ANNUAL REVIEW 2018
For the Year Ended March 31, 2018

The way of mutual progress

Yushiro Chemical Industry Co., Ltd. has contributed to theprogress and material development of Japan by supplying quality
oil-fat-wax (yu-shi-ro) products. We have succeeded in developing
and offering to virtually all industrial markets such auxiliary
products as metalworking oils and fluids, polishing agents forbuilding maintenance. To respond to the needs of the industry,
every technology we have acquired will be fed back to our R&D
process for the creation of newer technologies and products basedon our corporate ideal of “the way of mutual progress.”

PRESIDENT’S MESSAGE

Eiichi Ogo
PRESIDENT

Business summary

M e d i u m a n d L o n g - Te r m P l a n

During this consolidated financial year, the global economy continued to
expand, mainly in the United States and the Eurozone, and despite a minor
economic slowdown in China, the economy overall experienced a moderate
recovery that is expected to be maintained going forward. Japan’s economy,
although experiencing a slight pause, demonstrated the same moderate
recovery as the global economy against a backdrop of the income situation
and robust employment.

The Yushiro Group has formulated a Medium-term Plan covering the three
years from the fiscal year ending March 31, 2018 to the fiscal year ending
March 31, 2020 with the objective of becoming a company that continues toexist beyond its 100th year of founding.

Under these circumstances, net sales increased 6.6% from the previous fiscal
year to ¥31,565 million. Additionally, operating income rose 2.7% over theprevious fiscal year to ¥2,502 million. Ordinary income increased 7.5% to¥3,243 million, and net income rose 31.3% from the previous fiscal year to¥2,228 million, partly due to the reserve for dissolution of employees’
pension fund booked in the previous fiscal year.

Business segment(

Previous Fiscal Year
April 1, 2016 throughMarch 31, 2017

) (Current Fiscal Year
April 1, 2017 throughMarch 31, 2018)

Increase/
Decrease

Million yen%

Million yen

%

%

Japan

15,99354.0

16,868

53.4

105.5

North and South America

5,273

17.8

5,710

18.1

108.3

China

4,273

14.5

4,488

14.2

105.0

Southeast Asia / India

4,065

13.7

4,498

14.3

110.7

Total

29,605100.0

31,565

100.0

106.6

1. Business Environment and the Group’s Response
The domestic market for the automobile industry to which our main
customers belong, remains peaked out due to the aging population,
young people turning away from automobiles, and the continuing
offshore relocation of production site to overseas. Meanwhile, theoverseas market is in an expansionary trend, and the Group has worked
to strengthen and expand its business through initiatives such as startingup plants in India and Mexico in the fiscal year ended March 31, 2015,
which was the first year of our 17th Medium-term Plan, as well as
adding Japan Cee-Bee Chemical Co., Ltd. to its group companies in
2015, the second year of the Plan.
Under the 18th Medium-term Plan, we will continue to actively invest
management resources in regions with expanding markets and strive toreinforce the overall strengths of the Group by strengthening our global
sales and technological capabilities and making strategic investments inorder to achieve sustainable growth.
2. Basic Policy
1) Strengthen our global sales capabilities

1

We will strengthen our sales capabilities by reinforcing personnel inorder to respond to expanding overseas markets and by building sales
networks at domestic and overseas bases in order to accelerate businessexpansion.

2) Strengthen competitiveness in our core business

2) Domestic business strategy

We will further strengthen our technological proposal capabilities in themetal processing sector and work to increase both customer satisfaction
and added value in order to expand profitable business. Additionally, we
will reinforce our business through strategic investment.

• Reinforce sales channels• Expand sales in the plasticity fluids and casting fluids business•	Establish global production lines aimed at strengthening costcompetitiveness3) Establish a structure that maximizes synergy among Group companies
We will create a structure that maximizes synergy among Group
companies by utilizing the information held by the Group to improve
management efficiency and accelerate management decision-making.

•	Promote collaboration with manufacturers of tools and machinery,
and joint research with universities
3) Strategic investment•	Undertake business reinforcement and expansion through alliancesand M&As mainly in Japan and North America

3. Basic Strategies
1) Overseas business strategy•	Reinforce sales capabilities by increasing sales staff and upgrading
our dealership and agency networks•	Improve business efficiency by actively utilizing information among
companies, including domestic companies•	Expand sales bases mainly in the United States, China and Southeast
Asia4) New business strategy• Commercialize self-healing polymer

Basic policy for profit distribution
The Company’s basic policy for profit distribution is to provide shareholder
returns in consideration of our global business expansion and consolidated
business results. Shareholder returns are determined upon consideration of
the capital investments that are required to improve corporate value.

Yen in millions
Fiscal Years ended March 31,

Net sales
Operating income

U.S. dollars in thousands

2018¥31,565

¥

2,502

2017

2018

29,605$297,115

2,437

23,554

Net income

2,228

1,697

20,976

Total assets

43,86940,560412,926

Net assets

32,19729,318303,063

Per Share Amounts
Net income per share
Cash dividends per share
Net assets per share

Yen

U.S. dollars

124.37$1.54

45.00

40.00

0.42

2,231.91

2,028.73

21.00¥164.13¥Notes : 1. U.S. dollar amounts, converted at the rate of ¥106.24 to US$1.00, are for convenience only.
2. Net income per share is based on the average number of shares outstanding at the end of each fiscal year.
3. Japanese yen amounts of less than one million have been excluded.

2

REVIEW OF OPERATIONSThe Yushiro Group consists of Yushiro Chemical Industry Co.,
Ltd., three domestic subsidiaries, twelve overseas subsidiaries
and three affiliates, and its major businesses are the production
and sales of metalworking oils and fluids, chemicals for building
maintenance. We are going to expand our business in growing
areas globally as well as a domestic market continuously.

Review of Operations by Region
1. JapanAs the result of sales expansion efforts in view of the increase in domestic automobile
production from the previous fiscal year, segment net sales in Japan grew 5.5% overthe previous fiscal year to ¥16,868 million. Segment income (operating income) rose
23.6% over the previous fiscal year to ¥931 million due to increased sales.
2. North and South America
Although net sales at the subsidiary in the United States remained unchanged fromthe previous fiscal year due to a slump in sales of passenger vehicles, net sales by thesubsidiary in Mexico, which has maintained a positive turnaround since the previous
fiscal year, increased steadily, and the subsidiary in Brazil, which had posted a deficit
for two consecutive fiscal years due to the worsening domestic economy, also showeda profit in light of domestic economic recovery. As a result, net sales in the region rose
8.3% over the previous fiscal year to ¥5,710 million. Segment income grew 12.5%
over the previous fiscal year to ¥535 million.

Yushiro Mexico S.A. de C.V.
Av. Mina de Guadalupe 478 Parque Industrial Santa Fe Ⅳ
Guanajuato Puetro Interior, CP 36275
Silao, Guanajuato, Mexico
Phone: (52)472-748-9208
URL: http://yumex.mx/
Shanghai Yushiro Chemical Industry Co., Ltd.
881 Fulian Road, Guncun Industrial Park,
Baoshan District, Shanghai, China
Phone: (86)21-3604-1188 Fax: (86)21-3604-0916
URL: http://www.yushiro.com.cn/

3. China
Net sales in China grew 5.0% over the previous fiscal year to ¥4,488 million, partly
due to an increase in the volume of automobile production and a growing market
share by Japanese manufacturers. Segment income fell 29.1% to ¥497 million due toan upsurge in expenses for personnel and raw materials.

Qidong Yushiro Chemical Industry Co., Ltd.
The North of New Qidong Port,
Qidong City, Jiangsu Province, China
Phone: (86)513-8369-9942 Fax: (86)513-8369-9943
URL: http://www.yushiro.com.cn/

4. Southeast Asia/India
Segment net sales rose 10.7% over the previous fiscal year to ¥4,498 million, driven
by expanded sales and robust automobile production in countries other than
Malaysia. Segment income rose 5.7% from the previous fiscal year to ¥527 million asa result of the subsidiary in India, which achieved a profit for the first time since its
establishment in 2008.

Taixing Cee-Bee Chemical Co., Ltd.
No.8, Bin Jiang S.Road, Taixing Economic Development
Zone, Taixing of Jiangsu Province, China
Phone: (86)0523-87607898 Fax: (86)0523-87607897

Subsidiaries and Associated Companies
Domestic Subsidiaries
Yushiro Unso Co., Ltd.
1157-2 aza-Yubunepara, Yubune, Oyama-cho,Sunto-gun, Shizuoka JAPAN
Phone: (0550)86-1112 Fax: (0550)76-1034
Yushiro General Service Company
1157-2 aza-Yubunepara, Yubune, Oyama-cho,Sunto-gun, Shizuoka JAPAN
Phone: (0550)86-1113 Fax: (0550)76-1034
The Japan Cee-Bee Chemical Co., Ltd.
Omori Plaza Bldg.4F, 3-28-3 Minamioi, Shinagawa-ku, Tokyo JAPAN
Phone: (03)5767-6431 Fax: (03)5767-6437
URL: http://www.jcbchem.co.jp/

Overseas Subsidiaries
Yushiro Manufacturing America Inc.
783 West Mausoleum Road, P.O. Box 217
Shelbyville, Indiana 46176-9720 U.S.A.
Phone: (1) 317-398-9862 Fax: (1) 317-392-4818
URL: http://www.yushirousa.com/

3

Yushiro do Brasil Indústria Química Ltda.
Av. Henry Néstle, 3100 Caçapava, CEP. 12286-140,
São Paulo, Brazil
Phone: (55) 12-3654-8100 Fax: (55) 12-3654-8101
URL: http://www.yushiro.com.br/

Yushiro Malaysia Sdn. Bhd.
7, Jalan TPP 3, Taman Perindustrian Putra, 47130 Puchong,Selangor Darul Ehsan, Malaysia
Phone: (60) 3-8069-9390 Fax: (60) 3-8051-3946
URL: http://www.yushiro.com.my/
Yushiro (Thailand) Co., Ltd.
700/533 Moo7, Amata Nakorn Industrial Estate, T. Don HuaRoh, A. Muang Chonburi, Chonburi 20000, Thailand
Phone: (66)3845-4873 Fax: (66)3845-4879
Siam Cee-Bee Chemical Co., Ltd.
700/936, Moo 5, Amatanakorn Industrial Estate,
T.Nongkhaka, A.Phanthong, Chonburi 20160 THAILAND
Phone: (66)038-210-772 Fax: (66)038-210-776
Yushiro India Company Private Limited
608. J. M. D. Pacific Square Sector-15, Part-Ⅱ,
Gurgaon 122002, Haryana, India
Phone: (91)124-424-1650 Fax: (91)124-424-1652
PT. Yushiro Indonesia
JI. Maligi 1, Blok B-2B, Kawasan Industri KIIC,
Karawang 41361-Java Barat, Indonesia
Phone: (62)21-8911-4271 Fax: (62)26-7845-7934
URL: http://www.yushiro.co.id/
Overseas Associated Companies
Buhmwoo Chemical Ind. Co., Ltd. & Buhmwoo Co., Ltd.
70-3, Yangjae-Dong, Seocho-gu, Seoul, Korea
Phone: (82) 2-571-6321 Fax: (82) 2-571-6329
URL: http://www.buhmwoo.com/
San-I Chemical Co., Ltd.
7th Fl. No.48 Ming Chuang W. Rd., Taipei, Taiwan R.O.C.
Phone: (886)2-2522-1313 Fax: (886)2-2522-1363
URL: http://www.san-i.com.tw/Business on metalworking oils and fluids
What is "metalworking oils and fluids"• Fluids used for processing steel and other metals into specific shapes.
• Important areas of fluid performance include lubricity, cooling ability, etc.
• Mainly used in the automotive, precision processing and semiconductor
processing industries.
Products• Cutting and Grinding Oils and Fluids• Aluminum Diecasting Lubricants• Cutting Oils and Fluids for Advanced-Material• Cleaners• Rust Preventives• Rolling Oils and Fluids• Drawing Oils and Fluids• Forming Oils and Fluids• Quenching Agents• Fire Resistant Hydraulic Lubricants• Other Oils and Fluids
Customers• Automobile companies• Precision machine processing companies• Steel companies• Electric equipment companies• Other machine processing companies

4

5

6

3

2

Automobile
67.1%

1

1. Automobile manufacturer andAutomobile related: 67.1%
2. Precision machinery: 14.3%
3. Ball bearing manufacturer: 6.7%
4. Steel industry: 3.4%
5. Photo Voltaic/semiconductor: 2.0%
6. Other: 6.5%
Shares of sales by customers for the fiscal year
ended March 2018. (non-consolidated)

The Company’s advantages in the field of Cutting
and Grinding Oils and Fluids• Our overwhelming share in the automobile industry; morethan 60%
The Company features its production development capacities
and quick response to changes in the automobile industry
including rationalization, changes in materials and measures
to address environmental issues.
• Our wide human network interacts with users in different
industries at “The Society of Cutting Fluids & Cutting
Technology”
About the Society of Cutting Fluids & Cutting Technology
The society was launched in 1954 as an on-site research group made up of
metal processing technology researchers, and has served as an officebridging academy and industry for more than 60 years.
Engineers with abundant on-site experience, beginning with those from
our automotive manufacturing customers, as well as those from machine
manufactures, tooling manufactures, etc., gather to exchange information
and work together to develop higher technologies and further nurture
their expertise. This group has served as a “training room” for theseexperts throughout the history of the industry. It is therefore no
exaggeration to say that this group is a national asset supporting productdevelopment, or monozukuri.

Note: Metalworking oils and fluids business: Metalworking oils and fluids are
manufactured and sold by Yushiro Chemical Industry Co., Ltd.
In overseas markets, metalworking oils and fluids are manufactured and sold by
the Company’s subsidiaries;
Yushiro Manufacturing America Inc., in the United States;
Yushiro do Brasil Ind. Quimica Ltda., in Brazil;
Yushiro Mexico S.A. de C.V. in Mexico;
Shanghai Yushiro Chemical Industry Co., Ltd., Qidong Yushiro Chemical
Industry Co., Ltd., and Guangzhou Yushiro Oil & Fluids Co., Ltd., in China;
Yushiro Malaysia Sdn. Bhd., in Malaysia;
Yushiro (Thailand) Co., Ltd., in Thailand;
Yushiro India Company Private Limited, in India;
P.T.Yushiro Indonesia in Indonesia;
and our affiliates;
Buhmwoo Chemical Industry Co., Ltd., and Buhmwoo Co., Ltd., in South Korea;
San-I Chemical Co., Ltd., in Taiwan.

4

CONSOLIDATED BALANCE SHEETS(Unaudited)
As of March 31, 2018 and 2017

U.S. dollars
in thousands(Note 5)

Millions of yen

Assets

2018

2017

2018

Current assets:
Cash and time deposits¥8,439¥8,177$79,437

Notes and accounts receivable–trade

6,598

6,021

62,113Inventories

3,692

3,220

34,757

Deferred tax assets

190

198

1,795

Other current assets

247

315

2,327

Allowance for doubtful accounts

(20)

(20)

(194)

19,14817,913

180,236

Buildings and structures

4,761

3,867

44,819Machinery, equipment and vehicle

1,256

1,131

11,828

318

238

2,994

5,111

5,106

48,108

Total current assets
Fixed assets:

Tools, furnitures and fixtures
Land
Lease assets

15

15

148

Construction in progress

42

862

396

11,505

11,222

108,296

707

551

6,660

Investment in securities

4,989

4,175

46,968Investments in subsidiaries and affiliates

6,452

5,561

60,7361

2

14

Savings premium

622

578

5,860

Long-term time deposits

165

338

1,558

1

2

14

295

233

2,776

(Total property, plant and equipment)(Total intangible fixed assets)Long-term loans receivable

Deferred tax assets
Other assets
Allowance for doubtful accounts(Total investments and other assets)
Total fixed assets
Total assets

5

(20)

(19)

(196)

12,507

10,872

117,731

24,72022,646

232,689¥43,869¥40,560$412,926

U.S. dollars
in thousands(Note 5)

Millions of yen

Liabilities and net assets
Current liabilities:
Notes and accounts payable–trade
Short–term borrowings
Accounts payable-otherAccrued corporate taxes
Accrued bonuses
Other current liabilities
Total current liabilities
Long-term liabilities:
Long-term debt
Net defined benefit liability
Accrued retirement allowances for directors
Reserve for loss on dissolution of employees pension fundDeferred tax liabilities
Other long-term liabilities
Total long-term liabilities
Total liabilities
Net assets:
Common stock
Capital surplus
Retained earnings
Treasury stock
Shareholders' equity
Net unrealized gains on securities
Currency translation adjustments
Remeasurements of defined benefit plans
Accumulated other comprehensive income(Total minority interests)
Total net assets
Total liabilities and net assets

2018

2017

2018

¥3,767
1,717
816
291
506
1,232
8,332

¥3,464
1,703
830
374
505
965
7,843

$35,464
16,168
7,682
2,740
4,771
11,59878,426

511
1,247
98
275
900
307
3,339
11,671

660
1,293
151
294
667
329
3,397
11,241

4,813
11,738
927
2,591
8,473
2,891
31,436
109,862

4,249
4,046
22,229(426)
30,0982,146(1,915)
(25)
205
1,893
32,197¥43,869

4,249
4,046
20,544(426)
28,413
1,594(2,417)
(44)
(867)
1,772
29,318¥40,560

39,99738,083
209,241(4,016)283,306
20,205(18,034)
(240)
1,931
17,825303,063$412,926

6

CONSOLIDATED STATEMENTS OF INCOME(Unaudited)
For the Years Ended March 31, 2018 and 2017

U.S. dollars
in thousands(Note 5)

Millions of yen

2018

2017

2018

¥ 31,565¥ 29,605$ 297,115

Cost of sales

21,473

19,939202,120Gross profit

10,092

9,666

94,994

7,589

7,229

71,439

2,502

2,437

23,554

Interest and dividend income

158

177

1,491

Equity in earnings of associated companies

593

495

5,586

Other income

103

91

974

Interest expenses

39

27

376

Other expenses

74

156

700

Ordinary income

3,243

3,017

30,530Gain from sale of fixed assets

–

254

–

Gain on sales of investment securities

–

78

–

Loss on disposal of fixed assets

10

33

103

Impairment loss

–

126

–

Net sales

Selling, general and administrative expenses
Operating income

–

294

–

3,232

2,895

30,427

732

757

6,891

Provision of reserve for loss on dissolution of employees pension fund
Income before income taxes
Corporate, local income enterprise taxes

(8)

(18)

(78)

723

738

6,812

Income before minority interests

2,508

2,157

23,614

Minority interests

(280)

(459)

(2,637)1,697$ 20,976

Deferred taxes
Total income taxes

Net income

¥

2,228

¥

CONSOLIDATED STATEMENTS OF CASH FLOWS(Unaudited)
For the Years Ended March 31, 2018 and 2017

U.S. dollars
in thousands(Note 5)

Millions of yen

2018

Cash flows from operating activities:¥

Effect of exchange rate changes on cash and cash equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of year
Increase in cash and cash equivalents from newly consolidated subsidiary and other

7

2017

¥

(1,241)
(975)
53
48
8,034
–

Cash flows from investing activities:
Cash flows from financing activities:

Cash and cash equivalents at end of year

2,211

¥

8,082

2018

2,800

$ 20,819(46)(1,496)
(259)
998
255

(11,688)(9,180)504
454
75,623–8,034$ 76,078

6,780
¥

IMPORTANT POINTS FORMING THE BASIS OFCONSOLIDATED FINANCIAL STATEMENTS
1. Scope of Consolidation
The scope of consolidation includes 15 consolidated subsidiaries: Yushiro
Unso Co., Ltd., Yushiro General Service Co., Ltd., Japan Cee-Bee ChemicalCo., Ltd., Yushiro Manufacturing America Inc., Yushiro do Brasil Indústria
Química Ltda., Yushiro Mexico S.A. de C.V., Shanghai Yushiro Chemical
Industry Co., Ltd., Qidong Yushiro Chemical Industry Co., Ltd.,Guangzhou Yushiro Oil & Fluids Co., Ltd., Taixing Cee-Bee Chemical Co.,
Ltd., Yushiro Malaysia Sdn. Bhd., Yushiro (Thailand) Co., Ltd., Siam CeeBee Chemical Co., Ltd., Yushiro India Company Private Limited., and P.T.
Yushiro Indonesia.
2. Application of the Equity Method
The three affiliates, Buhmwoo Chemical Industry Co., Ltd., Buhmwoo Co.,
Ltd., and San-I Chemical Co., Ltd. are included in the scope of application
for the equity method.
3. Fiscal Years of the Consolidated Subsidiaries
The fiscal year-end of the overseas subsidiaries, with the exception of Yushiro
India Company Private Limited, is December 31. In preparing theconsolidated financial statements, results as of that date are used, provided
that necessary adjustments are made regarding material transactions
conducted between January 1 and March 31, the consolidation closing date.
4. Significant Accounting Policies(1) Valuation standard and methods for securities
In other securities, quoted securities are stated at market value at the
fiscal year-end. Unrealized gains/losses are included in net assets, andthe cost of securities sold is computed using the moving averagemethod.
Unquoted securities are accounted for on a cost basis using the moving
average method.
(2) Valuation standard and methods for inventories
The cost method by the aggregate monthly average method is adopted(i.e. the book value reduction method based on declines in profitability.
However, the last purchase price method is used for fuel out of
supplies.)(3) Depreciation method used for major depreciable assets
1. Tangible fixed assets (excluding leased assets)
The Company and its consolidated domestic subsidiaries use thedeclining-balance method (however, the straight-line method isadopted for the laboratory wing at the Kanagawa Technical Center,on which construction was completed in 1997, for buildings
acquired on or after April 1, 1998 (with the exception of annexedfacilities), and for annexed facilities and structures acquired on orafter April 1, 2016). Overseas consolidated subsidiaries generally use
the straight-line method. The main terms of useful service life are 3
to 50 years for buildings and structures and 2 to 20 years for othertangible fixed assets.
2. Intangible fixed assets (excluding leased assets)
The amortization of intangible fixed assets is conducted by thestraight-line method. Computer software for internal use isamortized by the straight-line method over the estimated useful life
(5 years).
3. Leased assets
Assets leased under finance lease transactions without a transfer ofownership
The straight-line method in which the lease term is deemed as theuseful life, with a zero residual value, is used.
4. Long-term prepaid expenses
The straight-line method is adopted.
(4) Standards for conversion of foreign currency denominated assets andliabilities to Japanese yen
Debts and credits denominated in foreign currencies are converted toyen at the actual market exchange rate on the closing date. The effect of
exchange rate changes is recorded as gain or loss. Assets and liabilities ofoverseas subsidiaries, etc. are converted to yen at the actual market
exchange rate on the consolidated closing date. Profit and expenses areconverted to yen at the average market rate during the period, and theeffect of exchange rate changes is included under currency translation
adjustments and total minority interests in net assets.
(5) Reserves
1. Allowance for doubtful accounts
The allowance for doubtful accounts is provided for possible bad
debts at the amount estimated based on the past debt experience fornormal receivables, plus uncollectible amounts determined byreference to the collectability of individual doubtful receivables.
2. Accrued bonuses
The accrued bonuses are provided at an estimated amount in order torecognize expenses for bonuses paid to employees over thecorresponding period.
3. Reserve for directors’ bonuses
At our subsidiaries Japan Cee-Bee Chemical Co., Ltd., Shanghai
Yushiro Chemical Industry Co., Ltd., and Qidong Yushiro Chemical
Industry Co., Ltd., the reserve for bonuses to directors is provided at
the amount estimated to be accrued for the consolidated balance
sheet date to prepare for such payments.
4. Accrued retirement allowances for directors
In order to prepare the reserve for retirement allowances for directors,
the Company and its subsidiaries Yushiro Unso., Ltd. and Yushiro
General Service Co., Ltd. recognized the retirement allowances for
directors at the estimated amount on the consolidated balance sheet
date based on the internal regulations.
5. Reserve for loss on dissolution of employees’ pension fund
In order to prepare for the loss occurring in connection with thedissolution of the employees’ pension fund, the estimated amount of
said obligation is provided.
(6) Accounting treatment for employees’ retirement benefits
Method of attributing expected retirement benefits to periods
In calculating retirement benefit obligations, the benefit formula
method is the method used for attributing expected retirement benefits
to periods up to the end of the consolidated fiscal year under review.
Treatment of actuarial difference and prior service cost
Prior service cost is posted as expenses on a straight-line basis over acertain period (10 years) within the remaining service years of
employees as of the time of occurrence.
For actuarial differences, the amount divided by a straight-line basis
over a certain period (10 years) within the remaining service years of
employees as of the time of accrual during each consolidated fiscal year
is posted as expenses from the consolidated fiscal year following the
fiscal year of occurrence.
Adoption of simplified method for small-scale enterprises
Certain consolidated subsidiaries adopt a simplified method for
calculating retirement benefit liabilities and retirement benefits whereby
the Company’s retirement benefit obligation is equal to the amount of
retirement benefits payable assuming that all employees are voluntarily
retired at the end of the fiscal year.
(7) Scope of funds contained within the consolidated statements of cashflows
The funds (cash and cash equivalents) included in the consolidated
statements of cash flows consist of cash on hand, deposits that can bewithdrawn at any time, and short-term investments with maturities
within three months from the acquisition date that can be easilyliquidated and are exposed to only a minimal value fluctuation risk.
(8) Other significant matters for the preparation of consolidated financial
statements
Accounting treatment of consumption tax, etc.
Consumption tax, etc. is recorded on a tax exclusive basis.
5. The U.S. dollar amounts in the financial statements for the
fiscal year ended March 31, 2018, represent translation ofJapanese yen at the rate of ¥106.24=US$1.00.

8

FINANCIAL INDICATORS
Operating Income (yen in million)

Net Sales (yen in million)
2018
2017

29,061

1,569

2015

26,833

2014

2,169

2016

30,680

2015

2,437

2017

29,605

2016

2,502

2018

31,565

1,409

2014

Total Assets, Net Assets (yen in million) , and ROE(%)

Net Income (yen in million)
2,228

2018

2018

1,697

2017

2017

1,993

2016

2016

1,703

2015

7.4

2015

1,495

2014

6.2

6.6

2014

6.6
Total assets

Net assets

43,86932,197

7.7

40,56029,31828,536

39,16829,01538,50634,85625,604ROE

CORPORATE DATA (as of March 31, 2018)34-16, 2-chome, Chidori, Ota-ku, Tokyo 146-8510, Japan
Phone: (03) 3750-6761 Fax: (03) 3750-1146 URL: https://www.yushiro.co.jp¥4,249 million
308
July 24, 1944
Tokyo, Nagoya and Osaka
Hokkaido, Tohoku, Kitakanto, Hamamatsu, Fukuyama, Hiroshima and Kyushu

Head Office
Capital
Employees
Established
Branch Offices
Sales Offices

Directors and Auditors (as of June 26, 2018)
Eiichi Ogo
Masanori Arisaka
Shingo Kikuchi

President
Managing Directors
Directors

Directors (Audit Committee Members)

Shinji Hamamoto

Takuya Ishikawa
Seiji Takahashi
Hisao Katayama

Katsuko Iizuka
Yutaka Yamaguchi
Miki Koshiba
Toshio Yamazaki

STOCK INFORMATION (as of March 31, 2018)
Number of shares issued
Trading unit
Total number of shareholders
Stock listing
Securities code
Transfer agent for common stock
Independent certified public accountants
Main underwriter

13,900,065
100
4,072
First section, Tokyo Stock Exchange
5013
Mitsubishi UFJ Trust and Banking Corporation
Ernst & Young ShinNihon LLC
Nomura Securities Co., Ltd.

(millionsof yen )Market value of shares

25,00020,00015,00010,0005,000
02012/3 2013/3 2014/3 2015/3 2016/3 2017/3 2018/3

Stock pricesTerm2017/42017/52017/62017/72017/82017/9

High

1,420

1,500

1,517

1,560

1,659

1,672

1,719

1,735

Low

1,325

1,396

1,451

1,438

1,499

1,498

1,636

Trading volume

2,038

2,485

3,959

3,624

4,245

5,271

4,088

(Yen/share)(Yen/share)(Hundred of shares)

2017/10 2017/11 2017/12

2018/1

2018/2

2018/3

1,718

1,780

1,941

1,890

1,568

1,602

1,703

1,611

1,650

4,138

4,126

3,480

6,654

4,037