouses.

Civil engineering

Global supplierof foamed plastic

JSP is a leader of the foamed plastic industry and has
been pioneering foamed plastic materials and products
since its founding in 1962.
We develop products that take full advantage ofthe potential of plastic and for virtually every field ofindustry, where they contribute to developing industry
and enriching people’s lives around the world.
We have cultivated our business activities in linewith our deep respect for the natural environment anddesign each of our products from the earliest R&D
stages to have minimal impact on the environment.
JSP is creating new value for customers worldwide
through foamed plastics utilizing our leading capabilities
developing products that “break the mold” of existing
concepts, proposing products and materials that meetcurrent and future market needs, and supplying customers from a worldwide network of production bases.

JSP products help ensure the safety of social infrastructure as key components in road construction, soft-groundstabilization, landslide prevention, and other civil engineering applications. Our STYRODIA® BLOCK products
combining expandable polystyrene and lightweightmortar wall surfacing materials enable fast and easy wallconstruction. The blocks, which are lightweight, easy towork with, and highly resistant to corrosion, make themost of the unique characteristics of foamed plastic toprovide new value in the civil engineering field.

2016

2015

2014

2013

2012

¥114,904¥116,923¥112,128¥96,038¥93,397$1,019,737

Operating income

9,278

5,667

5,909

4,575

5,296

82,339Ordinary income

9,101

6,044

6,509

4,927

5,536

80,768

	Income before income taxes

8,752

6,000

6,536

4,752

5,176

77,671	Net income attributable to owners of the parent

5,914

4,039

4,404

3,324

3,100

52,484

Total assets

115,136

116,717

108,420

95,56589,072

1,021,796

Total net assets

72,49770,35262,37553,43147,362643,388

Shareholders’ equity

67,89065,30757,85349,83844,721

602,502

Net sales

1

2016

At Year-End:

U.S. dollars1

Yen

Per Share Information:
	Net income2¥ 198.40¥ 147.73¥ 135.50¥ 111.49¥ 103.98$ 1.76

Cash dividends

40.00

30.00

30.00

30.00

30.00

		 0.35

Total net assets

2,277.32

2,190.61

1,940.48

1,671.55

1,499.89

		 20.21

Notes: 1. U.S. dollar amounts are translated from yen, for convenience only, at the rate of ¥112.68=U.S.$1.
2. Net income per share is computed based on the weighted-average number of shares of common stock outstanding during each year.

Packaging
JSP develops and provides packaging solutions for safe
transport of items ranging from household electronics toprecision equipment and ceramics. Our MIRANET® seriesof low-density expanded polyethylene products provides
exceptional cost and performance advantages from its
combination of extreme versatility, high durability, andreusability. These attributes have made MIRANET® aleading packaging material in the distribution field, particularly for use as long-lasting and reliable cushioning foritems requiring extended shipping and storage periods.

Net sales

Operating income / Net income
attributable to owners of the parent(Billions of yen)

93

116

114

96

Food packaging

2

Message from the President

3

Review of Operations

5

This Year’s Topics

7

Consolidated Balance Sheets

9

Consolidated Statements of Income

11

Consolidated Statements of Changes in Net Assets

12

Consolidated Statements of Cash Flows13

Notes to Consolidated Financial Statements

14

Global Network

21

Corporate Data

22

2013

2014

2015

2016

9.2

Operating income
Net income attributable toowners of the parent

5.2

JSP food packaging materials play an integral role in foodsafety. Our STYRENE PAPER™ expanded polystyrene
sheet is used as insulation in hot and cold containers
to preserve the freshness of fish, meat, and vegetables
during transport. We are constantly developing products
offering both high performance and convenience to meetthe evolving lifestyle needs and food preferences.

Financial Highlights

Total assets(Billions of yen)(Billions of yen)

112

2012

Contents

Thousands of
U.S. dollars1

Millions of yen

89
5.9

4.5

5.6
4.4

3.1

3.3

2012

2013

108

2014

116

115

2015

2016

95

5.9

4.0

2015

2016

2012

2013

2014

Major Factors
Copyright 2016, JSP Corporation. All rights reserved.

Forward-Looking Statements
This annual review includes for ward-looking
statements related to JSP Corporation’s plans,
strategies, and business results. These statements
represent judgments of JSP based on information
available at the time of writing. As such, thesestatements are subject to risks and uncertainties.
Please understand that actual performance may
differ from these forward-looking statements.

Net sales–1.7%

Net sales declined 1.7% year on year. Sales werestrong in Europe, the US, and China, and also
benefited from a relatively weak yen for foreignexchange conversion. These were offset, however, by
the slow pace of Japan’s economic recovery, which led
to a decrease in automobile production and stagnant
demand for housing and durable goods, and theimpact of our product price revisions.

Operating
Income+63.7%

Operating income rose 63.7% year on year on sharp
rises in Japan and overseas. Overseas sales werestrong in EMEA, the United States, and Asia, andwere further boosted by low raw material costs anda weak yen. In Japan, revenue improved from ourability to generally adjust the spread between the raw
material prices and our product sales prices. Lower
depreciation costs, due to an accounting revision, also
contributed.

Net Income

attributable toowners of the parent+46.4%The sharp rise in operating income generated
46.4% year-on-year increase in profit attributableto owners of parent. Non-operating income wasunchanged from the previous year. Extraordinary
income increased from the booking of subsidy
income associated with new plant construction. Nonoperating expenses rose substantially primarily due
to steep year-on-year increases in foreign exchange
loss and extraordinary loss, which included charges
for restructuring initiatives.

2

Message from the President“

JSP Annual Review 2016

Medium-Term Management Plan (FY2015–2017)Managing for further growth
guided by our corporate philosophy

Basic Policy“

Corporate Philosophy

Management Policy

Creatively and Actively
Contribute to Society

Growth oriented“Deepen & Grow 2017”
Numerical Targets for Fiscal Year 2017

Promoting the Differentiation Strategy
Promoting the Growth Strategy

Net sales¥135,000 million

including ¥10,000 million from new products

Deepen = Dig deep into our current businesses
Extend ouruniqueadvantages

Rawmaterials

Technologies

OperatingMarginMarkets

Reference
ROE

Yukio Sakai

6.5 % or more

Grow = Sustaining growth

Equity ratio

Approx. 8 %Approx. 59 %President, Representative Director

Upon my appointment as president
I am delighted for this opportunity to introduce myself
to our stakeholders and customers following myappointment as company president on June 29, 2016.
My mission as president of JSP, with its half
century of history and culture, is to build on thecompany’s business and technological foundations
and to fully engage our abundant human capital andother management resources to ensure we continue
our heritage of transformation and sustaining growth.
The first imperative is to fulfill the objectives of ourcurrent medium-term management plan.

Forging ahead from historical highs
In fiscal year 2015, with the support of a favorable
external environment, we posted record-high profits
even as we were advancing structural reforms.
Business conditions, however, continue evolving
virtually on a daily basis. The changing environment
means that in order to fulfill our medium-term
management plan and continue growing, it is essentialthat we constantly confirm that our action plans
are working effectively and be ready to implement
improvements whenever necessary.
Our corporate philosophy guides all of ourmanagement decisions. Superior companies
express an awareness of their reason for being andtheir corporate philosophy in every aspect of their

3business activities. JSP’s corporate philosophy is to“creatively and actively contribute to society,” and wemust ensure that all of our development, production,and sales activities are faithful to this philosophy bycontributing to society and being conceptualized
from the customer’s perspective. This means that thegrowth of our business is guided by our customers,that we approach every business decision from thepoint of view of the people who actually use our
products.

Knowing our strengths and continually making
them stronger
Company directors have a responsibility to “setthe course for the company” by deciding what thecompany will and will not do, to consider “the optimal
allocation of management resources,” and to “motivate
personnel” at every operating site. To successfully
fulfill these directives, directors must be eminently
clear about the company’s strengths and they must
continually seek to build those strengths.
Steadfastly building our strengths will give us theresilience to forge through even the most challenging
business conditions. Taking a long-term perspective
as we develop our strengths will enable us to identify
domains with business potential and concentrate
management resources in areas where our products
can be highly marketable and profitable.
This is the approach I will take as I seek to createa highly profitable business structure by developing
and offering a full lineup of high-function, high-valueadded products encompassing a wide range ofapplications conceptualized from the customer’s
perspective.

Safe and stable manufacturing operations andhuman resource development
Fulfilling our social responsibility as a company also
requires that we build a corporate structure that allows
us to elevate our business performance and share thegrowth with our stakeholders.
Safety and stability in our manufacturing operations is essential, and we must aim to achieve ano-accident, no-injury workplace. As president, I will
increase opportunities to converse with the people
involved in our production chain by visiting eachmanufacturing facility and affiliated company.
Developing our human resources will be anothermain theme while I am president. It’s essential that JSP
has a corporate structure that encourages employees
to hone their skills and develop their abilities. I also
believe it’s important to support each person’s dreams
and aspirations and encourage each employee tothink how they can play a role in society so they cantake action on their own initiative.
I want to make JSP a company where all group
employees are proud that they are doing meaningful
work at a good company.

Creating a solid corporate structure
JSP adopted a new Corporate Governance Code in
2015.
Another part of my mission is to construct a solid
corporate structure for the JSP Group. Following
our corporate philosophy, I will seek to maintainthe effective functioning of corporate governance,
implement comprehensive environmental and safety
management, fortify internal controls for thorough risk
and compliance oversight, and cultivate personnel toeffectively implement our business activities.

My experience identifying and resolving issues at anumber of business assignments has taught me one
basic truth: the answers are always at the worksite.
I intend to lead JSP and the JSP Group withmanagement that is firmly rooted in the worksites andactual conditions.

Yukio Sakai
President, Representative Director

4

Review of operations

JSP Annual Review 2016

Earnings grew substantially on improved businessrevenue in Japan and strong results in the U.S.,
EMEA, and Asia.

Bead
Business
Percentage of total sales

61.7

Sales

+0.7%

70,34070,865

Operatingincome+53.2%

Extrusion
Business

7,436

Percentage of total sales

Sales

–4.1%

%

39,91538,289

33.3

4,854

%

Extrusion Business earnings increased
substantially as the adjusted profit margin spreads
and lower depreciation costs more than offset thedecreased revenue caused by the sales decline
and product price revisions.
Operatingincome+104.3%
2,755

1,348
2015

2016

¥ million

2016

2015

¥ million

Sales by region

2015

2016

¥ million

2015

2016

¥ million

Sales by productNorth America
North America sales increased sharply
supported by growing demand for our
automotive components, including
expanding use of newly released
products, and strong demand forground surface cushioning for
sports facilities and pavement basematerials. A favorable forex rate also
contributed.

Down
Up

Up

South America

Down

South America sales declined as
stagnating business conditions in
Brazil led to a drop in automobile
production unit volume and a weakBrazilian real.

EuropeAsia

Europe sales declined as the impactsof the product price revisions and aweak euro negated a sharp increase insales volume from growing demand
for automotive components.

Asia sales increased overall as successgenerating new demand in theautomobile and consumer electronics
markets in China and Southeast
Asia and a boost from the weak yen
overcame diminished demand inSouth Korea and Taiwan.

Sales by product

Down
Up

Up

MIRAMAT®

CAPLON™

P-BOARD™

MIRAMAT® is our expanded polyethylene sheet used
as an industrial packaging material for shipping
LCD panel substrates and consumer electronics.
MIRAMAT® sales increased as steady sales of highvalue-added products offset the negative impacts
of a contracting market for LCD panels and a slowto-materialize demand recovery for large electricalappliances and other durable goods.

Sales grew for our CAPLON™ air-bubble polyethylene
cushioning material supported by a broader range ofapplications, including as an automotive component
cushioning material.

The sluggish consumer electronics market led toa decline in sales of our P-BOARD™ expanded
polypropylene sheet, which is used mainly for
returnable transport containers for automotive partsand consumer electronics.

Down
Down
Up

5

Down
Up

Up

ARPRO®

STYRODIA®

FOAMCORE™

Our expanded polypropylene ARPRO® (Expanded
Poly Propylene) products are used in automobile
bumpers and seat cores and as cushioning material
in a wide range of fields. ARPRO® demand increased
worldwide during the year for use in new automotive
components and as packaging material for electronic
products. Overall sales increased on strong sales
in North America, Europe, and China while sales
declined in Japan and South America.

Sales of our ST YRODIA® expandable polystyrene
beads declined during the year. Although demandm ove d t ow ar d r e c over y in t h e f i sh er ie s an dagricultural sectors, demand remained sluggish in
the consumer electronics, construction, and civilengineering sectors. The product price revisions also
impacted the results.

Sales of our hybrid molded FOAMCORE™ products
increased for its main application as a ceiling material
for prefabricated bathroom units and as a flotationmaterial, a new area of application the company isdeveloping.

STYRENE PAPER™

MIRABOARD™

MIRAFOAM™

Sales declined for our STYRENE PAPER™ expanded
polystyrene sheet, which is used for a wide variety offood packaging applications, from instant noodles
and lunch boxes to food trays used at mass retailers.
Sales volume increased for instant noodle cups andconvenience store lunch boxes but declined for foodtrays. The product price revisions also impacted thesales result.

Diversifying demand for high-value-added board
materials boos ted sales of our MIR ABOARD™
expanded polystyrene board, which is used mainly foradvertising displays.

Overall sales declined for our expanded polystyrene
MIR AFOAM™ extruded board produc t s forconstruction and civil engineering applications.
MIRAFOAM™ sales were strong in the construction
sector for our in-house-developed thermal insulationand pre-cut products, but this was more than offset
by the slow recovery in housing construction starts.
Sales were also down in the civil engineering sector,
due to sluggish demand in the public works sector.

6This Year’s Topics

JSP Annual Review 2016

Topic #2

Continued Growth of
ARPRO® EPP automotive seating

Topic #1

Topic #2

Topic #3

The first automotive seating application using ARPRO®
Expanded Polypropylene (EPP) was launched with Lear Corporation in 2004. It was a 60%-40% split rear seat cushion for
General Motors’ Chevy Impala. Less than 30,000 seat cushions
were sold that year. In the four years of 2014-2017, nearly one
million vehicles annually will be equipped with an ARPRO®
rear seat cushion or component.
Several major automotive OEMs are specifying ARPRO®
EPP solutions for seat components in 2016-2020. JSP and its
molder partners are preparing nearly 15 projects that willencompass over 2.5 million vehicles annually and generateannual sales revenue of over $25 million.
The growth for ARPRO® EPP in automotive seating is
attributed to the weight savings that ARPRO® offers overpolyurethane and other traditional technologies. An ARPRO®
seat can reduce vehicle weight by as much as two pounds.
ARPRO® rear seat systems also offer parts consolidation,
faster assembly, and anti-submarining performance. Theseadvantages can save 10-20% in costs with an integrated seatand up to 40% savings in seat assembly costs.
In addition to rear seat cushions like in the Chevy Impala,
ARPRO® EPP is also used in rear seat backs, seat risers, andtrim rings. The facts that ARPRO® EPP is manufactured without
any volatile organic compounds (VOCs) and is recyclable arealso contributing to its increasing use in automotive seating.

Topic #1

Thailand ARPRO® plant		 construction completed

In March 2016, JSP completed construction of an ARPRO®
expanded polypropylene plant at JSP Foam Products (Thailand) Co., Ltd. Located in the industrial district of Samut Prakan
Province, about 30 kilometers from Bangkok, the 12,586m2
plant will have an annual production capacity of 1,800 tons.
The new facility was constructed to respond to the rapid
increase in demand for ARPRO® products for automotive
applications. While low-density expanded beads used to
produce ARPRO® were previously shipped to Thailand fromSingapore, the new plant, which will have an annual production capacity of 1,800 tons, will provide a steady local supplyof materials and reduce delivery costs while also providing
various benefits to customers, including accelerating the integration of technical feedback.
Thailand is becoming a key supplier of pickup trucks
and compact cars to the world, and currently roughly 60% of
the automobiles assembled in the country are produced forexport. The country is developing into a core industrial nationin the ASEAN community and its economy is expected tocontinue growing in the future.

7

Topic #3

Fitness Rollers—New uses for a time-tested application
Yoga rollers have been used for many years in yoga classes
and are evolving into “fitness rollers” with various uses beyond
yoga classes. Amateur and professional athletes use fitnessrollers for stretching and massaging muscles, and physicaltherapists commonly use them in rehabilitation centers. Fitness rollers have even become a popular consumer productfor home exercise use.

JSP’s molding plant in Jackson, Michigan, USA, began
producing a small quantity of fitness rollers using one press
for a single customer in 2011. Sales have grown over 20%
annually, and JSP has now supplied nearly a half million rollers with the plant currently running three presses to handle
the demand. JSP’s fitness rollers are primarily sold on-line via
Amazon but are also increasingly available at retail stores. The
most popular roller sizes are 6” in diameter with a length of 36,
18 or 12-inches.
Nearly 90% of the JSP’s fitness rollers are made of ARPRO®
Expanded Polypropylene (EPP), which offers key advantages
over poured urethane. The ARPRO® EPP rollers are more
durable and do not flake, and their chemical resistance allows
cleaning with alcohol-based cleaners, which would degrade
urethane rollers. Fitness rollers made of ARPAK® EPE are
popular for home use as they are less rigid than the ARPRO®
EPP rollers used by athletes and physical therapists.
The fitness roller industry continues to evolve with new sizes
and shapes. A roller with a smaller diameter and length is in theworks as a travel-size roller to fit in an airplane carry-on bag.

8

JSP Annual Review 2016

CONSOLIDATED BALANCE SHEETSJSP Corporation and Consolidated Subsidiaries
As of March 31

Thousands of
U.S. dollars (Note1)

Millions of yen

ASSETS
Current assets
Cash and deposits
Notes and accounts receivable–trade
Electronically recorded monetary claims–operating
Short-term investment securities
Merchandise and finished goods
Work in process
Raw materials and supplies
Accounts receivable–other
Deferred tax assets
Other
Allowance for doubtful accounts
			 Total current assets

Noncurrent assets
Property, plant and equipment
Buildings and structures
		 Accumulated depreciation
		 Accumulated impairment loss
		 Buildings and structures, net
		 Machinery, equipment and vehicles
		 Accumulated depreciation
		 Accumulated impairment loss
		 Machinery, equipment and vehicles, net
Land
Lease assets
		 Accumulated depreciation
		 Lease assets, net
Construction in progress
Other
		 Accumulated depreciation
		 Other, net
			 Total property, plant and equipment
Intangible assets
Investments and other assets
		 Investment securities
		 Long-term loans receivable
		 Deferred tax assets
		 Other		 Allowance for doubtful accounts
			 Total investments and other assets
			 Total noncurrent assets
			 Total assets

2016
		

2015

2016

		
¥ 16,003
30,046
2,909
121
6,534
891
4,044
566
820
1,032
(298)
62,672¥ 15,314
30,762
2,513
7
7,127
1,030
4,422
878
718
1,819
(489)
64,106$ 142,021
266,648
25,816
1,073
57,987
7,907
35,889
5,023
7,277
9,158
(2,644)556,194

37,333(21,434)(13)
15,88673,864(58,393)(151)
15,31914,476
92
(62)
30
1,630
9,866
(8,796)
1,069
48,413934

36,317(20,740)(18)
15,557
72,522(56,920)(101)
15,50014,438
94
(44)
49
2,040
9,877
(8,937)940
48,5271,014

331,318(190,220)(115)
140,983
655,520(518,219)(1,340)135,951
128,470
816
(550)
266
14,46587,557(78,061)
9,487
429,650
8,288

1,833
39
257
1,336
(350)
3,116
52,464

1,882
45
313
837
(9)
3,069
52,611

16,267346
2,280
11,856(3,106)27,653
465,601¥115,136¥116,717$1,021,796

Thousands of
U.S. dollars (Note1)

Millions of yen

LIABILITIES AND NET ASSETS
Current liabilities
Notes and accounts payable–trade
Electronically recorded obligations–operating
Short-term loans payable
Current portion of long-term loans payable
Lease obligations
Asset retirement obligations
Accounts payable–other
Income taxes payable
Accrued consumption taxes
Deferred tax liabilities
Provision for bonuses
Provision for business structure improvement
Notes payable–facilities
Electronically recorded obligations–facilities
Accounts payable–facilities
Other
			 Total current liabilities
Noncurrent liabilities
Long-term loans payable
Lease obligations
Asset retirement obligations
Deferred tax liabilities
Provision for business structure improvement
Provision for directors’ retirement benefits
Provision for corporate officers’ retirement benefits
Net defined benefit liability
Other
			 Total noncurrent liabilities
			 Total liabilities
Net assets
Shareholders’ equity
		 Capital stock		 Capital surplus
		 Retained earnings
		 Treasury stock			 Total shareholders’ equity
Valuation and translation adjustments
		 Valuation difference on available-for-sale securities
		 Foreign currency translation adjustment
		 Remeasurements of defined benefit plans
			 Total valuation and translation adjustments
Non-controlling interest
			 Total net assets
			 Total liabilities and net assets

		
2016

2016

2015

		
¥ 8,520
1,509
6,201
4,961
13
8
2,805
1,807
599
–
1,479
121
–
76
1,336
2,452
31,894¥ 10,189
1,181
7,757
5,578
20
–
3,139
342
477
21
1,065
–
22
41
1,395
2,229
33,460

8,415
7
148
642
185
133
30
549
632
10,744
42,638

10,987
16
–
1,068
–
118
19
217
478
12,90546,36574,680
62
1,313
5,697
1,641
1,180
266
4,872
5,608
95,349378,399

10,12813,40545,267(1,380)67,42010,12813,40540,253(1,378)62,40989,882
118,965
401,730(12,247)
598,331

252
68
148
469
4,607
72,497¥115,136

269
2,348
281
2,898
5,044
70,352¥116,717

2,236
603
1,313
4,162
40,885643,388$1,021,796$

75,612
13,39155,031
44,027115
70
24,893
16,036
5,315–
13,125
1,073–
674
11,856
21,760283,049

The accompanying notes are an integral part of these statements.

910

JSP Annual Review 2016

CONSOLIDATED STATEMENTS OF INCOMECONSOLIDATED STATEMENTS OF CHANGES IN NET ASSETSJSP Corporation and Consolidated Subsidiaries
Years ended March 31

JSP Corporation and Consolidated Subsidiaries
Years ended March 31

2016		Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Selling expenses
General and administrative expenses
Total selling, general and administrative expenses
		 Operating income
Non-operating income
Interest income
Dividends income
Rent income
Foreign exchange gains
Equity in earnings of affiliates
Other
		 Total non-operating income
Non-operating expenses
Interest expenses
Foreign exchange loss
Other
		 Total non-operating expenses
Ordinary income
Extraordinary income
Gain on sales of noncurrent assets
Gain on sales of investment securities
Subsidy income
		 Total extraordinary income
Extraordinary loss
Loss on retirement of noncurrent assets
Loss on sales of noncurrent assets
Loss on valuation of investment securities
Office transfer expenses
Impairment loss
Business structure improvement expenses
		 Total extraordinary losses
		 Income before income taxes
Income taxes–current
Income taxes–deferred		 Total income taxes
Net income
Net income attributable to non-controlling interests
		 Net income attributable to owners of the parent
The accompanying notes are an integral part of these statements

Millions of yen
2016
Shareholders’ equity

Thousands of
U.S. dollars (Note1)

Millions of yen

2015

2016

¥114,904
81,03533,869¥116,923
88,24028,683$1,019,737
719,160
300,576

7,966
16,624
24,5909,278

7,605
15,41023,015
5,667

70,695
147,532
218,228
82,339

245
29
83
–
10
292
661

240
21
55
13
3
323
658

2,174
257
736
–
88
2,591
5,866

155
493
190
839
9,101

191
–
89
280
6,044

1,375
4,375
1,686
7,445
80,768

14
–
301
315

9
30
–
40

124
–
2,671
2,795

94
8
–
–
21
541
664
8,752
3,176
(456)
2,720
6,031
117
¥ 5,914

38
1
40
3
–
–
84
6,000
1,321
329
1,651
4,349
309
¥ 4,039

834
70
–
–
186
4,801
5,892
77,671
28,186(4,046)24,13953,523
1,038
52,484$

Balance, beginning of period
Cumulative effects of changes in accounting policies
Restated balance, beginning of period
Changes of items during the period:
Dividends from surplus
Net income attributable to owners of the parent
Purchase of treasury stock
Change of scope of consolidation
Net changes of items other than shareholders’ equity
Total changes of items during the period
Balance, end of period

Capital surplus

Retained earnings¥10,128¥13,405¥40,253¥(1,378)

10,128				

13,40540,253(1,378)

(894)
5,914

–
¥10,128–¥13,405

Total shareholders’equity¥62,409–62,409

(894)
5,914
(2)
(6)

(2)

(6)

5,011
¥67,420(2)¥(1,380)

5,014¥45,267

Valuation and translation adjustments
Valuation difference Foreign currency Remeasurementsof defined benefit
translation
on available-for-saleplansadjustment
securities

Balance, beginning of period
Cumulative effects of changes in accounting policies
Restated balance, beginning of period
Changes of items during the period:
Dividends from surplus
Net income attributable to owners of the parent
Purchase of treasury stock
Change of scope of consolidation
Net changes of items other than shareholders’ equity
Total changes of items during the period
Balance, end of period

Treasury stock

Capital stock

Total valuationand translation
adjustments

Minority
interests

Net assets

¥269
		
269
		

¥2,348¥281¥2,898¥5,044

2,348

281

2,898

5,044

¥70,352–
70,352

(16)
(16)
¥252

(2,279)(2,279)
¥ 68

(437)
(437)
¥4,607

(894)
5,914
(2)
(6)
(2,866)
2,145¥72,497(2,428)(2,428)
¥ 469

(132)
(132)
¥148

Thousands of U. S. dollars (Note 1)
2016
Shareholders’ equity

Balance, beginning of period
Cumulative effects of changes in accounting policies
Restated balance, beginning of period
Changes of items during the period:
Dividends from surplus
Net income attributable to owners of the parent
Purchase of treasury stock
Change of scope of consolidation
Net changes of items other than shareholders’ equity
Total changes of items during the period
Balance, end of period

Capital stock

Capital surplus

Retained earnings

Treasury stock$89,882$118,965$357,232$(12,229)

89,882
				

118,965

357,232(12,229)(7,933)52,484–$118,965(17)($12,247)

44,497$401,730

Valuation and translation adjustments
Valuation difference Foreign currency Remeasurementsof defined benefit
on available-for-saletranslationplans
securities
adjustment

Balance, beginning of period
Cumulative effects of changes in accounting policies
Restated balance, beginning of period
Changes of items during the period:
Dividends from surplus
Net income attributable to owners of the parent
Purchase of treasury stock
Change of scope of consolidation
Net changes of items other than shareholders’ equity
Total changes of items during the period
Balance, end of period

(17)

(53)
–
$89,882

Total shareholders’equityTotal valuationand translation
adjustments

Minority
interests$553,860–
553,860(7,933)52,484(17)(53)
44,471$598,331

Net assets$2,387$20,837$2,493$25,718$44,763

2,387

20,837

2,493

25,71844,763$624,352–
624,352(3,878)(3,878)$40,885(7,933)52,484(17)(53)(25,434)
19,036$643,388

(141)
(141)
$2,236(20,225)(20,225)$603(1,171)(1,171)$1,313(21,547)(21,547)$4,162

The accompanying notes are an integral part of these statements.

11

12

JSP Annual Review 2016

CONSOLIDATED STATEMENTS OF CASH FLOWSNOTES TO CONSOLIDATED FINANCIAL STATEMENTS

JSP Corporation and Consolidated Subsidiaries
Years ended March 31

JSP Corporation and Consolidated Subsidiaries

Thousands of
U.S. dollars (Note1)

Millions of yen

2016
Net cash provided by (used in) operating activities
Income before income taxes
Depreciation and amortization
Impairment loss
Business structure improvement expenses
Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in provision for bonuses
Increase (decrease) in net defined benefit liability
Increase (decrease) in provision for directors’ retirement benefits
Loss (gain) on sales and retirement of noncurrent assets
Loss (gain) on sales of investment securities
Loss (gain) on valuation of investment securities
Interest and dividends income
Subsidy income
Interest expenses
Foreign exchange losses (gains)
Equity in (earnings) losses of affiliates
Decrease (increase) in notes and accounts receivable–trade
Increase (decrease) in notes and accounts payable–trade
Decrease (increase) in inventories
Increase (decrease) in accrued consumption taxes
Other, net
		 Subtotal
Interest and dividends income received
Subsidy income
Interest expenses paid
Business structure improvement expenses paid
Income taxes paid
		 Net cash provided by (used in) operating activities
Net cash provided by (used in) investing activities
Purchase of noncurrent assets
Proceeds from sales of noncurrent assets
Payments for retirement of noncurrent assets
Purchase of investment securities
Proceeds from sales of investment securities
Net decrease (increase) in time deposits
Purchase of investments in subsidiaries
Other, net
		 Net cash provided by (used in) investing activities
Net cash provided by (used in) financing activities
Net increase (decrease) in short-term loans payable
Proceeds from long-term loans payable
Repayment of long-term loans payable
Purchase of treasury stock
Cash dividends paid
Dividends paid for non-controlling interests
Other, net
		 Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Decrease in cash and cash equivalents resulting from exclusion of subsidiaries
from consolidation
Cash and cash equivalents at end of period
The accompanying notes are an integral part of these statements.

13

2015

2016

¥ 8,752
4,903
21
541
165
427
337
26
88
–
–
(274)
(301)
155
272
(10)
(438)
(1,004)835
101
231
14,828
273
301
(153)
(59)
(1,340)13,849¥6,000
5,327
—
—
(11)
(165)
229
(69)
30
(30)
40
(261)
—
191
85
(3)
235
(1,549)
166
398
(123)
10,491
262
–
(194)
–
(2,269)8,289$77,671
43,512
186
4,801
1,464
3,789
2,990
230
780
–
–
(2,431)(2,671)
1,375
2,413
(88)
(3,887)(8,910)
7,410
896
2,050
131,593
2,422
2,671(1,357)(523)(11,892)
122,905(6,341)
117
(16)
(5)
20
219
–
4
(6,001)(7,575)
206
(7)
(125)
63
(2,598)(34)
2,042(8,029)(56,274)
1,038
(141)
(44)
177
1,943
–
35
(53,257)(1,549)2,600(5,788)
(2)
(894)
(250)
(22)
(5,907)
(531)
1,408
8,893

(13,746)
23,074(51,366)(17)(7,933)(2,218)(195)(52,422)(4,712)
12,49578,922

(7)

956
6,600
(5,282)
(3)
(894)
(198)
(21)
1,156
504
1,920
6,972
–

¥10,295¥8,893$91,364(62)

1. Basis of Presentation of Consolidated Financial Statements
The accompanying consolidated financial statements have been
prepared from the financial statements filed with the Ministry of
Finance as required by the Japanese Financial Instruments andExchange Act, in accordance with accounting principles andpractices generally accepted in Japan. The accompanying consolidated financial statements include the accounts of JSP Corporation (the “Company”), and its domestic and foreign subsidiaries
that are more than 50% owned. Significant intercompany balances
and transactions have been eliminated in consolidation. Invest-

ments in affiliates more than 15% owned are accounted for underthe equity method of accounting.
In addition, the accompanying notes include certain information that is not required under generally accepted accounting principles and practices in Japan, but is presented herein as additional
information. The accompanying consolidated financial statements
have also been presented in U.S. dollars by translating all yen
amounts for the year ended March 31, 2016 using an exchange
rate of ¥112.68 to U.S. $1.

2. Summary of Significant Accounting Policies
1. Investment Securities
Other Investment Securities
Securities for which market prices are available are stated at fairmarket value using the quoted market price as of the last day of
the fiscal year. Valuation differences are directly charged or credited to shareholders’ equity; the cost of securities is calculated
according to the moving average method.
Securities for which market prices are not readily available arestated at cost, as determined by the moving average method.
2. Inventories
Inventories are stated mainly at cost according to the moving
average method (book value written down for inventories with
impaired profitability).
3. Depreciation and Amortization
Property, Plant and Equipment (excluding leased assets)
Buildings (excluding attached structures) acquired by the Company and its consolidated companies are depreciated according
to the straight-line method under the Tax Law.
The primary useful lives are as follows:
Buildings and structures 7–50 years
Machinery, equipment and vehicles 4–15 years
Changes in accounting policy difficult to distinguish from changes
in accounting estimates.
Beginning with the fiscal year under review, the Company and its
domestic consolidated companies have adopted the straight-line
method—replacing the declining-balance method—as the primaryaccounting method for calculating depreciation of property,
plant and equipment. (Buildings (excluding attached structures)acquired by the Company and domestic consolidated companies between April 1, 1998 and March 31, 2007 are depreciatedaccording to the former straight-line method. Buildings acquiredon or after April 1, 2007 are depreciated according to the straight-

line method. Buildings owned by overseas consolidated subsidiaries are depreciated according to the straight-line method.)
Upon examining the depreciation method for the company’sbusiness facilities when formulating the strategies for the first yearof the medium-term management plan, management determined
that, considering the low technical obsolescence risk and anticipated stable use of facilities, the straight-line method is able toprovide a more accurate reflection in the accounting of profit andloss over time for the Group’s manufacturing facilities.
Application of the new accounting method had the effect ofincreasing consolidated operating profit for the fiscal year by ¥797
million compared to the former method and increasing each ofrecurring profit and net income before income taxes and minority
interests by ¥804 million.
The effect of the new accounting method on a per-share basis
is provided where the per-share data is presented.
Intangible Noncurrent Assets (excluding leased assets)
Intangible noncurrent assets acquired by the Company and consolidated companies are amortized according to the straight-line
method.
Useful lives and residual values are determined according tostandards prescribed by the Tax Law.
Software used for internal purposes is amortized according to
the straight-line method over the useful life for Company purposes(five years).
Leased Assets
Assets subject to financing lease transactions in which asset ownership is not transferred to the lessee are depreciated according
to the straight-line method. The lease term is considered to be theuseful life of the asset; residual value is assumed to be zero.

14

JSP Annual Review 2016

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

4. Significant Allowances and Provisions
Allowance for Doubtful Accounts
The Company and its consolidated companies reserve against
losses due to uncollectible debt using actual loss ratios for general
receivables. For accounts questionable as to collectability andunder claim of bankruptcy, The Company and its consolidated
companies reserve against uncollectible amounts according to thelikelihood of collectability in each case.
Provision for Bonuses
The Company and its consolidated companies reserve an estimated amount of future payments for employee bonuses basedon a calculation of the exact amount to be payable for the current
consolidated fiscal year.
Provision for Directors’ Retirement Benefits
The Company reserves an amount for director retirement benefits
based on corporate bylaws. The amount reserved is equivalent
to the amount payable as of the end of the current consolidated
fiscal year.
Provision for Corporate Officers’ Retirement Benefits
The Company reserves an amount for executive officer retirement benefits based on corporate bylaws. The amount reserved
is equivalent to the amount payable as of the end of the current
consolidated fiscal year.
Business Structure Improvement Expenses
The Company maintains a reasonable estimated amount as areserve against losses in the event of closures or other incidents
associated with its production bases or other tangible assets.
Provision for Employees’ Retirement Benefits
The Company and its consolidated companies reserve an estimated amount for employee retirement benefits based on thebenefit formula basis and related pension assets for the current
consolidated fiscal year.
Prior service cost is charged to expense as it occurs according
to the straight-line method based on a certain number of years(generally 14 years) representing the average remaining years of
employment.
Any actuarial differences are charged to the expense accountsof the following consolidated fiscal year according to the straightline method based on a certain number of years (generally 14
years) representing the average remaining years of employment.
Certain consolidated companies apply the simplified method for
calculating net retirement benefit liability and retirement benefitcost.

5. Foreign Currency Translation
Domestic consolidated companies translate rights and obligations
denominated in foreign currencies into Japanese yen according
to the spot rate as of the last day of the consolidated fiscal period.
Translation differences are recorded as income or expense. Assets
and liabilities of foreign consolidated companies are translated
into Japanese yen according to the spot rate as of the last dayof the fiscal period of the subsidiary in question. Income andexpense accounts are translated into Japanese yen according to
the average rate during the period, and translation differences areincluded in the foreign currency translation adjustment and noncontrolling interest of the net assets section of the consolidatedbalance sheet.
6. Major Hedge Accounts
Hedge Accounting
Accounting for hedges using the deferred treatment method.
However, special treatment is applied for interest rate swaps meeting certain special conditions.

3. Securities
Securities as of March 31, 2016.

2016Book value

Difference

¥585
585

¥ 930
930

¥345
345

119
119
¥704

109
109
¥1,040

(9)
(9)
¥335

2020

Classification

Cost

Securities with value on consolidated balance sheet greater than acquisition cost
Stock		 Subtotal
Securities with value on consolidated balance sheet not exceeding acquisition cost
Stock		 Subtotal
		 Total

Notes: 1. The market value for unlisted stocks, ¥565 million, on the consolidated balance sheets is extremely difficult to discern. Accordingly, such is not included in the table above.
2. “Cost” in the table above reflects book value after recording impairment losses.

4. Long-Term Loans Payable
Amounts payable for fiscal years ending March 31.
Millions of yen

Hedge Methods and Transactions
Hedge method: Interest rate swap transaction
Hedge transactions: Interest rates on borrowings

Long-term loans payable

Hedge Policy
Company policy is not to enter into speculative transactions.
Derivatives are used to reduce the risk of interest rate fluctuations
on debt, according to Company management rules.

5. Tax-Effect Accounting

Evaluation of Hedge Effectiveness
Effectiveness is assessed by confirming whether there is a highcorrelation among the rate fluctuation of the hedged transaction,
cash flows, and the hedge method in question.
7. Amortization of Goodwill and Negative Goodwill
Goodwill is amortized using the straight-line method over periods,
up to 10 years, in which said goodwill is considered to provide
benefits.
8. Scope of Cash included in the Consolidated Statement of
Cash Flows“Cash” stated in the consolidated statement of cash flows includes
cash on hand, demand deposits, and other short-term investmentsthat are highly liquid, easily convertible to cash, redeemable within
three months of acquisition, and not subject to material risk offluctuation in value.
9. Accounting for Consumption Taxes
Accounting for consumption taxes using the tax-exclusion method.

2016

2017

2018

2019

¥4,961¥3,845¥2,811¥1,449¥310

Millions of yen

2016
Deferred tax assets
Provision for bonuses
Allowance for doubtful accounts
Depreciation
Accrued enterprise taxes and accrued business office taxes
Net defined benefit liability
Provision for directors’ retirement benefits
Provision for corporate officers’ retirement benefits
Loss on valuation of stocks of affiliates
Loss on valuation of investment securities
Loss on valuation of golf club memberships
Loss carryforward
Valuation differences on assets received in merger
Other
Subtotal
Less: valuation allowances
Total deferred tax assets

¥ 406
107
23
116
172
41
9
36
39
20
574
5
574
2,128
(574)
¥1,553

Deferred tax liabilities
PPE, Insufficient accelerated depreciation
Unrealized gains (losses) on marketable securities, net
Valuation differences on assets received in merger
Other
Total deferred tax liabilities

¥ 698
86
77
256
¥1,118Net deferred tax assets

15

Millions of yen

¥ 435

16

JSP Annual Review 2016

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS%

2016
Reconciliation of difference between statutory tax rate and effective income tax rate
Normal effective statutory tax rate
(Adjustments)
Entertainment and other non-deductible expenses
Dividends and other non-taxable income
Per-capita taxation
Special deduction for R&D
Gain in equity in affiliates
Difference in tax rate on income of consolidated subsidiaries
Income taxes for prior periods
Valuation allowances
Other
Actual effective income tax rate

Millions of yen

33.1
1.1
(0.1)
0.4
(1.3)
(4.1)
0.0
0.4
2.3
(0.7)
31.1

Net defined benefit liability at beginning of term
Retirement benefits expense
Retirement benefits paid
Net defined benefit liability at end of term

Some domestic consolidated subsidiaries use the simplified
method to calculate the net defined benefit liability and retirement
benefit obligation.
Some overseas consolidated subsidiaries use a lump-sum
retirement benefit system or defined contribution plan for
employee retirement benefits.

2. Defined Benefit Plan
(1) Changes to balance of retirement benefit obligation at beginning and end of term
Millions of yen

Retirement benefit obligation at beginning of term
Cumulative effects of changes in accounting policies
Restated balance, beginning of period
Service costs
Interest expense
Actuarial differences
Retirement benefits paid
Other
Retirement benefit obligation at end of term

¥8,019
—
8,019
507
89
(168)
(430)
(25)
¥7,992Millions of yen

Funded system retirement benefit obligation
Pension assets

Note: Includes application of simplified accounting method.

(5) Retirement benefit expenses and breakdown of amounts
Millions of yen

Service costs
Interest expense
Anticipated profits
Appropriated expenses for actuarial differences
Appropriated expenses for past service costs
Retirement benefit expenses using the simplified method
Retirement benefit expenses related to the defined benefit system

¥507
89
(95)
61
24
81
¥668

Note:	In addition to the above, costs incurred during the consolidated fiscal year under review associated with the closure of factories of overseas consolidated subsidiaries are recorded under extraordinary losses as “restructuring charges” of¥307 million as provision for special retirement benefits and ¥62 million for special retirement benefits.

(6) Adjustments for retirement benefit
Millions of yen

Past service costs
Actuarial differences
Total

Millions of yen

17¥ 7,992(7,845)
146
403
549
549
—
¥ 549

¥ 24
(229)
¥(204)(7) Remeasurements of defined benefit plans
Breakdown of items recorded under changes related to remeasurements of defined benefit plans (Before deduction of taxes)(2) Changes to balance of pension assets at beginning and end of term

Pension assets at beginning of term
Anticipated profits
Actuarial differences
Employer contributions
Retirement benefits paid
Other
Pension assets at end of term

¥364
81
(42)
¥403

(4) Changes to balance of retirement benefit obligation and pension assets at end of term and net defined benefit liability and assets
as recorded on the consolidated balance sheet

Non-funded system retirement benefit obligation
Net liabilities and assets as recorded on the consolidated balance sheet
Net defined benefit liability
Net defined benefit assets
Net liabilities and assets as recorded on the consolidated balance sheet

6. Employee Retirement Benefits
1. Overview of Retirement Plan
The Company and its domestic consolidated companies provide
a defined benefit corporate pension plan and a lump-sum retirement benefit system based on regulations for retirement allowance for employees. In certain circumstances, employees may also
be granted severance pay when leaving the company.

(3) Changes to balance of net defined benefit liability at beginning and end of term due to application of the simplified
accounting method¥8,166
95
(453)
485
(430)
(17)
¥7,845

Millions of yen

Unrecognized past service costs
Unrecognized actuarial differences
Total¥ (14)
231
¥216

18

JSP Annual Review 2016

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS(8) Items related to pension assets
1. Breakdown of main items
Allocation of main pension asset items comprising the total is as follows:%

EquityBonds
General accounts
Cash and deposit
Other
Total

54
31
7
4
4
100

As stated in the “Change in accounting policy that is difficult
to distinguish from change in accounting estimates,” beginningin the fiscal year under review, the Company and its domestic
consolidated subsidiaries changed the depreciation accounting
method for property, plant and equipment from primarily the former declining-balance method or primarily the declining-balancemethod to the straight-line method.

The effect of this change compared to the previously used
calculation method was to increase the segment profits in the consolidated fiscal year under review by ¥487 million for the extrusionbusiness, ¥292 million for the beads business, and ¥300 million forthe other business. The resulting adjusted amount represented a¥14 million increase.

3. Sales and Income (Loss) by Reporting Segment
Millions of yen

2. Method for determining the expected long-term investment return

Reporting Segments

In determining the expected long-term investment return, conservative estimates are made of the assumed interest rate for the corporate
pension, the current and expected distributions of pension assets, and the current and expected long-term return rate from the various
assets that compose the pension assets.
(9) Items related to actuarial calculations
Main components used in actuarial calculations (weighted average)%

Discount rate
Expected long-term investment return rate 1.0%

Primarily 1.163
Primarily 1.163

Year ended March 31, 2015
Sales
External customers
Intersegment sales/transfers
Total sales
Segment income (loss)

Extrusion

Bead

Subtotal

Other(Note 1)

¥39,915842¥40,757¥ 1,348¥70,340
368¥70,709¥ 4,854¥110,255
1,210¥111,466¥ 6,203¥6,667220¥6,888¥ 59

Total¥116,923
1,431¥118,354¥ 6,262

Adjustment(Note 2)—¥(1,431)¥(1,431)¥ (595)

Consolidated(Note 3)¥116,923—¥116,923¥ 5,667

Notes: 1. “Other” represents a classification for a business segment not included in reporting segments. This segment includes the manufacture and sale of general packaging products.
2. The ¥595 million of adjustment under segment loss consists of ¥596 million in companywide expenses not allocated to each reporting segment and ¥1 million in intersegment eliminations. The majority of these expenses are costs forresearch and development not attributable to either reporting segment.
3. Segment income is reconciled with operating income on the consolidated statements of income.

Millions of yen

3. Defined Contribution System
Amounts contributed to the defined contribution plans of certain
consolidated subsidiaries were ¥194 million in the previous
consolidated fiscal year and ¥229 million in the consolidated fiscal
year under review.

Reporting Segments(Stock and option)
Nothing is applicable.

19

Extrusion

Bead

Subtotal

Other(Note 1)

¥38,289831¥39,121¥ 2,755¥70,865359¥71,225¥ 7,436¥109,155
1,191¥110,346¥ 10,192¥5,749223¥5,973¥ 17

Total¥114,904
1,415¥116,319¥ 10,210

Adjustment(Note 2)—¥(1,415)¥(1,415)¥ (931)

Consolidated(Note 3)

¥114,904—¥114,904¥ 9,278

Notes: 1. “Other” represents a classification for a business segment not included in reporting segments. This segment includes the manufacture and sale of general packaging products.
2. The ¥931 million of adjustment under segment loss consists of ¥928 million in companywide expenses not allocated to each reporting segment and ¥2 million in intersegment eliminations. The majority of these expenses are costs forresearch and development not attributable to either reporting segment.
3. Segment income is reconciled with operating income on the consolidated statements of income.

7. Segment Information
1. Reporting Segments
Reporting segments are those segments comprising the Company
group for which separate financial information can be obtained.
The Company’s board of directors periodically reviews these segments to determine the allocation of Company resources and toassess performance.
The Company has adopted a business division structure. Eachbusiness division is responsible for comprehensive strategy related
to domestic and international products handled therein, as well as
for their business activities.
Accordingly, the business divisions are comprised of the basic
products making up that segment, and have been classified into
the Extrusion Business and Bead Business reporting segments.
Extrusion foaming technology is the core of the Extrusion
Business, which manufactures and sells polystyrene, polyethylene,
and polypropylene sheets and boards. Bead foaming technology
is the basis of the Bead Business, which manufactures and sells
foamed polypropylene, foamed polyethylene, and foamed polystyrene products, etc.

Year ended March 31, 2016
Sales
External customers
Intersegment sales/transfers
Total sales
Segment income (loss)

2. Calculation of Net Sales, Profit or Loss, Assets, and Other
Items for Reporting Segments
The accounting methods used for the presentation of thereporting business segments follow the provisions of the “Basisfor Preparation of the Consolidated Financial Statements.”
Intersegment sales are based on transaction prices withthird parties.
Beginning in the consolidated fiscal year under review,
the Company has changed the profit or loss calculation
method, mainly following a review of the allocation of common expenses, with the intention of enabling more appropriate
evaluation management of the business results of each reporting segment.
The effect of this change, compared to the previously used
calculation method was to increase the profit of the reporting segments in the consolidated fiscal year under review by
increased ¥197 million for the extrusion business and ¥116
million for the beads business. The resulting adjusted amountrepresented a ¥313 million decrease.

20

JSP Annual Review 2016

Global Network

Corporate Data

(As of March 31, 2016)(As of March 31, 2016)

JSP Corporation

North America
U.S.A.

Japan

MexicoSouth America
BrazilEuropeAsia

FranceSouth Korea

Czech Republic

TaiwanSingapore

President, Representative Director

Kozo Tsukamoto

FoundedJanuary 1962

Paid-In Capital¥10,128.610 million

Number of Shareholders

12,906

Stock Exchange Listing

Tokyo (First Section: 7942)

Fiscal Year-End

March 31

Investor Relations Contact

Public and Investor Relations Department
Tel: +81-3-6212-6302

URL

www.jsp.com

Shareholders

Shares held
(thousands)

Voting right ratio(%)- Hokkaido

Mitsubishi Gas Chemical Company, Inc.

16,02051.00- KanumaJapan Trustee Services Bank, Ltd.

2,465

7.85

- Kashima

JSP Corporation

1,601

5.10

- Yokkaichi

J.P. MORGAN BANK LUXEMBOURG S.A. 380578

1,217

3.88

- Kansai

JSP Client Stock Ownership Plan

1,015

3.23

- Kyushu

JP MORGAN CHASE BANK 385166

512

1.63

- Kitakyushu

The Master Trust Bank of Japan, Ltd.

432

1.38

JSP Employee Stock Ownership Plan

337

1.08

BBH FOR BBHTSIA NOMURA FUNDS IRELAND PLC/JAPANSTRATEGIC VALUE FUND

275

0.88

Trust & Custody Services Bank, Ltd.

263

0.84

Japan
- Tokyo Head Office21

Shin Nisseki Bldg., 4-2, 3-chome Marunouchi, Chiyoda-ku,
Tokyo 100-0005, Japan

Major Shareholders

Thailand
China

Head Office22

In so many ways, and in so many places,
JSP protects the things andthe people that are
most important
to you.

jsp.com

Printed in Japan