FROM APRIL 1ST, 2017 TO MARCH 31 ST, 2018

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. Financial Section － Unaudited English translation from
Financial Summary

original Japanese-language statements
４

１．Consolidated Statement of Financial Position（１）Consolidated Financial Statements

５（２）Consolidated Statements of Income

７（３）Consolidated Statements of Comprehensive Income

８（４）Consolidated Statements of Changes in Equity

９（５）Consolidated Statements of Cash Flows

１１

Notes to Consolidated Financial Statements

１２

Ⅳ. OUTLINE OF THE COMPANY

５５Ⅴ. PROFILE OF THE GROUP COMPANIES

５８

Ⅵ. OWNERSHIP OF THE COMPANY’S SHARES

６０

Ⅶ. BOARD OF DIRECTORS AND AUDIT AND SUPERVISORY
BOARD MEMBERS

６１

Ⅰ. SUMMARY OF OPERATING RESULTS BY BUSINESSAs of March 31, 2018

Review of Operations● Instruments revenue
Revenue of instruments for automobiles in the Americas, Japan markets decreased while in Asia, Europe
the market increased. Instruments revenue for the year increased by 5.6% to ¥206,993 million, from theprevious fiscal year.

● Consumer-use products revenue
Revenue increased by 23.1% to ¥14,037 million from the previous fiscal year, mainly due to a increase inorders for control panels for PCB assemblies for amusement products and so on.

● Automobile revenue
Revenue of cars at our dealerships increased by 6.5% to ¥22,826 million from the previous fiscal year
mainly due to a increase in orders for new cars.

● Other businesses
Revenue of other products and services totaled ¥19,307 million, 12.6% increase from the previous fiscal
year, mainly due to an increase in orders of compound resins and so on.

As a result, the company’s consolidated business operations for this fiscal year, ending March 31, 2018,
resulted in revenue of ¥263,163 million, a increase of 7.0% from the previous fiscal year. At the same time,
operating profit for the year decreased by 7.0%, to ¥14,109 million, and profit attributable to owners of theparent increased by 9.3%, to ¥11,105 million, respectively.

● Consolidated revenue by business segment
2017(Yen in millions)

2018(Yen in millions)

Increase(Decrease)

Instruments for automobiles,
motorcycles, agricultural /construction machines andboats

195,990

206,993

5.6%

Consumer-use products

11,39814,037

23.1%

Automobiles

21,43522,826

6.5%

Other businesses

17,142

19,307

12.6%

Total

245,967

263,163

7.0%

Note:
※ NIPPON SEIKI CO., LTD. and its subsidiaries in Japan and overseas have adopted
International Financial Reporting Standards ("IFRS") and prepared the consolidated financial
statements from the fiscal year ending March 31, 2018.

1

Ⅱ. FINANCIAL HIGHLIGHTS

As of March 31, 2018

1. Consolidated Financial Highlights
1 – 1. Revenue

16/17

17.1

17/18

19.3

Yen in billions

21.4

11.3 7.1

22.8

0

35.1

41.0

14.0 8.6

245.9

153.7

157.2

50

100

150

263.1

200

250

Miscellaneous

Automobiles

Consumer-use Products

Other Instruments

Motorcycle Instruments

Automotive Instruments

1 – 2. Consolidated Profit attributable to owners of the parent

Yen in billions

10.1

16/17

11.1

17/18

0

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

Consolidated revenue for the fiscal year ending March 31, 2018, increased by 7.0% to ¥263,163 million,
operating profit decreased by 7.0% to ¥14,109 million, and profit attributable to owners of the parent for theyear increased by 9.3% to ¥11,105 million.

1 – 3. Consolidated Financial Highlights
2017

2018

Revenue (Yen in millions)

245,967

263,163

Operating profit (Yen in millions)

15,172

14,109Profit attributable to owners of parent(Yen in millions)

10,164

11,105

Basic profit per share ※177.51

193.94

Total assets (Yen in millions)

293,279

298,132

Total equity (Yen in millions)

169,969

176,281

Equity per share attributable toowners of the parent (Yen)2,873.05

2,975.34

Note:※ Basic profit per share is calculated by the weighted average number of shares of common stock
outstanding during the year.
2２. Non-Consolidated Financial Highlights

As of March 31, 2018
Yen in billions

2 – 1. Non-Consolidated Sales
14/15

7.0

8.7

8.0

15.0

15/16

8.1

8.7

6.1

15.1

76.5

114.7

16/17

6.7

8.8

6.8

15.4

79.4

117.4

17/18

6.7

9.4

8.0

0

17.8

20
Miscellaneous

65.3

104.3

120.7

78.6
40

60

Consumer-use Products

80

Other Instruments

100

Motorcycle Instruments

120

Automotive Instruments

Yen in billions

2 – 2. Non-Consolidated Profit for the year
7.43

14/15

4.41

15/16

5.39

16/17

4.55

17/18

0

1

2

3

4

5

6

7

8

Non-Consolidated sales for the fiscal year ending March 31, 2018, increased by 2.8% to ¥120,752 million,
ordinary income decreased by 36.4% to ¥6,530 million, and profit for the year decreased by 15.5% to ¥4,558
million.
2 – 3. Non-Consolidated Financial Highlights
2015

2016

2017

2018

Sales (Yen in millions)

104,376

114,703

117,415

120,752

Ordinary income (Yen in millions)11,107

5,485

10,266

6.530

Profit for the year (Yen in millions)

7,437

4,414

5,392

4,558

Earnings per share (Yen) ※129.86

77.09

94.18

79.60

Dividend per share (Yen)

33.00

35.00

35.00

42.00

Total assets (Yen in millions)

194,437

197,879

205,595

202,863

Net assets (Yen in millions)

85,89685,78890,43994,055

Common stock (Yen in millions)

14,494

14,494

14,494

14,494

44.1

43.3

43.9

46.3

Equity ratio (%)

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

3

Ⅲ. FINANCIAL SECTION － Unaudited English translation from original Japanese-language statements
Financial Summary
Accounting standards

IFRS (International Financial Reporting Standards)

Fiscal year end

April 1, 2016
(Transition date)

Revenue(Millions of yen)－

245,967

263,163

Profit before tax(Millions of yen)－

15,35615,854

Profit attributable to owners of the parent(Millions of yen)－

10,164

11,105Comprehensive income attributable to owners of the parent(Millions of yen)－

10,341

7,938

Equity attributable to owners of the parent(Millions of yen)

156,649

164,500

170,381

Total assets(Millions of yen)

296,127

293,279

298,132

Equity per share attributable to owners of the parent (Yen)

2,735.44

2,873.05

2,975.34

Basic profit per share
(Yen)

－

177.51

193.94

Diluted profit per share
(Yen)

－

177.27193.67

52.90

56.09

57.15

Return on equity attributable to owners of the parent
(%)

－

6.33

6.63

Price-to-earnings ratio(Times)

－

13.49

9.96

Net cash provided by operating activities(Millions of yen)－

16,504

22,522

Net cash used in investing activities(Millions of yen)－

(2,476)(13,263)

Net cash used in financing activities(Millions of yen)－

(16,388)(4,461)

Cash and cash equivalents at end of year
(Millions of yen)

41,54838,212

42,637

Number of employees

13,284

13,912

13,927

Equity attributable to owners of the parent ratio(%)

March 31, 2017

March 31, 2018

(Note)
1. NIPPON SEIKI CO., LTD. and its subsidiaries in Japan and overseas have adopted International Financial ReportingStandards ("IFRS") and prepared the consolidated financial statements from the fiscal year ending March 31, 2018.

2. Consumption tax and other taxes are not included in revenue.

4

1 【Consolidated Financial Statements】(1)【Consolidated Statement of Financial Position】(Unit: Millions of yen)

Notes

2016

2017

2018

AssetsCurrent assets
Cash and cash equivalents

7,27

41,54838,212

Trade and other current receivables

8,27

49,81648,313

42,63750,542Other current financial assets

9,27

17,85965,37862,212Inventories

10

38,92643,87840,674

Other current assets

3,577

6,279

5,957

Total current assets

151,729

202,062

202,024

Non-current assets
Property, plant and equipment

11,13

57,98160,19961,459Goodwill and intangible assets

12,13

4,029

4,055

5,229

Trade and other non-current receivables

8,27

57

40

16

Other non-current financial assets

9,27

78,77823,302

25,294

Deferred tax assets

14

2,737

2,751

3,078

Other non-current assets

813

868

1,028

Total non-current assets

144,398

91,217

96,108296,127

293,279

298,132

Total assets

5

(Unit: Millions of yen)
Notes

2016

2017

2018

Liabilities and equity
Liabilities
Current liabilities
Trade and other current payables

15,27

44,78044,16944,583

Short-term loans

16,27

61,74954,59846,815

Other current financial liabilities

9,27,28

112

95

123

Income tax payables

1,340

1,947

1,904

Short-term employee benefits

18

3,926

4,300

4,356

Provisions

17

3,036

1,720

4,188

Other current liabilities

1,007

940

1,128

Total current liabilities

114,637

110,240

101,948

13,116

Non-current liabilities
Long-term loans

16,27

8,587

7,452

Other non-current financial liabilities

9,27,28

175

204

319

Long-term employee benefits

18

2,966

3,129

3,388

Provisions

17

66

67

68

Deferred tax liabilities

14

2,892

1,733

2,595

Other non-current liabilities

431

483

415

Total non-current liabilities

15,12013,07019,903

129,758

123,310

121,851

Common stock

14,494

14,494

14,494

Capital surplus

6,553

6,110

6,054

Total liabilities
EquityRetained earnings

135,959

144,068

153,117

Treasury stock(6,314)(6,336)(6,325)

Other components of equity

5,956

6,164

3,040

156,649

164,500

170,381

9,719

5,468

5,899

166,369

169,969

176,281

296,127

293,279

298,132

Equity attributable to owners of the parent
Non-controlling interests
Total equity
Total liabilities and equity6

(2)【Consolidated Statement of Income】(Unit: Millions of yen)
Notes
Revenue

2017

21

Cost of revenue
Gross profit

2018245,967

263,163(198,311)(217,924)

47,65545,239Selling, general and administrative expenses

22(32,076)(30,380)

Other income

23

1,150

818

Other expenses

23(1,557)(1,567)

15,172

14,109Operating profit
Finance income

24

2,188

2,392

Finance costs

24(2,003)(648)

15,35615,854(4,159)(3,801)

11,197

12,052

Profit before tax
Income tax expense

14

Profit for the year
Profit attributable to:
Owners of the parent

10,164

11,105

Non-controlling interests

1,032

947

Profit for the year

11,197

12,05225

177.51

193.9425

177.27193.67

Earnings per share attributable to owners of theparent:Basic earnings per share(Yen)
Diluted earnings per share(Yen)7

(3)【Consolidated Statement of Comprehensive Income】(Unit: Millions of yen)
Notes

2017

Profit for the year
Other comprehensive income
Items that will not be reclassified to profit or loss, netof tax:Remeasurements of net defined benefit
liabilities(assets)
Total comprehensive income (loss) that will not bereclassified to profit or loss, net of tax
Items that may be reclassified to profit or loss, net oftax:
Changes in fair value measurements ofavailable-for-sale financial assets
Foreign currency translation adjustments

11,197

12,052

(35)

(34)

(35)

(34)

26

1,439

1,290

26

(1,359)(4,598)80(3,307)26

Total comprehensive income (loss) that may bereclassified to profit or loss, net of tax
Other comprehensive income (loss) for the year

2018

26

Total comprehensive income for the year45

(3,341)

11,242

8,710

10,341

7,938

900

771

11,242

8,710

Comprehensive income attributable to:
Owners of the parent
Non-controlling interests
Comprehensive income for the year8(4)【Consolidated Statement of Changes in Equity】
Year ended March 31, 2017

(Unit: Millions of yen)
Equity attributable to owners of the parent
Other components of equity
Notes

Commonstock

CapitalsurplusRetainedearnings

Gains (losses)
on financial
assets measured
at fair value
through othercomprehensive
incomeTreasurystockRemeasurementsof net defined
benefitliabilities(assets)

14,494

6,553

135,959(6,314)

5,956

－

－

－

10,164

－

－

－

－

－

－

－

1,439

(30)

－

－

10,164

－

1,439

(30)

20

－

－

(2,004)

－

－

－

31

－

20

－

－

－

－

－

－

－

(21)

－

－

－

－

－

－

－

－

－

(463)

－

－

－

－

－

－

(30)

－

－

30

Other

－

－

(20)

－

－

－

Total transactions with
Owners－(443)(2,056)

(21)

－

30

14,494

6,110

144,068(6,336)

7,396－

As of April 1, 2016
Comprehensive income
Profit for the year
Other comprehensive
income (loss)
Total comprehensive
income (loss)
Transactions with owners
Dividends paid
Share-based paymenttransactions
Purchase of treasury
Stock
Disposal of treasury stock
Acquisitions of noncontrolling interests
Transfer from othercomponents of equity
to retained earnings

As of March 31, 2017

Equity attributable to owners of the parent
Notes

Other components of equity
Foreigncurrencytranslation
adjustments

Total

Total equity
attributable toowners of theparentNon-controllinginterests

Total equity

－

5,956

156,649

9,719

166,369－－

10,164

1,032

11,197(1,231)

177

177

(131)

45

(1,231)

177

10,341

900

11,24220－－(2,004)(2,027)(4,032)

31

－

－

20

－

20

－

－

(21)

－

(21)

－

－

－

－

－

－

－

(463)

(3,124)(3,588)

－

30

－

－

－

Other

－

－

(20)

－

(20)

Total transactions withowners－30(2,490)(5,152)(7,643)(1,231)

6,164

164,500

5,468

169,969

As of April 1, 2016
Comprehensive income
Profit for the year
Other comprehensive
income (loss)
Total comprehensive
income (loss)
Transactions with owners
Dividends paid
Share-based paymenttransactions
Purchase of treasury
Stock
Disposal of treasury stock
Acquisitions of noncontrolling interests
Transfer from othercomponents of equity
to retained earnings

As of March 31, 20179For the year ended March 31, 2018

(Unit: Millions of yen)
Equity attributable to owners of the parent
Other components of equity

Notes

Commonstock

CapitalsurplusRetainedearnings

Gains (losses)
on financial
assets measured
at fair value
through othercomprehensive
incomeTreasurystockRemeasurementsof net defined
benefitliabilities(assets)

14,494

6,110

144,068(6,336)

7,396

－

－

－

11,105

－

－

－

－

－

－

－

1,290

(42)

－

－

11,105

－

1,290

(42)

20

－

－

(2,004)

－

－

－

31

－

18

－

－

－

－

－

－

－

(9)

－

－

－

(20)

－

21

－

－

－

(54)

－

－

－

－

－

－

(42)

－

－

42

Other

－

－

(9)

－

－

－

Total transactions withowners－(55)(2,056)11－

42

14,494

6,054

153,117(6,325)

8,687－

As of April 1, 2017
Comprehensive income
Profit for the year
Other comprehensive
income (loss)
Total comprehensive
income (loss)
Transactions with owners
Dividends paid
Share-based paymenttransactions
Purchase of treasury
stock
Disposal of treasury stock
Acquisitions of noncontrolling interests
Transfer from othercomponents of equity
to retained earnings

As of March 31, 2018

Equity attributable to owners of the parent
Notes

Other components of equity
Foreigncurrencytranslation
adjustments

Total

Total equity
attributable toowners of theparentNon-controllinginterests

Total equity(1,231)

6,164

164,500

5,468

169,969－－

11,105947

12,052(4,415)(3,166)(3,166)(175)(3,341)(4,415)(3,166)

7,938

772

8,710

20

－

－

(2,004)(233)(2,237)

31

－

－

18

－

18

－

－

(9)

－

(9)

－

－

1

－

1

－

－

(54)

(106)

(160)

－

42

－

－

－

Other

－

－

(9)

－

(9)

Total transactions withowners－42(2,057)(340)(2,398)(5,646)3,040

170,381

5,899

176,281

As of April 1, 2017
Comprehensive income
Profit for the year
Other comprehensive
income (loss)
Total comprehensive
income (loss)
Transactions with owners
Dividends paid
Share-based paymenttransactions
Purchase of treasury
stock
Disposal of treasury stock
Acquisitions of noncontrolling interests
Transfer from othercomponents of equity
to retained earnings

As of March 31, 201810

(5)【Consolidated Statement of Cash Flows】(Unit: Millions of yen)

Notes

2017

2018

Cash flows from operating activities:
Profit before tax

15,35615,854

Depreciation and amortization

8,461

9,142

812

53

(2,169)(2,392)

244

186

51

113

(3,041)(895)(5,897)

3,564

747

(257)

Increase (decrease) in provisions
Increase (decrease) in retirement
benefit liabilities
Foreign exchange losses(gains)

2,626(1,146)

143

250

1,021

(374)

Other, net

1,747

880

Subtotal

20,101

24,979Interest and dividends received

2,151

2,234

Interest paid

(314)

(244)

(5,421)(4,002)

Impairment loss
Interest and dividends income
Interest expense(Gain) loss on sale of property,
plant and equipment(Increase) decrease in trade and otherreceivables(Increase) decrease in inventories
Increase(decrease) in trade and otherpayablesIncome taxes paid
Other, net
Net cash provided by operating activities

(12)

(444)

16,504

22,522

9,734

(812)

(12,400)(13,017)

236

359

(59)

(66)

23

0

Cash flows from investing activities:(Increase)decrease in time deposits, net
Purchase of property, plant andequipment and intangible assets
Proceeds from sale of property, plantand equipment and intangible assets
Purchase of investment securities
Proceeds from sale of investment
securities
Increase in loans receivableCollection of loans
Other, net

(5)

(5)

9

281

(15)

(2)

Net cash used in investing activities(2,476)(13,263)

Cash flows from financing activities:(Decrease) increase in short-term loans,net
Proceeds from long-term loans(7,071)(7,535)5,000

10,000

Repayments of long-term loans(6,300)(4,400)

Repayments of lease obligations

(207)

(118)

Dividends paid to non-controlling interests(2,698)(244)

Net decrease (increase) in treasury stock

(10)

(45)

(2,004)(2,004)(3,095)(113)(16,388)(4,461)

(975)

(373)

(3,335)4,424

741,54838,212

7

38,212

42,637

Dividends paid to owners of the parent
Payments from changes in ownershipinterests in subsidiaries that do not resultin change in scope of consolidation
Net cash used in financing activities
Foreign currency translation adjustments
on cash and cash equivalents
Net increase (decrease) in cash andcash equivalents
Cash and cash equivalents at
beginning of year
Cash and cash equivalents at end of year

20

11

[Notes to Consolidated Financial Statements]
1. Reporting Entity
Nippon Seiki Co., Ltd. (hereinafter the “Company”) is a company incorporated in Japan. The consolidated financial statements
for the fiscal year ended March 31, 2018 consist of the financial statements of the Company and its consolidated subsidiaries(hereinafter the “Group”).
The Group’s primary businesses are business of instruments for automobiles, motorcycles, agricultural / construction machines,
boats, business of consumer-use products and business of automobile sales.
2. Basis of Preparation(1) Compliance with IFRS and matters related to first-time adoption
The consolidated financial statements of the Group are prepared in accordance with International Financial ReportingStandards (hereinafter “IFRS”) promulgated by the International Accounting Standards Board. Since the Company meets all
requirements of a “specified company applying designated International Financial Reporting Standards” stipulated in Article 1-2of the “Ordinance on Terminology, Forms, and Preparation Methods of Consolidated Financial Statements” (Ordinance of the
Ministry of Finance No. 28 of 1976), the Company prepares the consolidated financial statements in accordance with IFRS
under the provisions of Article 93 of said Ordinance.
The Group has adopted IFRS from the current fiscal year beginning on April 1, 2017 and the consolidated financial statements
for the current fiscal year are the first statements prepared in accordance with IFRS. The date of transitions to IFRS is April 1,
2016. The most recent consolidated financial statements prepared in accordance with Japanese generally accepted accounting
principles are those relating to the fiscal year ended March 31, 2017. The Group applied exemptions allowed in IFRS 1“First-time Adoption of International Financial Reporting Standards”. Reconciliation of the consolidated financial statements
which is required to disclose under IFRS is stated in Notes “33. First-time Adoption”.
The consolidated financial statements were approved by Morito Sato, President of the Company on June 26, 2018.
(2) Basis of measurement
As stated in Note “3. Significant Accounting Policies,” the consolidated financial statements of the Group have been prepared ona historical cost basis except for certain assets and liabilities, such as financial instruments measured at fair value.
(3) Functional and presentation currency
The consolidated financial statements of the Group are presented in Japanese yen which is the Company’s functional currency.
The units are in millions of yen and figures less than one million yen are rounded down to the nearest million yen.
3. Significant Accounting Policies
The following accounting policies are applied to all fiscal periods stated in the consolidated financial statements which include
the consolidated statement of financial position as of transition date to IFRS.
(1) Basis of consolidation
Subsidiaries are entities that are controlled by the Group. Control means that the Company has exposure or rights to variable
returns from its involvement with any investee and has the ability to affect those returns through its power over the investee.
The financial statements of subsidiaries are included in the scope of consolidation from the date when control is obtained by theGroup until the date when it is lost.
When the accounting policies adopted by subsidiaries differ from those adopted by the Company, the financial statements of therelevant subsidiaries are adjusted, when necessary. Intra-group balances of receivables and payables, intra-group transactions,and unrealized gains and losses arising from intra-group transactions are eliminated in preparing consolidated financial
statements.
Non-controlling interests in subsidiaries are recognized separately from the Group’s interests. Comprehensive income forsubsidiaries is allocated to the equity attributable to owners of the parent company and non-controlling interests even if the
non-controlling interests result in a deficit balance.

12(2) Business combinations
Business combinations are accounted for using the acquisition method. Consideration of acquisition in a business combination ismeasured as the sum of the fair value on the acquisition date of the assets transferred, the liabilities assumed, and equity
instruments issued by the Company in exchange for control over an acquiree. If the consideration of acquisition exceeds the fairvalue of identifiable assets and liabilities, the excess is recorded as goodwill. However, if the consideration of acquisition is lower
than the fair value of the identifiable assets and liabilities, the difference is recognized in profit or loss.
Changes in the ownership interests in subsidiaries without a loss of control are accounted for as equity transactions.
(3) Foreign currency translation
1) Foreign currency transactions
Each company of the Group defines its own functional currency as the currency of the primary economic environment in which it
operates, and measures transactions using its functional currency.
When each company prepares its standalone financial statements, transactions in currencies other than the functional currency
are translated using the exchange rate prevailing at the date of the transactions or an exchange rate that approximates
thereto.
Monetary assets and liabilities denominated in foreign currencies at the fiscal year-end are translated at the exchange rate
prevailing at the fiscal year-end.
Exchange differences arising from settlement or translation of accounts are basically recognized in profit or loss.
2) Financial statements of foreign operations
Assets and liabilities of foreign operations are translated into Japanese yen using the exchange rate at the fiscal year-end, andincome and expenses are translated at the average exchange rate for the fiscal year. However, if such an average exchange rate
is not considered as a reasonable approximation of the cumulative effect of the exchange rates at the transaction dates, theexchange rates at the transaction dates are used. Translation differences arising from the translation of financial statements offoreign operations are recognized in other comprehensive income. If control of foreign operations is lost, cumulative translationdifferences of foreign operations are recognized in profit or loss in the period of disposal.
The Group applied exemptions allowed in IFRS 1 “First-time Adoption of International Financial Reporting Standards” andcumulative translation differences that existed at the date of transition to IFRS were reclassified to retained earnings.
(4) Financial instruments
1) Financial assets(i) Initial recognition and measurement
Financial assets are initially recognized when the Group becomes a party to the contractual provisions of the instrument, andare classified into the following categories:(a) Financial assets at fair value through profit or loss
Financial assets that are either defined as held for trading, or are designated to measure at fair value through profit or loss on
initial recognition(b) Held-to-maturity investments
Non-derivative financial assets with fixed or determinable payments and fixed maturity date that the Group has the positive
intention and ability to hold to maturity(c) Loans and receivables
Non-derivative financial assets with fixed or determinable payments that are not quoted in an active market(d) Available-for-sale financial assets
Non-derivative financial assets designated as available for sale or any other financial assets that are not classified as (a), (b) and(c) above
All financial assets are recognized initially at fair value plus, in the case of financial assets not recorded at fair value throughprofit or loss, transaction costs that are attributable to the acquisition of the financial assets.

13

(ii) Subsequent measurement(a) Financial assets at fair value through profit or loss
Financial assets at fair value through profit or loss are measured at its fair value and any gain or loss resulting from changes infair value is recognized in profit or loss.
(b) Held-to-maturity investments
Held-to-maturity investments are measured at amortized cost using the effective interest method less any impairment loss.
(c) Loans and receivables
Loans and receivables are basically measured at amortized cost using the effective interest method less any impairment loss.
(d) Available-for-sale financial assets
Available-for-sale financial assets are measured at fair value as of the end of reporting period, and any gain and loss resulting
from changes in fair value is recognized in other comprehensive income. Differences arising from the translation of monetary
assets are recognized in profit or loss.
(iii) Impairment of financial assets
The Group assesses at each reporting date whether there is any objective evidence that a financial asset other than those at fairvalue through profit or loss is impaired. Impairment loss on financial assets is recognized when objective evidence shows that theloss event occurred after the initial recognition of assets, and when it is reasonably expected that the loss event has a negative
impact on the estimated future cash flows of the financial assets.
In case of available-for-sale financial assets, objective evidence includes a significant or prolonged decline in the fair value of theinvestment below its cost.
In case of specific type of financial assets such as trade receivables, the Group assesses whether there is any objective evidence ofimpairment individually for separately significant assets or collectively for assets that are not individually significant.
For financial assets carried at amortized cost, the amount of any impairment loss identified is measured as the difference
between the asset’s carrying amount and the present value of estimated future cash flows discounted at the financial asset’s
original effective interest rate. If, in a subsequent period, the amount of the impairment loss decreases, and the decrease can beobjectively related to an event occurring after the impairment was recognized, the impairment loss is reversed and re-recognizedin profit or loss. When there is evidence of impairment loss on available-for-sale financial assets, the cumulative loss is removed
from other comprehensive income and recognized in profit or loss.
Impairment losses on equity instruments classified as available for sale are not reversed through profit or loss in a subsequent
period. In case of debt instruments classified as available for sale, if, in a subsequent period, the fair value of the debt
instruments increases, and the increase can be objectively related to an event occurring after the impairment loss wasrecognized, the impairment loss is reversed and recognized in profit or loss.
(iv) Derecognition
The Group derecognizes financial assets only when contractual rights to the cash flows from the financial assets are expired, orwhen the Group transfers substantially all of the risks and economic value incidental to ownership of the financial assets.
On derecognition of a financial asset in its entirety, the difference between the carrying amount of the asset and theconsideration received or receivable including any cumulative gain or loss that had been recognized directly in equity isrecognized in profit or loss.
2) Financial liabilities(i) Initial recognition and measurement
Financial liabilities are classified, at initial recognition, when the Group becomes a party to the contractual provisions of the
instrument as follows:(a) Financial liabilities at fair value through profit or loss
Financial liabilities that are designated as such on initial recognition(b) Other financial liabilities including borrowings
Financial liabilities that are not designated at fair value through profit or loss.
Transaction costs directly attributable to the issuance of financial liabilities, other than financial liabilities measured at fairvalue through profit or loss, are deducted from the fair value of the financial liabilities.

14

(ii) Subsequent measurement(a) Financial liabilities at fair value through profit or loss
Financial liabilities at fair value through profit or loss are measured at fair value, and any gain or loss arising fromremeasurement is recognized in profit or loss.
(b) Other financial liabilities including borrowings
Other financial liabilities including borrowings are measured at amortized cost mainly using the effective interest method.
(iii) Derecognition
The Group derecognizes financial liabilities only when they are extinguished, i.e. when obligations specified in the contract are
discharged, cancelled, or expired. When a financial liability is derecognized, the difference between the carrying amount of thefinancial liability and the consideration paid or to be paid is recognized in profit or loss.
Financial assets and financial liabilities are offset and the net amount is reported in the consolidated statement of financial
position, if there is a currently enforceable legal right to offset the recognized amounts and if there is an intention of settlement
on a net basis, or of simultaneous realization of the assets and settlement of the liabilities.
3) Derivative financial instruments
Derivative financial instruments are initially recognized at fair value on the date when the derivative contract is entered into
and are subsequently remeasured at fair value.
Any gains or losses arising from changes in the fair value of derivatives are recognized directly to profit or loss except for thosethat qualify for hedge accounting.
The Group uses derivative financial instruments, such as forward currency contracts, options and interest rate swaps, to hedge
foreign currency risk and interest rate risk.
At the inception of the hedge, the Group formally designates and documents the hedging relationship and the Group’s risk
management objective and strategy for undertaking the hedge.
The Group doesn’t have any hedged item that meets requirements of hedge accounting.
(5) Cash and cash equivalents
Cash and cash equivalents consist of cash on hand, demand deposits, and short-term investments that are readily convertible
and subject to an insignificant risk of changes in value and are due within three months from the date of acquisition.
(6) Inventories
Inventories are measured at the lower of cost or net realizable value. The costs of inventories are determined based on theweighted average method. Net realizable value is the estimated selling price in the ordinary course of business less estimatedcosts of completion and estimated costs necessary to make the sale.
(7) Property, plant and equipment
Property, plant and equipment are measured at cost less any accumulated depreciation and accumulated impairment losses.
The cost of property, plant and equipment includes costs directly attributable to the acquisition, and restoration costs, etc.
Depreciation of each item of property, plant and equipment, other than land and construction in progress, is recorded using thestraight-line method over the estimated useful life of each item.
The main estimated useful lives are as follows:‐Buildings and structures

2 to 60 years‐Machinery, equipment and vehicles 2 to 15 years‐Tools, fixture and fixtures

2 to 25 years

The estimated useful lives, residual value, and depreciation method are reviewed every fiscal year and revised if necessary.

15(8) Intangible assets
1) Software
Software for internal use is measured at cost at initial recognition. Internal and external expenses incurred at the preparation
stage are recorded as expenses when they are incurred, and internal and external expenses incurred at the development stage
are recorded in intangible assets.
Expenses incurred after the introduction of the software, such as maintenance expenditure, are recorded as expenses when they
are incurred. Amortization is recorded using the straight-line method over the estimated useful life (mainly 5 years). The
estimated useful lives and amortization method are reviewed every fiscal year and revised if necessary.
2) Development cost
Expenditures arising from research activities to obtain new scientific or technical knowledge are recorded as expenses whenincurred.
Expenditures arising from development activities are recorded as intangible assets, only when all of the following conditions aremet:(a)The Group has the technical feasibility of completing the intangible asset so that it will be available for use or sale.
(b)The Group has its intention to use or sell the intangible asset.
(c)The Group has its ability to use or sell the intangible asset.
(d)Intangible asset will generate probable future economic benefits.
(e)The Group has the availability of adequate technical, financial and other resources to complete the development and to use
or sell the intangible asset.
(f)The Group has its ability to measure reliably the expenditure attributable to the intangible asset during its development.
Amortization is recorded using the straight-line method over the estimated useful life (5 years). The estimated useful lives andamortization method are reviewed every fiscal year and revised if necessary.
(9) Leases
Leases are classified as finance leases (lessee) when all the risks and rewards of ownership of an asset in an arrangement aresubstantially transferred to the Group, and all leases other than finance leases are classified as operating leases (lessee). Leased
assets under finance lease transactions (lessee) are initially recognized at the lower of the fair value of leased properties or thepresent value of minimum lease payments, which were determined at the inception of the lease. After the initial recognition, theleased assets are depreciated over the estimated useful life of the assets or the term of the lease, whichever is shorter, based on
the relevant accounting policies.
Lease payments are allocated to finance costs and payments of lease obligations in accordance with the interest method, andfinancial costs are recognized in the consolidated statement of income.
In operating lease transactions (lessee), lease payments are recognized as expenses in the consolidated statement of income
using the straight-line method over the lease term. However, if the time pattern of benefits is more appropriately presented, thelease payments are recognized as expenses in the period in which they are incurred.
Leases are classified as finance leases (lessor) when all the risks and rewards of ownership of an asset in an arrangement issubstantially transferred to the lessee.
Lease receivables under finance leases (lessor) are initially recognized at the net investment in the lease. After initial recognition,
the lease receivables are recognized in profit or loss in the period in which they are attributable after reflecting a constantperiodic rate of return on the net investment in the lease.
(10) Impairment of non-financial assets
The carrying amount of non-financial assets of the Company, excluding inventories and deferred tax assets, is evaluated every
fiscal year to determine whether there is any indication of impairment. If any such indication exists, the recoverable amount of
the non-financial assets is estimated. A recoverable amount of an asset or a cash-generating unit is the higher of its value in use
and its fair value less cost to sell. In calculating value in use, the estimated future cash flows are discounted to their present
value using a pre-tax discount rate that reflects the time value of money and risks specific to the assets. Assets that are notindividually tested for impairment are included in the smallest cash-generating unit that generates cash inflows that are largely
independent of the cash inflows from other assets or groups of assets. If, and only if, the recoverable amount of an asset or acash-generating unit is less than its carrying amount, the carrying amount of the asset shall be reduced to its recoverable
amount. That reduction is recognized as an impairment loss in profit or loss.

16

An impairment loss recognized related to a cash-generating unit is allocated first to reduce the carrying amount of any goodwill
allocated to the cash-generating unit, and then to reduce the carrying amount of other assets of the cash-generating unit on a
pro-rata basis.
An impairment loss recognized in prior years is evaluated every fiscal year to determine whether there is any indication thatsuch impairment may have decreased or may no longer exist.
An impairment loss is reversed if there is an indication of reversal of impairment and there has been a change in the estimatesused to determine the asset’s recoverable amount. An impairment loss is reversed up to the amount not exceeding the carrying
amount, net of depreciation or amortization, that would have been determined if no impairment had been recognized.
These estimates are based on the best available estimates by management. However, they may differ from actual results due tochanges in uncertain future economic conditions.
(11) Employee benefits
1) Post-employment benefits
The Group has defined benefit plans and defined contribution plans as post-employment benefit plans for employees.
The Group calculates the present value of defined benefit obligations and related current service cost using the projected unit
credit method.
The rate used to discount defined benefit obligations is basically determined by reference to market yields at the end of thereporting period on high quality corporate bonds.
Liabilities or assets for defined benefit plans are calculated by deducting the fair value of plan assets from the present value of
defined benefit obligations. Service cost and net interest on defined benefit liabilities (assets) are recognized in profit or loss in theaccounting period in which they are incurred. The Group recognizes the increase or decrease in obligations due to theremeasurement of benefit obligations and plan assets of defined benefit plans in other comprehensive income and then
immediately reclassifies them from other comprehensive income to retained earnings.
These estimates are based on the best available estimates by management. However, they may differ from actual results due tochanges in uncertain future economic conditions.
2) Short-term employee benefits
When an employee has rendered service to the Group during an accounting period, the Group recognizes the undiscounted
amount of short-term employee benefits expected to be paid in exchange for that service in profit or loss. The Group recognizes
the expected cost of profit-sharing and bonus payments as a liability when it has a present legal or constructive obligation to
make such payments as a result of past events, and a reliable estimate of the obligation can be made.
These estimates are based on the best available estimates by management. However, they may differ from actual results due tochanges in uncertain future economic conditions.
(12) Provisions
Provisions are recognized when the Group has present legal and constructive obligations as a result of past events, and when it
is probable that outflows of economic resources embodying economic benefits will be required to settle the obligations, andreliable estimates of the amount of such obligations can be made. When the effect of the time value of money is material,
provisions are calculated by discounting estimated future cash flows to the present value using a pre-tax discount rate thatreflects the time value of money and the risks specific to the liabilities.
These estimates are based on the latest information from customers, previous years’ results and the best available estimates bymanagement. However, they may differ from actual results due to changes in uncertain future economic conditions.
The main provisions are as follows:
1) Provision for compensation for products
The provision for compensation for products is recorded in order to deal with market claim.
2) 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.
(13) Treasury stock
Treasury stock is measured at cost and recognized as a deduction from equity. When the Group sells the treasury stock, thedifference between the carrying amount and the consideration received from the sale is recognized as capital surplus.

17

(14) Revenue
Revenue is measured at the fair value of the consideration received or receivable for goods sold and services rendered lessdiscounts, rebates, and sales-related taxes.
1) Sales of goods
Revenue from sales of goods is recognized when all the following conditions are satisfied:(a) The Group has transferred to the buyer the significant risks and economic value incidental to ownership of the goods.
(b) The Group retains neither continuing managerial involvement to the degree usually associated with ownership nor effective
control over the goods sold;(c) The amount of revenue can be measured reliably.
(d) It is probable that the economic benefits associated with the transaction will flow to the Group.
(e) The costs incurred or to be incurred in respect of the transaction can be measured reliably.
2) Rendering of services
When the outcome of a transaction involving the rendering of services can be estimated reliably, revenue associated with thetransaction is recognized by reference to the stage of completion of the transaction at the end of the reporting period.
The outcome of a transaction can be estimated reliably when all the following conditions are satisfied:(a) The amount of revenue can be measured reliably.
(b) It is probable that the economic benefits associated with the transaction will flow to the Group.
(c) The stage of completion of the transaction at the end of the reporting period can be measured reliably.
(d) The costs incurred for the transaction and the costs to complete the transaction can be measured reliably.
3) Interest income and dividends
Revenue arising from the use of the Group’s assets yielding interest and dividends by others is recognized when all the following
conditions are satisfied:(a)It is probable that the economic benefits associated with the transaction will flow to the Group.
(b)The amount of revenue can be measured reliably.
(15) Income taxes
Income taxes comprise current taxes and deferred taxes. These are recognized in profit or loss, except for items that relate tobusiness combinations and items recognized directly in equity or in other comprehensive income.
Current taxes are measured at the amount expected to be paid to or refunded from the taxation authorities. The tax amount iscalculated in accordance with the tax laws and tax rates that have been enacted or substantially enacted by the end of the fiscal
year in the country where the Group conducts business activities and earns taxable income.
Deferred taxes are recognized on temporary differences between the carrying amount of assets and liabilities on statement offinancial position as at reporting date and such amount on a tax law basis, and unused tax losses and unused tax credits.
Deferred tax liabilities are, in principle, recognized for all taxable temporary differences, and deferred tax assets are recognizedfor deductible temporary differences, unused tax losses and unused tax credits, to the extent that it is probable that they can beutilized for future taxable income.
The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced for the amount that it isprobable that sufficient taxable income will no longer be available to allow all or part of the deferred tax assets to be recovered.
Unrecognized deferred tax assets are re-evaluated at the end of each reporting period and are recognized to the extent that it has
become probable that future taxable income will be available to allow the deferred tax assets to be recovered.
Deferred tax assets and liabilities are measured in accordance with tax laws and tax rates that are expected to apply in the
period in which the assets are realized or the liabilities are settled, based on the tax laws and tax rates that have been enacted or
substantially enacted by the end of reporting period.
Deferred tax assets and liabilities are offset when there is a legally enforceable right to set off current tax assets against current
tax liabilities and when they relate to income taxes levied on the same entity by the same tax authority.
These estimates are based on the best available estimates by management. However, they may differ from actual results due tochanges in uncertain future economic conditions.

18

4. Significant Accounting Estimates and Judgments
The preparation of the consolidated financial statements requires management to make judgments, estimates, and assumptions
that affect the application of accounting policies and the amounts of assets, liabilities, income and expenses. However, actual
results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. The effects of changes in accounting estimates arerecognized in the accounting period in which the estimates are changed and in future accounting periods affected by thechanges.
The estimates and judgments made by management that may have significant effects on the amounts in the consolidated
financial statements are as follows:(1)

Impairment of non-financial assets:

Note 3 (10) “Impairment of non-financial assets”(2)

Measurement of defined benefit obligation: Note 3 (11) "Employee benefits"(3)

Provision for compensation for products:

Note 3 (12) “Provisions”(4)

Recoverability of deferred tax assets:

Note 3 (15) "Income taxes"

5. Accounting Standards and Interpretations Issued but Not Yet Adopted
The new or amended standards and interpretations that have been issued up to the date of approval of the consolidated financial
statements, which are not early adopted by the Group, are mainly as follows.
IFRS

Title

IFRS 15

Revenue from Contracts with
Customers
Financial Instruments(Amended in July 2014)

IFRS 9IFRS 16

LeasesMandatory effective date
(Fiscal year beginning on
or after)January 1, 2018
January 1, 2018
January 1, 2019Year of adoption by
the Group
Fiscal year ending
March 31, 2019
Fiscal year ending
March 31, 2019
Fiscal year ending
March 31, 2020

Outline of new /amended standards
Clarification of framework forrevenue recognition
Classification, measurement andrecognition of financial instruments,
etc.
Amendment of accounting for lease
contract

IFRS15, “Revenue from Contracts with Customers”, specifies recognition of revenue and the Group shall apply this standard to
fiscal year beginning on April 1, 2018. This new standard replaces current IAS 18, “Revenue”, and IAS11,“Construction

Contracts”. The Group is estimating the impact by adoption of the standard and it is assumed that the impact to theconsolidated financial statements is insignificant, although it may result in changes in revenue from contracts with automobile
sales.
IFRS9, “Financial Instruments”, replaces current IAS 39, “Recognition and Measurement”. Main changes by adoption of thisstandard are as follows:(1) Changes in classification categories of financial instruments(2) Changes of treatment related to valuation difference in subsequent measurement of financial instruments(3) Application of expected credit loss impairment model to receivables, etc.
(4) Simplification of requirements relating to hedge effectiveness testing in general hedge accounting(5) Changes in cost of hedging
The Group assumes that there is no significant impact to the consolidated financial statements by applying this standard.
Main changes by adoption of IFRS 16, “Leases”, are as follows:(1) Current IAS 17, “Leases”, requires an entity to provide the information of obligation of payment relating to operating leasetransactions in the financial statements in the Notes section, while IFRS 16 requires to recognize right to use lease asset andobligation of lease payment as right-of-use asset and lease liability in the consolidated statement of financial position.
(2) Depreciation and interest expenses instead of rent expenses are recognized in the consolidated statement of Income. The
Group is investigating any impact including the impact to financial statements by applying IFRS 16.

19

6. Segment Information(1) Overview of reportable segments
The reportable segments of the Group are those units for which separate financial information is available, and which arereviewed regularly by the Group’s management in order to determine allocation of resources and to assess business performance.
The segments are not aggregated for reporting purposes.
The Group has business units categorized by product and service, and each business unit plans comprehensive businessstrategies and operates business activities domestically and internationally.
Therefore, the Group has reportable segments, such as instruments, consumer-use products, and automobile sales based on
business units categorized by products and services.
In instruments business, the Group manufactures and sells instruments for automobiles, head-up displays, instruments formotorcycles/agricultural / construction machines and boats, and various sensors. In consumer-use products business, the Group
manufactures and sells operating panels for office automation (OA) and information equipment, controllers for air-conditioning
and household equipment, assemblies for factory automation (FA) and amusement units, as well as high-density mounting
boards. In automobile sales business, the Group is engaged in the sale of new and used automobiles, as well as the provision of
car inspection and maintenance services.
(2)Revenue, segment profit or loss and other items by reportable segment
Revenue, profit or loss and other items of the Group’s reportable segments are as follows:
For the year ended March 31, 2017
Reportable segments

Revenue
Customers
Intersegment
Total revenue
Segment profit (loss)
Finance income
Finance costs
Profit before tax
Segment assets
Other items
Depreciation andamortization
Impairment loss
Capital expenditure

Others

Total(Unit: Millions of yen)
Total onAdjustment
consolidated(Note 2)statement ofincomeInstruments

Consumer-use
products

Automobile
sales

195,990

11,39821,435

228,824

17,142245,967－

245,967

34
228,859
16,263

16,67933,821(833)

16,713
262,681
15,430(16,713)(16,713)(257)

245,967
15,172

Total(Note 1)－－

195,990
15,188

11,39818

34
21,469
1,055

－
－
－

－
－
－

－
－
－

－
－
－

－
－
－

－
－
－

－
－
－

(2,003)203,892

9,858

12,070225,821

16,279242,101

51,178293,279

6,858

240

502

7,601

761

8,363

97

8,461

－

812
1,171

812
12,320－383

812
12,703

－

9,710

－

285

－

1,153

11,148－2,188
15,356(Note)
1. “Others” is the business segment that is not categorized as reportable segment and includes production and sales ofliquid crystal display panels and modules, transportation of cargoes, development and sales of software, entrusted
accounting business and the processing and sales of resin materials etc.
2. The breakdown of “Adjustment” is as follows:(1) Segment profit (loss) totaling (257) million is elimination of inter-segment transactions, etc.
(2) Corporate assets totaling 51,677 million are included in adjustment of segment assets. Main corporate assets are
the Company`s cash, deposits and investment securities.
(3) Adjustment totaling 97 million in depreciation and amortization is for corporate assets.
(4) Capital expenditure totaling 383 million is investment to corporate assets.

20

For the year ended March 31, 2018
(Unit: Millions of yen)
Reportable segments

Others

Total

Adjustment(Note 2)

Total onconsolidated
statement ofincomeInstruments

Consumer-use
products

Automobile
sales

206,993

14,037

22,826

243,856

19,307263,163－

263,163－－

206,993
11,30814,037(532)

64
22,8901,140

64243,921
11,916

17,39336,7002,701

17,457
280,621
14,617(17,457)(17,457)(507)

263,163
14,109

－
－
－

－
－
－

－
－
－

－
－
－

－
－
－

－
－
－

－
－
－

15,854

198,484

11,224

12,471

222,181

19,500241,681

56,451

298,132

7,577

317

511

8,406

661

9,068

74

9,142

－

53
327

843

－

53
10,923

1,149

－

53
12,072

222－

53
12,295

Revenue
Customers
Intersegment
Total revenue
Segment profit (loss)
Finance income
Finance costs
Profit before tax
Segment assets
Other items
Depreciation andamortization
Impairment loss
Capital expenditure

9,752

Total

(Note 1)

－
2,392
(648)

(Note)
1. “Others” is the business segment that is not categorized as reportable segment and includes production and sales ofliquid crystal display panels and modules, transportation of cargoes, development and sales of software, entrusted
accounting business and the processing and sales of resin materials etc.
2. The breakdown of “Adjustment” is as follows:(1) Segment profit (loss) totaling (507) million is elimination of inter-segment transactions, etc.
(2) Corporate assets totaling 56,405 million are included in adjustment of segment assets. Main corporate assets are
the Company`s cash, deposits and investment securities.
(3) Adjustment totaling 74 million in depreciation and amortization is for corporate assets.
(4) Capital expenditure totaling 222 million is investment to corporate assets.

(3) Information by region
Revenue from customers and non-current assets (excluding financial assets, deferred tax assets, retirement benefit assets andrights arising under insurance contracts) of the Group by geographical region are as follows. Revenue from customers isclassified by country and area based on geographic location.
1) Revenue from customers(Unit: Millions of yen)
2017
Japan

Americas97,121

62,948Europe21,304

Asia

Total

64,592245,967(Unit: Millions of yen)
2018
Japan

Americas90,08555,231

Europe25,221

Asia

Total

92,624

263,1632) Non-current assets(Unit: Millions of yen)
April 1, 2016 (Transition date)Japan
38,719Americas8,631Europe
1,639

Asia

Total

13,83562,825(Unit: Millions of yen)
2017
Japan
40,676

Americas8,883Europe
1,753

Asia

Total

13,81021

65,123

(Unit: Millions of yen)
2018
Japan

Americas43,817

Europe

8,212

Asia

2,012

Total

13,67667,718(4) Information about major customers
Revenue from an individual customer accounted for more than 10 % of consolidated revenue is as follows:
Name of customer

Segment

2017(Unit: Millions of yen)
2018

Honda Motor Corporation and its subsidiaries

Instruments

51,45659,236

General Motors Company and its subsidiaries

Instruments

26,151

29,189

7. Cash and Cash Equivalents
The breakdown of cash and cash equivalents is as follows:(Unit: Millions of yen)

April 1, 20162017

(Transition date)Cash and deposits

41,5482018
38,212

42,637The balance of “cash and cash equivalents” on the consolidated statement of financial position is consistent with “cash and cash
equivalents” on the consolidated statement of cash flows.
8. Trade and Other Receivables
The breakdown of trade and other receivables is as follows:(Unit: Millions of yen)

April 1, 20162017

(Transition date)2018

Trade receivables

37,64338,23337.927

Accounts receivable - other

6,711

4,020

5,561

Note and electronically recorded monetary claims

5,598

Other

6,358

90

7,317

73

26

Allowance for doubtful accounts

(169)

(332)

(274)

Total

49,87348,35350,559Current

49,81648,31350,542

Total

49,87348,35350,559Non-current

57

40

16

9. Other Financial Assets and Other Financial Liabilities(1) The breakdown of other financial assets(Unit: Millions of yen)
April 1, 20162017

(Transition date)

2018

Other financial assets

Financial assets measured at fair value through

－

135

37

Available-for-sale financial assets

19,654

21,712

23,589Total

96,63888,68087,507

Current

17,85965,37862,212

Total

96,63888,68087,507

profit or loss

Loans and receivables

76,983

Non-current

78,77822

66,832

23,302

63,88025,294

(2) The breakdown of other financial liabilities(Unit: Millions of yen)
April 1, 20162017

(Transition date)
Other Financial liabilities

2018

Financial liabilities measured at amortized cost

288

299

442

Total

288

299

442

Current

112
175

204

95

123

Total

288

299

442

Non-current

319

10. Inventories
The breakdown of inventories is as follows:(Unit: Millions of yen)
April 1, 20162017

(Transition date)2018

Merchandise and finished goods

13,045

16,751

15,840Raw materials and supplies

22,321

23,104

20,763

Total

38,92643,87840,674Work in process

3,559

4,022

4,069

1. Inventories recognized as an expense account for a large part of cost of revenue.
2. The amounts of write-down of inventories to net realizable value recognized as cost of revenue are as follows:(Unit: Millions of yen)
2017

2018

The amounts of write-down

396

158

11. Property, Plant and Equipment(1) Schedule of property, plant and equipment
The breakdown and schedule of property, plant and equipment are as follows:
1) Acquisition costs(Unit: Millions of yen)
Buildings

Structures

Machineryandequipment

VehiclesTools,

Construction

fixture andfixtures

Land

Total

in
progress

As of April 1, 2016

42,203

3,358

58,0191,822

39,761

18,041

2,257

165,465

Acquisition (Note)

1,503

160

4,485

803

3,297

577

7,402

18,229

(411)

(43)

(793)

(97)

(1,448)(1,060)(1)(3,856)

－

－

－

－

－

－

(6,477)(6,477)

(337)

(0)

(1,155)

(5)

(229)

(15)

(37)

(1,781)

Sales or

disposal

Transfer(Note)

Foreign currencytranslation

adjustments
Other

(2)

－

(68)

(486)

(53)

－

(66)

(676)

As of March 31, 2017

42,9553,474

60,4872,036

41,327

17,542

3,077

170,901

Acquisition (Note)

1,889

195

4,585

783

3,176

147

6,403

17,180

(632)

(38)

(1,676)(92)(1,313)(28)(1)(3,782)

－

－

－

－

－

－

(6,716)(6,716)

(132)

(9)

153

(9)

(191)

(18)

8

(200)

Sales or

disposal

Transfer(Note)

Foreign currencytranslation

adjustments
Other

As of March 31, 2018

(18)

－

(31)

(535)

39

(20)

(100)

(667)

44,061

3,621

63,5192,182

43,037

17,622

2,670

176,715(Note) The reduction of “Transfer” is transferred to the increase of “acquisition” in each asset.

232) Accumulated depreciation and accumulated impairment loss
(Unit: Millions of yen)
Buildings

Machinery

Structures

andTools, fixture

VehiclesequipmentLand

and fixtures

Total

As of April 1, 2016

(26,223)(2,797)(43,141)(944)(32,428)(1,947)(107,483)

Depreciation(1,347),(88)(3,047)(363)(2,584)－(7,431)

Impairment loss

(29)

Sales or disposal

(3)

377

Foreign currency

40

178

translation adjustments
Other

(385)

3

(9)

－

(173)

(601)

715

308

1,343

1,059

3,845

681

10

144

－

1,019

2

－

(12)

(5)

(35)

－

(51)

As of March 31, 2017(27,041)(2,844)(45,190)(994)(33,570)(1,061)(110,702)

Depreciation(1,230)(108)(3,435)(318)(2,651)

－

－

466

36

1,430

86

(42)

1,261

－
－
－

(7,743)

－

(25)

8

(256)

6

178

－

(87)

Impairment loss

(0)

Sales or disposal

Foreign currencytranslation adjustments
Other

As of March 31, 2018

(43)

3,281

(18)

(0)

(23)

225

(142)

－

40

(27,850)(2,908)(47,475)(993)(34,967)(1,061)(115,255)

Depreciation of property, plant and equipment is included in “cost of revenue” and “selling, general and administrative expenses”
in the consolidated statement of income. The information of impairment loss is disclosed in Note “13 Impairment Loss.”3) Carrying amount(Unit: Millions of yen)
Buildings

Structures

Machineryandequipment

Tools,

VehiclesConstruction

fixture andLand

fixturesTotal

inprogress

As of April 1, 2016

15,980561

14,877877

7,332

16,094

2,257

57,981

As of March 31, 201715,914629

15,297

1,042

7,756

16,481

3,077

60,199As of March 31, 201816,211713

16,043

1,189

8,070

16,561

2,670

61,459Carrying amount of leased assets under finance leases including in each property, plant and equipment is as follow:(Unit: Millions of yen)
April 1, 20162017

(Transition date)
Machinery and equipment

89

2018
78

71

Tools, fixture and fixtures

164

171

281

Total

253

249

353

(2) Carrying amount of assets pledged as collateral for funding and guarantee transaction as at transition date, March 31, 2017
and March 31, 2018 is as follows:(Unit: Millions of yen)
April 1, 20162017

(Transition date)
Property, plant and equipment

567

24

2018
506

475

12. Goodwill and Intangible Assets
The breakdown and schedule of intangible assets are as follows:(1) Acquisition costs(Unit: Millions of yen)
Development

Software

Software in

cost

Other

progress

Total

As of April 1, 2016

6,628

1,415

871

11

8,927

Acquisition

1,125

－

194

0

1,320

－
－
－

－

－

－
－
－
－
－

Increase arising from internal development

70－

Sales or disposal

(4)

70

(4)

Transfer

－

Other

3

－
－
－
－

As of March 31, 2017

7,752

1,486

1,065

12

10,316

Acquisition (Note)

1,358

－

1,314

2,672

12,843Foreign currency translation adjustments(0)

Increase arising from internal development

－
－
－

(13)

9

(108)

－

－
－
－
－
－
－

9,086

1,378

2,365

12

0

－

Sales or disposal(18)

Foreign currency translation adjustments(14)

Transfer (Note)

－

Other

As of March 31, 2018

0

－
－
(0)

(0)
3

0

(18)
(13)
(15)
(98)

(Note) Acquisition totaling 2,672 million includes transfer totaling 13 million.
(2) Accumulated depreciation and accumulated impairment loss
(Unit: Millions of yen)
Development

Software
As of April 1, 2016

Total

(418)

(6)

(4,897)

(899)

(253)

(0)

(1,153)

－
－
－
－

(210)

(11)

－
－
－
－

(5,582)

(671)

(6)

(6,260)

(926)

(345)

(0)

(1,272)

13

－
－
－

(10)

(206)

108

－
－
－
－

(6,696)

(909)

(7)

(7,613)

Impairment loss

(210)

Sales or disposal

4

Foreign currency translation adjustments

8

Other

Amortization

Impairment loss

(10)

Sales or disposal

Foreign currency translation adjustments

15

Other

As of March 31, 2018

Other

(4,472)

Amortization

As of March 31, 2017

cost

4
8

(11)

13
15

(98)

1. The amortization of intangible assets is included in “cost of revenue” and “selling, general and administrative expenses” in the
consolidated statement of income.
2. The amount of development expenses recognized in profit or loss during the fiscal years ended March 31, 2017 and 2018 is¥4,404 million and ¥4,147 million respectively and is included in “cost of revenue” and “selling, general and administrative
expenses” in the consolidated statement of income.
(3) Carrying amount(Unit: Millions of yen)
SoftwareDevelopment
cost

Software in
progress

Other

Total

As of April 1, 2016

2,155

997

871

5

4,029

As of March 31, 2017

2,170

814

1,065

5

4,055

As of March 31, 2018

2,390

468

2,365

5

5,229

25

13. Impairment Loss
(1) Property, plant and equipment
The Group recognized an impairment loss for the following assets:
For the fiscal year ended March 31, 2017
(Unit: Millions of yen)Segment
OthersPurpose of use
Production of liquid crystal display
panels and modules

Type of assets

AmountBuildings and structures, machinery, equipment

601

and vehicles, tools, fixture and fixtures, land

Assets are grouped by reporting segment. Due to environment changes to business of liquid crystal displays and modules
categorized in “Others”, the Group reduced the carrying amount of the assets to recoverable amount and the reduction wasrecognized as an impairment loss in profit or loss. Recoverable amount of the assets was measured by net sale prices or value in
use. The Group determined net sale prices primarily by making reasonable adjustments to appraisal values in accordance withthe “Real Estate Appraisal Standards”. Recoverable amount based on value in use was appraised at 0 because future cash flows
are negative.
For the fiscal year ended March 31, 2018
(Unit: Millions of yen)Segment
Consumer-use
products

Purpose of use
Equipment for design and development,
etc.

Type of assets

AmountBuildings and structures, tools, fixture and fixtures

43

Assets are grouped by reporting segment. Due to environment changes to business of Consumer-use products, the Group
reduced the carrying amount of the assets to recoverable amount and the reduction was recognized as an impairment loss in
profit or loss. Recoverable amount of the assets was measured by value in use. Recoverable amount based on value in use wasappraised at 0 because future cash flows are negative.
(2) Intangible assets
The Group recognized an impairment loss for the following assets:
For the fiscal year ended March 31, 2017
(Unit: Millions of yen)Segment
OthersPurpose of use
Production of liquid crystal display
panels and modules

Type of assets

AmountSoftware210

Due to environment changes to business of liquid crystal displays and modules categorized in “Others”, the Group reduced thecarrying amount of the assets to recoverable amount and the reduction was recognized as an impairment loss in profit or loss.
Recoverable amount of the assets was measured by value in use. Recoverable amount based on value in use was appraised at 0
because future cash flows are negative.
For the fiscal year ended March 31, 2018
(Unit: Millions of yen)Segment
Consumer-use
products

Purpose of use
Equipment for design and development,
etc.

Type of assets
SoftwareAmount10

Due to environment changes to Consumer-use products business, the Group reduced the carrying amount of the assets torecoverable amount and the reduction was recognized as an impairment loss in profit or loss. Recoverable amount of the assets
was measured by value in use. Recoverable amount based on value in use was appraised at 0 because future cash flows arenegative.

26

14. Income Taxes(1) Deferred tax assets and deferred tax liabilities
The breakdown and schedule of deferred tax assets and deferred tax liabilities are as follows:
For the fiscal year ended March 31, 2017
(Unit: Millions of yen)
Recognized in

As of April 1, 2016
Deferred tax assets
Inventories

Recognizedin otherprofit or loss

As of March 31, 2017

comprehensive
income

1,568

13

－

35

7

2,801

408

－

3,209

379

(76)
745
405

－
－
－

1,195

7,286

1,531

7

8,826

1,786

(261)

－

1,524

2,617

－

549

3,167

2,253

91

－

2,345

Other

783

(12)

－

770

Total

7,441

(182)

549

7,807

Employees’ salaries

Property, plant and equipment andintangible assets

Accrued expenses
Provisions
Other

Total

1,972

450
114

1,582
2,015

302
520

Deferred tax liabilities

Property, plant and equipment andintangible assets

Available-for-sale financial assets

Undistributed retained earnings of foreignsubsidiaries

For the fiscal year ended March 31, 2018
(Unit: Millions of yen)
Recognized in

As of April 1, 2017
Deferred tax assets
Inventories

Employees’ salaries

Property, plant and equipment andintangible assets

Accrued expenses

Recognizedin otherprofit or loss

As of March 31, 2018

comprehensive
income

1,582

(315)

－

(130)

16

3,209

455

－

3,664

78

2,015

1,901

Provisions

1,195

(315)

381

(496)

－
－
－

Total

8,826

(725)

16

8,117

1,524

(560)

－

964

3,167

－

588

3,755

2,345

(78)

－

2,266

Other

770

(123)

－

647

Total

7,807

(762)

588

7,633

Other

302

1,266

520

880
23

Deferred tax liabilities

Property, plant and equipment andintangible assets

Available-for-sale financial assets

Undistributed retained earnings of foreignsubsidiaries27

(2) Unrecognized deferred tax assets
The amount of deductible temporary differences and unused tax losses, for which no deferred tax assets were recognized, is asfollows. The amount of deductible temporary differences and unused tax losses is described as income basis amount.
(Unit: Millions of yen)
April 1, 20162017

(Transition date)
Deductible temporary differences

826

Unused tax losses

2018
555

1,038

609

1,467

540

Unused tax losses for which no deferred tax assets are recognized expire as follows:(Unit: Millions of yen)
April 1, 20162017

(Transition date)
1st year36

2nd year56

56

3rd year

Total

－
1

－
1

－

5th year and thereafter

32

32

32

4th year

2018

－

912

1,376

506

1,038

1,467

540

(3) Income taxes
The breakdown of income tax expense is as follows:(Unit: Millions of yen)
2017

2018

Current income tax(5,909)(3,728)

Total(4,159)(3,801)

Deferred income tax

1,749

(73)

(4) Reconciliation between the applicable and effective tax rate
The reconciliation between the applicable tax rate and the effective tax rate is as follows:(Unit: Millions of yen)2017
Statutory income tax rate

2018
30.6%

30.6%

3.6%

1.0%

(1.8%)(2.2%)(1.9%)(0.5%)

2.2%(1.1%)(2.1%)

0.4%(0.6%)(0.5%)

Other(2.3%)(2.2%)

Effective tax rate

27.1%

24.0%

(Reconciliation)

Items such as entertainment expenses that are notdeductible permanently

Items such as dividends that are excluded fromincome permanently

Special tax exemption

Business tax on foreign income(0.6%)

Difference on tax rates applied to foreign
Subsidiaries

Valuation allowance

Undistributed retained earnings of foreignsubsidiaries

28(1.5%)

15. Trade and Other Current Payables
The breakdown of trade and other current payables is as follows:(Unit: Millions of yen)
April 1, 20162017

(Transition date)2018

Trade payables

31,15829,84929,429Accounts payable - other

9,306

9,988

10,710Notes and electronically recorded obligations

2,397

Notes payable - facilities

2,326

296

1,976

634

571

Other

1,621

1,371

1,896

Total

44,78044,16944,583

16. Loans(1)The breakdown of loans(Unit: Millions of yen)
April 1, 2016

(Transition date)2017

Average2018

interest rate

Repayment
periodCurrent

Financial liabilities measured atamortized cost

Short-term loans

Long-term loans to be repaid
within one year

Total

57,19950,29742,614

0.30%

－

4,550

4,301

4,201

0.30%

－

61,74954,59846,815

8,587

7,452

13,116

8,587

7,452

13,116

Non-current

Financial liabilities measured atamortized cost

Long-term loans
Total

0.09%

From Dec. 10,2019 to Dec. 29,
2023

Average interest rate indicates the weighted-average interest rates applicable to borrowings at each fiscal year end..
(2) Changes in liabilities associated with Cash flows from financing activities:(Unit: Millions of yen)
Borrowings
As of April 1, 2017

62,051

Changes in cash flow by proceeds and repayments(Decrease) increase in short-term loans, net(7,535)

Repayments of long-term loans(4,400)Total changes in cash flows from financing activities(1,935)

Proceeds from long-term loans

10,000Foreign currency translation adjustments(183)

As of March 31, 2018

59,93229

17. Provisions
The schedule of provisions is as follows:
For the fiscal year ended March 31, 2017
(Unit: Millions of yen)
Provision forcompensation for
products

Provision for loss
on litigation

Provision for loss
on liquidation ofsubsidiaries and

Other

Total

associates

As of April 1, 2016

599

870

－

316

1,786

Provision made

3,042

(149)

46

2

3,092

－
－

－

(217)

－
－
－

(219)

(0)

(3)

－

(32)

(36)

As of March 31, 2017

3,274

867

46

67

4,256

Current

3,274

867

46

－

4,188

－

－

－

Provision used

Provision reversed

Foreign currency translation
adjustments

Non-current

(149)
(436)

67

67

For the fiscal year ended March 31, 2018
(Unit: Millions of yen)
Provision forcompensation for
products

As of March 31, 2017

Provision for loss
on litigation

Provision for loss
on liquidation ofsubsidiaries and

Other

Total

associates

3,274

867

46

67

110

－

－

(537)

(3)

2

(43)

(1,189)

－

－
－

(1)

(20)

－

(1)

(23)

As of March 31, 2018

2,727

309

－

68

3,104

Current

2,727

309

－

3,036

－

－

－
－

Provision madeProvision used

Provision reversed

Foreign currency translation
adjustments

Non-current

(648)
(8)

4,256
113

(51)

68

68

18. Employee 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. Funded 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.
(1) Defined benefit plans
1) The Breakdown of defined benefit obligation and plan assets
The breakdown of defined benefit obligation and plan assets are as follows:(Unit: Millions of yen)
April 1, 20162017

(Transition date)Present value of funded defined benefit obligations

327

2018
317

254

Fair value of plan assets

(177)

(193)

(151)

Subtotal

150

123

102

2,806

2,995

3,285

2,956

3,118

3,388

Present value of unfunded defined benefit
obligations

Defined benefit obligation and assets (net)30

2) Changes in present value of retirement benefit obligations
Changes in present value of retirement benefit obligations are as follows:(Unit: Millions of yen)
2017
Balance beginning of year
Service cost

Interest cost

2018
3,134

3,312

293

302

1

(0)

(18)

(19)

37

Changes by remeasurement

Actuarial gain or loss arising from changes in demographic assumptions
Actuarial gain or loss arising from changes in financial assumptions

53

59

Other

Benefits paid

70

(209)

Past service cost

(191)

17

Other

(8)

(4)

Balance end of year

20

3,312

3,540

3) Significant actuarial assumptions and sensitivity analysis
The significant actuarial assumptions are as follows:(Unit: Millions of yen)
April 1, 20162017

(Transition date)

2018

Discount rate

1.99%

1.69%

1.50%

Salary raise percentage

3.91%

3.28%

3.82%

The effects on the present value of defined benefit obligations by assuming a 0.5% increase or decrease are as follows:(Unit: Millions of yen)
Changes in assumptions
Discount rate

April 1, 20162017

(Transition date)2018

Increase of 0.5%

(134)

(109)

(128)

Decrease of 0.5%

146

113

139

The present values of the defined benefit obligations in cases of a 0.5% increase and decrease in the discount rate are calculated
in the same manner as used in the calculation of present values of the defined benefit obligations recognized in the consolidated
statement of financial position, and thereby, the differences from the actual present values of the defined benefit obligations are
determined as the result of the sensitivity analysis. In such analysis, it is assumed that variables other than the discount rate
remain fixed. However, in practice, changes in some of the assumptions may occur and affect the result.
4) Information on the maturity composition of defined benefit obligations
The weighted average duration is as follows:
April 1, 2016

(Transition date)
Weighted average duration

2017

8.7 years

2018
8.5 years

10.0 years5) Schedule of fair value of plan assets
The changes in fair value of plan assets are as follows:
Unit: Millions of yen)
2017
Balance beginning of year

2018
177

193

0

1

0

－

Benefits paid

(23)

(72)

Balance end of year

193

151

Interest income (Note)

Changes by remeasurement
Return on plan assets

Contributions by the employer

27

Other

10

31

30

(2)

(Note) Interest income is measured by multiplying the fair value of plan assets at the beginning of the fiscal year by the discountrate used for the calculation of the present value of defined benefit obligations.
6) The Breakdown of fair value of plan assets by typeThe breakdown of fair value of plan assets by type is as follows:(Unit: Millions of yen)
April 1, 20162017

(Transition date)
Plan assets thathave a quoted
price in an

active market
Bonds

30

Stocks81

Plan assets that
do not have aquoted price inan active

Plan assets thathave a quoted
price in an

active market

market29

2018

Plan assets that
do not have aquoted price inan active

Plan assets that

Plan assets that

do not have ahave a quoted

quoted price inprice in an

an active

active market

marketmarket25

Cash and deposits

60

－
－
－

64

－
－
－

50

－
－
－

Other

－

5

－

13

－

10

Total

172

5

180

13

140

10

87

65

7) The breakdown of defined benefit cost
The breakdown of defined benefit cost is as follows:(Unit: Millions of yen)
2017

2018

Service cost

293

302

Past service cost
Other

17

(20)

(8)

Total

327

346

Net interest

36

51
0

These costs are included in “cost of revenue” and “selling, general and administrative expenses” in the consolidated statement ofincome.
(2) Defined contribution pension plans
The amount of cost recognized during the fiscal years ended March 31, 2017 and 2018 is as follows.
(Unit: Millions of yen)
2017
Contributions

2018
3,189

3,333

The cost is included in “cost of revenue” and “selling, general and administrative expenses” in the consolidated statement ofincome and includes pension contributions by the employer under “Employees' Pension Insurance Act” in Japan.
(3) Employee benefits expenses
Employee benefits expenses included in “cost of revenue” and “selling, general and administrative expenses” in the consolidated
statement of income are as follows:.
(Unit: Millions of yen)
2017

2018

Wages, salaries and bonuses, etc.

38,968

Other

5,194

Retirement benefit expenses

1,403

Total

45,56632

41,176
1,468
5,468
48,112

(4) Other employee benefits(Unit: Millions of yen)
April 1, 20162017

(Transition date)
Short-term employee benefits
Salaries payable, etc.

2018

650

1,070

1,062

1,019

956

1,020

Accrued bonuses

2,256

Total

3,926

4,300

4,356

Other

9

11

Total

9

11

－
－

Liabilities relating to compensated absences
Long-term employee benefits

2,274

2,273

19. Equity and Other Equity Items(1) Management of equity
The Group makes capital, research and development investments to increase corporate value through growth on a global scale.
To meet fund requirement for investments, the Group considers an appropriate balance between debts and equity and manages
equity.
(2) Number of shares authorized, issued and treasury stock(Unit: Shares)
Class of shares
Number of shares authorized
Number of shares issued:
Beginning of year

Increase(decrease)
End of year

Number of treasury stock:
Ordinary shares

2017

2018

Ordinary shares

Ordinary shares

220,000,000

220,000,000

60,907,599

60,907,599－－

60,907,599

60,907,599

3,650,974

3,642,961(3) Information on surplus included in equity
1) Capital surplus
The components of capital surplus are as follows:(i) Legal capital surplus
Under the Companies Act of Japan (the "Companies Act"), at least 50% of the proceeds of certain issues of common shares shallbe credited to "Capital stock." The remainder of the proceeds shall be credited to "Capital surplus." The Companies Act permits,upon approval at the general meeting of shareholders, the transfer of amounts from "Capital surplus" to "Capital stock."(ii) Other capital surplus
Changes in the ownership interest in a subsidiary without a loss of control is treated as an equity transaction, and the amountequivalent to goodwill, negative goodwill, etc., incurred in connection with any such changes is recorded in other capital surplus.
(iii) Stock acquisition rights
Stock acquisition rights are those issued for stock option remuneration plan.
2) Retained earnings
The components of retained earnings are as follows:(i) Legal retained earnings
The Companies Act provides that a 10% dividend of retained earnings shall be appropriated as "Capital surplus" or as a legal
reserve until the aggregate amount of the "Capital surplus" and the legal reserve equals to 25% of "Capital stock." The legal
reserve may be used to eliminate or reduce a deficit or be transferred to "Retained earnings" upon approval at the general
meeting of shareholders.

33

In some foreign subsidiaries local laws stipulate that dividend of retained earnings shall be appropriated as "Capital surplus" or
as a legal reserve.
(ii) Other retained earnings
Other retained earnings represent the accumulated amount of profit earned by the Group.
(4) Information on other components of equity
1) Gains or losses on financial assets measured at fair value through other comprehensive income
This is the accumulated amount of changes in fair value of financial assets measured at fair value through other comprehensive
income.
2) Remeasurements of net defined benefit liabilities (assets)
Remeasurements of net defined benefit liabilities (assets) comprise actuarial gain or loss and the return on plan assets (excluding
the amount included in net interest on defined benefit liabilities (assets)). Remeasurements of defined benefit liabilities (assets),
net, are recognized as other comprehensive income in the fiscal year in which they occurred and are immediately transferred toretained earnings.
3) Foreign currency translation adjustments
This is an accumulated amount of exchange differences occurring when standalone financial statements of foreign subsidiaries
prepared in foreign currencies are translated into Japanese yen upon consolidation.
20. Dividends
For the fiscal year ended March 31, 2017
(1) Cash dividends paid
Resolution
Board of Directors' meeting
held on May 13, 2016

Board of Directors' meeting
held on October 28, 2016

Class ofsharesTotal dividends(Millions of yen)

Dividends per
share (Yen)

Ordinary shares

1,030

18.0

Ordinary shares

973

17.0

Record date

Effective date

March 31, 2016

Jun 29, 2016

September 30,
2016

December 9, 2016

(2) Dividends with a record date in the fiscal year ended March 31, 2017 and an effective date in the following fiscal year
Resolution
Board of Directors' meeting
held on May 15, 2017Class ofsharesOrdinary shares

Total dividends(Millions of yen)
1,030

Dividends per
share (Yen)

18.0

Record date

Effective date

March 31, 2017

Jun 29, 2017

Record date

Effective date

March 31, 2017

Jun 29, 2017

September 30,

December 12,

For the fiscal year ended March 31, 2018
(1) Cash dividends paid
Resolution
Board of Directors' meeting
held on May 15, 2017

Board of Directors' meeting
held on October 27, 2017Class ofsharesTotal dividends(Millions of yen)

Dividends per
share (Yen)

Ordinary shares

1,030

18.0

Ordinary shares

973

17.0

2017

2017

(2) Dividends with a record date in the fiscal year ended March 31, 2018 and an effective date in the following fiscal year
Resolution
Board of Directors' meeting
held on May 14, 2018

Class ofsharesOrdinary shares

Total dividends(Millions of yen)
1,431

34

Dividends per
share (Yen)

25.0

Record date

Effective date

March 31, 2018

Jun 28, 2018

21. Revenue
The breakdown of revenue is as follows:(Unit: Millions of yen)
2017

2018

Sales of goods

242,089259,266

Total

245,967

263,163

Rending services

3,878

3,897

22. Selling, General and Administrative Expenses
The breakdown of selling, general and administrative expenses is as follows:(Unit: Millions of yen)
2017
Packing and transportation expenses

2018(5,919)

Employees’ salaries(5,675)(9,931)

Provision of allowance for doubtful accounts(10,171)(154)

Provision for compensation for products(38)(2,494)Retirement benefit expenses

Provision for directors’ retirement benefits

(80)

(472)

(505)

(1,392)(1,557)(41)

Depreciation

(35)

Other

(11,668)(12,316)

Total(32,076)(30,380)

23. Other Income and Other Expenses(1) The breakdown of other income(Unit: Millions of yen)
2017
Gain on sales of non-current assets

2018
90

89

Other

1,059

729

Total

1,150

818

(2) The breakdown of other expenses(Unit: Millions of yen)
2017
Loss on sales of non-current assets

2018
(39)

Loss on retirement of non-current assets(102)

Provision for loss on liquidation of subsidiaries and associates(47)

Impairment loss

(812)

Settlement package
Other

35

(53)

－

(127)

(1,162)(1,557)(1,567)

(428)

Total

(78)

(123)

(149)

24. Finance Income and Finance Costs(1) The breakdown of finance income(Unit: Millions of yen)
2017
Interest income

Cash and cash equivalents

2018
107

Loans and receivables

Dividend income

Available-for-sale financial assets

Gain on sales

Available-for-sale financial assets

Total

100

1,580

1,765

481

526

18

0

2,188

2,392

(2) The breakdown of finance costs(Unit: Millions of yen)
2017
Interest expenses
Borrowings

2018
(244)

(186)

Foreign exchange losses(1,755)

(456)

Total

(2,003)

(648)

Other

(4)

(4)

25. Earnings per Share(1) Basis of calculating basic earnings per share
1) Profit for the year attributable to owners of the parent company(Unit: Millions of yen)
2017
Profit for the year attributable to owners of the parent company

2018
10,164

11,1052) Weighted average number of ordinary shares – basic(Unit: Thousands of shares)
2017
Weighted average number of ordinary shares – basic

201857,26257,262(2) Basis of calculating diluted earnings per share
1) Profit for the year attributable to owners of the parent company – diluted(Unit: Millions of yen)
2017
Profit for the year attributable to owners of the parent company – diluted

2018
10,164

11,1052) Weighted average number of ordinary shares –diluted(Unit: Thousands of shares)
2017

2018

Weighted average number of ordinary shares – basic

57,26257,262

Weighted average number of ordinary shares – diluted

57,34057,340

Dilutive potential ordinary shares

77

36

78

26. Other Comprehensive Income
The amount of changes and income tax effects relating to each component of other comprehensive income for each year, including
non-controlling interests, are as follows:(Unit: Millions of yen)
2017

2018

Items that will not be reclassified to profit or loss
Remeasurements of the net defined benefit liabilities (assets)
Amount arising during the year

(42)

(50)

Subtotal

(35)

(34)

Amount arising during the year

2,026

1,862

Tax effect

(568)

(571)

Subtotal

1,439

1,290

(1,359)(4,607)

Tax effect7

16

Items that may be reclassified to profit or loss
Changes in fair value measurements of available-for-sale financial assets
Reclassification to profit or loss

(18)

(0)

Foreign currency translation adjustments
Amount arising during the year
Reclassification to profit or loss
Subtotal
Total other comprehensive income (loss)－

9(1,359)(4,598)45(3,341)

27. Financial Instruments(1) Capital management
The Group’s basic policy for capital management is to aim increase of corporate value while achieving a good balance between
financial stability and capital efficiency. In financial stability, assessment by credit rating agencies is one of the standards and theGroup endeavors to procure funds from external institutions with low cost by maintaining a high credit rating for long-termborrowings.
In capital efficiency, the Group gives priority to procuring funds by debt while maintaining a high credit rating and reduces total
capital costs by restraint of capital size. The Group is not exposed to material capital restrictions by external parties.
(2) The Breakdown of Financial instruments(Unit: Millions of yen)
April 1, 20162017

(Transition date)

2018

Financial assets

Loans and receivables

Trade and other receivables
Other financial assets

49,87348,35350,55919,654

21,712

23,58976,983Available-for-sale financial assets
Other financial assets

Cash and cash equivalents

41,548Financial assets measured at fair value throughprofit or loss

Other financial assets

66,832

38,212

63,88042,637－13537

188,060

175,246

180,703

Trade and other liabilities

44,78044,16944,583

Other financial liabilities

288

299

Total
Financial liabilities

Financial liabilities measured at amortized costLoans

70,337

Total

115,406

37

62,051
106,520

59,932442

104,958

(3) Financial instruments risk
1) Credit risk managementi) Credit risk management
Notes, electronically recorded monetary claims and accounts receivable - trade are exposed to customer credit risk. The Groupmanages credit risk arising from receivables in accordance with the internal policies, which include monitoring of due dates andoutstanding balances by individual customer and the credit worthiness of main customers on an interim basis.
ii) Credit risk exposure
An aging analysis of financial assets that are past due but not impaired is as follows:(Unit: Millions of yen)
April 1, 20162017

(Transition date)Within 90 days past due

153

Within one year past due

More than one year past due

17

167

84

106

5

140

165

242

6

Total

2018
125
399

When a financial asset is impaired, the carrying amount of the financial asset is not reduced by the impairment loss directly andthe amount is reduced through the use of allowance for doubtful accounts.
The movement in allowance for doubtful accounts is as follows:(Unit: Millions of yen)
2017

2018

Beginning balance

169

332

Increase

183

36

Decrease by reversal
Other

(3)

(16)

(108)

Ending balance

332

274

Decrease by use

(1)

38

－
13

2) Liquidity risk
Payment terms of payables, such as notes and accounts payable-trade, are mostly less than one year.
Short-term loans are used mainly in connection with business activities. Long-term loans and leases are taken out principally forthe purpose of capital investments.
Trading liabilities and borrowings are exposed to liquidity risk. The Group prepares and updates cash flow plans monthly to
manage liquidity risk.
Financial liabilities by maturity are as follows:
For the fiscal year ended March 31, 2017
(Unit: Millions of yen)
Carrying
amountContractual
cash flows

Within one
year

More thanMore than

within two

within three

one year
years

More thanMore than

within four

within five

two years

three years

years

years

four years
years

More than
five years

Financialliabilities

measured atamortized cost

Trade and otherliabilities

Long-term loans
due after morethan one year

Long-term loans
due within one
year

Short-termloansLong-termleasesShort-termleasesTotal

44,16944,16944,169

－

－

－

－

－

7,452

7,469

－

3,866

2,353

1,250

－

－

4,301

4,327

4,327

－

－

－

－

－

50,29750,43350,433

－

－

－

－

－

204

209

－

74

57

47

22

7

95

99

99

－

－

－

－

－

106,520

106,709

99,029

3,940

2,411

1,297

22

7

A financial asset and a financial liability arising from derivative transactions are offset and the net amount is presented.

39

For the fiscal year ended March 31, 2018
(Unit: Millions of yen)
Carrying
amountContractual
cash flows

Within one
year

More thanMore than

within two

within three

one year
years

More thanMore than

within four

within five

two years

three years

years

years

four years
years

More than
five years

Financialliabilities

measured atamortized cost

Trade and otherliabilities

Long-term loans
due after morethan one year

44,58344,58344,583

－

－

－

－

－

13,11613,142

－

2,775

1,405

5,654

303

3,002

4,201

4,216

4,216

－

－

－

－

－

42,61442,74042,740

－

－

－

－

－

319

325

－

107

96

71

46

4

123

127

127

－

－

－

－

－

104,958

105,135

91,668

2,882

1,502

5,725

349

3,007

Long -termloans due within
one year

Short-termloansLong-termleasesShort-termleasesTotal

A financial asset and a financial liability arising from derivative transactions are offset and the net amount is presented.
3) Market risk management(i) Foreign exchange risk
The Group’s main foreign exchange risk arises mainly from the Company’s US dollar deposit aiming at settlement fortransactions with overseas customers and suppliers. Therefore the Company mainly has the exchange risk. If the Japanese yen
as a functional currency in the Company appreciates by 1% against the U.S. dollar at the fiscal year-end, effects on profit before
tax by the translation of the Company’s US dollar deposit are as follows.
It is assumed that currencies other than the exchange rate between the U.S. dollar and Japanese yen are fixed.
Foreign currency sensitivity analysis(Unit: Millions of yen)
2017
Profit before tax

2018
(162)

(134)

The above amount in parentheses shows negative effects on profit before tax if the yen appreciated 1.0% against the dollar andthe effects would be positive if the yen depreciated 1% against the dollar.
The effects on other comprehensive income by translation of foreign subsidiaries are not included.
(ii) Interest rate risk
The Group raises funds through bank borrowings and is exposed to interest rate risk. To hedge the risk, the Group endeavors tofix financial cost by long-term borrowings and performs good cash flow management to receivables and payables. As a result, theeffects on interest expenses by interest rate change are insignificant.
(iii) Market volatility risk
The Group holds equity instruments, such as shares of listed companies with which the Group has a business relationship, andthese equity instruments are exposed to market volatility risk. The current fair value of the equity instruments and the financial
status of issuers are assessed regularly and holding status is reviewed periodically.
Market volatility sensitivity analysis
Sensitivity analysis to market volatility of financial instruments is as follows:
It is based on the assumption that all parameters other than the share prices used for the calculation do not fluctuate and shows40the impact on other comprehensive income (before tax effects), if the share prices of these instruments decline 10% at the fiscal
year-end.

(Unit: Millions of yen)
2017
Other comprehensive income

2018(1,553)(1,711)(4) Fair value of financial instruments
1) Measurement of fair value(Loans and receivables)
Trade and other receivables
The carrying amount approximates the fair value due to the short maturities of the instruments.
Other financial assets
Time deposits with duration exceeding three months are settled within short term and the carrying amount reasonably
approximates to the respective fair value.
(Available-for-sale financial assets)
The fair value of listed shares is based on quoted market prices at reporting date and the fair value of unlisted shares is mainly
based on net assets value.
(Cash and cash equivalents)
The carrying amount approximates the fair value due to the short maturities of the instruments.
(Financial assets measured at fair value through profit or loss）
The fair value is based on the quoted price, etc. provided by the relevant financial institutions.
(Financial liabilities measured at amortized cost)
Short-term loan
The carrying amount approximates the respective fair value since the instruments are settled within short term.
Long-term loan including loan due within one year
The instruments are calculated based on the present value by discounting the sum of the principal and interest at the interest
rate assumed for a new similar borrowing.
Other liabilities
The carrying amount approximates the respective fair value since the instruments are settled within short term.
2) Fair value hierarchy
The levels of the fair value hierarchy are as follows:
Level 1 – Fair value measured using quoted prices in active markets
Level 2 – Fair value measured using inputs other than quoted prices included in Level 1 that are observable, either directly or
indirectly
Level 3 – Fair value measured using unobservable inputs
Any transfers of the financial instruments between levels are recognized at the date of events that causes the transfers.
When unobservable inputs were changed to alternative and reasonable assumptions in Level 3, significant changes of fair value
are not considered.
3) Carrying amount and fair value of financial instruments(Unit: Millions of yen)
2017
Carrying amountLong-term loans

11,75441

2018
Fair value
11,737

Carrying amount
17,317

Fair value
17,305

4) Financial instruments measured at fair value
The clarification by level based on fair value hierarchy of financial instruments measured at fair value is as follows:
For the fiscal year ended March 31, 2017
(Unit: Millions of yen)
Level 1

Level 2Financial assets measured at fair value through profit－

or loss

Level 3

Total

135

－

135

Available-for-sale financial assets

15,545－

5,022

20,568

Total

15,545135

5,022

20,703For the fiscal year ended March 31, 2018
(Unit: Millions of yen)
Level 1

Level 2Financial assets measured at fair value through profit－

or loss

Level 3

Total

37

－

37

Available-for-sale financial assets

17,112－

5,374

22,487

Total

17,112

37

5,374

22,525

5) The movement in fair value of financial assets categorized in Level 3 is as follows:(Unit: Millions of yen)
2017

2018

Beginning balance

4,813

Total gain and loss:

Other comprehensive income

Ending balance

5,022

209

351

5,022

5,374

28. Leases(1) Finance lease as lessee
The breakdown of future minimum lease payments under finance lease as at transition date, March 31, 2017 and March 31, 2018is as follows:(Unit: Millions of yen)
April 1, 20162017

(Transition date)
Minimum
lease

payments

Minimum
lease

payments atfair value

Within one year

112

111

More than five years

1212More than one year to five years

163

2018
Minimum

Minimum
lease

payments atpayments

fair value

95

lease

lease

payments atpayments

fair value

94

123

6

6

159

197

191

7

Minimum

Minimum

lease

312

122
304
6

Total

288

283

299

292

442

432

Future financing cost

(4)

－

(6)

－

(9)

－

283

283

292

292

432

432

Total minimum lease payments at fair
value

42

(2) Operating lease as lessee
1) Future minimum lease payments
The breakdown of future minimum lease payments under non-cancellable operating lease as at transition date, March 31, 2017
and March 31, 2018 is as follows:(Unit: Millions of yen)
April 1, 20162017

(Transition date)Within one year

95

More than one year to five years
More than five years
Total

2018

145

126

86

46

－

－

－

240

212

131

85

The Group leases vehicles, etc. and some lease contracts cover the right for renewal.
2) Operating lease payments recognized as an expense
Operating lease payments recognized as an expense are as follows:(Unit: Millions of yen)
2017

2018
163

161

29. Subsidiaries
The consolidated subsidiaries of the Group as at March 31, 2018 are as follows:
Company nameLocation

Voting rights (%)

NS Advantech Co., Ltd.

Niigata prefecture, Japan

100.0

N.S.Electronics Co., Ltd.

Niigata prefecture, Japan

100.0

NS West Inc.

Hiroshima prefecture, Japan

100.0

NS･Computer Service Co., Ltd.

Niigata prefecture, Japan

100.0

Nissei Service Co., Ltd.

Niigata prefecture, Japan

100.0

Honda Car Sales Nagaoka Co., Ltd.

Niigata prefecture, Japan

100.0

Niigata Mazda Co., Ltd.

Niigata prefecture, Japan

100.0

UK-NSI Co., Ltd.

United Kingdom

100.0

Nippon Seiki (Europe)B.V.

Netherlands

100.0

New Sabina Industries, Inc.

U.S.A.

100.0 (7.9)

N.S.International, Ltd.

U.S.A.

100.0

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

Mexico100.0 (20.5)

Nissei Advantech Mexico S.A. De C.V.

Mexico100.0 (95.59)

Nippon Seiki Do Brasil Ltda.

Brazil

100.0

Thai Nippon Seiki Co., Ltd.

Thailand

100.0

PT.Indonesia Nippon Seiki

Indonesia

70.0

Vietnam Nippon Seiki Co., Ltd.

Vietnam

70.0

NS Instruments India Private Ltd.

India

100.0 (1.0)

Hong Kong Nippon Seiki Co., Ltd.

Hong Kong

100.0 (30.0)

Dongguan Nissei Electronics Co., Ltd.

China

100.0 (30.0)

Shanghai Nissei Display System Co., Ltd.

China

80.0 (80.0)

Taiwan Nissei Display System Co., Ltd.

Taiwan100.0

Changzhou Nissei Display System Co., Ltd.

China

100.0

Nantong NS Advantech Co., Ltd.

China

100.0 (100.0)

Wuhan Nissei Display System Co., Ltd.

China

75.0

Nissei Display Sales and Development Co., Ltd.

China

91.0 (31.0)

Other 10 companies－－(Note) The percentages in parentheses in the column of "Voting rights (%)" indicate indirect ownership out of the total ownership.

43

30. Related parties
Management emoluments
Emoluments for the Company’s directors and corporate auditors are as follows:(Unit: Millions of yen)
2017

2018

Basic emolument and bonus

324

340

Total

344

354

Share-based Payment

20

14

31. Share-based Payment(1) Stock option remuneration plans
The Company adopts the stock option remuneration plans as described below.
Issuer

The Company

The Company

The Company

The Company

at the Board ofJune 28, 2011

June 27, 2012

June 25, 2013

June 26, 2014

Grantees

Directors

Class and number

Ordinary shares

Ordinary shares

Ordinary shares

Ordinary shares

Grant dateJuly 19, 2011

July 19, 2012

July 18, 2013

July 17, 2014

Vesting Conditions

No condition is set out.

No condition is set out.

No condition is set out.

No condition is set out.

No service period is

No service period is

No service period is

No service period is

From July 20, 2011 to

From July 20, 2012 to

From July 19, 2013 to

From July 18, 2014 to

The Company

The Company

The Company

June 26, 2015

June 28, 2016

June 28, 2017

Date of resolution
Directors’ Meetingof granted shares

Service period
Exercisable period

IssuerDate of resolution
at the Board of

Directors’ Meeting
Grantees

15

24,700 shares

14

30,400 sharesstipulated.

7

Operating Officers 12

13

Directors

6

Operating Officers 14

stipulated.

July 18, 2043

Directors

Operating Officers

7

4Class and number

Ordinary shares

Ordinary shares

Ordinary shares

Grant dateJuly 17, 2015

July 20, 2016

July 20, 2017

Vesting Conditions

No condition is set out.

No condition is set out.

No condition is set out.

No service period is

No service period is

No service period is

From July 18, 2015 to

From July 21, 2016 to

From July 21, 2017 toof granted shares

Service period
Exercisable period

8,300 sharesstipulated.

July 17, 2045

13,800 sharesstipulated.

July 20, 2046

449,000 sharesstipulated.

July 20, 204715

12,200 sharesstipulated.

July 19, 2042

Directors

Directors
13,900 sharesstipulated.

July 19, 2041

Directors

Directors

July 17, 2044

The stock options outstanding as of March 31, 2017 and 2018 are as follows:
For the fiscal year ended March 31, 2017
Number of options (Share)

Weighted-average exercise
price(Yen)

Beginning balance

66,4001

GrantedForfeited

13,800－

1－

Exercised－－

Expired－－80,2001－－

Ending balance
Options exercisable at the end of year

For the fiscal year ended March 31, 2018
Number of options (Share)

Weighted-average exercise
price(Yen)

Beginning balance

80,200Granted

9,000

1

Forfeited－－

Exercised(11,900)

1－－

ExpiredEnding balance
Options exercisable at the end of year

1

77,3001－－(Note) The weighted-average stock price of options as of the date of exercising, which was exercised in the reporting period, is ¥2,315.

(2) Measurement approach for fair value of stock options
The fair value of stock options is estimated using the Black-Scholes model. The fair value and assumptions usedin the calculation are as follows.
2017
Fair value per stock at measuring date (Yen)2018
1,317.83

1,403.89

Share price at grant date (Yen)－－

Exercise price (Yen)

1

1

37.06

35.13

Expected remaining life of the option (years)

5.8

4.3

Expected dividend (Yen)35

35

Risk-free interest rate (%)(0.33)(0.06)

Expected volatility of the share price (%)(3) Share-based compensation recorded in consolidated statement of income(Unit: Millions of yen)
2017
Share-based compensation recorded in Selling, general and administrative expenses

2018
20

18

32. Commitments
Contractual commitments for the acquisition of property, plant, equipment and intangible assets are as follows:(Unit: Millions of yen)
April 1, 2016

(Transition date)
Contractual commitments for the acquisition of

5,442

property, plant, equipment and intangible assets

45

2017

2018
5,297

6,861

33. First-time Adoption
The Group has disclosed its condensed consolidated financial statements in accordance with IFRS from the current first quarteraccounting period (from April 1, 2017 to June 30, 2017). The most recent consolidated financial statements prepared inaccordance with Japanese Generally Accepted Accounting Principles (hereinafter Japanese GAAP) are those relating to the fiscal
year ended March 31, 2017, and the date of transition to IFRS is April 1, 2016.
IFRS stipulates that, in principle, an entity that adopts IFRS for the first time shall apply standards required by IFRS
retrospectively. However, IFRS 1 “First-time Adoption of International Financial Reporting Standards” (hereinafter “IFRS 1”)
allows some exemptions on the retrospective application of certain standards required by IFRS.
The Group adopted the following exemptions when applying IFRS:(1) Business combinations
In IFRS 1, the entity may elect to not apply IFRS 3 “Business Combinations” (hereinafter “IFRS 3”) to business combinations thatwere recognized before the date of transition retrospectively. The Group elected this exemption and did not apply IFRS 3 tobusiness combinations that were recognized before the date of transition retrospectively.
(2) Deemed cost
In IFRS 1, the entity may use fair value as at transition date as deemed cost for property, plant and equipment. The Group uses
fair value at transition date as deemed cost for some assets.
(3) Foreign currency translation adjustments
IFRS 1 allows the entity the option of deeming the cumulative foreign currency translation adjustments to be zero at the date oftransition to IFRS. The Group adopted this exemption and the cumulative foreign currency translation adjustments are deemed
to be zero at the date of transition to IFRS.
Reconciliation that is required to disclose in first-time adoption is as follows:"Reclassification" presented the items to which comprehensive income and retained earnings are not affected, while "Differencesin recognition and measurement" presented the items to which comprehensive income and retained earnings are affected.

46

Reconciliation of equity as of the transition date to IFRS (April 1, 2016)(Unit: Millions of yen)
Effects bychange ofJapanese GAAP

fiscalclassification

AmountAmountyear- end
Account item

AmountDifferencesin recognition
and

Re-

IFRS

measurement

AmountAmountNote

AssetsCurrent assets
Cash and deposits
Notes and accounts
receivable – trade

Merchandise andfinished goods

Work in process

Raw materials andsupplies

Deferred tax assets
Other

Allowance for doubtful

accounts

Total current assets

Current assets
58,861539(17,851)－

41,54847,261(3,468)

6,547

(524)

49,816－－

17,859－17,859F

13,091(934)

25,900869

38,926

F

3,600

(77)

(3,522)－－

F

18,9173,460(22,377)

－

－

F

2,768

(86)

(2,682)－－(6,741)

170

3,577

F

(189)

3

186

－

－

153,792103(2,682)515

151,729

9,481

667

F

3,437

57,981A

Intangible assets

3,669

(105)

(478)

943

4,029

B

Investment securities

19,302(2,431)(16,870)－－(58,098)

－

－

Other

58,122

(23)

－

－

57

－

57

－

－

75,9992,778

78,778

1,712

35

2,682

(1,691)

2,737

1,990

(556)

(10)

0

Total non-current assets

138,338

Total assets

292,130

Allowance for doubtful
accounts

assetsInventories

Other current assets

Non-current assets－

Deferred tax assets

Other current financial

Total current assets

991

Long-term deposits

equivalents
receivables

53,552equipment

Cash and cash
Trade and other current

Non-current assets

Property, plant andAccount item
Assets(619)

Property, plant andequipment

Goodwill and intangible
assetsTrade and othernon-current receivables
Other non-current
F

financial assets

Deferred tax assets

－

813

10

－

－

(2,090)

2,682

5,468

144,398

Total non-current assets(1,986)－

5,983

296,127

Total assets

47

Other non-current assets

(Unit: Millions of yen)
Effects bychange ofJapanese GAAP

Differencesin recognition
and

Re-

fiscalclassification

AmountAmountyear- end
Account item

AmountIFRS

measurement

AmountAmountNote

Liabilities

Liabilities

Current liabilities

Notes and accounts
payable - trade

Short-term loans payable
Lease obligations
Income taxes payable

Account item
Liabilities and equity
Current liabilities

32,760795

10,691533

44,78061,69356－－

61,749

111

(1)

－

2

112

Other current financial

liabilities

－

－

111

(2,243)

1,340

－

－

－

－

2,909

1,016

3,926

70

(3)

(67)

－

－

580

18

890

230

1,720

19

－

(19)

－

－

870

－

(870)

－

－

Other

12,638(341)(11,289)－

1,007

Other current liabilities

Total current liabilities

112,205

650

(0)

1,782

114,637

Total current liabilities

8,460

127

－

－

8,587

169

0

－

5

175

2,957

84

0

(150)

2,892

223

(25)

(197)

－

－

2,985

(148)

9

120

2,966

68

(1)

－

－

66

Provisions

214

29

188

－

431

Other non-current liabilities

15,078

66

0

(25)

15,120Total non-current liabilities

127,283

717

－

1,757

129,758

Total liabilities

14,494

－

－

－

－

80

14,494－

Provision for directors'
bonuses

Provision forcompensation for products

Provision for loss onorder received

Provision for loss on
litigation

Non-current liabilities

Long-term loans payable

Lease obligations
Deferred tax liabilities

Provision for directors’
retirement benefits
Net defined benefit
liability

Asset retirement
obligations
Other

Total non-current
liabilities

Total liabilities
Net assets

Capital stock

Capital surplus

Retained earnings

6,473

－

19,403Long-term loans

Other non-current
F

financial liabilities

Deferred tax liabilities

Long-term employee
benefits

EquityF

Common stock

Capital surplus

－

－

F

(1,386)－(12,060)

5,956

D

154,569(2,203)－

4,284

156,649

Non-controlling interests

10,227

(500)

－

(57)

9,719

Total net assets

164,847(2,704)－

4,226

166,369

Total equity

292,130(1,986)－

5,983

296,127

Total liabilities and equity

equity80

Non-current liabilities(80)

Total liabilities and net－

Provisions(6,314)

Accumulated other－

Short-term employee

benefits－

comprehensive income

16,344C

D

Subscription rights to shares－(6,314)

(817)

6,553

Income tax payables

135,959

Treasury shares

120,432

13

Short-term loans

2,132

Provision for bonuses

1,327

Trade and other current

payables48

Retained earnings
Treasury stock

Other components ofequityEquity attributable toowners of the parent

Non-controlling interests

The differences in the amount of equity under Japanese GAAP and those under IFRS are mainly due to the following reasons:
A: Depreciation of property, plant and equipment
With regard to the depreciation method of property, plant and equipment, the Group mainly adopted the declining balancemethod under JGAAP, however the Group has adopted the straight-line method and changed estimated useful life under IFRS.
As a result, the balance of “property, plant and equipment” increased by ¥3,437 million.
B: Reconciliation of development costSome development costs, which were recognized as expenses under Japanese GAAP, are recognized as intangible assets since
they meet requirement stipulated in IFRS 38 “Intangible Asset”. As a result, the amount of “Intangible asset” increased by ¥997
million.
C. Reconciliation of liabilities relating to compensated absences
Liabilities relating to compensated absences, which was not recognized under Japanese GAAP, is recognized as a liability under
IAS 19 “Employee Benefits” when compensated absences are earned and their use is deferred to later period.
As a result, the amount of “Short-term employee benefits” increased by ¥1,019 million.
D. Reconciliation of other components of equity
In applying IFRS, the Group adopted the exemption in IFRS 1 for the cumulative foreign currency translation adjustments anddeemed the cumulative foreign currency translation adjustments that existed at the date of transition to IFRS to be zero. As aresult, (¥14,101) million was transferred from “Other components of equity” to “Retained earnings.”
E. Reconciliation relating to the end of a reporting period
As for some consolidated subsidiaries that have a different closing date from that of the parent company, the Group carries out
consolidation by unifying the closing date of such subsidiaries or by preparing additional financial statements as of the end of thereporting period of the parent company. As a result, the amount of respective accounts in the consolidated statement of financial
position is affected.
F. Reclassifications in presentation
The following reclassifications in presentation were made:1)

Time deposits with duration exceeding three months included in “Cash and deposits” under Japanese GAAP are included in“Other current financial assets” under IFRS.

2)“Merchandise and finished goods,” “Work in process,” and “Raw materials and supplies” separately presented underJapanese GAAP are collectively presented as “Inventories” under IFRS.

3)“Deferred tax assets” and “Deferred tax liabilities” are presented as non-current items under IFRS.

4)“Subscription rights to shares” separately presented under Japanese GAAP is included in “Capital surplus” under IFRS.

49

Reconciliation of equity as of March 31, 2017
(Unit: Millions of yen)
Effects bychange ofJapanese GAAP
Account item

fiscalAmountDifferencesin recognition
andReclassification

year- end
AmountIFRS

measurement

AmountAmountAmountNote

AssetsCurrent assets
Cash and deposits
Notes and accounts
receivable – trade

Merchandise andfinished goods

Work in process

Raw materials andsupplies

Deferred tax assets
Other

Allowance for doubtful

accounts

Total current assets

Current assets
101,886

1,288(64,962)－

38,212

48,478(2,820)3,695(1,040)48,313－－65,378－65,378F

16,315(583)

27,1461,000

43,878

F

4,040

(29)

(4,010)－－F

23,047

87(23,135)

－

－

F

3,826

(32)

(3,794)－－(4,458)

185

6,279

F

(349)

2

347

－

－

207,494(1,782)(3,794)144

202,062

10,249304

Fequipment

Intangible assets

Investment securities

Deferred tax assets
OtherassetsInventories

Other current assets

Total current assets

56,785

(51)

－

3,465

60,199

A

3,745

(22)

(409)

742

4,055

B

18,717－(18,717)

－

－

－

－

40

－

40

－

－

20,313

2,988

23,302

2,094

114

3,794

(3,252)

2,751(1,237)(10)0

Total non-current assets

83,439Total assets

290,934

accounts

Other current financial

Non-current assets(1)

Allowance for doubtful

equivalents
receivables

Investments and otherassetsCash and cash
Trade and other current

Non-current assets

Property, plant andAccount item
Assets2,107

Property, plant andequipment

Goodwill and intangible
assetsTrade and othernon-current receivables
Other non-current
F

financial assets

Deferred tax assets

－

868

10

－

－

38

3,794

3,944

91,217

Total non-current assets(1,743)－

4,089

293,279

Total assets

50

Other non-current assets

(Unit: Millions of yen)
Effects bychange ofJapanese GAAP

fiscalclassification

AmountAmountyear- end
Account item

AmountDifferencesin recognition
and

Re-

IFRS

measurement

AmountAmountNote

Liabilities

Liabilities

Current liabilities

Notes and accounts

Account item
Liabilities and equity
Current liabilities

Trade and other current

34,805(2,629)

11,632360

44,16954,449149－－

54,598

92

0

－

2

95

1,565

374

－

6

1,947

－

－

3,353

947

4,300

2,180

100

(2,280)

－

－

59

－

(59)

－

－

3,273

0

913

－

4,188

867

－

(867)

－

－

48

(1)

(46)

－

－

Other

14,987(1,401)(12,646)－

940

Total current liabilities

112,329(3,406)

(0)

1,317

110,240

7,410

42

－

－

7,452

201

(0)

－

3

204

3,277

(1)

0

(1,542)

1,733

231

－

(231)

－

－

3,180

(165)

11

104

3,129

69

(1)

－

－

67

Provisions

248

13

220

－

483

Other non-current liabilities

14,619(113)

0(1,435)

13,070Total non-current liabilities

126,948(3,519)－(118)

123,310

Total liabilities

14,494

－

－

－

154

100

14,494－payable - trade

Short-term loans payable
Lease obligations
Income taxes payable

Provision for bonuses

Provision for directors'
bonuses

Provision forcompensation for products

Provision for loss on
litigation

payablesShort-term loans

Other current financial

liabilities

Income tax payables

C

Short-term employee
benefits

Provisions

Provision for loss on
liquidation of subsidiaries
and associates

Non-current liabilities

Long-term loans payable

Lease obligations
Deferred tax liabilities

Provision for directors’
retirement benefits
Net defined benefit
liability

Asset retirement
obligations
Other

Total non-current
liabilities

Total liabilities
Net assets

Capital stock

Capital surplus

Retained earnings
Treasury shares

Subscription rights to shares

Accumulated othercomprehensive income

Non-controlling interests
Total net assets
Total liabilities and net
equity5,855

126,203

－

1,965

－

－

100

－

18,056

Total current liabilities
Non-current liabilities
Long-term loans

Other non-current

F

financial liabilities

Deferred tax liabilities

Long-term employee
benefits

EquityF

Common stock

Capital surplus

144,068－(100)(6,336)

D

－

－

F

(14,135)

－

2,242

6,164

D

158,373

1,919

－

4,207

164,500

5,611

(143)

－

－

5,468

163,985

1,775

－

4,207

169,969

Total equity

290,934(1,743)－

4,089

293,279

Total liabilities and equity(6,336)

15,899

6,110

Other current liabilities

51

Retained earnings
Treasury stock

Other components ofequityEquity attributable toowners of the parent

Non-controlling interests

The differences in the amount of equity under Japanese GAAP and those under IFRS are mainly due to the following reasons:
A: Depreciation of property, plant and equipment
With regard to the depreciation method of property, plant and equipment, the Group mainly adopted the declining balancemethod under JGAAP, however the Group has adopted the straight-line method and changed estimated useful life under IFRS.
As a result, the balance of “property, plant and equipment” increased by ¥3,465 million.
B: Reconciliation of development costSome development costs, which were recognized as expenses under Japanese GAAP, are recognized as intangible assets since
they meet requirement stipulated in IFRS 38 “Intangible Asset”. As a result, the amount of “Intangible Asset” increased by ¥814
million.
C. Reconciliation of liabilities relating to compensated absences
Liabilities relating to compensated absences, which was not recognized under Japanese GAAP, is recognized as a liability under
IAS 19 “Employee Benefits” when compensated absences are earned and their use is deferred to later period.
As a result, the amount of “Short-term employee benefits” increased by ¥956 million.
D. Reconciliation of other components of equity
In applying IFRS, the Group adopted the exemption in IFRS 1 for the cumulative foreign currency translation adjustments anddeemed the cumulative foreign currency translation adjustments that existed at the date of transition to IFRS to be zero. As aresult, (¥14,101) million was transferred from “Other components of equity” to “Retained earnings.”
E. Reconciliation relating to the end of a reporting period
As for some consolidated subsidiaries that have a different closing date from that of the parent company, the Group carries out
consolidation by unifying the closing date of such subsidiaries or by preparing additional financial statements as of the end of thereporting period of the parent company. As a result, the amount of respective accounts in the consolidated statement of financial
position is affected.
F. Reclassifications in presentation
The following reclassifications in presentation were made:1)

Time deposits with duration exceeding three months included in “Cash and deposits” under Japanese GAAP are included in“Other current financial assets” under IFRS.

2)“Merchandise and finished goods,” “Work in process,” and “Raw materials and supplies” separately presented underJapanese GAAP are collectively presented as “Inventories” under IFRS.

3)“Deferred tax assets” and “Deferred tax liabilities” are presented as non-current items under IFRS.

4)“Subscription rights to shares” separately presented under Japanese GAAP is included in “Capital surplus” under IFRS.

52

Reconciliation of comprehensive income for the fiscal year ended March 31, 2017
(Unit: Millions of yen)
Effects
by change

Japanese GAAP

of fiscal

Re-classification

year- end

Account item
Net Sales

AmountAmount240,520

5,688

AmountDifferencesin recognition
andAmount－IFRS

measurement

Amount

(241)

Note

Revenue

Gross profit

Cost of sales(193,537)(4,999)－225(198,311)

Gross profit

46,982

689

－

(16)

47,655(29,686)(126)(2,236)(27)(32,076)

B

－

－

946

(1,557)

B

－

(219)

1,150

－

(1,337)

203

17,296563(2,627)(60)

15,172

15

(840)

－

Selling, general andadministrative expenses

Operating income
Non-operating income

Non-operating expenses
Extraordinary income

3,013(2,545)
113

487

(8)

Cost of revenue

B

Selling, general andadministrative expenses
Other income

Other expenses
Operating profit

2,188

(105)

(2,003)

B

－
－

－

B

54

Account item

245,967

B

Finance income
Finance costs

Extraordinary losses(3,507)

(11)

3,518

－

－

Profit before income taxes

14,370

1,046

－

(60)

15,356

Profit before tax

Income taxes(3,974)

93

－

(92)

(4,159)

Income tax expense

Profit for the year

10,396

953

－

(152)

11,197

Profit for the year

983

48

－

－

1,032

9,412

904

－

(152)

10,164

Profit attributable tonon-controlling interests

Profit attributable to ownersof parent

B

Profit attributable tonon-controlling interests
Profit attributable toowners of the parent(Unit: Millions of yen)
Effects by

Japanese GAAP

change ofRe-

fiscal year-

classificationend

Account item
Profit for the year

Other comprehensive

AmountAmount10,396953

AmountDifferencesin recognition
andAmount－IFRS

measurement(152)

Amount11,197

incomeValuation difference on
available-for-salesecurities

Foreign currencytranslation adjustment
Remeasurements ofdefined benefit plans
Total other comprehensive
incomeComprehensive income

Note

Account item
Profit for the year

Other comprehensive
incomeChanges in fair value

1,279

－

－

160

1,439

measurements ofavailable-for-salefinancial assets(3,323)

4,133

－

5

－

－

(2,038)

4,133

－

8,357

5,087

－

(2,169)(1,359)

(41)

(35)

(2,049)45(2,202)

11,242Foreign currencytranslation

adjustments

Remeasurements of net
defined benefit

liabilities(assets)
Other comprehensive
income (loss) for
the year

Total comprehensive
income for the year

Comprehensive income
Comprehensive income

attributable to owners ofparentComprehensive income

attributable tonon-controlling interests

attributable to:
8,065

3,607

－

(1,330)10,341

292

1,479

－

(871)

900

53

Owners of the parent

Non-controlling interests

The differences in the amount of comprehensive income under Japanese GAAP and those under IFRS are mainly due to thefollowing reasons:
A. Reconciliation relating to the end of a reporting period
As for some consolidated subsidiaries that have a different closing date from that of the parent company, the Group carries out
consolidation by unifying the closing date of such subsidiaries or by preparing additional financial statements as of the end of thereporting period of the parent company. As a result, the amount of respective accounts in the consolidated statement of income
and consolidated statement of comprehensive income is affected.
B. Reclassifications in presentation
Items presented in “Selling, general and administrative expenses,” “Non-operating income,” “Non-operating expenses”,“Extraordinary income” and “Extraordinary losses” under Japanese GAAP are presented, as to financial-related items, in“Financial income” and “Financial costs” and, as to other items, in “Selling, general and administrative expenses,” “Other income”
and “Other expenses” under IFRS, respectively.
In addition, reclassification items impacting comprehensive income among those listed in the notes to the reconciliations of equity
also are factors in the differences in the amounts under Japanese GAAP and those under IFRS, regarding the amount ofrespective accounts in the consolidated statement of income and consolidated statement of comprehensive income.
Disclosure of major reconciliation items in the consolidated statement of cash flows for the previous fiscal year (from April 1, 2016
to March 31, 2017)
There is no significant difference between the consolidated statement of cash flows in accordance with Japanese GAAP and theconsolidated statement of cash flows disclosed in accordance with IFRS.

54

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

● Established: December 24, 1946

● Common stock: 14,494,287,162 Yen● Number of employees: 1,765

As of March 31, 2018

● 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
Tabata Asuka Tower4F, 1-1, Tabata 6-chome, Kita-ku, Tokyo, 114-0014 JAPAN・Research & Development Center
190-1, Fujihashi 1-chome, Nagaoka-shi, Niigata, 940-2141 JAPAN・Offices
Utsunomiya, Tokyo, Hamamatsu, Nagoya, Suzuka, Osaka, Mizushima, Kumamoto
・Branch OfficeHong Kong

55

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. / North Holland, 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 NIPPON SEIKI CO., LTD. acquired shares in Taiwan Nissei Display System Co., Ltd. on March 30,
2018, with the result that the capital ratio of NIPPON SEIKI CO., LTD. has increased from 80.0% to100.0%.
※2 The decision to dissolve Changzhou Nissei Display System Co., Ltd. was decided by the Board of
Directors held on February 20, 2017 and received the approval of the government body on April 10,
2018.

56

57

Ⅴ．PROFILE OF THE GROUP COMPANIESAs of March 31, 2018

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:● Significant consolidated subsidiaries
Name of Company

Voting rights
equity ratio

Main trade withsubsidiaries

Main activities

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

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.
Nippon Seiki Do Brasil
Ltda.
Thai Nippon Seiki Co., Ltd.

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
Manufacture and sales of motorcycle instruments

Selling and purchasing
products

PT. Indonesia Nippon Seiki

70.0

Vietnam Nippon Seiki Co.,Ltd.
NS Instruments India
Private Ltd.

70.0

Manufacture and sales of automotive andmotorcycle instruments / Manufacture of control
panels for office automation equipment and remotecontrollers for air conditioners and household
equipment
Manufacture and sales of automotive andmotorcycle instruments
Manufacture and sales of motorcycle instruments
Manufacture and sales
motorcycle instruments

Selling products

100.0
100.0

100.0

58

of

automotive

andPurchasing products
and component parts
Purchasing products
and component parts

Selling products
Selling products

Selling products
None
Selling products

Selling products
Selling products

Name of Company

Voting rights
equity ratio

Hong Kong Nippon Seiki
Co., Ltd.

100.0

Dongguan Nissei Electronics
Co., Ltd.

100.0

Shanghai Nissei Display
System Co., Ltd.

80.0

Taiwan Nissei Display
System Co., Ltd.
Changzhou Nissei Display
System Co., Ltd.
Nantong NS Advantech Co.,Ltd.
Wuhan Nissei Display
system Co., Ltd.
Nissei Display Sales andDevelopment Co., Ltd.
And 9 companies

Main trade withsubsidiaries

Main activities
Sales of control panels for office automationequipment and remote controllers for air
conditioners and household equipment
Manufacture of control panels for office automationequipment and remote controllers for air
conditioners and household equipment
Manufacture and sales of automotive andmotorcycle instruments

Purchasing and selling
products

100.0

Manufacture and sales
motorcycle instruments

andSelling products

100.0

Selling products

100.0

Manufacture and sales of components forautomotive and motorcycle instruments
Compounding, and coloring of plastics, and trading

75.0

Manufacture of automotive instruments

91.0

Sales of products manufactured by Nippon Seiki
Group in the Chinese market

ofautomotive

Selling products
Selling products andpurchasing component
parts

Purchasing component
parts
Selling products
Selling products

Notes:※1 NIPPON SEIKI CO., LTD. acquired shares in Taiwan Nissei Display System Co., Ltd. on March 30,
2018, with the result that the capital ratio of NIPPON SEIKI CO., LTD. has increased from 80.0% to100.0%.
※2 The decision to dissolve Changzhou Nissei Display System Co., Ltd. was decided by the Board of
Directors held on February 20, 2017 and received the approval of the government body on April 10,
2018.
● The affiliated company is as follow:
・Affiliated company (which does not influence the consolidated financial statements)
・JNS Instruments Ltd.

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Ⅵ. OWNERSHIP OF THE COMPANY’S SHARESAs of March 31, 2018

2,414 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 (6.55%)

JP MORGAN CHASE BANK 385632

2,670 (4.66%)

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

2,657 (4.64%)

The Bank of Tokyo-Mitsubishi UFJ, Ltd.

1,779 (3.10%)

The Master Trust Bank of Japan, Ltd.

1,737 (3.03%)

Japan Trustee Services Bank, Ltd.

1,577 (2.75%)

The Daishi Bank, Ltd.

1,568 (2.73%)

Yamaha Motor Co., Ltd.

1,217 (2.12%)

Shareholding association of Nippon Seiki Employees

1,192 (2.08%)

Nichia Corporation

1,188 (2.07%)

Notes:※1 Percentage of shareholdings ratio is calculated by deducting 3,642,961 shares of treasury stocks fromtotal shares issued.
※2 Nippon Seiki holds treasury stocks (3,642,961 shares), but this has not been included in the above
major shareholders’ information.
※3 The Bank of Tokyo-Mitsubishi UFJ, Ltd., has changed its name to MUFG Bank, Ltd., on April 1,
2018.
● Distribution ratio by type of shareholder
Individuals
etc.
22.41%● Distribution ratio by number of shares of total
CapitalBanks
28.33%

From under
100 to 9,999
shares
5.93%

Securities
Companies
0.30%

Foreign
Corporationsetc.
35.57%

Other
Corporations
13.39%

500,000
shares andover
67.45%

From 10,000
to 49,999
shares
5.38%

From 50,000
to 99,999
shares
2.64%

From 100,000
to 499,999
shares18.60%

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.
※ Nippon Seiki has changed the size of the share-unit from 1,000 to 100 on October 1st, 2017.

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Ⅶ．BOARD OF DIRECTORS AND AUDIT AND SUPERVISORY BOARD MEMBERS
As of June 27, 2018

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

Takashi Sakikawa

Outside Director

Eiko Tomiyama

Audit & Supervisory Board Members〈Name〉

Audit & Supervisory Board Member (Full-time)

Haruhiko Otaki

Audit & Supervisory Board Member (Full-time)

Tatsuya Nagai

Audit & Supervisory Board Member

Michiaki Miyajima

Audit & Supervisory Board Member

Etsuo Saiki

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