15’
ANNUAL REPORT
for the year ended March 31, 2015

Contents
01

Financial Highlights (Consolidated)

02

Message from the President

04

New Medium-Term Management Plan:
JGP201706

Our Business Domains

08

Review of Operations

10

Special Feature

14

Research and Development

16

Corporate Governance

20

The Environment

22

Board of Directors, Corporate Auditorsand Executive Oﬃcers

23

Financial Section

24

Financial Performance (Consolidated)

48

Corporate Directory

51

Network

Forward-looking statements
The performance forecasts included in this report are judgments
based on the information that was available to the JSW Group at thetime this report was prepared and the actual results may differ
significantly from these forecasts due to a variety of factors.

ProfileIn 1907, the Japanese government launched a joint venture for the
purpose of domestic weapons production in Muroran, Hokkaido—later tobecome a major steel manufacturing center—consisting of two British
firms (W.G. Armstrong and Vickers) and one Japanese company. That was
the birth of The Japan Steel Works, Ltd. (JSW).
After World War II, the company turned its sophisticated technologies andconsiderable experience to meeting peacetime needs. Continuing to
produce high-quality steel, it developed machinery making use of thissteel and endeavored to open up new business fields. In addition to heavy
and chemical industries such as electric power, steel, shipbuilding, andpetrochemicals, the company broadened into areas from automobiles toelectrical machinery and information equipment, earning a worldwide
reputation as an integrated producer of steel materials and machinery.
Today, having grown into a comprehensive materials provider andmanufacturer of mechatronics products, JSW is meeting society’s needs
at the forefront. In the steel and energy products business, we are serving
the needs of the energy industry in areas such as electrical power
generation, oil refining, natural gas, and wind power generation. In theindustrial machinery products business, we supply equipment for
manufacturing and processing plastic materials, along with a diverse
range of products in areas from information technology to defense.

Financial Highlights (Consolidated)
The Japan Steel Works, Ltd. and Consolidated Subsidiaries
Years ended March 31, 2015, 2014 and 2013
Millions of yen

Thousands of
U.S. dollars

2013

2014

2015

2015

¥220,653¥188,719¥194,674$1,619,988

Operating income

16,680

8,864

8,217

68,378Net income (loss)

8,281

5,527

(3,740)(31,123)

Total assets

303,970

293,139

321,083

2,671,906

Total net assets

134,368

139,268

139,821

1,163,527

ROE

6.3%

4.1%

(-2.7)%

Equity ratio

43.8%

47.1%

43.0 %Net income (loss)¥22.33¥14.92¥(10.10)$(0.08)Cash dividends applicable to the year

10.00

5.00

4.00

0.03

For the year
Net sales

At year-end

RatiosAmounts per share (yen and U.S. dollars)Note: Amounts in U.S. dollars are presented solely for convenience and based on the rate of ¥120.17 = US$1.00, the rate ofexchange on March 31, 2015.

Net Income (Loss)

Yen

2012

2013

2014

2015

2015

33.93

44.54

22.33

2014

-6,0002011

0(10.10)

0

15.0

14.92

0

(3,740)

8,281

6,000

30.0

5,527

60,00012,000Net Income (Loss) per Share

45.0

12,591

194,674

120,00188,719

180,000

220,653

18,000221,368

Millions of yen

240,000

212,929

Millions of yen

16,532Net Sales

2014

2015

-15.0

2011

2012

2013

2011

2012

2013

01

Message from the President

Overview of Fiscal 2014

manufacturers in emerging nations, along with adelayed recovery in the market for nuclear power

Business performance

products.
Under these circumstances, the Group02

In fiscal 2014, ended March 31, 2015, the world

advanced its business activities with the aims of

economy overall continued on a moderate recovery.

“improving profits and efficiency while pursuing

In Asia, there were signs of an economic slowdown inrevenue scale” and “enhancing asset efficiency andChina as well as in some other emerging nations.

profitability.” For the year, total orders amounted to

Meanwhile, the U.S. economy recovered modestly¥205,906 million (US$1,713 million), up 10.4% fromthanks to healthy personal consumption, and thethe previous fiscal year. This improvement was due

European economy continued showing indications

to increased orders generated by both the Steel andof a turnaround. The Japanese economy as well

Energ y Produc t s Business and the Industrial

recovered moderately on the back of higher

Machinery Products Business segments. Net sales

cor p or ate ear ning s , couple d with improve drose 3.2%, to ¥194,674 million (US$1,619 million),

employment and worker income conditions, despite

owing to higher sales in the Industrial Machinery

signs of weak personal consumption owing to a

Products Business. Operating income declined 7.3%,

pullback in demand in the wake of the consumption

to ¥8,217 million (US$68 million). However, we

tax hike.

reported a net loss of ¥3,740 million (US$31 million),

The operating environment for the JSW

compared with net income of ¥5,527 million (US$45

Group remained challenging. Despite improving

million) in the previous fiscal year. This was due toexport conditions thanks to yen depreciation, as wellprovision for loss on wind power business, booked

as an expanding market for molding machiner y

as an extraordinary loss.

related to automobiles and IT equipment, the Group

Looking ahead, the world economy is

faced intensifying global competition driven by

expected to recover moderately, driven by the U.S.

Message from the President

and other industrialized economies, and theJapanese economy is also forecast to continue its
modest recovery. However, the economies of China
and emerging nations, as well as Europe, have
unstable element s, including downside risk,
geopolitical risk, and the effects of low crude oil
prices. In summary, therefore, the economic outlook
remains uncertain.
Facing these challenges, the JSW Group has
formulated a new medium-term management plan,
entitled JGP2017, covering the three-year period
from April 2015 to March 2018. Under the plan, we
will advance our business activities according tothree basic policies: “Increase earnings power ofexisting businesses,” “Foster and swiftly mobilize
new products and businesses,” and “Reinforce
Group management and promote alliances.”
For fiscal 2015, the first year of the plan, ourconsolidated forecasts are: orders of ¥210.0 billion

June 2015(US$1,747 million), net sales of ¥210.0 billion(US$1,747 million), operating income of ¥10.0 billion(US$83 million) and net income attributable toowners of parent of ¥6.7 billion (US$55 million).

Ikuo Sato

Representative Director & President

03New Medium-Term Management Plan:
JGP2017(JSW Group Growth Plan FY2015-2017)

1 Corporate Vision and Numerical Targets“Advancing toward Top Global & Niche Corporate Group”
Aiming to achieve top share at key points in customer value chains

JGP2017(Billions of yen)

JSW Group (Consolidated)

FY2014 (Actual)

FY2017 (Plan)

FY2020 (Goal)

Net sales¥194.6More than ¥220.0

More than ¥250.0

Operating income (ratio)¥8.2 (4.2%)

More than ¥13.0 (6%)

More than ¥20.0 (8%)

ROA

‒1.2%

Above 3%

Above 4%

ROE

‒2.7%

Above 5%

Above 8% (*)(*) Increase earnings power and improve asset efficiency to swiftly achieve ROE of higher than 8% after JGP2017

2 Basic Policies for JGP2017
Policy 1

Policy 2

Increase profitability of existing businesses

Foster new products & businesses and makethem competitive as soon as possible▶ Pursue product & service differentiation▶ Strengthen total-cost competitiveness▶ Develop service & solution businesses▶ Reinforce initiatives in growth markets▶ Promote businesses based on core management
resources▶ Optimize timeframe and systems for promoting
new products & businesses

Policy 3

Reinforce Group management and promote alliances

Strict management control based on Action Plan (implement PDCA)
04

New Medium-Term Management Plan: JGP2017

3 Business Strategies by Segment
Steel and Energy Products Segment(Billions of yen)

FY2014

Defensive management
Defensive management

Net sales
Operating loss

Achieve steady growth and prepare for renewed growth after JGP2017▶ Improve asset efficiency and productivity▶ Review and selectively strengthen
product lineup

Reduceinvestment

Reviewbusinessdomains

FY2017

Maintainprofitability

Net sales
Operating income

Industrial Machinery Products Segment(Billions of yen)

FY2014

Offensive management

Net sales¥126.3Operating income ¥11.3

Identify growth opportunities and accelerate business expansion▶ Restructure production lines in Hiroshima
and Yokohama plants to improve
productivity▶ Actively promote and utilize alliances

Pursuestrategic
investment

Expandbusinessdomains

4 Financial Strategies

Improve ROA

Improve ROE

FY2017

ROE ≥ 5%
ROA ≥ 3%Returns to shareholders

Cash flowfromoperatingactivities▶ Implement stable dividends(30% payout ratio)*Consider total return ratio in balance withgrowth investment

Investment in growth
Capital investment

Improve asset efficiency

Financial leverage control

FY2017

Net sales¥152.0Operating income ¥13.0

St re ng t h e n c ash ge ne r at ing c apacit y forsystematic and steady investment in growth;
regularly examine investment impact (PDCA)

Increase operating income▶ Improve CCC(cash conversion cycle)▶ Reduce working capital▶ Effectively utilize assets

Achieveand expand
stable profits

Increase shareholder value by strengthening cash
generation and effective cash use

Set, measure, and control KPIs (key performanceindicators) for each segment to improve ROA(PDCA)

Profit-to-sales ratio target(FY2017) ≥ 6％
▶ Improve gross profit▶ Enhance productivity▶ Cut costs

¥66.0
¥1.0

Procurementof other funds(Including
review anddisposalof assets)▶ Renewal/maintenance of existing
facilities▶ Boost production capacity forcurrent products▶ New facilities for new products
Alliances▶ M&As, capital tie-up

Create new revenue sources

Muroran Plant Restructuring Project¥ 66.2¥(3.2)

05

Our Business Domains
The JSW Group comprises 48 subsidiaries (of which 31 are consolidated) and three affiliates (of which one isan equity-method affiliate). Our operating domains are the Steel and Energy Products Business, theIndustrial Machinery Products Business, and the Real Estate and Other Businesses.
We maintain the Muroran, Hiroshima, and Yokohama plants. Our integrated lineup ranges from steel
manufacturing to machinery.

Steel and Energy Products Business

Sales Composition

34%

Steel Products
At the Muroran Plant, which manufactures steel in electric furnaces, we produce
a broad range of cast products and steel ingots for forged products. In ingots forforgings, we have one of the worldʼs largest production capacities, of 670 tons.
Our range of presses and hammers of various types and sizes, including two
14,000-ton hydraulic presses, ensures that we can deliver forgings in any needed
shape. After undergoing heat treatment, machining and finishing, the cast, andforged steel products are used in the electric power generation industry (fossil
fuel, hydroelectric and nuclear) as well as for steel-making, oil refinery, andindustrial machinery and facilities. In addition to being a leading global supplierof numerous extra-large cast and forged steel products, our plants produce awide range of high-quality small and medium-sized steel cast and forgedproducts.

Business Lines
Production and sale of products
for power generation industries,
steel-making, nuclear power-related
equipment, die materials, andother areas

Steel Plates and Structures

Wind Turbines

At the Muroran Plant, which has one of Japanʼs largest 4-thick plate reversing
rolling mills, we can roll high-quality, extremely thick, wide, and long steel plates(maximum thickness: 350 millimeters, maximum width: 4.8 meters, maximum
length: 20 meters). Using advanced manufacturing technology we now mainly
produce high-quality clad steel plates and clad steel pipes using clad steel
plates. All of our products are used in a wide range of industrial applications inJapan and overseas, giving this business a unique profile. In addition, theMuroran Plant integrates the various forged steel products it manufactures andleverages the Companyʼs state-of-the-art welding technologies and facilities to
produce very large welded structures, such as pressure vessels for oil refineries
and petrochemical plants, in an integrated process extending from raw
materials to finished products. As a result, we are meeting demand both inJapan and overseas.

The JSW Group entered the wind turbine system business in 2000. Leveraging
state-of-the-art technologies, including permanent magnet synchronous
generators, we make low-noise wind turbine system equipment that excels interms of function, performance, and reliability and is also environment-friendly.

06

Business Lines
Production and sale of products foroil refining, petrochemical, generalchemical, and chemical machinery,
as well as a wide range of pressure
vessels, clad steel plates, clad steel
pipes, extra-thick steel plates, andother areas

Business Lines
Production, sale and maintenance ofwind turbine system equipment

Our Business Domains

Production encompasses steel casting and forging products (Muroran), steel plate and steel
structures (Muroran), wind turbines (Muroran), plastics machinery (Hiroshima and Yokohama),
and other machinery (Muroran, Hiroshima, and Yokohama). We have responded to changes in theindustrial structure by diversifying our businesses and launching environmental businesses.

Industrial Machinery Products Business

Sales Composition

65%

Plastics Machinery
At the Hiroshima Plant, we produce injection molding machines, pelletizers,
twin-screw extruders, and film and sheet manufacturing equipment. At the
Yokohama Plant, we produce blow molding machines and spinning extruders.
In injection molding machines, we offer a lineup of electrically driven machines,
all of which feature both improved productivity and energy-saving standards
along with enhanced basic performance and molding precision. We also haveleveraged power regeneration technology already in place while creating moreadvanced temperature controls, thereby conserving even more energy. To
respond to diversifying needs in these product markets, we have established aTechnology Development Center within the Hiroshima Plant and engage inwide-ranging consultation with product users, enabling us to put in place anintegrated development system to cope with changing demand, from plastic
manufacturing to processing machinery.

Business Lines
Production and sale of plastic injection molding machines, plastic production and processing machinery(including pelletizers, compound extruders, film and sheet manufacturing
equipment, etc.), and blow molding
machines

Other Machinery
Supported by proprietary technologies and facilities at the Hiroshima,
Yokohama, and Muroran plants, JSW produces industrial machinery for a wide
range of demand, including defense equipment, power plant equipment,
magnesium alloy injection molding machines, laser annealing systems, rollingstock parts, and environmental facilities.

Business Lines
Production, sale and maintenance ofcompressors, hydraulic machines,
machinery for the production of electronic components and displays(laser annealing systems, thin-film
coating machines, etc.), magnesium
alloy injection molding machines,
tightlock couplers and dampers, anddefense equipment

07Review of Operations
Steel and Energy Products Business
Steel Products Sector
Steel Plates and Structures Sector
Wind Turbines Sector

Performance in Fiscal 2014
Total orders in the Steel and Energy Products Business amounted to ¥68,418
million (US$569 million), up 19.8% from the previous fiscal year, reflecting
positive customer evaluation of our clad steel pipes, which attracted large-scaleorders.
Sales in this segment declined 2.1%, to ¥66,215 million (US$551 million),
due to lower sales of clad steel pipes, which more than offset higher sales ofelectric and nuclear power products and clad steel plates.
The segment posted a ¥3,200 million (US$26 million) operating loss, an

Shell flange used for pressure chamber
for nuclear power plant

improvement from a ¥3,606 million (US$35 million) operating loss in theprevious fiscal year. Efforts to cut basic costs helped reduce the magnitude oflosses for the year.

2014

2014

2015

30,000

0

0

2012

08

66,215

2013

67,60230,00060,00088,27590,00068,41890,00057,128120,000

61,390Millions of yen

120,000

78,068Millions of yen

60,000Clad steel plate

Sales

105,001

Orders Received

2015

J82-2.0D wind turbines system

2012

2013

Review of Operations

Industrial Machinery Products Business
Plastics Machinery Sector
Other Machinery Sector

Performance in Fiscal 2014
Total orders in the Industrial Machinery Products Business grew 6.9%, to¥135,389 million (US$1,126 million), thanks mainly to increased orders formolding machines, particularly from the automobile sector, as well as healthyorders for laser annealing equipment.
Sales in this segment rose 6.7%, to ¥126,363 million (US$1,051 million),
thanks to sales growth for plastic production and processing machinery andmolding machines, despite lower sales of laser annealing equipment, which
generated very strong sales in the previous fiscal year.

Polyolefin extruder/pelletizer

Operating income declined 6.7%, to ¥11,370 million (US$94 million), due tochanges in the segment’s product breakdown.

40,000126,363

80,000118,385

135,389

120,000

130,138

80,000126,699

160,000

121,016

Millions of yen

160,000

118,858

Millions of yen

120,000

Large-size all-electric injection molding
machineSales

113,959

Orders Received

40,000

0

0

2012

2013

2014

2015

Magnesium alloy injection molding machine

2012

2013

2014

2015

09

’15
Special Feature

1

Clad Steel Pipes

Large-scale projects secured; record-high orders reported
Clad steel pipes, a mainstay product category of theremain firm over the short and medium terms. The JSWGroup, are corrosion-resistant, composite steel pipes thatGroup is an integrated manufacturer, handling everything

are used mainly in natural gas fields for natural gas

from materials to production. Drawing on our high-leveltransportation. In fiscal 2014, we reported record-highexpertise in materials and welding technologies, as wellorders, attracting around ¥35.0 billion in orders fromas our reliability—based on a 70% world market sharenatural gas development project s in Central A sia.

and abundant track record—we will strive to further

Moreover, we expect that demand for clad steel pipes will

increase orders.
Inside: Stainless steel or high-alloy steel•Structure of clad
steel pipe

•Natural gas development
projects planned worldwide

Large-scale projects
secured in fiscal 201410

Outside: Carbon steel

Special Feature

2

New Products for Energy Infrastructure

Steel pressure vessel for hydrogen storage
Incorporating high-level technologies, our low-cost,highly durable steel pressure vessels are being adopted in
the “Hydrogen Leader City Project” in the city of Fukuoka
and elsewhere.
Pile-driving hammer anvil for offshore wind power

New products for offshore wind power
generation
The offshore wind power generation industry is vibrant inEurope. Here, our large forged products are used as
ha m m e r s f o r f o u n da t i o n p il e - d r i v in g w h e n t h eembedding method is employed to install offshore wind
Steel pressure vessel for hydrogen storage

power generation equipment. Massive 600-ton steel
ingots are used to forge the largest pile-driving hammer
anvils in the world.

3

Hiroshima Plant

Expansion of assembly facility in preparation
for increased orders
At the Hiroshima Plant, the main production base for our
Indus t r ial Ma chiner y Pro duc t s B usine s s , we are
sig nif ic ant l y realig ning o ur a s s e mb l y lin e w hile
undertaking factory rebuilding and extension work. This

Rendering of completed facility

project, scheduled for completion in March 2016, will raise

30%. We are enjoying healthy demand for those products

our production capacity for plastics manufacturing andand will respond accordingly to meet the anticipatedprocessing machines by 10% and molding machinery by

growth in demand.

11

4

Injection Molding Machines

Record-high orders achieved; new products launched
In fiscal 2014, we reported record-high orders for injectionin dus t r y to feat ure a to uch pan e l, w hich allow s

molding machines, having increased orders from Japan,

smartphone-like operation and saves energy, while also

China, and North America, especially for medium-size

being easy to use and requiring lower running costs. We

and large machines for the automobile sector. In March

will work to expand sales not only to the automotive

2015, we star ted selling the J-ADS Series of newly

sector but also the fields of electric appliances, OA

developed medium-size electric servo drive injection

equipment, and luxury goods.

molding machines. The new products are the first in the
New J-ADS Series of medium-size electric servo drive
injection molding machines launched in March!

Orders by Machine Type
(%)
160

140

2013
2014

Record-highorders131

150

1 Newly developed high-pressure-resistant barrel

2 Energy-saving (consumes 10% lessthan existing JSW products)

151

4 Features new

SYSCOM5000i
controller

128

120

102

100
80

All types Small Medium-size Large Vertical

3 Optional accessories

5

standardized

Industry first! Smartphonelike touch panel

Film and Sheet Manufacturing Equipment

Product lineup upgraded to reinforce competitiveness

12

The JSW Group is one of the world’s few companies to makemethods. We now have the fullest lineup in the industry.

and sell film and sheet manufacturing equipment for

Exploiting this advantage, we will make proactive,

multiple applications, such as packaging materials andmultifaceted proposals to customers aimed at expanding

optical components. Recently, we acquired the simultaneousorders. Through mutual augmentation with existing

biaxial stretching machine business of Hitachi, Ltd., enabling

technologies, meanwhile, we will accelerate technical

us to broaden the scope of compatible manufacturing

development and explore new applications for special film.

Special Feature

6

Compounding Twin Screw Extruder

No. 2 world market share through M&As
The last few years have seen a continuous increase instep up our responses to leading-edge fields, such as

applications for plas tic s and increasing demandhigh-function compounds, with our TEX Series. In theworldwide for compounds. Recently, SM PLATEK CO., LTD.

volume zone of general-purpose compounds, we will

(SMP), South Korea’s largest maker of compounding twin

position and expand SMP’s TEK Series as the Group’s

screw extruders, became a subsidiary of JSW. Accordingly,

global-standard models, with the aim of seizing the top

the JSW Group is now the world’s second-largest maker ofworld market share.

such machines, with a market share of around 20%. We will

Other

13%

Company E

2%5%Company C 11%
Company B 15%

Company A

Worldmarket
share

36%

JSW

13%

SMP

5%

What is a compounding twin screw
extruder?
A ma c h in e t ha t k n ea d s v a r i o u s
additives into plastic materials toraise overall added value.

Company D

We will solidify the No. 2 combined world
market share (around 20%) of bothcompanies and target the No. 1 position.

TEK Series(world-standard machines made by SMP)TEX Series(high-spec machines made by JSW)

13

Research and Development

Muroran Research Laboratory

Hiroshima Research Laboratory

Research and development activities were almost entirely
funded by the Company during fiscal 2014 Combined
spending on research and development for the Steel andEnergy Products Business and the Industrial Machinery
Products Business amounted to ¥4,104 million (US$34
million).
As a materials and mechatronics company, we
strive to innovate products and production techniques
while also engaging in diverse technical alliances andjoint development to deploy new offerings as quickly as
possible.
Our Research and Development Headquar ters
collaborates with business divisions to 1) improve thecapabilities, per formance, and reliabilit y of coreproducts; and 2) develop offerings in new business fields
based on core and differentiated technologies.
The Research and Development Headquarters isbased at our head office, and the Muroran, Hiroshima,
and Yokohama research laboratories are located at the
Muroran, Hiroshima, and Yokohama plants, respectively.

14

Yokohama Research Laboratory

Basic Research and Development Policy
We develop new products and businesses by focusing on
new energ y and energ y savings, information andtelecommunications, nanotechnology and materials, andnew production technologies, which relate directly toexisting businesses. We have increased collaboration
between the Research and Development Headquarters
and business divisions, and aim to cultivate existing
business by expanding and upgrading core technologies.
We engage in basic research for future technologies
and contemporar y social needs and in researchingcomponent technologies for existing products. We willbuild on these efforts to undertake R&D projects thatcreate new produc t s and busines ses and pur sue
innovations for existing products.
In Steel Products, we emphasize advances in energy
and creating even more industry-leading offerings while
commercializing new areas. The focuses in Machinery
Pro duc t s are to e nhan ce p la s t ic s ma chin e r y, IT
equipment, and other industrial machiner y. We will
allocate significant resources to such machiner y byclarifying that our commercialization framework is open
to mergers and acquisitions and alliances.

Research and Development

Activities by Business Segment

Industrial Machinery Products Business

Steel and Energy Products BusinessIn this segment, our product development activities
encompass developing advanced processing
technologies for plastic molding machines, enhancing theperformance of plastic extruders, developing advanced
micro-nano melt transcription molding machines,
enhancing the functions and performance of film molding
machines, developing technologies to enhance theperformance and lower the costs of magnesium alloy
injection molding machines, developing dampers thatcomply with European specifications, and enhancing theefficiency and functions of compressors. Using the latest
technologies and s ys tems, we also develop laser
annealing systems for thin-film transistor liquid crystal
display (TFT LCD) production and devices for other laser
applications, as well as chemical vapor deposition (CVD)and plasma devices.
R&D spending in this segment was ¥2,760 million(US$22 million) in fiscal 2014.

Product development centers on materials, notably forclad steel pipes for natural gas transportation, large steel
castings, and forgings and high alloys for high-efficiency
thermal power generation, forged steel products foradvanced nuclear power plants, and high-performance
nonferrous alloys, as well as manufacturing process
technology development. We improve materials andcomponent technologies for existing products. In the
renewable arena, we develop material and component
technologies to create lighter and more reliable pressure
accumulators for hydrogen fueling stations. We create
analy tical technologies and enhance component
technologies to improve the reliability of wind power
plants.
Segment R&D spending totaled ¥1,343 million(US$11 million) in fiscal 2014.

15

Corporate GovernanceCorporate Governance Structure
JSW recognizes that it must earn the trust of shareholders, customers, employees, and other stakeholders to aim toenhance enterprise value and thereby contribute to the economy and society as a whole.
We therefore created a corporate governance setup that encompasses a management organization andframework to implement essential measures and pursues fair disclosure to ensure business transparency.

Overview of Corporate Governance Structure

executive officers. The Strategy Council also discusses,
reports on, and monitors overall operational matters.

We employ a statutory auditor system comprising seven

Our Management Council also convenes once

direc tor s, one of whom is independent, and fourmonthly, in principle. Members include directors,

statutory auditors (hereafter, “corporate auditors”), two

corporate auditors, divisional heads, plant generalof whom are external.

managers, headquarters managers, and others with

The term of of fice of directors is one year. We

executive responsibilities. This body’s tasks include

maintain a corporate of ficer system and separate

assessing the business environment and monitoring thedecision-making and oversight from the executive

progress of the Company’s business plan. Its goals are tofunctions of corporate officers. The goal is to accelerateshare such knowledge throughout management anddecision-making and enhance oversight and execution.

reflect it in their decisions as well as to ensure risk

In principle, the Board of Directors convenes once

management and compliance.

monthly to decide and report on important management

The Board of Corporate Auditors comprises four

issues, including basic operational policies and legally

corporate auditors, two of whom are external (one serves

stipulated matters. Senior executive officers and above

full time). These auditors attend meetings of the Board of

attend these meetings, positioning the Board as a vehicle

Directors, the Executive Board, the Management Council,

for mutual oversight of directors and corporate officers.

and other important gatherings. In principle, they visit

The Strateg y Council—consisting of t wo

the Company’s plants and offices and major subsidiaries

representative direc tors and other direc tors withonce every six months. The auditors receive divisional

executive responsibilities nominated by the president, an

repor t s as necessar y and exchange opinions withoutside director, and a corporate auditor (chosen bydirectors and key employees. Based on these efforts, therotation)—meets once a week to deliberate and decide

auditors express their views to management from an

on impor tant management matters and impor tantobjective and neutral perspective, and exercise strictbusiness execution decisions made by directors andoversight with regard to the execution of directors’
duties.

16

Corporate GovernanceInternal Control and Risk Management
Systems

Directors, the Executive Board, the Management Council,
and corporate auditors.
We created internal and external channels for

An effective internal control system is vital for business

reporting and discussing compliance violations, andperformance. We are therefore improving internal controls

guarantee anonymity and protection from reprisals.

in line with our Basic Policy on Internal Control Systems,

The Corporate Code of Conduct opposes criminal

which the Board of Directors adopted, and our Regulations

behavior. We maintain an office to share relevant

Regarding the Promotion of Internal Control Activities. We

information and manage countermeasures to help

will address social changes and streamline our setup ofeliminate cr iminal element s .

internal controls by reviewing our issues and responses.
The points below delineate management’s basic

3. Safeguarding information

stance on internal controls.
The Company appoints a director or corporate officer to

1. Implementation structure

oversee information safeguards. In keeping with document
and information management rules and regulations, theThe Internal Control Committee sets up a specialist unit,

Company stores and manages important information

which meets as necessary, to supervise internal controls

relating to the work of directors and corporate officers

with the aim of streamlining our internal control system.

as printed or digital records. This information includes
the minutes of important meetings, written requests for

2. Adhering to laws and regulations

management approvals, and other important information.

and the Articles of Incorporation

Further, directors and corporate auditors may view or copy
this information as needed.

At JSW, compliance extends beyond preventing fraud
and adhering to laws and regulations and in-house rules

The Company properly discloses financial andimportant management information.

to encompass diverse rules for fulfilling broad social
responsibilities. Our efforts center on directors and4. Risk management

corporate officers taking the lead in practicing integrity
and in raising employee awareness of compliance issues

Directors, corporate officers, and employees concurrently

through education and training.

serving as general managers identify and evaluate risks

We established the Internal Audit Division to ensurearising in the course of business. They address these risks

that operations observe all laws and regulations andin keeping with regulations and the management approvalin-house rules. The division conducts scheduled and spot

system. The Board of Directors and the Executive Board

audits. It submits reports on the results to the president

deliberate on key risks.

and relevant parties. They may include the Board of

We m a i n t a i n r i s k m a n a g e m e n t r u l e s a n d a17Company wide risk management system. Divisions
overseeing risks in such areas as safety and hygiene,

6. Ensuring appropriate conduct
at Group companies

environmental management, information securit y,and export controls set up committees and create andG ro up sub sidiar ie s wo r k to e s t ab lis h an d b uildadminister rules for containing such risks throughout

Companywide internal control systems according to

the Company. A risk management director or corporate

JSW’s Vision, Corporate Philosophy, and Corporate Codeofficer monitors progress in collaboration with the Internalof Conduct. Group companies also strive for efficient

Audit Division and reports to the Board of Directors or thebusiness execution and autonomous management by

Executive Board.

ensuring proper division of duties and clarification of

Risk managers at all divisional headquarters, businessdecision-making authority based on their own in-houseunit s, and plant s evaluate measures and identif yregulations. The Company supports these efforts of Groupdaily risks. A crisis management headquarters tackles

companies.

emergency situations.

We drafted operational and management rules for
subsidiaries and defined the related management

5. Ensuring efficiency

responsibilities and leadership structures. We maintain asystem for reporting, notifying, and gathering data about

We ensure rapid decision-making and flexible andsubsidiary decisions on important matters. At the same

efficient management by having the president act astime, we ensure that listed subsidiaries retain a degree ofchief executive officer, with directors overseeing key

management autonomy.

headquarters divisions and business units. The Board

We dispatch officers and employees as directors andof Directors appoints and supervises corporate officers.

corporate auditors of Group subsidiaries. We ensure that

Directors and corporate officers discuss, decide, andsubsidiaries comply with all laws and regulations andreport on important matters in meetings of the Board of

in-house rules by mandating scheduled and spot internal

Directors and the Executive Board.

audits through relevant departments or the Internal Audit

The Board of Directors formulates the medium-term
management plan and annual busine s s plans as

subsidiaries on internal control improvements.

Companywide objectives for directors, corporate officers,

The Company supp or t s t he effor t s of Groupand employees. Directors and corporate officers produce

companies to establish systems to identify and evaluate

and implement specific policies for reaching goals,

r isk s according to division of dutie s deter mine dsegregating tasks in line with in-house regulations. They

independently based on rules concerning risk

also review progress and submit periodic and spot reports

management.

to the Board of Directors, the Executive Board, and theManagement Council.

18

Division. We also audit operations directly and instructCorporate Governance

7. Appointing corporate auditor assistants

9. Ensuring corporate auditor effectivenessand ensuring their independence
We encourage directors, corporate officers, and employees
On request from corporate auditors, we offer employees as

to value corporate auditors and to accord them their fullest

assistants. We seek the opinions and consent of thesecooperation. These auditors can seek assistance from theauditors for appointments, dismissals, evaluations, andInternal Audit Division, other headquarters divisions, andother personnel treatment regarding these assistants toall other divisions for auditing tasks.

secure their independence from directors and corporate
officers.
The Company ensures that employees assigned as
assistants can perform their duties according to the

We enable corporate auditors to collaborate closelywith the accounting auditor and the Internal Audit Division.
Corporate auditors have the discretion to employ theservices of legal advisors and other outside experts.

directions and instructions of corporate auditors.

10. Ensuring reliable financial reporting
8. System for directors and employees tosubmit reports to corporate auditors

We evaluate the effectiveness of internal controls forfinancial reports in keeping with basic policies. The Board

As is their right, corporate auditors attend meetings of theof Directors and the Executive Board discuss the findings.

Board of Directors, the Executive Board, the Management
Council, and other managerial meetings that discuss,
determine, and report on important matters.

Policy Regarding Large-Scale Purchaseof Company Shares

Based on its management approval system, theCompany presents approval records to corporate auditors.

On May 7, 2014, the Board of Directors resolved to amend

Corporate auditors can at any time request reports from

Measures against Large-Scale Share Acquisitions (takeover

direc tor s and employees of the Company and it s

defense measures), a set of rules and procedures for

subsidiaries. Also, persons who have received reports fromparties seeking to purchase our shares (namely, holders of

direc tor s and employees of the Company and it sCompany-issued shares seeking to increase their stakes tosubsidiaries can convey such reports to corporate auditors.

more than 20% through purchases, or those making a

The Company guarantees that persons making

tender offer to boost their combined shareholding ratio

repor t s to cor por ate auditor s are not subje c t towith the inclusion of the holdings of special parties to more

unfavorable treatment based on the content of suchthan 20% through a tender offer). The amendment wasreports.

approved at the 88th Regular General Meeting of
Shareholders on June 25, 2014.

19

The Environment

Environmental Management
As a responsible member of society, JSW regards operating in harmony with the environment as an important corporate
responsibility. In our pursuit of production activities and environmental technologies that respect environmental integrity,
we engage in business activities that contribute to the ecologically sustainable development of society.

Action Plan

Environmental Management Structure

1. We aim to carr y out environmental tasks in an
organized way, and to implement environmental
preservation activities continuously.

The Environmental Management Committee, headed by
the director in charge of environmental management,
determines matters such as annual environmental
management policies and programs of environmental
activities for the whole company. Each plant has its own
Environmental Supervisory Committee, which promotes
environmental management activities and works hand inhand with other Group companies including affiliates toreduce the environmental impact of the Company’s
activities.

2. We will set appropriate objectives and targets for
reducing the burden our activities impose on theenvironment with conserving biodiversity.
3. We aim to provide society with products and services
that contribute to the preservation of the environment.
(1) We endeavor to increase the social value of our
products in terms of environmental protection, safety
and hygiene.
(2) We will provide products and services that reduce
environmental loads by obtaining a clear grasp ofenvironmental needs and developing technologies.

Common Policy for Business Facilities
Taking into consideration respective business activities,
local communities and the surrounding environments,
each plant operates by setting out its own environmental
policy, objectives and targets, drawing on methods
compliant with international standards. Toward such ends,
JSW plants continually strive:
1. To respect laws and regulations and agreements wehave concluded with external parties
2. To prevent pollution and reduce and appropriately
treat waste, and to conserve the ecosystem

President

Chief Environmental Management Supervisor/
Environmental Management Committee Chairman(Director in charge of Environmental Management)
Environmental
Management
Committee
JSW Groupcompanies
Environmental
Management
Supervisors(Company presidents)
Environmental
Supervisory
Committees

3 . To i m p ro v e “ re s o u rce p ro d u c t i v i t y ” t h ro u g himplementation of energy efficiency, resource
efficiency, and recycling
4. To inform employees and other companies residing
within our facilities of our policies and require theircooperation
20

Affiliatedcompanies

JSW plants
Environmental
Management
Plant Supervisors(Plant generalmanagers)
Environmental
Supervisory
Committees

JSW Groupcompanies
Environmental
Management
Supervisors

JSW plants
Environmental
Management
Supervisors

Departments

Departments

Affiliatedcompanies

The Environment

ISO 14001 Certification Progress
The Muroran, Hiroshima, and Yokohama plant s andG r o up co mpanie s M e ik i C o., Lt d . an d F in e Cr y s t al
Precision (S.Z.) Co., Ltd. have obtained cer tificationu n d e r I S O 14 0 01 , a n i n t e r n a t i o n a l s t a n d a r d f o renvironmental management systems.
We leverage third-par ty cer tification bodies andinternal inspections to conduct checks at least once
annually to ensure that ISO 14001-cer tified businesssites are endeavoring to maintain and improve theirenvironmental management systems.
The Company and Group companies haveadhere d s tr ic tly to laws and ordinances , and there
were again no violations in fiscal 2014.

ISO 14001 Certifications of Business Sites
Business Site

Certification Date

Current Certification Body

December 18, 1998

Lloyd’s Register Quality Assurance

Hiroshima Plant

December 18, 1998

Japan Quality Assurance Organization

Yokohama Plant

September 4, 2006

Lloyd’s Register Quality Assurance

Meiki Co., Ltd.

March 4, 2005

ASR International Corporation

Fine Crystal Precision(S.Z.) Co., Ltd.

March 7, 2007

Intertek

Muroran Plant

Social Initiatives
Activities as a corporate citizen
Seeking harmonious coexistence with local communities,
each of our manufacturing plants gives notifications about
specific equipment related to pollution while measuring andanalyzing waste on a regular basis. With respect toenvironmental standards determined by the Basic
Environment Act, we notify government agencies of ourmeasurement findings and conduct on-the-spot andvoluntary inspections to confirm that the appropriate
standards are in place.
Neighborhood cleanup activities
Since 2003, the Hiroshima Plant has conducted cleanup
operations of local surroundings twice a year, in spring andautumn. We have now completed 22 such operations overthe past 12 years. In 2015, the 13th year of the cleanup
campaign, we are targeting environmental protection
activities as a member of the local community.
Meanwhile, the Yokohama Plant, under its social
contribution efforts, includes beautification of local streets aspart of its education program for new employees. Twice ayear, all Yokohama Plant employees also engage inbeautification activities
inside and outside thefacility. In addition tocollecting waste
outside the premises,
we combat weeds andotherwise emphasize
proper greenery maintenance within the plant grounds.
Collected waste is separated and appropriately discarded.
We will continue these activities in the future.

Yokohama Plant’s Environmental
Activities Introduced in Report

Topics

The environmental activities of the JSW Group’s
Yokohama Plant are introduced in the “Member Company
Environmental Protection
Activities” section of the fiscal
2014 edition of “Environmental
Activity Report,” published by theEnvironmental Committee of theJapan Society of Industrial
Machinery Manufacturers (JSIM).

21

Board of Directors,
Corporate Auditors and Executive Oﬃcers

Board of Directors and Corporate Auditors

Executive Officers

As of September 30, 2015

As of September 30, 2015

Representative Director &President

Ikuo Sato

Senior Managing
Executive Officer

Kazuo Kitamura

Representative Director &Executive Vice President

Yoshitomo Tanaka

Managing Executive
Officers

Hiroshi Hamao
Yoshinao Ishibashi
Hiroshi Fujimura
Shin-ichi Ono
Naotaka Miyauchi
Takashi Shibata

Senior Executive Officers

Makoto Shimizu
Katsutoshi Orita

Executive Officers

Masao Ooshita
Hiroshi Murakami
Toyohiko Kagawa
Junichiro Deguchi

Directors and Senior
Akira Kadota
Managing Executive Officers Nobuaki Shimizu
Directors and managing
Executive Officers

Kenji Watanabe
Yutaka Higashiizumi

Director

Motonobu Sato (Outside)

Corporate Auditors

Hisao Iwashita
Yutaka Mizutani
Mamoru Kawakami (Outside)
Kazuya Jono (Outside)

Organization

Domestic Office
Corporate Planning Office

General Meeting of Shareholders

Overseas Office
Personnel Dept.
Secretary Office
General Affairs Dept.
Finance & Accounting Dept.

Board of Directors
Research & Development Headquarters
Executive Board

Muroran Research Laboratory
Hiroshima Research Laboratory

PresidentInternal Auditors Office

Yokohama Research Laboratory
Laser & Plasma System OfficeWind Power Business Office

Board of Corporate Auditors

22

Steel Business Division

Muroran Plant

Machinery Business Division

Hiroshima Plant

Ordnance Business Headquarters

Yokohama Plant

Six-Year Summary
Financial Performance (Consolidated)
Consolidated Balance Sheet
Consolidated Statement of Income
Consolidated Statement of Comprehensive Income
Consolidated Statement of Changes in Net Assets
Consolidated Statement of Cash Flows
Notes to Consolidated Financial Statements
Independent Auditor’s Report

Financial Section

The Japan Steel Works, Ltd.

Six-Year SummaryYears ended March 31

Millions of yen

2010

2011

2012

2013

2014

2015

¥201,680¥212,929¥221,368¥220,653¥188,719¥194,674

Net income (loss)

17,528

16,532

12,591

8,281

5,527

(3,740)Total assets

322,986

339,263

325,653

303,970

293,139

321,083

Total net assets

111,149

120,820

128,613

134,368

139,268

139,821

14.92¥ (10.10)

Consolidated
Net sales

Amounts per share (yen):
Net income (loss)

¥

47.22

¥

44.54

¥

33.93

¥

22.33

¥

Non-Consolidated¥175,333¥179,325¥189,329¥184,312¥155,211¥153,455

Net income (loss)

16,665

14,527

11,257

7,519

6,645

(4,778)

Total assets

298,783

316,176

302,550

277,086

267,241

292,673

Total net assets

101,615

109,734

116,255

120,866

127,416

125,261

17.93
5.00

¥ (12.91)¥
4.00

Net sales

Amounts per share (yen):¥
Net income (loss)
Cash dividends applicable to the year ¥

44.90
12.00

¥
¥

39.14
12.00

¥
¥

30.33
10.00

¥
¥

20.28
10.00

¥
¥

Contents
23

Six-Year Summary

24

Financial Performance (Consolidated)

26

Consolidated Balance Sheet

28

Consolidated Statement of Income

29

Consolidated Statement of Comprehensive Income

30

Consolidated Statement of Changes in Net Assets

31

Consolidated Statement of Cash Flows

32

Notes to Consolidated Financial Statements

49

Independent Auditor’s Report23Financial Performance (Consolidated)

Operating Results

Cash FlowsNet Sales

At year-end, cash and cash equivalents stood at ¥49,152
million (US$409 million), increase ¥6,854 million from a year
earlier.

Net sales increased ¥5,955 million, or 3.2% year on year, to¥194,674 million (US$1.619 million), owing to increase in the
Industrial Machinery Products Business.

Cash Flow from Operating Activities

Operating Income

Net cash provided by operating activities was ¥11,580
million (US$96 million), compared with ¥11,549 million in theprevious year. Primar y factors included a year-on-year
decrease in income before income taxes. This contrasted
with provision for loss on wind power business, which did
not involve cash outflows.

Operating income declined ¥647 million, or 7.3%, to ¥8,217
million (US$68 million). The operating income margin stoodat 4.2%, a 0.5 percentage-point decline compared with theprevious year.
Net Income

Cash Flow from Investing Activities

As a result, the Group posted a net loss of ¥3,740 million(US$31 million), compared with net income of ¥5,527 million(US$45 million) in the previous fiscal year. This equates to
net loss of ¥10.10 for the period on a per-share basis.

Net cash used in investing activities was ¥2,675 million(US$22 million), compared with ¥5,719 million a year earlier.
The main factor was proceeds from sale of investment
securities.

Sales by Region
The Japanese market accounted for sales of ¥100,417 million(US$835 million), the Chinese market for ¥29,131 million(US$242 million), with all other markets accounting for¥65,125 million (US$541 million).

2013

2011

2012

2013

2014

2015

Millions of yen
40,00045

30,00030

20,00015

10,000

0

0

2011

2012

2013

11,5802012%
60

11,5492011

Net Cash Provided byOperating Activities

23,735

48.4

49.1

52.3

40,0000024

94,256

2015

92,752

8,217

2014

115,472

8,864

10,00080,00016,68020,00049.8

120,000

110,21130,000113,858

160,000

23,911Millions of yen

40,00028,495

Millions of yen

53.5% of total sales

32,507

Overseas Sales

21,774

Operating Income

2014

2015

Six-Year Summary
Financial Performance (Consolidated)
Consolidated Balance Sheet
Consolidated Statement of Income
Consolidated Statement of Comprehensive Income
Consolidated Statement of Changes in Net Assets
Consolidated Statement of Cash Flows
Notes to Consolidated Financial Statements
Independent Auditor’s Report

Financial Position
Cash Flow from Financing Activities

Total assets at March 31, 2015, stood at ¥321,083 million(US$2,671 million), increase ¥27,944 million, or 9.5%, fromthe close of the previous year. This was due to an increase incurrent assets stemming mainly from rises in cash and cash
equivalents, notes and accounts receivable, and deferred
tax assets.
Total liabilities were ¥181,261 million (US$1,508 million)
at year-end, increase ¥27,391 million, or 17.8%, from theclose of the previous year. This was due to an increase incurrent liabilities caused mainly by a rise in prepaid
expenses and provision for loss on wind power business.
Interest-bearing debt was ¥41,346 million (US$344 million),increase ¥745 million.
Net assets stood at ¥139,821 million (US$1,163 million),up ¥552 million, or 0.4%, from the previous year. This wasdue mainly to an increase in unrealized holding gain on
securities, which contrasted with a decrease in retained
earnings stemming from the net loss.

Net cash used in financing activities was ¥2,964 million(US$24 million), compared with ¥15,007 million a year earlier.
The main factor was syndicated loan repayments made in
the previous fiscal year.

Interest-Bearing Debt
Millions of yen

41,346

2012

20,00042,092

2011

40,00053,24263,60760,00065,68580,000

2014

2015

0

Equity Ratio
%

10

15

0

2011

2012

2013

2014

2015

4.1

30

0

0

20

6.3

43.0

43.8

39.2

30

(2.7)

40,00045

35.3

139,821

139,268

134,368

128,613120,82080,000%60

160,000

47.1

Millions of yen

120,000

ROE

10.2

Net Assets

14.4

2013

-10

2011

2012

2013

2014

2015

2011

2012

2013

2014

2015

25

The Japan Steel Works, Ltd. and Consolidated Subsidiaries

Consolidated Balance Sheet
March 31, 2015 and 2014

Assets

2014

Millions of yen

Thousands of
U.S. dollars(Note 4)

2015

2015

Current assets:
Cash on hand and in banks (Notes 14 and 16)
Notes and accounts receivable:
Unconsolidated subsidiaries and affiliates
Trade (Note 16)
OtherLess allowance for doubtful accounts
Inventories (Note 5)
Deferred tax assets (Note 20)
Other current assets¥ 42,329¥ 49,176 $ 409,220

376
48,520540(310)
65,488
5,374
5,155

204
56,482
179(157)
68,856
9,252
7,529

1,698
470,017
1,490(1,306)572,988
76,99162,653

167,476

191,523

1,593,767

Land
Buildings and structures
Machinery and equipment
Leased assets
Construction in progress

10,50996,456
141,603
3,799
559

10,897
98,195
142,705
3,843
1,404

90,680817,134
1,187,526
31,98011,683

Less accumulated depreciation

252,928(167,255)

257,046 2,139,020(174,270) (1,450,196)

Total current assets

Property, plant and equipment, at cost (Notes 6 and 7):

Property, plant and equipment, net

Intangible assets

85,67282,775

688,816

855

718

5,975

1,009
32,444
88
2,427
1,249
2,487
(572)

1,003
38,731
74
3,063
1,065
2,714
(588)

8,347
322,302616
25,4898,862
22,585(4,893)39,13446,065383,332

Investments and other assets:
Investments in unconsolidated subsidiaries and affiliates
Investment securities (Notes 16 and 17)
Long-term loans receivable
Retirement benefit asset (Note 19)
Deferred tax assets (Note 20)
Other assets
Less allowance for doubtful accounts
Total investments and other assets
Total assets

26¥293,139¥321,083 $2,671,906

Six-Year Summary
Financial Performance (Consolidated)
Consolidated Balance Sheet
Consolidated Statement of Income
Consolidated Statement of Comprehensive Income
Consolidated Statement of Changes in Net Assets
Consolidated Statement of Cash Flows
Notes to Consolidated Financial Statements
Independent Auditor’s Report

Liabilities and Net Assets

2014

Millions of yen

Thousands of
U.S. dollars(Note 4)

2015

2015

Current liabilities:
Short-term borrowings (Notes 9 and 16)
Current portion of long-term debt (Notes 9 and 16)
Notes and accounts payable:
Unconsolidated subsidiaries and affiliates
Trade (Note 16)
Other
Advances received for products
Accrued income taxes (Note 20)
Provision for loss on wind power generator business (Note 3)
Other current liabilities¥ 12,292
3,454¥ 12,255 $ 101,981
21,768181,14370
42,2681,059
22,0481,802—
15,85280
42,167
2,563
34,697
1,171
13,203
17,439666
350,895
21,328288,733
9,745
109,869
145,119

98,848145,349

1,209,528

Long-term debt (Notes 9 and 16)
Accrued retirement benefits (Note 19)
For directors and corporate auditors
Retirement benefit liability (Note 19)
Deferred tax liabilities (Note 20)
Other long-term liabilities

26,345

7,322

60,930115
10,405
1,391
16,761

109
10,8573,064
14,559907
90,34725,497
121,153

Total long-term liabilities

55,02135,912

298,843

19,694
5,425
110,635(730)

19,694
5,425
104,916(731)

163,884
45,144873,063(6,083)135,026

129,305

1,076,017

4,293
(130)
(96)
(1,042)

9,195
(194)
239
(399)

76,517(1,614)
1,989(3,320)

3,024

8,839

73,554

1,218

1,676

13,947

Total net assets

139,268

139,821

1,163,527

Total liabilities and net assets¥293,139¥321,083 $2,671,906

Total current liabilities
Long-term liabilities:

Net assets:
Shareholders’ equity (Note 13)
Common stock:
Authorized—1,000,000,000 shares
Issued—371,463,036 shares
Capital surplus
Retained earnings
Treasury stock, at cost (1,192,297 shares in 2015 and 1,189,350 shares in 2014)
Total shareholders’ equity
Accumulated other comprehensive income:Unrealized holding gain (loss) on securities
Unrealized gain (loss) from hedging instruments
Translation adjustments
Remeasurement of retirement benefit plans
Total accumulated other comprehensive income
Minority interests

The accompanying notes are an integral part of these statements.

27

Six-Year Summary
Financial Performance (Consolidated)
Consolidated Balance Sheet
Consolidated Statement of Income
Consolidated Statement of Comprehensive Income
Consolidated Statement of Changes in Net Assets
Consolidated Statement of Cash Flows
Notes to Consolidated Financial Statements
Independent Auditor’s Report

The Japan Steel Works, Ltd. and Consolidated Subsidiaries

Consolidated Statement of Income
For the years ended March 31, 2015 and 2014

2014

Thousands of
U.S. dollars(Note 4)

2015

2015

Net sales¥188,719¥194,674 $1,619,988

Cost of sales (Note 10)

153,137

158,488

1,318,865

35,581

36,186

301,123

26,717

27,969232,745

8,864

8,217

68,378

756
(424)
—
308

718
(264)
(15,967)
3,277

5,975
(2,197)(132,870)
27,270639(12,235)(101,814)

Income before income taxes and minority interests

9,504(4,017)(33,428)

Income taxes (Note 20):
Current
Deferred

3,530
344

3,534
(4,026)

29,408(33,503)

Income before minority interests
Minority interests in net income of consolidated subsidiaries

5,629
102

(3,525)
215(29,333)
1,789

Gross profit
Selling, general and administrative expenses (Note 10)
Operating income
Other income (expenses):
Interest and dividend income
Interest expense
Provision for loss on wind power generator business
Other, net (Note 11)

Net income (Note 26)
The accompanying notes are an integral part of these statements.

28

Millions of yen¥ 5,527¥ (3,740) $ (31,123)

Six-Year Summary
Financial Performance (Consolidated)
Consolidated Balance Sheet
Consolidated Statement of Income
Consolidated Statement of Comprehensive Income
Consolidated Statement of Changes in Net Assets
Consolidated Statement of Cash Flows
Notes to Consolidated Financial Statements
Independent Auditor’s Report

The Japan Steel Works, Ltd. and Consolidated Subsidiaries

Consolidated Statement of Comprehensive Income
For the years ended March 31, 2015 and 2014

Millions of yen

Thousands of
U.S. dollars(Note 4)

2014

2015

2015

Income before minority interests
Other comprehensive income:Unrealized holding gain (loss) on securities
Unrealized gain (loss) from hedging instruments
Translation adjustments
Retirement benefits plans adjustments¥5,629¥(3,525)$(29,333)

2,817
202
390
—

4,902
(64)
358
617

40,792
(533)
2,979
5,134

Total other comprehensive income (Note 11)

3,410

5,814

48,381

Comprehensive income¥9,039¥2,288$ 19,040

Total comprehensive income attributable to:Shareholders of The Japan Steel Works, Ltd.
Minority interests¥8,924¥ 114¥2,074¥ 213$ 17,259$ 1,772

The accompanying notes are an integral part of these statements.

29Six-Year Summary
Financial Performance (Consolidated)
Consolidated Balance Sheet
Consolidated Statement of Income
Consolidated Statement of Comprehensive Income
Consolidated Statement of Changes in Net Assets
Consolidated Statement of Cash Flows
Notes to Consolidated Financial Statements
Independent Auditor’s Report

The Japan Steel Works, Ltd. and Consolidated Subsidiaries

Consolidated Statement of Changes in Net Assets
For the years ended March 31, 2015 and 2014
Millions of yen

Shareholders’ equity

Commonstock

CapitalsurplusRetainedearnings

Accumulated other comprehensive income

Treasurystock(Note 13)

Total
Retirement
accumulated
benefitUnrealized Unrealizedotherliability
holding gain gain (loss)
Total
shareholders’ (loss) on from hedging Translation adjustments comprehensive
securities instruments adjustments (Note 19)
equityincomeTotal net
assets—¥ 668¥1,131 ¥134,368—

668

1,131 134,368¥19,694
Balance at April 1, 2013
Cumulative effect of change inaccounting principle (Note 2)
19,694
Restated balance at April 1 ,2013
Changes during the year
Cash dividends paid
Net income
Purchases of treasury stock
Changes in the scope of consolidation
Net changes in items other thanthose in shareholders’ equity—
Total changes during the year
Balance at March 31, 2014 ¥19,694¥5,425 ¥107,861¥(413) ¥132,568¥1,475¥(332)¥(474)

5,425

107,861(413) 132,568

1,475

(332)

(474)

(2,781)
5,527(2,781)
5,527
(316)
28

—
2,774
¥5,425 ¥110,635

(316)
2,457
¥(730) ¥135,026

2,817
2,817
¥4,293202
202¥(130)

377(1,042)(1,042)377¥ (96) ¥(1,042)

2,355
2,355
¥3,024

86
2,422
86
4,900
¥1,218 ¥139,268¥19,694
Balance at April 1, 2014
Cumulative effect of change inaccounting principle (Note 2)
19,694
Restated balance at April 1 ,2014
Changes during the year
Cash dividends paid
Net loss
Purchases of treasury stock
Disposal of treasury stock
Changes in the scope of consolidation
Net changes in items other thanthose in shareholders’ equity—
Total changes during the year
Balance at March 31, 2015 ¥19,694¥5,425 ¥110,635¥(730) ¥135,026¥4,293¥(130)¥ (96) ¥(1,042)¥3,024¥1,218 ¥139,268(555)
110,080(555)(730) 134,471

4,293

(130)

3,024

(555)
1,218 138,713(1,666)(3,740)(1,666)(3,740)
(1)
0
242

(316)

28

5,425

(0)

(1)
0

242

(1) (5,165)¥(731) ¥129,305(0) (5,164)¥5,425 ¥104,916¥

Minority
interests(2,781)
5,527
(316)
28

(96)

(1,042)(1,666)(3,740)
(1)
0
242
4,902
4,902
¥9,195(64)(64)¥(194)

335
335
¥ 239

642
642
¥ (399)

5,815
5,815
¥8,839

457
6,273
457
1,107
¥1,676 ¥139,821

Thousands of U.S. dollars (Note 4)

Shareholders’ equity

Total
Retirement
accumulated
benefitUnrealized Unrealizedotherliability
holding gain gain (loss)
Total
shareholders’ (loss) on from hedging Translation adjustments comprehensive
securities instruments adjustments (Note 19)
equityincomeCommonstock

CapitalsurplusRetainedearnings

Treasurystock(Note 13)$163,884
Balance at April 1, 2014
Cumulative effect of change inaccounting principle (Note 2)
Restated balance at April 1 ,2014 163,884
Changes during the year
Cash dividends paid
Net loss
Purchases of treasury stock
Disposal of treasury stock
Changes in the scope of consolidation
Net changes in items other thanthose in shareholders’ equity—
Total changes during the year
Balance at March 31, 2015 $163,884$45,144$920,654$(6,075) $1,123,625$35,724$(1,082)$ (799)$(8,671)$25,164$10,136 $1,158,925

45,144(4,618)916,036(4,618)(6,075) 1,119,006

35,724(1,082)(799)(8,671)

25,164(4,618)
10,136 1,154,306(13,864)(31,123)(13,864)(31,123)
(8)
0
2,014

(0)

2,014

(0)
(42,972)$45,144 $873,063

The accompanying notes are an integral part of these statements.

30

Accumulated other comprehensive income(8)0(8) (42,981)$(6,083) $1,076,017

Minority
interests

Total net
assets(13,864)(31,123)
(8)
0
2,014
40,79240,792$76,517

(533)
(533)
$(1,614)

2,788
2,788
$1,9895,342
5,342$(3,320)

48,39048,390$73,554

3,803
52,201
3,803
9,212$13,947 $1,163,527

Six-Year Summary
Financial Performance (Consolidated)
Consolidated Balance Sheet
Consolidated Statement of Income
Consolidated Statement of Comprehensive Income
Consolidated Statement of Changes in Net Assets
Consolidated Statement of Cash Flows
Notes to Consolidated Financial Statements
Independent Auditor’s Report

The Japan Steel Works, Ltd. and Consolidated Subsidiaries

Consolidated Statement of Cash Flows
For the years ended March 31, 2015 and 2014

Millions of yen

Thousands of
U.S. dollars(Note 4)

2014

2015

2015

¥ 9,504
12,878
(756)
424
0
(65)
147
(46)
—
—
—
44

¥ (4,017)
10,936
(718)
264
0
(6)
343
(2,214)(218)(709)
13,20355$ (33,428)
91,004(5,975)
2,197
0
(50)
2,854
(18,424)(1,814)(5,900)109,869458

2,827(2,219)(5,772)(1,643)

3,834
(322)
(3,243)(1,860)31,905(2,680)(26,987)(15,478)

15,323

15,325

127,528754(435)(4,093)712(255)(4,201)

5,925(2,122)(34,959)

11,54911,58096,363(4,610)
138
86
(821)
(223)
(17)
14
—
(79)
—
(206)

(5,392)
260
2,835
(11)
(192)
215
13
(200)
(56)
3
(151)

(44,870)
2,164
23,592(92)(1,598)1,789
108(1,664)(466)
25(1,257)

Net cash used in investing activities(5,719)(2,675)(22,260)

Financing activities (Notes 9 and 16)
Net decrease in short-term borrowings
Increase in long-term debt
Decrease in long-term debt
Cash dividends paid
Acquisition of treasury stock
Repayments of finance lease obligations
Other

(411)
200
(10,740)(2,781)
(316)
(955)
(2)

(37)
2,250
(2,712)(1,668)
(1)
(803)
8

(308)
18,723(22,568)(13,880)(8)(6,682)67

Net cash provided by (used in) financing activities(15,007)(2,964)(24,665)

Effect of exchange rate changes on cash and cash equivalents

432

415

3,453

(8,744)50,972

6,356
42,29752,892351,976

Operating activities

Income before income taxes and minority interests
Depreciation and amortization
Interest and dividend income
Interest expense
Equity in (earnings) losses of affiliates(Gain) loss on sales of investment equipment
Loss on disposal of tangible and intangible assets(Gain) loss on sales of property, plant and securities
Gain on bargain purchase
Gain on settlement of long-term guarantee deposited
Increase (decrease) in provision for loss on wind power generator business
Loss on valuation of shares of subsidiaries and associates
Changes in operating assets and liabilities:
Trade assets (Note 16)
Trade liabilities
Inventories (Note 5)
Other
SubtotalInterest and dividends received
Interest paid
Income taxes paid
Net cash provided by operating activities

Investing activities
Increase in tangible and intangible assets
Decrease in tangible and intangible assets
Proceeds from sale of investment securities
Purchases of investment securities
Reimbursement of long-term deposits on contracts(Increase) decrease in short-term loans receivableCollection of long-term loans receivable
Payments for transfer of business
Purchase of investments in subsidiaries
Proceeds of investments in subsidiaries
Other(Decrease) increase in cash and cash equivalents
Cash and cash equivalents at beginning of the year
Increase in cash and cash equivalents resulting from merger
Cash and cash equivalents at end of the year (Notes 14 and 16)

69

498

4,144

¥42,297¥ 49,152$ 409,021

The accompanying notes are an integral part of these statements.

31

The Japan Steel Works, Ltd. and Consolidated Subsidiaries

Notes to Consolidated Financial Statements

32

1. Basis of Presentation
The Japan Steel Works, Ltd. (the “Company”) and its domestic
subsidiaries maintain their books of account in conformity with thefinancial accounting standards of Japan, and its foreign subsidiaries
maintain their books of account in conformity with those of theirrespective countries of domicile.
The accompanying consolidated financial statements have been
prepared in accordance with accounting principles generally acceptedin Japan, which are different in certain respects as to the applicationand disclosure requirements of IFRS, and have been compiled from theconsolidated financial statements prepared by the Company as
required by the Financial Instruments and Exchange Law of Japan.
As permitted by the Financial Instruments and Exchange Law ofJapan, amounts of less than one million yen have been omitted. As aresult, the totals shown in the accompanying consolidated financial
statements (both in yen and in U.S. dollars) do not necessarily agreewith the sums of the individual amounts.
Certain amounts in the prior year’s consolidated financial
statements have been reclassified to conform to the current year’s
presentation.

(b) Foreign currency translation
The balance sheet accounts of the foreign consolidated subsidiaries aretranslated into yen at the rates of exchange in effect at the balance sheet
date, except for the components of net assets excluding minority
interests which are translated at their historical exchange rates. Revenue
and expense accounts are translated at the average rates of exchange in
effect during the year. Differences arising from the translation arepresented as translation adjustments and minority interests in the
consolidated financial statements.
Revenue and expense items arising from transactions denominatedin foreign currencies are generally translated into yen at the rates of
exchange in effect at the respective transaction dates.
All monetary assets and liabilities denominated in foreign
currencies are translated into yen at the rates of exchange in effect at thebalance sheet date and differences arising from the translation are
included in the consolidated statements of income.

2. Summary of Significant Accounting Policies(a) Principles of consolidation and accounting for investments inunconsolidated subsidiaries and affiliates
The accompanying consolidated financial statements include theaccounts of the Company and any significant companies controlled
directly or indirectly by the Company.
Companies over which the Company exercises significant influencein terms of their operating and financial policies have been accounted
for by the equity method. All significant intercompany balances andtransactions have been eliminated in consolidation.
As of March 31, 2015, the numbers of consolidated subsidiaries, andsubsidiaries and affiliates accounted for by the equity method were 31
and 1 (34 and 1 in 2014), respectively. MURORAN ENVIRONMENT PLANTSERVICE, CO., LTD. was included in the scope of consolidation due to its
increased significance. JSW Plastics Machinery Service CO., LTD. wasabsorbed by the Company. Nikko Design Co., Ltd. , Nikko Casting Co.,
Ltd. and JSW Clad Steel Company Co., Ltd. which was consolidated
subsidiary in the previous fiscal year was absorbed by Nikko Kouei Co.,
Ltd. in accordance with the merger. Nikko Kouei Co., Ltd. has changed
corporate name to Nikko MEC Co., Ltd.
Certain foreign subsidiaries are consolidated on the basis of fiscal
periods ended December 31, which differ from that of the Company.
However, the necessary adjustments have been made if the effect of thedifference is material.
Investments in subsidiaries and affiliates which are neither
consolidated nor accounted for by the equity method are carried at costor less. Where there has been a permanent decline in the value of suchinvestments, the Company has written them down.
Differences between the cost and the underlying net equity at fairvalue of investments in consolidated subsidiaries and in companies
accounted for by the equity method have been amortized by thestraight-line method over five years after acquisition and are included inselling, general and administrative expenses.

(d) Inventories
Real estate held for sale, finished products and work in process arestated at the lower of cost or net realizable value determined principallyby the specific identification method. Raw materials are stated at thelower of cost or replacement cost determined principally by the moving
average method.

(c) Cash equivalents
Short-term investments with a maturity of three months or less whenpurchased which can easily be converted to cash and are subject tolittle risk of change in value are considered to be cash equivalents.

(e) Investment securities
Marketable securities classified as other securities are carried at fair value
with changes in unrealized holding gain or loss, net of the applicable
income taxes, included directly in net assets. Non-marketable securities
classified as other securities are carried at cost. Cost of securities sold isdetermined by the moving average method.
(f) Allowance for doubtful accounts
The allowance for doubtful accounts is provided for possible bad debts
at an amount estimated based on the historical experience with bad
debts on normal receivables plus an additional allowance for specificuncollectible amounts determined by reference to the collectability of
individual doubtful accounts.
(g) Provision for warranties for completed construction
The Company provides a provision for warranties for completed
construction by estimating losses on possible future claims.
(h) Provision for loss on construction contracts
The Company provides a provision for loss on construction contracts,
which has not been delivered by the fiscal year end, by estimating theamount of total losses anticipated in the following fiscal year andthereafter to be incurred, when the amounts can be reasonably
estimated.

Six-Year Summary
Financial Performance (Consolidated)
Consolidated Balance Sheet
Consolidated Statement of Income
Consolidated Statement of Comprehensive Income
Consolidated Statement of Changes in Net Assets
Consolidated Statement of Cash Flows
Notes to Consolidated Financial Statements
Independent Auditor’s Report(i) Provision for loss on wind power generator business
The Company provides a provision for loss on wind power generator
business by estimating the amount of total losses caused by the defectsof certain parts used in wind power generators.
(j) Property, plant and equipment and depreciation
Property, plant and equipment is stated on the basis of cost.
Depreciation of property, plant and equipment is determined by the
declining-balance method over the estimated useful lives of therespective assets, except for buildings to which the straight-line method
is applied.
Significant renewals and additions are capitalized at cost.
Maintenance and repairs are charged to income as incurred(k) Leases and depreciation
Finance lease transactions which do not stipulate the transfer ofownership of the leased assets to the lessee are accounted for aspurchase and sales transactions.
With regard to the depreciation method of leased assets, thestraight-line method is applied using the lease period as the estimateduseful life and a residual value of zero.
(l) Retirement benefit
The retirement benefit obligation for employees is attributed to eachperiod by the benefit formula method.
Prior service cost is being amortized as incurred by the straight-line
method over ten years, which is shorter than the average remaining
years of service of the eligible employees.
Actuarial gain or loss is amortized in the year following the year inwhich the gain or loss is recognized by the straight-line method over ten
years, which is shorter than the average remaining years of service ofthe employees participating in the plans.
Certain subsidiaries use a simplified method in the calculation of
their retirement benefit obligation.
(m) Income taxes
Deferred tax assets and liabilities have been recognized in the
consolidated balance sheets with respect to the differences between
financial reporting and the tax bases of the assets and liabilities, and aremeasured using the enacted tax rates and laws which will be in effectwhen the differences are expected to reverse.
(n) Research and development expenses
Research and development expenses are charged to income whenincurred.
(o) Revenue and cost recognition
Revenues on sales of products are generally recognized at the time of
shipment.
Revenues and costs, of which the percentage of completion can bereliably estimated, are recognized by the percentage-of-completion
method. The percentage of completion is calculated at the cost
incurred as a percentage of the estimated total cost. The
completed-contract method is applied to contracts for which thepercentage of completion cannot be reliably estimated.

(p) Derivative financial instruments
Derivative financial instruments are carried at fair value. Gain or loss onderivatives designated as hedging instruments is deferred as acomponent of net assets until the loss or gain on the underlying hedged
items is recognized. Foreign currency receivables and payables aretranslated at the applicable forward foreign exchange rates whencertain conditions are met. In addition, the related interest differential
paid or received under interest-rate swaps utilized as hedging
instruments is recognized over the terms of the swap agreements as an
adjustment to the interest expense of the underlying hedged items
when certain conditions are met.
(q) Consumption tax
Accounting treatment of consumption tax is the tax exclusion method.
(r) Provision for directors’ bonuses
Provision for directors’ bonuses is provided based on estimatedamounts to be paid in the subsequent period that are applicable to thecurrent period.
(s) Provision for directors’ retirement benefits
Provision for directors’ retirement benefits is provided based on estimatedamounts determined by internal rules.
(t) Accounting changes
The Company and its domestic subsidiaries adopted Section 35 of“Accounting Standard for Retirement Benefits” (ASBJ Statement No.26
of May 17, 2012) and the main clause of Section 67 of “Guidance on
Accounting Standard for Retirement Benefits” (ASBJ Guidance No.25 ofMarch 26, 2015) effective from April 1, 2014. As a result, the method for
calculating the retirement benefit obligation and service cost have beenrevised in the following respects: the method for attributing projected
benefits to each period has been changed from the straight-line method
to the benefit formula method, and the method for determining thediscount rate has been changed to use a single weighted-average
discount rate reflecting the expected timing and amount of benefit
payments.
The cumulative effect of changing the method for calculating theretirement benefit obligation and service cost was recognized byadjusting retained earnings at April 1, 2014, in accordance with thetransitional treatment provided in Paragraph 37 of Accounting Standard
for Retirement Benefits.
As a result, retirement benefit liability increased by ¥712 million($5,925 thousand), retirement benefit asset decreased by ¥128 million($1,065 thousand) and retained earnings decreased by ¥555 million($4,618 thousand) at April 1, 2014. The effect of these changes on
consolidated operating income, loss before income taxes and minority
interests for the year ended March 31, 2015 was immaterial.
In addition, net assets per share decreased by ¥1.50 ($0.01), while
the effect of change on net loss per share was immaterial.

33

(u) Standards issued but not yet effective
Accounting standards for business combinations
On September 13, 2013, the ASBJ issued “Revised Accounting Standard
for Business Combinations” (ASBJ Statement No.21), “Revised
Accounting Standard for Consolidated Financial Statements” (ASBJ
Statement No.22), “Revised Accounting Standard for Earnings Per
share” (ASBJ Statement No.2) , “Revised Guidance on AccountingStandard for Business Combinations and Accounting Standard forBusiness Divestitures” (ASBJ Guidance No.10), and “Revised Guidanceon Accounting Standard for Earnings Per Share” (ASBJ Guidance No.4).
(1) Overview
Under there revised accounting standards, the accounting
treatment for any changes in a parent’s ownership interest in a
subsidiary when the parent retains control over the subsidiaryand the corresponding accounting for acquisition-related costs
were revised. In addition, the presentation method of net
income was amended, the reference to “minority interests” waschanged to “non-controlling interests,” and transitional
provisions for these accounting standards were also defined.
(2) Scheduled date of adoption
The Company expects to adopt these revised accounting
standards and guidance from the beginning of the fiscal year
ending March 31, 2016.
(3) Impact of adopting revised accounting standards and guidance
The Company is currently evaluating the effect of adopting
these revised standards on its consolidated financial
statements.
3. Additional Information
The Company has recorded Provision for loss on wind power generator
business, amounting to ¥15,967 million ($132,870 thousand), by
estimating the amount of total losses caused by the defects of certain
parts used in wind power generators. As a result, loss on wind power
generator business, amounting to ¥15,967 million ($132,870 thousand),has been recognized in Other income (expenses).
4. U.S. Dollar Amounts
The translation of yen amounts into U.S. dollars is included solely forconvenience, as a matter of arithmetic computation only, at ¥120.17 =U.S.$1.00, the approximate rate of exchange prevailing on March 31,
2015. This translation should not be construed as a representation that
all amounts shown could be converted into U.S. dollars at such rate.

34

5. Inventories
Inventories at March 31, 2015 and 2014 consisted of the following:
Millions of yen

Thousands of
U.S. dollars

2015

2015

2014
Real estate held for sale
Finished products
Work in process
Raw materials and supplies

¥
6
1,795
59,477
4,208

¥

6 $
50
2,096
17,442
61,517 511,916
5,234
43,555

Total¥65,488¥68,856 $572,988

Work in process related to construction contracts of which a loss isanticipated to be incurred was offset with a provision for loss on
construction contracts of ¥791 million ($6,582 thousand) at March 31,
2015 and ¥1,291 million at March 31, 2014.
6. Depreciation
Depreciation expense on property, plant and equipment for the years
ended March 31, 2015 and 2014 were as follows:

Depreciation expense

Millions of yen

Thousands of
U.S. dollars

2014

2015

2015

¥12,950¥11,008$91,604

7. Advanced Depreciation
Accumulated advanced depreciation related to government grants
received has been deducted directly from the acquisition costs ofcertain tangible fixed assets (plant, machinery and equipment). Suchaccumulated depreciation at March 31, 2015 and 2014 are summarized
as follows:
Thousands of

Accumulated advanced
depreciation expense

Millions of yen

U.S. dollars

2014

2015

2015

¥1,286¥1,286$10,702

8. Contingent Liabilities
Contingent liabilities at March 31, 2015 and 2014 consisted of thefollowing:
Millions of yen

Thousands of
U.S. dollars

2015

2015

2014
As endorsers of trade notes
receivable:
Endorsed to otherAs guarantors of loans:
Muroran Environmental Plant
Service Co., Ltd.
Gotsu Wind Power Co., Ltd.
Employees and other

¥

98

526
1,385
153

¥

68

473
1,236
95

$

566
3,936
10,285791

Six-Year Summary
Financial Performance (Consolidated)
Consolidated Balance Sheet
Consolidated Statement of Income
Consolidated Statement of Comprehensive Income
Consolidated Statement of Changes in Net Assets
Consolidated Statement of Cash Flows
Notes to Consolidated Financial Statements
Independent Auditor’s Report

9. Short-Term Borrowings and Long-Term Debt
All short-term borrowings, with interest at annual rates ranging from
0.4218% to 1.5293% at March 31, 2015 and 0.5118% to 1.975% at March
31, 2014, were unsecured.
Long-term debt at March 31, 2015 and 2014 were as follows:

2014
Loans from banks and insurancecompanies with interest aannual rates ranging
from 0.0300% to 1.8863%
Less those maturing within
one yearLease obligations
Less those maturing within
one year
0.48% straight bonds,
due 2015
Less those maturing within
one yearLong-term indebtedness
reflected in the consolidatedbalance sheets

Millions of yen

Thousands of
U.S. dollars

2015

2015

¥17,795¥17,332 $144,229(2,700)2,004(11,105)
1,758(92,411)
14,629

(754)

(663)

(5,517)

10,00010,00083,215—(10,000)(83,215)¥26,345¥ 7,322 $ 60,930

The aggregate annual maturities of long-term debt and leaseobligations subsequent to March 31, 2015 are summarized as follows:
Millions of yen

Year ending March 31,

2016
2017
2018
2019
2020
2021 and thereafterYear ending March 31,

2016
2017
2018
2019
2020
2021 and thereafterThousands of
U.S. dollars

Bonds

Millions of yen

Thousands of
U.S. dollars

Long-term loans¥ 10,000—————$83,215—————

Millions of yen

Thousands of
U.S. dollars¥11,105
240
4,095
52
40
1,800

$92,411
1,997
34,077433
333
14,979

10. Research and Development Expenses
Research and development expenses included in manufacturing costs,
and selling, general and administrative expenses for the years ended
March 31, 2015 and 2014 were as follows:

Research and development
expensesMillions of yen

Thousands of
U.S. dollars

2014

2015

2015

¥3,836¥4,104$34,152

11. Other Income (Expenses)—Other, Net
The details of “Other, net” in “Other income (expenses)” for the years
ended March 31, 2015 and 2014 were as follows:

Foreign exchange gain
Gain on settlement of long-term
guarantee deposited
Amortization of negative goodwill
Commission fee
Non-deductible consumption tax
Equity in losses of affiliates
Gain on sales of property, plantand equipment
Gain on sales of investment
securities
Gain on bargain purchase
Loss on sales or disposal ofproperty, plant and equipment
Loss on valuation of subsidiaries
and associates
Loss on business of subsidiaries
and associates
Other, net
Total

¥

Millions of yen

Thousands of
U.S. dollars

2014

2015

2015

376

¥357

$2,971

—
71
—
(20)
(0)

709
71
(310)
(135)
(0)

5,900
591
(2,580)(1,123)
(0)

107

6

50

46
—

2,214
218

18,424
1,814

(147)

(343)

(2,854)

(44)

(55)

(458)

—
(81)

(6)
551

(50)
4,585

¥308

¥3,277$27,270

Lease obligations

¥663
495
342
180
71
5

$5,517
4,119
2,846
1,498
591
42

35

12. Other Comprehensive Income
The following table presents reclassification adjustments and tax
effects allocated to each component of other comprehensive income
for the years ended March 31, 2015 and 2014:

2014
Unrealized holding gain (loss) on securities:
Amount arising during the year
Reclassification adjustments for gains
and losses realized in net income

Millions of yen

Thousands of
U.S. dollars

2015

2015

¥4,401¥7,399$61,571

(46)

(502)

(4,177)

The amount of unrealized holding gain
(loss) on securities before tax effectTax effect

4,355(1,537)

6,897(1,994)57,394(16,593)

Unrealized holding gain (loss) on securities

2,817

4,902

40,792

Unrealized gain (loss) from hedging instruments:
Amount arising during the year
Tax effect

332
(130)

(86)
21

(716)
175

Unrealized gain (loss) from hedging instruments

202

(64)

(533)

Translation adjustments:
Amount arising during the year

390

358

2,979

Translation adjustments

390

358

2,979

—

458

3,811

—

545

4,535

—
—

1,004
(386)

8,355
(3,212)Retirement benefits plans adjustments:
Amount arising during the year
Reclassification adjustments for gains
and losses realized in net income
The amount of unrealized holding gain
(loss) on securities before tax effectTax effect
Retirement benefits plans adjustments
Total other comprehensive income

—

617

5,134

¥3,410¥5,814$48,381

13. Supplementary Information for Consolidated Statement of
Changes in Net Assets
Year
ended March 31, 2015―――――――――――――――(a) Information regarding the number and type of shares issued andtreasury stock:
Number of sharesYear ended
March 31,
2014

Increaseduringthe year

Shares issued:
Common stock 371,463,036
Treasury stock:
Common stock(Note 1 and 2)
1,189,350—
3,350

Decreaseduringthe yearYear ended
March 31,2015

— 371,463,036
403

1,192,297

Notes: 1. The increase in treasury stock – common stock of 3,350 was due to theacquisition of fractional shares of less than one unit.
2. The decrease in treasury stock – common stock of 403 was due to salesof fractional shares of less than one unit.

(b) Dividends( i ) Dividends paid to shareholders① Resolution:
Type of shares:
Total amount ofdividends:
Dividends per share:
Cut-off date:
Effective date:② Resolution:
Type of shares:
Total amount ofdividends:
Dividends per share:
Cut-off date:
Effective date:

Annual general meeting ofshareholders held on June 25, 2014
Common stock¥925 million ($7,697 thousand)¥2.5 ($0.021)
March 31, 2014
June 26, 2014
Meeting of Board of Directors
held on November 4, 2014
Common stock¥740 million ($6,158 thousand)¥2 ($0.017)
September 30, 2014
December 5, 2014(ii) Dividends of which the cut-off date was in the year ended March 31,
2015, but the effective date is in the following fiscal year
Resolution:
Type of shares:
Total amount ofdividends:
Dividends per share:
Cut-off date:
Effective date:
Source of dividends:

36

Annual general meeting of shareholders
held on June 24, 2015
Common stock¥740 million ($6,158 thousand)¥2 ($0.017)
March 31, 2015
June 25, 2015
Retained earnings

Six-Year Summary
Financial Performance (Consolidated)
Consolidated Balance Sheet
Consolidated Statement of Income
Consolidated Statement of Comprehensive Income
Consolidated Statement of Changes in Net Assets
Consolidated Statement of Cash Flows
Notes to Consolidated Financial Statements
Independent Auditor’s ReportYear
ended March 31, 2014―――――――――――――――(a) Information regarding the number and type of shares issued andtreasury stock:
Number of sharesYear ended
March 31,2013

Increaseduringthe year

Decreaseduringthe yearYear ended
March 31,
2014

—

—

371,463,036

14. Cash Flow Information(a) Cash and cash equivalents
The reconciliation between cash and cash equivalents in theaccompanying consolidated statements of cash flows and cash on
hand and in banks in the accompanying consolidated balance sheetsat March 31, 2015 and 2014 are summarized as follows:
Millions of yen

Thousands of
U.S. dollars

2015

2015

2014

Shares issued:
Common stock 371,463,036
Treasury stock:
Common stock(Note 1 and 2)
632,211557,139—

1,189,350

Cash on hand and in banks in the
consolidated balance sheet
Time deposits with maturities ofmore than three months¥42,329¥49,176 $409,220
(24)

(32)

(200)

Notes: The increase in treasury stock – common stock of 511,000 was due to theacquisition from the dissenting shareholders under the provisions of 797,
Paragraph 1 of the Companies Act and common stock of 6,139 was due tothe acquisition of fractional shares of less than one unit.

Cash and cash equivalents in the
consolidated statement ofcash flows(b) Dividends( i ) Dividends paid to shareholders(b) Significant transactions without cash flows
Assets and liabilities corresponding to finance lease transactions thathave been recorded by the Company and its domestic consolidated
subsidiaries at March 31, 2015 and 2014 were as follows:① Resolution:
Type of shares:
Total amount ofdividends:
Dividends per share:
Cut-off date:
Effective date:② Resolution:
Type of shares:
Total amount ofdividends:
Dividends per share:
Cut-off date:
Effective date:

Annual general meeting ofshareholders held on June 25, 2013
Common stock¥1,854 million¥5
March 31, 2013
June 26, 2013
Meeting of Board of Directors
held on November 5, 2013
Common stock¥927 million¥2.5
September 30, 2013
December 4, 2013(ii) Dividends of which the cut-off date was in the year ended March 31,
2014, but the effective date is in the following fiscal year
Resolution:
Type of shares:
Total amount ofdividends:
Dividends per share:
Cut-off date:
Effective date:
Source of dividends:

Lease assets
Lease obligations¥42,297¥49,152 $409,021

Millions of yen

Thousands of
U.S. dollars

2014

2015

2015

¥745
772

¥485
522

$4,036
4,344

15. Leases
Year
ended March 31, 2015―――――――――――――――
Future minimum lease payments subsequent to March 31, 2015 under
non-cancelable operating leases are summarized as follows:Year ending March 31,

Millions of yen

Thousands of
U.S. dollars

20162017 and thereafter¥2,348
2,328$19,539
19,373

Total¥4,676$38,912Annual general meeting of shareholders
held on June 25, 2014
Common stockYear
ended March 31, 2014―――――――――――――――
Future minimum lease payments subsequent to March 31, 2014 under
non-cancelable operating leases are summarized as follows:¥925 million¥2.5
March 31, 2014
June 26, 2014
Retained earnings

Year ending March 31,

Millions of yen

2015
2016 and thereafter¥3,129
4,305

Total

¥7,43437

16. Financial Instruments
Overview(a) Policy for financial instruments
In consideration of plans for operations and capital investment, theCompany and its consolidated subsidiaries (collectively, the “Group”)
utilize funds provided by operating cash flows first. The Group uses
bond issuances and bank borrowings in order to raise additional funds,
if needed. The Company manages temporary cash surpluses throughlow-risk financial assets. The Company uses derivatives for the purposeof reducing risks and does not enter into derivative contracts for
speculative or trading purposes.
(b) Types of financial instruments and related risk
Trade receivables – trade notes and accounts receivable – are exposedto credit risk in relation to customers. In addition, the Company is
exposed to foreign currency exchange risk arising from receivables
denominated in foreign currencies. The foreign currency exchange risks
deriving from the trade receivables denominated in foreign currencies
are hedged by forward foreign exchange contracts, if needed.
Investment securities are exposed to market risk. These securities
are mainly composed of the shares of common stock of companies
with which the Company has business relationships.
Trade payables – trade notes and accounts payable – havepayment due dates within one year. Since the Company is exposed toforeign currency exchange risk arising from those payables
denominated in foreign currencies, forward foreign exchange contracts
are arranged to reduce the risk, if needed.
Loans payable and bonds are used to raise funds mainly inconnection with capital investments. The repayment dates of thelong-term debts extend up to seven years from the balance sheet date.
Long-term debt with variable interest rates is exposed to interest rate
fluctuation risk. However, to reduce such risk and fix the interest
payments for long-term debt with variable rates, the Company utilizes
interest rate swap transactions as hedging instruments.
Regarding derivatives, the Company enters into forward foreignexchange contracts to reduce the foreign currency exchange risk arisingfrom the receivables and payables denominated in foreign currencies.
The Company also enters into interest rate swap transactions to reduce
the fluctuation risk of interest payments for long-term debt withvariable rates.
Information regarding the method of hedge accounting, hedging
instruments and hedged items, hedging policy, and the assessment of
the effectiveness of hedging activities is found in Note 2 (p).
(c) Risk management for financial instruments( i ) Monitoring of credit risk (the risk that customers or
counterparties may default)
In accordance with the internal policies of the Company for
managing credit risk arising from receivables, each related
division monitors credit worthiness of their main customers
periodically, and monitors due dates and outstanding balances38

by individual customer. In addition, the Company is making
efforts to identify and mitigate risks of bad debts from
customers who are having financial difficulties. The
consolidated subsidiaries also manage credit risk using theCompany’s internal policies and methods.
The Company also believes that the credit risk of derivatives
is insignificant as it enters into derivative transactions only withfinancial institutions which have a high credit-rating.
(ii) Monitoring of market risk (the risk arising from fluctuations inforeign exchange rates, interest rates and others)
For trade receivables and payables denominated in foreign
currencies, the Company identifies the foreign currency
exchange risk for each currency on a monthly basis and enters
into forward foreign exchange contracts to hedge such risk. In
order to mitigate the interest rate risk for loans payable bearing
interest at variable rates, the Company may also enter into
interest rate swap transactions.
For investment securities, the Company periodically reviews
the fair values of such financial instruments and the financial
position of the issuers. In addition, the Company continuously
evaluates whether securities should be maintained taking into
account their fair values and relationships with the issuers.
In conducting derivative transactions, the division in chargeof each derivative transaction follows the internal policies,
which set forth delegation of authority. Monthly reports
including actual transaction data are submitted to top
management for their review. The consolidated subsidiaries
also conduct derivative transactions using the Company’s
internal policies.
(iii) Monitoring of liquidity risk (the risk that the Company may not
be able to meet its obligations on scheduled due dates)
Based on the report from each division, the Company preparesand updates its cash flow plans on a timely basis to manage
liquidity risk. The consolidated subsidiaries manage theliquidity risk using cash flow plans and report to the Company
periodically.
(d) Supplementary explanation of the estimated fair value offinancial instruments
The fair value of financial instruments is based on their quoted market
price, if available. When there is no available quoted market price, fairvalue is reasonably estimated. Since various assumptions and factors
are reflected in estimating the fair value, different assumptions andfactors could result in different fair value. In addition, the notionalamounts of derivatives in Note 18 Derivative Transactions are notnecessarily indicative of the actual market risk involved in derivativetransactions.

Six-Year Summary
Financial Performance (Consolidated)
Consolidated Balance Sheet
Consolidated Statement of Income
Consolidated Statement of Comprehensive Income
Consolidated Statement of Changes in Net Assets
Consolidated Statement of Cash Flows
Notes to Consolidated Financial Statements
Independent Auditor’s Report

Estimated Fair Value of Financial Instruments
Carrying value of financial instruments on the consolidated balance
sheet as of March 31, 2015 and estimated fair value are shown in thefollowing table. The following table does not include financial
instruments for which it is extremely difficult to determine the fair value(Please refer to Note (ii) below).
Year
ended March 31, 2015―――――――――――――――

AssetsCash on hand and in banks
Trade notes and accounts
receivable
Securities:
Other securities
Total assets

Millions of yen

Carrying
amountEstimated
fair value

Difference¥ 49,176¥ 49,176¥ —56,67856,675(2)

37,40837,408—¥143,263¥143,261¥ (2)Liabilities
Trade notes and accounts payable ¥ 42,248
12,255
Short-term borrowings
11,105Current portion of long-term debt
10,000Current portion of bonds
6,227
Long-term debt

¥ 42,248
12,255
11,11810,014
6,301

¥ —
—
13
14
74

Total liabilities¥ 81,835¥ 81,937¥101

Derivatives (*)¥(288) ¥—

(288)

Thousands of U.S. dollars

Carrying
amountAssetsCash on hand and in banks
Trade notes and accounts
receivable
Securities:
Other securities
Total assets

Estimated
fair value$ 409,220 $ 409,220

Difference

$

(17)

471,624471,648—

311,292

311,292—$1,192,169$1,192,153$ (17)

Liabilities
Trade notes and accounts payable $ 351,569 $ 351,569
101,981
101,981
Short-term borrowings
92,51992,411
Current portion of long-term debt
83,332
83,215Current portion of bonds
52,43451,818Long-term debt
Total liabilities$ 680,994

Derivatives (*)$$ 681,842(2,397) $(2,397)

$

—
—
108
117
616
$840
—

(*) The value of assets and liabilities arising from derivatives is shown at net value,with the amount in parentheses representing net liability position.

Year
ended March 31, 2014―――――――――――――――

AssetsCash on hand and in banks
Trade notes and accounts
receivable
Securities:
Other securities

Millions of yen

Carrying
amountEstimated
fair value

Difference¥ 42,329¥ 42,329¥ —48,86948,866(2)

30,86630,866—¥122,066¥122,063¥ (2)Liabilities
Trade notes and accounts payable ¥ 42,339
12,292
Short-term borrowings
2,700
Current portion of long-term debt
10,000Bonds
15,095Long-term debt

¥ 42,339
12,292
2,732
10,031
15,151

¥ —
—
32
31
56

Total liabilities¥ 82,426¥ 82,548¥121

Derivatives (*)¥

Total assets(201) ¥

(201)—(*) The value of assets and liabilities arising from derivatives is shown at net value,with the amount in parentheses representing net liability position.

( i) Method to determine the estimated fair value of financial
instruments and other matters related to securities and derivativetransactions
AssetsCash on hand and in banks
The carrying amount is used for bank deposits without maturities,
because the fair value approximates the carrying value. The fairvalue of time deposits in banks with maturities is calculated basedon the present value of the total principal and interest discounted at
a rate supposing a newly made deposit.
Trade notes and accounts receivables
The fair value is calculated by categories of the remaining periods ofthe receivables based on the present value using discount rates
determined by the period to maturity and credit risk.
Securities
The carrying amount is used for other securities with maturities,
because the fair value approximates the carrying amount.
Quoted market price is used for other securities.
Liabilities
Trade notes and accounts payable and short-term borrowings
The carrying amount is used for these items because the fair value
approximates the carrying amount.
Current portion of long-term debt, bonds and long-term debt
The fair values are calculated by applying a discount rate, based on
the assumed interest rate if a similar new debt is issued, to the totalof the principal and interest. The current portion of long-term debt
and long-term debt with variable interest rates are subject to thespecial treatment of interest rate swaps and is calculated byapplying a discount rate, based on the assumed interest rate if asimilar new debt is issued, to the total of the principal and interest
including that of the interest rate swap.
Derivative Transactions
Please refer to Note 18, Derivative Transactions, of the notes to theconsolidated financial statements.
39

Thousands of U.S. dollars(ii) Financial instruments for which it is extremely difficult to determine
the fair value
Thousands ofUnlisted stocks

Millions of yen

U.S. dollars

2014

2015

2015

¥1,949¥1,722$14,330

Because the fair values of these financial instruments are extremely
difficult to determine, given that they do not have quoted market prices
and future cash flows cannot be estimated, they are not included in“Securities” in the preceding table.
(iii) Redemption schedule for receivables and securities with maturities
at March 31, 2015 and 2014.
Year
ended March 31, 2015―――――――――――――――
Millions of yen

Due in one
year or lessDue after
one yearthroughfive years

Due after
five years

Cash on hand and in banks¥ 49,176
56,050Trade notes and accounts receivable

¥ —
628

—
—

¥628

—

Total

¥105,226

Thousands of U.S. dollars

Due in 1 year or lessDue after 1 year through 2 years
Due after 2 years through 3 years
Due after 3 years through 4 years
Due after 4 years through 5 years
Due after 5 years

Lease
obligations$83,215—————$92,411
1,997
34,077433
333
14,979$5,517
4,119
2,846
1,498
591
42

Bonds

Long-term
loans

Lease
obligations¥—
10,000————¥ 2,700
10,980
115
4,000
—
—

¥754
549
372
241
84
1

Acquisition
cost

Carrying
amountUnrealized
gain (loss)¥16,672¥30,882¥14,210

6,800

6,126

(674)

¥23,472¥37,008¥13,536

Year
ended March 31, 2014―――――――――――――――

Due in 1 year or lessDue after 1 year through 2 years
Due after 2 years through 3 years
Due after 3 years through 4 years
Due after 4 years through 5 years
Due after 5 years

Millions of yen

17. Securities
Other securities:
March
31, 2015―――――――――

Due in one
year or lessDue after
one yearthroughfive years

Due after
five years$409,220
Cash on hand and in banks
Trade notes and accounts receivable 466,423

$ —
5,226

—
—

Carrying amount exceeding the acquisition cost:
StocksCarrying amount not exceeding the acquisition cost:
Stocks$875,643$5,226

—

Total

Total

Bonds

Long-termloansMillions of yen

Thousands of U.S. dollars

Year ended March 31, 2014―――――――――――――――
Due in one
year or lessDue after
one yearthroughfive years

Due after
five years

Cash on hand and in banks
Trade notes and accounts receivable¥42,329
48,244

¥ —
624

—
—

Total

¥90,574¥624—(iv) The redemption schedule for long-term debt
Year
ended March 31, 2015―――――――――――――――

Due in 1 year or lessDue after 1 year through 2 years
Due after 2 years through 3 years
Due after 3 years through 4 years
Due after 4 years through 5 years
Due after 5 years

40

Acquisition
cost

Millions of yen

Millions of yen

Bonds

Long-term
loans

Lease
obligations¥10,000—————¥11,105
240
4,095
52
40
1,800

¥663
495
342
180
71
5

Carrying
amountUnrealized
gain (loss)

Carrying amount exceeding the acquisition cost:$138,737 $256,986 $118,249
StocksCarrying amount not exceeding the acquisition cost:
Stocks56,58750,978(5,609)
Total$195,323 $307,964 $112,640

March
31, 2014―――――――――

Carrying amount exceeding the acquisition cost:
StocksCarrying amount not exceeding the acquisition cost:
Stocks
Total

Millions of yen

Acquisition
cost

Carrying
amountUnrealized
gain (loss)¥12,704¥20,309¥7,604

11,150

10,185(964)¥23,855¥30,494¥6,639When their fair values have declined by 50% or more, impairment losses
are recorded on those securities. When their fair values have declined
by 30% up to 50%, impairment losses are recorded on those securities
on an individual basis to the values considered to be recoverable.

Six-Year Summary
Financial Performance (Consolidated)
Consolidated Balance Sheet
Consolidated Statement of Income
Consolidated Statement of Comprehensive Income
Consolidated Statement of Changes in Net Assets
Consolidated Statement of Cash Flows
Notes to Consolidated Financial Statements
Independent Auditor’s Report

18. Derivative Transactions(a) Derivatives not subject to hedge accountingYear
ended March 31, 2015―――――――――――――――
None applicableYear
ended March 31, 2014―――――――――――――――
None applicable(b) Derivatives subject to hedge accounting
The contract amounts or the amount corresponding to principal as specified by the contract as of the date of theclosing of the consolidated accounts is shown below by type of hedge accounting method.
( i ) Currency-related transactions
Year
ended March 31, 2015―――――――――――――――
Hedge accounting method

Type of derivative

Principal items hedged

Allocation method

Foreign exchange forward contracts
Sell:
U.S. dollars
Euros
Sterling pound

Notes and accounts receivable

Foreign exchange forward contracts
Buy:
U.S. dollars
Euros
Sterling pound
Swiss franc

Notes and accounts payable

Hedge accounting method

Type of derivative

Principal items hedged

Allocation method

Foreign exchange forward contracts
Sell:
U.S. dollars
Euros
Sterling pound

Notes and accounts receivable

Foreign exchange forward contracts
Buy:
U.S. dollars
Euros
Sterling pound
Swiss franc

Notes and accounts payable

Millions of yen

Contract amount

Fair value¥16,857
1,419
277

Over one year¥(1,413)¥2,76454
11(8)—¥11,815
1,014
157
13

—
—
—
—

¥ 1,178(96)(2)
0

Thousands of U.S. dollars

Contract amount

Fair value$140,276
11,8082,305Over one year
$23,001 ¥(11,758)
449
92
(67)
—

$ 98,319
8,438
1,306
108

—
—
—
—

¥ 9,803
(799)
(17)
0

Note: Calculation of fair value is based on the forward exchange rates.

Year
ended March 31, 2014―――――――――――――――

Millions of yen

Hedge accounting method

Type of derivative

Principal items hedged

Allocation method

Foreign exchange forward contracts
Sell:
U.S. dollars
Euros
Canadian dollars
Hong Kong dollars

Notes and accounts receivable

Foreign exchange forward contracts
Buy:
U.S. dollars
Euros
Sterling pound
Hong Kong dollars

Notes and accounts payable

Contract amount¥16,405
554
—
13
¥

745
1,126
143
—

Fair valueOver one year
¥3,294
13
—
—
—
—
—
—

¥(254)
(3)
—
(0)
¥

6
51
(0)
—

Note: Calculation of fair value is based on the forward exchange rates.

41

(ii) Interest-related transactions
Year
ended March 31, 2015―――――――――――――――

Millions of yen

Hedge accounting method

Type of derivative

Special treatment for interest
rate swaps

Receive/floating and pay/fixed

Principal items hedged

Contract amount

Fair valueOver one year
Long-term borrowings¥4,000Principal items hedged

Contract amount¥4,000(*)

Thousands of U.S. dollars

Hedge accounting method

Type of derivative

Special treatment for interest
rate swaps

Receive/floating and pay/fixed

Fair valueOver one year
Long-term borrowings$33,286$33,286(*)(*) Since interest rate swap contracts accounted for by the special treatment for interest rate swaps are treated together with the long-term borrowings subject to hedging,
the estimated fair value of such interest rate swap contracts is included in the estimated fair value of the corresponding long-term borrowings.
Note: Calculation of fair value is based on the stated price by financial institutions.

Year
ended March 31, 2014―――――――――――――――

Millions of yen

Hedge accounting method

Type of derivative

Special treatment for interest
rate swaps

Receive/floating and pay/fixed

Principal items hedged

Contract amount

Fair valueOver one year
Current portion of long-termborrowings
Long-term borrowings¥4,000¥4,000(*)(*) Since interest rate swap contracts accounted for by the special treatment for interest rate swaps are treated together with the long-term borrowings subject to hedging,
the estimated fair value of such interest rate swap contracts is included in the estimated fair value of the corresponding long-term borrowings.
Note: Calculation of fair value is based on the stated price by financial institutions.

19. Retirement Benefit Plans
The Company and its consolidated subsidiaries have either funded or
unfunded defined benefit plans and/or defined contribution plans.
The Company and its domestic consolidated subsidiaries havedefined benefit plans, i.e. lump-sum payment plans, defined benefit
plans, welfare pension fund and tax-qualified pension plans, covering
substantially all employees who are entitled to lump-sum or annuity
payments, the amounts of which are determined by reference to theirbasic rates of pay, length of service, and the conditions under which
termination occurs.
The changes in the retirement benefit obligation for the years ended
March 31, 2015 and 2014 are as follows:

42

Millions of yen

Thousands of
U.S. dollars

2014

2015

2015

¥20,367¥19,819$164,925

—

840

6,990

Restated balance at the
beginning of the year
Service cost
Interest cost
Actuarial gain and loss
Retirement benefit paid

20,367963
272(82)(1,701)

20,659972
244
528(1,915)

171,915
8,089
2,030
4,394
(15,936)

Balance at the end of the year

¥19,819¥20,489$170,500

Balance at the beginning of the year
Cumulative effect of change inaccounting principle

Six-Year Summary
Financial Performance (Consolidated)
Consolidated Balance Sheet
Consolidated Statement of Income
Consolidated Statement of Comprehensive Income
Consolidated Statement of Changes in Net Assets
Consolidated Statement of Cash Flows
Notes to Consolidated Financial Statements
Independent Auditor’s Report

The changes in plan assets for the years ended March 31, 2015 and2014 are as follows:
Thousands of2014

Millions of yen

U.S. dollars

2015

2015

Balance at the beginning of the year
Expected return on plan assets
Actuarial gain and loss
Contributions by the Company
Retirement benefits paid

¥14,968
224
901
459(1,030)¥15,524 $129,184
310
2,580
987
8,213
429
3,570
(1,149)(9,561)

Balance at the end the year

¥15,524¥16,101$133,985

The changes in retirement benefit liability accounted for using thesimplified method for the years ended March 31, 2015 and 2014 are as
follows:
Thousands ofMillions of yen

U.S. dollars

2014

2015

2015

Balance at the beginning of the year
Retirement benefit expenses
Retirement benefit paid
Contributions
Other¥3,804
561
(467)
(197)
28

¥3,729
470
(606)
(193)
36

$31,031
3,911(5,043)(1,606)300

Balance at the end the year

¥3,729¥3,436$28,593

The following table sets forth the funded status of the plans and theamounts recognized in the consolidated balance sheets as of March 31,
2015 and 2014 for the Company’s and the consolidated subsidiaries’
defined benefit plans:
Thousands of2014
Funded retirement benefit
obligation
Plan assets at the value
Unfunded retirement benefit obligation

Millions of yen

U.S. dollars

2015

2015

¥19,093 ¥ 19,668 $ 163,668(16,338) (17,013) (141,574)
2,754
5,223

2,655
5,138

2,209442,756The components of retirement benefits plans adjustments included inother comprehensive income (before tax effect) for the years ended
March 31, 2015 and 2014 are as follows:
Thousands ofMillions of yen

U.S. dollars

2014

2015

2015

Prior service cost
Actuarial gain and loss

¥—
—

¥ 180
823

$1,498
6,849

Total

¥—

¥1,004$8,355The components of retirement benefits plans adjustments included inaccumulated other comprehensive income (before tax effect) as ofMarch 31, 2015 and 2014 are as follows:
Millions of yen

Thousands of
U.S. dollars

2014

2015

2015

Unrecognized prior service cost
Unrecognized actuarial gain and loss

¥ (180)(1,442)

¥ —
(618)

$
—
(5,143)

Total¥(1,622)¥(618)$(5,143)

The fair value of plan assets, by major category, as a percentage of total
plan as of March 31, 2015 and 2014 as follows:
March 31,

2014

2015

Bonds
StocksCash on hand and in banks
General account
Other

29%
38
0
16
16

28%
41
0
16
15

Total

100%

100%

Retirement benefit trust set for the lump-sum and corporate pension
plans accounts for 19% and 19% of the total plan assets, for the years
ended March 31, 2015 and 2014, respectively.

Net liability for retirement
benefits in the balance sheet

7,978

7,793

64,850Retirement benefit liability
Retirement benefit assets

10,405(2,427)

10,857(3,063)90,347(25,489)

The expected return on assets has been estimated based on the
anticipated allocation to each asset class and the expected long-term
returns on assets held in each category.

Net liability for retirement
benefits in the balance sheet¥7,978¥ 7,793 $ 64,850

The assumptions used in accounting for the above plans are as follows:

The components of retirement benefit expense for the years ended
March 31, 2015 and 2014 are as follows:
Thousands ofService cost
Interest cost
Expected return on plan assets
Amortization of actuarial gain and loss
Amortization of prior service cost
Simplified method for
retirement benefit expenses
Other
Retirement benefit expense

Millions of yen

U.S. dollars

2014

2015

2015

¥963
272
(224)
139
155

¥ 972
244
(310)
380
180

$ 8,089
2,030(2,580)
3,162
1,498

561
65

470
48

3,911
399

¥1,930¥1,986$16,527

March 31,

Discount rates
Expected rates of return on plan assets

2014

2015

1.50%
1.50

1.09%
2.00

Contributions made to defined contribution plans for the years ended
March 31, 2015 and 2014 were ¥32 million ($266 thousand) and ¥32
million, respectively.

4320. Income Taxes
The significant components of the Company’s deferred tax assets andliabilities at March 31, 2015 and 2014 were as follows:
Millions of yen

Thousands of
U.S. dollars

2015

2015

2014
Deferred tax assets:
Accrued enterprise taxes
Accrued bonuses
Depreciation
Amortization of long-term
prepaid expenses
Loss on revaluation of
inventory items
Loss on revaluation of financial
instruments
Retirement benefit liability
Provision for warranties forcompleted construction
Provision for loss on
construction contracts
Provision for loss on wind
power generator business
Less allowance for doubtful
accounts
Asset retirement obligations
Percentage-of-completion
methodTax loss carry forwards
Unrealized loss on investment
securities
Deferred loss on hedges
Unrealized gain on
intercompany transactions
Other
Gross deferred tax assets$ 1,182
8,288
7,598

115

111

924

1,202

798

6,641

253
4,612

214
4,558

1,781
37,930

924

724

6,025

700

486

4,044

—

4,295

35,741

169
450

195
410

1,623
3,412

617
2,412

948
2,102

7,889
17,492

341
99

215
506

1,789
4,211

690
534
15,276688
617
18,927

5,725
5,134
157,502¥

Valuation allowance(3,706)(3,456)(28,759)

Total deferred tax assets

11,56915,471

128,743

1,702

1,479

12,308

864
696

411
984

3,420
8,188

283

250

2,080

2,698
28
64

4,568
413
110

38,013
3,437
915

Deferred tax liabilities:
Reserve for advanced
depreciation
Reserve for special
depreciation
Net defined benefit asset
Disposal cost with asset
retirement obligations
Unrealized gain on investment
securities
Deferred gain on hedges
Other

44

142
996
913

¥ 180
1,004
966

Total deferred tax liabilities

6,337

8,217

68,378Net deferred tax assets¥ 5,231¥ 7,254$ 60,364

The reconciliation between the effective tax rates reflected in the
consolidated statement of income and the statutory tax rates for theyears ended March 31, 2015 and 2014 were as follows:

2014
Statutory tax rates
Effect of:Permanent differences
Tax credit
Decrease in deferred tax assets
due to tax rate change
Other

37.8%

Effective tax rates

40.8%

3.0
(2.5)
3.0
(0.5)

2015
No reconciliation
items are applicablefor the year as theCompany recorded
net loss before
income taxes

Adjustment of deferred tax liabilities and deferred tax assets due tochange in the corporate tax rate
The “Act for Partial Amendment of the Income Tax Act, etc.” (Act No.9 of2015) and the “Act for Partial Amendment of the Local Tax Act, etc.” (ActNo.2 of 2015) were promulgated on March 31, 2015. As a result, theeffective statutory tax rate used to measure the Company’s deferred tax
assets and liabilities was changed from 35.4% to 32.9% and 32.1% for
the temporary differences expected to be realized or settled in the year
beginning April 1, 2015 and the temporary differences expected to berealized or settled from April 1, 2016, respectively.
The effect of the announced reduction of the effective statutory tax
rate was to decrease deferred tax assets after offsetting deferred tax
liabilities by ¥767 million ($6,383 thousand), deferred tax liabilities after
offsetting deferred tax assets by ¥328 million ($2,729 thousand),
unrealized gain (loss) from hedging instruments by ¥8 million ($67
thousand), retirement benefits plans adjustments by ¥13 million ($108
thousand) and increase deferred income taxes by ¥864 million ($7,190
thousand) and unrealized gain (loss) on securities by ¥447 million($3,720 thousand) as of and for the year ended March 31, 2015.
21. Business Combinations
Business combination through acquisition(a) Outline of business combination① Name and business of acquired company
Name: MES AFTY Co., Ltd.
Business: Businesses of manufacture, sales and after-sales service of
ECR Plasma Deposition Systems, ALD Systems and Aneal
Systems② Main reason for the business combination
Advancing into deposition business③ Date of business combination
April 1, 2014
④ Legal form of business combination
Business transfer by cash payment⑤ Name of company after business combination
JSW AFTY Co., Ltd.

Six-Year Summary
Financial Performance (Consolidated)
Consolidated Balance Sheet
Consolidated Statement of Income
Consolidated Statement of Comprehensive Income
Consolidated Statement of Changes in Net Assets
Consolidated Statement of Cash Flows
Notes to Consolidated Financial Statements
Independent Auditor’s Report(b) Period for which earnings of the acquired company were
included in the consolidated financial statements
The earnings of the acquired company for the period from April 1,2014 through March 31, 2015 are included in the Company’s
consolidated statement of income for the year ended March 31,
2015.
(c) Acquisition cost and breakdown
Acquisition price:¥200 million ($1,664 thousand)Acquisition cost:¥200 million ($1,664 thousand)(d) Amount and reason for gain on negative goodwill① Amount¥218 million ($1,814 thousand)② Reason
The negative goodwill was generated because the fair value of the
net assets acquired on the date of the business combination
exceeded the acquisition cost.
(e) Assets acquired and liabilities assumed at the date of businesscombination
Current assets:¥178 million ($1,481 thousand)Fixed assets:¥409 million ($3,404 thousand)Total assets:¥588 million ($4,893 thousand)Current liabilities:¥115 million ($957 thousand)Long-term liabilities: ¥54 million ($449 thousand)Total liabilities:¥170 million ($1,415 thousand)Transaction under common control(a) Outline of the transaction
Combination between Nikko Kouei Co., Ltd., Nikko Design Co., Ltd.,
Nikko Casting Co., Ltd. and JSW Clad Steel Plate Company Co., Ltd.
① Name and business of companies
Name of surviving company: Nikko Kouei Co., Ltd.
Business: General construction contractor
Name of absorbed company: Nikko Design Co., Ltd.
Business: Designing and drafting of various machineries andequipment
Name of surviving company: Nikko Casting Co., Ltd.
Business: Manufacturing and sales of various steel castings,
and materials for steel castings manufacturing
Name of surviving company: JSW Clad Steel Plate Company
Co., Ltd.
Business: Manufacturing and processing of various steel plates② Date of business combination
October 1, 2014
③ Legal form of business combination
Absorption-type merger with Nikko Kouei Co., Ltd. as thesurviving company④ Name of company after business combination
Nikko MEC Co., Ltd.
⑤ Purpose of transaction
The Company intends to construct an efficient and rational
operating structure. In addition, the Company plans to enhance
productivity and profitability, use human resources effectively andbuild a responsive organization.
(b) Outline of the accounting treatment
The Company treated the transaction as transaction undercommon control based on Accounting Standard for Business
Combinations (Accounting Standards Board of Japan (ASBJ),
Statement No.21 issued on December 26, 2008) and the Guidanceon Accounting Standard for Business Combinations andAccounting Standard for Business Divestitures (ASBJ Guidance
No.10, issued on December 26, 2008).

22. Asset Retirement Obligations
The following table presents the changes in asset retirement
obligations for the years ended March 31, 2015 and 2014:
Millions of yen

Thousands of
U.S. dollars

2014

2015

2015

Balance at beginning of year
Liabilities incurred due to theacquisition of property,
plant and equipment
Accretion expense
Liabilities settled
Other¥1,371¥1,271$10,577

—
20
—
(120)

—
20
(17)
19

—
166
(141)
158

Balance at end of year

¥1,271¥1,295$10,776

23. Investment and Rental Properties
The Company has omitted the disclosure of investment and rental
properties due to immateriality for the years ended March 31, 2015 and
2014.

45

24. Segment Information
The reportable segments of the Group are components for which discrete financial information is available and whose operating results are regularly reviewed
by the Executive Committee to make decisions about resource allocation and to assess performance.
The Steel and Energy Products segment includes steel castings and forgings, steel plates, pressure vessels and steel structures. The Industrial Machinery
Products segment includes injection molding machines, film and sheet machinery, blow molding machines, magnesium injection molding machines, waste
treatment equipment and manufacturing equipment for electronic products. The Real Estate and Other Businesses segment includes regional development.
Millions of yen

Year ended March 31, 2015

Sales and operating income:Sales to third parties
Intra-segment sales and transfers
Total sales
Operating income
Assets, depreciation, and capital expenditures:
Total assets
Depreciation and amortization
Capital expenditures

Reportable segments
Steel andIndustrial
Real Estate
EnergyMachineryand Other
Products
Products
Businesses

Total

AdjustmentsandEliminations

Consolidated¥ 66,215
5,093
71,308¥ (3,200)¥126,363
1,379
127,743¥ 11,370¥ 2,095
3,446
5,542
¥ 962

¥194,674
9,919
204,593¥ 9,132¥—(9,919)(9,919)¥ (915)¥194,674—
194,674¥ 8,217¥112,831
8,043
3,474

¥108,440
2,563
4,414

¥ 13,097291
72¥234,369
10,8987,960¥ 86,713
109
31¥321,083
11,008
7,992

Thousands of U.S. dollars

Sales and operating income:Sales to third parties
Intra-segment sales and transfers
Total sales
Operating income
Assets, depreciation, and capital expenditures:
Total assets
Depreciation and amortization
Capital expenditures$551,011
42,382
593,393$ (26,629)$1,051,535
11,475
1,063,019$ 94,616$ 17,434
28,676
46,118$8,005$1,619,988
82,541
1,702,530$75,992$—(82,541)(82,541)$ (7,614)$1,619,988—
1,619,988$ 68,378$938,928
66,93028,909$ 902,388
21,32836,731$108,987
2,422
599$1,950,312
90,68866,239$721,586
907
258$2,671,906
91,60466,506

Notes: 1. Adjustments and eliminations for segment profit of ¥915 million ($7,614 thousand) include elimination of inter-segment profit on inventories and corporate generaladministration expense which are not allocable to a reportable segment.
2. Adjustments and eliminations for segment assets of ¥86,713 million ($721,586 thousand) include offset of inter-segment debt and credit, and corporate assets
which are not allocable to a reportable segment.
3. Adjustments and eliminations for depreciation and amortization of ¥109 million ($907 thousand) include depreciation and amortization for corporate assets.
Adjustments and eliminations for capital expenditures of ¥31 million ($258 thousand) include capital expenditures for corporate assets.
Millions of yen

Year ended March 31, 2014

Sales and operating income:Sales to third parties
Intra-segment sales and transfers
Total sales
Operating income
Assets, depreciation, and capital expenditures:
Total assets
Depreciation and amortization
Capital expenditures

Reportable segments
Steel andIndustrial
Real Estate
EnergyMachineryand Other
Products
Products
Businesses

Total

AdjustmentsandEliminations

Consolidated¥ 67,602
3,167
70,769¥ (3,606)¥118,385
1,766
120,152¥ 12,185¥ 2,731
3,190
5,921¥ 1,149¥188,719
8,123
196,842¥ 9,728¥—(8,123)(8,123)¥ (864)¥188,719—
188,719¥ 8,864¥111,561
9,897
2,216

¥99,309
2,649
2,793

¥ 12,984
281
114¥223,855
12,8285,125¥ 69,283
122
117¥293,139
12,9505,242

Notes: 1. Adjustments and eliminations for segment profit of ¥864 million include elimination of inter-segment profit on inventories and corporate general administration
expense which are not allocable to a reportable segment.
2. Adjustments and eliminations for segment assets of ¥69,283 million include offset of inter-segment debt and credit, and corporate assets which are not allocable toa reportable segment.
3. Adjustments and eliminations for depreciation and amortization of ¥122 million include depreciation and amortization for corporate assets.
Adjustments and eliminations for capital expenditures of ¥117 million include capital expenditures for corporate assets.

46

Six-Year Summary
Financial Performance (Consolidated)
Consolidated Balance Sheet
Consolidated Statement of Income
Consolidated Statement of Comprehensive Income
Consolidated Statement of Changes in Net Assets
Consolidated Statement of Cash Flows
Notes to Consolidated Financial Statements
Independent Auditor’s Report(a) Product and service information

Millions of yen

Year ended
March 31, 2015

Steel andEnergyProducts

Industrial
Machinery
Products

Real Estate
and OtherBusinesses

Total

Sales to third parties¥66,215¥126,363¥2,095¥194,674(e) Amortization and balance of goodwill
The following table presents the amortization and balance of negative
goodwill arising from business combinations on or prior to March 31,
2010 as of and for the years ended March 31, 2015 and 2014 byreportable segment:
Millions of yen

Thousands of U.S. dollars

Year ended
March 31, 2015

Steel andEnergyProducts

Industrial
Machinery
Products

Sales to third parties$551,011$1,051,535

Real Estate
and OtherBusinesses

Total$17,434 $1,619,988

Year ended
March 31, 2015
Amortization
Balance as ofMarch 31

Steel andEnergyProducts

Industrial Real Estate Adjustments
Machinery and Other
and
Products Businesses Eliminations

Total

—

¥71

—

—

¥71

—

—

—

—

—

Millions of yen
Thousands of U.S. dollars

Year ended
March 31, 2014

Steel andEnergyProducts

Industrial
Machinery
Products

Real Estate
and OtherBusinesses

Total

Sales to third parties¥67,602¥118,385¥2,731¥188,719

Amortization
Balance as ofMarch 31(b) Geographical information( i) Sales
Millions of yen

Thousands of
U.S. dollars

2014

2015

2015

Japan
China
Others¥ 95,966
27,15965,593¥ 100,417
29,131
65,125$ 835,625
242,415541,941

Consolidated¥188,719¥194,674$1,619,988

Note: Net sales information above is based on customer location.

(ii) Tangible assets
The Company has omitted the disclosure of tangible assets bycountry or region as of March 31, 2015 and 2014 because theamount of tangible assets in Japan accounted for more than 90%of the carrying amount in the consolidated balance sheet.
(c) Significant customer information
The Company has omitted the disclosure of significant customer
information for the years ended March 31, 2015 and 2014 because no
individual customer accounted for more than 10% of net sales in the
consolidated statement of income.
(d) Information on loss on impairment of fixed assets
Impairment losses on fixed assets by reportable segment for the years
ended March 31, 2015 and 2014 are summarized as follows:Year
ended March 31, 2015―――――――――――――――
None applicableYear
ended March 31, 2014―――――――――――――――
None applicableYear ended
March 31, 2015

Steel andEnergyProducts

Industrial Real Estate Adjustments
Machinery and Other
and
Products Businesses Eliminations

Total

—

$591

—

—

$591

—

—

—

—

—

Millions of yen

Year ended
March 31, 2014
Amortization
Balance as ofMarch 31

Steel andEnergyProducts

Industrial Real Estate Adjustments
Machinery and Other
and
Products Businesses Eliminations

Total

—

¥71

—

—

¥71

—

71

—

—

71

(f) Information on gain on negative goodwillYear
ended March 31, 2015―――――――――――――――In the Industrial Machinery Products segment, JSW AFTY Co., Ltd., aconsolidated subsidiary take over retail deposition business from MES
AFTY Co., Ltd. This resulted in a gain on negative goodwill of ¥218
million ($1,814 thousand) in the fiscal year ended March 31, 2015.
Year
ended March 31, 2014―――――――――――――――
None applicable
25. Shareholders’ Equity
The Corporation Law of Japan provides that an amount equal to 10% of
the amount to be disbursed as distributions of capital surplus (otherthan the capital reserve) and retained earnings (other than the legal
reserve) be transferred to the capital reserve and the legal reserve,
respectively, until the sum of the capital reserve and the legal reserve
equals 25% of the capital stock account. Such distributions can bemade at any time by resolution of the meeting of shareholders, or by
the Board of Directors if certain conditions are met.

47

Six-Year Summary
Financial Performance (Consolidated)
Consolidated Balance Sheet
Consolidated Statement of Income
Consolidated Statement of Comprehensive Income
Consolidated Statement of Changes in Net Assets
Consolidated Statement of Cash Flows
Notes to Consolidated Financial Statements
Independent Auditor’s Report

26. Amounts per Share
Net income per share is calculated based on the net income available
for distribution to shareholders of common stock and theweighted-average number of shares of common stock outstanding
during the year. Net assets per share are calculated based on thenumber of shares of common stock outstanding at year end. Amounts
per share at March 31, 2015 and 2014 and for the years then ended wereas follows:

Net income
Net assets

Yen

U.S. dollars

2014

2015

2015

¥ 14.92372.83¥ (10.10)373.09$(0.08)
3.10

27. Subsequent Events
Transaction under common control(a) Transfer of business
Based on the resolution at the Board of Directors meeting held on
January 26, 2015, the Company took over simultaneous biaxial
stretching machine business from Hitachi Plant Mechanics Co., Ltd.,effective on April 1, 2015.
① Name of counter party and business
Name:
Hitachi Plant Mechanics Co., Ltd.
Business:
Simultaneous biaxial stretchingmachine business② Assets acquired in business transfer
Current assets:¥280 million ($2,330 thousand)Fixed assets:¥101 million ($840 thousand)
Goodwill:¥138 million ($1,148 thousand)Total assets:¥520 million ($4,327 thousand)③ The date of transfer
April 1, 2015(b) Significant borrowings
Based on the resolution at the Board of Directors meeting held on
January 26, 2015, the Company entered into a syndicated loan
agreement of which Sumitomo Mitsui Banking Corporation and
Sumitomo Mitsui Trust Bank, Ltd. are the arrangers on April 7, 2015.
① Usage of funds
Redemption of bond, repayment of borrowings and investment
funds② Lenders
Sumitomo Mitsui Banking Corporation etc.
③ Aggregate amount of borrowings¥ 30,000 million ($249,646 thousand)④ Execution date
April 7, 2015
⑤ Repayment deadline
April 7, 2020:¥5,000 million ($41,608 thousand)April 7, 2022:¥15,000 million ($124,823 thousand)April 7, 2025:¥10,000 million ($83,215 thousand)48⑥ Repayment method
Bullet repayment⑦ Pledged assets
None(C) Business combination
Based on the resolution at the Board of Directors meeting held on April
21, 2015, the Company entered into a stock purchase agreement with astockholder of SM PLATEK Co., LTD. on April 22, 2015. The Company
acquired the shares of SM PLATEK Co., LTD. on May 8, 2015 and SM
PLATEK Co., LTD. has become a subsidiary of the Company.
① The purpose of stock acquisition
Business expansion of Twin Screw Extruder② Name of acquired company
SM PLATEK Co., LTD.
③ Business of acquired company
Production of Twin Screw Extruder④ Date of combination
May 8, 2015
⑤ Total acquisition value of shares acquired
8,000 shares⑥ Acquisition price¥2,635 million ($21,927 thousand)⑦ Costs incurred directly in the acquisition¥114 million ($949 thousand)⑧ Share of voting rights acquired
80%⑨ Procurement method of fund for purchase
Funds on hand(d) Acquisition of treasury stock
Based on the resolution at the Board of Directors meeting held on May
26, 2015, in accordance with Article 156 of the Companies Act appliedby replacing the phrases pursuant to Article 165 Paragraph 3, theCompany has acquired treasury stocks.
① Reason for acquisition
For the implementation of flexible capital policies in response tochanges in the business environment② Type of stock to be acquired
Common stock of the Company③ Total number of shares to be acquired¥5,173,000 shares④ Total acquisition value of shares to be acquired¥2,938 million ($24,449 thousand)⑤ Acquisition date
May 27, 2015
⑥ Acquisition method
Purchase of treasury stock using the off-hours trading system(ToSTNeT-3) of the Tokyo Stock Exchange

Independent Auditor’s Report

Six-Year Summary
Financial Performance (Consolidated)
Consolidated Balance Sheet
Consolidated Statement of Income
Consolidated Statement of Comprehensive Income
Consolidated Statement of Changes in Net Assets
Consolidated Statement of Cash Flows
Notes to Consolidated Financial Statements
Independent Auditor’s Report

49Corporate Directory

Corporate Data

Stock Information
Authorized Shares

1,000,000,000 shares

Trade Name

The Japan Steel Works, Ltd.

Issued and Outstanding Shares

371,463,036 shares

Head Office

Shareholders

27,184

Stock Listings

Tokyo and Nagoya

Gate City Ohsaki-West Tower,
11-1, Osaki 1-chome,
Shinagawa-ku, Tokyo, Japan

Sumitomo Mitsui Trust Bank, Ltd.
4-1, Marunouchi 1-chome, Chiyoda-ku,
Tokyo, JapanFoundation

November 1, 1907

Transfer Agent and Registrar

Paid-in Capital¥19,694 million

Employees

2,219 (Consolidated 5,225)

AuditorErnst & Young ShinNihon LLC
Hibiya Kokusai Bldg.,
2-3, Uchisaiwai-cho 2-chome,
Chiyoda-ku, Tokyo, Japan

Major Shareholders (holding %)The Master Trust Bank of Japan, Ltd. (Trust Account)
Japan Trustee Services Bank, Ltd. (Trust Account)
Mitsui Life Insurance Co., Ltd.
Sumitomo Mitsui Banking Corp.
Mitsui Sumitomo Insurance Co., Ltd.
Juniper
Sumitomo Mitsui Trust Bank, Ltd.
NORTHERN TRUST CO. (AVFC) REHSDOO
CBNY-ORBIS SICAV
Nippon Steel & Sumitomo Metal Corp.

5.32%
4.30%
3.82%
3.39%
2.38%
2.24%
2.20%
1.89%
1.82%
1.76%

(as of March 31, 2015)(as of March 31, 2015)

JSW’s Stock Prices
Stock prices (Yen)Tokyo stock price index (TOPIX) (Points)

800

1,800

600

1,200

400

600

200

0

Trading volumes (Thousands of shares)
40,00020,0000

2014/4

50

5

6

7

8

9

10

11

12

2015/1

2

3

Network
Düsseldorf

Shanghai
GurgaonShenzhen(near Delhi)
Taipei
Hanoi Hong Kong
ManilaBangkokCorona(near Los Angeles)

Detroit

New York

Houston

Kuala Lumpur
Singapore
JakartaDomestic
Head Office
Gate City Ohsaki-West Tower, 11-1, Osaki 1-chome,
Shinagawa-ku, Tokyo 141-0032, Japan
Phone: +81-3-5745-2001 Facsimile: +81-3-5745-2025
Nagoya Office
Mitsui Sumitomo Kaijo Nagoya Shirakawa Bldg. 7F, 9-15,
Sakae 2-chome, Naka-ku, Nagoya-shi, Aichi 460-0008, Japan
Phone: +81-52-222-1271 Facsimile: +81-52-222-1275
Osaka Office
Shinanobashi Mitsui Bldg., 11-7, Utsubohonmachi
1-chome, Nishi-ku, Osaka-shi, Osaka 550-0004, Japan
Phone: +81-6-6446-2480 Facsimile: +81-6-6446-2488

Hiroshima Office6-1, Funakoshi-Minami 1-chome, Aki-ku,
Hiroshima-shi, Hiroshima 736-8602, Japan
Phone: +81-82-822-0991 Facsimile: +81-82-822-0997
Fukuoka Office23-2, Sakuragaoka 1-chome, Kasuga-shi, Fukuoka
816-0872, Japan
Phone: +81-92-582-8111 Facsimile: +81-92-582-8124

Muroran Plant
4, Chatsumachi, Muroran-shi,
Hokkaido 051-8505, Japan
Phone: +81-143-22-0143 Facsimile: +81-143-24-3440
Hiroshima Plant
6-1, Funakoshi-Minami 1-chome, Aki-ku,
Hiroshima-shi, Hiroshima 736-8602, Japan
Phone: +81-82-822-3181 Facsimile: +81-82-285-2038
Yokohama Plant
2-1, Fukuura 2-chome, Kanazawa-ku,
Yokohama-shi, Kanagawa 236-0004, Japan
Phone: +81-45-781-1111 Facsimile: +81-45-787-7200

JSW Plastics Machinery (TAIWAN) Corp.
Head Office
1F., No. 21, Dahu 1st Rd., Gueishan Shiang, Taoyuan,County 33373, Taiwan, R.O.C.
Phone: +886-3-396-2102 Facsimile: +886-3-396-2104
Tainan Branch
15F-7, No.689-78, Xiaodong Rd., Yongkang City,
Tainan County 71052, Taiwan, R.O.C.
Phone: +886-6-311-4192 Facsimile: +886-6-311-4193

NINGBO TONGYONG PLASTIC MACHINERYMANUFACTURING CO., LTD.
No.1 Zhuhan Industrial Zone Hengzhang Village Shiqi
Street Yinzhou District Ningbo 315155, China
Phone: +86-574-8832-6999 Facsimile: +86-574-8821-4801

Fine Crystal (H.K.) Co., Ltd.
Room 903, 9/F Aitken Vanson Centre, 61 Hoi Yuen
Road,Kwun Tong, Kowloon, Hong Kong
Phone: +852-2345-7485 Facsimile: +852-2357-9104

YPK TRADING (HONG KONG) CO., Ltd.
Flat C, 20/F, Young Ya Industrial Bldg., 381-389,
Sha Tsui Road Tsuen Wan, N.T., Hong Kong
Phone: +852-3521-0437 Facsimile:+852-3905-7216

Fine Crystal Precision (S.Z.) Co., Ltd.
No.14, Tong Fu Yu Industrial Zone, Long Tian She Qu, KengZi Ban Shi Chu, Ping Shan New District, Shenzhen, China
Phone: +86-755-8411-6005 Facsimile: +86-755-8411-5009

YPK Machine Trading (Shenzhen) Co., Ltd.
Flat C, 10/F, Laifu Bldg., Fuyong Road, Baoan Shenzhen,
Guangdong, 518103, China
Phone: +86-755-2733-2114 Facsimile: +86-755-2733-2106

Overseas
Japan Steel Works America, Inc.
Head Office
122 East 42nd Street, Suite 3810 New York, NY 10168, USA
Phone: +1-212-490-2630 Facsimile: +1-212-490-2575
Detroit Office24387 Halstead Road Unit B, Farmington Hills,
MI 48335, USA
Phone: +1-248-536-0288 Facsimile: +1-212-490-2575
Houston Office9801 Westheimer Road, Suite 220 Houston, TX 77042, USA
Phone: +1-713-588-1303 Facsimile: +1-713-588-1322
JSW Plastics Machinery, Inc.
Head Office
555 South Promenade Ave., Unit 104 Corona,
CA 92879, USA
Phone: +1-951-898-0934 Facsimile: +1-951-898-1747
Chicago Office
540 Capital Drive, Suite 130, Lake Zurich, IL 60047, USA
Phone: +1-847-550-0704 Facsimile: +1-847-550-0725
Detroit Office24301 Catherine Industrial Drive, Unit 118, Novi,
MI 48375, USA
Phone: +1-248-449-5422 Facsimile: +1-248-449-6018
Atlanta Office1395 S. Marietta Parkway, Bldg. 200, Suite 201,
Marietta, GA 30067, USA
Phone: +1-770-575-0383 Facsimile: +1-678-403-1846
JAPAN STEEL WORKS INDIA PRIVATE LIMITED
611, Time Tower, MG Road, Sector 28, Gurgaon,
Haryana, 122001, India
Phone: +91-124-469-4444 Facsimile: +91-124-469-4433
PT. JSW Plastics Machinery Indonesia
Gajah Building, Unit K Jl. Dr. Saharjo Raya No.111Tebet,
Jakarta Selatan 12810, Indonesia
Phone: +62-21-8370-2536/2537 Facsimile: +62-21-829-8264
JSW IT KOREA CO., LTD.
1805, 6, Samseong-ro 96-gil, Gangnam-gu, Seoul, Korea
Phone: +82-2-2191-5294/5295 Facsimile: +82-2-2191-5296
SM PLATEK CO., LTD.
29, Cheomdan-ro, 181beon-gil, Danwon-gu, Ansan-si,
Kyeonggi-do, Korea
Phone: +82-31-488-3401 Facsimile: +82-31-488-9982
THE JAPAN STEEL WORKS (SINGAPORE) PTE. LTD.
17, Gul Lane, Singapore 629413, Republic of Singapore
Phone: +65-6861-4511 Facsimile: +65-6862-3166
The Japan Steel Works (Thailand) Co.,Ltd.
78/6 JST Building 4th Floor, Moo7, Kingkaew Road,
Rachatewa, Bangplee, Samutprakarn 10540, Thailand
Phone: +66-2-738-5272~6 Facsimile: +66-2-738-5277

JSW Machinery Trading（Shanghai）Co., Ltd.
Head Office
28Ａ, Strength Plaza, No.600-4 Tianshan Road,
Shanghai, 200051, China
Phone: +86-21-5206-7031/7032 Facsimile: +86-21-5206-7033
Beijin Branch
Room 622, B Section, Xingfu Plaza, No.3,
DongSanHuan North Road, Chaoyang District,
Beijing, 100027, China
Phone: +86-010-6590-8967 Facsimile: +86-010-6590-8968
Dalian Branch
Room1055, Development Building, Rong Hui Road,
Area No.9, Dalian Development District,
Dalian Liaoning 116600, China
Phone: +86-411-8761-0339 Facsimile: +86-411-8750-9182
Tianjin Branch
Room 407, Guotou Office Building, 6, Youyi Road,
Hexi District, Tianjin, 300074, China
Phone: +86-22-8837-1113 Facsimile: +86-22-8837-1153
Suzhou Branch
C-219, Dong Chuang Technical Park, No. 216 Jinfeng Rd,
Mudu, Wuzhong District, Suzhou, Jiansu 215101, China
Phone: +86-512-6831-6246 Facsimile: +86-512-6831-6249
JSW Plastics Machinery（H.K.）Co., Ltd.
Room 907, Corporation Park, 11 On Lai Street, Shatin,
New Territories, Hong Kong
Phone: +852-2648-0720 Facsimile:+852-2686-8204

JSW Injection Machine Maintenance（Shenzhen）Co., Ltd.
1F, YiBen Electronic & Business Industrial Park,
NO.1063 Chaguang Road, Xili Town, Nanshan District,
Shenzhen City, Guangdong Province, P.R.C)P.C.:518055
Phone: +86-755-8602-0930 Facsimile: +86-755-8602-0934

JSW Machinery (Ningbo) Co., Ltd.
No.1 Zhuhan Industrial Zone Hengzhang Village Shiqi
Street Yinzhou District Ningbo 315155, China
Phone: +86-574-8823-6758 Facsimile: +86-574-8308-1589

Japan Steel Works Europe GmbHFriedrichstr. 19, 40217 Düsseldorf, Germany
Phone: +49-211-3116660 Facsimile:+49-211-31166640
JSW Plastics Machinery (Philippines) Inc.
Unit 802 Alabang Business Tower 1216 Acacia Avenue,
Madrigal Business Park, Alabang Muntinlupa City Metro
Manila 1771, Philippines
Phone: +63-2-478-2533/2534 Facsimile: +63-2-809-6221
JSW Plastics Machinery Vietnam Ltd.
Head Office
Room 103, Techno-Center Thang Long Industrial Park,
Dong Anh District, Hanoi, Vietnam
Phone: +84-4-3951-6383 Facsimile: +84-4-3951-6384
Ho Chi Minh Office
G-Floor, DC Tower, 111D Ly Chinh thang Ward 7, Dist3,
Ho Chi Minh, Vietnam
Phone: +84-8-3526-1295 Facsimile: +84-8-3526-1296
JSW Plastics Machinery（M）SDN. BHD.
Head Office
D6-5-G Block D6, Pusat Perdagangan Dana, 1 Jalan
PJU 1A/46, 47301 Petaling Jaya, Selangor Darul Ehsan,
Malaysia
Phone: +60-3-7842-6076 Facsimile: +60-3-7842-6078
Johor Office
No.207, Ground Floor Industry Center, Technovation
Park UTM KM20, Jalan Pontian Lama, 81300 Skudai,Johor, Malaysia
Phone: +60-7-554-3637 Facsimile: +60-7-554-3711

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