Note: This is an excerpt translation of the “Yukashoken-Houkokusho” for the convenience of overseas
stakeholders. In cases where any differences occur between the English version and the original Japaneseversion, the Japanese version shall prevail. F-TECH INC. assumes no responsibility for this translation or for
direct, indirect or any other forms of damages arising from the translation.

Consolidated Financial Statements
March 31, 2016

F-TECH INC.
19, Showanuma, Shobu-cho, Kuki City, Saitama, JAPANConsolidated financial statements, etc.
(1) Consolidated financial statementsi)Consolidated balance sheets(Millions of yen)
As of March 31, 2015

As of March 31, 2016

8,983
27,379
5,539
3,766
8,159
420
3,459
57,707

6,831
28,930
4,779
3,942
8,069
368
4,486
57,409AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade
Merchandise and finished goods
Work in process
Raw materials and supplies
Deferred tax assets
Other
Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures, net
Machinery, equipment and vehicles, net
Dies and tools, net
Land
Leased assets, net
Construction in progress
Other, net
Total property, plant and equipment
Intangible assets
SoftwareRight of using facilities
Other
Total intangible assets
Investments and other assets
Investment securities
Long-term loans receivable
Net defined benefit asset
Deferred tax assets
Other
Total investments and other assets
Total non-current assets
Total assets

*1

*1

*2

19,657
24,687
1,844
6,238
826
12,365
1,906
67,527

*1

*1

*2

709
52
19
780
*3

-1-

5,063
276
62
415
863
6,681
74,989132,697

19,64829,985
1,969
6,024
809
13,423
1,549
73,410
608
44
18
671

*3

4,880
261
34
449
862
6,489
80,570137,980

(Millions of yen)
As of March 31, 2015

As of March 31, 2016

16,51819,09911,356
635
825
5,315
109
88
3,843
57,792

18,69022,589
11,576
395
499
4,347
85
99
4,207
62,492

Liabilities
Current liabilities
Notes and accounts payable - trade
Short-term loans payable
Current portion of long-term loans payable
Lease obligations
Income taxes payable
Accounts payable - otherNotes payable - facilities
Provision for directors’ bonuses
Other
Total current liabilities
Non-current liabilities
Bonds payable
Long-term loans payable
Lease obligations
Deferred tax liabilities
Provision for directors’ retirement benefits
Net defined benefit liability
Long-term accounts payable - other
Negative goodwill
Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders’ equity
Capital stock
Capital surplus
Retained earnings
Treasury shares
Total shareholders’ equity
Accumulated other comprehensive income
Valuation difference on available-for-salesecurities
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Non-controlling interests
Total net assets
Total liabilities and net assets

*1

*1

-2-

4,000
21,050
428
2,518
212
243
6
78
9
28,54886,340

*1

*1

4,000
18,597
485
3,369
233
954
693
72
13
28,41990,911

4,790
5,228
15,115(18)
25,1154,790
5,419
17,512(18)
27,703

858

618

4,085
338
5,283
15,95846,356132,697

1,533
(549)
1,602
17,76247,068137,980

ii)

Consolidated statements of income and comprehensive income(Millions of yen)
Fiscal year ended
March 31, 2015

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income
Non-operating income
Interest income
Dividend income
Share of profit of entities accounted for using equity
methodForeign exchange gains
Other
Total non-operating income
Non-operating expenses
Interest expenses
Foreign exchange losses
Other
Total non-operating expenses
Ordinary income
Extraordinary income
Gain on sales of non-current assets
Gain on liquidation of subsidiaries and associates
Insurance income
Total extraordinary income
Extraordinary losses
Loss on sales of non-current assets
Loss on retirement of non-current assets
Loss on valuation of shares of subsidiaries andassociates
Impairment loss
Total extraordinary losses
Profit before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
ProfitProfit attributable toProfit attributable to owners of parent
Profit attributable to non-controlling interests
Other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Remeasurements of defined benefit plans, net of tax
Share of other comprehensive income of entities
accounted for using equity method
Total other comprehensive income*1*2, *3Fiscal year ended
March 31, 2016

175,579
155,028
20,551
14,9865,564*1*2, *3

38
49

55
46

400

437

362
181
1,031

–
192
732

741
–
62
804
5,791

883
449
38
1,371
6,182

*4

31
43
61
136

*4

963
–
–
963

*5

1
145

*5

4
76

*6

*6

48
*7

*8

-3-

196,343
173,714
22,62915,808
6,821

183
378
5,550
2,696
(295)
2,400
3,150

–
*7

110
191
6,953
1,171
1,188
2,360
4,593

1,772
1,377

2,704
1,888

111
3,988
58

(215)
(3,298)
(878)

382

(212)

4,541

*8

(4,605)

(Millions of yen)
Fiscal year ended
March 31, 2015
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners ofparentComprehensive income attributable to noncontrolling interests-4-

Fiscal year ended
March 31, 2016

7,691

(11)

5,137

(707)

2,553

695

iii) Consolidated statements of changes in net assets
Fiscal year ended March 31, 2015
(Millions of yen)
Shareholders’ equity

Balance at beginning ofcurrent period

Capital stock

Capital surplus

4,790

5,228

Retained earnings
13,958Cumulative effects ofchanges in accounting
policies
Restated balance

Treasury shares
(18)

(306)
4,790

5,228

Total shareholders’equity23,958(306)

13,651(18)

23,651

Changes of items during
periodDividends of surplus

(307)

(307)

Profit attributable toowners of parent

1,772

1,772

Purchase of treasury shares(0)Change in the parent
company’s ownershipinterest of subsidiaries due
to transactions with noncontrolling shareholders(0)–

Net changes of items otherthan shareholders’ equity
Total changes of items during
periodBalance at end of current
period

–

–

1,464

(0)

1,464

4,790

5,228

15,115(18)

25,115

Accumulated other comprehensive income
Valuationdifference on
availablefor-salesecurities
Balance at beginning ofcurrent period

619

Foreign currency Remeasurements
translationof defined benefit
adjustment
plans
1,012

284

Total
accumulated
othercomprehensive
income1,916

Non-controllinginterests

13,967

Cumulative effects ofchanges in accounting
policies
Restated balance

Total net assets

39,842
(306)

619

1,012

284

1,916

13,96739,535

Changes of items during
periodDividends of surplus(307)

Profit attributable toowners of parent

1,772

Purchase of treasury shares–

Change in the parent
company’s ownershipinterest of subsidiaries due
to transactions with noncontrolling shareholders–

Net changes of items otherthan shareholders’ equity

239

3,073

53

3,366

1,990

5,357

Total changes of items during
period

239

3,073

53

3,366

1,990

6,821

Balance at end of current
period

858

4,085

338

5,283

15,95846,356-5-

Fiscal year ended March 31, 2016
(Millions of yen)
Shareholders’ equity
Capital stock
Balance at beginning ofcurrent period

Capital surplus

Retained earnings

Treasury shares

Total shareholders’equity5,228

15,115(18)

25,115

4,790

Cumulative effects ofchanges in accounting
policies
Restated balance

–
4,790

5,228

15,115(18)

25,115

Changes of items during
periodDividends of surplus

(307)

(307)

Profit attributable toowners of parent

2,704

2,704

Purchase of treasury shares(0)Change in the parent
company’s ownershipinterest of subsidiaries due
to transactions with noncontrolling shareholders

190

(0)

190

Net changes of items otherthan shareholders’ equity
Total changes of items during
periodBalance at end of current
period

–

190

2,397

(0)

2,587

4,790

5,419

17,512(18)

27,703

Accumulated other comprehensive income

Balance at beginning ofcurrent period

Valuationdifference on
availablefor-salesecurities

Foreigncurrencytranslation
adjustment

858

4,085

Remeasurementsof defined benefit
plans
338

Total
accumulated
othercomprehensive
income5,283

Non-controllinginterests

15,958Cumulative effects ofchanges in accounting
policies
Restated balance

Total net
assets46,356
–

858

4,085

338

5,283

15,95846,356

Changes of items during
periodDividends of surplus(307)

Profit attributable toowners of parent

2,704

Purchase of treasury shares(0)Change in the parent
company’s ownershipinterest of subsidiaries due
to transactions with noncontrolling shareholders

190

Net changes of items otherthan shareholders’ equity(240)(2,552)(888)(3,680)1,804(1,876)

Total changes of items during
period(240)(2,552)(888)(3,680)

1,804

711

Balance at end of current
period

618

1,533

(549)

1,602

17,76247,068-6-

iv)

Consolidated statements of cash flows(Millions of yen)
Fiscal year ended
March 31, 2015

Cash flows from operating activities
Profit before income taxes
Depreciation
Impairment loss
Amortization of goodwill
Loss on valuation of shares of subsidiaries andassociates
Loss (gain) on liquidation of subsidiaries andassociates
Increase (decrease) in assets and liabilities related toretirement benefits
Increase (decrease) in provision for directors’
retirement benefits
Increase (decrease) in provision for directors’
bonusesInterest and dividend income
Interest expenses
Foreign exchange losses (gains)Share of (profit) loss of entities accounted for using
equity method
Loss (gain) on sales of property, plant and equipment
Loss on retirement of property, plant and equipment
Decrease (increase) in notes and accounts receivable- tradeDecrease (increase) in inventories
Increase (decrease) in notes and accounts payable trade
Other, net
SubtotalInterest and dividend income received
Interest expenses paid
Income taxes paid
Net cash provided by (used in) operating activities
Cash flows from investing activities
Purchase of property, plant and equipment
Proceeds from sales of property, plant and equipment
Purchase of intangible assets
Purchase of investment securities
Proceeds from sales of investment securities
Other, net
Net cash provided by (used in) investing activities-7-

Fiscal year ended
March 31, 2016

5,550
8,920
183
(5)

6,953
10,081
110
(5)

48

–

(43)

–

(152)

(145)

8

20

(0)

10

(87)
741
(129)

(102)
883
356

(400)

(437)

(29)
145

(959)
76

(1,045)(3,224)(2,268)

(364)

(965)

3,213

993
11,460120(739)(2,322)
8,518

(543)
15,924137(887)(3,032)
12,140(14,487)
55
(183)
(30)
–
(66)
(14,712)(19,318)
1,757
(211)
(30)
55
(61)
(17,810)(Millions of yen)
Fiscal year ended
March 31, 2015
Cash flows from financing activities
Net increase (decrease) in short-term loans payable
Proceeds from long-term loans payable
Repayments of long-term loans payable
Proceeds from issuance of bonds
Purchase of treasury shares
Proceeds from share issuance to non-controllingshareholders
Proceeds from sales and installment backRepayments of installment payables
Cash dividends paid
Dividends paid to non-controlling interests
Repayments of finance lease obligations
Proceeds from sales and leasebacks
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash
equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period

*1

-8-

Fiscal year ended
March 31, 2016

4,843
9,915
(10,906)
4,000
–

4,438
10,010(11,703)
–
(0)

–

1,651

–
(190)
(306)
(554)
(619)
869
7,052

833
(256)
(307)
(597)
(676)
400
3,792

301

(274)

1,159
7,823
8,983

(2,151)
8,983
6,831

*1

Notes to consolidated financial statements
Uncertainties of entity’s ability to continue as going concern
Not applicable.

-9-Basis of presentation and significant accounting policies for preparation of consolidated financial
statements
1. Basis of presentation of consolidated financial statements
The accompanying consolidated financial statements have been prepared in accordance with the provisions
set forth in the Japanese Financial Instruments and Exchange Act and its related accounting regulations, andin accordance with accounting principles generally accepted in Japan (“Japanese GAAP”), which are
different in certain respects as to the application and disclosure requirements of International Financial
Reporting Standards (“IFRS”).
As permitted by the Japanese Financial Instruments and Exchange Act, amounts less than one million yen
have been omitted. As a result, the totals shown in accompanying financial statements do not necessarily
agree with the sum of the individual amounts.
2.

Disclosure of scope of consolidation(1) Number of consolidated subsidiaries: Sixteen
F&P Mfg., Inc.
F&P America Mfg., Inc.
F.tech Philippines Mfg., Inc.
F.E.G. DE QUERETARO, S.A. DE C.V.
F.tech Zhongshan Inc.
F.tech R&D North America Inc.
F.tech Wuhan Inc.
Fukuda Engineering Co., Ltd.
Kyushu F.tech Inc.
F.tech Mfg. (Thailand) Ltd.
Reterra Co., Ltd.
F.tech R&D Philippines Inc.
F.tech R&D (Guangzhou) Inc.
F&P MFG.DE MEXICO S.A. DE C.V.
Yantai Fuyan Mould Co., Ltd.
PT. F.tech INDONESIA(2) Number of non-consolidated subsidiaries: One
Laguna Greenland Corp.
Reason for exclusion from scope of consolidation
The non-consolidated subsidiaries are small in scale and the amounts of their total assets, net sales,
profit (loss) (for the Company’s equity interest), retained earnings (for the Company’s equity
interest) and other financial statement items do not have a significant impact on the Company’s
consolidated financial statements.

3.

Disclosure about application of equity method(1) Non-consolidated subsidiaries accounted for using the equity method
Not applicable.

- 10 -

(2) Number of associates accounted for using the equity method: FourJohnan Manufacturing Inc.
JOHNAN AMERICA, Inc.
JOHNAN F.TECH (THAILAND) LTD.
JOHNAN DE MEXICO, S.A. DE C.V.
(3) Number of non-consolidated subsidiaries not accounted for using the equity method: One
Laguna Greenland Corp.
Number of associates not accounted for using the equity method: Five
Progressive Tools & Components Pvt Ltd.
JOHNAN UK LTD.
PT. JFD INDONESIA
JOHNAN WUHAN INC.
Johnan Kyushu Manufacturing Inc.
Reason for exclusion from scope of equity method
The non-consolidated subsidiaries and associates that are not accounted for using the equity
method are excluded from the application of the equity method since such exclusion has no
significant impact on the Company’s consolidated financial statements in terms of profit (loss)(for the Company’s equity interest), retained earnings (for the Company’s equity interest) andother financial statement items, and overall they are of minor significance.
(4) The fiscal year ends of certain companies accounted for using the equity method are different fromthe consolidated fiscal year end. In preparing the consolidated financial statements, the Company
uses the financial statements of these companies as of their fiscal year end.
4.

Disclosure about fiscal years, etc. of consolidated subsidiaries
Among the consolidated subsidiaries, the fiscal year end of F.tech Philippines Mfg., Inc. and F.tech R&D
Philippines Inc. is January 31 and the fiscal year end of F.E.G. DE QUERETARO, S.A. DE C.V., F.tech
Zhongshan Inc., F.tech Wuhan Inc., F.tech Mfg. (Thailand) Ltd., Yantai Fuyan Mould Co., Ltd., F.tech
R&D (Guangzhou) Inc., F&P MFG.DE MEXICO S.A. DE C.V. and PT. F.tech INDONESIA is December
31.
In the preparation of the consolidated financial statements, the financial statements as of these dates areused. However, for major transactions that occurred between these fiscal year ends and the consolidated
fiscal year end, necessary adjustments are made in the consolidated financial statements.

5.

Disclosure of accounting policies(1) Accounting policy for measuring significant assetsi)Securities
Available-for-sale securities (other securities)
Securities with a fair value
Stated at fair value based on market prices on the closing date of the accounting period.
(Valuation difference is stated as a component of net assets in the consolidated balance sheets,the cost of securities sold is calculated applying the moving-average method.)
Securities without a fair value
Stated at cost determined by the moving-average method.
ii) Derivatives
Stated at fair value.
- 11 -

iii) Inventories
Inventories of the Company and its domestic consolidated subsidiaries are stated at cost determinedby the average cost method (balance sheet amounts are determined based on the method of writing
down book value in accordance with decreased profitability). Inventories of foreign consolidated
subsidiaries are stated at the lower of cost or market, determined by the first-in, first-out method.
(2) Accounting policy for depreciation of significant assetsi)
Property, plant and equipment (excluding leased assets)
Depreciated by the straight-line method.
However, some domestic consolidated subsidiaries adopt the declining balance method for buildings
acquired on or before March 31, 1998.
ii) Intangible assets (excluding leased assets)
Amortized by the straight-line method.
Software (for internal use) is amortized by the straight-line method over the usable period in the
Company (5 years).
iii) Leased assets
Depreciated by the straight-line method assuming the lease periods as useful lives without residual
value.
For finance lease transactions of the Company and its domestic consolidated subsidiaries that do nottransfer ownership and commenced on or before March 31, 2008, the accounting treatment follows
the method applicable to ordinary rental transactions.
(3) Accounting policy for significant provisionsi)
Allowance for doubtful accounts
To prepare for losses from bad debts, an estimated uncollectible amount is provided either bymaking an estimation using the historical rate of credit loss in the case of general receivables, orbased on individual consideration of collectibility in the case of specific receivables such as highly
doubtful receivables.
ii) Provision for directors’ retirement benefits
At the Company and some subsidiaries, to prepare for the payment of directors’ retirement benefits,
the amount to be paid at the fiscal year end, based on the internal rules for directors’ retirement
benefits, is provided.
iii) Provision for directors’ bonuses
To prepare for the payment of directors’ bonuses, the amount expected to be paid at the current fiscal
year end is provided.
(4) Accounting method of retirement benefitsi)Methods of attributing estimated retirement benefits to accounting periods
When calculating retirement benefit obligations, the benefit formula method is used to attribute
estimated benefit amounts to periods of service until the fiscal year end.
ii) Amortization of actuarial gains and losses
Actuarial gains and losses are amortized beginning in the following fiscal years by the straight-line
method over a period which is equal to or less than the average remaining service period of
employees (mainly 5 years) at the time of occurrence.
(5) Translation basis of significant assets and liabilities denominated in foreign currencies
Receivables and payables denominated in foreign currencies are translated into Japanese yen at the spot
exchange rates prevailing at the consolidated fiscal year end, and the translation adjustment isrecognized in the consolidated statements of income. Assets and liabilities of foreign consolidated
subsidiaries are translated into Japanese yen at the spot exchange rates as of the fiscal year end, and- 12 -

revenues and expenses of foreign consolidated subsidiaries are translated into Japanese yen at the
average exchange rates. Translation adjustments are included in foreign currency translation adjustment
and non-controlling interests in net assets in the consolidated balance sheets.
(6) Accounting policy for goodwill
Goodwill and negative goodwill that were recognized on or before March 31, 2010 have beenamortized by the straight-line method over periods not exceeding 20 years based on the estimatedperiod during which their effect will be recognized for each investment.
(7) Scope of cash and cash equivalents in consolidated statements of cash flows
Cash and cash equivalents consist of cash on hand, demand deposits, and short-term investments thatare readily convertible to known amounts of cash and subject to insignificant risk of change in value
and due within three months from the date of acquisition.
(8) Other significant matters for preparing consolidated financial statements
Accounting policy for consumption taxes
Tax exclusive method is adopted.

- 13 -

Changes in accounting policies
Application of the Revised Accounting Standard for Business Combinations, etc.
The Company and its domestic subsidiaries adopted Revised Accounting Standard for Business
Combinations (ASBJ Statement No.21, September 13, 2013 (hereinafter, “Statement No.21”)), Revised
Accounting Standard for Consolidated Financial Statements (ASBJ Statement No.22, September 13,
2013 (hereinafter, “Statement No.22”)) and Revised Accounting Standard for Business Divestitures(ASBJ Statement No.7, September 13, 2013 (hereinafter, “Statement No.7”)) (together, the “Business
Combination Accounting Standards”), from the current fiscal year. As a result, the Company changed
its accounting policies to recognize in capital surplus the differences arising from the changes in the
Company’s ownership interest of subsidiaries over which the Company continues to maintain control
and to record acquisition related costs as expenses in the fiscal year in which the costs are incurred. In
addition, the Company changed its accounting policy for the reallocation of acquisition costs due to thecompletion following provisional accounting to reflect such reallocation in the consolidated financial
statements for the fiscal year in which the business combination took place. The Company alsochanged the presentation of net income and the term “non-controlling interests” is used instead of“minority interests”. Certain amounts in the previous fiscal year comparative information werereclassified to conform to such changes in the current fiscal year presentation.
In the consolidated statements of cash flows for the current fiscal year, cash flows from acquisition or
disposal of shares of subsidiaries with no changes in the scope of consolidation are included in “Cashflows from financing activities” and cash flows from acquisition related costs for shares of subsidiaries
with changes in the scope of consolidation or costs related to acquisition or disposal of shares ofsubsidiaries with no changes in the scope of consolidation are included in “Cash flows from operating
activities”.
With regard to the application of the Business Combination Accounting Standards, the Company
followed the provisional treatments in article 58-2 (4) of Statement No.21, article 44-5 (4) of Statement
No.22 and article 57-4 (4) of Statement No.7 with application from the beginning of the current fiscal
year prospectively.
As a result, ordinary income and profit before income taxes for the current fiscal year each decreased
by 389 million yen and capital surplus as of the end of the current fiscal year increased by 190 million
yen.
The effects on earnings per share are explained in “Per share information”.

- 14 -

New accounting standards not yet applied
Guidance on Recoverability of Deferred Tax Assets (ASBJ Guidance No. 26, March 28, 2016)(1) Overview
The practical guidance on accounting standards and the practical guidance on auditing standards(portion relating to accounting treatments) for tax effect accounting issued by the Japanese Institute ofCertified Public Accountants (JICPA) are to be transferred to the ASBJ. In this regard, the Guidance on
Recoverability of Deferred Tax Assets still basically follows the framework of the guidance onrecoverability of deferred tax assets, which is principally stipulated in the Auditing Treatment
Regarding Judgment of Recoverability of Deferred Tax Assets outlined in the JICPA Auditing
Committee Report No. 66, where entities are classified into five categories and the amount of deferred
tax assets recorded is estimated according to those categories, but the ASBJ has made necessary
revisions to the category criteria and part of the treatment of the amount of deferred tax assets to berecorded. This guidance provides guidelines for applying the Accounting Standards for Tax EffectAccounting (Business Accounting Council) with regard to recoverability of deferred tax assets.
(2) Application schedule
The guidance is scheduled to be applied from the beginning of the fiscal year starting on and after April
1, 2016.
(3) Effect of application of the Accounting Standard and Guidance
The effect of application of the Guidance on Recoverability of Deferred Tax Assets on the consolidated
financial statements is being estimated as of the filing date of the Annual Securities Report for the fiscal
year ended March 31, 2016.

- 15 -

Notes to consolidated balance sheets*1. Assets pledged and liabilities secured
Assets pledged as collateral are as follows:(Millions of yen)
As of March 31, 2015

As of March 31, 2016

Buildings and structures

183

174

Land

240

240

424

415

As of March 31, 2015

As of March 31, 2016

Current portion of long-term loans payable3030Long-term loans payable

47

17

77

47

Total

Liabilities secured are as follows:(Millions of yen)Total

*2. Accumulated depreciation of property, plant and equipment is as follows:(Millions of yen)
As of March 31, 2015

As of March 31, 2016
94,614

94,784*3. Investment securities relating to non-consolidated subsidiaries and associates are as follows:(Millions of yen)
As of March 31, 2015

As of March 31, 2016

3,316

3,483

Investment securities (stocks)

4.

The Group has entered into overdraft agreements and loan commitment agreements with 15 banks toefficiently raise working capital. Balance of unexecuted borrowings at end of period under these
agreements is shown below:(Millions of yen)
As of March 31, 2015

As of March 31, 2016

Total amount of overdraft facility limit and loan
commitment

39,50440,093

Balance of borrowings outstanding

17,025

21,53922,47918,553Unexecuted balance- 16 -

Notes to consolidated statements of income and comprehensive income*1. The ending balance of inventories represents the amount after write-down of the book value inaccordance with the decline in profitability and the following loss (reversal) on valuation of inventories
is included in cost of sales.
(Millions of yen)
Fiscal year ended March 31, 2015

Fiscal year ended March 31, 2016
(13)

33

*2. The major items of selling, general and administrative expenses are as follows:(Millions of yen)
Fiscal year ended
March 31, 2015

Fiscal year ended
March 31, 2016

Haulage expenses

1,569

1,917

Salaries, allowance and bonuses

4,520

4,625

Retirement benefit costs

167

129

Provision for directors’ bonuses

86

95

Provision for directors’ retirement benefits

18

20

Depreciation

607

640

3,356

3,293

Research and development expenses*3. Research and development expenses included in general and administrative expenses andmanufacturing cost for the current period(Millions of yen)
Fiscal year ended
March 31, 2015

Fiscal year ended
March 31, 2016
3,356

3,293

*4. The breakdown of gain on sales of non-current assets is as follows:(Millions of yen)
Fiscal year ended
March 31, 2015

Fiscal year ended
March 31, 2016

Buildings and structures8

132

Machinery, equipment and vehicles

16

23

Land

–

806

Other

5

1

31

963

Total

*5. The breakdown of loss on sales of non-current assets is as follows:(Millions of yen)
Fiscal year ended
March 31, 2015

Fiscal year ended
March 31, 2016

Machinery, equipment and vehicles

1

3

Other

0

0

1

4

Total

- 17 -

*6. The breakdown of loss on retirement of non-current assets is as follows:(Millions of yen)
Fiscal year ended
March 31, 2015

Fiscal year ended
March 31, 2016

Buildings and structures

32

30

Machinery, equipment and vehicles

103

44

Dies and tools

6

0

Other

3

1

145

76

Total

*7. Impairment loss
For the fiscal year ended March 31, 2015, the Group recorded impairment loss on the following asset
groups:Location

Use

Type

AmountKumagaya City, Saitama

Idle assets

Land

111 million yen

Ontario, Canada

Auto parts
Production-related facilities

Machinery and equipment

71 million yen

In principle, the Group’s business assets are grouped by the categories for managerial accounting and theGroup’s idle assets are grouped by each asset.
The carrying amount of land as idle assets was reduced to the recoverable amount, and the reduced
amount is recorded as impairment loss in extraordinary losses.
The recoverable amount was measured at the net selling price that was assessed by appraisal value.
As a result of reviews of production plans for some automobile models at customers and substantial
fluctuations in demand in line with changes in consumer needs, the carrying amount of the auto parts
production-related facilities was reduced to the recoverable amount and the reduced amount is recorded as
impairment loss in extraordinary losses.
The recoverable amounts of these assets were measured based on the values in use, and the values in use
were calculated based on future cash flows. Discount rates were not taken into consideration as the
expected periods of use are short and the quantitative impacts are insignificant.
For the fiscal year ended March 31, 2016, the Group recorded impairment loss on the following asset
groups:Location
Karawang, Indonesia

Use
Idle assets

TypeConstruction in progress

Amount
110 million yen

The Group’s idle assets are grouped by each asset.
The carrying amount of construction in progress as idle assets was reduced to the recoverable amount, andthe reduced amount is recorded as impairment loss in extraordinary losses.
The recoverable amount was measured based on the value in use and the carrying amount was fully
reduced to the full amount with the recoverable amount deemed as zero.

- 18 -

*8. Notes regarding reclassification adjustments and tax effects relating to other comprehensive income(Millions of yen)
Fiscal year ended
March 31, 2015

Fiscal year ended
March 31, 2016

Valuation difference on available-for-sale securities
Increase (decrease) during the period

126

(326)

Tax effect amount

(14)

110

Valuation difference on available-for-sale securities

111

(215)

3,988

(3,298)

Increase (decrease) during the period

85

(807)

Reclassification adjustments

(85)

(80)

Pre-adjustment of tax effect

0

(887)

Tax effect amount58

9

Remeasurements of defined benefit plans, net of tax

58

(878)

382

(212)

4,541

(4,605)

Foreign currency translation adjustment
Increase (decrease) during the period
Remeasurements of defined benefit plans, net of tax

Share of other comprehensive income of entities
accounted for using equity method
Increase (decrease) during the period
Total other comprehensive income- 19 -

Notes to consolidated statements of changes in net assets
Fiscal year ended March 31, 2015
1. Class and total number of issued shares and class and number of treasury shares(Thousands of shares)
Number of shares asof beginning ofcurrent fiscal year

Number of shares
increased in current
fiscal year

Number of shares
decreased in current
fiscal year

Number of shares asof end of current
fiscal year

Common shares

15,390––15,390Total

15,390––15,390Common shares

32

0

–

33

Total

32

0

–

33

Issued shares

Treasury shares(Note)

2.

The breakdown of the increase in number of treasury shares is as follows:• Increase in portion of treasury shares (shares of the Company) owned by an associate accounted for using theequity method attributable to the Company due to change in equity of the associate accounted for using the equity
method: 840 shares

Dividends(1) Cash dividends paid

Resolution

Class of shares

Total cash
dividend(Millions of yen)

Source ofdividends

Dividend pershare (Yen)Record date

Effective date

Annual General
Meeting of
Shareholders heldon June 19, 2014

Common shares

153

Retained earnings

10

March 31, 2014

June 20, 2014

Board of Directors’
meeting held on
November 4, 2014

Common shares

153

Retained earnings

10

September 30,
2014

December 1, 2014

(2) Dividends whose record dates are in the current fiscal year but whose effective dates fall in thenext fiscal year
Resolution

Class of shares

Total cash
dividend(Millions of yen)

Annual General
Meeting of
Shareholders heldon June 19, 2015

Common shares

153

Source ofdividends

Retained earnings- 20 -

Dividend pershare (Yen)10

Record date

Effective date

March 31, 2015

June 22, 2015

Fiscal year ended March 31, 2016
1. Class and total number of issued shares and class and number of treasury shares(Thousands of shares)
Number of shares asof beginning ofcurrent fiscal year

Number of shares
increased in current
fiscal year

Number of shares
decreased in current
fiscal year

Number of shares asof end of current
fiscal year

Common shares

15,390––15,390Total

15,390––15,390Common shares

33

0

–

33

Total

33

0

–

33

Issued shares

Treasury shares(Note)

2.

The breakdown of the increase in number of treasury shares is as follows:• Increase from the purchase of treasury shares: 47 shares

Dividends(1) Cash dividends paid

Resolution

Class of shares

Total cash
dividend(Millions of yen)

Source ofdividends

Dividend pershare (Yen)Record date

Effective date

Annual General
Meeting of
Shareholders heldon June 19, 2015

Common shares

153

Retained earnings

10

March 31, 2015

June 22, 2015

Board of Directors’
meeting held on
November 5, 2015

Common shares

153

Retained earnings

10

September 30,
2015

December 1, 2015

(2) Dividends whose record dates are in the current fiscal year but whose effective dates fall in thenext fiscal year
Resolution

Class of shares

Total cash
dividend(Millions of yen)

Annual General
Meeting of
Shareholders heldon June 21, 2016

Common shares

153

Source ofdividends

Retained earnings- 21 -

Dividend pershare (Yen)10

Record date

Effective date

March 31, 2016

June 22, 2016

Notes to consolidated statements of cash flows*1. Reconciliation of ending balance of cash and cash equivalents with account balances per balance sheet(Millions of yen)
Fiscal year ended
March 31, 2015

Fiscal year ended
March 31, 2016

Cash and deposits

8,983

6,831

Cash and cash equivalents

8,983

6,831

2.

Description of significant transactions not requiring use of cash or cash equivalents(1) Assets and liabilities associated with finance lease transactions(Millions of yen)
Fiscal year ended
March 31, 2015

Assets and liabilities associated with finance leasetransactions

1,112- 22 -

Fiscal year ended
March 31, 2016517

Notes on leases
As lessee
1. Finance lease transactions
Finance lease transactions that do not transfer ownershipi) Leased assets
Property, plant and equipment
Production facilities:
Machinery and equipmentii) Depreciation of leased assets
Depreciation of leased assets is as stated in “5. Disclosure of accounting policies, (2) Accounting
policy for depreciation of significant assets” under “Basis of presentation and significant accounting
policies for preparation of consolidated financial statements.”
For finance lease transactions that do not transfer ownership and commenced on or before March 31,
2008, the accounting treatment follows the method applicable to ordinary rental transactions. The
detail is as shown below:(1) Acquisition cost equivalent, accumulated depreciation equivalent and net book value equivalentat end of period(Millions of yen)
As of March 31, 2015
Acquisition costequivalent
Machinery, equipment and vehicles

Accumulated
depreciation equivalent

Net book value
equivalent at end of
period

1,093

1,086

6

Other

14

14

–

Total

1,107

1,101

6
(Millions of yen)

As of March 31, 2016
Acquisition costequivalent

Accumulated
depreciation equivalent

Net book value
equivalent at end of
periodMachinery, equipment and vehicles

82

82

–

Other

–

–

–

Total

82

82

–

(Note)

The acquisition cost equivalent includes the imputed interest expense portion, since the outstanding balance of futurelease payments at end of period represented a small proportion of property, plant and equipment.

(2) Outstanding balance of future lease payments at end of period, etc.
(Millions of yen)
As of March 31, 2015

As of March 31, 2016

Outstanding balance of future lease payments
at end of period
Due within one year6–

Due over one year

–

–

6

–

Total
(Note)The outstanding balance of future lease payments at end of period includes the imputed interest expense portion,
since the outstanding balance of future lease payments at end of period represented a small proportion of property,
plant and equipment.

- 23 -

(3) Lease fees paid and depreciation equivalent during the period(Millions of yen)
Fiscal year ended
March 31, 2015

Fiscal year ended
March 31, 2016

Lease fees paid

95

6

Depreciation equivalent

956(4) Calculation method for depreciation equivalent
The straight-line method is used assuming the lease periods as useful lives without residual value.
2.

Operating lease transactions
Future lease payments under non-cancellable leases of operating lease transactions(Millions of yen)
As of March 31, 2015

As of March 31, 2016

Due within one year

233

161

Due over one year

151

170

Total

384

332

- 24 -

Notes on financial instruments
1. Overview of financial instruments(1) Policy on treatment of financial instruments
The Group raises necessary funds (mainly loans from banks and issuance of corporate bonds)
according to the capital expenditure plan to conduct the auto parts related business consisting of the
manufacture and sale of auto parts and dies, equipment, tools, etc. for these parts. The Group utilizes
derivatives to hedge its exposure to risks described below and adheres to a policy of not conducting
derivative transactions for speculative purposes.
(2) Financial instruments and related risks
Notes and accounts receivable - trade that are operating receivables are exposed to the credit risk ofcustomers. Although operating receivables denominated in foreign currencies, which arise fromintercompany transactions due to the globally developed businesses, are exposed to the risk offluctuations in exchange rates, forward exchange contracts are used to hedge this risk. Investment
securities are principally stocks related to business activities or capital alliances with business partners
and exposed to the risk of fluctuations in market prices. Long-term loans receivable are intercompany
loans and exposed to the credit risk of the borrowers.
Notes and accounts payable - trade that are operating payable and accounts payable - other are due
within one year. Some of these payables are denominated in foreign currencies due to import ofmaterials, etc. and exposed to the risk of fluctuations in exchange rates, however they are within therange of the outstanding balance of accounts payable - trade denominated in the same foreign currency
on a permanent basis. Loans payable, bonds payable and lease obligations on finance leases are
principally for procuring funds needed for capital expenditure and due for repayment within up to five
years after the fiscal year end.
Derivative transaction is forward exchange contracts to hedge the foreign currency risk on operatingreceivables arising from intercompany transactions.
(3) Risk management system for financial instrumentsi)Management of credit risk (customers’ default risk)
For operating receivables, the Company conducts maturity management and balance management by
counterparty through periodical monitoring of major business partners’ status in the operation
division and the management division of each department in accordance with the internal rules onsales management, and endeavors to quickly determine and mitigate any concern on the collection ofreceivables due to deteriorated financial conditions. Consolidated subsidiaries also manage operatingreceivables in the same manner in accordance with the Company’s internal rules on sales
management. For long-term loans receivable, the Company periodically monitors the status ofborrowers to quickly determine and mitigate any concern on the collection of loans due to theirdeteriorated financial condition and other factors.
ii) Management of market risk (fluctuation risk of foreign currency exchange and interest rates, etc.)
The Company and some consolidated subsidiaries utilize forward exchange contracts in principle tohedge the foreign currency exchange rate fluctuation risk by currency on a monthly basis for
operating receivables arising from intercompany transactions. Depending on the status of foreignexchange rates, forward exchange contracts are entered into for a maximum of 12 months in relation
to operating receivables denominated in foreign currencies that are certainly expected to arise fromforecast royalty transactions.
For investment securities, the Company periodically assesses market value and financial conditionsof issuers (business partners).
For derivative transactions, the Company assesses the positions to conduct hedge transactions on amonthly basis under the hedge policy of the funds and foreign exchange conference, in accordancewith the internal rules on foreign exchange risks which stipulate transaction authority, limit amounts
and other matters. Based on this assessment, the accounting department conducts transactions, andrecords information on the transaction and checks balances with counterparties.
- 25 -

iii) Management of liquidity risk associated with fund raising (risk of inability to pay on due date)
The Company’s accounting department prepares and updates financial plans annually and monthly
based on reports from each department.
(4) Supplementary explanation concerning fair values of financial instruments
Fair values of financial instruments comprise of values based on market prices and reasonably
measured values where market prices are unavailable. As several variable factors are incorporated in
calculating the relevant fair value, the resulting amount may vary depending on the different
preconditions employed.

- 26 -

2.

Fair values of financial instruments
Carrying amounts on the consolidated balance sheets, fair values and differences therebetween of thefinancial instruments are shown below. However, financial instruments whose fair values are deemed to
be extremely difficult to determine are not included therein (Please refer to Note 2 below).
As of March 31, 2015
(Millions of yen)
Carrying amount on
the consolidatedbalance sheet

Fair value

Difference(1) Cash and deposits

8,983

8,983

–

(2) Notes and accounts receivable - trade27,37927,379

–

1,464

1,464

–

276

276

0

(5) Notes and accounts payable - trade

16,51816,518–(6) Short-term loans payable

19,09919,099–(7) Bonds payable

4,000

4,164

164

(8) Long-term loans payable (*1)

32,40632,46256(9) Lease obligations (*2)

1,063

1,080

17

(0)

(0)

–

(3) Investment securities
Available-for-sale securities (other securities)(4) Long-term loans receivable(10) Derivatives (*3)(*1) Current portion of long-term loans payable in current liabilities are included.
(*2) The total amount of lease obligations in current liabilities and lease obligations in non-current liabilities is presented.
(*3) Claims and obligations arising from derivative transactions are presented on a net basis. Net obligations are indicated inparentheses.

As of March 31, 2016
(Millions of yen)
Carrying amount on
the consolidatedbalance sheet

Fair value

Difference(1) Cash and deposits

6,831

6,831

–

(2) Notes and accounts receivable - trade28,93028,930

–

1,170

1,170

–

261

261

0

(5) Notes and accounts payable - trade

18,69018,690–(6) Accounts payable - other

4,347

4,347

–

(7) Short-term loans payable

22,58922,589–(8) Bonds payable

4,000

4,150

150

(9) Long-term loans payable (*1)

30,17430,22147(10) Lease obligations (*2)

880

898

17

(11) Derivatives (*3)

43

43

–

(3) Investment securities
Available-for-sale securities (other securities)(4) Long-term loans receivable(*1) Current portion of long-term loans payable in current liabilities are included.
(*2) The total amount of lease obligations in current liabilities and lease obligations in non-current liabilities is presented.
(*3) Claims and obligations arising from derivative transactions are presented on a net basis.

- 27 -

(Notes) 1. Measurement method of fair values of financial instruments and matters concerning securities and derivatives(1) Cash and deposits and (2) Notes and accounts receivable - trade
The fair value of these assets is based on the book value, given that the fair value is almost the same as thebook value, as they are settled in a short period.
(3) Investment securities
The fair value of stocks with fair value is based on the quoted market price.
(4) Long-term loans receivable
The fair value of long-term loans receivable is calculated based on the present value of future cash flows(principal and interest) discounted using the assumed interest rate of similar new borrowings.
(5) Notes and accounts payable - trade, (6) Accounts payable - other and (7) Short-term loans payable
The fair value of these liabilities is based on the book value, given that the fair value is almost the same as thebook value, as they are settled in a short period.
(8) Bonds payable
The fair value of bonds payable issued by the Company is calculated based on market prices.
(9) Long-term loans payable and (10) Lease obligations
The fair value of long-term loans payable with fixed interest rates and lease obligations is calculated bydiscounting the total amount of principal and interest at the assumed interest rate of similar new borrowings
and lease contracts. Since long-term loans payable with floating interest rates reflect market interest rates
within a short period, the fair value is approximately the same as the book value and thus presented at the bookvalue.
(11) Derivatives
The fair value of derivatives is based on the prices presented by the financial institution with which the contract
has been made. These derivatives are forward exchange contracts to hedge the exchange rate fluctuation risk on
operating receivables denominated in foreign currencies.
2. Financial instruments whose fair values are deemed to be extremely difficult to determine(Millions of yen)Classification

As of March 31, 2015

As of March 31, 2016

3,316

3,483

281

226

3,598

3,710

Non-listed shares
Shares of subsidiaries and associates
Other
Total

The above are not included in “(3) Investment securities” above because their market prices are not available andthe future cash flows cannot be estimated reliably, and thus their fair values are deemed extremely difficult todetermine.
3. Redemption schedule for monetary receivables after the fiscal year end
As of March 31, 2015
(Millions of yen)
Due within one
year

Due after one
Due after five
year through five years through ten
years
years

Due over ten
years

Cash and deposits

8,983

–

–

–

Notes and accounts receivable - trade27,379

–

–

–

–

–

77

199

36,362–

77

199

Long-term loans receivable
Total- 28 -

As of March 31, 2016
(Millions of yen)
Due within one
year

Due after one
Due after five
year through five years through ten
years
years

Due over ten
years

Cash and deposits

6,831

–

–

–

Notes and accounts receivable - trade28,930

–

–

–

–

–

72

188

35,762–

72

188

Long-term loans receivable
Total

4. Repayment schedule for bonds payable, long-term loans payable, lease obligations and other interest-bearing debts
As of March 31, 2015
(Millions of yen)
Due within one
year
Short-term loans payable
Bonds payable
Long-term loans payable
Lease obligations
Total

Due after one
Due after five
year through five years through ten
years
years

Due over ten
years

19,099

–

–

–

–

4,000

–

–

11,356

21,050

–

–

635

422

6

–

31,09025,472

6–

As of March 31, 2016
(Millions of yen)
Due within one
year
Short-term loans payable
Bonds payable
Long-term loans payable
Lease obligations
Total

Due after one
Due after five
year through five years through ten
years
years

Due over ten
years

22,589

–

–

–

–

4,000

–

–

11,576

18,531

65

–

395

484

1

–

34,56223,01566–- 29 -

Notes on securities
1. Available-for-sale securities (other securities)
As of March 31, 2015
(Millions of yen)Type

Items whose carrying
amount on the consolidatedbalance sheet exceeds
original purchase price
Items whose carrying
amount on the consolidatedbalance sheet does notexceed original purchase
price

Carrying amount on
the consolidatedbalance sheet

Difference(1) Shares

1,464

579

885

(2) Bonds–––(3) Other

–

–

–

1,464

579

885

(1) Shares

–

–

–

(2) Bonds–––(3) Other

–

–

–

–

–

–

1,464

579

885

Subtotal

Subtotal

Total(Note)

Original purchasepriceNon-listed shares (carrying amount on the consolidated balance sheet: 281 million yen) are not included in“Available-for-sale securities (other securities)” above because their market prices are not available and their fairvalues are deemed extremely difficult to determine.

As of March 31, 2016
(Millions of yen)Type

Items whose carrying
amount on the consolidatedbalance sheet exceeds
original purchase price
Items whose carrying
amount on the consolidatedbalance sheet does notexceed original purchase
price

Carrying amount on
the consolidatedbalance sheet

Difference(1) Shares

1,156

591

564

(2) Bonds–––(3) Other

–

–

–

1,156

591

564

(1) Shares

13

18

(4)

(2) Bonds–––(3) Other

–

–

–

13

18

(4)

1,170

609

560

Subtotal

Subtotal

Total(Note)

Original purchasepriceNon-listed shares (carrying amount on the consolidated balance sheet: 226 million yen) are not included in“Available-for-sale securities (other securities)” above because their market prices are not available and their fairvalues are deemed extremely difficult to determine.

- 30 -

2.

Available-for-sale securities (other securities) sold
As of March 31, 2015
(Millions of yen)Type

Amount soldTotal gain on sales

Total loss on sales(1) Shares

–

–

–

(2) Bonds–––(3) Other

–

–

–

Total

–

–

–

As of March 31, 2016
(Millions of yen)Type

Amount soldTotal gain on sales

Total loss on sales(1) Shares

55

–

–

(2) Bonds–––(3) Other

–

–

–

Total

55

–

–

- 31 -

Notes on derivatives
1. Derivative transactions to which hedge accounting is not applied(1) Foreign currency
As of March 31, 2015
(Millions of yen)
As of March 31, 2015
Classification

Type of transaction

Contract/notionalamountPortion ofcontract/notionalamount over one
year

Fair value

Valuation gain
(loss)

Forward exchange
contracts
Transactions otherthan market
transactions

Sell
U.S. dollar

721

–

0

0

Canadian dollar

190

–

0

0

Thai Baht

57

–

(1)

(1)

969

–

(0)

(0)

Total
(Note)

Measurement method for fair values
Fair values are calculated based on price presented by counterparty financial institutions, etc.

As of March 31, 2016
(Millions of yen)
As of March 31, 2016
Classification

Type of transaction

Contract/notionalamountPortion ofcontract/notionalamount over one
year

Fair value

Valuation gain
(loss)

Forward exchange
contracts
Transactions otherthan market
transactions

Sell
U.S. dollar

1,057

–

43

43

Canadian dollar

–

–

–

–

Thai Baht

60

–

(0)

(0)

1,118

–

43

43

Total
(Note)

Measurement method for fair values
Fair values are calculated based on price presented by counterparty financial institutions, etc.

(2) Interest rate
As of March 31, 2015
Not applicable.
As of March 31, 2016
Not applicable.

- 32 -

2.

Derivative transactions to which hedge accounting is applied(1) Foreign currency
As of March 31, 2015
Not applicable.
As of March 31, 2016
Not applicable.
(2) Interest rate
As of March 31, 2015
Not applicable.
As of March 31, 2016
Not applicable.

- 33 -

Notes on retirement benefits
1. Summary of retirement benefit plans adopted
The Company has established an employees’ pension fund plan and a constitution-based defined
benefit corporate pension plan. Some domestic consolidated subsidiaries have established constitutionbased defined benefit corporate pension plans and lump-sum retirement benefit plans. Some foreign
consolidated subsidiaries have established defined benefit plans or the defined contribution plans.
Some consolidated subsidiaries apply simplified methods in calculating retirement benefit obligations.
As the employees’ pension fund plan, the Company has participated in the Social Welfare Pension Fundof Nippon Sheet Metal Presswork (multi-employer pension plan) since 1970. Because the Company
cannot reasonably calculate the amount of plan assets in terms of its contributions, retirement benefit
obligations for this plan are accounted for in the same manner as a defined contribution plan.
2.

Defined benefit plans(1) Reconciliation between the balance at beginning of period and the balance at end of period ofretirement benefit obligations (excluding plans to which the simplified method was applied)(Millions of yen)
Fiscal year ended
March 31, 2015

Fiscal year ended
March 31, 2016

4,719

5,296

288

–

Restated balance

5,008

5,296

Service cost

368

373

Interest cost

60

62

Actuarial loss (gain)

28

676

(195)

(183)

25

(25)

5,296

6,199

Balance at beginning of period
Cumulative effects of changes in accounting policies

Benefits paid
Other
Balance at end of period(2) Reconciliation between the balance at beginning of period and the balance at end of period of plan
assets (excluding plans to which the simplified method was applied)(Millions of yen)
Fiscal year ended
March 31, 2015

Fiscal year ended
March 31, 2016

4,804

5,209

Expected return on plan assets

100

103

Actuarial loss (gain)

116

(103)

Contributions paid by the employer

351

358

Benefits paid

(180)

(181)

17

(8)

5,209

5,376

Balance at beginning of period

Other
Balance at end of period- 34 -

(3) Reconciliation between the balance at beginning of period and the balance at end of period of net
defined benefit liability for plans to which the simplified method was applied(Millions of yen)
Fiscal year ended
March 31, 2015

Fiscal year ended
March 31, 2016

139

93

Benefit costs

(29)

22

Benefits paid

(7)

(8)

Contributions paid by the employer

(8)

(10)

93

96

Balance at beginning of period

Balance at end of period(4) Reconciliation between the balances at end of period of retirement benefit obligations and plan
assets, and net defined benefit liability and net defined benefit asset recorded in the consolidatedbalance sheet(Millions of yen)
As of March 31, 2015

As of March 31, 2016

Funded retirement benefit obligations

5,341

6,250

Plan assets(5,299)(5,476)

42773

Unfunded retirement benefit obligations

138

146

Total net liability (asset) for retirement benefits

180

919

Net defined benefit liability

243

954

Net defined benefit asset

(62)

(34)

Total net liability (asset) for retirement benefits

180

919

Fiscal year ended
March 31, 2015

Fiscal year ended
March 31, 2016

Service cost

368

373

Interest cost

60

62

Expected return on plan assets

(100)

(103)

Net actuarial loss amortization

(87)

(107)

Retirement benefit costs calculated using simplified
methods

(29)

22

212

247

(Note)

Includes plans to which simplified methods were applied.

(5) Retirement benefit costs(Millions of yen)

Total

- 35 -

(6) Remeasurements of defined benefit plans, net of tax
The breakdown of the items recorded in remeasurements of defined benefit plans, net of tax (before
deducting tax effect) in the consolidated statement of income and comprehensive income is asfollows:(Millions of yen)
Fiscal year ended
March 31, 2015

Fiscal year ended
March 31, 2016

0

(887)

0

(887)

Actuarial gains and losses
Total(7) Remeasurements of defined benefit plans
The breakdown of the items recorded in remeasurements of defined benefit plans (before deducting
tax effect) in accumulated other comprehensive income in the consolidated balance sheet is asfollows:(Millions of yen)
Fiscal year ended
March 31, 2015

Fiscal year ended
March 31, 2016

336

(551)

336

(551)

Actuarial gains and losses that are yet to be recognized
Total(8) Plan assetsi)
Breakdown of major categories of plan assets
The ratio of major categories to total plan assets is as follows:
As of March 31, 2015
Bonds

28.7%

26.1%

Equity securities

12.2

10.4

General account

56.1

57.1

Other

3.0

6.4

100.0

100.0

Total

ii)

As of March 31, 2016

Method to determine rate of expected long-term return
The rate of expected long-term return is determined in consideration of the present and expectedasset mix and the present and expected long-term return rate on the various assets that comprisethe plan assets.

(9) Actuarial assumptions
Major bases for actuarial calculations at end of period
As of March 31, 2015

As of March 31, 2016

Discount rate

1.0%

0.1%

Long-term expected rate of return

2.0%

2.0%

- 36 -

3.

Defined contribution plan
The required contribution amount to defined contribution plans (including employees’ pension fundplan in multi-employer contributory pension plans which is accounted for in the same manner) was 344
million yen in the previous fiscal year and 387 million yen in the current fiscal year.

4.

Multi-employer contributory pension plans
The required contribution amount to the multi-employer contributory pension plan-type employees’
pension fund plan, which is accounted for in the same manner as a defined contribution plan, was 187
million yen in the previous fiscal year and 189 million yen in the current fiscal year.
(1) Latest funding position of the multi-employer contributory pension plans(Millions of yen)Previous fiscal year
Current fiscal year
(As of March 31, 2014) (As of March 31, 2015)
Amount of plan assets

69,61976,331

Total of actuarial benefit obligations for the purpose ofpension financing calculation and minimum reserve

82,79475,032Difference(13,175)

1,299(2) Ratio of the Group’s members to the entire planPrevious fiscal year 6.2% (As of March 31, 2014)
Current fiscal year 6.9% (As of March 31, 2015)(3) Supplementary explanation
The main reasons for the difference in (1) above, are 10,992 million yen of past service liabilities forthe purpose of pension financing calculation and 2,183 million yen of deficiency carried-forward in
the previous fiscal year, and 1,299 million yen of surplus carried-forward in the current fiscal year.
Under the plan, past service liabilities are amortized over 20 years using the equal repayment method.
The ratio in (2) above is different from the ratio of the Group’s actual contributions.

Notes on share options, etc.
Not applicable.

- 37 -

Notes on tax effect accounting
1. Breakdown of deferred tax assets and deferred tax liabilities by major component
As of March 31, 2015

(Millions of yen)
As of March 31, 2016

Deferred tax assets
Tax loss carry forwards

3,043

2,669

Elimination of unrealized gains on non-current assets

1,073

1,213

Impairment loss

771

575

Excess depreciation

363

574

Accrued bonuses

298

314

Loss on valuation of inventories

211

169

Net defined benefit liability

49

119

Other

362

339

Deferred tax assets subtotal

6,175

5,976

Valuation allowance(5,237)(5,068)937

907

Depreciation (foreign consolidated subsidiaries)(2,336)(3,301)

Valuation difference on available-for-sale securities

(280)

(170)

Net defined benefit asset

(19)

(9)

Other

(56)

(20)

Total deferred tax liabilities(2,692)(3,502)

Net deferred tax assets (liabilities)(1,755)(2,595)

Total deferred tax assets
Deferred tax liabilities(Note)Net deferred tax liabilities as of March 31, 2015 and March 31, 2016 are included in the following items in the
consolidated balance sheets.
(Millions of yen)
As of March 31, 2015
As of March 31, 2016

Current assets – Deferred tax assets

420

368

Non-current assets – Deferred tax assets

415

449

Current liabilities – Other

(72)

(43)

(2,518)(3,369)Non-current liabilities – Deferred tax liabilities- 38 -

2.

Reconciliation of significant difference between statutory income tax rate and effective income tax rate
after application of tax effect accounting
As of March 31, 2015

As of March 31, 2016

35.0%

32.5%

Tax rate differences in foreign consolidated subsidiaries

(6.6)

(5.0)

Foreign withholding tax

7.7

3.6

Share of profit (loss) of entities accounted for using equity
method

(2.6)

(2.0)

Change in valuation allowance

8.7

1.6

Income taxes for prior periods–

1.1

Expenses not deductible permanently such as entertainment
expenses

0.5

1.1

Inhabitant per capita tax

0.3

0.2

Other

0.2

0.8

Effective income tax rate after application of tax effectaccounting

43.2

33.9

Statutory income tax rate
(Adjustments)

3.

Revision to deferred tax assets and deferred tax liabilities due to change in income tax rates
The Act for Partial Amendment of the Income Tax Act, etc. (Act No. 15, 2016) and the Act on Partial
Amendment, etc. of the Local Tax Act, etc. (Act No. 13, 2016) were enacted in the Diet session on March
29, 2016. With this amendment, the corporate income tax rates, etc. are to be reduced effective from thefiscal year beginning on or after April 1, 2016. In conjunction with this, the statutory income tax rates
utilized for the measurement of deferred tax assets and liabilities expected to be settled or realized arechanged from 31.7% to 30.3% for the fiscal years beginning on April 1, 2016 and April 1, 2017, and to
30.1% for the fiscal years beginning on or after April 1, 2018.
The impact of these changes in tax rates is immaterial.

- 39 -

Notes on business combinations
Transactions under common control, etc.
1. Subsidiaries’ capital increase through third-party allotment(1) Outline of transactioni)Name of companies involved in business combination and nature of their business
Name of companies involved in business combination:
F.tech Zhongshan Inc. and F.tech Wuhan Inc. (Consolidated subsidiaries of the Company)
Nature of business:
Manufacture and sale of auto partsii) Date of business combination
June 30, 2015 (deemed sale date)iii) Legal form of business combination
Capital increase through third-party allotmentiv) Name of companies after business combination
No change was made.
v) Other items regarding outline of transaction
The capital increase through third-party allotment to non-controlling shareholders was mademainly for the purpose of stabilizing and strengthening the management of the Group.
(2) Outline of accounting treatment applied
The transaction was accounted for as transactions with non-controlling shareholders categorizedunder transactions under common control, etc. in accordance with the Accounting Standard forBusiness Combinations (ASBJ Statement No. 21, September 13, 2013) and the Guidance on
Accounting Standard for Business Combinations and Accounting Standard for Business
Divestitures (ASBJ Guidance No. 10, September 13, 2013).
(3) Matters concerning change in the parent company’s ownership interest of subsidiaries due totransactions with non-controlling shareholdersi)
Major factor of change in capital surplus
The change in capital surplus is attributable to the difference between the amount of capitalincrease through third-party allotment to non-controlling shareholders and the amount of
increase in non-controlling interests.
ii) Amount of capital surplus increased by transactions with non-controlling shareholders
402 million yen- 40 -

2.

Acquisition of additional shares of a subsidiary(1) Outline of transactioni)Name of a company involved in business combination and nature of its business
Name of a company involved in business combination:
F&P MFG.DE MEXICO S.A. DE C.V. (Consolidated subsidiary of the Company)
Nature of business:
Manufacture and sale of auto partsii) Date of business combination
December 31, 2015 (deemed acquisition date)iii) Legal form of business combination
Capital increase through third-party allotmentiv) Name of company after business combination
No change was made.
v) Other items regarding outline of transaction
The Company underwrote the capital increase through third-party allotment for the purpose offurther strengthening the capital ties as well as stabilizing and strengthening the management of
the Group.
(2) Outline of accounting treatment applied
The transaction was accounted for as transactions with non-controlling shareholders categorizedunder transactions under common control, etc. in accordance with the Accounting Standard forBusiness Combinations (ASBJ Statement No. 21, September 13, 2013) and the Guidance on
Accounting Standard for Business Combinations and Accounting Standard for Business
Divestitures (ASBJ Guidance No. 10, September 13, 2013).
(3) Matters concerning acquisition of additional shares of a subsidiary
Acquisition cost of the acquired company and breakdown thereof by consideration type
Consideration for acquisition
Cash and deposits
1,903 million yen(4) Matters concerning change in the parent company’s ownership interest of subsidiaries due totransactions with non-controlling shareholdersi)
Major factor of change in capital surplus
The change in capital surplus is attributable to the difference between the acquisition cost for
the additional shares by the Company and the amount of decrease in non-controlling interests
due to the additional acquisition by the Company.
ii) Amount of capital surplus decreased by transactions with non-controlling shareholders
211 million yen- 41 -

Notes on asset retirement obligations
Not applicable.
Notes on real estate for lease, etc.
The Company and a subsidiary own rental properties and idle properties in Saitama Prefecture and otherareas.
In the current fiscal year, net rental revenue from the rental properties amounted to 72 million yen (rental
revenue was recorded in non-operating income) and gain on sales of non-current assets was 806 million
yen (recorded in extraordinary income). Carrying amount on the consolidated balance sheet, increase(decrease) in the current fiscal year and fair value of these real estate properties for lease, etc. are as
follows:(Millions of yen)
Fiscal year ended
March 31, 2015

Fiscal year ended
March 31, 2016

Carrying amount on the consolidatedbalance sheet
Balance at beginning of period

984

1,465

Increase (decrease) during period

480

(156)

1,465

1,308

1,697

1,585

Balance at end of period
Fair value at end of period(Notes) 1. Carrying amount on the consolidated balance sheet is calculated by subtracting accumulated depreciation andimpairment loss from acquisition cost.
2. The increase (decrease) during the fiscal year ended March 31, 2016 mainly includes an increase due toincrease in idle assets (602 million yen) and a decrease due to transfer of idle land (727 million yen).
3. Fair values at end of period are based on certain appraisal value and indicators that are considered toappropriately reflect market prices.

- 42 -

Segment information, etc.
Segment information
1. Description of reportable segments
The reportable segments of the Company are components for which discrete financial information isavailable and whose operating results are regularly reviewed by the Board of Directors to makedecisions about resource allocation and assess their performance.
The Company is engaged in the manufacture and sale of auto parts. As of the end of the current fiscal
year, four companies including the Company in Japan as well as five local corporations in North
America and eight local corporations in Asia each conduct the business operations. These local
corporations, which are independent management units, formulate comprehensive strategies anddevelop business activities in each area.
For this reason, the Company consists of regional segments based on the manufacturing and sales
systems and has three reportable segments, namely Japan, North America and Asia.
2.

Explanation of measurements of net sales, profit (loss), assets, liabilities, and other items for eachreportable segment
The accounting procedures for reportable segments are consistent with those stated in “Basis ofpresentation and significant accounting policies for preparation of consolidated financial statements.”
Profit of reportable segments is based on operating income (before amortization of goodwill).
Transactions with other segments are based on prevailing market prices.

3.

Disclosure of net sales, profit (loss), assets, liabilities, and other items for each reportable segment
Fiscal year ended March 31, 2015
(Millions of yen)
Reportable segments
Japan

North America

Total

Asia

Net sales
Net sales to external customers

25,579110,189

39,811

175,579

Transactions with other segments

15,868

1,541

2,099

19,510Total

41,447111,731

41,910

195,090

Segment profit

434

4,635

758

5,828

Segment assets

53,43363,54238,280155,257

Depreciation

2,322

4,304

2,750

9,378

Investments in entities accounted forusing equity method

2,942

238

–

3,181

Increase in property, plant andequipment and intangible assets

2,061

9,006

5,134

16,203

Other items- 43 -

Fiscal year ended March 31, 2016
(Millions of yen)
Reportable segments
Japan

North America

Total

Asia

Net sales
Net sales to external customers

22,016

124,953

49,372

196,343

Transactions with other segments

16,535

1,718

2,037

20,291

Total

38,552

126,671

51,410216,635

Segment profit

381

4,675

2,069

7,126

Segment assets

57,39367,86540,306

165,564

Depreciation

2,474

4,475

3,549

10,500Investments in entities accounted forusing equity method

3,089

259

–

3,348

Increase in property, plant andequipment and intangible assets

3,340

13,507

4,691

21,539Other items

4.

Differences between total amounts for reportable segments and amounts in the consolidated financial
statements and main details of these differences (matters relating to difference adjustments)(Millions of yen)
Fiscal year ended
March 31, 2015

Net sales

Fiscal year ended
March 31, 2016

Reportable segments total

195,090

216,635

Elimination of intersegment transactions(19,510)(20,291)

Net sales in the consolidated financial statements

175,579

196,343(Millions of yen)

Fiscal year ended
March 31, 2015

ProfitFiscal year ended
March 31, 2016

Reportable segments total

5,828

7,126

Elimination of intersegment transactions

(264)

(305)

Operating income in the consolidated financial
statements

5,564

6,821
(Millions of yen)

Fiscal year ended
March 31, 2015

AssetsFiscal year ended
March 31, 2016

Reportable segments total

155,257

165,564

Elimination of intersegment transactions(22,546)(27,571)

(13)

(12)

132,697

137,980

Other adjustments
Total assets in the consolidated financial statements- 44 -

(Millions of yen)
Reportable segments total
Other items

Amount recorded in the
consolidated balance sheet

Adjustments

Fiscal year
Fiscal year
Fiscal year
Fiscal year
Fiscal year
ended March ended March ended March ended March ended March
31, 2015
31, 2016
31, 2015
31, 2016
31, 2015

Fiscal year
ended March
31, 2016

Depreciation

9,378

10,500

(457)

(419)

8,920

10,081

Investments in entities
accounted for using equity
method

3,181

3,348

–

–

3,181

3,348

Increase in property, plantand equipment andintangible assets

16,203

21,539

(571)

(960)

15,631

20,578(Note)

Adjustments of increase in property, plant and equipment and intangible assets are the effect of intersegment
consolidation adjustments.

- 45 -

Information associated with reportable segments
Fiscal year ended March 31, 2015
1. Information by product or service
This information has been omitted as net sales to external customers in a single product or service
category account for more than 90% of net sales recorded in the consolidated statements of income.
2.

Information by geographical region(1) Net salesJapan
23,791(Note)U.S.A.
65,682(Millions of yen)Canada39,091

China

Other

32,203

14,810175,579

Net sales are segmented by country or region based on customer locations.

(2) Property, plant and equipment
Japan
17,0903.

Total

U.S.A.
17,147(Millions of yen)Canada10,414

China

Other

12,782

Total

10,091

Information for major customers

67,527(Millions of yen)Counterparty

Revenues

Honda Motor Co., Ltd. and its group companies

138,635

Relevant segment
All reportable segments

Fiscal year ended March 31, 2016
1. Information by product or service
This information has been omitted as net sales to external customers in a single product or service
category account for more than 90% of net sales recorded in the consolidated statements of income.
2.

Information by geographical region(1) Net salesJapan
21,126(Note)U.S.A.
73,449(Millions of yen)Canada44,718

China

Other

38,464

18,585

196,343

Net sales are segmented by country or region based on customer locations.

(2) Property, plant and equipment
Japan
18,342

3.

Total

U.S.A.
17,722(Millions of yen)Canada12,466

China
12,363

Information for major customers

Other

Total

12,51473,410(Millions of yen)Counterparty

Revenues

Honda Motor Co., Ltd. and its group companies- 46 -

152,435

Relevant segment
All reportable segments

Disclosure of impairment loss on non-current assets for each reportable segment
Fiscal year ended March 31, 2015
(Millions of yen)Japan
Impairment loss

North America

111

Unallocatedamounts andelimination

Asia

71

–

Total

–

183

Fiscal year ended March 31, 2016
(Millions of yen)Japan

North America

Impairment loss–

Unallocatedamounts andelimination

Asia

–

110

Total

–

110

Amortization and unamortized balance of goodwill for each reportable segment
Fiscal year ended March 31, 2015
(Millions of yen)Japan

North America

Unallocatedamounts andelimination

Asia

Total

Amortization during
period

–

0

–

–

0

Balance at end of
period

–

13

–

–

13

Amortization and unamortized balance of negative goodwill in accordance with businesscombinations that took effect before April 1, 2010 are as follows:(Millions of yen)Japan

North America

Unallocatedamounts andelimination

Asia

Total

Amortization during
period

1

1

3

–

6

Balance at end of
period

23

23

45

–

92

Fiscal year ended March 31, 2016
(Millions of yen)Japan

North America

Unallocatedamounts andelimination

Asia

Total

Amortization during
period

–

0

–

–

0

Balance at end of
period

–

12

–

–

12

- 47 -

Amortization and unamortized balance of negative goodwill in accordance with businesscombinations that took effect before April 1, 2010 are as follows:(Millions of yen)Japan

North America

Unallocatedamounts andelimination

Asia

Total

Amortization during
period

1

1

3

–

6

Balance at end of
period

21

21

42

–

85

Information about gain on bargain purchase for each reportable segment
Fiscal year ended March 31, 2015
Not applicable.
Fiscal year ended March 31, 2016
Not applicable.

- 48 -

Related parties
Fiscal year ended March 31, 2015
1. Related-party transactions(1) Transactions between the company filing the consolidated financial statements and relatedpartiesi)
The parent company and major shareholders (limited to companies) of the company filingthe consolidated financial statements
Type

Name

Other
associate

Honda
Motor Co.,Ltd.

Location

Minato-ku,
Tokyo

Capital stock
or stakeTransaction
Nature of Voting rights Relationship Description
amountholdingratiobusiness orwith theof(Millions of occupation(Millionsofrelated party transactions
(%)
yen)
yen)
Manufactureand sale of(Owned)motor
86,067
vehicles and Direct 16.6
passengers
car bodies

Purchaser of
products ofSale ofthe Groupfinished
and seller ofgoods
parts and raw
materials

16,259Line item

Accounts
receivable tradeEndingbalance(Millions of
yen)

1,601

(Notes) 1. Terms and conditions of transactions and policy on determination thereof
Selling prices are determined by making an estimate based on economic rationality in view of market prices andthe Company’s manufacturing technologies, submitting the estimate to the customer and then negotiating on price.
2. In the above amounts, transaction amounts do not include consumption taxes while ending balances do.

(2) Transactions between consolidated subsidiaries of the company filing the consolidated
financial statements and related partiesi)Companies which have the same parent company as the company filing the consolidated
financial statements and subsidiaries of other associates of the company filing theconsolidated financial statements
Type

Name

Subsidiaryof otherassociates

Honda of
America
Mfg., Inc.

Subsidiaryof otherassociates

Honda
Manufacturing of
Alabama,
LLC

Subsidiaryof otherassociates

Location

Capital stock
or stakeTransaction
Nature of Voting rights Relationship Description
amountbusiness or holding ratio with theof(Millions of occupation(Millionsofrelated party transactions
(%)
yen)
yen)

Ohio, U.S.A.

Manufactureand sale of
USD
motor
561,568
vehicles andthousandpassengers
car bodies

Alabama,
U.S.A.

Manufactureand sale of
USD
motor
400,000
vehicles andthousandpassengers
car bodies

Honda
Ontario,
Canada, Inc. Canada

Manufactureand sale of
CAD
motor
226,090vehicles andthousandpassengers
car bodies–

Purchaser of
products ofSale ofthe Groupfinished
and seller ofgoods
parts and raw
materials–

Purchaser of Sale ofproducts of finishedgoods
the Groupand seller of Purchase ofparts and raw raw
materials
materials–

Purchaser of
products ofSale ofthe Groupfinished
and seller ofgoods
parts and raw
materials

Line item

Endingbalance(Millions ofyen)

31,639Accounts
receivable trade

4,299

27,909Accounts
receivable trade

2,621

16,039Accounts
payable trade

1,437

21,667

Accounts
receivable trade

2,521(Notes) 1. Terms and conditions of transactions and policy on determination thereof(1) Selling prices are determined by making an estimate based on economic rationality in view of market prices
and the Company’s manufacturing technologies, submitting the estimate to the customer and then negotiatingon price.
(2) In purchases of raw materials, prices are determined through negotiations on price by reference to market
prices.
2. In the above amounts, transaction amounts do not include consumption taxes while ending balances do.

2.

Notes on the parent company or major associates
Not applicable.
- 49 -

Fiscal year ended March 31, 2016
1. Related-party transactions(1) Transactions between the company filing the consolidated financial statements and relatedpartiesi)
The parent company and major shareholders (limited to companies) of the company filingthe consolidated financial statements
Type

Name

Other
associate

Honda
Motor Co.,Ltd.

Location

Minato-ku,
Tokyo

Capital stock
or stakeTransaction
Nature of Voting rights Relationship Description
amountholdingratiobusiness orwith theof(Millions of occupation(Millionsofrelated party transactions
(%)
yen)
yen)
Manufactureand sale of(Owned)motor
86,067
vehicles and Direct 16.6
passengers
car bodies

Purchaser of
products ofSale ofthe Groupfinished
and seller ofgoods
parts and raw
materials

13,843

Line item

Accounts
receivable tradeEndingbalance(Millions of
yen)

1,919

(Notes) 1. Terms and conditions of transactions and policy on determination thereof
Selling prices are determined by making an estimate based on economic rationality in view of market prices andthe Company’s manufacturing technologies, submitting the estimate to the customer and then negotiating on price.
2. In the above amounts, transaction amounts do not include consumption taxes while ending balances do.

(2) Transactions between consolidated subsidiaries of the company filing the consolidated
financial statements and related partiesi)Companies which have the same parent company as the company filing the consolidated
financial statements and subsidiaries of other associates of the company filing theconsolidated financial statements
Type

Name

Subsidiaryof otherassociates

Honda of
America
Mfg., Inc.

Subsidiaryof otherassociates

Honda
Manufacturing of
Alabama,
LLC

Subsidiaryof otherassociates

Location

Ohio, U.S.A.

Capital stock
or stakeTransaction
Nature of Voting rights Relationship Description
amountbusiness or holding ratio with theof(Millions of occupation(Millions ofrelatedpartytransactions
(%)
yen)
yen)
Manufactureand sale of
USD
motor
561,568
vehicles andthousandpassengers
car bodies

Alabama,
U.S.A.

Manufactureand sale of
USD
motor
400,000
vehicles andthousandpassengers
car bodies

Honda
Ontario,
Canada, Inc. Canada

Manufactureand sale of
CAD
motor
226,090vehicles andthousandpassengers
car bodies

Endingbalance(Millions ofyen)

39,328

Accounts
receivable trade

2,884

27,061

Accounts
payable trade

2,815

–

Purchaser of
products ofSale ofthe Groupfinished
and seller ofgoods
parts and raw
materials

26,087

Accounts
receivable trade

2,190

–

Purchaser of
products ofSale ofthe Groupfinished
and seller ofgoods
parts and raw
materials

25,424

Accounts
receivable trade

2,747

–

Purchaser of Sale ofproducts of finishedgoods
the Groupand seller of Purchase ofparts and raw raw
materials
materials

Line item(Notes) 1. Terms and conditions of transactions and policy on determination thereof(1) Selling prices are determined by making an estimate based on economic rationality in view of market prices
and the Company’s manufacturing technologies, submitting the estimate to the customer and then negotiatingon price.
(2) In purchases of raw materials, prices are determined through negotiations on price by reference to market prices.
2. In the above amounts, transaction amounts do not include consumption taxes while ending balances do.

2.

Notes on the parent company or major associates
Not applicable.
Notes on special purpose entities subject to disclosure
Not applicable.
- 50 -

Per share information(Yen)
Fiscal year ended
March 31, 2015
Net assets per share

Fiscal year ended
March 31, 2016

1,979.55

1,908.40

Basic earnings per share

115.42

176.14

Diluted earnings per share

114.60144.81(Notes) 1. As stated in “Changes in accounting policies,” the Accounting Standard for Business Combinations, etc. has been
applied.
As a result, for the fiscal year ended March 31, 2016, net assets per share increased by 12.43 yen and basic
earnings per share and diluted earnings per share decreased by 25.37 yen and 20.86 yen, respectively.
2. Basis for calculating basic earnings per share and diluted earnings per share is as follows:
Fiscal year ended
March 31, 2015

Fiscal year ended
March 31, 2016

Basic earnings per share
Profit attributable to owners of parent (Millions of yen)

1,772

2,704

–

–

Profit attributable to owners of parent related tocommon shares (Millions of yen)

1,772

2,704

Average number of shares (Thousands of shares)

15,356

15,356––

Increase in number of common shares(Thousands of shares)

109

3,322

[Of the above, convertible bond-type bonds with
subscription rights to shares (Thousands of shares)](109)(3,322)Outline of potential shares that were not used in
calculating diluted earnings per share because they haveno dilutive effects––

Amounts not attributable to common shareholders(Millions of yen)

Diluted earnings per share
Adjustment on profit attributable to owners of parent(Millions of yen)

Significant subsequent event
Not applicable.

- 51 -

v)

Annexed consolidated detailed schedules
Annexed detailed schedule of corporate bonds
Balance atBalance at end of
beginning ofcurrent period
current period(Millions of yen)
(Millions of yen)Company
nameType of bondDate ofissuance

F-TECH
INC.

Yen-denominatedconvertible bondtype bonds with
subscription rights toshares due 2020
(Note 1)March 20,
2015

4,000

Total

–

–

4,000

Interest
rate(%)

Collateral

Date ofmaturity

4,000

–

None

March 23,
2020

4,000

–

–

–

(Notes) 1. The information about the bonds with subscription rights to shares is as follows.
Type of bondDue 2020

Shares to be issued

Common shares

Issue value per subscription right to shares (Yen)

Without contribution

Issue price per share (Yen)

1,204

Total issue value (Millions of yen)

4,000

Total issue value of shares issued upon exercise of subscription rights toshares (Millions of yen)–

Granting ratio of subscription rights to shares (%)

100
From April 2, 2015
to March 9, 2020

Exercise period of subscription rights to shares(Note)

When there is a request from a person intending to exercise subscription rights to shares, in place of theredemption of the full amount of the bonds to which the subscription rights to shares are attached, it isdeemed that the full amount to be paid in upon exercise of the subscription rights to shares has been paidin. In addition, when subscription rights to shares are exercised, it is deemed that the said request has been
received.

2. Amounts of redemption scheduled within five years after the closing date of the accounting period are as follows:(Millions of yen)
Due within
one year–

Due after one year
through two years

Due after two years
through three years––- 52 -

Due after three years
through four years
4,000

Due after four years
through five years–

Annexed detailed schedule of borrowings
Balance atBalance at end Average interest
beginning ofof current periodratecurrent period(Millions of yen)(%)
(Millions of yen)Classification

Payment due

Short-term loans payable

19,09922,589

1.26–

Current portion of long-term loans payable

11,356

11,576

1.79

–

635

395

1.10

–

21,05018,597

1.39

2017–2025

428

485

1.00

2017–2022

52,56953,644––Current portion of lease obligations
Long-term loans payable (excluding current portion)
Lease obligations (excluding current portion)
Total(Notes) 1. The average interest rate is calculated using the interest rate and balance at end of period.
2. Repayment of long-term loans payable and lease obligations (excluding current portion) above scheduled within
five years after the closing date of the accounting period are as follows:(Millions of yen)
Due after one year
through two years

Due after two years
through three years

8,077

6,051

3,504

897

196

166

109

11

Long-term loans payable
Lease obligations

Due after three years
through four years

Due after four years
through five years

Annexed detailed schedule of asset retirement obligations
Not applicable.
(2) Other information
Quarterly information for the fiscal year ended March 31, 2016
(Cumulative period)
Net sales (Millions of yen)Three months
ended June 30,
2015

Six months ended
September 30,
2015

Nine months
ended December
31, 2015

Fiscal year ended
March 31, 2016

45,43093,983

144,145

196,343

Profit before income taxes (Millions of yen)

589

2,195

4,352

6,953

Profit (loss) attributable to owners of parent(Millions of yen)

(98)

420

1,316

2,704

(6.43)

27.37

85.70

176.14

Second quarter

Third quarter

Fourth quarter

33.79

58.33

90.44

Basic earnings (loss) per share (Yen)(Three-month period)
Basic earnings (loss) per share (Yen)First quarter(6.43)- 53 -