Financial Highlights
Consolidated
Nittetsu Mining Co., Ltd. and Consolidated Subsidiaries
Years ended March 31
Thousands of
US dollars

Millions of yen

2018

2017

2016

2015

2014

2018

¥ 118,709¥ 107,325¥ 114,088¥ 125,467¥ 114,317$ 1,117,373

4,985

7,289

4,483

5,973

3,903

46,926

172,716

167,496

162,379

170,055

161,325

1,625,719

For the year
Net Sales
Profit Attributable to Owners of Parent
At year-end
Total Assets

Yen

US dollars

Per share data
Profit per Share¥ 599.12¥ 875.83¥ 538.65¥ 717.53¥ 468.88$ 5.64

Non-Consolidated
Nittetsu Mining Co., Ltd.
Years ended March 31
Thousands of
US dollars

Millions of yen

2018

2017

2016

2015

2014

2018

¥ 94,725¥ 86,149¥ 88,935¥ 102,782¥ 92,547$ 891,618

4,125

6,695

3,773

6,536

5,116

38,830148,606

144,149

137,197

143,802

134,155

1,398,785

For the year
Net Sales
ProfitAt year-end
Total Assets

Yen

US dollars

Per share data
Profit per Share¥ 495.76¥ 804.54¥ 453.38¥785.23¥ 614.60$ 4.67

Notes: 1 US dollar amounts are translated from yen, for convenience only, at the rate of ¥106.24=US$1.
2 The Company initiated a reverse stock split in which 10 shares of common stock were exchanged for one share with the effective date of October
1, 2016, and thus calculated profit per share based on the assumption that the reverse stock split took place at the beginning of FY2014 (the fiscal
year ended March 31, 2014).

Contents
1

Message from the Management

3

Consolidated Financial Information

4

Balance Sheets

6

Statements of Income

7

Statements of Comprehensive Income / Statements of Cash Flows8

Notes to Consolidated Financial Statements

11

Corporate Information

Message from the Management
Operating Conditions and Consolidated Results
During the fiscal year ended March 31, 2018, Japan’s economy saw elements of uncertainty, such aspolicy trends in the United States, concerns of a slowdown in China’s economy, and geopolitical risk on
the Korean peninsula. Nevertheless, Japan’s economy continued a gradual recovery underpinned by
improvements in corporate earnings, driven by rising exports following the recovery in the global
economy, and by strong consumer spending and private-sector capital expenditures.
Amid these economic conditions, the Nittetsu Mining Group posted net sales of ¥118,709 million,
up 10.6% year on year, buoyed by a rise in sales of the Mineral Resources Group.
As for profits, operating profit totaled ¥9,023 million, up 12.4% and ordinary profit was ¥9,062
million, up 21.2% year on year, thanks to rising profits on growing sales of limestone and other minerals
in the Non-Metallic Minerals Division.
However, profit attributable to owners of parent fell to ¥4,985 million, down 31.6% year on year. Thisdrop in the bottom line is attributed to impairment losses on property, plant and equipment and anincrease in tax expenses because income taxes-deferred were not posted following a review of therecoverability of deferred tax assets.

Consolidated Business Results by Segment
Mineral Resources Group
Non-Metallic Minerals Division
Net sales of the Non-Metallic Minerals Division rose 7.4%, or ¥3,840 million, over the previous fiscal year
to ¥55,405 million due to an increase in the sales volume of mainstay product limestone. Operating
profit rose 13.7%, or ¥883 million compared to the previous fiscal year, to ¥7,328 million.

Metallic Minerals Division
Net sales of the Metallic Minerals Division rose 18.5%, or ¥7,623 million over the previous fiscal year, to¥48,850 million, owing to rising copper prices and other factors. However, operating profit dropped
41.1%, or ¥550 million, to ¥789 million, due to the stronger yen and weakening purchasing conditions
for copper ore.

Machinery & Environmental Engineering GroupNet sales of the Machinery & Environmental Engineering Group increased 0.8%, or ¥78 million over theprevious fiscal year, to ¥10,015 million, because of strong sales of water treatment agents, a mainstay
product of the Environmental Engineering Division. However, operating profit dropped 20.5%, or ¥199
million, to ¥772 million, owing to weaker sales at machinery-related subsidiaries.

Real Estate GroupNet sales of the Real Estate Group increased slightly by 0.1%, or ¥2 million over the previous fiscal year,to ¥2,704 million, amid generally strong occupancy rates of leased properties. However, operating profit
declined 6.4%, or ¥98 million, to ¥1,433 million, due to a rise in repair costs.

Renewable Energy GroupNet sales of the Renewable Energy Group declined 8.5%, or ¥161 million over the previous fiscal year, to¥1,734 million, and operating profit fell 22.9%, or ¥92 million, to ¥309 million, due to regular
maintenance work in the Geothermal Division, despite the new operation of solar power plants.
1

Message from the Management

Capital Expenditures, Financing and Other Related Matters
Capital expenditures of the Nittetsu Mining Group totaled ¥5,448 million during the fiscal year underreview, down 15.7% from the previous fiscal year. Major outlays were as follows.
(1) Major facility acquired in the fiscal year under review:
Nittetsu Mining Kamaishi Mine No. 2 Mega Solar Power Plant (Renewable Energy Group)(2) New establishment and expansion of major facility ongoing during the fiscal year under review:
Nittetsu Mining No. 3 Vertical Shaft of the Torigatayama Quarry Complex Construction(Non-Metallic Minerals Division, Mineral Resources Group)

Challenges Facing the GroupThe future outlook indicates that the economy is expected to continue to see a moderate recovery.
However, given mounting areas of concern, including a slowdown in the global economy amid growing
U.S.–China trade friction as well as foreign exchange rate and commodity price trends, the operating
environment facing the Nittetsu Mining Group will continue to require caution.
The Nittetsu Mining Group will respond to this operating environment by striving to enhance its
business performance as it upgrades and expands its operating base and enhances its management
structure. It will accomplish this by such means as further boosting sales, raising productivity, cutting
costs and strengthening its business continuity plan.
Going forward, the Nittetsu Mining Group will work to achieve sustainable growth, enhancemedium- to long-term corporate value, and improve corporate governance. In this way, it will seek tofulfill its responsibilities to supply raw materials to basic industries as well as contribute to theprosperity of shareholders, business partners, local communities, employees, and other stakeholders.
The Nittetsu Mining Group established its first three-year medium-term management plan beginningin FY 2019, announced on May 10, 2018. The period of this plan is considered to be a preparation period
for actively implementing large-scale investments for future growth, aimed at securing new sources ofminerals and establishing a stable supply system. The plan commenced in April 2018.
In addition, the Nittetsu Mining Group will maintain its commitment to pursuing eco-friendly
business activities. These include compliance with ISO 14001, greenery initiatives at mined sites,
acquisition of certification for company-owned forests, and generation of power from natural energy.
We extend our appreciation to all shareholders and ask for your continued support and cooperation.
June 2018

Kimio Sato
Representative Director and President2Consolidated Financial Information
Nittetsu Mining Co., Ltd. and Consolidated Subsidiaries

Net Sales by Business Segment(Year ended March 31, 2018)
Business segment

Net sales(Millions of yen)

Non-Metallic Minerals¥ 55,405

7.4

46.7

Metallic Minerals¥ 48,850

18.5

41.1

Machinery & Environmental
Engineering¥ 10,015

0.8

8.4Real Estate

¥

2,704

0.1

2.3

Renewable Energy

¥

1,734

(8.5)

1.5

¥ 118,709

10.6

100.0

Total

% change fromprevious fiscal year

% of total
net sales

Real Renewable
Estate Energy
Machinery &Environmental
Engineering

Non-Metallic
Minerals

Sales
Distribution
Ratio
Metallic
Minerals

Breakdown of Net Sales(Years ended March 31, 2018 and 2017)(Millions of yen)

2018
Business segment

Major products

Increase(decrease)

Net sales% of total net
sales

Net sales% of total net
sales¥ 27,287

23.0¥ 26,309

24.5

Crushed stone

6,592

5.6

5,909

5.5

682

Calcium carbonate

3,848

3.2

3,645

3.4

203

Ancillary products
and others

17,677

14.9

15,699

14.6

1,977

Sub-total

55,40546.7

51,564

48.0

3,840

Electrolytic copper

35,302

29.7

25,699

23.9

9,602

Copper concentrate

9,335

7.9

9,724

9.1

(388)

Others

4,212

3.5

5,802

5.4

(1,590)Sub-total

48,85041.1

41,226

38.4

7,623

¥ 104,255

87.8¥ 92,791

86.4¥ 11,464

Machinery engineering

4,706

4.0

4,799

4.5

(93)

Environmental engineering

5,308

4.4

5,137

4.8

171

¥ 10,015

8.4

9,937

9.3

Limestone

Non-Metallic
Minerals

MineralResources

Metallic
Minerals

Total

Machinery &Environmental
Engineering

2017

Total

¥

¥

¥

977

78

Real Estate

Real estate rentals and sales

2,704

2.3

2,701

2.5

2

Renewable
EnergyGeothermal steam supply, solar power,hydroelectric power

1,734

1.5

1,895

1.8

(161)

Total

¥ 118,709

100.0¥ 107,325

100.0¥ 11,383

3

Consolidated Financial Information
Nittetsu Mining Co., Ltd. and Consolidated Subsidiaries

Balance Sheets
As of March 31, 2018 and 2017

AssetsMillions of yen

Thousands of US dollars

2018

2017

2018

¥ 30,537¥ 26,297

Notes and accounts receivable—trade

26,73824,499251,681

Lease investment assets

3,638

3,910

34,246Merchandise and finished goods

3,213

3,857

30,251Work in process

8,399

5,535

79,061

Raw materials and supplies

2,152

3,526

20,260

—

444

—

Other

3,089

3,965

29,083

Allowance for doubtful accounts

(474)

(430)

(4,465)77,296

71,607

727,562

Buildings and structures

22,83924,025214,981

Machinery, equipment and vehicles

10,41011,261

97,988Land used for mining operations

3,854

3,809

36,278Land for general use

16,697

16,888157,167

Construction in progress

2,133

766

20,077

469

489

4,415

56,40357,240530,907

3,717

2,510

34,990Investment securities

30,56831,334

287,728

Deferred tax assets

1,385

1,142

13,042

Other

3,743

4,054

35,236

Allowance for doubtful accounts

(387)

(386)

(3,645)

Allowance for investment loss

(10)

(5)

(103)

35,29936,138332,259¥ 172,716¥ 167,496$ 1,625,719

Current Assets
Cash and deposits

Deferred tax assets$

287,442

Non-Current Assets
Property, plant and equipment:

Other

Intangible assets

Investments and Other Assets

Total Assets
The accompanying notes are an integral part of these statements.
Totals may not add up due to rounding.

4

Liabilities and Net Assets
Millions of yen

Thousands of US dollars

2018

2017

2018

Current Liabilities
Notes and accounts payable—trade¥ 11,493

Short-term loans payable

20,793

Lease obligations

¥

8,621
11,655$

108,183
195,722

722

761

6,799

Accounts payable—other

5,198

4,743

48,929

Income taxes payable

1,113

743

10,477

Provision for bonuses

993

956

9,352

Provision for directors’ bonuses

30

23

288

Provision for shareholder benefit program

10

10

98

Provision for environmental safety measures

—

6

—

Provision for product warranties

16

14

154

2,897

4,117

27,271

43,26931,655407,279

1,933

12,15818,195

877

1,128

8,263

4,718

5,166

44,411Other

Non-Current Liabilities
Long-term loans payable
Lease obligations
Deferred tax liabilities
Provision for directors’ retirement benefits

90

70

851

Provision for environmental safety measures

120

126

1,131

Provision for special repairs

53

179

499

Net defined benefit liability

3,890

3,315

36,615

Asset retirement obligations

4,446

4,410

41,857

Other

Total Liabilities

6,958

6,885

65,49823,08833,440217,323

66,35765,096624,602

Net Assets
Capital stock

4,176

4,176

39,308

Capital surplus

5,183

5,248

48,790Retained earnings

80,447

76,127757,219

(157)

(150)

(1,485)89,64885,401

843,834

13,032

13,328

122,669

34

(40)

321

Treasury shares
Shareholders’ equity
Accumulated Other Comprehensive Income:
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustment

640

859

6,024

Remeasurements of defined benefit plans(1,712)(1,505)(16,116)

11,994

12,641

112,898

4,715

4,356

44,384

Total Accumulated Other Comprehensive Income
Non-controlling interests
Total Net Assets

106,358

102,399

1,001,117

Total Liabilities and Net Assets¥ 172,716¥ 167,496$ 1,625,719

5Consolidated Financial Information
Nittetsu Mining Co., Ltd. and Consolidated Subsidiaries

Statements of Income
Years ended March 31, 2018 and 2017
Millions of yen

Thousands of US dollars

2018

2017

2018

¥ 118,709¥ 107,325$ 1,117,373

Cost of Sales

90,81080,858854,771

Selling, General and Administrative Expenses

18,87518,441

177,664

Operating Profit

9,023

8,026

84,937

Net Sales

Non-Operating Income:Interest income

82

52

772

Dividend income

835

549

7,868

Share of profit of entities accounted for using equity method

183

—

—

Other

133

159

1,256

1,235

762

11,6283,105

Non-Operating Expenses:
Interest expenses

329

303

Share of loss of entities accounted for using equity method

—

122

—

Other

866

887

8,158

1,196

1,313

11,264

9,062

7,474

85,301Gain on sales of non-current assets

197

310

1,861

Gain on sales of investment securities

118

—

1,117

Compensation income

—

251

—

Ordinary Profit
Extraordinary Income:

46

37

434

362

599

3,413

Loss on sales and retirement of non-current assets

319

311

3,007

Impairment loss

700

123

6,595

Loss on valuation of investment securities

157

—

1,479

Loss on step acquisitions

167

—

1,580

3

22

35

1,349

456

12,699

8,075

7,616

76,015

2,699

2,124

25,406(181)(2,455)(1,712)

2,517

(330)

23,693Other

Extraordinary Losses:

Other

Profit before Income Taxes
Income Taxes:
Income taxes—current
Income taxes—deferred
Profit Attributable to Non-Controlling Interests
Profit Attributable to Owners of Parent
Profit
The accompanying notes are an integral part of these statements.
Totals may not add up due to rounding.

6

¥

573

658

5,395

4,985

7,289

46,926

5,558

¥

7,947

$

52,322

Statements of Comprehensive Income
Years ended March 31, 2018 and 2017
Millions of yen

Thousands of US dollars

2018

2017

2018

¥ 5,558¥ 7,947$ 52,322

(295)

4,399

(2,777)

71

13

671

Foreign currency translation adjustment

(294)

(52)

(2,771)Remeasurements of defined benefit plans, net of tax

(206)

555

(1,942)

3

(2)

32

Total other comprehensive income

(721)

4,912

(6,787)

Comprehensive income

4,837

12,85945,534Comprehensive income attributable to owners ofparent4,338

12,18440,836

ProfitOther comprehensive income:
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges

Share of other comprehensive income of entities
accounted for using equity method

Comprehensive income attributable to non-controllinginterests

¥

499

¥

674

$ 4,697

The accompanying notes are an integral part of these statements.
Totals may not add up due to rounding.

Statements of Cash Flows
Years ended March 31, 2018 and 2017
Millions of yen

Thousands of US dollars

2018

2017

2018

¥ 12,444¥ 12,079$ 117,136

Net cash used in investing activities(4,893)(6,070)(46,064)

Net cash used in financing activities(3,089)(6,194)(29,078)

Effect of exchange rate change on cash and cash equivalents

(236)

(101)

(2,225)

Net increase (decrease) in cash and cash equivalents

4,224

(287)

39,768Cash and cash equivalents at beginning of period

25,68625,973

241,777¥ 29,911¥ 25,686$ 281,546

Net cash provided by operating activities

Cash and cash equivalents at end of period
The accompanying notes are an integral part of these statements.
Totals may not add up due to rounding.

7

Notes to Consolidated Financial Statements
Nittetsu Mining Co., Ltd. and Consolidated Subsidiaries

1. Scope of Consolidation(1) Number of consolidated subsidiaries: 22 companies
Main consolidated subsidiaries:
Funao Mining Co., Ltd., Hachinohe Mining Co., Ltd.,
Sociedad Contractual Minera Atacama Kozan, Hokkaido
Lime Co., Ltd., Nittetsu Mining Consultants Co., Ltd.,
Nittetsukoukenzai Co., Ltd., Kobukuro Techno Co., Ltd.
During the consolidated fiscal year under review, theCompany acquired additional shares of affiliated company
Compañía Minera Arqueros S.A., making it a subsidiary. As
a result, this company is now included in the scope of
consolidation.

(2) Names of principal unconsolidated subsidiaries
Shin Yaguki Mining Co., Ltd., Yaguki Aggregate Co., Ltd.
Reason for exclusion from scope of consolidation:
The unconsolidated subsidiaries are small in scale, andtheir total assets, net sales, profit and retained earnings,
etc., (commensurate with equity holdings) do not have amaterial effect on the consolidated financial statements.

2. Application of the Equity Method(1) Number of affiliated companies accounted for by
the equity method:
1 company: Hibi Kyodo Smelting Co., Ltd.

(2) Unconsolidated subsidiaries (Shin Yaguki Mining Co., Ltd.
and others) and affiliated companies (POLYTETSU-KOREA
Co., LTD. and others) not accounted for by the equity
method are excluded from the scope of application of theequity method because they have no overall significanceand their profit and retained earnings (commensuratewith equity holdings) would have an immaterial effect on
consolidated financial statements even if they were
excluded from eligibility for the equity method.

(c) Inventories
The standard for evaluation is the cost method (bookvalue devaluation method based on the decline inprofitability). The method of evaluation is the periodicaverage method or the first-in, first-out method,
depending on the product line or type of business.

(2) Method for depreciation and amortization ofsignificant depreciable assets(a) Property, plant and equipment (except for lease assets)
The Company and its domestic consolidated subsidiaries
primarily use the declining balance method. (However,the straight-line method is used for buildings acquired on
or after April 1, 1998 [excluding accompanying facilities
acquired prior to March 31, 2016], buildings for theleasing business [including accompanying facilities] andstructures acquired on or after April 1, 2016 [excluding
major tunnels], while the unit-of-production method isused for certain structures [major tunnels] and land formining.) Overseas consolidated subsidiaries primarily use
the straight-line method.
Estimated useful lives are as follows:
Buildings and structures: 5–60 years
Machinery, equipment and vehicles: 4–25 years(b) Intangible assets (except for lease assets)
For mining rights, the production output method isadopted. For others, the straight-line method isadopted. Software for internal use is amortized using
the straight-line method based on its usable period in
the company (5 years).
(c) Lease assets
Leased property under finance leases that do not transfer
ownership are computed over the lease terms assuming
no residual value.

(3) Accounting for significant reserves and allowances

3. Business Years of Consolidated Subsidiaries
Companies with account settlement dates different fromthe consolidated account settlement date are as follows:
Company Name
Settlement Date
Sociedad Contractual Minera
December 31
Atacama Kozan
Compañía Minera Arqueros S.A.
December 31
Minera Nittetsu Chile Limitada
December 31
The financial statements of consolidated subsidiaries asof the account settlement date are used. Necessary
adjustments are made in consolidation for significant
transactions occurring between then and theconsolidated account settlement date.

4 . Summary of Significant Accounting Policies(1) Valuation standard and method for significant assets(a) Marketable securities
Available-for-sale securities:
Securities with fair market value:
Valued at fair market value based on market prices,
etc., at the balance sheet date (valuation differences
are directly charged or credited to net assets, and costof securities sold calculated by the moving-averagemethod).
Securities without fair market value:
Valued at cost by the moving-average method.
(b) Derivatives
Market value method

8(a) Allowance for doubtful accounts
At the end of each fiscal year, the Company and its
domestic consolidated subsidiaries set aside an allowancefor doubtful accounts in the estimated unrecoverable
amount, based on the Company’s loss experience forgeneral credit and on the Company’s individual estimatesof future recoverability for specific accounts, including
doubtful accounts.
(b) Allowance for investment loss
The Company sets aside a reserve to compensate for losses
related to investments in affiliates in the mining businessbased on the financial standing of the applicable affiliate.
(c) Provision for bonuses
The Company and its domestic consolidated subsidiaries
set aside a reserve for provision for bonuses, calculated
based on estimated payments to cover payment ofbonuses to employees.
(d) Provision for directors’ bonuses
The Company and its domestic consolidated subsidiaries
set aside a reserve to match provision for bonuses,
calculated based on estimated payments to cover
payment of bonuses to directors.
(e) Provision for shareholder benefit program
The Company sets aside a reasonable reserve to cover
payments for expenses of the shareholder benefit program.
(f) Provision for product warranties
The Company sets aside a provision based on the past
implementation rate to prepare for expenses involving

Notes to Consolidated Financial Statements

free repair costs within the warranty period for productsthat have been sold.
(g) Provision for directors’ retirement benefits
The Company and its domestic consolidated subsidiaries
set aside the amount required to be paid out at the end of
the fiscal year to fund the retirement benefits of directors inaccordance with internal company regulations.
(h) Provision for environmental safety measures
In accordance with the Special Measures Law for the
Promotion of Proper Disposal of PCB Waste (Law No. 65,
June 22, 2001), the Company sets aside a reasonable
reserve in an amount equivalent to the estimated disposal
expenses for stored PCB.
( i ) Provision for special repairs
The Company and its domestic consolidated subsidiaries
have a provision for special repairs based on the estimatedcost of applicable inspection and repair of ships requiring
regular inspections under the Ship Safety Act, and forregular repairs to steam production and transport facilities.

(4) Accounting method for retirement benefits(a) Attribution method of retirement benefit estimates
The straight-line basis is used as the method for
attributing estimated retirement benefits for the period
until the end of the current fiscal year.
(b) Method of expense recording for actuarial differences
Actuarial differences are recorded as expenses from eachconsolidated fiscal year in which they occur by dividing
the amount proportionately using the straight-line
method over a certain number of years (13 years) within
the average remaining service period of employees
during the consolidated fiscal year. Certain consolidated
subsidiaries of the Company record a lump-sum expensein the consolidated fiscal year in which they occur.
(c) Adoption of the simplified valuation method at small
enterprise, etc.
Certain consolidated subsidiaries employ the simplified
method in which the retirement benefit amountrequired for voluntary termination at year-end isdeemed a retirement benefit obligation for the
calculation of liability associated with retirement andretirement benefit expenses.

(5) Calculation method for revenue from construction work
completed and costs of completed construction work
The percentage-of-completion method is used forconstruction contracts where the outcome of the phasein progress is deemed certain by the end of the current
consolidated fiscal year, while the completed contract
method is applied to all other construction contracts. In
addition, estimates of the state of completion at the endof the current consolidated fiscal year are calculated using
the cost-to-cost method for construction projects using
the percentage-of-completion method.

(6) Accounting standard for profits from financial
lease transactions
Revenue from financial lease transactions and associatedcosts are recognized at the time of receipt of lease fees.

(7) Standards for translation of significant foreign currency
denominated assets and liabilities into Japanese yen
Current and non-current monetary accounts
denominated in foreign currencies are translated into yen
at the exchange rates as of the balance sheet date, andany translation difference is accounted for as a profit orloss for the year.
All assets and liabilities of overseas consolidated
subsidiaries are translated at the rates of exchange in
effect at the overseas consolidated subsidiary’s balance
sheet date. All revenues and expenses of overseas
consolidated subsidiaries are translated at the average
rates of exchange for the fiscal year. Translation differences
are included in Foreign currency translation adjustment
and Non-controlling interests under the Net Assets of the
Balance Sheets.

(8) Main hedge accounting methods(a) Hedge accounting method
The Company uses mainly deferred hedging. However, forinterest rate swaps, special treatment is applied in casesthat meet the necessary requirements. The recognition ofgains and losses on foreign monetary rights or obligations
at a preset price is used for currency swap transactions
that qualify for hedge accounting requirements.
(b) Hedge instruments, hedge objects and hedge policy
The Company’s interest rate swap transactions andcurrency swap transactions are carried out to avoid
risk associated with loan interest rate fluctuations
and exchange rate fluctuations.
In addition, the Company carries out commodity
futures transactions to avoid commodity pricefluctuation risk for non-ferrous metals inventories
and for non-ferrous metals future contracts that theCompany concludes with customers.
(c) Method of assessing the effectiveness of hedges
Over the period from the beginning of a commodity
future transaction to the point at which the effectivenessis determined, market fluctuations of the hedgedcommodity and the hedged instrument are compared todetermine effectiveness. However, interest rate swap
transactions are treated separately and are omitted fromthis effectiveness evaluation.

(9) Goodwill amortization method and period
The equal installment method is used for the amortizationof goodwill over a period of time (less than 20 years) inwhich the investment effect in each subsidiary is realized.
In addition, when the amount is immaterial, the completeamount is amortized in the consolidated fiscal year inwhich it occurs.

(10) Accounting method for consumption tax, etc.
The tax exclusion method is used when accounting for
consumption tax and regional consumption tax.

5. Notes Concerning Changes to
Accounting Estimates
Property, plant and equipment and intangible assets
owned by S.C.M. Atacama Kozan, a consolidated
subsidiary of the Company, have been depreciated oramortized based on the mine’s operational life. The
reserves of the concession blocks near the area that havealready been mined were calculated and factored intominable reserves; therefore, the service life of major
facilities has been extended. This change takes effect in
the fiscal year under review and continues in the future. In
addition, the estimate period for expenditures of asset
retirement obligations booked as mine closure costs
based on the mine closure plan stipulated in the mining
law of Chile and the remaining service years related to9Notes to Consolidated Financial Statements

retirement benefit obligations were both extended. Thischange takes effect in the fiscal year under review andcontinues in the future.
As a result, compared to the conventional method,
depreciation and amortization costs for the fiscal year
under review declined ¥75,874,882, while operating
profit, ordinary profit and profit before income taxes eachincreased by the same amount.

6 . Notes Concerning Changes in
Presentation Method
The Ordinance for Partial Revisions of the Rules ofCorporate Accounting and Enforcement Regulations of
the Companies Act (Ordinance of the Ministry of JusticeNo. 5 issued on March 26, 2018) can be applied toconsolidated financial statements for the end of the fiscal
year under review. These revised regulations will beapplied from the fiscal year under review, resulting inchange in presentation method in which Deferred tax
assets are now included in Investments and Other Assets
and Deferred tax liabilities in Non-Current Liabilities. As aresult, compared to the previous presentation method,
Deferred tax assets under Current Assets decreased¥419,342,407, Deferred tax assets under Investments andOther Assets increased ¥206,139,710, Deferred tax
liabilities under Current Liabilities decreased ¥170,209
and Deferred tax liabilities under Non-Current Liabilities
decreased ¥213,032,488.
Gain on sales of investment securities presented in
Other under Extraordinary Income in the previous fiscal

year will be presented independently in the fiscal year
under review because the materiality of the amountincreased. Gain on sales of investment securities in theprevious fiscal year was ¥4,556,344.

7. Notes to the Consolidated Balance Sheets(1) Collateral assets(Millions of yen)Foundation mortgage
Property, plant and equipment
Debt collateralized by the above
Short-term loans payable
Long-term loans payable¥ 5,089
25
10
35

Total
(Others)
Property, plant and equipment
Debt collateralized by the above
Short-term loans payable
Long-term loans payable
Guarantee deposits received

¥ 554
32
235
10
277

Total

(2) Accumulated depreciation of property, plant andequipment¥159,934 million(3) Guaranteed liabilities(Millions of yen)

Total guarantee
Hibi Kyodo Smelting Co., Ltd.
Iwaki Kyodo Tancal Co., Ltd.
HAKODATE NAMA CONCRETE CO., LTD.
Total

¥ 21,000165
1021,175

Consolidated
company debt
¥ 4,25831
04,290

8 . Segment Information
Millions of yen

2018

Sales to external customers
Inter-segment sales
Segment Revenue
Segment Profits

Non-Metallic
Minerals

Metallic
Minerals

Machinery &Environmental
Engineering

Real Estate

Renewable
EnergyEliminations
andCorporate

Total¥ 55,405
668
56,073¥ 48,850
1
48,852¥ 10,015
1,170
11,185¥ 2,7048
2,713¥ 1,73401,734¥0(1,848)(1,848)¥ 118,709—
118,709

7,328

789

772

1,433

309

(1,610)9,023

Eliminations
andCorporate

Total

¥

—
(3,219)(3,219)¥ 107,325—
107,325
8,026

Millions of yen

2017

Sales to external customers
Inter-segment sales
Segment Revenue
Segment Profits

Non-Metallic
Minerals

Metallic
Minerals

Machinery &Environmental
Engineering

Real Estate

Renewable
Energy¥ 51,564
1,911
53,476¥ 41,226—
41,226¥ 9,937
1,298
11,235¥ 2,7018
2,710¥ 1,895
—
1,895

6,444

1,339

971

1,532

402

(2,663)Eliminations
andCorporate

Thousands of US dollars

2018

Sales to external customers
Inter-segment sales
Segment Revenue
Segment Profits10

Non-Metallic
Minerals

Metallic
Minerals

Machinery &Environmental
Engineering

Real Estate

Renewable
Energy$ 521,509
6,290
527,799$ 459,811
17
459,829$ 94,269
11,015105,285$ 25,457
79
25,536$ 16,325
0
16,32568,977

7,427

7,272

13,497

2,917

Total

$ 0 $ 1,117,373(17,402)—(17,402)
1,117,373(15,155)

84,937

Corporate Information
OutlineAs of March 31, 2018

Date of Establishment May 20, 1939

Number of Employees (Consolidated)

Common StockMineral Resources

Authorized

20,000,000 shares

Non-Metallic Minerals

Issued andOutstanding

8,352,319 shares

Metallic Minerals

247(including 31,574 shares of treasury stock)

Machinery & Environmental Engineering

267

Number of Shareholders 3,999

Major Shareholders% of total

Nippon Steel & Sumitomo Metal Corporation

14.88
7.71
4.86
3.53
3.49
2.57
2.35
2.34
1.97
1.68

Nittetsu Kogyo Shogakukai*
The Master Trust Bank of Japan, Ltd. (trust account)
Mizuho Bank, Ltd.
Sumitomo Mitsui Banking Corporation
Japan Trustee Services Bank, Ltd. (trust account)
DFA INTL SMALL CAP VALUE PORTFOLIO
GOVERNMENT OF NORWAY
Japan Trustee Services Bank, Ltd. (trust account 9)
The Bank of Tokyo-Mitsubishi UFJ, Ltd.***Non-profit corporation**The Bank of Tokyo-Mitsubishi UFJ, Ltd., one of the Company’s major
shareholders, changed its legal name to MUFG Bank, Ltd. effective April
1, 2018.

1,166

Real Estate

3

Renewable Energy

11

Corporate (shared)

90

Total

1,784

Number of Employees (Non-Consolidated)

671

Principal Lenders
Mizuho Bank, Ltd.
Sumitomo Mitsui Banking Corporation
The Bank of Tokyo-Mitsubishi UFJ, Ltd.**The Bank of Tokyo-Mitsubishi UFJ, Ltd., one of the Company’s main
lenders, changed its legal name to MUFG Bank, Ltd. effective April 1,
2018.

Primary Businesses
As of March 31, 2018
Group

Major Products and Services

Mineral Resources

Non-Metallic Minerals
Limestone, dolomite, crushed stone, calcium carbonate, silica rock, quicklime, hydrated lime,
cement, gypsum, ready-mixed concrete and concrete products, petroleum products, coal,
LPG, chips for pulp, mineral water, specialty papers (fire-retardant, calcium carbonate),
granulates, handling and transportation of mineral products, technological consulting formining and civil engineering
Metallic Minerals
Electrolytic copper, gold and silver, copper concentrate

Machinery &Environmental
Engineering

Machinery Engineering
Dust collectors, crushing and grinding equipment, mining machinery, construction-related
machinery, civil engineering machinery, electric machinery, monorail for passenger
transportation, ball valves, powder/fluid-related machinery, maintenance/repair of baryta
machinery, others
Environmental Engineering
Water treatment agents, deodorizers, others

Real Estate

Rentals of office buildings, condominiums, commercial spaces, factories and warehouses, andreal estate sales

Renewable Energy

Geothermal steam supply, solar power, hydroelectric power

11

Corporate Information
Organizational Chart
As of June 28, 2018
Torigatayama Quarry Complex
General Meetingof Shareholders
Board of Directors
Audit & Supervisory
Board Members

Shiriya Quarry Complex

General Administration
Department

Ikura Quarry Complex
General Accounting
Department

Audit & Supervisory
Board

Higashi-shikagoe Quarry Complex
Limestone & Raw Materials
Sales Department

Nagaoyama Quarry

Non-Ferrous Metal & Ore
Department

Yamaguchi Quarry

Tokiwa Quarry

Machinery & Environmental
Sales Department

Oita Quarry Complex

President

Management Council

Mining Department

Tochigi Quarry Complex

Resources Development
Department

Kagoshima Geothermal Facility

Osaka Branch Office

R&D Department

Kyushu Branch Office
Safety Administration Office
Hokkaido Branch OfficeBusiness Continuity
Management Office

Tohoku Branch OfficeDirectors and Audit & Supervisory Board Members
As of June 28, 2018
Representative Director and President

Kimio SatoManaging Directors

Hiroshi Koyama
Jun Matsunaga

Standing Audit & Supervisory Board Members

Izumi Tanaka
Hiroyasu Adachi
Audit & Supervisory Board Members

Yoshiro Wakayanagi

Directors

Shinya Yamasaki(Supervision of Machinery & Environmental Sales Department, R&D Department)

Yuji Somatsu(Supervision of Mining Department, Safety Administration Office)Reiichi Morikawa(Supervision of Limestone & Raw Materials Sales Department and
Non-Ferrous Metal & Ore Department)

Hideo Kawamura(Representative Director and President, Hachinohe Mining Co., Ltd.)

Takeyuki Kumamura
Katsuhiko Kaneko

12

Eiki Hotta
Corporate Executives

Hideaki Kido
(General Manager of Torigatayama Quarry Complex)

Yukihiko Hagikami(General Manager of Resources Development Department)

Kenji Otakara(General Manager of General Accounting Department)

Hirofumi Fujimoto(General Manager of General Administration Department)

Offices
As of March 31, 2018
Domestic
Yusen Building, 3-2, Marunouchi 2-chome, Chiyoda-ku, Tokyo 100-8377, Japan
URL: http://www.nittetsukou.co.jp/eng/

Head Office
General Administration Section

Tel: +81-3-3284-0516

Fax: +81-3-3215-8480

Public & Investor Relations Group

Tel: +81-3-3284-0518

Fax: +81-3-3215-8480

Information System Section

Tel: +81-3-3216-5231

Fax: +81-3-3216-5232

Limestone Sales Section

Tel: +81-3-3216-5261

Fax: +81-3-3284-0037

Limestone Powder
and Aggregate Sales Section

Tel: +81-3-3216-5260

Fax: +81-3-3284-0037

Fine Materials Sales Section

Tel: +81-3-3216-5254

Fax: +81-3-3215-7293

Non-Ferrous Metal & Ore Section

Tel: +81-3-3216-5265

Fax: +81-3-3284-0037

Environmental Sales Section

Tel: +81-3-3216-5320

Fax: +81-3-3216-5262

Machinery Sales Section

Tel: +81-3-3216-5321

Fax: +81-3-3216-5263

Resources Development Section

Tel: +81-3-3216-5281

Fax: +81-3-5962-5180

R&D Department

8-1, Hirai, Hinode-cho, Nishitama-gun, Tokyo 190-0182, Japan
R&D Administration Section
Tel: +81-42-597-7001 Fax: +81-42-597-7013

Overseas
Sydney Office

Suite 5.04, Level 5, 20 Hunter St, Sydney, NSW 2000, Australia
Tel: +61-2-9238-0477 Fax: +61-2-8065-4174

Taiwan Office

No. 46, Section 2, Zhongshan N Rd, Zhongshan District, Taipei City 104, Taiwan
Tel: +886-2-2521-7316 Fax: +886-2-2521-7756

Major Subsidiaries
As of March 31, 2018
Subsidiaries

Capital(Millions of yen)Company
holdings (%)

Nittetsu Mining Consultants Co., Ltd.

100

100.0

Consulting services for geological surveys, geophysical exploration,
test boring and construction

Hokkaido Lime Co., Ltd.

80

100.0

Manufacture and sales of quicklime and hydrated lime

Funao Mining Co., Ltd.

60

100.0

Mining and sales of limestone
Manufacture and sales of calcium carbonate

Nittetsukoukenzai Co., Ltd.

50

100.0

Buying and selling of limestone, crushed stone and calcium
carbonate

Kobukuro Techno Co., Ltd.

50

100.0

Manufacture and sales of crushing and grinding equipment andelectric machinery

Hachinohe Mining Co., Ltd.

100

70.0

Mining and sales of limestone

Primary businesses

Note: No subsidiaries fall under the category of specified wholly owned subsidiary.

Subsidiary

Sociedad Contractual Minera
Atacama Kozan

Capital(Thousands of US dollars)Company
holdings (%)

16,75060.0

Primary businesses

Mining and sales of copper and other minerals

13Nittetsu Mining Co., Ltd.
Yusen Building, 3-2, Marunouchi 2-chome
Chiyoda-ku, Tokyo 100-8377, Japan
Tel: +81-3-3284-0516
Fax: +81-3-3215-8480
URL: http://www.nittetsukou.co.jp/eng/

Printed in Japan