ANNUAL REPORTFor the year ended March 31, 2020

2020

Nittetsu Mining Co., Ltd.

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

Millions of yen

2020

2019

2018

2017

2016

2020

¥ 117,502¥ 123,372¥ 118,709¥ 107,325¥ 114,088$ 1,079,692

4,518

5,360

4,877

7,289

4,483

41,523

173,954

171,717

172,431

167,260

162,379

1,598,409

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

Yen

US dollars

Per share data
Earnings per Share¥ 543.16¥ 644.24¥ 586.12¥ 875.83¥ 538.65$ 4.99Non-Consolidated
Nittetsu Mining Co., Ltd.
Years ended March 31
Thousands of
US dollars

Millions of yen

For the year
Net Sales
Profit

2020

2019

2018

2017

2016

2020

¥ 93,550¥ 100,515¥ 94,725¥ 86,149¥ 88,935$ 859,598

3,158

5,476

4,125

6,695

3,773

29,017

147,502

146,933

148,606

143,922

137,197

1,355,351

At year-end
Total Assets

Yen

US dollars

Per share data
Earnings per Share¥ 379.57¥ 658.20¥ 495.76¥ 804.54¥ 453.38$ 3.49Notes: 1 US dollar amounts are translated from yen, for convenience only, at the rate of ¥108.83=US$1.
2 Figures for FY2018 (the fiscal year ended March 31, 2018) reflect amendments to the settlements of past fiscal years.
3 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 FY2017 (thefiscal year ended March 31, 2018).
4 Partial Amendments to Accounting Standard for Tax Effect Accounting (ASBJ Statement No. 28; February 16, 2018) were applied in the year ended
March 31, 2018. As financial statement presentation methods have changed, total asset and equity ratio figures for the year ended March 31, 2017,
have been revised to retroactively reflect this change in the presentation method.

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 fiscal 2020, the year ended March 31, 2020, Japan’s economy saw continuing weakness in exports
due to the slowdown in the world economy following protracted US-China trade friction and other factors,
which offset support from domestic demand from private-sector capital expenditures and public
investment. In addition to natural disasters and the consumption tax hike, Japan’s economy faces morechallenging conditions significantly pressured by the headwinds of the growing worldwide COVID-19
pandemic.
Amid these economic conditions, the Nittetsu Mining Group worked to increase and promote sales but
posted net sales of ¥117,502 million, down 4.8% year on year, due to a decline in sales of the Mineral
Resources Group.
As for profits, operating profit rose to ¥7,576 million, up 1.3% year on year, thanks to the improving
bottom line of the Metallic Minerals Division, and ordinary profit increased to ¥8,012 million, up 8.9% year
on year, due to a rise in equity earnings of affiliates. However, profit attributable to owners of parent
declined to ¥4,518 million, down 15.7% year on year. This decrease is attributed to a decline in extraordinary
profits and the booking of extraordinary losses from investigative costs related to improper accounting
practices discovered at a consolidated subsidiary outside of Japan.

Consolidated Business Results by Segment
Mineral Resources Group
Non-Metallic Minerals Division
Net sales of the Non-Metallic Minerals Division dropped 5.0%, or ¥2,860 million, over the previous fiscal
year, to ¥54,423 million, due to a decrease in the sales volume of mainstay product limestone and to
decreased revenue from petroleum products. Operating profit declined 8.8%, or ¥659 million, compared tothe previous fiscal year, to ¥6,824 million.

Metallic Minerals Division
Net sales of the Metallic Minerals Division dropped 7.7%, or ¥3,799 million over the previous fiscal year, to¥45,804 million, owing to a downturn in the selling price of electrolytic copper and other factors.
However, we recorded an operating profit of ¥574 million, compared to an operating loss of ¥477
million in the previous fiscal year, owing to increased profits at the Atacama Copper Mine.

Machinery & Environmental Engineering GroupNet sales of the Machinery & Environmental Engineering Group increased 6.0%, or ¥707 million over theprevious fiscal year, to ¥12,520 million, and operating profit jumped 24.3%, or ¥270 million, to ¥1,382
million. These increases are because of strong sales of water treatment agents, a mainstay product of theEnvironmental Engineering Division, along with steady sales from certain machinery-related subsidiaries.

Real Estate GroupNet sales of the Real Estate Group increased by 5.0%, or ¥137 million over the previous fiscal year, to ¥2,886
million, due to generally strong occupancy rates of leased properties and the sale of leased properties.
Operating profit also rose 9.2%, or ¥135 million, to ¥1,609 million, due to a decrease in repair expense andother factors.

1Message from the Management

Renewable Energy GroupNet sales of the Renewable Energy Group decreased 2.8%, or ¥54 million over the previous fiscal year, to¥1,868 million, due to a decline in sales of both the Geothermal Division and Solar Power Division.
Operating profit rose 14.2%, or ¥51 million, to ¥415 million, due to a decrease of depreciation andamortization, along with other factors.

Capital Expenditures, Financing and Other Related Matters
Capital expenditures of the Nittetsu Mining Group totaled ¥8,825 million during the fiscal year underreview, up 9.7% from the previous fiscal year. Major outlays were as follows.
(1) Major facility acquired in the fiscal year under review:
There are no particular items to report.
(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 Group
With regard to the future outlook, the Company believes the management climate facing the Nittetsu Mining
Group will remain challenging. This is because the economic recovery is expected to require a considerable
amount of time and there is extremely high uncertainty about the global economic outlook due to significant
restrictions placed on economic activities by the COVID-19 pandemic. Moreover, volatile foreign exchange
rates, and unstable commodity prices, including crude oil, have raised fears about a downturn in corporate
earnings.
The Nittetsu Mining Group will respond to this operating environment by striving to enhance its businessperformance as it upgrades and expands its operating base and enhances its management structure. The
Group will accomplish this by such means as further boosting sales, raising productivity, cutting costs andstrengthening its business continuity plan.
Going forward, the Nittetsu Mining Group will work to achieve sustainable growth, enhance medium- tolong-term corporate value, and improve corporate governance. In this way, it will seek to fulfill its
responsibilities to supply raw materials to basic industries as well as contribute to the prosperity ofshareholders, business partners, local communities, employees, and other stakeholders.
The Nittetsu Mining Group established its first three-year medium-term management plan beginning infiscal 2019, announced on May 10, 2018. We positioned this plan as a preparation phase for actively
implementing large-scale investments for future growth, aiming at securing new sources of minerals andestablishing a stable supply system. The plan commenced in April 2018.
In addition, the Nittetsu Mining Group will maintain its commitment to pursuing eco-friendly businessactivities. These include compliance with ISO 14001, greenery initiatives at mined sites, acquisition ofcertification 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 2020

Hiroshi Koyama
Representative Director and President2Consolidated Financial Information
Nittetsu Mining Co., Ltd. and Consolidated Subsidiaries

Net Sales by Business Segment(Year ended March 31, 2020)% change fromprevious fiscal year

% of total
net sales

Business segment

Net sales(Millions of yen)

Non-Metallic Minerals¥ 54,423

(5.0)

46.3

Metallic Minerals¥ 45,804

(7.7)

39.0

Machinery & Environmental
Engineering¥ 12,520

6.0

10.6

Real Estate

¥

2,886

5.0

2.5

Renewable Energy

¥

1,868

(2.8)

1.6

¥ 117,502

(4.8)

100.0

Total

Real Renewable
Estate Energy
Machinery &Environmental
Engineering

Non-Metallic
Minerals

Sales
Distribution
Ratio
Metallic
Minerals

Breakdown of Net Sales(Years ended March 31, 2020 and 2019)

Business segment(Millions of yen)

2020

Major products

Increase(decrease)

Net sales% of total net
sales

Net sales% of total net
sales¥ 27,418

23.3¥ 28,123

22.8

Crushed stone

6,269

5.3

6,416

5.2

(147)

Calcium carbonate

3,536

3.0

3,848

3.1

(311)

Ancillary products
and others

17,19914.7

18,894

15.3(1,695)Sub-total

54,423

46.3

57,283

46.4(2,860)Electrolytic copper

31,25826.6

35,62528.9(4,367)

Copper concentrate

10,319

8.8

9,772

7.9

546

Others

4,227

3.6

4,205

3.4

21

Sub-total

45,80439.0

49,60440.2(3,799)¥ 100,227

85.3¥ 106,888

86.6¥ (6,660)

Machinery engineering

5,689

4.8

5,363

4.3

326

Environmental engineering

6,830

5.8

6,449

5.3

381

¥ 12,520

10.6¥ 11,812

9.6

Limestone

Non-Metallic
Minerals

MineralResources

Metallic
Minerals

Total
Machinery &Environmental
Engineering

2019

Total

¥

¥

(705)

707

Real Estate

Real estate rentals and sales

2,886

2.5

2,748

2.2

137

Renewable
EnergyGeothermal steam supply, solar power,hydroelectric power

1,868

1.6

1,923

1.6

(54)

Total

¥ 117,502

100.0¥ 123,372

100.0¥ (5,869)3

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

Balance Sheets
As of March 31, 2020 and 2019

AssetsMillions of yen

Thousands of US dollars

2020

2019

2020

¥ 34,109¥ 34,139

Notes and accounts receivable—trade26,12928,490240,093

Lease investment assets

3,074

3,362

28,250

Merchandise and finished goods

5,459

4,726

50,162Work in process

8,238

2,846

75,700Raw materials and supplies

5,089

2,059

46,767

Other

2,133

3,510

19,599Allowance for doubtful accounts

(435)

(480)

(4,003)

83,79778,655769,988

Buildings and structures

21,95022,856201,697

Machinery, equipment and vehicles

9,890

10,28290,877

Land used for mining operations

3,931

3,945

36,123

Land for general use

16,627

16,627

152,782

Construction in progress

8,780

4,108

80,685

536

549

4,926

61,71658,369567,092

3,479

3,588

31,976

Investment securities

18,12426,074

166,539

Deferred tax assets

2,278

1,541

20,937

Other

4,734

3,881

43,501

Allowance for doubtful accounts

(146)

(377)

(1,342)

Allowance for investment loss

(30)

(15)

(283)

24,96031,104229,351¥ 173,954¥ 171,717$ 1,598,409

Current Assets
Cash and deposits$

313,417

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Consolidated Financial Information

Liabilities and Net Assets
Millions of yen

Thousands of US dollars

2020

2020

2019

Current Liabilities¥ 17,755

Notes and accounts payable—trade16,259

Short-term loans payable
Lease obligations
Accounts payable—other

¥

8,946
15,355$

163,146
149,402

555

769

5,106

6,327

6,811

58,138

Income taxes payable

1,098

2,043

10,093

Provision for bonuses

1,087

1,001

9,994

Provision for directors’ bonuses

32

37

301

Provision for shareholder benefit program

10

10

97

Provision for product warranties
Other

11

14

102

2,301

4,530

21,15045,44039,521

417,534

Non-Current Liabilities
4,390

5,012

40,340

Lease obligations

763

1,030

7,017

Deferred tax liabilities

212

2,679

1,954

Provision for directors’ retirement benefits

114

88

1,054

Provision for environmental safety measures

58

69

536

Long-term loans payable

Provision for special repairs

202

153

1,857

Net defined benefit liability

6,221

4,616

57,169Asset retirement obligations

4,439

4,423

40,793

Other

6,902

6,935

63,42623,30625,009214,151

68,74664,531

631,685

4,176

4,176

38,373

Total Liabilities
Net Assets
Capital stock
Capital surplus

4,941

4,958

45,407Retained earnings

88,69585,091

814,989

(163)

(160)

(1,504)

97,64994,065897,265

Valuation difference on available-for-sale securities

4,330

10,02839,795

Deferred losses on hedges

(114)

(39)

(1,050)Foreign currency translation adjustment

418

502

3,845

Remeasurements of defined benefit plans(2,223)(1,900)(20,433)

2,411

8,590

22,157

Treasury shares
Shareholders’ equity
Accumulated Other Comprehensive Income:

Total Accumulated Other Comprehensive Income

5,147

4,530

47,299Total Net Assets

105,208

107,186

966,723

Total Liabilities and Net Assets¥ 173,954¥ 171,717$ 1,598,409

Non-controlling interests

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

Statements of Income
Years ended March 31, 2020 and 2019

Millions of yen

Thousands of US dollars

2020

2019

2020

¥ 117,502¥ 123,372$ 1,079,692

Cost of Sales

89,491

95,260822,305

Gross Profit

28,011

28,111

257,387

Selling, General and Administrative Expenses

20,434

20,631

187,767

Operating Profit

7,576

7,479

69,619Interest income

82

124

761

Dividend income

801

946

7,363

Share of profit of entities accounted for using equity method

241

—

2,220

Other

136

183

1,252

1,262

1,254

11,597

Net Sales

Non-Operating Income:Non-Operating Expenses:
Interest expenses

266

309

2,446

Share of loss of entities accounted for using equity method

—

277

—

Other

560

790

5,150

826

1,377

7,596

8,012

7,356

73,621

Ordinary Profit
Extraordinary Income:Gain on sales of non-current assets

86

52

790

Gain on sales of investment securities

110

590

1,015

Insurance claim income

50

—

459

Other

9

5

84

255

648

2,349

211

246

1,942

0

34

5

Special investigative costs

308

—

2,834

Other

92

9

846

612

290

5,629

7,655

7,715

70,341

3,128

3,374

28,750Extraordinary Losses:
Loss on sales and retirement of non-current assets
Impairment loss

Profit before Income Taxes
Income Taxes:
Income taxes—current
Income taxes—deferred
Profit (Loss) 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

¥

(528)

(748)

(4,851)

2,600

2,625

23,899

535

(270)

4,918

4,518

5,360

41,523

5,054

¥

5,090

$

46,442

Consolidated Financial Information

Statements of Comprehensive Income
Years ended March 31, 2020 and 2019

Millions of yen

Thousands of US dollars

2020

2019

2020

¥ 5,054¥ 5,090$ 46,442(5,698)(3,004)(52,364)

Deferred losses on hedges

(74)

(72)

(687)

Foreign currency translation adjustment

(106)

(183)

(975)

Remeasurements of defined benefit plans, net of tax

(234)

(188)

(2,154)—(0)—Total other comprehensive loss

(6,114)(3,450)(56,181)Comprehensive income (loss)(1,059)1,639(9,739)Comprehensive income (loss) attributable to ownersof parent(1,660)1,957(15,258)

Comprehensive income (loss) attributable tonon-controlling interests¥¥ (318)$ 5,518

ProfitOther comprehensive income:
Valuation difference on available-for-sale securities

Share of other comprehensive income of entities
accounted for using equity method600

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, 2020 and 2019

Millions of yen

Thousands of US dollars

2020

2019

2020

¥ 9,242¥ 13,465$ 84,922

Net cash used in investing activities(7,714)(6,077)(70,886)

Net cash used in financing activities(1,454)(4,025)(13,363)

Effect of exchange rate change on cash and cash equivalents

(103)

(23)

(946)

Net increase (decrease) in cash and cash equivalents

(29)

3,339

(274)

33,51429,911

307,953—264—¥ 33,484¥ 33,514$ 307,679

Net cash provided by operating activities

Cash and cash equivalents at beginning of period
Increase in cash and cash equivalents resulting from
inclusion of subsidiaries in consolidation
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:
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., and Nippon Ball Valve Co., Ltd.

(2) Names of principal unconsolidated subsidiaries
Yaguki Aggregate Co., Ltd. and Hachinohe Mining andCivil Engineering 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 (Yaguki Aggregate Co., Ltd.
and others) and affiliated companies (Chokai Calcium Co.,
Ltd. and others) not accounted for by the equity method
are excluded from the scope of application of the equity
method because they have no overall significance andtheir profit and retained earnings (commensurate withequity 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 fromthe consolidated account settlement date are as follows:
Company Name
Settlement Date
Sociedad Contractual Minera
December 31
Atacama Kozan
Minera Nittetsu Chile Limitada
December 31
December 31
Compañía Minera Arqueros S.A.
The financial statements of 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
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 cost of
securities sold calculated by the moving-average method).
Securities without fair market value:Valued at cost by the moving-average method.

8(b) Derivatives
Market value 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 is adopted.
Software for internal use is amortized using the straightline 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(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

Notes to Consolidated Financial Statements

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
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
in accordance 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 phase inprogress 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 currencydenominated 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. Translationdifferences are included in Foreign currency translation
adjustment and Non-controlling interests under the net
assets on 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.
(b) Hedge instruments, hedge objects and hedge policy
The Company carries out interest rate swap transactions to
avoid risk associated with loan interest 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
to determine 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.

9Notes to Consolidated Financial Statements

6. Notes to the Consolidated Balance Sheets(10) Accounting method for consumption tax, etc.
The tax exclusion method is used when accounting for
consumption tax and regional consumption tax.

(1) Collateral assets(Millions of yen)Foundation mortgage

5 . Notes Concerning Changes to
Accounting Estimates
Property, plant and equipment and intangible assets
owned by Sociedad Contractual Minera Atacama Kozan, aconsolidated subsidiary of the Company, have been
depreciated or amortized based on the mine’s operational
life. After calculating the reserves of the concession
blocks, minable reserves increased; therefore, the service
life of major facilities has been extended. This changetakes effect from the fiscal year under review andcontinues in the future. In addition, the remaining service
years related to retirement benefit obligations and theestimated period for expenditures of asset retirement
obligations booked as mine closure costs based on themine closure plan stipulated in the mining law of Chile
were both extended. This change takes effect from thefiscal year under review and continues in the future.
As a result, compared to the conventional method,
depreciation and amortization for the fiscal year underreview declined ¥97 million, while operating profit,
ordinary profit and profit before income taxes eachincreased by the same amount.

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

¥ 483
33
168
10

(2) Accumulated depreciation of property, plant andequipment¥165,840 million(3) Guaranteed liabilities(Millions of yen)

Total guarantee
Hibi Kyodo Smelting Co., Ltd.
Iwaki Kyodo Tancal Co., Ltd.
Total

¥ 17,000140
17,140Consolidated
company debt
¥ 3,44726
3,474

7 . Segment Information
Millions of yen

2020

Sales to external customers
Inter-segment sales
Segment Revenue
Segment Profits (Loss)

Non-Metallic
Minerals

Metallic
Minerals

Machinery &Environmental
Engineering

Real Estate

Renewable
EnergyEliminations
andCorporate

Total¥ 54,423
962
55,385¥ 45,804—
45,804¥ 12,520
968
13,489¥ 2,8868
2,894¥ 1,868
—
1,868

¥
—
(1,939)(1,939)¥ 117,502—
117,502

6,824

574

1,382

1,609

415

(3,229)

7,576

Millions of yen

2019

Sales to external customers
Inter-segment sales
Segment Revenue
Segment Profits (Loss)

Non-Metallic
Minerals

Metallic
Minerals

Machinery &Environmental
Engineering

Real Estate

Renewable
EnergyEliminations
andCorporate

Total¥ 57,283
435
57,718¥ 49,604
049,604¥ 11,812
888
12,701¥ 2,7488
2,756¥ 1,923
—
1,923

¥ —
(1,332)(1,332)¥ 123,372—
123,372

7,484

(477)

1,112

1,473

363

(2,475)

7,479

Eliminations
andCorporate

Thousands of US dollars

2020

Sales to external customers
Inter-segment sales
Segment Revenue
Segment Profits (Loss)10

Non-Metallic
Minerals

Metallic
Minerals

Machinery &Environmental
Engineering

Real Estate

Renewable
Energy$ 500,075
8,841
508,917$ 420,883—
420,883$ 115,047
8,902
123,949$ 26,518
74
26,593$ 17,167—
17,16762,705

5,278

12,706

14,786

3,817

Total

$
— $ 1,079,692(17,818)—(17,818)
1,079,692(29,674)

69,619

Corporate Information
OutlineAs of March 31, 2020

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

306(including 32,790 shares of treasury stock)

Machinery & Environmental Engineering

281

Number of Shareholders 4,205

Major Shareholders

Real Estate

3

Renewable Energy

11

Corporate (shared)

109

Total

1,882

% of total

14.88
7.71
The Master Trust Bank of Japan, Ltd. (trust account)
5.82
Mizuho Bank, Ltd.
3.54
Sumitomo Mitsui Banking Corporation
3.49
Japan Trustee Services Bank, Ltd. (trust account)
2.73
Nittetsu Kogyo Shareholding Association
2.04
DFA INTL SMALL CAP VALUE PORTFOLIO
1.85
MUFG Bank, Ltd.
1.68
NORTHERN TRUST CO. (AVFC) RE 10PCT TREATY ACCOUNT
1.66
Nippon Steel Corporation

1,172

Number of Employees (Non-Consolidated)

669

Nittetsu Kogyo Shogakukai*

Principal Lenders
Mizuho Bank, Ltd.
Sumitomo Mitsui Banking Corporation
MUFG Bank, Ltd.

*Non-profit corporation

Primary Businesses
As of March 31, 2020
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 26, 2020

Torigatayama Quarry Complex

General Meetingof Shareholders

Internal Audit Office

Board of Directors

General Administration
Department

Audit & Supervisory
Board Members
Audit & Supervisory
Board

Shiriya Quarry Complex

Ikura Quarry Complex
General Accounting
Department
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 Office
Safety Administration Office
Hokkaido Branch OfficeBusiness Continuity
Management Office

Tohoku Branch OfficeDirectors and Audit & Supervisory Board Members
As of June 26, 2020

Representative Director and President

Hiroshi Koyama
Managing Directors

Shinya Yamasaki
Reiichi Morikawa
Directors

Yuji Somatsu(Supervision of Mining Department, Safety Administration Office)

Yukihiko Hagikami(Supervision of Resource Development Department)

Hirofumi Fujimoto(Supervision of General Administration Department,
Accounting Department, and BCM Promotion Office)12Standing Audit & Supervisory Board Members

Seiji Yasuda
Kazuhiko Kojima
Audit & Supervisory Board Members

Yoshiro Wakayanagi
Eiki Hotta
Senior Corporate Executive

Hideaki Kido

(General Manager of Torigatayama Quarry Complex)

Corporate Executives

Kenji Otakara(General Manager of Osaka Branch Office)Jiro Fujitsu(General Manager of Shiriya Quarry Complex)

Katsuhiko Kaneko

Masanobu Kawata

Nobumichi Izumi

Hiroyuki Sakaguchi(General Manager of R&D Department)(General Manager of Non-Ferrous Metal & Ore Department)Corporate Information

Offices

As of March 31, 2020
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

Level 14, 115 Pitt St, Sydney NSW 2000, Australia
Tel: +61-2-9238-0477

Taiwan OfficeRm. 506, 5F, No. 88, Sec. 2 Zhongxiao E.Rd., Zhongzheng Dist., Taipei City 100, Taiwan
Tel: +886-2-2322-2712 Fax:+886-2-2322-2616

Major Subsidiaries
As of March 31, 2020

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

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

Nippon Ball Valve Co., Ltd.

40

100.0

Manufacture and sales of ball valves

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