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

Consolidated Financial Statements
March 31, 2014

F-TECH INC.
19, Showanuma, Shobu-cho, Kuki City, Saitama, JAPANConsolidated financial statements, etc.
(1) Consolidated financial statementsi)Consolidated balance sheets(Millions of yen)
As of March 31, 2013

As of March 31, 2014

5,304
17,151
3,874
2,905
6,371
263
3,356

7,823
24,016
3,581
3,485
6,809
357
3,331

39,22749,404

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade
Merchandise and finished goods
Work in process
Raw materials and supplies
Deferred tax assets
Other
Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures, net
Machinery, equipment and vehicles, net
Dies and tools, net
Land
Leased assets, net
Construction in progress
Other, net*1*1

14,99818,138
941
5,878
393
5,410
683

*1

17,951
21,552
1,514
6,093
415
6,521
1,095

*2

46,444*2

55,144*1*1

Total property, plant and equipment
Intangible assets
SoftwareRight of using facilities
Other

878
47
35

781
66
10

Total intangible assets

961

858

Investments and other assets
Investment securities
Long-term loans receivable
Net defined benefit asset
Deferred tax assets
Other
Allowance for doubtful accounts*3

Total investments and other assets
Total non-current assets
Total assets

-1-

3,527
305
–
175
618
(61)

*3

4,204
305
194
280
730
(61)

4,566

5,654

51,972

61,657

91,200111,062(Millions of yen)
As of March 31, 2013

As of March 31, 2014

13,54015,004
9,429
236
141
4,681
170
4
2,897

16,17012,778
10,146
366
433
3,345
138
89
3,365

Liabilities
Current liabilities
Notes and accounts payable - trade
Short-term loans payable
Current portion of long-term loans payable
Lease obligations
Income taxes payable
Accounts payable - otherNotes payable - facilities
Provision for directors’ bonuses
Other

*1
*1

Total current liabilities*1

46,106

Non-current liabilities
Long-term loans payable
Lease obligations
Deferred tax liabilities
Provision for retirement benefits
Provision for directors’ retirement benefits
Net defined benefit liability
Long-term accounts payable - other
Negative goodwill
Other

*1

Total non-current liabilities

14,941
173
2,019
581
229
–
8
89
34

46,833*1

21,212
176
2,447
–
204
249
9
83
5

18,077

24,387

Total liabilities

64,18371,220Net assets
Shareholders’ equity
Capital stock
Capital surplus
Retained earnings
Treasury shares

2,677
3,115
10,762
(18)

4,790
5,228
13,958(18)

16,53623,958503

619(1,946)
–

1,012
284

(1,443)

1,916

Minority interests

11,922

13,967

Total net assets

27,016

39,842

91,200111,062

Total shareholders’ equity
Accumulated other comprehensive income
Valuation difference on available-for-salesecurities
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive income

Total liabilities and net assets

-2-

ii)

Consolidated statements of income and comprehensive income(Millions of yen)
Fiscal year ended
March 31, 2013

Net sales
Cost of sales*1

Gross profit

Fiscal year ended
March 31, 2014

144,089
127,659*1

16,429Selling, general and administrative expenses*2, *3Operating income
Non-operating income
Interest income
Dividend income
Share of profit of entities accounted for using equity
methodForeign exchange gains
Interest on refund
Other
Total non-operating income
Non-operating expenses
Interest expenses
Other
Total non-operating expenses
Ordinary income
Extraordinary income
Gain on sales of non-current assets
Insurance income
Gain on change in equity*4

Total extraordinary income

11,94920,275*2, *3*5*6*7

Total extraordinary losses

13,550

4,479

6,725

73
33

41
35

321

436

47
67
110

377
–
199

654

1,090

538
21

680
57

560

738

4,574

7,077

27
433
1

*4

462

Extraordinary losses
Loss on sales of non-current assets
Loss on retirement of non-current assets
Business structure improvement expenses
Impairment loss
Loss on disaster
Other

172,456
152,180

1
118
4,919
12
237
1

48
–
–
48

*5
*6

*7

18
98
–
13
–
–

5,291

130

Income (loss) before income taxes and minority
interests

(253)

6,995

Income taxes - current
Refund of income taxes
Income taxes - deferred

1,634
(509)
288

2,093
–
78

Total income taxes

1,414

2,171

Income (loss) before minority interests(1,668)

4,824

Minority interests in income

1,463

1,504

Net income (loss)(3,131)

3,319

Minority interests in income

1,463

1,504

Income (loss) before minority interests(1,668)

4,824

-3-

(Millions of yen)
Fiscal year ended
March 31, 2013
Other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Share of other comprehensive income of entities
accounted for using equity method
Total other comprehensive income*8Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners ofparentComprehensive income attributable to minority
interests-4-

Fiscal year ended
March 31, 2014

113
3,955

28
3,891

210

190

4,278

*8

4,110

2,610

8,934

(154)

6,394

2,765

2,539

iii) Consolidated statements of changes in net assets
Fiscal year ended March 31, 2013
(Millions of yen)
Shareholders’ equity

Balance at beginning of current
periodCapital stock

Capital surplus

2,677

3,115

Retained earnings

Treasury shares

14,102(23)

Total shareholders’equity19,871

Changes of items during period
Issuance of new shares–

Dividends of surplus

(247)

(247)

Net income (loss)(3,131)(3,131)

39

39

(0)

–

Increase or decrease associatedwith the fiscal year-end changeof consolidated subsidiaries
Transfer of loss on disposal oftreasury shares

0

Purchase of treasury shares–

Disposal of treasury shares

(0)

5

5

Net changes of items other thanshareholders’ equity
Total changes of items during
periodBalance at end of current period––(3,339)5(3,334)

2,677

3,115

10,762(18)

16,536

Minority
interests

Total net assets

Accumulated other comprehensive income
Valuationdifference on
available-forsale securities
Balance at beginning of current
period324

Total
Foreign currency Remeasurements accumulated
othertranslationof definedadjustment
benefit planscomprehensive
income(4,745)–(4,420)9,770

25,221

Changes of items during period
Issuance of new shares–

Dividends of surplus(247)

Net income (loss)(3,131)

Increase or decrease associatedwith the fiscal year-end changeof consolidated subsidiaries

39

Transfer of loss on disposal oftreasury shares–

Purchase of treasury shares–

Disposal of treasury shares

5

Net changes of items other thanshareholders’ equity

178

2,798

Total changes of items during
period178

2,798

Balance at end of current period503(1,946)

-5-

2,976

2,152

5,129

–

2,976

2,152

1,795

–

(1,443)

11,92227,016

Fiscal year ended March 31, 2014
(Millions of yen)
Shareholders’ equity

Balance at beginning of current
periodCapital stock

Capital surplus

2,677

3,115

2,112

2,112

Retained earnings

Treasury shares

10,762(18)

Total shareholders’equity16,536

Changes of items during period
Issuance of new shares

4,225

Dividends of surplus

(123)

(123)

Net income (loss)

3,319

3,319

Increase or decrease associatedwith the fiscal year-end changeof consolidated subsidiaries–

Transfer of loss on disposal oftreasury shares–

Purchase of treasury shares(0)

Disposal of treasury shares(0)–

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

2,112

2,112

3,195

(0)

7,421

Balance at end of current period

4,790

5,228

13,958(18)

23,958

Minority
interests

Total net assets

11,92227,016

Accumulated other comprehensive income
Valuationdifference on
available-forsale securities
Balance at beginning of current
period503

Total
Foreign currency Remeasurements accumulatedtranslationof definedothercomprehensive
adjustment
benefit plansincome(1,946)–(1,443)

Changes of items during period
Issuance of new shares

4,225

Dividends of surplus(123)

Net income (loss)

3,319

Increase or decrease associatedwith the fiscal year-end changeof consolidated subsidiaries–

Transfer of loss on disposal oftreasury shares–

Purchase of treasury shares(0)

Disposal of treasury shares–

Net changes of items otherthan shareholders’ equity

116

2,958

284

3,359

2,044

5,404

Total changes of items during
period

116

2,958

284

3,359

2,044

12,825

Balance at end of current period

619

1,012

284

1,916

13,967

39,842-6-

iv)

Consolidated statements of cash flows(Millions of yen)
Fiscal year ended
March 31, 2013

Cash flows from operating activities
Income (loss) before income taxes and minority
interests
Depreciation
Impairment loss
Amortization of goodwill
Increase (decrease) in provision for retirement
benefits
Increase (decrease) in assets and liabilities related toretirement benefits
Increase (decrease) in provision for directors’
retirement benefits
Increase (decrease) in provision for directors’
bonuses
Increase (decrease) in allowance for doubtful
accounts
Interest and dividend income
Insurance income
Interest expenses
Foreign exchange losses (gains)Share of (profit) loss of entities accounted for using
equity method
Loss (gain) on sales of property, plant andequipment
Loss on retirement of property, plant and equipment
Business structure improvement expenses
Decrease (increase) in notes and accounts
receivable - trade
Decrease (increase) in inventories
Increase (decrease) in notes and accounts payable trade
Other, net

Fiscal year ended
March 31, 2014

(253)

6,995

6,544
12
(5)

7,508
13
(5)

(212)

–

–

(190)

20

(24)

(76)

85

(7)

–

(107)
(433)
538
0

(77)
–
680
(3)

(321)

(436)

(26)

(30)

118
4,919

98
–

4,243

(5,110)(1,693)516(3,957)

1,386(1,616)

1,354

Subtotal

7,684

12,760Interest and dividend income received
Interest expenses paid
Proceeds from insurance income
Payments for extra retirement payments
Income taxes paid
Income taxes refund

123
(589)
1,357
–
(2,634)
509

113
(703)
–
(1,426)(1,441)–

Net cash provided by (used in) operating activities

6,450

9,301

-7-

(Millions of yen)
Fiscal year ended
March 31, 2013
Cash flows from investing activities
Purchase of property, plant and equipment
Proceeds from sales of property, plant andequipment
Purchase of intangible assets
Purchase of investment securities
Proceeds from sales of investment securities
Other, net

Fiscal year ended
March 31, 2014

(9,535)(12,966)

86

84

(127)
(182)
2
(92)

(143)
(28)
–
(53)

Net cash provided by (used in) investing activities(9,848)(13,108)

Cash flows from financing activities
Net increase (decrease) in short-term loans payable
Proceeds from long-term loans payable
Repayments of long-term loans payable
Proceeds from issuance of common shares
Purchase of treasury shares
Proceeds from sales of treasury shares
Repayments of installment payables
Cash dividends paid
Cash dividends paid to minority shareholders
Repayments of finance lease obligations

5,715
7,662
(8,865)
–
–
5
(191)
(246)
(658)
(445)

(3,603)
18,953(12,687)
4,225
(0)
–
(192)
(123)
(495)
(395)

Net cash provided by (used in) financing activities

2,976

5,681

Effect of exchange rate change on cash and cash
equivalents

416

643

Net increase (decrease) in cash and cash equivalents

(4)

2,518

Cash and cash equivalents at beginning of period
Increase (decrease) in beginning balance associatedwith the fiscal year-end change of consolidated
subsidiaries

5,229

5,304

79

–

Cash and cash equivalents at end of period

*1

-8-

5,304

*1

7,823

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

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

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

3.

Disclosure about application of equity method(1) Number of non-consolidated subsidiaries accounted for using the equity method: One
Sankyo Press Inc.
(2) Number of associates accounted for using the equity method: FourJohnan Manufacturing Inc.
JOHNAN AMERICA, Inc.
- 10 -

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

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

5.

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

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

revenues and expenses of foreign consolidated subsidiaries are translated into Japanese yen at the
average exchange rates. Translation adjustments are included in foreign currency translation adjustment
and minority interests in net assets in the consolidated balance sheets.
(6) Accounting policy for hedgingi)Accounting policy for hedging
The special treatment is applied to interest rate swaps which satisfy requirements for the special
treatment.
ii) Hedging instruments and hedged items
Hedging instruments
Hedged items
Interest rate swaps
Loans payableiii) Hedging policy
To hedge the interest rate fluctuation risk, all hedged items are hedged in principle using interest rate
swaps for interest expenses on loans payable.
iv) Method for assessment of hedge effectiveness
It is assessed whether the substantial terms and conditions on the notional amount of hedging
instruments and hedged items are the same, and whether the hedging instruments fully offset
fluctuations in exchange rates and cash flows at the inception of the hedges and on an ongoing basis.
Evaluation of the hedge effectiveness of interest rate swaps for which the special treatment is appliedis omitted.
(7) Accounting policy for goodwill
Goodwill and negative goodwill that were recognized on or before March 31, 2010 have beenamortized by the straight-line method over periods not exceeding 20 years based on the estimatedperiod during which their effect will be recognized for each investment.
(8) Scope of cash and cash equivalents in consolidated statements of cash flows
Cash and cash equivalents consist of cash on hand, demand deposits, and short-term investments thatare readily convertible to known amounts of cash and subject to insignificant risk of change in value
and due within three months from the date of acquisition.
(9) Other significant matters for preparing consolidated financial statements
Accounting policy for consumption taxes
Tax exclusive method is adopted.

- 13 -

Changes in accounting policies
Application of the Accounting Standard for Retirement Benefits and Guidance on the AccountingStandard for Retirement Benefits
Effective from the fiscal year ended March 31, 2014, the Company and its consolidated domestic
subsidiaries have applied the Accounting Standard for Retirement Benefits (ASBJ Statement No. 26,
May 17, 2012 (hereinafter, the “Statement No. 26”)) and Guidance on Accounting Standard for
Retirement Benefits (ASBJ Guidance No. 25, May 17, 2012 (hereinafter, the “Guidance No. 25”))
except the article 35 of the Statement No. 26 and the article 67 of the Guidance No. 25 and actuarial
gains and losses that are yet to be recognized have been recognized and the differences between
retirement benefit obligations and plan assets have been recognized as net defined benefit asset and net
defined benefit liability.
In accordance with the article 37 of the Statement No. 26, the effect of the change in accounting
policies arising from initial application has been recognized in remeasurements of defined benefit plansin accumulated other comprehensive income.
As a result of the application, net defined benefit asset in the amount of 194 million yen and net defined
benefit liability in the amount of 249 million yen have been recognized and accumulated othercomprehensive income has increased by 284 million yen, at the end of the current fiscal year.
Net assets per share have increased by 18.55 yen.
New accounting standards not yet applied• Accounting Standard for Retirement Benefits (ASBJ Statement No. 26, May 17, 2012)• Guidance on Accounting Standard for Retirement Benefits (ASBJ Guidance No. 25, May 17, 2012)(1) Overview
The Accounting Standard for Retirement Benefits and Guidance on the Accounting Standard for
Retirement Benefits have been revised focusing on the treatment of actuarial gains and losses and past
service costs that are yet to be recognized, the method of calculating retirement benefit obligations andservice costs and the enhancement of disclosures.
(2) Application schedule
The change in the method of calculating retirement benefit obligations and service costs is scheduled tobe applied from the beginning of the fiscal year ending March 31, 2015.
These accounting pronouncements will not retrospectively apply to the consolidated financial
statements in prior periods in accordance with the transitional measures provided for in the AccountingStandard for Retirement Benefits and Guidance on the Accounting Standard for Retirement Benefits.
(3) Effect of application of the Accounting Standard and Guidance
The effect of the change in method of calculating retirement benefit obligations and service costs on the
consolidated financial statements is being estimated as of the filing date of the Annual Securities Reportfor the fiscal year ended March 31, 2014.

- 14 -

Notes to consolidated balance sheets*1. Assets pledged and liabilities secured
Assets pledged as collateral are as follows:(Millions of yen)
As of March 31, 2013

As of March 31, 2014

333

192

[110]

[–]

50

–

[50]

[–]

240

240

624

432

[160]

[–]

As of March 31, 2013

As of March 31, 2014

600

–

[225]

[–]

130

39

[22]

[–]

176

77

[22]

[–]

907

117

[270]

[–]

Buildings and structures

Machinery, equipment and vehicles

Land
Total

Liabilities secured are as follows:(Millions of yen)
Short-term loans payable

Current portion of long-term loans payable

Long-term loans payable

Total

In the above tables, figures in brackets represent mortgages on factory foundation and the relevant debts.
*2. Accumulated depreciation of property, plant and equipment is as follows:(Millions of yen)
As of March 31, 2013

As of March 31, 2014
76,72983,569*3. Investment securities relating to non-consolidated subsidiaries and associates are as follows:(Millions of yen)
As of March 31, 2013

As of March 31, 2014

2,007

2,614

Investment securities (stocks)- 15 -

4.

The Group has entered into overdraft agreements and loan commitment agreements with 12 banks toefficiently raise working capital. Balance of unexecuted borrowings at end of period under these
agreements is shown below:(Millions of yen)
As of March 31, 2013

As of March 31, 2014

Total amount of overdraft facility limit and loan
commitment

33,35834,429Balance of borrowings outstanding

13,355

11,20220,002

23,227

Unexecuted balance- 16 -

Notes to consolidated statements of income and comprehensive income*1. The ending balance of inventories represents the amount after write-down of the book value inaccordance with the decline in profitability and the following loss (reversal) on valuation of inventories
is included in cost of sales.
(Millions of yen)
Fiscal year ended March 31, 2013

Fiscal year ended March 31, 201485

17

*2. The major items of selling, general and administrative expenses are as follows:(Millions of yen)
Fiscal year ended
March 31, 2013

Fiscal year ended
March 31, 2014

Haulage expenses

1,373

1,452

Salaries, allowance and bonuses

3,480

4,071

237

249

Provision for directors’ bonuses

4

89

Provision for directors’ retirement benefits

43

31

Depreciation

401

514

2,367

2,667

Retirement benefit costs

Research and development expenses*3. Research and development expenses included in general and administrative expenses andmanufacturing cost for the current period(Millions of yen)
Fiscal year ended
March 31, 2013

Fiscal year ended
March 31, 2014
2,367

2,667

*4. The breakdown of gain on sales of non-current assets is as follows:(Millions of yen)
Fiscal year ended
March 31, 2013

Fiscal year ended
March 31, 2014

Machinery, equipment and vehicles

18

16

Land

5

22

Other

3

9

27

48

Total

*5. The breakdown of loss on sales of non-current assets is as follows:(Millions of yen)
Fiscal year ended
March 31, 2013

Fiscal year ended
March 31, 2014

Machinery, equipment and vehicles

0

15

Other

1

2

1

18

Total

- 17 -

*6. The breakdown of loss on retirement of non-current assets is as follows:(Millions of yen)
Fiscal year ended
March 31, 2013

Fiscal year ended
March 31, 2014

Buildings and structures

27

42

Machinery, equipment and vehicles

70

12Dies and tools

8

40

Other

11

3

118

98

Total

*7. Impairment loss
For the fiscal year ended March 31, 2013, the Group recorded impairment loss on the following asset
groups:Location

Use

Type

Kameyama Plant(Kameyama City, Mie)

Auto parts
Production-related facilities

Buildings and structures,
machinery, equipment andvehicles, etc.

Kumagaya City, Saitama

Idle assets

Land

Amount3,472 million yen
12 million yen

Of the above figures, 12 million yen is presented as impairment loss and 3,472 million yen is presented asbusiness structure improvement expenses.
In principle, the Group’s business assets are grouped by the categories for managerial accounting and theGroup’s idle assets are grouped by each asset.
In response to the deterioration of the market environment, the Kuki and Kameyama Plants will
implement production reforms including consolidating excess production facilities and plants andestablishing a mutually complementary production system. As a result of reconsidering the future cash
flows in this regard, the carrying amount of the asset group of Kameyama Plant was reduced to therecoverable amount and the reduced amount was recorded as business structure improvement expenses inextraordinary losses.
The recoverable amount of this asset group was measured based on the net selling price and value in use.
The net selling price was principally calculated based on the assessed value of fixed assets, while thevalue in use was calculated by discounting future cash flows at a discount rate of 4.54%.
The carrying amount of land as idle assets was reduced to the recoverable amount, and the reduced
amount is recorded as impairment loss in extraordinary losses.
The recoverable amount was measured at the net selling price that was assessed by appraisal value.
For the fiscal year ended March 31, 2014, the Group recorded impairment loss on the following asset
groups:Location
Kumagaya City, Saitama

Use
Idle assets

Type
Land

Amount13 million yen

The carrying amount of land as idle assets was reduced to the recoverable amount, and the reduced
amount is recorded as impairment loss in extraordinary losses.
The recoverable amount was measured at the net selling price that was assessed by appraisal value.

- 18 -

*8. Notes regarding reclassification adjustments and tax effects relating to other comprehensive income(Millions of yen)
Fiscal year ended
March 31, 2013

Fiscal year ended
March 31, 2014

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

172

42

0

–

Pre-adjustment of tax effect

172

42

Tax effect amount

(59)

(14)

Valuation difference on available-for-sale securities

113

28

3,955

3,891

–

–

3,955

3,891

–

–

3,955

3,891

210

190

–

–

210

190

4,278

4,110

Reclassification adjustments

Foreign currency translation adjustment
Increase (decrease) during the period
Reclassification adjustments
Pre-adjustment of tax effectTax effect amountForeign currency translation adjustment
Share of other comprehensive income of entities
accounted for using equity method
Increase (decrease) during the period
Reclassification adjustments
Share of other comprehensive income of entities
accounted for using equity method
Total other comprehensive income- 19 -

Notes to consolidated statements of changes in net assets
Fiscal year ended March 31, 2013
1. Class and total number of issued shares and class and number of treasury shares(Thousands of shares)
Number of shares asof beginning ofcurrent fiscal year

Number of shares
increased in current
fiscal year

Number of shares
decreased in current
fiscal year

Number of shares asof end of current
fiscal year

Common shares

12,390––12,390Total

12,390––12,390Common shares

35

–

2

32

Total

35

–

2

32

Issued shares

Treasury shares(Note)

2.

The breakdown of the decrease in number of treasury shares is as follows:• Decrease from the sale of shares of parent held by consolidated subsidiaries: 2,975 shares

Dividends(1) Cash dividends paid

Resolution

Class of shares

Total cash
dividend(Millions of yen)

Source ofdividends

Dividend pershare (Yen)Record date

Effective date

Annual General
Meeting of
Shareholders heldon June 21, 2012

Common shares

123

Retained earnings

10

March 31, 2012

June 22, 2012

Board of Directors’
meeting held on
November 2, 2012

Common shares

123

Retained earnings

10

September 30,
2012

November 30,
2012- 20 -

Fiscal year ended March 31, 2014
1. Class and total number of issued shares and class and number of treasury shares(Thousands of shares)
Number of shares asof beginning ofcurrent fiscal year

Number of shares
increased in current
fiscal year

Number of shares
decreased in current
fiscal year

Number of shares asof end of current
fiscal year

Common shares

12,3903,000–

15,390Total

12,3903,000–

15,390Common shares

32

0

–

32

Total

32

0

–

32

Issued shares

Treasury shares(Note)

2.

The breakdown of the increase in number of common shares is as follows:• Increase from the issuance of new shares resulting from the capital increase through the public offering withpayment date of January 27, 2014: 2,610,000 shares• Increase from the issuance of new shares resulting from the capital increase through the third-party allotment withpayment date of February 5, 2014: 390,000 shares• Increase from the purchase of treasury shares less than one unit: 69 shares

Dividends(1) Cash dividends paid

Resolution

Class of shares

Total cash
dividend(Millions of yen)

Board of Directors’
meeting held on
November 1, 2013

Common shares

123

Source ofdividends

Retained earnings

Dividend pershare (Yen)Record date

Effective date

10

September 30,
2013

December 2, 2013

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

Class of shares

Total cash
dividend(Millions of yen)

Annual General
Meeting of
Shareholders heldon June 19, 2014

Common shares

153

Source ofdividends

Retained earnings- 21 -

Dividend pershare (Yen)10

Record date

Effective date

March 31, 2014

June 20, 2014

Notes to consolidated statements of cash flows*1. Reconciliation of ending balance of cash and cash equivalents with account balances per balance sheet(Millions of yen)
Fiscal year ended
March 31, 2013
Cash and deposits

5,304

7,823

–

–

5,304

7,823

Time deposits with maturity over 3 months
Cash and cash equivalents

2.

Fiscal year ended
March 31, 2014

Description of significant transactions not requiring use of cash or cash equivalents(1) Assets and liabilities associated with finance lease transactions(Millions of yen)
Fiscal year ended
March 31, 2013

Assets and liabilities associated with finance leasetransactions

258- 22 -

Fiscal year ended
March 31, 2014521

Notes on leases
As lessee
1. Finance lease transactions
Finance lease transactions that do not transfer ownershipi) Leased assets
Property, plant and equipment
Production facilities:
Dies and tools, machinery and equipment, and others
Other than production facilities: Vehiclesii) Depreciation of leased assets
Depreciation of leased assets is as stated in “5. Disclosure of accounting policies, (2) Accounting
policy for depreciation of significant assets” under “Basis of presentation and significant accounting
policies for preparation of consolidated financial statements.”
For finance lease transactions that do not transfer ownership and commenced on or before March 31,
2008, the accounting treatment follows the method applicable to ordinary rental transactions. The
detail is as shown below:(1) Acquisition cost equivalent, accumulated depreciation equivalent and net book value equivalentat end of period(Millions of yen)
As of March 31, 2013
Acquisition costequivalent
Machinery, equipment and vehicles

Accumulated
depreciation equivalent

Net book value
equivalent at end of
period

1,966

1,640

325

Other

48

43

4

Total

2,014

1,684

330
(Millions of yen)

As of March 31, 2014
Acquisition costequivalent
Machinery, equipment and vehicles

Accumulated
depreciation equivalent

Net book value
equivalent at end of
period

1,460

1,358

101

Other

44

43

0

Total

1,504

1,402

102

(Note)

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

(2) Outstanding balance of future lease payments at end of period, etc.
Outstanding balance of future lease payments at end of period(Millions of yen)
As of March 31, 2013

As of March 31, 2014

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

224

95

Due over one year

105

6

330

102

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

- 23 -

(3) Lease fees paid and depreciation equivalent during the period(Millions of yen)
Fiscal year ended
March 31, 2013

Fiscal year ended
March 31, 2014

Lease fees paid

329

214

Depreciation equivalent

329

214

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

Operating lease transactions
Future lease payments under non-cancellable leases of operating lease transactions(Millions of yen)
As of March 31, 2013

As of March 31, 2014

Due within one year

128

209

Due over one year

175

172

Total

303

381

- 24 -

Notes on financial instruments
1. Overview of financial instruments(1) Policy on treatment of financial instruments
The Group raises necessary funds through loans from banks and other financial institutions according
to the capital expenditure plan to conduct the auto parts related business consisting of the manufactureand sale of auto parts and molds, equipment, tools, etc. for these parts. The Group utilizes derivatives tohedge its exposure to risks described below and adheres to a policy of not conducting derivativetransactions for speculative purposes.
(2) Financial instruments and related risks
Notes and accounts receivable - trade that are operating receivables are exposed to the credit risk ofcustomers. Although operating receivables denominated in foreign currencies, which arise fromintercompany transactions due to the globally developed businesses, are exposed to the risk offluctuations in exchange rates, forward exchange contracts are used to hedge this risk. Investment
securities are principally stocks related to business activities or capital alliances with business partners
and exposed to the risk of fluctuations in market prices. Long-term loans receivable are intercompany
loans and exposed to the credit risk of the borrowers.
Notes and accounts payable - trade that are operating payables are due within one year. Some of thesepayables are denominated in foreign currencies due to import of materials, etc. and exposed to the riskof fluctuations in exchange rates, however they are within the range of the outstanding balance ofaccounts payable - trade denominated in the same foreign currency on a permanent basis. Loanspayable and lease obligations on finance leases are principally for procuring funds needed for capital
expenditure and due for repayment within up to seven years after the fiscal year end. Since some ofthese obligations carry floating interest rates, they are exposed to the risk of fluctuations in interest
rates. Derivative transactions (interest rate swaps) are utilized to hedge this risk.
Derivative transactions consist of forward exchange contracts to hedge the foreign currency risk on
operating receivables arising from intercompany transactions, and interest rate swaps to hedge the risksof fluctuations in interest rates payable and foreign currency risk on loans payable. For information on
hedging instruments and hedged items, hedge policy, method for assessment of hedge effectiveness andother matters concerning hedge accounting, please refer to “Accounting policy for hedging” shown in“Disclosure of accounting policies” above.
(3) Risk management system for financial instrumentsi)Management of credit risk (customers’ default risk)
For operating receivables, the Company conducts maturity management and balance management by
counterparty through periodical monitoring of major business partners’ status in the operation
division and the management division of each department in accordance with the internal rules onsales management, and endeavors to quickly determine and mitigate any concern on the collection ofreceivables due to deteriorated financial conditions. Consolidated subsidiaries also manage operatingreceivables in the same manner in accordance with the Company’s internal rules on sales
management. For long-term loans receivable, the Company periodically monitors the status ofborrowers to quickly determine and mitigate any concern on the collection of loans due to theirdeteriorated financial condition and other factors.
ii) Management of market risk (fluctuation risk of foreign currency exchange and interest rates, etc.)
The Company and some consolidated subsidiaries utilize forward exchange contracts in principle tohedge the foreign currency exchange rate fluctuation risk by currency on a monthly basis for
operating receivables arising from intercompany transactions. Depending on the status of foreignexchange rates, forward exchange contracts are entered into for a maximum of 12 months in relation
to operating receivables denominated in foreign currencies that are certainly expected to arise fromforecast royalty transactions. The Company utilizes interest rate swaps to mitigate the risk offluctuations in interest rates payable on loans payable.
For investment securities, the Company periodically assesses market value and financial conditionsof issuers (business partners).
- 25 -

For derivative transactions, the Company assesses the positions to conduct hedge transactions on amonthly basis under the hedge policy of the funds and foreign exchange conference, in accordancewith the internal rules on foreign exchange risks which stipulate transaction authority, limit amounts
and other matters. Based on this assessment, the accounting department conducts transactions, andrecords information on the transaction and checks balances with counterparties.
iii) Management of liquidity risk associated with fund raising (risk of inability to pay on due date)
The Company’s accounting department prepares and updates financial plans annually and monthly
based on reports from each department.
(4) Supplementary explanation concerning fair values of financial instruments
Fair values of financial instruments comprise of values based on market prices and reasonably
measured values where market prices are unavailable. As several variable factors are incorporated in
calculating the relevant fair value, the resulting amount may vary depending on the different
preconditions employed.

- 26 -

2.

Fair values of financial instruments
Carrying amounts on the consolidated balance sheets, fair values and differences therebetween of thefinancial instruments are shown below. However, financial instruments whose fair values are deemed to
be extremely difficult to determine are not included therein (Please refer to Note 2 below).
As of March 31, 2013
(Millions of yen)
Carrying amount on
the consolidatedbalance sheet

Fair value

Difference(1) Cash and deposits

5,304

5,304

–

(2) Notes and accounts receivable - trade17,151

17,151

–

1,239

1,239

–

244

241

(3)

(5) Notes and accounts payable - trade

13,54013,540–(6) Short-term loans payable

15,00415,004–(7) Long-term loans payable (*2)

24,371

24,44170(8) Lease obligations (*3)

410

416

6

(9) Derivatives total (*4)

(90)

(90)

–

(3) Investment securities
Available-for-sale securities (other securities)(4) Long-term loans receivable

305

Allowance for doubtful accounts (*1)

(*1)
(*2)
(*3)
(*4)

(61)

Amounts of allowance for doubtful accounts separately included in long-term loans receivable are excluded.
Current portion of long-term loans payable in current liabilities are included.
The total amount of lease obligations in current liabilities and lease obligations in non-current liabilities is presented.
Claims and obligations arising from derivative transactions are presented on a net basis. Net obligations are indicated inparentheses.

As of March 31, 2014
(Millions of yen)
Carrying amount on
the consolidatedbalance sheet

Fair value

Difference(1) Cash and deposits

7,823

7,823

–

(2) Notes and accounts receivable - trade

24,01624,016

–

1,308

1,308

–

244

244

0

(5) Notes and accounts payable - trade16,17016,170–(6) Short-term loans payable

12,778

12,778–(7) Long-term loans payable (*2)

31,35831,352(6)(8) Lease obligations (*3)

542

543

0

(9) Derivatives total (*4)

(6)

(6)

–

(3) Investment securities
Available-for-sale securities (other securities)(4) Long-term loans receivable

305

Allowance for doubtful accounts (*1)(61)(*1) Amounts of allowance for doubtful accounts separately included in long-term loans receivable are excluded.
(*2) Current portion of long-term loans payable in current liabilities are included.

- 27 -

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

As of March 31, 2013

As of March 31, 2014

2,007

2,614

281

281

2,288

2,895

Non-listed shares
Shares of subsidiaries and associates
Other
Total

The above are not included in “(3) Investment securities” above because their market prices are not available andthe future cash flows cannot be estimated reliably, and thus their fair values are deemed extremely difficult todetermine.
3. Redemption schedule for monetary receivables after the fiscal year end
As of March 31, 2013
(Millions of yen)
Due within one
year

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

Due over ten
years

Cash and deposits

5,304

–

–

–

Notes and accounts receivable - trade17,151

–

–

–

3

72

15

214

22,460

72

15

214

Long-term loans receivable
Total- 28 -

As of March 31, 2014
(Millions of yen)
Due within one
year

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

Due over ten
years

Cash and deposits

7,823

–

–

–

Notes and accounts receivable - trade

24,016

–

–

–

74

–

–

231

31,913––231

Long-term loans receivable
Total

4. Repayment schedule for long-term loans payable, lease obligations and other interest-bearing debts
As of March 31, 2013
(Millions of yen)
Due within one
year

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

Due over ten
years

Short-term loans payable

15,004–––Long-term loans payable

9,429

14,941

–

–

236

157

16

–

24,671

15,09916–

Lease obligations
Total
As of March 31, 2014

(Millions of yen)
Due within one
year

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

Due over ten
years

Short-term loans payable

12,778–––Long-term loans payable

10,146

21,212

–

–

366

165

11

–

23,291

21,377

11–

Lease obligations
Total- 29 -

Notes on securities
1. Available-for-sale securities (other securities)
As of March 31, 2013
(Millions of yen)Type

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

Carrying amount on
the consolidatedbalance sheet

Difference(1) Shares

1,227

505

721

(2) Bonds–––(3) Other

–

–

–

1,227

505

721

(1) Shares

11

13

(1)

(2) Bonds–––(3) Other

–

–

–

11

13

(1)

1,239

519

719

Subtotal

Subtotal

Total(Note)

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

As of March 31, 2014
(Millions of yen)Type

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

Carrying amount on
the consolidatedbalance sheet

Difference(1) Shares

1,292

530

761

(2) Bonds–––(3) Other

–

–

–

1,292

530

761

(1) Shares

16

18

(2)

(2) Bonds–––(3) Other

–

–

–

16

18

(2)

1,308

548

759

Subtotal

Subtotal

Total(Note)

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

- 30 -

2.

Available-for-sale securities (other securities) sold
As of March 31, 2013
(Millions of yen)Type

Sales amount

Total amount of sales gain

Total amount of sales loss

(1) Shares

2

–

0

(2) Bonds–––(3) Other

–

–

–

2

–

0

Total

As of March 31, 2014
(Millions of yen)Type

Sales amount

Total amount of sales gain

Total amount of sales loss

(1) Shares

–

–

–

(2) Bonds–––(3) Other

–

–

–

–

–

–

Total

- 31 -

Notes on derivatives
1. Derivative transactions to which hedge accounting is not applied(1) Foreign currency
As of March 31, 2013
(Millions of yen)
As of March 31, 2013
Classification

Type of transaction

Contract/notionalamountPortion ofcontract/notionalamount over one
year

Fair value

Valuation gain
(loss)

Forward exchange
contracts
Transactions otherthan market
transactions

Sell
U.S. dollar

866

–

(54)

(54)

Canadian dollar

571

–

(28)

(28)

Thai Baht

72

–

(7)

(7)

1,510

–

(90)

(90)

Total
(Note)

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

As of March 31, 2014
(Millions of yen)
As of March 31, 2014
Classification

Type of transaction

Contract/notionalamountPortion ofcontract/notionalamount over one
year

Fair value

Valuation gain
(loss)

Forward exchange
contracts
Transactions otherthan market
transactions

Sell
U.S. dollar

1,134

–

(6)

(6)

Canadian dollar

–

–

–

–

Thai Baht

–

–

–

–

1,134

–

(6)

(6)

Total
(Note)

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

(2) Interest rate
As of March 31, 2013
Not applicable.
As of March 31, 2014
Not applicable.

- 32 -

2.

Derivative transactions to which hedge accounting is applied(1) Foreign currency
As of March 31, 2013
Not applicable.
As of March 31, 2014
Not applicable.
(2) Interest rate
As of March 31, 2013
(Millions of yen)
As of March 31, 2013

Hedge accounting
methodSpecial treatment ofinterest rate swaps

Type of transaction

Principal hedged
items

Portion ofcontract/notionalamount over one
year

1,100

460

(9)

1,100

460

(9)

Fair value

Interest rate swaps
Receive variable,
pay fixed

Long-term loans
payableTotal(Note)

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

As of March 31, 2014
(Millions of yen)
As of March 31, 2014
Hedge accounting
methodSpecial treatment ofinterest rate swaps

Type of transaction

Principal hedged
items

Portion ofcontract/notionalamount over one
year

460

–

(2)

460

–

(2)

Fair value

Interest rate swaps
Receive variable,
pay fixed

Long-term loans
payableTotal(Note)

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

- 33 -

Notes on retirement benefits
Fiscal year ended March 31, 2013
1. Summary of retirement benefit plans adopted
The Company has established an employees’ pension fund plan and a constitution-based defined
benefit corporate pension plan. Some domestic consolidated subsidiaries have established constitutionbased defined benefit corporate pension plans and lump-sum retirement benefit plans.
Some foreign consolidated subsidiaries have established defined benefit plans.
As the employees’ pension fund plan, the Company has participated in the Social Welfare Pension Fundof Nippon Sheet Metal Presswork (multi-employer pension plan) since 1970.
2.

Information on retirement benefit obligations(Millions of yen)
(5,066)

a. Retirement benefit obligations
b. Plan assets

4,544

c. Unfunded retirement benefit obligations (a + b)

(521)

d. Actuarial gains and losses that are yet to be recognized(116)

e. Past service costs that are yet to be recognized(decrease in obligations)f.

56

Net amount carried on the consolidated balance sheet(c + d + e)g. Prepaid pension cost

(581)
–

h. Provision for retirement benefits (f − g)(581)

(Note) Some domestic consolidated subsidiaries apply simplified methods in calculating retirement benefit obligations.

3.

Information on retirement benefit costs(Millions of yen)344

a. Service cost (Note 2)
b. Interest cost96

c. Expected return on plan assets(92)

d. Net actuarial loss amortization

116

e. Past service costs amortization

56

f.

521

Retirement benefit costs (a + b + c + d + e)

(Notes) 1. Other than the above retirement benefit costs, the Company paid 220 million yen of contributions for themulti-employer pension plan-type employees’ pension fund plan (portion of owner’s contribution).
2. Retirement benefit costs of the consolidated subsidiaries that apply simplified methods are included in “a.
Service cost.”

4.

Basis for calculation of retirement benefit obligations
a. Attribution method for estimated retirement benefits to periods of service
Straight-line method
b. Discount rate
Principally 2.0%
c. Rate of expected return on plan assets
Principally 2.5%
d. Amortization period of past service obligation
5 years (charged to expenses by the straight-line method over a period within the average remaining
service years as incurred)- 34 -

e.

5.

Amortization period of actuarial gains and losses
Principally 5 years (the amount equally allocated by the straight-line method over a period within the
average remaining service years as incurred is charged to expenses from the year following therespective years in which it occurred)

Information on the multi-employer contributory pension plans to which the required contribution
amount is accounted for as retirement benefit costs(1) Funding position (As of March 31, 2012)(Millions of yen)
58,159Amount of plan assets
Amount of benefit obligations for the purpose of pension
financing calculation

77,075Difference(18,916)(2) Ratio of the Group’s members to the entire plan (As of March 31, 2012)
6.9%(3) Supplementary explanation
The main reasons for the difference in 1. above, are 12,628 million yen of past service liabilities forthe purpose of pension financing calculation and 6,288 million yen of deficiency carried-forward.
Under the plan, past service liabilities are amortized over 17 years using the equal repayment method.
The ratio in 2. above is different from the ratio of the Group’s actual contributions.

- 35 -

Fiscal year ended March 31, 2014
1. Summary of retirement benefit plans adopted
The Company has established an employees’ pension fund plan and a constitution-based defined
benefit corporate pension plan. Some domestic consolidated subsidiaries have established constitutionbased defined benefit corporate pension plans and lump-sum retirement benefit plans. Some foreign
consolidated subsidiaries have established defined benefit plans or the defined contribution plans.
Some consolidated subsidiaries apply simplified methods in calculating retirement benefit obligations.
As the employees’ pension fund plan, the Company has participated in the Social Welfare Pension Fundof Nippon Sheet Metal Presswork (multi-employer pension plan) since 1970. Because the Company
cannot reasonably calculate the amount of plan assets in terms of its contributions, retirement benefit
obligations for this plan are accounted for in the same manner as a defined contribution plan.
2.

Defined benefit plans(1) Reconciliation between the balance at April 1, 2013 and the balance at March 31, 2014 ofretirement benefit obligations (excluding plans to which the simplified method was applied)(Millions of yen)
4,852

Balance at April 1, 2013
Service cost

328

Interest cost

103

Actuarial loss (gain)

44

Benefits paid

(616)

Other

7

Balance at March 31, 2014

4,719

(2) Reconciliation between the balance at April 1, 2013 and the balance at March 31, 2014 of plan
assets (excluding plans to which the simplified method was applied)(Millions of yen)
4,465

Balance at April 1, 2013
Expected return on plan assets

114

Actuarial loss (gain)

169

Contributions paid by the employer

646

Benefits paid

(592)

Other

(0)

Balance at March 31, 2014

4,804

(3) Reconciliation between the balance at April 1, 2013 and the balance at March 31, 2014 of net
defined benefit liability for plans to which the simplified method was applied(Millions of yen)
133

Balance at April 1, 2013
Benefit costs

19

Benefits paid

(1)

Contributions paid by the employer(12)

Balance March 31, 2014139

- 36 -

(4) Reconciliation between the balances at end of period of retirement benefit obligations and plan
assets, and net defined benefit liability and net defined benefit asset recorded in the consolidatedbalance sheet(Millions of yen)
4,754

Funded retirement benefit obligations
Plan assets(4,888)(134)

Unfunded retirement benefit obligations

189

Total net liability (asset) for retirement benefits
at March 31, 2014

54

(Millions of yen)249

Net defined benefit liability
Net defined benefit asset(194)

Total net liability (asset) for retirement benefits
at March 31, 2014
(Note)

54

Includes plans to which simplified methods were applied.

(5) Retirement benefit costs(Millions of yen)
328

Service cost
Interest cost

103

Expected return on plan assets(114)

Net actuarial loss amortization

49

Past service costs amortization

56

Retirement benefit costs calculated using simplified
methods

19

Total

442

(6) Remeasurements of defined benefit plans
The breakdown of the items recorded in remeasurements of defined benefit plans (before deducting
tax effect) in accumulated other comprehensive income in the consolidated balance sheet is asfollows:
Actuarial gains and losses that are yet to be recognized(Millions of yen)
336

Total

336

(7) Plan assetsi)
Breakdown of major categories of plan assets
The ratio of major categories to total plan assets is as follows:
Bonds

29.0%

Equity securities

11.2

General account

57.7

Other

2.1
Total

100.0

- 37 -

ii)

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

(8) Actuarial assumptions
Major bases for actuarial calculations at end of period
Discount rate

Principally 2.0%

Long-term expected rate of returnPrincipally 2.5%

3.

Defined contribution plan
The required contribution amount to defined contribution plans of consolidated subsidiaries was 313
million yen.

4.

Multi-employer contributory pension plans
The required contribution amount to the multi-employer contributory pension plan-type employees’
pension fund plan, which is accounted for in the same manner as a defined contribution plan, was 186
million yen.
(1) Latest funding position of the multi-employer contributory pension plans (As of March 31, 2013)(Millions of yen)
64,698Amount of plan assets
Amount of benefit obligations for the purpose of pension
financing calculation

80,765Difference(16,067)(2) Ratio of the Group’s members to the entire plan (As of March 31, 2013)
6.9%(3) Supplementary explanation
The main reasons for the difference in (1) above, are 11,701 million yen of past service liabilities forthe purpose of pension financing calculation and 4,366 million yen of deficiency carried-forward.
Under the plan, past service liabilities are amortized over 20 years using the equal repayment method.
The ratio in (2) above is different from the ratio of the Group’s actual contributions.

Notes on share options, etc.
Not applicable.

- 38 -

Notes on tax effect accounting
1. Breakdown of deferred tax assets and deferred tax liabilities by major component
As of March 31, 2013

(Millions of yen)
As of March 31, 2014

Deferred tax assets
Tax loss carry forwards

1,703

2,619

Foreign tax deduction

1,335

1,098

968

990

1,284

901

Excess depreciation

411

419

Accrued bonuses

276

297

Loss on valuation of inventories

218

215

Net defined benefit liability–

100

Allowance for doubtful accounts

22

22

Accrued extra retirement payment, etc.

532–

Provision for retirement benefits

212

–

Other

372

337

Deferred tax assets subtotal

7,339

7,003

Valuation allowance(6,668)(6,215)670

788

Depreciation (foreign consolidated subsidiaries)(2,011)(2,280)

Valuation difference on available-for-sale securities

(252)

(266)

–

(68)

(51)

(62)

Total deferred tax liabilities(2,315)(2,677)

Net deferred tax assets (liabilities)(1,645)(1,889)Elimination of unrealized gains on non-current assets
Impairment loss

Total deferred tax assets
Deferred tax liabilities

Net defined benefit asset
Other(Note)Net deferred tax assets as of March 31, 2013 and March 31, 2014 are included in the following items in the
consolidated balance sheets.
(Millions of yen)
As of March 31, 2013
As of March 31, 2014

Current assets – deferred tax assets

263

357

Non-current assets – deferred tax assets

175

280

Current liabilities – other

(64)

(79)

(2,019)(2,447)

Non-current liabilities – deferred tax liabilities- 39 -

2.

Reconciliation of significant difference between statutory tax rate and effective tax rate after
application of tax effect accounting
As of March 31, 2013

As of March 31, 2014

37.4%

37.4%

Tax rate differences in foreign consolidated subsidiaries

167.0

(8.6)

Foreign withholding tax(21.8)

7.1(1,018.1)(4.2)

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

53.1

(2.3)

Expenses not deductible permanently such as entertainment
expenses

(6.9)

0.9

Inhabitant per capita tax

(4.5)

0.3

Refund of income taxes

200.7

–

Other

35.7

0.4

(557.4)31.0

Statutory tax rate
(Adjustments)

Change in valuation allowance

Effective tax rate after application of tax effect accounting

3.

Revision to deferred tax assets and deferred tax liabilities due to change in income tax rates
The Act for Partial Revision of the Income Tax Act, etc. (Act No. 10, 2014) was promulgated on March 31,
2014. With this revision, the special corporation tax for reconstruction, a surtax for reconstruction funding
after the Great East Japan Earthquake, will no longer be levied from the fiscal year beginning on or after
April 1, 2014. In conjunction with this, for temporary differences expected to be reversed in the fiscal year
beginning on April 1, 2014, the statutory tax rate used to calculate deferred tax assets and deferred tax
liabilities was changed from the previous rate of 37.4% to 35.0%.
The impact of this change in tax rates is immaterial.

- 40 -

Notes on asset retirement obligations
Not applicable.

Notes on real estate for lease, etc.
The Company and a subsidiary own rental properties and idle properties in Saitama Prefecture and otherareas.
In the current fiscal year, net rental revenue from the rental properties amounted to 4 million yen (rental
revenue was recorded in non-operating income) and impairment loss was 13 million yen (recorded in
extraordinary losses). Carrying amount on the consolidated balance sheet, increase (decrease) in thecurrent fiscal year and fair value of these real estate properties for lease, etc. are as follows:(Millions of yen)
Fiscal year ended
March 31, 2013

Fiscal year ended
March 31, 2014

Carrying amount on the consolidatedbalance sheet
Balance at beginning of period

932

875

Increase (decrease) during period

(56)

108

Balance at end of period

875

984

896

1,046

Fair value at end of period(Notes) 1. Carrying amount on the consolidated balance sheet is calculated by subtracting accumulated depreciation andimpairment loss from acquisition cost.
2. The increase (decrease) during the fiscal year ended March 31, 2014 includes an increase due to increase inidle assets (121 million yen) and a decrease due to impairment loss (13 million yen).
3. Fair values at end of period for major properties are based on the appraisal made by external real estateappraisers. Fair values for other properties are based on certain appraisal value and indicators that areconsidered to appropriately reflect market prices.

- 41 -

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

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

3.

Disclosure of net sales profit (loss), assets, liabilities, and other items for each reportable segment
Fiscal year ended March 31, 2013
(Millions of yen)
Reportable segments
Japan

North America

Total

Asia

Net sales
Net sales to external customers

32,90582,27028,913144,089

Transactions with other segments

12,284

1,004

1,714

15,004

Total

45,19083,27430,628159,093

(942)

4,406

993

4,458

43,69543,041

23,109109,847

Depreciation

2,410

3,230

1,307

6,949

Investments in entities accounted forusing equity method

1,641

181

–

1,823

Increase in property, plant andequipment and intangible assets

3,015

5,113

3,101

11,230

Segment profit (loss)
Segment assets
Other items- 42 -

Fiscal year ended March 31, 2014
(Millions of yen)
Reportable segments
Japan

North America

Total

Asia

Net sales
Net sales to external customers

30,170102,209

40,077

172,456

Transactions with other segments

12,816

1,240

1,822

15,880Total

42,986

103,449

41,899188,336

Segment profit

1,331

3,940

1,157

6,429

Segment assets

50,69748,01832,765

131,481

Depreciation

1,911

4,056

1,992

7,960

Investments in entities accounted forusing equity method

2,227

203

–

2,430

Increase in property, plant andequipment and intangible assets

3,011

4,296

5,767

13,075

Other items

4.

Differences between total amounts for reportable segments and amounts in the consolidated financial
statements and main details of these differences (matters relating to difference adjustments)(Millions of yen)
Fiscal year ended
March 31, 2013

Net sales

Fiscal year ended
March 31, 2014

Reportable segments total

159,093

188,336

Elimination of intersegment transactions(15,004)(15,880)

Net sales in the consolidated financial statements

144,089

172,456(Millions of yen)

Fiscal year ended
March 31, 2013

ProfitReportable segments total
Elimination of intersegment transactions
Operating income in the consolidated financial
statements

Fiscal year ended
March 31, 2014

4,458

6,429

21

295

4,479

6,725
(Millions of yen)

Fiscal year ended
March 31, 2013

AssetsFiscal year ended
March 31, 2014

Reportable segments total

109,847

131,481

Elimination of intersegment transactions(18,631)(20,404)

(15)

(14)

91,200111,062

Other adjustments
Total assets in the consolidated financial statements- 43 -

(Millions of yen)
Reportable segments total
Other items

Amount recorded in the
consolidated balance sheet

Adjustments

Fiscal year
Fiscal year
Fiscal year
Fiscal year
Fiscal year
Fiscal year
ended March ended March ended March ended March ended March ended March
31, 2013
31, 2014
31, 2013
31, 2014
31, 2013
31, 2014

Depreciation

6,949

7,960

(405)

(451)

6,544

7,508

Investments in entities
accounted for using equity
method

1,823

2,430

–

–

1,823

2,430

Increase in property, plantand equipment andintangible assets

11,23013,075

(534)

(360)

10,696

12,715(Note)

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

- 44 -

Information associated with reportable segments
Fiscal year ended March 31, 2013
1. Information by product or service
This information has been omitted as net sales to external customers in a single product or service
category account for more than 90% of net sales recorded in the consolidated statements of income.
2.

Information by geographical region(1) Net salesJapan
31,569(Note)U.S.A.
45,643(Millions of yen)Canada33,605

China

Other

23,087

10,183144,089

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

(2) Property, plant and equipment
Japan
15,552

3.

Total

U.S.A.
10,956(Millions of yen)Canada
9,635

China

Other

5,004

Total

5,295

Information for major customers

46,444(Millions of yen)Counterparty

Revenues

Honda Motor Co., Ltd. and its group companies

116,045

Relevant segment
All reportable segments

Fiscal year ended March 31, 2014
1. Information by product or service
This information has been omitted as net sales to external customers in a single product or service
category account for more than 90% of net sales recorded in the consolidated statements of income.
2.

Information by geographical region(1) Net salesJapan
28,935(Note)U.S.A.
62,877(Millions of yen)Canada35,601

China

Other

31,537

13,503

172,456

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

(2) Property, plant and equipment
Japan
16,145

3.

Total

U.S.A.
12,335(Millions of yen)Canada
9,079

China
9,158

Information for major customers

Other

Total

8,425

55,144(Millions of yen)Counterparty

Revenues

Honda Motor Co., Ltd. and its group companies- 45 -

137,708

Relevant segment
All reportable segments

Disclosure of impairment loss on non-current assets for each reportable segment
Fiscal year ended March 31, 2013
(Millions of yen)Japan
Impairment loss
(Note)

North America

3,484

Unallocatedamounts andelimination

Asia

–

–

Total

–

3,484

3,472 million yen of impairment loss for the fiscal year ended March 31, 2013 was recorded as businessstructure improvement expenses in extraordinary losses.

Fiscal year ended March 31, 2014
(Millions of yen)Japan
Impairment loss

North America
13

Unallocatedamounts andelimination

Asia

–

–

Total

–

13

Amortization and unamortized balance of goodwill for each reportable segment
Fiscal year ended March 31, 2013
(Millions of yen)Japan

North America

Unallocatedamounts andelimination

Asia

Total

Amortization during
period

–

0

–

–

0

Balance at end of
period

–

15

–

–

15

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

North America

Unallocatedamounts andelimination

Asia

Total

Amortization during
period

1

1

3

–

6

Balance at end of
period

26

26

51

–

105

Fiscal year ended March 31, 2014
(Millions of yen)Japan

North America

Unallocatedamounts andelimination

Asia

Total

Amortization during
period

–

0

–

–

0

Balance at end of
period

–

14

–

–

14

- 46 -

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

North America

Unallocatedamounts andelimination

Asia

Total

Amortization during
period

1

1

3

–

6

Balance at end of
period

25

24

48

–

98

Information about gain on bargain purchase for each reportable segment
Fiscal year ended March 31, 2013
Not applicable.
Fiscal year ended March 31, 2014
Not applicable.

- 47 -

Related parties
Fiscal year ended March 31, 2013
1. Related-party transactions(1) Transactions between the company filing the consolidated financial statements and relatedpartiesi)
The parent company and major shareholders (limited to companies) of the company filingthe consolidated financial statements
Type

Other
associate

Name

Honda
Motor Co.,Ltd.

Location

Minato-ku,
Tokyo

Capital stock
Transactionor
Nature of Voting rights Relationship Description
amountstakeholdingratiobusiness orwith theof(Millionsofrelated party transactions(Millions of occupation
(%)
yen)
yen)
Manufactureand sale of (Owned)
motor
86,067
Direct 20.6
vehicles andpassengers Indirect 0.7
car bodies

Purchaser of Sale ofproducts of finishedgoods
the Groupand seller ofPurchase ofparts andraw
rawmaterials
materials

Line item

Endingbalance(Millions ofyen)

22,935

Accounts
receivable trade

1,487

16,307

Accounts
payable trade

1,311(Notes) 1. Terms and conditions of transactions and policy on determination thereof(1) Selling prices are determined by making an estimate based on economic rationality in view of market prices
and the Company’s manufacturing technologies, submitting the estimate to the customer and then negotiatingon price.
(2) In purchases of raw materials, prices are determined in the same manner as general terms and conditions
through negotiations on price by reference to market prices.
2. In the above amounts, transaction amounts do not include consumption taxes while ending balances do.

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

Subsidiaryof otherassociates

Name

Honda of
America
Mfg., Inc.

Location

Ohio, U.S.A.

Subsidiaryof otherassociates

Honda
Ontario,
Canada, Inc. Canada

Subsidiaryof otherassociates

Honda
Manufacturing of
Alabama,
LLC

Alabama,
U.S.A.

Capital stock
Transactionor
Nature of Voting rights Relationship Description
amountstakeholdingratiobusiness orwith theof(Millionsofrelated party transactions(Millions of occupation
(%)
yen)
yen)
Manufactureand sale of
USD
motor
578,000
vehicles andthousandpassengers
car bodies
Manufactureand sale of
CAD
motor
226,090vehicles andthousandpassengers
car bodies
Manufactureand sale of
USD
motor
400,000
vehicles andthousandpassengers
car bodies–

Purchaser of
products ofSale ofthe Groupand seller of finishedgoods
parts andrawmaterials–

Purchaser of Sale ofproducts of finishedgoods
the Groupand seller ofPurchase ofparts andraw
rawmaterials
materials–- 48 -

Purchaser of Sale ofproducts of finishedgoods
the Groupand seller ofPurchase ofparts andraw
rawmaterials
materials

Line item

Endingbalance(Millions ofyen)

23,777

Accounts
receivable trade

2,430

21,325

Accounts
receivable trade

2,144

12,172

Accounts
payable trade

1,171

18,171

Accounts
receivable trade

1,583

10,123

Accounts
payable trade

1,020

Type

Subsidiaryof otherassociates

Name

Location

Honda
Automobile Ayutthaya,(Thailand) Thailand
Co., Ltd.

Capital stock
Transactionor
Nature of Voting rights Relationship Description
amountstakeholdingratiobusiness orwith theof(Millionsofrelated party transactions(Millions of occupation
(%)
yen)
yen)
Manufactureand sale of
5,460,000
motor
thousandvehicles andTHBpassengers
car bodies–

Purchaser of
products of
the Group
Sale ofand seller of finishedgoods
parts andrawmaterials

4,242

Line item

Accounts
receivable tradeEndingbalance(Millions of
yen)

1,213

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

2.

Notes on the parent company or major associates
Not applicable.

Fiscal year ended March 31, 2014
1. Related-party transactions(1) Transactions between the company filing the consolidated financial statements and relatedpartiesi)
The parent company and major shareholders (limited to companies) of the company filingthe consolidated financial statements
Type

Other
associate

Name

Honda
Motor Co.,Ltd.

Location

Minato-ku,
Tokyo

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

Purchaser of Sale ofproducts of finishedgoods
the Groupand seller ofPurchase ofparts andraw
rawmaterials
materials

Line item

Endingbalance(Millions ofyen)

21,180Accounts
receivable trade

2,128

14,351

Accounts
payable trade

1,331(Notes) 1. Terms and conditions of transactions and policy on determination thereof(1) Selling prices are determined by making an estimate based on economic rationality in view of market prices
and the Company’s manufacturing technologies, submitting the estimate to the customer and then negotiatingon price.
(2) In purchases of raw materials, prices are determined in the same manner as general terms and conditions
through negotiations on price by reference to market prices.
2. In the above amounts, transaction amounts do not include consumption taxes while ending balances do.

- 49 -

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

Name

Subsidiaryof otherassociates

Honda of
America
Mfg., Inc.

Subsidiaryof otherassociates

Honda
Manufacturing of
Alabama,
LLC

Subsidiaryof otherassociates

Location

Capital stock
Transactionor
Nature of Voting rights Relationship Description
amountstakebusiness or holding ratio with theof(Millions ofoccupation
relatedpartytransactions(Millions of
(%)
yen)
yen)

Ohio, U.S.A.

Manufactureand sale of
USD
motor
578,000
vehicles andthousandpassengers
car bodies

Alabama,
U.S.A.

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

Honda
Ontario,
Canada, Inc. Canada

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

Purchaser of
products of
the Group
Sale ofand seller of finishedgoods
parts andrawmaterials–

Purchaser of Sale ofproducts of finishedgoods
the Groupand seller ofPurchase ofparts andraw
rawmaterials
materials–

Purchaser of Sale ofproducts of finishedgoods
the Groupand seller ofPurchase ofparts andraw
rawmaterials
materials

Line item

Endingbalance(Millions ofyen)

29,289Accounts
receivable trade

2,468

26,648

Accounts
receivable trade

2,413

13,493

Accounts
payable trade

1,330

20,794

Accounts
receivable trade

2,182

10,745

Accounts
payable trade

1,115(Notes) 1. Terms and conditions of transactions and policy on determination thereof(1) Selling prices are determined by making an estimate based on economic rationality in view of market prices
and the Company’s manufacturing technologies, submitting the estimate to the customer and then negotiatingon price.
(2) In purchases of raw materials, prices are determined in the same manner as general terms and conditions
through negotiations on price by reference to market prices.
2. In the above amounts, transaction amounts do not include consumption taxes while ending balances do.

2.

Notes on the parent company or major associates
Not applicable.

Notes on special purpose entities subject to disclosure
Not applicable.

- 50 -

Per share information(Yen)
Fiscal year ended
March 31, 2013

Fiscal year ended
March 31, 2014

Net assets per share

1,221.42

1,684.87

Net income (loss) per share(253.45)257.86(Notes) 1. Diluted net income per share for the fiscal year ended March 31, 2014 is not presented because there were no
dilutive shares. Diluted net income per share for the fiscal year ended March 31, 2013 is not presented because net
loss per share was recorded and there were no dilutive shares.
2. Basis for calculating net income (loss) per share is as follows:
Fiscal year ended
March 31, 2013

Fiscal year ended
March 31, 2014

Net income (loss) per share
Net income (loss) (Millions of yen)

(3,131)

3,319

–

–

Net income (loss) related to common shares(Millions of yen)

(3,131)

3,319

Average number of shares (Thousands of shares)

12,357

12,873

Amounts not attributable to common shareholders(Millions of yen)

Significant events after reporting period
Not applicable.

v)

Annexed consolidated detailed schedules
Annexed detailed schedule of corporate bonds
Not applicable.

- 51 -

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

Payment due

Short-term loans payable

15,004

12,778

1.70–

Current portion of long-term loans payable

9,429

10,146

1.27

–

236

366

1.67

–

14,941

21,212

1.45

2015–2019

173

176

1.72

2015–2021

39,78644,679––Current portion of lease obligations
Long-term loans payable (excluding current portion)
Lease obligations (excluding current portion)
Total(Notes) 1. The average interest rate is calculated using the interest rate and balance at end of period.
2. Repayment of long-term loans payable and lease obligations (excluding current portion) above scheduled within
five years after the closing date of the accounting period are as follows:(Millions of yen)
Due after one year
through two years

Due after two years
through three years

9,024

6,930

3,613

1,643

137

13

8

6

Long-term loans payable
Lease obligations

Due after three years
through four years

Due after four years
through five years

Annexed detailed schedule of asset retirement obligations
Not applicable.
(2) Other information
Quarterly information for the fiscal year ended March 31, 2014
(Cumulative period)

Three months
ended June 30,
2013

Six months ended
September 30,
2013

Nine months
ended December
31, 2013

Fiscal year ended
March 31, 2014

Net sales (Millions of yen)

41,651

82,969127,196

172,456

Income before income taxes and minority
interests (Millions of yen)

2,126

3,248

5,006

6,995

Net income (Millions of yen)

1,104

1,535

2,460

3,319

Net income per share (Yen)

89.40

124.28199.10257.86First quarter

Second quarter

Third quarter

Fourth quarter

89.40

34.88

74.82

59.46

(Three-month period)
Net income per share (Yen)- 52 -