Change to the Straight-Line Depreciation Method for Property, Plant and Equipment in Connection with the Medium-Term Management Plan

「この変更により、従来の方法によった場合と比較して、当第３四半期連結累計期間の営業利益は742百万円、経常利益及び税金等調整前四半期純利益はそれぞれ760百万円増加しております。」

「この変更により、従来の方法によった場合と比較して、当第２四半期連結累計期間の営業利益は395百万円、経常利益及び税金等調整前四半期純利益はそれぞれ407百万円増加しております。」

「The company and its domestic consolidated subsidiaries had used the declining-balance method to depreciate property, plant and equipment, excluding leased assets, subject to certain exceptions. Beginning with the first quarter of the current fiscal year, however, we changed to the straight-line method. Under the Nittobo Group Medium-Term Management Plan Go for Next 100, which began in the fiscal year ending March 2018, higher value added is a key initiative. In connection with reviewing the production structure and formulating a capital investment plan under that initiative, we examined the use of property, plant and equipment and determined that the straight-line method, which allocates costs evenly over the useful life, would more appropriately reflect the group's economic substance because the utilization of each facility is expected to be more stable. Compared with the previous method, this change increased operating profit by ¥110 million and ordinary profit and income before income taxes by ¥116 million each for the cumulative first quarter of the current fiscal year.」