NITTSU SHOJI REPORTnittsushoji.co.jp/kigyou/finance/annual_report/pdf/NittsuShoji_SR... · oped into a core member of Nippon Express group. Today, Nittsu Shoji has 8 business divisions

2016NITTSU SHOJI REPORT

(April 1,2015-March 31,2016)

Nittsu Shoji Co.,Ltd. 1

Dear customers,

On behalf of Nittsu Shoji, I would like to express a heartfelt thank you

to everyone who has given his or her support to our company activity.

Our Company was launched in 1964 as Nittsu Shoji through the inte-

gration of operations in trading, insurance agency, automobile mainte-

nance, and automobile sales under the management of Nippon

Express. Going through various changes, Nittsu Shoji has since devel-

oped into a core member of Nippon Express group. Today, Nittsu

Shoji has 8 business divisions with 207 operating sites in Japan and

with 13 operating sites in overseas countries, aiming at further growth

as a multi-function composite trading company.

Yasuaki Nii

President

2014 2015 20160

50,000

100,000

150,000

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250,000

300,000

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450,000

2014 2015 20160

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0

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7,000

8,000

2014 2015 2016

2014 2015 20160

100

200

300

400

500

600

700

800

0

1,000

2,000

3,000

4,000

5,000

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7,000

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2014 2015 2016

2014 2015 20160

10,000

20,000

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70,000


1. Summary of Financial Results (March 31)

Sales(Millions of yen)

Net income(Millions of yen)

Operating income(Millions of yen)

Earnings per Share(Yen)

Ordinary income(Millions of yen)

Net Assets(Millions of yen)

Millions of yenThousands of U.S. dollars

2014 2015 2016 2016Sales ¥ 407,635 ¥ 410,616 ¥ 361,716 $ 3,209,832Operating income 5,250 6,688 6,346 56,313Ordinary income 6,932 8,505 8,211 72,863Net income 3,839 4,571 6,240 55,373Earnings per share (yen/U.S. dollars) 436.37 519.48 709.16 6.29Net assets 58,240 62,775 67,925 602,759

Stated amounts are rounded down to full units.

Real Estate and others

LP Gas

Global Procurement

Petroleum

Industrial EquipmentMaintenance &Manufacturing

Insurance

Logistics Support

General Merchandise

Distribution Equipment

Leasing

5.2%4.2% 5.6%

4.9%

0.8%

15.0%

4.1%50.8%

8.9%

0.5%

Total

¥ 407,635million

2014

others¥ 2,182 million

0.5%

LP Gas¥ 25,920 million

7.2%

Petroleum¥ 155,912 million

43.1%


¥ 20,782 million5.7%

Insurance¥ 3,486 million1.0%

Logistics Support¥ 21,670 million6.0%

General Merchandise¥ 23,124 million6.4%

Distribution Equipment¥ 27,163 million7.5%

Leasing¥ 63,860 million17.7%

2016

Global Procurement¥ 17,614 million

4.9%

Total

¥ 361,716million

Real Estate and others

LP Gas

Global Procurement

Petroleum


Insurance

Logistics Support

General Merchandise

Distribution Equipment

Leasing

5.7%4.8%

6.3%

4.7%

0.8%

15.4%

4.5%

49.3%

7.8%

0.7%

Total

¥ 410,616million

2015


Sales by Division


Millions of yenThousands ofU.S. dollars

March 31,2015

March 31,2016

March 31,2016ASSETS

Current assets: ¥ 212,894 ¥ 208,707 ＄ 1,852,045Cash and deposits 2,989 2,138 18,972Notes receivable-----trade 3,598 4,209 37,350Accounts receivable-----trade 55,318 47,562 422,060Lease receivables 9,145 9,408 83,485Inventories 2,786 3,161 28,050Installment investment assets 2,210 2,189 19,424Lease investment assets 128,777 132,499 1,175,783Deferred tax assets 907 653 5,794Other 7,653 7,246 64,300Less: allowance for doubtful accounts -493 -362 -3,212

Noncurrent assets 52,658 54,610 484,603 Property and equipment: 39,984 41,370 367,113

Buildings 17,345 17,756 157,565Structures 1,102 1,076 9,548Machinery and equipment 2,013 2,030 18,014Vehicles 393 397 3,522Tools, furniture and fixtures 496 423 3,753Land 17,428 18,126 160,848Assets for rent 1,052 1,407 12,485Other 152 153 1,357

Intangible assets 1,650 1,792 15,902Leasehold right 430 430 3,815Software 642 748 6,637Other 577 613 5,439

Investments and other assets: 11,023 11,447 101,579Investment securities 2,922 2,466 21,883Stocks of subsidiaries and affiliates 3,275 5,384 47,777Investments in capital 20 20 177Investments in capital of subsidiaries and affiliates 400 361 3,203Long-term loans receivable 1,277 34 301Long-term prepaid expenses 2,285 2355 20,898Guarantee deposits 465 450 3,993Other 725 660 5,856Less: allowance for doubtful accounts -349 -285 -2,529

Total assets ¥ 265,553 ¥ 263,317 $ 2,336,649

2. Financial Statements(English translation of the financial statements for the year ended March 31, 2016 pursuant to Article 435, Section 2 of the Companies Act of Japan)

⑴Balance Sheet



March 31,2015

March 31,2016

March 31,2016LIABILITIES

Current liabilities ¥ 120,704 ¥ 113,118 $ 1,003,798Notes payable-----trade 5,720 6,142 54,503Accounts payable-----trade 52,208 45,452 403,336Lease obligations 41 40 354Short term loans payable 4,991 4,420 39,222Current portion of long-term loans payable 40,030 43,296 384,204Accounts payable-----other 10,042 7,935 70,414Income taxes payable 2,190 945 8,385Advances received 631 846 7,507Provision for bonuses 2,726 2,594 23,018Provision for directors' bonuses 36 39 346Asset retirement obligations 1 -Other 2,024 1,405 12,467

Noncurrent liabilities 82,073 82,273 730,082Long-term loans payable 77,883 77,887 691,161Long-term lease obligations 78 55 488Long-term deposits received 1,413 1,515 13,443Provision for retirement benefits 1,434 1,505 13,355Provision for directors' retirement benefits 76 92 816Deferred tax liabilities 425 497 4,410Asset retirement obligations 626 613 5,439Other 135 105 931

Total liabilities ¥ 202,777 ¥ 195,392 ＄ 1,733,889

NET ASSETSCommon stock 4,000 4,000 35,495

Legal capital surplus 38 38 337Total capital surplus 38 38 337

Legal retained earnings 1,000 1,000 8,873 Reserve for special depreciation 31 21 186 Reserve for reduction entry of replaced property 1,402 1,789 15,875 General reserve 49,262 53,262 472,641 Retained earnings brought forward 5,531 6,602 58,585Other retained earnings 56,227 61,676 547,306

Total retained earnings 57,227 62,676 556,180Total shareholders’ equity 61,265 66,714 592,013 Valuation difference on available-for-sale securities 1,508 1,226 10,879 Deferred gains or losses on hedges 1 -15 -133Total valuation and translation adjustments 1,509 1,211 10,746Total net assets 62,775 67,925 602,759

Total liabilities and net assets ¥ 265,553 ¥ 263,317 ＄ 2,336,649



Year endedMarch,31, 2015



Sales ¥ 410,616 ¥ 361,716 ＄ 3,209,832

Cost of sales 377,367 329,297 2,922,149

Net 33,248 32,419 287,683

Net deferred gain on installment sales (＋) 0 (＋) 0 0

Gross profit 33,249 32,420 287,691

Selling, general and administrative expenses 26,560 26,073 231,369

Operating income 6,688 6,346 56,313

Non-operating income: 2,097 2,260 20,055

Interest and dividends income 159 589 5,226

Other 1,937 1,670 14,819

Non-operating expenses: 280 395 3,505

Interest expenses 190 174 1,544

Other 90 220 1,952

Ordinary income 8,505 8211 72,863

Extraordinary income: 32 1,457 12,929

Gain on sales of noncurrent assets 32 558 4,951

Gain on extinguishment of tie-in shares - 894 7,933

Other 0 5 44

Extraordinary loss: 743 339 3,008

Loss on sales of noncurrent assets 55 46 408

Loss on retirement of noncurrent assets 159 118 1,047

Loss on valuation of stocks of subsidiaries and affiliates 43 - -

Loss on valuation of investments in capital of subsidiaries360 - -

and affiliates

Impairment Loss 44 133 1,180

Other 78 41 363

Income before income taxes 7,794 9,330 82,793

Income taxes-current 3,455 2,618 23,231

Income taxes-deferred -232 471 4,179

Net Income ¥ 4,571 ¥ 6,240 ＄ 55,373

⑵Income Statement


Millions of yenShareholders’ equity

Commonstock

Capital surplus Retained earnings

Legalcapitalsurplus

Totalcapitalsurplus

Legalretainedearnings

Other retained earnings

Reserve for special

depreciation

Reserve for reduction entry of replaced property

General reserve

Retainedearnings

brought forward

Balance at April 1,2015(Thousands of U.S. dollars)

4,000＄35,495

38＄337

38＄337

1,000＄8,873

31＄275

1,402＄12,441

49,262＄437,146

5,531＄49,081

Changes during the period:Cash dividends ( Thousands of U.S. dollars)

- -791＄-7,019

Net income for the period ( Thousands of U.S. dollars)

- 6,240＄55,373

Reversal of special depreciation reserve ( Thousands of U.S. dollars)

- -10＄-88

10＄88

Provision of reserve for reduction entry of replaced prop-erty ( Thousands of U.S. dollars)

- 362＄3,212

-362＄-3,212

Reversal of reserve for reduction entry of replaced prop-erty ( Thousands of U.S. dollars)

- -10＄-88

10＄88

Increase in reserve fund due to change of tax rate ( Thousands of U.S. dollars)

- 0＄0

34＄301

-35＄-310

General reserve ( Thousands of U.S. dollars)

- 4,000＄35,495

-4,000＄-35,495

Net changes of items other than shareholders’ equity ( Thousands of U.S. dollars)

-

Total changes during the period ( Thousands of U.S. dollars)

- - - - -9＄-79

386＄3,425

4,000＄35,495

1,071＄9,503

Balance as of March 31,2016 ( Thousands of U.S. dollars)

4,000＄35,495

38＄337

38＄337

1,000＄8,873

21＄186

1,789＄15,875

53,262＄472,641

6,602＄58,585

Millions of yenShareholders’ equity Valuation and translation adjustments

Total net assetsTotalretainedearnings

Totalshareholders’

equity

Valuationdifference on

available-for-salesecurities

Deferredgains or losses

on hedges

Total valuationand translationadjustments

Balance at April 1,2015(Thousands of U.S. dollars)

57,227＄507,826

61,265＄543,659

1,508＄13,381

1＄8

1,509＄13,390

62,775＄557,059

Changes during the period:Cash dividends ( Thousands of U.S. dollars)

-791＄-7,019

-791＄-7,019

- -791＄-7,019

Net income for the period ( Thousands of U.S. dollars)

6,240＄55,373

6,240＄55,373

- 6,240＄55,373

Reversal of special depreciation reserve ( Thousands of U.S. dollars)

- - - -

Provision of reserve for reduction entry of replaced prop-erty ( Thousands of U.S. dollars)

- - - -

Reversal of reserve for reduction entry of replaced prop-erty ( Thousands of U.S. dollars)

- - - -

Increase in reserve fund due to change of tax rate ( Thousands of U.S. dollars)

- - - -

General reserve ( Thousands of U.S. dollars)

- - - -

Net changes of items other than shareholders’ equity ( Thousands of U.S. dollars)

- - -281＄-2,493

-17＄-150

-298＄-2,644

-298＄-2,644

Total changes during the period ( Thousands of U.S. dollars)

5,448＄48,345

5,448＄48,345

-281＄-2,493

-17＄-150

-298＄-2,644

5,149＄45,691

Balance as of March 31,2016 ( Thousands of U.S. dollars)

62,676＄556,180

66,714＄592,013

1,226＄10,879

-15＄-133

1,211＄10,746

67,925＄602,759

⑶Nonconsolidated Statement of Changes In Net Assets


For Translation Purposes Only

Independent Auditor’s Report

The Board of DirectorsNITTSU SHOJI Co.,Ltd.

May 16, 2016

Ernst & Young ShinNihon LLC Sumio Ishikawa Certified Public Accountant Designated and Engagement Partner Tokuro Onohara Certified Public Accountant Designated and Engagement Partner

Pursuant to Article 436, Section 2, Paragraph 1 of the Companies Act, we have audited the accompanying financial statements, which comprise the balance sheet, the statement of income, the statement of changes in net assets, the notes to the financial statements and the related supplementary schedules of NITTSU SHOJI Co., Ltd. (the “Company”) applicable to the 69th fiscal year from April 1, 2015 through March 31, 2016.

Management’s Responsibility for the Financial Statements and the Related Supplementary Schedules

Management is responsible for the preparation and fair presentation of these financial statements and the related sup-plementary schedules in accordance with accounting principles generally accepted in Japan, and for designing and operating such internal control as management determines is necessary to enable the preparation and fair presentation of the financial statements and the related supplementary schedules that are free from material misstatement, whether due to fraud or error.

Auditor’s Responsibility

Our responsibility is to express an opinion on these financial statements and the related supplementary schedules based on our audit. We conducted our audit in accordance with auditing standards generally accepted in Japan.Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the finan-cial statements and the related supplementary schedules are free from material misstatement.An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements and the related supplementary schedules. The procedures selected depend on the auditor’s judgment,including the assessment of the risks of material misstatement of the financial statements and the related supplemen-tary schedules, whether due to fraud or error. The purpose of an audit of the financial statements is not to express an opinion on the effectiveness of the entity’s internal control, but in making these risk assessments the auditor considers internal controls relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the financial statements and the related supplementary schedules.We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opin-ion.

Opinion

In our opinion, the financial statements and the related supplementary schedules referred to above present fairly, in all material respects, the financial position and results of operations of NITTSU SHOJI Co., Ltd. applicable to the 69th fis-cal year ended March 31, 2016 in conformity with accounting principles generally accepted in Japan.

Conflicts of Interest

We have no interest in the Company which should be disclosed in compliance with the Certified Public Accountants Act.

Logistics Support Division

Head OfficeTokyo Branch

NagoyaBranch

SendaiBranch

Osaka Branch

Hiroshima Branch

Sapporo Branch

Network in Japan

Fukuoka Branch


3. Profile of the Company (As of June 1, 2016)

4. Overseas Offices (As of June 1, 2016)

• Total number of full-service branches : 7• Sales Centers : 46

NITTSU SHOJI CO., LTD.

Date of establishment: May 1964Number of shares issued: 8,799,823Paid-in capital: ¥4.0 billionNumber of employees: 2,328Business establishments: 207 locations

NITTSU SHOJI U.S.A., INC.

Head Office: Chicago, USAYear Established: March 1995Lines of Business:・Trading support services・Sales of packing materials,

drop shipment, gift items・Export of packing materials,

building materials, food, and miscellaneous goods

・Real estate brokerage

NITTSU SHOJI (SHANGHAI) TRADING CO., LTD.

Head Office: Shanghai, ChinaYear Established: March 2011Lines of Business:・Mail order sales operations・Merchandise sales operations

(Packaging materials, materi-als handling equipment, trail-ers, containers, different types of pallets)

・Export and import trade busi-ness

NITTSU SHOJI (THAILAND) CO., LTD.

Head Office: Ayutthaya, ThailandBranch Office: Pinthong LS center Chonburi

ProviceYear Established: December 1996Lines of Business:・Packaging service・Import & export agency ser-

vices・Sales of packing materials・Warehousing & storage ser-

vices

PT. NITTSU SHOJI INDONESIA

Head Office: Bekasi, IndonesiaYear Established: September 2003Lines of Business:・Import & export・Packaging and related servic-

es・Warehousing services・Sales of packing materials

and packing containers

NITTSU SHOJI (WUHAN) CO., LTD.

Head Office: Wuhan Economic & Techno-

logical Development Zone, China

Branch Office: GuangzhouYear Established: April 2004Lines of Business:・Packaging & related services・Warehousing services・Sales of packing materials

and packing containers・Transportation management

NITTSU SHOJI (H.K.) CO., LTD.

Head Office: Hong Kong Special Adminis-

trative Region, ChinaYear Established: August 2004Lines of Business:・Import & export agency ser-

vices・Purchasing and sales of mer-

chandise・Wholesale・Packaging and related servic-

es

NITTSU SHOJI INDIA PRIVATE LIMITED

Head Office: Haryana, IndiaYear Established: September 2012Lines of Business:・Packing, product production,

logistics, and warehousing・Automotive parts assembly・Sales of packing materials.

NITTSU SHOJI LEASING (THAILAND) CO., LTD.

Head Office: Bangkok, ThailandYear Established: February 2013Lines of Business:・Leasing and rental business・Installment purchase arrange-

ment・Other related services

AZL (THAILAND) CO.,LTD.

Head Office: Bangkok,ThailandYear Established: February 2014Lines of Business:・Packaging service・Import & export agency ser-

vices・Sales of packing materials

NITTSU SHOJI (MYANMAR) CO., LTD.

Head Office: Yangon, MyanmarYear Established: May 2014Lines of Business:・Consultant and investigation

about logistics

NITTSU SHOJI (SINGAPORE) PTE. LTD.

Head Office: SingaporeYear Established: November 2014Lines of Business:・Import & export trade busi-

ness・Global procurement

NITTSU SHOJI (MALAYSIA) SDN. BHD.

Head office: Johor, MalaysiaYear Established: June 2014Lines of Business:・Import & export agency ser-

vices・Purchasing & sales of mer-

chandise・Packing & related services

NITTSU SHOJI MEXICO S.A.DE C.V.

Head office: Irapuato, MexicoYear Established: January 2015Lines of Business:・Packaging & related services・Ware housing services・Sales of packing materials

and packing containers・Import & export agency ser-

vices


5. Organization Chart (As of June 1, 2016)

Tokyo LS CenterOgishima LS CenterUtsunomiya LS Center

Operation DivisionLogisticsSupport Division

Nagoya LS CenterKobe LS CenterSayama LS CenterSuzuka LS CenterKyushu LS Center

Yokohama Sales CenterChiba Sales CenterFunabashi Sales CenterSaitama Sales Center

TokyoBranch

Maebashi Sales CenterUtsunomiya Sales CenterIbaraki Sales CenterKofu Sales CenterNagano Sales CenterNiigata Sales Center

Gifu Sales CenterMie Sales Center

NagoyaBranch

Sizuoka Sales CenterKanazawa Sales CenterFukui Sales CenterToyama Sales Center

Wakayama Sales CenterOsakaBranch

Kyoto Sales CenterKobe Sales Center

Regional Branch

Fukuyama Sales CenterSanin Sales CenterOkayama Sales Center

HiroshimaBranch

Yamaguchi Sales CenterTakamatsu Sales CenterMatsuyama Sales CenterTokushima Sales CenterKochi Sales Center

Kitakyushu Sales CenterSagakurume Sales CenterNagasaki Sales Center

FukuokaBranch

Oita Sales CenterKumamoto Sales CenterKagoshima Sales CenterMiyazaki Sales Center

Koriyama Sales CenterFushima Sales Center

SendaiBranch

Morioka Sales CenterAomori Sales CenterYamagata Sales CenterAkita Sales Center

Tomakomai Sales CenterHakodate Sales Center

SapporoBranch

Asahikawa Sales CenterKitami Sales CenterObihiro Sales CenterKushiro Sales Center

Physlcal Distribution Merchandise& Machinery Division

Leasing Division

Insurance Division

BusinessDepartment

Industrial Equipment Maintenance & Manufacturing Division

Petroleum Division

Liquefied Petroleum Gas Division

Business Planning Division

Global Business DivisionGlobalDepartment

Global Administration Division

General Affairs Division

Personnel & IndustrialRelations Division

Management Department

Legal Affairs & ComplianceDivision

Accounting Division

Information System Division

CorporatePlanning Department

Corporate Planning Division

Audit Department Audit Division

General Shareholders' Meeting

Board of Directors

Board of Auditors

President

Board of Corporate Officers


Our marketing symbol—“ALOZ”—was created from the letters “A” to ”Z,” which suggest “all”or “all things” and the letters “LO,” which are the first two letters in the word “logistics.”ALOZ therefore is intended to convey the meaning that, although distribution andlogistics form the base of our Company’s activities, we examineall future possibilities for our operations and provide a broad range of products and services. We intend to use ALOZ as the banner of our Company’s image strategy towardthe market and the general public.

NITTSU SHOJI CO., LTD. 14-22, Kaigan 1-chome Minato-ku, Tokyo 105-8338 Tel : 03-6734-8800 http://www.nittsushoji.co.jp

printed in Japan

Basis of the report

• This report is the English-language translation of the Japanese Announecement of financial result for the

69th fiscal year and has been prepared for “the understanding of readers outside Japan”.

• U.S. dollar amounts in this report are translated from yen, for convenience only, at the rate of ¥ 112.69

to US$1.00. Stated amounts are rounded down to full units.

Documents

NITTSU SHOJI REPORTnittsushoji.co.jp/kigyou/finance/annual_report/pdf/NittsuShoji_SR... · oped into a core member of Nippon Express group. Today, Nittsu Shoji has 8 business divisions