,″ ♂刀倉CbИぎοlt'α″″FinαИじ元ガざ′
デOFザ カ♂ノ?α F励 ″JИ ttFて J′ ,2θ fび
'力

.,L′濃
ざ″TCS力 ο″α′ο
'dings働ヵうsiEta「tes♂″ざα刀″働 刀♂οltEαぢCONSOLIDATED BALANCE SHEETSWCC SHOWA HOLDNGSCO,LTD.and Consolidattd Subsidね

hcs
2016

2016

2015

′
S9ズ
rT力 ο
"sと
ナ
′
ο
′
′
ι
s,
〔dι
rⅣ ο,つ

,Sげ 燿

lνJ〃
'ο

J,,ι

"ノ

:″

rて

ASSETS
Current assets:
Cash and timc deposits rⅣ ο′s J αИ′′秒
̀ァTrade■ o俺 s and accoun6 rccdvabに

胞′7)
rⅣ ο

ιび
Invento苗 cs r'Vο ど)
セ′り
Defe∬ cd tax assets rハ「οOherAllowancc for doubthi accounts
Total current assets¥8,097¥6,410SS6,887

45,52642お 45375,799

21,98621,096

187,220

542

445

3,94,

4,040

3,577

31,745

(63)

17)
て

(151)

80,12873,856655,449

39,48637,947

336,768

72,45570■ 85625,532

23,99323,702

210お 48

1,937

1,430

12,691(92,968)

r,4,503)(838,685)

44,90339,061

346,654

1,973

1,838

16,12

1,973

1,838

16→ 12

7,360

6,759

S,,984

Property,plant and equipment
,s∂ α
ヵと
′′
οど
て
,
脇′′
Machincry,equipmcnt and t(x)ls rプ vο セs∂ αワBuildings and structurcs rⅣ,sa′ 2α ″′′′ιLand rⅣ ο
セ

jノ

Othcr
Accumulatcd dcprcciation

Total propew,plant and equipment
lntangible assets

Other
Total intangible assets

lnvestments and other assets:7,,s名 ∂と,″ ′′′てInvcstmcnt secuitics rⅣ ο

た′Dcfcttcd tax assctt rⅣ ο
9

13

115

1,,3

11475
3,541

0thcr

1,470

た′
ο
Nct dettncd bcneit assct rⅣ ο
,

2,416

399

(227)

(150)

(1お 31)

11,0198β 1473,784¥138,023¥123,069

Sl,092,199

Allowancc for doubtfし l accounts

Totalinvestments and other asscts
Total assets

S99 Иθ
￠ο P̀J'1ノ

財α ,′ FJ,1,ヵ θ力′Sr,r̀,〃 1?η 止Ⅳο′,srO CO,sο ′
て
rて

'''g

2016

2016

2015

ク
Sα 〃
′
∫ο
ノ
仲ο
ナd′ ο :rsノこИrr,。 パ げ/ヵ)ρ

rrとr,Vο ,イ)rてLIABILITIES AND NET ASSETS
Current liabilities:¥40,378¥40,772

S361)839

23,38921,61

188,685

Accrued income taxcs

306

283

2,512

Provision for ioss on consttuction contracts

137

162

1,438

Prowision for busincss structurc improvcmcnt expcnscs

32

13

115

,s∂ と
:″ ι
ゴ′7)
′
て
Short‐ 俺m dcbtrⅣ ο

Trade notcs and accounts payablc rⅣ οセ ′7)

RcscⅣ e for surchargc
7,759

Othcr accounts payablc

Othcr
Total current liab‖ ities

0

0

8,128

72,133

3,742

3,779

33,S3775,743

74,98

660,259

Long‐ term liabilides:

18,586

148,305

537

5,014

Accrucd rctiremcntt bcnettts for dircctors and stamtory allditors

108

914

Defered tax liabintics ryvο セ ′
り

193

1,411

7)
,s∂ と
,,′ ′
′
セ
Long‐ tcHn debt rⅣ ο

Net dettncd bencSt liability rⅣ

οど
θ′0)

Dcfered tax liabilitics relatcd

37,513

4,424

4,227

1,510

1,182

10,490

Tota1 long̲term liabWines

25,35822,947

203,647

Tottl liabi‖ Ses

101,101

97→ 45

863,906

24,222

24,222214,963

5,915

5,537

49,139(395)(9,168)(31お 63)

29,727

20,575

182,597

691

567

5,032

ゴ′び
to land rcvaluation r′ Vο tts′ 2,ヵ と)
Othcr

Contiagent liabilides御 ″ιfr)

Net assets:

Shareholders'equity:

Common stocにAuthorized‐ 700,000,000 sharcs‐308,268,61l sharcs rブ Vο 舵′,)

lssucdJ)
セ′
CapitЛ surplus rⅣ ο
r̀,′ 9,Retaincd carnings rⅣ ο

,′ 砂
′
て
Treasury stock rⅣο

(1 42)(15)

Totai shareholders'equity
Accuコ nulnted other comnprehensive income:Unrcalizcd holding gains on othcr sccu● tics

Defercd galns on hcdges

(1)

(9)

S,543

49,192,′ つ′てVariancc ofland rcvaluation rⅣ ο

5,346

Forcign cu∬ ency transiation attustments

2,464

2,173

19,285(1,6■ )

(31486)(30,937)

6,890

796

42,563

305

353

3,133

Totai net assets

36,922

25,724228,293

Total liabilities and net assets¥138,023¥123,069

Sl,092,199

Remcasurements of deflncd bencfitt plans

Total accummulated other connprehensive income
NoI]‐ cOntrOWing interests

Sで ,9,′ FJヵ,どて
g′ Vο セSrο Cο ,tsο rr′ とИθθοTpα り,′ (ダ̀:,,て'Iと
'η

杉
ι
J舵 胸￠
ヵrs

CONSOLIDATED STATEMENT OF OPERATIONSSWCC SHOWA HOLDNGS CO̲,LTD and Consolidatcd Subsidiaries
2016

2016

2015

′
Sοア
,Sα η
仲ο
ど
Jd′ ο′
と∫
ノ

ο
″
seんμ
夕
〃デ
〃
rν】

J′

Vο rて ,7)rブ

Net sales
sび T″ ∬′イιCost ofsales rザ Vοど,Gross proit)
SeWing,general and administrative expenses rⅣ οrt,′ ィOpcrating incomc¥181,694¥16',713

Sl,506,150

163,532

151,984

1お 48,809

18,162

17,729157→ 41

16,925

16,778148,900

1,237

951

8,441

Other income(expenses):
57

Divldcnd incomc

152

Forcign curency cxchangc incomc(expCnscs)

260(1,061)

Inttrcst expensc(209)

Equity in losscs ofattliatcs

Gain on sales ofixed asscts

０ ＜１

Gain on bargain purchascState subsidy

,

６３．０
７卿
硼的Щ７

Intercst incomc

Loss on impainncat ofttxcd assets rプvο rθ ′568
(2,707)(8,573)(5,715)

674
275
621
(53,213)︲
纂 ８

Business structurc improvemcnt expcnses

Compensation for product(823)(7,04)(1,145)(10,162)(327)(9,571)(84,941)910(8,620)(76500〕Othcr,nethcome(loss)befOrC income taxcs and norcontЮ

595

lling inttres偽Income taxes rNο rt,fり3,478

Currcnt

525

Dcfcred

147

672

481

Income(losS)

238(9,101)

Income(losS)attributable to non‐ controMing interests

9

50

444

lncome(losS)attributabic to owners ofthe Company¥229

望(9,151)

S(81,212)

Sて ,9〃θ ,rS′ α彪,″ 9,,rS】
Jセ ′F,″ ιοCο ,,sο r,′ ι,ノ r,,=′ Vο v￠ ∫どИθθο胸ヮαン
Iと

4,268

ｒ
レ；

CONSOLIDATED STATEWIENT OF COMPREHENSIVE INCOME
SWCC SHOWA HOLDNGSCO.,LTD and Consolidated Subsidiarics
2016

2016

2015

∫げ
S,,と ′仲 ο″〕d′。 と∫)οdげ /И)
,И 〃テ

r′

(122)

Unrcalized holding gains(IoSSCS)On Othcr sccurities

Dcfcrred gains(loSSes)On hedgcs

452

Variance ofiand revaluation
Forclgn curcncy ttansiation attustments

422

Rcmeasurcmcnts ofdcined bcncit,Ians

1,791

Share ofoncr comprchcnsivc income ofarlliates in cquity mcthod
Total other comprchensive iⅡ

433
2,976

come

(S80,768)

５ ４
７
７
７ ４
９ い ８
２ ０ ・
・
２
К
住 で

Other comprehensive income rノ VOr?ク 0)

０．
︲
出

¥238

Income(Loss)(1,128)
(9)

1,748
(408)
(16,640)(2.165)(2,096)¥3,214(¥11,197)

Owncrs ofhe Company¥3,199

伴11,45)No■ ‐contr01ling inttrcsts

15

Comprehensive incomeJ′Vο r?りrブ

18,602)て(¥99お 70)

Comprehensive income attributable to

Sて ,?И

θθο,″r,,′J″gブ Vο tts rο
'ノ

デ
】
,lα И
θ J′ S′ α ,,″ ″rs.
J′と,rt,′ ′
σο″sο ′
Jとrで(ァ

(S99,796)

426

CONSOLIDATED STATEMENT OF CH△ NGESIN NET ASSETSSWCC SHOWA HOLDNGS CO,LTD and Culs(,Iidated Subsidanes

rれ r!′∫こ鴻′″=ο

Accumulated odier

Sharoiolders'eqdty

accuntJated
Comln(珀

的 Ck

ea‑3S

SuFpluS

Uば e』 12ed

TOt』

StOCk sharcholders

叩OSSCS)

Cqdty¥6,429 ¥(1,276)¥24,222D』 ance at Aptt1 1,2014

Retalned Treと,ury

Capitalholdlng gallls Ba恥

ohc「VaΠ ancc Foreign curcntt Remeasurcmcnに

平816¥4,894¥‐¥3,921

Y(3,402)¥l,613Non‐∞ntonJIBTolae u】 OrcsにoftandransiatiOn oFdemed bcnctti c(lmprchcns帝ev』 uatton adJustmenにplans
Jュ ∞me0。 SSeS)〔n sccuntes on hedBes¥29,36]平(14)DeFered¥297¥33,579aЩ lunttB pOlicy
T〔 ansfc「 to fetatned eam」

:38

138

138

９
２ ω
２

AdJusmcnt On chanBc Of』 le229

igs iom(514)

capittl surplus

514
229

Net in∞ me Ooss)For the year
Purchasc of treasu「 y st∝ k

(1)

(1)

Changcs othcr than
1.791

¥2,464¥(1,6i】 )sharcholdcr's cQ面 Ⅲ

学5̲915¥24222

Bdancc at March al.2015

平(395)¥691¥29,727

¥(15Ⅲ

¥5346

¥―

2977

851

¥6890

¥305

¥36,922

′
′
″
Jげ界層
)
rν′
=ο
Accwttulated other c(lmprchcrlsive」 i〔 x,mc

Sharcholders'cqulty

acclllnulated
Comfi】 (lnCaphalRcttlned T‐ Suystocksu叩 lusca― gs

stock

Total
shareholdeド s

印(,SSCS)¥24,223dance at Apill,2015

eqtuty

業395)

¥S,15

判 iS)

Unredlzed
holdu】

Va口 an∝ Fo「 cign curcncy

g gdns Balns cosseS) OFtand

on s∝ unies¥29,727

Deferedcv』 uaこ (ln∞ hedges¥691

iandatton

挙

Remcasu「 cments

NOn‐cont「 o‖ ing

Tot』

ofdcincd bcnettt comprchens"e htcr(,s低adJusmcnにP,arisuicome¥6潟 90Y(1,Gm)塑 ,464

郵 部

other

405

46,22

Attustincnl on change oftheac∞ unhnB pOhcy
Trarisfcr io fetaned earungs iom(373)

capital surplus

Net hc()mc$oSS)fOr the year

378
19,lSl)(9,151)(9,lSl)Purchase oFrc■ stt sl∝ k(1)

CttanBes other than
(1)

197

(291)

(1375)

当 lⅢ

彗割 3

望2.173

当 3J個 6〕

sharcttolder'se(uity単SS7

翠24,22B』 ance at March 31 2016

当9.163ヽ

翠
20575

当16Ⅲ

rttο ws̀:″

7

断

ダd
′
∫ο
′〔

2p4Ⅲ
イ

st∝k

Su呵 〕
Ius

Rela ncd Treasury
Total
earnhBs st∝ k Sharcholder's
ty
,Ses)
Cq苗
(1(Xて

SS2,494 S(3■ 06) S(133)S214,63

Balance at Ap占 11,2015

髪 S.ク 24

Accurndated odier comprchcnsive ulcomc

accuntJated
Cacilal(2,046)

劇の′(,7'

Shareholdcrs'cqtuty

Comlnon48
彎 翻S263,813

hold』 g gat〔 is Bttns dosSes)

VananccoFlandon s∝ untes

eva uatton

Unfedized

S6,132

Dcfcred(胴 hcdBcs
併S47解

adJusmcnに
S21,867

plans

Non‐

∞n,ollJIB
othcr∞mprchmSve mtc「 csts

Foreign curcncy Remeasurcmcǹ
tans atton
oFdeined bcncit

Tota

uic(lmc

S(11,97)

S61,146

S2,707

S327,671

AdJじsiment on chanBe oFlhc
acc()unⅢ ng pohcy

Transferto rctaulcd earfungs tom(3,SS)

capit』 su,Ius

Net ul∞ mc doSS)FOr die year

3,3SS
(31,212)(31,212)(81,212)Purchase o『 :rcasury slock

Changes oher dian9〕ィsharcholders eqt」 ty

Bdance at March 31,2016

I′ο cο ″dο ′骸 9′4cω P̀I″ノI打 gザ VOr9∫ ′
"′

̀Jrσ

S214つ 63

S49.139 S(31,63)′魚 胆 nc′∫ね ′θ″19″ ,ì:′S(142)

S182■ 97

SS,032

S(9,

1,748

(2,S32)(16,640)(18● 83】426(18,157)

S49,192

S19,23S

S(30,37)

S42ヽ 3S3,133

S228,293

CONSOLIDATED STATEMENT OF CASH FLOWSSWCC SHOWA HOLDNGS CO,LTD.and Consolidatcd Subsidiaries
2016

2016

2015

と
ゴ
S9F
̀:ヵ
ね/s)
JSι ′
οど

!ο ″
dげ /〃
rν ′

∫
r「 %ο ″,′r,vο

Cash■ ows from operatilig ac

セ 7)

vities:Incomc(losS)bCfOrc incomc ttaxes and nontonば olling intcrcsts¥910¥(8,620)

S(76,500)

Dcprcciation and arnortization

3,490

3,700

32,836

8

5,996

53,213

(12)

(106)

Loss on impaiHncnt ofttxcd assets

Compcnsation income(215)

Cain on sales ofinvestment sccJritics(897)

Cain on sales ofPЮ peJッ ちplant and cquipmcnt
Loss on disposЛ ofpropctty,plant and equipmcnt

45２・

Loss on dcvaluation in invcstment sccu五 tics
(207)

lncrease(dCCrcasc)in rCSCⅣ c for construction loss

31

(27)
(208)

lntcrest expcnscs

1,061(1,163〉６９lntcrcst and dividend i￢ come

248

３
・

lncrease(dCCrcasc)in prOЧ sion for net dc● ncd bencit liability

２lncrease(dCCrcase)in aCCrued rctircment bcncits for cmployccs(1,092)２lncrease(dCCrctte)in aliOWance for doubtful accounts

8,573

RcscⅣ e for surcharge

442

823

7,304

(InCrCasc)decreasc m tradc nottcs and ac∞ unts rccc市 ablc

3,089

3,180

28,222(InCreasc)dCCreasc in inventorics

(513)

891

7,907

hcrease(dcCrcase)in ttade notcs and accounts payablc(856)(1,840)(16→ 29)

Compcnsation for product(InCrCase)decrcase in otthcr currcnt assets

lncrcasc(deCrcasc)in OthCr curent hablitics

927

5

44

(195)

(411)

(3,647)

Repair work expcnsc
Loss on salcs ofinvcsments in subsidiaricsを lnd arlliatts
Business structure improvemcnt cxpenscs

Othcr
Sub‐ total

6

720

1,134

10,064

7,611

5,616

49,8401,93

256

lntcrcst and dividends rcccived(965)(8,564)

俺rcst pald

(1,039)Scttlcmcnt paid

(618)

Busincss structurc improvcment cxpcnses paid

(152)

(142)

lncomc taxes paid

(433)

(2,183)I■

Nct cash projded by(used in)OpCrating act市 ities

vities:(3,689)(4,278)

９
３
６
８

129
９
２

Net cash providcd by(uscd in)inVestillg activitics

2,157

２
８

Other

(28,772)(3,896)

Expc￢ ditures for acquisition of invcstments in an arlliatc(InCrCasc)decrcasc ln sho直

３
４

41

Procccds ttom sales ofintangiblc asscts‐
tema loans rece市 ablc

169

２
４

Purchascs ofprOperty,plant and cquipment

２ ２ い い３︐Procccds ion■ sales ofinvestmcnt sccuritics

(89)
９
・

(9)

1,845

Procccds lrOm sales ofpЮ pew,plant and cquipment

40お 44０・

Purchases of invcstmcnt sccuritics

4,546

ぐ

Cash■ ows From investing ac●

5,625

(345
(2,028)(3,846)319
258(34,132)

2016

2016

2015

′
dοデ
仲ο 訂
"d♂
s,
〕dι ′
ο
′
′′
ο
胞
7)
rⅣ

″
rr!ο tt ο
′
ノノθ
rν ′

̀″

Cash ttows from anancing ac

vities:

Incrcasc(deCreasc)in ShOrt‐ 俺m bmk borЮ wings(5,754)

322

2,858

Procccds from iong‐ 俺r■ l debt

11,■ 07,900

70,110Repattcnt ofiongicΠn dcbt

(8,690)(9,723)(86,289)

(7)

(4)

(35)

(152)

785)
で

(6,967)

Net cash pЮ 宙dcd by(uSed in)● nttCing act弾 ities(3,493)(2,90)

r20お 23)E∬ect of exchange rate changes on cash and cash equivalents

259

(96)

(352)・

Net increase(dccreasc)in cash and cash equivalents

363(1,686)(14,963)

Cash dividcnds paid to non‐ controlling intcrcsts

Other

Cash and cash equivalents at beginning of ycar
Cash and cash equivalents at end ofyear rプ

VOrて ,s rο

S♂ θ Иθθο靱ュ,α
''ノ

'P'gプ

Vο rと ,s,Jrて ,″ ,θ ″rS
J佗′ FJ′ ,α ヵθね rsど と(ア οηsο ′
J′と

7,605

7,968

70,714¥7,968¥6,282¥S5,751Π NANCrAL…

Ю蝉

SWCC SHOWA HOLDttGS CO,LTD and Consolidattd Subsidiarics

1.Basis of Presentation

Thc accompanying consolidated fintncial statcmcnts of SWCC SHOWA HOLDINGS CO., LTD。

(he

Company'つ and ns cOnsolidatcd subsidiaries(COllectively he(̀Companies'')haVe been preparcd on he basis ofaccounting principles generally acccpted in」 apan,which are ditterent in cenain respects as to he application anddisclosure requttements of lntemational Financial Reponing Standards, and have been compilcd ●om tte
consolidated financial statements prepared by he Company as requred by he Financial lnsttuments andExchange Law ofJapan.
In addition,the notes to he consolidatcd anancial statenents include hfbmation which is not requred underaccounting princゎ les generally acceptcd h Japan.Cenain reclassiflcations have been made to prcsent theaccompanying consondated financial statements in a follllat which is familiar to readers outside Japan.

2.SurH■ ary of Signirlcant Accounting Policies
)P,こ
・

:♂

rα

ヌ
′
Sοデて
ο

i″

α
れ財
,

̀ゥ
'SO′
consolidated subsidiaries.In
The consondated
flnancialstatements include he accounts ofthe Company andね
preparh8 the consohdatcd financial statements,all signitcant intercompany ttansactions,account balances anduばcanzed proits or losses among the Companics have been elinlinated. In he elinlination of investtnents inconsolidatcd subsidiaries, the assets and habilities of the consoLdated subsidiaries, hcluding he portion
attibutablc to minoriサ Shareholders,are rccorded based on he faと valuc at he time he Company acquredcontrol ofthc respective subsidiaries.

Differences between he cost of tte hvcstments in consolidated subsidiaries and he underlying equiけat fair

valuc ofdates ofacquishion have been amortized by tte sttaight‑lhe mcttod over a period ofive years.

The cquity method ofaccounting has been adopted for investments h tte mttor aFlliated companies over which
hc Company cxcrcises signiacantinauencc h tc劇 ■S Oftheir operathg and flnancial policies.
Thc total assets,retahed eamings,net sales τnd net hcome(10SS)Of thC unconsolidated subsidiarics andafflliated companics which are not accolnted for by he equity mehod tt he aggresate were not sig五 acant infelation to he corespondtt consolidated balances ofhc Companies.
The number ofthe consolidatcd subsidiaries at March 31,2016 is 23,listed as follows:
Nainc

Percentagc ofPaid‐ inequity ownership

capitalヵ6)rνlrr′ ο

SWCC Showa Cablc Systcms Co,Ltd

1000%¥10,000

SWCC Showa Dcvice Technology Co)Ltd

1000

3,500

Unimac Ltd

550

480

Ftti Electric Cable Co,Ltd

1000

318

Da」 iCo,Ltd

1000

480

AXIO Corporation

1000

310

SWCC Showa Business Solutions Co,Ltd

1000

100

SDS Cofporattion

1000

100

Logis― Works

Co,Ltd1000

95

Aomo前 Showa Electtic Cablc Co,Ltd

1000

80

Talnagawa Magnct Wirc Co,Ltd

1000

46

Showa Recycle Co,Ltd

1000

20

Showa Technical Corporation

1000

20

Shoukou Equipmcntlndustry Co,Ltd

1000

80

Tiattin shOwa Enamcllcd Wirc Co,Ltd

548

USS17 0Fuqing Showa Precision Electronics Co,Ltd

1000

USS3 4SWCC Showa(VIETNAM)Co,Ltd

1000

USS7 01000

USS5 2

952

USS3 2SWCC Showa(ShangHal)CO,Ltd
Jiaxing Showa lntcrconncct Product、Co,Ltd

SWCC Showa(HK)Co,Ltd

1000

HK$843

DongBuan Showa lnterconnect Products Co,Ltd

1000

USS1 7

HangZhou FuTong Showa lntcrconncct Products Co,Ltd

1000

CNY S12Showa Science Co,Ltd

700

40

The nunber ofafflliates,in which invesmeHs arc accounted for by he equlty method,is 5 1isted as follows
Percentage of

Paitrincquity owncrship

capital

ど
ど
′
ο
И
d)
rν ′

Hua Ho Enginecring Co,Ltd
CS Co,Ltd

Showa‐ TBEA(Shan Dong)Cable AcccssO封5000/O

NTS35

490

USS14

HangZhou FuTong‐ Showa ElectHc Wire Cablc Mattri』 R&D Co,Ltd

490

CNY¥10

FuTong‐ Showa Elccttic Wire&Cablc(HangZhou)Co,Ltd

490

CNY¥374

FuTong‐ Showa Electric Wirc&Cable(TianJin)Coっ Ltd

490

CNY¥100

EXSYM Co司 poration has been excluded,om he scope ofthe consolidated subsidiaries since it was lnerged with
SWCC Showa Cable Systems Co.,Ltd on October l,2015。

αrめ■′?′ ,Cノ T′α ∫′)FO′ ?,ig′ :G″ ′rうAsscts and liabilities denominatedと l foreign curencies arc ttanslated into Japanese yen at apphcable exchange
rates at the balance sheet date9 and differcnces resulting iona the ttanslation are included近l oherincome or otherexpenses in the consondated statements ofincome.
The assets and liabiltties of foreign consolidated subsidiaries and afFlliates hat operatc ■1 local curency aretranslated into Japanese yen at the apphcable exchange rates at the balance sheet date,except fbr the components

of net assets excluding minority hterests which are ttanslated at heif historical exchange rates.Income andexpense accounts are also ttanslated at the apphcable exchange rates at the balance sheet date.Differcnces arishg

iom the ttanslation are presentcd as ttanslation attuStments and minorり intCrests in accumulated oher
comprehensivc income oftts consolidated flnancial statements.

デ′P βT'河 ウ
α′
?′ P奮
∫
ヵα′
:″ て
α♂
rc)(ア αCash and cash cquivalents consist of cash on hand, cash h banks which is read』

y available and short― ten4

hvestnlents witt maturities oftttee months or less when purchascd which can easily be convened tO cash ttd are
SutteCt tO little risk ofchange in valuc.
r″,r′ ,フ

g

rο

′
J9s

lnventories are primarily stated at he lower of cost detettmined by the average mchod or net realizable valuc.
Inventories of cenain consOndated subsidiaries are stated at the lower of cost deter巨 五ned by the moving averagemethod or by he spccific identiflcatiom mehod or net reaHzable value.When he costs cxceed the nct realizablevalues,inventories arc written down to thc net reaHzablc value.
rど)/′ :ッeS
伽 ?′ SccИ Fiとこ,どvalue with changes in uirealized holdhg
marketable securnies
classifled as̀̀other securitiesデ 'WhiCh have no faと values,tre ca劇『ied at cost detettmhcd by he movhg average
Marketable securhies ctassifled as̀̀oher secllrtties"are cattried at faとgains or lossesぅ nct of he applicable hcome taxes,included drectly in net assets,Non‐method.Cost of securtties sold is dcte劇「

五ned by the movhg averagernehod.

οP脇 ?′′8つ,Pra″ α″″βT″ ど

Prope■y,pl孤lt and equゃ ment are stated at cost.Depreciation is calculated by he sttaight‐ line mehod over hè′'P′
estimated use色 1 lives.The mah estimated usettllives ofpropeHy,plant and equipment are as follows:'ど

Buildings and sttuctures

Machinery and vehicles
Equipment and toolsrg)rttrα31 years(3‐ 50 years)
10 years(2‐ 14 years)
5 years(2‐ 15 years)

gibttИ Nぬ″

htangiblc assets are amortized by he sttaigh‑line mettod over each ofher estimated usettH市 es.Especially,
computer sortware fOr tttcmal use is amonized by he sttaight‐ line method ovcr tts estimated uscttH市 es of5years.

)Lι 園奮rヵof the assets,mainly omce equゎ ment is calculated
Depreciation of inance lcase assets that ttmsfer ownershゎ
by the same mettod applied for pЮ perり ,plant and equipment.
Fhance leases,the agreements of which do not includc the ttansfer of ownership,are accounted for h he samemanner as ordhary pllrchase transactions of flxcd assets and are depreciated by sttaight―

hnc method ovcr herespectivc lease terins with a zero rcsidcntial value.WYhile,financc lcases,the agreemcnts of、 vhich do not include
the ttansfer of ownershゃ and stahed on or beforc March 31,2008,are accomtcd for as operath8 1eases.

OИ ′′οναπ【 ybrDO

うり防′И CCο И″盗 買

ダ ッαう″'♂

The allowance for doubtill accounts receivable is provided based on historical defauh fates and additional
estilnated uncollectible amounts to cover speciflc doubtill accounts receivable.

肥胴ηr】 印びrs
0翼 ′?′(1)MehOd Ofattibuting beneats tO periods ofseⅣ ice
When calculating retirement beneflt obligations,the sttaight―

line basis is used for attributing expectcd retrcment

beneflts to periods ofseⅣ ice.

(2)Mehod Ofexpenscs for actuarial gahs and losses and past seⅣ ice costs
Past seⅣ ice cost is amortized on a sttaight‐ line basis over certah pcriods within he average remainhg ser宙 cc
livcs ofemployees(mainly 13 years)iom he yearin which it arises.
Actuarial gains and losses are amortized on a sttaittht‑lhe basis over ccrtain periods within he averagc remaining

service lives ofemployces(mainly 13 years)'om hC year fo1lowhg thatin which hey arise.
4И ″irOパ
Jfrο リ ノ,ど 】ι
′Pttts〕″ D,κ c抑 門 α打″Srα ど,P′ οッね力Иデ0′ R9▼ F「C ι′
S ttd S虹 Woり

rた

臀鳥碇紹

縄龍描鍬 縄鰐癬評涎孤山 ,he Comp前 es have pro宙 dedoぉ

tions.

′Иじ ,И じο″″αじ奮,デ0′ Lass O′ :G伊 :ぎ ど,P′ ο流 力′
Pro宙 sion for loss on construction conttact is pro宙 ded at hc cstimtted amolmt for anticゎ ated 10sses on the
rliと

r′

consttuction con,acts in proBress.
,v ′?加甲 ′0フ ♂″r盟)P′ οッねヵ ヵ ′う′♂力貿零δdr′J『 〔'?′ 'どβガPι ′ 賀'ごProvision for business sttucture unprovement is proved based on an estiinate ofbusiness structure improvement
expenses.

r)翼 ?フ ?′ ,

′
sr ο
ど
♂α
打′(デο
デ働Иぎ

働

r′

α
c▼ ∫

''CttИ

The Company rccognized revenue and cost of construction contracts under thc percentage―of―completion inehod

if the oucome of he constttction act市 ity is dccmed certah during he coursc of he act市 iり .Oherwisc,heCompany r♀ cOgnizcd revenue and cost upon completed‐ conttact method.「 rhc percentage of completion is
calculated at the cost incured as a perccntage ofthe estimated total cost.

c)Der"α .こりrο

The Companies use foreign currency forward exchange conttacts and hterest rate swap agreements to hedgc therisk of auctuatiOns■ l foreign cl】 ∬ency exchange ratcs and interest rates,respectivcly.Gain or loss on changcs inhe far market values of he der市 at市 e rmancial hsttuments which meet certah crttcria as hedges is defered on
the balance sheet until gah or loss on the hedged ttems are recognizcd.

However,foreign currcncy forward exchange conttacts,which mcct certain condttions,are accounted for as apai ofttanslating foreign curency monetary assets and liabiltties in the consondated balance sheets.

In case where interest rate swap a8reements are used as hedges and meet certah hcdging crhcria, he net
amountto be paid or received under the contract is added to or deduccd iom the interest on the assets or liabiltties

for which the swap con,act is executed.

Shcc conlmencement ofhedge conttacts,the Companies have assesscd the erectiveness of each hedge conttact
by comparing the total cash aow auctuatiOn or rnarket auctuatiOn ofhedging instruments and hedged ttems.

Иs″ 叩 ガο
И rttsrP)(デο
Tr孤 lSaCtions飩rT)/′ Pcο 脇ぞ疑

匈 ect

tO COnsumption taxes are recorded at amounts exclusive ofconsuttption taxes.

賀

DcfelTcd tax assets and liabilities are detettmined based on the differcnces behveen inancial repo■

bascs of the assets and liabilities and are mcasured ushg the enactcd tax rates and laws which wiⅡ

ing and the tax
be in effectwhcn he differences are cxpected to reverse.The companies in Japan flle the consoLdated tax retum.Overseas
consolidatcd subsidiaries are suttect tO incOmc taxes in the countties in which hey operate.

3.Accounting Change
Application ofaccounting standard for corporate combhation

Effective frOni the ascal year ended March 31,2016,the Company has applied he Accounting Standard forcorporate
Corporate Combination(ASBJ Statement No.21 issued on Septcmber 13,2013;herehaner the
Combination Accounting Standard'つ ,血 e Accolttthg standard for Consolidated Fh孤 lCial statemcHs(ASBJ
Consolidated Financial Statements Standard'つStateme江 No.22 issued on Septembcr 13,2013,hcrcharter thc
and he Accounting Standard for Business D市 estitures(ASBJ Stttcment No.7 issued on September 13,2013,
herehalter the

Bushess D抒 estiurcs Accounting Standard'').As a result,ifthe Company conthues to control heＦsubsidiaries,he direrence caused by ch〔 nges h ownershゃ interests in subsidiaries is recorded as a capitalsurplus and he acquisition‐ related cost incurred are recorded h he same flscal year. For the corpofate
combinations which take place on and aner the beginning of the flscal year, the rewision of purchase pricc
allocation oftemporary accou江 地 treament should be recorded h ttc same iscal ycar of corporate combhation.
In add面 on,the presentation of Net income"has been changed,and he presentation of Minority nterests"has
been changed tòlWon― conttollhg士 並ercsts''. The consolidated inancial statements for the previous fiscal ycar
have been rcvised to reaect these changes in presentation.
The Co司poratc Combination Accounting Standard,etc.,in accordance with the ttansitional treatl■ent spccifled血

hem 58‐ 2(4)of he COrporate Combination Accolnthg Standard,item 44‑5(4)of the COnsolidated Financial

Statements Standard and item 57‑4(4)of the Business Separation Accounthg Standard,are applied iom hebeginning ofhe flscal year.
The impact on the flnancial statements ofthe iscal year under review is not signiacant.
The hり act on per share雨 omation is shown in the pcftinent section.

4.U.S.Dollar Amounts
For he convenience of the readers outside Japan, the accompanyhg consolidated flnancial statements arepresented h UoS.domars by translating an Japanese yen amounts at he cxchange rate of¥112.68=USSl.00
prevailhg on March 31,2016.This,anslation should not be construed as a representation that the Japanese yen
S,domar ainounts atthe above or any oher
amounts actually represent,or have been or could be convcied into l」 。
rate.

5,Cash and Til■ e Deposits
Infornation rePiardinЯ cash and tilne dcposits at March 3 1.2015 and 2016 was as lbllows:
2015
2016

2016

dと ,ね 0/ρttο ″sοァ
ッ9,ノrν rゎ 預,′

,ど/S′ο〃α″こsノ

Timc dcpOsits due ovcr 3 mon■S55,751¥7,968Cash and time deposits duc within 3 monthss

Tottal129

1,136¥8,097356,887

6.Inventories
The brcakdown oflnventories at WIarch 31

2015 and 2016 was as fbllows:
2016

2016

2015
r/′

″
S̀〕 ″
′/
(勁 ο

μ′
ο
И
Jげ /〃

̀ο

臥 s′。r′,′ ∫)¥9,782¥9,42S

S83,643

Work in process

7,720

7,454

66,152

Raw matcrials and supplics

4,484

4,17

37,425¥21,986¥21,096

Mcrchandise and finishcd goods

S187,220

1nventories were revalucd at the lower of cost or net realizable valuc widL devaluation losses, which werehcluded h Cost of Sales,Ior the years ended March 31,2015 and 2016 h the amounts of¥78a五 uion and¥61
million(USS541 housand),respcct市 ely.
7.Imvestment Securities(a)InfOmation regardhg marketable oher securttics at March 31,2015 and 2016 was as lbllows:
2016

2015
帥

帥

cost

C叩 蛇

Um

walけ

如 OOSSl

ね藤山
oost

C

201ヽ

蛇 U陀脇 d敗 画 航

Val晴♂mOoss)

∞St

―
■
勘隕

g助 』 測帥 ω

どどと″s,′ ,ど∫
ο
d′ ο
/〔 ア
rr力 ο

ど ,sοノン￠
リ
rν ′

,″sノ

r,ο

Sccuritics whose c劉 巨ying value cxceeds thcir acquisition cost

Stocks¥1,517¥2,573¥1,056¥862¥1,937¥1,075

S7,650

S17,190

S9,540

Securitics whosc acquisition cost cxcecds thcit cawing valuc:

stOcks

220

172

(48)

877

667

(210)

7,783

5,919

Total

¥1,737¥2,745¥1,008¥1,739¥2,604¥865

S15,433

S23,109(1,864)

S7,676)Sales Ofoher securhies(いlnfollllation regardin8 0her securhies which have been sold out by March 3 1)2015 and 2016 was as follows:
2015

Amount ofhc salc

2016

ti

hcmcofhcsalc

Amount ofthc wtt

homcofhcMtt

¥897

¥7

¥12

ARЮ lrttofttleMtt homcofhcM腱
rο ど
ど
と
,rd)
〔
ナS ι

Stocks¥1,845

S106

S62

8.Short― term and Long‐ term Debts
te111l bo∬ owings and curent portion oflong― tc.皿 i bOrOwings,finance lease
Short‐ tellH debt composcs sho五 ‐Obh8ations.The weighted average interest rates for short‐ telll二 borowings and curent portion oflong― tettlll
borowings atふ 江arch 31,2016 were l.4950/Oand l.7130/0,respectively。
shOn― term borowhtts and long‐ te二 ili borowhtts at March 31,2015 and 2016 consisted ofhe following:
2016

2015
d ο
,ο η
/ノ?И)
rν イ

2016
″
Sと I,,お 0/
(T力 ο

lザ

こ
/S′οrlα rd)
Short‐ term borrowings

Unsccurcd¥12,085¥11,436

S101,491

Sccurcd

18,585

19,SS6

173,553¥30,670¥30,992

S275,044

Unsecured¥14,823¥15,292

Secured

11,6579,365¥26,480¥24,657

Long― term borrowings

2015

２
３
︲．
２
７．
８
．
︐
︐
５︐ ３
一８ 一
３
８
・
２．
Ｓ
Ｓ

Lon宮 ‐
teill.debt at卜Carch 3 1,20 15 and 2016 consisted ofhe fbllowin鼠

:

2016

2016

2Sと こ
Иぬ げ
(勁 ο

′,,S9rノ 9')P′ ′'ο

/sと rorrと 6)
こ,″Loans principally from banks and insurance companics duc
scrially to 2023 and prcdominantly colateralized,with a wcightcd avcragc intcrcst of 1 568%
Finance lcasc obhgations duc 2023
Less:portion due within onc ycar

¥26,480¥24お 57

S218,824

1,813

1,838

16,267(9,707)(9,779)(86,786)¥18,586¥16,711

S148お 05ニ
ェdebt subsequentto WIarch 31,2016 were as followsi
The aggregate annual rnaturhics oflong‐ te二 二
′
ο
ttS ο
/ノ 9И)″ ザ

Ycar cnding March 31,l′

ク
Sと ,J̀Q′
T力 ο,′

JS′ ο〃αrd)
S62→ 98

2018

5,43

46,530

７
２
卿４
卸
︐
・
一
一

2017

¥7,03120192020 and thcrca{tcr26,713
12,664
S148お 05

At March 31,2015 and 2016,the following assets were pledged as collateral for ccrta■
2016

2015
″ヵη
dげ /″)rν′

l ofthe above debts
2016

″
S,′
(T力 ο

sげ
̀′

ど
ど
と
J′s)
[/Sど ο
¥1,775¥892

S7,916

Buildings and structurcs

6,030

4,038

35,836

Machinery,equipment and tools

1,737

586

5,01

Land

18,15318,152

161,093

Other

133

67

595

¥27,828¥23,735

S210,641

Investment securitics

PЮ pC守 ,plant md cquipmcnt,at nct book valuc:9.Leases
The following pro forna amounts represent the acquishion costs,accumulated depreciation and net book value
offinance leases,the aBreements ofwhich do not include the ttansfer ofownership and started on or before March

８
２
３
６
４
Ｓ
期
一
一
︐
中
・
の

31,2008,as of March 31,2015 and 2016,which would have been renected in the consolidatcd balance sheets if
thc lcases had been accounted for in thc same manner as ordhary purchase ttansactions of ixed assetsi
2015

2016

２野
６
則・
一一

,ο ′
η
d氏弓§
rir′ 〃¥518

Acquisition costs

Accumulated dcpreciation

467

Net booに valuc

¥51

′
Vο ′
θ∫Иddク テ″θど ♂θ9ク Jd′ ′Jο ″ θOsys,″ θ′
クル
,と

'力

'ど

'α

,′ :И セ 躍 sr′ 力￠′,と ,P,rと :′r力 っ て‐:ヵ rα ,,′ θαゥ佑て ノて″θ
Tク ″脇で′
「 ι
,′

̀,ο

'zて

,s,′

″
『
И
α舵′,I

И,,Sr力 θフ ″οフ ο′ど

力
甚 r,″ セ 脇 】

'0''可

'阿

″

"乃

θ力′
∫ど
O rOど と
,rr,Pψ 貰樽 、

Jsて ,フと
を
ι
ノ

'″

:と

'P′

Future n五 nununl lease payments subsequent to March 31,2015 and 2016,for flnance leases,the agreements ofwhich do not hclude he ttansfer of ownership and started on or before March 31,2008,are su■ lmarized asfollows:
2015

2016

2016

′
r,ο ,,∫ 0′ ノ
θ
″
)
rν ェ

gtt。

,′

:ぬ 0/

"sと

/S′οrr,/6)〔
Within onc ycar

¥44

Ovcr onc ycar

7

S62

¥51

Total
′vο ra¥7

И 郎 ′″′ヵど,1′ て,",,,デ ,″ ク,″ セ α s9̀￠′て,,sι フρ″θ
力′d rO′ 0′ フ
″
ο
ノ′
P?″
̀J′

Pり 脇 θ力 rsヵ rttα ″て,9ル 斜 ￠s,″ θ′ク施

7ο ,T,α S′力￠ デ,′ 8Pο ′/Jο″ 難 禅′力θ θと:r,丁 ′
ιJr,zて ,′ ,ヵ rて ,ァて,sr r力 θ″て′ク″て,,″ ,″

''ユ

''′

"θ

″′
″

'糎

″―
♂
″′た,,″ 脇,セ ′
,α ′
α β θ
ど ,wα rノι?ク ″ η
'ど

Lcase payments under such 'P′
leases for the years ended March 31,2015 and 2016,were¥59 Hlillion and¥44
million(USS390 housancl),respect市 ely.These lease payments were cqual to he depreciation of leased assets
computed by the sttaight‐ line lnethod over thc rcspective lease teans with a zero residential value.

In addition, he ttture miniinum payment for opcrath8 1eases subsequent to March 31, 2015 and 2016 aresunllnarized as follows:
2015

2016

2016

ど
′
lο η
s ο
rν ′
/ノ?リ

″
Sと I′
(T力 ο
[ガ

592
¥681

Total

S568

Ｓ

¥89

Ovcr onc ycar￥

Witthin onc ycar∫げ̀′
Sど 0′ra″ 耳
)

4,686

SS,54

¥S92

10.Retirement Benerits lor Employees
Parent company and domestic consolidated subsidiarics are providing welfare pension ttnd, deFmed beneitCO珂 pOrate pcnsion plans as defined benerit plans and lump― sunl retと ement beneflt plans and dcincd conttibution

pension plans.In addttion,the parent company and certain consondated subsidiaries sct thc employee retirement
beneflt ttust.

Pension bcneat corpOrate pension plan and lw■

p sum retirement beneit plan wtth certan subsidiaries calculated

defmed bencflt liabilities and retrement beneflt costs by the silnphied lnehod.

employer welfare pension
AIso, ceiah overseas consohdated subsidiaries havc deaned benefit plans, Muhi―
負nds in which certain consolidated subsidiaries patticlpated were dissolved durng the ycar.
(a)Derined benerlt plans(eXCluding plans applying the silmpliFled method)(1)MOVCments in retreme五 benerit obligations
2016

2015

2016

加ο
И
∫
ο
9リ
デ
ノ
rν′

gtt。 パとェ,,と rdO//S′0〃 ,rs)〔
Beginning balance¥11,786¥12o16

Slll,076

4→ 13

AdJustmcnt amounts in rdttion to the accoundngpolicy changcs(188)

ScⅣ icc cost

447

486

lnterest cost

130

102

905

Acmarial gains and losscs

934

lβ 10

11,626

BcncSts paid
Ending balance

(593)

(640)

(5,680)¥12,516¥13,774

S122,40

Movements in nlnn assets

rク 、

2016

2015

2016

′
″
′
ο
ttsげ χ
η)″
S印 ぬ ο
(T力 ο
/

rν

〔
ナS ι
ttOll̀〕 rdノ
Beginning balance¥14,791

462

518

4づ 97

1,379

(902)

(8,005)

Acmarial gains and iosses

331

257

2,281

(593)

(640)

(5,680)¥14,791¥14,024

S124,45'

Contttbutions p洒 d by the employer
Bcncitts paid

Ending balance

S131,66¥13,212

Expected rettr■ on PIan aSSCtS(3)Reconciliation flom retLЮ ment benerit obligations and plan assets to net defhed beneat liabiltties(assetS)hhe consolidated balance sheets
2016

2015

2016

9リ
″ァ
ッ

rν lttο sο

(T力

ο
″

げ

dと

''1ね

ェ
JS′ ο′′と/s,
Funded retircment bcncat obligations¥12,516¥13,774

S122,40

PIan asscts(14,791)(14,024)(124,459)

Total net derlned benefit liabilitics(aSSCtS)¥(2,275)¥(250)

S(2,219)¥(2,275)¥(250)

S(2,19)¥(2,275)¥(250)

S(2,19)Net deined benerit liabilitics
Totai net dcttncd bcncSt liabilittics(aSSCtS)(4)Retirement beneflt costs
2016

2015

2016

S ο
/

イ
′
ο
〕
sQ′ ノ
?リ
′
rν ′

″
W打 ど
(T力 ο
[ア

Scwicc cost¥447

lntcrcst cost130

Expcctcd rcmm On plan asscts

641

Total retirement bcncit costs

¥756

¥486

S4,313(518)(4,S97)

望38S

S3,417905(462)

Amortization ofacttarial gains and iosscs

了
οど
ど
,/d)
■と

2,796

(5)Remeasurements ofdefined beneflt plans(bcfore tax)
2015

2016

2016

ン
S,И ぬ げ
(T力 ο
こ
′S′ ο
ll̀,rdノ

ど
力ο
′
,sο ′
rν ′
ノω

rriゝ

Acmarial g孤 ns and iosscs¥1,086¥(1,897)

S(16,835)

Total¥1,086¥(1,897)

S(16,835)

Accumulated remeasllrements ofdermcd benefitっ lans fbeforc taxⅢ
2015

2016

2016

″M″ ′
d ο
/
(T力 ο

d Orノθ
砂
r豚 ザη
,ど

lο

[ア

Uarccognizcd actua面 al g孤 ns and losses
Total

′
ど
と
Jrd)
S̀了ο

¥2,316¥4,213

S37,389¥2,316¥4,213

S37,389(7)Plan aSSets
1)Plan assets at March 31, 2015 and 2016 comprise the following:
2016

2015

Othcr asscts

234%
111%
345%
61%
96%
153%

Total

100%

Lifc insurance company gcncral accounts

Domcstic bonds
Domcstic cquity securities

Foreign bonds
Foreign equity sccuritics

力?κ
平げ′

,9,′
?ρ ′
と′,ss?rS,1カ 9ρ ?′てザvο r?fr,,肋 ?,bο ッ
,′

̀里

″′
?′

'躍

,′

27.00/O
12.50/O

31.6%
7.20/O

8,4%
13.30/0100%′″dど /ο ′肋?/,ぉ ?″ 施 ′豚

b?,1げ
̀ど

,力
̀:/て

,貶
」フ.2θ プj伽 ′フθゴjν ,s,56%伽 ′フラア%,κ ∫
,9θ ど

rノ

2)Long‐ teHn expected rate ofreturn
Current and target asset allocations,current and expectcd retums on various categories ofplan assets have bcen

consideredとl deterE五 ning the long‐ tem expccted rate ofretum.
(8)Actuarial assumptions
The prhcipal actuarial assumptions at出 larch 31.2015 and 2016そ rc as folows
2016

2015
Discount rate
Long‐ tcnn expected rate ofretum

Assumed salり increase rate

08%
35%
26〜 34%0。 20/。

3.5%
2.7‑3.4%(b)Derlned benettt plans applying the silmplined l.ethOd(1)Movements in defmed beneflt habiltties applyintt he simplifled method
2016

2015

2016
∫ げ
V∫ β
″′
(動 ο

sο/ノ 9つ
r,ο ヵ
rν ′

アSどο′
ど
,rsノ
〔
S3,514

198

¥396
333

Beneats paid

(161)

(125)

(1,109)Contibutions paid by thc cmploycr

(121)

(186)

(1,650)

2

(1)

(9)

¥396

¥417

S3,701¥478

Bcginning balance
Retirement benefit costs

Foreign cuwcncy transl誠 ion ad」 ustments

Ending balancc

2,95S(2)RcconcinatiOn iOm retremcnt benefit obhgations and plan assets to net deflncd beneit habilities(asSets)
applyinЯ he simpliaed methOd h he consolidated balance sheets
2016

2016

2015
ο
刀
∫げノ9И)
r豚 ″

(T力 ο

,ど

"S,,,と

rd げ

も
S′ο′
′
α″
ノ
̀ナ

Fundcd rctircmcnt benefit obligations¥1,183¥1,250Pian asscts(1,080)(1,134)(10,064)

293

301

2,672

¥396

¥417

S3,701

Unttndcd rcSrcmcnt benettt obligations
Total nct dcfincd bcncit liabil■ ies(assCtS)

Sll,093

Net dettned bencrit liabil■ ics

¥537

¥S65

SS,014

Nct dcttned benerit asscts

(141)

(148)

(1,313)

¥396

¥417

S3,701

Totai nct dcincd bcnefit liabilities(asSCtS)(3)Retrement beneat cOst calculated by tte simplifled method
2016

2016

2015
ど
rfο tts Q′ )セ リrν′

trd印 港
(勁 ο

げ

/Sどοど
ど
,/s,
【
Retirement bencSt cost

¥333

¥198

S2,955(c)Dettned contribution plans
The a140unt Of conttibutions to he dcrmed cOnttibution plans of thc Company and its consolidated subsidiaries

at March 31,2015 and 2016 were¥194million and¥200(USSl,775 housand),reSpectively.

11.Contingent Liabilities
At March 31,2015 and 2016,he Companies were contingently liablc for he followhg hems:
2016

2016

2015
ο
И
d ο
/ノ?η)
rνlr′ ア″dと ,どsげ
(勁 ο
,′

[ガ

Discountcd and cndorsed tradc notcs rcccivablc

ど,/6)
S′ο
Jと

¥1,825¥2,043

S18,131¥1,830¥2,048

S18,175

44

Guarantccs ofindebtcdncss ofcmployccs

12.Land Revaluationln accordancc with the Law Conceming Revaluation of Land enactcd on March 31, 1998 and he Law whichrevises a part of Law Conceming Revaluation of Land enacted on March 31,2001,land owned by he Company
used for business was revalucd, and he uば eaHzed 8ain on he revaluation of land, net of defetred tax, wasreported as ̀̀Variance of land rcvaluation" within net assets, and the relevant defelred tax was included in
DefeITed taxes related to land revaluation"at March 31,2002.
The faと value ofthe land at March 31,2015 and 2016 was iowerthan its ca叫

habilhics as

血g amount by¥8,950 Hlittion and¥8,933 milllon(USS79,278 housand),reSpect市 ely.
13.Net Assets

The Japanese Corporate Law(theLaw'')prO宙 des thtt amounts tom capttal surplus and retahed earnings may

be disttibuted to the shareholdcrs at any tilne by resolution of the shareholders or by the Board of Drcctors if
certain pro宙 sions are mct suttcct tO he extent ofapplicable sources ofsuch disttibutions.
e
The Law ttrther provides that amounts equal to 100/O of such distributions be ttansfcred to lhe caphal reseⅣ
included h caphal surplus of the legal reseⅣ e hcluded in retahcd eamings bascd on he applicable sources ofsuch distributions untilthe sum ofthe capttal reseⅣ e and the legal reseⅣ e equals 250/O ofcommon stock.
InfoHnation regarding changes in net assets for the years ended WIarch 3 1,2015 and 2016 was as lbllows:
テ
′
【
dね ∫
″
9′ α
μ′″θ
β
dク ヮ srOθ たrα)s力 αFor the ycar ended March 31.2015
Ty,eS Of Sharcs

Number ofsharcs

Numnbcr of shares

Decrease

Increase

at Apri1 1,2014

at March 31,2015″∫
勁ο″s,,?ぬ οrdヵ αShare lssued:

Common stock

308,269‐‐

308,269

8‐

126

Treasury stock:

Common stock
内bセ fr〃 θ″̀酒l18

P!舵 斜 ″り Srο て,々 港 と′″￠ サορ ク′θ力と ,sげ S力 ,7て90ガ ∂ サカο″Sα 乃″ dカセ:″ ∫ ュ
'sで

'Sル

ds″ 力α″ srι J″ ′ι
:′ ′ ″ガ ′For he year endcd March 31.2016
Types ofsharcs

Number ofsharcs

Number ofsharcs

Decrcasc

Incrcasc

at April l,2015

at March 31,2016

セS
彫ο
フ
sα ″
′dげ d力 α
Sharc tssucd:

Common stock

308,69‐‐308,69Trcasury stock:

Common stock

126

7

″′と
ヵプ d肋 ″ ∫ ,テ ,う管と】∫ク1ン SrOθ 々 ,sι′
,r9ど οメタⅣ ο′
9r r,lθ ″ とIs【 ′げ 7′力ο″sと】'力̀JSθ

rbジ‐

力,″ srと J,,′ι
J/′ ク,,ど ′s οノ 諺 ,″ ∫ 修 郎 ′

D力 ′
ι
′
9И ι
′
∫

There were no dividends paid to oⅧ ers ofttc Company forthe years ended March 31,2015 and 2016.

14.SeWing,Ceneral and AdHlinistrative Expenses
The breakdown of

Selling,General and Administrative Expenses"for the years ended March 31,2015 and 2016

was as follows:
2016

2015
rν

Salarics and otthcr atiowances for cmployccs¥1,354603
6,581

Rctircmcnt bcncits cxpcnses for cmployccs

722

Rctircrncnt bcncits cxpcnses for dircctors and statutory auditors

26

Other

965

６

Depreciation and arnortization cost

(144)

１

Allowance for doubthl accounts￥

Ohcr sclling cxpcnscs

η
ο∫ο
/ノ￠
′

７５．
８４
４２
８９３
４
７２
部４
３
０
︐４
︐６
︐

ShippinB chargcs

,ど r′

6,818

¥16,925¥16,778

2016″S,,1′ Sο/
(勁 ο
/S′οど
ザ
と
Jrdノ
こ
Sll,936
3,977
60,738
4,189

248
(417)

9,203
S,,026

S148,900

Research and devclopment expensed included iǹ̀Senhg,gCneral and adminis,ative expenses"and manufacture
五1lion and¥245■ lillion,¥830H五 Ⅲion

costs for he year endcd March 31,2015 and 2016 amounted to¥993■(US87,366 housand)and¥2 16 million(USSl,917血 ous孤ld),reSpect市 cly.

15.Impairment of Fixed Assets
For assessment of impailillent of flxed assets,the Companies group idle assets and leascd assets based on an

individual asset, and othcr assets based on the catcgories used in the company's managerial accounting,where
gain or loss is periodically monitored.

In rclation to the leased assets,their market valuc has remarkably fallen agahst their canying amount and thebook value ofthe assets was reduced to the recoverable amount.
In relation to idlc assets,since sale of the assets has been decided,or ther market valuc has remarkably fallcn
against their carying amount,hc book value ofthe idle assets was reduccd to the recoverable anount.
In rclation to seis■ lic isolation device manufacmnng equipmcnt, overhead transmission hne manufacturing

equipment,commu前 cation cable manufacturing equipment,electtic power cable manufacttrhg equゎ

ment,wire

hamess manufacturing equlpment,rubber coated wire manufacturing equlpment and winding wtte manufactunng
cquipment,he proatabiLり from he bushess has been worsened and the book value ofthese assets was reduced
to the recoverable amount.
The recoverable arnounts are detemnined atther net sclling prices based on the publshed land price as for leased
lmunication cable
assets and on ttc estilnated sening prices or pubhshed land pice for idle assets.For he co■

manufactunng equipment, he recoverablc amount is the value in use, which is equal to net ttture cash aow
discounted at 2.34%. For the seisHlic isolation device manufacturing equipment, overhead ttansmission hne
manufacturing cquipment,electtic Power cable manufacturing equipment,、 vire hamess rnanufacturing equipment,

nng equipment, thc recoverable

rubber coated wire manufacturhg equipment and winding wire manufactl】
amounts are the net selling prices,、 vhich are statcd at the faif rnarket valuc.

The amounts writtcn down、 vere recorded as losses on imparinent of axed assets.The breakdown oflosses on
impaifment offlxed assets was as follows:
2016

2016

2015

加ο
tts ο
/ノ?リ
rν′

sα ,,お げИrT力 ο

ナsとrorrarsノこ¥…

Buildings and strucmres¥2お 57
2,643

Machincry,cquipmcnt and vchicles

S20手

'18

23,456

Tools,fumttre and ixtures

95

843

Land

253

Lcasc assets

553

2,45
4,08

Ohcr

Location

843
SS3,2132015

Fixcd Assct令Asset Group95¥5,996

2016

2016

s,η ′
s
″
rT力 ο

「
′S
ο
′こ

ょο
J″ ο
″
/ノ ?η)
rν ′

と
了
ο′
ザ 6)
̀:″

Hokkaido

Kanagawa

Land

Seis■ lic tsolation

Buildings and struc伍rcs,machincry,

devlce manufacttring

cquipment and vehiclcs,亡 ools,funliturc andcquipmcnt

flxturcs,leasc asscts and odlers

TianJin

China
Aichi

Hliturc andixtures,leasc cssets atid otherS

Communication cablc

Buildings and structurcs,rnachincry,

manufacttring

cquipment and vehicics,屯 ools,mmittirc andcquipmcnt

fixtures,lcasc assets and othcrs

Electric power cablc

Buildings and stmcmrcs,machinery,

manufacttring

cquipment and vehiclcs,tools,血 miturc andcquipmcn亡

ixtures and lcase asscts

ヽVire harness

Buildings and structurcs,machinery,

manufacturingcquipmcnt and vchiclcs,land,tools,fuHliturecquipmcnt

and ixttres,lcasc asscts and othcrs

Rubber coatcd wirc

Buildings and structurcs,machincry,

manufacturing

equipmcnt and vchicles,toois,fjΠ liture andequipmcnt

ixtures and others

Winding wire

Buildings and structurcs,machinery,

manufacturing

equipmcnt and vchicles,tools,fuHliturc andequipment

flxtures and lcase asscts

ldlc asscts

Buildings and structurcs,land

Totali６
７
４

Kanagawa

cquipment alld vchicles,tooIS,Iもcquipmcnt

０
２
５

Okayama

Buildings and sttucttrcs,machincry,

３
５
８

Aichi

伍ring

1,650

即

Miyagiline lnanuf

■

９
６
０
︐

Overhcad transmission

Miyagi¥8

Leasc asscts

S―

14,644

9

87

9,230

7,570

4,615

4,24

,
16.Income Taxes
正arch 31,2015 and 2016 were aslbHows
Signiicant components ofdefered taxes at Ⅲ
2015

2016
″ο
ttSげ/″,
7′ ′

2016
パと ο
(T力 ο
/
̀ね
ァsと
′
s,
〔
,′

rorr̀〕

Dcfercd tax asscts:

Loss c岬 ‐fOrwards¥6,379¥2,601

S23,083

Unrcalizcd gain on real cstatc

621

621

5う 11

Accrucd bonuses

485

464

4,118

Dcprcciation

944

2,655

23,562

Othcr

1,664

2,401

21お 09Subtotal dcfcrrcd tax assets

10,093

8,742

77,583(8,954)(7,619)(67,616)

1,139

1,123

9,967

Valuation allowance
Tottal dcfcred tax assets
Dcfercd tax liabilitieЫNet defl■ ed benettt assct
ics
Unrealized holding gains on sccu● 屯

(46)

(46)

(408)

(318)

(300)

(2,662)

Proit and ioss叡 可uStmcnt ofthe connection corporation
inttrval busincss

(157)

(149)

(1,22)

Ohcr

(269)

(329)

(2,922)

Total deferred tax habilitics

(790)

(824)

(7,314)

Net defered tax asscts ciabumcs):¥349

Defered tax asscts rclatcd to land revaluation:

Valuttion allowancc

S2,653

1,268

10,756(1,268)(10,756)

Total defered tax assctts rclatcd to land rcvaluation

Defe∬ ed tax liabilitics rclattd to land rcvaluation:(4,424)

Total defeば ed tax asscts ciabJ■ iCS)rclattd tO land revaluation
Net deferred tax liabilitics rclatcd to land rcvaluation:(4,227)(37■ 13)(4,424)(37,S13)¥(4,424)

S(37,S13)

Act for Panial Revision of
The Act for Ptttial Re宙 sion ofhe lncome Tax Act etc."(Act,No.15 of2016)andhe Local Tax Act ctc."(Acto No.13 of2016)wcre OttCially enacted h he Diet and,accordhgly,the corporate

tax applicable to hc Company and its domestic subsidiaries will be decreased effectiveとo■ l Apri1 1, 2016.

Coresponding to his change,the statutory tax rates apphed in calculating defelred income taxes are reduced tom

33.1%to 30。 90/O for he ycars begiming April l,2016 and Apri1 1,2017.For he year on or aner April l,2018,the statttory tax rate w』 l be reduced to 30.60/。

.

As a result of his tax rate chそngc,defered tax liabihics decreased by¥65 million(US$577 housand),and

8 million(USS426 thousand).The variance of hvestmcnt secllrities
hcome tax‐ defered decreased by半 牛
revaluations hcreased by¥16 million(USS142 housand).Meanwhile,defered tax liabiltties related torcvaluation decreased by¥197 million(USSl,748血 ousand),and tte variance of land revaluation increased by¥197 million(USSl,748血 ousand).
17.Financial lnstruments(a)P01iCy for anancial hstruments

Accordhg to tte働 耐 management poLcy ofthe Company,tcmporav surplus ttds w』 l be hvested ttlto hehighly secured inancial assets,and ind procurcmentis prilnarily made by bank loans,Dcrivative ttansactions are
only used for hedghg risk of he signiicant auctuations in hterest rates and foreign currcncy exchange rates,notfor speculative purpose.

(b)Fhancialinsttuments and accompanyhg isks
Trade notes and accounts receivable are exposcd to customer credtt risk.Trade receivablcs in foreign currencies
and foreign― currency loans among the Companies are exposed to exchange rate nuctuation fisk,which is hedged

血rough foreign curency fofward exchange contracts.Investment secl】
securities ofcustomers and cxposed to the rnarket valuc auctuation risk.

Trade notes and accounts payablc noml』

rtties are composed primarily of equity

ly have paymcnt tems of lcss than one year.Although p前of heabovc ttadc payables and foreign― curcncy borowings are exposed to he risk of exchange rate auctuation9 they
currency trade receivables.Long― tcrln debts,which haveare constantly conttoncd wittin he amount of foreign‐
maturity dates within sevcn ycars,are primarily utilized to secure anancing for equゃ ment.BOrowings which are

based on variable hterest rates arc cxposed to interest rate auctuatiOn isk.However,they are hedged tttoughderivative ttansactions,i.e.interest rate swap agrccmcnts,

Der市 at市 e ransactions consist mainly of fofeign curency foTward exchange conttacts which are used forhedging the risk of cxchangc rate ducmations in ttade receivables and payables denominated in foreign currency,
and intercst rate swap conttacts which are used for hedging the risk of interest rate auctuatiOns in borowings.As

hedging policy, appropriate hedge instrumcnts shaH be selectcd per risk categoryo Evaluation of hedgeows

eOectiveness is perfoll二 led by companng cumulative nuctuatiOn of market valuc ofhedgcd items or of cash■with that ofmarket valuc ofhedgin8 1nstruments or ofcash aOws.
(c)Risk mttagement system associated witt anancialinstrumcntsl)Credit risk m孤 lagement cも Sk Ofdefault on paymcnt by counterparts,etc.)
The Companies manage payment tellil and payment balance by customer in order to con,ol and H五tigatecrcdit isks for fmancial difflculties in accordance with the Companies'credit management policy.

When dealing wtth the deivatⅢ e ttansactions,he CompEnieS Only ttade with highly rated inancial
hstimtiOns to minimize hc counterp価 け's credit isks.
2)Market iSk management(Hsk ofexchange rate and i耐 erest rate■ uctuation,ctc.)
The Company utilizes foreign curency forward exchange conttacts to hcdge hc isk of exchange rate
auctuatiOn.Depcnding on the situation of foreign currency exchange market,he Companies use foreignforward cxchange con,acts for ttade receivables denominated in foreign curencyo On the oher hand,hterest rate swap agreements are utihzed to hedge he interest rate fluctuation fisk associated withcorporate bonds and borowings.
The Company periodically reviews he fair values of inancial insttunlcnts,such as marketable securities

and ttvesttxlent secunties, and the fmancial position of he issuers. Based on this infomation andrelationship with the issuers,thc Company evaluates whether the securities should be malntained or not.
Derivative ttansactions are perfolttiled and managed■ l accordance wtth the Companies'credit rnanagement
policy.

3)Liquidiり nsk managemcnt on ttnancing act市 itics(Risk of hability to rcpay on due date)

The Company, as parcnt company, manages ttnd of the group companies. The flnance dcpamlent
and keeps a

prepares and updates flnancing plans pedodically based on tte group companies'necessiけ
risk management.
certain amolnt ofcash in hand for he purpose ofliquidiり(d)OhersupplemcHary in he色 とvalue ofinancial insttuments
ned at the markets priccs or reasonable estirnated fair values

Thc fair values of fmancial insttumcnts are detelll五when he far values are not available.The cstimated fair values win ductuate due to varicty of factors andassumptions.
Info二 Ittiation regarding non‐1■

arkctable oher securities,for which it is extremcly diFicuh to detcIInine the far

value at ttlarch 3 1,2015 and 2016 is shown as follows:
2016

2016

2015

Catting amounts/″
Sと ,〃 ぬ ο
(T力 ο

sQ′ ノ
9〃)
ど
rr。 ″
rν′

′
ア&デοイ
,rs)
〔
Other sccurities

Stocks and invcstmcnts in unlisted companies¥4,615¥4,155¥4,615¥4,155

S36,874

S36,874

The canying amounts and ttlir values of the financial insttunlents on he consolidatcd balance sheet as of March
31 2015 and 2016 are su■ 1=nanzed as follows:
2016

2016

2015

CanyingFatr

amounts

ValucsDttn∝ s Cattying

Fatr

amounts

Valucs

D面 漱謝∝s(1)CaSh and time dcposits¥8,097¥―¥6,410Fair

嫌amounts

アd′οrrと J′ s,
ttα ,P'Sげ 〔(勁 ο)rν !〃 FO,,sげ )ゼ カ

¥8,097

Cttving¥6,410¥S56,887

S56,387

S‐(2)Trade nOttcs andaccounts rcccivablc

42,45

45,526

375,799

A‖ owancc for doubt色 1

accounts

(133)

(51)

45,47545,472

2,745(23,389)(3)

375,666

375,630

2,604

23,11023,110(21,261)(188,685)(188,685)

42,33042,326

2,745

2,604

(23,389)(21,261)(4)(3)InvcStmcnt sccuritiCSand other securitics(4)Trade nOtcs andaccounts payablc(36)

(5)Short‐ teHn borrowings(30,670)(30,670)(6)Long‐ tcH■ borowings(7)Dcr市 at市 c ttans家 瀬ons

(26,480)(26,564)‐84(30pり 2)(30,992)(24,657)(24,546)‐(111)(275,44)(218,823)‐(275,044)(217,838)(985)(i)Hedge accoundng(0)

not applicabに

(10)

‐

(0)

(89)

‐

(10)

‐

(89)

ti)HCdgc accountinB‐

applicablc

‐

‐

1

‐

1

9

9

‑

Nor9sfrrノ

力″ι′θc,s力 α″′′r'ο S,PS
T力 9て

,と

,rニ

!'lg α
ttο ″
Иrι
ノ

J″,♂

:r'メ

'/0″

′αcθ ο″″κ′てを,ο ,sα ヵと
r2, T″ α′

′
″
r″ 河
カセ
,s力 ο
′冽て
′
θ
dカルフ
と″9′″9 rο ど
νヮ竹力て
,′

'W協

ρうた

,て ,で

rて

'Jツ

,″ ο
ヵプαて,ο ″″お′
て
￠げ ′
′
と
,′て
r￠sと と
勁9カ ″ツ
,′ ″

:う

,て ,て

'で

,P″
と
:sと ,メ 0''r力 てたたうsて ,,,ど

∫
肋

"9″

κ

′
rsθ ο
ク″ど′
αセ諺θJカ メ′α′9 θИrrて,ヵ としツと′″θ″s,′ ,=Ψ ヮ′
0ユ
】

''Vι

'″

力?θ′
?′ ″
港た
ο貶1/rて,7″ ,α″′′
″″貶″θ
,ど

=rr,ο

,"′ ,rセ s,И ′ο
′力?′ 彪θ
″″ ,9s′,,ツ ?sど ,″ ￠力r sθ と
,ど

r'ノ

T力 ￠
″?っ 待,,7て
α′
力 ″ツ

々
セ
テ
ィ
θ
″影切″ sぉ うαs?′ ο″9″ οセ′″,α ′
P′ た9
'Sr,″

″
J』 Z′ ,οr̀,sと J″ ι
ゴ
ι
】
θ
θ
ο
r7) T′ と'r'♂

Jbrて ,''APq/とdカ メονs,S,″ gと ,P′ο
ク/て,Cと ど力θPttw,'ど ツと″?轄禅 ど
Jb′ で,お θsrJ″ ,♂ 惚′う斜 ?′ ο〃′′とr̀,〃 。tts α〃′α″ οク,lrdPと Jノと
帰 θ力 ″フと″θο
フ″ :惚
ノど
J′

J′

:′

Iと

rι

′
,メJr′ rd々 rο ο
:″ ′θ
て
ど″
タ
ο,,漁夕
θOフ て セ/'″ と】舵 ψ力 ,ヵ ぉ】9θ ,″￠ιじク′′で,,,ど ′,sて,ο ″
″r′ ι
メ
rて

'リ

ο J,,gsr̲rt,7"う 0′ ′rJ) s力 ο′,,ど ι,α rニ ン g αttο ″Jr'r,70〆
勁 って
,1′

'″

/ο 予
ク
,gr̀,″ 脇 うο′,どοど力?d力 οr′ ″ ,″ ′ノο
:19′″て
αセd力 r′ フα′
ガr力θd"力 S肋 ,″ 9″ 歯 Lο ン
,と

,テ

J″

'gs,7'r力 'η'胸,r"う ο
″οψJヵ g品
,0′ ′ どJ,1ど ο
,,g‐ ′てαrて ,κ てο″￠ノで ′
'α

(,と

rbノ

″ο
ψ,':gsLο ,,grて ,/"う ο
ο
′
′
ο
ν″
,躍 sr′ α
セ∫リカ′
てρ
″う
ヵ
ル′ て
yヵ ′ν
?θ ク
′
確″′
′,sθ ο
ク,sと ,′ ο″′力ο″ονl,,gs,そ うとど
0,1ゴ sα ″′′ο,,grて,/胸 う
α′
ク
￠げじ
ο
セう
勁￠
ttο ′
,力

:''ど

力?,,,と :ど ,1ガ リ セ 初
フr,,gs,7'r力 ど
r roヵ g彪 ′′″ ぅο″ ο予ιs CO′′,ο ′と:佗 う0″

′:ο ″
,7デ ′
カ カ ￠ d̀:胸 θ θO,,′ 】

力

￨ク

's,″

ο″?/α ′α″'′フ0′ V9ユ'″'″

Redemption schedules for cash and ttade reccivables ancf March 31,2015 and 2016 are summarized as follows:
Within l year

Ovcr 5 ycars

Ovcr l year

Over 5 ycars

Within lOver l ycar

and within 5

and within

year

and wihin 5

and within 10

vcars

10 vcars

years

vears

dと ,ゴsげ
″
(勁 ο

〃
ノ
ノノ￠
r〃J〃 .ο パ ο,テys′ ο′′
r̀】

sノ

2015
￥

Cash and time dcposits¥8,097¥‐

Tradc notes and43,4602,066

Total ofthe ainounts¥51,557¥2,066¥6,410¥‐￥accounts receivablc

Cash and dme depOsits

■

2016

SS6,887

S‐

Trade notes and40,685

1,660¥471095¥1,660

Redemption schedulcs for trade payablcs,long‐

teコ m

． ■

accounts reccivable
Total of the amouEltS

361,(167

14,732

S417,954

S14,732

borowings aFter出 larch 31,2015 and 2016そ re summarizcd

as follows:
Within l ycar

Ovcr l year

Ovcr 5 years

Wihin lOver l ycar

and wtthin 5

and w■ hin 10

year

and wlthin 5

and within 10

vcars

ycars

vears

years

′
みrs,
ク
Sα ,,′SοノJd′ ο(勁 ο′,sげ /″)
οrν,〃 ′¥23,389■2015
Trade notes and accounts

Over 5 ycars¥‐

payable︲． ６

S■ ort teHn bottowings

30,6709,246

17,173

Total ofhe arnounts¥63.305¥17,173¥21,261¥‐︲６￥

Longiema borrowings

Trade notes and accounts

■

2016

S188,685

S‐

payable,,69

15,301

Total ofthe amounts¥61,522¥15β 01￥

30,992

Long‐ term borrowings

７ ７
．８
８

Short‐ term borrowings

275,044
82,259135,792

S545,988

S135,7,2

18.Derivatives
The following is a summary ofthe derivative conttacts which do notrneet the crheria for hedge accounting:Currency‐ related Transactions
2016

2016

2015
Contractcd

F孤 r

Rccognizcd

Contracted

Falr

Recognizcd

Contracted

Fair

Recognizedalnountvalucgain(10SS)

ainoun亡value

gain(10SS)

ainountvaluegain(10SS)

p。

/Sゴ ο
〃,″
′
:′∫
。
′こ

d ο
И
/ノ￠
)
留 ′И
l′

dノ

"Jα

'ο

Fopward forcign
cxchangc conttacts
(SCl卜

USD)

¥217

¥1

¥1

(SCll‐

QAR)

321

(2)

(2)

¥145

´
θ′ツと
】
′
と
ゴ
て うノ′
″θ Jdう ,v′ οη ″躍 9″ οrて,″ ″,と:′ た″θdP′ οッユ「ο′ハ
,ffと と
J/ν
て

'ど

̀J′

¥10

¥10

389

Sl,287

S89′J,,Sy,′ ″ど
,0〃 s
θ,とを
'T'И

eet the criteria for hedge accounting:

The fonowing is a summary ofthe derivativc contracts which l■(a) Currency‐ related Transactions
2016

2016

2015
Conttacted

Falr

Recognlzcd

Contracttd

Falr

Recognlzed

Contractcd

Falr

Rccognizcd

alnountvalucgain(10SS)

alnountvaluegain(10SS)

alnountvaluegain(10SS)/S̀イ ο
〃,″∫州卵ゴ,げ 〔
)
T力 ο

ど
′
′
ο
″s9Fノ 9カ)rν′Forward foreign
cxchangc conttacts(Buy‐ EUR)

¥‐

¥‐

¥38

¥‐

¥(1)

¥(1)

S337

S(9)

S(9)

,9″ οセ メ ′「οセ f fb″ ッと,す ック￠sP′ οソIι ′θ′ うノy湧りИθIと Jど ″閤打r″ すOη s
ハJ′ クセ,た うとJs?′ οη チ
カて″と:rた てα′(b) Interest― related Transactions
2015

2016

2016

Cα 屯コ泳迅

Cσntactcd

Far

Conttacted

COnt4Cttd

F汁

Contacted

働 ntracttd

Falrar■ ount

孤nolmt()vervalucamountamountover

valucamountamOuEltOVer

valuc

l)∽

l yearl yearοИs ο/ノ 9″′rν ,μ ばIntcrcst ratc swaps

rT力

ο
″
d,И ぬ げてチS′ οll̀〕 rdノ

Pay/● xcd andReceive/aoating
Long‐ tcコm dcbt

¥13,005¥8,875¥‐¥13,965¥9,436¥‐

S123,935

S83,742

S‐

ゴ
9う お
:′ ″
?οア′
力9 rο ヵg̲彪 脇 と,sr′ αた s,1'ψ sど ′″ι′
θ′ !″ ′
力θヵ ″ ツと力リセ fF,,′ フ♂′クθ ヮ旬力θ加 セ′てα″∫αθr'0カ ね 加θ′

19.Per Share lnformation
Income rlossⅢ and nct assets Der Share rbr theended March 31 2015 and 2016 were as lb1lows:
2016

2015
)
ry￠ ヵ

Incomc(losS)attributablc to owncr ofthc Company per sharc
Nct asscts per share¥074¥11883

2016
οど
r,/s,
(こ /Sι ど¥(29.7)S(0.264)¥82.3430.731

Income(losS)attbutable to owner of he Company per share is calculated based on he hcome(10SS)
attibutable tO Owner ofthe Company and the weighted averagc number of sharcs outstandhg during each year.
Net assets per share are calculated based on he net assets excluding the non― controming interests and the number
ofshares outstanding at the year end.
The basis for calculation ofbasic netincome per share was as follows:
2016

2015
sげ/И)
〃わ″
rν ′

2016
″
S,И ぬο(勁 ο/[/S♂ 0′r,″d)Income(losS)attributable to owner ofthe Company
lncomc(losS)attributablc to shares ofcommon stocに

¥229
¥229

rT力

Wcighttd average numbcr ofsharcs for bastt netincomc¥(9,151)

S(31,12)¥(9,151)

S(81,12)οクs,′ κなりr訪 ,確 ッ308,146

308,139

20.Other Comprehensive lncome
ReclassincatiOn adiustments

and tax benefltincluded in other comprehensive income are shown as follows:
2016

2016

2015
ry′

rど ,ο

υ ″ I,1ぬ 0/
rr,rs,〔ガSどο〃sο/ノ ?刀)ttο

SとNct unrcalizcd holding gains(10SSCs)on othCr sccurnics
lncrcasc(dCCrcasc)during the year

¥276

Reclasstication attusttacnts

(499)

(11)

(98)

Subtotal bcforc tax

(223)

(144)

(1,278)

101

17

150

(122)

(127)

(1,128)Tax erect
Net unrealizcd holding Bains(10SSes)om other sccujtics¥(133)

S(1,180)

Defered gains(losSCS)On hCdgcs

７
① ９
・ 的

lncrease(dCCrcasc)during dae year(1)

Net dcfcttcd gains(losseS)On hedges
Variancc ofland rcvaluation

Tax crcct
Forcign curency transiation attustmCnts

lncrcasc(deCrease)dujng hc ycar

(9)

1,748

(408)

Rcmcasurements ofdcincd bcncat plans(2,212)(19,631)

641

315

2,796

(1,897)(16,835)22

195(1,875)(16,640)︲ ︐445

Subtotal bcforc tax

６８
一０lncrease(deCreasc)du封 ng thc ycar
Reclassiication ad」 ustmcnts

５
０
７
コ

Tax ercct
Net rcmcasurcmcnts of dettned benefit plans
Share ofothcr cOmprchcnsive income ofafrlliatcs in cquity methodlncreasc(dCCrcasc)during the year

Total othcr comprchcnsive income

21.Segnent lnlormation
Business Segments
The businesses ofhc Companies are di宙 ded based on he similarity in products and seⅣ ice categories into ive
clasmcttions whose rmancial hfomation is separatcly available for he managcmentto make decisions
rcgardhg management resollrccs allocation and evaluate each bushcss segment results regularly.

The Companies primarily opcrate h tte following avc repOrtable bushess segments:(1)Elec,ic WiR operations:
Bare conductors,血 bber,plastic insulated wres,pOWer disttibution equipment,bus,overhead trans■

五ssionlhe(2)Power Systcm operations:Electtic power cables,electtic powcr apphance,power cable constructions(3)WIa8net Wと c operations:
Magnet wと cs(4)Conlmunication System operationsi
Optical flber cables,colxmunication cables,coIImunication accessories,optical components,connector,
COIXlmuniCation cable consttuction,network solution system(5)De宙 ce operations:

Wと e hamesses,seis■ 工c isolation,vibration conttolling and noise con仕oHing deviccs,copier and pr■ lterdevlceShce EXSYM Corporation was mergcd wih SWCC Showa Cable Systc■ ns Co.,Ltd on October l,2015,power
disttibution equゃ ment,bus,ovettcad transmission line which were hcluded in power system operations before

have been transfered into electtic wと c operations tom慢 五s iscal year.Under the new business segments,therch 31,2015 has also been changed.
Others"which is not stated as reportable bushess segmentク includes the businesscs ofbusiness segment info111lation for the ycar cnded MそThe bushess scgmentsuperconducting wと es,logistics and other operations.

Repoiable segment income(losS)iS eValuated based on opcrattt income or loss.The htersegment sales and伊ansfcrs bctween segments arc made at allll's length prices.

The business segmcnt infollllation for tte Companies for he year ended March 31, 2015 is sunllnarized asfollows:

Tぬl

軸

Ch曲

´蜘 帥 軸潤rνJ〃 rο 淋 げ/″′Nct salcs¥86,772

Outsidc customcrs¥23,596¥22,708¥21,640¥25,006¥1,972¥181,694
34,032(34,0,2)¥‐¥181,694

21,596

183

686

978

183

10,406¥108,368¥23,779¥23,394¥22,618¥25,189¥12,378¥215,726¥(34,032)

Scgmcntincomc(10SS)¥1,075¥(881)

¥(48)

¥457

¥990

¥(344)¥1,249¥(12)¥1,237

Segment assets¥49,465¥29,590¥14,143¥18,305¥16,163¥10,922¥138,588¥(565)¥138,023

741

455

359

536

667

851

3,608

(119)

3,490

mcdlod attliダ 低

2,894

991

120

4,006

Increase in ttx assets

1,382

562

1.172

5,066

lntcr scgmcnt
Total

Depreciation¥181,694

hvettnents m equけ

629

616

705

4,006
4,998

(68)

,∫ f
′
Yο チ
て

)sθ g

r′

′
′
力〃
て
,′ ο
4′プ
ク冴♂′ 力 ′″舒盟￠力rs 2勾 守 2脇 J′ 力ο耽 脇,ブ ヵ′θ″ど力θομθ FOsツ 肋θ′ノ θOη ∫ね´
デ クηr￠ ,′ 彦θ′gと Jカ ヮ勾守∂μゲο力θθομμο″α郎 9簿 ηOr α〃οθαセ′′ο獅 びj脇 ブ〃ブοη,用 ,ど η′クι′θ′ 力 И プ″∫ど,″ θ
ヵど
,α ″,0″ ηセダ′ノ θοη∫ねた′ 9〆 す
存り S9gttθ ηr α∫∫9ぬ 力θ′
一
g,滋
ラ
Jο
″
′
″
″
α
′
Jz″
,''r″ αηdα θr′ οИ∫ο′ ,ガどカカ′s皓 脇て
α,2ノ ∫鱈 脇￠〃 げ η ′,77脇 ヴ′′ブοη,￠ ′
阿力αrJο 〃 げ 丁,′ J〕
げデ¥287」 ″ ′
′
J万 9∫
?ρ
ο
sぬ
α
η
′丁
η
ツ
9srttι
ηrd?θ
″′0デ θ斜 力,rデ ″θ′οαヮ ∫?gttθ ″′″,力 ′脇√′′,ο η T力 ?θ ο
加脇οη ρ∫∫9′ ∫ηOr,〃 οθ,セ ′どノ θO″ ∫ねルと
̀ザ

rJノ

4η ヶ
∫θO′ ′てρOη と′
S rο ″ヵ′θρ′JZθ ′gα カ
Dて ,Prて ,θ 洟
ク′
ゲ
Oη ブ
ηッ
ク∫″,9η ′'∫Й 7′ g,Jηヵ θ′θ,d♂ デηテ イ￠′ ,郎 θ′∫力 ИもuS伽 9″ 恋 じ0′ 躍 ∫F'Oη ゐ rο ク″rθ α′
ο″ θψ O々 ゐ サοθοttο ′財 αセ′ ψ θ′αr,4g,ηθο脇9
rjジ s9gttι 肪 力θOttθ FO∫ ツ θ
r7りThe businessfor hemfoliュ ェ
ation for heended lMarch 31,2016 is sunHnarized as followsi

Rcportable Busincss ScЯ mcnts

2016
Scttcnt∬o嗣 lon

ElccLic

PoⅥcr

醜 glldi

的

帥

Wre

翫磁れ1

Vrc

翫輸

酌

Totil ttmng・

0血鰯

儘

1低

0躙 幽

〃,ο ,,∫ げ/ηノrν ュ
Nct sales

Outsidc customers
lntcr scgmcnt
Total¥80,053¥22,778

整21,959¥21,713

望21,24¥1,986¥169,713

18,030

140

1,66

,36

276

10,11930,767(30,767)¥98,083¥22,918

当23,225¥22,649¥21獨 00¥12,105¥200,480¥(30,767)¥169,713¥―¥169,713

Scgmentincome(10SS)¥1,057¥(472)

¥15

¥751

¥(68)

¥(432)

¥851

¥100

¥951

Scgmcnt assets¥46,964

挙23,982¥12,903¥17,052¥12,433¥10,962¥124,96¥(1,227)¥123,069

747

431

449

565

671

954

3,817

(117)

3,700

105

3,548

1,505

4,076

Depreciation

hvestnents h側 面げ
2,458

method a伍 liates
lncrcasc in ix asscts

2016
鞠

3β 48

3,983

(93)

Rcportablc Busincss Scgmcnts

担飩 ∬ Omコ 10nr
W・ C POれて

唖

S、

―

醜 gll(党

¨

WIc

S、

酌

儘

剌 mm

Ohc=s Total

働 帥 閥

駐m

ナ
ユと
rο ′
′
と
】
′
dノ
″
ο
′
S,η ′
Sげ こ
『

Net salcs

Outsidc customers
lntcr scgment
Total

Segmcntincomc(10SS)
Scttcnt asscts

Sl,506,150

S710,446

S202,148

S194,879

S192,696

S188→ 56

S17,625

Sl,S06,150

160,011

1,42

11,23S

8,07

2,449

89,804

273,048(273,048)

S870,457

S203→ 90

S206,114

S201,003

S190,805

S107,42,

Sl,779,198

S(273,048)

S9→ 81

S(4,189)

3133

S6,665S(603)

S(3,835)

S7,5523889

S8,441

S416,791

S212,833

8114,510

SlSlβ 313110お 39

S97,284

31,103,088

S(10,389)

81,092,199

6,629

3,825

3,985

5,014

5,955

8,466

33,874(1,038)32,836

21,314

8,742

7,677

2,893

3,168

4,650

Dcprcciation

S‐

Sl,506,150

hvesulrlents n cqulty

mchod a伍
"atcs

lncrcasc in Sx asscts

31,48731,487
4,428

13お

S7

36,173(825)

35,348,dl
Ⅳο′て′θα力Z?′ gと を
力 6ア
9と ♂0ア クη
Sd879肋 οクdα ηり ,脇 α力′
dOデ こ
つ9″ ,デ ′力ο″ r〔 ア′s筋 ￠〃′ノ θOη Sな ど
ノ s3g躍9η rヵ cο ttθ r′ οdッ ヵθル冴9′ 力 И′ァ

r′

2靱 ブ
望ヨ
′
力οη 〔
USSワ 8肋 ο″dα η妙r2ノカ￠θο″″夕οη∫佗′ げ チて,′ チ
ογ/,2,7躍 J′ 力οη (USS′ α∂∂9′力οク∫α刀′S9ζ脇9η r αd∫ ι簿 ヵθ力房9′ 力 Иブ),μ α力′ノ θοη∫′
ノ″s′ 胸θヵrs,脇 οクヵチ

j2肋 οク∫α″′),冴 ブ脇力″ デοη げ カセ作Sて ,g脇 ￠所 ″,η ∫,θ チブOη ∫げJο η rySJ∂ 7,θ
′ο,ヮ ∫9gttθ ηr 9′ ヨ
リ ,77′ μ ,ど ′α∫∫￠た ηOr α′
οcと 9′ 才
:ど

jjj

鶏

ワ ,′ 7,脇 ゲ′
ゴοИ wSS′ 完 θ′∂ r力 ο″∫,脇 り 冨みθθο″,″ ,ο ηα硝9た 力Or彦θとrgα ヵ 。
′ヴ〃√
ο力 r[/Sじ 7玩 923脇 ο′∫αИ′),力 ′″ηttα ′デヨ,g″ 9刀 rヵ ,α デα′′οじαセ′′
οαり ∫てη′ノ θO'TSねr3)Dて,r'r̀夕rてο/θ 斜 力,″ ″,θ ′θPO∫ ね αη′ カッ9∫ 願 9〃 ∫θθ′rFrセ ∫
.

'′

′
?α ′
彦θ
′gと と
滋
θ
ttrデ Oヵ 力И
∫r″ ,9η ´
∫θ
O′ ′
て η
′
∫′
ο″
η
ガ″
'dr'ο

,SF'ο ″ぬ ′沈 ′送力 Иリ ク∫′″:θ tt θO′ ′て
οク,T″ α′ガ ηr7)力 θ′9,∫ 9カ デ虜″
'SS弥
g,η
,′ ο
′
〃
T?Tο
乱
θ
ο
′
′
θ
SF'ο
刀
と
ゴ
∫
rο
θ
ο
〃
∫
ο
′
げ
′
ク
θ
α
r力
θ
ο
″9
s9g″
:θ
η
rヵ
θ
ο
り
rり
ュ
.

rて

̀″

The consolidated company of SWCC Showa Cable Systems Co.,Ltd.addhionany increased capital ofamliatedcompany accountcd for by the equity‐ method ofFuTong― Showa Electtic Wire&Cablc(HangZhou)Co.,Ltd forthe year ended Mそrch 31,2016.As a result ofthis acquisition,gain on bargain purchase of¥31 milllon wasrecognized.

Geographical Segments
Gcographical segment sales for the years cnded March 31,2015 and 2016 are summarized as follows:
Japan

Asia

Othcr

Total

¥157,390¥23,960¥344¥181,694

Asia

Othcr

Total

Ycar cndcd March 31,2015

Salcs

Year ended March 31,2016

」apan

ヽ
イ て
,ヵ dQ′ ノ
9カツ
lザ r′

r′

¥150,729

Salcs

Vear endedヽ ′Iarch 31,2016¥18,700¥284¥169,713

Asia

Other

Total

Japan

″
v:′ fども
ο
ど
と
]/s,
Sどοど
/〔 ア
rT力 ο

Salcs

Sl,337,673

S165,957とイうどο
4rヵ 9￠ ″srο ″lθ ぉ 廷ザVο ど?∫ Cο ″
′万 と
,И セ
了,κ と
,̀ユ κ S9即 9'1と ￠
斜￠
′
ャο と

rど

:メ

,ど

=′

'力

S2,520Sl,506,150,,と ,。 ′
ο
て
,s

'̀'α

Customer lnformation
2015
MttOr CustOmer

Sales″′ ηs。/)′ ?″)Scgments

SENSHU EttCTRIC CO,ETD¥23,766

Elcctric Wire and Communication Systtm

rr,。

2016
MaiOr CustOmer,sο/ノ ?リ
Salcs rνl〃 fο ′SENSIIU ELECTRIC CO,ETD¥17,S4

Segments
Electric出 lre and Communication Systtm

2016
MttOr CustOmer

SeЯ mentss̀】ヵdο/こ /Sと rο ′ど,/sノ
Sales rT力 ο″′

SENSHU ELECTRIC CO,LTD

Electricれ lre and Communication Systcm

S153,124

Segment infornation on impailィ nentlosses on flxed assets fbr the years ended March 31,2015 and 2016 aresummarized as follows:
Rc,oHablc Busincss Se=inents

Year ended March

Electric

Powcr

Magnct31,2015

Wire

SystcmWirc

Communlcttion

DeviceOthersEliminations

Total

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¥8

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Rc,oHablc Busincss Settments

Year ended March
3

2016

Elcctric

Powcr

MagnetCommunication

Wire

SystcmWirc

SystemDeviceOthcrsEliminations

Total

¥(17)

¥5,996〃FO盗 げ/〃rν′ImpaiHncnt iosscs ofΠxed assets¥1,545¥854¥336¥1,040¥2,186¥52

RepoHablc Busincss Scgments

Ycar cndcd March
3

2016

Elect● c

Powcr

MagnctWirc

SystcmWirc
rT力

Impaiment losscs Of

S13,71l

Communication

OthersEliminations

Total

S(150)

S53,13

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S9,230S19,400

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22.Corporate Combinttion
Transactions under conunon con仕 ol(1)OVerview ofttansactions(i)Name and desc五 ption ofbusiness involved in combhation

Name of■lerging company:SWCC Showa Cablc Systems Co.,Ltd.
aber cablcs

Descrゃ tiOn OfbusinessI ManuFacture and sales ofelecttic wires,cables,optic』

Name ofmerged company:EXSYM Corporation
Descttption ofbusinessI Manufacture and salcs ofelecEc wres,cables(ii)Datc ofcorporate combination

October l,2015(iii)Legal foan ofcorporate combination
Absofption― type company merger h which SWCC Showa Cable Systems Co。

,Ltd bccomes a succeedingcompany and EXSYM Co￢ poration becomcs a rnergcd company.
(市 )Name ofcompany after combination

SWCC Showa Cable Systems Co.,Ltd.
(V)OthCrs‐

Under the severe business environlncnt due to electnc power company's reduce ofinvestment in plant andsalcS,
equipment,in ordcr to respond to he market changes,such as iberalization ofretail electticiけ
爵paration of electtcal power pЮ duction tom power disttbution and transmission,redevclopment ofTokyo
region,electric intastructure demand incrcases in Asian area and etc.,in a tilnely manner,his busincss
combination is intendcd to reaHze the conversion to bccoming an effectivc ofgan壺

質ition.

(2)Outlhe Ofaccolmting tteatment applicd

The ttansaction was treated as ttansaction under conllnon con,ol■ l accordancc with thè七 へccounting

Guidance
Standard for Corporatc Combination''(ASBJ Statemcnt No.21 issued on Septembcr 13,2013)andon Accounthg Standard for Corporate Combhation and Bushcss D市 estimres''(ASBJ Guidance No.10 issued
on September 13,2013).

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Independent Auditor's Report

The Boald of Directors

SWCC SHOWA HOLDINGS CO.,LTD

We have audited he accompanying consolidated financialstatements of SWCC SHOWA HOLDINGS CO.,LTD.and its consolidated subsidi割 直es,which compise the consolidated balance shcet as at Ⅳrarch 31,2016

and the consolidated statcments ofoperations,comprehensive incomeラchanges in net assets,and cash aowsfor the year hen ended and a sunllnary ofsi8nticant accounting poLcies and other explanatory info二皿latiOn,an expressed in Japanese yen.
g〃 ぬ 尺9平 ,ο ηsわ /′疵筋輝αg【 ,〃 夕
(7μ 9刀 鶯
ν/ο ′肋9 Cο ttο ri″♂r?♂ F,η α,夕 じ触′Srα ′ⅣIanagement is responsible for the preparation and fair prescntation ofthese consolidated fmancial statementsin accordance with accounting pinciples generaHy accepttd in Japan,and for des18ning and operating suchinternal conttol as management deterinines is necessary tO enable the preparation and fair presentation of
the consolidated financial statements that are ice froni Fnaterial rnisstatement,wheher due to fraud or e∬И脇カル為 父?∫P伊 勾わデ
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ν

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Our resド onsibiliけ is to eXpress an opinion on hese consolidated flnancial statements based on our audit.

We conducted our auditin accordance wh audhing standards generally
cepted in Japan.Those sttndards
require hat we plan and perfol皿 i the audit to obtaua reasonable assurance about、 vhether the consolidated
financial statements are free from mtterial misstateme五.

An audtt involves perfoI.1五 ng procedures to obtain audit evidence about the amounts and disclosures in
the consolidated inancial statements.The procedures selected depend on the audittr'sjudBment inCtuding
the assessment ofthe isks ofrnaterial lnisstatement ofthe consolidated financial statements,、
vhether due
to fraud or error.The purpose of an aud■ of the consolidated flnancial statements is not to express anophion on he erect市 eness ofthe entiサ 's intemal contЮ l,but in making these isk assessments he audttor
considers intemal con廿 ols relevant to the eHity's preparation and fair presentation of the consolidated
inancial statements in order to design audit procedures that are appropiate in the ctrcumstances, An
audh also includes evaluating he appropnateness of accounting policies used and the reasonableness ofaccounthg estimates made by management,as wcu as evaluathg he overall presentation ofhe consolidated
inancial statements.

We believe that the audit evidence wc have obtained is sufflcient and appropiate to provide a basis forour audit opinion.

Op加 ′
ο刀
In our opinion,he consohdated financial statements refeITed to above present

色測y, in all mate五 alrespects,仕 le consolidated fmancial posttion of SWCC SHOWA HOLDINGS CO.,LD.and■ s consolidated

subsidiaies as at"生 arch 31,2016 and ther consolidated financial pcfoI二 二二ance and cash aows for the year
hen ended in confottЩ ity with accounting principles generally accepted in Japan.
Cο 刀ッ9η ttη じgT″・♂,7∫ ′αrデ οη

We have reviewed the ttanstation of these consohdated flnancial statements into U.S.donars,presented
for the convenience of readers,and,in our opinion,the accompanying consolidated financial staternents
have been properly ttansiated on the basis describcd in Notc 4.

June 24ク 2016

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