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

Printed in Japan

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, 2017, Japan’s economy experienced certain areas of weakness
Millions of yen

caused by the slowdown in China’s economy and other factors. However, exports recovered on the backof a yen depreciation after the U.S. presidential election, while corporate earnings showed improvement,

2017

2016

2015

2014

2013

2017

¥ 107,325¥ 114,088¥ 125,467¥ 114,317¥ 102,840$ 956,643

7,289

4,483

5,973

3,903

3,873

64,970167,496

162,379

170,055

161,325

144,539

1,492,967

For the year
Net Sales

Thousands of
US dollars

Profit Attributable to Owners of Parent
At year-end
Total Assets

indicating that the economy was continuing a gradual recovery despite a lack of robustness.
In these economic conditions, the Nittetsu Mining Group posted net sales of ¥107,325 million, down
5.9% year on year, due to a drop in sales in the Mineral Resources Group, while ordinary profit was¥7,474 million, down 23.1% year on year.
Profit attributable to owners of parent totaled ¥7,289 million, up a significant 62.6% year on year,

Yen

US dollars

Per share data
Profit per Share¥ 875.83¥ 538.65¥ 717.53¥ 468.88¥ 465.26$ 7.81

Nittetsu Mining Co., Ltd.
Years ended March 31

Mineral Resources Group
Thousands of
US dollars

Millions of yen

Net Sales
ProfitNet sales of the Non-Metallic Minerals Division fell 6.5%, or ¥3,612 million, over the previous fiscal year

2016

2015

2014

2013

2017

¥ 86,149¥ 88,935¥ 102,782¥ 92,547¥ 87,079$ 767,890

6,695

3,773

6,536

5,116

3,816

59,681

144,149

137,197

143,802

134,155

124,968

1,284,868

Net sales of the Metallic Minerals Division dipped 4.4%, or ¥1,918 million, over the previous fiscal year to

US dollars¥41,226 million, owing to a decline in sale price of electrolytic copper. Operating profit also fell 1.8%, orYen

Per share data
Profit per ShareNon-Metallic Minerals Division

2017

At year-end
Total Assetsof the recoverability of deferred tax assets that resulted in lower tax expenses.

Consolidated Business Results by Segment

Non-Consolidated

For the year

driven by the decline in extraordinary losses and the posting of income taxes-deferred due to a review

to ¥51,564 million due to a drop in the sales volume of mainstay product limestone. Operating profit fell
7.7%, or ¥534 million, compared to the previous fiscal year to ¥6,444 million.

Metallic Minerals Division¥24 million, to ¥1,339 million due to rising smelting costs and other factors.
¥ 804.54¥ 453.38¥785.23¥ 614.60¥ 458.39$ 7.17

Notes: 1 US dollar amounts are translated from yen, for convenience only, at the rate of ¥112.19=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 FY2013 (the fiscal
year ended March 31, 2013).

Machinery & Environmental Engineering GroupNet sales of the Machinery & Environmental Engineering Group increased 1.8%, or ¥171 million, overthe previous fiscal year to ¥9,937 million because of strong sales of water treatment agents, a mainstay
product of the Environmental Engineering Division. However, operating profit dropped 4.5%, or ¥46
million, to ¥971 million owing to weaker sales at certain machinery-related subsidiaries.

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

Real Estate GroupNet sales of the Real Estate Group decreased 34.4%, or ¥1,414 million, over the previous fiscal year to¥2,701 million due to a lack of sales of real estate for sale, despite the generally strong occupancy rates
of leased properties. Operating profit also fell 46.3%, or ¥1,323 million, to ¥1,532 million.

Renewable Energy GroupNet sales of the Renewable Energy Group increased a slight 0.6%, or ¥11 million, over the previous fiscal
year to ¥1,895 million reflecting the new operation of solar power plants. Operating profit rose 28.1%,
or ¥88 million, to ¥402 million, driven by a decline in depreciation and amortization costs.
1Message from the Management

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

Net Sales by Business Segment

Capital Expenditures, Financing and Other Related Matters(Year ended March 31, 2017)

Capital expenditures of the Nittetsu Mining Group totaled ¥6,465 million during the fiscal year underreview, up 3.6% from the previous fiscal year. Major outlays were as follows.
Major facility acquired in the fiscal year under review:

The future outlook indicates that the operating environment facing the Nittetsu Mining Group will

% of total
net sales

Net sales(Millions of yen)

Non-Metallic Minerals¥ 51,564

(6.5)

48.0

Metallic Minerals¥ 41,226

(4.4)

38.4

Machinery & Environmental
Engineering

¥

9,937

1.8

9.3

Real Estate

¥

2,701

(34.4)

2.5

Renewable Energy

¥

1,895

0.6

1.8

¥ 107,325

(5.9)

100.0

Nittetsu Mining Kamaishi Nakanosawa Mega Solar Power Plant (Renewable Energy Group)

Challenges Facing the Group% change fromprevious fiscal year

Business segment

Real Renewable
Estate Energy
Machinery &Environmental
Engineering
Non-Metallic
Minerals

Sales
Distribution
Ratio
Metallic
Minerals

continue to require caution. While there are expectations of a gradual economic recovery, clarity is still
Total

lacking regarding the future of the global economy, due to geopolitical risk in the Middle East and the
Korean peninsula, uncertainty over policies to be implemented by the President of the United States,
and the direction of Brexit negotiations, as well as concerns over foreign exchange rates and commodity
price trends.
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

Breakdown of Net Sales(Years ended March 31)(Millions of yen)

structure. It will accomplish this by such means as further boosting sales, raising productivity, cutting
costs and strengthening its business continuity plan.

Business segment

2017

Major products% of total net
sales

Net sales% of total net
sales¥ 26,309

24.5¥ 27,500

24.1¥ (1,191)

Crushed stone

5,909

5.5

6,401

5.6

(491)

Calcium carbonate

3,645

3.4

3,631

3.2

14

Ancillary products
and others

15,69914.6

17,643

15.5(1,943)Sub-total

51,56448.0

55,17648.4(3,612)

Electrolytic copper

25,69923.928,31424.8(2,614)

Copper concentrate

9,724

9.1

9,248

8.1

476

Others

5,802

5.4

5,582

4.8

220

Sub-total

41,22638.4

43,14537.7(1,918)¥ 92,791

86.4¥ 98,321

86.1¥ (5,530)

Machinery engineering

4,799

4.5

4,747

4.2

52

Environmental engineering

5,137

4.8

5,018

4.4

118

9,937

9.3

9,766

8.6

Limestone

medium- 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 the
Non-Metallic
Minerals

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,
obtaining 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.

MineralResources

June 2017

Metallic
Minerals

Kimio Sato
Representative Director and President

Total
Machinery &Environmental
Engineering

Total

2

Increase(decrease)

Net sales

Going forward, the Nittetsu Mining Group will work to achieve sustainable growth, enhanceprosperity of shareholders, business partners, local communities, employees, and other stakeholders.

2016

¥

¥

¥

171

Real Estate

Real estate rentals and sales

2,701

2.5

4,116

3.6

(1,414)

Renewable
EnergyGeothermal steam supply, solar power,hydroelectric power

1,895

1.8

1,883

1.7

11

Total

¥ 107,325

100.0¥ 114,088

100.0¥ (6,762)3

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

Balance Sheets
As of March 31, 2017 and 2016

AssetsLiabilities and Net Assets
Millions of yen

2017

Millions of yen

Thousands of US dollars

2017

2017

2016

Current Assets

Thousands of US dollars

2017

2016

Current Liabilities¥ 26,297

Cash and deposits¥ 26,648$ 234,403

Notes and accounts receivable—trade

24,49925,223

218,374

Lease investment assets

3,910

4,128

34,854

Accounts payable—other

Merchandise and finished goods

3,857

4,659

34,385Work in process

5,535

7,975

49,338Raw materials and supplies

3,526

2,041

31,431

444

421

3,963

Other

3,965

3,084

35,348

Allowance for doubtful accounts

(430)

(408)

(3,834)71,60773,774

638,265

Deferred tax assets¥

Notes and accounts payable—trade
Short-term loans payable

8,621¥ 10,174

11,655

8,725$

76,851
103,893

761

768

6,783

4,743

5,480

42,280

Income taxes payable

743

1,254

6,627

Provision for bonuses

956

943

8,525

Provision for directors’ bonuses

23

23

212

Provision for shareholder benefit program

10

11

96

Provision for environmental safety measures

6

—

57

Provision for product warranties

14

—

127

4,117

3,653

36,701

31,65531,035282,157

12,158

18,103

108,375

Lease obligations

Other

Non-Current Liabilities
Long-term loans payable

Non-Current Assets

Lease obligations

1,128

1,376

10,057

Property, plant and equipment:

Deferred tax liabilities

5,166

5,242

46,051

Provision for directors’ retirement benefits

70

119

624

Provision for environmental safety measures

126

150

1,127

Provision for special repairs

179

102

1,597

Net defined benefit liability

3,315

4,060

29,549Asset retirement obligations

4,410

4,371

39,313

Buildings and structures

24,02524,214

214,146

Machinery, equipment and vehicles

11,261

11,220100,374

Land used for mining operations

3,809

3,883

33,959Land for general use

16,888

16,685150,533

Construction in progress

766

711

6,834

Other

489

526

4,361

57,24057,242510,210

Other

Total Liabilities

6,885

6,967

61,37733,44040,493

298,074

65,096

71,528580,232

Net Assets
2,510

Intangible assets

1,418

22,374

Capital stock

4,176

4,176

37,223

Capital surplus

5,248

6,149

46,783Retained earnings

76,12769,545678,557

(150)

(144)

(1,340)85,401

79,726761,223

13,328

8,929

118,798

(40)

(51)

(362)

Treasury shares

Investments and Other Assets

Shareholders’ equity

Investment securities

31,33425,169279,296

Deferred tax assets

1,142

969

10,183

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

Other

4,054

4,202

36,137

Allowance for doubtful accounts

(386)

(397)

(3,449)Allowance for investment loss

(5)

—

(52)

Total Assets

36,13829,943322,116¥ 167,496¥ 162,379$ 1,492,967

Accumulated Other Comprehensive Income:

Foreign currency translation adjustment

859

927

7,663

Remeasurements of defined benefit plans(1,505)(2,060)(13,422)

12,641

7,745

112,677

4,356

3,378

38,834

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

102,399

90,850912,735

Total Liabilities and Net Assets¥ 167,496¥ 162,379$ 1,492,967

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, 2017 and 2016

Years ended March 31, 2017 and 2016

Millions of yen

Thousands of US dollars

Millions of yen

2017

2016

2017

¥ 107,325¥ 114,088$ 956,643

Cost of Sales

80,85884,901

720,728

Selling, General and Administrative Expenses

18,441

19,095

164,374

Other comprehensive income:Operating Profit

8,026

10,09071,540

Valuation difference on available-for-sale securities

Interest income

52

39

470

Dividend income

549

765

4,902

Net Sales

Non-Operating Income:

Share of profit of entities accounted for using equity method

—

257

—

Other

159

172

1,421

762

1,234

6,794

Interest expenses

303

356

2,707

Share of loss of entities accounted for using equity method

122

—

1,093

Other

887

1,245

7,910

1,313

1,601

11,711

7,474

9,723

66,623Thousands of US dollars

2017

2016

2017

¥ 7,947¥ 5,037$ 70,837

4,399(4,576)

39,212

Deferred gains or losses on hedges

13

201

116

Foreign currency translation adjustment

(52)

39

(470)

Remeasurements of defined benefit plans, net of tax

555(1,293)

4,947

(2)

(1)

(23)

Total other comprehensive income

4,912(5,631)

43,783Comprehensive income

12,859(594)

114,620

Comprehensive income attributable to owners ofparent12,184(1,159)108,608

Comprehensive income attributable to non-controllinginterests

¥

¥ 564

$ 6,012

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

Non-Operating Expenses:

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

310

86

2,763

Gain on sales of investment securities

—

50

—

Compensation income

251

115

2,241

37

5

334

599

257

5,339

Loss on sales and retirement of non-current assets

311

271

2,772

Impairment loss

123

1,727

1,097

Loss on valuation of investment securities

—

425

—

Other

22

31

203

456

2,455

4,073

Other

674

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

Extraordinary Losses:

Profit before Income Taxes

7,616

7,525

67,889

Income Taxes:

Years ended March 31, 2017 and 2016

Millions of yen

2016

2017

¥ 12,079¥ 11,070$ 107,668

Net cash used in investing activities(6,070)(4,993)(54,113)

Net cash used in financing activities(6,194)(3,675)(55,211)

Effect of exchange rate change on cash and cash equivalents

(101)

(145)

(904)

(287)

2,255

(2,560)25,97323,717

231,515¥ 25,686¥ 25,973$ 228,955

Net cash provided by operating activities

Income taxes—current

2,124

2,855

18,935(2,455)(367)(21,883)

(330)

2,488

(2,947)

658

553

5,866

Net increase (decrease) in cash and cash equivalents

7,289

4,483

64,970Cash and cash equivalents at beginning of period

5,037$ 70,837

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.

¥

7,947

¥

Thousands of US dollars

2017

Income taxes—deferred
Profit Attributable to Non-Controlling Interests

6

Statements of Cash Flows

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

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., 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.

(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.

3. Business Years of Consolidated Subsidiaries
Companies with account settlement dates different fromthe consolidated account settlement date are as follows:
Settlement Date
Company Name
Sociedad Contractual Minera
December 31
Atacama Kozan
December 31
Minera Nittetsu Chile Limitada
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(c) Inventories
The standard for evaluation is the cost method (book8

value 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 balancemethod. 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(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 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.
(g) 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.
(h) Provision for special repairs
The Company and its domestic consolidated subsidiaries
have a provision for special repairs based on theestimated cost of applicable inspection and repair of ships
requiring regular inspections under the Ship Safety Act,and for regular repairs to steam production and transportfacilities.
(i) 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.

(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
PolicyThe Company and its domestic consolidated subsidiaries
have applied Practical Solution on a Change inDepreciation Method due to Tax Reform 2016 (ASBJ
Practical Solution No. 32; June 17, 2016) from theconsolidated fiscal year under review following
amendments to the Income Tax Act. As a result, thedepreciation method used for the facilities of buildings
and structures acquired on or after April 1, 2016 has beenchanged from the declining balance method to the9Notes to Consolidated Financial Statements

straight-line method.
These changes had no material impact on operating
profit, ordinary profit, or profit before income taxes in thefiscal year under review.

6 . 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.
Exploration activities have detected ore deposits aroundthe vicinity of the area that has already been mined,
resulting in an extension of the mine’s operational life.
Therefore, the service life of major facilities has beenchanged. In addition, the average remaining years ofservice related to retirement benefit obligations andexpected period until the expenditure of asset retirement
obligations have been changed from the fiscal year underreview and for the future.
These changes reduced depreciation and amortization
costs for the fiscal year under review compared to theconventional method, resulting in an increase of ¥597
million in operating profit, ordinary profit, and profit
before income taxes.

7. Notes to the Consolidated Balance Sheets(1) Collateral assets(Millions of yen)Foundation mortgage
Property, plant and equipment
Debt collateralized by the above
Current portion of long-term loans payable
Long-term loans payableTotal¥ 5,136
20
30
50(Others)
Property, plant and equipment
Debt collateralized by the above
Current portion of long-term loans payable
Long-term loans payable
Guarantee deposits received
Total

¥ 590
32
267
10
309

(2) Accumulated depreciation of property, plant andequipment¥157,398 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

¥ 25,00010510
25,115

Consolidated
company debt
¥ 5,0701905,090

Corporate Information
OutlineAs of March 31, 2017

Date of Establishment

Number of Employees (Consolidated)

May 20, 1939

Mineral Resources

Common Stock
Authorized

20,000,000 shares

Non-Metallic Minerals

Issued andOutstanding

8,352,319 shares

Metallic Minerals

244(including 30,594 shares of treasury stock)

Machinery & Environmental Engineering

255

4,338

Real Estate

3

Renewable Energy

10

Number of Shareholders

Note: The Company initiated a reverse stock split in which 10 shares of common
stock were exchanged for one share effective October 1, 2016, following
approval of the 102nd Annual General Meeting of Shareholders held on June29, 2016. As a result, the total number of shares issued and outstanding
decreased by 75,170,876 shares to 8,352,319 shares. In addition, the Company’s
authorized shares decreased by 180,000,000 shares to 20,000,000 shares.

Major Shareholders

1,162

Corporate (shared)

97

Total

1,771

Number of Employees (Non-Consolidated)663% of total

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

14.88
7.70
4.78
3.54
3.53
3.49
2.38
1.93
1.91
1.68

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

*Non-profit corporation

8 . Segment Information
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
EnergyEliminations
andCorporate

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

¥
—
(3,219)(3,219)¥ 107,325—
107,325

6,444

1,339

971

1,532

402

(2,663)

8,026

Primary Businesses
As of March 31, 2017
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

Millions of yen

2016

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

Non-Metallic
Minerals

Metallic
Minerals

Machinery &Environmental
Engineering

Real Estate

Renewable
EnergyEliminations
andCorporate¥ 55,176
1,049
56,226¥ 43,145—
43,145¥ 9,766
1,657
11,423¥ 4,1168
4,125¥ 1,883
—
1,883

¥ —
(2,716)(2,716)

6,978

1,364

1,018

2,855

314

(2,440)Total¥ 114,088—
114,088
10,090

Metallic Minerals
Electrolytic copper, gold and silver, copper concentrate
Machinery &Environmental
Engineering

Thousands of US dollars

2017

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

Non-Metallic
Minerals

Metallic
Minerals

Machinery &Environmental
Engineering

Real Estate

Renewable
EnergyEliminations
andCorporate$ 459,619
17,039476,658$ 367,470—
367,470$ 88,573
11,576100,150$ 24,082
79
24,162$ 16,897—
16,897$—(28,695)(28,695)$ 956,643—
956,643

57,44011,937

8,663

13,657

3,585(23,743)

71,540Machinery 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

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

Offices

As of June 29, 2017

As of March 31, 2017

Torigatayama Quarry Complex

General Meetingof Shareholders
Board of Directors
Audit & Supervisory
Board Members
Audit & Supervisory
Board

Shiriya Quarry Complex

General Administration
Department

Ikura Quarry Complex
General Accounting
Department
Higashi-shikagoe Quarry Complex
Limestone & Raw Materials
Sales Department
Non-Ferrous Metal & Ore
Department

Management Council

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

Yamaguchi Quarry

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

Tokiwa Quarry

Oita Quarry Complex
Mining Department

Yusen Building, 3-2, Marunouchi 2-chome, Chiyoda-ku, Tokyo 100-8377, Japan
URL: http://www.nittetsukou.co.jp/eng/

Head Office

Nagaoyama Quarry

Machinery & Environmental
Sales Department
President

Domestic

Tochigi Quarry Complex

R&D Department
Resources Development
Department

Kagoshima Geothermal Facility

Osaka Branch Office

R&D Department

Kyushu Branch Office
Safety Administration Office8-1, 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

Hokkaido Branch OfficeBusiness Continuity
Management Office

Tohoku Branch OfficeDirectors and Audit & Supervisory Board Members
As of June 29, 2017

Representative Director and President

Kimio SatoManaging Directors

Hiroshi Koyama
Jun Matsunaga
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 Non-Ferrous Metal & Ore Department; General Manager
of Limestone & Raw Materials Sales Department)

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

Takeyuki Kumamura
Katsuhiko Kaneko

Standing Audit & Supervisory Board Members

Izumi Tanaka
Hiroyasu Adachi
Audit & Supervisory Board Members

Yoshiro Wakayanagi
Eiki Hotta
Corporate Executives

Hideaki Kido

(General Manager of Torigatayama Quarry Complex)

Yukihiko Hagigami

Major Subsidiaries
As of March 31, 2017

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.

(General Manager of Resources Development Department)

Kenji Otakara(General Manager of General Accounting Department)

Hirofumi Fujimoto(General Manager of General Administration Department)

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

Note: The paid-in capital of S.C.M. Atacama Kozan increased due to an increase in capital executed on September 6, 2016.

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