Consolidated Financial Results for the Fiscal Year Ended...

Disclaimer: This is a Japanese-English translation of the summary of financial statements of the Company produced for your convenience. Since

no auditor audited this report, officially only the Japanese version is assumed to be the summary of financial statements of the Company. This

summary does not constitute any guarantee and the Company will not compensate any losses and/or damage stemming from actions taken based

on these statements. In the case that there is any discrepancy between the Japanese and English versions, the Japanese version is assumed to be

correct.

Consolidated Financial ResultsFor the Fiscal Year Ended March 31, 2013

<Japanese GAAP>May 13, 2013

Company Name: NICHIAS CorporationStock Exchange Listing: Tokyo Stock Exchange (Code number 5393)URL: http://www.nichias.co.jpRepresentative: Kunihiko Yano, President and Chief Executive OfficerInquiries: Masayuki Tomita, Director & Executive Officer, Head of Corporate Administration DivisionPhone: +81-3-3433-7251Scheduled date of Ordinary General Meeting of Shareholders: June 27, 2013Scheduled date of filing the consolidated financial statements: June 27, 2013Supplementary materials for financial results: AvailableOrganization of financial results briefing: Yes (for institutional investors and analysts)Scheduled date of commencement of dividend payment: June 28, 2013

(Fractional amounts of less than ¥1 million are discarded.)1. Consolidated financial results for the year ended March 31, 2013 (April 1, 2012 to March 31, 2013)

(1) Operating results(Percentages represent year-on-year changes)

Net sales Operating income Ordinary income Net incomeMillions of yen % Millions of yen % Millions of yen % Millions of yen %

Fiscal year ended March 31, 2013 137,008 (5.0) 9,414 (15.5) 9,752 (12.5) 5,936 (14.1)Fiscal year ended March 31, 2012 144,258 0.1 11,140 (1.5) 11,151 4.4 6,914 (4.4)

Note: Comprehensive incomeFiscal year ended March 31, 2013…………. ¥8,305 million................ 19.3%Fiscal year ended March 31, 2012…………. ¥6,962 million ................ . 7.1%

Net income per share


(Fully diluted)

Net income onshareholders’

equity

Ordinary income on total assets

Operating income on net

salesYen Yen % % %

Fiscal year ended March 31, 2013 49.81 45.23 10.3 7.5 6.9Fiscal year ended March 31, 2012 58.14 58.07 13.4 9.0 7.7(Reference) Equity in earnings (losses) of affiliatesFiscal year ended March 31, 2013…………. ¥ (21) millionFiscal year ended March 31, 2012…………. ¥21 million

(2) Financial statusTotal assets Net assets Equity ratio Net assets per share

Millions of yen Millions of yen % Yen

As of March 31, 2013 135,401 62,299 45.3 513.74As of March 31, 2012 125,601 55,241 43.2 455.66(Reference) Shareholders’ equityFiscal year ended March 31, 2013…………. ¥61,291 millionFiscal year ended March 31, 2012…………. ¥54,296 million

(3) Cash flowsNet 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

fiscal yearMillions of yen Millions of yen Millions of yen Millions of yen

Fiscal year ended March 31, 2013 11,076 (7,240) 3,185 19,344Fiscal year ended March 31, 2012 5,903 (4,083) (2,924) 12,156

2. DividendsAnnual dividends Annual

dividendamount

Dividendpayoutratio

Dividend on

net assetsFirst

quarter-endSecond

quarter-endThird

quarter-endFiscal

year-endAnnual

total

Fiscal year ended March 31, 2012

Yen Yen

6.00

Yen

－

Yen

6.00

Yen

12.00

Millions ofyen

1,428

%

20.6

%

2.8－

Fiscal year ended March 31, 2013 － 6.00 － 7.00 13.00 1,550 26.1 2.7Fiscal year ending March 31, 2014 (Forecast) － 6.00 － 8.00 14.00 26.5

3. Forecast of consolidated financial results for the year ending March 31, 2014 (April 1, 2013 to March 31, 2014)(Percentages represent year-on-year changes)

Net sales Operating income Ordinary income Net income Net income per shareMillions of yen % Millions of yen % Millions of yen % Millions of yen % Yen

First half 69,000 0.7 4,800 (10.3) 4,600 (12.7) 2,600 (12.8) 21.81Full year 147,000 7.3 11,000 16.8 11,000 12.8 6,300 6.1 52.86

*Notes(1) Changes in significant subsidiaries during the period under review (Changes in specific subsidiaries accompanying changes in the scope

of consolidation): None

(2) Changes in accounting policies, changes in accounting estimates, and restatements1) Changes in accounting policies due to revision of accounting standards: Yes2) Changes other than those in 1) above: None3) Changes in accounting estimates: Yes4) Restatements: None

(3) Number of shares outstanding (ordinary shares)1) Number of shares outstanding at the end of the year (including treasury stock)

As of March 31, 2013 125,057,344 shares As of March 31, 2012 125,057,344 shares2) Number of shares of treasury stock at the end of the year

As of March 31, 2013 5,752,899 shares As of March 31, 2012 5,895,794 shares3) Average number of shares outstanding during the year

For the year ended March 31, 2013 119,186,815 shares For the year ended March

31, 2012 118,930,390 shares

(Reference) Summary of non-consolidated financial results 1. Non-consolidated financial results for the fiscal year ended March 31, 2013 (April 1, 2012 to March 31, 2013)

(1) Operating results(Percentages represent year-on-year changes)

Net sales Operating income Ordinary income Net incomeMillions of yen % Millions of yen % Millions of yen % Millions of yen %

Fiscal year ended March 31, 2013 115,654 (6.0) 5,863 (19.3) 7,597 (8.0) 4,786 (12.7)Fiscal year ended March 31, 2012 123,093 1.6 7,261 8.4 8,256 21.6 5,482 (13.0)



(Fully diluted)Yen Yen

Fiscal year ended March 31, 2013 40.15 36.46Fiscal year ended March 31, 2012 46.09 46.03

(2) Financial statusTotal assets Net assets Equity ratio Net assets per share

Millions of yen Millions of yen % Yen

As of March 31, 2013 116,834 51,911 44.4 434.76As of March 31, 2012 108,566 47,050 43.3 394.02

(Reference) Shareholders’ equity:As of March 31, 2013................. ¥51,880 millionAs of March 31, 2012................. ¥46,962 million

2. Forecast of non-consolidated financial results for the year ending March 31, 2014 (April 1, 2013 to March 31, 2014)(Percentages represent year-on-year changes)

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

Millions of yen % Millions of yen %(22.8)

7.5

Millions of yen % Millions of yen % YenFirst half 57,000 (1.7) 2,600 3,400 (16.5) 2,000 (14.3) 16.78Full year 121,000 4.6 6,300 7,300 (3.9) 4,200 (12.2) 35.23

*Presentation of present status of audit proceduresThis summary of consolidated financial results is not subject to audit procedures based on the Financial Instrument and Exchange Act. As of the date when this summary was disclosed, the audit procedures on the consolidated financial statements were in progress.

*Information concerning proper use of financial forecasts and other special notesForward-looking statements concerning financial forecasts contained in these materials are based on information available to the Companywhen the forecasts were made and certain assumptions judged to be reasonable. However, the Company makes no guarantee that these forecasts will be achieved. Actual results may differ significantly from the forecasts due to a variety of factors.Please refer to “1. Financial results (1) Analysis of financial results and financial status (outlook for fiscal year 2014)” on page 3 for information concerning financial forecasts such as the assumptions used for financial forecasts and factors that could cause these assumptions to change.

- 1 -

Appendix table of contents

1. Analysis of financial results and financial status ·············································· 2(1) Analysis of financial results ........................................................................................ 2(2) Analysis of financial status.......................................................................................... 3(3) Policies for distribution of profit and dividends for fiscal 2013 and 2014 ................. 5(4) Risk factors.................................................................................................................. 5

2. Current status of the Group········································································· 73. Management policies················································································ 8

(1) The Group's basic management policy........................................................................ 8(2) The Group's medium- to long-term business strategy and issues for resolution......... 8

4. Consolidated financial statements································································10(1) Consolidated balance sheets...................................................................................... 10(2) Consolidated statements of income and consolidated statements of comprehensive

income ...................................................................................................................... 12(3) Consolidated statements of changes in shareholders' equity..................................... 15(4) Consolidated statements of cash flows ..................................................................... 17(5) Notes to Consolidated Financial Statements............................................................. 19

7. Supplementary materials ··········································································38(1) Key consolidated figures........................................................................................... 38(2) Quarterly consolidated financial results.................................................................... 38

- 2-

1. Analysis of financial results and financial status

(1) Analysis of financial results(Overview of fiscal year 2013 results)

During the year ended March 31, 2013, although signs of recovery did begin to appear in the operating environment of companies in the Japanese economy as a result of expectations towards the economic policy to be implemented by the new administration that was inaugurated in December 2012, overall uncertainty remains due to factors such as the decline in exports underpinned by a slowdown in the global economy and worsening relations between Japan and China.

In this environment, while sales in the Autoparts Division increased as a result of strong demand in North America and Southeast Asia, there was a significant decrease in sales in the Advanced Products Division due to the ongoing slump in the semiconductor market. As a result, overall NICHIAS Group net sales decreased 5.0% year on year to ¥137,008 million.

In terms of profits, operating income was down 15.5% year on year to ¥9,414 million, ordinary income was down 12.5% year on year to ¥9,752 million, and net income was down 14.1% year on year to ¥5,936 million.

The net sales by segment for the fiscal year under review are as follows.

Sales in the Industrial Products Division dropped 4.2% year on year to ¥44,957 million.This decrease came as a result of some maintenance demand in the petroleum refining and petrochemicals industries being lower than expected, and despite the strong demand for materials for LNG receiving terminals.

Sales in the Advanced Products Division dropped 30.4% year on year to ¥10,992 million. This was due to a drop in demand from semiconductor production equipment manufacturers for fluoropolymer products and thermal insulation products since the second quarter.

Sales in the Autoparts Division increased 1.1% year on year to ¥25,941 million. This was due to strong demand for automobiles in North America and Southeast Asia, despite the temporary decline in demand in the Chinese market.

Sales in the Building Materials Division increased slightly year on year to ¥23,701 million. This was due to strong new housing starts supporting a continued high level of demand for building materials products overall, despite a decline in completions of wrappingwork during the fiscal year.

Sales in the Industrial Thermal Insulation Work Division dropped 2.4% year on year to ¥31,415 million. This was due to a decrease in demand for power-related work, despite an increase in LNG-related construction work projects.

- 3-

(Outlook for fiscal year 2014)In terms of the economic environment going forward, although there will be some

difficulties such as rising electricity fees and raw materials costs, a gentle recovery is expected, supported by improvements in the global economy, particularly in the emerging nations, and an improvement in export conditions as a result of yen depreciation.

Under these circumstances, performance for the Autoparts Division and Building Materials Division is expected to remain strong during the year ending March 2014, and for the Industrial Products Division demand is expected to recover as the economic environment improves. In the Advanced Products Division, while the outlook for the semiconductor market is uncertain, performance is expected to recover, as suggested by recent order conditions.

In consideration of these conditions, the outlook for fiscal year 2014 is as follows.Net sales of ¥147,000 million (up 7.3% year on year), operating income of ¥11,000

million (up 16.8% year on year), ordinary income of ¥11,000 million (up 12.8% year on year), and net income of ¥6,300 million (up 6.1% year on year) are expected.

Note that the earnings forecasts above are based on information that was currently available at the time this report was prepared and are judgments of the Group. Actual results may differ significantly from the forecasts due to a variety of factors.

(2) Analysis of financial status1) Assets, liabilities, and net assetsTotal assets at the end of the current fiscal year were ¥135,401 million, up ¥9,799 million

year on year. This was the result of a year-on-year decrease in notes and accounts receivable-trade of ¥2,280 million being outweighed by increases in cash and deposits of ¥7,101 million and investment securities of ¥2,037 million.

Liabilities at the end of the current fiscal year were ¥73,101 million, up ¥2,741 million year on year. This was the result of a year-on-year decreases in notes and accounts payable-trade of ¥3,613 million and long-term loans payable of ¥5,900 million being outweighed by year-on-year increases in bonds with subscription rights of ¥10,000 million, short-term loans payable of ¥1,500 million, and income taxes payable of ¥1,865 million.

Net assets at the end of the current fiscal year were ¥62,299 million, up ¥7,058 million year-on-year. This was the result of year-on-year increases in retained earnings of ¥4,737 million and valuation difference on available-for-sale securities of ¥1,508 million.

2) Cash FlowsCash and cash equivalents at the end of the fiscal year (hereinafter “cash”) increased

by ¥7,188 million year on year to ¥19,344 million. Cash flows and factors affecting cash flows are as follows:(Net cash provided by (used in) operating activities)

Net cash provided by operating activities was ¥11,076 million (compared to receipts of ¥5,903 million year on year).

This was due to outflows of cash that included a ¥3,823 million decrease in notes and accounts payable-trade and ¥1,675 million in income taxes paid being outweighed by inflows of cash from ¥9,213 million in income before income taxes and a ¥3,502 million decrease in notes and accounts receivable-trade.(Net cash provided by (used in) investing activities)

Net cash used in investing activities was ¥7,240 million (compared to expenditures of ¥4,083 million year on year).

This was due to outflows of cash that included ¥5,032 million used for purchase of

- 4-

property, plant and equipment and ¥1,203 million used for purchase of intangible assets.(Net cash provided by (used in) financing activities)

Net cash provided by financing activities was ¥3,185 million (compared to expenditures of ¥2,924 million year on year).

This was due to outflows of cash that included an expenditure of ¥7,069 million for repayment of long-term loans payable and ¥1,423 million in dividends paid being outweighed by proceeds from issuance of bonds with subscription right of ¥10,000 million and a net increase in short-term bank loans of ¥2,352 million.

(Reference) Consolidated cash flow indicators

Fiscal year 2009

Fiscal year 2010

Fiscal year 2011

Fiscal year 2012

Fiscal year 2013

Shareholders' equity ratio 24.5 34.3 39.6 43.2 45.3Shareholders' equity ratio on a market value basis 17.4 39.1 50.1 43.5 48.9

Ratio of interest-bearing debt to cash flows － 3.2 2.5 5.3 3.3

Interest coverage ratio － 21.0 26.2 12.7 28.6Reference: The indicators above were calculated according to the following formulas

based on consolidated financial figures.Shareholders' equity ratio (%): shareholders' equity/total assets × 100Shareholders' equity ratio on a market value basis (%): market capitalization/total assets × 100Ratio of interest-bearing debt to cash flows (years): interest-bearing debt/operating cash flowsInterest coverage ratio (times): operating cash flows/interest payments

・Market capitalization is calculated by multiplying the stock price at the end of the fiscal year by the number of outstanding shares at the end of the fiscal year excluding treasury stock.

・Interest-bearing debt refers to the entire balance of liabilities carried on the consolidated balance sheets that interest is paid on.

・For operating cash flows and interest payments, “net cash provided by (used in) operating activities” and “interest expenses paid” as stated in the consolidated statements of cash flows are used.

- 5-

(3) Policies for distribution of profit and dividends for fiscal 2013 and 2014In addition to strengthening the management base in order to enhance earnings power,

the basic policy of the NICHIAS Group with respect to the distribution of profits is to strive for the long-term and appropriate return of profits to shareholders by expanding the level of such profits available as dividends and increasing shareholder value, while retaining sufficient reserves for reinvestment.

Guided by this basic policy, the decision to pay dividends is made after careful consideration of a range of factors that include the availability of capital investment funds and investment in R&D to support future business development. In finalizing this decision, emphasis is given to profit levels for the fiscal year, financial status, and the outlook for future business performance.

In terms of dividends for fiscal 2013, based on the above policy, the Company paid an interim dividend of ¥6 per share and a year-end dividend of ¥7 per share.

In terms of dividends for fiscal 2014, although an annual dividend of ¥14 per share has been planned, a final decision will be made after careful consideration is given to the Company's financial status and business performance next fiscal year.

(4) Risk factorsThis section reviews matters that are believed likely to have a material effect on the

decisions of investors. Note that matters related to future developments that are mentioned in this section are judgments of the Group that were made as of the date of the issuance of this document.

□ Business and economic fluctuation riskThe Group conducts manufacture and sales of sealing materials such as gaskets and

packing; manufacture and sales of varieties of inorganic insulation materials using mainly rock wool and ceramic fibers; manufacture and sales of corrosion-resistant materials and machine parts using high-performance resin polymer such as fluoropolymer; manufacture and sales of auto parts including sealing materials for engines and engine peripherals and parts with thermal insulation and soundproofing attributes; manufacture and sales of non-combustible building materials centered on calcium silicate boards and insulation materials; and industrial thermal insulation work for energy, gas, petroleum refining and petrochemicals plants and free-access floor work. The Group's customers comprise a wide range of industries including the petroleum, petrochemical, chemical, steel, electricity, gas, automotive, semiconductor, and construction industries. In this manner, the Group is reliant on industry-wide capital expenditure trends, corrosion-resistant materials are reliant on semiconductor demand trends, auto parts are reliant on production and unit sales trends in the automotive industry, and building materials are reliant on residential and building construction trends. Accordingly, the Group could ultimately be affected by business and economic fluctuations both overseas and in Japan.

□ Overseas business riskThe Group conducts business in Asia and other locations overseas. In its business

overseas, the Group is exposed to the risk of the occurrence of unfavorable economic factors and political turbulence, such as unpredictable changes in laws and regulations or drastic changes in financial conditions. If these types of risk were to manifest themselves it would interfere with the Group's business overseas, and this could affect the Group's business performance and financial status.

- 6-

□ Receivables management riskThe Group holds receivables from its clients that include accounts and notes receivable.

Although the Group always pays sufficient attention to credit management, recovery risk could manifest itself in some situations.

□ Retirement benefits obligation riskThe Group could incur losses if the market value of its pension assets dropped,

investment returns on its pension assets fell, or if there were changes in the actuarial assumptions used to calculate the projected benefit obligations.

□ Product quality maintenance riskAlthough the Group manufactures products based on the international quality assurance

standard ISO 9001 at each of its manufacturing bases, there is no guarantee that all of its products will be free from defects and that there will be no complaints from customers in the future. Product defects could have an impact on the Group's reputation and as a result affect the Group's business performance and financial status.

□ Disaster riskThe Group has multiple production bases both overseas and in Japan, and the Group's

business performance and financial position could be affected if a natural disaster such as an earthquake were to damage one of these production bases and cause problems with business operations.

□ Risk of compensation being payable to sufferers of health problems due to asbestosNICHIAS Corporation and some of its domestic subsidiaries have paid compensation in accordance with in-house regulations to employees and former employees that have died or received medical treatment in response to asbestos-related diseases caused by the Group. In addition, NICHIAS Corporation and some of its domestic subsidiaries have paid financial compensation to neighboring citizens for cases in which certain standards have been fulfilled. It is possible that the Group could continue to be required to make compensation payments to sufferers of health problems relating to asbestos in the future.

- 7-

2. Current status of the GroupThe Group is composed of NICHIAS Corporation, 47 subsidiaries, and 11 affiliates. The

Group's five reporting segments are Industrial Products, Advanced Products, Autoparts, Building Materials, and Industrial Thermal Insulation Work.

The nature of the businesses of these companies, the position of NICHIAS Corporation, subsidiaries, and affiliates within the Group's business, and the relationship with the Group's reporting segments are displayed below. The classifications shown below are identical to the reporting segments.

Business category Major companies

Industrial Products

Domestic

NICHIAS Corporation, FUKUSHIMA NICHIAS CORPORATION, KOKUBU INDUSTRY CORPORATION, NICHIAS CERATECH CO., LTD., TATSUTA INDUSTRY CORPORATION, TOKYO MATERIALS CORPORATION, NIPPON ROCKWOOL CORPORATION, SAKAI NICHIAS CORPORATION

Overseas

NICHIAS SINGAPORE PTE. LTD., NICHIAS FGS SDN.BHD.PT.NICHIAS ROCKWOOL INDONESIA PT.NICHIAS METALWORKS INDONESIAPT.NICHIAS SUNIJAYA, NT RUBBER-SEALS SDN.BHD.NICHIAS HAIPHONG CO., LTD.SUZHOU NICHIAS INDUSTRIAL PRODUCTS CO., LTD.

Advanced Products Domestic

NICHIAS Corporation, FUKUSHIMA NICHIAS CORPORATION, NICHIAS CERATECH CO., LTD., TATSUTA INDUSTRY CORPORATION, KUMAMOTO NICHIAS CORPORATION

Autoparts

Domestic NICHIAS Corporation, METAKOTE INDUSTRY CORPORATION, TATSUTA INDUSTRY CORPORATION

OverseasNICHIAS FGS SDN.BHD., PT.NICHIAS SUNIJAYANICHIAS (THAILAND) CO., LTD.NICHIAS Czech s.r.o.

Building Materials

Domestic

NICHIAS Corporation, NICHIAS CERATECH CO., LTD., TATSUTA INDUSTRY CORPORATION, NIPPON ROCKWOOL CORPORATION, KIMITSU ROCKWOOL CORPORATION, NICHIAS CEMCRETE CORPORATION

Overseas NICHIAS FGS SDN.BHD., PT.NICHIAS METALWORKS INDONESIAPT.NICHIAS SUNIJAYA

Industrial Thermal

Insulation Work

Domestic NICHIAS Corporation, NICHIAS ENGINEERING SERVICE CORPORATION, NIPPON THERMAL ENGINEERING CORPORATION

- 8-

3. Management policies(1) The Group's basic management policy

In order to get a fresh start as a company that would be around for another 100 years, in April 2008 the NICHIAS Group took a step towards further corporate culture innovation by setting specific corporate culture guidelines that included improving communications within the organization, working more cooperatively with other employees, and thinking about what is best across the entire organization. As employees began to work in accordance with these guidelines, the NICHIAS Philosophy was then established in September 2011 as the next step in corporate culture innovation.

The NICHIAS PhilosophyNICHIAS contributes to the Earth's bright future through our Insulation and Protection technologies.

By benefiting from the public trust gained using its insulation and protection technologies that have been cultivated over many years, the NICHIAS Philosophy aims to expand and make contributions in even wider fields.

To achieve this goal, the NICHIAS Group manages its business based on the following three promises that are faithfully followed by all of the Group's employees.

□ We will abide by community standards and work together with the communities we serve.

□ We will strive for customer satisfaction while never forgetting a sense of gratitude.□ We will believe in mutual trust and continue to grow together.

(2) The Group's medium- to long-term business strategy and issues for resolutionSupported by the trust it has gained from all of its stakeholders, the Group is able to

maintain valuable assets that include varied technologies centered around insulation and protection technologies, the NICHIAS & TOMBO brand, and a wide network of customers, suppliers, and sales bases. In the future, the Group will strengthen these assets and continue providing products and services essential for the market in its aim to ensure stability and earnings for the Group over the long term.

The Group also views being a company where employees can work with pride as an essential issue. The Group will work towards achieving its management vision to become "a company trusted by customers, where people can work with pride" by addressing the following key issues.

□ Rigorous enforcement of complianceWe will rigorously enforce compliance so that the NICHIAS Group can achieve stable

growth. Specifically, guided by our compliance program and spearheaded by the Compliance Committee through cooperation with subcommittees and the labor union at each of the Group's business sites, we will take steps to assess the status of legal compliance and focus on increasing compliance awareness among employees.

□ Improvement of corporate value and the provision of value to stakeholdersTo provide products and services that customers can use with peace of mind, the NICHIAS

Group has paid careful attention to safety and the environment in its manufacturing activities, while further reinforcing research and development, production technologies, facilities technologies, and technical services. The Group will continue to develop these activities in

- 9-

an aim to improve corporate value and share value with stakeholders.

□ Advancement of global business operationsThe Group has expanded its business overseas through its production and sales bases in

order to supply products to companies in Japan and Japanese-affiliated companies overseas. In the future, the Group will expand its global business operations so as to provide services to customers in even larger global markets.

□Promotion and development of personnel to lead the way into the futureTo ensure future growth and development, the NICHIAS Group will conduct personnel

development aimed at nurturing the next generation of executive managers, while actively promoting mid-career employees as well. The Group will also further enhance systems to support the growth of Group employees as a company.

□ Strengthening risk managementThe NICHIAS Group experienced stoppages at several plants and saw operations at

sales bases halted in the wake of the Great East Japan Earthquake. Based on these lessons, the Group will strengthen its risk management system throughout the entire organization so that it can continue operations even in the event of major earthquakes and other natural disasters.

- 10-

4. Consolidated financial statements(1) Consolidated balance sheets

(Millions of yen)Fiscal year ended March 31, 2012


AssetsCurrent assets

Cash and deposits 12,281 19,383 Notes and accounts receivable-trade *4 32,385 *4 30,105 Accounts receivable from completed construction contracts 13,380 12,387

Merchandise and finished goods 7,035 7,194 Work in process 1,150 1,192 Raw materials and supplies 4,857 4,605 Costs on uncompleted construction contracts 3,811 3,642 Deferred tax assets 1,496 1,587 Other 1,753 1,746 Allowance for doubtful accounts (125) (38) Total current assets 78,027 81,805

Noncurrent assets Property, plant and equipment Buildings and structures 37,285 38,326 Accumulated depreciation and impairment loss (25,138) (25,770) Buildings and structures, net *3 12,146 12,555 Machinery, equipment and vehicles 56,084 58,404 Accumulated depreciation and impairment loss (49,787) (51,445) Machinery, equipment and vehicles, net 6,296 6,959 Land *3 12,531 13,508 Lease assets 229 295 Accumulated depreciation (117) (135) Lease assets, net 112 160 Construction in progress 2,226 3,009 Other 6,688 6,856 Accumulated depreciation and impairment loss (6,308) (6,488) Other, net 380 367 Total property, plant and equipment 33,694 36,561 Intangible assets Software in progress 367 721 Lease assets 31 8 Other 535 1,064 Total intangible assets 934 1,795 Investments and other assets Investment securities *1 6,858 *1 8,895 Long-term loans receivable 595 668 Deferred tax assets 1,575 1,046 Other 4,108 4,787 Allowance for doubtful accounts (193) (157)

Total investments and other assets 12,944 15,239 Total noncurrent assets 47,573 53,596

Total assets 125,601 135,401

- 11-



LiabilitiesCurrent liabilities

Notes and accounts payable-trade *4 25,795 *4 22,182 Current portion of bonds 900 900 Short-term loans payable *3 12,900 14,400 Lease obligations 72 69 Accounts payable-other 4,674 4,610 Income taxes payable 797 2,662 Advances received on uncompleted construction contracts 653 275

Provision for bonuses 1,891 1,925 Provision for warranties for completed construction 14 12 Asset retirement obligations 84 144 Other 1,476 1,804 Total current liabilities 49,260 48,988

Noncurrent liabilities Bonds payable 10,250 9,350 Bonds with subscription rights - 10,000 Long-term loans payable 7,075 1,175 Lease obligations 89 115 Deferred tax liabilities 142 126 Provision for retirement benefits 2,226 2,274

Provision for directors' retirement benefits 61 64 Asset retirement obligations 587 441 Other 667 565 Total noncurrent liabilities 21,099 24,113

Total liabilities 70,359 73,101Net assets

Shareholders' equity Capital stock 9,283 9,283 Capital surplus 9,881 9,904 Retained earnings 37,981 42,718 Treasury stock (1,877) (1,834) Total shareholders' equity 55,268 60,072

Total other cumulative comprehensive incomeValuation difference on available-for-sale securities 831 2,340Foreign currency translation adjustment (1,803) (1,120)Total other cumulative comprehensive income (972) 1,219

Subscription rights to shares 87 31Minority interests 857 976Total net assets 55,241 62,299

Total liabilities and net assets 125,601 135,401

- 12-

(2) Consolidated statements of income and consolidated statements of comprehensive incomeConsolidated Statements of Income



Net salesNet sales of merchandise and finished goods 101,795 95,968Net sales of completed construction contracts 42,462 41,039Total net sales 144,258 137,008

Cost of salesCost of merchandise and finished goods sold *1, *6 75,967 *1, *6 71,637Cost of sales of completed construction contracts *6 36,942 *6 35,848Total cost of sales 112,909 107,486

Gross profit 31,348 29,522Selling, general and administrative expenses

Selling expenses *2 6,098 *2 6,212General and administrative expenses *3, *6 14,109 *3, *6 13,895Total selling, general and administrative expenses 20,207 20,107

Operating income 11,140 9,414Non-operating income

Interest income 32 29Dividends income 163 169Foreign exchange gains - 412Rent income 214 245Equity in earnings of affiliates 21 -Other 404 302Total non-operating income 836 1,160

Non-operating expensesInterest expenses 461 385Foreign exchange losses 60 -Loss on transfer of receivables 39 37Cost of lease revenue 11 11Equity in losses of affiliates - 21Special contribution for asbestos 114 112Bond issuance cost 23 12Other 115 241Total non-operating expenses 826 822

Ordinary income 11,151 9,752Extraordinary income

Gain on sales of noncurrent assets *4 447 *4 24Gain on negative goodwill 65 -Gain on reversal of subscription rights to shares - 37Total extraordinary income 513 61

Extraordinary lossLoss on sales and retirement of noncurrent assets *5 258 *5 142Loss on valuation of investment securities 98 433Loss on valuation of stocks of subsidiaries and affiliates 472 -Loss on valuation of golf club memberships 16 24Total extraordinary losses 845 600

Income before income taxes 10,818 9,213Income taxes-current 1,449 3,382

- 13-



Income taxes-deferred 2,294 (221)Total income taxes 3,743 3,160Income before minority interests 7,075 6,053Minority interests in income 160 116Net income 6,914 5,936

- 14-

Consolidated statements of comprehensive income(Millions of yen)

Fiscal year endedMarch 31, 2012


Income before minority interests 7,075 6,053Other comprehensive income

Valuation difference on available-for-sale securities 129 1,509Foreign currency translation adjustment (242) 742Total other comprehensive income *1 (113) *1 2,252

Comprehensive income 6,962 8,305Comprehensive income attributable to owners of the parent company 6,817 8,152

Comprehensive income attributable to minority interests 144 152

- 15-

(3) Consolidated statements of changes in shareholders' equity(Millions of yen)



Shareholders' equityCapital stock

Balance at the end of previous period 9,283 9,283 Changes of items during the period Total changes of items during the period - - Balance at the end of current period 9,283 9,283

Capital surplus Balance at the end of previous period 9,841 9,881 Changes of items during the period Disposal of treasury stock 39 22 Total changes of items during the period 39 22 Balance at the end of current period 9,881 9,904

Retained earningsBalance at the end of previous period 32,612 37,981

Changes of items during the period Dividends from surplus (1,545) (1,430) Change of scope of consolidation - 231 Net income 6,914 5,936 Total changes of items during the period 5,368 4,737 Balance at the end of current period 37,981 42,718

Treasury stock Balance at the end of previous period (1,962) (1,877) Changes of items during the period Purchase of treasury stock (5) (7) Disposal of treasury stock 90 51 Total changes of items during the period 85 43 Balance at the end of current period (1,877) (1,834)

Total shareholders' equity Balance at the end of previous period 49,774 55,268 Changes of items during the period Dividends from surplus (1,545) (1,430) Change of scope of consolidation - 231 Net income 6,914 5,936 Purchase of treasury stock (5) (7) Disposal of treasury stock 130 73 Total changes of items during the period 5,493 4,803 Balance at the end of current period 55,268 60,072Total other cumulative comprehensive income

Valuation difference on available-for-sale securities Balance at the end of previous period 701 831 Changes of items during the period Net changes of items other than shareholders' equity 129 1,508

Total changes of items during the period 129 1,508 Balance at the end of current period 831 2,340

Foreign currency translation adjustment Balance at the end of previous period (1,577) (1,803)

- 16-



Changes of items during the period Change of scope of consolidation-foreign currency

translation adjustment - (24)

Net changes of items other than shareholders' equity (226) 707

Total changes of items during the period (226) 683 Balance at the end of current period (1,803) (1,120)Remeasurements of defined benefit plans Changes of items during the period

Total other cumulative comprehensive income Balance at the end of previous period (875) (972) Changes of items during the period Change of scope of consolidation-foreign currency

translation adjustment - (24)

Net changes of items other than shareholders' equity (96) 2,216

Total changes of items during the period (96) 2,192 Balance at the end of current period (972) 1,219Subscription rights to shares

Balance at the end of previous period 122 87Changes of items during the period

Net changes of items other than shareholders' equity (34) (56)

Total changes of items during the period (34) (56)Balance at the end of current period 87 31

Minority interestsBalance at the end of previous period 972 857Changes of items during the period

Net changes of items other than shareholders' equity (115) 119 Total changes of items during the period (115) 119

Balance at the end of current period 857 976Total net assets

Balance at the end of previous period 49,994 55,241Changes of items during the period

Dividends from surplus (1,545) (1,430) Change of scope of consolidation - 231

Change of scope of consolidation-foreign currency translation adjustment - (24)

Net income 6,914 5,936 Purchase of treasury stock (5) (7) Disposal of treasury stock 130 73 Net changes of items other than shareholders' equity (246) 2,279 Total changes of items during the period 5,247 7,058

Balance at the end of current period 55,241 62,299

- 17-

(4) Consolidated statements of cash flows(Millions of yen)



Net cash provided by (used in) operating activitiesIncome before income taxes 10,818 9,213Depreciation and amortization 3,796 3,260Amortization of goodwill 34 17Gain on negative goodwill (65) -Loss (gain) on sales of property, plant and equipment (438) (9)Loss on abandonment of property, plant and equipment 92 72Loss (gain) on valuation of investment securities 98 433Loss on valuation of stocks of subsidiaries and affiliates 472 -Increase (decrease) in allowance for doubtful accounts (156) (124)Increase (decrease) in provision for retirement benefits 99 45Increase (decrease) in provision for bonuses 174 33Interest and dividends income (195) (199)Interest expenses 461 385Foreign exchange losses (gains) 3 (108)Decrease (increase) in notes and accounts receivable-trade (2,948) 3,502

Decrease (increase) in inventories (2,497) 680Increase (decrease) in notes and accounts payable-trade 1,188 (3,823)Decrease (increase) in accounts receivable-other (127) (21)Increase (decrease) in accounts payable-other (3,580) (180)Increase (decrease) in advances received on uncompleted construction contracts 15 (378)

Other 140 113Subtotal 7,385 12,912Interest and dividends income received 195 199Interest expenses paid (466) (387)Income taxes paid (1,255) (1,675)Income taxes refund 44 26Net cash provided by (used in) operating activities 5,903 11,076

Net cash provided by (used in) investing activitiesNet decrease (increase) in time deposits 77 89Purchase of investments in subsidiaries (162) (538)Purchase of property, plant and equipment (4,082) (5,032)Proceeds from sales of property, plant and equipment 761 102Purchase of intangible assets (142) (1,203)Purchase of investment securities (107) (3)Payments of loans receivable (641) (180)Collection of loans receivable 358 146Decrease in long-term guarantee deposits (12) (421)Other (131) (198)Net cash provided by (used in) investing activities (4,083) (7,240)Net cash provided by (used in) financing activitiesNet increase (decrease) in short-term loans payable (4,029) 2,352Proceeds from long-term loans payable - 300Repayment of long-term loans payable (1,357) (7,069)Proceeds from issuance of bonds 4,976 -Redemption of bonds (900) (900)

- 18-



Repayments of lease obligations (89) (87)Issuance of new shares–exercise of subscription rights to shares 96 54

Issuance of subscription rights to shares - 10,000Net decrease (increase) in treasury stock (4) (7)Cash dividends paid (1,541) (1,423)Cash dividends paid to minority shareholders (74) (33)Net cash provided by (used in) financing activities (2,924) 3,185

Effect of exchange rate change on cash and cash equivalents (57) 108

Net increase (decrease) in cash and cash equivalents (1,162) 7,129Cash and cash equivalents at beginning of period 13,318 12,156Increase in cash and cash equivalents from newly consolidated subsidiary - 58

Cash and cash equivalents at end of period *1 12,156 *1 19,344

- 19-

(5) Notes to Consolidated Financial Statements(Note to going concern assumption)

Not applicable

(Significant accounting policies in the preparation of the consolidated financial statements)1. Items concerning the scope of consolidation

(1) Number of consolidated subsidiaries: 30Names of significant consolidated subsidiariesMETAKOTE INDUSTRY CORPORATION, FUKUSHIMA NICHIAS CORPORATION, NICHIAS CERATECH CO., LTD., TATSUTA INDUSTRY CORPORATION, SAKAI NICHIAS CORPORATION, NICHIAS CEMCRETE CORPORATION, NICHIAS FGS SDN.BHD., SUZHOU NICHIAS INDUSTRIAL PRODUCTS CO., LTD.

Note that because the materiality of NICHIAS Czech s.r.o. has increased, it has been included in the scope of consolidation from the fiscal year under review. In addition, one subsidiary was excluded from the scope of consolidation due to the completion of liquidation.

(2) Names of significant non-consolidated subsidiariesNICHIAS SEALTECH CORPORATIONReason for exclusion from the scope of consolidationThe 17 non-consolidated subsidiaries are all small-scale companies, and as a result their total assets, net sales, net profit or loss (amount corresponding to equity holding), and retained earnings (amount corresponding to equity holding) do not have a material impact on the consolidated financial statements.

2. Items concerning the application of the equity method(1) Number of non-consolidated subsidiaries accounted for under the equity method: -(2) Number of affiliates accounted for under the equity method: 1

Company name: TOZETU INDUSTRY CORPORATION(3) Name of significant non-consolidated subsidiaries and affiliates not accounted for

under the equity method1. (2) The one company stated as a significant non-consolidated subsidiary and HAMAASU CO., LTD.

Reason equity method not appliedFor the companies not accounted for under the equity method, their net profit or loss(amount corresponding to equity holding) and retained earnings (amount corresponding to equity holding), etc. are low, and they are not material overall. For this reason they are excluded from the application of the equity method.

3. Items concerning the fiscal years of subsidiariesThe fiscal years of overseas subsidiaries and NICHIAS KYOSHIN CORPORATION

end on December 31, the fiscal year of OHTA KASEI CORPORATION ends on January 31, and the fiscal year of AKITSU INDUSTRIES CORPORATION ends on the final day of February. Because the financial statements from the fiscal year-end date of the applicable subsidiaries are used during the preparation of the consolidated financial statements, adjustments are required for material transactions that occur between the fiscal year-end dates of subsidiary and the end of the fiscal year.

4. Items concerning accounting standards(1) Valuation standards and methods for significant assets

1) Securities

- 20-

(a) Held-to-maturity debt securitiesAmortized cost method (straight-line method) applied.

(b) Available-for-sale securitiesSecurities with a readily determinable fair valueValuation at fair value based on the market price at the end of the fiscal year

(valuation differences are treated through direct net asset adjustment; sales costs are calculated with the moving average method) applied.Securities without a readily determinable fair valueValuation at cost with the moving average method applied.

2) DerivativesValuation at fair value applied.

3) Inventories(a) Merchandise and finished goods

Mainly stated at cost using the moving average method (the carrying amount on the balance sheet is calculated after reductions for decreases in profitability)

(b) Work in progressSame as above

(c) Raw materials and suppliesSame as above

(d) Costs on uncompleted construction contractsStated at individual cost

(2) Depreciation method for significant depreciable assets1) Property, plant and equipment (excluding lease assets)

The fixed rate method is applied for NICHIAS Corporation and domestic subsidiaries, while the straight-line method is mainly applied for overseas subsidiaries. Note that the straight-line method is also applied for buildings (excluding building-attached facilities) acquired by NICHIAS Corporation and domestic subsidiaries since April 1, 1998.

The main useful lives are as follows.Buildings and structures: 3 to 50 yearsMachinery, equipment and vehicles: 4 to 10 years

2) Intangible assets (excluding lease assets)Straight-line method applied.The straight-line method is applied for software used in-house based on the in-

house use period (3 to 5 years).3) Lease assets

For lease assets in financial lease transactions without transfer of ownership, the straight-line method is applied for useful lives for the lease period, with a residual value of zero.

(3) Criteria for posting significant reserves1) Allowance for doubtful accounts

To provide for losses on accounts and loans receivable, NICHIAS Corporation and domestic subsidiaries post the expected uncollectible amount based on the deductibility calculated for actual losses on general receivables and individual examination of the collectability of specific doubtful receivables. The expected uncollectible amount for specific receivables is mainly stated for overseassubsidiaries.

- 21-

2) Reserves for bonusesTo provide for bonuses paid to employees, the liability amount of expected

payments for the current fiscal year is posted. 3) Provision for warranties for completed construction

To provide for after-service costs for work done, an amount based on the estimated compensation cost within the warranty period is posted.4) Provision for retirement benefits

To provide for retirement benefits to employees, an amount based on the projected benefit obligations and expected pension assets at the end of the fiscal year is posted. Actuarial differences are amortized pro rata in the years following the year in which the difference occurs by the straight-line method over a period of 12 years, which is shorter than the average remaining years of service of the employees.5) Provision for retirement benefits for directors

To provide for retirement benefits paid to directors, the expected payments for the current fiscal year based on the internal regulations of the retirement benefits plan for directors is posted.

Upon the resolution of the general shareholders meeting held on June 28, 2007, the Company decided to terminate the retirement benefits plan for directors and corporate auditors. Due to the termination of the plan, the amount posted corresponds to the portion of benefit payments reserved before the plan’s termination.

(4) Criteria for posting significant revenues and expensesCriteria for posting net sales of completed construction contracts and cost of sales of completed construction contracts1) Work in which the certainty of results has been recognized for the portion of progress at the end of the current fiscal year

Percent of completion method (cost-to-cost method used to estimate work progress rate) 2) Other work

Completed contracts method

(5) Standards for converting significant foreign-denominated assets and liabilities to Japanese yen

Foreign currency-denominated receivables and payables are converted to yen at the spot exchange rate on the consolidated closing date and the translation adjustment is treated as a profit or loss. The assets and liabilities of overseas subsidiaries are converted to yen at the spot exchange rate on the fiscal year-end date for the subsidiary, and revenue and expenses are converted to yen at the average annual exchange rate. Translation differences are then posted as part of minority interests and foreign currency translation adjustments in net assets.

(6) Accounting method for significant hedges1) Hedge accounting method

In principal, deferred hedge accounting is applied. Note that special treatment is applied for interest rate swaps fulfilling certain requirements.2) Hedging instrument and hedged items

Hedging instrument: interest rate swapHedged items: loans payable

3) Hedging policy

- 22-

The risk of interest rate fluctuations on the hedged item is hedged based on internal regulations related to derivatives transactions.4) Assessment of hedge effectiveness

The effectiveness of hedges is assessed by comparing on a quarterly basis the cumulative change of cash flows of both hedging instruments and corresponding hedged items. However, the assessment of effectiveness is not conducted for interest rate swaps for which special treatment is applied.

(7) The amortization method and amortization period for goodwillGoodwill is amortized over a period deemed appropriate based on the individual

investment projects.

(8) Scope of funds contained within the consolidated statement of cash flowsCash on hand, deposits that can be withdrawn at any time, and short term

investments that can easily be converted to cash that have maturities within three months of acquisition that are exposed to only a minimal price fluctuation risk are posted.

(9) Other material items relating to the preparation of the consolidated financial statementsAccounting for consumption taxes

The tax excluded method is used as the accounting treatment for consumption taxes and local consumption taxes.

(Change in accounting policy)(Changes in accounting policies that are difficult to distinguish from changes in accounting estimates)

Accompanying a revision in the corporate tax law, the depreciation method for plant, property and equipment acquired after April 1, 2012 has been changed for the Company and its domestic consolidated subsidiaries to a method based on the Corporation Tax Act after the revision.

This has a minimal impact on profits and losses.

- 23-

(Accounting policies not yet applied)Accounting Standard for Retirement Benefits (ASBJ Statement No. 26, May 17, 2012)Guidance on Accounting Standard for Retirement Benefits (ASBJ Guidance No. 25, May 17,

2012)

(1) OverviewFrom the perspective of improving financial reporting and in consideration of international

trends, these accounting standards were revised with a focus on the handling of unrecognized actuarial differences and unrecognized past service costs, the calculation of retirement benefit obligations and service costs, and disclosure.

(2) Scheduled application dateApplication is schedule for the end of the fiscal year ending March 31, 2014. However,

revisions in the calculation of retirement benefit obligations and service costs are scheduled to be applied from the beginning of the fiscal year ending March 31, 2015.

(3) The impact of the application of this accounting standardThe amount of the impact was being evaluated when these consolidated financial

statements were being prepared.

(Changes in the presentation method)(Consolidated statement of cash flows)Because the materiality of “expenditures for payments of deposits and guaranteed deposits”

that was contained in “other” under “net cash provided by (used in) investment activities” during the previous fiscal year has increased, it is now listed separately from the current fiscal year. The financial statements from the previous fiscal year have been reclassified to reflect this change in presentation.

As a result, the negative ¥143 million that was stated as “other” in “net cash provided by (used in) investment activities” in the consolidated statement of cash flows for the previous fiscal year was reformatted to be stated as a negative ¥12 million for “expenditures for payments of deposits and guaranteed deposits” and a negative ¥131 million for “other.”

(Additional information)Not applicable

- 24-

(Consolidated balance sheets-related)*1. Items for non-consolidated subsidiaries and associates are as follows.



Investment securities (stocks) 1,832 Millions of yen 2,153 Millions of yen

2. Guarantee obligations(1) Guarantees on loans from financial institutions for companies other than consolidated

subsidiaries are as follows.Fiscal year ended March 31, 2012


SHANGHAI GOYU AUTOPARTS CO., LTD. 544 Millions of yen 464 Millions of yenNICHIAS INDUSTRIAL PRODUCTS PVT.LTD. 170 213Others 3 companies 243 2 companies 147Employees 23 20Total 981 846

(2) Repurchase obligation limit accompanying liquidation of notesFiscal year ended March 31, 2012


931 Millions of yen 731 Millions of yen

*3. Establishment of collateral(1) Assets provided as collateral



Buildings and structures (mortgages) 914 Millions of yen - Millions of yen

Land (mortgages) 654 -

Total 1,569 -(2) Liabilities resulting in establishment of collateral



Short-term borrowings 69 Millions of yen -(Current portion of long-term loans payable)

*4. Bills maturing on the fiscal year-end dateBills that matured on the fiscal year-end date were treated as if settlement had occurred on the maturity date. Because the fiscal year-end date for the fiscal year under review was a financial institution holiday, the following bills were treated as if settlement had occurred on the maturity date.



Notes receivable 337 Millions of yen 313 Millions of yenNotes payable 1,630 2,018

- 25-

(Consolidated statements of income-related)*1. The carrying amount on the balance sheet at the end of the fiscal year is calculated after

reductions for decreases in profitability. The following inventory valuation loss is included in the cost of merchandise and finished goods sold.




*2. A breakdown of the main selling expenses is displayed below.Fiscal year ended

March 31, 2012Fiscal year ended

March 31, 2013Employee salaries 1,619 Millions of yen 1,715 Millions of yenBonuses 410 355Transfer to provision for bonuses

270 278

Retirement benefit expenses

148 166

Packing, storage, shipping expenses

1,247 1,231

Depreciation expenses 64 41Transfer to provision for doubtful receivables

(119) (84)

*3. A breakdown of the main general and administrative expenses is displayed below.Fiscal year ended


March 31, 2013Employee salary 3,611 Millions of yen 3,569 Millions of yenBonuses 998 826Transfer to provision for bonuses

635 659

Retirement benefit expenses

1,005 1,121

Transfer to provision forretirement benefits fordirectors

6 5

Investigative researchexpenses

669 703

Depreciation expenses 806 598Asbestos compensationexpenses

388 230

*4. A breakdown of the gains on sales of noncurrent assets is displayed below.Fiscal year ended


March 31, 2013Buildings and structures 166 Millions of yen 0 Millions of yenMachinery, equipment and vehicles

6 3

Land 273 20Others 0 0

- 26-

*5. A breakdown of the losses on sales of noncurrent assets is displayed below.Fiscal year ended


March 31, 2013

Loss on saleBuildings and structuresMachinery, equipment and vehiclesLand

Others sale

- Millions of yen

0

8-

2 Millions of yen

5

60

Loss on retirement

Buildings and structures


Machinery, equipment and vehicles

138 48

Others 5 1

*6. Research and development expenses included in general and administrative expenses, current year manufacturing expenses, and cost of sales of completed construction contracts



5,335 Millions of yen 5,189 Millions of yen

(Consolidated comprehensive income statements-related)*1. Reclassification adjustments and effects of taxation related to other comprehensive income



Valuation difference for available-for-sale securitiesAmount incurred during the year under review

(44) Millions of yen 1,713 Millions of yen

Reclassification adjustments 97 433Before adjustment for effects of taxation

52 2,146

Effects of taxation 77 (637)

Valuation difference for available-for-sale securities 129 1,509

Currency translation adjustment account

Amount incurred during the year under review

(242) 742

Total other comprehensive income

(113) 2,252

- 27-

(Consolidated statements of changes in shareholders' equity-related)Fiscal year ended March 31, 20121. Type and total number of issued shares and of treasury stocks

Number of shares as of the beginning of the fiscal year under

review

Increase during the fiscal year under

review

Decrease during the fiscal year under

review

Number of shares as of the end of the fiscal year under

review

Issued shares

Common stock 125,057,344 ― ― 125,057,344

Total 125,057,344 ― ― 125,057,344

Treasury stock

Common stockSee notes 1 and 2 6,165,368 15,796 285,370 5,895,794

Total 6,165,368 15,796 285,370 5,895,794

Notes: 1. The increase of 12,817 common treasury shares was due to the demand for purchase of fractional shares.In addition, an increase of 2,979 shares was due to a change in the ownership ratio in companies accounted for under the equity method.

2. The decrease of 2,370 common treasury shares was due to the demand for sale offractional shares.In addition, a decrease of 283,000 shares was due to the execution of stock options.

2. Subscription rights to shares and subscription rights to treasury shares

TypeBreakdown of

subscription rights to shares

Type of shares subscription

applies to

Number of shares subscription applies to (stocks) Balance at

end of fiscal year

under review

(Millions of yen)

Beginning of the fiscal year under

review

Increase during the fiscal year

under review

Decrease during the fiscal year

under review

End of the fiscal year

under review

Filingcompany(Parent

company)

Subscription rights to shares as stock

options― ― ― ― ― 87

Total ― ― ― ― ― 87

- 28-

3. Dividends(1) Amount of dividends paid

Resolution date Type of shares

Total dividends(million)

Dividends per share (yen)

Record date Effective date

Ordinary general meeting of shareholders held on June 29, 2011

Common stock 832 7 March 31,

2011June 30,

2011

Meeting of the board of directors held on November 14, 2011

Common stock 713 6 September 30,

2011December 5,

2011

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


Total dividends (million)

Source of dividends

Dividends per share

(yen)Record date Effective date


Common stock 715

Retainedearnings

6 March 31,2012

June 29,2012

- 29-

Fiscal year ended March 31, 20131. Type and total number of issued shares and of treasury stocks (Unit: shares)

Number of shares as of the beginning of the fiscal year under

review

Increase during the fiscal year under

review

Decrease during the fiscal year under

review

Number of shares as of the end of the fiscal year under

review

Issued shares

Common stock 125,057,344 ― ― 125,057,344

Total 125,057,344 ― ― 125,057,344

Treasury stock

Common stockSee notes 1 and 2 5,895,794 18,105 161,000 5,752,899

Total 5,895,794 18,105 161,000 5,752,899

Notes: 1. An increase of 18,105 common treasury shares was due to the demand for purchase of fractional shares.

2. An decrease of 161,000 common treasury shares was due to the execution of stock options.

2. Subscription rights to shares and subscription rights to treasury shares

TypeBreakdown of

subscription rights to shares

Type of shares subscription

applies to

Number of shares subscription applies to (stocks) Balance at

end of fiscal year

under review

(Millions of yen)

Beginning of the fiscal year under

review

Increase during the fiscal year

under review

Decrease during the fiscal year

under review

End of the fiscal year

under review

Filing company(Parent

company)

Subscription rights to shares

as stock options― ― ― ― ― 31

Total ― ― ― ― ― 31

- 30-

3. Dividends(1) Amount of dividends paid


Total dividends (million)

Dividends per share (yen) Record date Effective date


Common stock 715 6 March 31,

2012June 29, 2012

Meeting of the board of directors held on November 12, 2012

Common stock 715 6 September 30,

2012 December 5, 2012

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


Total dividends (millions)

Source of dividends

Dividends per share (yen) Record date Effective date


Common stock 835 Retained

earnings7 March 31,

2013June 28,

2013

(Consolidated statements of cash flows-related)*1. Relationship between cash and cash equivalents at end of year and the carrying amount on

the consolidated balance sheetFiscal year ended

March 31, 2012Fiscal year ended March 31, 2013

Cash and deposit accounts 12,281 Millions of yen 19,383 Millions of yenTime deposits with a deposit period of over three months

(125) (38)

Cash and cash equivalents 12,156 19,344

- 31-

(Segment information)Segment information1. Overview of reporting segments

(1) Method determining reporting segmentsThe Group’s reporting segments are components of the Group for which separate financial

information is available, and which are evaluated regularly by decision-making bodies such as the board of directors in order to determine the allocation of resources and in assessing performance.

The Group consists of multiple business divisions in different markets, with each division conducting business based on comprehensive strategies formulated for the products and services they handle both in Japan and overseas.

Accordingly, the Group is composed of segments based on these business divisions. The five reporting segments are Industrial Products, Advanced Products, Autoparts, Building Materials, and Industrial Thermal Insulation Work.

(2) Types of products and services included in each reporting segmentThe main businesses of each reporting segment are as follows.

Name of reporting segment Main businesses

Industrial Products

Manufacturing and sales of sealing materials (gaskets and packing), inorganic fiber insulating material, fluoropolymer molded materials and processed products, corrosion resistant lining materials, and honeycomb filters for plant facilities in key industries including electricity, gas, petroleum, petrochemicals, chemicals, steel, shipbuilding, etc.

Advanced ProductsManufacturing and sales of fluoropolymer products, inorganic fiber insulating materials, honeycomb filters, and sealing materials for semiconductor and LCDmanufacturing equipment

AutopartsManufacturing and sales of auto parts including sealing materials for engines and engine peripherals, and parts with thermal insulation, soundproofing and vibration control attributes

Building Materials

Manufacturing and sales of non-combustible interior & decorative boards composed mainly of calcium silicate, non-combustible building materials such as residential insulation with rock wool as the base material, and insulating materials; construction of fireproofing protection with non-combustible building materials for office buildings, etc. and design and installation work of free access floors with various floor materials.

Industrial Thermal Insulation Work

Design, installation work and maintenance of thermal insulation, cryogenic insulation, fireproofing, soundproofing, and disaster prevention work for plants in industries including electricity, petroleum, petrochemicals, etc.

- 32-

2. The methods of calculating the amounts of net sales, income (loss), assets, liabilities 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.”

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

Fiscal year ended March 31, 2012(Millions of yen)

Reporting segmentsAdjustments

(Note 1)

Amount stated in

consolidated financial

statements(Note 2)

Industrial Products

Advanced Products

Auto-parts

Building Materials

IndustrialThermal

InsulationWork

Total

Net salesNet sales to external customers

46,938 15,789 25,660 23,697 32,171 144,258 - 144,258

Intersegment sales or transfers

221 - - - - 221 (221) -

Total 47,159 15,789 25,660 23,697 32,171 144,479 (221) 144,258

Segment profit 6,789 1,015 939 845 1,551 11,140 - 11,140

Segment assets 35,408 13,491 20,976 17,062 15,216 102,154 23,446 125,601

Other items Depreciation

expenses1,180 776 1,277 438 122 3,796 - 3,796

Amortization of Goodwill

3 - 2 27 - 34 - 34

Increase in property, plant and equipmentand intangible assets

1,622 270 923 267 16 3,100 1,255 4,355

Notes: 1. “Adjustment” is described below.

(1) The ¥23,446 million adjustment in “segment assets” consists of assets relating to Group assets that do not belong to specific reporting segments. Group assets mainly consist of the filing company’s surplus operating capital (cash and deposits), assets attributable to the administrative and research divisions, deferred tax assets, etc.

(2) The ¥1,255 million adjustment in “increase in property, plant and equipment and intangible assets” consists of capital investments in assets attributable to the administrative and research divisions.

2. “Segment profit” has been adjusted to the operating income reported in the consolidated statements of income.

- 33-

Fiscal year ended March 31, 2013(Millions of yen)

Reporting segments

Adjustments

(Note 1)

Amount stated in

consolidated financial statements(Note 2)

Industrial Products

Advanced Products

Auto-parts

Building Materials

Industrial Thermal

Insulation Work

Total


44,957 10,992 25,941 23,701 31,415 137,008 - 137,008

Intersegment salesor transfers

216 - - - - 216 (216) -

Total 45,173 10,992 25,941 23,701 31,415 137,224 (216) 137,008

Segment profit 5,429 (123) 1,864 730 1,513 9,414 - 9,414

Segment assets 36,993 10,869 21,770 16,861 15,934 102,429 32,972 135,401

Other items Depreciation

expenses1,157 542 1,041 398 120 3,260 - 3,260

Amortization of goodwill

17 - 0 - - 17 - 17

Increase in property, plant and equipment and intangible assets

1,994 259 974 1,159 51 4,439 2,098 6,537

Notes: 1. “Adjustment” is described below.

(1) The ¥32,972 million adjustment in “segment assets” consists of assets relating to Group assets that do not belong to specific reporting segments. Group assets mainly consist of the filing company’s surplus operating capital (cash and deposits), assets attributable to the administrative and research divisions, deferred tax assets, etc.

(2) The ¥2,098 million adjustment in “increase in property, plant and equipment and intangible assets” consists of capital investments in assets attributable to the administrative and research divisions.

2. “Segment profit” has been adjusted to the operating income reported in the consolidated statements of income.

- 34-

Related informationFiscal year ended March 31, 20121. 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) Sales(Millions of yen)

Japan Asia Others Total

128,881 11,985 3,391 144,258

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

(2) Property, plant and equipment(Millions of yen)


30,976 2,569 148 33,694

3. Information by main customersBecause there are no customers that account for over 10% of sales stated in the consolidated statements of income for sales to external customers, this information is omitted.

Fiscal year ended March 31, 20131. 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) Sales

(Millions of yen)Japan Asia Others Total

121,557 11,571 3,879 137,008

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

(2) Property, plant and equipment(Millions of yen)


30,967 5,221 372 36,561

- 35-

3. Information by main customersBecause there are no customers that account for over 10% of sales stated in the consolidated statements of income for sales to external customers, this information is omitted.

Information relating to impairment loss of noncurrent assets by reporting segmentFiscal year ended March 31, 2012

Not applicable

Fiscal year ended March 31, 2013 Not applicable

Information relating to goodwill amortization and unamortized balance by reporting segmentFiscal year ended March 31, 2012

This information is omitted because it lacks materiality.

Fiscal year ended March 31, 2013This information is omitted because it lacks materiality.

Information relating to gains incurred from negative goodwill by reporting segmentFiscal year ended March 31, 2012

(Millions of yen)Reporting segments

Corporate items and

eliminationsTotalIndustrial

ProductsAdvanced Products

Auto-parts

Building Materials

Industrial Thermal

Insulation Work

Total

Gain on negative goodwill

55 - 10 - - 65 - 65

Note: Overview of event leading to recognition of a gain on negative goodwillA gain on negative goodwill was incurred due to the additional acquisition of shares in the

consolidated subsidiary KOKUBU INDUSTRY CORPORATION.

Fiscal year ended March 31, 2013 Not applicable.

- 36-

(Per share information)Net assets per share and the basis for calculation, net income per share and the basis for calculation, and diluted net income per share and the basis for calculation are as follows.

Item Fiscal year ended March 31, 2012


Net assets per share ¥455.66 ¥513.74

(Basis for calculation)

Total net assets (millions of yen) 55,241 62,299

Amount to be deducted from total net assets (millions of yen) 945 1,008

(Of which, subscription rights to shares) (87) (31)

(Of which, minority interests) (857) (976)

Net assets attributable to common shares at the end of the fiscal year (millions of yen) 54,296 61,291

Number of common shares at the end of the fiscal year used for the calculation of net assets per share (thousand shares)

119,161 119,304

Item Fiscal year ended March 31, 2012


Net income per share ¥58.14 ¥49.81


Net income (millions of yen) 6,914 5,936

Amount not attributed to common shareholders (millions of yen) - -

Net income attributable to common shares (millions of yen) 6,914 5,936

Average outstanding shares of common stock during the fiscal year (thousand shares) 118,930 119,186

Diluted net income per share ¥58.07 ¥45.23


Net income adjustment (millions of yen) - -

Increase in number of common shares (thousand shares) 155 12,072

(Of which, subscription rights to shares) (155) (82)

(Of which, bonds with subscription rights) - (11,989)

Overview of potential shares that were not included in the calculation of diluted net income per share because they have no dilutive effects

Subscription rights to shares, 1 classes (220 subscription rights to shares)

――――――

- 37-

(Significant subsequent events)In order to respond to the needs of customers more quickly, the Group has reviewed its

original organization and established the Energy and Industrial Plants Division as of April 1, 2013, with the Insulation Contracting Department and Products Sales Departmentincluded within this Division.

In conjunction with this, from the following consolidated fiscal year the reporting segments for segment information will be as follows: “Energy and Industrial Plants,” “Industrial Products,” “Advanced Products,” “Autoparts,” and “Building Materials.”

The amounts of net sales and profits or losses for each of these reporting segments for the current consolidated fiscal year would be as displayed below if the segments after this change were used.

(Millions of yen)

Reporting segments Adjustments

(Note 1)

Amountstated in

consolidatedfinancial

statementsEnergy and Industrial

Plants

Industrial Products

Advanced Products

Auto-parts

Building Materials Total


39,220 37,152 10,992 25,941 23,701 137,008 - 137,008

Intersegment sales or transfers

- 5,679 - - - 5,679 (5,679) -

Total 39,220 42,831 10,992 25,941 23,701 142,688 (5,679) 137,008

Segment assets 2,642 4,301 (123) 1,864 730 9,414 - 9,414

7. Supplementary materials May 13, 2013NICHIAS Corporation

(1) Key consolidated figures (Millions of yen)Full year

Fiscal year 2009

Fiscal year2010

Fiscal year2011

Fiscal year 2012

Fiscal year 2013 Fiscal year 2014

Year-on-year change

ForecastYear-on-year

change

Net sales 149,211 128,070 144,138 144,258 137,008 (5.0%) 147,000 7.3%

Operating income 6,793 6,573 11,314 11,140 9,414 (15.5%) 11,000 16.8%

Operating income margin (%) 4.6% 5.1% 7.8% 7.7% 6.9% 7.5%

Ordinary income 6,079 6,355 10,681 11,151 9,752 (12.5%) 11,000 12.8%

Ordinary income margin (%) 4.1% 5.0% 7.4% 7.7% 7.1% 7.5%

428 8,335 7,234 6,914 5,936 (14.1%) 6,300 6.1%

Net income (loss) margin (%) 0.3% 6.5% 5.0% 4.8% 4.3% 4.3%

3.60 70.10 60.84 58.14 49.81 (14.3%) 52.86 6.1%

Total assets 137,708 127,215 123,474 125,601 135,401 7.8% －－

Net assets 34,755 44,799 49,994 55,241 62,299 12.8% －－

Shareholders' equity 33,750 43,596 48,899 54,296 61,291 12.9% －－

Equity ratio (%) 24.5% 34.3% 39.6% 43.2% 45.3% －

Interest-bearing debt 52,020 41,444 32,872 31,574 36,289 14.9% －－

Interest-bearing debt ratio (%) 37.8% 32.6% 26.6% 25.1% 26.8% －

Capital expenditures 5,375 1,797 4,465 4,355 6,537 50.1% 7,500 14.7%

Depreciation and amortization 4,889 4,293 4,236 3,796 3,260 (14.1%) 3,800 16.5%

Research and development expenses 5,299 4,871 5,246 5,335 5,189 (2.7%) 5,000 (3.6%)

(2) Quarterly consolidated financial results (Millions of yen)

First quarter Second quarter Third quarter Fourth quarter First quarter Second quarter Third quarter Fourth quarterYear-on-year

change

Net sales 33,200 36,138 35,223 39,696 33,828 34,694 32,171 36,314 (8.5%)

Operating income 2,919 2,439 2,841 2,941 2,816 2,534 2,594 1,468 (50.1%)

Operating income margin (%) 8.8% 6.7% 8.1% 7.4% 8.3% 7.3% 8.1% 4.0%

Ordinary income 2,941 2,305 2,902 3,002 2,771 2,498 2,718 1,764 (41.2%)

Ordinary income margin (%) 8.9% 6.4% 8.2% 7.6% 8.2% 7.2% 8.4% 4.9%

Net income 1,874 1,484 1,795 1,759 1,883 1,099 1,654 1,299 (26.1%)

Net income margin (%) 5.6% 4.1% 5.1% 4.4% 5.6% 3.2% 5.1% 3.6%

Therefore, please note that the actual results may considerably differ from those projected due to various factors.

-38-

Financial results briefing supplementary materials for fiscal year ended March 31, 2013

Net income (loss)

Net income (loss) per share (yen)

*The statements contained in this material, which refer to current plans and projections, other than historical facts, represent forward-lookingstatements made at the discretion of top management based on information currently available.

Fiscal year 2012 Fiscal year 2013

Consolidated Financial Results for the Fiscal Year Ended...

Documents

Transcript of Consolidated Financial Results for the Fiscal Year Ended...