ANNUAL REPORT 2018Year Ended March 31, 2018

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IBIDEN

Profile
IBIDEN was established in 1912 as an electric power company to bring growth to the regional economy. Ever since then, we at
IBIDEN have pioneered new business operations and continued to grow by fusing and combining our own innovative coretechnologies to create new technologies. At present, we are rolling out operations and steadily expanding our record of
performance on a global scale, centering on electronics and ceramics products.
To celebrate the 100th anniversary of the Company’s foundation, IBIDEN renewed its corporate philosophy, IBIDEN WAY, andbrand logo mark in November 2012. The renewed IBIDEN WAY and logo embody our commitments that; every one of our employees
will work with integrity and respects for the harmony with others. We also will practice the corporate values by courageously
meeting challenges given by the changing time, and realize the sustainable development of “IBI-TECHNO”—our unique technologies
and values into the future.
For all stakeholders, we aim to strengthen responsible corporate management and become a corporate group that enjoys
sustained growth.

Business Model
IBIDEN Group
Business Concept: As a global supplier, we expand businesses globally focused onelectronics and ceramics components by leveraging our innovative technologies and highresponse capabilities to customer needs.

The world’s highest levelof technical requests, needs,
and quality standards

Three strengths:• Technologies• Proposal capability• Response capability

Management Base: The IBIDEN Management System has been established to continuously
improve our competitiveness and customer satisfaction, into which all of our existing management
systems covering quality (ISO 9001), environment (ISO 14001), and occupational health andsafety (OHSAS 18001) have been integrated.
Source of Technologies: IBI-TECHNO Innovation includes the methods of Genchi, Genbutsu,
and Jigakari, 5S, jikotei kanketsu activities, and cross-sectional teamwork activities.

Genchi: Actual places where issues are arising.
Genbutsu: Matters relevant to the issues. “Genchi Genbutsu” means “go to an actual placeand see actual things for yourself to make sure of the fact.”
Jigakari: In-house activities to deal with problems by yourself and find out the root cause
for the solutions.
5S:
Five S represents “Seiri (sorting), Seiton (setting in order), Seiso (cleaning),
Seiketsu (standardization), and Shitsuke (discipline).”World-leading
manufacturers of• Semiconductors• Electronics• Automobiles, etc.

Unrivaled products that
overwhelmingly stand out intechnical capabilities

Corporate culture produces a technical breakthrough through human resource development
Notes:

Clients+ Spiral of growth → True competitive advantages

Jikotei kanketsu :Consider the next process as your customer, and build up
quality of work with a sense of ownership to meet thecustomers’ needs and satisfaction.
Cross-sectional teamwork: Team work activities by the members from different sections
to achieve the same objective under common understanding
between organizations.

Contents
Five-Year Consolidated Financial
Summary..............................................02

Research and Development..................17

Financial Section

Corporate Philosophy.............................04

Capital Expenditures.............................18

Management Discussion and Analysis....26

Corporate Governance..........................19

Financial Statements..........................28

At a Glance...........................................12

Board of Directors, Auditors andExecutive Officers.................................22

Group Companies.................................53

Review of Operations............................14

CSR Management.................................24

Message from the President.................05

Corporate Information...........................54

Forward-Looking Statements
Forward-looking statements made in this annual report concerning performance or business strategies have been determined according toassumptions and beliefs based on information available at the time of publication and may contain elements of risk and uncertainty.

Other 0.0%
Europe 20.4%

North America 10.9%
Net Sales
Composition
by Region

Japan 29.6%

2018

Asia 38.2%

Global Network (Net Sales Composition by Region)

EUROPEASIANORTHAMERICA

JAPAN

01

OTHER

● Electronic Substrate● Ceramic● Sales and Others

Net Sales by Region(Millions of Yen)

300,000

200,000

100,000

0

2014
JAPAN

2015
ASIA

NORTH AMERICA

2016
EUROPE

2017
OTHER

2018

Five-Year Consolidated Financial Summary

IBIDEN CO., LTD. and Consolidated Subsidiaries
For the years ended March 31, 2018, 2017, 2016, 2015, and 2014
Thousands of
U.S. dollars (Note)

Millions of yen

For the year:

Five-Year Consolidated Financial Summary

Net sales

02

2018
¥

2017

300,404¥2016

266,460¥

2015

314,119

¥

2018

2014

318,072¥

310,268$

2,827,331

Operating income

16,702

7,142

22,571

26,03923,442

157,197

Profit (loss) before income taxes

18,550(60,772)

12,12929,60425,484

174,592

Profit (loss) attributable to owners of parent

11,583(62,849)

7,531

19,107

17,479109,021Comprehensive income (loss)

18,154(65,904)(14,236)

42,042

40,724

170,863

EBITDA

41,26940,29066,62865,46759,144388,412

Capital expenditures

22,40920,99740,95556,35037,731000,000

Depreciation and amortization

24,56733,14844,05739,42835,702

231,215

Research and development cost

15,36914,112

15,204

15,512

15,031

144,648

Net cash provided by operating activities

27,04028,81359,49961,54750,093

254,497

Net cash used in investing activities(21,303)(26,280)(39,439)(54,888)(38,364)(200,502)

Net cash provided by (used in) financing
activities

6,725(5,135)(20,479)

9,835(6,935)63,292

Free cash flow

5,737

2,533

20,0606,659

11,72953,995

At year-end:
Total assets¥

438,096¥405,783¥

476,110¥

519,847¥

462,113$

4,123,259

Total net assets

286,368

260,940

331,521360,092

322,5622,695,227

Interest-bearing debt

70,00670,06370,12875,85561,574

658,877

Cash and cash equivalents

117,760

104,102

107,875

110,479

91,6791,108,331

140,860,557

140,860,557

150,860,557

150,860,557

150,860,557

Total number of shares issued (shares)

U.S. Dollars(Note)Yen

Per share data:
Basic profit (loss) attributable to ownersof parent
Diluted profit (loss) attributable to ownersof parent
Net assets

¥

83.21

¥

(472.26)

¥

55.29

¥

138.37¥126.58

$

0.78

—

—

—

—

126.15—2,012.60

1,927.53

2,459.63

2,578.85

2,305.93

18.94%

Ratios:Equity ratio

64.19%

68.75%

68.50%

68.91%

65.61%

ROE

4.31

2.20

5.67

5.82

0.81

ROA

2.75

1.51

3.89

3.92

0.52

Price earnings ratio (times)

19.02

24.89

14.65

16.07

91.78

Notes: 1. U.S. dollar amounts have been converted for convenience only at the rate of ¥106.25=US$1, the rate of exchange on March 31, 2018.
2. EBITDA = Operating income + Depreciation and amortization

Net Sales

Operating Income/Operating Income Ratio(Millions of Yen)

(Millions of Yen)

(%)

28,00020

300,000

Profit (loss) attributable to owners ofparent(Millions of Yen)

25,00020,00021,00015

14,000

10

7,000

5

15,000200,000
10,000Five-Year Consolidated Financial Summary

5,000

100,000

0
0

0

14

15

16

17

0

14

18

15

16

17

–70,000

18

14

15

16

17

18

Operating Income Ratio

Capital Expenditures/
Depreciation and Amortization

Research and Development Cost

Free Cash Flow

(Millions of Yen)

(Millions of Yen)

(Millions of Yen)

60,00016,00003

20,00014,00050,00012,00040,00015,00010,00030,0008,000

10,0006,000

20,0004,000
10,000

5,000

2,000

0

0

0

14

15

16

17

18

14

15

16

17

18

14

15

16

17

18

Capital Expenditures
Depreciation and Amortization

Interest-Bearing Debt

Total Net Assets/
ROE(Millions of Yen)

(Millions of Yen)(%)

(Millions of Yen)(%)

350,000

14

500,000

10

60,000300,000

12

400,000

8

50,000250,000

10

200,000

8

300,000

6

40,000150,000

6

200,000

4

100,000

4

100,000

2

50,000

2

0

0

0

0

70,00030,00020,00010,000Total Assets/
ROA

0

14

15

16

17

–15

–22

18

14
ROE

15

16

17

18

14
ROA

15

16

17

18

Corporate Philosophy

Corporate Philosophy: IBIDEN WAY
carries this on, transcending borders, is the “IBIDEN WAY.”
To mark its 100th anniversary, we have revamped
our corporate philosophy, the “IBIDEN WAY,” simplifying
it to enhance its understanding by all IBIDEN Group
employees worldwide.

Corporate Philosophy

The power that has enabled IBIDEN to overcome many
adversities with all our employees and to continue to operate,
and the wisdom and vitality that have achieved dramatic
growth in recent years—these have persisted throughout
IBIDEN’s long history of 97 years. The systematization that04

SPIRIT
We share our spirits with all staffs globally. And through accomplishing these,"Corporate Philosophy" will be realized.

Gaining customer andsocietal trust through“Genchi Genbutsu*”*Genchi Genbutsu: Go and See foryourself to thoroughly understandthe situation

Integrating knowledge
and wisdom from theemployee involvement for
greater power.

Trust throughIntegrity

Challenge with
PassionAnticipating change, andacting boldly to create
new value.

“Wa”
Teamwork andSynergy

IBI-TECHNO
Innovation

Evolving by overcoming
hurdles through creativity
and ingenuity.

Message from the President

IBIDEN Is Devoted to Solidification of Its
Position and Creation of New Business toAchieve the New Medium-Term Management
Plan “To The Next Stage 110 Plan.”

IBIDEN Value and Business Model▶IBIDEN Has Gone through Innovative Changes
from Its Power Generation Business, the Business
Our Forebears Started
There is a pond called “Yashagaike” deep in the mountains near
the border between Fukui Prefecture and Gifu Prefecture.
Yashagaike, situated at an altitude of 1,099 meters, is the sourceof the Sakauchi River, a side stream of the Ibi River, and also thesource of IBIDEN’s hydroelectric power plants. The President andboard members visit Yashagaike every year to pay our respects.
This visit is a very important “ritual” we have continued for over 30
years to remember our gratitude for the blessing of water and thehistory of reform of the power generation business.
With this visit, I always put a lot of thought into the wisdom andvitality of our forerunners who continually got over challenges they
faced in our 106-year history by flexibly changing the business domains.
Trends of
the worldModernization

Postwar reconstruction

High economic growthPower Generation

Power Generation

Hydroelectric power
generation

Hydroelectric power
generation

Technology
andproducts of
IBIDENElectric Furnace
CarbideMelamine resin
Ferroalloy

The history of IBIDEN started with hydroelectric power generation which utilized the abundant source of the Ibi Valley. Later, we
advanced into electrochemical engineering which utilized generated
power for electric furnaces, starting production of carbide, ferroalloy
and carbon products. After the war, industrial revival in Japanevolved around “coal, steel and fertilizer.” Reaping the benefits from
this, IBIDEN thrived in production of carbide and coal nitrogen.

▶Power to Overcome Various Challenges andWisdom and Vitality to Realize Dramatic Growth
Subsequently, even surrounded by external circumstances whichsometimes brought IBIDEN to a crisis point such as the energy revolution from coal to oil, rapid economic growth and a shift to an
information society, we always sensed the needs of the next generation from our customers who were leaders of the respective
Bubble economy burst,
and information society
arrivedIncreased use of cell
phones, smart phones,
and system networks

Power Generation

Power Generation

Power Generation

Hydroelectric power
generation

Hydroelectric power
generation

Solar power
Hydroelectric power
generation

High-temperaturefiringHigh-temperaturefiringSyntheticchemicals
Building material
Ceramic fiber
CarbonSyntheticchemicals
Building material
Ceramic fiber
CarbonCeramics technology
High-temperature
combustion
Synthetic chemicals

Lamination

Lamination

Oil shock

Recession

Power Generation

Power Generation

Hydroelectric power
generation

Hydroelectric power
generation

High-temperaturefiringHigh-temperaturefiringFused phosphate
fertilizer

Syntheticchemicals
Building material
Melamine resin
Melamine facing plate

Electric Furnace

Printed circuit board

Cinema carbon
Gauging carbon

Plating
IC interconnect
Circuit design
Circuit printing(for ferrosilicon)

SiC-DPF
Ceramic fiberSpecial carbon
Electronic
technologies
Precision
Advanced

Startedtechnologicaldevelopment
for the next
100 years

Printed circuit board
IC packaging

Printed circuit board
Years> 1912 –> 1945 –> 1960 –> 1970 –> 1980 –> 1990 –> 2000–

Message from the President

Takeshi Aoki
President & CEO

05

Message from the President
industry at that time, and created new technologies/products byapplying the accumulated element technology. We also improved
our production technology to set up a production line in a short time
to deal with early launch and mass production, and met the needsof customers and the times and further strengthened relations withcustomers. Technologies of products IBIDEN develops are all linked
at the core. Today, such technologies are transformed into package
substrates (PKG) for PCs and smartphones and diesel particulate
filters (DPF) for diesel cars, constituting a major business of IBIDEN.

Message from the President▶Our Mission to Respond to Requests from Society
with IBI-TECHNO Which Change with the Time

06

Most of all, we believe the corporate culture where everyone had asense of ownership even under these changes of circumstances
and implemented “Genchi (the actual site),” “Genbutsu (the actual
thing)” and “Jigakari (on-site solution of problems),” and “humanresources” which aimed to achieve high goals were essential. Suchspirit of our forebears is inherited as our “Spirit of taking actions tobe shared” signified by the word “IBI-TECHNO.”As seen from the above, we think it is the tradition and destiny of
IBIDEN to constantly change its form in the midst of changes in thesocial environment and carve out a new path.
Now, the major business which has supported IBIDEN isreaching a turning point.
I, like our forebears, made a fresh resolve to get throughchanges with the spirit of ”IBI-TECHNO” again and respond torequests from society.

▶Social Issues IBI-TECHNO Is Expected to Resolve
to Create a Sustainable Society
In the Electronics Operation, the main area of our current business,
introduction of the 5G telecommunications standard and advancement of IoT are being seen, while in the automobile-related
business, a global paradigm shift is in progress such as automatic
driving and the spread of EV. IBI-TECHNO is expected to solve
social issues to create a sustainable society and support Japan’s
economic development. The trend in the respective area we areaware of is as follows:

Digital Innovation• Speeding-up of telecommunications with higher capacity(Increase of base stations by introducing smaller cells)• Advancement of ICT technologies (IoT, big data, speeding-up of
telecommunications with higher capacity)• Decline of tasks which require manual labor by utilization of AI

Bio Economy• Population increase• Climate change

Change of Mobility Environment• Expansion of emerging markets• Diversification of power train (Needs for existing internal combustion engines
including HV and PHV continue for the time being)• Sophistication of EV, automatic driving, and in-vehicle network such as connected cars
• Change of consumer preference (Spread of car-sharing and ride-sharing)• Increase of new entrants

Emergence of Innovative
New Materials

Review of Previous Medium-Term Management Plan andUnderstanding of External Environment▶Brief History of the Last Quarter Century

To understand the brief history of IBIDEN in the last quarter century
it is necessary to understand IBIDEN’s strategy and direction of theroad ahead.
The history consists of three periods: Post-bubble 1990s; 20002007 before collapse of Lehman Brothers; and 10 years fromcollapse of Lehman Brothers to last year.
First, in the 1990s, the Japanese economy was in turmoil due tothe burst of the bubble economy, but at IBIDEN, riding on the wave
of increased demand with the dawn of the PC era, the Electronics
Operation significantly grew, mainly package substrates (PKG).

During this decade, net sales increased by 10.2% while operating
income grew by 11.7% on annual average.
The second period is from 2000 to before the collapse of Lehman
Brothers. In the Electronics Operation, mobile phones started to be
widely used in addition to PCs as mentioned above, achieving further
growth. In the Ceramics Operation, as the demand for DPF exploded
due to strengthening of environmental regulations in Europe, IBIDEN
developed production bases on a global basis and significantly
expanded the scale of our operation. Besides the robust growth of
the Electronics Operation, IBIDEN successfully grew out of its overreliance on the Electronics Operation thanks to the expansion of the▶Achievements and Issues of IBI-TECHNO 105

In “Challenge IBI-TECHNO 105 Plan” (2012-2017), the previous
medium-term management plan,• “Reconstruct and enhance competitiveness of core operations”• “Work on the creation of new business”• “Develop and promote CSR management globally”
were positioned as pillars of our activities. Specific objectives were
10% growth per year of net sales, 10-20% growth of the operating
income ratio and “the Company to aim” to become No. 1 in all operations on a global basis.
Although we could not achieve the objectives of “Challenge
IBI-TECHNO 105 Plan (2013-2017)” (IBI-TECHNO 105) which set
restructuring after “Global IBI-TECHNO 100 Plan (2008-2012)”(IBI-TECHNO 100) as a goal, we realized some level of achievementin the severe market environment, with 1.6% growth in net sales and9.8% growth in operating income on average for a period from
IBI-TECHNO 100 to IBI-TECHNO 105.

▶Factors Responsible for These Results

The segments of the Electronics Operation consist of package
substrates (PKG) for PCs, chip-scale packages (CSP) for smartphones and tablet devices and motherboards/printed wiring boards(PWB). With regard to the market environment of the Electronics
Operation, we initially pictured a scenario in which we would promote
the growth of the entire Electronics Operation by offsetting a gradualdecline of PKG, our past flagship product, with fast-growing CSP
and PWB, but shrinking of the PC market and commoditization of
the smartphone market progressed faster than expected. As thegrowth rate of the high-end smartphone market, our specialty,
declined from the 10% level to the single-digit range, the overall
electronics market IBIDEN was targeting shrank as a result. As for
CSP, demand for IBIDEN’s CSP significantly decreased as ourcompetitor launched a groundbreaking product which replaced our
CSP. In addition, for PWB, we had a tough time starting mass
production at our overseas motherboard plant for high-end

smartphones. As a result, we had to push through business structural reform in the Electronics Operation, which resulted in recording
a huge extraordinary loss. While we need to learn from the fact that
we were one step behind in reading market changes, the Electronics
Operation went back to the start line toward restructuring due to ourbold structural reform. IBIDEN’s Electronics Operation has grown
based on “customer-in,” which fully meets the needs of certain
major users. This in turn produced risks in that the entire business
was easily affected by the development trend of such customers.
Thus, to reduce our reliance on certain major users, we actively
worked on development of new users and product areas which
are expected to advance in the growing market. Furthermore, asbarriers between technologies by use are disappearing in products
for PCs, smartphones and IoT, in-vehicle and data centers which
are expected to grow, we created a system ahead of market
changes to flexibly respond to user requests by consolidating thethree operations of PKG, CSP and PWB.
Accordingly, the sales for data centers accounted for 30% of theElectronics Operations in the final year of IBI-TECHNO 105, establishing a firm foothold for the next leap forward.
The Ceramics Operation mainly consists of the Exhaust System
Operation and the Specialty Carbon Operation. First, as for the
Exhaust System Operation, a market for DPF, our main product, wascreated mainly for diesel passenger vehicles in Europe. IBIDEN has
developed a supply system in Japan, Hungary and France, but its
business environment is starting to show signs of change.
Specifically, to prepare for compliance with the “Paris Agreement”
adopted in December 2015, developed countries continued to shift toEV, and coupled with emissions irregularities by major European car
manufacturers, demand in developed countries began to decline.
On the other hand, to deal with the large vehicle market where
the diesel engine is dominant and with emerging markets wherelarge demand is expected due to future strengthening of emissions
control, we built a plant in Mexico and developed a stable global
supply system consisting of Japan, Europe and North America.
The parent company of the NOx reduction catalyst (SCR) business is Ceram in Austria, which IBIDEN acquired in 2012. It serves
as a stable revenue source by expanding sales of stationary filters
for industrial use whose stable demand is expected, not just filters
for large vehicles. The market for the substrate holding mat (AFP)
business grew steadily due to its feature of being used for bothgasoline and diesel cars and an increase of cars with catalysts and
DPF as a result of strengthened environmental control. Based on theincreasing demand, we built a production line in Hungary in addition
to those in Japan, making them a major revenue source of theexhaust system business.
For the FGM business, which runs the specialty carbon business, we started operating a cutting-edge production base in Korea
in 2014 to find a way into unique materials and processing, preparing
the way for the next leap forward.
As for the electric power business, which is a part of the Other
Operation, we renewed hydroelectric power generation facilities
which had been working since the foundation of IBIDEN, turningthem state-of-the-art facilities with high power generation efficiency.

Message from the President

Ceramics Operation due to the rapid growth of DPF. Also, as a resultof the expansion of the three business portfolios including Electronics,
Ceramics and “Other Operation,” which consists of Domestic
Operation and Electric Power Business, net sales increased by 9.1%
per year while operating income grew by 22.1% per year between
2000 and 2007, which is a tremendous achievement.
Then, the 10 years between fiscal 2008 to last year was a periodof drastic changes of the market environment such as economic
stagnation after the collapse of Lehman Brothers in terms of the
global economy and turmoil caused by the Great East Japan
Earthquake in terms of the domestic economy. In this period, net
sales remained at the ¥300 billion level while operating income
remained at the ¥20 billion level due to the slowdown of theElectronics Operation mentioned below. However, it was also theperiod of pushing through business structural reforms in theElectronics Operation and steadily preparing for the next leap
including R&D as a response to the changing market environment.

07

Message from the President
In addition to installation of solar panels on the roofs of plants mainlyin the Ogaki District, we installed unique water float solar panels in
the timber pond of the Kinuura Plant. As such, we completed
responses to production activities based on clean energy which will
increase and responses to the feed-in tariff (FIT) system for renewable energy. We believe the electric power business will continue tosupport IBIDEN’s revenue base in a stable manner for a long period.

For the business operation at domestic subsidiaries, thanks toproactive supports by the R&D Division of the Company, eachsubsidiary was able to establish a unique competitive edge. We feeleach company gained the power to survive mainly based on externalbusiness even in the severe market environment in Japan.

Message from the President

Points of Strategy in New Medium-Term Management Plan

08

In the 1990s and before the collapse of Lehman Brothers, we greatly
benefited from the so-called first-mover advantage in economic
terms. IBIDEN, which grew significantly thanks to first-mover advantage in plastic IC packages (PKG) in the Electronics Operation and
DPF in the Ceramics Operation, has pushed ahead with structuralreforms for the last decade due to the emergence of competitorsand new technologies.
We think IBIDEN is now in a stage similar to just prior to the great
success made possible by the Electronics Operation in the late
1990s. IBIDEN had already planted a new seed for the next successstage in the previous medium-term management plan, in addition tobold implementation of the business structural reform. We believe thecurrent medium-term management plan is a period to grow budsthat have sprouted from such seed.
The medium-term management plan which started in the fiscal
year ending March 31, 2019 is called “To The Next Stage 110 Plan”(hereinafter called the “medium-term plan”) and is a five-year plan tocreate new business and further strengthen our foothold leading to
the next stage. During these five years, we aim to achieve a balanced
sales mix by adding new business as a new revenue base to thesteady growth of the three existing businesses: Electronics, Ceramics

and Other Operation. The quantitative objectives for the fiscal year
ending March 31, 2023, the final year of the plan, include ¥430 billion
in net sales (CAGR 6.8%), ¥45 billion in operating income (CAGR
20.1%) and 10.5% in operating income ratio.
Taking an overall view of this growth, in the Electronics Operation,
net sales and profits are expected to grow considerably mainly basedon PKG, whose demand for data centers is expected to increase,and PWB, whose technical difficulty will further increase, backed bymarket expansion due to digital innovation such as big data, IoT and
5G. In the Ceramics Operation, we think the motor vehicle exhaustsystem operation represented by the DPF business is in an
in-between period (temporary lull) as emission treatment technology
is in the process of evolution during the first half of the medium-termplan in addition to changes of the trend of environmental control.
However, as we can expect a high margin from the Ceramics
Operation thanks to technology differentiation and the demand forlarge vehicles and construction/farming machinery is expected to
grow mainly in emerging countries due to introduction of new emission controls scheduled in 2020, we believe we can secure stable
growth during the second half of the medium-term plan.
The following is the details of the medium-term plan.

The medium-term (five-year) management plan

To The Next Stage 110 Plan (FY2018 to FY2022)
Address Future Changes in the Environment and Achieve Sustainable Growth for the Next 100 Years
Pillar of the Initiativeof Existing Operations
Develop Human Resources
1 Enhance Competitiveness•M aintain existing market share for mobiles and PCs 3
Promote five initiatives for work style reforms toElectronics • Expand new market share for the IoT, AI, data
centers, and automotive applications• Expand the exhaust system business in emerging
Ceramics
markets and develop new applications• Secure stable growth by building unique competitivenessDomestic(business model)

New Business
2 ExpandEarly commercialization of the Development Center■■ Advance open innovation with business alliances■ Develop in-house entrepreneurs through the intrapreneurshipprogram■achieve work-life balance

1.	Productivity improvement
2. Enhancement of the personnel education system
3. Thorough management of working hours
4. Creation of a workplace where diverse employees canperform to their capacity and feel a sense of pride
5. Utilization of IT technology

ESG Management
4 PromoteCorporate governance, environmental management,■social contribution, and return to shareholders

▶Dealing with Market Changes by Cross-BusinessMeasuresIn the new medium-term management plan, “Enhance competitiveness of existing operations,” “Expand new business,” “Develop
human resources” and “Promote ESG management” serve as thepillars of our activities. Even existing operations which produce profit
cannot survive only with technologies which are an extension ofcurrent ones. We have to have a perspective to go one step beyond
the current use and replace them with new technology which can
respond to new requests from customers.

Long-Term Outlook for Passenger Vehicle Powertrain Market(Researched by IBIDEN)(Million cars)

200
Existing internal combustion engines will peak out in the 2020s.
We will capture the growing needs for HV and PHV.

Potential for expansion andgrowth of business opportunities

100
50
0
2000

2010

2020

2030

Existing (Diesel/Gasoline)

HV

2040
EV

Internal combustion engine +Electrification

Internal combustion engine

For instance, I take the forecast of powertrain changes as shownin this graph as an opportunity to grow. The size of the exhaustsystem market we are after will steadily expand by 2040, 22 years
from now, while diversifying itself including products for HV and PHV
which will grow. Automotive production will increase from 100 million
to the 150-million level due to population increase in emerging countries. In these countries, the demand for existing internal combustion
engines still remains high, and environmental control will be strengthened. While the market for DPF for passenger vehicles will shrink,
we will launch GPF made of materials unique to IBIDEN for gasoline
cars. For luxury cars, while cordierite GPF is being introduced,
IBIDEN’s high-strength GPF with low pressure loss will also meet the

2050

PHV

Electrificationneeds of the market for low- and middle-priced cars by leveraging
its price competitiveness. GPF is included in net sales of new products in the medium-term plan. For HV and PHV, we, at the newly
launched “Automotive Functional Product Development Center,” aredeveloping a next-generation intake/exhaust system which aims for“Cleaner-than-air” emission based on IBIDEN’s ceramic molding
and firing technology, in cooperation with DENSO Corporation.
For example, as frequent engine start/stop is required for HV
and PHV, how fast we can warm the catalyst which removes toxic
substances at engine start becomes important. We are developing
a technology to realize that and aim to announce it during the final
year of the medium-term plan.

Message from the President

150

09

Target Performance Indicatorss of Yen)

Net Sales

Operating Income(Billions of Yen)

(Billions of Yen)

400

310

300

75
200

105

360
5
80310
75
105
105

100

170
130

130

430
30

430

New products 30

360Other

80

5

(FY)

50

5.8%

120 Ceramics
105

Other

40

40

120

Ceramics

30

30

20

200
170

Electronics

200

Electronics

18

10

22 20

22

(FY)

20

5.8%

32

10.5%
10.5%
Operating Income
8.9%
Operating Income
Ratio

45

Ratio

45

32

18

10

0

20 18

50

80

80

0

18

New products(Billions of Yen)
8.9%

0

18

(FY)

20 18

22 20

22

Message from the President

Message from the President

10

Other than the exhaust system, we will develop new materials to
In the Electronics Operation, these changes require finer andcreate a market for EV and PHV. At the “Future Mobility Producthigh-multilayer manufacturing technology, which in turn creates a
Development Center,” we are developing resin windows which
new business opportunity for the printed wiring board business.
make significant weight saving for auto bodies possible comparedMoreover, in 5G communication, as a large amount of data is
to current glass windows. This development dates back to the timeexchanged at radio wavelengths, base stations need to be increased
when we considered a solution to the issue in which scratches
fivefold. Since many of IBIDEN’s products will be used in this area as
made by sand storms on the surface of large mirrors which collected
well, we expect a large wave of demand from telecommunications
sunlight reduced light collection efficiency at solar thermal power
carriers from late 2019 to 2020. For data centers, in particular, while
generation facilities often used in desert regions as renewable
it is necessary to significantly increase the number of servers toenergy. We focused on the fact that the hardness of silicon carbide,process and store increased data, there is an issue of securing suffithe material of IBIDEN’s DPF, is next to that of diamond and successcient space for data centers themselves. Therefore, we will aim to
fully developed a technology to coat mirrors with silicon carbide.
cater to the demand for small high-function package substrates toThis technology will facilitate the move to light resin windows for EV
be used.
which needs to be lightweight.
In the Electronics Operation, package substrates are posiIn addition, we are now developing a technology to overcome
tioned as a high-value-added product with particularly highthe issue of “sound” of EV. Unlike existing internal combustion
technical difficulty which require multilayer and fine wiring. As
engine cars, there is no engine sound in an EV. As road noise, windpackage substrates for data centers which require advanced
noise and motor noise become noises inside and outside a car, we
processing/storage capability need almost twice as many multionly remove these sounds at a certain frequency.
layers and fine wiring technologies as those for PCs, the level of
Other than that, AFP is expected to produce stable revenue withtechnology increases further.
niche/top products used in all internal combustion engines including
At the moment, only a handful of companies are capable ofdiesel cars. We believe the package substrate technology IBIDEN
developing such technology other than IBIDEN on a global level. We
has developed in the Electronics Operation will meet the demand forwill devote a considerable part of capital investment to this package
sophisticated in-vehicle telecommunication technology as seen in
substrate (PKG) to secure first-mover advantage in the 5G era to
Numberof IoT-connected
Number of 5G Base
Stations
Data
CenterDemandsensing andcontrol
technologyDevices
which leads to prevention/safety
comeand further increase net
sales
and
the income ratio thereof in(100 Million)(Researched by IBIDEN)(Thousand)(Researched by IBIDEN)(Trillion gigabyte)(Researched by IBIDEN)
and automatic driving and in the spread of connected cars which
the Electronics Operation.
3,000
3,000
1,000
improves user convenience and comfort.
2,500
2,500
▶Erate:xpansion of New BusinessAs such, 800
not limited
to theAnnual growth
rate:exhaust control segment, the market
Annual growth
Annual growth rate:17% on average
33% on average
26% on average centers in the fiscal
IBIDEN launched the following2,000
four development
IBIDEN should target will expand in the entire mobility-related
2,000 area
600
year ended March 31, 2018 to expand new business, the fourth
including EV.
1,500
1,500
pillar of activities which promote our growth: “Automotive Functional
400
1,000
1,000
▶Aiming for a New Segment in the Expanding
Product Development Center,”“Advanced Ceramics Development
Electronic
MarketCenter,”“FutureMobility
Product
Development Center” and
200
500
500
Including the mobility segment mentioned above, the advancement“Biomaterial Product Development Center.”0of IoT by digital0 innovation increases the amount of data exchanged
The “Automotive Functional 0Product Development Center” and
15
20
25
15
20
25
15
20
25
between things, and thus ultra-high-speed communication (5G) is
the “Future Mobility Product Development Center” are as described
required. As communication with high frequency is needed, theabove. In addition, in areas other than existing electronics and mobility,
demand for electronic parts not installed in existing mobile phones
I will introduce the remaining two development centers, which work
will increase.
on development of new applications of IBIDEN’s core technologies■ Number of IoT-Connected Devices■ Number of 5G Base Stations(Billion)(Thousand)(Researched by IBIDEN)■ Data Center Demand(Researched by IBIDEN)(Trillion gigabyte)(Researched by IBIDEN)

3,000

100

200
2,500

Annual growth rate:
17% on average

80

2,000

Annual growth rate:
33% on average

150

Annual growth rate:
26% on average

60
1,500
40

1,000
50

20
0
(Calender
year)

100

500

15

20

25

0
(Calender 15
year)

20

25

0
(Calender 15
year)

20

25

IBIDEN will make R&D investment in these four centers for the
next five years and promote development of the pillars of new
business and early commercialization.

▶Approach to Investment for Growth andShareholder Return
IBIDEN aims to increase shareholder value by the above-mentioned
measures and believes it is at the top of our agenda to secure financial resources for investment for growth to deal with changes in thebusiness environment (¥190 billion in five years) and for continuous
return of profit to shareholders. After examining the required capital
structure in a comprehensive manner including the perspective offinancial stability and capital cost (efficiency), we will build an optimal
financial base to support our stable growth. We will consider shareholder returns based on a consolidated dividend payout ratio of
30% while maintaining the balance with a long-term stable dividend.

Promotion of ESG Management to Respond to Changes to Come▶Development of Human Resources Which Support
the Evolution of IBI-TECHNO
The past history also tells us that the driving force of “IBI-TECHNO”
is “human resources,” and development thereof is the lifeline of
IBIDEN. To successfully implement the medium-term management
plan and realize sustainable growth, we will develop managerial talent
who can strongly promote IBIDEN’s management and business andalso diverse human resources such as an innovator who applies
IBIDEN’s technologies to create new values and an entrepreneur
who successfully turns such values into business. We will also
improve the level of human resources by positioning development ofa training system and a pleasant working environment where all
employees understand/implement the IBIDEN WAY and play anactive role as a basic strategy of human resource development.

▶“Human Resource Development Center,”the Source of IBIDEN’s Technologies
For engineers engaged in development, in particular, skills developed through field experience are essential. Even if we improve
efficiency by using AI in the future, we still need manufacturing
technologies which can fully utilize it. We will promote effective utilization of our Human Resource Development Center as transactive
memory and hand down the technologies of our forebears andseasoned employees to the next generation to improve efficiency
and productivity of the entire organization.

▶Establishment of Corporate Governance System
Which Realizes Highly Transparent Management
The IBIDEN Group considers corporate governance to be a key
management mechanism for transparent, fair, prompt and resolutedecision-making, and all Group companies are thus actively committed
to improving corporate governance. We comply with all items of thecorporate governance code. As part of the Group’s corporate governance, we are enhancing internal control by proactively undertaking“compliance and risk management promotion activities.” We are
expanding/strengthening the management oversight functions of
our highly effective Board of Directors, consisting of the optimal
number of members, and the audit functions of our Audit andSupervisory Committee. These activities and system development
will enable us to construct a transparent corporate governancesystem worthy of the trust of shareholders and other stakeholders
and fulfill our corporate social responsibilities.

▶Toward Contribution to the Environment throughPractice of Corporate Philosophy and Sustainable
Development
IBIDEN’s customers, who strive to realize business management
based on the code of conduct of trade associations they belong toand 100% renewable energy, call for high-level requirements for
reducing the environmental burden in the manufacturing process.
These requirements will become higher. We realize this is also arequest from society as a whole. We, in cooperation with the supply
chain, will promote production activities by leveraging clean energy
produced by various in-house power generation means such as
water power, gas turbine cogeneration and solar power all of which
IBIDEN is proud of, reduce environmental risk and implement energy
saving/resource circulation. In the product segment, products
mainly in the exhaust system segment which contribute to the environment such as DPF, AFP and SCR are an important part of ourmajor business. Under our corporate philosophy “We contribute to
the progression of an affluent society through innovative technology,
with respect for both individuals and the global environment,” IBIDEN
aims to win the support of the market and society with further reduction of the environmental burden in its production activities andproduct development which responds to expected changes of themobility environment and social issues, and targets sustainable
development while coexisting with the global environment.

Message from the President

and early commercialization for the purpose of developing a pillar of
future business.
The “Advanced Ceramics Development Center,” given the shiftof jet engine materials from metal to carbon fiber and ceramics,
uses IBIDEN’s ceramic membrane technology and graphite
processing technology to offer lightweight and high-thermal-resistant composite ceramic materials which dramatically improve fuelefficiency of jet engines.
The “Biomaterial Product Development Center” develops agricultural materials which enable growing of plants with highproductivity/functionality by using IBIDEN’s unique biotechnology
accumulated through treatment of waste liquid generated in the
manufacturing process of the Electronics Operation, and functional
ingredient materials for cosmetics and health food with high humanabsorbability by using our extraction/low-molecule technology,
which taps the high-temperature and high-pressure state of water.

11

At a Glance

Net Sales and Net Sales Composition

Overview

Electronics Operation

Electronics Operation

At a Glance¥115,573 million

38.5%

Matching today’s high speed of technical innovation, our electronics
technology continues to develop new products at the cutting edge of theworld electronics field. Our built-up substrates for smaller and thinner circuits
as well as electronic components and plastic packages for a range of state-ofthe-art semiconductors are the materialization of our IBI-TECHNO philosophy.

Ceramics Operation¥113,425 million

12

Ceramics Operation

37.8%

Other Operation¥71,406 million

23.7%
Other Operation

Over the years, we have developed technologies in essential materials
such as carbide and ferrosilicon. In line with our corporate philosophy, IBITECHNO, we have emerged as a leading developer of advanced ceramics
including environment-related ceramics products, (such as SiC-DPF andsubstrate holding mats), graphite specialty products, ceramics fibers, andhigh temperature insulation wool.

This segment comprises the housing materials business, construction
business and other business with unique operations, respectively. In the
housing materials business, centered on the manufacture and sales of interioruse decorative laminates, we are involved in supplying residential equipment
and construction materials and developing our own planning houses. In theconstruction business, we are promoting livable urban development through abroad range of operations including slope protection construction, landscapegardening, and the installation of industrial equipment and solar power
generations. In other business, we have a range of lines of business to answer
the changing needs of society, including the development and sale of medical
software, and the power generation business.

For clients such as IoT, server and 5G communication,in addition to existing PC and high-end smartphone
manufactures, we have been manufacturing andselling IC package substrates and printed wiringboards. As of July 2018, the Electronics Operation
has organized PKG Business Unit and MLB
Business Unit under its operational headquarters
following completion of organizational realignment
to expand the business in response to market
changes and client requests in a timely manner.

Within our Ceramics Operation, we manufacture andsell SiC-DPF, SCR, substrate holding mats, hightemperature insulation wool and graphite specialty
products for clients such as major global automotive
manufacturers and semiconductor manufacturing
equipment manufacturers. Going forward, we will
expand business within the large vehicle market inemerging nations and capture demand for newcomponents for vehicle electrification.

Net Sales & Segment Income

200,000
150,000

40,000159,850

150,561

147,872

30,00099,225100,000
14,168
10,66850,000115,573
20,00011,472
10,000853

00(3,649)

14

15

16

17

–10,000

18(Millions of Yen)
Segment Income

Net Sales

150,000

100,000

30,00098,70250,00099,191

104,768

113,425
101,323

20,00010,526
8,418
6,348

0

In the housing materials, we strive to expand ourbusiness by leveraging products with distinguishedfeatures such as our unique component housing andantiviral melamine decorative laminates. In theconstruction business, we use our strength to expand
operations in the areas of the slope protection
construction and landscape gardening business basedon contemporary themes such as environmental
conservation and disaster prevention. We are also
redoubling efforts to comply with renewable energy
feed-in tariffs and expand related business. We
continue to solidify the position of the Other Operation
as a third source of revenue through expansion ofbusiness with distinguished products and long-term
stable earnings through the power business.

(Millions of Yen)
Segment Income (Loss)

Net Sales

14

15

5,914

16

10,000

4,322

17

0

18

(Millions of Yen)
Segment Income

Net Sales

12,00090,00059,03160,00061,47965,912

71,406
8,000

6,538
5,393

5,418

5,156

4,000

30,000

0

14

15

16

17

18

0

Note: As the Company has changed its segment classification, no data for the years ended
March 31, 2014 and 2013 are shown.

At a Glance

Segment Strategies

13

Review of Operations

Electronics Operation(Free via stacked up structure)

Build up FC-CSP substrate

Review of Operations

Main Products● Package substrates (PKG, CSP)
(for computers, mobile devices and home information appliances)

Net Sales
Composition● Printed wiring boards (PWB)

38.5%

14

(for use in mobile electronic equipment/information communication
infrastructure*)*Used in servers, routers and other equipment forming high-speed digitalcommunication networks.
In the IC package substrate (PKG) business,¥115,573 million¥853 million
Segment Income
Net Sales

sales increased due to efforts to cultivate
new market fields and new customers,
although the overall PC market continued toshow negative growth compared to theprevious fiscal year.
In the small and thin IC package for

Net Sales

smartphones and tablet-type devices (CSP)

40,000business, sales decreased reflecting the

37.8%

200,000

150,000(Millions of Yen)
Segment Income (Loss)

147,872

30,000115,573
99,225100,000

In the printed wiring board (PWB) business, sales rose due to progress in the
20,000adoption of new thin and high-density PWB for high-end smartphones.
As a result, net sales at the Electronics Operation increased 16.5% from the previous

11,472
10,00050,000853

00(3,649)16

continued impact of the launch of fan-out High-performance and high-function package
substrate
wafer-level packaging (FO-WLP).

17

23.7%

18

–10,000

fiscal year to ¥115,573 million. Segment income amounted to ¥853 million, compared to¥3,649 million in segment loss for the previous fiscal year. This was due to the effect of
the business structure reform that we carried out in the previous fiscal year.

Ceramics Operation

38.5%
Substrate holding mat

IBI WOOL-E

Main Products● Diesel particulate filters (DPF)● Substrate holding mats (AFP)● NOx reduction catalysts (SCR)● Graphite specialty products (FGM)

Net Sales
Composition

37.8%(for semiconductor manufacturing equipment and new energyrelated products)● High temperature insulation wool
● Fine ceramics products¥113,425 million¥10,526 million
Segment Income

Net Sales

Sales of diesel particulate filters (DPF) and substrate holding mats (AFP) increased fromthe previous fiscal year due to steady growth in the automobile market including large
vehicles worldwide, especially in Europe.
Sales of NOx reduction catalyst (SCR) rose reflecting steady growth in automobileand energy-related products.

Net Sales

120,000

23.7%(Millions of Yen)
Segment Income

Sales of graphite specialty products (FGM) grew as a result of solid growth in the

40,000semiconductor market as well as sales expansion mainly for new technologies and

113,425

104,768

new materials.

101,323

90,00030,00060,00020,000Accordingly, net sales at the Ceramics
Operation increased 11.9% from the previous fiscal year to ¥113,425 million.
Segment income jumped 143.5% to¥10,526 million due to the effect of

10,52630,0005,914
0

16

10,000tive components.

4,322

17

increased production mainly for automo-

18

0
SiC-DPF

Review of Operations

Graphite specialty “EDX-7”

15

38.5

Review of Operations%

Other Operation

37.8%
Higashi-Yokoyama Power
Plant

The Japan’s largest water
floating solar power
generation

Local Village Ogaki

Review of Operations

Main Businesses● Melamine decorative laminates/
Residential equipment● Slope and garden construction● Synthetic resin processing● Oil products sales

Net Sales
Composition

23.7%

16

In the housing material business, the laminates-related department saw higher sales
from the previous fiscal year as a result of sales expansion for melamine decorative

Net Sales
Segment Income¥71,406 million¥5,418 million

laminates for toilet booths and non-combustible laminates. In the construction
business, the slope protection construction department and the landscape gardening
department experienced a rise in sales due to an increase in construction works
carried over from the previous fiscal year, as well as the focus on orders andcompletion of construction works to be completed within the fiscal year. In otherbusinesses, sales in the petroleum product sales department expanded reflecting a(Millions of Yen)
Segment Income

Net Sales

12,00080,00071,406
65,91260,0009,000

Other Operation increased 8.3% frommillion, while segment income fell
17.1% to ¥5,418 million.

3,000

20,000

0

volume of foamed-resin products for the automotive and precision industries.

the previous fiscal year to ¥71,406
5,418 6,000

5,156

department saw lower sales from the previous fiscal year due to a decrease in sales
Consequently, net sales at the

61,4796,538
40,000rise in sales price, which offset a fall in sales volume. The synthetic resin processing

16

17

18

0
Retect Viruhael: high pressure laminates withantiviral effectResearch and Development
R&D activities of the Group are implemented extensively by

Ceramics Operation

technology development divisions and manufacturing tech-

Our current focus for R&D is carriers required for high-performance

nology divisions, as well as the technology divisions within

exhaust systems for powertrain of hybrid vehicles (HV) and a plug-in

each Operation, and at affiliate companies.

hybrid vehicles (PHV) as well as functional materials and components

At technology development divisions, focusing on the fourthat enhance the safety and comfort of EV/PHV. Furthermore, we are

new R&D fields that create a future of sustainable growth, we havecarrying out R&D for lightweight, high heat-resistant ceramic

new products to market that capture the needs of society.
At manufacturing technology divisions, we are working

composite materials targeting next-generation airplanes.
R&D costs for this division amounted to ¥6,793 million in thefiscal year under review.

actively to develop new innovative methods and facilities that

Other Operation

boost our competitiveness.

In the housing materials business, we are working to develop func-

Furthermore, at technology divisions within each Operation,

tional construction materials such as antivirus materials. We are also

we are carrying out development of new technologies andconducting R&D activities geared toward new fields. Within the

products that aim to expand new growth opportunities overslope-related business, we are engaged in development of construc-our existing business.

tion methods and R&D of new products to expand the market of

R&D costs of the Group during the fiscal year ended March
31, 2018, on a consolidated basis, amounted to ¥15,369 million.
Major R&D activities were as follows:

patented technology, the GT Frame Method, which makes possible
both slope face disaster prevention and full-out surface vegetation. In
landscape gardening, we are conducting R&D focused on technologies for the vegetation of particular spaces such as wall surfaces androofs. In the agriculture and livestock products processing business,

Electronics Operation

we are engaged in R&D of various dry ingredients used for instant

We have been promoting development of product design, element

noodles and sprinkles for rice and the like. In the information service

technology and process technology to expand business to new

business, we are promoting R&D focused on two areas: the next-

areas: IoT, AI, data center, and automotive. Furthermore, we are

generation business support system for medical institutions such as

conducting development of PKG and PWB that meet high-speed

health management systems to protect the health of workers by digi-transmission and low loss requirements, as well as module

talizing their state of mind, body and workstyle; and production

substrates that achieve high density and multi-function.

support systems using AI technology to achieve labor saving andDuring the fiscal year under review, R&D costs for this division

productivity improvement.

amounted to ¥8,241 million.

R&D costs for this division totaled ¥332 million in the fiscal year
under review.

R&D Costs and Ratio of R&D Costs to Net Sales(Millions of Yen)(%)

18,0005.5

15,000

5.3

12,000

5.1

9,000

4.9

6,000

4.7

3,000

4.5

0

14
Electronics

15
Ceramics

Other

16
Ratio of R&D Costs to Net Sales

17

18

4.3

Research and Development

established and operated four development centers to accelerate17Capital Expenditures
During the fiscal year under review, the IBIDEN Group invested

Major Projects Completed

a total of ¥22,409 million, primarily to establish new facilities to

IBIDENboost production capacity.
Capital expenditures in the Electronics Operation totaled¥12,361 million, which was used mainly for production facilities

Segments/bases

Project description

Electronics Operation•Ogaki Plant

Established production facilities for next-generation IC package
substrates.

for both IC package substrates (¥6,679 million) and PWB

Subsidiaries(¥5,682 million).

Electronics Operation
Established production facilities for next-generation PWB.
•IBIDEN Electronics Malaysia Sdn. Bhd.

In the Ceramics Operation, the Group spent ¥6,159 million,
primarily for production facilities related to DPF (¥4,577 million)
and substrate holding mats (AFP) (¥613 million).

Ceramics Operation•IBIDEN Hungary Kft.

Established production facilities for DPF and expanded
production facilities for next-generation DPF.
Established production facilities for AFP.

The Other Operation and corporate were allocated ¥3,889
million. Required funds were acquired through self-financing.
Required funds were acquired through self-financing.
During the fiscal year under review, no major sale, removal,

Capital Expenditures

or loss of facilities took place that would have a noteworthy

Major Projects Established/Expanded/Updated in Progress
IBIDEN
Segments/bases

Project description

impact on production capacity, excluding the disposal and saleElectronics Operation•Ogaki Central

Established production facilities for state-of-the-art IC package
substrates.

of facilities for regular updating.

•Ogaki/Ogaki Central

Expanded production facilities for next-generation IC package
substrates.

Subsidiaries
Electronics Operation•BIDEN Philippines, Inc.

Established production facilities for next-generation IC package
substrates.

•IBIDEN Electronics Malaysia Sdn. Bhd. Expanded production facilities for next-generation PWB.

18

•IBIDEN Electronics (Beijing) Co., Ltd

Expanded production facilities for next-generation PWB.

Ceramics Operation•IBIDEN Hungary Kft.

Expanded production facilities for AFP.

Capital Expenditures and Depreciation and Amortization(Millions of Yen)

¥22,409 million

75,000Capital expenditures by geographical areas in the fiscal
year under review are summarized as follows:

50,000Electronics-related:Japan.....................................¥4,400 million
Overseas...............................¥8,000 million
Ceramics-related:Japan........................................¥200 million
Overseas...............................¥5,900 million

40,95544,05733,14825,000020,99716
Capital Expenditures

17
Depreciation and Amortization

22,40918

24,566

Corporate GovernanceIn addition to the corporate governance system described above, theCompany has established a Management Council to further strengthen thesaid structure of the Group. It is composed of persons responsible formanagement and execution of operations, such as Representative Directors,
Directors, Executive Officers, Managing Officers as well as full-time Directors
who are Audit and Supervisory Committee Members. The Management
Council deliberates and decides important matters concerning yearly andmonthly budget progress and various management issues, being endowedwith functions to make preliminary deliberations of proposals to be submitted
to the Board of Directors and make decisions set forth under the
Authorization Regulations of the Company.

CSR Promotion Division

The Group considers corporate governance to be a key management mechanism for transparent, fair, prompt and resolute decision-making, and allGroup companies are thus actively committed to improving corporate governance. As part of the Group’s corporate governance, we are enhancing
internal control by proactively undertaking activities to advance complianceand risk management and we are expanding/strengthening the management
oversight functions of our Board of Directors and the audit functions of our
Audit and Supervisory Committee. These steps will enable us to construct atransparent corporate governance system worthy of the trust of shareholders
Status of Development of System to Ensure the Appropriatenessand other stakeholders and fulfill our corporate social responsibilities, and will
Business Operations at Subsidiaries
help us improve our corporate value through sustained growth. General Meetings ofof
Shareholders
The
Company made the supervisory managementAppointment,
department, which is
Appointment,
Followingaresolution
at
the
164th
Ordinary
GeneralMeetingofAppointment,
ReportReportDismissal
Dismissal
Dismissal
responsible for internalReportcontrol of all subsidiaries, the Corporate Planning
Shareholders held on June 16, 2017, regarding the transition to a Company
Proposal for Appointment/Dismissal ofGroup, Office of theReport,
President,
Operation. The
with Audit andDirectors,
Supervisory Committee, Accounting
the Company
will improve further
Cooperation Strategic Corporate
Auditors
AccountingPlanning
Auditors
Board of Directors
AuditorsCompany provides guidance and support to each company in cooperation
prompt decision-making structure and an additional layer of strength in the
Evaluation of properness on(Board of Auditors)
Audit
Opinion, Support
Supervision
Accountingpromotion
Auditwith other internal control
divisions.
supervisory functions of the Board of Director through having Directors who
Assignment (Consultation)
Report, Cooperation
Report, Cooperation
Committee
Pursuant to the Regulations for Internal
Approvals of Group Companies,
are Audit and Supervisory Committee
Members possess voting rights in the
Policy Proposal
Policy Proposal
Compensation (Consultation)astructure
is
in
place
under
which
importantbusiness execution by directors
Board of Directors.
Committee
Deliberation,
and
the
Board
of
Directorsofsubsidiaries
isreported to the Company in
The Company's
Boardof
Directors
consistsofseven
Directors
Risk Management Company-WideCompliance Company-Wide
ReportDirection
Promotion Committee
Promotion
Committee
advanceand decision making of the Company
is properly carried out.
(excluding Management
DirectorsCouncil
who are Audit and Supervisory Committee Members
Executive Officer in Chargeof Risk Management
Executive
Officerinin charge
Charge of Compliance
Officers)of the CSR Promotion
Furthermore,
the Executive
OfficerandRepresentative
includingDirectors
three(Executive
OutsideDirectors) and five Directors (including three
Executive Officer in Charge of CSR Promotion Division
Executive Officer in Charge of CSR Promotion Division
Full-time Directors (Executive Officers)
ReportDivision
sufficiently
exchanges
information
with
Directors in charge of
Outside Directors)
who
are
Audit
and
Supervisory
Committee
Members.
The
Executive Officers
Cooperation
Supervisionof a Director (excluding a Director who is an Audit andinternal control or the department.
term of office
Deliberation,
ReportCompliance Committee

Reward and Disciplinary Committee*
Supervisory Committee Member) is one year, and that of a Director who is an
President & CEO (Overall Management on
Information
Security System
Committee
Current
StatusoftheInternal
Controland Risk
Audit and Execution
Supervisory
Committee
Memberis
twoyears.
All
of
the
six
Outsideof Operation)
Security Trade Control Committee
ReportExecutiveof Each Business
Management Structure
Insider Trading Control System
Directors
are Officer
appointed
as Independent Directors. The number of Directors(Division of Executive Authorities)
Disclosure Committee
Based on the belief that corporate governance is a crucial management(excluding
Directors who are Audit and Supervisory Committee Members) is
Execution of Operation,
Development
Development
Audit
Audit
Supervision
Audit
issue, the Group’s internal control system calls for proactiveAccounting
implementation
limited to sixteen, and that of Directors who are Audit and Supervisory
Each Operation,
Administrative Division
and GroupacrossCompanyof measures
the Group aimed at advancing compliance and risk
Committee Members is limited to seven. Also, the Company
has introduced*It shall be held at any
timestatus
as neededmanagement and further augmentation of monitoring functions.
Thean Executive Officer System in order to make speedy management decisionsof actions and their development are reported regularly by Executive
and expedite the execution of operations.

The Corporate Governance System
General Meetings of Shareholders
Appointment/Dismissal

Appointment/
Dismissal

Report/Proposal

Board of Directors

ReportAppointment/
Dismissal

Audit and Supervisory Committee

Accounting Auditors
Cooperation
Accounting/
Audit

Nomination/Remuneration Committee

Appointment,
Dismissal/
Supervision

Risk Management Company-wide
Promotion Committee

Audit &c.

Report/ProposalCooperation

Inquiry/ReportManagement
CouncilReportAudit &c.

President & CEO
CSR Promotion Division
Direction/
Supervision

ReportCompliance Company-wide
Promotion Committee

Internal Audit

Each Operation, Administrative Division and Group Company

Corporate GovernanceCorporate Governance Structure
Overview of Corporate Governance Structure and Reasonsfor Adopting Current Structure

19Corporate Governance

Officers in charge of compliance and risk management promotion to theBoard of Directors and the Management Council, and such actions aremonitored and reviewed from time to time to make the compliance and risk
management structure fairer, stronger and more appropriate.

Corporate GovernanceStatus of Internal Audits and Audits by Audit & Supervisory
Committee Members

20

The Company has assigned five Directors who are Audit and Supervisory
Committee Members, including three Outside Directors without any interestsin the Company. Two of the five Directors who are Audit and Supervisory
Committee Members are a Certified Tax Accountant or a Certified Public
Accountant, with high-level insights in all areas of taxation, and they haveconsiderable knowledge in finance and accounting.
Directors who are Audit and Supervisory Committee Members attend
important meetings such as the Board of Directors meetings andManagement Council meetings and conduct audits on the execution ofoperations by Directors, and full-time Directors who are Audit andSupervisory Committee Members collaborate with the CSR Promotion
Office, which is the Company’s internal audit unit, and Accounting Auditors
in conducting audits of the Company and of the Group companies inaccordance with all applicable laws, regulations and rules.
Officers and employees provide Directors who are Audit andSupervisory Committee Members with necessary reports and information,in accordance with the Audit and Supervisory Committee Regulations, set
forth by the Board of Directors, in response to requests from each Director
who is an Audit and Supervisory Committee Member.
Furthermore, the Company has established the Audit Group, CSR
Promotion Division (composed of six persons) as a unit that conducts
internal audits. Directors who are Audit and Supervisory Committee
Members and the CSR Promotion Office are working closely withAccounting Auditors by exchanging information and opinions on a regularbasis to enhance the effectiveness of the Group’s auditing system.

Outside Directors
As stated in the preceding section, the Company has a governancestructure that includes six Outside Directors. The Company anticipates
their contribution to proper and fair corporate governance and their valuable advice concerning the Employee’s Code of Conduct. Although
IBIDEN has no standard or policy of its own with respect to the requirements to ensure the independence of Outside Directors, when electing
any of its Outside Directors, IBIDEN makes sure that he or she meets therequirements of being independent and of being unlikely to have any
conflict of interest with the general shareholders of IBIDEN.
Chiaki Yamaguchi, who serves as IBIDEN’s Outside Director, is president and representative director of Towa Real Estate Co., Ltd. No special
relationship exists between the said company and IBIDEN. Toshio Mita, who
serves as IBIDEN’s Outside Director, is adviser of Chubu Electric Power Co.,
Inc. No special relationship exists between the said company and IBIDEN.
Koichi Yoshihisa, who serves as IBIDEN’s Outside Director, is president of
Meijo University. No special relationship exists between the said university
and IBIDEN. Fumio Kato, representative of Fumio Kato Certified Tax
Accountant Office, serves as IBIDEN’s Outside Director. No special relationship exists between the said company and IBIDEN. Masaki Horie,
representative of Masaki Horie Certified Tax Accountant Office, serves as
IBIDEN’s Outside Director. No special relationship exists between the said
company and IBIDEN. The Outside Director, Nobuko Kawai is representativeof Nobuko KAWAI Law Office. No special relationship exists between thesaid company and IBIDEN.
At IBIDEN’s Board of Directors meetings, Outside Directors express
opinions based on their wealth of managerial experiences and provide
important advice to advance the IBIDEN Group’s governance. The
Company believes that the aforementioned Outside Directors, who havedemonstrated their independence, have successfully undertaken their
responsibilities expected of them by the Company.

Overview of Limited Liability Agreements
We have entered into limited liability agreements with Outside Directors that
limit their liabilities for damages, based on Paragraph 1, Article 423 of theCompany Law. Under these agreements, outside directors are subject to thehigher of either ¥20 million or the minimum limited amount as specified underParagraph 1, Article 425 of the Company Law when they have acted in good
will and they have committed no material negligence in executing their duties.

Accounting Audit
We have concluded a accounting auditing agreement with KPMG AZSA
LLC, and the certification of the audit is conducted by Certified Public
Accountants Jun Fukui, and Tetsuya Nakamura, who are KPMG AZSA’s
designated and engagement partners.
They are assisted by 13 certified public accountants and 12 other staff
in the conduct of their auditing duties.

Board Policies and Procedures in Determining the Compensationof the Senior Management and Directors
The compensation for Directors who are not Audit and Supervisory
Committee Members, Executive Officers and Managing Officers comprises
monthly compensation and bonuses. The monthly compensation for
Directors who are not Audit and Supervisory Committee Members is calculated based on their job positions, within the limits approved by the general
meeting of shareholders, and is approved by the Board of Directors. Bonus
allotments for Directors who are not Audit and Supervisory Committee
Members are based on the degree to which each Director contributed to
the Company’s operations, within the scope of the total amount of bonuses
calculated using the stipulated formula approved by the general meeting ofshareholders, and are approved by the Board of Directors.
The monthly compensation of Executive Officers and Managing Officers
is approved by the Board of Directors. In determining the compensation,broad consideration is given to a suitable balance with the monthly compensation for Directors who are not Audit and Supervisory Committee
Members, assessments of respective Executive Officers’ job performance,and other factors. The amounts of bonuses to be paid are approved by the
Board of Directors. Bonus amounts are calculated in accordance with thedegree of the Executive Officers’ contribution to the Company’s businessresults and other factors. Nomination/Remuneration Committee including
Outside Directors who are not Audit and Supervisory Committee Members,
prior to a resolution of the Board of Directors, deliberates on compensation
and bonus of Directors, the Executive Officers and Managing Officers, andreports to President & CEO. Outside Directors, being in positions independent of the execution of operations, are only paid a set basic compensation.
The Company has also introduced the share-based payment plan to
Directors who are not Audit and Supervisory Committee Members,
Managing Officers, so that they shall make a clearer linkage between the
Company’s stock value and compensation for themselves and elevate theirCompensation of Directors and Corporate Auditors(a) Total remuneration of Directors and Audit and Supervisory Committee
Members for the fiscal year ended March 31, 2018 was as follows:

Position

Total
Number of remuneration
recipients
paid

Total amount of remuneration by type(Millions of yen)

(Millions of yen)Basicremuneration

Bonus

Sharebased
payment

Directors
who are not
Audit andSupervisory
Committee
Members

Directors

9

¥336

¥211

¥ 90

¥34

OutsideDirectors

4

31

31

—

—

Subtotal

13

367

243

90

34

Directors
who areAudit andSupervisory
Committee
Members

Directors

2

50

50

—

—

OutsideDirectors

3

25

25

—

—

Subtotal

5

75

75

—

—

Supervisory
Committee
Members(Full–time)

2

16

16

—

—

2

5

5

—

—

Audit andSupervisory Supervisory
Committee Committee
Members
Members(Outside)
Subtotal
Total

4

22

22

—

—

22

465

341

90

34

Notes:
1. T he above includes Directors and Audit and Supervisory Committee Members who
retired during the fiscal year under review. In addition, on June 16, 2017 the Company
made the transition from a Company with a Board of Auditors to a Company with an
Audit and Supervisory Committee (hereinafter referred to as “the Transition”).
2. The number of recipients describes the total number of people, and the actual
recipients are 18.
3. Of the above, the total number of Outside Directors and Outside Audit and Supervisory
Committee members is nine, and the actual number of recipients is seven.
4. T he amount of remuneration to Audit and Supervisory Committee members
pertains to the period before the Transition, while the amount of remuneration to
Directors who are Audit and Supervisory Committee members pertains to theperiod after the Transition.
5. The resolution setting the upper limit of remuneration for the Directors before theTransition at not more than ¥45 million per month was approved at the 154th General
Meetings of Shareholders held on June 22, 2007. Of the total, the amount for
Outside Directors accounts for ¥3 million or less, with the remaining ¥42 million orless paid to the other Directors. Compensation under stock option plans is set separately. The employee salaries for Directors concurrently serving as employees are also
excluded from the figures.
6. T he maximum limit of remuneration for Directors who are not Audit andSupervisory Committee Members was approved at not more than ¥30 million permonth at the 164th General Meetings of Shareholders held on June 16, 2017. Of
the total, the amount for Outside Directors accounts for ¥5 million or less, with theremaining ¥25 million or less paid to the other Directors.
7. In addition to the remuneration mentioned above in 6, at the 164th General
Meetings of Shareholders held on June 16, 2017, the resolution was approved
stipulating that Directors who are not Audit and Supervisory Committee members,
are to receive a bonus equal to 0.5% of the consolidated profit attributable toowners of parent for the fiscal year as well as 1.6% of the total amount of annual
dividends for the applicable fiscal year. However, the maximum limit was also set
at not more than ¥440 million by the resolution, with amounts less than ¥1 million
being rounded down.
8. Although bonuses for Directors amounted to ¥135 million based on the above
calculation in 7, due to various circumstances the bonuses for Directors totaling ¥90
million were approved by the Board of Directors’ meeting held on May 16, 2018.
9. The introduction of a share-based payment (stock option) plan for Directors who

are not Audit and Supervisory Committee Members was approved at the 164thGeneral Meetings of Shareholders held on June 16, 2017.
10. T he maximum limit of remuneration for Audit and Supervisory Committee
Members before the Transition was approved at not more than ¥9 million permonth at the 159th General Meetings of Shareholders held on June 20, 2012.
11. The maximum limit of remuneration for Directors who are Audit and Supervisory
Committee Members was approved at not more than ¥13 million per month at the164th General Meetings of Shareholders held on June 16, 2017.

(b) Total amount of consolidated remuneration of individual directors andcorporate auditors
Not recorded because no individual received total consolidated remuneration of ¥100 million or more.

Policies and Procedures for the Selection of Managers andthe Assignment of Director and Audit and Supervisory
Committee Member Candidates by the Board of Directors
Candidates for Manager and Directors who are not Audit and Supervisory
Committee Members are selected/assigned from the perspective of placing
the right person in the right job, with due consideration given to the numberof people that would enable precise and prompt decision-making and to abalance of knowledge, experience and skills among the Management Team/the Board of Directors overall. Candidates for Audit and Supervisory
Committee Members are also selected/assigned from the perspective of
placing the right person in the right job, with due consideration given to abalance among knowledge of accounting, tax and legal matters, knowledge
about the Company’s business, and other perspectives pertinent to corporate management. Given the above, assignment for Audit and Supervisory
Committee Member candidates was resolved by the Board of Directors after
Audit and Supervisory Committee deliberated and agreed on it. Assignmentfor Director candidates, prior to a resolution of the Board of Directors, after it
has been sufficiently deliberated by the Nomination/Remuneration
Committee including Outside Directors who are not Audit and Supervisory
Committee Members and reported to President & CEO.

Resolution Requirement for Appointing Directors
The Company’s Articles of Incorporation stipulate that directors may be
appointed by a majority vote of shareholders present at a meeting, whocollectively hold not less than one-third of the voting rights of all shareholders entitled to exercise the rights.
Furthermore, the Company’s Articles of Incorporation also stipulate thatappointment of directors shall not be determined by cumulative voting.

Special Resolution Requirement for General Meetings ofShareholders
The Company has stipulated in the Articles of Incorporation a special resolution requirement at General Meetings of Shareholders, in accordancewith the provision of Paragraph 2, Article 309 of the Company Law, as
follows: The resolution shall be authorized by a two-thirds majority of thevoting rights held by the shareholders present at General Meetings ofShareholders. These voting shareholders must hold shares representing
not less than one-third of the voting rights of all shareholders entitled toexercise the rights. This enables General Meetings of Shareholders toprogress smoothly.

Overview of Shareholdings(a) Investment shares held for purposes other than pure investment
Number of issues: 55
Total recognized on the balance sheet: ¥49,985 million(b) The main purpose for holding investment shares other than pureinvestment is to strengthen a stable business relationship.
(c) Shares held purely for investment purposes: None

Corporate Governanceawareness of contributing to improving medium- to long term operating
results and increasing corporate value by sharing with shareholders, thebenefits and risks involved in stock price fluctuations.

21

Board of Directors, Auditors and Executive Officers (As of June 15, 2018)

Board of Directors, Auditors and Executive Officers

Directors

22

Apr. 1973
Jun. 1997
Jun. 2001
Jun. 2005
Apr. 2007
Jan. 2015
Mar. 2016
Jun. 2017

Chairman of the Board,
Representative Director

President & CEO,
Representative Director

Hiroki TAKENAKA

Takeshi AOKI

Date of Birth: January 1, 1951

Date of Birth: February 4, 1958

Joined IBIDEN Co., Ltd.
Director
Managing Director
Director & Executive Managing Officer
Representative Director, President & CEO
In charge of R&D Operation
In charge of affiliates and subsidiaries
Representative Director, Chairman of the Board(to present)

Apr. 1981
Apr. 2006
Apr. 2008
Jun. 2013
Apr. 2014
Apr. 2014
Mar. 2016
Mar. 2016
Apr. 2017
Jun. 2017

Apr. 1986
Apr. 2008
Apr. 2012
Apr. 2012
Jan. 2015
Jan. 2015
Jun. 2015
Mar. 2016
Mar. 2016
Apr. 2017

Jun. 2017
Feb. 2018

Jun. 2003
Jun. 2011

Representative Director &Executive Vice Presidents

Director & Executive
Managing Officer

Kozo KODAMA

Masahiko IKUTA

Date of Birth: March 23, 1963

Date of Birth: August 19, 1962

Joined IBIDEN Co., Ltd.
Executive
Corporate Officer
Vice President of IBIDEN Philippines Inc.
Managing Officer
Deputy Operation Manager of Electronics Operation
Director & Managing Officer
Representative Director, Vice President (to present)
Integrated management of Quality, Engineering and
Production (to present)
President of Corporate Strategic Manufacturing
Operation, In charge of CSR Promotion Division,
In charge of Energy Control Division
In charge of CSR Promotion, in charge of Energy
Control Division (to present)
Chairman of IBIDEN Electronics Malaysia Sdn. Bhd.
(to present)

Apr. 1985
Apr. 2008
Apr. 2010
Oct. 2013
Oct. 2013
Jun. 2014
Mar. 2016
Apr. 2017
Jun. 2017
Jun. 2018

Outside Director

Outside Director

Chiaki YAMAGUCHI

Toshio MITA

Koichi YOSHIHISA

Date of Birth: December 25, 1949

Date of Birth: November 2, 1946

Date of Birth: November 29, 1952

Apr. 1969
Jun. 2003
Jun. 2005*Appointed as Advisor of Towa Real Estate Co., Ltd. on June 29, 2018

Jun. 2017

Jun. 2014
Jun. 2015
Jun. 2015

Joined IBIDEN Co., Ltd.
Executive
Corporate Officer
In charge of FGM Operation
In charge of IR, Operations Manager of Strategic
Corporate Planning Operations (to present)
Director & Managing Officer
Director & Executive Managing Officer
In charge of affiliates and subsidiaries (to present)
Executive Managing Officer
Director & Executive Managing Officer (to present)

Outside Director

Full-time Corporate Auditor of Toyota Motor Corporation
Executive Managing Director of Toyota Industries
Corporation
Representative Director & Senior Vice President of
Toyota Industries Corporation
Outside Director of IBIDEN Co., Ltd. (to present)
President & Representative Director of Towa Real
Estate Co., Ltd.*
Outside Director of Nakanihon Kogyo Co., Ltd.
(to present)

Jun. 2012

Joined IBIDEN Co., Ltd.
Executive
Corporate Officer
Director & Corporate Officer
Director & Managing Officer
Deputy Operation Manager of Ceramics Operation
Representative Director, Vice President
Operation Manager of Ceramics Operation
Administrator of Corporate Business Operation,
In charge of Ceramics Operation (to present)
Representative Director, President & CEO (to present)

Jun. 2006
Jun. 2007
Jun. 2010
Jun. 2015
Jun. 2015

Joined Chubu Electric Power Co., Inc.
Managing Officer, Tokyo Office Manager
Director, Senior Managing Executive Officer,
President of Sales Company
President & CEO
President &CEO, Representative Director
Chairman of the Board
Adviser (to present)
Outside Audit & Supervisory Board Member of
Nippon Yusen Kabushiki Kaisha (to present)
Outside Director of IBIDEN Co., Ltd. (to present)

Mar. 1981
Apr. 1982
Apr. 1984
Apr. 2000
Apr. 2003
Apr. 2013

Apr. 2015
Jun. 2017

Tokyo University PhD (Engineering)
Assistant of IIS at Tokyo University
Joined the Faculty of Science and Technology at
Meijo University
Professor at Architectural Course of Science andTechnology at Meijo University
Manager of at Architectural Course of Science andTechnology at Meijo University
Dean of Science and Technology at Meijo University,
Chair of Research Department, Councillor at
Meijo University (to present)
President of the University, Full-Time Director of
Meijo University (to present)
Outside Director of IBIDEN Co., Ltd. (to present)

Apr. 2013
Jan. 2015
Jan. 2015
Jun. 2015
Jun. 2017

Apr. 1973
Nov. 1980
Jul. 1997
Jan. 2001
Sep. 2006
Jul. 2010
Jun. 2011
Jun. 2015
Jun. 2016
Jun. 2016
Jun. 2017

Director, Audit andSupervisory Committee
Member (Full –time)

Director, Audit andSupervisory Committee
Member (Outside)

Keiichi SAKASHITA

Yoichi KUWAYAMA

Fumio KATO

Date of Birth: April 21, 1956

Date of Birth: May 30, 1958

Date of Birth: January 20, 1944

Joined IBIDEN Co., Ltd.
Director & Managing Officer
In charge of Ceramics Operation
Operation Manager of DPF Operation
Operation Manager of Strategic Manufacturing
Operation
Director & Executive Managing Officer
In charge of Audit
In charge of IMS promotion
Standing Auditor
Director who is an Audit and Supervisory Committee
Member of IBIDEN Co.,Ltd. (to present)

Apr. 1983
Apr. 2007
Apr. 2008
Apr. 2011
Apr. 2012
Jun. 2012
Apr. 2014
Apr. 2014
Mar. 2016
Jun. 2016
Jun. 2017

Joined IBIDEN Co., Ltd.
Executive
Corporate Officer
Operation Manager of DPF Operation
Managing Officer
Director & Managing Officer
Director & Executive Managing Officer
Operation Manager of Ceramics Operation
In charge of Audit
Standing Auditor
Director who is an Audit and Supervisory Committee
Member of IBIDEN Co., Ltd. (to present)

Jul. 2000
Jul. 2001
Aug. 2002

Jul. 2004
Nov. 2014
Jun. 2015
Nov. 2015
Jun. 2017

Deputy Manager of Investigation Department Nagoya
Regional Taxation Bureau
Superintendent of Showa Tax Office
Registered as certified tax accountant, Opened Fumio
Kato Certified Tax Account Office, Representative ofFumio Kato Certified Tax Account Office (to present)
Outside Corporate Auditor of Seino Holdings Co., Ltd.
(to present)
Outside Corporate Auditor of Himaraya Co., Ltd.
Outside Corporate Auditor of IBIDEN Co., Ltd.
Outside Director who is an Audit and Supervisory
Committee Member of Himaraya Co., Ltd. (to present)
Outside Director who is an Audit and Supervisory
Committee Member of IBIDEN Co., Ltd. (to present)

Director, Audit andSupervisory Committee
Member (Outside)

Director, Audit andSupervisory Committee
Member (Outside)

Substitute director, Audit &Supervisory Committee
Member (Outside)

Masaki HORIE

Nobuko KAWAI

Shogo KOMORI

Date of Birth: November 25, 1949

Date of Birth: December 5, 1961

Date of Birth: October 23, 1979

Joined PricewaterhouseCoopers Co., Ltd.
Joined Ito Accounting & Consultancy OfficeSenior Partner of Ito Accounting & Consultancy OfficeSenior Partner of Chuo-Aoyama Audit Cooperation
Senior Partner of Arata Audit Cooperation
Opened Masaki HORIE Certified Public Accountant
Office, Director of the office (to present)
Outside Corporate Auditor of Tokai Rika Co., Ltd.
Outside Corporate Auditor of Futaba Industrial Co., Ltd.
Outside Director of Futaba Industrial Co., Ltd. (to present)
Outside Corporate Auditor of IBIDEN Co., Ltd.
Outside Director who is an Audit and Supervisory
Committee Member of IBIDEN Co., Ltd. (to present)

Apr. 1992
Jan. 1995
Apr. 1998
Jan. 2004
Apr. 2009
Apr. 2012
Jun. 2017

Registered as attorney (Daiichi Tokyo Bar Association)
Switched the registration as attorney to Nagoya(currently Aichi Prefecture) Bar Association
Opened Nobuko KAWAI Law Office, Representative of
the office (to present)
Mediator for Civil Trial of Jury of Nagoya Summary
Court (Part-Time Judge)
Deputy Chairman of Aichi Bar Association
Professor at Law School of Nagoya University(Practice of Law)
Outside Director who is an Audit and Supervisory
Committee Member of IBIDEN Co., Ltd. (to present)

Oct. 2003
Oct. 2004
Mar. 2012
Apr. 2012
Jun. 2015
Jun. 2017

Registered as attorney (Daini Tokyo Bar Association)
Joined Anderson Law Office
Switched the registration as attorney to Gifu
Prefecture Bar Association Joined Mori Law OfficeOpened Shogo KOMORI Law Office, Representative of
the office (to present)
Vice-chairman of Gifu Prefecture Bar Association
Substitute Outside Corporate Auditor of IBIDEN Co., Ltd.
Substitute Outside Director who is an Audit andSupervisory Committee Member of IBIDEN Co., Ltd.
(to present)

Executive Officers
Chairman of the Board

Executive Managing Officer

Managing Officers

Hiroki Takenaka

Masahiko Ikuta

Honchin Endo

President & CEO

Senior Managing Officers

Takeshi Aoki

Sotaro Ito

Executive Vice Presidents
Kozo Kodama

Koji Kawashima
Syuichi Kubo

Yasuji Hiramatsu
Hisashi Sano
Yasushi Inagaki
Kota Noda
Kazushige Ohno

Board of Directors, Auditors and Executive Officers

Apr. 1981
Apr. 2007
Apr. 2009
Apr. 2009
Apr. 2011

Director, Audit andSupervisory Committee
Member (Full –time)23

CSR Management

IBIDEN achieves sustainable growth by implementing CSR management
in response to globalization.

| CSR Policy

Diagram of CSR Management
Employees

We aim to enhance our corporate value
Customers
Human Resource• By raising awareness of the need for IBIDEN to
Management
act responsibly and honestly in the interest of
Shareholders/sustainable operations
Internal Control
Investors• By fulfilling our responsibilities in a well-balanced
SocialEnvironmental
Contribution
Management
manner from an economic, environmental andsocial standpoint• By working in partnership with all of our stakeholders
Global environment

Suppliers

CSR Management

Building a trustworthy relationshipwith all our stakeholders.

24| External Corporate Evaluation

The Company conducts gap analyses between targets and results of external corporate evaluations such as SRI
evaluation organizations, and identifies elements that are lacking within the Company. The CSR Promotion Division
is responsible for analyses. For items which can be improved during the following fiscal year, the relevant departments develop improvement strategies within the action policy. In 2017, IBIDEN was named to a constituent of the
FTSE Blossom Japan Index created by the global index provider FTSE Russell*1, and has been continuously
selected for FTSE4Good Index Series, one of the world’s leading socially responsible investment (SRI) index series.
Furthermore, we have been included in the MSCI Japan ESG Select Leaders Index launched in July 3, 2017 by
MSCI, Inc.*2*1 FTSE Russell is a part of the London Stock Exchange Group and a leading global index provider.
*2 MSCI Inc. is a financial service provider in New York in the United States and is listed on the New York Stock Exchange. MSCI is a leading
provider of investment decision support tools to institutional investors globally, including large-scale public pension funds, asset managers,and hedge funds.

| Publication of CSR Information

The Group’s CSR Report is disclosed on our website in accordance with the Global Reporting
Initiative (GRI) Sustainability Reporting Standards 2016: Core option.
▶▶▶CSR Reporthttps://www.ibiden.com/csr/csr-report/| Internal Control

In establishing the Group's internal control systems, activities must be undertaken to strengthen
corporate governance and promote compliance and risk management under the instruction of
the responsible executive officers.

Local
communities

| Environmental Management

Measures to Develop Clean Energy
We have been conducting hydroelectric power generation since our foundation and currently
operate three hydroelectric power plants upstream on the Ibi River. The generated power is
supplied to power consumers in the region, which is a stable source of earnings in the Other
Operation. In addition, we have conducted a business operation that utilizes a variety of energy
including photovoltaic power generation and cogeneration systems to meet the demanding standards set by customers who follow the code of conduct of the industry group to which theCompany belongs or business management targeting 100% renewal energy.

161,097 MWh

Equivalent to the annual energy consumptionof about 44,700 households.

Trends in CO2 emissions*1, 2, 4 [IBIDEN Group*3]

Energy Conservation

Global target for fiscal years 2018 to 2022:

5% (fiscal year 2017) compared to actual CO emissions for fiscal year 2022.
2

Notes:*1 The figures are corrected from the previous fiscal year because of a revision of the aggregation of fuel and electricity.
*2 The emission factor is based on the List of Calculation Methods/Emission Factors in the Calculation, Report andPublication System published by Japan’s Ministry of the Environment and Ministry of Economy, Trade and Industry, as
well as the coefficient provided by the gas supply company.
*3 CO2 emissions show figures covering production-related locations in Japan and overseas.
*4 The actual results of CO2 emissions at IBIDEN domestic plants and major overseas group companies in fiscal year 2016
are verified by external organization.

800
CO2 emissions (1,000t -CO2)

We are accelerating the improvement of energy conservation practices designed to lower the basic
unit of energy consumption in all divisions within the entire Company, striving to strengthen thecompany-wide CO2 reduction activities as well as our product-making system.

753

127

136

593

635

617

15

16

17

718
600

817

762

124

134

400
684

200

0

18

■ Direct CO2 emissions (Scope 1) ■ Indirect CO2 emissions (Scope 2)

25| Environmental Management

Human Resource Development

We define model employees with the respective qualifications and carry out education and training toenhance our strength, and thus become a company that can grow and develop on a permanent basis.

Respect for Human Rights

Educational training

The Group clearly defines its policy to avoid involvement in any violation of human rights andconducts continuous dissemination and education on its policy. In addition, we work to makeadvances in human rights initiatives throughout the supply chain, by conducting third-party audits ofsuppliers regarding child labor, forced labor, and so on.

Occupational Health and Safety
We work to prevent occupational accidents by promoting occupational safety and health activities
involving all employees. In fiscal year 2017, the number of occupational accidents increased atdomestic group and major overseas production subsidiaries despite a decrease at IBIDEN’s domestic
plants. We will continue to thoroughly raise safety awareness among all employees.
*Number of occupational injuries (equal to or exceeding accidents requiring leave) for every million cumulative actual
working hours.

Occupational accident frequency rate*(IBIDEN and Domestic Group companies)

1.6
1.2

1.66

1.61

1.06

1.06

0.8
0.4

0.66
0.26

15

16

IBIDEN Group (Japan)
Manufacturing Industry

1.02
0.56

0.52

0.33

0.09

17

18

IBIDEN Domestic Plants
All Industries

Protecting the Global Environment
In fiscal year 2008, we embarked on a forest building initiative: “IBIDEN’s Forest.” This activity takes
place chiefly in Higashi-Yokoyama, where the Company operates its initial hydroelectric power
generation business. Together with local residents, employees and former employees, we aim toachieve coexistence with the global environment.

7.5 haScene of tree planting activity

This forest area is equivalent to some 10 football fields.

1.66

1.15

0.54

0.09

0

1.63

| Social Contribution

Total area of “IBIDEN’s Forest”

CSR Management

Hydroelectric power generated in fiscal year 2017

Higashi-Yokoyama power plantManagement Discussion and Analysis

Management Discussion and Analysis

Results for the Fiscal Year Ended March 31, 201826

During the fiscal year under review, the global economy saw
modest growth overall, supported by the buoyant U.S. andEuropean economies. The Japanese economy continued on a
gradual recovery path in general, reflecting higher capital
expenditures and corporate production as well as a pickup in
personal consumption.
The semiconductor and the electronic components market
experienced a growth trend on the whole due to the growth of newmarkets including smartphones and data centers. On the other
hand, the PC markets saw continued negative growth from theprevious fiscal year, despite some signs of upturn in the market.
The automotive exhaust system components market
remained strong overall, centered on the large vehicle market
mainly in North America and the passenger car market in Europe.
Given this situation, to achieve lasting and steady corporate
growth, the Group worked to enhance its corporate constitution
centered on human resource development based on Genchi(actual site), Gembutsu (actual thing), and Jigakari (on-site solution of problems). Furthermore, we sought to boost thecompetitiveness of our businesses with the aim of creating astable earnings structure consisting of three business segments:
the Electronics Operation, the Ceramics Operation, and the Other
Operation, which comprises domestic affiliated company businesses and power business. In addition, we have been steadily
proceeding with the development of new products to build new
business pillars that support medium- and long-term growth. In
particular, we established four new development centers in theprevious fiscal year, initiated development of new products andthe early launch of the product, and formed a capital and business alliance with Denso Corporation on April 27, 2017. Throughthis alliance, we will kick-start the development of new products
by conducting joint R&D on the next generation of exhaustsystems and vehicle electrification.
As a result of our activities during the fiscal year under review,
consolidated net sales amounted to ¥300,404 million, an

Financial
Sectionincrease of ¥33,944 million or 12.7%. Operating income totaled¥16,702 million, up ¥9,560 million or 133.9%. Profit attributable toowners of parent for the period stood at ¥11,583 million (comparedto ¥62,849 million in loss attributable to owners of parent for theprevious fiscal year).

Analysis of Our Financial Condition and Business
Performance
Analysis of Our Financial Condition(1) Assets
Total assets at the end of the fiscal year under review were¥438,096 million (an increase of 8.0% from the previous fiscal yearend). Current assets amounted to ¥228,724 million (a 12.0%
increase), and fixed assets were ¥209,372 million (a 3.8% increase).
The significant contributing components in current assets
were increases of ¥13,578 million in cash and deposits, ¥5,626
million in trade notes and accounts receivable and ¥2,470 million
in work in process.
The major factor in fixed assets was a rise of ¥7,849 million in
investment securities.
(2) Liabilities and Net Assets
Total liabilities at the end of the fiscal year under review were¥151,728 million (a 4.8% increase from the previous fiscal yearend). Current liabilities amounted to ¥93,491 million (a 5.6%
increase), and long-term liabilities were ¥58,237 million (a 3.5%
increase). Major factors attributable to the increase in current
liabilities included an increase of ¥13,469 million in notes andaccounts payable. The rise in long-term liabilities reflected mainly
an increase of ¥1,858 million in deferred income taxes. Total net
assets at the end of the fiscal year under review were ¥286,368
million (a 9.7% increase over the previous fiscal year-end) due toa decrease of ¥15,697 million in treasury stock.
As a result of the above, the equity ratio at the year-end roseto 64.2% from 63.2% a year ago. Net assets per share grew to¥2,012.60 from ¥1,927.53.

Net Sales

Total Net Assets/
ROE(Millions of Yen)

(Millions of Yen)(%)

(Millions of Yen)

(%)

350,000

14

500,000

10

300,000

12

400,000

8

250,000

10

200,000

8

300,000

6

150,000

6

200,000

4

100,000

4

100,000

2

50,000

2

0

0

0

0

300,000

200,000

100,000

Total Assets/
ROA

0

–15

–22

14

15

16

17

18

14
ROE

15

16

17

14

18
ROA

15

16

17

18

Analysis of Our Business Performancemillion, compared to ¥62,849 million in loss attributable to ownersof parent for the previous fiscal year. Basic profit attributable toowners of parent per share for this period was ¥83.21, comparedto ¥472.26 in basic loss attributable to owners of parent per sharefor the previous fiscal year. Return on equity (ROE) stood at 4.3%.

(1) Net Sales and Operating Income
Please see “Review of Operations” on pages 14 through 16 forthe general status of net sales and segment income for thebusiness segments.
Net sales amounted to ¥300,404 million (a 12.7% increase
from the previous fiscal year).
Cost of sales was ¥234,517 million (a 11.3% increase)reflecting higher net sales. The cost-to-sales ratio improved 1.0
percentage point to 78.1%.
Accordingly, operating income totaled ¥16,702 million (a133.9% increases).

Cash Flow Conditions(1) Cash Flow from Operating Activities
Net cash provided by operating activities totaled ¥27,040 million(versus ¥28,813 million in the previous fiscal year). This primarilyreflected ¥24,567 million in depreciation and amortization,¥18,550 million in profit before income taxes, and an increase of¥6,439 million in notes and accounts payable, despite anincrease of ¥5,844 million in inventories and ¥3,708 million inincome taxes paid.

(2) Other Income (Expenses)
In the category of other income and expenses, the Company
recorded other income of ¥1,848 million (net) for the fiscal year
under review, compared to ¥67,914 million of other expenses
reported one year earlier. The major factor behind the increase inother income was an absence of ¥61,989 million in businessstructure reform expenses recorded in the previous fiscal year.
Accordingly, profit before income taxes amounted to ¥18,550
million, compared to ¥60,772 million in a loss before income
taxes for the previous fiscal year.

(2) Cash Flow from Investing Activities
Net cash used in investing activities totaled ¥21,303 million(versus ¥26,280 million in the previous fiscal year). This was
mainly due to payments of ¥18,768 million for purchases ofproperty and equipment and ¥2,558 million for purchases ofinvestment securities.

(3) Income Taxes and Profit (Loss)
Income taxes increased from ¥1,847 million in the previous fiscal
year to ¥6,696 million in the fiscal year under review. Consequently,
profit amounted to ¥11,854 million, compared to ¥62,619 million
in a loss for the previous fiscal year.

(3) Cash Flow from Financing Activities
Net cash provided by financing activities totaled ¥6,725 million(versus ¥5,135 million in net cash used in the previous fiscal
year). This was mainly due to cash inflows of ¥12,000 million inproceeds from sales of treasury stock, which offset cash outflowsof ¥4,760 million in cash dividends paid.

(4) Profit (Loss) Attributable to Non-Controlling Interests
Loss attributable to non-controlling interests amounted to ¥271
million versus ¥230 million in the previous fiscal year.
(5) Profit (Loss) Attributable to Owners of Parent
Profit attributable to owners of parent for this period was ¥11,583

Interest-Bearing Debt

Operating Income/Operating Income Ratio

Net (loss) Income Attributable to
Owners of Parent(Millions of Yen)

(Millions of Yen)(%)

28,00020

21,00015

14,000

10

7,000

5

70,00060,000(Millions of Yen)

25,00020,00050,00015,00040,00030,00010,0005,000

20,00010,000

0

0

14

15

16

17

18

0

14

15

16

Operating Income Ratio

17

18

0
–70,000

14

15

16

17

18

Management Discussion and Analysis

Cash and cash equivalents (hereafter “cash”) at the end of the
fiscal year under review amounted to ¥117,760 million, up¥13,658 million over the previous fiscal year-end.
The following is a summary of cash flow activities.

27

Consolidated Balance SheetIBIDEN CO., LTD. and Consolidated Subsidiaries
March 31, 2018 and 2017
Thousands of
U.S. dollars(Note 5)

Millions of yen

2018

2017

2018

¥104,182$1,108,331

AssetsCurrent assets:
Cash and deposits (Notes 6 and 21).............................................................................. ¥117,760
Notes and accounts receivable (Note 6):
Trade..........................................................................................................................

62,236

56,610585,748

Other..........................................................................................................................

2,464

3,260

23,190Allowance for doubtful accounts.................................................................................

(102)

(252)

(956)

12,83910,421

120,840

Inventories:

Consolidated Balance Sheet

Merchandise and finished goods................................................................................
Work in process.........................................................................................................

9,922

7,452

93,380Raw materials and supplies........................................................................................

17,251

15,765

162,364

Deferred income taxes (Note 12)...................................................................................

2,389

1,918

22,487

Other current assets......................................................................................................

3,965

4,814

37,316

Total current assets..........................................................................................................

228,724

204,170

2,152,700

Land (Note 16)...............................................................................................................

19,831

19,046

186,646

Buildings and structures (Notes 14 and 15)...................................................................

184,443

183,005

1,735,936

Machinery and equipment (Notes 14 and 15)................................................................

449,392

443,160

4,229,567

Leased assets...............................................................................................................

733

1,617

6,902

Construction in progress (Notes 14 and 15)...................................................................

10,7077,135

100,767

665,106

653,963

6,259,818

Accumulated depreciation............................................................................................. (513,797)(502,810)(4,835,734)

151,309

151,153

1,424,084

28
Property, plant and equipment:

Property, plant and equipment, net...................................................................................

Investments and other assets:
Investment securities (Notes 6, 7 and 9):
Unconsolidated subsidiaries and affiliates...................................................................

33

891

306

Other..........................................................................................................................

51,922

43,215

488,679

Long-term loans receivable............................................................................................

11

30

104

Deferred income taxes (Note 12)...................................................................................

1,124

734

10,581Other assets..................................................................................................................

5,241

5,900

49,325

Allowance for doubtful accounts....................................................................................

(268)

(310)

(2,520)Total investments and other assets...................................................................................

58,06350,460546,475

Total assets (Note 23)....................................................................................................... ¥ 438,096¥405,783$4,123,259

2018

2017

2018

¥20,057$188,289

29,264
10,332
110
5,952
1,159
10
3,354
—
12,812
5,499
88,549351,506
147,936
1,023
62,16238,518104
36,034847—
53,496879,915

50,000
79
525
75
6,167
1,391
58,23750,006
86
469
—
4,309
1,424
56,294

470,588
743
4,942
705
58,03913,100548,117

64,15264,579123,736(2,609)249,858

64,15264,579121,092(18,306)
231,517603,790
607,806
1,164,566(24,558)
2,351,604

20,24777
160
10,856
31,3405,170
286,368

15,987
640
160
8,211
24,998
4,425
260,940

190,564
725
1,507
102,169
294,965
48,6582,695,227

Total liabilities and net assets............................................................................................ ¥438,096¥405,783$4,123,259

Liabilities and net assets
Current liabilities:
Short-term borrowings and current portion of long-term debt (Notes 6 and 8)............... ¥20,006
Notes and accounts payable (Notes 6 and 9):
Trade..........................................................................................................................
37,347
15,718Other..........................................................................................................................
Lease obligations (Note 10)...........................................................................................
109
Accrued expenses.........................................................................................................
6,605
Income taxes payable (Note 12).....................................................................................
4,092
Deferred income taxes (Note 12)...................................................................................
11
Accrued bonuses for employees...................................................................................
3,829
90
Accrued bonuses for directors and audit & supervisory board members........................
Provision for business structure reform expenses (Note 15)...........................................
—
5,684
Other current liabilities...................................................................................................
Total current liabilities........................................................................................................
93,491Long-term liabilities:
Long-term debt (Notes 6 and 8) ...................................................................................
Lease obligations (Note 10)...........................................................................................
Liability for retirement benefits (Note 11)........................................................................
Provision for share-based compensation (Note 4)..........................................................
Deferred income taxes (Note 12)...................................................................................
Other long-term liabilities...............................................................................................
Total long-term liabilities....................................................................................................

Net assets:
Shareholders’ equity (Note 13):
Common stock:
Authorized – 230,000,000 shares
Issued – 140,860,557 shares in 2018 and 2017......................................................
Capital surplus............................................................................................................
Retained earnings.......................................................................................................
Less treasury stock, at cost........................................................................................
Total shareholders’ equity..............................................................................................
Accumulated other comprehensive income :Net unrealized holding gain on other securities...........................................................
Deferred gain on hedges (Note 22).............................................................................
Surplus arising from land revaluation (Note 16)...........................................................
Translation adjustments..............................................................................................
Total accumulated other comprehensive income...........................................................
Non-controlling interests................................................................................................
Total net assets (Note 19).................................................................................................
See accompanying notes to consolidated financial statements.

Consolidated Balance Sheet

Thousands of
U.S. dollars(Note 5)

Millions of yen

29Consolidated Statement of Income

IBIDEN CO., LTD. and Consolidated Subsidiaries
Years ended March 31, 2018 and 2017
Thousands of
U.S. dollars(Note 5)

Millions of yen

Consolidated Statement of Income

2018

2017

2018

Net sales (Note 23)........................................................................................................... ¥300,404¥266,460$2,827,331

Cost of sales....................................................................................................................

234,517

210,641

2,207,218

Gross profit......................................................................................................

65,88755,819620,113

Selling, general and administrative expenses (Note 17).....................................................

49,18548,677462,916

Operating income (Note 23).............................................................................

16,702

7,142

157,197

Interest and dividend income ........................................................................................

1,390

1,558

13,078Interest expense............................................................................................................

(147)

(188)

(1,380)Gain on sales of investment securities (Note 7)..............................................................

60

—

567

Other, net (Notes 14, 15 and 18)....................................................................................

545(69,284)

5,130

Profit (loss) before income taxes......................................................................

18,550(60,772)

174,592

Current..........................................................................................................................

(7,399)(2,391)(69,634)

Deferred........................................................................................................................

703

544

6,610

(6,696)(1,847)(63,024)

11,854(62,619)

111,568

(271)

(230)

(2,547)

Owners of parent (Note 19).............................................................................. ¥11,583¥(62,849)$109,021

Other income (expenses):

30
Income taxes (Note 12):

Profit (loss).......................................................................................................
Profit (loss) attributable to:Non-controlling interests................................................................................................

See accompanying notes to consolidated financial statements.

Consolidated Statement of Comprehensive Income

IBIDEN CO., LTD. and Consolidated Subsidiaries
Years ended March 31, 2018 and 2017
Thousands of
U.S. dollars(Note 5)

Millions of yen

2018

2017

2018

¥11,854¥(62,619)$111,568

Net unrealized holding gain on other securities..............................................................

4,291

3,532

40,382

Deferred gain (loss) on hedges.......................................................................................

(563)

442

(5,295)

Surplus arising from land revaluation..............................................................................

—

—

—

Translation adjustments.................................................................................................

2,572(7,259)24,208

Total other comprehensive income (loss) (Note 20)...........................................................

6,300(3,285)59,295Comprehensive income (loss)...........................................................................................

¥18,154¥(65,904)$170,863

Owners of parent...........................................................................................................

¥17,926¥(66,109)$168,714

Non-controlling interests................................................................................................

228

205

2,149

Profit (loss)........................................................................................................................

Comprehensive income (loss) attributable to:

See accompanying notes to consolidated financial statements.

Consolidated Statement of Comprehensive Income

Other comprehensive income (loss):31

Consolidated Statement of Changes in Net Assets

IBIDEN CO., LTD. and Consolidated Subsidiaries
Years ended March 31, 2018 and 2017

Consolidated Statement of Changes in Net Assets

Millions of yen

32

Net
unrealized
holding gain Deferredgain (loss)
on othersecurities on hedges

Surplusarising
Nonfrom land Translation controlling
revaluation adjustments interests

Number ofshares inissue(Thousands)

Commonstock

CapitalsurplusRetainedearnings

Treasurystock,
at costBalance at
March 31, 2016.........

140,861¥64,152¥64,579¥188,599¥(18,302)¥12,478¥  198¥160¥15,469¥4,188¥331,521

Cash dividends............

—

—

—

(4,658)

—

—

—

—

—

—

(4,658)Loss attributable toowners of parent........

—

—

—

(62,849)

—

—

—

—

—

—

(62,849)

Purchases oftreasury stock............

—

—

—

—

(4)

—

—

—

—

—

(4)

Retirement oftreasury stock............

—

—

—

(0)

0

—

—

—

—

—

0

Other changes.............

—

—

—

—

—

3,509

442

—

(7,258)237(3,070)

Balance at
March 31, 2017.........

140,861

64,15264,579121,092(18,306)

15,987

640

160

8,211

4,425

260,940

Cash dividends............

—

—

—

(4,760)

—

—

—

—

—

—

(4,760)

Profit attributable toowners of parent........

—

—

—

11,583

—

—

—

—

—

—

11,583Purchases oftreasury stock............

—

—

—

—

(363)

—

—

—

—

—

(363)

Retirement oftreasury stock............

—

—

—

(4,059)16,060

—

—

—

—

—

12,001

Change in scope of
consolidation..............

(120)

Total
net
assets(120)

Other changes.............

—

—

—

—

—

4,260

(563)

—

2,645

745

7,087

Balance at
March 31, 2018.........

140,861¥64,152¥64,579¥123,736¥ (2,609)¥20,247¥    77¥160¥10,856¥5,170¥286,368

IBIDEN CO., LTD. and Consolidated Subsidiaries
Years ended March 31, 2018 and 2017
Thousands of U.S. dollars (Note 5)

Surplusarisingfrom land
revaluation

Translation
adjustments

Noncontrollinginterests

Total
net
assetsCommonstock

CapitalsurplusRetainedearnings

Balance at
March 31, 2017.........

$603,790$607,806$1,139,685$(172,288)$150,469$ 6,020$1,507$ 77,275$41,643$2,455,907

Cash dividends............

——(44,802)

—

—

—

—

—

—

(44,802)

Profit attributable toowners of parent........

——

109,021

—

—

—

—

—

—

109,021

Purchases oftreasury stock............

—

—

—

(3,420)

—

—

—

—

—

(3,420)Retirement oftreasury stock............

——(38,205)

151,150

—

—

—

—

—

112,945

Change in scope of
consolidation..............

——(1,133)

—

—

—

—

—

—

(1,133)

Other changes.............

—

—

—

—

40,095(5,295)—24,894

7,015

66,709Balance at
March 31, 2018.........

$603,790$607,806$1,164,566$  (24,558)$190,564$   725$1,507$102,169$48,658$2,695,227

Consolidated Statement of Changes in Net Assets

Net unrealized
Deferredholding gain
gain (loss)
on otheron hedges
securities

Treasurystock,
at costSee accompanying notes to consolidated financial statements.

33

Consolidated Statement of Cash Flows

IBIDEN CO., LTD. and Consolidated Subsidiaries
Years ended March 31, 2018 and 2017
Thousands of
U.S. dollars(Note 5)

Millions of yen

2018

2017

2018

¥ (60,772)$174,592

Operating activities
Profit (loss) before income taxes....................................................................................... ¥ 18,550

Consolidated Statement of Cash Flows

Adjustments to reconcile profit (loss) before income taxes to
net cash provided by operating activities:

34

Depreciation and amortization.......................................................................................

24,56733,148231,215

Loss on impairment of fixed assets................................................................................

244

102

2,297

Amortization of goodwill.................................................................................................

237

905

2,230

Reversal for accrued bonuses for employees.................................................................

437

(283)

4,115

Reversal for accrued bonuses for directors....................................................................

90

(77)

847

Reversal of allowance for doubtful accounts..................................................................

(197)

(40)

(1,854)

Increase (decrease) in liability for retirement benefits......................................................

(4)

4

(34)

Interest and dividend income.........................................................................................

(1,390)(1,558)(13,078)

Interest expense............................................................................................................

147

188

1,380

Equity in loss of an affiliate.............................................................................................

(3)

—

(32)

Gain on sales of property and equipment......................................................................

(89)

(197)

(840)

Loss on disposal of property and equipment and other assets......................................

1,698

1,281

15,987

Gain on sales of investment securities...........................................................................

(54)

—

(512)

Business structure reform expenses..............................................................................

—

59,441—

Decrease (increase) in notes and accounts receivable, trade..........................................

(3,402)859(32,019)

Decrease (increase) in inventories..................................................................................

(5,844)

2,675(55,000)

Increase (decrease) in notes and accounts payable.......................................................

6,439(4,671)60,601

Increase (decrease) in accrued expenses.......................................................................

538

(386)

5,068

Other, net......................................................................................................................

(12,436)382(117,048)

Subtotal...........................................................................................................

29,52831,001

277,915Interest and dividends received.........................................................................................

1,367

1,615

12,862

Interest paid.....................................................................................................................

(147)

(188)

(1,380)

Income taxes paid............................................................................................................

(3,708)(4,225)(34,900)

Income taxes refunded.....................................................................................................

—

610

—

Net cash provided by operating activities.......................................................................... ¥ 27,040¥ 28,813$254,497

IBIDEN CO., LTD. and Consolidated Subsidiaries
Years ended March 31, 2018 and 2017
Thousands of
U.S. dollars(Note 5)

Millions of yen

2018

2017

2018

Purchases of property and equipment.............................................................................. ¥ (18,768)¥ (25,558)$ (176,637)

Proceeds from sales of property and equipment...............................................................

277

182

2,610

Purchases of intangible assets..........................................................................................

(408)(1,023)(3,845)Purchases of investment securities...................................................................................

(2,558)(38)(24,073)

Proceeds from sales of investment securities....................................................................

165

2

1,556

Collection of short-term loans receivable..........................................................................

—

0

—

Long-term loans receivable made.....................................................................................

(11)

(11)

(109)

Collection of long-term loans receivable............................................................................

17

19

162

Other, net.........................................................................................................................

(17)

147

(166)

Net cash used in investing activities..................................................................................

(21,303)(26,280)(200,502)

Increase in long-term debt................................................................................................

—

10,000—

Repayment of long-term debt...........................................................................................

(57)(10,065)(536)

Proceeds from issuance of bonds....................................................................................

—

15,000—

Redemption of bonds.......................................................................................................

—(15,000)—

Purchases of treasury stock..............................................................................................

(363)

(4)

(3,420)

Proceeds from sales of treasury stock..............................................................................

12,000

1

112,944

Cash dividends paid to non-controlling interests...............................................................

(20)

(15)

(191)

Cash dividends paid.........................................................................................................

(4,760)(4,658)(44,802)

Repayments of lease obligations......................................................................................

(75)

(94)

(703)

Financing activities

Other, net.........................................................................................................................

—

(300)

—

Net cash (used in) provided by financing activities.............................................................

6,725(5,135)63,292

Effect of exchange rate changes on cash and cash equivalents.............................

490(1,171)

4,612

Increase (decrease) in cash and cash equivalents....................................................

12,952(3,773)

121,899

Cash and cash equivalents at beginning of year.......................................................

104,102

107,875

979,782

Increase (decrease) in cash and cash equivalentsfrom newly consolidated subsidiary.........................................................................

706

—

6,650

Cash and cash equivalents at end of year (Note 22)................................................... ¥117,760¥104,102$1,108,331

See accompanying notes to consolidated financial statements.

Consolidated Statement of Cash Flows

Investing activities

35

Notes to Consolidated Financial Statements
IBIDEN CO., LTD. and Consolidated Subsidiaries
March 31, 2018

1. Basis of Presentation
IBIDEN CO., LTD. (the “Company”) and its domestic subsidiaries maintain theirbooks of account in conformity with accounting principles generally acceptedin Japan, and its overseas subsidiaries maintain their books of account in conformity with those of their respective countries of domicile.
The accompanying consolidated financial statements have been preparedin accordance with accounting principles generally accepted in Japan, which
are different in certain respects as to the application and disclosure requirements of International Financial Reporting Standards, and have been compiled

from the consolidated financial statements prepared by the Company as
required by the Financial Instruments and Exchange Act of Japan.
In preparing the accompanying consolidated financial statements, certain
reclassifications and rearrangements have been made to the consolidated
financial statements issued domestically for the convenience of readers outside Japan. Furthermore, the notes to the consolidated financial statements
include certain information which is not required under accounting principles
generally accepted in Japan but is presented herein as additional information.

Notes to Consolidated Financial Statements

2. Summary of Significant Accounting Policies

36(a)	Principles of consolidation and accounting for investments inunconsolidated subsidiaries and affiliates	Under the principles of consolidation, companies are to include in theirconsolidated financial statements. Significant subsidiaries over which substantial control is exerted either through majority ownership of voting stock
and/or by other means. Accordingly, the accompanying consolidated
financial statements include the accounts of the Company and its 37 and33 significant consolidated subsidiaries for the years ended March 31,2018 and 2017, respectively. For the point of view of group management,
Four (4) subsidiaries that were unconsolidated for the year ended March
31, 2017 have been consolidated for the year ended March 31, 2018. In
addition, 2 companies were accounted for by the equity method for theyear ended March 31, 2018 although there were no companies accounted
for the equity method for the year ended March 31, 2017.
		 Significant investments in affiliates over which the Company has the ability to exercise significant influence with regard to the operating and financial policies of the investees are also accounted for by the equity method.
		 For the point of view of group management, Two (2) affiliates that were
not accounted for by the equity method for the year ended March 31,2017 have been accounted by the equity method for the year ended
March 31, 2018.
		 Investments in the remaining unconsolidated subsidiaries and affiliates
are carried at cost or less. If the equity method of accounting had been
applied to the investments in these companies, the effect on the accompanying consolidated financial statements would not be material. When
there has been a permanent decline in the value of such investments, theCompany has written them down.
		 All significant intercompany transactions and accounts have been eliminated in consolidation.
		 The financial statements of certain overseas consolidated subsidiaries
whose fiscal year end is December 31 have been included in consolidationon the basis of a full fiscal year closing on March 31 for consolidation purposes.
		 The Company has adopted “Practical Solution on Unification of
Accounting Policies Applied to Foreign Subsidiaries for Consolidated
Financial Statements” (ASBJ Practical Issues Task Force (“PITF”) NO. 18,
March 26 2015 amendment), and necessary modifications have made forconsolidation.
(b) Foreign currency translation
	All monetary assets and liabilities denominated in foreign currencies aretranslated into yen at the rates of exchange in effect at the balance sheet
date and gain or loss on each translation is credited or charged to income.
		 Revenue and expense items arising from transactions denominated inforeign currencies are generally translated into yen at the rates of
exchange in effect at the respective transaction dates. Gain or loss resulting from foreign currency transactions is credited or charged to income inthe year in which the gain or loss is recognized for financial reporting purposes.
		 The balance sheet accounts of the overseas consolidated subsidiaries
are translated into yen at the rates of exchange in effect at the balance
sheet date except that components of net assets excluding non-controlling interests are translated at their historical exchange rates. Revenue andexpense accounts are translated into yen at the average rates of exchange
in effect during the year. Adjustments resulting from translating financial
statements denominated in a foreign currency are not included in thedetermination of profit attributable to the owners of the parent, but arereported as translation adjustments and non-controlling interests in net
assets in the consolidated balance sheet.
(c) Cash equivalents	For the consolidated statement of cash flows, all highly liquid investmentswith a maturity of three months or less when purchased are consideredcash equivalents.

(d) Allowance for doubtful accounts
	An allowance for doubtful accounts of the Company and its domestic consolidated subsidiaries is provided at an amount based on historical experience of bad debts for ordinary receivables plus an estimate of specific bad
debts from customers experiencing financial difficulties.
		 An allowance for doubtful accounts of the Company’s overseas consolidated subsidiaries is provided based principally on estimates of specificbad debts.
(e) Inventories
	Inventories of the Company and its domestic consolidated subsidiaries arestated principally at the lower of cost determined primarily by the moving
average method or net selling value. Inventories of the overseas consolidated subsidiaries are stated principally at the lower of cost or market,
with cost determined primarily by the first-in, first-out method.
(f) Investment securities
	Securities are classified into three categories: trading securities, held-tomaturity debt securities and other securities. Trading securities, consistingof debt and marketable equity securities, are carried at fair value. Gains
and losses, both realized and unrealized, are credited or charged toincome. Held-to-maturity debt securities are carried at amortized cost.
Marketable securities classified as other securities are carried at fair value
with any change in unrealized holding gain or loss, net of the applicable
income taxes, reported as a separate component of accumulated othercomprehensive income (loss). Nonmarketable securities classified as othersecurities are carried at cost. Cost of securities sold is determined by themoving average method.
(g)	Depreciation of property, plant and equipment (other than leased
assets)	Depreciation of property, plant and equipment of the Company and its
domestic consolidated subsidiaries is calculated principally by the declining balance method based on the estimated useful life of the asset and theresidual value determined by the Company and each domestic consolidated subsidiary.
		 Depreciation of property, plant and equipment of the overseas consolidated subsidiaries is calculated principally by the straight-line method
based on the estimated useful life of the asset and the residual value
determined by each subsidiary.
		 Estimated useful lives of property, plant and equipment are generally 3 to
75 years for building and structures and 3 to 22 years for machinery andequipment.
		 Significant renewals and additions are capitalized at cost. Maintenanceand repairs are charged to income as incurred.
(h)	Intangible assets included in other assets (other than leased
assets)	Amortization of intangible assets is calculated by the straight-line method.
Capitalized computer software intended for internal use is amortized overits estimated useful life of five years.
(i) LeasesL eased assets under finance leases are depreciated to their residual valueof zero by the straight-line method using the contract term as the useful life.
(j) Goodwill
	Amortization of goodwill is calculated by the straight-line method over 5
years.
(k) Accrued bonuses for employees	Accrued bonuses for employees of the Company and its domestic consolidated subsidiaries are provided for the estimated amount of bonuses tobe paid in the following year attributable to the current fiscal year.

(m) Provision for business structure reform expenses	Accrued expenses for business structure reform expenses are provided forthe current portion of the estimated amount to be occurred in the future.
(n) Retirement benefits for employees
	Liability for retirement benefits for employees of certain consolidated subsidiaries is provided principally at an amount based on the retirement benefit obligation.
		 The retirement benefit obligation of certain consolidated subsidiaries is
attributed to each year on a straight-line basis over the estimated remaining years of service of eligible employees. Prior service cost and actuarial
gain or loss incurred at certain consolidated subsidiaries are credited or
charged to income in the year in which the gain or loss is recognized.
		 Certain consolidated subsidiaries have adopted a simplified method forthe retirement benefits calculation. Under this simplified method, liability for
retirement benefits is stated at the amount which would be required to be
paid if all eligible employees voluntarily terminated their employment at thebalance sheet date.
(o) Provision for share based compensation
	A provision is recognized for the estimated share based compensation for
directors, etc., to be incurred in the future based on the planned sharebased compensation.
(p) Income taxes
	Deferred tax assets and liabilities have been recognized in the accompanying consolidated financial statements with respect to the differences
between the amounts recorded for financial reporting purposes and thetax bases of the assets and liabilities and were measured using theenacted tax rates and laws which will be in effect when the differences are
expected to reverse.

(q) Deferred assets
	Bond issuance costs and share issuance costs are charged to expense as
incurred.
(r) Research and development costs
Research and development costs are charged to expense as incurred.
(s) Revenues and related costs
	Revenues and the related costs and expenses, except for those from construction contracts, are generally recognized on sales of products at thetime of shipment. The Company recognizes revenue by applying the percentage-of-completion method for construction projects for which the outcome of the construction activity is deemed certain at the end of thereporting period. To estimate the progress of such construction projects,
the Company measures the percentage of completion by comparing costs
incurred to date with the most recent estimate of total costs required tocomplete the project (cost to cost basis). For other construction projects
for which the outcome cannot be reliably measured, the completed contract method is applied.
(t) Derivatives	Derivative positions are carried at fair value with any changes in unrealized
gain or loss charged or credited to income, except for those which meetthe criteria for deferral hedge accounting under which unrealized gain orloss is deferred and reported as deferred gain or loss on hedges in a separate component of accumulated other comprehensive income (loss).
(u) Distribution of retained earnings
	
U nder the Corporation Law of Japan (the “Law”), the distribution ofretained earnings with respect to a given fiscal year is made by resolution
at a meeting of the Board of Directors of the Company held subsequent tothe close of the fiscal year. The accounts for that fiscal year do not, therefore, reflect such distributions. (Refer to Note 24.)

3. Standards and Guidance Not Yet Adopted(a) Recoverability of deferred tax assets
The following guidance was issued but not yet adopted.
— “Implementation Guidance on Tax Effect Accounting” (ASBJ Guidance
No. 28, February 16, 2018 (hereinafter, “Guidance No. 28”))— “Implementation Guidance on Recoverability of Deferred Tax Assets”(ASBJ Guidance No. 26 (revised 2018), February 16, 2018 (hereinafter,“Guidance No. 26”))(Overview)	The above guidance was revised in regard to the treatments for taxable
temporary differences for investments in subsidiaries within the context ofthe nonconsolidated financial statements, and to clarify the treatments indetermining recoverability of deferred tax assets in a company which wascategorized as ‘Type 1’ according to the guidance.
	(Effective date)	Effective from the beginning of the fiscal year ended March 31, 2019.
	(Effects of the application of the standards)
	The Company and its consolidated domestic subsidiaries are in the process of determining the effects of these new standards on the consolidated financial statements(b) Revenue Recognition
	The following standard and guidance were issued but not yet adopted.

— “Accounting Standard for Revenue Recognition” (ASBJ Statement No.
29, March 30, 2018)— “ Implementation Guidance on Accounting Standard for Revenue
Recognition” (ASBJ Guidance No. 30, March 30, 2018)	(Overview)	The above standard and guidance provide comprehensive principles forrevenue recognition. Under the standard and guidance, revenue is recognized by applying the following 5 steps:
		 Step 1: Identify contract(s) with customers.
		 Step 2: Identify the performance obligations in the contract.
		 Step 3: Determine the transaction price.
		 Step 4: Allocate the transaction price to the performance obligation in
the contract.
		 Step 5; R ecognize revenue when (or as) the entity satisfies a performance obligation.
	(Effective date)	Effective from the beginning of the fiscal year ended March 31, 2022.
	(Effects of the application of the standards)
	The Company and its consolidated domestic subsidiaries are in the process of determining the effects of these new standards on the consolidated financial statements.

4. Additional information(a) Share based compensation plan for directors
	The board meeting of the company held on April 27, 2017 resolved to
introduce a share-based compensation plan for directors (excluding outside directors and directors who are members of the audit and supervisorycommittee) and managing officers (hereinafter “directors, etc.” in this section) and introduced the plan.
	(Outline of the plan)	The plan is a share-based compensation plan in which the Company will
grant points to directors and distribute to them the number of shares of theCompany equivalent to the cumulative number of points granted to them.

	(The Company’s own stock in the trust)	The Company own stock in the possession of the trust is recorded astreasury stock under net assets at book value. The book value and number of shares of treasury stock were ¥360 million ($3,387 thousand) and
186 thousands shares as of the year ended March 31, 2018.
	(Scope of those eligible to receive beneficiary rights for the trust and otherrights)	Directors (excluding outside directors and directors who are members of
the audit and supervisory committee) and managing officers.

Notes to Consolidated Financial Statements(l)	Accrued bonuses for directors and audit & supervisory board members	Accrued bonuses for directors and audit & supervisory board members of
the Company are provided at the estimated amount of bonuses to be paidin the following year attributable to the current fiscal year.

37

Notes to Consolidated Financial Statements (continued)

5. U.S. Dollar Amounts
The U.S. dollar amounts in the accompanying consolidated financial statements
have been translated from yen solely for convenience and as a matter of arithmetic computation only at a rate of ¥106.25 to U.S.$1.00, the rate of exchange

prevailing on March 31, 2018. This translation should not be construed as arepresentation that the yen amounts have been, could have been or could in
the future be converted into U.S. dollars at this or any other rate of exchange.

Notes to Consolidated Financial Statements

6. Financial Instruments

38

Status of financial instruments
The Company and its consolidated subsidiaries (collectively, the “Group”) raise
funds for capital expenditures principally through the issuance of bonds andloans from banks. The Group manages temporary cash surpluses throughhighly liquid financial assets. The Group raises short-term capital through loans
from banks, and utilizes derivative financial instruments to reduce the risks discussed below and does not enter into derivative transactions for speculative
purposes.
Notes and accounts receivable-trade, are exposed to credit risk in relation
to customers. In addition, the Group is exposed to foreign currency exchange
risk arising from trade receivables denominated in foreign currencies. Shortterm investments and investment securities are exposed to market risk. These
securities consist mainly of shares of companies with which the Group hasbusiness relationships and debt securities through which the Group manages
temporary cash surpluses.
Substantially all notes and accounts payable have payment due dates
within one year. In addition, the Group is exposed to foreign currency exchange
risk arising from those trade payables denominated in foreign currencies.
The Group conducts various financing activities to acquire the funds necessary for working capital investments in property, plant and equipment, etc.
Borrowings and bonds with floating interest rates as a part of the financing are
exposed to the risk of interest rate fluctuation.
Regarding derivative transactions, the Group enters into forward foreignexchange contracts to reduce the foreign currency exchange risk arising fromthe receivables and payables denominated in foreign currencies.
In accordance with the internal policies of the Group for managing credit risk
(risk of nonperformance by any of the counterparties) arising from trade receivables, the Group monitors the creditworthiness of customers and takes prompt
action on outstanding balances in order to mitigate the credit risks. In addition,
the Group only acquires held-to-maturity debt securities with high credit ratings.
For trade receivables and payables denominated in foreign currencies, theCompany identifies the foreign currency exchange risk for each currency on amonthly basis and enters into forward foreign exchange contracts to hedge
such risk.
In order to mitigate the unfavorable impact caused by foreign currency
exchange fluctuations on accounts receivable derived from forecasted export
sales transactions, the Company enters into forward foreign exchange contracts to the extent it is probable that those forecasted export sales take place.
For investment securities, the Group periodically reviews market prices andthe financial position of the issuers who are business counterparties of theGroup and evaluates whether securities other than those classified as held-tomaturity debt securities should be maintained taking into account their fair values and relationships with the counterparty companies.
Derivative transactions are entered into by the division in charge of derivative transactions with the approval from the authorized officers in accordancewith the internal policies, which set forth the delegation of authority and the
maximum upper limit on positions.
In order to manage liquidity risk (the risk that the Group may not be able tomeet its obligations as scheduled) division responsible prepares and updates
its cash flow plans on a timely basis based on reports from each division.
The fair value of financial instruments is based on their quoted market
price, if available. When there is no quoted market price available, fair value isreasonably estimated. Since various assumptions and factors are reflected inestimating the fair value, different assumptions and factors could result in a different fair value. In addition, the notional amounts of derivatives in Note 22,“Derivatives” are not necessarily indicative of the actual market risk involved in
the derivative transactions themselves.
Estimated Fair Value of Financial Instruments
Carrying value of financial instruments on the consolidated balance sheet andestimated fair value at March 31, 2018 and 2017 are summarized in the tablebelow. Financial instruments for which it is extremely difficult to determine thefair value are not included in the following table.

Carrying
value

2018
Estimated
fair value(Millions of yen)

Assets:Cash and deposits...........................................................................................................................
Notes and accounts receivable-trade...............................................................................................
Investment securities........................................................................................................................
Total assets.........................................................................................................................................

¥117,760
62,236
51,198¥231,194¥117,760
62,236
51,198¥231,194

¥—
—
—
¥—

Liabilities:
Short-term borrowings.....................................................................................................................
Notes and accounts payable-trade..................................................................................................
Notes and accounts payable-other..................................................................................................
Long-term debt, including current portion of long-term debt............................................................
Total liabilities.......................................................................................................................................
Derivative transactions (*).....................................................................................................................

¥ 20,000
37,347
15,71850,006
123,071¥    281¥ 20,000
37,347
15,71850,001
123,066¥    281

¥—
—
—
(5)
(5)
¥—

Carrying
value

2017
Estimated
fair value(Millions of yen)

Assets:Cash and deposits...........................................................................................................................
Notes and accounts receivable-trade...............................................................................................
Investment securities........................................................................................................................
Total assets.........................................................................................................................................

¥104,182
56,61042,454¥203,246¥104,182
56,61042,454¥203,246

¥—
—
—
¥—

Liabilities:
Short-term borrowings.....................................................................................................................
Notes and accounts payable-trade..................................................................................................
Notes and accounts payable-other..................................................................................................
Long-term debt, including current portion of long-term debt............................................................
Total liabilities.......................................................................................................................................
Derivative transactions (*).....................................................................................................................

¥ 20,000
29,264
10,33250,063
109,659¥  1,557¥ 20,000
29,264
10,33250,120109,716¥  1,557

¥—
—
—
57
57
¥—

Difference

Difference

2018
Estimated
fair value(Thousands of U.S. dollars)

Difference

Assets:Cash and deposits........................................................................................................................... $1,108,331
Notes and accounts receivable-trade...............................................................................................
585,748
Investment securities........................................................................................................................
481,860
Total assets......................................................................................................................................... $2,175,939$1,108,331
585,748
481,860$2,175,939

$  —
—
—
$  —

Liabilities:
Short-term borrowings..................................................................................................................... $  188,235
Notes and accounts payable-trade..................................................................................................
351,506
147,936
Notes and accounts payable-other..................................................................................................
Long-term debt, including current portion of long-term debt............................................................
470,642
Total liabilities....................................................................................................................................... 1,158,319
Derivative transactions (*)..................................................................................................................... $    2,649$  188,235
351,506
147,936
470,590
1,158,267$    2,649

$  —
—
—
(52)
(52)
$  —

* Assets and liabilities arising from derivatives are presented at net value. The amount in parentheses represents a net liability position.
		 Prior to March 31, 2017, long-term receivables were disclosed separately. During the year ended March 31, 2018, the amount decreased significantly. However, the amount was not disclosed for theyear ended March 31 2018 or 2017. The carrying amount and net value of long-term receivables for the year ended March 31, 2018 and 2017 were ¥32 million and ¥31 million, respectively.

Methods to determine the estimated fair value of financial instruments are as follows:
The carrying value of cash and deposits, notes and accounts receivable-tradeapproximates fair value because these items are settled in a short period oftime.
Regarding investment securities, the fair value of shares is based onquoted market prices. The fair value of debt securities is based on either
quoted market prices or prices provided by financial institutions.
For information on securities classified by the purpose for which they are
held, refer to Note 7, “Investment Securities.”
The fair value of long-term loans receivable classified by the maturity andcurrent credit risk of each loan is based on the present value of the total principal and interest discounted by the interest rate determined taking into accountthat of Japanese government bonds and the credit spreads of each loan. The
fair value in the table above includes the current portion of long-term loans
receivable.
The carrying value of short-term borrowings and notes and accounts payable-trade, trade and other approximates fair value because these items aresettled in a short period of time.
The fair value of long-term debt is based on the present value of the total
principal and interest discounted by the interest rate to be applied if similar
new borrowings were entered into. The fair value in the table above includes
the current portion of long-term debt.
Regarding fair value of derivatives, refer to Note 22, “Derivatives.”

The carrying value of financial instruments for which it was extremely difficult to determine the fair value at March 31, 2018 and 2017 was as follows:

2018

2017

Thousands of
U.S. dollars
2018

¥757

¥1,652$7,125

Over 5 years
within 10 years

Over 10 years

Millions of yen

Unlisted equity securities......................................................................................................................
The redemption schedule for monetary assets at March 31, 2018 and 2017 was as follows:

2018

Within 1 year

Over 1 year
within 5 years(Millions of yen)

Cash and deposits.............................................................................................
Notes and accounts receivable-trade.................................................................
Total (*)...............................................................................................................

¥117,760
62,236¥179,996¥——¥—

Within 1 year

Over 1 year
within 5 years

¥—
—
¥—

¥—
—
¥—

Over 5 years
within 10 years

Over 10 years

2017(Millions of yen)

Cash and deposits.............................................................................................
Notes and accounts receivable-trade.................................................................
Total (*)...............................................................................................................

¥104,182
56,610¥160,792¥——¥—

Within 1 year

Over 1 year
within 5 years

¥—
—
¥—

¥—
—
¥—

Over 5 years
within 10 years

Over 10 years

2018(Thousands of U.S. dollars)

Cash and deposits.............................................................................................
Notes and accounts receivable-trade.................................................................
Total (*)...............................................................................................................

$1,108,331
585,748$1,694,079

$—
—
$—

$—
—
$—

$—
—
$—

*	Prior to March 31, 2017, long-term receivables were disclosed separately. During the year ended March 31, 2018, the amount decreased significantly. However, the amount was not disclosed for theyear ended March 31, 2018 or 2017.

Notes to Consolidated Financial Statements

Carrying
value

39

Notes to Consolidated Financial Statements (continued)

7. Investment Securities(a) Marketable securities classified as other securities at March 31, 2018 and 2017 are summarized as follows:

Notes to Consolidated Financial Statements

Acquisition cost

40

Securities whose market value reflected in the balance sheet
exceeds their acquisition cost:
Equity securities...............................................................................................................................
Other...............................................................................................................................................
Subtotal....................................................................................................................................
Securities whose market value reflected in the balance sheet
does not exceed their acquisition cost:
Equity securities...............................................................................................................................
Other...............................................................................................................................................
Subtotal....................................................................................................................................
Total....................................................................................................................................................

¥48,461—
48,461¥29,231—
29,231

3,333
—
3,333
¥22,563

2,737
—
2,737
¥51,198

(596)
—
(596)
¥28,635

Unlisted equity securities (recorded in the accompanying consolidated balance
sheet in the amounts of ¥757 million ($7,125 thousand) and ¥1,652 million atMarch 31, 2018 and 2017, respectively) are not included in the table above
because there were no quoted market prices available and it was extremely
difficult to determine the fair value.
Loss on devaluation of investment securities are recorded for the securities
whose market value represents a substantial decline of 50% or more and for2017
Market value
reflected in thebalance sheet(Millions of yen)

Difference¥18,746—
18,746¥41,232—
41,232¥22,486—
22,486

1,333
—
1,333
¥20,079

1,222
—
1,222
¥42,454

(111)
—
(111)
¥22,375

Acquisition cost

Securities whose market value reflected in the balance sheet
exceeds their acquisition cost:
Equity securities...............................................................................................................................
Other...............................................................................................................................................
Subtotal....................................................................................................................................
Securities whose market value reflected in the balance sheet
does not exceed their acquisition cost:
Equity securities...............................................................................................................................
Other...............................................................................................................................................
Subtotal....................................................................................................................................
Total....................................................................................................................................................

Difference¥19,230—
19,230Acquisition cost

Securities whose market value reflected in the balance sheet
exceeds their acquisition cost:
Equity securities...............................................................................................................................
Other...............................................................................................................................................
Subtotal....................................................................................................................................
Securities whose market value reflected in the balance sheet
does not exceed their acquisition cost:
Equity securities...............................................................................................................................
Other...............................................................................................................................................
Subtotal....................................................................................................................................
Total....................................................................................................................................................

2018Market value
reflected in thebalance sheet(Millions of yen)

2018
Market value
reflected in thebalance sheet(Thousands of U.S. dollars)

Difference$180,985—
180,985$456,104—
456,104$275,119—
275,119

31,371—
31,371$212,356

25,756—25,756$481,860(5,615)—(5,615)$269,504

those which have declined within a range of 30% or more but less than 50% if
the decline is deemed to be irrecoverable.
Loss on the devaluation of investment securities are recorded due to otherthan-temporary impairment in the amount of ¥2 million ($23 thousand) for theyear ended March 31, 2018.

(b) The proceeds from sales of and gross realized gain and loss on other securities for the years ended March 31, 2018 and 2017 are summarized as follows:

Proceeds

Equity securities..................................................................................................................................
Other...................................................................................................................................................
Total....................................................................................................................................................

¥166
—
¥166

2018
Gross realized
gain(Millions of yen)

¥60
—
¥60

Gross realized
loss

¥  6
—
¥  6

Proceeds

Equity securities..................................................................................................................................
Other...................................................................................................................................................
Total....................................................................................................................................................

¥  2
—
¥  2

¥—
—
¥—
2018
Gross realized
gain(Thousands of U.S. dollars)

Proceeds

Equity securities..................................................................................................................................
Other...................................................................................................................................................
Total....................................................................................................................................................

$1,561—$1,561

$567
—
$567

Gross realized
loss

¥  1
—
¥  1
Gross realized
loss

$55
—
$55

8. Short-Term Borrowings and Long-Term Debt
Short-term borrowings and the current portion of long-term debt at March 31, 2018 and 2017 consisted of the following:

2018

2017

Thousands of
U.S. dollars
2018¥20,000
6¥20,006¥20,000
57¥20,057$188,235
54$188,289

Millions of yen

Short-term borrowings........................................................................................................................
Current portion of long-term debt........................................................................................................

The weighted average annual interest rates applicable to short-term borrowings outstanding at March 31, 2018 and 2017 were 0.15% and 0.12%, respectively.
Long-term debt at March 31, 2018 and 2017 consisted of the following:

2018

2017

Thousands of
U.S. dollars
2018¥10,006
25,00015,000¥50,006(6)¥50,000¥10,063
25,00015,000¥50,063(57)¥50,006$ 94,172
235,294
141,176$470,642(54)$470,588

Millions of yen

Debt without collateral:
Loans from banks due April 2017 through October 2020 at average interest rates
of 0.20% and 0.20% per annum at March 31, 2018 and 2017, respectively....................................
Bonds in yen due April 2019 at rate of 0.294%................................................................................
Bonds in yen due August 2021 at rate of 0.120%............................................................................
Subtotal...........................................................................................................................................
Less current portion.............................................................................................................................

The aggregate annual maturities of long-term debt subsequent to March 31, 2018 are summarized as follows:Year ending March 31,
2019.........................................................................................................................................................................
2020.........................................................................................................................................................................
2021.........................................................................................................................................................................
2022.........................................................................................................................................................................
2023 and thereafter...................................................................................................................................................

Millions of yen

Thousands of
U.S. dollars¥     625,00010,00015,000—¥50,006$     54
235,294
94,118141,176—$470,642

Millions of yen

Thousands of
U.S. dollars

9. Assets Pledged as Collateral
Assets pledged as collateral for accounts payable of ¥61 million ($571 thousand) at March 31, 2018 were as follows:

Investment securities....................................................................................................................................................

¥13

$123

10. Lease Obligations
The aggregate annual maturities of lease obligations subsequent to March 31, 2018 are summarized as follows:Year ending March 31,
2019.........................................................................................................................................................................
2020.........................................................................................................................................................................
2021.........................................................................................................................................................................
2022.........................................................................................................................................................................
2023 and thereafter...................................................................................................................................................

Millions of yen

¥109
42
18
12
7
¥188

Thousands of
U.S. dollars$1,023
400
171
110
62
$1,766

Notes to Consolidated Financial Statements

2017
Gross realized
gain(Millions of yen)41

Notes to Consolidated Financial Statements (continued)

11. Retirement Benefits
The Company and certain consolidated subsidiaries have defined contributionplans for retirement benefits. Other consolidated subsidiaries have defined
benefit plans, including lump-sum payment plans, covering substantially all

employees who are entitled to lump-sum or annuity payments the amounts ofwhich are determined by reference to their basic rates of pay, length of service
and the conditions under which termination occurs.

Certain consolidated subsidiaries calculate the liability for retirement benefits based on the simplified method.
The changes in the retirement benefit obligation for the years ended March 31, 2018 and 2017 are summarized as follows (excluding retirement benefit obligations
based on the simplified method):
Millions of yen

Notes to Consolidated Financial Statements

2018

42

Retirement benefit obligation at the beginning of the year....................................................................
Service cost.........................................................................................................................................
Interest cost........................................................................................................................................
Foreign currency translation difference.................................................................................................
Actuarial differences............................................................................................................................
Retirement benefit obligation at the end of the year.............................................................................

2017

¥460
26
9
42
(40)
¥497

Thousands of
U.S. dollars
2018$4,333
240
87
394
(373)
$4,681

¥457
22
9
(26)
(2)
¥460

The changes in the retirement benefit obligation under the simplified method for the years ended March 31, 2018 and 2017 are summarized as follows:
Millions of yen
2018

Retirement benefit obligation at the beginning of the year....................................................................
Service cost.........................................................................................................................................
Benefit paid.........................................................................................................................................
Change in scope of consolidation........................................................................................................
Retirement benefit obligation at the end of the year.............................................................................

2017

¥ 9
6
(5)
18
¥28

Thousands of
U.S. dollars
2018

$ 81
52
(40)
168
$261

¥  8
1
(0)
—
¥  9

The balance of retirement benefit obligation and plan assets at fair value at March 31, 2018 and 2017 and liabilities recognized in the consolidated balance sheet atMarch 31, 2018 and 2017 are summarized as follows:
Millions of yen
2018

Unfunded retirement benefit obligation*...............................................................................................
Net amount of liabilities and assets recognized in consolidated balance sheet.....................................
Liability for retirement benefits..............................................................................................................
Asset for retirement benefits................................................................................................................
Net amount of liabilities and assets recognized in consolidated balance sheet.....................................

2017

¥525
525
525
—
¥525

¥469
469
469
—
¥469

Thousands of
U.S. dollars
2018$4,942
4,942
4,942
—
$4,942* Certain domestic consolidated subsidiaries have calculated their retirement benefit obligation based on the simplified method.

The components of retirement benefit expenses for the years ended March 31, 2018 and 2017 are summarized as follows:
Millions of yen
2018

Service cost.........................................................................................................................................
Interest cost........................................................................................................................................
Amortization of actuarial loss...............................................................................................................
Retirement benefit expenses................................................................................................................

2017

¥32
9
(40)
¥1

Thousands of
U.S. dollars
2018

$292
87
(373)
$6

¥23
9
(2)
¥30

The actuarial assumptions used in accounting for the above plans were as follows:
Discount rates..........................................................................................................................................................
Rate of salary increase..............................................................................................................................................

2018

2017

2.1-2.3%
1.7-4.2%

1.9-2.1%
1.6-4.6%

The required contributions to defined contribution plans of the Company and certain consolidated subsidiaries were ¥1,543 million ($14,524 thousand) and ¥1,534
million for the years ended March 31, 2018 and 2017, respectively.

12. Income Taxes
Income taxes in Japan applicable to the Company and its domestic consolidated subsidiaries consist of corporation tax, inhabitants taxes and enterprisetaxes, which, in the aggregate, resulted in a statutory tax rate of approximately

36.1% for the year ended March 31, 2018. Income taxes of the overseas consolidated subsidiaries are based generally on the tax rate applicable in theirrespective countries of incorporation.

The effective tax rate for the year ended March 31, 2018 differed from the statutory tax rate for the following reasons:
2018

2017

30.1%

—%

3.8
0.4

—
—

(5.6)
(5.4)
10.6
(0.3)
2.5
36.1%

—
—
—
—
—
—%

Due to the recording of loss before income taxes for the year ended March 31, 2017, the reconciliation of the statutory and effective tax rates for the year ended
March 31, 2017 is not disclosed.
The significant components of deferred tax assets and liabilities at March 31, 2018 and 2017 were as follows:
Millions of yen

Deferred tax assets:
Depreciation.....................................................................................................................................
Tax loss carryforwards......................................................................................................................
Accrued bonuses.............................................................................................................................
Intercompany profit on sales of property, plant and equipment.........................................................
Loss on devaluation of investment securities....................................................................................
Loss on devaluation of inventories....................................................................................................
Loss on impairment of fixed assets..................................................................................................
Other...............................................................................................................................................
Gross deferred tax assets....................................................................................................................
Less valuation allowance...........................................................................................................
Total deferred tax assets......................................................................................................................
Deferred tax liabilities:
Reserve for depreciation for tax purposes........................................................................................
Tax effect of retained earnings in overseas consolidated subsidiaries................................................
Net unrealized gain on land revaluation resulting from inclusion of
a subsidiary in consolidation............................................................................................................
Net unrealized holding gain on other securities.................................................................................
Deferred loss on hedges..................................................................................................................
Total deferred tax liabilities...................................................................................................................
Net deferred tax liabilities.....................................................................................................................

Thousands of
U.S. dollars
2018

2018

2017

¥ 4,483
624
1,169
543
636
355
759
2,027
10,596(3,373)
7,223¥ 4,600
606
1,012
572
646
349
843
1,343
9,971
(3,680)6,291$ 42,193
5,870
11,007
5,115
5,982
3,344
7,142
19,074
99,727(31,742)
67,985

(38)
(540)

(40)
(754)

(352)
(5,086)(1,154)(8,123)(33)(9,888)¥ (2,665)(741)(6,148)(275)(7,958)¥(1,667)(10,861)(76,452)(309)(93,060)$(25,075)

Deferred tax assets and liabilities for the years ended March 31, 2018 and 2017 are summarized as follows:

2018

2017

Thousands of
U.S. dollars
2018¥ 2,389
1,124¥ 1,918734$ 22,487
10,581(11)(6,167)(10)(4,309)(104)(58,039)

Millions of yen

Deferred tax assets:
Current.............................................................................................................................................
Noncurrent.......................................................................................................................................
Deferred tax liabilities:
Current.............................................................................................................................................
Noncurrent.......................................................................................................................................

Notes to Consolidated Financial Statements

Statutory tax rates....................................................................................................................................................
Effect of:Tax effect of retained earnings in overseas consolidated subsidiaries.....................................................................
Permanently nondeductible expenses...................................................................................................................
Difference between statutory tax rate in Japan and income tax rates
applied at overseas consolidated subsidiaries......................................................................................................
Tax credits.............................................................................................................................................................
Valuation allowance...............................................................................................................................................
Permanently nontaxable dividends received..........................................................................................................
Other, net..............................................................................................................................................................
Effective tax rates.....................................................................................................................................................

43

Notes to Consolidated Financial Statements (continued)

13. Shareholders’ Equity
in capital and all legal earnings reserve may be transferred to other capital surplus and retained earnings, respectively, which are potentially available fordividends. The legal reserve of the Company included in retained earnings at
March 31, 2018 and 2017 amounted to ¥3,548 million ($33,398 thousand)and ¥3,548 million, respectively.
Japanese Laws further provide that, in general, an amount equal to theentire amount of paid-in capital for the issuance of new shares be transferredto the common stock account. However, an amount equal to or less than 50%of the entire amount may be transferred to the capital surplus account.
The maximum amount that the Company can distribute as dividends is calculated based on the nonconsolidated financial statements of the Company inaccordance with Japanese laws and regulations.

The Japanese Laws provide that an amount equal to 10% of the amount to be
disbursed as distributions of capital surplus (other than the capital reserve) andretained earnings (other than the legal reserve) be transferred to the capitalreserve and the legal reserve, respectively, until the sum of the capital reserveand the legal reserve equals 25% of the capital stock account. Such distributions can be made at any time by resolution of the shareholders or by the
Board of Directors if certain conditions are met.
The additional paid-in capital and legal earnings reserve have been
included in capital surplus and retained earnings, respectively, in the accompanying consolidated balance sheet. Under Japanese Laws, legal earnings
reserve and additional paid-in capital can be used to eliminate or reduce a deficit by a resolution of the shareholders’ meeting. Additional paid-in capital andlegal earnings reserve may not be distributed as dividends. All additional paid-

Notes to Consolidated Financial Statements

Treasury stock
Movements in treasury stock during the years ended March 31, 2018 and 2017 are summarized as follows:44

Number of shares
2018

Treasury stock:
Common stock.............................................................................

March 31, 2017

Increase

Decrease

March 31, 2018

7,780,695

187,4896,826,114

1,142,070

Number of shares
2017

March 31, 2016
Treasury stock:
Common stock.............................................................................

7,778,279

Increase

Decrease

2,620

204

March 31, 2017
7,780,695

The number of shares of treasury stock at March 31, 2018 includes 186 thousand shares entrusted for the share based compensation for directors held by thetrust account of Japan Trustee Services Bank, Ltd.

14. Loss on Impairment of Fixed Assets
Loss on impairment of fixed assets for the year ended March 31, 2018 is summarized as follows:
2018

Location
Ogaki City,
Gifu Prefecture
Ogaki City,
Gifu Prefecture
Ibigawa Town,
Gifu Prefecture
Ogaki City,
Gifu Prefecture
Takashima City,
Shiga Prefecture
Batangas, Republicof Philippines
Courtenay,
FranceCourtenay,
FranceFrauental,
Austria

Millions of yen

Thousands of
U.S. dollars

Idle

¥ 12

$116

Idle

7

66

Idle

6

55

Idle

0

1

Idle

1

5

Idle

23

214

Idle

100

945

Idle

34

319

Idle

61

576

Classification
Machinery andequipment
Buildings andstructures
Construction inprogress
Machinery andequipment

Description

Others
Machinery andequipment
Machinery andequipment
Construction inprogress
Construction inprogress

In general, fixed assets are grouped based on business segment. Although
there are no indications of impairment in the business segments, indications of
impairment of idle assets is individually determined. The carrying values of idle
assets have been reduced to recoverable amounts, and the decrease in theamount of ¥244 million ($2,297 thousand) for the year ended March 31, 2018
was recorded as impairment loss. The recoverable amounts were measured at
estimated net selling value, and the carrying values of idle assets were reduced
to ¥1 ($0.01) for the year ended March 31, 2018.

Loss on impairment of fixed assets for the years ended March 31, 2017 is summarized as follows:
2017

Classification
Buildings andstructures
Construction inprogress
Buildings andstructures
Buildings andstructures
Machinery andequipment
Construction inprogress

Description

Millions of yen

Idle¥ 3,480

Idle

434

Idle

517

Idle

4

Idle

2,563

Idle

611

OthersIdle

58

Machinery andequipment
Buildings andstructures
Machinery andequipment
Construction in
Progress

Production
facilities
Production
facilities
Production
facilities
Production
facilities
Production
facilities

OthersConstruction in
Progress

1,253
7,758
21,555
8,266
530

Idle

In general, fixed assets are grouped based on business segment. The production facilities which can not contribute to the revenue initially expected due toreconsideration of the production system and restructuring of the businessand the carrying values of the idle assets which are not anticipated to be utilized in the future due to reconsideration of production system have been
reduced to their respective recoverable amounts. The decrease in the amountNotes to Consolidated Financial Statements

Location
Ogaki City,
Gifu Prefecture
Ogaki City,
Gifu Prefecture
Godo Town,
Gifu Prefecture
Ibigawa Town,
Gifu Prefecture
Batangas, Republicof Philippines
Batangas, Republicof Philippines
Batangas, Republicof Philippines
Courtenay,
FrancePenang,Malaysia
Penang,Malaysia
Penang,Malaysia
Penang,Malaysia
Pohang,South Korea

102
of ¥47,131 million for the year ended March 31, 2017 was recorded as impairment loss of ¥102 million and business structure reform expense of ¥47,029
million. The carrying values of the buildings have been reduced to values
based on real estate appraisal reports and the carrying amounts of otherassets have been reduced to their respective recoverable amounts.

15. Business Structure Reform Expenses
The details of business structure reform expenses for the year ended March 31, 2017 were as follows:
Item

Millions of yen

Impairment loss on fixed assets for the electric business reform...................................................................................
Impairment loss on fixed assets for the ceramic business reform..................................................................................
Impairment loss on unutilized assets in corporate assets .............................................................................................
Evaluation loss on inventories.......................................................................................................................................
Reconciliation expense.................................................................................................................................................

¥38,108
1,254
7,667
2,548
12,412

16. Land Revaluation
At March 31, 2002, a consolidated subsidiary revalued its land held for business use in accordance with the “Land Revaluation Law” and the amended“Land Revaluation Law”. As a result, the consolidated subsidiary recognized again on land revaluation and recorded a deferred tax liability related to thisgain. The resulting gain, net of the relevant tax effect, has been accounted forunder accumulated other comprehensive income (loss) as surplus arising fromland revaluation. The method followed for this land revaluation was determinedin accordance with the “Land Valuation Tax Law” as stipulated in the“Enforcement Act Concerning Land Revaluation” and other regulations. As of
March 31, 2018, the fair value of this land was ¥278 million ($2,616 thousand)less than its carrying value after revaluation.

17. Selling, General and Administrative Expenses
The components of selling, general and administrative expenses for the years ended March 31, 2018 and 2017 were as follows:

2018

2017

Thousands of
U.S. dollars
2018¥10,417
1,069
90
209
71
15,36921,960¥49,185¥11,208
1,055
—
192
—
14,112
22,110¥48,677$ 98,040
10,061
847
1,966
665
144,648
206,689$462,916

Millions of yen

Salaries...............................................................................................................................................
Provision for employees’ bonuses.......................................................................................................
Provision for directors’ bonuses...........................................................................................................
Provision for employees’ retirement benefit expenses..........................................................................
Provision for share compensation expenses........................................................................................
Research and development costs........................................................................................................
Other...................................................................................................................................................
Total....................................................................................................................................................

45

Notes to Consolidated Financial Statements (continued)

18. Other Income (Expenses)
The components of “Other, net” in “Other income (expenses)” for the years ended March 31, 2018 and 2017 were as follows:

Notes to Consolidated Financial Statements

Millions of yen

46

Loss on sales of investment securities.................................................................................................
Gain (loss) on sales and disposals of property, plant and equipment, net.............................................
Loss on impairment of fixed assets......................................................................................................
Foreign exchange gain (loss), net.........................................................................................................
Share of profit (loss) of entities accounted for using equity method, net...............................................
Share issuance cost............................................................................................................................
Loss on disaster..................................................................................................................................
Depreciation of inactive fixed assets....................................................................................................
Business structure reform expenses....................................................................................................
Reversal of provision for business structure reform expenses..............................................................
Other, net............................................................................................................................................
Total....................................................................................................................................................

2018

2017

¥(6)
(1,609)
(244)
(476)
3
(80)
(180)
—
—
2,877
260
¥545

¥(1)
(294)
(102)
(1,714)———(4,533)(61,989)—(651)¥(69,284)

Thousands of
U.S. dollars
2018$(55)(15,147)(2,297)(4,482)32(753)(1,690)——27,0792,443$5,130

19. Amounts Per Share
Yen

Basic profit (loss) attributable to owners of parent................................................................................
Net assets...........................................................................................................................................
Cash dividends applicable to the year..................................................................................................
Basic profit (loss) attributable to the owners of the parent per share for theyears ended March 31, 2018 and 2017 was computed based on the profit(loss) attributable to the shareholders of common stock and the weighted
average number of shares of common stock outstanding during the year.
Diluted profit attributable to the owners of the parent per share for the years
ended March 3 1, 2 0 1 8 and 2 0 1 7 is not disclosed as the company had nopotentially dilutive common shares for the years ended March 31, 2018 and2017. Amounts per share of net assets were computed based on the numberof shares of common stock outstanding at the year end.

2018

2017

¥   83.21
2,012.60
35.00¥ (472.26)
1,927.53
35.00

U.S. dollars
2018$ 0.7818.94
0.33

Cash dividends per share represent the cash dividends approved by the
Board of Directors as applicable to the respective years together with theinterim cash dividends paid.
The number of shares of treasury stock deducted from the average numbers of shares outstanding for the calculation of per share information for theyear ended March 31, 2018, includes 186 thousands shares of common stock
held by a trust account of Japan Trustee Services Bank, Ltd. (entrusted forshare compensation for directors, etc.)

Financial data for the computation of basic profit (loss) per share attributable to the owners of the parent for the years ended March 31, 2018 and 2017 in the table
above is summarized as follows:
Millions of yen

Profit (loss) attributable to owners of parent.........................................................................................

2018

2017

¥11,583¥(62,849)

Thousands of
U.S. dollars
2018$109,021

Thousands of shares

Weighted average number of shares of common stock outstanding during the year............................

2018

2017

139,212

133,081

Financial data for the computation of net assets per share at March 31, 2018 and 2017 in the above table is summarized as follows:

2018

2017

Thousands of
U.S. dollars
2018¥286,368¥260,940$2,695,227(5,170)¥281,198(4,425)¥256,515(48,657)$2,646,570

Millions of yen

Total net assets...................................................................................................................................
Deductions from total net assets:
Non-controlling interests..................................................................................................................
Total net assets attributable to common stockholders.........................................................................

Thousands of shares

Number of shares of common stock used in the calculation of net assets per share............................

2018

2017

139,718

133,080

20. Other Comprehensive Income
The following table presents reclassification adjustments and tax effects for other comprehensive income (loss) for the years ended March 31, 2018 and 2017:

Net unrealized holding gain (loss) on securities:
Amount arising during the year.........................................................................................................
Reclassification adjustments for loss (gain) realized in the statement of income................................
Before tax effect...............................................................................................................................
Tax effect.........................................................................................................................................
Net unrealized holding gain (loss) on securities....................................................................................
Deferred gain on hedges:
Amount arising during the year.........................................................................................................
Reclassification adjustments for (gain) loss realized in the statement of income................................
Before tax effect...............................................................................................................................
Tax effect.........................................................................................................................................
Deferred gain on hedges.....................................................................................................................
Surplus arising from land revaluation:
Tax effect.........................................................................................................................................
Surplus arising from land revaluation:
Translation adjustments:
Amount arising during the year.........................................................................................................
Reclassification adjustments for gain realized in the statement of income.........................................
Translation adjustments.......................................................................................................................
Total....................................................................................................................................................

2018

2017

¥ 6,312(59)
6,253(1,962)4,291¥4,995
1
4,996(1,464)3,532$59,410(561)
58,849(18,467)
40,382

110
(915)
(805)
242
(563)

915
(283)
632
(190)
442

1,033
(8,612)(7,579)2,283(5,296)

—
—

—
—

—
—

2,572
—
2,572
¥ 6,300(7,259)—(7,259)¥(3,285)

24,209—24,209$59,295

21. Supplementary Cash Flow Information
A reconciliation of cash and cash equivalents in the accompanying consolidated statement of cash flows and cash and deposits in the accompanying consolidatedbalance sheet is presented as follows:

2018

2017

Thousands of
U.S. dollars
2018¥117,760—¥117,760¥104,182(80)¥104,102$1,108,331—$1,108,331

Millions of yen

Cash and deposits..............................................................................................................................
Time deposits with maturities in excess of three months......................................................................
Cash and cash equivalents..................................................................................................................

22. Derivatives
Derivative financial instruments such as forward foreign exchange contracts
are utilized by the Company principally in order to manage the risk arising fromadverse fluctuation in foreign currency exchange rates. The Company has
established a control environment which includes policies and procedures forrisk assessment, including an assessment of the effectiveness of hedging, andfor the approval, reporting and monitoring of transactions involving derivatives.
The Company does not hold or issue derivatives for speculative purposes.
The Company is exposed to certain market risk arising from forward foreign exchange contracts. The Company is also exposed to the risk of credit

loss in the event of nonperformance by any of the counterparties to forward
foreign exchange contracts. However, the Company does not anticipate nonperformance by any of these counterparties, all of whom are financial institutions with high credit ratings.
Summarized below are the notional amounts and estimated fair value ofthe derivatives positions outstanding at March 31, 2018 and 2017 for which
hedge accounting had not been applied. There were no derivatives withmaturities over one year at March 31, 2018 and 2017. The estimated fair value
was based on the prices obtained from financial institutions.
Notional
amountForward foreign exchange contracts:
Sell:
U.S. dollars...................................................................................................................................
Euros............................................................................................................................................
Total....................................................................................................................................................

¥14,077
4,997¥19,074
Notional
amountForward foreign exchange contracts:
Sell:
U.S. dollars...................................................................................................................................
Euros............................................................................................................................................
Total....................................................................................................................................................

¥13,800
4,287¥18,0872018
Estimated
fair value(Millions of yen)

¥141
31
¥172
2017
Estimated
fair value(Millions of yen)

¥546
96
¥642

Unrealized
gain

¥141
31
¥172
Unrealized
gain

¥546
96
¥642

Notes to Consolidated Financial Statements

Thousands of
U.S. dollars
2018

Millions of yen

47

Notes to Consolidated Financial Statements (continued)

Forward foreign exchange contracts:
Sell:
U.S. dollars...................................................................................................................................
Euros............................................................................................................................................
Total.................................................................................

Notional
amount2018
Estimated
fair value(Thousands of U.S. dollars)$132,488
47,031$179,519$1,323292$1,615

Unrealized
gain$1,323292$1,615

Notes to Consolidated Financial Statements

Summarized below are the notional amounts and estimated fair value of the derivative positions outstanding at March 31, 2018 for which hedge accounting had
been applied.
There were no derivatives with maturities over one year at March 31, 2018 and 2017. The estimated fair value was based on the prices obtained from financial
institutions.

48

Method ofhedge
accounting

2018

Transaction

Hedged items

Forward foreignexchange contracts:
Sell:
U.S. dollars
Euros
Total

Forecasted transactions
denominated in a foreign currency

Estimated
fair value

Notional amount(Millions of yen)

Deferral hedge
accounting

Method ofhedge
accounting¥  596
3,347¥3,943

¥ 37
73
¥110
2017

Transaction

Hedged items

Forward foreignexchange contracts:
Sell:
U.S. dollars
Euros
Total

Forecasted transactions
denominated in a foreign currency

Estimated
fair value

Notional amount(Millions of yen)

Deferral hedge
accounting

Method ofhedge
accounting

Deferral hedge
accounting¥19,882
7,731¥27,613

¥747
168
¥915
2018

Estimated
Notional amountfair value(Thousands of U.S. dollars)

Transaction

Hedged items

Forward foreignexchange contracts:
Sell:
U.S. dollars
Euros
Total

Forecasted transactions
denominated in a foreign currency$ 5,604
31,504$37,108$  347687$1,034

23. Segment Information
Overview of reportable segments
The reportable segments of the Group are components for which discrete
financial information is available and whose operating results are regularly
reviewed by the Company’s Board of Directors to make decisions about
resource allocation and to assess the business performances of those segments.
The Group classifies the Company and its subsidiaries identified by therespective products and services they provide. Each company plans comprehensive domestic and overseas strategies for its products and conducts
related business activities.
Based on the Group’s primary business activities, the reportable segments
include “Electronics” and “Ceramics.” The main products or services of thosesegments are as follows:
Electronics segment:		This reportable segment includes the business of manufacturing andsales of printed wiring boards and package substrates.

Ceramics segment:		This reportable segment includes the business of manufacturing andsales of environment-related ceramics products, graphite specialty products, fine ceramics products and ceramics fiber.
Methods of used to calculate sales, income (loss), assets and other items
for the reportable segments
The methods used to account for reportable segments is the same those as
described in Note 2, “Summary of Significant Accounting Policies.” Segment
income is calculated on the basis of operating income in the consolidated
statement of income. Intersegment sales are recorded basically at same prices
used in transactions with third parties.

A summary of net sales, income (loss), assets and other items by reportable segment for the years ended March 31, 2018 and 2017 is as follows:

Reportable Segments

Sales to third parties.................................................
Intersegment sales and transfers..............................
Net sales..................................................................
Segment income......................................................
Segment assets........................................................
Depreciation and amortization..................................
Increase in property,
plant and equipment and intangible assets..............

Electronics

Ceramics

Total

Other

Total

Adjustment

Consolidated
Financial
Statements¥115,573
5¥115,578¥    853
89,294
12,517¥113,425
263¥113,688¥ 10,526
102,263
9,168¥228,998
268¥229,266¥ 11,379
191,557
21,685¥71,406
7,421¥78,827¥ 5,418
72,3262,169¥300,404
7,689¥308,093¥ 16,797
263,883
23,854¥—(7,689)¥(7,689)¥(95)
174,213713¥300,404—¥300,404¥ 16,702
438,096
24,567

13,254

6,933

20,187

1,402

21,5891,545

23,134

Millions of yen
2017
Reportable Segments

Sales to third parties.................................................
Intersegment sales and transfers..............................
Net sales..................................................................
Segment income (loss).............................................
Segment assets........................................................
Depreciation and amortization..................................
Increase in property,
plant and equipment and intangible assets..............

Electronics

Ceramics

Total

Other

Total

Adjustment

Consolidated
Financial
Statements¥99,225
5¥99,230¥(3,649)
85,295
19,643¥101,323
123¥101,446¥  4,322
94,5799,920¥200,548
128¥200,676¥    673
179,874
29,563¥65,912
5,069¥70,981¥ 6,538
65,472
2,947¥266,460
5,197¥271,657¥  7,211
245,346
32,510¥—(5,197)¥(5,197)¥(69)
160,437
638¥266,460—¥266,460¥  7,142
405,783
33,14812,867

6,467

19,3342,024

21,358669

22,027

Notes to Consolidated Financial Statements

Millions of yen
2018

49

Thousands of U.S. dollars
2018
Reportable Segments
Electronics

Ceramics

Total

Other

Total

Adjustment

Consolidated
Financial
Statements

Sales to third parties................................................. $1,087,748
Intersegment sales and transfers..............................
51
Net sales.................................................................. $1,087,799
Segment income...................................................... $    8,031
Segment assets........................................................
840,419
117,806
Depreciation and amortization..................................
Increase in property,
plant and equipment and intangible assets..............
124,744$1,067,530
2,475$1,070,005$   99,067
962,473
86,285$2,155,278
2,526$2,157,804$  107,098
1,802,892
204,091$672,053
69,841$741,894$ 50,991
680,714
20,416$2,827,331
72,367$2,899,698$  158,089
2,483,606
224,507$—(72,367)$(72,367)$(892)
1,639,653
6,708$2,827,331—$2,827,331$  157,197
4,123,259
231,215

65,253

189,997

13,189203,186

14,545

217,731

Other in the above table includes housing materials, construction, the manufacturing of foamed-resin products, processing of agricultural and marine products,
operations of gas stations, software development and network design that were not included in a reportable segment.
The adjustments of segment income in the amount of ¥(95) million ($(892) thousand) and ¥(69) million for the years ended March 31, 2018 and 2017, respectively, are eliminations of intersegment transactions and expenses that can not allocated to business segments.
Segment income is reconciled to operating income in the consolidated statement of income.
The adjustments of segment assets in the amount of ¥174,213 million ($1,639,653 thousand) and ¥ 160,437 million for the years ended March 31, 2018 and2017, respectively, are corporate assets that can not allocated to business segments.
The adjustments of depreciation in the amount of ¥713 million ($6,708 thousand) and ¥638 million for the years ended March 31, 2018 and 2017, respectively,
are depreciation from corporate assets that can not allocated to business segments.
The adjustments of increase in property, plant and equipment and intangible assets in the amount of ¥1,545 million ($14,545 thousand) and ¥669 million for theyears ended March 31, 2018 and 2017, respectively, are mainly amounts of corporate assets that can not allocated to business segments.

Notes to Consolidated Financial Statements (continued)

Related information
Geographical information
Net sales to third parties by countries or areas grouped according to geographical classification for the years ended March 31, 2018 and 2017 are summarized as follows:

2018

2017

Thousands of
U.S. dollars
2018¥ 88,940
114,776
32,85361,3132,522¥300,404¥ 82,414
95,722
25,74762,453124¥266,460$  837,082
1,080,249
309,205
577,059
23,736$2,827,331

Millions of yen

Notes to Consolidated Financial Statements

Japan..................................................................................................................................................
Asia (excluding Japan).........................................................................................................................
North America.....................................................................................................................................
Europe................................................................................................................................................
Other...................................................................................................................................................
Consolidated.......................................................................................................................................

50

Net sales are categorized by country or geographic area based on the location of the customer.
Sales in Malaysia and China belonging to the Asia area were ¥38,295 million ($360,426 thousand) and ¥34,899 million ($328,462 thousand) for the year ended
March 31, 2018. Sales in the United States in the North America area were ¥31,023 million ($291,984 thousand) for the year ended March 31, 2018.
Sales in Malaysia belonging to the Asia area were ¥30,259 million for the year ended March 31, 2017.
Property, plant and equipment by countries or geographical areas at March 31, 2018 and 2017 are summarized as follows:

2018

2017

Thousands of
U.S. dollars
2018¥ 62,670
47,917
7,645
33,077¥151,309¥ 64,340
47,083
9,936
29,794¥151,153$  589,834
450,985
71,956
311,309$1,424,084

Millions of yen

Japan..................................................................................................................................................
Asia (excluding Japan).........................................................................................................................
North America.....................................................................................................................................
Europe................................................................................................................................................
Consolidated.......................................................................................................................................

Property, plant and equipment in Hungary belonging to the Europe area were ¥28,814 million ($271,191 thousand) and ¥25,132 million for the years ended March
31, 2018 and 2017, respectively.
Major customer information
Sales to a major customer for the years ended March 31, 2018 and 2017 were as follows:

Customer Name

2018

2017

Thousands of
U.S. dollars
2018Intel Corp............................................................................................................................................

¥57,010¥52,508$536,562

Millions of yen

Loss on impairment of fixed assets
Loss on impairment of fixed assets by reportable segment for the year ended March 31, 2017 was summarized as follows:
Millions of yen
2017
Reportable Segments
Electronics

Loss on impairment of fixed assets........

¥38,108

Ceramics¥1,254

Total¥39,362

Other

¥—

Total

¥39,362

Due to the immateriality of the amount, loss on impairment of fixed assets for the year ended March 31, 2018 is not disclosed.

Corporate andElimination

Consolidated
Financial
Statements¥7,769¥47,131

Amortization and remaining balance of goodwill
Amortization and the remaining balance of goodwill by reportable segment as of and for the years March 31, 2018 and 2017 are summarized as follows:
Millions of yen
2018
Reportable Segments
Electronics

Goodwill:
Amortization.......................................
Remaining balance.............................

¥——

Ceramics

¥237
—

Total

¥237
—

Other

¥—
—

Total

Corporate andElimination

Consolidated
Financial
Statements

¥—
—

¥237
—

Corporate andElimination

Consolidated
Financial
Statements

¥—
—

¥905
229

Corporate andElimination

Consolidated
Financial
Statements$——$2,230—¥237—

Reportable Segments
Electronics

Goodwill:
Amortization.......................................
Remaining balance.............................

¥——

Ceramics

¥905
229

Total

¥905
229

Other

¥—
—

Total

¥905
229

Thousands of U.S. dollars
2018
Reportable Segments
Electronics

Goodwill:
Amortization.......................................
Remaining balance.............................

$——

Ceramics$2,230—Total$2,230
—

Other

$—
—

Total

$2,230—51

24. Subsequent Event
Cash dividends
The following distribution of retained earnings of the Company, which was not reflected in the accompanying consolidated financial statements for the year ended
March 31, 2018, was approved at a meeting of the Board of Directors held on May 16, 2018:

Year-end cash dividends(¥20 = ($0.19) per share)...........................................................................................................................................

Notes to Consolidated Financial Statements

Millions of yen
2017

Millions of yen

Thousands of
U.S. dollars¥2,798$26,335

The total amount of dividends includes dividends of ¥4 million ($35 thousand) to the shares of treasury stock of the Company (for the share-based compensation
for directors) held by the trust account of Japan Trustee Services Bank, Ltd.

Report of Independent Auditors

Report of Independent Auditors

52

Group Companies

Domestic Base

Global BaseIBIDEN Greentec Co., Ltd.
3-55, Gama-cho, Ogaki, Gifu 503-0021, Japan
Tel: 0584-81-6111

NORTH AMERICAASIAIBIDEN U.S.A. Corp. (Head Office)3900 Freedom Circle #130 Santa Clara,
CA 95054, U.S.A.
Tel: +1-408-991-9801

IBIDEN Electronics (Beijing) Co., Ltd.
15#, Rongchang East Street, BDA, Beijing 100176, P.R.C.
Tel: +86-10-6788-2288

IBIKEN Co., Ltd.
1-60, Gama-cho, Ogaki, Gifu 503-8561, Japan
Tel: 0584-74-3355
IBIDEN Graphite Co., Ltd.
300, Aoyanagi-cho, Ogaki, Gifu 503-8503, Japan
Tel: 0584-89-6425
IBIDEN Industries Co., Ltd.
1-197, Uchiwara, Ogaki, Gifu 503-0936, Japan
Tel: 0584-89-0777
TAK Co., Ltd.
4-35-12, Kono, Ogaki, Gifu 503-0803, Japan
Tel: 0584-75-6501
IBIDEN Jushi Co., Ltd.
360, Shirotori, lkeda-cho, lbi-gun, Gifu 503-2413, Japan
Tel: 0585-45-2405
IBIDEN Bussan Co., Ltd.
339, Arisato, Motosu, Gifu 501-0415, Japan
Tel: 058-324-1151
IBIDEN Engineering Co., Ltd.
1122, Kido-cho, Ogaki, Gifu 503-0973, Japan
Tel: 0584-75-2301
IBIDEN CAREER TECHNO Corp.
300, Aoyanagi-cho, Ogaki, Gifu 503-8503, Japan
Tel: 0584-89-7435

Micro Mech, lnc.
33 Turnpike Road, Ipswich, MA 01938, U.S.A.
Tel: +1-978-356-2966

IBIDEN Electronics (Shanghai) Co., Ltd.
1/FA, Building 73, No. 17 Hancheng Road,
China (Shanghai) Pilot Free Trade Zone, Pudong,Shanghai, P.R.C.
Tel: +86-21-5046-5200

IBIDEN México, S.A. de C.V.
Av. América 100 Parque Industrial, Desarrollo
Logistik II Laguna de San Vicente Villa de Reyes,
San Luis Potos C.P. 79526
Tel: +52-444-834-8430

IBIDEN Asia Holdings Pte., Ltd.
31 Kaki Bukit Road 3 #06-22 Techlink Singapore 417818
Tel: +65-6296-0096

EUROPEIBIDEN Europe B.V. (Head office)Polarisavenue 85f 2132 JH Hoofddorp,
The Netherlands
Tel: +31-23-554-3180
IBIDEN Hungary Kft.
2336 Dunavarsany, Ipari Park, Neumann
Janos u.1, Hungary
Tel: +36-24-501-300
IBIDEN DPF France S.A.S.
24, Route de Joigny 45320 Courtenay, France
Tel: +33-2-3897-2650
IBIDEN Porzellanfabrik Frauenthal GmbH.
Gamserstrase 38, 8523 Frauental, Austria
Tel: +43-3462-2000

IBIDEN Singapore Pte. Ltd.
31 Kaki Bukit Road 3 #06-22 Techlink Singapore 417818
Tel: +65-6296-0096
IBIDEN Taiwan Co., Ltd.
8F-5, No. 366 Bóai 2nd Rd., Zuoying Dist., Kaohsiung City
81358, Taiwan
Tel: +886-7-550-8599

Group Companies

IBIDEN Chemical Co., Ltd.
300, Aoyanagi-cho, Ogaki, Gifu 503-8503, Japan
Tel: 0584-89-7491

IBIDEN Graphite Korea Co., Ltd.
41, 75 South Road Yeongil Industrial Complex,
Heunghae-eup, Buk-gu, Pohang-si, Gyeongsangbuk-do,
37948, Korea
Tel: +82-54-271-3000

53

IBIDEN Korea Co., Ltd.
#1314, Hi Brand Bldg, 13F, 215, Yangiae-Dong,
Seoch-gu, Seoul, 137-924, Korea
Tel: +82-2-2155-3400
IBIDEN Philippines, Inc.
First Philippine Industrial Park Brgy.
Sta. Anastacia, Sto. Tomas, Batangas, Philippines
Tel: +63-43-405-5250
IBIDEN Electronics Malaysia Sdn. Bhd.
No. 1049, Jalan Perindustrian Bukit Minyak 8,
Kawasan Perindustrian Bukit Minyak
14100 Simpang Ampat, Penang, Malaysia
Tel: +60-4-504-9999

Corporate Information (As of March 31, 2018)

Corporate Data

Stock Information

Trade nameIBIDEN CO., LTD.

Fiscal year-end

March 31

Established

November 25, 1912

Annual meeting of shareholders

June

Capital¥64,152 million

Independent Auditors

KPMG AZSA LLC

Number of employees

Consolidated: 15,574

Domestic stock exchange listings

Tokyo, Nagoya

Non-consolidated: 3,515

Date of record for dividend payout

Interim dividend: 		September 30

PlantsYear-end dividend:
March 31

Head office	2-1, Kanda-cho, Ogaki City,
Gifu 503-8604, JapanTokyo branch	Marunouchi Bldg. 29F,
2-4-1, Marunouchi, Chiyoda-ku,
Tokyo 100-6329, Japan
PlantsGifu Prefecture: Ogaki, Ogaki Central, 					
Aoyanagi, Gama,			
Ogaki-Kita, Godo

Authorized shares

230,000,000

Shares issued and outstanding

140,860,557 (including
956,470 shares oftreasury stock)

Number of shareholders

28,799Corporate Information

		 Aichi Prefecture: Kinuura
Number of subsidiaries	Consolidated subsidiaries: 37(17 in Japan, 20 overseas)

54

Disclosure of Financial Information
IBIDEN takes steps to disclose information at appropriate times toshareholders and investors in a fair, accurate, and easy-to-understandmanner. Pursuant to the Timely Disclosure Rule of the Tokyo Stock

Website for shareholders and investors

https://www.ibiden.com/ir/

Exchange, our information disclosure standards require the disclosureof information relevant to our operations, scope of business, andassets that could significantly affect investment judgments, as well as
any changes or suspension of important corporate information that has
already been published. Our policy is to disclose such information
proactively and fairly. We will also disclose corporate information that
could significantly influence investment judgments even if the Timely
Disclosure Rule does not apply, as accurately, promptly and appropriately as possible.

Top page of IR website

Principal Shareholders
Name of Shareholder

Number of Shares (thousands)

Percentage

Japan Trustee Services Bank, Ltd. (Trust Account)

9,006

6.44

NORTHERN TRUST CO. (AVFC) RE SILCHESTER INTERNATIONALINVESTORS INTERNATIONAL VALUE EQUITY TRUST

7,764

5.55

DENSO CORPORATION

7,712

5.51

The Master Trust Bank of Japan, Ltd. (Trust Account)

6,784

4.85

Toyota Industries Corporation
NORTHERN TRUST CO. (AVFC) RE U.S. TAX EXEMPTEDPENSION FUNDSThe Juroku Bank, Ltd.

6,221

4.45

4,373

3.13

4,130

2.95

The Ogaki Kyoritsu Bank, Ltd.

4,120

2.94

IBIDEN Business Partners’ Shareholding Association
IBIDEN Employees’ Shareholding Association

3,676
2,859

2.63
2.04

Note: The Company holds 956,470 shares of treasury stock, which is excluded from the major shareholders listed above.

Breakdown by Type of Shareholder
Japanese financial
institutions
32.0%

100–999 3.6%

–99 0.1%

1,000–9,999 7.7%

1,000,000–
61.1%

Other domestic
corporations
17.7%

10,000–99,999
6.7%

Individuals andothers17.9%

100,000–999,999
20.8%

Corporate Information

Treasury stock 0.7%
Japanese brokerage firms
2.0%

Breakdown by Size of Holding

55

Foreign corporations
29.7%

Stock Price Range and Trading Volume (Common Stock)
Stock Price

Nikkei Stock Average (closing)

(¥)

(¥)

3,000

24,0002,000

16,000

1,000

8,000
Trading
Volume(Millions ofshares)

0

4
5
2016

6

7

8

9

10

11

12

1
2
2017

3

4

5

6

7

8

9

10

11

12

1
2
2018

3

50
40
30
20
10
0

www.ibiden.com