consolidated financial results for the fiscal year ended ... · fusible interlining fabric as the...

Consolidated Financial Results

For the Fiscal Year Ended March 31, 2012

<Japanese GAAP>May 10, 2012

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

Stock Code: 3110

Stock Exchange Listing: Tokyo Stock Exchange, Osaka Securities Exchange

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

Representative: Katsumi Minamizono, Chief Executive Officer

Contact: Yo Usami, General Manager, Planning and Administration Division, Accounting and Finance Department

Tel: +81-3-4582-5040

Scheduled date of Ordinary General Meeting of Shareholders: June 28, 2012

Scheduled date of filing annual securities report: June 28, 2012

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 29, 2012

(Yen in millions, rounded down)

1. Consolidated financial results for the fiscal year ended March 31, 2012 (April 1, 2011 to March 31, 2012)

(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, 2012 82,638 (1.8) 5,929 (8.7) 5,496 (8.4) 1,433 (48.9)

Fiscal year ended March 31, 2011 84,158 (3.4) 6,493 199.5 6,000 321.7 2,806 108.3

Note: Comprehensive income

Fiscal year ended March 31, 2012…………. ¥1,789 million [(12.7%)]

Fiscal year ended March 31, 2011…………. ¥2,049 million [3.9%]

Net income pershare

Diluted netincome per share

Return on equityRatio of ordinaryincome to total

assets

Ratio ofoperating income

to net sales

Yen Yen % % %

Fiscal year ended March 31, 2012 7.19 - 2.6 4.2 7.2

Fiscal year ended March 31, 2011 14.07 - 5.2 4.7 7.7

(Reference) Equity in earnings (loss) of affiliates

Fiscal year ended March 31, 2012…………. ¥392 million

Fiscal year ended March 31, 2011…………. ¥426 million

(2) Consolidated financial position

Total assets Net assets Equity ratio Net assets per share

Million yen Million yen % Yen

As of March 31, 2012 131,040 55,811 42.0 276.11

As of March 31, 2011 128,049 55,785 42.4 272.40

(Reference) Equity

Fiscal year ended March 31, 2012…………. ¥55,036 million

Fiscal year ended March 31, 2011…………. ¥54,313 million

2

(3) Consolidated status of cash flows

Net cash providedby (used in)

operating activities

Net cash provided by(used in) investing

activities

Net cash providedby (used in)

financing activities

Cash and cashequivalents at end of

period

Million yen Million yen Million yen Million yen

Fiscal year ended March 31, 2012 4,634 (8,245) (2,604) 8,457

Fiscal year ended March 31, 2011 11,576 (4,147) (5,565) 14,660

2. Dividends

Annual dividends

Firstquarter-end

Secondquarter-end

Thirdquarter-end

Fiscalyear-end

Total

Aggregateamount(Total)

Payoutratio

(Consolidated)

Dividends/net assets

(Consolidated)

Fiscal year ended March 31, 2011

Yen

-Yen

0.0Yen

-Yen

5.0Yen

5.0Million yen

996%

35.5%

1.9

Fiscal year ended March 31, 2012 - 0.0 - 5.0 5.0 996 69.5 1.8

Fiscal year ending March 31, 2013(Forecast)

- - - - - -

Note: The forecasted dividend for fiscal year ending March 31, 2013 is undecided.

3. Consolidated forecast for the fiscal year ending March 31, 2013 (April 1, 2012 to March 31, 2013)


Net sales Operating income Ordinary income Net income Net income per share

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

First half 41,000 (0.4) 2,000 (35.6) 1,800 (35.1) 700 (30.6) 3.51

Full year 83,000 0.4 6,000 1.2 5,500 0.1 3,000 109.2 15.05

*Special 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 correction of errors

(a) Changes in accounting policies due to revision of accounting standards: None

(b) Changes in accounting policies other than (a): None

(c) Changes in accounting estimates: None

(d) Restatements: None

(3) Number of shares outstanding (common stock)

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

As of March 31, 2012 247,677,560 shares As of March 31, 2011 247,677,560 shares

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


(c) Average number of shares outstanding


3

Summary of non-consolidated financial results (for reference)

Non-consolidated financial results for the fiscal year ended March 31, 2012 (April 1, 2011 to March 31, 2012)

(1) Non-consolidated results of operations


Net sales Operating income Ordinary income Net income

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

Fiscal year ended March 31, 2012 47,222 (12.3) 821 (71.7) 1,183 (63.0) (544) -

Fiscal year ended March 31, 2011 53,822 (1.4) 2,903 - 3,198 - 1,837 30.6

Net income pershare

Diluted netincome per share

Yen Yen

Fiscal year ended March 31, 2012 (2.73) -

Fiscal year ended March 31, 2011 9.21 -

(2) Non-consolidated financial position

Total assets Net assets Equity ratio Net assets per share

Million yen Million yen % Yen

As of March 31, 2012 101,582 42,252 41.6 211.97

As of March 31, 2011 100,571 43,558 43.3 218.46

(Reference) Equity:

As of March 31, 2012 ................. ¥42,252 million

As of March 31, 2011 ................. ¥43,558 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 financial statements were in progress.

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

1. The forecasts presented above are estimates based on information available to management at the time this report was prepared.

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. (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, 2013 shall be announced, upon consideration of performance trends

and other factors, as soon as they are available.

- 1 -

Supplementary materials table of contents

1. Results of Operations...................................................................................................................................................................2

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

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

(3) Fundamental policy concerning earnings distributions and dividend for the fiscal year under review and

ensuing fiscal year................................................................................................................................................4

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. 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 regarding the going concern assumption..................................................................................................14

(6) Significant accounting policies in the preparation of the consolidated financial statements..............................14

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

(Consolidated Statements of Changes in Net Assets)........................................................................................14

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

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

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

5. Others ........................................................................................................................................................................................20

Changes to Directors. ................................................................................................................................................................20

- 2 -

1. Results of Operations

(1) Analysis of operation results

During the fiscal year under review, although there were some signs of recovery in the Japanese economy following the

Great East Japan Earthquake, the business environment remained difficult due to the slowdown in the global economy typified

by the financial instability in Europe and prolonged yen appreciation.

In such an environment, the Nittobo Group worked on further solidifying its business foundations during the second year of

its medium-term management plan.

As a result, consolidated net sales for the full year reached ¥82,638 million (down 1.8% from the same period of the

previous year), consolidated operating income was ¥5,929 million (down 8.7% from the same period of the previous year), and

consolidated ordinary income was ¥5,496 million (down 8.4% from the same period of the previous year). However, the

Group posted an extraordinary loss related to the effects of the Great East Japan Earthquake and tax expenses increased due to

a lowered corporate tax rate. As a result, consolidated net income was ¥1,433 million (down 48.9% from the same period of

the previous year).

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

[Textiles Division]

The business environment was difficult overall for yarn materials for stretch material C•S•Y and garment materials for

fusible interlining fabric as the apparel industry floundered and garment consumption remained stagnant. In response, efforts

were made to cut costs.

As a result, sales in this segment fell by 15.9% year-on-year to ¥6,181 million, and operating income also declined by

61.5% year-on-year to ¥115 million.

[Glass Fiber Division]

Although high value-added products and glass fiber for use in electronic materials and reinforced plastic performed

strongly, there were signs of inventory adjustments from the second half of the fiscal year onward.

For industrial-use glass fibers, the Group worked to develop new sales channels mainly in the waterproof category and

for industrial materials.

As a result, sales in this segment fell by 6.2% year-on-year to ¥45,140 million, and operating income also declined by

25.1% year-on-year to ¥3,356 million.

[Environmental Business Division]

Glass wool for thermal insulation performed solidly backed by continued demand for energy saving and environment-

related products.

In the engineering and constructions field, there was growth in equipment work.

In the green business field, sales expanded for rock wool substrates and agricultural products cultivated at greenhouses.

As a result, this segment recorded sales of ¥19,202 million (up 12.3% year-on-year) and operating income of ¥1,646

million (up 115.8％ year-on-year).

[Medical & Beverage Division]

In the field of reagents for in vitro diagnostics, efforts were made to develop new products, despite the impact of the

earthquake. Also for the beverages field, the Group worked on marketing new products while opening up additional sales

channels.

As a result, this segment recorded sales of ¥10,509 million (up 5.8％ year-on-year) and operating income of ¥916 million

(down 25.2％ year-on-year).

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

- 3 -

<Outlook for fiscal year ending in March 31, 2013>

The business environment is expected to remain a difficult one, as uncertainties persist concerning the future of the

global economy and currency exchange rates.

In such an environment, the Nittobo Group will continue in its efforts to strengthen its business foundations and

improve corporate value, during the final year of its medium-term management plan.

In terms of the fiscal year ending March 31, 2013, the Group forecasts consolidated net sales of ¥83.0 billion, operating

income of ¥6.0 billion, ordinary income of ¥5.5 billion and net income of ¥3.0 billion.

(2) Analysis of financial condition

1) Financial condition and the status of cash flows for the fiscal year under review were as follows:

(Financial condition)

Total assets were ¥131,040 million at the end of the fiscal year under review, an increase of ¥2,991 million from the

end of the previous fiscal year. This was mainly attributable to an increase in inventories.

Total liabilities were ¥75,228 million, an increase of ¥2,964 million from the end of the previous fiscal year, primarily

due to an increase in notes and accounts payable-trade and long-term loans payable.

Net assets stood at ¥55,811 million. The equity ratio dropped 0.4 points from the end of the previous fiscal year to

42.0%.

(Status of cash flows)

Net cash provided by operating activities was ¥4,634 million. This was mainly attributable to the ¥5,481 million in

depreciation and amortization, ¥4,201 million in income before income taxes and minority interests and a ¥3,316 million

decrease in inventories.

Net cash used in investing activities was ¥8,245 million, which was primarily due to the ¥4,153 million from the

purchase of noncurrent assets and ¥2,748 million from the purchase of investment securities.

Net cash used in financing activities was ¥2,604 million. This was attributable to the ¥10,407 million repayment of

long-term loans payable and ¥9,100 million in proceeds from long-term loans payable.

As a result, cash and cash equivalents at the end of period totaled ¥8,457 million, a decrease of ¥6,203 million from the

end of the previous fiscal year.

2) Changes in cash flow-related indicators

Years ended March 31, 2008 2009 2010 2011 2012

Equity ratio (%) 47.3 37.2 41.2 42.4 42.0

Equity ratio based on market cap (%) 32.4 25.1 30.8 30.4 49.3

Interest-bearing debt to cash flow ratio (%) 2.0 21.6 41.6 3.1 7.6

Interest coverage ratio (times) 21.5 3.6 1.2 17.9 7.8

Note: Equity ratio ................................................ (Net assets – Minority interests) / 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.

- 4 -

(3) Fundamental policy concerning earnings distributions and dividend for the fiscal year under review and ensuing 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 fiscal

year under review, the Company intends to propose a year-end dividend of ¥5 per share at the General Meeting of

Shareholders to be held on June 28, 2012.

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, 2012) comprises NITTO BOSEKI CO., LTD. (the Company), its 31 subsidiaries and 5

affiliates. The Group engages in the Textiles business, the Glass Fiber business, the Environmental business and the Medical &

Beverage business, etc.

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

Notes:

“-” indicates consolidated subsidiaries and “*” indicates affiliates accounted for under the equity method.

NIT

TO

BO

SE

KI

CO

.,L

TD

.(th

eC

omp

any)

Purchase finished products

Sell finished products

Consign outsourced processing

Textiles business (7 companies)

- Nittobo (China) Co., Ltd.

- Nittobo Interlining Co., Ltd.

- Bunkyo Seiren Co., Ltd.

- Nittobo Niigata Co., Ltd.

Others (3 companies)

Medical & Beverage business

(3 companies)

- Nittobo Medical Co., Ltd.

- Nittobo America Inc.

- Nitto Beverage Co., Ltd.

Outsource operations

Contract environmental work

Supply raw materials,purchase finished products

Contract facility and civilengineering work

Sell

finish

edp

roducts

Glass Fiber business

(13 companies)

- Nitto Glass Fiber Manufacturing

Co., Ltd.

- Fuji Fiber Glass Co., Ltd.

* NITTOBO ASCO Glass Fiber

Co., Ltd.

- Nitto Glasstex Co., Ltd

- Nittobo Taiwan Co., Ltd.

- Soyo Co., Ltd.

- Nittobo FRP Laboratory Co., Ltd.

- Nittobo Macao Glass Weaving

Co., Ltd.

- Shinwa Denzai Co., Ltd.


Purchase raw materials/finished products

Purchase finished products

Purchase raw materials

Purchase/sell finishedproducts, consign outsourcedprocessing

Sell finished products,purchase raw materials

Supply raw materials,purchase finished goods

Supply raw materials,purchase rawmaterials/finished goods

Sell

finish

edp

roducts

Other Operations (5 companies)

- Nittobo Allied Service Co., Ltd.

- Sansei Kogyo Co., Ltd.


Outsource real estatemanagement

Purchase raw materials

Environmental business

(8 companies)

- Nittobo Ecology Co., Ltd.

- Paramount Glass Manufacturing

Co., Ltd.

- Nittobo Techno Co., Ltd.

- Nittobo Acoustic Engineering

Co., Ltd.


- 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 formulated a new medium-term management plan to cover the three years from April 2010 to March

2013, and is facing this plan with steady implementations.

*For details on the medium-term management plan, refer to "Establishment of the Medium-Term Management Plan" released on

March 23, 2010.

- 7 -

4. Consolidated Financial Statements

(1) Consolidated Balance Sheets

(Millions of yen)

As of March 31, 2011 As of March 31, 2012

Assets

Current assets

Cash and deposits 14,660 8,457

Notes and accounts receivable-trade 24,254 27,010

Merchandise and finished goods 7,010 8,526

Work in process 3,176 3,613

Raw materials and supplies 12,901 14,218

Deferred tax assets 1,659 2,163

Short-term loans receivable 10 10

Other 1,597 1,844

Allowance for doubtful accounts (74) (44)

Total current assets 65,197 65,801

Noncurrent assets

Property, plant and equipment

Buildings and structures, net 14,019 13,909

Machinery, equipment and vehicles, net 8,379 7,850

Land 17,645 17,640

Lease assets, net 732 974

Construction in progress 340 1,020

Other, net 826 699

Total property, plant and equipment 41,943 42,094

Intangible assets 1,810 1,639

Investments and other assets

Investment securities 9,535 12,500

Long-term loans receivable 20 17

Deferred tax assets 8,827 7,727

Other 782 1,303

Allowance for doubtful accounts (68) (44)

Total investments and other assets 19,097 21,505

Total noncurrent assets 62,851 65,239

Total assets 128,049 131,040

- 8 -

(Millions of yen)

As of March 31, 2011 As of March 31, 2012

Liabilities

Current liabilities

Notes and accounts payable-trade 9,533 10,993

Short-term loans payable 6,540 6,395

Current portion of long-term loans payable 9,796 7,487

Lease obligations 136 199

Income taxes payable 434 1,911

Provision for bonuses 1,489 1,510

Provision for loss on disaster 912 181

Other 4,830 6,547

Total current liabilities 33,672 35,226

Noncurrent liabilities

Long-term loans payable 19,044 20,043

Lease obligations 630 971

Deferred tax liabilities 87 77

Provision for retirement benefits 11,986 12,009

Provision for repairs 4,474 5,115

Provision for business structure improvement 657 219

Other 1,709 1,566

Total noncurrent liabilities 38,590 40,002

Total liabilities 72,263 75,228

Net assets

Shareholders' equity

Capital stock 19,699 19,699

Capital surplus 23,062 23,062

Retained earnings 21,940 22,376

Treasury stock (8,860) (8,874)

Total shareholders' equity 55,841 56,264

Accumulated other comprehensive income

Valuation difference on available-for-sale securities 574 1,152

Deferred gains or losses on hedges - (76)

Foreign currency translation adjustment (2,101) (2,303)

Total accumulated other comprehensive income (1,527) (1,228)

Minority interests 1,471 775

Total net assets 55,785 55,811

Total liabilities and net assets 128,049 131,040

- 9 -

(2) Consolidated Statements of Income and Comprehensive Income

(Consolidated Statements of Income)

(Millions of yen)

For the fiscal year endedMarch 31, 2011


Net sales 84,158 82,638

Cost of sales 59,667 58,535

Gross profit 24,490 24,103

Selling, general and administrative expenses 17,997 18,173

Operating income 6,493 5,929

Non-operating income

Interest income 13 12

Dividends income 150 215

Equity in earnings of affiliates 426 392

Rent income 95 83

Foreign exchange gains 37 -

Other 291 377

Total non-operating income 1,014 1,082

Non-operating expenses

Interest expenses 690 584

Amortization of net retirement benefit obligation at transition 454 447

Foreign exchange losses - 111

Other 362 371

Total non-operating expenses 1,507 1,515

Ordinary income 6,000 5,496

Extraordinary income

Gain on sales of noncurrent assets 20 -

Gain on sales of investment securities - 85

Insurance income - 267

Reversal of allowance for doubtful accounts 23 -

Reversal of provision for business structure improvement - 207

Total extraordinary income 43 560

Extraordinary loss

Loss on disposal of noncurrent assets 420 135

Loss on valuation of investment securities - 335

Environmental expenses 158 200

Loss on disaster 2,000 910

Loss on adjustment for changes of accounting standard for assetretirement obligations

184 -

Other 230 273

Total extraordinary losses 2,994 1,855

Income before income taxes and minority interests 3,049 4,201

Income taxes-current 750 2,187

Income taxes-deferred (559) 525

Total income taxes 191 2,713

Income before minority interests 2,858 1,488

Minority interests in income 51 54

Net income 2,806 1,433

- 10 -

(Consolidated Statements of Comprehensive Income)

(Millions of yen)



Income before minority interests 2,858 1,488

Other comprehensive income

Valuation difference on available-for-sale securities (361) 579

Deferred gains or losses on hedges 56 (76)

Foreign currency translation adjustment (450) (66)

Share of other comprehensive income of associates accounted for usingequity method

(53) (135)

Total other comprehensive income (808) 300

Comprehensive income 2,049 1,789

Comprehensive income attributable to

Comprehensive income attributable to owners of the parent 2,002 1,733

Comprehensive income attributable to minority interests 46 56

- 11 -

(3) Consolidated Statements of Changes in Net Assets

(Millions of yen)



Shareholders’ equity

Capital stock

Balance at the beginning of current period 19,699 19,699

Balance at the end of current period 19,699 19,699

Capital surplus



Retained earnings


Changes of items during the period

Dividends from surplus (797) (996)


Total changes of items during the period 2,008 436


Treasury stock

Balance at the beginning of current period (8,839) (8,860)


Purchase of treasury stock (21) (13)

Total changes of items during the period (21) (13)

Balance at the end of current period (8,860) (8,874)

Total shareholders' equity








Accumulated other comprehensive income

Valuation difference on available-for-sale securities

Balance at the beginning of current period 931 574


Net changes of items other than shareholders' equity (357) 577

Total changes of items during the period (357) 577

Balance at the end of current period 574 1,152

Deferred gains or losses on hedges

Balance at the beginning of current period (56) -


Net changes of items other than shareholders' equity 56 (76)

Total changes of items during the period 56 (76)

Balance at the end of current period - (76)

- 12 -

(Millions of yen)



Foreign currency translation adjustment

Balance at the beginning of current period (1,597) (2,101)


Net changes of items other than shareholders' equity (503) (202)

Total changes of items during the period (503) (202)


Total accumulated other comprehensive income

Balance at the beginning of current period (722) (1,527)


Net changes of items other than shareholders' equity (804) 299

Total changes of items during the period (804) 299


Minority interests



Net changes of items other than shareholders’ equity 35 (695)

Total changes of items during the period 35 (695)

Balance at the end of current period 1,471 775

Total net assets






Net changes of items other than shareholders' equity (769) (396)



- 13 -

(4) Consolidated Statements of Cash Flows

(Millions of yen)



Net cash provided by (used in) operating activities

Income before income taxes and minority interests 3,049 4,201

Depreciation and amortization 5,990 5,481

Increase (decrease) in allowance for doubtful accounts (42) (53)

Increase (decrease) in provision for retirement benefits 391 23

Increase (decrease) in provision for repairs 409 640

Increase (decrease) in provision for loss on disaster 912 (731)

Interest and dividends income (163) (228)

Interest expenses 690 584

Loss (gain) on sales and valuation of investment securities - 250

Equity in (earnings) losses of affiliates (426) (392)

Loss (gain) on sales and retirement of noncurrent assets 400 135

Decrease (increase) in notes and accounts receivable-trade 1,025 (2,771)

Decrease (increase) in inventories 257 (3,316)

Increase (decrease) in notes and accounts payable-trade 188 1,457

Other, net 103 27

Subtotal 12,787 5,308

Interest and dividends income received 466 633

Interest expenses paid (645) (597)

Income taxes paid (1,032) (709)

Net cash provided by (used in) operating activities 11,576 4,634

Net cash provided by (used in) investing activities

Purchase of noncurrent assets (2,206) (4,153)

Proceeds from sales of noncurrent assets 29 3

Purchase of investment securities (1,996) (2,748)

Proceeds from sales of investment securies 5 85

Purchase of investments in subsidiaries - (800)

Other, net 19 (631)

Net cash provided by (used in) investing activities (4,147) (8,245)

Net cash provided by (used in) financing activities

Net increase (decrease) in short-term loans payable (10,395) (145)

Proceeds from long-term loans payable 14,201 9,100

Repayment of long-term loans payable (8,421) (10,407)

Repayments of finance lease obligations (119) (134)

Cash dividends paid (798) (996)

Other, net (33) (19)

Net cash provided by (used in) financing activities (5,565) (2,604)

Effect of exchange rate change on cash and cash equivalents (117) 11

Net increase (decrease) in cash and cash equivalents 1,745 (6,203)

Cash and cash equivalents at beginning of period 12,915 14,660

Cash and cash equivalents at end of period 14,660 8,457

- 14 -

(5) Notes regarding the going concern assumption

Not Applicable

(6) Significant accounting policies in the preparation of the consolidated financial statements

Disclosure has been omitted, as there have been no significant changes to the items described in the latest securities report

(filed June 29, 2011).

(7) Notes to Consolidated Financial Statements

(Consolidated Statements of Changes in Net Assets)

Fiscal year under review (April 1, 2011 to March 31, 2012)

1. Type and total number of issued shares and of treasury shares (1000 shares)

Number of shares as of

the beginning of the fiscal

year under review

Increase during the fiscal

year

Decrease during the fiscal

year

Number of shares as of

the end of the fiscal year

under review

Issued shares

Common stock 247,677 - - 247,677

Total 247,677 - - 247,677

Treasury shares

Common stock 48,289 61 - 48,350

Total 48,289 61 - 48,350

Note: The increase of 61 thousand shares in the number of common stock of treasury shares was due to the repurchase of

fractional shares.

2. Information on dividends

(1) Amount of cash dividends paid

Resolution Type of shares

Aggregate amount

of dividends

(million yen)

Cash dividends per share

(yen)Record date Effective date

Ordinary General

Meeting of

Shareholders held on

June 29, 2011

Common stock 996 5.00 March 31, 2011 June 30, 2011

(2) Dividends to be paid in the following fiscal year with record dates in the fiscal year under review

ResolutionType of

shares

Aggregate

amount of

dividends

(million yen)

Source of

dividendsCash dividends

per share

(yen)

Record date Effective date

Ordinary General

Meeting of

Shareholders held on

June 28, 2012

Commonstock

996Retained

Earnings5.00 March 31, 2012 June 29, 2012

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(Segment information, etc.)

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 board of directors in order to determine the allocation of resources and in

assessing performance.

The Nittobo Group basically operates through the four divisions of Textiles, Glass Fiber, Environmental Business and

Medical & Beverage, and each division formulates comprehensive domestic and overseas strategies and conducts their

business activities accordingly.

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

the “Environmental Business Division,” and the “Medical & Beverage Division.”

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

products, interlining, and other finished products, etc.). The “Glass Fiber Division” engages in the manufacture,

processing and sales of glass fiber products. The “Environmental Business Division” engages in the manufacture,

processing and sales of glass wool products; environmental improvement work; the design, manufacture and sales of

machinery and equipment; the design, supervision and contracting of acoustic engineering; the sales of rock wool products

(for agricultural and horticultural use); and the operation of its own greenhouse. The “Medical & Beverage Division”

engages in the manufacture and sales of reagents for in vitro diagnostics, specialty chemical products, soft drinks and PET

bottles.

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 described in the “Significant

accounting policies in the preparation of the 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, 2010 to March 31, 2011)

(Millions of yen)

Textiles Glass FiberEnvironmental

BusinessMedical &Beverage

Other(Note) 1.

Adjustment(Note) 2.

Operatingincome

reported inconsolidated

financialstatements(Note) 3.

Net sales

Net sales to external customers 7,352 48,129 17,105 9,936 1,634 - 84,158

Intersegment sales or transfers 6 573 1,011 22 314 (1,929) -

Total 7,358 48,703 18,116 9,959 1,948 (1,929) 84,158

Segment income (loss) 300 4,484 762 1,225 203 (481) 6,493

Segment assets 10,970 50,181 20,587 7,750 7,693 30,864 128,049

Other items

Depreciation and amortization 318 3,176 1,288 441 168 596 5,990

Investment in affiliatesaccounted for under theequity method

- 1,984 - - - - 1,984

Increase in property, plantand equipmentand intangible assets

49 1,918 889 304 16 304 3,481

(Notes) 1. “Other” consists of business segments not included in the reporting segments such as the property management and

services.

2. “Adjustment” is described below.

(1) The ¥481 million loss under Adjustment consists of corporate expenses that are not allocated to specific reporting

segments.

(2) The ¥30,864 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 ¥304 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 statements of income.

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(Millions of yen)

Textiles Glass FiberEnvironmental

BusinessMedical &Beverage

Other(Note) 1.

Adjustment(Note) 2.

Operatingincome

reported inconsolidated

financialstatements(Note) 3.

Net sales

Net sales to external customers 6,181 45,140 19,202 10,509 1,605 - 82,638

Intersegment sales or transfers 9 535 1,299 287 168 (2,299) -

Total 6,190 45,675 20,502 10,796 1,773 (2,299) 82,638

Segment income (loss) 115 3,356 1,646 916 333 (438) 5,929

Segment assets 11,566 58,358 20,666 8,624 7,485 24,339 131,040

Other items

Depreciation and amortization 316 3,094 1,047 459 154 409 5,481

Investment in affiliatesaccounted for under theequity method

- 1,837 - - - - 1,837

Increase in property, plantand equipmentand intangible assets

128 3,956 695 333 42 80 5,236

(Notes) 1. “Other” consists of business segments not included in the reporting segments such as the property management and

services.

2. “Adjustment” is described below.

(1) The ¥438 million loss under Adjustment consists of corporate expenses that are not allocated to specific reporting

segments.

(2) The ¥24,339 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 ¥80 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 statements of income.

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(Related information)

Previous fiscal year (April 1, 2010 to March 31, 2011)

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

(1) Net sales

(Millions of yen)

Japan Asia North America Europe Others Total

68,529 12,229 2,413 959 25 84,158

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

(2) Property, plant and equipment

Information on property, plant and equipment is omitted, because the amount of property, plant and equipment located in Japan

exceeds 90% of the amount of property, plant and equipment listed in the consolidated balance sheets.


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

(1) Net sales

(Millions of yen)

Japan Asia North America Europe Others Total

68,039 11,543 2,075 967 12 82,638

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

(2) Property, plant and equipment

Information on property, plant and equipment is omitted, because the amount of property, plant and equipment located in Japan

exceeds 90% of the amount of property, plant and equipment listed in the consolidated balance sheets.

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(Per share information)

Previous fiscal year(April 1, 2010 to

March 31, 2011)

Fiscal year under review(April 1, 2011 to

March 31, 2012)

Net assets per share ¥272.40

Net income per share ¥14.07

Note: Diluted net income per share is not presented, sincethere is no dilutive stock.

Net assets per share ¥276.11

Net income per share ¥7.19

Note: Diluted net income per share is not presented, sincethere is no dilutive stock.

Note: Basis for calculation

1. Net assets per share

Previous fiscal year(March 31, 2011)

Fiscal year under review(March 31, 2012)

Total net assets (Millions of yen) 55,785 55,811

Amount to be deducted from total net assets (Millionsof yen)

1,471 775

(Minority interests) (Millions of yen) (1,471) (775)

Net assets attributable to common shares at the end ofthe fiscal year (Millions of yen)

54,313 55,036

Number of common shares used in the calculation ofnet assets per share at the end of the fiscal year(Thousand shares)

199,388 199,326

2. Net income per share

Previous fiscal year(April 1, 2010 to

March 31, 2011)

Fiscal year under review(April 1, 2011 to

March 31, 2012)

Net income (Millions of yen) 2,806 1,433

Amount not attributed to common shareholders(Millions of yen)

- -

Net income related to common shares (Millions of yen) 2,806 1,433

Average outstanding shares of common stock duringthe fiscal year (Thousand shares)

199,431 199,350

(Significant subsequent events)

Not Applicable

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5. Others

Changes to Directors

● Effective June 1, 2012

(1) Retiring Corporate Auditor

Adviser Kenji Imoto (currently: Standing Corporate Auditor)

(Note that as of June 27, Kenji Imoto will serve as Vice President and Director of PARAMOUNT GLASS MFG. Co., LTD.)

● Effective June 28, 2012 (planned date for Ordinary General Meeting of Shareholders)

(1) New Director

Director Kazuhisa Igari (currently: Standing Operating Officer, Fukuyama Enterprise Center Manager)

Fukuyama Enterprise Center Manager

(2) New Corporate Auditor

Corporate Auditor Akio Hatanaka (currently: Adviser)

consolidated financial results for the fiscal year ended ... · fusible interlining fabric as the...

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