Member of Financial Accounting Standards Foundation NOK CORPORATION and Consolidated Subsidiaries Consolidated Financial Results for Fiscal Year Ended March 31, 2013 (Japanese GAAP) Date: May 10, 2013 Company name: NOK Corporation Listed on the Tokyo Stock Exchange Securities code: 7240 URL http://www.nok.co.jp Representative: Masato Tsuru Telephone: +81-3-3434-1736 Chairman of the Board and President Inquiries: Takashi Kamata Department Manager Corporate Planning Department Date of general shareholders meeting (as planned): June 26, 2013 Annual securities report filing date (as planned): June 26, 2013 Dividend payable date (as planned): June 27, 2013 Supplemental material of annual results: None Convening briefing of annual results: Yes (Fractions are rounded down to the nearest million yen.) 1. Consolidated Financial Results for Fiscal 2012 (April 1, 2012 to March 31, 2013) (1) Consolidated operating results (Percentage figures represent year-on-year changes.) Net sales Operating income Ordinary income Net income million yen % million yen % million yen % million yen % 540,859 9.2 26,519 (11.6) 35,202 1.5 22,216 38.7 495,251 (0.7) 30,012 (14.6) 34,694 7.0 16,016 (4.0) Note: Comprehensive income: 51,171 million yen, 301.3 % (as of March 31, 2013); 12,752 million yen, 28.4% (as of March 31, 2012) Net income per share Diluted net income per share Net income to Ordinary income to Operating income to shareholders equity ratio total assets ratio net sales ratio yen yen % % % 129.06 8.2 6.2 4.9 93.22 6.5 6.6 6.1 Reference: Investment profit on equity method: 3,146 million yen (as of March 31, 2013); 3,336 million yen (as of March 31, 2012) (2) Consolidated financial positions Total assets Net assets Capital adequacy ratio Net assets per share million yen million yen % yen 601,958 320,217 48.8 1,702.96 529,431 272,174 47.2 1,453.37 Reference: Owner s equity: 293,458 million yen (as of March 31, 2013); 249,969 million yen (as of March 31, 2012) (3) Consolidated cash flows Cash flows from Cash flows from investing Cash flows from financing operating activities activities activities Cash and equivalents, end of period million yen million yen million yen million yen 35,740 (53,395) 4,644 65,266 32,026 (28,826) (12,640) 74,806 2. Dividends Dividend per share Ratio of total amount of Payout ratio First Second Third Fiscal year Total dividend paid dividends to net assets Total (Consolidated) quarter quarter quarter end (Consolidated) yen yen yen yen yen million yen % % 7.50 7.50 15.00 2,595 16.1 1.0 10.00 10.00 20.00 3,461 15.5 1.3 FY 2013 (Projection) 10.00 10.00 20.00 18.5 3. Consolidated Forecasts for Fiscal 2013 (April 1, 2013 to March 31, 2014) (Percentage figures represent year-on-year changes.) Net sales Operating income Ordinary income Net income Net income per share million yen % million yen % million yen % million yen % yen Half year 259,000 (0.7) 5,800 (59.0) 7,000 (50.9) 3,800 (53.6) 22.08 Full year 580,000 7.2 29,700 12.0 32,600 (7.4) 18,600 (16.3) 108.05
* Notes (1) Material changes in subsidiaries during this period (Changes in scope of consolidations resulting from change is subsidiaries): None (2) Changes in accounting policies and accounting estimates, retrospective restatement i) Changes in accounting policies based on revisions of accounting standard: None ii) Changes in accounting policies other than ones based on revisions of accounting standard: None iii) Changes in accounting estimates: None iv) Retrospective restatement: None (3) Number of issued and outstanding shares (common stock) i) Number of issued and outstanding shares at the end of fiscal year (including treasury stock) 173,138,537 shares 173,138,537 shares ii) Number of treasury stock at the end of fiscal year 815,921 shares 1,145,524 shares iii) Average number of shares 172,140,252 shares 171,820,378 shares (Reference) Outline of individual financial results Individual results for the Fiscal 2012 (April 1, 2012 to March 31, 2013) (1) Individual operating results (Percentage figures represent year-on-year changes.) Net sales Operating income Ordinary income Net income million yen % million yen % million yen % million yen % 228,327 0.2 11,468 (24.4) 13,088 (23.0) (6,650) 227,822 (0.4) 15,171 26.1 16,987 29.4 9,586 17.7 Net income per share Diluted net income per share yen yen (38.60) 55.74 (2) Individual financial positions Total assets Net assets Capital adequacy ratio Net assets per share million yen million yen % yen 283,215 132,049 46.6 765.64 301,946 134,872 44.7 783.51 (Reference) Owner s equity: 132,049 million yen (as of March 31, 2013); 134,872 million yen (as of March 31, 2012) * Audit procedures This summary of the consolidated financial results for is not in conformity with the audit procedures as provided for under the Financial Instruments and Exchange Act. As of the date on which this summary of the consolidated financial results for was released as a flash report, the above-mentioned audit procedures were being implemented. * Proper use of the projections for financial results, and other important matters: Forward-looking statements such as projections of future financial results and other descriptions concerning our future business included in this document are based on currently available information and certain assumptions that we consider to be reasonable, and no representation or warranty is given with regard to the realization of such projections, etc. Actual financial results may differ significantly due to various factors. For assumptions, etc., used as the basis for the projections for financial results, please see 1. Analysis of Operating Results and Financial Position (1) Analysis of Operating Results on page 2 of the attached document.
Table of Contents of Attached Document 1. Analysis of Operating Results and Financial Position... 2 (1) Analysis of Operating Results... 2 (2) Analysis of Financial Position... 3 (3) Principal Policy on Dividends and Dividend Distribution for this Fiscal Year and the Next Fiscal Year... 4 2. Management Policy... 5 (1) Principal Management Policy... 5 (2) Medium- to Long-Term Management Strategies and Challenges... 5 3. Consolidated Financial Statements... 6 (1) Consolidated Balance Sheet... 6 (2) Consolidated Income Statement and Consolidated Comprehensive Income Statement... 8 Consolidated Income Statement... 8 Consolidated Comprehensive Income Statement... 9 (3) Consolidated Statement of Changes in Net Assets... 10 (4) Consolidated Cash Flow Statement... 12 (5) Notes Concerning the Consolidated Financial Statements... 13 (Notes Concerning the Going Concern Assumption)... 13 (Additional Information)... 13 (Segment Information)... 14 (Per Share Information)... 16 (Significant Subsequent Events)... 16 1
1. Analysis of Operating Results and Financial Position (1) Analysis of Operating Results The Japanese economy was robust at the beginning of the current consolidated fiscal year due to demand from restoration activities and the positive effects from government policies including a subsidy for eco-friendly car purchases, but receded on the back of several factors including a decline in exports due to the longstanding appreciation of the yen and the deterioration of Japan-China relations. However, there have also been recent positive signs in the economy including a rapid weakening of the yen and an improvement in business confidence on the back of expectations toward government economic stimulus measures. In the automobile industry, the first half of the fiscal year was robust due to measures to stimulate car sales with a government subsidy for eco-friendly car purchases as well as the positive effects from the launch of new models. However, the second half of the fiscal year saw a decline in domestic new car demand owing to the termination of the subsidy for eco-friendly car purchases as well as a drop in demand for Japanese cars in China on the back of the deterioration of Japan-China relations among other factors. At the same time, demand in North America and Southeast Asia remained robust throughout the fiscal year. In the electronic equipment industry, while shipments of smartphones and tablet terminals were strong, demand for PCs, hard disc drives, and compact digital cameras dropped due to the shift in demand towards smartphones and tablet terminals. In the office machine industry, demand for both printers and copiers slowed in Japan and in overseas markets. Under these circumstances, the operating results of the Group by business segment were as follows: In the seal business, while sales to automobile manufacturers were strong in the first half of the current fiscal year, sales to Japanese automobile manufacturers in China dropped due to the deterioration of Japan-China relations. Domestic sales also decreased on the back of a decline in new car demand following the termination of the subsidy for eco-friendly car purchases. Meanwhile, sales increased throughout the fiscal year due to strong vehicle production in North America and Southeast Asia. Sales to manufacturers of general industrial machinery fell owing to an ongoing heavy slump in demand for construction machinery mainly in the Chinese market. As a result, sales decreased to 257,974 million yen (down 0.5% year on year). Operating income declined to 21,119 million yen (down 19.7% year on year) due to an increase in expenses such as personnel costs in emerging nations. In the electronic device product business, sales increased owing to strong demand for smartphones and tablet terminals as well as robust demand for digital single-lens reflex (DSLR) cameras. As a result, sales increased to 244,419 million yen (up 25.9% year on year). Due to a delayed yield improvement in new mass production lines and a rise in administrative expenses and other factors, operating income ended at 4,825 million yen (up 32.8% year on year), despite earnings improvement factors such as an increase in sales and favorable exchange rate fluctuations. In the roll business, sales dropped on the back of a decline in demand for both printers and copiers in the domestic market and in overseas markets as well as for replacement parts due to a rise in durability. As a result, sales declined to 26,739 million yen (down 8.1% year on year). Operating loss improved to 12 million yen (compared to an operating loss of 775 million yen for the previous consolidated fiscal year) owing to a reduction in expenses, etc. In order to revive the business, the Group is accepting applications for voluntary retirement at subsidiaries and is making efforts to fundamentally improve management as well as to ensure an early recovery of business results. In other businesses including specialty lubricants, sales dropped to 11,726 million yen (down 9.0% year on year). Operating income plunged to 559 million yen (down 35.6% year on year). In summary, the Group s operating results for the current consolidated fiscal year were as follows: Net sales totaled 540,859 million yen (up 9.2% year on year); operating income dropped to 26,519 million yen (down 11.6% year on year); ordinary income was 35,202 million yen (up 1.5% year on year); and net income rose to 22,216 million yen (up 38.7% year on year). 2
(2) Analysis of Financial Position i. Assets, liabilities and net assets Total assets as of March 31, 2013 equaled 601,958 million yen, an increase of 72,526 million yen compared with the previous fiscal year-end. This mainly reflected an increase in notes and accounts receivable-trade as a result of a rise in sales compared with the previous fourth quarter and the acquisition of property, plant and equipment due to capital investment, in addition to the impact on the fair value of investment securities of the recovery of the stock market. Total liabilities as of March 31, 2013 amounted to 281,740 million yen, an increase of 24,484 million yen compared with the previous fiscal year-end. This was principally due to an increase in loans payable. Net assets totaled 320,217 million yen as of March 31, 2013, an increase of 48,042 million yen compared with the previous fiscal year-end. This mainly reflected an increase in foreign currency translation adjustment and an increase in retained earnings resulting from higher net income. ii. Cash flows Cash and cash equivalents (hereinafter, cash ) as of the end of fiscal 2012 amounted to 65,266 million yen. This represented a decrease in cash of 9,540 million yen compared with the previous fiscal year-end. Cash flows during fiscal 2012 are summarized below. [Cash flows from operating activities] Net cash provided by operating activities totaled 35,740 million yen, up 11.6% year-on-year. This was primarily attributable to a decline in the amount of increase of notes and accounts receivable-trade and inventory, despite a decrease in income before income taxes and minority interests. [Cash flows from investment activities] Net cash used in investment activities, which mainly consisted of acquisitions of property, plant and equipment, amounted to 53,395 million yen (up 85.2% year-on-year). [Cash flows from financing activities] Net cash provided by financing activities amounted to 4,644 million yen (in the previous fiscal year it was an expenditure of 12,640 million yen). This mainly reflected the increase of loans payable. The trend of cash flow indicators is as follows: FY 2008 FY 2009 FY 2010 Capital ratio (%) 44.4 43.0 45.9 47.2 48.8 Market capitalization to total assets (%) 28.4 44.1 48.1 58.5 38.6 Interest-bearing liabilities to cash flow (annualized) 4.8 4.5 2.1 3.5 3.6 Interest coverage ratio (multiple) 11.2 8.8 17.1 11.9 12.9 Capital ratio = Shareholders equity / Total assets Market capitalization to total assets = Market capitalization / Total assets Interest-bearing liabilities to cash flow = Interest-bearing liabilities / Cash flow Interest coverage ratio = Cash flows / Interest payments Notes: 1. All indices above are calculated based on consolidated financial statements. 2. Market capitalization is calculated on the basis of the number of issued and outstanding shares excluding treasury stock. 3. Operating cash flow is used as cash flow in the above calculation. 4. Interest-bearing liabilities represent all liabilities on the consolidated balance sheet on which we pay interest. 3
(3) Principal Policy on Dividends and Dividend Distribution for this Fiscal Year and the Next Fiscal Year As to dividend payment to our shareholders, it is our basic policy to continue a certain stable level of dividend corresponding to the medium- to long-term business performance. Meanwhile, saving a reasonable portion for internal reserve is also critical in preparation for our future business development and reinforcement of financial position. We will, therefore, determine the dividend by taking all these factors into consideration. Taking into full consideration the aforementioned basic dividend distribution policy along with the level of net income for fiscal 2012, we propose to pay an annual dividend of 20 yen per share for fiscal 2012 (a 10-yen interim dividend plus a 10-yen term-end dividend). Based on the aforementioned policy and our earnings projections for fiscal 2013, we plan to pay an annual dividend of 20 yen per share for fiscal 2013 (a 10-yen interim dividend plus a 10-yen term-end dividend). 4
2. Management Policy (1) Principal Management Policy It is our basic philosophy that a firm is the common asset of its shareholders, employees, and society. At the same time, the goal of NOK is to become an entity in which all of its stakeholders including customers, suppliers, and financial institutions can take pride. For such purposes, we concentrate our efforts to create a vigorous, highly profitable corporate group through manufacturing and distributing unique and useful products with high technical capabilities throughout the world and at appropriate prices. This is the main policy under which NOK conducts its business. (2) Medium- to Long-Term Management Strategies and Challenges The future operating environment surrounding the NOK Group is likely to continue to be unpredictable. Factors causing uncertainty include the possible effects of the government s economic measures, the longstanding fiscal issues in European countries, and the sustainability of growth of the Chinese economy, among others. In the seal business, the Group has been aggressively expanding overseas operations to address the increased overseas production of our customers. However, matters such as the rise in personnel costs in China and Southeast Asia, the hollowing out of domestic production, and intensified competition from overseas competitors have become issues. In order to address these challenges, we will improve the efficiency of our production system based on the concepts of optimum production location and local production for local consumption. In the electronic device product business, matters such as the drop in product selling prices due to intensified competition and the rise in the fluctuation of demand have become issues. In order to address such issues, we will make further efforts in matters such as improving the yield of new mass production lines and expanding usage in tablet terminals in addition to smartphones, which had been the driver for business expansion. The roll business, which was established in 2007, is seeing a slowdown in sales due to changes in the environment including the advance of office machinery technology and the shrinkage of the replacement parts market owing to a rise in durability. In order to overcome this challenge, the Group seeks to revive the roll business by making efforts across the sales, production and technology divisions by further promoting the streamlining and efficiency of the organization. While addressing such challenges, the NOK Group also intends to make efforts across the group with the aim of achieving sustainable growth over the next 10 years by focusing on the development of new products and new uses. [Slogan] Building Foundations for Sustainable Growth Ensuring Success in the Next Decade [Policies] 1. Improving global management capacity 2. Developing our people 3. Enhancing manufacturing competence 4. Achieving unrivalled quality 5. Sowing the seeds of new products to blossom in the next decade 5
3. Consolidated Financial Statements (1) Consolidated Balance Sheet (million yen) (as of March 31, 2012) (as of March 31, 2013) Assets Current assets Cash and deposits 75,545 65,342 Notes and accounts receivable-trade 137,023 163,807 Merchandise and finished goods 21,096 21,657 Work in process 24,964 25,470 Raw materials and supplies 12,761 17,397 Deferred tax assets 4,575 4,850 Other 13,631 11,676 Allowance for doubtful accounts (800) (751) Total current assets 288,798 309,451 Noncurrent assets Property, plant and equipment Buildings and structures 131,260 140,801 Accumulated depreciation (69,936) (74,363) Buildings and structures, net 61,324 66,438 Machinery, equipment and vehicles 230,139 255,661 Accumulated depreciation (173,268) (185,314) Machinery, equipment and vehicles, net 56,871 70,347 Tools, furniture and fixtures 55,615 60,553 Accumulated depreciation (47,601) (48,524) Tools, furniture and fixtures, net 8,014 12,029 Land 17,745 18,238 Lease assets 2,232 2,073 Accumulated depreciation (959) (997) Lease assets, net 1,272 1,076 Construction in progress 4,181 12,338 Total property, plant and equipment 149,410 180,469 Intangible assets Goodwill 102 73 Other 1,543 1,403 Total intangible assets 1,645 1,477 Investments and other assets Investment securities 66,534 85,144 Long-term loans receivable from employees 6,683 5,987 Deferred tax assets 1,787 2,849 Other 14,889 16,868 Allowance for doubtful accounts (319) (289) Total investments and other assets 89,576 110,560 Total noncurrent assets 240,633 292,507 Total assets 529,431 601,958 6
(as of March 31, 2012) (million yen) (as of March 31, 2013) Liabilities Current liabilities Notes and accounts payable-trade 51,847 61,251 Short-term loans payable 56,061 81,541 Income taxes payable 6,019 3,605 Provision for bonuses 8,192 8,150 Provision for business structure improvement 1,503 Provision for loss on disaster 1,138 Deposits received from employees 16,173 16,023 Other 29,291 29,906 Total current liabilities 168,723 201,982 Noncurrent liabilities Long-term loans payable 39,920 29,304 Provision for retirement benefits 44,023 43,362 Other 4,588 7,091 Total noncurrent liabilities 88,532 79,758 Total liabilities 257,256 281,740 Net assets Shareholders equity Capital stock 23,335 23,335 Capital surplus 22,450 22,450 Retained earnings 220,432 239,637 Treasury stock (1,417) (997) Total shareholders equity 264,801 284,425 Accumulated other comprehensive income Valuation difference on available-for-sale securities 16,332 22,865 Foreign currency translation adjustment (31,164) (13,832) Total accumulated other comprehensive income (14,831) 9,032 Minority interests 22,205 26,758 Total net assets 272,174 320,217 Total liabilities and net assets 529,431 601,958 7
(2) Consolidated Income Statement and Consolidated Comprehensive Income Statement Consolidated Income Statement (April 1, 2011 to March 31, 2012) (million yen) (April 1, 2012 to March 31, 2013) Net sales 495,251 540,859 Cost of sales 402,607 449,525 Gross profit 92,643 91,333 Selling, general and administrative expenses 62,630 64,814 Operating income 30,012 26,519 Non-operating income Interest income 487 347 Dividends income 744 962 Foreign exchange gains 924 5,025 Equity in earnings of affiliates 3,336 3,146 Rent income 971 944 Other 1,586 1,447 Total non-operating income 8,051 11,874 Non-operating expenses Interest expenses 2,743 2,729 Other 626 462 Total non-operating expenses 3,369 3,191 Ordinary income 34,694 35,202 Extraordinary income Gain on sales of noncurrent assets 740 637 Insurance income 1,500 2,541 Other 397 386 Total extraordinary income 2,637 3,565 Extraordinary loss Loss on sales and retirement of noncurrent assets 536 963 Business structure improvement expenses 4,052 Other 3,002 886 Total extraordinary loss 3,538 5,902 Income before income taxes and minority interests 33,793 32,865 Income taxes-current 9,989 10,177 Income taxes-deferred 5,223 (2,272) Total income taxes 15,212 7,905 Income before minority interests 18,580 24,959 Minority interests in income 2,564 2,743 Net income 16,016 22,216 8
Consolidated Comprehensive Income Statement (million yen) (April 1, 2011 to March 31, 2012) (April 1, 2012 to March 31, 2013) Income before minority interests 18,580 24,959 Other comprehensive income Valuation difference on available-for-sale securities 2,098 6,494 Foreign currency translation adjustment (7,414) 16,489 Share of other comprehensive income of associates accounted for using equity method (511) 3,226 Total other comprehensive income (5,828) 26,211 Comprehensive income 12,752 51,171 (Detail) Comprehensive income attributable to owners of the parent 10,969 46,080 Comprehensive income attributable to minority interests 1,783 5,090 9
(3) Consolidated Statement of Changes in Net Assets (April 1, 2011 to March 31, 2012) (million yen) (April 1, 2012 to March 31, 2013) Shareholders equity Capital stock Balance at the beginning of current period 23,335 23,335 Total changes of items during the period Ending balance 23,335 23,335 Capital surplus Balance at the beginning of current period 22,450 22,450 Total changes of items during the period Ending balance 22,450 22,450 Retained earnings Balance at the beginning of current period 206,956 220,432 Dividends from surplus (2,576) (3,011) Net income 16,016 22,216 Change of scope of equity method affiliates 35 Total changes of items during the period 13,475 19,204 Ending balance 220,432 239,637 Treasury stock Balance at the beginning of current period (1,845) (1,417) Purchase of treasury stock (0) (0) Disposal of treasury stock 428 419 Total changes of items during the period 428 419 Ending balance (1,417) (997) Total shareholders equity Balance at the beginning of current period 250,897 264,801 Dividends from surplus (2,576) (3,011) Net income 16,016 22,216 Purchase of treasury stock (0) (0) Disposal of treasury stock 428 419 Change of scope of equity method affiliates 35 Total changes of items during the period 13,903 19,624 Ending balance 264,801 284,425 10
(April 1, 2011 to March 31, 2012) (million yen) (April 1, 2012 to March 31, 2013) Accumulated other comprehensive income Valuation difference on available-for-sale securities Balance at the beginning of current period 14,228 16,332 Net changes of items other than shareholders equity 2,104 6,532 Total changes of items during the period 2,104 6,532 Ending balance 16,332 22,865 Foreign currency translation adjustment Balance at the beginning of current period (24,012) (31,164) Net changes of items other than shareholders equity (7,152) 17,332 Total changes of items during the period (7,152) 17,332 Ending balance (31,164) (13,832) Total accumulated other comprehensive income Balance at the beginning of current period (9,784) (14,831) Net changes of items other than shareholders equity (5,047) 23,864 Total changes of items during the period (5,047) 23,864 Ending balance (14,831) 9,032 Minority interests Balance at the beginning of current period 21,371 22,205 Net changes of items other than shareholders equity 834 4,553 Total changes of items during the period 834 4,553 Ending balance 22,205 26,758 Total net assets Balance at the beginning of current period 262,484 272,174 Dividends from surplus (2,576) (3,011) Net income 16,016 22,216 Purchase of treasury stock (0) (0) Disposal of treasury stock 428 419 Change of scope of equity method affiliates 35 Net changes of items other than shareholders equity (4,213) 28,418 Total changes of items during the period 9,690 48,042 Ending balance 272,174 320,217 11
(4) Consolidated Cash Flow Statement (million yen) (April 1, 2011 to March 31, 2012) (April 1, 2012 to March 31, 2013) Net cash provided by (used in) operating activities Income before income taxes and minority interests 33,793 32,865 Depreciation and amortization 31,126 32,126 Increase (decrease) in allowance for doubtful accounts (40) (84) Increase (decrease) in provision for bonuses (290) (125) Increase (decrease) in provision for retirement benefits (1,180) (1,140) Increase (decrease) in provision for business structure improvement (346) 1,503 Interest and dividends income (1,232) (1,310) Interest expenses 2,743 2,729 Foreign exchange losses (gains) (280) (626) Equity in (earnings) losses of affiliates (3,336) (3,146) Insurance income (1,500) (2,541) Loss (gain) on sales and retirement of property, plant and equipment (132) 368 Decrease (increase) in notes and accounts receivable-trad (16,833) (11,475) Decrease (increase) in inventories (7,015) (903) Increase (decrease) in notes and accounts payable-trade 7,105 (3,415) Other, net (1,120) 2,831 Subtotal 41,459 47,655 Interest and dividends income received 1,642 1,700 Interest expenses paid (2,697) (2,775) Proceeds from insurance income 1,500 2,541 Income taxes paid (9,877) (13,381) Net cash provided by (used in) operating activities 32,026 35,740 Net cash provided by (used in) investment activities Decrease (increase) in time deposits (259) 672 Purchase of investment securities (4,324) (3,757) Purchase of property, plant and equipment (24,818) (51,736) Proceeds from sales of property, plant and equipment 1,283 1,707 Purchase of intangible assets (687) (91) Other, net (20) (190) Net cash provided by (used in) investment activities (28,826) (53,395) Net cash provided by (used in) financing activities Net increase (decrease) in short-term loans payable 10,790 20,047 Proceeds from long-tem loans payable 952 8,507 Repayment of long-term loans payable (20,395) (19,870) Repayment of finance lease obligations (1,115) (973) Cash dividends paid (2,573) (3,001) Cash dividends paid to minority shareholders (727) (484) Other, net 428 419 Net cash provided by (used in) financing activities (12,640) 4,644 Effect of exchange rate change on cash and cash equivalents (1,958) 3,470 Net increase (decrease) in cash and cash equivalents (11,398) (9,540) Cash and cash equivalents at beginning of period 86,205 74,806 Cash and cash equivalents at end of period 74,806 65,266 12
(5) Notes Concerning the Consolidated Financial Statements (Notes Concerning the Going Concern Assumption) None. (Additional Information) 13
(Segment Information) I (April 1, 2011 to March 31, 2012) 1. Information regarding sales and income (loss) by reportable segment Seal Reportable segments Electronic device product Roll Other Total Adjustments (Note 1) (million yen) Amount included in the consolidated financial statement (Note 2) Sales Sales to external customers 259,143 194,112 29,102 12,892 495,251 495,251 Inter-segment sales/transfers 3,273 10 719 4,003 (4,003) Total 262,416 194,123 29,102 13,611 499,254 (4,003) 495,251 Segment income (loss) 26,294 3,633 (775) 868 30,021 (8) 30,012 Segment assets 230,966 171,887 23,101 8,220 434,176 95,254 529,431 Other items Depreciation and amortization 18,402 11,339 1,242 143 31,126 31,126 Increase in property, plant and equipment and intangible assets 16,099 10,012 839 207 27,158 27,158 Notes: 1. Adjustments are as shown below: (1) The amount of (8) million yen in Adjustments of segment loss represents the result of elimination in the inter-segment transactions. (2) The amount of 95,254 million yen in Adjustments of segment assets includes 101,284 million yen in corporate assets which are not allocated to individual reportable segments and (6,030) million yen in offset elimination of inter-segment claims and debts. 2. Segment income (loss) is adjusted with operating income stated in consolidated financial statements. 14
II (April 1, 2012 to March 31, 2013) 1. Information regarding sales and income (loss) by reportable segment Seal Reportable segments Electronic device product Roll Other Total Adjustments (Note 1) (million yen) Amount included in the consolidated financial statement (Note 2) Sales Sales to external customers 257,974 244,419 26,739 11,726 540,859 540,859 Inter-segment sales/transfers 3,701 130 1 642 4,476 (4,476) Total 261,675 244,550 26,740 12,368 545,335 (4,476) 540,859 Segment income (loss) 21,119 4,825 (12) 559 26,491 28 26,519 Segment assets 263,700 229,243 5,603 7,987 506,534 95,423 601,958 Other items Depreciation and amortization 18,142 12,765 1,039 177 32,126 32,126 Increase in property, plant and equipment and intangible assets 24,495 27,957 159 189 52,802 52,802 Notes: 1. Adjustments are as shown below: (1) The amount of 28 million yen in Adjustments of segment loss represents the result of elimination in the inter-segment transactions. (2) The amount of 95,423 million yen in Adjustments of segment assets includes 101,098 million yen in corporate assets which are not allocated to individual reportable segments and (5,675) million yen in offset elimination of inter-segment claims and debts. 2. Segment income (loss) is adjusted with operating income stated in consolidated financial statements. 15
(Per Share Information) (April 1, 2011 to March 31, 2012) (April 1, 2012 to March 31, 2013) Net assets per share 1,453.37 yen 1,702.96 yen Net income per share 93.22 yen 129.06 yen Notes: 1. Diluted net income per share is not shown as there are no residual securities. 2. The basis of the computation of net assets per share is as shown below: (April 1, 2011 to March 31, 2012) (April 1, 2012 to March 31, 2013) Total net assets (million yen) 272,174 320,217 Deductions from total net assets (million yen) 22,205 26,758 (Minority interests) [22,205] [26,758] Net assets at the end of current period attributable to common stock (million yen) 249,969 293,458 Number of shares at the end of current period (1,000 shares) 171,993 172,322 3. The basis of the computation of net income per share is as shown below: (April 1, 2011 to March 31, 2012) (April 1, 2012 to March 31, 2013) Net income (million yen) 16,016 22,216 Amount not attributable to common stock (million yen) Net income attributable to common stock (million yen) 16,016 22,216 Average number of shares during the period (1,000 shares) 171,820 172,140 4. Shares of the Company held by the Employee Stock Ownership Plan Trust (ESOP Trust) account have been deducted from the Number of shares at the end of current period and the Average number of shares during the period. (Significant Subsequent Events) None. 16