Annual Report 2019
For the Year Ended 31st March 2019

PROFILE
Since its establishment in 1958, MARUDAI FOOD CO., LTD. has been dedicated tooffering delicious, high-quality meat products. In order to understand the latest
consumer trends and to meet the needs of modern lifestyles, we have continuously
strengthened our research, sales and production operations. Intending to become
Japan’s leading food company, we successfully listed our stock on the First Section of
the Tokyo Stock Exchange in 1972.
Starting as a ham and sausage producer, Marudai Food has steadily expanded its
range of products to include heat-processed, vacuum-packed food, dessert and beverage
products and fresh meats. Ham and sausage, however, remain an integral part of our
product line and continue to account for almost a third of our sales.
While pursuing a leading position in the ham and sausage market, Marudai Food waseager to explore new avenues by developing precooked and processed foods, which
went on sale in 1973. This long shelf-life food was developed to meet the specific needfor fast meal preparation. Containing absolutely no preservatives and requiring only
several minutes to prepare, Marudai precooked and processed foods have established astrong foothold in the market. Building on this success, we will make even greater
efforts to create new products that satisfy the increasingly discriminating tastes ofconsumers.

CONTENTSFINANCIAL HIGHLIGHTS ............................................................................... 1
TO OUR SHAREHOLDERS .............................................................................. 2
PRODUCTS ......................................................................................................... 3
CONSOLIDATED BALANCE SHEETS ............................................................ 5
CONSOLIDATED STATEMENTS OF INCOME .............................................. 7
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME ............ 8CONSOLIDATED STATEMENTS OF CHANGES IN NET ASSETS .............. 9
CONSOLIDATED STATEMENTS OF CASH FLOWS ................................... 10
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS ......................... 11
INDEPENDENT AUDITOR’S REPORT .......................................................... 34
DIRECTORS AND STATUTORY AUDITORS ................................................ 35
OUTLINE OF THE COMPANY ....................................................................... 36

MARUDAI FOOD CO., LTD.

FINANCIAL HIGHLIGHTS
For the Years Ended 31st March 2019 and 2018
(Consolidated basis)Thousands of
U.S. dollars, except
per share amounts (Note)

Millions of yen,
except per share amounts
2019

2018

2019

Net sales ...................................................................................................

¥ 243,031¥ 239,587$ 2,189,468

Profit attributable to owners of parent ......................................................

1,464

1,842

13,189Profit attributable to owners of parent (Note 2) .................................

57.48

70.39

0.52

Profit attributable to owners of parent, diluted (Note 2) ....................

–

–

–

Dividends (Note 13) ...........................................................................

35.00

8.00

0.32

Total assets ...............................................................................................

¥ 132,627¥ 131,146$ 1,194,838

Per share (yen and dollars):

Note: U.S. dollar amounts are translated from yen for convenience only at the rate of ¥111.00 to U.S.$1.00.

1MARUDAI FOOD CO., LTD.

TO OUR SHAREHOLDERS

exemplified by labour shortages and increases in logistics
and energy costs in addition to the increasingly fierce
price competition as consumers become increasingly
budget-minded. Regarding the meat market, beef prices
were generally higher than the previous year’s level while
pork prices remained soft. Overall, domestic price levels
were higher than the previous year.
In these circumstances, the Marudai Food Groupadvanced its corporate activities with the aim of gaining
recognition as an enterprise with a social mission, namely,
a comprehensive food products company offering
merchandise satisfying the highest standards of safety
and reliability.
As a result, consolidated net sales for the fiscal year
ended 31st March 2019 increased by 1.4% year on year to¥243,031 million. Operating income decreased by 4.9% to¥2,253 million, and profit attributable to owners of parent
decreased by 20.5% to ¥1,464 million.
Once again we would like to thank you, ourshareholders, for your support and trust that we can rely
on your continued confidence.

With the issuance of our company’s 71th annual report,
we hope that our shareholders are enjoying health andprosperity. We would also like to take this opportunity toJune 2019.

express our deep appreciation for your continued
support.
During the fiscal year ended 31st March 2019, theJapanese economy continued on a moderate recovery
track supported by improved employment and householdincome environments. However, the outlook remains
uncertain amid emerging effects overseas mainly frommaterializing geopolitical risks.

Toshiharu Inoue

In the industry in which the Marudai Food Group
operates, a harsh business environment continued,

President and Representative Director

2

MARUDAI FOOD CO., LTD.

PRODUCTS

The following table shows an analysis of the consolidated sales of MARUDAI FOOD CO., LTD. and its consolidated
subsidiaries (together, the “Companies”) by product categories for the years ended 31st March 2019 and 2018:

Millions of yen(percent of total net sales)

Processed Food Products .........................................................................

Meat Products ..........................................................................................

Other ........................................................................................................

Total ....................................................................................................

2019

2018

¥ 169,388¥ 165,290(69.7%)(69.0%)

73,482

74,137(30.2%)(30.9%)

161

160(0.1%)(0.1%)¥ 243,031¥ 239,587

2019

Note: U.S. dollar amounts are translated from yen for convenience only at the rate of ¥111.00 to U.S.$1.00.

3

Thousands of
U.S. dollars (Note)$ 1,526,018

662,000

1,450$ 2,189,468

Processed Food Products
Ham & Sausage Products operations conducted sales promotion activities centring on mainstay products such as “KunseiyaRipened Pork Sausage” with various campaigns and products utilizing names and logos as an official supporter of the 2020
Olympic and Paralympic Games. Moreover, in addition to new product introductions, specifically loin ham and bacon products of
the JAS Special Grade Standard “Carb-free” series, we made sales expansion efforts primarily for the “MINION” series, which
commercialized popular characters, and “Oryori Bacon.” For our midsummer and year-end gift products, we sought to increase
sales of our “Ouha” and “Kousai” series, which include products that have won the Monde Selection Grand Gold Quality Awardin the food category. Despite these efforts, we continued to face a difficult business environment that included intensified pricecompetition against a backdrop of reduced consumer spending. As a result, sales in the Ham & Sausage Products operations
decreased by 5.3% year on year.
In our Precooked & Processed Foods operations, our “Bistro Club Beef Curry” series and other retort curry products
performed well, while new product introductions expanded the line-up of the “Sundubu” series. For the “Salad Chicken” series,
the addition of block-type products contributed to sales. As for our desserts and beverages, sales increased significantly on theback of strong performance of the popular “TAPIOCA TIME” series of beverages containing black tapioca. As a result, sales in
the Precooked & Processed Foods operations increased 10.8% year on year.
As a result, sales in the Processed Food Products segment amounted to ¥169,388 million, an increase of 2.5% year on year.
Operating income grew 14.3% year on year to ¥781 million owing mainly to the favourable sales in the Precooked & Processed
Foods operations, despite the severe environment where sales declined in the mainstay Ham & Sausage Products and the initialcost associated with the start-up of a new plant for products for convenience stores impacted the segment’s performance.
Meat Products
With regard to beef, while the market price was generally higher than the previous year, both sales and sales volume forJapanese beef grew. However, the overall beef sales were about the same level year on year as the performance for imported
frozen beef was sluggish. Regarding pork, sales fell due to lower unit prices of Japanese pork affected by soft market prices. Still,thanks to our efforts in expanding sales of imported frozen pork, total pork sales increased moderately from the previous year.
Sales volume and sales of chicken were below the previous year due partly to the impact of declining prices.
As a result, sales in the Meat Products segment decreased by 0.9% year on year to ¥73,482 million. Operating income
decreased by 9.1% to ¥1,389 million mainly because of the decline in profitability of imported frozen beef.
Other
Sales in the Other business increased by 1.1% year on year to ¥161 million, and operating income decreased by 47.8% to ¥83
million.

4

MARUDAI FOOD CO., LTD.

CONSOLIDATED BALANCE SHEETS
31st March 2019 and 2018

Millions of yen
ASSETS
Current assets:
Cash and time deposits (Notes 3 and 17) ...........................................
Receivables:
Trade notes and accounts (Note 3) ...............................................
Other .............................................................................................
Allowance for doubtful accounts ..................................................
Inventories (Note 6) ............................................................................
Advances and other current assets .....................................................
Total current assets .......................................................................
Investments and other assets:
Investment securities (Notes 3 and 4)
Affiliates .......................................................................................
Other .............................................................................................
Deferred tax assets (Note 11) .............................................................
Other ...................................................................................................
Allowance for doubtful accounts .......................................................
Total investments and other assets ................................................
Property, plant and equipment, at cost:
Land (Note 8) .....................................................................................
Buildings and structures (Note 8) ......................................................
Machinery and equipment (Note 8) ...................................................
Lease assets ........................................................................................
Construction in progress ....................................................................
Less accumulated depreciation ..........................................................
Net property, plant and equipment ...............................................
Intangible assets .....................................................................................
Total assets .........................................................................................
See accompanying Notes to Consolidated Financial Statements.

5

2019

2018

¥

¥

8,127

8,710

Thousands of
U.S. dollars (Note 1)
2019$

73,21630,700747(16)
15,772598

29,049447(17)
16,050826

276,577
6,730(144)
142,090
5,387

55,92855,065503,856

17
12,298
318
3,514
(128)
16,019–14,098
267
3,940
(134)
18,171

153
110,793
2,865
31,657(1,153)
144,315

18,96653,33464,4088,650
1,464
146,822(88,978)
57,8442,836¥ 132,627

18,99650,70260,922
8,145
3,685
142,450(86,314)
56,136
1,774¥ 131,146

170,865
480,487
580,252
77,92813,1891,322,721(801,604)
521,11725,550$ 1,194,838

Millions of yen
2019
2018

LIABILITIES AND NET ASSETS

Thousands of
U.S. dollars (Note 1)
2019

Current liabilities:
Payables:Trade notes and accounts payable (Note 3) ..................................
Other .............................................................................................
Short-term borrowings (Notes 3, 7 and 8) ..........................................
Long-term debt due within one year (Notes 3, 7 and 8) ....................
Short-term lease obligations (Notes 3 and 7) .....................................
Accrued income taxes ........................................................................
Allowance for bonuses .......................................................................
Other current liabilities ......................................................................
Total current liabilities ..................................................................

¥ 23,058
8,780
6,380
1,927
1,088
488
921
2,580
45,222¥ 23,330
8,828
5,130
1,669
923
442
966
2,469
43,757Long-term liabilities:
Long-term debt due after one year (Notes 3, 7 and 8) .......................
Long-term lease obligations (Notes 3 and 7) .....................................
Deferred tax liabilities (Note 11) .......................................................
Liabilities for retirement benefits (Note 10) ......................................
Other long-term liabilities ..................................................................
Total long-term liabilities .............................................................

3,972
4,650
1,282
718
688
11,310

3,059
4,134
1,702
793
717
10,40535,784
41,892
11,5506,468
6,198
101,892

NET ASSETS (Note 13)
Shareholders’ equity:
Common stock
Authorised — 40,000,000 shares in 2019 (200,000,000 shares in 2018)
Issued — 26,505,581 shares in 2019 (132,527,909 shares in 2018)......
Capital surplus ....................................................................................
Retained earnings ...............................................................................
Treasury stock, at cost ........................................................................
Total shareholders’ equity �����������������������������������������������������������

6,716
22,08644,913(2,635)71,0806,716
22,08644,470(2,457)70,81560,505
198,973404,621(23,739)
640,360

Accumulated other comprehensive income:Unrealised gains on securities ............................................................
Deferred gains (losses) on hedges ......................................................
Foreign currency translation adjustments ..........................................
Adjustments for retirement benefits ...................................................
Total accumulated other comprehensive income ..........................

5,274
9
36
(823)
4,496

6,396
(9)
35
(730)
5,692

47,51481
324(7,414)40,505519
76,095¥ 132,627

477
76,984¥ 131,146

4,676
685,541$ 1,194,838$

207,730
79,09957,477
17,360
9,802
4,396
8,297
23,244407,405

Contingent liabilities (Note 12)

Noncontrolling interests �����������������������������������������������������������������������
Total net assets ...................................................................................
Total liabilities and net assets .............................................................
See accompanying Notes to Consolidated Financial Statements.
6

MARUDAI FOOD CO., LTD.

CONSOLIDATED STATEMENTS OF INCOME
Years Ended 31st March 2019 and 2018

Net sales ..................................................................................................
Cost of sales ............................................................................................

Millions of yen
2019
2018
¥ 243,031¥ 239,587
188,973
186,945

Thousands of
U.S. dollars (Note 1)
2019$ 2,189,468
1,702,459

Gross profit .........................................................................................
Selling, general and administrative expenses (Note 14) ......................

54,05851,80552,64250,272

487,009466,712

Operating income ...............................................................................

2,253

2,370

20,297

337
182
(214)
281
(262)
(182)
(27)
(56)
164

304
189
(182)
351
(57)
(26)
(16)
–
136

3,036
1,640
(1,928)2,532(2,360)(1,640)
(243)
(505)
1,477

223

699

2,009

Income before income taxes ...................................................................

2,476

3,069

22,306

Income taxes (Note 11):
Current ................................................................................................
Deferred ..............................................................................................

956
10

1,084
101

8,612
90

966

1,185

8,702

1,510
(46)

1,884
(42)

13,604(415)

Other income (expenses):
Interest and dividend income .............................................................
Real estate rent......................................................................................
Interest expense ..................................................................................
Gain on sale of securities, net (Note 4) ..............................................
Loss on disposal of property, plant and equipment, net .....................
Special retirement expenses ...............................................................
Loss on impairment of assets (Note 15) .............................................
Loss compensation .............................................................................
Other, net ............................................................................................

Profit ........................................................................................................
Profit attributable to noncontrolling interests ......................................
Profit attributable to owners of parent .................................................

¥

1,464

¥

1,842

$

13,189U.S. dollars (Note 1)

Yen
Profit attributable to owners of parent per share (Note 2) ..................

¥ 57.48¥ 70.39$ 0.52

Profit attributable to owners of parent, diluted per share (Note 2) ....

–

–

–

Dividends per share (Note 13) ...............................................................

¥ 35.00¥ 8.00$ 0.32

See accompanying Notes to Consolidated Financial Statements.

7

MARUDAI FOOD CO., LTD.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
Years Ended 31st March 2019 and 2018

Profit �������������������������������������������������������������������������������������������������������
Other comprehensive income:Unrealised gains (losses) on securities ����������������������������������������������
Deferred gains (losses) on hedges �����������������������������������������������������
Adjustments for retirement benefits ��������������������������������������������������
Share of other comprehensive income of associates accounted for using equity method ���Total other comprehensive income (Note 18) �����������������������������
Comprehensive income �������������������������������������������������������������������������
Comprehensive income attributable to:
Owners of the parent �������������������������������������������������������������������������
Noncontrolling interests ��������������������������������������������������������������������
See accompanying Notes to Consolidated Financial Statements.

8

Millions of yen
2019
2018
¥ 1,510¥ 1,884

Thousands of
U.S. dollars (Note 1)
2019$ 13,604(1,122)18(93)
1(1,196)
¥ 314

1,356
(10)
465
(2)
1,809
¥ 3,693(10,108)
162
(838)
9
(10,775)$ 2,829¥¥¥ 3,651¥ 42$ 2,414
$ 415

268
46

MARUDAI FOOD CO., LTD.

CONSOLIDATED STATEMENTS OF CHANGES IN NET ASSETS
Years Ended 31st March 2019 and 2018

Thousands of
U.S. dollars (Note 1)
2019

Millions of yen
2019
2018
Common stock:
Balance at beginning and end of the year �����������������������������������������

¥ 6,716¥ 6,716$ 60,505

Capital surplus:
Balance at beginning and end of the year �����������������������������������������

¥ 22,086¥ 22,086$ 198,973

Retained earnings:
Balance at beginning of the year �������������������������������������������������������Cash dividends paid ��������������������������������������������������������������������������
Profit attributable to owners of parent ���������������������������������������������������
Balance at end of the year �����������������������������������������������������������������

¥ 44,470(1,021)
1,464¥ 44,913¥ 43,679(1,051)
1,842¥ 44,470$ 400,630(9,198)13,189$ 404,621

Treasury stock, at cost:
Balance at beginning of the year �������������������������������������������������������
Purchase of treasury stock �����������������������������������������������������������������
Balance at end of the year �����������������������������������������������������������������

¥ (2,457)(178)¥ (2,635)¥(513)(1,944)¥ (2,457)$ (22,135)(1,604)$ (23,739)

Unrealised gains on securities:
Balance at beginning of the year �������������������������������������������������������
Increase (decrease) for the year ���������������������������������������������������������
Balance at end of the year �����������������������������������������������������������������

¥ 6,396(1,122)¥ 5,274¥ 5,040
1,356¥ 6,396$ 57,622(10,108)$ 47,514¥¥$

Deferred gains (losses) on hedges:
Balance at beginning of the year �������������������������������������������������������
Increase (decrease) for the year ���������������������������������������������������������
Balance at end of the year �����������������������������������������������������������������
Foreign currency translation adjustments:
Balance at beginning of the year �������������������������������������������������������
Increase (decrease) for the year ���������������������������������������������������������
Balance at end of the year �����������������������������������������������������������������
Adjustments for retirement benefits:
Balance at beginning of the year �������������������������������������������������������
Increase (decrease) for the year ���������������������������������������������������������
Balance at end of the year �����������������������������������������������������������������
Noncontrolling interests:
Balance at beginning of the year �������������������������������������������������������
Increase for the year ��������������������������������������������������������������������������
Balance at end of the year �����������������������������������������������������������������
See accompanying Notes to Consolidated Financial Statements.

9

¥
¥
¥
¥
¥
¥
¥

(9)
18
9
35
1
36

¥
¥

1
(10)
(9)

$

38
(3)
35

$

(730)
(93)
(823)

¥ (1,195)
465¥ (730)

$

477
42
519

¥

$

¥

¥

439
38
477

$

$

$

(81)
162
81
315
9
324
(6,576)(838)(7,414)
4,297
379
4,676

MARUDAI FOOD CO., LTD.

CONSOLIDATED STATEMENTS OF CASH FLOWS
Years Ended 31st March 2019 and 2018

Thousands of
U.S. dollars (Note 1)
2019

Millions of yen
2019
2018
Cash flows from operating activities:
Income before income taxes ...............................................................
Depreciation and amortisation ...........................................................
Loss on impairment of assets .............................................................
Decrease in allowance for doubtful accounts .....................................
Increase (decrease) in liabilities for retirement benefits ....................
Special retirement expenses ...............................................................
Interest and dividend income .............................................................
Interest expense ..................................................................................
Gain on sale of securities, net ............................................................
Loss on valuation of investment securities .........................................
Loss on disposal of property, plant and equipment, net .....................
Increase in receivables ........................................................................
Decrease (increase) in inventories ......................................................
Decrease in trade notes and accounts payable ...................................
Increase in consumption tax payable .................................................
Other, net ............................................................................................
Subtotal .........................................................................................
Interest and dividends received ..........................................................
Interest paid ........................................................................................
Income taxes paid ...............................................................................
Payments for special retirement expenses ..........................................
Net cash provided by operating activities .....................................
Cash flows from investing activities:
Purchase of short-term investments and investment securities ...........
Proceeds from sale of short-term investments and investment securities ....
Purchase of property, plant and equipment ..................................................
Proceeds from sale of property, plant and equipment ........................
Other, net ............................................................................................
Net cash used in investing activities .............................................
Cash flows from financing activities:
Net increase in short-term borrowings ...............................................
Proceeds from long-term debt ............................................................
Repayment of long-term debt .............................................................
Repayment of lease obligations .........................................................
Cash dividends paid ...........................................................................
Purchase of treasury shares ................................................................
Other, net ............................................................................................
Net cash provided by (used in) financing activities ......................
Net decrease in cash and cash equivalents ...........................................
Cash and cash equivalents at beginning of year ..................................
Cash and cash equivalents at end of year (Note 17) ............................
See accompanying Notes to Consolidated Financial Statements.

10¥ 2,476
6,434
27
(7)
(200)
182
(337)
214
(281)
2
262
(1,654)
267
(236)
190
(115)
7,224
324
(214)
(612)

¥ 3,069
5,689
16
(17)
194
26
(304)
182
(351)
4
57
(3,122)(1,208)
(54)
128
762
5,071
290
(182)
(1,183)$ 22,306
57,964243(63)(1,802)
1,640(3,036)
1,928(2,532)18
2,360(14,901)
2,405(2,126)
1,712(1,035)65,081
2,919(1,928)(5,513)

(26)

(843)

(234)

6,696

3,153

60,325

(32)

(32)

(288)

533
(8,434)495(97)(7,535)545(8,681)819(206)(7,555)4,802(75,982)
4,459
(874)

1,250
2,840
(1,669)(962)(1,020)
(179)

593
2,090
(1,992)(949)(1,051)(1,944)

11,261
25,586(15,036)(8,667)(9,189)(1,613)(67,883)

(4)

(6)

(36)

256

(3,259)

2,306

(583)
8,710
¥ 8,127(7,661)
16,371¥ 8,710(5,252)
78,468$ 73,216

MARUDAI FOOD CO., LTD.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
For years Ended 31st March 2019 and 2018

1. Basis of presenting consolidated financial statements
The accompanying consolidated financial statements of MARUDAI FOOD CO., LTD. (the “Company”) and its consolidated
subsidiaries (together, the “Companies”) have been prepared in accordance with the provisions set forth in the Japanese Financial
Instruments and Exchange Law and its related accounting regulations and in conformity with accounting principles generally
accepted in Japan (“Japanese GAAP”), which are different in certain respects as to application and disclosure requirements fromInternational Financial Reporting Standards.
The accompanying consolidated financial statements have been restructured and translated into English from the consolidated
financial statements of the Company prepared in accordance with Japanese GAAP and filed with the appropriate Local Finance
Bureau of the Ministry of Finance as required by the Japanese Financial Instruments and Exchange Act. Certain supplementary
information included in the statutory Japanese language consolidated financial statements, but not required for fair presentation,
is not presented in the accompanying consolidated financial statements.
The translation of the Japanese yen amounts into U.S. dollar amounts is included solely for the convenience of readers outside
Japan, using the prevailing exchange rate at 31st March 2019, which was ¥111.00 to U.S. $1.00. These translations should not be
construed as representations that the Japanese yen amounts have been, could have been or could in the future be converted into
U.S. dollars at this or any other rate of exchange.
2. Significant accounting policies
Consolidation - The consolidated financial statements include the accounts of the Company and its 26 subsidiaries. ALL of
the Company’s subsidiaries have the same fiscal year end as the Company, 31st March.
All significant intercompany balances, transactions and profits have been eliminated. In the elimination of investments in
subsidiaries, the assets and liabilities of the subsidiaries, including the portion attributable to noncontrolling shareholders, areevaluated using the fair value at the time the Company acquired control of the respective subsidiary. The difference between thecost of an investment and the equity in the assets at the date of acquisition is amortized over five years. Equity method accounting
is applied to affiliates which are substantially controlled by the Company. Betagro MF Deli Co., Ltd. is being included in thescope of the Companies to which the equity method is applied.
Cash and cash equivalents - Cash on hand, readily available deposits and short-term highly liquid investments with maturities
not exceeding three months at the time of purchase are considered cash and cash equivalents.
Securities - Available-for-sale securities with available fair market value are stated at fair market value. Unrealized gains andlosses on these securities are reported, net of applicable income taxes, as a separate component of shareholders’ equity. Realized
gains and losses on the sale of such securities are computed using the moving average cost method. Debt securities with noavailable fair market value are stated at amortized cost, net of the amount considered not collectible. Other securities with noavailable fair market value are stated using the moving average cost method.
If the market value of equity securities or available-for-sale securities declines significantly, the difference between the fairmarket value and the carrying amount is recognized as loss in the period of the decline. If the fair market value of equity securities
is not readily available, such securities are written down to net asset value with a corresponding charge in the consolidated
statement of income in the event the net asset value declines significantly. In these cases, the fair market value or the net asset
value will be the carrying amount of the securities at the beginning of the next year.
Derivatives and hedge accounting - The Companies account for derivative financial instruments at fair value and recognizechanges in the fair value as gain or loss unless the derivative financial instrument is used for hedging purposes. If derivative
financial instruments are used as hedges and meet certain hedging criteria, the Companies defer recognition of gain or loss
resulting from changes in the fair value of the derivative financial instrument until the related loss or gain on the hedged item isrecognized. However, foreign monetary obligations denominated in foreign currencies for which foreign exchange forward
contracts are used to hedge foreign currency fluctuations are translated at the contracted rate if the forward contracts qualify forhedge accounting (“the alternative method”). Also, if interest rate swap contracts are used as hedges and meet certain hedging
criteria, the net amount to be paid or received under the interest rate swap contract is added to or deducted from the interest on theassets or liabilities for which the swap contract was executed (“the special treatment”).

11Allowance for doubtful accounts - An allowance for doubtful accounts is provided to cover possible losses on collection. With
respect to normal trade accounts receivable, it is stated at an amount based on the actual rate of historical bad debts. For certain
doubtful receivables, the uncollectible amounts are individually estimated.
Inventories - The Company and its domestic consolidated subsidiaries state inventories at the lower of average cost or net
realizable value.
Property, plant and equipment -Property, plant and equipment are stated at cost. Depreciation is computed primarily using thedeclining balance method. However, the straight-line method is applied for depreciation of buildings acquired on or after 1st April
1998 and facilities attached to buildings and structures acquired on or after 1st April 2016. The useful life of buildings andstructures ranges from 12 to 50 years. The useful life of machinery and equipment ranges from 4 to 10 years.
Software - The Company and its consolidated domestic subsidiaries include software in intangible assets and amortize it using
the straight-line method over the estimated useful life of 5 years.
Goodwill - Goodwill is amortized over a period of 5 years using the straight-line method.
Lease assets - Assets under finance leases that do not transfer ownership of the lease assets are amortized using the straightline method over the lease term with the assumption that the useful life coincides with the lease term and the residual value is
zero.
Research and development expenses - Research and development expenses for the improvement of existing products and thedevelopment of new products, including basic research and fundamental development costs, are charged to expenses as incurred.
Bonuses - The Company and its consolidated domestic subsidiaries follow the general Japanese practice of paying bonuses to
employees in July and December. The allowance for bonuses is determined based upon the estimated amounts to be paid in thesubsequent period.
Translation of foreign currencies - Short-term and long-term receivables and payables denominated in foreign currencies aretranslated into Japanese yen at year-end rates.
Accounting for Retirement Benefits - Projected benefit obligations are attributed to periods on a benefit formula basis indetermining retirement benefit obligations. Actuarial gains and losses are amortized by the straight-line method over a fixed
period of 10 years, which is within the average remaining service years of the eligible employees, beginning in the fiscal year
following the year in which the gains and losses are recognized. In determining the amount of retirement benefit obligations andretirement benefit costs, some small sized consolidated subsidiaries have adopted a simplified method in which the amount thatwould be required if all the employees retired voluntarily at the fiscal year end is treated as retirement benefit obligation.
Income taxes - The asset-liability approach is used to recognize deferred tax assets and liabilities for tax loss carryforwards
and the expected future tax consequences of temporary differences between the carrying amounts of assets and liabilities forfinancial reporting purposes and the amounts used for income tax purposes.
Amounts per share - The computations of profit attributable to owners of parent per share of common stock shown on the
consolidated statements of income are based on the weighted average number of shares outstanding during each financial
period. The Company consolidated shares of its common stock at a ratio of 5-to-1 on 1st October 2018, the effective date.
Profit attributable to owners of parent per share is computed based on the assumption that the said consolidation of shares was
conducted at the beginning of the previous year. Cash dividends per share shown in the consolidated statements of income are theamounts applicable to the respective years. Diluted profit attributable to owners of parent is not disclosed because the Company
had no outstanding securities which might have diluted the per share amounts for the years ended 31st March 2019 and 2018.

12

Corporate taxes - Consolidation taxation system has been adopted.
Accounting standards and relevant regulations that have not yet been adopted- Accounting Standard for Revenue Recognition (Accounting Standards Board of Japan (ASBJ) Statement No. 29, 30th March 2018)- Implementation Guidance on Accounting Standard for Revenue Recognition (ASBJ Guidance No. 30, 30th March 2018)(1) Summary
In accordance with this comprehensive accounting standard for revenue recognition, revenue is recognized through theapplication of the following five steps.
1: Identify the contract with the customer.
2: Identify the performance obligations in the contract.
3: Determine the transaction price.
4: Allocate the transaction price to the performance obligations in the contract.
5: Recognize revenue as the performance obligations are satisfied.
(2) Effective dates
The standard is scheduled to be applied from the beginning of the fiscal year ending 31st March 2022.
(3) Effect of application of the revised standard
The total numerical value of the effect of the application of the revised standard had not been determined as of the preparationof these consolidated financial statements.
Changes in presentation method(Changes due to adoption of “Partial Amendments to Accounting Standard for Tax Effect Accounting”)
Upon application of “Partial Amendments to Accounting Standard for Tax Effect Accounting” (ASBJ Statement No. 28, 16th
February 2018 (hereinafter, “Statement No. 28”)) from the beginning of the current fiscal year, the Company and its domestic
subsidiaries changed the presentation and related notes of deferred tax assets and deferred tax liabilities such that deferred tax
assets and deferred tax liabilities are classified as part of “Investments and other assets” and “Long-term liabilities,” respectively.
As a result, ¥1,030 million of deferred tax assets classified as “Current assets” and ¥923 million of deferred tax liabilities
classified as “Long-term liabilities” have been included in deferred tax assets (¥267 million) in “Investments and other assets,”and deferred tax liabilities classified as “Long-term liabilities” have been restated to ¥1,702 million in the balance sheet as of theend of the previous fiscal year.
The notes related to tax effect accounting additionally included those described in Notes 8 (excluding total amount ofvaluation reserves) and 9 of “Accounting Standard for Tax Effect Accounting,” which are required in Paragraphs 3 to 5 ofStatement No. 28. However, this additional information corresponding to the previous fiscal year is not disclosed, in accordancewith the transitional treatments prescribed in Paragraph 7 of Statement No. 28.
Reclassification
Certain prior year amounts have been reclassified to conform to the current year’s presentation.
3. Financial instruments(1) Current status of financial instruments① Policy concerning financial instruments
The Group makes it a policy to limit fund investments to bank deposits and other investments in which the principal
thereof is free from risk and raise funds principally through borrowings from financial institutions such as banks andissuance of corporate bonds. The Group uses derivatives to reduce foreign exchange and interest rate fluctuation risks but
does not engage in any speculative transactions.
② Details of financial instruments and their risks and the Group’s risk management system
The Group is exposed to credit risk arising from operating receivables such as trade notes and accounts receivable. To

13

limit the risk, the Company conducts due date and outstanding receivable management by customer in accordance with its
credit exposure management guidelines and has a grading system to evaluate the credit condition of its major customers
every six months. The consolidated subsidiaries manage credit risk similarly, following the Company’s credit exposure
management guidelines.
Investment securities held by the Company are comprised of exchange listed shares (strategic shareholdings) and unlisted
stocks, with the bulk consisting of exchange listed shares (strategic shareholdings). As a policy, exchange listed shares(strategic shareholdings), in accordance with the “Guidelines for the Holding and Management of Exchange Listed Shares,”are held only if judged to contribute to sustained growth and medium- to long-term corporate value enhancement. Individual
investment securities, including unlisted stocks, are subject to verification of their holding purpose and rationale, etc. andreported each year to the Board of Directors for comprehensive deliberation regarding the justification of their holding.
Verification of shareholding rationale includes verification that benefits and risks resulting from the shareholdings areproportionate to the cost of capital.
Operating payables, such as trade notes and accounts payables, are generally payable within one year. Some arise inconnection with the import of raw materials and goods that are denominated in foreign currencies. The Company uses
foreign currency forward contracts to reduce foreign currency fluctuation risk that arises from operating payables in foreign
currencies.
The Group primarily uses loans to procure operating funds and lease receivables from finance leases to raise funds forcapital expenditure. When the loans have floating interest rates, the Company is exposed to interest rate fluctuation risk.
Floating rate borrowings are associated with the risk of fluctuations in interest rates. For the long-term portion of suchborrowings, derivative transactions (interest swap transactions) are used as hedging instruments in order to fix the amount ofinterest expenses. Since the requirements for special treatment for interest rate swaps are satisfied, the Company uses the
special treatment for the assessment of hedge effectiveness. To minimize counterparty risk, the Company follows its
derivative transaction rules and enters such transactions only with highly rated financial institutions.
The Company is exposed to liquidity risk arising from its operating obligations and loan payables. To minimize this risk,
the Accounting Department prepares statements of cash flows based on other divisions’ reports and regularly updates thestatements. The consolidated subsidiaries also manage liquidity risk in accordance with the methods used by the Company.
③ Supplementary explanation on fair values of financial instruments
The fair values of financial instruments include values based on market prices or reasonably calculated values whenmarket prices are not available. Because a variety of factors, some of which are variable, are taken into account whencalculating the values, the adoption of different assumptions may result in different values.
The contract amounts of the derivative transactions stated in “(2) Fair value of financial instruments” do not reflect themarket risk involved in the derivative transactions themselves.

14

(2) Fair value of financial instruments
The following table shows consolidated balance sheet amounts, fair value and any difference between book value and fairvalue as of 31st March 2019. However, financial instruments whose fair values were deemed difficult to determine are notincluded in the table (refer below to (*2)).
Millions of yen① Cash and time deposits ���������������������������
② Trade notes and accounts receivable ��������
③ Investment securities
Available-for-sale securities ��������������������
Total assets ��������������������������������������������
① Trade notes and accounts payable ������������
② Short-term borrowings ����������������������������
③ Long-term debt ��������������������������������������
④ Lease obligations �����������������������������������
Total liabilities ���������������������������������������
Derivatives (*) ���������������������������������������

Consolidatedbalance sheet
amounts

Fair value¥ 8,127
30,700¥ 8,127
30,70012,25651,08323,058
6,380
5,899
5,738
41,075
12

12,25651,08323,058
6,380
5,891
5,776
41,105
12

Thousands of U.S. dollars (Note 1)
2019
Consolidated
Difference balance sheet
amounts¥

Fair value

Difference––$ 73,216
276,577$ 73,216
276,577

$

–
–

–
–
–
–
(8)
38
30
–

110,415460,208
207,730
57,47753,144
51,694370,045
108

110,415460,208
207,730
57,47753,07252,036370,315
108

–
–
–
–
(72)
342
270
–

(*) Derivative assets and liabilities are presented on a net basis.
(*1) Determination of fair value for financial instruments and matters concerning securities and derivative transactions
ASSETS① Cash and time deposits and ② Trade notes and accounts receivable
The fair value of these items are stated at book value. Because these instruments are settled in a short period oftime, book value approximates fair value.
③ Investment securities
The fair value of these securities are based on prices on securities exchanges. For information on securities
classified by the purpose for which they are held, refer to Note 4,“Securities.”
LIABILITIES① Trade notes and accounts payable and ② Short-term borrowings
The fair value of these items are stated at book value. Because these instruments are settled in a short period oftime, book value approximates fair value.
③ Long-term debt and ④ Lease obligations
To calculate the fair value of these items, the combined amount of principal and interest is discounted by theinterest rate considered applicable to similar new loans or lease transactions. For the fair value of long-term debt withfloating interest rates subject to special treatment for interest rate swaps, the combined amount of principal andinterest processed as a single item with the interest swap is calculated by discounting a reasonably estimated interest
rate considered applicable to similar new loans.
DERIVATIVES
Refer to Note 5, “Derivative financial instruments and hedging transactions.”

15

(*2) Financial instruments whose fair values were deemed extremely difficult to determine
Millions of yen

Category
Unlisted stocks ...................................................................
Affiliates .............................................................................

Thousands of U.S. dollars (Note 1)
2019
Consolidated balance sheet amounts Consolidated balance sheet amounts
¥ 42
$ 378
17
153

Since no market prices were available for the above financial instruments and their fair values were difficult to determine byan estimation of the future cash flows, these items were not included in “③Investment securities-Available-for-sale securities.”( *3) Estimated redemption amounts of monetary assets and available-for-sale securities with maturity dates after the
consolidated balance sheet dateMillions of yen

Thousands of U.S. dollar (Note 1)
2019
Over fiveyears

Within one
year¥ 8,127
30,700Over one year
but within
five years
–
–

–
–

–
¥ 38,827––––

Within one
year
Cash and time deposits ..............................
Trade notes and accounts receivable .........
Investment securities
Available-for-sale securities withmaturity dates (bonds) .............................
Total ..........................................................

Over fiveyears$ 73,216
276,577

Over one year
but within
five years–––$ 349,793

–
–

–
–

–
–

(*4) For estimated repayment amounts of long-term debt, lease obligations and other interest bearing debt, refer to Note 7,“Short-term borrowings, long-term debt and lease obligations.”
The following table shows consolidated balance sheet amounts, fair value and any difference between book value and fairvalue as of 31st March 2018. However, financial instruments whose fair values were deemed difficult to determine are
not included in the table (refer below to (*2)).

16

Millions of yen
2018
Consolidatedbalance sheet Fair value
amounts¥ 8,710¥ 8,710① Cash and time deposits ........................
29,04929,049② Trade notes and accounts receivable ....
③ Investment securities
Available-for-sale securities ................
14,054
14,054
Total assets ...........................................
51,81351,81323,33023,330① Trade notes and accounts payable .......
5,130
5,130
② Short-term borrowings .........................
4,728
4,722
③ Long-term debt ....................................
5,057
5,081
④ Lease obligations .................................
Total liabilities .....................................
38,24538,263
Derivatives (*) ......................................
(13)
(13)
(*) Derivative assets and liabilities are presented on a net basis.

Difference
¥ –
–
–
–
–
–
(6)
24
18
–

(*1) Determination of fair value for financial instruments and matters concerning securities and derivative transactions
ASSETS① Cash and time deposits and ② Trade notes and accounts receivable
The fair value of these items are stated at book value. Because these instruments are settled in a short period oftime, book value approximates fair value.
③ Investment securities
The fair value of these securities are based on prices on securities exchanges. For information on securities
classified by the purpose for which they are held, refer to Note 4, “Securities.”
LIABILITIES① Trade notes and accounts payable and ② Short-term borrowings
The fair value of these items are stated at book value. Because these instruments are settled in a short period oftime, book value approximates fair value.
③ Long-term debt and ④ Lease obligations
To calculate the fair value of these items, the combined amount of principal and interest is discounted by theinterest rate considered applicable to similar new loans or lease transactions. For the fair value of long-term debt withfloating interest rates subject to special treatment for interest rate swaps, the combined amount of principal andinterest processed as a single item with the interest swap is calculated by discounting a reasonably estimated interest
rate considered applicable to similar new loans.
DERIVATIVES
Refer to Note 5, “Derivative financial instruments and hedging transactions.”(*2) Financial instruments whose fair values were deemed extremely difficult to determine
Millions of yen
2018
Category

Consolidated balance sheet amounts

Unlisted stocks .....................................................................

¥ 44

17

Since no market prices were available for the above financial instruments and their fair values were difficult to determine byan estimation of the future cash flows, these items were not included in “③ Investment securities-Available-for-sale securities.”(*3) Estimated redemption amounts of monetary assets and available-for-sale securities with maturity dates after the
consolidated balance sheet dateMillions of yen
2018
Over
one year Over five
Within one
but within
years
year
five years
Cash and time deposits ...................................
Trade notes and accounts receivable ..............
Investment securities
Available-for-sale securities withmaturity dates (bonds) .................................
Total ...............................................................

¥ 8,71029,049

–

–

–

–

–

–

–

¥ 37,759––(*4) For estimated repayment amounts of long-term debt, lease obligations and other interest bearing debt, refer to Note 7,“Short-term borrowings, long-term debt and lease obligations.”
4. Securities
The following tables summarize historical costs and book values (fair values) of available-for-sale securities with available
fair market values as of 31st March 2019 and 2018.
Securities with book values
exceeding historical cost:

Millions of yen

TypeHistorical
cost

2019
Book
value

Equity securities ........................
Bonds ........................................
Others ........................................
Total ..........................................

¥ 4,599––¥ 4,599¥ 12,121––¥ 12,121

Historical
cost

2019
Book
value

Securities with book values
not exceeding historical cost:
Type
Equity securities ......................
Bonds .......................................
Others .......................................
Total ..........................................

¥ 167
–
–
¥ 167

¥ 135
–
–
¥ 135

Thousands of U.S. dollars (Note 1)

Gain

Historical
cost

2018
Book
value

¥ 7,522––¥ 7,522¥ 4,909––¥ 4,909¥ 13,977––¥ 13,977

Loss

Historical
cost

2018
Book
Value

¥ (32)––¥ (32)

¥ 77
–
–
¥ 77

¥ 77
–
–
¥ 77

2019
Book
value

Gain

Historicalcost¥ 9,068––¥ 9,068$ 41,432 $ 109,198––––$ 41,432 $ 109,198

Loss

Historical
cost

2019
Book
value

$ 1,505––$ 1,505$ 1,217––$ 1,217

¥ (0)
–
–
¥ (0)

Gain
$ 67,766––$ 67,766Loss$ (288)––$ (288)Unlisted stocks (carrying amount of ¥42 million ($378 thousand)) as of 31st March 2019 and unlisted stocks (carrying amountof ¥44 million) as of 31st March 2018, and stocks of subsidiaries and affiliates (carrying amount of ¥17 million ($153 thousand))as of 31st March 2019 were not included in the above table as no market prices for these securities were available and their fairvalues were deemed extremely difficult to determine by an estimation of the future cash flows.

18

Available-for-sale securities
sold during the year:
Type

Millions of yen
Proceeds

Equity securities ....................
Bonds ....................................
Others ....................................
Total ......................................

¥ 533
–
–
¥ 533

2019
Gains
on salesLosseson salesProceeds

¥ 281
–
–
¥ 281

–
–
–
–

¥ 545
–
–
¥ 545

Thousands of U.S. dollars (Note 1)
2018
Gains
on salesLosseson salesProceeds

¥ 351
–
–
¥ 351

–
–
–
–

$ 4,802––$ 4,8022019
Gains
on salesLosseson sales$ 2,532––$ 2,532––––

The Group recognized impairment loss on investment securities categorised as other securities with market value in theamount of ¥2 million ($18 thousand) for the year ended 31st March 2019.
The Group recognized impairment loss on investment securities categorised as other securities with market value in theamount of ¥4 million for the year ended 31st March 2018.
When the value of stocks depreciated from 30% to 50%, the Company determined impairment loss by analyzing theoperational performance of the issuing entities based on prevailing financial data and market value information such as
discrepancies between the book value and the highest or lowest market value during the year.
5. Derivative financial instruments and hedging transactions
Derivative financial instruments and hedging transactions at 31st March 2019 were as follows:(1) Currency related
Millions of yen
Hedge accounting
methodAlternative method

Thousands of U.S. dollars (Note 1)
2019
Contract
amounts

Transaction types

Major hedged
items

Contract
amounts

Due overone year

Fair
value

Foreign exchange trading
On purchased
U.S. dollar
Total

Accounts
payable¥ 1,595–(*) ¥ 12

¥ 1,595

–

¥ 12



Due overone year

Fair
value

$ 14,369–$ 108$ 14,369–$ 108(*) Fair value is based on information provided by financial institutions at the end of the fiscal year.
(2) Interest related
Millions of yen
Hedge accounting
methodSpecial treatment

Thousands of U.S. dollars (Note 1)
2019
Contract
amounts

Transaction types

Major hedged
items

Contract
amounts

Due overone year

Fair
value

Due overone year

Fair
value

Interest rate swaps
Pay fixed,
receive floating
Total

Long-term
debt

¥ 246

–

(*) –

$ 2,216

–

–

¥ 246

–

–

$ 2,216––(*) According to the special treatment for interest rate swaps as applied to integrated and long-term debt, the fair value of thederivative financial instrument is included in the fair value of the long-term debt.

19

Derivative financial instruments and hedging transactions at 31st March 2018 were as follows:(1) Currency related
Millions of yen
Hedge accounting
methodAlternative method

Transaction types

Major hedged
items

Contract
amounts2018
Due overone year

Foreign exchange trading
On purchased
U.S. dollar
Total

Accounts
payable¥ 1,300–¥ 1,300

–

Fair
value
(*) ¥ (13)¥ (13)(*) Fair value is based on information provided by financial institutions at the end of the fiscal year.
(2) Interest related
Millions of yen
Hedge accounting
methodSpecial treatment

Transaction types

Major hedged
items

Contract
amounts2018
Due overone year

Fair
value

Interest rate swaps
Pay fixed,
receive floating
Total

Long-term
debt

¥ 590

¥ 492

(*) –

¥ 590

¥ 492

–

(*) According to the special treatment for interest rate swaps as applied to integrated and long-term debt, the fair value of thederivative financial instrument is included in the fair value of the long-term debt.
6. Inventories
Inventories at 31st March 2019 and 2018 consisted of the following:Thousands of
U.S. dollars (Note 1)

Millions of yen
Finished goods and merchandise ������������������������������������������������������������
Work in progress �������������������������������������������������������������������������������������
Raw materials and supplies ���������������������������������������������������������������������

2019

2018

2019

¥ 9,242592
5,938¥ 15,772¥ 9,000
513
6,537¥ 16,050$ 83,261
5,333
53,496$ 142,090

The balance of inventories at the end of the fiscal year is the amount after a reduction of book value in line with a decline inprofitability, and the following loss on valuation of inventories is included in cost of sales. The amount below has been offset
against reversal amounts:
Thousands of
U.S. dollars (Note 1)

Millions of yen
2019
Loss on valuation of inventories �������������������������������������������������������������

20¥ (98)

2018
¥ 65

2019
$ (883)

7. Short-term borrowings, long-term debt and lease obligations
Short-term borrowing at 31st March 2019 and 2018 consisted of short-term notes, which generally mature within one year,with average interest rates of 0.43% and 0.45%, respectively.
Long-term debt at 31st March 2019 and 2018 consisted of the following:
Millions of yen
2019
2018
Loans from banks, insurance companies and otherfinancial institution at 0.16% to 1.11% maturing through 2028
Secured ����������������������������������������������������������������������������������������������������
Unsecured �����������������������������������������������������������������������������������������������
Less current portion ��������������������������������������������������������������������������������

¥

214
5,685
5,899
(1,927)¥ 3,972

Thousands of
U.S. dollars (Note 1)
2019

¥

388
4,340
4,728
(1,669)¥ 3,059$ 1,928
51,21653,144(17,360)$ 35,784

The aggregate annual maturities of long-term debt as of 31st March 2019 were as follows:

Years ending 31st March,2020 ������������������������������������������������������������������������������������������������
2021 ������������������������������������������������������������������������������������������������
2022 ������������������������������������������������������������������������������������������������
2023 ������������������������������������������������������������������������������������������������
2024 ������������������������������������������������������������������������������������������������
2025 and thereafter �������������������������������������������������������������������������

Millions of yen

Thousands of U.S. dollars (Note 1)

2019

2019
¥ 1,927
1,447
1,263
774
442
46
¥ 5,899$ 17,360
13,036
11,378
6,973
3,982
415
$ 53,144

The aggregate annual maturities of lease obligations as of 31st March 2019 were as follows:

Years ending 31st March,2020 ������������������������������������������������������������������������������������������������
2021 ������������������������������������������������������������������������������������������������
2022 ������������������������������������������������������������������������������������������������
2023 ������������������������������������������������������������������������������������������������
2024 ������������������������������������������������������������������������������������������������
2025 and thereafter �������������������������������������������������������������������������

21

Millions of yen

Thousands of U.S. dollars (Note 1)

2019

2019
¥ 1,088
753
728
808
700
1,661
¥ 5,738$ 9,802
6,784
6,559
7,279
6,306
14,964$ 51,694

8. Pledged assets
Assets were pledged as collateral for the current portion of long-term debt of ¥38 million ($342 thousand) and long-term debtof ¥176 million ($1,586 thousand) as of 31st March 2019 and for short-term borrowings of ¥450 million, the current portion of
long-term debt of ¥39 million and long-term debt of ¥349 million as of 31st March 2018. The assets pledged are summarized asfollows:

Land ��������������������������������������������������������������������������������������������������������
Buildings and structures ��������������������������������������������������������������������������
Machinery and equipment �����������������������������������������������������������������������

Millions of yen
2019
2018
¥ 4
¥ 468
53
768
108
147
¥ 165
¥ 1,383

Thousands of
U.S. dollars (Note 1)
2019
$ 36
477
973
$ 1,486

9. Overdraft agreements
The Company and its consolidated subsidiaries have signed overdraft agreements with their correspondent banks to efficiently
procure working capital. The unrealized borrowings under these agreements at the end of the period were as follows:

Total amounts in the overdraft agreements����������������������������������������������
Borrowing balance ����������������������������������������������������������������������������������
Difference ������������������������������������������������������������������������������������������������

Millions of yen
2019
2018
¥ 22,250¥ 22,300
6,280
5,030
¥ 15,970¥ 17,270

Thousands of
U.S. dollars (Note 1)
2019$ 200,451
56,577$ 143,874

10. Retirement benefits(1) Outline of retirement benefit plans adopted
The Company and its consolidated subsidiaries have defined benefit corporate pension plans (fund type) and lump-sum
retirement allowance plans as well as defined contribution plans. In the case of certain defined contribution plans, employees canselect a defined contribution plan or advanced payment of retirement benefits. In some cases, additional severance benefits may
be paid to the employees upon retirement.
(2) Defined Benefit Obligation① The changes in retirement benefit obligation for the fiscal years ended 31st March 2019 and 2018 (excluding thosefor which the simplified method was applied) were as follows:

Beginning balance of retirement benefit obligation ��������������������������������
Service cost - benefits earned during the year ����������������������������������������
Interest cost on projected benefit obligation �������������������������������������������
Actuarial gains and losses �����������������������������������������������������������������������
Retirement benefits paid �������������������������������������������������������������������������
Ending balance of retirement benefit obligation �������������������������������������

22

Millions of yen
2019
2018
¥ 14,018¥ 14,374
348
376
112
115
134
54
(860)
(901)
¥ 13,752¥ 14,018

Thousands of
U.S. dollars (Note 1)
2019$ 126,288
3,135
1,009
1,208
(7,748)$ 123,892

② The changes in plan assets for the fiscal years ended 31st March 2019 and 2018 (excluding those for which the simplified
method was applied) were as follows:

Beginning balance of plan assets ������������������������������������������������������������
Expected return on plan assets ����������������������������������������������������������������
Actuarial gains and losses �����������������������������������������������������������������������
Contribution from the employer �������������������������������������������������������������
Retirement benefits paid �������������������������������������������������������������������������
Ending balance of plan assets �����������������������������������������������������������������

Millions of yen
2019
2018
¥ 14,434¥ 14,187
433
426
(375)
135
413
410
(596)
(724)
¥ 14,309¥ 14,434

Thousands of
U.S. dollars (Note 1)
2019$ 130,036
3,901(3,378)3,721(5,370)$ 128,910③ The changes in liabilities for retirement benefits of the plans for which the simplified method was applied for the fiscal years
ended 31st March 2019 and 2018 were as follows:

Beginning balance of liabilities for retirement benefits ��������������������������
Retirement benefit expenses �������������������������������������������������������������������
Retirement benefits paid �������������������������������������������������������������������������
Ending balance of liabilities for retirement benefits �������������������������������

Millions of yen
2019
2018
¥ 1,209¥ 1,110
134
137
(68)
(38)
¥ 1,275¥ 1,209

Thousands of
U.S. dollars (Note 1)
2019$ 10,892
1,207
(613)
$ 11,486④ Reconciliation between the ending balance of projected benefit obligation and plan assets and liability and asset for
retirement benefits recorded in the consolidated balance sheet

Funded retirement benefit obligation ������������������������������������������������������
Plan assets �����������������������������������������������������������������������������������������������
Unfunded retirement benefit obligation ��������������������������������������������������
Net liability (asset) for retirement benefits recordedin the consolidated balance sheet �����������������������������������������������������������
Liabilities for retirement benefits ������������������������������������������������������������
Net liability (asset) for retirement benefits recordedin the consolidated balance sheet �����������������������������������������������������������
Note: The plans to which the simplified method is applied are included.

23

Millions of yen
2019
2018
¥14,315¥ 14,465(14,309)(14,434)
6
31
712
762
718
718
¥

718

Thousands of
U.S. dollars (Note 1)
2019$128,964(128,910)
54
6,414

793
793
¥

793

6,468
6,468
$

6,468

⑤ The components of retirement benefit expenses were as follows:

Service cost - benefits earned during the year ����������������������������������������
Interest cost on projected benefit obligation �������������������������������������������
Expected return on plan assets ����������������������������������������������������������������
Amortisation of actuarial differences ������������������������������������������������������
Retirement benefit expenses calculated using the simplified method �����
Retirement benefit expenses on defined benefit plans ����������������������������
Special retirement expenses (*) ��������������������������������������������������������������

Millions of yen
2019
2018
¥347
¥374
112
115
(433)
(426)
383
617
134
137
¥543
¥817
¥182
¥26

Thousands of
U.S. dollars (Note 1)
2019$3,126
1,009(3,901)3,451
1,207$4,892$1,640(*) Recorded under other expenses. Special retirement expenses for the fiscal year ended 31st March 2018 consisted of lump-sum
payments to employees who were transferred to a consolidated subsidiary. Special retirement expenses for the fiscal year
ended 31st March 2019 consisted of extra retirement payments for retirees under early retirement schemes and lump-sum
payments to employees who were transferred to a consolidated subsidiary.
⑥ Adjustments for retirement benefits
The components of adjustments for retirement benefits (before tax effect) were as follows:

Actuarial gains and losses �����������������������������������������������������������������������
Total ��������������������������������������������������������������������������������������������������������

Millions of yen
2019
2018
¥ (126)¥ 698¥ (126)¥ 698

Thousands of
U.S. dollars (Note 1)2019$ (1,135)$ (1,135)⑦ Accumulated adjustments for retirement benefits
The components of accumulated adjustments for retirement benefits (before tax effect) were as follows:

Unrecognised actuarial gains and losses �������������������������������������������������
Total ��������������������������������������������������������������������������������������������������������

24

Millions of yen
2019
2018
¥ 1,100¥ 974¥ 1,100¥ 974

Thousands of
U.S. dollars (Note 1)2019$ 9,910$ 9,910

⑧ Plan assets
The components of plan assets were as follows:2019
Debt securities ���������������������������������������������������������������������������������
Alternatives �������������������������������������������������������������������������������������
Equity securities ������������������������������������������������������������������������������
General account ������������������������������������������������������������������������������
Short-term assets �����������������������������������������������������������������������������
Total ������������������������������������������������������������������������������������������������

2018
44.1%
24.0
21.7
7.9
2.3
100.0%

45.6%
24.3
20.7
7.8
1.6
100.0%

Note: Regarding alternatives, hedge fund investments are made for the purpose of risk diversification.
Method of determining long-term expected rate of return
The long-term expected rate of return on plan assets is determined by taking into consideration the allocation of plan
assets which are expected currently and in the future and the long-term rates of return which are expected currently and in
the future from the various components of the plan assets.
⑨ Assumptions used for actuarial calculations for the fiscal years ended 31st March 2019 and 2018 were as follows:
2019
Discount rate �����������������������������������������������������������������������������������
Long-term expected rate of return ��������������������������������������������������
Expected rate of salary increase:
Lump-sum payment plans ��������������������������������������������������������������

2018
0.8%
3.0

0.8%
3.0

4.6

4.6

Note: Because the defined benefit corporate pension plan (fund type) is a fixed amount system (point system) based on thenumber of years of service, the expected rate of salary increase is not used.
(3) Define Contribution Plans
The amount of required contribution to the defined contribution plans of the Companies was ¥268 million ($2,414 thousand)for the year ended 31st March 2019 and ¥289 million for the year ended 31st March 2018.
11. Income taxes
Income taxes applicable to the Company and its domestic consolidated subsidiaries comprise corporate taxes, inhabitants
taxes and enterprise taxes which, in the aggregate, resulted in a statutory tax rate of 30.6% and 30.9% for the years ended 31st
March 2019 and 2018, respectively.

25

The following table summarises the significant differences between the statutory income tax rate and the Companies’ effective
tax rate for financial statement purposes for the years ended 31st March 2019 and 2018.

Statutory tax rate ��������������������������������������������������������������������������������������������������������������������
Nondeductible expenses, including entertainment expenses �������������������������������������������
Nontaxable income, including dividend received ������������������������������������������������������������
Per capita inhabitants tax �������������������������������������������������������������������������������������������������
Changes in valuation allowance ���������������������������������������������������������������������������������������
Tax credit for testing and research expenses ��������������������������������������������������������������������
Tax rate difference between the Company and consolidated subsidiaries �����������������������
Other ���������������������������������������������������������������������������������������������������������������������������������
Effective tax rate ��������������������������������������������������������������������������������������������������������������������

2019
30.6%
1.7
(0.7)
4.2
2.3
(2.1)
3.4
(0.4)
39.0%

2018
30.9%
1.4
(0.5)
3.5
2.5
(2.5)
2.8
0.5
38.6%

Significant components of the Companies’ deferred tax assets and liabilities as of 31st March 2019 and 2018 were as follows:

Deferred tax assets:
Loss on impairment of assets ������������������������������������������������������������
Accounts payable on distribution expenses ��������������������������������������
Allowance for bonuses ����������������������������������������������������������������������
Loss carryforwards (*2) ��������������������������������������������������������������������
Long-term trade receivables ��������������������������������������������������������������
Liabilities for retirement benefits ������������������������������������������������������
Denied sales discounts ����������������������������������������������������������������������
Allowance for doubtful accounts ������������������������������������������������������
Other �������������������������������������������������������������������������������������������������
Total deferred tax assets ��������������������������������������������������������������������������
Valuation allowance for loss carryforward (*2) ��������������������������������
Valuation allowance for deductible temporary differences ���������������
Total valuation allowance (*1) ����������������������������������������������������������
Net deferred tax assets ����������������������������������������������������������������������������
Deferred tax liabilities:
Unrealised gains on securities �����������������������������������������������������������
Reserve for property, plant and equipment ���������������������������������������
Other �������������������������������������������������������������������������������������������������
Total deferred tax liabilities ��������������������������������������������������������������������
Net deferred tax assets ����������������������������������������������������������������������������

Millions of yen
2019
2018
¥ 912
¥ 968
383
335
295
307

Thousands of
U.S. dollars (Note 1)
2019$ 8,216
3,450
2,658

292

175

2,631

215
199
153
47
502
¥ 2,998(229)(1,289)(1,518)
1,480

215
225
136
49
522
¥ 2,932––(1,460)
1,472

1,937
1,793
1,378
423
4,523
$ 27,009(2,063)(11,613)(13,676)
13,333(2,219)(30)(195)(2,444)¥ (964)(2,675)(31)(201)(2,907)¥ (1,435)(19,991)(270)(1,757)(22,018)$ (8,685)(*1) Valuation allowance increased ¥58 million ($523 thousand) year on year. This was mainly due to a ¥38 million ($342
thousand) decrease in unschedulable future deductible temporary differences, such as loss on impairment of assets, and an¥88 million ($793 thousand) increase in tax loss carryforwards at the Company.

26

(*2) Loss carryforward and its deferred tax assets by expiration periods.

Millions of yen
2019
2020
Loss carryforwards (a) ..............
Valuation allowance ..................
Deferred tax assets ....................

¥

2021
32
(9)
23

¥

24
(24)
–

2022
¥

13
(13)
–

2023
¥

10
(10)
–

2024
¥

11
(11)
–

2025 and
thereafter
202
¥

Total
¥

(162)
40

292
(229)
(b) 63Thousands of U.S. dollars (Note 1)
2019
2020
Loss carryforwards (a) ..............
Valuation allowance ..................
Deferred tax assets ....................

$

289
(81)
208

2021
$

216
(216)
–

2022
$

117
(117)
–

2023
$

90
(90)
–

2024
$

99
(99)
–

2025 and
thereafter$ 1,820(1,460)
360

Total
$

2,631
(2,063)(b) 568(a) Loss carryforwards shown in the above table are after multiplying the statutory tax rate.
(b) With respect to ¥292 million ($2,631 thousand) in tax loss carry forwards (after application of the statutory tax rate), ¥63
million ($568 thousand) in deferred tax asset has been recognised. This ¥63 million ($568 thousand) in deferred tax assets
was recognised as loss carryforwards recoverable based on projected future taxable income out of the ¥292 million($2,631 t h o u s a n d) balance in tax loss carryforwards (mainly inhabitants tax and enterprise tax) (after application of thestatutory tax rate) at the Company and six consolidated subsidiaries.
(Changes in presentation method)
Since the amount of “Denied sales discounts” included in “Other” in deferred tax assets in the previous year has grown in
financial importance relative to total deferred tax assets, this item is stated separately from the current year. To reflect this change
in presentation, notes for the previous year have been reclassified. As a result, ¥658 million in “Other” in deferred tax assets forthe previous year has been reclassified as ¥136 million in “Denied sales discounts” and ¥522 million in “Other.”
12. Contingent liabilities
There are no matters to be reported.
13. Net assets
Under the Japanese laws and regulations, the entire amount paid for new shares is required to be designated as common stock.
However, a company may, by a resolution of the Board of Directors, designate an amount not exceeding one half of the price ofthe new shares as additional paid-in capital, which is included in capital surplus. Under the Japanese Corporate Law (“the Law”),
in cases in which a dividend distribution of surplus is made, the smaller of an amount equal to 10% of the dividend or the excess,if any, of 25% of common stock over the total of additional paid-in capital and legal earnings reserve must be set aside asadditional paid-in capital or legal earnings reserve. Legal earnings reserve is included in retained earnings in the accompanying
consolidated balance sheets. Under the Law, both of these appropriations generally require a resolution of the shareholders’ meeting.
Additional paid-in capital and legal earnings reserve may not be distributed as dividends. Under the Law, all additional paid-in
capital and all legal earnings reserve may be transferred to other capital surplus and retained earnings, respectively, which arepotentially available for dividends. The maximum amount that the Company can distribute as dividends is calculated based on thenonconsolidated financial statements of the Company in accordance with Japanese laws and regulations.

27

At the general shareholders’ meeting held on 27th June 2019, appropriations of retained earnings for year-end dividends
applicable to the year ended 31st March 2019 were duly approved as follows:
Millions of yen

Thousands of U.S. dollars

2019

2019

Cash dividends: ¥35.00 ($0.32) per share ���������������������������������������

¥ 890$ 8,018

Millions of yen
2018
Cash dividends: ¥8.00 per share �����������������������������������������������������

¥ 1,021

Note: Dividends per share for the previous year is stated based on the number of shares prior to the share consolidation
implemented on 1st October 2018.
14. Selling, general and administrative expenses
Main items and amounts are as follows:

Distribution expenses ������������������������������������������������������������������������������
Salaries and allowances ��������������������������������������������������������������������������
Retirement benefit expenses �������������������������������������������������������������������
Allewance for bonuses�����������������������������������������������������������������������������
Provision of allowance for doubtful accounts �����������������������������������������

Millions of yen
2019
2018
¥ 28,665¥ 27,159
6,879
7,052
489
681

Thousands of
U.S. dollars (Note 1)
2019$ 258,243
61,973
4,405

457

485

4,117

15

1

135

Research and development expenses included in selling, general and administrative expenses for the years ended 31st March
2019 and 2018 were ¥852 million ($7,676 thousand) and ¥963 million, respectively.
15. Loss on impairment of assets
The Company recorded impairment loss on certain asset groups for the year ended 31st March 2019. The Company classified
fixed assets into four categories: business assets, rental assets, idle assets and artwork. The Company groups its business assets bycash generating units and rental assets, idle assets and artwork by individual asset as these represent the smallest identifiable
assets generating cash inflows. The Company records impairment loss for rental assets and idle assets when the original carrying
amount is below the estimated recoverable amount. The total impairment loss for the year ended 31st March 2019 consisted of¥27 million ($243 thousand) for investment and rental properties (Investments and other assets “Other”).
The recoverable value of rental assets is measured by the net realisable value or the value in use. The recoverable value of idle
assets is measured by the net realisable value. The net realisable value is assessed based on the appraisal value, etc. and value in
used is calculated by discounting future cash flows by 3.0%.
The Company recorded impairment loss on certain asset groups for the year ended 31st March 2018. The Company
classified fixed assets into four categories: business assets, rental assets, idle assets and artwork. The Company groups its businessassets by cash generating units and rental assets, idle assets and artwork by individual asset as these represent the smallest
identifiable assets generating cash inflows. The Company records impairment loss for idle assets when the original carrying
amount is below the estimated recoverable amount. The total impairment loss for the year ended 31st March 2018 consisted of¥16 million for investment and rental properties (Investments and other assets “Other”).
The recoverable amounts for idle assets were measured based on value in exchange, which was determined using independent
appraisals.

28

16. Segment information(1) Overview of the reportable segments① Method for determining reportable segments
The Group’s reportable segments are determined based on the availability of separate financial information for suchsegments that is examined periodically by the Board of Directors to make decisions regarding the allocation of management
resources and to assess business performance. The Group has divided its business operations into two reportable segments
and an “Other” segment. Its reportable segments are “the Processed Food Products” segment and “the Meat Products”
segment.
② Description of the businesses that constitute each reportable segment
In the Processed Food Products segment, the Company purchases, manufactures and sells ham, sausage and cooked andprocessed foods. In the Meat Products segment, the Company purchases, manufactures and sells meat products.
(2) Methods of measurement for sales, profit (loss), assets, liabilities and other items for each reportable segment
Accounting policies adopted by the reportable segments are identical to those described in Note 2, “Significant
Accounting Policies. ”
The Company has applied the Partial Amendments to Accounting Standard for Tax Effect Accounting (ASBJ Statement
No. 28, 16th February 2018) from the current year and has changed the method of presentation. The figures for segment
assets for the previous year have been reclassified to reflect the change in the method of presentation.
(3) Segment information for the years ended 31st March 2019 and 2018
Segment information as of and for the fiscal year ended 31st March 2019 was as follows:
Millions of yen
2019
Reportable segments
Processed
Meat
Total
Food Products
Products

Sales:
Sales to third parties ...................... ¥ 169,388–
Intersegment sales and transfers���
169,388
Net sales ���������������������������������������
781
Segment income ���������������������������
89,257
Segment assets �����������������������������
Other items:
6,097
Depreciation and amortisation (*4)...
Increase in property, plant andequipment and intangible
9,160
assets (*4)��������������������������������������

Other
(*1)

Total

¥ 73,482–
73,482
1,389
18,434¥ 242,870–
242,870
2,170
107,691

¥ 161
803
964
83
262

¥ 243,031
803
243,834
2,253
107,953

305

6,402

32

443

9,603

15

29

Adjustments(*2)¥

Consolidated
(*3)

–
(803)
(803)
–
24,674¥ 243,031–
243,0312,253
132,627

6,434

–

6,434

9,618

0

9,618

Thousands of U.S. dollars (Note 1)
2019
Reportable segments
Processed
Meat
Total
Food Products
Products

Sales:
Sales to third parties ��������������������� $ 1,526,018–
Intersegment sales and transfers���
Net sales ��������������������������������������� 1,526,018
7,036
Segment income ���������������������������
804,117
Segment assets �����������������������������
Other items:
54,928Depreciation and amortisation (*4)��
Increase in property, plant andequipment and intangible
82,523
assets (*4)��������������������������������������

Other
(*1)

Total

Adjustments(*2)$

Consolidated(*3)$ 662,000–
662,000
12,514
166,072$ 2,188,018–
2,188,018
19,550970,189$ 1,450
7,234
8,684
747
2,361

$ 2,189,468
7,234
2,196,702
20,297
972,550– $ 2,189,468(7,234)–(7,234)2,189,468–
20,297222,288
1,194,838

2,748

57,676288

57,964–57,964

3,991

86,514135

86,649086,649(*1) The “Other” segment is business other than that of the reportable segments and includes the insurance agency business.
(*2)	Adjustments for total assets of ¥24,674 million ($222,288 thousand) indicate assets not attributed to any other segments and comprisemainly cash and time deposits, investments in securities and investment and rental properties.
(*3)	Total segment income of the reportable segments and “Other” is equal to the operating income in the consolidated statements ofincome.
(*4)	Depreciation and amortisation and increase in property, plant and equipment and intangible assets include long-term prepaid expenses.

Segment information as of and for the fiscal year ended 31st March 2018 was as follows:
Millions of yen
2018
Reportable segments
Processed
Meat
Total
Food Products
Products

Sales:
Sales to third parties ��������������������� ¥ 165,290–
Intersegment sales and transfers���
165,290
Net sales ���������������������������������������
684
Segment income ���������������������������
85,768Segment assets �����������������������������
Other items:
5,362
Depreciation and amortisation (*4)��
Increase in property, plant andequipment and intangible
10,553
assets (*4)��������������������������������������

Other
(*1)

Total

¥ 74,137–
74,137
1,528
17,693¥ 239,427–
239,427
2,212
103,461

¥ 160
938
1,098
158
295

¥ 239,587
938
240,525
2,370
103,756

300

5,662

27

294

10,84729

Adjustments(*2)¥

Consolidated
(*3)

–
(938)
(938)
–
27,390¥ 239,587–
239,587
2,370
131,146

5,689

–

5,689

10,8760

10,876(*1) The “Other” segment is business other than that of the reportable segments and includes the insurance agency business.
(*2)	Adjustments for total assets of ¥27,390 million indicate assets not attributed to any other segments and comprise mainly cash and time
deposits, investments in securities and investment and rental properties.
(*3)	Total segment income of the reportable segments and “Other” is equal to the operating income in the consolidated statements ofincome.
(*4)	Depreciation and amortisation and increase in property, plant and equipment and intangible assets include long-term prepaid expenses.

30

(4) Information about loss on impairment of assets by reportable segment
Information about loss on impairment of assets by reportable segments as of and for the fiscal year ended 31st March 2019
was as follows:
Millions of yen
2019
Reportable segments
Processed
Meat
Total
Food Products
Products

Loss on impairment of assets �������

–

–

Other
–

Total
–

–

Adjustments

Consolidated

¥ 27

¥ 27

Adjustments

Consolidated

$ 243

$ 243

Thousands of U.S. dollars (Note 1)
2019
Reportable segments
Processed
Meat
Total
Food Products
Products–––
Loss on impairment of assets �������

Other

Total
–

–

Information about loss on impairment of assets by reportable segment as of and for the fiscal year ended 31st March 2018
was as follows:
Millions of yen
2018
Reportable segments
Processed
Meat
Total
Food Products
Products–––
Loss on impairment of assets �������

Other

Total
–

–

Adjustments

Consolidated

¥ 16

¥ 16

(5) Information about amortisation and balance of goodwill by reportable segment
Information about amortisation and balance of goodwill by reportable segment as of and for the fiscal year ended 31st March
2019 was as follows:
Millions of yen
2019
Reportable segments
Processed
Meat
Total
Food Products
Products¥3–¥3
Amortisation of goodwill �������������
3–
3
Balance of goodwill ���������������������

31

Other

Total
–
–

¥3
3

Adjustments

Consolidated

–
–

¥3
3

Thousands of U.S. dollars (Note 1)
2019
Reportable segments
Processed
Meat
Total
Food Products
Products
$ 27
–
$ 27
Amortisation of goodwill �������������
27–
27
Balance of goodwill ���������������������

Other

Total
–
–

Adjustments

Consolidated

–
–

$ 27
27

$ 27
27

Information about amortisation and balance of goodwill by reportable segment as of and for the fiscal year ended 31st March2018 was as follows:
Millions of yen
2018
Reportable segments
Processed
Meat
Total
Food Products
Products

Amortisation of goodwill �������������
Balance of goodwill ���������������������

Other

Total

Adjustments

Consolidated

¥3

–

¥3

–

¥3

–

¥3

5

–

5

–

5

–

5

17. Cash flow information
The reconciliation of cash and time deposits in the consolidated balance sheets and cash and cash equivalents in the
consolidated statements of cash flows as of 31st March 2019 and 2018 was as follows:

Cash and time deposits in the consolidated balance sheets ��������������������Cash and cash equivalents in the consolidated statements of cash flows ����

Millions of yen
2019
2018
¥ 8,127¥ 8,710¥ 8,127¥ 8,710

Thousands of
U.S. dollars (Note 1)
2019$ 73,216$ 73,216

Significant non-cash transactions as of 31st March 2019 and 2018 were as follows:
Newly recorded assets and liablities related to finance lease transactions were as follows:

Lease assets and obligations��������������������������������������������������������������������

32

Millions of yen
2019
2018
¥ 1,705¥ 1,253

Thousands of
U.S. dollars (Note 1)
2019$ 15,360

18. Comprehensive income
Amounts reclassified to profit attributable to owners of parent in the current period that were recognised in othercomprehensive income in the current or previous periods and the tax effects for each component of other comprehensive income
were as follows:
Thousands of
U.S. dollars (Note 1)
2019

Millions of yen
2019
2018
Unrealised gains (losses) on securities:
Increase (decrease) during the year ....................................................
Reclassification adjustments ..............................................................
Amount before tax effect ....................................................................
Tax effect ............................................................................................
Subtotal ..............................................................................................
Deferred gains (losses) on hedges:
Increase (decrease) during the year ....................................................
Amount before tax effect ....................................................................
Tax effect ............................................................................................
Subtotal ..............................................................................................
Adjustments for retirement benefits:
Increase (decrease) during the year ....................................................
Reclassification adjustments ..............................................................
Amount before tax effect ....................................................................
Tax effect ............................................................................................
Subtotal ..............................................................................................
Share of other comprehensive income of associates accounted for using equity method:
Increase (decrease) during the year ....................................................
Total other comprehensive income ..........................................................

33¥ (1,297)¥ 2,276(281)(1,578)456(1,122)

(351)
1,925
(569)
1,356

$ (11,685)(2,531)(14,216)
4,108(10,108)

26
26
(8)
18

(15)
(15)
5
(10)

234
234
(72)
162

(509)
383
(126)
33
(93)

81
617
698
(233)
465

(4,586)
3,451(1,135)
297
(838)

1

(2)
¥ 1,8099$ (10,775)¥ (1,196)

34

DIRECTORS AND STATUTORY AUDITORS(As of 28th June 2019)
Chairman and
Representative Director:

Tokuo Kudara

President andRepresentative Director:

Toshiharu Inoue

Senior Executive andManaging Directors:

Yoshio Kuramori

Managing Director:

Yasushi Sawada

Directors:

Shigeki Fukushima
Nobuyoshi Katoh
Kouji Mishima

Outside Directors:

Susumu Shimadzu
Keiko Kaneko

Statutory Auditor:

Yoshikazu Sawanaka

Outside Statutory Auditors:

Takuji OkudairaMotoaki Nishimura

35

OUTLINE OF THE COMPANY(As of 31st March 2019)
Established:

10th June 1958

Major Subsidiaries:
Hokkaido Marudai Food Co., Ltd.

Stated Capital:¥6,716 million

Tohoku Marudai Food Co., Ltd.
Shin-etsu Marudai Food Co., Ltd.

Number of Employees: 2,023

Chubu Marudai Food Co., Ltd.
Chu-Shikoku Marudai Food Co., Ltd.

Head Office:21-3 Midori-cho, Takatsuki-shi,

Kyushu Marudai Food Co., Ltd.

Osaka, Japan

Toda Foods Co., Ltd.
Azumino Food Co., Ltd.

Branch Office:4-7-5 Tsukiji, Chuou-ku,

Marushin Foods Co., Ltd.

Tokyo, Japan

Pioneer Foods Co., Ltd.
Umeya Co., Ltd.

Sales Offices:

The sales headquarters at the

Yahata Food Co., Ltd.

Company’s head office in Osaka

Hornmeier Co., Ltd.

controls 10 distribution centers andMarudaifood Co., Ltd.

4 regional sales departments which

Marudai Meat Co., Ltd.

service 35 local outlets.

Meat Supply Co., Ltd.
Marbest Trading Co., Ltd.

Plants:Hokkaido, Iwate,

Marudai Service Co., Ltd.

Niigata, Kanto,

8 Other subsidiaries

Ibaraki, Yokosuka, Shounan,
Shizuoka, Matsusaka,

Associated Company:

Takatsuki, Okayama,

Betagro MF Deli Co., Ltd.

Hiroshima, Karatsu

Overseas Office:

Chicago, U.S.A

36

Head Office: 21-3 Midori-cho, Takatsuki-shi, Osaka, Japan
Telephone: 81-726-61-2518 Fax: 81-726-61-5006