FR OM APR IL 1S T, 2016 TO M A RC H 31ST, 2017

CONTENTS
Ⅰ. SUMMARY OF OPERATING RESULTS BY BUSINESS
Review of Operations

１

Ⅱ. FINANCIAL HIGHLIGHTS
１. Consolidated Financial Highlights

２

２. Non-Consolidated Financial Highlights

３

Ⅲ. CONSOLIDATED FINANCIAL STATEMENTS
Consolidated Balance Sheets

４

Consolidated Statements of Income

６

Consolidated Statements of Comprehensive Income

７

Consolidated Statements of Changes in Equity

８

Consolidated Statements of Cash Flows

１０

Notes to Consolidated Financial Statements

１２

Ⅳ. NON- CONSOLIDATED FINANCIAL STATEMENTS
Balance Sheets

２７

Statements of Income

２９Statements of Changes in Equity

３０

Ⅴ. OUTLINE OF THE COMPANY

３４

Ⅵ. PROFILE OF THE GROUP COMPANIES

３７

Ⅶ. OWNERSHIP OF THE COMPANY’S SHARES

３９

Ⅷ. BOARD OF DIRECTORS AND AUDIT AND SUPERVISORY
BOARD MEMBERS

４０

Ⅰ. SUMMARY OF OPERATING RESULTS BY BUSINESSAs of March 31, 2017

Review of Operations● Instruments sales
Sales of instruments for automobiles in the Americas, Asia markets increased while in Europe the market
decreased. Instruments sales for the year increased by 0.3% to ¥190,316 million, from the previous fiscal
year.

● Consumer-use products sales
Sales decreased by 18.0% to ¥11,472 million from the previous fiscal year, mainly due to a decrease inorders for control panels for office equipment and PCB assemblies for amusement products and so on.

● Automobile sales
Sales of cars at our dealerships decreased by 5.1% to ¥21,686 million from the previous fiscal year mainly
due to a decrease in orders for new cars.

● Other businesses
Sales of other products and services totaled ¥17,044 million, 0.4% increase from the previous fiscal year,
mainly due to an increase in the sale of compound resins and so on.

As a result, the company’s consolidated business operations for this fiscal year, ending March 31, 2017,
resulted in sales of ¥240,520 million, a decrease of 1.3% from the previous fiscal year. At the same time,ordinary income for the year increased by 8.5%, to ¥17,764 million, and profit attributable to owners ofparent increased by 2.9%, to ¥9,412 million, respectively.

● Consolidated sales by business segment
2014(Yen in millions)

2015(Yen in millions)

2016(Yen in millions)

2017(Yen in millions)

Increase(Decrease)

Instruments for automobiles,
motorcycles, agricultural /construction machines andboats

167,820

174,436

189,784

190,316

0.3%

Consumer-use products

13,15013,55613,993

11,472(18.0%)

Automobiles

23,766

22,617

22,845

21,686(5.1%)

Other businesses

15,407

16,345

16,982

17,044

0.4%

Total

220,144

226,956

243,606

240,520(1.3%)1

Ⅱ. FINANCIAL HIGHLIGHTS

As of March 31, 2017

1. Consolidated Financial Highlights
1 – 1. Consolidated Sales

Yen in billions

13/14

1 5 .42 3 .7

1 3 .1 8 . 6

3 9 .3

1 1 9.7

14/15

1 6 .32 2 .6

1 3 .5 8 . 4

3 7 .7

1 2 8.1

15/16

1 6 .92 2 .8

1 3 .9 6 .4

3 6 .4

16/17

1 7 .02 1 .6

1 1 .4 7 .0

0

220.1

226.9

243.6

1 4 6.9

3 5 .3240.5

1 4 7.8

50

100

150

200

250

Miscellaneous

Automobiles

Consumer-use Products

Other Instruments

Motorcycle Instruments

Automotive Instruments

1 – 2. Consolidated Profit for the year

Yen in billions

13.90

13/14

14.46

14/15

15/16

9.14

16/17

9.41

0

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

Consolidated sales for the fiscal year ending March 31, 2017, decreased by 1.3% to ¥240,520 million,
ordinary income increased by 8.5% to ¥17,764 million, and profit for the year increased by 2.9% to ¥9,412 million.

1 – 3. Consolidated Financial Highlights
2014

2015

2016

2017

Sales (Yen in millions)220,144

226,956

243,606

240,520

Ordinary income (Yen in millions)

23,02923,61916,37817,764

13,908

14,467

9,143

9,412

242.79252.60159.67164.37

Total assets (Yen in millions)263,132

299,132

292,130

290,934

Net assets (Yen in millions)

139,256

170,663

164,847

163,985

Net assets per share (Yen)

2,278.25

2,794.24

2,697.71

2,764.28

Profit attributable to owners of parent(Yen in millions)
Earnings per share attributable toowners of parent (Yen) ※Note:※ Earnings per share attributable to owners of parent is calculated by the weighted average numberof shares of common stock outstanding during the year.
2２. Non-Consolidated Financial Highlights

As of March 31, 2017
Yen in billions

2 – 1. Non-Consolidated Sales
13/14

7.1

9.1

8.3

1 4 .9

14/15

7.0

8.7

8.0

1 5 .0

15/16

8.1

8.7

6.1

1 5 .17 6 .5

114.7

8.8

6.8

1 5 .47 9 .4

117.4

6.7

16/17
0

20

6 8 .1107.6

6 5 .3

40

104.3

60

80

Miscellaneous

Consumer-use Products

Motorcycle Instruments

Automotive Instruments

100

120

Other Instruments

Yen in billions

2 – 2. Non-Consolidated Profit for the year

6 .58

13/14

7.43

14/15

4.41

15/16

5.39

16/17

0

1

2

3

4

5

6

7

8

Non-Consolidated sales for the fiscal year ending March 31, 2017, increased by 2.4% to ¥117,415 million,
ordinary income increased by 87.2% to ¥10,266 million, and profit for the year increased by 22.2% to ¥5,392
million.

2 – 3. Non-Consolidated Financial Highlights
2014

2015

2016

2017

Sales (Yen in millions)

107,699

104,376

114,703

117,415

Ordinary income (Yen in millions)

11,049

11,107

5,485

10,266

Profit for the year (Yen in millions)

6,585

7,437

4,414

5,392

Earnings per share (Yen) ※114.97129.86

77.09

94.18

Dividend per share (Yen)

27.00

33.00

35.00

35.00

Total assets (Yen in millions)

183,316

194,437

197,879

205,595

Net assets (Yen in millions)

78,53185,89685,78890,439Common stock (Yen in millions)

14,494

14,494

14,494

14,494

42.8

44.1

43.3

43.9

Equity ratio (%)

Note:※ Earnings per share is calculated by the weighted average number of shares of common stock
outstanding during the year.
3

Ⅲ. CONSOLIDATED FINANCIAL STATEMENTS － Unaudited English translation from original Japanese-language statements
Consolidated Balance Sheets
March 31, 2017

March 31, 2016

(Yen in millions)(Yen in millions)¥101,886¥58,861

Notes and accounts receivable - trade (Note 8)

48,47847,261

Merchandise and finished goods

16,315

13,091Work in process

4,040

3,600

Raw materials and supplies

23,047

18,917

Deferred tax assets (Note 5)

3,826

2,768

Other

10,2499,481(349 )(189 )

207,494

153,792

Buildings and structures (Note 2)

16,133

15,290Machinery, equipment and vehicles

15,881

14,712Tools, fixture and fixtures

5,190

4,991

Land (Note 2)

16,46616,148

Leased assets

250

254

2,862

2,155

56,78553,552

―
3,745

6
3,662

3,745

3,669

Investment securities (Note 8,9)

18,717

19,302

Deferred tax assets (Note 5)

2,094

1,712

Other

2,107

60,112

(10 )

(10 )

Total investments and other assets

22,908

81,115

Total non-current assets

83,439138,338¥290,934¥292,130

AssetsCurrent assets
Cash and deposits (Note 8,10)

Allowance for doubtful accounts (Note 8)
Total current assets
Non-current assets
Property, plant and equipment

Construction in progress
Total property, plant and equipment
Intangible assets
Goodwill
Other
Total intangible assets
Investments and other assets

Allowance for doubtful accounts

Total assets

4March 31, 2017

March 31, 2016

(Yen in millions)(Yen in millions)

Notes and accounts payable - trade (Note 8)¥34,805¥32,760

Short-term loans payable (Note 2,8)54,44961,693Liabilities
Current liabilities

Lease obligations (Note 2)

92

111

Income taxes payable (Note 5)

1,565

1,327

Provision for bonuses

2,180

2,132

59

70

3,273

580

Provision for directors' bonuses
Provision for compensation for products
Provision for loss on order received―

19

Provision for loss on litigation

867

870

Provision for loss on liquidation of subsidiaries and associates

48―

14,987

12,638112,329

112,205

7,410

8,460

201

169

3,277

2,957

231

223

3,180

2,985

Asset retirement obligations

69

68

Other

248

214

Total non-current liabilities

14,61915,078

Total liabilities

126,948

127,283

Capital stock (Note 4)

14,494

14,494

Capital surplus

5,855

6,473

Retained earnings

126,203

120,432(6,336 )(6,314 )140,216135,085

Other
Total current liabilities
Non-current liabilities
Long-term loans payable (Note 2,8)
Lease obligations (Note 2)
Deferred tax liabilities (Note 5)
Provision for directors’ retirement benefits
Net defined benefit liability (Note 3)

Net assets
Shareholders’ equity

Treasury shares (Note 4)
Total shareholders' equity
Accumulated other comprehensive income,

Valuation difference on available-for-sale securities

5,311

4,032

Foreign currency translation adjustment

12,852

15,487

Remeasurements of defined benefit plans(107 )(116 )

18,056

19,403

100

80

5,611

10,277

Total net assets

163,985

164,847

Total liabilities and net assets¥290,934¥292,130

Total accumulated other comprehensive income
Subscription rights to shares (Note 12)
Non-controlling interests

See notes to consolidated financial statements.

5Consolidated Statements of Income
Year ended March 31, 2017

Year ended March 31, 2016

(Yen in millions)(Yen in millions)

Net Sales¥240,520¥243,606

Cost of sales

193,537

191,858

46,982

51,748

5,848

5,294

Gross profit
Selling, general and administrative expenses
Packing and transportation expenses
Employees’ salaries

9,930

12,072

Provision of allowance for doubtful accounts

1500

-

Provision for bonuses

670

622

Provision for compensation for products

258

305

Retirement benefit expenses

493

638

Provision for directors’ retirement benefits
Depreciation

41

40

1,349

1,571

59

70

10,883

13,04829,686

33,664

17,29618,083

Interest income

1,683

1,780

Dividend income

480

421

Provision for directors' bonuses
Other
Total selling, general and administrative expenses
Operating income
Non-operating income

Other
Total non-operating income

849

1,151

3,013

3,352

219

308

2,264

4,617

Non-operating expenses
Interest expenses
Foreign exchange losses
Other

62

132

Total non-operating expenses

2,545

5,057

Ordinary income

17,764

16,37895

108

Extraordinary income
Gain on sales of non-current assets
Gain on sales of investment securities

18

16

Total extraordinary income

113

124

2,236

-

Extraordinary losses
Provision for compensation for products
Loss on sales of non-current assets

26

14

Loss on retirement of non-current assets

69

74

Impairment loss

6288

-

Provision for loss on liquidation of subsidiaries and associates

455

-

Other

5011

-

3,507

88

14,37016,414

Total extraordinary losses
Profit before income taxes
Income taxes (Note 5)

3,974

6,293

10,396

10,121

Profit attributable to non-controlling interests

983

977

Profit attributable to owners of parent (Note 7)¥9,412¥9,143

Profit for the year

See notes to consolidated financial statements.

6

Consolidated Statements of Comprehensive Income

Profit for the year

Year ended March 31, 2017

Year ended March 31, 2016

(Yen in millions)(Yen in millions)¥10,396.

¥10,121

Other comprehensive income
Valuation difference on available-for-sale securities

1,279(2,508 )Foreign currency translation adjustment(3,323 )(11,059 )Remeasurements of defined benefit plans

53(2,038 )(13,564 )

8,357(3,442 )8,065(3,590 )292

147

Total other comprehensive income
Comprehensive income
Comprehensive income attributable to owners of parent
Comprehensive income attributable to non-controlling interests
See notes to consolidated financial statements.

7

Consolidated Statements of Changes in Equity
Year ended March 31, 2017
(Yen in millions)Shareholders’ equity
Capital Stock
Balance as of March 31, 2016

Retainedearnings

Capital surplus¥14,494¥6,473

Treasury shares¥120,432

Total
shareholders’equity¥(6,314)¥135,085

Changes of items during
periodDividends of surplus(2,004)(2,004 )Profit attributable toowners of parent

9,412

9,412

Change of scope of
consolidation(1,615)(1,615 )

(20)

(20 )

Employee welfare fund
Purchase of treasury
sharesChange in ownershipinterest of parent due totransactions with
non-controlling interests
Net changes of items otherthan shareholders’ equity

(21 )

(21 )

(618)

(618 )

Total changes of items during
period

-

(618)

5,771

(21 )

5,131

Balance as of March 31, 2017

¥14,494¥5,855¥126,203¥(6,336 )¥140,216

Accumulated other comprehensive income

Balance as of March 31,
2016
Changes of items during
periodValuationdifference on
available-for-sale
securities

Foreigncurrencytranslation
adjustment

Remeasurements of defined
benefit plans¥4,032¥15,487¥(116))

Total accumulated Subscription Non-controllingrights tootherinterests
sharescomprehensive
income¥19,403¥80¥10,277

Total net
assets¥164,847

Dividends of surplus(2,004 )Profit attributable toowners of parent

9,412

Change of scope of
consolidation(1,615 )Employee welfare fund
Purchase of treasury
sharesChange in ownershipinterest of parent due totransactions with
non-controlling interests
Net changes of items otherthan shareholders’ equity

(20 )
(21 )

(618 )

1,279(2,634)8(1,346)20(4,666)(5,992)

Total changes of items
during period

1,279(2,634)8(1,346)20(4,666)(861)

Balance as of March 31,
2017¥5,311¥12,852¥(107）¥18,056¥100¥5,611¥163,985

See notes to consolidated financial statements.

8

Year ended March 31, 2016
(Yen in millions)Shareholders’ equity
Capital Stock
Balance as of March 31, 2015

Retainedearnings

Capital surplus¥14,494¥6,476

Treasury shares¥113,218

Total
shareholders’equity¥(6,302)¥127,887

Changes of items during
periodDividends of surplus(2,004)(2,004 )Profit attributable toowners of parent

9,143

9,143

Change of scope of
consolidation

109

109

Employee welfare fund

(36)

(36 )

Purchase of treasury
shares
Disposal of treasury shares

(3)

(22 )

(22 )

10

7

Net changes of items otherthan shareholders’ equity
Total changes of items during
period

-

(3)

7,213

(12 )

7,197

Balance as of March 31, 2016

¥14,494¥6,473¥120,432¥(6,314 )¥135,085

Accumulated other comprehensive income

Balance as of March 31,
2015
Changes of items during
periodValuationdifference on
available-for-sale
securities

Foreigncurrencytranslation
adjustment

Remeasurements of defined
benefit plans¥6,540¥25,710¥(112))

Total accumulated Subscription Non-controllingrights tootherinterests
sharescomprehensive
income¥32,138¥66¥10,570

Total net
assets¥170,663

Dividends of surplus(2,004 )Profit attributable toowners of parent

9,143

Change of scope of
consolidation

109

Employee welfare fund

(36 )Purchase of treasury
shares
Disposal of treasury
sharesNet changes of items otherthan shareholders’ equity(22 )7(2,508)(10,222)(4)(12,734)

14

(293)

(13,013)

Total changes of items
during period(2,508)(10,222)(4 )(12,734)

14

(293)

(5,816)

Balance as of March 31,
2016¥4,032¥15,487¥(116）¥19,403¥80¥10,277¥164,847

See notes to consolidated financial statements.

9Consolidated Statements of Cash Flows
Cash flows from operating activities:
Profit before income taxes
Depreciation and amortization
Impairment loss
Amortization of goodwill
Loss (gain) on sales of investment securities
Share-based compensation expenses
Increase (decrease) in
Provision for bonuses
Provision for directors' bonuses
Provision for directors’ retirement benefits
Allowance for doubtful accounts
Provision for compensation for products
Provision for loss on litigation
Provision for loss on order received
Provision for loss on liquidation of subsidiaries
and associates
Net defined benefit liability
Interest and dividend income
Interest expenses
Foreign exchange losses (gains)
Gain on sales of property, plant and equipment
Loss on disposal of property, plant and equipment
Decrease(increase) in
Notes and accounts receivable - trade
Inventories
Other assets
Notes and accounts payable - trade
Other liabilities
Other, net
Sub totalInterest and dividend income received
Interest expenses paid
Compensation for damage paid
Income taxes paid
Net cash provided by (used in) operating activities
Cash flows from investing activities:
Net decrease (increase) in time deposits
Proceeds from sales of securities
Purchase of property, plant and equipment
Proceeds from sale of property, plant and equipment
Payments for retirement of property, plant and equipment
Decrease(increase) in intangible assets and investments andother assets
Payment of loans receivableCollection of loans receivable
Purchase of investment securities
Other, net
Net cash provided by (used in) investing activities

10

Year ended March 31, 2017
(Yen in millions)¥14,370
8,430
628
5
(18)
20

Year ended March 31, 2016
(Yen in millions)¥16,414
9,113
80
19

49
(11)
8
176
2,690
(3)
(19)

218
(38)
17
(26)
237
(57)
15

46

(161)

224
(2,164)
219
1,889
(95)
96

288
(2,201)
308
2,246
(108)
88

(2,762)(9,158)
852
2,441
1,245
127
19,287
2,120
(220)
(12)
(5,494)
15,681(10,037)451(2,668)
6,109
1,889
(16)
22,1842,187(300)(7,181)
16,8908,751(11,027)
275
(14)

2,879
300
(10,855)429(3)(1,491)(1,991)

(5)
9
(59)
23
(3,536)

(113)
1
(53)
20
(9,386)

Year ended March 31, 2017
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
Repayments of lease obligations
Net decrease (increase) in treasury shares
Cash dividends paid
Dividends paid to non-controlling interests
Payments from changes in ownership interests in
subsidiaries that do not result in change in scope of
consolidation
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 year
Increase in cash and cash equivalents from newly consolidated
subsidiary
Cash and cash equivalents at end of year (Note 10)
See notes to consolidated financial statements.

11

Year ended March 31, 2016

(7,085)5,000(6,300)(145)(10)(2,004)(2,102)3,600(4,809)(146)(30)(2,003)(432)(3,095)-(15,744)(1,709)(5,309)41,015(3,823)(2,095)
1,585
39,429195-¥35,901¥41,015

Notes to Consolidated Financial Statements

1. Summary of significant accounting policies(a) Basis of presentation
Nippon Seiki Co., Ltd. (the Company) and its domestic subsidiaries maintain their accounting records and prepare theirfinancial statements in accordance with accounting principles and practices generally accepted in Japan, and foreignsubsidiaries maintain their books of account in conformity with those of their countries of domicile. The accompanying
consolidated financial statements are prepared on the basis of accounting principles generally accepted in Japan, which are
different in certain respects as to application and disclosure requirements of International Financial Reporting Standards
and are compiled from the consolidated financial statements prepared by the Company as required by the Financial
Instruments and Exchange Act of Japan. For the purposes of this document, certain reclassifications have been made topresent the accompanying consolidated financial statements in a format that is familiar to readers outside Japan.
(b) Basis of consolidation and accounting for investments in affiliates
The consolidated financial statements include the accounts of the Company and its 34 significant subsidiaries (theCompanies) at March 31, 2017 except for 1 subsidiary whose gross assets, net sales, and net income were not significant in
the aggregate in relation to the comparable figure in the consolidated financial statements. All significant inter-company
balances and transactions have been eliminated in consolidation.
Investments in 1 non-consolidated subsidiary and 1 affiliate were stated at cost because the effect of application of theequity method would be immaterial.
19 foreign subsidiaries are consolidated on the basis of fiscal period ending December 31. Significant transactions, which
occurred during the period between such fiscal year-end and March 31, are adjusted in the accompanying consolidated
financial statements.
All assets and liabilities of the subsidiaries are revaluated at fair values on the date of acquisition and the excess of cost overunderlying net assets at the date of acquisition is amortized over a period of five years on a straight-line basis.
(c) Foreign currency translation
Monetary assets and liabilities of the Company and its domestic subsidiaries denominated in foreign currencies aretranslated at the current exchange rates in effect at each balance-sheet date. Resulting gains and losses are included in net
profit or loss for the period.
Assets and liabilities of the foreign consolidated subsidiaries are translated at the current exchange rates in effect at eachbalance-sheet date and revenue and expense accounts are translated at the average rate of exchange in effect during theyear. The Company has presented translation adjustments as a component of net assets in consolidated financial
statements.
(d) Cash and cash equivalents
Cash and cash equivalents include all highly liquid investments with original maturities of three months or less, which arereadily convertible to known amounts of cash and are so near maturity that they present insignificant risk of changes invalue because of changes in interest rates.

12(e) Securities
Equity securities classified as trading securities are stated at fair value and the cost is determined by the moving averagemethod. Equity securities not classified as trading securities are stated at fair value and the changes in fair value, net of
applicable income taxes, have been directly included in net assets as valuation difference on available-for-sale securities.
Other securities, for which fair values are unavailable, are stated at cost as determined by the moving average method.
(f) Inventories
Inventories held for ordinary selling purpose are stated at cost by the method of write-down of book values due to thedecline in profitability.
Finished goods and work in process-Instruments

Weighted average method

Finished goods and work in process-Others

Specific identification method

Raw materials

Weighted average method

Supplies

Most recent purchase method(g) Depreciation and amortization
Depreciation of property, plant and equipment is mainly calculated on the declining-balance method. Useful lives of therespective assets are based on the Corporation Tax Law.
Depreciation of intangible assets is mainly calculated on the straight-line method. Useful lives of the respective assets are
based on the Corporation Tax Law.
(h) Allowance for doubtful accounts
The allowance for doubtful accounts is provided at an amount sufficient to cover possible losses on the collection ofreceivables. For the Company and its consolidated subsidiaries, the amount of the allowance is determined based on (1) past
write-off experience and (2) an estimated amount of probable doubtful accounts based on a review of the collectability of
individual receivables.
(i) Provision for bonuses
Provision for bonuses is recognized based on expected total expenditure.
(j) Provision for directors' bonuses
Provision for directors' bonuses is recognized based on expected total expenditure.
(k) Provision for compensation for products
The provision for compensation for products is recorded in order to deal with market claim.
(l) Provision for loss on order received
Provision for loss on order received is recorded to cover probable losses on order received.

13

(m) Provision for loss on litigation
The provision for loss on litigation is recorded to cover probable losses on lawsuits based on the information currently
available.
(n) Provision for loss on liquidation of subsidiaries and associates
Provision for loss on liquidation of subsidiaries and associates is recorded to cover probable losses on liquidation ofsubsidiaries and associates.
(o) Pension and retirement benefits
Employees’ retirement benefits
Net defined benefit liability is recorded on the benefit formula basis as the attribution method for projected retirement
benefits.
Prior service costs are amortized by the straight-line method over 10 years which is shorter than the average remaining
years of service of the employees.
Actuarial gain and loss are recognized and amortized by the straight-line method over the subsequent 10 years which isshorter than the average remaining years of service of the employees.
Directors’ retirement benefits
Some subsidiary companies record the provision for directors’ retirement benefits based on the internal rules.
(p) Recognition criteria for revenues and costs of software development
With respect to contracts of made-to-order software development that started during the fiscal year ended March 31, 2016,
the percentage-of-completion method (cost comparison method for estimating the percentage of completion) is applied if its
outcome is deemed certain for the progress made by the end of the year; otherwise the completed-contract method is applied.
(q) Income taxes
The asset and liability approach is used to recognize deferred tax assets and liabilities for the expected future tax
consequences of temporary differences between the carrying amounts and the tax bases of assets and liabilities.
Deferred tax assets and liabilities are computed using the enacted tax rates which will be in effect when the differences are
expected to be reversed.
2. Loans payable
The weighted average interest rate of short-term loans payable to banks was 0.3% at March 31, 2017.
Long-term loans as of March 31, 2017 consist of the following;
Loans from banks, due through 2022 with average interest rates of 0.3%
Less: Current portion due within one year

Yen in millions¥11,7104,300¥7,410Aggregate annual maturities of long-term loans subsequent to March 31, 2017 are as follows:Year ending March 31,
2018
2019
2020
2021
2022

Yen in millions¥4,300
3,810
2,350
1,000
250
¥11,71014

Long-term lease obligations as of March 31, 2017 consist of the following:
Yen in millions
¥294
92
¥201

Finance lease obligations
Less: Current portion due within one year

Maturities of long-term lease obligations at March 31, 2017 are as follows:Year ending March 31,
2018
2019
2020
2021
2022
Thereafter

Yen in millions
¥92
72
56
45
20
7
¥294

The assets mortgaged for transaction as of March 31, 2017 were as follows:
Yen in millions
¥353
153
¥506

Building, net of accumulated depreciation
Land

3. Retirement benefits
The Company has both unfunded defined benefit and defined contribution plans. Its consolidated subsidiaries have funded
defined benefit, unfunded defined benefit and defined contribution plans. Defined benefit plans provide pensions to theemployees based on their salary and length of service. The payments of retirement allowance are also determined based onsalary and the length of service. Certain consolidated subsidiaries use a simplified method for calculating retirement benefits.
Defined benefit plans, exclusive of a plan applying a simplified method(1) Movement in retirement benefit obligations
Yen in millions
Balance at April 1, 2016

¥2,377

Service cost

207

Interest cost

39

Actuarial loss (gain)38

Benefit paid

(122)

Past service costs

17

Newly consolidated subsidiary

3

Other

(19)

Balance at March 31, 2017

¥2,541(2) Movement in plan assets
Yen in millions
Balance at April 1, 2016

¥186

Expected return on plan assets

0

Actuarial loss (gain)0

Contributions paid by the employer

28

Benefit paid

(23)

Other

(3)

Balance at March 31, 2017

¥189

15

(3) Reconciliation from retirement benefit obligations and plan assets toliability (asset) for retirement benefits
Yen in millions
Funded retirement benefit obligations¥315

Plan assets(189)

Unfunded retirement benefit obligations

2,225

Total net liability for retirement benefits at March 31, 2017

2,352

Liability for retirement benefits

2,352

Total net liability for retirement benefits at March 31, 2017

¥2,352

126(4) Retirement benefit costs
Yen in millions
Service cost

¥207

Interest cost

39

Expected return on plan assets(0)

Net actuarial loss (gain) amortization

47

Past service costs amortization

17

Other

(17 )

Balance at March 31, 2017

¥293(5) Adjustments for retirement benefit
Yen in millions
Net actuarial loss (gain)¥9

Total balance at March 31, 2017

¥9(6) Accumulated adjustments for retirement benefit
Yen in millions
Past service costs that are yet to be recognized¥159

Total balance at March 31, 2017

￥159(7) Plan assets
Plan assets at March 31, 2017 comprise:①

Cash and deposits

33%

Bonds

15%

Stocks

45%

Other

7%

Total

100%

Long-term expected rate of return②

Terms of payment, portfolio of plan assets, historical returns, operating policy, market trends and other factors
have been considered in determining the long-term expected rate of return.
(8) Actuarial assumptions
The principal actuarial assumption at March 31, 2017 (expressed as weighted averages) are as follows:
Discount rate

1.7%

Long-term expected rate of return

1.1%

Expected increase in salary

2.9%

16

Defined benefit plans applying a simplified method(1) Movement in retirement benefit obligations
Yen in millions
Balance at April 1, 2016

¥793

Service cost66

Benefit paid

(31)

Balance at March 31, 2017

¥827

(2) Reconciliation from retirement benefit obligations and plan assets to liability(asset) for retirement benefits
Yen in millions
Unfunded retirement benefit obligations¥827

Liability for retirement benefits

827

Total net liability for retirement benefits at March 31, 2017

¥827

(3) Retirement benefit costs

Yen in millions

Retirement benefit costs calculated based on a simplified method¥66

Defined contribution plans
Contributions to defined contribution plans are ￥1,063 million for the year ended March 31, 2017.
4. Supplementary information of changes in equity
Issued shares
Number of shares
as ofMarch 31, 2016
60,907,599

Type of shares
Common stock
Treasury shares

Increase-

Number of shares
as ofMarch 31, 2016
3,640,769

Type of shares
Common stock

Decrease

Increase

Decrease

10,205The details of increase and decrease are as follows:
Increase by purchase of odd-lot shares

Number of shares
as ofMarch 31, 2017
60,907,599-

Number of shares
as ofMarch 31, 2017
3,650,974

10,205

Dividends paid
Resolution

Type ofsharesBoard of Directors meeting
held on May 13, 2016
Board of Directors meeting
held on October 28, 2016

Commonstock
Commonstock

Total dividend
amount(Yen in millions)

Dividend
per share
(Yen)

1,030
973

Record date

Effective date

18.0

March 31, 2016

June 29, 2016

17.0

September 30, 2016

December 9, 2016

Dividends with the record date in the fiscal year ended March 31, 2017, but are effective in the subsequent period
Resolution

Type ofsharesBoard of Directors meeting
held on May 15, 2017

Commonstock

Source offunds fordividends
Retainedearnings

Total dividend
amount(Yen in millions)
1,030

17

Dividend
per share
(Yen)
18.0

Record date

Effective
date

March 31,2017

June 29,2017

5. Income taxes
The Company and its domestic subsidiaries are subject to a number of different income taxes which, in aggregate, indicate astatutory rate of approximately 31% for the year ended March 31, 2017. Income taxes of the foreign subsidiaries are based
generally on the tax rates applicable in their countries of incorporation.
The major components of deferred tax assets and liabilities as of March 31, 2017 were as follows:
Yen in millions
Deferred tax assets
Loss on valuation of inventories
Provision for bonuses
Net defined benefit liability
Depreciation
Impairment loss
Unrealized gains on inventories, property and equipment
Software development expenses
Provision for compensation for products
Other
Gross deferred tax assets
Less: Valuation allowance for deferred tax assets
Total deferred tax assets, net of valuation allowance
Deferred tax liabilities
Reserve for special depreciation
Valuation difference on available-for-sale securities
Undistributed earnings of foreign subsidiaries
Other
Total deferred tax liabilities
Net deferred tax assets

¥904
633
987
402
472
990
2,013
895
1,398
8,698
(657 )
8,041(25 )(2,282 )(2,193 )(895 )(5,397 )¥2,644

6. Lease transactions
Year ended March 31, 2017
The obligations under non-cancelable operating leases at March 31, 2017 were as follows:
Yen in millions
¥357
355
¥713

Due within one year
Due after one year
Total
Year ended March 31, 2016

The obligations under non-cancelable operating leases at March 31, 2016 were as follows:
Yen in millions
¥221
113
¥334

Due within one year
Due after one year
Total

18

7. Per share amounts
Earnings per share attributable to owners of parent are calculated by the weighted average number of shares of common
stock outstanding during the year.
Net assets per share are based on the number of shares of common stock outstanding at balance sheet date.
Earnings per share attributable to owners of parent for the year ended and net assets per share as of March 31, 2017 wereas follows:
Earnings per share attributable to owners of parent
Net assets per share¥164.37¥2,764.28

8. Financial instruments
Year ended March 31, 2017
1) Overview(1) Policy for financial instruments
The Companies manage cash surpluses though low-risk financial assets, such as bank deposit and raise funds
through bank borrowings. For the purpose of reducing the foreign currency exchange risk arising form receivables andpayables denominated in foreign currency, the Companies use derivatives and do not enter into derivatives for
speculative or trading purposes.
(2) Types of financial instruments, related risk and risk management of financial instruments
Notes, electronically recorded monetary claims and accounts receivable - trade are exposed to customer credit risk.
The Companies manage credit risk arising from receivables in accordance with the internal policies, which include
monitoring of due dates and outstanding balances by individual customer and the credit worthiness of main
customers on an interim basis.
Marketable securities and investment securities are exposed to market risk. Those securities are mainly the shares ofcommon stock of other companies with which the companies have business relationships.
Payment terms of payables, such as notes and accounts payable-trade, are mostly less than one year.
Short-term loans payable are used mainly in connection with business activities, and long-term loans payable aretaken out principally for the purpose of capital investments.
Trading liabilities and borrowings are exposed to liquidity risk. The Companies prepare and update cash flow plansmonthly to manage liquidity risk.
.

192) Fair value of financial instruments
Carrying value of financial instruments on the consolidated balance sheet as of March 31, 2017 and unrealized gains(losses) are shown in the following table. It does not include financial instruments for which it is extremely difficult todetermine the fair value (Please refer to Note 2 below).
(Yen in millions)
Carrying
Amount¥101,886
48,478(349 )
48,129Estimated
fair value¥101,886

Unrealized gain
(loss)¥-

48,127(1)(3) Securities and investment securities
Other securities
Total assets

16,683
166,699

16,683
166,697(1)(4) Notes and accounts payable-trade(5) Short-term loans payable(6) Long-term loans payable*
Total liabilities

34,80550,14911,710¥96,664

34,80550,149
11,693¥96,647

(16)
(¥16)

(1) Cash and deposits(2) Notes and accounts receivable-trade
Allowance for doubtful accounts*Include amount due within one year
Notes:
1. Method to determine the fair value of financial instruments, and other matters related to securities and derivativetransactions(1) Cash and deposits
These assets are carried at amounts that approximate fair values.
(2) Notes and accounts receivable - trade
The fair value of notes and accounts receivable - trade is stated at their present value which is calculated for each
receivables group categorized by the remaining period to maturity discounted by the interest rate applicable to theperiod and the credit risk.
(3) Securities and investment securities
The fair value of stocks is based on quoted market prices. The fair value of debt securities and money management
fund are based on the prices provided by the financial institutions. For information on securities classified byholding purpose, please refer to Note 9 Marketable securities.
(4) Long-term time deposits
The fair value is calculated based on the present value of the total of principal and interest, discounted by theinterest rate to be applied if similar new loans were executed.
(5) Notes and accounts payable-trade and (6) short-term loans payable
These liabilities are carried at amounts that approximate fair values.
(7) Long-term loans payable
The fair value is calculated based on the present value of the total of principal and interest, discounted by theinterest rate to be applied if similar new borrowings were entered into.
(8) Derivative transactions
Please refer to Note 11 Derivatives.

20

2. Unlisted stocks of ¥2,034 million on the consolidated balance sheet are not included in (3) Securities and investment
securities because no quoted market price is available and it is extremely difficult to determine the fair value.
3. Redemption of receivables and marketable securities as of March 31, 2017 is as follows:

Due within one year
¥101,886
48,145¥150,032

Cash and deposits
Notes and accounts receivable-trade
Total(Yen in millions)Due after one year
¥332
¥332

4. Redemption of short-term and long-term loans payable as of March 31, 2017 is as follows:

Short-term loans payable
Long-term loans payable
Total

2018
¥50,1494,300¥54,449

2019¥3,810¥3,8102020¥2,350¥2,3502021¥1,000¥1,000

2022
¥250
¥250

(Yen in millions)
Thereafter¥¥-

9. Marketable securities
Other securities
The following is a summary of the carrying amounts, acquisition cost and unrealized gains and losses by each holding
category at March 31, 2017.
Yen in millions
Carrying
amounts
Securities with carrying amount exceeding acquisition cost
Equity securities
Securities with carrying amount not exceeding acquisition cost
Equity securities
Other
Sub total
Total

Acquisition
cost

Unrealized
gain (loss)¥15,175¥7,482¥7,692

369
1,138
1,508
¥16,683

471
1,143
1,614
¥9,097

(101)
(4)
(106)
¥7,586

The following is a summary of the carrying amounts, acquisition cost and unrealized gains and losses by each holding
category at March 31, 2016.
Yen in millions
Carrying
amounts
Securities with carrying amount exceeding acquisition cost
Equity securities
Securities with carrying amount not exceeding acquisition cost
Equity securities
Other
Sub total
Total

21

Acquisition
cost

Unrealized
gain (loss)¥13,355¥7,431¥5,923

343
1,137
1,480
¥14,836

473
1,213
1,687
¥9,119

(130)
(76)
(206)
¥5,717

10. Supplementary cash flow information
The following table represents a reconciliation of cash and cash equivalents as of March 31, 2017 and 2016.
Yen in millions
2017
2016
¥101,886¥58,861(65,984)(17,845)¥35,901¥41,015

Cash and deposits
Time deposits with a maturity of more than three months
Cash and cash equivalents
11. Derivatives
Year ended March 31, 2017
Disclosure is omitted due to lack of materiality.
Year ended March 31, 2016
Disclosure is omitted due to lack of materiality.
12. Stock option
Stock option plan2017 stock option

Number of individuals covered by the plan:
Directors

6

Operating Officers

14

Total

20

Type and number of shares to be issued upon exercise ofstock subscription rights
Grant dateCommon stock
13,800 shares
July 20, 2016
July 21, 2016 toJuly 20, 2046

Exercise period

Non-vested stock options (Number of shares):
Outstanding at March 31, 2016

66,400 shares

Granted13,800 shares

Forfeited-

Vested80,200 shares

Outstanding at March 31, 2017
Vested stock options (Number of shares)
Outstanding at March 31, 2016-

VestedExercised-

Forfeited-

Outstanding at March 31, 2017

VestedExercise price (Yen)
Average stock price at the time of exercise(Yen)Fair value per stock at grant date (Yen)

Outstanding-

22

1
1,317.83

Stock option expenses included in selling, general and administrative expenses for the year ended March 31, 2017 amounted to¥ 20 million. The fair value of options granted is estimated using the Black-Scholes option pricing model with the following
assumptions.
2017 stock option
Expected volatility
Expected holding period

37.06%
5.8 years

Expected dividend¥35 per share

Risk-free interest rate

－0.33%

23

13. Segment information(a) Overview of reportable segments
The reportable segments of the Companies are those units for which separate financial information is available, and which arereviewed regularly by the company’s management in order to determine allocation of resources and to assess businessperformance.
The Companies have business units categorized by product and service, and each business unit plans comprehensive businessstrategies and operates business activities domestically and internationally.
Therefore, the Companies have reportable segments, such as instruments, consumer-use products, and automobile sales basedon business units categorized by products and services.
(b) Methods of calculating sales, income or loss, assets and other items by reportable segment
Accounting procedure for reportable segments is mostly the same as procedures indicated in 1. Summary of significant
accounting policies. Income for reportable segment is based on operating income. Intersegment transaction prices are based on
the market prices.
(c) Information on sales, income or loss, assets and other items by reportable segment

Segment information as of and for the year ended March 31, 2017 was as follows:(Yen in millions)Year ended or as ofMarch 31, 2017

Reportable segments
Adjustment

Consolidated
total¥240,520¥-¥240,520

16,656

16,690(16,690)-¥223,510¥33,700¥257,210¥(16,690)¥240,520¥1,041¥14,935¥2,606¥17,542¥ (246)¥17,296¥9,640¥11,941¥227,043¥16,484¥243,528¥47,405¥290,934¥6,858¥240¥502¥7,601¥761¥8,363¥35¥8,398¥9,774¥210¥1,154¥11,139¥1,198¥12,338¥383¥12,722

OthersTotal¥223,475¥17,04434

34¥11,472¥21,720¥13,941¥(47)¥205,462

Depreciation andamortization
Increase in fixed
assetsInstruments

Consumer-use
products

Automobilesales

Sub total

Unaffiliatedcustomers¥190,316¥11,472¥21,686

Intersegment--

Total sales¥190,316

Segment income(loss)
Segment assets

Sales

Others24

Segment information as of and for the year ended March 31, 2016 was as follows:(Yen in millions)Year ended or as ofMarch 31, 2016

Reportable segments
Instruments

Consumer-use
products

Automobilesales

Sub total¥189,784¥13,993¥22,845¥226,623

OthersTotal¥16,982¥243,606

Adjustment

Consolidated
total

¥-

¥243,606

Sales
Unaffiliatedcustomers
Intersegment

-

-

27

27

15,956

15,984(15,984)-

Total sales¥189,784¥13,993¥22,873¥226,651¥32,939¥259,591¥(15,984)¥243,606

Segment income(loss)¥15,876¥(338)¥969¥16,507¥1,730¥18,238¥ (154)¥18,083

Segment assets¥211,020¥9,374¥11,901¥232,296¥16,384¥248,680¥43,450¥292,130

Depreciation andamortization¥7,549¥266¥499¥8,314¥736¥9,051¥36¥9,088

Increase in fixed
assets¥8,183¥193¥1,053¥9,430¥1,219¥10,650¥250¥10,901

Others[Related information]
Geographic Information(Yen in millions)Year ended March 31, 2017

Japan

Americas

Europe

Asia

Total

Sales

¥85,984¥57,430¥22,130¥74,975¥240,520

Property, plant and equipment¥31,197¥9,043¥1,774¥14,769¥56,785(Yen in millions)Year ended March 31, 2016

Japan

Americas

Europe

Asia

Total

Sales

¥87,863¥56,439¥27,562¥71,742¥243,606

Property, plant and equipment¥29,282¥9,005¥1,582¥13,682¥53,552

25

[Information on amortization and balance of goodwill by reportable segment](Yen in millions)
Instruments

Automobile
sales

Goodwill
Amortization of goodwill
Balance at the end of current period

¥¥-

¥6
¥-

¥6
¥-

¥¥-

¥6
¥-

Negative goodwill
Amortization of negative goodwill
Balance at the end of current period

¥¥-

¥¥-

¥¥-

¥¥-

¥¥-

Year ended March 31, 2017

Sub total

Others

Total(Yen in millions)Year ended March 31, 2016

Instruments

Automobile
sales

¥¥-

¥80
¥6

¥80
¥6

¥¥-

￥80
¥6

¥¥-

¥¥-

¥¥-

¥¥-

¥¥-

Goodwill
Amortization of goodwill
Balance at the end of current period
Negative goodwill
Amortization of negative goodwill
Balance at the end of current period

Sub total

Others

Total[Information on impairment loss on non-current assets by reportable segments]
Year ended March 31, 2017
(Yen in millions)
Reportable segments
Instruments

Impairment loss¥-

Consumer-use
products

Automobilesales

Sub total

¥-

¥-

¥-

Year ended March 31, 2016
There was no impairment loss on non-current assets recognized.

26

OthersElimination・
unallocatedamount

Total

¥628

¥-

¥628

Ⅳ. Non-Consolidated Financial Statements － Unaudited English translation from original Japanese-language statements
Non-consolidated Financial Statements of NIPPON SEIKI Co., Ltd. for the Fiscal Year 2017 and 2016

Balance Sheets
AssetsCurrent assets
Cash and deposits

March 31, 2017

March 31, 2016

(Yen in millions)(Yen in millions)¥18,249¥17,789

Notes receivable - trade
Electronically recorded monetary claims - operating

235
5,473

330
4,789

Accounts receivable - tradeFinished goods

35,9883,823

38,365
3,574

Raw materials
Work in process

3,382
1,893

2,281
1,572

Supplies
Prepaid expenses

302
38

325
33

Deferred tax assets
Short-term loans receivable

1,708
15,498797
11,656

Accounts receivable - other
Other

3,965
163

4,896
10

Allowance for doubtful accounts

(74 )

(98 )

90,65086,325

Buildings
Structures

3,725
138

3,450
126

Machinery and equipment
Vehicles

1,624
29

1,680
21

Tools, fixture and fixtures
Land

1,683
7,103

1,646
7,278

Leased assets
Construction in progress

5
574

11
393

14,885

14,609

1,321

1,354

972
0

845
0

Total intangible assets

2,294

2,200

Investments and other assets
Investment securities

18,16916,34576,3302,355

74,135
3,466Long-term prepaid expenses
Deferred tax assets

36
822

48
636

Other
Allowance for doubtful accounts

158
(10 )

Allowance for investment loss

(97 )

120
(10 )
―

Total current assets
Non-current assets
Property, plant and equipment

Total property, plant and equipment
Intangible assets
Software
Software in progress
Other

Shares of subsidiaries and associates
Long-term loans receivable

Total investments and other assets

97,76594,743

Total non-current assets

114,945

111,553

Total assets¥205,595¥197,879

27

March 31, 2017

March 31, 2016

(Yen in millions)(Yen in millions)

Notes payable - trade
Accounts payable - trade¥792
19,060¥745
19,311

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

66,6324,300

65,446
4,550

Lease obligations
Accounts payable - other

4
4,436

6
3,630

Income taxes payable
Accrued expenses

371
5,346

10
6,299

Advances received
Provision for bonuses

116
906

0
882

29
2,629

33
4

Provision for loss on litigation
Deposits received

867
175

870
171

Notes payable - facilities
Other

564
―

171
0

Total current liabilities

106,231

102,134

Long-term loans payable
Lease obligations

7,400
1

8,450
6

Provision for retirement benefits
Other

1,347
175

1,331
168

Total non-current liabilities

8,924

9,955

115,155

112,090

Liabilities
Current liabilities

Provision for directors' bonuses
Provision for compensation for products

Non-current liabilities

Total liabilities
Net assets
Shareholders’ equity
Capital stock

14,494

14,494

Capital surplus
Legal capital surplus

6,214

6,214

Other capital surplus

258

258

6,473

6,473

960

960

―

0
60,580Total capital surplus
Retained earnings
Legal retained earnings
Other retained earnings
Reserve for special depreciation
General reserve

63,080Retained earnings brought forward

6,419

5,530

70,46067,071(6,336 )(6,314 )85,091

81,724

Valuation difference on available-for-sale securities

5,247

3,983

Total valuation and translation adjustments

5,247

3,983

100

80

Total retained earnings
Treasury shares
Total shareholders’ equity
Valuation and translation adjustments

Subscription rights to shares
Total net assets
Total liabilities and net assets

28

90,43985,788¥205,595¥197,879

Statements of Income

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income
Non-operating income
Interest and dividend income
Foreign exchange gains
Other

Year ended March 31, 2017

Year ended March 31, 2016

(Yen in millions)(Yen in millions)¥117,415
104,387¥114,703
101,182

13,02813,521

10,352

9,927

2,675

3,594

7,034

3,489
―

177
616

Total non-operating income

7,828

683
4,172

Non-operating expenses
Interest expenses

227―

Foreign exchange losses
Other

272

10

1,992
16

Total non-operating expenses

237

2,281

Ordinary income

10,266

5,485

Gain on sales of non-current assets
Gain on sales of investment securities

0
18

2
16

Total extraordinary income

19

18

Provision for compensation for products
Loss on disposal of non-current assets

2,236
49

―

Impairment loss
Loss on valuation of shares of subsidiaries and associates

628
1,274

Extraordinary income

Extraordinary losses

Other
Total extraordinary losses
Profit before income taxes
Income taxes
Profit for the year

29

14
―

598

71
―

4,786

85

5,499

5,418

106

1,003

¥5,392¥4,414

Statements of Changes in Equity
Year ended March 31, 2017
(Yen in millions)Shareholders’ equity
Capital surplus
Capital stock
Balance as of March 31, 2016

Legal capitalsurplus

Total capital
Surplus

Other capitalsurplus¥14,494¥6,214¥258¥6,473----¥14,494¥6,214¥258¥6,473

Changes of items during period
Dividends of surplus
Reversal of reserve for special
depreciation
Provision of general reserve
Profit for the year
Purchase of treasury shares
Net changes of items other thanshareholders’ equity
Total changes of items during
periodBalance as of March 31, 2017

Shareholders’ equity
Retained earnings
Other retained earnings

Balance as of March 31, 2016

Legal retained
earnings

Reserve for
specialdepreciation

¥960

¥0

Total retained
Retainedearnings
General reserve earnings brought
forward¥60,580¥5,530¥67,071(2,004)(2,004 )0-(2,500)

-

5,392

5,392

Changes of items during period
Dividends of surplus
Reversal of reserve for special
depreciation
Provision of general reserve

(0)
2,500

Profit for the year
Purchase of treasury shares
Net changes of items other thanshareholders’ equity
Total changes of items during
periodBalance as of March 31, 2017

-

(0)

2,500

889

3,388

¥960

-

¥63,080¥6,419¥70,460

30

(Yen in millions)Shareholders’ equity
TreasurysharesBalance as of March 31, 2016¥(6,314)

Total
shareholders’equity¥81,724

Valuation and translation
adjustments
Valuation difference on
available-for-salesecurities¥3,983

Subscription
rights tosharesTotal net
assets¥80¥85,788

Changes of items during period
Dividends of surplus(2,004)(2,004)--

Reversal of reserve for special
depreciation
Provision of general reserve
Profit for the year
Purchase of treasury shares
Net changes of items other thanshareholders’ equity
Total changes of items during
periodBalance as of March 31, 2017

-

-

5,392

5,392

(21)

(21)

(21)

1,264

20

1,284

(21)

3,366

1,264

20

4,650

¥(6,336)¥85,091¥5,247¥100¥90,439

31

Year ended March 31, 2016
(Yen in millions)Shareholders’ equity
Capital surplus
Capital stock
Balance as of March 31, 2015

Legal capitalsurplus¥14,494

Total capital
Surplus

Other capitalsurplus¥6,214¥261¥6,476(3 )(3 )Changes of items during period
Dividends of surplus
Reversal of reserve for special
depreciation
Provision of general reserve
Profit for the year
Purchase of treasury shares
Disposal of treasury shares
Net changes of items other thanshareholders’ equity
Total changes of items during
period

-

-

(3 )

(3 )

Balance as of March 31, 2016

¥14,494¥6,214¥258¥6,473

Shareholders’ equity
Retained earnings
Other retained earnings

Balance as of March 31, 2015

Legal retained
earnings

Reserve for
specialdepreciation

¥960

¥2

Total retained
Retainedearnings
General reserve earnings brought
forward¥54,980¥8,718¥64,661(2,004)(2,004 )1-

Changes of items during period
Dividends of surplus
Reversal of reserve for special
depreciation
Provision of general reserve

(1)
5,600

Profit for the year

(5,600)

-

4,414

4,414

Purchase of treasury shares
Disposal of treasury shares
Net changes of items other thanshareholders’ equity
Total changes of items during
periodBalance as of March 31, 2016

-

(1)

5,600

(3,187)

2,410

¥960

¥0

¥60,580¥5,530¥67,071

32

(Yen in millions)Shareholders’ equity
TreasurysharesBalance as of March 31, 2015¥(6,302)

Total
shareholders’equity¥79,330

Valuation and translation
adjustments
Valuation difference on
available-for-salesecurities¥6,499Subscription
rights tosharesTotal net
assets¥66¥85,896

Changes of items during period
Dividends of surplus(2,004)(2,004)--

Reversal of reserve for special
depreciation
Provision of general reserve
Profit for the year

-

-

4,414

4,414

Purchase of treasury shares

(22)

(22)

(22)

Disposal of treasury shares

10

7

7

Net changes of items other thanshareholders’ equity(2,516)14(2,502)

Total changes of items during
period

(12)

2,394

(2,516)

14(107)

Balance as of March 31, 2016¥(6,314)¥81,724¥3,983¥80¥85,788

33

Ⅴ. OUTLINE OF THE COMPANY● Company name: Nippon Seiki Co., Ltd.

● Established: December 24, 1946

● Common stock: 14,494,287,162 Yen● Number of employees: 1,709

As of March 31, 2017

● Main products and activities ( Nippon Seiki Group )・Automotive instruments
・Head-up displays ※・Motorcycle instruments
・Instruments for agricultural and construction
machines and boats
・Sensors for automobiles
・Control panels for office equipment
・Remote controllers for air conditioners andhousing and facility equipment
・PCB assemblies for amusements

・EMS of high-density mounting boards
・Automobile sales
・Aftermarket car products
・Liquid crystal display panels and modules
・Organic light emitting diode display panels andmodules・Resin material processing and sales・Freight transportation
・Software development
etc.

Note:
※ "Head-up displays (HUD)" use projection technology to display vehicle information on thewindshield.
● Offices and Factories
・Head office and Factory
2-34, Higashi-Zaoh 2-chome, Nagaoka-shi, Niigata, 940-8580 JAPAN・Takami Division
2-8, Higashi-Takami 2-chome, Nagaoka-shi, Niigata, 940-0006 JAPAN・NS Technical Center
2-8, Higashi-Takami 2-chome, Nagaoka-shi, Niigata, 940-0006 JAPAN・NS Tokyo Technical Center
27-3, Taito 2-chome, Taito-ku, Tokyo, 110-0016 JAPAN・Research & Development Center
190-1, Fujihashi 1-chome, Nagaoka-shi, Niigata, 940-2141 JAPAN・Offices
Utsunomiya, Tokyo, Hamamatsu, Nagoya, Suzuka, Osaka, Mizushima, Kumamoto, ShenZhen
・Branch OfficeHong Kong
Note:※1 NS Tokyo Technical Center was moved to Kita-ku, Tokyo Japan as of April 3, 2017.
※2 The decision to close Shenzhen Office was decided by the Board of Directors held on January 24.

34

Worldwide Network● Japan
・NS Advantech Co., Ltd. / Ojiya-shi, Niigata, Japan
・N.S. Electronics Co., Ltd. / Nagaoka-shi, Niigata, Japan・NS WEST Inc. / Shobara-shi, Hiroshima, Japan
・N.S.Computer Service Co., Ltd. / Nagaoka-shi, Niigata, Japan・Nissei Service Co., Ltd. / Nagaoka-shi, Niigata, Japan・Honda Car Sales Nagaoka Co., Ltd. / Nagaoka-shi, Niigata, Japan・Niigata Mazda Co., Ltd. / Niigata-shi, Niigata, Japan・Mazda Mobility Niigata Co., Ltd. / Niigata-shi, Niigata, Japan
・Car Station Niigata Co., Ltd. / Nagaoka-shi, Niigata, Japan・Nissei Kyusyoku Co., Ltd. / Nagaoka-shi, Niigata, Japan● The Americas
・New Sabina Industries, Inc. / Sabina, Ohio, U.S.A.
・N.S. International, Ltd. / Troy, Michigan, U.S.A.
・Nippon Seiki De Mexico S.A. De C.V. / Nuevo Leon, Mexico
・Nissei Advantech Mexico S.A. De C.V. / Nuevo Leon, Mexico
・Nissei Display Mexico S.A. De C.V. / Nuevo Leon, Mexico
・Nippon Seiki Do Brasil Ltda. / Manaus, Amazonas, Brazil
・NS Sao Paulo Componentes Automotivos Ltda. / Sao Paulo, Brazil● Europe
・UK-NSI Co., Ltd. / Redditch, Worcs, U.K.
・Nippon Seiki (Europe) B.V. / Amsterdam, Netherlands● Asia・Thai Nippon Seiki Co., Ltd. / Chonburi, Thailand
・Thai Matto NS Co., Ltd. / Chonburi, Thailand
・Nippon Seiki Consumer Products (Thailand) Co., Ltd. / Chonburi, Thailand
・PT. Indonesia Nippon Seiki / Banten, Indonesia
・Vietnam Nippon Seiki Co., Ltd. / Hanoi, Vietnam
・DaNang Nippon Seiki Co., Ltd. / DaNang city, Vietnam
・NS Instruments India Private Ltd. / Andhara Pradesh, India
・Hong Kong Nippon Seiki Co., Ltd. / Hong Kong, China
・Dongguan Nissei Electronics Co., Ltd. / Dongguan, Guangdong, China
・Shanghai Nissei Display System Co., Ltd. / Shanghai, China
・Wuhan Nissei Display System Co., Ltd. / Hubei, China
・Nissei Display Sales and Development Co., Ltd. / Shanghai, China
・Taiwan Nissei Display System Co., Ltd. / Taipei, Taiwan R.O.C.
・Changzhou Nissei Display System Co., Ltd. / Changzhou, Jiangsu, China
・Nantong NS Advantech Co., Ltd. / Nantong, Jiangsu, China
・Hong Kong Ek Chor Nissei Co., Ltd. / Hong Kong, China
・JNS Instruments Ltd. / Haryana, India
Notes:※1 NS Instruments India Private Ltd. is included in consolidation from the current fiscal year because it
becomes increasingly important.
※2 The decision to dissolve Changzhou Nissei Display System Co., Ltd. was decided by the Board of
Directors held on February 20, 2017.

35

36

Ⅵ．PROFILE OF THE GROUP COMPANIESAs of March 31, 2017

Nippon Seiki Group is composed of 35 subsidiaries and 1 affiliated company. The main business of the groupis responsible for the manufacture and sale of instruments for automobiles, motorcycles, agricultural /construction machines and boats, and the manufacture and sale of liquid crystal display panels and modules,
consumer-use products, automobiles and other products. NS Group also has businesses related to transportand research & development connected with the above products. NS Group is also involved in softwaredevelopment and other services.
Details of each company in the group and its main activities are as follows:● Consolidated subsidiaries
Name of Company

Voting rights
equity ratio

Main activities

Main trade withsubsidiaries

NS Advantech Co., Ltd.

100.0

N.S. Electronics Co., Ltd.

100.0

NS WEST Inc.

100.0

N.S.Computer Service Co.,Ltd.
Nissei Service Co., Ltd.

100.0
100.0

Manufacture of instruments for automotive,
motorcycle, agricultural/construction machines andboats / Plastic injection molding / Compounding,coloring of plastics, and trading
Manufacture of electronic sub-assemblies for
instruments and remote controllers and motorcycle
instruments
Manufacture and sales of automotive instruments
and peripheral systems
Software development and sales/ Office automationequipment sales / Computer services
Transportation / Advertising agency

Honda Car Sales Nagaoka
Co., Ltd.
Niigata Mazda Co., Ltd.

100.0

Honda car dealer

Selling and purchasing
products
Outsourcing softwaredevelopment
Outsourcing packing
and transporting
products
Purchasing cars

100.0

Mazda car dealer

Purchasing cars

Mazda Mobility Niigata Co.,Ltd.
Car Station Niigata Co., Ltd.

100.0

Car rental and car sharing

None

100.0

Second-hand car dealing and sales of cars

Purchasing cars

UK-NSI Co., Ltd.

100.0

Selling products

Nippon Seiki (Europe) B.V.

100.0

New Sabina Industries, Inc.

100.0

Manufacture of automotive and motorcycle
instruments
Sales of products manufactured by Nippon Seiki
Group in the European market
Manufacture of automotive instruments

N.S. International, Ltd.

100.0

Selling products

Nippon Seiki De Mexico S.A.
De C.V.

100.0

Nissei Advantech Mexico
S.A. De C.V.
Nissei Display Mexico S.A.
De C.V.
Nippon Seiki Do Brasil
Ltda.
NS Sao Paulo Componentes
Automotivos Ltda.
Thai Nippon Seiki Co., Ltd.

100.0
100.0

Sales of products manufactured by Nippon Seiki
Group in the North American market
Manufacture of electronic sub-assemblies forautomotive
instruments
andautomotive
instruments
Manufacture and sales of parts for automotive
instruments
Sales of automotive instruments

100.0

Manufacture and sales of motorcycle instruments

Selling products

100.0

Manufacture and sales of automotive instruments

Selling products

100.0

Thai Matto NS Co., Ltd.

83.5

Manufacture and sales of automotive andmotorcycle instruments
Compounding, and coloring of plastics, and trading

Selling and purchasing
products
None

Nippon Seiki Consumer
Products (Thailand) Co.,
Ltd.

80.0

Manufacture and sales of control panels for officeautomation equipment and remote controllers for
air conditioners and household equipment

Selling and purchasing
products

37

Purchasing products
and component parts

Purchasing products
and component parts

Selling products
Selling products

Selling products

None
None

Name of Company

Voting rights
equity ratio

PT. Indonesia Nippon Seiki

70.0

Vietnam Nippon Seiki Co.,Ltd.
DaNang Nippon Seiki Co.,Ltd.

Main trade withsubsidiaries

Main activities

Selling products

70.0

Manufacture and sales of automotive andmotorcycle instruments
Manufacture and sales of motorcycle instruments

100.0

Software development

Outsourcing softwaredevelopment

NS Instruments India
Private Ltd.

100.0

Manufacture and sales
motorcycle instruments

Hong Kong Nippon Seiki
Co., Ltd.

100.0

Sales of control panels for office automationequipment and remote controllers for air
conditioners and household equipment

Purchasing and selling
products

Dongguan Nissei Electronics
Co., Ltd.

100.0

Manufacture of control panels for office automationequipment and remote controllers for air
conditioners and household equipment

Selling products

Shanghai Nissei Display
System Co., Ltd.

80.0

Manufacture and sales
motorcycle instruments

Wuhan Nissei Display
system Co., Ltd.
Nissei Display Sales andDevelopment Co., Ltd.
Taiwan Nissei Display
System Co., Ltd.
Changzhou Nissei Display
System Co., Ltd.
Nantong NS Advantech Co.,Ltd.
Hong Kong Ek Chor
Nissei Co., Ltd.

75.0

Manufacture of automotive instruments

Selling products andpurchasing component
parts
Selling products

91.0

100.0

Sales of products manufactured by Nippon Seiki
Group in the Chinese market
Manufacture and sales of automotive andmotorcycle instruments
Manufacture and sales of components forautomotive and motorcycle instruments
Compounding, and coloring of plastics, and trading

100.0

Investment and holding company

80.0
100.0

of

of

automotive

automotive

and

and

Selling products

Selling products

Selling products
Selling products
Selling products
Purchasing component
parts
Investment in China
on behalf of the parent

Notes:※1 NS Instruments India Private Ltd. is included in consolidation from the current fiscal year because it
becomes increasingly important.
※2 The decision to dissolve Changzhou Nissei Display System Co., Ltd. was decided by the Board of
Directors held on February 20, 2017.
● Non-consolidated subsidiaries and the affiliated company are as follows:
・Non-consolidated subsidiaries
・Nissei Kyusyoku Co., Ltd.
・Affiliated company (which does not influence the consolidated financial statements)
・JNS Instruments Ltd.

38

Ⅶ. OWNERSHIP OF THE COMPANY’S SHARESAs of March 31, 2017

2,168 shareholders, in total, hold the company’s common shares.
Details of the issued shares and shareholders are as follows:・ Total number of authorized shares: 220,000,000 shares・ Total number of issued shares: 60,907,599 shares● Major shareholders(1,000 shares)
Shares owned(percentage ofshareholdings)

Name
Honda Motor Co., Ltd.

3,753 (6.56%)

BBH FOR FIDELITY LOW－PRICED STOCK FUND
(PRINCIPAL ALL SECTOR SUBPORTFOLIO)

2,834 (4.95%)

JP MORGAN CHASE BANK 385632

2,462 (4.30%)

Japan Trustee Services Bank, Ltd.

2,294 (4.01%)

The Master Trust Bank of Japan, Ltd.

1,958 (3.42%)

The Bank of Tokyo-Mitsubishi UFJ, Ltd.

1,779 (3.11%)

The Daishi Bank, Ltd.

1,568 (2.74%)

Shareholding association of Nippon Seiki Employees

1,257 (2.20%)

BBH FOR MATTHEWS JAPAN FUND

1,231 (2.15%)

Yamaha Motor Co., Ltd.

1,217 (2.13%)

Notes:※1 Percentage of shareholdings ratio is calculated by deducting 3,650,974 shares of treasury stocks fromtotal shares issued.
※2 Nippon Seiki holds treasury stocks (3,650,974 shares), but this has not been included in the above
major shareholders’ information.
● Distribution ratio by type of shareholder

Individuals etc.
22.52%● Distribution ratio by number of shares of total
CapitalBanks
30.70%

Under 1,000
shares0.38%

Securities
Companies
0.29%

Foreign
Corporationsetc.
32.78%

Other
Corporations
13.71%

1,000,000
shares andover
46.77%

From 1,000 to
4,999
shares
3.64%

From 5,000 to
9,999 shares
1.67%
From 10,000
to 99,999
shares
8.44%

From 100,000
to 999,999
shares39.10%

Note:※ Nippon Seiki has issued share acquisition rights in the form of stock options for a stock-based
compensation plan to the company’s directors.

39

Ⅷ．BOARD OF DIRECTORS AND AUDIT AND SUPERVISORY BOARD MEMBERS
As of June 28, 2017

Directors〈Name〉

Chairman and Representative Director

Shoji Nagai

Vice Chairman and Director
Hirotoshi Takada
President, Chief Executive Officer and Representative
Morito Sato
Director
Senior Managing Officer and Director
Makoto Okawa
Senior Managing Officer and Director

Koichi SatoManaging Officer and Director

Junichi Suzuki

Managing Officer and Director

Yuji Hirata

Outside Director

Sanji Arisawa

Outside Director

Takashi Sakikawa

Audit & Supervisory Board Members〈Name〉

Audit & Supervisory Board Member (Full-time)

Takashi Komagata

Audit & Supervisory Board Member (Full-time)

Masao Asano

Audit & Supervisory Board Member

Michiaki Miyajima

Audit & Supervisory Board Member

Etsuo Saiki40