MIRA INFORM REPORT

Report Date :

08.11.2013

IDENTIFICATION DETAILS

Name :	TOTO LTD.
Registered Office :	2-1-1, Nakashima Kokurakita-ku Kitakyushu-Shi, 802-8601
Country :	Japan
Financials (as on) :	31.03.2013
Date of Incorporation :	15.05.1917
Legal Form :	Public Parent
Line of Business :	Subject is engages in the manufacture and sale of rest room products, such as sanitary chinaware and plastic and rubber formed parts; bath, kitchen and wash products, such as water faucet hardware and parts
No. of Employees :	24,921

RATING & COMMENTS

MIRA’s Rating :

Ba

RATING		STATUS	PROPOSED CREDIT LINE
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory

Maximum Credit Limits :	USD 110.140 Millions
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear

NOTES :

Any query related to this report can be made on e-mail: infodept@mirainform.com while quoting report number, name and date.

ECGC Country Risk Classification List – March 31^st, 2013

Country Name	Previous Rating (31.12.2012)	Current Rating (31.03.2013)
Japan	A1	A1

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

JAPAN - ECONOMIC OVERVIEW

In the years following World War II, government-industry cooperation, a strong work ethic, mastery of high technology, and a comparatively small defense allocation (1% of GDP) helped Japan develop a technologically advanced economy. Two notable characteristics of the post-war economy were the close interlocking structures of manufacturers, suppliers, and distributors, known as keiretsu, and the guarantee of lifetime employment for a substantial portion of the urban labor force. Both features are now eroding under the dual pressures of global competition and domestic demographic change. Japan's industrial sector is heavily dependent on imported raw materials and fuels. A small agricultural sector is highly subsidized and protected, with crop yields among the highest in the world. While self-sufficient in rice production, Japan imports about 60% of its food on a caloric basis. For three decades, overall real economic growth had been spectacular - a 10% average in the 1960s, a 5% average in the 1970s, and a 4% average in the 1980s. Growth slowed markedly in the 1990s, averaging just 1.7%, largely because of the after effects of inefficient investment and an asset price bubble in the late 1980s that required a protracted period of time for firms to reduce excess debt, capital, and labor. Modest economic growth continued after 2000, but the economy has fallen into recession three times since 2008. A sharp downturn in business investment and global demand for Japan's exports in late 2008 pushed Japan into recession. Government stimulus spending helped the economy recover in late 2009 and 2010, but the economy contracted again in 2011 as the massive 9.0 magnitude earthquake and the ensuing tsunami in March disrupted manufacturing. The economy has largely recovered in the two years since the disaster, but reconstruction in the Tohoku region has been uneven. Newly-elected Prime Minister Shinzo ABE has declared the economy his government's top priority; he has pledged to reconsider his predecessor's plan to permanently close nuclear power plants and is pursuing an economic revitalization agenda of fiscal stimulus and regulatory reform and has said he will press the Bank of Japan to loosen monetary policy. Measured on a purchasing power parity (PPP) basis that adjusts for price differences, Japan in 2012 stood as the fourth-largest economy in the world after second-place China, which surpassed Japan in 2001, and third-place India, which edged out Japan in 2012. The new government will continue a longstanding debate on restructuring the economy and reining in Japan's huge government debt, which exceeds 200% of GDP. Persistent deflation, reliance on exports to drive growth, and an aging and shrinking population are other major long-term challenges for the economy

Source : CIA

Company name and address

TOTO LTD.

2-1-1, Nakashima, Kokurakita-ku
Kitakyushu-Shi, 802-8601
Japan
Tel:	81-93-9512052
Fax:	81-93-9226789
www.toto.co.jp

Employees:

24,921

Company Type:

Public Parent

Corporate Family:

63 Companies

Traded:

Tokyo Stock Exchange:

5332

Incorporation Date:

15-May-1917

Auditor:

Ernst & Young ShinNihon LLC

Fiscal Year End:	31-Mar-2013
Reporting Currency:	Japanese Yen
Annual Sales:	5,740.3 ^1
Net Income:	204.4
Total Assets:	4,341.2 ^2
Market Value:	4,903.0
	(11-Oct-2013)

Business Description

TOTO LTD. operates in four business segments. Domestic Housing segment engages in the manufacture and sale of rest room products, such as sanitary chinaware and plastic and rubber formed parts; bath, kitchen and wash products, such as water faucet hardware and parts. Oversea Housing segment offers products for restroom, bath and basin use. New Field segment provides tiles and ceramic products, as well as manufactures and sells tile construction materials and coating materials. The Others segment engages in the real estate leasing business. On October 1, 2011, it fully acquired a subsidiary. On April 1, 2012, it transferred its ceramic product manufacturing business to a wholly owned subsidiary. On April 1, 2013, it restructured its manufacturing business in Okura second plant and Oita plant as a new wholly owned subsidiary, and transferred its sanitary ware manufacturing business in Okura business office to TOTO SANITECHNO LTD. For the three months ended 30 June 2013, TOTO LTD. revenues increased 9% to Y113.5B. Net income applicable to common stockholders increased from Y602M to Y8.25B. Revenues reflect Domestic House Business segment increase of 8% to Y91.57B, Overseas House Business American Samoa (outlying area) segment increase of 30% to Y5.36B, New Field Business-ceramic Business segment increase of 82% to Y1.69B.

Industry

Industry	Metal Products Manufacturing
ANZSIC 2006:	2293 - Metal Coating and Finishing
ISIC Rev 4:	2599 - Manufacture of other fabricated metal products n.e.c.
NACE Rev 2:	2599 - Manufacture of other fabricated metal products n.e.c.
NAICS 2012:	332999 - All Other Miscellaneous Fabricated Metal Product Manufacturing
UK SIC 2007:	2599 - Manufacture of other fabricated metal products n.e.c.
US SIC 1987:	3431 - Enameled Iron and Metal Sanitary Ware

  Key Executives

Name	Title
Kunio Harimoto	Executive President, Representative Director
Kaoru Nogami	Executive Officer, Chief Director of Marketing
Minoru Komine	Director of Tokyo Corporate
Ablet Eri	Executive Officer
Youzou Hirota	Statutory Auditor

Significant Developments

Topic	#*	Most Recent Headline	Date
Strategic Combinations	1	TOTO LTD to Cancel Capital and Marketing Alliances with The Siam Cement Public Company Limited; Amends Mid-year and Full-year Consolidated Outlook for FY 2014	29-May-2013
Positive Earnings Pre-Announcement	1	TOTO LTD Raises Consolidated Mid-year and Full-year Outlook for FY 2014	31-Jul-2013
Share Repurchases	2	TOTO LTD Completes Share Repurchase	8-Oct-2013
Dividends	1	TOTO LTD to Issue Year-end Dividend for FY 2013	26-Apr-2013
Debt Ratings	1	R&I Affirms TOTO Ltd.'s Rating at "A+"; Rating Outlook Stable	12-Nov-2012

News

Title	Date
Dorothy and Toto - Haloween 2013 Shakopee Patch (60 Words)	31-Oct-2013
De Blasio as Manager: Delegating, Yet Keeping a Tight Leash New York Times Digital (1997 Words)	31-Oct-2013
Obamacare Website Back Up After Crashing; Kendrick Johnson Death Case; Losing Faith in Government; GoDaddy Shakes it up for Super Associated Press (4722 Words)	31-Oct-2013
THE LAST WORD WITH LAWRENCE O`DONNELL for October 30, 2013, MSNBC - Part 2 Associated Press (3292 Words)	31-Oct-2013
Saving Obamacare; Full Investigation File Released in Case; Highest Inequality in U.S. Associated Press (3989 Words)	31-Oct-2013
THE LAST WORD WITH LAWRENCE O`DONNELL for October 30, 2013, MSNBC - Part 1 Associated Press (4559 Words)	31-Oct-2013

Financial Summary

As of 30-Jun-2013

Key Ratios	Company	Industry
Current Ratio (MRQ)	1.48	2.87
Quick Ratio (MRQ)	1.09	1.37
Debt to Equity (MRQ)	0.18	0.76
Sales 5 Year Growth	-1.01	1.49
Net Profit Margin (TTM) %	5.21	3.92
Return on Assets (TTM) %	6.39	2.89
Return on Equity (TTM) %	12.21	4.01

 Stock Snapshot

Traded: Tokyo Stock Exchange: 5332

As of 11-Oct-2013

   Financials in: JPY

Recent Price	1,359.00	EPS	58.93
52 Week High	1,400.00	Price/Sales	1.01
52 Week Low	529.00	Dividend Rate	14.00
Avg. Volume (mil)	2.05	Price/Earnings	14.07
Market Value (mil)	481,035.20	Price/Book	2.25
		Beta	1.12

	Price % Change	Rel S&P 500%
4 Week	-1.02%	-2.00%
13 Week	28.82%	29.34%
52 Week	143.11%	44.98%
Year to Date	110.37%	51.08%

Key IDSM Number: 91655

1 - Profit & Loss Item Exchange Rate: USD 1 = JPY 82.97047

2 - Balance Sheet Item Exchange Rate: USD 1 = JPY 94.08855

Corporate Overview

Location
2-1-1, Nakashima, Kokurakita-ku
Kitakyushu-Shi, 802-8601
Japan

Tel:	81-93-9512052
Fax:	81-93-9226789

www.toto.co.jp

Quote Symbol - Exchange
5332 - Tokyo Stock Exchange
Sales JPY(mil):	476,275.0
Assets JPY(mil):	408,454.0
Employees:	24,921
Fiscal Year End:	31-Mar-2013

Industry:

Construction - Supplies and Fixtures

Incorporation Date:	15-May-1917
Company Type:	Public Parent
Quoted Status:	Quoted

Executive President, Representative Director:

Kunio Harimoto

Industry Codes

ANZSIC 2006 Codes:
2293	-	Metal Coating and Finishing
1709	-	Other Petroleum and Coal Product Manufacturing
6712	-	Non-Residential Property Operators
2029	-	Other Ceramic Product Manufacturing
2519	-	Other Furniture Manufacturing
2299	-	Other Fabricated Metal Product Manufacturing Not Elsewhere Classified

ISIC Rev 4 Codes:
2599	-	Manufacture of other fabricated metal products n.e.c.
2392	-	Manufacture of clay building materials
2393	-	Manufacture of other porcelain and ceramic products
2813	-	Manufacture of other pumps, compressors, taps and valves
3100	-	Manufacture of furniture
6810	-	Real estate activities with own or leased property
2399	-	Manufacture of other non-metallic mineral products n.e.c.

NACE Rev 2 Codes:
2599	-	Manufacture of other fabricated metal products n.e.c.
6820	-	Renting and operating of own or leased real estate
2342	-	Manufacture of ceramic sanitary fixtures
3109	-	Manufacture of other furniture
2399	-	Manufacture of other non-metallic mineral products n.e.c.
2814	-	Manufacture of other taps and valves
2331	-	Manufacture of ceramic tiles and flags

NAICS 2012 Codes:
332999	-	All Other Miscellaneous Fabricated Metal Product Manufacturing
332913	-	Plumbing Fixture Fitting and Trim Manufacturing
337125	-	Household Furniture (except Wood and Metal) Manufacturing
324122	-	Asphalt Shingle and Coating Materials Manufacturing
327110	-	Pottery, Ceramics, and Plumbing Fixture Manufacturing
531120	-	Lessors of Nonresidential Buildings (except Miniwarehouses)
327120	-	Clay Building Material and Refractories Manufacturing

US SIC 1987:
3431	-	Enameled Iron and Metal Sanitary Ware
2952	-	Asphalt Felts and Coatings
3432	-	Plumbing Fixture Fittings and Trim
3261	-	Vitreous China Plumbing Fixtures and China and Earthenware Fittings and Bathroom Accessories
2519	-	Household Furniture, Not Elsewhere Classified
6512	-	Operators of Nonresidential Buildings
3253	-	Ceramic Wall and Floor Tile

UK SIC 2007:
2599	-	Manufacture of other fabricated metal products n.e.c.
2814	-	Manufacture of other taps and valves
2331	-	Manufacture of ceramic tiles and flags
2342	-	Manufacture of ceramic sanitary fixtures
68209	-	Letting and operating of own or leased real estate (other than Housing Association real estate and conference and exhibition services) n.e.c.
3109	-	Manufacture of other furniture
2399	-	Manufacture of other non-metallic mineral products n.e.c.

Business Description

TOTO LTD. operates in four business segments. Domestic Housing segment engages in the manufacture and sale of rest room products, such as sanitary chinaware and plastic and rubber formed parts; bath, kitchen and wash products, such as water faucet hardware and parts. Oversea Housing segment offers products for restroom, bath and basin use. New Field segment provides tiles and ceramic products, as well as manufactures and sells tile construction materials and coating materials. The Others segment engages in the real estate leasing business. On October 1, 2011, it fully acquired a subsidiary. On April 1, 2012, it transferred its ceramic product manufacturing business to a wholly owned subsidiary. On April 1, 2013, it restructured its manufacturing business in Okura second plant and Oita plant as a new wholly owned subsidiary, and transferred its sanitary ware manufacturing business in Okura business office to TOTO SANITECHNO LTD. For the three months ended 30 June 2013, TOTO LTD. revenues increased 9% to Y113.5B. Net income applicable to common stockholders increased from Y602M to Y8.25B. Revenues reflect Domestic House Business segment increase of 8% to Y91.57B, Overseas House Business American Samoa (outlying area) segment increase of 30% to Y5.36B, New Field Business-ceramic Business segment increase of 82% to Y1.69B.

More Business Descriptions

Manufacture of ceramic sanitary equipment and plumbing fittings

Sanitary Ware & Water-Related Products Mfr

TOTO LTD. (TOTO) carries out manufacturing, proposing, and marketing of water-saving toilets and water-saving shower products. It also undertakes manufacturing and sale of sanitary equipment and bathroom accessories. The company’s key product includes sanitary ware, system toilets, plumbing accessories, faucets, unit bathrooms, bathroom ventilation, heating and drying systems, toilet seats, and welfare equipment. TOTO operates through 60 consolidated companies across 18 countries including 31 in Japan, and 29 in overseas. TOTO produces and sells housing equipment, environmental products and ceramics products. The company classified housing equipment business geographically into Domestic and Overseas areas. The housing equipment mainly includes sanitary ware, toilet seats with bidet functions, unit bathrooms, metal faucet fittings, system kitchens and lavatories. The company divides its operations into three segments, namely, Domestic Housing Equipment Business, Overseas Housing Equipment business and New Domain businesses. The Domestic Housing Equipment Business sells its products to buildings and public facilities, such as hospitals and nursing-care facilities in Japan. The company also carries out both in housing remodeling and in remodeling of public facilities, including toilet renovations for various types of buildings and schools. For the fiscal year ended March 2013, the Domestic Housing Equipment Business segment reported revenue of JPY396,387m, indicating an increase of 2.71% over previous fiscal. The segment contributed 77.9% of the company’s total revenue in 2013. The Overseas Housing Equipment Business carries out its operations in Americas, China, Asia-Oceania, and Europe. In Americas region the company sells its products in the US, Mexico and Brazil to high-end market, such as hotels, commercial facilities, and World Cup and Olympic facilities. In January 2013, the company launched Neorest, a Washlet bidet toilet, which uses 3.8 L of water per flush. It has also launched new Washlets equipped with the eWater + Technology that sprays antibacterial sterilized water in the toilet and a new line of water conservation toilets. The Americas region generated revenue of JPY17,868m; China JPY51,105m; Asia-Oceania JPY25,468m; and Europe JPY2,692m. For the fiscal year ended March 2013, the Overseas Housing Equipment Business segment reported revenue of JPY97,163m, indicating an increase of 19.07% over previous fiscal. The segment contributed 19.1% of the company’s total revenue in 2013. The New Domain Business segment divides its products into two reportable segments, namely, Environmental products and Ceramic Products. Its Environmental products include Eco-friendly materials such as tiles, Hydrotect coating materials and others widely used in range of products, including exterior walls, interior walls, and floors. It also manufactures ceramics such as precision ceramics & optical components such as bonding capillaries, optical components, ceramic lamp parts, air bearing, electrostatic chucks and others. The company also manufactures ceramic power generation cells (SOFC), the core component of fuel cells. The Eco-friendly materials generated revenue of JPY9,818m, and ceramic products generated revenue of JPY5,228m. For the fiscal year ended March 2013, the New Domain Business segment reported revenue of JPY15,046m, indicating a decrease of 3.04% over previous fiscal. The segment contributed 3% of the company’s total revenue in 2013. The company research and development (R&D) division carries out ongoing research to improve the air cleansing capabilities of its proprietary photo catalyst technologies, high efficiency fuel cells to get expertise in product to reach customer demands. For the fiscal year March 2013, the company’s R&D expenses stood at JPY15,900m. Some of the key subsidiaries of the company includes TOTO Do Brasil Distribuicao e Comercio, Ltda; TOTO (China) Co.,Ltd; TOTO Asia Oceania Pte.Ltd., TOTO Manufacturing (Thailand) Co., Ltd, TOTO Vietnam Co., Ltd, TOTO Malaysia Sdn. Bhd and others. Geographically, the company divides its operations into four regions namely, Japan, America, China and others. For the fiscal year ended March 2012, the company generated 83.6% of revenue from Japan, followed by 8.6% from China, 4.1% from Americas and 3.7% from others. In April 2013, the company terminated production at the Yukuhashi Plant and consolidated its equipment and products into the Mobara Plant and the Koka Plant. In the same month, the company announced its plan to establish a manufacturing group company, TOTO Aquatechno Ltd., for the Faucets and Appliances Division.

TOTO LTD. (TOTO) carries out the manufacturing and sells sanitary equipment and bathroom accessories. The company produces and sells housing equipment, environmental products and ceramics products. Its key product includes sanitary ware, system toilets, plumbing accessories, faucets, unit bathrooms, bathroom ventilation, heating and drying systems, toilet seats, and welfare equipment. The company divides its operations into three segments, namely, Domestic Housing Equipment Business, Overseas Housing Equipment business and New Domain businesses. Geographically, the company divides its operations into four regions namely, Japan, America, China and others. TOTO is headquartered in Fukuoka, Japan. The company’s strategy has been to expand its marketing network in Latin America, a fast-growing market. Further, the company plans to enhancing its production and marketing systems in Thailand, Taiwan, India and Indonesia.The company reported revenues of (Yen) JPY 476,275.00 million during the fiscal year ended March 2013, an increase of 5.21% over 2012. The operating profit of the company was JPY 19,149.00 million during the fiscal year 2013, an increase of 32.68% over 2012. The net profit of the company was JPY 16,957.00 million during the fiscal year 2013, an increase of 82.92% over 2012.

Pottery, Ceramics, and Plumbing Fixture Manufacturing

Financial Data

Financials in:	JPY(mil)
Revenue:	476,275.0
Net Income:	16,957.0
Assets:	408,454.0
Long Term Debt:	10,760.0
Total Liabilities:	201,193.0
Working Capital:	59.9
Date of Financial Data:	31-Mar-2013

1 Year Growth

5.2%

82.9%

8.3%

Market Data

Quote Symbol:	5332
Exchange:	Tokyo Stock Exchange
Currency:	JPY
Stock Price:	1,359.0
Stock Price Date:	10-11-2013
52 Week Price Change %:	143.1
Market Value (mil):	481,035,200.0
SEDOL:	6897466
ISIN:	JP3596200000
Equity and Dept Distribution:
FY'94-02 WAS were estimated. FY'04-'07 1Q&3Q's WAS & DPS &O/S were estimated. 5/97 1.1-for-1 split. FY'08 1Q & Q3's WAS & DAWS were estimated and WAS=O/S. FY11Q3DWAS was estimated.

Subsidiaries

Company	Percentage Owned	Country
TOTO Fine Ceramics Ltd	100%	JAPAN
Toto Asia Oceania Pte Ltd	100%	SINGAPORE
Toto Europe GmbH	100%	GERMANY
Toto Germany GmbH	100%	GERMANY
Surya Toto Indonesia, PT	100%	INDONESIA
Toto Dalian Co Ltd	100%	PEOPLE'S REPUBLIC OF CHINA
Beijing Toto Co Ltd	100%	PEOPLE'S REPUBLIC OF CHINA
Toto (Beijing) Co Ltd	100%	PEOPLE'S REPUBLIC OF CHINA
Toto (Shanghai) Co Ltd	100%	PEOPLE'S REPUBLIC OF CHINA
Toto East China Co Ltd	100%	PEOPLE'S REPUBLIC OF CHINA
Toto Vietnam Co Ltd	100%	VIETNAM
Siam Sanitary Ware Co Ltd	100%	THAILAND
Toto (Malaysia) Sdn Bhd	100%	MALAYSIA
Toto (Guangzhou) Co Ltd	100%	PEOPLE'S REPUBLIC OF CHINA
Toto (HK) Ltd	100%	HONG KONG SAR
Toto USA Inc	100%	USA
Toto Korea Ltd	100%	SOUTH KOREA
Toto (China) Co Ltd	100%	PEOPLE'S REPUBLIC OF CHINA
Taiwan Toto Co Ltd	100%	TAIWAN
Nanjing Toto Co Ltd	100%	PEOPLE'S REPUBLIC OF CHINA
Toto Mexico SA de CV	100%	MEXICO
Toto Washlet Techno Ltd	100%	JAPAN
Toto Enpla Ltd	100%	JAPAN
Toto Okitsumo Coatings Ltd	100%	JAPAN
Toto Sanitechno Ltd	100%	JAPAN
TOTO High Living Ltd	100%	JAPAN
TOTO Bath Create Ltd	100%	JAPAN

Shareholders

Major Shareholders

Company's Trust Stock (6.9%); The Master Trust Bank of Japan Ltd (5.8%); Meiji Yasuda Life Insurance (5.6%); Japan Trustee Services Bank (5.1%)

Key Corporate Relationships

Auditor:	Ernst & Young ShinNihon LLC
Auditor:	Ernst & Young ShinNihon LLC, Ernst & Young ShinNihon LLC

TOTO LTD.

Strengths/Weaknesses (SWOT)

	Helpful to achieving the objective	Harmful to achieving the objective
Internal Origin (attributes of the organization)	Strengths Strong Financial Performance Wide Distribution Network Technological Developments	Weaknesses Debt Obligation Dependence on Suppliers
External Origin (attributes of the environment)	Opportunities Demand for Plumbing Fixtures and Fittings Shift Towards Water-Saving Devices Growth in Construction Spending Rising Demand for Green Projects	Threats Volatility in Raw Material Prices Lack of Awareness of the Price/Quality Tradeoff Intense Competition

Overview

TOTO LTD. (TOTO) is a leading and innovative manufacturer of ceramic fixtures for bathrooms and kitchens. The company has established itself as a market leader with significant distribution network and technological advancements. Dependence on suppliers and increased debt remains a major area of concern to the company. Additionally, challenging business and intense competition pose threats to its business. However, the company could explore the opportunities in housing segment through launching innovating water-saving devices and increasing demand for green projects could provide opportunities for the company.

Strengths

Strong Financial Performance

TOTO reported strong financial performance for the fiscal year ended March 2013, reflecting its ability to fulfill operational and business expansion needs. The company reported revenue of JPY476,275m for the fiscal year ended March 2013, indicating an increase of 5.21% over revenue in 2012. The company posted operating profit of JPY19,149m for the fiscal year ended March 2013, reflecting an increase of 32.68% over operating profit in 2012. The company recorded net profit of JPY16,957m during the fiscal year ended 2013, indicating an increase of 82.92% over net profit in 2010. The increase in the operating and net profit improved the company’s profitability. The operating margin of the company increased to 4.02% in 2013 from 3.18% in 2012. The company’s return on equity increased to 8.18% in 2013 from 5.13% in 2012. Its return on assets and return on fixed assets increased to 4.15% and 9.13% in 2013 from 2.45% and 7.38% respectively in 2012. The company’s return on capital employed increased to 7.36% in 2013 from 5.91% in 2012. Substantial increase in profitability ratios indicates that the company performed well and would be able to deliver value as expected by its shareholders. Such a strong financial performance would enhance the company’s expansion plans and growth.

Wide Distribution Network

The company has wide market presence enabling distribution of its products more efficiently. TOTO along with its 60 subsidiaries and affiliates companies, operate several showrooms and branches including sales offices in 18 countries. Besides showrooms, the company’s remodeling businesses also comprises a nationwide network of businesses affiliated with Remodeling Club Stores. The company offers its products to customers primarily in Asia, the US, China, and ASEAN member countries. In addition to Japan, the company has manufacturing facilities in China, Taiwan, Thailand, the US, Indonesia and Vietnam. TOTO has also established significant presence in India and the Middle East. The company established TOTO Do Brasil Distribuicao e Comercio, Ltda., and TOTO India Industries Pvt. Ltd. in Brazil and India to oversee strategic planning and promotion. Expansion of network could provide efficient mode for distribution of products to the customers spread across the world. This also provides aid to the company to launch new products easily compare to others with less network of distribution.

Technological Developments

TOTO has been investing in developing technologies that differentiate it from its competitors. Some of the most admired technological advancements include CeFiONtect, it’s a ceramic glazing technology which prevents waste particles, bacteria or mold from attaching to the products surface creating a permanent stain-resistant surface. Super hydrophilic photocatalyst technology forms an ultra-thin layer of water on a material surface making it super hydrophilic (non-water repelling). With regards to solid oxide fuel cells, which are gaining attention as a new eco-friendly energy source, the company is into developing Fuel Cell Stack (FCS) components featuring the world’s highest standard power generation capability. Its 4.8-liter water-saving washlet toilet models, which is sold under the product name GREEN MAX 4.8. In September 2012, the company launched new Washlets equipped with the eWater + Technology that sprays antibacterial sterilized water in the toilet and a new line of water conservation toilets. For the fiscal year March 2013, the company’s R&D expenses stood at JPY15,900m. Emphasis on new technologies and addition of innovative solutions to the existing portfolio could aid the company to acquire new customers and retain existing customers as well as target new market segments.

Weaknesses

Debt Obligation

For the fiscal year 2013, the company recorded total debt of JPY54,652m, indicating an increase of 3.82% over that in 2012. This could impair its ability to obtain financing for working capital, capital expenditure or general corporate purposes, especially if the ratings assigned to its debt securities by rating organizations were revised downward. It could restrict the flexibility of the company in responding to changing market conditions and make it more vulnerable during times of slowdown. Another major consequence of the debt is that the company would need to allocate a substantial portion of the cash flow from operations to pay the principal and interest on debt, thereby reducing funds, which could be used for expansion through acquisitions, expansion of product offerings and for marketing.

Dependence on Suppliers

TOTO provides sanitary equipment and bathroom accessory in the construction value chain. It depends highly on its suppliers and customers. Delay in supply of raw material could delay the manufacturing processes and may increase the development costs. In the context of growing demand in the global markets, it would not be feasible to the company to meet the market requirements by depending on suppliers for raw-materials used in the manufacture of sanitary equipment and bathroom accessories. Thus, the limited value chain presence could be a limiting factor for the company's competitive benchmarking as well as significant profitable growth.

Opportunities

Demand for Plumbing Fixtures and Fittings

The company could leverage the growing demand of plumbing industry for its revenue growth and profitability. According to Bureau of Labor Statistics, the employment of pipefitter and plumbers is expected to grow 26% from 2010 to 2020, faster than all the other similar occupations. New building and power plant construction and stricter water efficiency is projected to spur the demand for the plumbing products and plumbing industry in general. The bath fittings and accessories market in India was valued at INR18 billion in 2008 and is expected to reach INR40 billion in 2012. The company made an aggressive entry into the Indian market by investing $200m in vitreous plants and opened around 150 outlets across the country. With key drivers such as increasing urbanization, increase in disposable income, and growth in real estate sector and hospitality industry, the company could enhance its revenue and market share with the launch of new products that suit the Indian population.

Shift Towards Water-Saving Devices

The company could capitalize the opportunities from increasing awareness of efficient and sustainable building products. A shift towards water-saving devices by homeowners provides opportunities for the company to develop and sell such devices. Earlier generations worried about the possibility of diseases caused by improper water and sewage treatment and this resulted in the innovation of plumbing products and the development of codes by the government. The current generation is focused on water management and energy conservation. As a result, the company has the opportunity to innovate and launch water-saving devices to meet this demand for water

convenience and conservation.

Growth in Construction Spending

TOTO has an opportunity to gain contracts in emerging markets such as Brazil, India, China, Middle East and countries in the Eastern Europe, which holds high growth potential. According to Industry estimates, the GDP of the developing and emerging economies increased by 6.3% whereas the developed world increased by 1.6%. These markets are likely to remain stable as many projects are financed through the use of development bank funds throughout the regions. Further, India’s construction spending is expected to reach $370 billion by 2013. The construction spending in the country is expected to increase from $ 175 billion in 2007 to $370 billion by the end of 2013. In China, the residential building construction expenditures are expected to rise at an annual pace of 8.4% through 2014. Furthermore, the dramatic growth of both economy and population in the Middle East in recent years has increased demand for supporting infrastructure and utility facilities. Several projects are in pipeline and are likely to be completed before 2030. The projects in various sectors amount to $1.3 trillion in civil engineering projects, $200 billion in transportation projects, $217 billion in power and water utilities projects and $1.9 trillion in energy projects. As the company has its presence in the Middle East it can use its vast experience in manufacturing business to capitalize on these opportunities. The company through its presence in these countries could gain immensely from the growth opportunities provided.

Rising Demand for Green Projects

TOTO could capitalize on the growing demand for green projects in the construction industry to sustain its growth. According to industry estimates, the market for green building materials is quiet favorable. There is huge demand for the conversion of existing buildings into energy efficient ones. The sectors expected to register green building growth are education, government, industrial, office, healthcare, hospitality and retail. The global market for green building material is expected to be worth $406 billion by 2015, driven largely by environmental consciousness, high energy costs, and the understanding that green buildings contribute to long-term benefits such as improved efficiency, cost savings and higher production. Governments around the world are announcing stimulus packages in their efforts to revive the economy and boost demand. The main reason for government initiatives across the world is to promote sustainable design and environmentally friendly buildings as they result in significant energy savings. These stimulus packages include substantial investment in renewable energy, electric transmission, water and transportation infrastructure (roads, bridges, airports, and railroads). As a part of their broad stimulus package, governments in Europe and China planned to spend about 1% to 5% of their GDP (Gross Domestic Product) on green infrastructure projects. The company already has research and development activities in the green projects. TOTO could gain from these green projects in the long-run by obtaining several new contracts.

Threats

Volatility in Raw Material Prices

The company engages in the production and distribution of sanitary fittings to both household and commercial segments. For which, it utilizes raw materials such as ferrous materials, non-ferrous materials and other electrical accessories. The company’s operations and revenues are significantly dependent upon the prices of and demand for raw materials. In the recent years, the commodities prices were highly volatile due to economic downturn and slowdown. Moreover, the energy commodities prices are likely to remain volatile in the near future. The prices, the company pays for raw materials can fluctuate a lot depending on supply and demand of these commodities in the markets. The increase in raw material prices could increase the company’s product cost and therefore it may witness decline in sales volume to the extent price increases are taken into account. The frequent pricing changes and imbalances could adversely affect the company’s operations and profitability.

Lack of Awareness of the Price/Quality Tradeoff

Low brand image and price/quality tradeoff can pose problems to the company. This is because building products are highly commoditized items and creating a strong brand identity has been the problem among players within this market. Lack of consumer awareness regarding price/quality tradeoff in choice of building materials is another major problem. Within the market, there is a wide spectrum of products - ranging from inexpensive products to higher cost products available for buyers. Besides, builders can always substitute high quality products in an effort to reduce project costs, especially when bidding has become very intense. Ignorance among homeowners regarding variation in the quality of products or consideration of cost can hamper the sale of Kohler’s brands.

Intense Competition

The industrial markets are highly competitive and evolving, which can be a cause for concern to the company. With the entry of more new players in the market, the current level of competition is expected to further intensify in the construction industry. TOTO develops, produces and markets a broad range of products and services. The company’s various products face competition from new and innovative products of its competitors. The company’s competitors include several small and big construction companies such as, Kohler Co., Grohe AG, Masco Corporation, LIXIL Group Corporation and others whose financial, technical, and marketing resources are greater than those of the company. This poses threat to business of TOTO and could have impact on the market share and leadership position.

 Corporate Structure News

Company Name	Company Type	Location	Country	Industry	Sales (USD mil)	Employees
TOTO LTD.	Parent	Kitakyushu-Shi	Japan	Metal Products Manufacturing	5,740.3	24,921
Surya Toto Indonesia Tbk PT	Subsidiary	Jakarta	Indonesia	Non-Metallic Mineral Product Manufacturing	168.4	2,915
Surya Toto Indonesia, Pt Tbk	Branch	Tangerang, West Java	Indonesia	Metal Products Manufacturing		2,541
Toto USA, Inc.	Subsidiary	Morrow, GA	United States	Construction and Hardware Materials Wholesale	140.5	1,500
Bulthaup GmbH & Co Küchensysteme	Subsidiary	Bodenkirchen	Germany	Furniture Manufacturing	145.7	625
Totokiki (Malaysia) Sdn. Bhd.	Subsidiary	Seremban, Negeri Sembilan	Malaysia	Machinery and Equipment Manufacturing		500
Royal Toto Metal Co., Ltd.	Subsidiary	Incheon	Korea, Republic of	Metal Products Manufacturing		335
Taiwan Toto Co., Ltd.	Subsidiary	Taipei	Taiwan	Metal Products Manufacturing		200
Toto (China) Co. Ltd.	Subsidiary	Beijing	China	Metal Products Manufacturing	30.5	100
Toto (Beijing) Co., Ltd.	Subsidiary	Beijing, Beijing	China	Non-Metallic Mineral Product Manufacturing	55.0	1,126
Toto Eastchina Co., Ltd.	Subsidiary	Shanghai, Shanghai	China	Non-Metallic Mineral Product Manufacturing	34.6	800
Beijing Toto Co., Ltd.	Subsidiary	Beijing	China	Metal Products Manufacturing		700
Toto Machine (Guangzhou) Co., Ltd.	Subsidiary	Guangzhou, Guangdong	China	Metal Products Manufacturing	30.8	170
Toto (China) Co., Ltd.	Subsidiary	Shanghai	China	Construction and Hardware Materials Wholesale		70
Nanjing Toto Co., Ltd.	Affiliates	Nanjing	China	Metal Products Manufacturing
Toto Dalian Co., Ltd.	Subsidiary	Dalian	China	Metal Products Manufacturing
TOTO Germany GmbH	Subsidiary	Bottrop, Nordrhein-Westfalen	Germany	Miscellaneous Chemical Manufacturing		56
CERA TRADING LTD.	Subsidiary	Tokyo	Japan	Construction and Hardware Materials Wholesale		38
TOTO Europe GmbH	Subsidiary	Düsseldorf, Nordrhein-Westfalen	Germany	Miscellaneous Chemical Manufacturing		35
Toto (H.K.) Limited	Subsidiary	Wan Chai, Hong Kong	Hong Kong	Construction and Hardware Materials Wholesale		20
Toto Kiki (H.K.) Ltd.	Subsidiary	Hong Kong	Hong Kong	Metal Products Manufacturing		10
Kelim Toto Co., Ltd.	Subsidiary	Kyongbuk	Korea, Republic of	Furniture Manufacturing		4
Toto Sani Techno K.K.	Subsidiary	Nakatsu, Oita	Japan	Non-Metallic Mineral Product Manufacturing	244.0
Toto Kansai Sales Ltd.	Subsidiary	Osaka, Osaka	Japan	Construction and Hardware Materials Wholesale	225.5
Toto Kyushu Sales Ltd.	Subsidiary	Fukuoka, Fukuoka	Japan	Machinery Wholesale	187.8
Toto Tohoku Hambai K.K.	Subsidiary	Sendai, Miyagi	Japan	Construction and Hardware Materials Wholesale	92.3
Toto Chugoku Hambai K.K.	Subsidiary	Hiroshima, Hiroshima	Japan	Construction and Hardware Materials Wholesale	78.2
Toto Hokkaido Hambai K.K.	Subsidiary	Sapporo, Hokkaido	Japan	Construction and Hardware Materials Wholesale	73.4
Toto Shikoku Sales Ltd.	Subsidiary	Takamatsu, Kagawa	Japan	Construction and Hardware Materials Wholesale	39.4
Toto Remodel Service K.K.	Subsidiary	Kitakyushu, Fukuoka	Japan	Residential and Commercial Building Construction	20.1
Siam Mariwasa Toto, Inc.	Joint Venture	Pasig	Philippines	Metal Products Manufacturing	4.2
TOTO MALAYSIA SDN. BHD.	Subsidiary	Seremban, Negeri Sembilan Daru	Malaysia	Miscellaneous Chemical Manufacturing
TOTO Do Brasil Distribuicao e Comercio, Ltda.	Subsidiary	Sao Paulo	Brazil	Paper Wholesale
TOTO INFOM LTD.	Subsidiary	Kitakyushu, Fukuoka	Japan	Computer Programming
TOTO Finance LTD.	Subsidiary	Kitakyushu, Fukuoka	Japan	Investment Services
TOTO LOGICOM LTD.	Subsidiary	Kitakyushu, Fukuoka	Japan	Consulting Services
TOTO Maintenance LTD.	Subsidiary	Tokyo	Japan	Industrial Machinery Repair and Maintenance
TOTO EXPERT LTD.	Subsidiary	Tokyo	Japan	Residential Real Estate Leasing
TOTO WASHLET TECHNO LTD.	Subsidiary	Kitakyushu, Fukuoka	Japan	Miscellaneous Chemical Manufacturing
TOTO ENPLA LTD.	Subsidiary	Miyako, Fukuoka	Japan	Rubber and Plastic Product Manufacturing
SUNAQUA TOTO LTD.	Subsidiary	Kitakyushu, Fukuoka	Japan	Metal Products Manufacturing
TOTO Fine Ceramics LTD.	Subsidiary	Futaba, Fukushima	Japan	Metal Products Manufacturing
TOTO MEXICO, S.A. DE C.V.	Subsidiary	Cienega de Flores, Nuevo Leon	Mexico	Metal Products Manufacturing
TOTO ASIA OCEANIA PTE. LTD.	Subsidiary	Singapore	Singapore	Miscellaneous Chemical Manufacturing
Toto Malaysia Sdn. Bhd.	Subsidiary	Seremban, Negeri Sembilan	Malaysia	Electromedical and Control Instruments Manufacturing	83.4	550
TOTO Bath Create LTD.	Subsidiary	Sakura, Chiba	Japan	Miscellaneous Chemical Manufacturing
TOTO High Living LTD.	Subsidiary	Mobara, Chiba	Japan	Metal Products Manufacturing
TOTO EXCERA LTD.	Subsidiary	Tokyo	Japan	Construction and Hardware Materials Wholesale
TOTO MATERIA LTD.	Subsidiary	Toki, Gifu	Japan	Construction and Hardware Materials Wholesale
TOTO MTEC LTD.	Subsidiary	Tokyo	Japan	Construction and Hardware Materials Wholesale
TOTO AQUAIR LTD.	Subsidiary	Tokyo	Japan	Construction and Hardware Materials Wholesale
TOTO Engineering LTD.	Subsidiary	Tokyo	Japan	Construction and Hardware Materials Wholesale
TOTO PLATEC LTD.	Subsidiary	Buzen, Fukuoka	Japan	Miscellaneous Chemical Manufacturing
TOTO BUSINETZ LTD.	Subsidiary	Kitakyushu, Fukuoka	Japan	Real Estate Agents and Brokers
TOTO INDIA INDUSTRIES PVT. LTD.	Subsidiary	Mumbai, Maharashtra	India	Paper Product Manufacturing
TOTO VIETNAM CO., LTD.	Subsidiary	Hanoi	Viet Nam	Miscellaneous Chemical Manufacturing
TOTO Chubu Sales LTD.	Subsidiary	Nagoya, Aichi	Japan	Construction and Hardware Materials Wholesale
Nakayama Kenzai LTD.	Subsidiary	Kumagaya, Saitama	Japan	Construction and Hardware Materials Wholesale
TOTO (SHANGHAI) CO., LTD.	Subsidiary	Shanghai	China	Paper Product Manufacturing
TOTO AMERICAS HOLDINGS, INC.	Subsidiary	Morrow, GA	United States	Investment Services
TOTO KOREA LTD.	Subsidiary	Seoul	Korea, Republic of	Paper Product Manufacturing
TOTO EAST CHINA CO., LTD.	Subsidiary	Shanghai	China	Miscellaneous Chemical Manufacturing
ICOT HONG KONG LTD.	Subsidiary	Hong Kong	Hong Kong	Non-Metallic Mineral Product Manufacturing

TOTO LTD.

Competitors Report

CompanyName	Location	Employees	Ownership
Geberit AG	Jona, Switzerland	6,243	Public
Grohe AG	Duesseldorf, Germany	8,700	Private
Kohler Company	Kohler, Wisconsin, United States	31,000	Private
LIXIL Group Corp	Chiyoda-Ku, Japan	45,602	Public
Masco Corporation	Taylor, Michigan, United States	30,000	Public

Executives Report

Board of Directors

Name	Title	Function
Teruo Kise	Chairman of the Board, Chairman of the Board of Directors, Representative Director	Chairman
Biography: Mr. Teruo Kise has been serving as Chairman of the Board, Chairman of the Board of Directors and Representative Director in TOTO LTD since April 2009. He joined the Company in April 1970. His previous titles include Senior Managing Executive Officer and President in the Company. He obtained his Bachelor's degree in Education from Kyoto University in March 1970. Age: 66 Education: Kyoto University, B (Education)
Yuji Ebisumoto	Managing Executive Officer, Director	Director/Board Member
Biography: Mr. Yuji Ebisumoto has been serving as Managing Executive Officer and Director in TOTO LTD since June 27, 2013. He joined the Company in September 1983. His previous titles include Chief Director of Toilet Room Production, Manager of Production Technology Center, Executive Officer and Senior Executive Officer. He obtained a Bachelor's degree in Engineering from Hiroshima University in March 1978. Age: 58 Education: Hiroshima University, B (Engineering)
Kiyoshi Furube	Senior Managing Executive Officer, Director	Director/Board Member
Biography: Mr. Kiyoshi Furube has been serving as Senior Managing Executive Officer and Director in TOTO LTD since April 1, 2012. He joined the Company in April 1977. His previous titles include Executive Officer, Managing Executive Officer, Deputy Chief Senior Director of Marketing and Chief Senior Director of Marketing in the Company. Age: 58
Kunio Harimoto	Executive President, Representative Director	Director/Board Member
Biography: Mr. Kunio Harimoto has been serving as Executive President and Representative Director in TOTO LTD since April 1, 2009. He joined the Company in April 1973. His previous titles include Executive Officer, Managing Executive Officer and Senior Managing Executive Officer in the Company. He obtained his Bachelor's degree in Commerce from Waseda University in March 1973. Age: 62 Education: Waseda University, B (Commerce)
Akio Hasunuma	Executive Vice President, Representative Director	Director/Board Member
Biography: Mr. Akio Hasunuma has been serving as Executive Vice President and Representative Director in TOTO LTD since April 1, 2010. He joined the Company in April 1973. His previous titles include Senior Managing Executive Officer, President of Osaka Office, Executive Officer, Chief Senior Director of Marketing, Chief Director of CSR Promotion, Managing Executive Officer and President of Kansai Office in the Company. He obtained his Bachelors' degree of Economics from Keio University in March 1973. Age: 62 Education: Keio University, B (Economics)
Kenji Ito	Board Member	Director/Board Member
Nobuyasu Kariu	Executive Officer	Director/Board Member
Madoka Kitamura	Senior Managing Executive Officer, Director	Director/Board Member
Biography: Mr. Madoka Kitamura has been serving as Senior Managing Executive Officer and Director in TOTO LTD since June 27, 2013. He joined the Company in April 1981. His previous titles include Executive Officer, Managing Executive Officer, Director of Business Planning and Director of Bathroom Business in the Company. Age: 56
Noriaki Kiyota	Managing Executive Officer, Director	Director/Board Member
Biography: Mr. Noriaki Kiyota has been serving as Managing Executive Officer and Director in TOTO LTD since June 28, 2012. He joined the Company in April 1984. His previous titles include Director Wash-let Planning, Senior Director of International Business, Chief Director of Wash-let Production and Executive Officer in the Company. He obtained his Bachelor's degree in Economics from Nagasaki University in March 1984. Age: 51 Education: Nagasaki University, B (Economics)
Nozomu Morimura	Managing Executive Officer, Director	Director/Board Member
Biography: Mr. Nozomu Morimura has been serving as Managing Executive Officer and Director in TOTO LTD since June 27, 2013. He joined the Company in April 1980. His previous titles include President of Eastern Kanto Office, Executive Officer and President of Nagoya Office. He obtained his Bachelor's degree in Law from Kakushuin University in March 1980. Age: 55 Education: Gakushuin University, LLB
Shinichiro Nakazato	Executive Officer	Director/Board Member
Hiroki Ogawa	Independent Director	Director/Board Member
Biography: Mr. Hiroki Ogawa has been serving as Independent Director in TOTO LTD since June 27, 2013. He is also working for SAIBU GAS Co., LTD. He obtained his Bachelor's degree in Political Economy from Meiji University in March 1964. Age: 71 Education: Meiji University, B (Political Economy)
Takuma Otoshi	Director	Director/Board Member
Tatsuhiko Saruwatari	Executive Vice President, Representative Director	Director/Board Member
Biography: Mr. Tatsuhiko Saruwatari has been serving as Executive Vice President and Representative Director in TOTO LTD since June 27, 2013. He joined the Company in April 1976. His previous titles include Managing Executive Officer, Executive Officer, Manager of Chuo Technology Center, Manager of Research and Technology Group, Manager of Equipment Business Group and Manager of System Product Group in the Company. He obtained a Bachelor of Engineering from Hokkaido University in March 1976. Age: 60 Education: Hokkaido University, BE
Hiromichi Tabata	Senior Managing Executive Officer, CEO of Subsidiary, Director	Director/Board Member
Biography: Mr. Hiromichi Tabata has been serving as Senior Managing Executive Officer and Director in TOTO LTD, as well as Chief Executive Officer (CEO) of a subsidiary, TOTO AMERICAS HOLDINGS, INC., since April 2010. He joined the Company in April 1978. His previous titles include Executive Officer, Manager of International Business Group, Director of Restroom Business and Managing Executive Officer in the Company. Age: 59
Shunji Yamada	Managing Executive Officer, President of Subsidiary, Director	Director/Board Member
Biography: Mr. Shunji Yamada has been serving as Managing Executive Officer and Director in TOTO LTD, as well as President and Representative Director of a subsidiary, since April 2013. He joined the Company in April 1979. His previous titles include Director of Kitchen and Bathroom Business, Director of Equipment Business and Executive Officer in the Company. Age: 57
Kazumoto Yamamoto	Independent Director	Director/Board Member
Biography: Mr. Kazumoto Yamamoto has been serving as Independent Director in TOTO LTD since June 2006. He is also serving as Advisor in a company that is under the new name, Ashahi Kasei Corporation. Age: 79

Executives

Name	Title	Function
Ablet Eri	Executive Officer	President
Kunio Harimoto	Executive President, Representative Director	President
Biography: Mr. Kunio Harimoto has been serving as Executive President and Representative Director in TOTO LTD since April 1, 2009. He joined the Company in April 1973. His previous titles include Executive Officer, Managing Executive Officer and Senior Managing Executive Officer in the Company. He obtained his Bachelor's degree in Commerce from Waseda University in March 1973. Age: 62 Education: Waseda University, B (Commerce)
Naoki Kamohara	Executive Officer	President
Soichi Abe	Executive Officer, Chief Director of International Business	Division Head Executive
Taiichi Aso	Senior Executive Officer, Chief Director of Sanitation Pottery Production, President of Subsidiary	Division Head Executive
Yuji Ebisumoto	Managing Executive Officer, Director	Division Head Executive
Biography: Mr. Yuji Ebisumoto has been serving as Managing Executive Officer and Director in TOTO LTD since June 27, 2013. He joined the Company in September 1983. His previous titles include Chief Director of Toilet Room Production, Manager of Production Technology Center, Executive Officer and Senior Executive Officer. He obtained a Bachelor's degree in Engineering from Hiroshima University in March 1978. Age: 58 Education: Hiroshima University, B (Engineering)
Yukihiro Fukuda	Executive Officer, Director of General Search Institute	Division Head Executive
Shiro Fukutomo	Senior Executive Officer, Director of Equipment Faucet Business, President of Subsidiary	Division Head Executive
Kiyoshi Furube	Senior Managing Executive Officer, Director	Division Head Executive
Biography: Mr. Kiyoshi Furube has been serving as Senior Managing Executive Officer and Director in TOTO LTD since April 1, 2012. He joined the Company in April 1977. His previous titles include Executive Officer, Managing Executive Officer, Deputy Chief Senior Director of Marketing and Chief Senior Director of Marketing in the Company. Age: 58
Jun Hatakeyama	Executive Officer, Chief Director of Production Technology	Division Head Executive
Masanori Hayashi	Executive Officer, Chief Director of Customer	Division Head Executive
Ryosuke Hayashi	Executive Officer, Chief Director of Wash-let Production, President of Subsidiary	Division Head Executive
Aburagani Hidetoshi	Executive Officer, Director of Chinese Business, General Manager of Subsidiary	Division Head Executive
Koichi Hirohata	Senior Executive Officer, President of Tokyo Office	Division Head Executive
Kenji Homma	Executive Officer, President of Chubu Office	Division Head Executive
Naoki Kanbara	Executive Officer, President of Subsidiary	Division Head Executive
Masayuki Kato	Senior Executive Officer, Chief Director of Logistics, President of Subsidiary	Division Head Executive
Madoka Kitamura	Senior Managing Executive Officer, Director	Division Head Executive
Biography: Mr. Madoka Kitamura has been serving as Senior Managing Executive Officer and Director in TOTO LTD since June 27, 2013. He joined the Company in April 1981. His previous titles include Executive Officer, Managing Executive Officer, Director of Business Planning and Director of Bathroom Business in the Company. Age: 56
Noriaki Kiyota	Managing Executive Officer, Director	Division Head Executive
Biography: Mr. Noriaki Kiyota has been serving as Managing Executive Officer and Director in TOTO LTD since June 28, 2012. He joined the Company in April 1984. His previous titles include Director Wash-let Planning, Senior Director of International Business, Chief Director of Wash-let Production and Executive Officer in the Company. He obtained his Bachelor's degree in Economics from Nagasaki University in March 1984. Age: 51 Nagasaki University, B (Economics)
Shushiro Koga	Senior Executive Officer, President of Subsidiary	Division Head Executive
Satoshi Miyazaki	Senior Executive Officer, Chief Director of Business Planning	Division Head Executive
Nozomu Morimura	Managing Executive Officer, Director	Division Head Executive
Biography: Mr. Nozomu Morimura has been serving as Managing Executive Officer and Director in TOTO LTD since June 27, 2013. He joined the Company in April 1980. His previous titles include President of Eastern Kanto Office, Executive Officer and President of Nagoya Office. He obtained his Bachelor's degree in Law from Kakushuin University in March 1980. Age: 55 Education: Gakushuin University, LLB
Hirotoshi Naka	Senior Executive Officer, Chief Director of Purchasing	Division Head Executive
Yuichi Narikiyo	Executive Officer, Chief Director of Human Resources Development	Division Head Executive
Kaoru Nogami	Executive Officer, Chief Director of Marketing	Division Head Executive
Daijiro Nogata	Executive Officer, Director of American Business, President of Subsidiaries	Division Head Executive
Toru Oka	Executive Officer, Director of Kitchen and Washing Business, President of Subsidiary	Division Head Executive
Takatoshi Osabe	Executive Officer, President of Kyushu Office	Division Head Executive
Seitaro Oyamada	Executive Officer, Chief Director of Special Marketing	Division Head Executive
Yoshimitsu Saeki	Senior Executive Officer, Director of Ceramic Business, President of Subsidiary	Division Head Executive
Seiji Sakai	Executive Officer, President of Kansai Office	Division Head Executive
Kazuo Sako	Executive Officer, Director of Environment Construction Material Business, President of Subsidiary	Division Head Executive
Takayuki Shimizu	Executive Officer, Director of Bathroom Business, President of Subsidiary	Division Head Executive
Hiromichi Tabata	Senior Managing Executive Officer, CEO of Subsidiary, Director	Division Head Executive
Biography: Mr. Hiromichi Tabata has been serving as Senior Managing Executive Officer and Director in TOTO LTD, as well as Chief Executive Officer (CEO) of a subsidiary, TOTO AMERICAS HOLDINGS, INC., since April 2010. He joined the Company in April 1978. His previous titles include Executive Officer, Manager of International Business Group, Director of Restroom Business and Managing Executive Officer in the Company. Age: 59
Eiji Takahashi	Senior Executive Officer, President of Subsidiary	Division Head Executive
Kazuhito Tanaka	Executive Officer, Deputy Chief Director of Customer, President of Subsidiary	Division Head Executive
Kazuo Watanabe	Executive Officer, Director of Asia and Oceania Business, President of Subsidiary	Division Head Executive
Shunji Yamada	Managing Executive Officer, President of Subsidiary, Director	Division Head Executive
Biography: Mr. Shunji Yamada has been serving as Managing Executive Officer and Director in TOTO LTD, as well as President and Representative Director of a subsidiary, since April 2013. He joined the Company in April 1979. His previous titles include Director of Kitchen and Bathroom Business, Director of Equipment Business and Executive Officer in the Company. Age: 57
Youzou Hirota	Statutory Auditor	Accounting Executive
Junichi Minegishi	Statutory Auditor	Accounting Executive
Motohiro Oniki	Statutory Auditor	Accounting Executive
Masamilchi Takemoto	Statutory Auditor	Accounting Executive
Minoru Komine	Director of Tokyo Corporate	Investor Relations Executive
Shoji Sakai	Executive Officer	Other

Significant Developments

TOTO LTD Completes Share Repurchase

Oct 08, 2013

TOTO LTD announced that it has completed the share repurchase disclosed on July 31, 2013. The Company has repurchased 7,875,000 shares of its common stock, for JPY 9,999,786,000 in total, during the period from August 1, 2013 to October 7, 2013.

TOTO LTD to Repurchase Shares and to Retire Common Stock

Jul 31, 2013

TOTO LTD announced that it will repurchase up to 20,000,000 shares (5.78% stake) of its common stock for up to JPY 10,000 million in total during the period from August 1, 2013 to December 20, 2013. In addition, the Company will retire 17,700,000 shares (a 4.76% stake) of its common stock on August 9, 2013. After that, the total amount of its shares outstanding will be 353,962,595 shares.

TOTO LTD Raises Consolidated Mid-year and Full-year Outlook for FY 2014

Jul 31, 2013

TOTO LTD announced that it has raised its consolidated mid-year outlook for revenue from JPY 240,500 million to JPY 246,500 million, operating profit from JPY 8,700 million to JPY 13,000 million, ordinary profit from JPY 9,400 million to JPY 14,900 million, net profit from JPY 11,600 million to JPY 15,800 million and earning per share from JPY 33.79 to JPY 46.02, for the fiscal year ending March 2014. In addition, the Company has also raised its consolidated full-year outlook for revenue from JPY 517,000 million to JPY 523,000 million, operating profit from JPY 29,000 million to JPY 33,300 million, ordinary profit from JPY 30,000 million to JPY 35,500 million, net profit from JPY 24,200 million to JPY 32,400 million and earning per share from JPY 70.49 to JPY 94.38 , for the fiscal year ending March 2014. The Company raised the outlook due to the increased sales and the record of profit on selling of real estate.

TOTO LTD to Cancel Capital and Marketing Alliances with The Siam Cement Public Company Limited; Amends Mid-year and Full-year Consolidated Outlook for FY 2014

May 29, 2013

TOTO LTD announced that it has decided to cancel the capital and marketing alliances with The Siam Cement Public Company Limited, on July 2, 2013. As a result, the Company will sell its stake in two joint ventures Siam Sanitary Ware Co.,Ltd. and The Siam Sanitary Fittings Co.,Ltd. to Siam Cement, and the Company's subsidiary TOTO Asia Oceania Pte. Ltd. will acquire the remaining stake in a joint venture TOTO Manufacturing(Thailand) Co.,Ltd. from Siam Cement. The Company also has reaffirmed its mid-year consolidated outlook for revenue of JPY 240,500 million, operating profit of JPY 8,700 million, ordinary profit of JPY 9,400 million, and raised its mid-year consolidated outlook for net profit from JPY 7,400 million to JPY 11,600 million, and earnings per share from JPY 21.56 to JPY 33.79, for the fiscal year ending March 31, 2014. The Company has reaffirmed its full-year consolidated outlook for revenue of JPY 517,000 million, operating profit of JPY 29,000 million, ordinary profit of JPY 30,000 million, and raised its mid-year consolidated outlook for net profit from JPY 20,000 million to JPY 24,200 million, and earnings per share from JPY 58.26 to JPY 70.49, for the fiscal year ending March 31, 2014. This is due to the sale of stake in joint ventures.

TOTO LTD to Issue Year-end Dividend for FY 2013

Apr 26, 2013

TOTO LTD announced that it has decided to issue a year-end dividend of JPY 8 per share, above the latest dividend forecast of JPY 6 per share, disclosed on January 31, 2013, to all the shareholders of record as of March 31, 2013, effective June 6, 2013.

R&I Affirms TOTO Ltd.'s Rating at "A+"; Rating Outlook Stable

Nov 12, 2012

Rating and Investment Information, Inc. (R&I) announced that it has affirmed the rating on TOTO Ltd. at "A+". The rating outlook is stable.

 News

Dorothy and Toto - Haloween 2013 Shakopee Patch (60 Words)	31-Oct-2013
De Blasio as Manager: Delegating, Yet Keeping a Tight Leash New York Times Digital (1997 Words)	31-Oct-2013
Obamacare Website Back Up After Crashing; Kendrick Johnson Death Case; Losing Faith in Government; GoDaddy Shakes it up for Super Associated Press (4722 Words)	31-Oct-2013
THE LAST WORD WITH LAWRENCE O`DONNELL for October 30, 2013, MSNBC - Part 2 Associated Press (3292 Words)	31-Oct-2013
Saving Obamacare; Full Investigation File Released in Case; Highest Inequality in U.S. Associated Press (3989 Words)	31-Oct-2013
THE LAST WORD WITH LAWRENCE O`DONNELL for October 30, 2013, MSNBC - Part 1 Associated Press (4559 Words)	31-Oct-2013
Sebelius Testifies in House on ObamaCare Web Site; Discussion of the Hearing; Interview with Rep. Lee Terry and Rep. Peter Welch - Part 1 Associated Press (4773 Words)	31-Oct-2013
Sebelius Testifies in House on ObamaCare Web Site; Discussion of the Hearing; Interview with Rep. Lee Terry and Rep. Peter Welch - Part 2 Associated Press (4773 Words)	31-Oct-2013
Lions take on Konyaspor with eye on Kobenhavn Zaman (724 Words)	31-Oct-2013
Formula One: Hamilton not upset by prospect of Brawn exit Agence France-Presse (294 Words)	31-Oct-2013
GungHo struck by sales decline MCV (106 Words)	31-Oct-2013

Annual IncomeStatement

	31-Mar-2013	31-Mar-2012	31-Mar-2011	31-Mar-2010	31-Mar-2009
Period Length	12 Months	12 Months	12 Months	12 Months	12 Months
UpdateType/Date	Updated Normal 31-Mar-2013	Updated Normal 31-Mar-2012	Updated Normal 31-Mar-2011	Updated Normal 31-Mar-2010	Updated Normal 31-Mar-2009
Filed Currency	JPY	JPY	JPY	JPY	JPY
Exchange Rate (Period Average)	82.970472	78.961215	85.691434	92.941082	100.484331
Auditor	Ernst & Young ShinNihon LLC	Ernst & Young ShinNihon LLC	Ernst & Young LLP	Ernst & Young LLP	Ernst & Young LLP
Auditor Opinion	Unqualified	Unqualified	Unqualified	Unqualified	Unqualified with Explanation
Net Sales	5,740.3	5,733.0	5,059.5	4,539.7	4,622.7
Revenue	5,740.3	5,733.0	5,059.5	4,539.7	4,622.7
Total Revenue	5,740.3	5,733.0	5,059.5	4,539.7	4,622.7
Cost of Revenue	3,654.7	3,632.2	3,188.9	2,965.7	3,148.3
Cost of Revenue, Total	3,654.7	3,632.2	3,188.9	2,965.7	3,148.3
Gross Profit	2,085.6	2,100.8	1,870.6	1,574.0	1,474.4
Selling/General/Administrative Expense	648.5	667.9	608.8	548.9	543.1
Labor & Related Expense	748.6	765.0	695.8	630.6	581.8
Advertising Expense	157.4	154.4	155.6	120.2	136.9
Total Selling/General/Administrative Expenses	1,554.6	1,587.3	1,460.1	1,299.7	1,261.7
Research & Development	192.6	210.8	182.1	141.1	130.2
Depreciation	56.6	64.9	64.8	62.3	62.8
Depreciation/Amortization	56.6	64.9	64.8	62.3	62.8
Restructuring Charge	34.2	11.5	30.3	16.5	0.0
Impairment-Assets Held for Use	17.1	34.6	12.5	10.3	138.4
Impairment-Assets Held for Sale	0.0	0.2	7.4	4.2	21.5
Other Unusual Expense (Income)	-0.4	8.8	25.0	0.0	20.8
Unusual Expense (Income)	50.9	55.1	75.1	31.0	180.7
Other Operating Expense	0.0	0.0	-	-	-
Other Operating Expenses, Total	0.0	0.0	-	-	-
Total Operating Expense	5,509.5	5,550.2	4,971.1	4,499.8	4,783.7
Operating Income	230.8	182.8	88.4	39.9	-161.0
Interest Expense - Non-Operating	-3.4	-4.8	-4.9	-7.6	-8.9
Interest Expense, Net Non-Operating	-3.4	-4.8	-4.9	-7.6	-8.9
Interest Income - Non-Operating	11.8	10.3	6.4	5.1	13.5
Investment Income - Non-Operating	36.7	16.5	10.4	17.9	2.2
Interest/Investment Income - Non-Operating	48.5	26.7	16.8	23.0	15.6
Interest Income (Expense) - Net Non-Operating Total	45.1	21.9	11.9	15.4	6.7
Gain (Loss) on Sale of Assets	0.1	0.2	-1.0	0.5	17.1
Other Non-Operating Income (Expense)	-5.1	-6.8	-4.6	1.2	-6.8
Other, Net	-5.1	-6.8	-4.6	1.2	-6.8
Income Before Tax	270.9	198.1	94.8	57.0	-144.0
Total Income Tax	58.6	70.3	24.7	39.9	111.5
Income After Tax	212.3	127.8	70.1	17.1	-255.5
Minority Interest	-7.9	-10.4	-10.3	-7.6	-5.8
Net Income Before Extraord Items	204.4	117.4	59.8	9.5	-261.3
Net Income	204.4	117.4	59.8	9.5	-261.3
Miscellaneous Earnings Adjustment	0.0	-	-0.1	0.0	0.0
Total Adjustments to Net Income	0.0	-	-0.1	0.0	0.0
Income Available to Common Excl Extraord Items	204.4	117.4	59.7	9.4	-261.3
Income Available to Common Incl Extraord Items	204.4	117.4	59.7	9.4	-261.3
Basic/Primary Weighted Average Shares	342.9	342.0	344.3	346.4	346.4
Basic EPS Excl Extraord Items	0.60	0.34	0.17	0.03	-0.75
Basic/Primary EPS Incl Extraord Items	0.60	0.34	0.17	0.03	-0.75
Dilution Adjustment	-	-	0.0	0.0	0.0
Diluted Net Income	204.4	117.4	59.7	9.4	-261.3
Diluted Weighted Average Shares	343.8	342.8	344.9	346.8	346.4
Diluted EPS Excl Extraord Items	0.59	0.34	0.17	0.03	-0.75
Diluted EPS Incl Extraord Items	0.59	0.34	0.17	0.03	-0.75
Dividends per Share - Common Stock Primary Issue	0.17	0.13	0.12	0.11	0.10
Gross Dividends - Common Stock	58.4	43.8	40.4	37.3	34.5
Interest Expense, Supplemental	3.4	4.8	4.9	7.6	8.9
Depreciation, Supplemental	235.1	232.4	230.4	221.4	223.2
Total Special Items	50.8	54.8	76.1	30.5	163.6
Normalized Income Before Tax	321.8	252.9	170.9	87.6	19.6
Effect of Special Items on Income Taxes	11.0	19.5	19.9	10.7	57.3
Inc Tax Ex Impact of Sp Items	69.6	89.8	44.6	50.6	168.8
Normalized Income After Tax	252.1	163.2	126.3	37.0	-149.1
Normalized Inc. Avail to Com.	244.2	152.8	115.9	29.3	-155.0
Basic Normalized EPS	0.71	0.45	0.34	0.08	-0.45
Diluted Normalized EPS	0.71	0.45	0.34	0.08	-0.45
Rental Expenses	118.4	113.8	105.4	105.6	100.5
Advertising Expense, Supplemental	157.4	154.4	118.9	88.6	102.0
Research & Development Exp, Supplemental	192.6	210.8	182.1	141.1	130.2
Reported Operating Profit	281.7	237.8	163.5	70.9	65.3
Reported Ordinary Profit	314.3	247.4	161.7	79.0	59.1
Normalized EBIT	281.7	237.8	163.5	70.9	19.7
Normalized EBITDA	516.9	470.2	394.0	292.3	242.9
Current Tax - Total	51.7	34.3	-	-	-
Current Tax - Total	51.7	34.3	-	-	-
Deferred Tax - Total	6.9	36.0	-	-	-
Deferred Tax - Total	6.9	36.0	-	-	-
Income Tax - Total	58.6	70.3	-	-	-
Interest Cost - Domestic	42.9	45.3	42.4	39.3	36.4
Service Cost - Domestic	56.4	59.5	61.3	50.9	47.8
Prior Service Cost - Domestic	-3.2	-3.4	-3.1	-2.9	-2.7
Expected Return on Assets - Domestic	-35.6	-36.2	-33.7	-27.0	-29.5
Actuarial Gains and Losses - Domestic	33.4	33.8	28.7	31.5	18.5
Domestic Pension Plan Expense	93.9	99.0	95.6	91.8	70.5
Total Pension Expense	93.9	99.0	95.6	91.8	70.5
Discount Rate - Domestic	2.50%	2.50%	2.50%	2.50%	2.50%
Expected Rate of Return - Domestic	3.50%	3.50%	3.50%	3.50%	3.50%
Total Plan Interest Cost	42.9	45.3	42.4	39.3	36.4
Total Plan Service Cost	56.4	59.5	61.3	50.9	47.8
Total Plan Expected Return	-35.6	-36.2	-33.7	-27.0	-29.5

Annual Balance Sheet

Financials in: USD (mil)

	31-Mar-2013	31-Mar-2012	31-Mar-2011	31-Mar-2010	31-Mar-2009
UpdateType/Date	Updated Normal 31-Mar-2013	Updated Normal 31-Mar-2012	Updated Normal 31-Mar-2011	Updated Normal 31-Mar-2010	Updated Normal 31-Mar-2009
Filed Currency	JPY	JPY	JPY	JPY	JPY
Exchange Rate	94.088557	82.385362	82.88	93.44	98.77
Auditor	Ernst & Young ShinNihon LLC	Ernst & Young ShinNihon LLC	Ernst & Young LLP	Ernst & Young LLP	Ernst & Young LLP
Auditor Opinion	Unqualified	Unqualified	Unqualified	Unqualified	Unqualified with Explanation
Cash & Equivalents	428.7	369.2	418.3	369.5	356.9
Short Term Investments	180.7	42.5	162.9	198.0	111.4
Cash and Short Term Investments	609.4	411.7	581.2	567.5	468.3
Accounts Receivable - Trade, Gross	892.6	1,025.7	887.4	746.1	735.5
Provision for Doubtful Accounts	-3.8	-5.2	-4.9	-6.2	-6.5
Trade Accounts Receivable - Net	888.8	1,020.5	882.5	740.0	729.0
Total Receivables, Net	888.8	1,020.5	882.5	740.0	729.0
Inventories - Finished Goods	331.3	378.9	350.1	273.2	340.7
Inventories - Work In Progress	95.8	109.3	92.2	80.6	103.9
Inventories - Raw Materials	115.2	127.4	126.0	110.2	121.5
Total Inventory	542.2	615.5	568.2	464.0	566.2
Deferred Income Tax - Current Asset	55.9	53.8	56.0	36.1	34.0
Other Current Assets	87.6	102.2	134.5	120.4	102.8
Other Current Assets, Total	143.5	156.0	190.6	156.5	136.8
Total Current Assets	2,184.0	2,203.7	2,222.5	1,927.9	1,900.2
Property/Plant/Equipment - Net	1,356.2	1,518.3	1,462.5	1,338.2	1,348.2
Goodwill, Net	-	0.8	1.3	1.9	5.6
Intangibles, Net	123.5	143.7	140.0	134.5	129.2
LT Investment - Affiliate Companies	74.9	65.7	81.8	62.4	-
LT Investments - Other	371.5	358.4	354.8	312.8	291.5
Long Term Investments	446.4	424.1	436.6	375.2	291.5
Note Receivable - Long Term	0.6	0.9	1.3	1.8	2.2
Deferred Income Tax - Long Term Asset	121.1	172.6	198.2	175.6	173.0
Other Long Term Assets	109.4	112.9	112.9	93.1	84.8
Other Long Term Assets, Total	230.5	285.5	311.2	268.6	257.8
Total Assets	4,341.2	4,576.9	4,575.3	4,048.1	3,934.7
Accounts Payable	653.8	684.5	691.9	510.6	524.3
Accrued Expenses	262.0	274.8	235.8	198.8	179.9
Notes Payable/Short Term Debt	466.5	251.7	345.4	503.4	555.1
Current Portion - Long Term Debt/Capital Leases	-	121.4	6.7	53.7	3.8
Income Taxes Payable	18.3	14.8	24.8	17.9	18.0
Other Payables	60.8	109.3	80.6	65.1	70.7
Other Current Liabilities	124.4	156.3	159.6	132.5	134.3
Other Current liabilities, Total	203.5	280.4	265.0	215.5	223.1
Total Current Liabilities	1,585.8	1,612.8	1,544.8	1,482.1	1,486.1
Long Term Debt	114.4	265.9	387.6	110.1	152.4
Total Long Term Debt	114.4	265.9	387.6	110.1	152.4
Total Debt	580.9	639.0	739.8	667.2	711.3
Minority Interest	65.4	62.3	53.8	49.0	44.8
Pension Benefits - Underfunded	342.0	415.0	441.2	420.7	408.7
Other Long Term Liabilities	30.7	30.6	27.9	17.4	15.6
Other Liabilities, Total	372.8	445.6	469.1	438.1	424.3
Total Liabilities	2,138.3	2,386.7	2,455.3	2,079.3	2,107.7
Common Stock	378.1	431.9	429.3	380.8	360.2
Common Stock	378.1	431.9	429.3	380.8	360.2
Additional Paid-In Capital	318.4	362.7	359.5	319.0	301.0
Retained Earnings (Accumulated Deficit)	1,725.6	1,810.6	1,729.7	1,515.9	1,461.2
Treasury Stock - Common	-172.8	-203.0	-208.5	-155.5	-146.4
Unrealized Gain (Loss)	35.2	-32.4	-31.5	-2.7	-50.7
Translation Adjustment	-81.7	-179.0	-158.4	-91.0	-98.2
Other Equity	0.0	-	-	-	-
Other Comprehensive Income	-	-0.6	0.0	2.5	0.0
Other Equity, Total	-81.7	-179.6	-158.4	-88.5	-98.2
Total Equity	2,202.8	2,190.3	2,120.0	1,968.9	1,827.1
Total Liabilities & Shareholders’ Equity	4,341.2	4,576.9	4,575.4	4,048.2	3,934.8
Shares Outstanding - Common Stock Primary Issue	343.3	342.5	341.4	346.3	346.4
Total Common Shares Outstanding	343.3	342.5	341.4	346.3	346.4
Treasury Shares - Common Stock Primary Issue	28.4	29.2	30.2	25.3	25.3
Employees	24,921	25,092	24,159	23,143	23,935
Number of Common Shareholders	28,871	32,067	31,269	31,816	32,516
Total Long Term Debt, Supplemental	305.4	421.1	394.4	163.8	156.2
Long Term Debt Maturing within 1 Year	191.0	155.2	6.7	53.7	3.8
Long Term Debt Maturing in Year 2	15.6	215.9	147.5	0.1	50.8
Long Term Debt Maturing in Year 3	36.5	15.2	207.6	109.9	0.1
Long Term Debt Maturing in Year 4	37.5	15.7	0.0	0.0	101.3
Long Term Debt Maturing in Year 5	1.2	3.0	32.6	0.0	0.0
Long Term Debt Maturing in 2-3 Years	52.1	231.1	355.0	110.0	50.9
Long Term Debt Maturing in 4-5 Years	38.7	18.7	32.6	0.1	101.3
Long Term Debt Matur. in Year 6 & Beyond	23.6	16.1	0.0	0.0	0.2
Total Capital Leases, Supplemental	1.7	2.7	2.6	2.2	1.4
Capital Lease Payments Due in Year 1	0.7	1.1	1.0	0.7	0.4
Capital Lease Payments Due in Year 2	0.5	0.7	0.8	0.7	0.4
Capital Lease Payments Due in Year 3	0.2	0.4	0.4	0.5	0.4
Capital Lease Payments Due in Year 4	0.1	0.2	0.2	0.2	0.2
Capital Lease Payments Due in Year 5	0.1	0.1	0.1	0.1	0.0
Capital Lease Payments Due in 2-3 Years	0.7	1.2	1.3	1.2	0.7
Capital Lease Payments Due in 4-5 Years	0.2	0.2	0.3	0.2	0.3
Cap. Lease Pymts. Due in Year 6 & Beyond	0.1	0.1	0.1	0.0	0.0
Pension Obligation - Domestic	1,545.4	1,776.2	1,771.9	1,592.9	1,511.5
Plan Assets - Domestic	1,023.1	1,041.8	1,003.8	897.5	736.4
Funded Status - Domestic	-522.3	-734.4	-768.0	-695.4	-775.1
Total Funded Status	-522.3	-734.4	-768.0	-695.4	-775.1
Discount Rate - Domestic	2.50%	2.50%	2.50%	2.50%	2.50%
Expected Rate of Return - Domestic	3.50%	3.50%	3.50%	3.50%	3.50%
Prepaid Benefits - Domestic	6.5	7.1	6.7	5.7	5.6
Accrued Liabilities - Domestic	-342.0	-415.0	-441.2	-420.7	-403.1
Other Assets, Net - Domestic	186.8	326.5	333.6	280.3	372.0
Net Assets Recognized on Balance Sheet	-148.7	-81.4	-100.9	-134.7	-25.6
Total Plan Obligations	1,545.4	1,776.2	1,771.9	1,592.9	1,511.5
Total Plan Assets	1,023.1	1,041.8	1,003.8	897.5	736.4

Annual Cash Flows

Financials in: USD (mil)

	31-Mar-2013	31-Mar-2012	31-Mar-2011	31-Mar-2010	31-Mar-2009
Period Length	12 Months	12 Months	12 Months	12 Months	12 Months
UpdateType/Date	Updated Normal 31-Mar-2013	Updated Normal 31-Mar-2012	Updated Normal 31-Mar-2011	Updated Normal 31-Mar-2010	Updated Normal 31-Mar-2009
Filed Currency	JPY	JPY	JPY	JPY	JPY
Exchange Rate (Period Average)	82.970472	78.961215	85.691434	92.941082	100.484331
Auditor	Ernst & Young ShinNihon LLC	Ernst & Young ShinNihon LLC	Ernst & Young LLP	Ernst & Young LLP	Ernst & Young LLP
Auditor Opinion	Unqualified	Unqualified	Unqualified	Unqualified	Unqualified with Explanation
Net Income/Starting Line	270.9	198.1	94.7	57.0	-144.0
Depreciation	235.1	232.4	230.4	221.4	223.2
Depreciation/Depletion	235.1	232.4	230.4	221.4	223.2
Unusual Items	9.8	34.0	31.2	11.9	188.3
Other Non-Cash Items	-45.6	-48.8	-41.7	-14.5	-26.2
Non-Cash Items	-35.9	-14.8	-10.5	-2.6	162.1
Accounts Receivable	12.7	-105.4	-45.4	22.9	108.9
Inventories	21.0	-51.1	-56.3	138.3	36.7
Accounts Payable	24.2	-5.3	117.8	-48.6	-71.7
Accrued Expenses	18.0	34.0	17.0	4.8	-30.2
Other Operating Cash Flow	-9.8	-10.6	-19.7	-31.3	-47.1
Changes in Working Capital	66.1	-138.4	13.4	86.1	-3.4
Cash from Operating Activities	536.3	277.3	328.1	361.8	237.9
Purchase of Fixed Assets	-256.1	-252.8	-186.0	-108.1	-161.0
Purchase/Acquisition of Intangibles	-34.6	-47.8	-34.1	-41.2	-41.3
Capital Expenditures	-290.8	-300.6	-220.1	-149.3	-202.3
Acquisition of Business	-	-	-	0.0	3.8
Sale of Business	-	0.0	-0.2	0.0	-
Sale of Fixed Assets	13.7	10.0	2.8	3.4	57.8
Sale/Maturity of Investment	44.8	30.8	52.6	58.6	2.2
Investment, Net	0.0	-2.1	-0.8	-3.5	-0.3
Purchase of Investments	-32.8	-19.7	-89.1	-64.0	-46.9
Sale of Intangible Assets	-	-	-	-	0.0
Other Investing Cash Flow	-11.8	-2.6	-10.8	-4.7	0.3
Other Investing Cash Flow Items, Total	13.9	16.3	-45.5	-10.2	16.9
Cash from Investing Activities	-276.9	-284.3	-265.6	-159.5	-185.4
Other Financing Cash Flow	1.3	-2.6	-6.7	-7.6	-3.9
Financing Cash Flow Items	1.3	-2.6	-6.7	-7.6	-3.9
Cash Dividends Paid - Common	-45.4	-43.3	-40.4	-37.3	-41.4
Total Cash Dividends Paid	-45.4	-43.3	-40.4	-37.3	-41.4
Repurchase/Retirement of Common	-1.7	-0.3	-33.4	-1.2	-3.6
Common Stock, Net	-1.7	-0.3	-33.4	-1.2	-3.6
Issuance (Retirement) of Stock, Net	-1.7	-0.3	-33.4	-1.2	-3.6
Short Term Debt Issued	361.6	379.9	291.7	215.2	398.1
Short Term Debt Reduction	-301.3	-405.3	-326.8	-107.6	-447.8
Short Term Debt, Net	94.3	-133.5	-207.7	-84.7	28.1
Long Term Debt Issued	85.4	32.7	262.0	2.8	0.0
Long Term Debt Reduction	-160.2	-7.0	-58.5	-3.6	-1.2
Long Term Debt, Net	-74.8	25.7	203.5	-0.7	-1.2
Issuance (Retirement) of Debt, Net	19.5	-107.9	-4.2	-85.4	26.9
Cash from Financing Activities	-26.3	-154.1	-84.7	-131.5	-22.0
Foreign Exchange Effects	37.9	-7.1	-25.3	1.3	-28.6
Net Change in Cash	271.1	-168.1	-47.4	72.1	1.9
Net Cash - Beginning Balance	400.4	588.9	590.1	472.0	434.6
Net Cash - Ending Balance	671.6	420.8	542.6	544.0	436.5
Cash Interest Paid	3.2	4.7	5.1	8.1	8.4
Cash Taxes Paid	46.8	48.5	37.8	37.2	35.1

 Annual Income Statement

	31-Mar-2013	31-Mar-2012	31-Mar-2011	31-Mar-2010	31-Mar-2009
Period Length	12 Months	12 Months	12 Months	12 Months	12 Months
UpdateType/Date	Updated Normal 31-Mar-2013	Updated Normal 31-Mar-2012	Updated Normal 31-Mar-2011	Updated Normal 31-Mar-2010	Updated Normal 31-Mar-2009
Filed Currency	JPY	JPY	JPY	JPY	JPY
Exchange Rate (Period Average)	82.970472	78.961215	85.691434	92.941082	100.484331
Auditor	Ernst & Young ShinNihon LLC	Ernst & Young ShinNihon LLC	Ernst & Young LLP	Ernst & Young LLP	Ernst & Young LLP
Auditor Opinion	Unqualified	Unqualified	Unqualified	Unqualified	Unqualified with Explanation
Net sales	5,740.3	5,733.0	5,059.5	4,539.7	4,622.7
Total Revenue	5,740.3	5,733.0	5,059.5	4,539.7	4,622.7
Rounding adjustment Income Statement	0.0	0.0	-	-	-
Total	3,654.7	3,632.2	3,188.9	2,965.7	3,102.6
Other Selling/General/Admin. Expense	346.3	353.5	-	-	-
Shipment & delivery exps.	183.9	199.2	188.6	165.1	171.8
Sales incentive expenses	39.6	41.1	36.7	31.6	34.9
Advertisement expense	117.8	113.3	118.9	88.6	102.0
Payrolls & Bonuses	597.7	607.9	554.1	495.3	467.6
Provision for Dirs' Bonuses	1.7	1.0	0.4	-	-
Periodic Retire. Benefits	43.3	46.7	42.6	45.0	29.4
Welfare Expense	106.0	109.3	98.7	90.3	84.7
Depreciation expense	56.6	64.9	64.8	62.3	62.8
Provision for doubtful accounts(SGA)	0.0	1.3	-	4.9	2.2
Rent expense	118.4	113.8	105.4	105.6	100.5
Research & Development expense	192.6	210.8	182.1	141.1	130.2
Other SGA	-	-	314.7	273.4	268.5
Other Unusual Expense (Income)	0.0	-	-	-	-
Provision of allowance for doubtful acco	5.2	-	-	-	-
Compensation income	-6.3	-	-	-	-
SP L.Val.Mkbl.Secs.	0.0	0.1	7.3	2.8	21.3
SP L.Val.Member	0.0	0.1	0.1	1.3	0.2
SP Impairment Loss	10.6	29.7	3.5	3.9	132.4
SP L on val. of inventories	-	-	-	0.0	45.6
SP business reorganization exp.	34.2	11.5	30.3	16.5	0.0
SP L on adj. for change of acct. asset	-	0.0	10.6	0.0	-
Earthquake losses	0.7	8.8	14.4	0.0	-
SP L.Repair Machine	-	-	-	0.0	20.8
NOP L.Retire.Fix Asset	6.5	5.0	9.0	6.4	6.0
NOP L.Retire.Product	-	-	-	-	0.0
Total Operating Expense	5,509.5	5,550.2	4,971.1	4,499.8	4,783.7
NOP Interest Income	11.8	10.3	6.4	5.1	7.4
Foreign exchange gains	6.8	-	-	-	-
NOP Dividend Income	8.8	7.8	7.2	5.2	-
NOP Equity Gain	20.2	13.1	14.2	14.0	6.9
Other Non-Operating Income (Expense)	0.0	-0.1	-	-	-
NOP Subsidy income	-	-	0.0	4.6	0.0
NOP Int. on Mktbl. Secs.	-	-	-	-	6.1
NOP Other Non-Ops.Income	14.1	11.0	13.1	12.3	12.0
NOP Interest Expense	-3.4	-4.8	-4.9	-7.6	-8.9
NOP Sales Discounts	-12.7	-12.3	-10.5	-9.4	-11.3
NOP Exchange Loss	0.0	-5.1	-11.2	-3.4	-4.9
NOP Other Non-Ops.Exp.	-6.5	-5.4	-7.1	-6.3	-7.5
SP G.Sale Land	0.4	0.2	0.2	0.5	17.1
SP G.Sale Inv.Secs.	1.0	0.6	0.2	2.3	0.2
SP G on sale of memberships	-	-	-	-	0.0
SP Loss on sale of land	-0.3	0.0	-0.2	0.0	0.0
SP L.Sale Inv.Secs.	-	0.0	0.0	-0.1	0.0
SP Loss-sale of affiliated securities	-	0.0	-1.0	0.0	-
Net Income Before Taxes	270.9	198.1	94.8	57.0	-144.0
Total income taxes	58.6	70.3	24.7	39.9	111.5
Net Income After Taxes	212.3	127.8	70.1	17.1	-255.5
Minority interests in income	-7.9	-10.4	-10.3	-7.6	-5.8
Net Income Before Extra. Items	204.4	117.4	59.8	9.5	-261.3
Net Income	204.4	117.4	59.8	9.5	-261.3
balancing item NIBX	0.0	-	-	-	-
Earning Adjustment	-	-	-0.1	0.0	0.0
Income Available to Com Excl ExtraOrd	204.4	117.4	59.7	9.4	-261.3
Income Available to Com Incl ExtraOrd	204.4	117.4	59.7	9.4	-261.3
Basic Weighted Average Shares	342.9	342.0	344.3	346.4	346.4
Basic EPS Excluding ExtraOrdinary Items	0.60	0.34	0.17	0.03	-0.75
Basic EPS Including ExtraOrdinary Items	0.60	0.34	0.17	0.03	-0.75
Dilution Adjustment	-	-	0.0	0.0	0.0
Diluted Net Income	204.4	117.4	59.7	9.4	-261.3
Diluted Weighted Average Shares	343.8	342.8	344.9	346.8	346.4
Diluted EPS Excluding ExtraOrd Items	0.59	0.34	0.17	0.03	-0.75
Diluted EPS Including ExtraOrd Items	0.59	0.34	0.17	0.03	-0.75
DPS-Ordinary Shares	0.17	0.13	0.12	0.11	0.10
Gross Dividends - Common Stock	58.4	43.8	40.4	37.3	34.5
Normalized Income Before Taxes	321.8	252.9	170.9	87.6	19.6
Inc Tax Ex Impact of Sp Items	69.6	89.8	44.6	50.6	168.8
Normalized Income After Taxes	252.1	163.2	126.3	37.0	-149.1
Normalized Inc. Avail to Com.	244.2	152.8	115.9	29.3	-155.0
Basic Normalized EPS	0.71	0.45	0.34	0.08	-0.45
Diluted Normalized EPS	0.71	0.45	0.34	0.08	-0.45
Advertising Exp.	39.6	41.1	-	-	-
Advertising Exp.	117.8	113.3	118.9	88.6	102.0
Rental Exp.	118.4	113.8	105.4	105.6	100.5
R&D Exp.	192.6	210.8	182.1	141.1	130.2
Interest Expense	3.4	4.8	4.9	7.6	8.9
BC - Depreciation of Fixed Assets	235.1	-	-	-	-
Amort of Tangible Assets-Current Portion	-	232.4	-	-	-
Depreciation	-	-	230.4	221.4	223.2
Income taxes-current	51.7	34.3	-	-	-
Current Tax - Total	51.7	34.3	-	-	-
Income taxes-deferred	6.9	36.0	-	-	-
Deferred Tax - Total	6.9	36.0	-	-	-
Income Tax - Total	58.6	70.3	-	-	-
Reported Operating Profit	281.7	237.8	163.5	70.9	65.3
Reported Ordinary Profit	314.3	247.4	161.7	79.0	59.1
Service Cost	56.4	59.5	61.3	50.9	47.8
Interest Cost	42.9	45.3	42.4	39.3	36.4
Expected Return of Plan Asset	-35.6	-36.2	-33.7	-27.0	-29.5
Actuarial G/L	33.4	33.8	28.7	31.5	18.5
Prior Service Cost	-3.2	-3.4	-3.1	-2.9	-2.7
Domestic Pension Plan Expense	93.9	99.0	95.6	91.8	70.5
Total Pension Expense	93.9	99.0	95.6	91.8	70.5
Discount Rate(MIN)-Retirement Cost(Domes	2.50%	2.50%	-	-	-
Discount Rate	-	-	2.50%	2.50%	2.50%
Expected return on assets(MIN)-Retiremen	3.50%	3.50%	-	-	-
Expected Rate of Return	-	-	3.50%	3.50%	3.50%

Annual Balance Sheet

Financials in: USD (mil)

	31-Mar-2013	31-Mar-2012	31-Mar-2011	31-Mar-2010	31-Mar-2009
UpdateType/Date	Updated Normal 31-Mar-2013	Updated Normal 31-Mar-2012	Updated Normal 31-Mar-2011	Updated Normal 31-Mar-2010	Updated Normal 31-Mar-2009
Filed Currency	JPY	JPY	JPY	JPY	JPY
Exchange Rate	94.088557	82.385362	82.88	93.44	98.77
Auditor	Ernst & Young ShinNihon LLC	Ernst & Young ShinNihon LLC	Ernst & Young LLP	Ernst & Young LLP	Ernst & Young LLP
Auditor Opinion	Unqualified	Unqualified	Unqualified	Unqualified	Unqualified with Explanation
Cash & Deposit	428.7	369.2	418.3	369.5	356.9
Notes and accounts receivable-trade	892.6	1,025.7	887.4	746.1	735.5
Short-term investment securities	180.7	42.5	162.9	198.0	111.4
Inventories - merchandise/finished goods	331.3	378.9	350.1	273.2	340.7
Inventories - work-in-process	95.8	109.3	92.2	80.6	103.9
Inventories - raw materials/supplies	115.2	127.4	126.0	110.2	121.5
Deferred Tax	55.9	53.8	56.0	36.1	34.0
Rounding adjustment Assets	0.0	0.0	-	-	-
Other Cur. Asset	87.6	102.1	134.5	120.4	102.8
Allow. for Doubt	-3.8	-5.2	-4.9	-6.2	-6.5
Total Current Assets	2,184.0	2,203.7	2,222.5	1,927.9	1,900.2
Other total PPE, Net	0.0	0.0	-	-	-
Buildings and structures, net	535.8	597.6	576.8	555.5	558.7
Machinery Equipment And Vehicles	298.6	286.4	235.3	256.2	278.1
Land	370.3	444.0	462.0	420.4	400.3
Construction	72.7	120.0	102.6	30.5	22.3
Other	78.8	70.3	85.9	75.6	88.9
Other Total Intangible Assets, Net	-	0.0	-	-	-
Goodwill	-	0.8	1.3	1.9	5.6
Software	96.0	114.9	120.6	115.3	107.8
Other Intangible	27.5	28.8	19.4	19.2	21.4
Investment Securities - Balancing value	371.5	-	-	-	-
Other LT Investments (Held for Sale / He	-	358.4	-	-	-
Investments-Sec.	-	-	354.8	312.8	291.5
Invt Secs Noncons, Asc, Affd Cos	74.9	65.7	-	-	-
Inv. Securities.affiliates&sub.	-	-	81.8	62.4	-
Long-term loans receivable	0.6	0.9	1.3	1.8	2.2
Rounding adjustment Assets	0.0	0.0	-	-	-
Other Other Long Term Assets	0.0	0.0	-	-	-
Guaranty Deposit	73.5	70.8	67.9	62.5	60.9
Deferred tax assets	121.1	172.6	198.2	175.6	173.0
Other Assets	44.3	47.3	50.6	40.3	30.4
Reserve Bad Debt	-8.5	-5.2	-5.6	-9.7	-6.5
Translation Adj.	-	-	-	0.0	-
Total Assets	4,341.2	4,576.9	4,575.3	4,048.1	3,934.7
Notes and accounts payable-trade	653.8	684.5	691.9	510.6	524.3
Comm.Paper	159.4	121.4	144.8	160.5	50.6
Short-term loans payable	306.8	129.0	199.2	339.4	500.8
Current Portion Of Bonds(1)	-	121.4	-	-	-
Current portion of bonds	-	-	0.0	-	0.5
Cur. Port. LTD	-	-	6.7	53.7	3.3
Accounts payable-other	60.8	109.3	80.6	65.1	70.7
Accrued Expense	237.7	250.5	218.1	179.6	166.0
Income Tax Pybl.	18.3	14.8	24.8	17.9	18.0
Sale Tax Pybl.	22.9	23.3	17.3	19.2	13.9
Provision for directors'' bonuses	1.5	1.0	0.4	0.0	0.0
Rounding adjustment Liability	0.1	0.0	-	-	-
Reserve for Repair Machince Loss	0.6	1.2	1.8	2.6	11.0
Provision for loss on business restructu	2.2	9.4	11.0	6.6	0.0
Provision for earthquake losses	-	0.0	3.1	0.0	-
Notes payable-facilities	0.3	1.3	1.4	3.5	3.7
Other Cur. Liabs	121.5	145.6	143.7	123.4	123.3
Total Current Liabilities	1,585.8	1,612.8	1,544.8	1,482.1	1,486.1
Corp. Bond	-	0.0	120.7	107.0	101.2
Long-term loans payable	114.4	265.9	267.0	3.0	51.1
Total Long Term Debt	114.4	265.9	387.6	110.1	152.4
Accru.Retire.Ben	342.0	415.0	441.2	420.7	408.7
Other Long Term Liabilities	0.0	-	-	-	-
Rounding adjustment Liability	-	0.0	-	-	-
Other LT Liabs.	30.7	30.6	27.9	17.4	15.6
Minority Interest	65.4	62.3	53.8	49.0	44.8
Total Liabilities	2,138.3	2,386.7	2,455.3	2,079.3	2,107.7
Rounding adjustment Equity	0.0	-	-	-	-
Common Stock	378.1	431.9	429.3	380.8	360.2
Total capital surpluses	312.8	357.2	355.1	315.8	298.7
Total retained earnings	1,725.6	1,810.6	1,729.7	1,515.9	1,461.2
Treasury Stock	-172.8	-203.0	-208.5	-155.5	-146.4
Valuation difference on available-for-sa	35.2	-32.4	-31.5	-2.7	-50.7
Deferred hedge gain/loss	-	-0.6	0.0	2.5	0.0
Translation Adj.	-81.7	-179.0	-158.4	-91.0	-98.2
New Stock Subscription Right	5.6	5.5	4.5	3.2	2.2
Total Equity	2,202.8	2,190.3	2,120.0	1,968.9	1,827.1
Total Liabilities & Shareholders' Equity	4,341.2	4,576.9	4,575.4	4,048.2	3,934.8
S/O-Ordinary Shares	343.3	342.5	341.4	346.3	346.4
Total Common Shares Outstanding	343.3	342.5	341.4	346.3	346.4
T/S-Ordinary Shares	28.4	29.2	30.2	25.3	25.3
Full-Time Employees	24,921	25,092	24,159	23,143	23,935
Total Number of Shareholders	28,871	32,067	-	-	-
Number of Common Shareholders	-	-	31,269	31,816	32,516
Bond Redemption Amounts within A Year	-	121.4	-	-	-
LT Debt, mat. within 1 yr.	191.0	33.8	6.7	53.7	3.8
Bond Redemp Amts over a Yr within 2 Yrs	-	0.0	-	-	-
Lns Pble Maturing over a Yr within 2 Yrs	15.6	215.9	-	-	-
LT Debt, mat. b/w 1 & 2 yr.	-	-	147.5	0.1	50.8
Bond Redemp Amts over 2 Yrs within 3 Yrs	-	0.0	-	-	-
Lns Pble Maturg over 2 Yrs within 3 Yrs	36.5	15.2	-	-	-
LT Debt, mat. b/w 2 & 3 yr.	-	-	207.6	109.9	0.1
Bond Redemp Amts over 3 Yrs within 4 Yrs	-	0.0	-	-	-
Lns Pble Maturg over 3 Yrs within 4 Yrs	37.5	15.7	-	-	-
LT Debt, mat. b/w 3 & 4 yr.	-	-	0.0	0.0	101.3
Bond Redemp Amts over 4 Yrs within 5 Yrs	-	0.0	-	-	-
Lns Pble Maturg over 4 Yrs within 5 Yrs	1.2	3.0	-	-	-
LT Debt, mat. b/w 4 & 5 yr.	-	-	32.6	0.0	0.0
Remaining	23.6	-	-	-	-
Loans Payable remaining	-	16.1	-	-	-
Other LT Debt	-	-	0.0	0.0	0.2
Total Long Term Debt, Supplemental	305.4	421.1	394.4	163.8	156.2
Capital Lease Payment due in 1 Yr.	0.7	1.1	1.0	0.7	0.4
Cap Lease Maturg over a Yr within 2 Yrs	0.5	0.7	-	-	-
Capital Lease Payment due in 2 Yr.	-	-	0.8	0.7	0.4
Cap Lease Maturg over 2 Yr within 3 Yrs	0.2	0.4	-	-	-
Capital Lease Payment due in 3 Yr.	-	-	0.4	0.5	0.4
Cap Lease Maturg over 3 Yr within 4 Yrs	0.1	0.2	-	-	-
Capital Lease Payment due in 4 Yr.	-	-	0.2	0.2	0.2
Cap Lease Maturg over 4 Yr within 5 Yrs	0.1	0.1	-	-	-
Capital Lease Payment due in 5 Yr.	-	-	0.1	0.1	0.0
Capital lease remaining	0.1	0.1	-	-	-
Remainings	-	-	0.1	0.0	0.0
Total Capital Leases, Supplemental	1.7	2.7	2.6	2.2	1.4
Pension Obligation	1,545.4	1,776.2	1,771.9	1,592.9	1,511.5
Fair Value of Plan Asset	1,023.1	1,041.8	1,003.8	897.5	736.4
Funded Status	-522.3	-734.4	-768.0	-695.4	-775.1
Total Funded Status	-522.3	-734.4	-768.0	-695.4	-775.1
Discount Rate	2.50%	2.50%	2.50%	2.50%	2.50%
Expected Rate of Return	3.50%	3.50%	3.50%	3.50%	3.50%
Unrecognized Actuarial Gains and Losses	200.2	345.0	355.1	302.4	395.8
Unrecognized Prior Service Cost	-13.4	-18.5	-21.6	-22.1	-23.8
Prepaid Pension Benefits	6.5	7.1	6.7	5.7	5.6
Reserve for Accrued Retirement Benefits	-342.0	-415.0	-441.2	-420.7	-403.1
Net Assets Recognized on Balance Sheet	-148.7	-81.4	-100.9	-134.7	-25.6

Annual Cash Flows

Financials in: USD (mil)

	31-Mar-2013	31-Mar-2012	31-Mar-2011	31-Mar-2010	31-Mar-2009
Period Length	12 Months	12 Months	12 Months	12 Months	12 Months
UpdateType/Date	Updated Normal 31-Mar-2013	Updated Normal 31-Mar-2012	Updated Normal 31-Mar-2011	Updated Normal 31-Mar-2010	Updated Normal 31-Mar-2009
Filed Currency	JPY	JPY	JPY	JPY	JPY
Exchange Rate (Period Average)	82.970472	78.961215	85.691434	92.941082	100.484331
Auditor	Ernst & Young ShinNihon LLC	Ernst & Young ShinNihon LLC	Ernst & Young LLP	Ernst & Young LLP	Ernst & Young LLP
Auditor Opinion	Unqualified	Unqualified	Unqualified	Unqualified	Unqualified with Explanation
Income Before Tax	270.9	198.1	94.7	57.0	-144.0
Depreciation	235.1	232.4	230.4	221.4	223.2
Compensation income	-6.3	-	-	-	-
Impairment Loss	10.6	29.7	3.5	3.9	132.4
Loss (gain) on valuation of securities	0.0	0.1	7.3	2.8	21.3
L on adj. for change of acct. asset	-	0.0	10.6	0.0	-
L on Valuation Membership	-	0.1	0.1	1.3	0.2
Increase (decrease) in allowance for dou	3.5	-0.1	-7.0	2.1	0.7
Increase (decrease) in provision for dir	0.7	0.6	0.4	0.0	-0.7
Increase (decrease) in accrual for loss	-0.5	-0.6	-1.1	-9.1	-0.2
Increase (decrease) in provision for los	-6.9	-1.7	3.4	6.6	0.0
INCREASE(DECREASE) IN RESERVE FOR LOSS O	-	-3.3	3.0	0.0	-
Increase (decrease) in provision for ret	-24.6	-29.9	-31.5	-11.4	-27.1
G on sale of meberships	-	-	-	-	0.0
G/L on valuation of inventories	-	-	-	0.0	45.6
Dir.'s Retire.Bonus	-	-	-	-	0.0
Interest&Div. Income	-20.5	-18.1	-13.6	-10.3	-13.5
Interest Expense	3.4	4.8	4.9	7.6	8.9
Loss (gain) on sales of investment secur	-1.0	-0.6	-0.2	-2.2	-0.2
Loss (gain) on sales of stocks of subsid	-	0.0	1.0	0.0	-
Loss (gain) on sales of land	-	-	-	-0.5	-17.0
Loss (gain) on sales of land	-0.1	-0.2	0.0	-	-
L.Reitre.Fix Asset	6.5	5.0	9.0	6.4	6.0
Decrease (increase) in notes and account	12.7	-105.4	-45.4	22.9	108.9
Decrease (increase) in inventories	21.0	-51.1	-56.3	138.3	36.7
Increase (decrease) in notes and account	56.0	-10.2	116.3	-44.6	-72.1
Increase (decrease) in accounts payable	-31.8	4.9	1.6	-4.1	0.4
Increase (decrease) in accrued expenses	17.3	33.4	16.6	4.8	-29.5
Rounding adjustment Cash flow	0.0	-	-	-	-
Proceeds from compensation	6.3	-	-	-	-
Increase In Cash And Cash Equivalents Fr	0.0	28.1	-	-	-
Other Operating Cash Flow	-	0.0	-	-	-
Other, net	7.4	-11.4	3.3	0.4	-24.3
Interest&Div. Rec.	26.6	26.0	19.8	13.6	20.7
Interest Paid	-3.2	-4.7	-5.1	-8.1	-8.4
Income taxes paid, cash basis	-46.8	-48.5	-37.8	-37.2	-35.1
Increase due to newly consol. subs.	-	-	-	-	5.0
Decrease due to un-consol. of subs.	-	-	-	-	0.0
Cash from Operating Activities	536.3	277.3	328.1	361.8	237.9
Made Time Depos.	-32.2	-17.2	-45.1	-50.4	-23.7
Collection of long-term loans receivable	0.3	-	-	-	-
Mature.Time Deposit	22.3	29.6	51.6	50.1	0.7
Rounding adjustment Cash flow	0.0	0.0	-	-	-
Decrease (increase) in short-term loans	0.0	-2.1	-0.8	-3.5	-0.3
Purchase of property, plant and equipmen	-256.1	-252.8	-186.0	-108.1	-161.0
Proceeds from sales of property, plant a	13.7	10.0	2.8	3.4	57.8
Acq. of Intangibles	-34.6	-47.8	-34.1	-41.2	-41.3
Sale of Intangibles	-	-	-	-	0.0
Purchase of short-term and long term inv	-0.5	-2.4	-44.0	-13.4	-23.0
Proceeds from sales and redemption of sh	22.2	0.7	0.4	7.7	0.3
Inflow-purchase of subs.' securities	-	-	-	0.0	3.8
Outflow-purchase of subs.' securities	-	-	-	-	0.0
Payments for sale of subs' secs.- consol	-	0.0	-0.2	0.0	-
Payments of long-term loans receivable	-0.1	-0.1	-0.1	-0.2	-0.2
Collection of long-term loans receivable	-	0.5	0.6	0.9	1.2
Other, net	-11.8	-2.6	-10.8	-4.7	0.3
Cash from Investing Activities	-276.9	-284.3	-265.6	-159.5	-185.4
Net increase (decrease) in short-term lo	34.1	-108.2	-172.7	-192.3	77.9
Comm. Paper Issued	361.6	379.9	291.7	215.2	398.1
Comm.Paper Redempt.	-301.3	-405.3	-326.8	-107.6	-447.8
Proceeds from long-term loans payable	85.4	32.7	262.0	2.8	0.0
Payments For Redemption Of Bonds	-120.5	-	-	-	-
Repayment of long-term loans payable	-39.7	-7.0	-58.5	-3.6	-1.2
Cash Dividend Paid	-45.4	-43.3	-40.4	-37.3	-41.4
Purch./Treas. Stock	-1.7	-0.3	-33.4	-1.2	-3.6
Bond issued	-	-	-	-	0.0
Convertible Bond Redemption	-	-	-	-	0.0
Proceeds From Stock Issuance To Minority	4.4	-	-	-	-
Rounding adjustment Cash flow	0.0	0.0	-	-	-
Other, net	-3.1	-2.6	-6.7	-7.6	-3.9
Cash from Financing Activities	-26.3	-154.1	-84.7	-131.5	-22.0
Foreign Exchange Effects	37.9	-7.1	-25.3	1.3	-28.6
Net Change in Cash	271.1	-168.1	-47.4	72.1	1.9
Net Cash - Beginning Balance	400.4	588.9	590.1	472.0	434.6
Net Cash - Ending Balance	671.6	420.8	542.6	544.0	436.5
Cash Interest Paid	3.2	4.7	5.1	8.1	8.4
Cash Taxes Paid	46.8	48.5	37.8	37.2	35.1

Financial Health

Key Indicators USD (mil)
Â	Quarter Ending 30-Jun-2013	Quarter Ending Yr Ago	Annual Year End 31-Mar-2013	1 Year Growth	3 Year Growth	5 Year Growth
Total Revenue1 (?)	1,151.5	8.71%	5,740.3	5.21%	4.12%	-1.01%
Research & Development1 (?)	-	-	192.6	-3.97%	6.82%	5.90%
Operating Income1 (?)	42.9	434.09%	230.8	32.68%	72.82%	3.48%
Income Available to Common Excl Extraord Items1 (?)	83.7	1,269.60%	204.4	82.91%	168.29%	5.07%
Basic EPS Excl Extraord Items1 (?)	0.24	1,266.53%	0.60	82.44%	169.20%	5.30%
Capital Expenditures2 (?)	-	-	290.8	1.64%	20.24%	3.07%
Cash from Operating Activities2 (?)	-	-	536.3	103.25%	9.79%	5.85%
Free Cash Flow (?)	-	-	216.5	-	1.05%	9.83%
Total Assets3 (?)	4,268.1	12.88%	4,341.2	8.32%	2.59%	-1.99%
Total Liabilities3 (?)	2,008.8	3.60%	2,138.3	2.32%	1.17%	-2.24%
Total Long Term Debt3 (?)	110.0	-52.06%	114.4	-50.88%	1.52%	-6.89%
Employees3 (?)	-	-	24921	-0.68%	2.50%	3.48%
Total Common Shares Outstanding3 (?)	343.5	0.20%	343.3	0.25%	-0.29%	-0.19%
1-ExchangeRate: JPY to USD Average for Period	98.564314	Â	82.970472	Â	Â	Â
2-ExchangeRate: JPY to USD Average for Period	Â	Â	82.970472	Â	Â	Â
3-ExchangeRate: JPY to USD Period End Date	98.239969	Â	94.088557	Â	Â	Â

Key Ratios
Â	31-Mar-2013	31-Mar-2012	31-Mar-2011	31-Mar-2010	31-Mar-2009
Profitability
Gross Margin (?)	36.33%	36.64%	36.97%	34.67%	31.90%
Operating Margin (?)	4.02%	3.19%	1.75%	0.88%	-3.48%
Pretax Margin (?)	4.72%	3.46%	1.87%	1.26%	-3.12%
Net Profit Margin (?)	3.56%	2.05%	1.18%	0.21%	-5.65%
Financial Strength
Current Ratio (?)	1.38	1.37	1.44	1.30	1.28
Long Term Debt/Equity (?)	0.05	0.12	0.18	0.06	0.08
Total Debt/Equity (?)	0.26	0.29	0.35	0.34	0.39
Management Effectiveness
Return on Assets (?)	4.48%	2.67%	1.59%	0.41%	-6.11%
Return on Equity (?)	8.75%	5.21%	2.84%	0.48%	-12.91%
Efficiency
Receivables Turnover (?)	5.68	5.76	6.09	5.98	5.98
Inventory Turnover (?)	5.96	5.87	6.04	5.55	5.16
Asset Turnover (?)	1.21	1.20	1.14	1.10	1.11

Market Valuation USD (mil)
P/E (TTM) (?)	19.01	.	Enterprise Value2 (?)	4,694.7
Price/Sales (TTM) (?)	0.99	.	Enterprise Value/Revenue (TTM) (?)	0.95
Price/Book (MRQ) (?)	2.10	.	Enterprise Value/EBITDA (TTM) (?)	10.33
Market Cap as of 11-Oct-20131 (?)	4,903.0	.
1-ExchangeRate: JPY to USD on 11-Oct-2013	98.109887
2-ExchangeRate: JPY to USD on 30-Jun-2013	98.239969

 Annual Ratios

	31-Mar-2013	31-Mar-2012	31-Mar-2011	31-Mar-2010	31-Mar-2009
Financial Strength
Current Ratio (?)	1.38	1.37	1.44	1.30	1.28
Quick/Acid Test Ratio (?)	0.94	0.89	0.95	0.88	0.81
Working Capital1 (?)	598.1	590.9	677.7	445.8	414.1
Long Term Debt/Equity (?)	0.05	0.12	0.18	0.06	0.08
Total Debt/Equity (?)	0.26	0.29	0.35	0.34	0.39
Long Term Debt/Total Capital (?)	0.04	0.09	0.14	0.04	0.06
Total Debt/Total Capital (?)	0.21	0.23	0.26	0.25	0.28
Payout Ratio (?)	28.31%	36.89%	67.30%	394.52%	-13.19%
Effective Tax Rate (?)	21.64%	35.50%	26.10%	69.99%	-
Total Capital1 (?)	2,783.7	2,829.2	2,859.8	2,636.1	2,538.4
Efficiency
Asset Turnover (?)	1.21	1.20	1.14	1.10	1.11
Inventory Turnover (?)	5.96	5.87	6.04	5.55	5.16
Days In Inventory (?)	61.23	62.23	60.41	65.73	70.77
Receivables Turnover (?)	5.68	5.76	6.09	5.98	5.98
Days Receivables Outstanding (?)	64.26	63.38	59.89	61.05	61.05
Revenue/Employee2 (?)	203,121	218,984	216,530	195,113	196,486
Operating Income/Employee2 (?)	8,167	6,981	3,784	1,716	-6,843
EBITDA/Employee2 (?)	16,486	15,857	13,645	11,230	2,642
Profitability
Gross Margin (?)	36.33%	36.64%	36.97%	34.67%	31.90%
Operating Margin (?)	4.02%	3.19%	1.75%	0.88%	-3.48%
EBITDA Margin (?)	8.12%	7.24%	6.30%	5.76%	1.34%
EBIT Margin (?)	4.02%	3.19%	1.75%	0.88%	-3.48%
Pretax Margin (?)	4.72%	3.46%	1.87%	1.26%	-3.12%
Net Profit Margin (?)	3.56%	2.05%	1.18%	0.21%	-5.65%
R&D Expense/Revenue (?)	3.36%	3.68%	3.60%	3.11%	2.82%
COGS/Revenue (?)	63.67%	63.36%	63.03%	65.33%	68.11%
SG&A Expense/Revenue (?)	27.08%	27.69%	28.86%	28.63%	27.29%
Management Effectiveness
Return on Assets (?)	4.48%	2.67%	1.59%	0.41%	-6.11%
Return on Equity (?)	8.75%	5.21%	2.84%	0.48%	-12.91%
Valuation
Free Cash Flow/Share2 (?)	0.63	-0.07	0.33	0.61	0.10
Operating Cash Flow/Share 2 (?)	1.38	0.78	0.99	1.04	0.70
1-ExchangeRate: JPY to USD Period End Date	94.088557	82.385362	82.88	93.44	98.77
2-ExchangeRate: JPY to USD Average for Period	94.088557	82.385362	82.88	93.44	98.77

Current Market Multiples
Market Cap/Earnings (TTM) (?)	19.59
Market Cap/Equity (MRQ) (?)	2.17
Market Cap/Revenue (TTM) (?)	0.99
Market Cap/EBIT (TTM) (?)	18.45
Market Cap/EBITDA (TTM) (?)	10.78
Enterprise Value/Earnings (TTM) (?)	18.78
Enterprise Value/Equity (MRQ) (?)	2.08
Enterprise Value/Revenue (TTM) (?)	0.95
Enterprise Value/EBIT (TTM) (?)	17.69
Enterprise Value/EBITDA (TTM) (?)	10.33

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.62.57
UK Pound	1	Rs.100.63
Euro	1	Rs.84.62

INFORMATION DETAILS

Report Prepared by :

NIS

RATING EXPLANATIONS

RATING		STATUS	PROPOSED CREDIT LINE
>86	Aaa	Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums	Unlimited
71-85	Aa	Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums	Large
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small
11-25	Ca	Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity	Limited with full security
<10	C	Absolute credit risk exists. Caution needed to be exercised	Credit not recommended
--	NB	New Business	--

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

Financial condition (40%) Ownership background (20%) Payment record (10%)

Credit history (10%) Market trend (10%) Operational size (10%)