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
As of March 31, 2014 ................. ¥62,558 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)
(Percentage figures represent year on year changes)
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
(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 52,249 6.7 3,654 89.6 7,572 34.6 5,664 24.9
Fiscal year ended March 31, 2014 48,988 1.4 1,926 35.8 5,624 71.4 4,533 233.6
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
As of March 31, 2015 ................. ¥58,131 million
As of March 31, 2014 ................. ¥49,067 million
*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
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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%
year-on-year to ¥1,095 million.
[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%
year-on-year to ¥2,172 million.
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
For the fiscal year ended
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)
For the fiscal year ended
March 31, 2014
For the fiscal year ended
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)
Shareholders’ equity
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)
Net income 3,858 3,858
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
Accumulated other comprehensive income
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
Balance at the beginning of
current period 2,714 (1,485) ― 1,228 811 60,135
Cumulative effects of
changes in accounting
policies
―
Restated balance 2,714 (1,485) ― 1,228 811 60,135
Changes of items during
the period
Dividends from surplus (996)
Net income 3,858
Increase by share exchanges 67
Purchase of treasury stock (51)
Net changes of items other
than shareholders’ equity 1,279 1,427 (2,350) 356 1 357
Total changes of items
during the period 1,279 1,427 (2,350) 356 1 3,235
Balance at the end of
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)
Shareholders’ equity
Capital
stock
Capital
surplus
Retained
earnings
Treasury
stock
Total
shareholders’
equity
Balance at the beginning of
current period 19,699 23,107 27,082 (8,915) 60,973
Cumulative effects of
changes in accounting
policies
219 219
Restated balance 19,699 23,107 27,301 (8,915) 61,192
Changes of items during
the period
Dividends from surplus (996) (996)
Net income 4,588 4,588
Purchase of treasury stock (24) (24)
Net changes of items other
than shareholders’ equity
Total changes of items
during the period ― ― 3,592 (24) 3,568
Balance at the end of
current period 19,699 23,107 30,893 (8,939) 64,760
Accumulated other comprehensive income
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
Balance at the beginning of
current period 3,993 (57) (2,350) 1,585 812 63,371
Cumulative effects of
changes in accounting
policies
219
Restated balance 3,993 (57) (2,350) 1,585 812 63,590
Changes of items during
the period
Dividends from surplus (996)
Net income 4,588
Purchase of treasury stock (24)
Net changes of items other
than shareholders’ equity 4,032 1,765 241 6,039 30 6,070
Total changes of items
during the period 4,032 1,765 241 6,039 30 9,638
Balance at the end of
current period 8,025 1,708 (2,109) 7,624 843 73,228
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(4) Consolidated Statements of Cash Flows
(Millions of yen)
For the fiscal year ended
March 31, 2014
For the fiscal year ended
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
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(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