consolidated financial results for the fiscal year ended ... · fiscal year ended march 31, 2015...

Consolidated Financial Results For the Fiscal Year Ended March 31, 2015

<Japanese GAAP> May 12, 2015

Company Name: Nittobo (Registered as NITTO BOSEKI CO., LTD.)

Stock Code: 3110

Stock Exchange Listing: Tokyo Stock Exchange

URL: http://www.nittobo.co.jp/

Representative: Yoshitada Shiratori, Chief Executive Officer and Director

Contact: Yuichi Tsuji, Executive Officer, General Manager, Corporate Planning Department

Tel: +81-3-4582-5040

Scheduled date of Ordinary General Meeting of Shareholders: June 25, 2015

Scheduled date of filing annual securities report: June 25, 2015

Supplementary information for financial results: Available

Organization of financial results briefing: Yes (for institutional investors and analysts)

Scheduled date of commencement of dividend payment: June 26, 2015

(Yen in millions, rounded down)

1. Consolidated financial results for the fiscal year ended March 31, 2015 (April 1, 2014 to March 31, 2015)

(1) Consolidated results of operations

(Percentage figures represent year on year changes)

Net sales Operating income Ordinary income Net income

Million yen % Million yen % Million yen % Million yen %

Fiscal year ended March 31, 2015 90,223 6.0 8,885 37.2 8,658 33.0 4,588 18.9

Fiscal year ended March 31, 2014 85,104 3.7 6,476 (2.2) 6,511 1.5 3,858 35.9

Note: Comprehensive income

Fiscal year ended March 31, 2015 ......................... ¥10,675 million [61.5 %]

Fiscal year ended March 31, 2014 ......................... ¥6,609 million [23.8 %]

Net income per

share

Diluted net

income per share Return on equity

Ratio of ordinary

income to total

assets

Ratio of

operating income

to net sales

Yen Yen % % %

Fiscal year ended March 31, 2015 23.03 ― 6.8 6.1 9.8

Fiscal year ended March 31, 2014 19.36 ― 6.3 4.8 7.6

(Reference) Equity in earnings (losses) of affiliates

Fiscal year ended March 31, 2015…………. ¥41 million

Fiscal year ended March 31, 2014…………. ¥157 million

(2) Consolidated financial position

Total assets Net assets Equity ratio Net assets per share

Million yen Million yen % Yen

As of March 31, 2015 145,995 73,228 49.6 363.32

As of March 31, 2014 136,294 63,371 45.9 313.91

(Reference) Equity

As of March 31, 2015 ................. ¥72,385 million


(3) Consolidated status of cash flows

Net cash provided

by (used in)

operating activities

Net cash provided by

(used in) investing

activities

Net cash provided

by (used in)

financing activities

Cash and cash

equivalents at end of

period

Million yen Million yen Million yen Million yen

Fiscal year ended March 31, 2015 14,745 (5,318) (4,388) 15,481

Fiscal year ended March 31, 2014 12,152 (4,267) (4,351) 10,139

2. Dividends

Annual dividends Aggregate

amount

(Total)

Payout

ratio

(Consolidated)

Dividends/

net assets

(Consolidated)

First

quarter-end

Second

quarter-end

Third

quarter-end

Fiscal

year-end Total

Fiscal year ended March 31, 2014

Yen

―

Yen

0.00

Yen

―

Yen

5.00

Yen

5.00

Million yen

996

%

25.8

%

1.6

Fiscal year ended March 31, 2015 ― 0.00 ― 5.00 5.00 996 21.7 1.5

Fiscal year ending March 31, 2016

(Forecast) ― ― ― ― ―

―

Note: The forecasted dividend for fiscal year ending March 31, 2016 is undecided.

3. Consolidated forecast for the fiscal year ending March 31, 2016 (April 1, 2015 to March 31, 2016)


Net sales Operating income Ordinary income

Net income

attributable to owners

of the parent

Net income per share

Million yen % Million yen % Million yen % Million yen % Yen

First half 45,000 3.4 3,400 (16.1) 3,400 (13.9) 2,000 (10.0) 10.04

Full year 90,000 (0.2) 8,000 (10.0) 8,000 (7.6) 4,500 (1.9) 22.59

* Notes

(1) Changes in significant subsidiaries during the period

(Changes in specific subsidiaries accompanied by changes in the scope of consolidation): None

New: None

Excluded: None

(2) Changes in accounting policies, accounting estimates and retrospective restatements

(a) Changes in accounting policies due to revision of accounting standards: Yes

(b) Changes in accounting policies other than (a): No

(c) Changes in accounting estimates: No

(d) Retrospective restatements: No

(3) Number of shares outstanding (common stock)

(a) Number of shares outstanding at end of the period (including treasury stock)

As of March 31, 2015 247,677,560 shares As of March 31, 2014 247,677,560 shares

(b) Number of treasury stock at end of the period

As of March 31, 2015 48,446,317 shares As of March 31, 2014 48,390,553 shares

(c) Average number of shares outstanding

Fiscal year ended March 31,

2015 199,265,600 shares

Fiscal year ended March 31,

2014 199,262,104 shares

Summary of non-consolidated financial results (for reference)

Non-consolidated financial results for the fiscal year ended March 31, 2015 (April 1, 2014 to March 31, 2015)

(1) Non-consolidated results of operations


Net sales Operating income Ordinary income Net income

Million yen % Million yen % Million yen % Million yen %



Net income per

share

Diluted net

income per share

Yen Yen

Fiscal year ended March 31, 2015 28.43 ―

Fiscal year ended March 31, 2014 22.75 ―

(2) Non-consolidated financial position

Total assets Net assets Equity ratio Net assets per share

Million yen Million yen % Yen

As of March 31, 2015 112,921 58,131 51.5 291.78

As of March 31, 2014 102,810 49,067 47.7 246.22

(Reference) Equity



*Presentation of present status of audit procedures

These “Consolidated Financial Results” are not subject to audit procedures pursuant to the Financial Instruments and Exchange Act,

and as of the date of publication of these financial results, the audit procedures of the consolidated financial statements were in

progress.

*Explanation on the appropriate use of performance forecasts and other special notes

1. Forward-looking statements such as business prospects described in this material are based on information of which the Company

is currently in possession and certain assumptions that are considered to be reasonable, and the Company does not intend to

promise their achievement. Moreover, actual results may differ from these forecasts due to changes in business conditions and

other factors. For matters related to the forecasts, please see “1. Analysis of Operation Results and Financial Condition (1) Analysis

of operation results” on page 2 of “Supplementary Materials” of the Consolidated Financial Results.

2. Forecasts for dividends for the fiscal year ending March 31, 2016 shall be announced, upon consideration of performance trends

and other factors, as soon as they are available.

- 1 -

Index of Supplementary Materials

1. Analysis of Operation Results and Financial Condition ..............................................................................................................2

(1) Analysis of operation results ................................................................................................................................2

(2) Analysis of financial condition ............................................................................................................................3

(3) Fundamental policy concerning earnings distributions and dividend for the current and next fiscal year ...........3

2. Situation of the Corporate Group .................................................................................................................................................5

3. Management Policies ................................................................................................................................................................... 6

(1) Basic management policy .................................................................................................................................... 6

(2) Tasks to be addressed and medium- to long-term management strategies ........................................................... 6

4. Basic Views on Selection of Accounting Standards .................................................................................................................... 6

5. Consolidated Financial Statements .............................................................................................................................................. 7

(1) Consolidated Balance Sheets ...............................................................................................................................7

(2) Consolidated Statements of Income and Comprehensive Income ........................................................................9

(3) Consolidated Statements of Changes in Net Assets .............................................................................................11

(4) Consolidated Statements of Cash Flows ..............................................................................................................13

(5) Notes to Consolidated Financial Statements ........................................................................................................14

(Notes regarding the going concern assumption) ...........................................................................................14

(Changes in Accounting Policies) ..................................................................................................................14

(Segment information, etc.) ............................................................................................................................15

(Per share information)...................................................................................................................................19

(Significant subsequent events) ......................................................................................................................19

- 2 -

1. Analysis of Operation Results and Financial Condition

(1) Analysis of operation results

During the fiscal year ended March 31, 2015, although the Japanese economy continued a mild recovery, domestic demand

such as consumer spending and investment in housing showed weak movement partially. Although the U.S. economy had a

modest recovery base, the outlook for the global economy remained uncertain amid factors such as the slowdown of economic

growth in Asia. Moreover, the burden of fuel costs has also increased due to factors such as a weak yen.

In such an environment, the Nittobo Group continued to work on strengthening the base of business through activities such as

the further strengthening of production and marketing capabilities throughout the fiscal year under review.

As a result, consolidated net sales for the full year reached ¥90,223 million (up 6.0% from the same period of the previous year),

consolidated operating income was ¥8,885 million (up 37.2% from the same period of the previous year), consolidated ordinary

income was ¥8,658 million (up 33.0% from the same period of the previous year), and consolidated net income was ¥4,588

million (up 18.9% from the same period of the previous year).

Operation results by the Group’s business segments were as follows.

[Textiles Division]

As consumption of clothing continued to stagnate, the Group endeavored to reduce costs and develop new products.

As a result, sales in this segment decreased by 0.9% year-on-year to ¥5,971 million, and operating loss was ¥133 million.

[Glass Fiber Yarn Division]

The Group made an effort to expand sales of products in the electronic materials and reinforced plastic fields, focusing on high

value-added products.

As a result, sales in this segment increased by 24.6% year-on-year to ¥26,093 million, and operating income increased by

140.3% year-on-year to ¥2,905 million.

[Glass Fiber Cloth Division]

In response to strong demands for products related to smartphones and communication infrastructures, the Group worked to

secure stable supply of glass cloth products and such for use in the electronic materials and industrial materials.

As a result, sales in this segment increased by 5.1% year-on-year to ¥18,865 million, and operating income increased by 49.7%

year-on-year to ¥3,252 million.

[Glass Fiber for Industrial Materials Division]

The Group worked to expand sales of glass fiber and glass wool products for industrial and civil engineering use.

As a result, sales in this segment decreased by 4.5% year-on-year to ¥22,125 million, and operating income decreased by 40.5%


[Environment & Health Division]

The Group worked hard to extend the market for the products in the medical, beverage, and other business fields.

As a result, sales in this segment increased by 1.0% year-on-year to ¥15,766 million, and operating income increased by 12.0%


In Other Operations, efforts were made to ensure profit in the property management and services business.

<Outlook for fiscal year ending March 31, 2016>

As for the business environment for the coming years, although a gradual economic recovery trend is continuing in Japan,

uncertainty in the outlook of the world economy is expected to remain high due to factors such as stagnation in the European

economy and a slowdown in the Chinese economy.

In addition, our business environment is expected to remain difficult for us as we will be forced to be in even severer

competitions amidst further globalization of economies and an accelerating commoditization of existing products.

In such an environment, we will further step up our efforts to strengthen our production and marketing capabilities in order to

- 3 -

respond flexibly to the market and the diverse needs of our customers.

(2) Analysis of financial condition

1) Status of assets, liabilities and net assets

During the fiscal year ended March 31, 2015, NITTOBO ASCO Glass Fiber Co., Ltd., an affiliate accounted for under the

equity method, was made into the Company’s wholly-owned subsidiary by its additionally acquiring shares in the affiliate

(The subsidiary has changed its name to NITTOBO ASIA Glass Fiber Co., Ltd. as of May 30, 2014.).

Including the said change above, total assets were ¥145,995 million at the end of the fiscal year under review, an increase

of ¥9,701 million from the end of the previous fiscal year. This was mainly attributable to increases in cash and deposits and

investment securities.

Total liabilities were ¥72,767 million, a decrease of ¥156 million from the end of the previous fiscal year, primarily due to

a decrease in long-term loans payable.

Net assets stood at ¥73,228 million. The equity ratio rose 3.7 points from the end of the previous fiscal year to 49.6 %.

2) Status of cash flows

Net cash provided by operating activities was ¥14,745 million. This was mainly attributable to increases mainly due to

¥8,290 million in income before income taxes and ¥4,692 million in depreciation and amortization and a ¥1,614 million

decrease in inventories.

Net cash used in investing activities was ¥5,318 million, which was primarily due to the ¥2,790 million from the purchase

of noncurrent assets and ¥2,506 million from the purchase of shares of subsidiaries resulting in change in scope of

consolidation.

Net cash used in financing activities was ¥4,388 million. This was mainly attributable to ¥9,248 million of repayment of

long-term loans payable and ¥996 million of cash dividends paid.

As a result, cash and cash equivalents at the end of period totaled ¥15,481 million, an increase of ¥5,342 million from the

end of the previous fiscal year.

(Reference) Changes in cash flow-related indicators

Years ended March 31, 2011 2012 2013 2014 2015

Equity ratio (%) 42.4 42.0 44.8 45.9 49.6

Equity ratio based on market cap (%) 30.4 49.3 54.0 70.5 63.7

Interest-bearing debt to cash flow ratio (times) 3.1 7.6 5.8 2.9 2.3

Interest coverage ratio (times) 17.9 7.8 11.2 23.9 32.1

Notes: Equity ratio ....................................................... Equity / Total assets

Equity ratio based on market cap ...................... Market capitalization / Total assets

Interest-bearing debt to cash flow ratio ............. Interest bearing debt / Cash flow from operating activities

Interest coverage ratio ....................................... Cash flows from operating activities / Interest expenses

1. Each indicator is calculated based upon consolidated figures.

2. Market capitalization is calculated by multiplying the closing stock price at the balance sheet day of each fiscal year by

the number of shares outstanding (net of treasury stock) at the end of that fiscal year.

3. Cash flows from operating activities are based upon net cash provided by (used in) operating activities in the

consolidated statement of cash flows. Interest-bearing debt is the sum of all liabilities shown on the consolidated balance

sheet on which interest must be paid. Interest expenses are the amounts of interest expenses paid in the consolidated

statement of cash flows.

(3) Fundamental policy concerning earnings distributions and dividend for the current and next fiscal year

NITTO BOSEKI CO., LTD. recognizes that returning profits to its shareholders remains one of the paramount issues of

management. By giving full consideration to its profit trends and retained earnings, in order to strengthen its business base, the

Company is working to achieve stable dividend payouts over the long term.

Considering the fundamental dividend policy, and taking into account items stated above such as performance for the current

fiscal year, the Company intends to propose a year-end dividend of ¥5 per share at the Ordinary General Meeting of Shareholders

to be held on June 25, 2015.

- 4 -

Also in terms of the dividends for the following fiscal year and beyond, the Company intends to appropriately return profits to

its shareholders based on the above dividend policy. However, dividends for the following fiscal year remain undecided at the

current time.

- 5 -

2. Situation of the Corporate Group

The Nittobo Group (as of March 31, 2015) comprises NITTO BOSEKI CO., LTD. (the Company), its 30 subsidiaries and 4

affiliates. The Group engages in the Textiles business, the Glass Fiber business, the Environment & Health business, etc.

The following diagram represents the Nittobo Group in terms of its various business segments:

Textiles business (7 companies)

NIT

TO

BO

SE

KI C

O., L

TD

. (the C

om

pan

y)

Glass Fiber Yarn business (5 companies)

- Nittobo Interlining Co., Ltd. - Fuji Fiber Glass Co., Ltd.

- Nittobo Niigata Co., Ltd. - Nitto Glass Fiber Manufacturing

Co., Ltd.

- Bunkyo Seiren Co., Ltd. - NITTOBO ASIA Glass Fiber Co., Ltd. - Nittobo (China) Co., Ltd.

Others (3 companies) Others (2 companies)

Glass Fiber Cloth business

(5 companies) Environment & Health business (5 companies)

- Nitto Glasstex Co., Ltd.

- Nittobo Medical Co., Ltd. - Nittobo Macao Glass Weaving

Co., Ltd.

- Nitto Beverage Co., Ltd. Others (3 companies)

- Nittobo Acoustic Engineering Co.,

Ltd.

- Nittobo Ecology Co., Ltd.

- Nittobo America Inc.

Other Operations (4 companies)

Glass Fiber for Industrial Materials

business (8 companies)

- Sansei Kogyo Co., Ltd. - Paramount Glass Manufacturing

Co., Ltd.

- Nittobo Allied Service Co., Ltd. - Nittobo Techno Co., Ltd.

Others (2 companies) Others (6 companies)

Notes: “-” indicates consolidated subsidiaries.

Purchase finished products

Outsource operations

Purchase raw materials/ finished products

Purchase finished products

Sell finished products

Sell raw materials, Purchase finished products

Consign processing

Sell raw materials, purchase raw materials/ finished products

Sell raw materials, purchase finished products

Contract work

Purchase raw materials Sell raw materials, purchase raw materials/ finished products

Purchase raw materials/ finished products

Outsource operations

- 6 -

3. Management Policies

(1) Basic management policy

True to its management philosophy, the Nittobo Group, “as a corporate citizen contributing to healthy and comfortable

lifestyles, endeavors to raise its value within society through consistent effort to realize a more affluent society for everyone.” By

responding to the demands of the times and continuously creating and providing new value that would be of use to society, the

Group aims to share in the joy and fulfillment with its stakeholders including its shareholders, investors, the government and the

local communities, while at the same time enhance its enterprise value.

(2) Tasks to be addressed and medium- to long-term management strategies

The Nittobo Group has made a medium range business plan for the three-year period from April 2014 to March 2017 and has

been endeavoring to execute our plans steadily. Our business environment for the coming years is expected to remain difficult for

us as we will be forced to be in even severer competitions amidst further globalization of economies and an accelerating

commoditization of existing products.

In such an environment, we will aim to carry on our operations so that we will be continuously trusted by providing stable

supplies of products and services that meet the needs of clients and societies.

4. Basic Views on Selection of Accounting Standards

The Nittobo Group has been preparing consolidated financial statements in accordance with the Japanese GAAP and our policy

is to continue to prepare them in accordance with it.

As for the adoption of International Financial Reporting Standards (IFRS), it is our policy to take appropriate actions taking into

account future circumstances within Japan and overseas.

- 7 -

5. Consolidated Financial Statements

(1) Consolidated Balance Sheets

(Millions of yen)

As of March 31, 2014 As of March 31, 2015

Assets

Current assets

Cash and deposits 10,350 15,722

Notes and accounts receivable-trade 25,489 26,399

Merchandise and finished goods 6,160 5,788

Work in process 2,921 2,693

Raw materials and supplies 14,602 14,502

Deferred tax assets 1,710 2,279

Other 2,000 2,006

Allowance for doubtful accounts (23) (28)

Total current assets 63,211 69,363

Noncurrent assets

Property, plant and equipment

Buildings and structures, net 13,575 14,126

Machinery, equipment and vehicles, net 6,158 8,501

Land 17,688 18,696

Lease assets, net 3,967 4,784

Construction in progress 211 883

Other, net 551 609

Total property, plant and equipment 42,152 47,601

Intangible assets 2,134 2,112

Investments and other assets

Investment securities 20,179 23,282

Deferred tax assets 7,144 2,019

Other 1,515 1,659

Allowance for doubtful accounts (44) (44)

Total investments and other assets 28,795 26,917

Total noncurrent assets 73,082 76,631

Total assets 136,294 145,995

- 8 -

(Millions of yen)

As of March 31, 2014 As of March 31, 2015

Liabilities

Current liabilities

Notes and accounts payable-trade 8,759 8,759

Short-term loans payable 4,255 4,953

Current portion of long-term loans payable 8,921 9,289

Lease obligations 573 669

Income taxes payable 983 510

Provision for bonuses 1,322 1,342

Provision for business structure improvement 180 ―

Other 5,201 7,962

Total current liabilities 30,197 33,487

Noncurrent liabilities

Long-term loans payable 17,648 14,311

Lease obligations 4,009 4,792

Provision for repairs 4,862 4,575

Net defined benefit liability 14,546 13,937

Other 1,657 1,662

Total noncurrent liabilities 42,725 39,279

Total liabilities 72,923 72,767

Net assets

Shareholders’ equity

Capital stock 19,699 19,699

Capital surplus 23,107 23,107

Retained earnings 27,082 30,893

Treasury stock (8,915) (8,939)

Total shareholders’ equity 60,973 64,760

Accumulated other comprehensive income

Valuation difference on available-for-sale securities 3,993 8,025

Foreign currency translation adjustment (57) 1,708

Remeasurements of defined benefit plans (2,350) (2,109)

Total accumulated other comprehensive income 1,585 7,624

Minority interests 812 843

Total net assets 63,371 73,228

Total liabilities and net assets 136,294 145,995

- 9 -

(2) Consolidated Statements of Income and Comprehensive Income

(Consolidated Statements of Income)

(Millions of yen)

For the fiscal year ended

March 31, 2014


March 31, 2015

Net sales 85,104 90,223

Cost of sales 60,739 62,632

Gross profit 24,364 27,590

Selling, general and administrative expenses 17,887 18,705

Operating income 6,476 8,885

Non-operating income

Interest income 19 16

Dividends income 451 442

Equity in earnings of affiliates 157 41

Rent income 84 84

Foreign exchange gains 281 518

Other 533 276

Total non-operating income 1,527 1,380

Non-operating expenses

Interest expenses 489 440

Amortization of net retirement benefit obligation at transition 447 447

Other 556 719

Total non-operating expenses 1,493 1,607

Ordinary income 6,511 8,658

Extraordinary income

Gain on sales of investment securities 38 ―

Reversal of provision for repairs ― 788

Total extraordinary income 38 788

Extraordinary losses

Loss on disposal of noncurrent assets 134 678

Loss on step acquisitions ― 417

Loss on disaster 127 ―

Other ― 59

Total extraordinary losses 262 1,156

Income before income taxes and minority interests 6,287 8,290

Income taxes-current 1,942 1,154

Income taxes-deferred 443 2,499

Total income taxes 2,385 3,653

Income before minority interests 3,901 4,637

Minority interests in income 43 48

Net income 3,858 4,588

- 10 -

(Consolidated Statements of Comprehensive Income)

(Millions of yen)


March 31, 2014


March 31, 2015

Income before minority interests 3,901 4,637

Other comprehensive income

Valuation difference on available-for-sale securities 1,279 4,031

Foreign currency translation adjustment 1,058 1,388

Remeasurements of defined benefit plans, net of tax ― 241

Share of other comprehensive income of associates accounted for using

equity method 369 377

Total other comprehensive income 2,707 6,038

Comprehensive income 6,609 10,675

Comprehensive income attributable to

Comprehensive income attributable to owners of the parent 6,565 10,627

Comprehensive income attributable to minority interests 43 48

- 11 -

(3) Consolidated Statements of Changes in Net Assets

For the fiscal year ended March 31, 2014 (April 1, 2013 to March 31, 2014)

(Millions of yen)


Capital

stock

Capital

surplus

Retained

earnings

Treasury

stock

Total

shareholders’

equity

Balance at the beginning of

current period 19,699 23,062 24,220 (8,886) 58,095

Cumulative effects of

changes in accounting

policies

―

Restated balance 19,699 23,062 24,220 (8,886) 58,095

Changes of items during

the period

Dividends from surplus (996) (996)


Increase by share exchanges 45 22 67

Purchase of treasury stock (51) (51)

Net changes of items other

than shareholders’ equity

Total changes of items

during the period ― 45 2,861 (29) 2,877

Balance at the end of

current period 19,699 23,107 27,082 (8,915) 60,973


Minority

interests

Total net

assets

Valuation

difference on

available-for-

sale securities

Foreign

currency

translation

adjustment

Remeasurements

of defined

benefit plans

Total

accumulated

other

comprehensive

income


current period 2,714 (1,485) ― 1,228 811 60,135



policies

―

Restated balance 2,714 (1,485) ― 1,228 811 60,135


the period

Dividends from surplus (996)

Net income 3,858

Increase by share exchanges 67

Purchase of treasury stock (51)


than shareholders’ equity 1,279 1,427 (2,350) 356 1 357


during the period 1,279 1,427 (2,350) 356 1 3,235


current period 3,993 (57) (2,350) 1,585 812 63,371

- 12 -

For the fiscal year ended March 31, 2015 (April 1, 2014 to March 31, 2015)

(Millions of yen)


Capital

stock

Capital

surplus

Retained

earnings

Treasury

stock

Total

shareholders’

equity


current period 19,699 23,107 27,082 (8,915) 60,973



policies

219 219

Restated balance 19,699 23,107 27,301 (8,915) 61,192


the period

Dividends from surplus (996) (996)


Purchase of treasury stock (24) (24)


than shareholders’ equity


during the period ― ― 3,592 (24) 3,568


current period 19,699 23,107 30,893 (8,939) 64,760


Minority

interests

Total net

assets

Valuation

difference on

available-for-

sale securities

Foreign

currency

translation

adjustment

Remeasurements

of defined

benefit plans

Total

accumulated

other

comprehensive

income


current period 3,993 (57) (2,350) 1,585 812 63,371



policies

219

Restated balance 3,993 (57) (2,350) 1,585 812 63,590


the period

Dividends from surplus (996)

Net income 4,588

Purchase of treasury stock (24)


than shareholders’ equity 4,032 1,765 241 6,039 30 6,070


during the period 4,032 1,765 241 6,039 30 9,638


current period 8,025 1,708 (2,109) 7,624 843 73,228

- 13 -

(4) Consolidated Statements of Cash Flows

(Millions of yen)


March 31, 2014


March 31, 2015

Net cash provided by (used in) operating activities

Income before income taxes and minority interests 6,287 8,290

Depreciation and amortization 4,713 4,692

Increase (decrease) in net defined benefit liability 18 108

Increase (decrease) in provision for repairs (58) (287)

Interest and dividends income (470) (458)

Interest expenses 489 440

Loss (gain) on sales and valuation of investment securities (38) ―

Equity in (earnings) losses of affiliates (157) (41)

Loss (gain) on sales and retirement of noncurrent assets 134 678

Loss (gain) on step acquisitions ― 417

Decrease (increase) in notes and accounts receivable-trade 2,661 714

Decrease (increase) in inventories 3,054 1,614

Increase (decrease) in notes and accounts payable-trade (1,273) (352)

Other, net (896) 948

Subtotal 14,464 16,765

Interest and dividends income received 637 463

Interest expenses paid (508) (459)

Income taxes paid (2,441) (2,023)

Net cash provided by (used in) operating activities 12,152 14,745

Net cash provided by (used in) investing activities

Purchase of noncurrent assets (3,060) (2,790)

Purchase of investment securities (1,252) (1)

Purchase of shares of subsidiaries resulting in change in scope of

consolidation ― (2,506)

Other, net 45 (20)

Net cash provided by (used in) investing activities (4,267) (5,318)

Net cash provided by (used in) financing activities

Net increase (decrease) in short-term loans payable (2,530) (285)

Proceeds from long-term loans payable 8,220 6,280

Repayment of long-term loans payable (8,622) (9,248)

Repayments of finance lease obligations (360) (435)

Cash dividends paid (996) (996)

Other, net (61) 297

Net cash provided by (used in) financing activities (4,351) (4,388)

Effect of exchange rate change on cash and cash equivalents 322 303

Net increase (decrease) in cash and cash equivalents 3,855 5,342

Cash and cash equivalents at beginning of period 6,283 10,139

Cash and cash equivalents at end of period 10,139 15,481

- 14 -

(5) Notes to Consolidated Financial Statements

(Notes regarding the going concern assumption)

Not Applicable

(Changes in Accounting Policies)

“Accounting Standard for Retirement Benefits” (ASBJ Statement No. 26, May 17, 2012, hereinafter “Retirement Benefits

Accounting Standard”) and “Guidance on Accounting Standard for Retirement Benefits” (ASBJ Guidance No. 25, March 26,

2015, hereinafter “Retirement Benefits Guidance”) are fully adopted applying the main clause of Article 35 of Retirement

Benefits Accounting Standard and Article 67 of Retirement Benefits Guidance from the fiscal year ended March 31, 2015.

Under the new policy, calculation methods of retirement benefit obligation and service cost were revised so that period

corresponding method of the estimated amount of retirement benefits was changed to benefit formula standard from fixed

amount standard, and method to decide discount rate was changed to using multiple discount rates defined for estimated

premium payment periods of retirement benefits from using average period until estimated payment date of retirement benefits

as term of bond on which based discount rate is decided.

In accordance with transitional handling as stipulated in Article 37 of Retirement Benefits Accounting Standard, the effect of

the changes in calculation methods of retirement benefit obligation and service cost is recognized as retained earnings at the

beginning of the fiscal year ended March 31, 2015. The effect of the changes is immaterial.

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(Segment information, etc.)

(Segment information)

1. Overview of reporting segments

The Nittobo Group’s reporting segments are components of the Group for which separate financial information is available,

and that are evaluated regularly by the corporate manager in order to determine the allocation of resources and in assessing

performance.

The Nittobo Group basically operates through the five divisions of Textiles, Glass Fiber Yarn, Glass Fiber Cloth, Glass Fiber

for Industrial Materials and Environment & Health, and each division formulates comprehensive domestic and overseas

strategies and conducts their business activities accordingly.

Consequently, the Nittobo Group has the five reporting segments – the “Textiles Division,” the “Glass Fiber Yarn Division,”

the “Glass Fiber Cloth Division,” the “Glass Fiber for Industrial Materials Division” and the “Environment & Health Division.”

“Textiles Division” engages in the manufacture and sales of textiles products (core spun yarn, stretch products, interlining

and other finished products, etc.). “Glass Fiber Yarn Division” engages in the manufacture and sales of glass raw fiber products

(yarn, roving, chopped strands, etc.). “Glass Fiber Cloth Division” engages in the manufacture and sales of glass fiber

functional products (glass cloth, etc.). “Glass Fiber for Industrial Materials Division” engages in the manufacture and sales of

glass fiber products for use in industrial materials and the manufacture and sales of glass wool products (for use in thermal

insulation materials). “Environment & Health Division” engages in the manufacture and sales of reagents for in vitro

diagnostics, specialty chemical products and soft drinks; the sales of rock wool products; the production and sales of

agricultural products; the design, supervision and contracting of acoustic engineering; and the management of environmental

improvement.

2. The methods of calculating the amounts of net sales, income (loss), assets and other items by reporting segment

The accounting methods for the reporting segments are, in general, the same as those used to prepare consolidated financial

statements. Income of each reporting segment is an amount based on operating income. Intersegment sales or transfers are

based on prevailing market prices.

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3. Information on net sales, income (loss), assets and other items by reporting segment

Previous fiscal year (April 1, 2013 to March 31, 2014)

(Millions of yen)

Textiles Glass Fiber

Yarn

Glass Fiber

Cloth

Glass Fiber

for Industrial

Materials

Environment

& Health

Others

(Note) 1

Adjustment

(Note) 2

Operating

income

reported in

consolidated

statements of

income

(Note) 3

Net sales

Net sales to

external

customers

6,027 20,936 17,943 23,169 15,606 1,420 ― 85,104

Intersegment

sales or

transfers

7 5,877 3,519 2,589 314 255 (12,564) ―

Total 6,034 26,813 21,463 25,759 15,921 1,676 (12,564) 85,104

Segment income

(loss) (169) 1,209 2,172 1,841 1,939 246 (764) 6,476

Segment assets 10,702 38,837 14,602 18,727 15,084 7,211 31,128 136,294

Other items

Depreciation

and

amortization

251 1,840 780 933 407 134 365 4,713

Investment in

affiliates

accounted for

under the

equity method

― 2,517 ― ― ― ― ― 2,517

Increase in

property, plant

and equipment

and intangible

assets

121 3,163 193 306 263 2 1,053 5,104

Notes: 1. “Others” consist of business segments not included in the reporting segments such as the property management and

services.

2. “Adjustment” is described below.

(1) The ¥764 million loss under Adjustment consists of corporate expenses that are not allocated to specific

reporting segments.

(2) The ¥31,128 million for Segment assets consists of surplus operating capital and assets relating to the

administrative divisions of the Company that do not belong to specific reporting segments.

(3) The ¥1,053 million for Increase in property, plant and equipment and intangible assets consists of corporate

capital investment.

3. “Segment income (loss)” has been adjusted to the operating income reported in the consolidated statement of

income.

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Current fiscal year (April 1, 2014 to March 31, 2015)

(Millions of yen)

Textiles Glass Fiber

Yarn

Glass Fiber

Cloth

Glass Fiber

for Industrial

Materials

Environment

& Health

Others

(Note) 1

Adjustment

(Note) 2

Operating

income

reported in

consolidated

statements of

income

(Note) 3

Net sales

Net sales to

external

customers

5,971 26,093 18,865 22,125 15,766 1,401 ― 90,223

Intersegment

sales or

transfers

9 6,864 3,965 2,507 380 225 (13,951) ―

Total 5,980 32,957 22,830 24,632 16,146 1,627 (13,951) 90,223

Segment income

(loss) (133) 2,905 3,252 1,095 2,172 253 (661) 8,885

Segment assets 10,800 43,369 13,773 18,512 12,360 7,097 40,081 145,995

Other items

Depreciation

and

amortization

197 2,141 593 801 369 121 467 4,692

Increase in

property, plant

and equipment

and intangible

assets

59 2,207 770 649 759 8 359 4,814

Notes: 1. “Others” consist of business segments not included in the reporting segments such as the property management and

services.

2. “Adjustment” is described below.

(1) The ¥661 million loss under Adjustment consists of corporate expenses that are not allocated to specific

reporting segments.

(2) The ¥40,081 million for Segment assets consists of surplus operating capital and assets relating to the

administrative divisions of the Company that do not belong to specific reporting segments.

(3) The ¥359 million for Increase in property, plant and equipment and intangible assets consists of corporate

capital investment.

3. “Segment income (loss)” has been adjusted to the operating income reported in the consolidated statement of

income.

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(Related information)

Previous fiscal year (April 1, 2013 to March 31, 2014)

1. Information by product and service

Information by product and service is omitted, because similar information is provided in “Segment information.”

2. Information by region

Net sales

(Millions of yen)

Japan Asia North America Europe Others Total

65,337 15,840 2,865 1,049 11 85,104

Note: Net sales are based on the customer’s location and are divided by country and region.

Current fiscal year (April 1, 2014 to March 31, 2015)

1. Information by product and service

Information by product and service is omitted, because similar information is provided in “Segment information.”

2. Information by region

Net sales

(Millions of yen)

Japan Asia North America Europe Others Total

63,576 20,325 4,394 1,868 58 90,223

Note: Net sales are based on the customer’s location and are divided by country and region.

(Per share information)

Previous fiscal year

(April 1, 2013 to March 31, 2014)

Current fiscal year

(April 1, 2014 to March 31, 2015)

Net assets per share ¥313.91 ¥363.32

Net income per share ¥19.36 ¥23.03

Notes: 1. Diluted net income per share is not presented, since there is no dilutive stock.

2. The basis for calculation of net income per share is as follows:

Previous fiscal year

(April 1, 2013 to March 31, 2014)

Current fiscal year

(April 1, 2014 to March 31, 2015)

Net income (Millions of yen) 3,858 4,588

Amount not attributed to common shareholders

(Millions of yen) ― ―

Net income related to common shares

(Millions of yen) 3,858 4,588

Average outstanding shares of common stock

during the fiscal year (Thousand shares) 199,262 199,265

(Significant subsequent events)

Not Applicable

consolidated financial results for the fiscal year ended ... · fiscal year ended march 31, 2015...

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