ANNUAL REVIEW 2016
For the Year Ended March 31, 2016

The way of mutual progress

PRESIDENT’S MESSAGE

Yushiro Chemical Industry Co., Ltd. has contributed to theprogress and material development of Japan by supplying quality
oil-fat-wax (yu-shi-ro) products. We have succeeded in developing
and offering to virtually all industrial markets such auxiliary
products as metalworking oils and fluids, polishing agents forbuilding maintenance. To respond to the needs of the industry,
every technology we have acquired will be fed back to our R&D
process for the creation of newer technologies and products basedon our corporate ideal of “the way of mutual progress.”

Eiichi Ogo
PRESIDENT

Business summary
During this consolidated financial year, the overseas economy continued in
an expansionary trend, albeit still a moderate one. This was attributable torobust personal consumption in the United States backed by the improved
employment situation, despite economies in emerging countries losing
momentum, as evidenced by the slowing economic growth rate in China.
The Japanese economy has yet to make a full recovery partly due to thesluggish growth of personal consumption, although corporate performance isin an improving trend.
Under these circumstances, net sales in Japan grew 5.6% over the previous
fiscal year to ¥30,680 million as the result of the Company’s increased
market share among Japanese manufacturers of automobiles andcomponents, our main customers, and the contribution from Japan Cee-Bee
Chemical Co., Ltd., which was made a subsidiary from the current fiscal
year. Additionally, operating income rose 38.2% over the previous fiscal yearto ¥2,169 million. Ordinary income increased 16.9% to ¥2,947 million, andnet income attributable to owners of parent grew 17.0% over the previous
fiscal year to ¥1,993 million, partly thanks to the ¥541 million gain on
negative goodwill booked as the result of the acquisition of Japan Cee-Bee
Chemical Co., Ltd.

Business segment(

Previous Fiscal Year
April 1, 2014 throughMarch 31, 2015

) (Current Fiscal Year
April 1, 2015 throughMarch 31, 2016

Increase/) Decrease

Million yen%

Million yen

%

%

Japan

16,32756.2

16,742

54.6

102.5

North and South America

4,818

16.6

5,345

17.4

110.9

China

4,476

15.4

4,685

15.3

104.7

Southeast Asia / India

3,438

11.8

3,906

12.7

113.6

Total

29,061100.0

30,680

100.0

105.6

M e d i u m a n d L o n g - Te r m P l a n
In the automobile industry, which is the main customer of our products,
manufacturers are shifting production sites offshore, and the domestic
market is contracting. Meanwhile, production is forecast to trend upwards
globally due to growth markets in China and emerging countries as well as
recovery of the North American market. Net sales of metalworking oils andfluids, our key products, are highly reliant on the automobile industry, andgoing forward, we will actively invest management resources in regions withexpanding markets to grow our business performance. In addition, we willbuild strategies and structures capable of continuously improving profit andprofitability and boost our competitiveness amidst the sharp rise in the priceof raw materials due to yen depreciation.
Based on this understanding, we are following the basic policies below in the
17th Medium-Term Plan that started in April 2014 and deploying businesswith a global viewpoint throughout the world in addition to Japan.

11. Start up new production bases in India and Mexico, and acceleratebusiness expansion in the three segments of Southeast Asia/India, Northand South America, and China. At the same time, reinforce the researchand development structure in each segment, start up the ASEAN
Technical Center in Thailand, expand research facilities in the UnitedStates, and actively develop and launch new products that support
technology and local needs, including in Mexico.
2. Create an organization that integrates sales and technology, andimprove customer satisfaction by speeding up customer service andproduct development. Also, reorganize the agency network to boost
sales.
3. Leverage the Yushiro global network to improve profits in Japan andoverseas through accurate assessment of raw material information,
selection of best suppliers, and supply of all product categories from thebest production base.
4. Investigate development and commercialization of chemical productswith applications in civil engineering and infrastructure sectors as wellas aim to enter new business sectors through adoption of technology,
business alliances and M&As.

Future Issues and Challenges
We believe that for the Yushiro Group to achieve sustainable growth, wemust expand our business performance in the growth regions of North andSouth America, China, and Southeast Asia/India and grow domestic businessterritories. We will therefore tackle the following issues.
1. Structures to support global expansion of our business (secure and train
human resources, including staff in each region, strengthen
coordination between Japan and overseas)
2. Development of products that are differentiated from those of ourcompetitors and reinforcement of service systems
3. Creation of a purchasing network that can adjust to fluctuations in raw
material prices
4. Strengthened corporate governance and compliance for our groupcompanies
5. Promotion of greater efficiency through selection and integration ofexisting businesses

Basic policy for profit distribution
The Company’s basic policy for profit distribution is to provide shareholder
returns in consideration of our global business expansion and consolidated
business results. Shareholder returns are determined upon consideration of
the capital investments that are required to improve corporate value.

Yen in millions
Fiscal Years ended March 31,

Net sales
Operating income

U.S. dollars in thousands

2016

2015

2016

¥30,680¥29,061$272,280

2,169

1,569

19,253

Net income

1,993

1,703

17,690Total assets

39,16838,506347,605

Net assets

28,53629,015

253,256

Per Share Amounts
Net income per share
Cash dividends per share
Net assets per share

Yen

U.S. dollars¥143.89¥122.94$1.27

40.00

38.00

0.35

1,935.65

1,967.67

17.17

Notes : 1. U.S. dollar amounts, converted at the rate of ¥112.68 to US$1.00, are for convenience only.
2. Net income per share is based on the average number of shares outstanding at the end of each fiscal year.
3. Japanese yen amounts of less than one million have been excluded.

2

REVIEW OF OPERATIONSThe Yushiro Group consists of Yushiro Chemical Industry Co.,
Ltd., three domestic subsidiaries, twelve overseas subsidiaries
and three affiliates, and its major businesses are the production
and sales of metalworking oils and fluids, chemicals for building
maintenance. We are going to expand our business in growing
areas globally as well as a domestic market continuously.

Review of Operations by Region

Subsidiaries and Associated Companies

1. Japan
Segment net sales in Japan grew 2.5% over the previous fiscal year to ¥16,742 million
as the result of the contribution from Japan Cee-Bee Chemical Co., Ltd. Segment
income (operating income) rose 3.5% to ¥601 million, thanks to the impact from thedrop in oil prices and efforts at cost reductions.

Overseas Subsidiaries

2. North and South America
Net sales in the North America region (America and Mexico) exceeded those for theprevious fiscal year, driven by robust automobile sales in the United States where atrend of moderate economic expansion continues. Net sales in Brazil fell below thosefor the previous fiscal year due to the deteriorating economy. As a result, segment net
sales grew 10.9% over the previous fiscal year to ¥5,345 million.
Profits rose thanks to increased sales in the United States and a decrease in the priceof raw materials, despite the lower profit posted by the subsidiary in Brazil and acontinued deficit due to costs incurred for the startup of the new plant in Mexico. As
a result, segment income grew 79.9% over the previous fiscal year to ¥312 million.

Yushiro do Brasil Indústria Química Ltda.
Av. Henry Néstle, 3100 Caçapava, CEP 12281-970,
São Paulo, Brazil
Phone: (55) 12-3654-8100 Fax: (55) 12-3654-8101

3. China
Net sales in China fell from the previous fiscal year on a local currency basis due tothe impact from the economic slowdown. Segment net sales, however, rose 4.7% overthe previous fiscal year to ¥4,685 million due to the foreign exchange rate.
Segment income rose 18.9% to ¥756 million thanks to the effect from lower oil
prices and reductions in the price of raw materials.

Yushiro Manufacturing America Inc.
783 West Mausoleum Road, P.O. Box 217
Shelbyville, Indiana 46176-9720 U.S.A.
Phone: (1) 317-398-9862 Fax: (1) 317-392-4818
URL: http://www.yushirousa.com/

Yushiro Mexico S.A. de C.V.
Plaza de la No.100 Interior 115 Edificio Puerto Interior Pisa 1
Colonia Puerto Interior. CP 36275 Silao. Guanajuato. Mexico
Phone: (52)-449-9123-133 ext.2
Shanghai Yushiro Chemical Industry Co., Ltd.
881 Fulian Road, Baoshan District,
Shanghai City, P.R. China 201906
Phone: (86) 21-3604-1188 Fax: (86) 21-3604-0666
URL: http://www.yushiro.com.cn/

4. Southeast Asia/India
In Thailand, the volume of automobile production remained almost unchanged fromthe previous fiscal year, while production volume in Indonesia, including
motorcycles, fell short of the previous fiscal year. Sales, however, grew thanks to anincreased market share among existing customers. In India, sales exceeded those of
the previous fiscal year as the result of an increase in market share among existingcustomers and sales growth in the casting products. In Malaysia, sales decreased dueto the impact from declining sales of cutting oil for solar batteries. As a result,segment net sales rose 13.6% over the previous fiscal year to ¥3,906 million.
Profits surpassed the previous fiscal year thanks to sales growth in Thailand andIndonesia, although profit in Malaysia decreased for the same reason that led to adrop in net sales. Meanwhile, in India, profit ratio improved and the deficit decreased
sharply thanks to the complete transition to locally manufactured products, which
had been underway since the start of production at the new plant in April 2014. As aresult, segment income grew 153.6% over the previous fiscal year to ¥505 million.

Qidong Yushiro Chemical Industry Co., Ltd.
New Qidong Port North
Qidong City, Jiangsu, Province, P.R. China 226264
Phone: (86) 513-8369-9942 Fax: (86) 513-8369-9943
URL: http://www.yushiro.com.cn/

New Subsidiary
The Company acquired Japan Cee-Bee Chemical Co., Ltd. (hereafter referred to as
JCBC) and made it a subsidiary on April 13, 2015. The purposes of the acquisition
and the synergies to be gained include strengthening the Company’s core businessand to expand JCBC’s business by leveraging the Company’s overseas bases.

Yushiro India Company Private Limited
201, JMD Regent Square, M.G.Road,
Gurgaon-122002 (Haryana), India
Phone: (91)124-424-1650 Fax: (91)124-424-1652

Yushiro Malaysia Sdn. Bhd.
14, Jalan Utama 2/28, Pusat Perindustrian Maju Jaya,
47100 Puchong, Selangor Darul Ehsan, Malaysia
Phone: (60) 3-8061-9737 Fax: (60) 3-8062-2731
URL: http://www.yushiro.com.my/
Yushiro (Thailand) Co., Ltd.
AMATA Nakorn Industrial Estate 700/533 Moo7,
Don Hua Roh, Muang, Chonburi 20000, Thailand
Phone: (66) 3845-4873 Fax: (66) 3845-4879

PT. Yushiro Indonesia
JI. Maligi, Blok B-2B, Kawasan Industry KIIC,
Karawang 41361-West Java, Indonesia
Phone: (62)21-8911-4271 Fax: (62)26-7845-7934
Overseas Associated Companies
Buhmwoo Chemical Ind. Co., Ltd. & Buhmwoo Co., Ltd.
70-3, Yangjae-Dong, Seocho-gu, Seoul, Korea
Phone: (82) 2-571-6321 Fax: (82) 2-571-6329
URL: http://www.buhmwoo.com/
San-I Chemical Co., Ltd.
7th Fl. No.48 Ming Chuang W. Rd., Taipei, Taiwan R.O.C.
Phone: (886)-02-2522-1313 Fax: (886)-02-2522-1363
URL: http://www.san-i.com.tw/3

Business on metalworking oils and fluids
What is "metalworking oils and fluids"• Fluids used for processing steel and other metals into specific shapes.
• Important areas of fluid performance include lubricity, cooling ability, etc.
• Mainly used in the automotive, precision processing and semiconductor
processing industries.
Products• Cutting and Grinding Oils and Fluids• Aluminum Diecasting Lubricants• Cutting Oils and Fluids for Advanced-Material• Cleaners• Rust Preventives• Rolling Oils and Fluids• Drawing Oils and Fluids• Forming Oils and Fluids• Quenching Agents• Fire Resistant Hydraulic Lubricants• Other Oils and Fluids
Customers• Automobile companies• Precision machine processing companies• Steel companies• Electric equipment companies• Other machine processing companies

4

5

6

3

2

Automobile
65.7%

1

1. Automobile manufacturer andAutomobile related: 65.7%
2. Precision machinery: 13.8%
3. Ball bearing manufacturer: 7.0%
4. Steel industry: 3.4%
5. Photo Voltaic/semiconductor: 2.6%
6. Other: 7.5%
Shares of sales by customers for the fiscal year
ended March 2016. (non-consolidated)

The Company’s advantages in the field of Cutting
and Grinding Oils and Fluids• Our overwhelming share in the automobile industry; morethan 60%
The Company features its production development capacities
and quick response to changes in the automobile industry
including rationalization, changes in materials and measures
to address environmental issues.
• Our wide human network interacts with users in different
industries at “The Society of Cutting Fluids & Cutting
Technology”
About the Society of Cutting Fluids & Cutting Technology
The society was launched in 1954 as an on-site research group made up of
metal processing technology researchers, and has served as an officebridging academy and industry for more than 60 years.
Engineers with abundant on-site experience, beginning with those from
our automotive manufacturing customers, as well as those from machine
manufactures, tooling manufactures, etc., gather to exchange information
and work together to develop higher technologies and further nurture
their expertise. This group has served as a “training room” for theseexperts throughout the history of the industry. It is therefore no
exaggeration to say that this group is a national asset supporting productdevelopment, or monozukuri.

Note: Metalworking oils and fluids business: Metalworking oils and fluids are
manufactured and sold by Yushiro Chemical Industry Co., Ltd.
In overseas markets, metalworking oils and fluids are manufactured and sold by
the Company’s subsidiaries;
Yushiro Manufacturing America Inc., in the United States;
Yushiro do Brasil Ind. Quimica Ltda., in Brazil;
Yushiro Mexico S.A. de C.V. in Mexico;
Shanghai Yushiro Chemical Industry Co., Ltd., Qidong Yushiro Chemical
Industry Co., Ltd., and Guangzhou Yushiro Oil & Fluids Co., Ltd., in China;
Yushiro Malaysia Sdn. Bhd., in Malaysia;
Yushiro (Thailand) Co., Ltd., in Thailand;
Yushiro India Company Private Limited, in India;
P.T.Yushiro Indonesia in Indonesia;
and our affiliates;
Buhmwoo Chemical Industry Co., Ltd., and Buhmwoo Co., Ltd., in South Korea;
San-I Chemical Co., Ltd., in Taiwan.

4

CONSOLIDATED BALANCE SHEETS(Unaudited)
As of March 31, 2016 and 2015

U.S. dollars
in thousands(Note 5)

Millions of yen

Assets

2016

2015

2016

Current assets:
Cash and time deposits
Notes and accounts receivable–tradeMarketable securities
Inventories¥6,609¥6,010$58,654

5,802

5,694

51,495

340

340

3,025

3,265

3,678

28,984

Deferred tax assets

189

192

1,684

Other current assets

379

477

3,368

Allowance for doubtful accounts

(22)

(51)

(199)

16,565

16,342147,013

Buildings and structures

4,158

4,230

36,905

Machinery, equipment and vehicle

1,270

1,506

11,271

Total current assets
Fixed assets:

Tools, furnitures and fixtures
Land

270

2,220

4,170

46,045

Lease assets

23

32

208

Construction in progress

781

613

6,931

11,671

10,824

103,583

695

820

6,170

Investment in securities

3,120

3,872

27,689Investments in subsidiaries and affiliates

5,921

5,381

52,5495

7

46

Savings premium

601

559

5,334

Long-term time deposits

239

461

2,126

(Total property, plant and equipment)(Total intangible fixed assets)Long-term loans receivable

Deferred tax assets

43

23

383

Other assets

326

228

2,898

Allowance for doubtful accounts(Total investments and other assets)
Total fixed assets
Total assets

5

250
5,188

(21)

(15)

(190)

10,235

10,51890,83722,602

22,163

200,591¥39,168¥38,506$347,605

U.S. dollars
in thousands(Note 5)

Millions of yen

Liabilities and net assets
Current liabilities:
Notes and accounts payable–trade
Short–term borrowings
Accounts payable-otherAccrued corporate taxes
Accrued bonuses
Deferred tax liabilities
Other current liabilities
Total current liabilities

2016

2015

2016

¥3,532
1,714
882
241
553
7
771
7,703

¥3,760
1,773
657
174
506
5
845
7,723

$31,348
15,214
7,834
2,141
4,915
68
6,846
68,369

787

120

6,990

Net defined benefit liability
Accrued retirement allowances for directors
Deferred tax liabilities
Other long-term liabilities
Total long-term liabilities
Total liabilities

1,346
134
411
247
2,927
10,631

852
114
468
210
1,767
9,490

11,946
1,195
3,653
2,193
25,97994,349Net assets:
Shareholders' equity
Common stock
Capital surplus
Retained earnings
Treasury stock
Accumulated other comprehensive income
Net unrealized gains on securities
Currency translation adjustments
Remeasurements of defined benefit plans(Total minority interests)
Total net assets
Total liabilities and net assets

27,8244,249
4,052
19,573(50)(1,009)852(1,774)(87)
1,721
28,536¥39,168

26,3004,249
3,994
18,106
(50)
958
1,391
(328)
(104)
1,756
29,015¥38,506

246,937
37,71135,960173,710
(446)
8,956
7,563
(15,743)(776)
15,275
253,256$347,605

Long-term liabilities:
Long-term debt

6

CONSOLIDATED STATEMENTS OF INCOME(Unaudited)
For the Years Ended March 31, 2016 and 2015

U.S. dollars
in thousands(Note 5)

Millions of yen

2016

Net sales2016¥ 30,680¥29,061$ 272,280

21,390
9,290
7,120
2,169

20,934
8,127
6,557
1,569

189,833
82,446
63,192
19,253

219
604
132
41
137
2,947

221
602
199
32
38
2,521

1,947
5,369
1,178
365
1,221
26,161

541
–
35
–
–
201
345
–
2,976

–
70
136
5
1
–
–
0
2,731

4,801
–
314
–
–
1,788
3,069
–
26,419

707
(84)
622
2,354

629

6,276
(750)
5,525
20,893

Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income
Interest and dividend income
Equity in earnings of associated companies
Other income
Interest expenses
Other expenses
Ordinary income
Gain on bargain purchase
Gain from sale of fixed assets
Gain on sales of investment securities
Other extraordinary income
Loss on disposal of fixed assets
Loss on taxation of overseas subsidiary
Loss on revision of retirement benefit plan
Other extraordinary losses
Income before income taxes
Corporate, local income enterprise taxes
Deferred taxes
Total income taxes
Income before minority interests
Minority interests
Net income

2015

¥

82

711
2,020

(360)

(317)

(3,202)

1,993¥1,703$ 17,690

CONSOLIDATED STATEMENTS OF CASH FLOWS(Unaudited)
For the Years Ended March 31, 2016 and 2015

U.S. dollars
in thousands(Note 5)

Millions of yen

2016

7

2016

¥1,525$ 25,992

Cash flows from investing activities:

(92)

(923)

(818)

Cash flows from financing activities:

(923)

(504)

(8,198)

Effect of exchange rate changes on cash and cash equivalents

(284)

246

(2,526)

Net increase (decrease) in cash and cash equivalents

1,628

343

14,448Cash and cash equivalents at beginning of year

5,152

4,809

45,7286,780¥5,152$ 60,176

Cash and cash equivalents at end of year

¥

2015

2,928

Cash flows from operating activities:¥IMPORTANT POINTS FORMING THE BASIS OFCONSOLIDATED FINANCIAL STATEMENTS
1. Scope of Consolidation
The scope of consolidation includes 13 consolidated subsidiaries: Yushiro
Unso Co., Ltd., Yushiro General Service Co., Ltd., Japan Cee-Bee ChemicalCo., Ltd., Yushiro Manufacturing America Inc., Yushiro do Brasil Indústria
Química Ltda., Yushiro Mexico S.A. de C.V., Shanghai Yushiro Chemical
Industry Co., Ltd., Qidong Yushiro Chemical Industry Co., Ltd.,Guangzhou Yushiro Oil & Fluids Co., Ltd., Yushiro Malaysia Sdn. Bhd.,
Yushiro (Thailand) Co., Ltd., Yushiro India Company Private Limited., andP.T. Yushiro Indonesia. Japan Cee-Bee Chemical Co., Ltd is included in thescope of consolidation since we acquired its shares in the current
consolidated fiscal year.
2. Application of the Equity Method
The three affiliates, Buhmwoo Chemical Industry Co., Ltd., Buhmwoo Co.,
Ltd., and San-I Chemical Co., Ltd. are included in the scope of application
for the equity method.
3. Fiscal Years of the Consolidated Subsidiaries
The fiscal year-end of the overseas subsidiaries, with the exception of Yushiro
India Company Private Limited, is December 31. The fiscal year-end of
Yushiro India Company Private Limited is March 31. In preparing theconsolidated financial statements, results as of that date are used, provided
that necessary adjustments are made regarding material transactions
conducted between January 1 and March 31, the consolidation closing date.
4. Significant Accounting Policies(1) Valuation standard and methods for securities
In other securities, quoted securities are stated at market value at the
fiscal year-end. Unrealized gains/losses are included in net assets, andthe cost of securities sold is computed using the moving averagemethod.
Unquoted securities are accounting for on a cost basis using the moving
average method.
(2) Valuation standard and methods for inventories
The cost method by the aggregate monthly average method is adopted(i.e. the book value reduction method based on declines in profitability.
However, the last purchase price method is used for fuel out of
supplies.)(3) Depreciation method used for major depreciable assets
1. Tangible fixed assets (excluding leased assets)
The Company and its consolidated domestic subsidiaries use thedeclining-balance method (however, the straight-line method isadopted for the laboratory wing at the Kanagawa Technical Center,on which construction was completed in 1997 and for buildings
acquired on or after April 1, 1998 (with the exception of annexedfacilities)). Overseas consolidated subsidiaries generally use thestraight-line method. The main terms of useful service life are 3 to 50
years for buildings and structures and 2 to 20 years for other tangible
fixed assets.
2. Intangible fixed assets (excluding leased assets)
The amortization of intangible fixed assets is conducted by thestraight-line method. Computer software for internal use isamortized by the straight-line method over the estimated useful life
(5 years).
3. Leased assets
Assets leased under finance lease transactions without a transfer ofownership
The straight-line method in which the lease term is deemed as theuseful life, with a zero residual value, is used.

(4) Standards for conversion of foreign currency denominated assets andliabilities to Japanese yen
Debts and credits denominated in foreign currencies are converted toyen at the actual market exchange rate on the closing date. The effect of
exchange rate changes is recorded as gain or loss.
(5) Reserves
1. Allowance for doubtful accounts
The allowance for doubtful accounts is provided for possible bad
debts at the amount estimated based on the past debt experience fornormal receivables, plus uncollectible amounts determined byreference to the collectability of individual doubtful receivables.
2. Accrued bonuses
The accrued bonuses are provided at an estimated amount in order torecognize expenses for bonuses paid to employees over thecorresponding period.
3. Reserve for directors’ bonuses
At our subsidiaries Japan Cee-Bee Chemical Co., Ltd., Shanghai
Yushiro Chemical Industry Co., Ltd., and Qidong Yushiro Chemical
Industry Co., Ltd., the reserve for bonuses to directors is provided at
the amount estimated to be accrued for the consolidated balance
sheet date to prepare for such payments.
4. Accrued retirement allowances for directors
In order to prepare the reserve for retirement allowances for directors,
the Company and its subsidiaries Yushiro Unso., Ltd. and Yushiro
General Service Co., Ltd. recognized the retirement allowances for
directors at the estimated amount on the consolidated balance sheet
date based on the internal regulations.
(6) Accounting treatment for employees’ retirement benefits
Method of attributing expected retirement benefits to periods
In calculating retirement benefit obligations, the benefit formula
method is the method used for attributing expected retirement benefits
to periods up to the end of the consolidated fiscal year under review.
Treatment of actuarial difference and prior service cost
Prior service cost is posted as expenses on a straight-line basis over acertain period (10 years) within the remaining service years of
employees as of the time of occurrence.
For actuarial differences, the amount divided by a straight-line basis
over a certain period (10 years) within the remaining service years of
employees as of the time of accrual during each consolidated fiscal year
is posted as expenses from the consolidated fiscal year following the
fiscal year of occurrence.
(7) Scope of funds contained within the consolidated statements of cashflows
The funds (cash and cash equivalents) included in the consolidated
statements of cash flows consist of cash on hand, deposits that can bewithdrawn at any time, and short-term investments with maturities
within three months from the acquisition date that can be easilyliquidated and are exposed to only a minimal value fluctuation risk.
(8) Other significant matters for the preparation of consolidated financial
statements
Accounting treatment of consumption tax, etc.
Consumption tax, etc. is recorded on a tax exclusive basis.
5. The U.S. dollar amounts in the financial statements for the
fiscal year ended March 31, 2016, represent translation ofJapanese yen at the rate of ¥112.68=US$1.00.

4. Long-term prepaid expenses
The straight-line method is adopted.
8

FINANCIAL INDICATORS
Operating Income (yen in million)

Net Sales (yen in million)
2016
2015

1,569

2015

29,061

2014

2,169

2016

30,680

1,409

2014

26,8332013

24,217

2013

881

2012

23,482

2012

878

Total Assets, Net Assets (yen in million) , and ROE(%)

Net Income (yen in million)
1,993

2016

2016

1,703

2015

2015

1,495

2014

6.6

2013

693

2012

28,536

39,16829,01538,506

6.6

2014

1,052

2013

7.4

3.6
Total assets

31,234

22,8165.2

2012

28,962

20,690Net assets

34,85625,604ROE

CORPORATE DATA (as of March 31, 2016)34-16, 2-chome, Chidori, Ota-ku, Tokyo 146-8510, Japan
Phone: (03) 3750-6761 Fax: (03) 3750-1146 URL: http://www.yushiro.co.jp¥4,249 million
314
July 24, 1944
Tokyo, Nagoya and Osaka
Hokkaido, Tohoku, Kitakanto, Hamamatsu, Hokuriku, Fukuyama, Hiroshima and Kyushu

Head Office
Capital
Employees
Established
Branch Offices
Sales Offices

Directors and Auditors (as of June 24, 2016)
Eiichi Ogo
Yuji Kishi
Tatsuharu Hyakusoku

President
Managing Directors
Directors

Directors (Audit Committee Members)

Shinji Hamamoto

Katsuko Iizuka
Akitaka Nozue
Yutaka Yamaguchi
Toshio Yamazaki

Masanori Arisaka
Shingo Kikuchi
Hisao Katayama

STOCK INFORMATION (as of March 31, 2016)
Number of shares issued
Trading unit
Total number of shareholders
Stock listing
Securities code
Transfer agent for common stock
Independent certified public accountants
Main underwriter

13,900,065
100
5,483
First section, Tokyo Stock Exchange
5013
Mitsubishi UFJ Trust and Banking Corporation
Ernst & Young ShinNihon LLC
Nomura Securities Co., Ltd.

(millionsof yen )Market value of shares

25,00020,00015,00010,0005,000
02010/3 2011/3 2012/3 2013/3 2014/3 2015/3 2016/3

Stock pricesTerm2015.42015.52015.62015.72015.82015.9

High

1,670

1,609

1,594

1,484

1,544

1,477

1,420

1,498

Low

1,496

1,533

1,445

1,284

1,301

1,235

1,253

Trading volume

13,885

4,891

7,161

6,959

9,183

5,671

4,022

(Yen/share)(Yen/share)(Hundred of shares)

2015.10 2015.11 2015.12

2016.1

2016.2

2016.3

1,491

1,450

1,363

1,377

1,350

1,363

1,190

1,120

1,270

5,244

7,078

3,250

4,726

2,642