ANNUAL REPORTFor the year ended March 31, 2014

2014

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

Printed in Japan

Nittetsu Mining Co., Ltd.

Financial Highlights

Message from the Management

Consolidated

Operating Conditions and Consolidated Results

Nittetsu Mining Co., Ltd. and Consolidated Subsidiaries
Years ended March 31

During the fiscal year ended March 31, 2014, Japan’s economy showed signs of a modest recovery
Thousands of
US dollars

Millions of yen

2014

2013

2012

2011

2010

2014

For the year
Net Sales

thanks to a boost in private-sector investment as well as an increase in public-sector investment andpersonal consumption owing to stronger demand from the rebuilding effort following the Great East
Japan Earthquake, as well as the government’s economic stimulus measures and the Bank of Japan’s¥ 114,317¥ 102,840¥ 101,505¥ 107,741¥ 93,726$ 1,110,740

3,903

3,873

3,024

1,638

1,681

37,929161,325

144,539

132,470

136,145

144,066

1,567,481

Net Income
At year-end

monetary easing.
In these economic conditions, the Nittetsu Mining Group posted net sales of ¥114,317 million,
up 11.2% year on year, and ordinary income of ¥8,957 million, up 23.8%. This strong growth was

Total Assets

Yen

US dollars

Per share data
Net Income per Shareattributed to a rise in sales of limestone, a mainstay product of the Non-Metallic Minerals Division,and an increase in revenue from the Metallic Minerals Division. Net income was virtually unchanged,
however, rising only 0.8%, to ¥3,903 million, reflecting impairment losses from mining concessions¥ 46.89¥ 46.53¥ 36.32¥ 19.68¥ 20.19$ 0.46in Chile.

Consolidated Business Results by Segment

Non-Consolidated
Nittetsu Mining Co., Ltd.
Years ended March 31

Mineral Resources Group
Thousands of
US dollars

Millions of yen

2014

2013

2012

2011

2010

2014

Net Sales¥ 92,547¥ 87,079¥ 86,928¥ 94,076¥ 77,086$ 899,219

Net Income

5,116

3,816

2,754

1,258

691

49,717For the year

Non-Metallic Minerals Division
Net sales of the Non-Metallic Minerals Division expanded 14.7%, or ¥7,036 million, over theprevious fiscal year to ¥54,901 million, and operating income increased 24.3%, or ¥1,148 million, to¥5,885 million, reflecting an increase in the sales volume of crushed stone and mainstay productlimestone and the conversion of Sumimetal Mining Co., Ltd. into a consolidated subsidiary.

Metallic Minerals Division

At year-end
Total Assets

134,155

124,968

114,493

119,919

126,927

Yen

1,303,490
US dollars

year to ¥46,018 million, due to a rise in the domestic sales price of electrolytic copper. Operating
income, however, fell 16.1%, or ¥657 million, to ¥3,425 million, due to a drop in copper prices.

Per share data
Net Income per Share

Net sales of the Metallic Minerals Division increased 8.9%, or ¥3,762 million, over the previous fiscal¥ 61.46¥ 45.84¥ 33.08¥ 15.11

Note: US dollar amounts are translated from yen, for convenience only, at the rate of ¥102.92=US$1.

¥ 8.30$ 0.60Machinery & Environmental Engineering Group
The Machinery & Environmental Engineering Group saw net sales advance 6.0%, or ¥524 million, to¥9,246 million, while operating income rose 2.9%, or ¥24 million, over the previous fiscal year to¥885 million. These gains were attributed to an increase in sales of water treatment agents, amainstay product of the Environmental Engineering Division, and to generally strong sales from theContents
1

Message from the Management

3

Consolidated Financial Information

Machinery Engineering Division.

Real Estate GroupThe Real Estate Group saw net sales expand 3.2%, or ¥82 million, over the previous fiscal year to4

Balance Sheets¥2,660 million, due to the utilization of new leased properties, while operating income fell 10.4%,

6Statements of Incomeor ¥140 million, to ¥1,213 million, due to higher repair expenses.

7Statements of Comprehensive Income / Statements of Cash Flows8

Notes to Consolidated Financial Statements

11

Corporate Information

Renewable Energy Group
Until recently, Nittetsu Mining undertook the development of environmentally friendly energy as partof the Mineral Resources Group, which includes a geothermal business and hydroelectric power1Message from the Management

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

plants operated by subsidiaries. However, with the launch of its solar power plants, the Company
created a new segment called the Renewable Energy Group, effective from the fiscal year

Net Sales by Business Segment(Year ended March 31, 2014)

under review.
During the fiscal year under review, the Renewable Energy Group recorded sales of ¥1,490
million and operating income of ¥242 million.
Note: The renewable energy business was formerly included in the Mineral Resources Group (Non-Metallic Minerals Division), butfrom the fiscal year under review this business is presented separately from the Mineral Resources Group. As for the Mineral
Resources Group, figures after reclassification reflecting the said changes are used for comparison with the previous
fiscal year.

Capital Expenditures, Financing and Other Related Matters

Real Renewable
Estate Energy

Net sales(millions of yen)

% change fromprevious fiscal year

Non-Metallic Minerals¥ 54,901

14.7

48.0

Metallic Minerals¥ 46,018

8.9

40.3

Machinery & Environmental
Engineering

¥

9,246

6.0

8.1

Real Estate

¥

2,660

3.2

2.3

Renewable Energy

¥

1,490

5.0

1.3

¥ 114,317

11.2

100.0

Business segment

During the fiscal year ended March 31, 2014, capital expenditures of the Nittetsu Mining Group

Total% of total
net sales

Machinery &Environmental
Engineering
Non-Metallic
Minerals

Sales
Distribution
Ratio
Metallic
Minerals

totaled ¥6,850 million, down 23.1% year on year. Major outlays during the fiscal year under review
were as follows.
Major facilities acquired during the fiscal year under review
Toyako Mega Solar Power Plant

Breakdown of Net Sales

Shonai Mega Solar Power Plant(Years ended March 31)

Yunoki Mega Solar Power Plant(Millions of yen)
Business segment

2014

Major products

Net sales% of total net
sales¥ 29,336

25.7¥ 26,092

25.4¥ 3,244

Crushed stone

5,977

5.2

4,935

4.8

1,041

Ancillary products
and others

19,58617.1

16,835

16.3

2,750

Sub-total

54,90148.0

47,864

46.5

7,036

Electrolytic copper

32,13928.1

29,227

28.4

2,911

Copper concentrate

6,624

5.8

4,240

4.1

2,384

Others

7,254

6.4

8,788

8.6

(1,534)Sub-total

46,01840.3

42,256

41.1

3,762

¥ 100,919

88.3¥ 90,120

87.6¥ 10,799

Machinery engineering

4,440

3.9

4,306

4.2

133

Environmental engineering

4,806

4.2

4,415

4.3

390

9,246

8.1

8,722

8.5

Limestone, calcium
carbonate

Non-Metallic
Minerals

continue to require caution. Despite expectations of a modest recovery in Japan’s economy, there arestill causes of concern in the global economy, such as weaker growth in China and other emerging
countries, while Japan’s consumption tax hike and rising raw materials and energy costs may
MineralResources

impede progress.

Increase(decrease)

Net sales

Challenges Facing the GroupThe future outlook indicates that the operating environment facing the Nittetsu Mining Group will

2013

% of total net
sales

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 improves and enhances its

Metallic
Mineralsmanagement structure. It will accomplish this by such means as further boosting sales, raisingproductivity, cutting costs and strengthening its business continuity plan. In addition, the Nittetsu
Mining Group will continue with its commitment to pursue eco-friendly business activities. These

Total

include compliance with ISO14001, greenery initiatives at mined sites, obtaining certification forcompany-owned forests, and building solar power plants on idle lands.
We extend our appreciation to all shareholders and ask for your continued support and cooperation.

Machinery &Environmental
Engineering

Total

June 2014

Rokuro Matsumoto
Representative Director and President

2

¥

¥

¥

524

Real Estate

Real estate rentals and sales

2,660

2.3

2,577

2.5

82

Renewable
EnergyGeothermal steam and water supply,
solar power, hydroelectric power

1,490

1.3

1,419

1.4

70

Total

¥ 114,317

100.0¥ 102,840

100.0¥ 11,4763Consolidated Financial Information
Nittetsu Mining Co., Ltd. and Consolidated Subsidiaries

Balance Sheets
As of March 31, 2014 and 2013

AssetsLiabilities and Net Assets
Millions of yen

2014

Thousands of US dollars

2013

Millions of yen

2014

Current Assets

Thousands of US dollars

2014

2013

2014

¥ 11,106¥ 11,247

9,806

14,07095,281

Current Liabilities

Cash and deposits¥ 14,005¥ 16,672$

136,079

Notes and accounts payable—trade
Short-term loans payable$

107,914

Notes and accounts receivable—trade28,21623,157274,158

Lease obligations

497

468

4,829

Lease receivables and investment assets

4,648

4,993

45,167

Income taxes payable

702

1,739

6,821

30

30

296

Deferred tax liabilities

1

1

9

Provision for bonuses

799

753

7,765

Short-term investment securities
Merchandise and finished goods

3,879

4,848

37,694

Provision for directors’ bonuses

24

29

238

Work in process

13,196

10,282

128,222

Provision for shareholders’ benefits

12

12

120

Raw materials and supplies

1,676

1,327

16,289Asset retirement obligations

Deferred tax assets

250

445

2,437

Other

2,328

2,562

22,620Allowance for doubtful accounts

(165)

(435)

(1,603)68,06763,884

661,363

Other

—

170

—

10,861

10,172

105,530

33,81038,665328,511

20,576

9,195

199,922

953

764

9,260

Noncurrent Liabilities
Long-term loans payable
Lease obligations

8,514

7,243

82,727

Noncurrent Assets

Provision for retirement benefits

Deferred tax liabilities

—

1,296

—

Property, plant and equipment:

Provision for directors’ retirement benefits

128

91

1,250

Provision for environmental safety measures

151

154

1,471

Net defined benefit liability

2,044

—

19,869Buildings and structures

24,932

23,044242,252

Machinery, equipment and vehicles

9,341

5,766

90,768Asset retirement obligations

3,096

2,996

30,085

Other

7,294

7,386

70,87742,75929,127415,465

76,57067,793743,976

4,176

4,176

40,576

Land used for mining operations

4,399

2,937

42,750Land for general use

16,503

14,520160,348

Construction in progress

1,282

808

12,459

421

383

4,090

56,88047,460552,669

Other

Intangible assets

1,955

2,384

18,998

Total Liabilities
Net Assets
Capital stock
Capital surplus

6,149

6,149

59,754Retained earnings

60,49057,169587,746

Treasury stock
Shareholders’ equity

(134)

(129)

(1,309)70,682

67,366

686,768

11,368

9,311

110,460

Accumulated Other Comprehensive Income

Investments and Other Assets
Investment securities

29,597

26,213

287,580

Deferred tax assets

869

473

8,448

4,362

4,304

42,385

Other
Allowance for doubtful accounts

Total Assets

(407)

(182)

(3,964)34,42130,809334,449¥ 161,325¥ 144,539$ 1,567,481

Valuation difference on available-for-sale securities
Deferred gains or losses on hedges

198

(134)

1,927

Foreign currency translation adjustment

79(1,270)774

Remeasurements of defined benefit plans
Total Accumulated Other Comprehensive Income
Minority interests

(736)

—

(7,160)10,9097,906

106,002

3,163

1,472

30,734

Total Net Assets

84,75576,746

823,504

Total Liabilities and Net Assets¥ 161,325¥ 144,539$ 1,567,481

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

45

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

Statements of Income

Statements of Comprehensive Income

Years ended March 31, 2014 and 2013

Years ended March 31, 2014 and 2013
Millions of yen

Thousands of US dollars

2014

2013

2014

¥ 114,317¥ 102,840$ 1,110,740

Cost of Sales

85,13676,428827,213

Selling, General and Administrative Expenses

19,662

17,762

191,049

Operating Income

9,517

8,649

92,477

Interest income

55

87

542

Dividends income

601

392

5,849

Net Sales

Non-Operating Income:

351

204

3,411

1,008

684

9,802

Interest expenses

431

457

4,190

Equity in losses of affiliates

161

551

1,568

Other

Non-Operating Expenses:

Other

Ordinary Income

976

1,092

9,484

1,568

2,100

15,243

8,957

7,233

87,036

Millions of yen

Thousands of US dollars

2014

2013

2014

¥ 4,911¥ 4,765$ 47,724

2,057

1,972

19,986

332

(48)

3,231

1,708

813

16,5960

1

1

Total other comprehensive income

4,097

2,737

39,816Comprehensive income

9,009

7,503

87,540Comprehensive income attributable to owners of
the parent

7,643

6,445

74,269¥ 1,365¥ 1,057$ 13,270

Income before minority interests
Other comprehensive income:
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Share of other comprehensive income of associates
accounted for using the equity method

Comprehensive income attributable to minority
interests

Extraordinary Income:Gain on sales of noncurrent assets

228

164

2,222

Compensation income

48

—

469

Other

1

1

13

278

166

2,705

139

240

1,357
13,273

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

Extraordinary Losses:
Loss on sales and retirement of noncurrent assets

1,366

7

Settlement for occupational diseases

Impairment loss

6

35

60

Litigation expenses

11

56

115

Other

147

25

1,436

1,672

365

16,247

7,564

7,034

73,494

Income before Income Taxes
Income Taxes:
Income taxes—current

2,482

2,939

24,116

Income taxes—deferred

170

(670)

1,654

2,652

2,269

25,770

Income before Minority Interests

4,911

4,765

47,724

Minority Interests in Income

1,008

891

9,794

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

6

¥

3,903

¥

3,873

$

37,929Statements of Cash Flows
Years ended March 31, 2014 and 2013
Millions of yen

Thousands of US dollars

2014

2013

2014

Net cash provided by operating activities¥ 5,742¥ 11,838$ 55,795

Net cash used in investing activities(10,186)(8,674)(98,972)

Net cash provided by (used in) financing activities

0(2,341)

2

Effect of exchange rate change on cash and cash equivalents

515

408

5,012

Net increase (decrease) in cash and cash equivalents(3,927)

1,229(38,162)

Cash and cash equivalents at the beginning of the year

15,467

14,237150,285

Cash and cash equivalents at the end of the year

¥ 11,539¥ 15,467$ 112,123

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

7

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements

Nittetsu Mining Co., Ltd. and Consolidated Subsidiaries

1. Scope of Consolidation(1) Number of consolidated subsidiaries: 21 companies
Main consolidated subsidiaries:
Funao Mining Co., Ltd., Sumimetal 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 fiscal year under review, Nittetsu
Kagoshima Geothermal Co., Ltd. was dissolved after it
was acquired and absorbed by Nittetsu Mining, and as aresult it has been excluded from the scope of
consolidation. In addition, Sumimetal Mining Co., Ltd. is
now included as a consolidated subsidiary after Nittetsu
Mining acquired 70% of its outstanding shares.

(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, net income and retained
earnings, etc., (commensurate with equity holdings) do
not have a material 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 an affiliated company(POLYTETSU-KOREA Co., LTD.) not accounted for by
the equity method are excluded from the scope of
application of the equity method because they have nooverall significance and their net income and retained
earnings (commensurate with equity holdings) would
have an immaterial effect on consolidated financial
statements even if they were excluded from eligibility
for the equity method.

3. Business Years of Consolidated Subsidiaries
Companies with account settlement dates different
from the consolidated account settlement date are as
follows:
Company Name
Settlement Date
Sociedad Contractual Minera
December 31
Atacama Kozan
Minera Nittetsu Chile Limitada
December 31
The financial statements of the consolidated subsidiaries
as of 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
Other marketable 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, andcost of securities sold calculated by the movingaverage method).

8

Securities without fair market value:
Valued at cost by the moving-average method.
(b) Derivatives
Market value method(c) Inventories
The standard for evaluation is the cost method(book value devaluation method based on the
decline in profitability). The method of evaluation is
the periodic-average method or the first-in, firstout method, depending on the product line or typeof business.

(2) Method for depreciation and amortization ofsignificant depreciable assets(a) Property, plant and equipment (except forlease assets)
The Company and its domestic consolidated
subsidiaries primarily use the declining balancemethod. However, buildings acquired on or after April
1, 1998, excluding leasehold improvements andauxiliary facilities attached to buildings, aredepreciated using the straight-line method. Certain
structures (major mineshafts) and all mining land are
depreciated using the production output method.
Overseas consolidated subsidiaries primarily use thestraight-line method.
Estimated useful lives are as follows:
Buildings and structures: 5–60 years
Machinery, equipment and vehicles: 3–20 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 the usable period in
the company (5 years).
(c) Lease assets
Leased property under finance leases that do nottransfer ownership of the lease property are computed
over the lease terms assuming no residual value.

(3) Accounting for significant reserves and allowances(a) Allowance for doubtful accounts
At the end of each fiscal year, the Company sets aside
an allowance for doubtful accounts in the estimatedunrecoverable amount, based on the Company’s loss
experience for general credit and on the Company’s
individual estimates of future recoverability for specificaccounts, including doubtful accounts.
(b) 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.
(c) 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.
(d) Provision for directors’ retirement benefits
At the end of each fiscal year, certain domestic
consolidated subsidiaries set aside a reserve for provision
for retirement benefits for directors according tointernal company regulations.

(e) 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 theestimated disposal expenses for stored PCB.
(f) Provision for shareholders’ benefits
The Company sets aside a reasonable reserve tocover payments for expenses of the shareholders’benefit program, in an amount equivalent to theestimated expenses.
(g) Reserve for special repairs
The Company has a reserve for special repairs based on
the estimated cost of applicable special repairs for theinspection and repair of ships requiring regularinspections under the Ship Safety Act and for regular
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 the end of the current fiscal year.
(b) Method of expense recording for actuarial differences
Actuarial differences are recorded as expenses fromeach consolidated fiscal year in which they occur by
dividing the amount proportionately using the straightline 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 expense in the consolidated fiscal year inwhich 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 thesection in progress is deemed certain by the end of thecurrent consolidated fiscal year, while the completed
contract method is applied to all other construction
contracts. In addition, estimates of the state ofcompletion at the end of the current consolidated fiscal
year are calculated using the cost-to-cost method forconstruction projects using the percentage-ofcompletion method.

(6) Accounting standard for profits from financial lease transactions
Lease fees are accounted for in net sales and cost priceat the time of receipt.

(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 current exchange rates as of the balance
sheet date, and any translation difference is accounted

for as a profit or loss 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. Foreign currencytranslation adjustments are included in “Valuation andtranslation adjustments” and “Minority interests” in the
Net Assets section of the Balance Sheet.

(8) Main hedge accounting methods(a) Hedge accounting method
However, for interest rate swaps, special treatment isapplied in cases that meet the necessary requirements.
The recognition of gains 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 arecarried out to avoid risk associated with loan interest
rate fluctuations.
(c) Method of assessing the effectiveness of hedges
Over the period from the beginning of a commodity
future transaction to the point at which theeffectiveness is determined, the market fluctuations of
the hedged commodity and the market fluctuations of
the hedged instrument are compared and theeffectiveness is determined. However, interest rate
swap transactions are treated separately and areomitted from this effectiveness evaluation.

(9) Goodwill amortization method and period
The equal installment method is used for theamortization of goodwill over a period of time (lessthan 20 years) in which the investment effect in eachsubsidiary is realized. In addition, when the amount isimmaterial, the complete amount is amortized in the
consolidated fiscal year in which 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 Policy
The Company has applied the Accounting Standard for
Retirement Benefits (ASBJ Statement No. 26; May 17,
2012; hereinafter “Accounting Standard for Retirement
Benefits) and Guidance on Accounting Standard for
Retirement Benefits” (ASBJ Guidance No. 25; May 17,
2012 from the end of the current consolidated fiscal
year (however, excluding the provisions of No. 35
Accounting Standard on Retirement Benefits and No. 67
Guidance on Retirement Benefits), and changed its
accounting method to record the amount of pension
assets deducted from retirement obligations as liabilities
associated with retirement benefits and unrecognizedactuarial differences as liabilities associated withretirement benefits.
The application of Accounting Standard for
Retirement Benefits is in accordance with transitional
handling prescribed in No. 37 Accounting Standard for

9Notes to Consolidated Financial Statements

Retirement Benefits, and at the end of the current
consolidated fiscal year the effect of these changes, hasbeen adjusted in cumulative adjustments related toretirement benefits under accumulated othercomprehensive income.
As a result, ¥2,044 million was recorded as a liability
associated with retirement benefits as at the end of thecurrent consolidated fiscal year. In addition,
accumulated other comprehensive income decreased¥736 million.

6. Note Concerning Changes to
Accounting Estimates

under review decreased ¥218 million compared to theprevious depreciation method, and increased operating
income, ordinary income and net income by the sameamount, respectively.

7. Notes to the Consolidated Balance Sheets(1) Collateral assets(Millions of yen)Tangible assets
Debt collateralized by the above
Short-term loans
Long-term loans
Guarantee deposits received¥ 6,293
69
370
10
449

Total

Plant, property and equipment and intangible assets
owned by consolidated subsidiary Sociedad
Contractual Minera Atacama Kozan have been
depreciated based on the number of minable years.
However, mining activities in the second quarteruncovered additional resources in the area around theexisting mine. Based on a new calculation of minable
ore, the service life of primary equipment has been
extended and changed for all subsequent fiscal years. In
addition, depreciation of the asset retirement obligation
recorded as a mine closure expense based on the mineclosure plan pursuant to Chile’s Mining Law was
extended for a reasonable period into the future.
As a result, depreciation charges for the fiscal year

Corporate Information
OutlineAs of March 31, 2014

Date of Establishment

Number of Employees (Consolidated)

May 20, 1939

Mineral Resources

Common Stock

Non-Metallic Minerals

Authorized

200,000,000 shares

Metallic Minerals

301

Issued andOutstanding

83,523,195 shares

Machinery & Environmental Engineering257(including 274,427 shares of treasury stock)

Real Estate

4

5,704

Renewable Energy

13

Number of Shareholders(2) Accumulated depreciation of tangible assets:¥145,421 million(3) Guaranteed liabilities(Millions of yen)

Total guarantee
Guaranteed liabilities¥ 96

Consolidated
company debt
¥ (15)

Major Shareholders% of total

Nippon Steel & Sumitomo Metal Corporation
Nittetsu Kogyo Shogakukai*
The Master Trust Bank of Japan, Ltd. (trust account)
Mizuho Corporate Bank, Ltd.
Sumitomo Mitsui Banking Corporation
CBNY DFA INTL SMALL CAP VALUE PORTFOLIOJapan Trustee Services Bank, Ltd. (trust account)
Nittetsu Kogyo Shareholding Association
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
Mitsubishi Material Corporation

8. Segment Information

1,115

14.87
7.70
5.83
3.53
3.49
2.34
2.32
1.93
1.68
1.62

Corporate (shared)

91

Total

1,781

Number of Employees (Non-Consolidated)

651

Principal Lenders
Sumitomo Mitsui Banking Corporation
Mizuho Corporate Bank, Ltd.
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
Sumitomo Mitsui Trust Bank, Ltd.

*Non-profit corporation
Millions of yen

2014

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

Non-Metallic
Minerals

Metallic
Minerals

Machinery &Environmental
Engineering

Real Estate

Renewable
Energy¥ 54,901
470
55,371¥ 46,018—
46,018¥ 9,246
1,296
10,543¥ 2,660
34
2,695¥1,490
—
1,490

5,885

3,425

885

1,213

242

Eliminations
andCorporate
¥

Total

—
(1,802)(1,802)¥ 114,317—
114,317(2,134)

9,517

Millions of yen

2013

Sales to external customers
Inter-segment sales
Segment Revenue

Non-Metallic
Minerals

Metallic
Minerals

Machinery &Environmental
Engineering

Real Estate

Renewable
Energy¥ 47,864
1,107
48,971¥ 42,256—
42,256¥ 8,722
1,014
9,736

¥ 2,577
34
2,612¥ 1,419
—
1,419

4,736

4,083

860

1,353

508

Eliminations
andCorporate
¥

Total

—
(2,156)(2,156)¥ 102,840—
102,840(2,893)

8,649

Primary Businesses
As of March 31, 2014
Group

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
MachinerySegment Profits& Environmental
Engineering

Thousands of US dollars

2014

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

Non-Metallic
Minerals

Metallic
Minerals

Machinery &Environmental
Engineering

Real Estate

Renewable
Energy$ 533,434
4,572
538,006$ 447,128
0447,128$ 89,846
12,597
102,443$ 25,847
339
26,186$ 14,484
014,48457,18533,281

8,603

11,7882,358

Eliminations
andCorporate$(20,739)

92,477

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

Total

0 $ 1,110,740(17,508)—(17,508)
1,110,740

Major Products

Real Estate

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

Renewable Energy Geothermal steam and water supply, solar power, hydroelectric power

11

Corporate Information
Organizational Chart

Offices

As of April 1, 2014

As of March 31, 2014
Torigatayama Quarry Complex

General Meetingof Shareholders

Shiriya Quarry Complex

General Administration
Department

Board of Directors

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

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

Ikura Quarry Complex
Corporate Auditors

General Accounting
Department

Board ofCorporate Auditors

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
Mining Department

Management Council

Tochigi Quarry Complex

Resources Development
Department

Kagoshima Geothermal Facility

Osaka Branch Office

R&D Department

Kyushu Branch OfficeInformation System Section

4-20-30, Shimorenjaku, Mitaka-city, Tokyo 181-0013, Japan
Tel: +81-422-79-1160 Fax: +81-422-79-1161

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 Branch Office

Level 24, 1 York Street, Sydney, NSW 2000, Australia
Tel: +61-2-9252-2076 Fax: +61-2-9252-2220

Safety Administration Office
Hokkaido Branch OfficeBusiness Continuity
Management Office

Tohoku Branch Office

Sydney Branch Office

CapitalMillions of yen

Company
Holdings (%)

Nittetsu Mining Consultants Co., Ltd.

100

100.0

Consulting services for geological surveys, geophysicalexploration, test boring and construction

Hokkaido Lime Co., Ltd.

80

100.0

Manufacture and sales of quicklime and hydrated lime

Hikoso Takahashi

Funao Mining Co., Ltd.

60

100.0

Mining and sales of limestone
Manufacture and sales of calcium carbonate

Izumi Tanaka

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

Sumimetal Mining Co., Ltd.

2,000

70.0

Mining and sales of limestone

As of June 27, 2014

Rokuro MatsumotoStanding Corporate Auditors

Director and Vice President

Kimio SatoManaging Director

Yoshifumi Noguchi

Corporate Auditors

Kaoru Yamazaki

Directors

Jun Matsunaga(Supervision of Resources Development Department)

Hiroshi Koyama(Supervision of General Administration Department and General
Accounting Department)

Hideo Kawamura(Supervision of Safety Administration Office, and General Manager,
Mining Department)

Takeyuki Kumamura**Outside director

12

As of March 31, 2014
Subsidiaries

Directors and Corporate Auditors
Representative Director and President

Major Subsidiaries

Yohtaro Matsuo
Corporate Executives

Jinichi Kamitani(General Manager, Torigatayama Quarry Complex)

Notes: 1. Nittetsu Mining Co., Ltd. executed an absorption-type merger effective April 1, 2013 to acquire Nittetsu Kagoshima Geothermal Co., Ltd. As a result of this merger,
Nittetsu Mining Co., Ltd. succeeded to all rights and obligations of Nittetsu Kagoshima Geothermal Co., Ltd. pertaining to the company’s sale and supply of geothermal
steam and hot water.
2. Nittetsu Mining Co., Ltd. acquired 70% of the outstanding shares of Sumimetal Mining Co., Ltd. on October 1, 2013, making Sumimetal Mining Co., Ltd. a consolidated
subsidiary of Nittetsu Mining Co., Ltd. In addition, Sumimetal Mining Co., Ltd. changed its trade name to Hachinohe Mining Co., Ltd. effective April 1, 2014.

Shinya Yamasaki(General Manager, Machinery & Environmental Sales Department)

Primary Businesses

Subsidiary

Sociedad Contractual Minera
Atacama Kozan

CapitalThousands of US dollars

Company
Holdings (%)

3,750

60.0

Primary Businesses

Mining and sales of copper and other minerals

13