CONSOLIDATED STATEMENTS OF CHANGES IN NET ASSETSFURUKAWA ELECTRIC CO., LTD. ANDITS SUBSIDIARIES(For the years ended March 31, 2014)Millions of yenShareholders' equityBalance at April 1, 2013Cash dividends paidNet incomeNet effect of increase in consolidatedsubsidiariesNet effect of decrease in affiliatesaccounted for by the equity methodAcquisition of treasury stockDisposal of treasury stockNet change during the yearBalance at March 31, 2014Commonstock\69,395-Capitalsurplus\21,468--\69,395\Retainedearnings76,125(2,119)
5,60921,468\\\Commontreasurystock(275)-(353)-(43)-TotalShareholders'equity\166,713(2,119)
5,609(353)
(43)
(2)

(2)79,219\(277)169,805\Millions of yenBalance at April 1, 2013Cash dividends paidNet incomeNet effect of increase in consolidatedsubsidiariesNet effect of decrease in affiliatesaccounted for by the equity methodAcquisition of treasury stockDisposal of treasury stockNet change during the yearBalance at March 31, 2014Deferred gainUnrealizedgain onon derivativesavailable-forunder hedgeaccountingsale securities\18,160\
419-\Accumulated other comprehensive incomeAdjustmentsAdjustmentForeignfor retirementfor retirementcurrencytranslationbenefits of an overseasbenefits(Note 10)subsidiaryadjustments\(4,206) \\(15,346)-Totalaccumulated othercomprehensiveincome\(973) \-Minorityinterests57,104-------------\(34,607)
22,497Foreigncurrencytranslationadjustments$(150,451)-Totalaccumulated othercomprehensiveincome$(9,539) $-Minorityinterests559,843-

93519,095(717)(298)\\4,206-(5,556)(5,556)\9,537(5,809)\8,4057,432\\Total netassets222,844(2,119)
5,609(353)\(43)(2)(26,202)
199,734Thousands of U.S. dollars (Note 3)Shareholders' equityCommonstockBalance at April 1, 2013Cash dividends paidNet incomeNet effect of increase in consolidatedsubsidiariesNet effect of decrease in affiliatesaccounted for by the equity methodAcquisition of treasury stockDisposal of treasury stockNet change during the year

$Balance at March 31, 2014

$680,343-Capitalcapital$210,470-CommontreasurystockRetainedearnings$746,324(20,775)
54,990-(2,696)

1,634,441(20,775)
54,990(3,461)$--(3,461)---(421)-680,343$210,470$TotalShareholders'equity$(421)(20)(20)-776,657(2,716)$$1,664,754Thousands of U.S. dollars (Note 3)Accumulated other comprehensive incomeBalance at April 1, 2013Cash dividends paidNet incomeNet effect of increase in consolidatedsubsidiariesNet effect of decrease in affiliatesaccounted for by the equity methodAcquisition of treasury stockDisposal of treasury stockNet change during the yearBalance at March 31, 2014Deferred gainUnrealizedgain onon derivativesavailable-forunder hedgesale securitiesaccounting$178,039$4,108--$9,167187,206$Adjustmentsfor retirementbenefits of an overseassubsidiary(41,235)$-Adjustmentfor retirementbenefits(Note 10)$------(7,029)(2,921)-(54,471)(54,471)-82,40272,863$-41,235See accompanying notes to consolidated financial statements.

6$$93,500(56,951)$$(339,284)
220,559$Total netassets2,184,745(20,775)
54,990(3,461)$(421)(20)(256,882)
1,958,176CONSOLIDATED STATEMENTS OF CHANGES IN NET ASSETSFURUKAWA ELECTRIC CO., LTD. ANDITS SUBSIDIARIES(For the years ended March 31, 2013)Millions of yenShareholders' equityBalance at April 1, 2012Net incomeNet effect of increase in consolidatedsubsidiariesNet effect of decrease in affiliatesaccounted for by the equity methodAcquisition of treasury stockDisposal of treasury stockNet change during the yearBalance at March 31, 2013Commonstock\69,395-\Capitalsurplus\21,468---69,395-\(0)21,468\Retainedearnings72,4823,577\\Commontreasurystock(274)-

106

-(40)

-TotalShareholders'equity\163,0713,577
106
(40)
(1)0

(1)076,125\(275)\166,713Millions of yenBalance at April 1, 2012Net incomeNet effect of increase in consolidatedsubsidiariesNet effect of decrease in affiliatesaccounted for by the equity methodAcquisition of treasury stockDisposal of treasury stockNet change during the yearBalance at March 31, 2013Accumulated other comprehensive incomeAdjustmentsDeferred gainUnrealizedForeignfor retirementon derivativescurrencygain onavailable-forunder hedgebenefits of an overseastranslationsubsidiaryadjustmentssale securities accounting\11,548 \590 \(4,057) \(26,457)-\---6,61218,160--\(171)
419\See accompanying notes to consolidated financial statements.

7Totalaccumulated othercomprehensiveincome\(18,376) \-Minorityinterests52,874----(149)(4,206)\11,111(15,346)\17,403(973)\4,23057,104\Total netassets197,5693,577
106\

(40)
(1)021,633222,8442. Segment information on sales and income (loss), identifiable assets and other items by business for the years ended March 31, 2014 and 2013 is summarizedas follows:（For the year ended March 31, 2014）Millions of yenTelecommuni-cationsNet salesOutside customersInter-segment salesTotalSegment income(loss)AssetsOthersDepreciationAmortization of goodwillInvestments in affiliatesaccounted for by the equitymethodTangible/intangible fixedassets increased.

Energy andindustrialproductsElectronics andautomotivesystemsTotal\\125,942 \4,762130,704(3,054) \102,877 \94,029 \2,55996,5884,445 \- \23,509 \20,28343,7921,037 \132,442 \931,782 \83,2491,015,03125,273 \8 \- \(83,249)(83,249)
184 \(19,259) \931,782－931,78225,457(19,251)\\4,643 \87 \3,363 \158 \6,668 \106 \5,597 \‐ \5,400 \101 \1,330 \346 \27,001 \798 \1,106 \‐ \28,107798\1,165 \14,296 \7,265 \5,398 \‐ \44,504 \72,628 \‐ \72,628\6,046 \3,956 \13,299 \2,736 \9,213 \1,405 \36,655 \781 \37,436Millions of yen.

Energy andindustrialproductsElectronics andautomotivesystemsMetalsLightmetalsServicesand otherSub-totalAdjustments*Total\\140,966 \5,179146,1451,902 \120,696 \227,872 \37,853265,7251,957 \163,647 \236,759 \6,948243,7079,308 \175,874 \124,936 \4,510129,446(1,267) \101,511 \180,700 \4,292184,9924,362 \221,221 \13,484 \23,49236,9761,508 \69,880 \924,717 \82,2741,006,99117,770 \852,829 \- \(82,274)(82,274)(7) \(33,127) \924,717－924,71717,763819,702\\5,199 \172 \4,602 \559 \6,354 \111 \5,385 \‐ \10,732 \203 \1,733 \346 \34,005 \1,391 \1,342 \‐ \35,3471,391\783 \18,704 \6,032 \4,525 \17,691 \‐ \47,735 \‐ \47,735\7,396 \3,167 \9,457 \6,706 \18,690 \1,478 \46,894 \878 \47,772\Telecommuni-cations.

Thousands of U.S.dollarsEnergy andindustrialproductsElectronics andautomotivesystemsMetalsServicesand other$$2,517,598 $413,2252,930,82316,304 $1,638,529 $OthersDepreciationAmortization of goodwill$$45,520 $853 $32,971 $1,549 $65,372 $1,039 $54,873 $‐ $52,941 $990 $Investments in affiliatesaccounted for by the equitymethod$11,422 $140,157 $71,224 $52,922 $$59,275 $38,784 $130,382 $26,824 $$2,773,196 $ 1,234,726 $79,47146,6862,852,6671,281,412137,314 $(29,941) $1,947,245 $ 1,008,598 $Lightmetals1,457,265 $52,8431,510,10870,353 $1,304,275 $Tangible/intangible fixedassets increasedAdjustments*282,866 \8,106290,97214,006 \198,619 \（For the year ended March 31, 2014）Net salesOutside customersInter-segment salesTotalSegment income(loss)AssetsSub-total256,795 \42,149298,9441,663 \167,130 \Telecommuni-cationsOthersDepreciationAmortization of goodwillInvestments in affiliatesaccounted for by the equitymethodTangible/intangible fixedassets increasedServicesand other148,641 \5,390154,0317,176 \133,036 \\（For the year ended March 31, 2013）Net salesOutside customersInter-segment salesTotalSegment income(loss)AssetsLightmetalsMetals921,853 $230,480 $25,088198,853946,941429,33343,578 $10,167 $- $ 1,298,451 $Sub-totalAdjustments*9,135,118 $816,1669,951,284247,775 $7,197,098 $- $(816,166)(816,166)
1,804 $(188,814) $9,135,118－9,135,118249,5797,008,28413,039 $3,392 $264,716 $7,823 $10,843 $‐ $275,5597,823‐ $436,314 $712,039 $‐ $712,03990,324 $13,774 $359,363 $7,657 $367,020＊ Inter-segment transactions are eliminated from the consolidated financial statements. Corporate assets areincluded in the consolidated financial statements. Adjustments include increase of tangible/intangible fixed assetsand depreciation related to the corporate assets.
(Change of fiscal year)1) On depreciation method of property, plant and equipment, the Company and certain domestic consolidatedsubsidiaries mainly adopted the declining-balance method for property, plant and equipment other than buildingsand overseas consolidated subsidiaries mainly adopted the straight-line method so far. The Company and thecertain domestic consolidated subsidiaries, however, have changed the depreciation method to the straight-linemethod from this fiscal year.
The Group planned in the medium-term management plan to increase resources allocated to overseas operationbase for expanding business in the overseas market which can expect growth, its policy was made clear, to shift toinvestments for maintenance and updates corresponding to mature market environment in the domestic market.
After this, as a result of investigating the operation status of its assets, which are mainly domestic productionfacility owned by the Company and the certain domestic consolidated subsidiaries, long-term and stable operationstatus of those assets were expected afterwards. Therefore, it was judged that depreciation using by the straightline method provides reasonable cost allocation reflecting such an operation status of those assets.
As a result of this change, segment income (loss) of Telecommunications, Energy and industrial products,Electronics and automotive systems, Metals, Loght metals and Services and other increased by \516 million($5,059 thousand), \555 million ($5,441 thousand), 545 million ($5,343 thousand), 72 million ($706 thousand) , 17million ($167 thousand)and \312 million ($3,059 thousand), respectively, compared with previous method hadbeen applied.
2) The financial statements of P.T. Tembaga Mulia Semanan,Tbk, whose statutory financial year end was December31, has been consolidated by using their financial statements as of the parent fiscal year end which are preparedsolely for consolidation purpose to further enhance appropriate disclosure of consolidated financial information.
Accordingly, consolidated financial statements have been prepared based on financial statements for the fifteenmonths fiscal period, from January 1, 2013 to March 31, 2014.
As a result of this change, net sales and segment income increased by \15,916 million($156,039 thousand) and\176 million ($1,725 thousand), respectively,compared with previous method had been applied.

51Total<Relative information>Information by regions(For the year ended March 31, 2014)Net sales\Property, plant and equipment,net of accumulated depreciation \JapanMillions of yen
AsiaOther areasTotal547,699 \258,990 \125,093 \931,782116,543 \51,317 \23,209 \191,069JapanThousands of U.S. dollars (Note 3)
AsiaTotalOther areasNet sales$ 5,369,598 $ 2,539,118 $Property, plant and equipment,503,108 $net of accumulated depreciation $ 1,142,578 $(For the year ended March 31, 2013)Net sales\Property, plant and equipment,net of accumulated depreciation \1,226,402 $9,135,118227,539 $1,873,225JapanMillions of yen
AsiaOther areasTotal579,004 \237,742 \107,971 \924,717214,390 \46,145 \19,552 \280,087<Information of impairment loss by reportable segments>(For the year ended March 31, 2014)Millions of yenImpairment lossEnergyandTelecommuni-cationsindustrialproducts\621 \815 \Impairment$loss6,088 $7,990 $Electronicsandautomotivesystems24 \235 $2,935 \Servicesand other2,410 \Thousands of U.S. dollars (Note 3)28,775 $23,628 $(For the year ended March 31, 2013)Impairment lossLightmetalsMetalsSub-totalAdjustmentsTotal- \6,805 \-\6,805- $66,716 $-$66,716Millions of yenEnergy
andTelecommuni-cationsindustrialproducts\701 \1,072 \ElectronicsandautomotivesystemsLightmetalsMetals248 \54 \59 \Servicesand other448 \Sub-total2,582 \Adjustments-\Total2,582<Information of goodwill by reportable segments>(For the year ended March 31, 2014)Millions of yenAmortization of goodwillGoodwill as of March 31Energy
andTelecommuni-cationsindustrialproducts\
87 \158 \\177 \515 \Amortization of goodwillGoodwill as of March 31$$853 $1,735 $1,549 $5,049 $Electronicsandautomotivesystems106 \124 \1,039 $1,216 $- \- \Amortization of goodwillGoodwill as of March 31101 \- \Servicesand otherSub-totalAdjustmentsTotal346 \3,254 \798 \4,070 \-\-\7984,070Thousands of U.S. dollars (Note 3)- $990 $3,392 $- $- $31,902 $7,823 $39,902 $-$-$7,82339,902(For the year ended March 31, 2013)Energy
andTelecommuni-cationsindustrialproducts\172 \559 \\272 \560 \LightmetalsMetalsMillions of yenElectronicsandautomotivesystemsLightmetalsMetals111 \214 \52- \- \203 \264 \Servicesand other346 \3,600 \Sub-total1,391 \4,910 \Adjustments-\-\Total1,3914,910