MIRA INFORM REPORT

 

 

Report Date :

24.09.2013

 

IDENTIFICATION DETAILS

 

Name :

NITTO DENKO CORPORATION

 

 

Registered Office :

1-11-2 Ohsaki Osaka-Shi, 530-0001

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2013

 

 

Date of Incorporation :

25.10.1918

 

 

Legal Form :

Public Parent

 

 

Line of Business :

Subject operates in three business divisions. The Industrial Tape division is engaged in the manufacture and sale of materials for bonding, surface protection, sealing and packing, as well as packaging machinery and engineering plastic members. The Optronics division is engaged in the manufacture and sale of liquid crystal display (LCD) related materials, materials for printed circuits, processing materials and semiconductor-related materials. The Others division manufactures and sells medical-related materials and polymer separation membranes, among others.

 

 

No. of Employees :

25,476

 

RATING & COMMENTS

 

MIRA’s Rating :

A

 

RATING

STATUS

PROPOSED CREDIT LINE

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

 

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, 31st, 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

 

NITTO DENKO CORPORATION

                       

 

1-11-2 Ohsaki

Osaka-Shi, 530-0001

Japan

 

 

Tel:

81-6-64522101

Fax:

81-6-64522102

 

www.nitto.com

 

Employees:

25,476

Company Type:

Public Parent

Corporate Family:

129 Companies

Traded:

Tokyo Stock Exchange:

6988

Incorporation Date:

25-Oct-1918

Auditor:

KPMG AZSA LLC

Financials in:

 

 

 

Fiscal Year End:

31-Mar-2013

Reporting Currency:

Japanese Yen

Annual Sales:

8,142.8  1

Net Income:

528.4

Total Assets:

7,880.6  2

Market Value:

9,257.7

 

(30-Aug-2013)

                                         

 

Business Description

 

 

NITTO DENKO CORPORATION is a Japan-based manufacturing company that operates in three business divisions. The Industrial Tape division is engaged in the manufacture and sale of materials for bonding, surface protection, sealing and packing, as well as packaging machinery and engineering plastic members. The Optronics division is engaged in the manufacture and sale of liquid crystal display (LCD) related materials, materials for printed circuits, processing materials and semiconductor-related materials. The Others division manufactures and sells medical-related materials and polymer separation membranes, among others. As of March 31, 2012, the Company had 104 subsidiaries and two associated companies. On October 1, 2012, the Company transferred all the shares of its two subsidiaries to Hitachi Chemical Co., Ltd. For the three months ended 30 June 2013, NITTO DENKO CORPORATION revenues increased 13% to Y179.34B. Net income increased 10% to Y12.04B. Revenues reflect Optronics Business segment increase of 19% to Y104.28B, Industrial Tape Business segment increase of 7% to Y66.68B, Other segment increase of 2% to Y8.03B. Net income was partially offset by Industrial Tape Business segment income decrease of 13% to Y3.28B.

 

 

Industry            

 

 

Industry

Semiconductor and Other Electronic Component Manufacturing

ANZSIC 2006:

2429 - Other Electronic Equipment Manufacturing

ISIC Rev 4:

2610 - Manufacture of electronic components and boards

NACE Rev 2:

2611 - Manufacture of electronic components

NAICS 2012:

334413 - Semiconductor and Related Device Manufacturing

UK SIC 2007:

2611 - Manufacture of electronic components

US SIC 1987:

3674 - Semiconductors and Related Devices

 

 

Key Executives

 

Name

Title

Yukio Nagira

President, Chief Executive Officer, Chief Operating Officer, Representative Director

Toru Takeuchi

Chief Financial Officer, Executive Officer, Senior Director of Accounting, President of Subsidiary, Director

Toshihiko Omote

Chief Technology Officer, Managing Executive Officer, Manager of Company Technology, Director

Shin Tokuyasu

Director of Accounting

Nobuhiko Mizumoto

Vice President

 

 

Significant Developments

 

Topic

#*

Most Recent Headline

Date

Debt Ratings

1

R&I Affirms NITTO DENKO CORPORATION's Rating at "AA-"; Rating Outlook Stable

7-Mar-2013

* number of significant developments within the last 12 months

 

 

News

 

 

Title

Date

WIPO PUBLISHES PATENT OF NITTO DENKO FOR "MEMBRANE SEPARATION DEVICE, METHOD FOR MEASURING MEMBRANE FOULING, METHOD FOR OPERATING MEMBRANE SEPARATION...
U.S. Fed News (275 Words)

20-Sep-2013

WIPO PUBLISHES PATENT OF NITTO DENKO FOR "THERMALLY CONDUCTIVE ADHESIVE SHEET AND ELECTRONIC/ELECTRICAL DEVICE" (JAPANESE INVENTORS)
U.S. Fed News (158 Words)

19-Sep-2013

USPTO Published Patent application of NITTO DENKO CORPORATION titled as "CERAMIC BODY FOR LIGHT EMITTING DEVICES".
US Official News (222 Words)

19-Sep-2013

Patent Issued for Liquid Crystal Panel and Liquid Crystal Display Apparatus
Journal of Engineering (952 Words)

18-Sep-2013

Momentum Stocks in Focus: Pacific Gold Corp. (OTCMKTS: PCFG), Tullow Oil Plc (UK) (OTCMKTS: TUWOY), L'Oreal S.A (ADR) (OTCMKTS: LRLCY), NITTO DENKO ADR (OTCMKTS: NDEKY)
SBWire (640 Words)

18-Sep-2013

WIPO PUBLISHES PATENT OF NITTO DENKO FOR "ADHESIVE RAW MATERIAL AND THERMALLY CONDUCTIVE ADHESIVE SHEET" (JAPANESE INVENTORS)
U.S. Fed News (200 Words)

18-Sep-2013

 

 

Financial Summary

 

 

As of 30-Jun-2013

 

Key Ratios

Company

Industry

Current Ratio (MRQ)

2.12

3.90

Quick Ratio (MRQ)

1.72

3.02

Debt to Equity (MRQ)

0.13

0.21

Sales 5 Year Growth

-1.94

11.04

Net Profit Margin (TTM) %

6.52

19.30

Return on Assets (TTM) %

6.46

15.21

Return on Equity (TTM) %

9.86

21.72

 

 

Stock Snapshot

 

Traded: Tokyo Stock Exchange: 6988

 

As of 30-Aug-2013

   Financials in: JPY

 

Recent Price

5,240.00

 

EPS

273.26

52 Week High

7,190.00

 

Price/Sales

1.35

52 Week Low

3,310.00

 

Dividend Rate

100.00

Avg. Volume (mil)

1.25

 

Price/Earnings

23.38

Market Value (mil)

910,494.20

 

Price/Book

1.76

 

 

 

Beta

1.33

 

Price % Change

Rel S&P 500%

4 Week

-12.52%

-5.40%

13 Week

-14.38%

-12.08%

52 Week

42.20%

-4.37%

Year to Date

24.17%

-3.47%

 

 

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
1-11-2 Ohsaki
Osaka-Shi, 530-0001
Japan

 

Tel:

81-6-64522101

Fax:

81-6-64522102

 

www.nitto.com

Quote Symbol - Exchange

6988 - Tokyo Stock Exchange

Sales JPY(mil):

675,614.0

Assets JPY(mil):

741,473.0

Employees:

25,476

Fiscal Year End:

31-Mar-2013

 

Industry:

Semiconductors

Incorporation Date:

25-Oct-1918

Company Type:

Public Parent

Quoted Status:

Quoted

 

 

President, Chief Executive Officer, Chief Operating Officer, Representative Director:

Yukio Nagira

 

Industry Codes

 

ANZSIC 2006 Codes:

2429

-

Other Electronic Equipment Manufacturing

1915

-

Adhesive Manufacturing

2412

-

Medical and Surgical Equipment Manufacturing

1522

-

Paper Bag Manufacturing

1821

-

Synthetic Resin and Synthetic Rubber Manufacturing

 

ISIC Rev 4 Codes:

2610

-

Manufacture of electronic components and boards

3250

-

Manufacture of medical and dental instruments and supplies

2029

-

Manufacture of other chemical products n.e.c.

1701

-

Manufacture of pulp, paper and paperboard

2013

-

Manufacture of plastics and synthetic rubber in primary forms

 

NACE Rev 2 Codes:

2611

-

Manufacture of electronic components

3250

-

Manufacture of medical and dental instruments and supplies

1712

-

Manufacture of paper and paperboard

2052

-

Manufacture of glues

2016

-

Manufacture of plastics in primary forms

 

NAICS 2012 Codes:

334413

-

Semiconductor and Related Device Manufacturing

339113

-

Surgical Appliance and Supplies Manufacturing

325211

-

Plastics Material and Resin Manufacturing

322220

-

Paper Bag and Coated and Treated Paper Manufacturing

325520

-

Adhesive Manufacturing

 

US SIC 1987:

3674

-

Semiconductors and Related Devices

2672

-

Coated and Laminated Paper, Not Elsewhere Classified

2821

-

Plastics Materials, Synthetic Resins, and Nonvulcanizable Elastomers

2891

-

Adhesives and Sealants

3842

-

Orthopedic, Prosthetic, and Surgical Appliances and Supplies

 

UK SIC 2007:

2611

-

Manufacture of electronic components

2016

-

Manufacture of plastics in primary forms

2052

-

Manufacture of glues

3250

-

Manufacture of medical and dental instruments and supplies

1712

-

Manufacture of paper and paperboard

 

 

Business Description

 

NITTO DENKO CORPORATION is a Japan-based manufacturing company that operates in three business divisions. The Industrial Tape division is engaged in the manufacture and sale of materials for bonding, surface protection, sealing and packing, as well as packaging machinery and engineering plastic members. The Optronics division is engaged in the manufacture and sale of liquid crystal display (LCD) related materials, materials for printed circuits, processing materials and semiconductor-related materials. The Others division manufactures and sells medical-related materials and polymer separation membranes, among others. As of March 31, 2012, the Company had 104 subsidiaries and two associated companies. On October 1, 2012, the Company transferred all the shares of its two subsidiaries to Hitachi Chemical Co., Ltd. For the three months ended 30 June 2013, NITTO DENKO CORPORATION revenues increased 13% to Y179.34B. Net income increased 10% to Y12.04B. Revenues reflect Optronics Business segment increase of 19% to Y104.28B, Industrial Tape Business segment increase of 7% to Y66.68B, Other segment increase of 2% to Y8.03B. Net income was partially offset by Industrial Tape Business segment income decrease of 13% to Y3.28B.

More Business Descriptions

Manufacture and sale of bonding and joining products, surface protection products, sealants, anticorosion and waterproofings, electrical insulating products, engineering plastics, medical related products, membrane products, packaging products, industrial use bar-code labels, media related products, semiconductor related products, LCD related products, flexible printed circuits, electronic component related products, precision electronics materials

Plastics Products Mfr

 

Printed circuit boards

Nitto Denko Corporation (Nitto) manufactures products including optical films for liquid crystal displays, automotive materials and parts, reverse osmosis membranes for seawater desalination, transdermal drug delivery patches, and others. It provides products to various sectors including healthcare, electronics, house and construction, automotive, and packaging industries. The product portfolio of the company includes Double-coated Adhesive Tapes, Sealing Materials, Surface Protection, Housing and Construction, Gasket Material, Masking Tapes, Barcode Labels, Clean Room, Flexible Printed Circuits, Optical Products, Semiconductor Manufacturing Process Products, Electronic Components Products, Fluoroplastic Products, Fluoroplastic Porous Membrane TEMISH, Porous Film Products (NITOSEP/SUNMAP), Membranes, Medical products, Packaging Tape, and Packaging Machine. The company classifies its business into three reportable segment namely, Industrial Tape, Optronics Products, and Medical and Membrane.Nitto's Industrial Tape segment provides bonding and joining products, double-coated adhesive tapes used for metals, plastics and other base materials and configurations, surface protection films, thermal release sheets, corrosion-proofing; materials used for waterproofing; construction materials, sealing materials and barcode labels to various industries including electronics, electrical, housing, automotive, and construction. For the fiscal year ended March, 2013, the segment reported revenue of JPY256,194m, which accounted for 37% of the company's total revenues.The company's Optronics products segment includes both electronic and optical products. It provides special films, circuit materials for cellular phone, color LCDs (liquid crystal display), semiconductor related products, printed circuits, compact cameras, hard disks, protection tapes and laminating device applicators for information equipment, electronic devices and components. The company offers transparent epoxy, encapsulating resin, transparent seals, wafer-protection tapes and thin metal core boards for semiconductor devices. For the fiscal year ended March, 2013, the segment reported revenue of JPY 410,725m, which accounted for 59% of the company's total revenues. Of the total segment revenue, Information fine materials accounted for 85% of the segment’s revenue, followed by flexible printed circuits with 10%, processing materials with 3% and semiconductor related materials with 2% of the segment’s total revenue.Nitto's Medical & Membrane products segment provides medical related products, engineering plastics, and high polymer separation membrane products. Its products portfolio includes trans-dermal therapeutic patches and the membranes for seawater desalination, high-polymer separation membrane modules, pest control products, fluoro-plastic tapes and health care products. For the fiscal year ended March 2013, the segment reported revenue of JPY33,769m, which accounted for 5% of the company's total revenues. Of the total segment revenue, Medical products accounted for 45% of the segment’s total revenue, and Membrane products accounted for 55% in 2013.The company focuses on research and development (R&D) of new products and enhancing existing ones. Its R&D division creates new solutions based on the technology platforms developed by its various research groups, focus on designing and developing products, services and solutions that anticipate customers' changing technological needs. The R&D department developed various fundamental technologies, namely, adhesion technology, polymer analysis and evaluation technology, coating technology, polymer control function technology implemented in developing products- Nibcom polarizing film, Revalpha, Polymide Seamless belts, Protective films for automotive coatings, R0 membrane element SEC5, Transdermal patch, amongst others. For the fiscal year ended March 2013, the company invested JPY27,573m towards its R&D activities, which accounted for 4% of the company’s total revenue.The company operates across the world through its subsidiaries including Nitto Denko Automotive, New Jersey, Inc., Nitto Denko India Private Limited, Nistem Precision de Mexico S. A. de C. V. and Nitto Denko Nitoms Korea Co., Ltd. The company carries out its operations at 107 facilities in Europe, East Asia, North America, Japan, and South Asia. It offers over 13,500 products which which find appliaction in LCD-TVs, mobile phones and computers, automotive and healthcare. The manufacturing plants are in Tohoku, Kanto, Toyohashi, Kameyama, Shiga, Ibaraki, and Onomichi.In June 2013, the company and Toa Eiyo Ltd received manufacturing and marketing authorization from the Japanese Ministry of Health, Labour and Welfare for Bisono tape 4mg and Bisono tape 8mg, the world’s first transdermal ß1-blocker patch. The Bisono tape will be manufactured by Nitto Denko, marketed by Toa Eiyo, distributed and sold by Astellas Pharma Inc.

Nitto Denko Corporation (Nitto) is a manufacturer of diversified material producing electrical insulating material. electronics, industrial and functional products. The company offers a broad spectrum of high-value-added products which include optical films for liquid crystal displays, automotive materials and parts, reverse osmosis membranes for seawater desalination, and transdermal drug delivery patches, among others. The company caters to a wide set of sectors including electronics, automotive, house and construction, environment, healthcare and other industries. It owns and manages seven manufacturing plants, and several branch offices in Japan. The company classifiess its business into three reportable segments namely, Industrial Tape segment, Optronics Products segment and Medical & Membrane segment.The company has operates in over 27 countries including Japan, the US, Europe and Asia. Nitto is headquartered at Osaka, Japan.The company reported revenues of (Yen) JPY 675,614.00 million during the fiscal year ended March 2013, an increase of 11.19% over 2012. The operating profit of the company was JPY 66,330.00 million during the fiscal year 2013, an increase of 30.59% over 2012. The net profit of the company was JPY 43,841.00 million during the fiscal year 2013, an increase of 41.12% over 2012.

All Other Electrical Equipment and Component Manufacturing

 

 

Financial Data

 

Financials in:

JPY(mil)

 

Revenue:

675,614.0

Net Income:

43,841.0

Assets:

741,473.0

Long Term Debt:

50,987.0

 

Total Liabilities:

251,997.0

 

Working Capital:

307.9

 

 

 

Date of Financial Data:

31-Mar-2013

 

1 Year Growth

11.2%

41.1%

13.7%

 

 

Market Data

 

Quote Symbol:

6988

Exchange:

Tokyo Stock Exchange

Currency:

JPY

Stock Price:

5,240.0

Stock Price Date:

08-30-2013

52 Week Price Change %:

42.2

Market Value (mil):

910,494,208.0

 

SEDOL:

6641801

ISIN:

JP3684000007

 

Equity and Dept Distribution:

Up to FY'02 WAS were estimated. FY'04-'07 1&3Q WAS were estimated and used as O/S. FY'08 Q3 BWAS & DWAS estimated and BWAS used as O/S. FY'08 Q1 O/S=BWAS. DWAS was estimated. FY'09 Q3's DWAS was estimated. FY'12 Q1 DWAS was estimated.

 

 

Subsidiaries

 

Company

Percentage Owned

Country

Nitto Denko (Singapore) Pte Ltd

 

SINGAPORE

Nitto Shinko Corporation

100%

JAPAN

Nitoms Inc

100%

JAPAN

Nissho Corporation

100%

JAPAN

Nitto Americas Inc

100%

USA

Hydranautics

100%

USA

Nitto Denko America Inc

100%

USA

Nitto Scandinavia AB

100%

SWEDEN

Nitto Deutschland GmbH

100%

GERMANY

Nitto France SARL

100%

FRANCE

Nitto Denko (China) Investment Co Ltd

100%

PEOPLE'S REPUBLIC OF CHINA

Nitto Denko (Suzhou) Co Ltd

100%

PEOPLE'S REPUBLIC OF CHINA

Nitto Denko (Shanghai Songjiang) Co Ltd

100%

PEOPLE'S REPUBLIC OF CHINA

Nitto Denko (Shanghai Pu Dong New Area) Co Ltd

100%

PEOPLE'S REPUBLIC OF CHINA

Nitto Denko (HK) Co Ltd

100%

HONG KONG SAR

Nitto Denko (Taiwan) Corp

100%

TAIWAN

Nitto Denko Electronics (Malaysia) Sdn Bhd

100%

MALAYSIA

Nitto Denko Materials (Malaysia) Sdn Bhd

100%

MALAYSIA

Nitto Denko (Australia) Pty Ltd

100%

AUSTRALIA

Nitto Denko CS System Corp

100%

JAPAN

Nitto Denko Xiamen Co Ltd

100%

PEOPLE'S REPUBLIC OF CHINA

Taiwan Nitto Optical Co Ltd

100%

TAIWAN

Nitto Denko Material (Thailand) Co Ltd

100%

THAILAND

Nitto Denko Vietnam Co Ltd

100%

VIETNAM

Nitto Denko Tape Materials (Vietnam) Co Ltd

100%

VIETNAM

Nitto Materials Indonesia, PT

100%

INDONESIA

Nitto Italia Srl

100%

ITALY

Nitto Polska Sp zoo

100%

POLAND

Nitto Denko Technical Corporation

100%

USA

Nitto Europe SA/NV

100%

BELGIUM

Nitto Denko Materials (Shenzhen) Co Ltd

100%

PEOPLE'S REPUBLIC OF CHINA

Shanghai Nitto Optical Co Ltd

100%

PEOPLE'S REPUBLIC OF CHINA

 

 

Shareholders

 

Major Shareholders

J P Morgan Chase Bank 380055 (6.4%); Japan Trustee Services (6.1%); Company's Trust Stock (5.3%); Master Trust Bank of Japan (5%)

 

 

 

Key Corporate Relationships

 

Auditor:

KPMG AZSA LLC

 

Auditor:

KPMG AZSA LLC

 

The Strategic Initiatives report is created using technology to extract meaningful insights from analyst reports about a company's strategic projects and investments

 

 

Strategic Initiatives

 

 

Partnerships

48 per diluted share, in the first quarter of fiscal 2012.May 10, 2012Nitto Denko Obtains US Patent for Antifibrotic Therapies With Molecular Targeting DDS TechnologyNitto Denko Corporation, a Japanese manufacturing group, announced that a basic patent regarding the company’s antifibrotic therapy has been successfully registered in the US. Nitto Denko has been developing antifibrotic drugs in collaboration with Professor Yoshiro Niitsu at Sapporo Medical University since 2008, and has already been granted this patent in Japan, China and Australia.This patent covers various DDS (drug delivery systems) that includes antifibrotic drugs, coupled with targeting agents for the cells that are responsible for disease. This patent should lead to the world’s first complete cure of organ fibrosis, which is expected to give a significant boost to the value of Nitto Denko’s patent portfolio. Recently Nitto Denko developed new drug and drug delivery materials which satisfy both efficacy and safety perspectives.

 

Planning

 

The automotive memory market is expected to be worth $900m by 2013 and approximately $1100m by 2015. With the continuing expansion of mobile phone market in developing countries, coupled with the possible emergence of new mobile phone architecture that could handle different radio protocols, the demand for semiconductors will continue to be high in the future. Besides, commoditization is expected to lead to application standard products over custom chips, which may result in lower end user prices.Strategic Growth InitiativesThe company has been taking diverse strategic initiatives to strengthen and expand its business. In 2012, the company opened new R&D center Nitto Denko Europe Technical Centre Sarl (NET), a new innovation facility in Switzerland. This plant is expected to start its operations in October 2012.



 

 

 

Strengths/Weaknesses (SWOT)

 

 

Helpful
to achieving the objective

Harmful
to achieving the objective

Internal Origin
(attributes of the organization)

Strengths

·        Operating Performance

·        Integrated Technologies

·        Strong Product Portfolio

Weaknesses

·        Declined Liquidity

·        Dependence on Vendors

External Origin
(attributes of the environment)

Opportunities

·        Positive Outlook for Memory Products

·        Positive Outlook for Semiconductor Industry

·        Strategic Growth Initiatives

Threats

·        Rapid Technological Changes

·        High Competition

·        Regulations from RoHS and REACH

 

 

Overview

 

Nitto Denko Corporation (Nitto) offers a range of electronics, industrial and functional products to different industries. The company through its strong portfolio of products serves various target markets. The dependence on vendors for its raw material remains a key concern to the company. The rapid technological changes, high competition and the environmental regulations form RHoS and REACH could have an adverse affect on the business. However, Nitto’s cost reduction plans supported by positive outlook of semiconductor and memory products and the company's growth initiatives could offer it opportunities to further improve its business operations.

 

 

Strengths

 

Operating Performance

The company exhibited a substantial growth in its operating performance for the fiscal year ended March 2013. The company's revenue increased to JPY 675,614m in 2013, an increase of 11.2% over the previous year. Its operating income increased to JPY66,330m in 2013, representing an increase of 30.6% over the previous fiscal. Such growth in operating income has resulted in improvement of the company's net income. For the fiscal year ended March 2013, the company's net income increased to JPY43,841m, representing an increase of 41.1% over the previous year. For the fiscal 2013, the company's operating expenses as a percentage of sales was 90.18%, as compared to 91.64% in the previous year. The company also showed an improvement in its operating margin. For the fiscal year ended March 2013, the company's operating margin was 9.81% as compared to 8.35% in 2012. The increase in operating margin indicates that the company's revenue increased at a higher rate than that of its expenses. Thus, the company’s strong operational performance increases the investor’s confidence and provides a positive outlook for the future.

 

Integrated Technologies

The company incorporates several cutting edge technolgoies to devise its products. Nitto offers a wide array of high performance films based on polymer function control technology which includes, polymer design technology, streching technology, Photopolymer technology, controlled release technology, polymer blend technology, surface modification technology, porosity forming technology, and organic/inorganic hybrid technology. Polymer design technology controls the chemical structure of monomers through molecular design to yield certain functional and unique polymer materials. Stretching technology modifies the properties of plastic film by aligning the molecules in heated plastic film through stretching. Photopolymer Technology involves usage of photopolymers to change the chemical structure of polymers. Controlled Release Technology involves the adoption of unique crystal reservoir system to control the release of the drug from the adhesive layer. Polymer blend technologies comprises of the combination of two or more polymers to develop new properties and levels of performance. The company’s Surface Modification Technology includes, conferring several functions to film surfaces and creating surface attributes for certain custom applications. The Porosity Forming technology enables polymer substances to foam and develop multiple pores for special materials such as water treatment membranes and air filters. Organic/Inorganic hybrid technology includes the combination of organic and inorganic materials to enhance the properties of certain materials. Such usage of wide technologies leverages the company’s portfolio of products.

 

Strong Product Portfolio

The company offers industrial, electronic and functional products to a wide range of industries. Its product portfolio include electronic components, Cell Phones, Printers/Copy Machines, LCDs, Home Appliances, Touch-Panels and storage devices, glass-cloth adhesive tape, double-coated adhesive tape, and other sealing products. It also manufactures various housing and construction products such as safety products, soundproofing products, anti corrosion products and others. It also offers surface protective materials, sealing materials, flouro plastic products and other industrial products. It also manufactures Regional Steroid for Dermatosis, Transdermal Drug Delivery Patches, Medical-surgical Products/Wound Care Products, and taping products for sports. In addition the company offers packaging products and environment related products. Nitto manufactures its products according to ISO 9000 quality standard. Such strong portfolio of products and wide customer base remains a key strength for the company.

 

 

Weaknesses

 

Declined Liquidity

The company reported declined liquidity in the fiscal year ended 2013, which could impact its growth and expansion plans. The company reported 14.3% growth in its current assets in 2013, as compared to 27% growth in current liabilities. Disproportionate growth in current liabilities and current assets affects the working capital and short-term liquidity of the company. The company’s cash & equivalents as a percentage of total current assets decreased from 49% in 2012 to 44% in 2013. Trade receivables accounted for 33% of the total current assets in 2013, as compared to 30% in 2012. The company's Liquidity indicators such as current ratio, quick ratio and cash ratio also decreased to 2.752, 2.284, and 1.236 at the end of fiscal year 2013, as compared to 3.054, 2.567, and 1.515 in 2012. Such declined cash position indicates that the company is in a weaker financial position, and could face difficulties in meeting its short-term obligations and working capital requirements. Thus, the company would have to depend on external sources to fund its operational flow.

Dependence on Vendors

 

The company’s products are dependent on a small number of vendors for critical components. Some of the company’s vendors are the sole suppliers of certain raw materials required for the production. The vendors may not able to deliver the required components in time or the company may not able to maintain relation with these suppliers, or the terms and conditions with the vendors may not be in favor of the company. If, due to any of the above stated reasons, the company is unable to obtain the raw material necessary for its products and services on time and at favorable price, it will not be able to deliver its products on time and may lose its customers and business. The above conditions will have adverse effect on its business, financial condition and operating results.

 

 

Opportunities

 

Positive Outlook for Memory Products

Positive market outlook for memory products could offer ample growth opportunities for the company in the coming years. The high demand for NAND flash memory stems from the increasing demand for PCs, high performance workstations, server, switches, routers and the Internet infrastructure. The industrial customers are demanding flash drives instead of rotating disk drives for enhancing performance and consistency. The NAND flash products was reported to be approximately $12.8 billion in 2009 and is expected to increase to $25.7 billion by 2014, at a compound annual growth rate (CAGR) of 15%. The primary memory market sectors such as DRAM is set to increase at a CAGR of 10.4% from estimated $25.2 billion in 2009 to $41.5 billion in 2014. This outlook augurs well for the company.

 

Positive Outlook for Semiconductor Industry

Positive outlook for the semiconductor market could provide greater growth opportunities to the company. The market for semiconductors is projected to reach $316 billion by 2012, showing an increase of 4% over that in 2011. Sale of PCs in the developing countries is expected to be higher than their replacement sales in the saturated markets of North America and Western Europe. In the future, the demand for semiconductors is expected to be high from the automotive industry, as an average vehicle will have more semiconductor components with the addition of devices such as automatic braking systems, accident avoidance systems and entertainment systems. Next generation vehicles will have 3D displays, virtual reality and sensory feedback, among others, pushing up the demand for semiconductors. The automotive memory market is expected to be worth $900m by 2013 and approximately $1100m by 2015. With the continuing expansion of mobile phone market in developing countries, coupled with the possible emergence of new mobile phone architecture that could handle different radio protocols, the demand for semiconductors will continue to be high in the future. Besides, commoditization is expected to lead to application standard products over custom chips, which may result in lower end user prices.

 

Strategic Growth Initiatives

The company has been taking diverse strategic initiatives to strengthen and expand its business. In 2012, the company opened new R&D center Nitto Denko Europe Technical Centre Sarl (NET), a new innovation facility in Switzerland. This plant is expected to start its operations in October 2012. Nitto expanded its presence in china through the establishment of a subsidiary Nitto Shinko in Suzhou, China. This company engages in the post production processes for adhesive sheet products for information technology devices. The company acquired all the assets of Altea Therapeutics Corporation. This acquisition will enable the company to expand its growing needs in the medical field. Further it also acquired Bento Bantcilik ve Temizlik Maddeleri Sanayi Ticaret, leading manufacturer of industrial tapes in Turkey. This acquisition will enable the company to expand its operations in Turkey, Eastern Europe, Middle East and North Africa. It signed a purchase agreement through Nitto Denko Avecia, Inc., to acquire Girindus America, Inc, to fortify its therapeutic oligonucleotide segment. This synergy will enable Avecia to expand its customer coverage, increase manufacturing capabilities, improve security of supply and expand radiolabeling and small-molecule (organic) synthesis capabilities. It also announced its intent to invest JPY1,400m in Brazil, to establish a new manufacturing plant in Sao Paulo. Strategic developments such as these provide growth opportunities for the company.

 

 

Threats

 

Rapid Technological Changes

The company's offerings are characterized by rapid technology changes, which may affect its business operations. To compete effectively with its competitors, the company should continually introduce new products that meet and exceed the customers’ requirements. The introduction of products using new technologies or the adoption of new industry standards can make existing products, or products under development, obsolete or unmarketable. Inability to study the evolving technological landscape may impact the company’s competitive position.

 

High Competition

The company operates in highly competitive environment. The company's optoelectronics business market faces a stiff competition. It competes with large players such as 3M Company, Marubeni Corporation, Tosoh Corporation, Fujikura Ltd., Mimasu Semiconductor Industry Co., Ltd., Toyota Tsusho Corporation, and Sumitomo Chemical Company, Limited. Nitto operates in different markets providing electronics, industrial and functional products. Some of the competitors have more financial resources in comparison to the company which exerts pricing pressure on company leading to decrease in demand. This competitive environment could adversely affect the business operations of the company.

 

Regulations from RoHS and REACH

The company operates in all the major regions across the world. The European Union passed restrictions on the use of certain hazardous substances in electrical and electronic equipment directive (RoHS) and the waste electrical and electronic equipment directive (WEEE). Recently, China passed the Management Methods for Controlling Pollution by Electronic Information Products, which could restrict import of products for use in China, which contain substances similar to those banned by the RoHS directive. These regulatory restrictions hamper the manufacture of electrical and electronic goods using certain hazardous substances. This scenario demands accountability in specified collection, recycling, treatment and disposal of past and future covered products by the companies in the industry. Nitto also faces strict regulations from REACH, is the European Community Regulation on chemicals and their safe use. It deals with the Registration, Evaluation, Authorization and Restriction of Chemical substances. It mainly provides rules and regulations related to the protection of human health and the environment. These conditions and such a strict regulatory environment could affect the company’s financial performance and business operations.

 

 

Corporate Family      

 

Corporate Structure News:

 

Total Corporate Family Members: 129

 

 

Company Name

Company Type

Location

Country

Industry

Sales
(USD mil)

Employees

NITTO DENKO CORPORATION

Parent

Osaka-Shi

Japan

Semiconductor and Other Electronic Component Manufacturing

8,142.8

25,476

Nitto Denko (Suzhou) Co., Ltd

Subsidiary

Suzhou

China

Semiconductor and Other Electronic Component Manufacturing

 

3,500

Nitto Denko Vietnam Co., Ltd.

Subsidiary

Thuan An, Binh Duong

Viet Nam

Rubber and Plastic Product Manufacturing

 

2,300

Taiwan Nitto Optical Co., Ltd.

Subsidiary

Taichung City

Taiwan

Machinery and Equipment Manufacturing

 

1,600

P.T. Nitto Materials Indonesia

Subsidiary

Bekasi

Indonesia

Chemical Wholesale

 

1,550

Nitto Denko Material (Thailand) Co., Ltd.

Subsidiary

Ayutthaya

Thailand

Magnetic and Optical Media Manufacturing

 

1,300

Korea Nitto Optical Inc

Subsidiary

Pyeongtaek-si, Gyeonggi-do

Korea, Republic of

Rubber and Plastic Product Manufacturing

814.9

1,025

Nitto Europe

Subsidiary

Genk

Belgium

Rubber and Plastic Product Manufacturing

238.2

687

Bento Bantçilik ve Temizlik Maddeleri Sanayi Ticaret AS

Subsidiary

Istanbul

Turkey

Paper Product Manufacturing

 

252

Nitto Denko UK Ltd.

Subsidiary

Mansfield

United Kingdom

Rubber and Plastic Product Manufacturing

9.0

46

Nitto Deutschland GmbH

Subsidiary

Duisburg, Nordrhein-Westfalen

Germany

Chemical Wholesale

 

20

Nitto Scandinavia AB

Subsidiary

Lindome

Sweden

Chemical Wholesale

2.2

15

Nitto France S.A.R.L.

Subsidiary

Garges-les-Gonesse, Garges Les Gonesse

France

Chemical Wholesale

3.6

14

Nitto Italia S.R.L.

Subsidiary

Gessate, MI

Italy

Chemical Wholesale

1.6

10

Nitto U. K. Ltd.

Subsidiary

Leicester

United Kingdom

Miscellaneous Wholesale

0.7

5

Nitto Polska Sp. z o.o.

Subsidiary

Warsaw

Poland

Chemical Wholesale

 

5

Nitto Denko Materials (Malaysia) Sdn. Bhd.

Subsidiary

Shah Alam

Malaysia

Magnetic and Optical Media Manufacturing

67.8

600

Nitto Denko Electronics (Malaysia) Sdn. Bhd.

Subsidiary

Shah Alam, Selangor

Malaysia

Electrical Equipment and Appliances Manufacturing

55.1

300

Nitto Denko (Shanghai Songjiang) Co., Ltd.

Subsidiary

Shanghai

China

Paint, Coating, and Adhesive Manufacturing

 

300

SUZHOU NITTO MATEX ELECTRONICS CO., LTD.

Subsidiary

Suzhou

China

Paper Product Manufacturing

 

300

Nitto Denko Electronics (Malaysia) Sdn. Bhd.

Subsidiary

Shah Alam

Malaysia

Semiconductor and Other Electronic Component Manufacturing

 

250

NITTO DENKO AUTOMOTIVE, OHIO, INC

Subsidiary

Piqua, OH

United States

Motor Vehicle Repair and Maintenance

65.7

200

Nitto Denko CS System Corp.

Subsidiary

Aichi

Japan

Paper Product Manufacturing

 

170

NITTO DENKO MATERIALS (SHENZHEN) CO., LTD.

Subsidiary

Shenzhen

China

Metal Products Manufacturing

 

160

Nitoms Inc.

Subsidiary

Tokyo

Japan

Rubber and Plastic Product Manufacturing

 

137

Shenzhen Nitto Optical Co., Ltd.

Subsidiary

Shenzhen, Guangdong

China

Semiconductor and Other Electronic Component Manufacturing

95.1

120

NISSHO HUNGARY PRECISION KFT.

Subsidiary

Ujhartyan

Hungary

Motor Vehicle Parts Manufacturing

 

117

NITTO DENKO AUTOMOTIVE, VIRGINIA, INC

Subsidiary

Chesapeake, VA

United States

Semiconductor and Other Electronic Component Manufacturing

17.0

100

Kyoshin Electronics (Dong Guan) Co., Ltd.

Subsidiary

Dongguan, Guangdong

China

Motor Vehicle Parts Manufacturing

6.3

100

Nitto Denko (HK) Co. Ltd.

Subsidiary

Kwai Fong

Hong Kong

Chemical Wholesale

 

80

Nitto-Nistem (Philippines) Corporation

Subsidiary

Calamba, Laguna

Philippines

Electronics Wholesale

 

80

Nitto Denko Philippines Corporation

Subsidiary

Sta. Rosa, Laguna

Philippines

Machinery Wholesale

 

64

Nitto Denko (Xiamen) Co., Ltd.

Subsidiary

Xiamen

China

Medical Equipment and Supplies

 

62

Nitto Denko (Singapore) Pte Ltd

Subsidiary

Singapore

Singapore

Electronics Wholesale

67.2

60

Nitto Denko (Taiwan) Corp.

Subsidiary

Taipei

Taiwan

Chemical Wholesale

 

60

Nitto Denko (Philippines) Corp.

Subsidiary

Laguna

Philippines

Motor Vehicle Manufacturing

 

57

NITTO MEDICAL CORPORATION

Subsidiary

Ibaraki, Osaka

Japan

Professional and Commercial Equipment Wholesale

66.2

52

NITTO DENKO AUTOMOTIVE, KENTUCKY INC.

Subsidiary

Lexington, KY

United States

Paint, Coating, and Adhesive Manufacturing

25.4

50

Nitto Denko America, Inc.

Subsidiary

Fremont, CA

United States

Electronics Wholesale

505.5

40

Nitto Americas, Inc.

Subsidiary

Teaneck, NJ

United States

Paper Product Manufacturing

 

1,500

Hydranautics

Subsidiary

Oceanside, CA

United States

Machinery and Equipment Manufacturing

 

275

Hydranautics B.V.

Subsidiary

Maastricht

Netherlands

Chemical Wholesale

 

9

Hydranautics B.V.

Subsidiary

Maastricht, Limburg

Netherlands

Banking

38.0

5

Hydranautics

Branch

Oceanside, CA

United States

Business Support Services

0.6

4

Hydranautics

Branch

San Diego, CA

United States

Business Support Services

0.6

4

Hydranautics

Branch

Nicholasville, KY

United States

Business Support Services

0.3

3

Hydranautics

Branch

Rockton, IL

United States

Business Support Services

0.1

1

Nitto Denko Technical Corporation

Subsidiary

Oceanside, CA

United States

Research and Development Services

41.3

130

Nitto Denko America Inc

Branch

Romulus, MI

United States

Paper Product Manufacturing

10.8

22

Nitto Denko America Inc

Branch

Teaneck, NJ

United States

Paper Product Manufacturing

10.0

22

Nitto Denko America Inc

Branch

Minneapolis, MN

United States

Paper Product Manufacturing

8.5

22

Nitto Denko Automotive, Inc.

Subsidiary

Novi, MI

United States

Motor Vehicle Parts Manufacturing

 

20

Nitto Denko Automotive, Inc.

Facility

Kansas City, MO

United States

Paint, Coating, and Adhesive Manufacturing

3.2

150

Nitto Denko Automotive, Inc.

Facility

Lakewood, NJ

United States

Paper Product Manufacturing

34.1

100

Nitto Denko Automotive Inc

Branch

Indianapolis, IN

United States

Motor Vehicle Parts Manufacturing

1.7

4

Nitto Denko America Inc

Branch

Seattle, WA

United States

Paper Product Manufacturing

0.5

1

NITTO DENKO AUTOMOTIVE, ALABAMA, LLC

Subsidiary

Jasper, AL

United States

Semiconductor and Other Electronic Component Manufacturing

17.5

40

Nitto Denko (Australia) Pty. Ltd.

Subsidiary

Dandenong

Australia

Chemical Wholesale

4.1

40

KYOSHIN EUROPE LTD.

Subsidiary

London

United Kingdom

Rubber and Plastic Product Manufacturing

 

35

NISSHO PRECISION (MALAYSIA) SDN. BHD.

Subsidiary

Seremban, Negeri Sembilan

Malaysia

Semiconductor and Other Electronic Component Manufacturing

15.1

30

NITTO DENKO ASIA TECHNICAL CENTRE PTE. LTD.

Subsidiary

Singapore

Singapore

Research and Development Services

 

30

NITTO DENKO INDIA PRIVATE LIMITED

Subsidiary

Gurgaon, Haryana

India

Paper Product Manufacturing

 

20

Nitto Denko Turkey Tape Materials Industry and Trade Limited

Subsidiary

Istanbul

Turkey

Paper Wholesale

 

12

Nitto Denko Ltd.

Subsidiary

Seoul

Korea, Republic of

Medical Equipment and Supplies

 

10

Nitto Denko Avecia

Subsidiary

Milford, MA

United States

Research and Development Services

 

9

Girindus America, Inc.

Subsidiary

Cincinnati, OH

United States

Pharmaceutical Manufacturing

 

47

NISTEM PRECISION INC.

Subsidiary

San Diego, CA

United States

Chemical Wholesale

2.3

5

HY Membranes Iberica S.L.

Subsidiary

Sant Just Desvern, Barcelona

Spain

Chemical Wholesale

4.0

3

Nissho Corporation

Subsidiary

Osaka, Osaka

Japan

Rubber and Plastic Product Manufacturing

258.8

 

Suzhou Nitto Matex Electronics Co., Ltd.

Subsidiary

Suzhou, Jiangsu

China

Semiconductor and Other Electronic Component Manufacturing

20.5

700

Nipro Medical Ltda

Subsidiary

Sorocaba, Sao Paulo

Brazil

Medical Equipment and Supplies

52.7

400

Nissho Precision (Dongguan) Co., Ltd.

Subsidiary

Dongguan, Guangdong

China

Semiconductor and Other Electronic Component Manufacturing

6.9

140

Nissho Hungary Precizios Korlatolt Felelossegu Tarsasag

Subsidiary

Ujhartyan

Hungary

Rubber and Plastic Product Manufacturing

30.3

 

Nissho Hungary Kft. - Ship From Duns

Subsidiary

Budaors

Hungary

Nonclassifiable Establishments

 

 

Nissho (Singapore) Pte Ltd

Subsidiary

Singapore

Singapore

Electronics Wholesale

6.7

 

Nitto Denko (Taiwan) Corporation

Subsidiary

Kaohsiung

Taiwan

Chemical Wholesale

 

 

Nitto Denko Corporation - Tohoku Plant

Facility

Osaki, Miyagi

Japan

Semiconductor and Other Electronic Component Manufacturing

 

 

Nitto Denko Corporation - Kanto Plant

Facility

Fukaya, Saitama

Japan

Semiconductor and Other Electronic Component Manufacturing

 

 

Nitto Denko Corporation - Toyohashi Plant

Facility

Toyohashi, Aichi

Japan

Semiconductor and Other Electronic Component Manufacturing

 

 

Nitto Denko Corporation - Kameyama Plant

Facility

Kameyama, Mie

Japan

Semiconductor and Other Electronic Component Manufacturing

 

 

Nitto Denko Corporation - Shiga Plant

Facility

Kusatsu, Shiga

Japan

Semiconductor and Other Electronic Component Manufacturing

 

 

Nitto Denko Corporation - Onomichi Plant

Facility

Onomichi, Hiroshima

Japan

Metal Products Manufacturing

 

 

NITTO SHINKO CORPORATION

Subsidiary

Sakai, Osaka

Japan

Motor Vehicle Parts Manufacturing

 

 

NITTO ELECTRONICS KYUSYU CORPORATION

Subsidiary

Saga

Japan

Synthetic Chemical Manufacturing

 

 

NITTO LIFETEC CORPORATION

Subsidiary

Matsuyama, Ehime

Japan

Medical Equipment and Supplies

 

 

NITTO SEIKI CO., LTD.

Subsidiary

Kameyama, Mie

Japan

Semiconductor and Other Electronic Component Manufacturing

 

 

NITTO LOGI-COM CORPORATION

Subsidiary

Toyohashi, Aichi

Japan

Consulting Services

 

 

OPTMATE CORPORATION

Subsidiary

Kusatsu, Shiga

Japan

Paper Product Manufacturing

 

 

AICHI NITTO DENKO CORPORATION

Subsidiary

Toyohashi, Aichi

Japan

Trucking

 

 

NITTO DENKO HIMAWARI CORPORATION

Subsidiary

Toyohashi, Aichi

Japan

Machinery and Equipment Manufacturing

 

 

MIE NITTO DENKO CORPORATION

Subsidiary

Kameyama, Mie

Japan

Motor Vehicle Parts Manufacturing

 

 

SAITAMA NITTO DENKO CORPORATION

Subsidiary

Fukaya, Saitama

Japan

Paper Product Manufacturing

 

 

MATEX KAKOH CORPORATION

Subsidiary

Toyota, Aichi

Japan

Synthetic Chemical Manufacturing

 

 

NITTO DENKO MEDICAL MFG. CO., LTD.

Subsidiary

Osaki, Miyagi

Japan

Medical Equipment and Supplies

 

 

Nissho Corporation - Nagoya Plant

Facility

Nagoya, Aichi

Japan

Semiconductor and Other Electronic Component Manufacturing

 

 

Nissho Corporation - Shiga Plant

Facility

Ritto, Siga

Japan

Semiconductor and Other Electronic Component Manufacturing

 

 

Nissho Corporation - Tohoku Plant

Facility

Osaki, Miyagi

Japan

Semiconductor and Other Electronic Component Manufacturing

 

 

Nissho Corporation - Kyushu Plant

Facility

Fukuoka

Japan

Semiconductor and Other Electronic Component Manufacturing

 

 

NITTO ANALYTICAL TECHNO-CENTER CO., LTD.

Subsidiary

Ibaraki, Osaka

Japan

Miscellaneous Chemical Manufacturing

 

 

NITTO DENKO FINE CIRCUIT TECHNOLOGY(SHENZHEN) CO., LTD.

Subsidiary

Shenzhen, Guangdong

China

Electronics Wholesale

 

 

NITTO DENKO (FOSHAN) CO., LTD.

Subsidiary

Foshan, Guangdong

China

Paper Wholesale

 

 

NISSHO SANGYO (SHANGHAI) CO., LTD.

Subsidiary

Shanghai

China

Paper Product Manufacturing

 

 

NITTO MATEX (SHENZHEN) CO., LTD.

Subsidiary

Shenzhen

China

Paper Product Manufacturing

 

 

NISSHO (HONG KONG) LTD.

Subsidiary

Kwai Fong, New Territories

Hong Kong

Synthetic Chemical Manufacturing

 

 

NISSHO PRECISION (THAILAND) CO., LTD.

Subsidiary

Chon Buri

Thailand

Rubber and Plastic Product Manufacturing

 

 

NITTO DENKO CZECH s.r.o.

Subsidiary

Brno

Czech Republic

Machinery and Equipment Manufacturing

 

 

KOREA OPTICAL HIGHTECH CO., LTD.

Subsidiary

Gumi, Kyungbuk

Korea, Republic of

Metal Products Manufacturing

 

 

FUKUSHIMA NITTO SHINKO CORPORATION

Subsidiary

Hanawa, Fukushima

Japan

Miscellaneous Chemical Manufacturing

 

 

Nitto Denko Automotive de Mexico S. de R.L. de C.V.

Subsidiary

Apodaca, Nuevo Leon

Mexico

Chemical Wholesale

 

 

Nitto Denko Automotive de Mexico Servicios S. de R.L. de C.V.

Subsidiary

Apodaca, Nuevo Leon

Mexico

Rubber and Plastic Product Manufacturing

 

 

Taiwan Nitto Optical Co., Ltd.

Subsidiary

Taichung

Taiwan

Rubber and Plastic Product Manufacturing

 

 

L NISSHO CORPORATION

Subsidiary

Osaka

Japan

Rubber and Plastic Product Manufacturing

 

 

NITTO MATEX (THAILAND) CO., LTD.

Subsidiary

Chon Buri

Thailand

Paint, Coating, and Adhesive Manufacturing

 

 

Nissho Corporation - Osaka Plant

Facility

Settsu, Osaka

Japan

Semiconductor and Other Electronic Component Manufacturing

 

 

NITTO DENKO TAPE MATERIALS (VIETNAM) CO., LTD.

Subsidiary

Thuan An, Binh Duong

Viet Nam

Paper Wholesale

 

 

NITTO BUSINESS SUPPORT CORPORATION

Subsidiary

Ibaraki, Osaka

Japan

Machinery Wholesale

 

 

NITTO DENKO (TIANJIN) INTERNATIONAL TRADE CO., LTD.

Subsidiary

Tianjin

China

Paper Wholesale

 

 

NITTO DENKO (SHANGHAI) ELECTRO-ENERGY CO., LTD.

Subsidiary

Shanghai

China

Semiconductor and Other Electronic Component Manufacturing

 

 

NITTO DENKO (SHANGHAI) PHARMACEUTICAL CONSULTING CO., LTD.

Subsidiary

Shanghai

China

Consulting Services

 

 

Nitto Denko (Shanghai Pu Dong New Area) Co., Ltd.

Subsidiary

Shanghai

China

Chemical Wholesale

 

 

KOREA NITTO DENKO CO., LTD.

Subsidiary

Seoul

Korea, Republic of

Semiconductor and Other Electronic Component Manufacturing

 

 

Nitto Denko Corporation - Ibaraki Plant

Facility

Ibaraki, Osaka

Japan

Paper Product Manufacturing

 

 

NISSHO PRECISION (SUZHOU) CO., LTD.

Subsidiary

Suzhou, Jiangsu

China

Paper Product Manufacturing

 

 

Shanghai Nitto Optical Co., Ltd.

Subsidiary

Shanghai

China

Professional and Commercial Equipment Wholesale

 

 

NISSHO PRECISION (WUXI) CO., LTD.

Subsidiary

Wuxi, Jiangsu

China

Paper Product Manufacturing

 

 

NITTO DENKO NITOMS KOREA CO., LTD.

Subsidiary

Seoul

Korea, Republic of

Machinery Wholesale

 

 

Nitto Denko (China) Investment Co., Ltd.

Subsidiary

Shanghai

China

Investment Services

 

 

NITTO DENKO AMERICA LATINA LTDA.

Subsidiary

Sao Paulo

Brazil

Electronics Wholesale

 

 

NISSHO (TAIWAN) CORPORATION

Subsidiary

Taipei

Taiwan

Paper Product Manufacturing

 

 

 

 

 

Competitors Report

 

Company Name

Location

Employees

Ownership

3M Co

St. Paul, Minnesota, United States

87,677

Public

Fujikura Ltd

Koto-Ku, Japan

52,409

Public

Marubeni Corp

Chiyoda-Ku, Japan

33,566

Public

MIMASU SEMICONDUCTOR IND. CO., LTD.

Takasaki-Shi, Japan

961

Public

Sumitomo Chemical Co Ltd

Chuo-Ku, Japan

30,396

Public

Tosoh Corporation

Minato-Ku, Japan

11,268

Public

Toyota Tsusho Corp

Minato-Ku, Japan

48,336

Public

 

 

Executives Report

 

Board of Directors

 

Name

Title

Function

Kaoru Aizawa

 

Senior Managing Executive Officer, Senior Manager of Quality & Environment & Safety, Manager of Export Management Center, Representative Director

Director/Board Member

Biography:

Mr. Kaoru Aizawa has been serving as Senior Managing Executive Officer, Senior Manager of Quality & Environment & Safety, Manager of Export Management Center and Representative Director in NITTO DENKO CORPORATION since June 17, 2011. He joined the Company in April 1977. He used to serve as Managing Executive Officer, Director of Electron Parts Material Business in Electric and Electronic Material Business Division, Manager of Backbone Technology Center, Manager of R & D, Senior Executive Officer and Chief Director of Industrial Business in the Company.

Age: 60

Yoichiro Furuse

 

Independent Director

Director/Board Member

 

Biography:

Mr. Yoichiro Furuse has been serving as Independent Director in NITTO DENKO CORPORATION since June 2007. He is also serving as Representative Director in Evanston Corporation and Director in another company. He used to serve as Managing Director in Sumitomo Mitsui Banking Corporation, Senior Managing Director in Mazda Motor Corporation, as well as Vice President and Representative Director in SANYO Electric Co.,Ltd. Mr. Furuse received his Master of Business Administration from Northwestern University's Kellogg School of Management in 1970 and his Bachelor of Laws from Osaka University in 1964.

Age: 71

Education:

Kellogg School of Management at Northwestern University, MBA
Osaka University, LLB

Kenji Matsumoto

 

Senior VP

Director/Board Member

 

Koshi Mizukoshi

 

Independent Director

Director/Board Member

 

Biography:

Mr. Koshi Mizukoshi has been serving as Independent Director in NITTO DENKO CORPORATION since June 2011. He is also working for Kobe Steel, Ltd., where he used to be President, Chairman of the Board and Representative Director.

Age: 74

Yukio Nagira

 

President, Chief Executive Officer, Chief Operating Officer, Representative Director

Director/Board Member

 

Biography:

Mr. Yukio Nagira has been serving as President, Chief Executive Officer, Chief Operating Officer and Representative Director in NITTO DENKO CORPORATION since June 2011. He joined the Company in April 1971 and has been holding directorship in the Company since June 1998. His previous titles include Director of Optical Material Business in Parts Material Business Division and Optical Business Division, Manager of Optical Business Division, Managing Director, Senior Manager of Business Division, Managing Executive Officer, Senior Managing Executive Officer, Chief Technology Officer, Chief Director of Optical Business and Director, among others, in the Company.

Age: 65

Toshihiko Omote

 

Chief Technology Officer, Managing Executive Officer, Manager of Company Technology, Director

Director/Board Member

 

Biography:

Mr. Toshihiko Omote has been serving as Chief Technology Officer, Managing Executive Officer, Manager of Company Technology and Director in NITTO DENKO CORPORATION since June 2013. He joined the Company in April 1982. His previous titles include Director of Circuit Materials Business, Manager of Basic Technology Center, Senior Executive Officer and Executive Officer.

Age: 54

Yoichiro Sakuma

 

Managing Executive Officer, Director

Director/Board Member

 

Biography:

Mr. Yoichiro Sakuma has been serving as Managing Executive Officer and Director in NITTO DENKO CORPORATION since June 2013. He joined the Company in April 1980, and served as Manager of Tape Business and Deputy Chief Director of Industrial Business, Executive Officer, Senior Executive Officer and Manager of Base Functional Material Business.

Age: 57

Hideo Takasaki

 

Senior Managing Executive Officer, Manager of Business Supervision Division, Director

Director/Board Member

 

Biography:

Mr. Hideo Takasaki has been serving as Senior Managing Executive Officer, Manager of Business Supervision Division and Director in NITTO DENKO CORPORATION since June 2013. He joined the Company in April 1978. His previous titles include Executive Officer, Director of Engineering Plastics in Specialty Products Business Division, Managing Executive Officer, Deputy Chief Director of Main Optical Business Unit, Senior Executive Officer and Chief Director of Optical Business.

Age: 59

Toru Takeuchi

 

Chief Financial Officer, Executive Officer, Senior Director of Accounting, President of Subsidiary, Director

Director/Board Member

 

Biography:

Mr. Toru Takeuchi has been serving as Chief Financial Officer, Executive Officer, Senior Director of Accounting and Director in NITTO DENKO CORPORATION, as well as President in a subsidiary since July 2012. He joined the Company in April 1981. His previous titles include Manager of Business Planning Office and Director of Accounting & Finance.

Age: 54

 

Executives

 

Name

Title

Function

Yukio Nagira

 

President, Chief Executive Officer, Chief Operating Officer, Representative Director

Chief Executive Officer

Biography:

Mr. Yukio Nagira has been serving as President, Chief Executive Officer, Chief Operating Officer and Representative Director in NITTO DENKO CORPORATION since June 2011. He joined the Company in April 1971 and has been holding directorship in the Company since June 1998. His previous titles include Director of Optical Material Business in Parts Material Business Division and Optical Business Division, Manager of Optical Business Division, Managing Director, Senior Manager of Business Division, Managing Executive Officer, Senior Managing Executive Officer, Chief Technology Officer, Chief Director of Optical Business and Director, among others, in the Company.

Age: 65

Kaoru Aizawa

 

Senior Managing Executive Officer, Senior Manager of Quality & Environment & Safety, Manager of Export Management Center, Representative Director

Division Head Executive

 

Biography:

Mr. Kaoru Aizawa has been serving as Senior Managing Executive Officer, Senior Manager of Quality & Environment & Safety, Manager of Export Management Center and Representative Director in NITTO DENKO CORPORATION since June 17, 2011. He joined the Company in April 1977. He used to serve as Managing Executive Officer, Director of Electron Parts Material Business in Electric and Electronic Material Business Division, Manager of Backbone Technology Center, Manager of R & D, Senior Executive Officer and Chief Director of Industrial Business in the Company.

Age: 60

Masahiko Arimoto

 

Managing Executive Officer

Division Head Executive

 

Masami Kanzaki

 

Managing Executive Officer

Division Head Executive

 

Hongin Kim

 

Managing Executive Officer

Division Head Executive

 

Kageshi Maruyama

 

Executive Officer

Division Head Executive

 

Yasushi Nakahira

 

Executive Officer

Division Head Executive

 

Tsutomu Nishioka

 

Executive Officer

Division Head Executive

 

Tatsuya Ohsuka

 

Executive Officer

Division Head Executive

 

Yasuto Ohwaki

 

Executive Officer

Division Head Executive

 

Kazuyuki Okada

 

Executive Officer

Division Head Executive

 

Toshihiko Omote

 

Chief Technology Officer, Managing Executive Officer, Manager of Company Technology, Director

Division Head Executive

 

Biography:

Mr. Toshihiko Omote has been serving as Chief Technology Officer, Managing Executive Officer, Manager of Company Technology and Director in NITTO DENKO CORPORATION since June 2013. He joined the Company in April 1982. His previous titles include Director of Circuit Materials Business, Manager of Basic Technology Center, Senior Executive Officer and Executive Officer.

Age: 54

Tomoo Sakamoto

 

Executive Officer

Division Head Executive

 

Yoichiro Sakuma

 

Managing Executive Officer, Director

Division Head Executive

 

Biography:

Mr. Yoichiro Sakuma has been serving as Managing Executive Officer and Director in NITTO DENKO CORPORATION since June 2013. He joined the Company in April 1980, and served as Manager of Tape Business and Deputy Chief Director of Industrial Business, Executive Officer, Senior Executive Officer and Manager of Base Functional Material Business.

Age: 57

Hideo Takasaki

 

Senior Managing Executive Officer, Manager of Business Supervision Division, Director

Division Head Executive

 

Biography:

Mr. Hideo Takasaki has been serving as Senior Managing Executive Officer, Manager of Business Supervision Division and Director in NITTO DENKO CORPORATION since June 2013. He joined the Company in April 1978. His previous titles include Executive Officer, Director of Engineering Plastics in Specialty Products Business Division, Managing Executive Officer, Deputy Chief Director of Main Optical Business Unit, Senior Executive Officer and Chief Director of Optical Business.

Age: 59

Toru Takeuchi

 

Chief Financial Officer, Executive Officer, Senior Director of Accounting, President of Subsidiary, Director

Division Head Executive

 

Biography:

Mr. Toru Takeuchi has been serving as Chief Financial Officer, Executive Officer, Senior Director of Accounting and Director in NITTO DENKO CORPORATION, as well as President in a subsidiary since July 2012. He joined the Company in April 1981. His previous titles include Manager of Business Planning Office and Director of Accounting & Finance.

Age: 54

Toshiyuki Umehara

 

Senior Executive Officer

Division Head Executive

 

Toshio Yamamoto

 

Senior Executive Officer

Division Head Executive

 

Michio Yoshimoto

 

Senior Executive Officer

Division Head Executive

 

Nobuhiko Mizumoto

 

Vice President

Administration Executive

 

Michio Yamamoto

 

Vice President

Administration Executive

 

Mitsuhide Shiraki

 

Corporate Auditor

Accounting Executive

 

Yoshihiro Taniguchi

 

Corporate Auditor

Accounting Executive

 

Masashi Teranishi

 

Corporate Auditor

Accounting Executive

 

Masakazu Toyoda

 

Corporate Auditor

Accounting Executive

 

Kenji Ueki

 

Corporate Auditor

Accounting Executive

 

Shin Tokuyasu

 

Director of Accounting

Investor Relations Executive

 

Takeshi Nasu

 

Senior VP

Other

 

 

 

 

 

Significant Developments

 

R&I Affirms NITTO DENKO CORPORATION's Rating at "AA-"; Rating Outlook Stable

Mar 07, 2013


Rating and Investment Information, Inc. (R&I) announced that it has affirmed the rating on NITTO DENKO CORPORATION at "AA-". The rating outlook is stable.

 

News

 

WIPO PUBLISHES PATENT OF NITTO DENKO FOR "MEMBRANE SEPARATION DEVICE, METHOD FOR MEASURING MEMBRANE FOULING, METHOD FOR OPERATING MEMBRANE SEPARATION...
U.S. Fed News (275 Words)

20-Sep-2013

WIPO PUBLISHES PATENT OF NITTO DENKO FOR "THERMALLY CONDUCTIVE ADHESIVE SHEET AND ELECTRONIC/ELECTRICAL DEVICE" (JAPANESE INVENTORS)
U.S. Fed News (158 Words)

19-Sep-2013

USPTO Published Patent application of NITTO DENKO CORPORATION titled as "CERAMIC BODY FOR LIGHT EMITTING DEVICES".
US Official News (222 Words)

19-Sep-2013

Patent Issued for Liquid Crystal Panel and Liquid Crystal Display Apparatus
Journal of Engineering (952 Words)

18-Sep-2013

Momentum Stocks in Focus: Pacific Gold Corp. (OTCMKTS: PCFG), Tullow Oil Plc (UK) (OTCMKTS: TUWOY), L'Oreal S.A (ADR) (OTCMKTS: LRLCY), NITTO DENKO ADR (OTCMKTS: NDEKY)
SBWire (640 Words)

18-Sep-2013

WIPO PUBLISHES PATENT OF NITTO DENKO FOR "ADHESIVE RAW MATERIAL AND THERMALLY CONDUCTIVE ADHESIVE SHEET" (JAPANESE INVENTORS)
U.S. Fed News (200 Words)

18-Sep-2013

US Patent Issued to Nitto Denko on Sept. 17 for "Antiglare film, antiglare sheet, process for producing them, and image display apparatus using them"...
U.S. Fed News (277 Words)

18-Sep-2013

US Patent Issued to Nitto Denko on Sept. 17 for "Manufacturing method of optical waveguide device and optical waveguide device obtained thereby"...
U.S. Fed News (287 Words)

17-Sep-2013

US Patent Issued to Nitto Denko on Sept. 17 for "Optical waveguide device" (Japanese Inventors)
U.S. Fed News (240 Words)

17-Sep-2013

US Patent Issued to Nitto Denko on Sept. 17 for "Door hole cover and vehicular door structure" (Japanese Inventors)
U.S. Fed News (168 Words)

17-Sep-2013

Global Touchscreen Industry Forecast, Opportunities & Trends 2013-2016
Research and Markets (454 Words)

16-Sep-2013

 

 

Annual Income Statement

 

Financials in: USD (mil) 

Except for share items (millions) and per share items (actual units)         

 

 

 

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

KPMG AZSA LLC

KPMG AZSA LLC

KPMG LLP

KPMG LLP

KPMG LLP

Auditor Opinion

Unqualified

Unqualified

Unqualified

Unqualified

Unqualified with Explanation

 

 

 

 

 

 

    Net Sales

8,142.8

7,695.4

7,451.8

6,475.7

5,751.4

Revenue

8,142.8

7,695.4

7,451.8

6,475.7

5,751.4

Total Revenue

8,142.8

7,695.4

7,451.8

6,475.7

5,751.4

 

 

 

 

 

 

    Cost of Revenue

5,835.6

5,571.6

5,181.8

4,741.9

4,535.7

Cost of Revenue, Total

5,835.6

5,571.6

5,181.8

4,741.9

4,535.7

Gross Profit

2,307.2

2,123.8

2,270.0

1,733.8

1,215.7

 

 

 

 

 

 

    Selling/General/Administrative Expense

406.5

383.6

352.5

298.4

325.6

    Labor & Related Expense

648.1

625.8

586.1

521.3

459.7

Total Selling/General/Administrative Expenses

1,054.6

1,009.4

938.6

819.6

785.3

Research & Development

332.3

316.6

256.1

224.6

216.1

    Depreciation

94.5

84.4

82.6

92.5

81.7

    Amortization of Acquisition Costs

-

-

-1.0

-2.3

-4.9

Depreciation/Amortization

94.5

84.4

81.6

90.2

76.8

    Impairment-Assets Held for Use

22.8

53.6

18.1

37.2

102.7

    Impairment-Assets Held for Sale

1.3

0.2

0.9

0.2

1.0

    Other Unusual Expense (Income)

2.3

16.3

6.7

11.2

27.3

Unusual Expense (Income)

26.3

70.1

25.7

48.6

131.1

    Other Operating Expense

0.0

-

-

-

-

Other Operating Expenses, Total

0.0

-

-

-

-

Total Operating Expense

7,343.4

7,052.2

6,483.8

5,925.0

5,745.0

 

 

 

 

 

 

Operating Income

799.4

643.3

968.0

550.7

6.4

 

 

 

 

 

 

        Interest Expense - Non-Operating

-11.6

-11.5

-12.0

-14.5

-12.7

    Interest Expense, Net Non-Operating

-11.6

-11.5

-12.0

-14.5

-12.7

        Interest Income - Non-Operating

8.8

3.8

3.7

2.9

5.0

        Investment Income - Non-Operating

-62.2

-26.1

-13.6

4.9

10.5

    Interest/Investment Income - Non-Operating

-53.4

-22.3

-9.8

7.8

15.5

Interest Income (Expense) - Net Non-Operating Total

-65.0

-33.8

-21.9

-6.7

2.8

Gain (Loss) on Sale of Assets

5.1

-10.6

0.1

-6.9

0.4

    Other Non-Operating Income (Expense)

25.3

32.4

21.8

40.6

7.1

Other, Net

25.3

32.4

21.8

40.6

7.1

Income Before Tax

764.8

631.3

968.0

577.7

16.7

 

 

 

 

 

 

Total Income Tax

230.4

234.3

313.8

171.9

4.1

Income After Tax

534.4

397.0

654.2

405.9

12.6

 

 

 

 

 

 

    Minority Interest

-6.0

-3.5

-3.7

-1.6

-9.9

Net Income Before Extraord Items

528.4

393.4

650.5

404.2

2.7

Net Income

528.4

393.4

650.5

404.2

2.7

 

 

 

 

 

 

    Miscellaneous Earnings Adjustment

0.0

0.0

-

0.0

0.0

Total Adjustments to Net Income

0.0

0.0

-

0.0

0.0

Income Available to Common Excl Extraord Items

528.4

393.4

650.5

404.2

2.7

 

 

 

 

 

 

Income Available to Common Incl Extraord Items

528.4

393.4

650.5

404.2

2.7

 

 

 

 

 

 

Basic/Primary Weighted Average Shares

164.6

164.5

165.2

166.6

166.6

Basic EPS Excl Extraord Items

3.21

2.39

3.94

2.43

0.02

Basic/Primary EPS Incl Extraord Items

3.21

2.39

3.94

2.43

0.02

Dilution Adjustment

-

-

0.0

0.0

0.0

Diluted Net Income

528.4

393.4

650.5

404.2

2.7

Diluted Weighted Average Shares

164.9

164.7

165.6

166.8

166.8

Diluted EPS Excl Extraord Items

3.20

2.39

3.93

2.42

0.02

Diluted EPS Incl Extraord Items

3.20

2.39

3.93

2.42

0.02

Dividends per Share - Common Stock Primary Issue

1.21

1.27

1.05

0.43

0.80

Gross Dividends - Common Stock

198.5

208.3

172.5

71.7

132.6

Interest Expense, Supplemental

11.6

11.5

12.0

14.5

12.7

Depreciation, Supplemental

439.5

466.1

466.1

482.1

503.1

Total Special Items

21.2

80.7

24.6

53.2

125.8

Normalized Income Before Tax

786.0

712.0

992.6

631.0

142.4

 

 

 

 

 

 

Effect of Special Items on Income Taxes

6.4

30.0

8.3

16.5

32.1

Inc Tax Ex Impact of Sp Items

236.8

264.3

322.1

188.4

36.2

Normalized Income After Tax

549.3

447.7

670.5

442.6

106.2

 

 

 

 

 

 

Normalized Inc. Avail to Com.

543.2

444.2

666.8

441.0

96.3

 

 

 

 

 

 

Basic Normalized EPS

3.30

2.70

4.04

2.65

0.58

Diluted Normalized EPS

3.29

2.70

4.03

2.64

0.58

Amort of Acquisition Costs, Supplemental

-

-

-1.0

-2.3

-4.9

Research & Development Exp, Supplemental

332.3

316.6

256.1

224.6

216.1

Reported Operating Profit

827.7

715.4

994.8

603.5

137.7

Reported Ordinary Profit

812.0

740.1

993.6

633.0

147.4

Normalized EBIT

825.8

713.4

993.6

599.3

137.5

Normalized EBITDA

1,265.3

1,179.5

1,458.8

1,079.2

635.7

    Current Tax - Total

261.6

189.8

-

-

-

Current Tax - Total

261.6

189.8

-

-

-

    Deferred Tax - Total

-31.3

44.5

-

-

-

Deferred Tax - Total

-31.3

44.5

-

-

-

Income Tax - Total

230.4

234.3

-

-

-

Interest Cost - Domestic

25.7

30.3

27.5

28.1

25.4

Service Cost - Domestic

68.6

67.3

55.8

52.1

47.0

Prior Service Cost - Domestic

-5.9

-6.1

-5.6

-5.1

-4.7

Expected Return on Assets - Domestic

40.7

-42.0

-36.8

-20.3

-27.8

Actuarial Gains and Losses - Domestic

62.0

53.5

44.8

49.7

28.9

Domestic Pension Plan Expense

191.2

103.0

85.8

104.4

68.8

Total Pension Expense

191.2

103.0

85.8

104.4

68.8

Discount Rate - Domestic

1.40%

1.60%

1.90%

2.10%

2.00%

Expected Rate of Return - Domestic

1.50%

1.50%

1.50%

1.50%

1.50%

Total Plan Interest Cost

25.7

30.3

27.5

28.1

25.4

Total Plan Service Cost

68.6

67.3

55.8

52.1

47.0

Total Plan Expected Return

40.7

-42.0

-36.8

-20.3

-27.8

 

 

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

KPMG AZSA LLC

KPMG AZSA LLC

KPMG LLP

KPMG LLP

KPMG LLP

Auditor Opinion

Unqualified

Unqualified

Unqualified

Unqualified

Unqualified with Explanation

 

 

 

 

 

 

    Cash & Equivalents

2,307.3

2,547.2

2,546.4

1,839.9

1,153.8

Cash and Short Term Investments

2,307.3

2,547.2

2,546.4

1,839.9

1,153.8

        Accounts Receivable - Trade, Gross

1,730.4

1,539.6

1,601.4

1,452.6

946.9

        Provision for Doubtful Accounts

-8.8

-6.6

-8.5

-8.9

-6.8

    Trade Accounts Receivable - Net

1,721.6

1,533.0

1,592.9

1,443.7

940.1

Total Receivables, Net

1,721.6

1,533.0

1,592.9

1,443.7

940.1

    Inventories - Finished Goods

232.1

244.6

250.9

211.6

205.5

    Inventories - Work In Progress

458.9

404.9

348.8

289.3

293.2

    Inventories - Raw Materials

184.3

170.4

153.1

119.0

118.7

Total Inventory

875.2

819.9

752.9

619.9

617.5

    Deferred Income Tax - Current Asset

111.0

78.7

110.1

90.4

72.5

    Other Current Assets

124.1

155.5

105.6

89.5

144.4

Other Current Assets, Total

235.1

234.2

215.7

179.9

216.9

Total Current Assets

5,139.3

5,134.3

5,107.8

4,083.4

2,928.3

 

 

 

 

 

 

        Buildings

2,292.3

2,413.1

2,376.6

2,100.3

1,917.8

        Land/Improvements

208.8

231.3

230.2

204.6

199.3

        Machinery/Equipment

4,329.4

4,569.5

4,405.4

3,845.3

3,519.2

        Construction in Progress

213.0

192.3

149.5

89.1

204.5

    Property/Plant/Equipment - Gross

7,043.5

7,406.2

7,161.7

6,239.3

5,840.9

    Accumulated Depreciation

-4,775.5

-5,099.1

-4,807.1

-4,008.9

-3,510.4

Property/Plant/Equipment - Net

2,268.0

2,307.1

2,354.6

2,230.3

2,330.5

Goodwill, Net

32.4

15.1

19.4

0.6

0.7

Intangibles, Net

116.0

93.6

78.3

77.2

86.2

    LT Investment - Affiliate Companies

18.3

45.0

36.5

22.9

-

    LT Investments - Other

67.1

64.2

67.0

72.3

76.7

Long Term Investments

85.5

109.2

103.6

95.1

76.7

    Pension Benefits - Overfunded

110.8

87.9

75.8

60.4

98.0

    Deferred Income Tax - Long Term Asset

91.2

121.2

115.2

103.8

87.8

    Other Long Term Assets

37.5

44.5

35.6

37.7

43.7

Other Long Term Assets, Total

239.5

253.6

226.6

201.9

229.6

Total Assets

7,880.6

7,912.9

7,890.4

6,688.6

5,652.0

 

 

 

 

 

 

Accounts Payable

936.4

955.6

975.8

851.1

545.5

Accrued Expenses

242.8

199.3

235.4

202.5

120.8

Notes Payable/Short Term Debt

118.4

36.1

31.3

42.3

540.5

Current Portion - Long Term Debt/Capital Leases

-

-

97.2

71.8

4.5

    Income Taxes Payable

147.9

42.6

225.7

168.5

15.6

    Other Payables

331.9

374.7

289.4

224.1

306.0

    Other Current Liabilities

89.9

72.6

39.8

41.5

23.3

Other Current liabilities, Total

569.7

489.9

555.0

434.2

345.0

Total Current Liabilities

1,867.2

1,681.0

1,894.8

1,601.9

1,556.3

 

 

 

 

 

 

    Long Term Debt

541.9

679.7

675.7

688.3

211.8

    Capital Lease Obligations

-

0.2

0.1

0.2

-

Total Long Term Debt

541.9

680.0

675.8

688.5

211.8

Total Debt

660.3

716.1

804.3

802.7

756.9

 

 

 

 

 

 

    Deferred Income Tax - LT Liability

13.3

4.3

4.4

1.9

3.5

Deferred Income Tax

13.3

4.3

4.4

1.9

3.5

Minority Interest

22.9

17.4

14.7

10.6

22.3

    Pension Benefits - Underfunded

214.0

235.3

230.2

211.2

190.9

    Other Long Term Liabilities

19.0

20.9

21.5

24.9

33.2

Other Liabilities, Total

233.0

256.3

251.8

236.1

224.1

Total Liabilities

2,678.3

2,638.9

2,841.5

2,539.1

2,018.1

 

 

 

 

 

 

    Common Stock

284.7

325.1

323.2

286.6

271.2

Common Stock

284.7

325.1

323.2

286.6

271.2

Additional Paid-In Capital

605.2

693.4

688.0

612.4

579.6

Retained Earnings (Accumulated Deficit)

4,678.3

5,010.4

4,804.1

3,770.5

3,287.8

Treasury Stock - Common

-344.4

-408.5

-409.7

-302.7

-287.3

Unrealized Gain (Loss)

20.2

14.3

15.1

18.8

10.5

    Translation Adjustment

-24.3

-352.6

-373.2

-233.0

-226.6

    Other Equity

0.0

0.0

-

-

-

    Other Comprehensive Income

-17.4

-8.0

1.5

-3.0

-1.3

Other Equity, Total

-41.7

-360.6

-371.7

-236.1

-227.9

Total Equity

5,202.3

5,274.1

5,048.9

4,149.5

3,633.9

 

 

 

 

 

 

Total Liabilities & Shareholders’ Equity

7,880.6

7,912.9

7,890.4

6,688.6

5,652.0

 

 

 

 

 

 

    Shares Outstanding - Common Stock Primary Issue

164.8

164.5

164.4

166.6

166.6

Total Common Shares Outstanding

164.8

164.5

164.4

166.6

166.6

Treasury Shares - Common Stock Primary Issue

8.9

9.3

9.4

7.2

7.2

Employees

25,476

26,468

25,402

24,851

23,163

Number of Common Shareholders

47,834

63,701

57,543

64,487

62,442

Total Long Term Debt, Supplemental

605.9

680.0

772.9

760.1

216.3

Long Term Debt Maturing within 1 Year

63.8

36.4

97.2

71.8

4.5

Long Term Debt Maturing in Year 2

536.9

36.4

0.0

88.8

53.2

Long Term Debt Maturing in Year 3

5.1

606.9

72.4

0.2

97.6

Long Term Debt Maturing in Year 4

0.0

0.0

603.3

64.2

0.2

Long Term Debt Maturing in Year 5

0.0

0.0

0.0

535.1

60.7

Long Term Debt Maturing in 2-3 Years

542.0

643.4

72.4

89.0

150.8

Long Term Debt Maturing in 4-5 Years

0.0

0.0

603.3

599.3

61.0

Long Term Debt Matur. in Year 6 & Beyond

0.1

0.1

0.0

0.0

0.0

Total Capital Leases, Supplemental

-

-

0.1

0.2

-

Capital Lease Payments Due in Year 1

-

-

0.0

0.1

-

Capital Lease Payments Due in Year 2

-

-

0.0

0.0

-

Capital Lease Payments Due in Year 3

-

-

0.0

0.0

-

Capital Lease Payments Due in Year 4

-

-

0.0

0.1

-

Capital Lease Payments Due in 2-3 Years

-

-

0.0

0.1

-

Capital Lease Payments Due in 4-5 Years

-

-

0.0

0.1

-

Pension Obligation - Domestic

1,380.4

1,495.8

1,384.1

1,187.3

1,097.4

Plan Assets - Domestic

977.6

975.3

947.6

800.2

648.6

Funded Status - Domestic

-402.8

-520.5

-436.5

-387.1

-448.8

Total Funded Status

-402.8

-520.5

-436.5

-387.1

-448.8

Discount Rate - Domestic

1.40%

1.60%

1.90%

2.10%

2.00%

Expected Rate of Return - Domestic

1.50%

1.50%

1.50%

1.50%

1.50%

Prepaid Benefits - Domestic

110.8

87.9

75.8

60.4

98.0

Accrued Liabilities - Domestic

-210.0

-230.6

-225.5

-205.7

-185.8

Other Assets, Net - Domestic

303.6

377.8

286.9

241.7

361.0

Net Assets Recognized on Balance Sheet

204.4

235.1

137.3

96.4

273.3

Total Plan Obligations

1,380.4

1,495.8

1,384.1

1,187.3

1,097.4

Total Plan Assets

977.6

975.3

947.6

800.2

648.6

 

 

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

KPMG AZSA LLC

KPMG AZSA LLC

KPMG LLP

KPMG LLP

KPMG LLP

Auditor Opinion

Unqualified

Unqualified

Unqualified

Unqualified

Unqualified with Explanation

 

 

 

 

 

 

Net Income/Starting Line

764.8

631.3

968.0

577.8

16.7

    Depreciation

439.5

466.1

466.1

482.1

503.1

Depreciation/Depletion

439.5

466.1

466.1

482.1

503.1

    Unusual Items

44.9

101.9

18.9

36.0

103.3

    Equity in Net Earnings (Loss)

7.7

4.7

0.2

0.9

1.7

    Other Non-Cash Items

-34.1

-2.6

-9.5

63.2

25.2

Non-Cash Items

18.5

103.9

9.5

100.1

130.3

    Accounts Receivable

-236.7

66.5

-11.2

-458.3

449.4

    Inventories

-113.1

-71.3

-73.2

31.1

83.1

    Accounts Payable

93.2

-18.8

72.2

283.6

-416.4

    Accrued Expenses

66.1

-35.5

11.2

79.0

-70.6

    Other Operating Cash Flow

-198.7

-401.6

-310.0

7.4

-185.1

Changes in Working Capital

-389.3

-460.6

-311.0

-57.2

-139.7

Cash from Operating Activities

833.5

740.8

1,132.6

1,102.8

510.4

 

 

 

 

 

 

    Purchase of Fixed Assets

-637.2

-446.4

-327.1

-365.3

-611.0

Capital Expenditures

-637.2

-446.4

-327.1

-365.3

-611.0

    Acquisition of Business

-92.8

0.0

-31.9

0.0

-

    Sale of Business

42.6

5.4

0.2

0.0

-

    Sale of Fixed Assets

5.1

1.6

11.5

7.8

5.1

    Sale/Maturity of Investment

0.2

1.9

0.3

0.7

0.1

    Investment, Net

0.7

-17.6

-17.3

-656.5

6.6

    Purchase of Investments

-7.1

-20.9

-13.3

-29.2

-9.5

    Other Investing Cash Flow

10.4

6.5

3.8

3.2

4.1

Other Investing Cash Flow Items, Total

-41.0

-23.0

-46.8

-673.9

6.4

Cash from Investing Activities

-678.2

-469.4

-373.9

-1,039.2

-604.6

 

 

 

 

 

 

    Other Financing Cash Flow

-0.4

-0.4

-0.3

-0.7

-0.8

Financing Cash Flow Items

-0.4

-0.4

-0.3

-0.7

-0.8

    Cash Dividends Paid - Common

-198.3

-208.2

-115.5

-107.5

-132.6

Total Cash Dividends Paid

-198.3

-208.2

-115.5

-107.5

-132.6

    Common Stock, Net

11.6

2.0

-69.8

0.2

0.0

Issuance (Retirement) of Stock, Net

11.6

2.0

-69.8

0.2

0.0

    Short Term Debt, Net

-1.7

3.7

-12.8

-525.5

458.2

        Long Term Debt Issued

10.1

-

0.0

539.8

147.8

        Long Term Debt Reduction

0.0

-100.7

-74.2

-4.5

-7.8

    Long Term Debt, Net

10.1

-100.7

-74.2

535.2

140.0

Issuance (Retirement) of Debt, Net

8.4

-97.0

-87.0

9.8

598.3

Cash from Financing Activities

-178.6

-303.7

-272.6

-98.2

464.8

 

 

 

 

 

 

Foreign Exchange Effects

102.4

-0.3

-46.7

1.3

-27.4

Net Change in Cash

79.1

-32.6

439.5

-33.3

343.2

 

 

 

 

 

 

Net Cash - Beginning Balance

1,756.2

1,878.0

1,291.0

1,223.6

788.6

Net Cash - Ending Balance

1,835.3

1,845.4

1,730.5

1,190.3

1,131.7

Cash Interest Paid

11.7

12.1

12.5

16.4

13.6

Cash Taxes Paid

105.3

419.3

284.6

-15.3

197.4

 

 

Annual Income Statement

 

Financials in: USD (mil)                                                                

Except for share items (millions) and per share items (actual units)

 

 

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

KPMG AZSA LLC

KPMG AZSA LLC

KPMG LLP

KPMG LLP

KPMG LLP

Auditor Opinion

Unqualified

Unqualified

Unqualified

Unqualified

Unqualified with Explanation

 

 

 

 

 

 

    Net sales

8,142.8

7,695.4

7,451.8

6,475.7

5,751.4

Total Revenue

8,142.8

7,695.4

7,451.8

6,475.7

5,751.4

 

 

 

 

 

 

    Rounding adjustment Income Statement

0.0

-

-

-

-

    Cost of Sales

5,835.6

5,571.6

5,181.8

4,741.9

4,535.7

    Other

168.8

-

-

-

-

    Other Selling/General/Admin. Expense

-

160.8

-

-

-

    Commission cost

51.9

47.2

40.7

63.8

61.8

    Freight costs

185.4

175.6

155.9

139.3

124.7

    Labor expense

589.6

571.8

539.1

465.5

421.5

    Reserve for retirement benefits

54.0

49.5

41.1

52.1

34.7

    Reserve for dir.'s retirement benefit

0.9

1.1

1.3

0.8

0.9

    Depreciation expense

92.6

82.4

80.4

86.1

76.5

    Research and Development Expense(in SGA)

332.3

316.6

-

-

-

    R & D expenses

-

-

256.1

224.6

216.1

    Provision for doubtful accounts(SGA)

0.4

0.0

-0.6

3.0

2.9

    Provision for dir's bonuses

3.6

3.5

4.6

2.8

2.6

    Other SGA

-

-

156.5

92.3

136.2

    Other Unusual Expense (Income)

0.0

-

-

-

-

    License income

-5.4

-

-

-

-

    Gain on change in equity

-

-4.0

-

-

-

    SP Rev.Allow.Doubtful Acc.

-

-

-0.7

-0.6

-0.4

    SP Return of insurance cancel

-

-

-

-

0.0

    SP Patent-related income

-

-

-

0.0

-2.8

    SP G on rev. of st. subscrip. rights

-0.7

-0.6

-2.7

-3.6

0.0

    SP Compensation received

-

-

-0.7

-1.0

-2.6

    SP Other Special Income

-

-

0.0

-2.5

-3.1

    SP Write Off Fixed

15.3

12.6

16.0

34.5

52.8

    SP Loss-Valu. Inv. Secs

1.3

0.2

0.9

0.2

1.0

    SP Impairment loss

7.6

41.0

2.0

2.8

49.9

    SP Special Retirements

4.1

0.9

0.8

2.4

7.4

    SP Loss on disaster

0.0

16.9

7.6

0.0

-

    SP Other Special Loss

4.2

3.1

2.5

16.5

28.9

    NOP Amort of negative goodwill

-

-

-1.0

-2.3

-4.9

    NOP Rent asset depreciation

1.9

2.0

2.1

6.4

5.2

Total Operating Expense

7,343.4

7,052.2

6,483.8

5,925.0

5,745.0

 

 

 

 

 

 

    Gain on liquidation of subsidiaries and

4.5

-

-

-

-

    Gain on sales of subsidiaries and affili

0.0

9.4

-

-

-

    Gain on change in equity

0.0

-

-

-

-

    Equity in losses of affiliates

-7.7

-4.7

-

-

-

    Loss on sales of stocks of subsidiaries

-26.0

-28.0

-

-

-

    Loss on liquidation of subsidiaries and

0.0

-20.1

-

-

-

    SP Gains on equity changes

-

-

0.0

-

-

    SP Gain-Sale Fixed

1.0

0.4

2.6

2.4

0.9

    SP Gain-Sale Affili.Stk

-

-

0.0

-

-

    SP Gain-Sale Inv. Secs.

0.0

0.0

0.0

0.2

0.0

    SP Loss-Sale Fixed

-0.5

-0.4

-2.5

-1.0

-0.5

    SP Liquidation of affil. Companies

-

-

0.0

-8.3

0.0

    SP Loss-Sale Affili.Stk

-

-

0.0

-

-

    NOP Interest Income

8.8

3.8

3.7

2.9

5.0

    NOP Dividend Income

1.4

1.6

1.6

1.4

1.6

    Contribution

-3.8

-4.7

-

-

-

    Other Non-Operating Income (Expense)

0.0

0.0

-

-

-

    Insurance and dividends income

9.4

11.1

-

-

-

    Land and house rent received

5.0

5.0

4.5

4.1

3.5

    NOP Subsidy Income

7.8

5.0

6.4

26.6

2.5

    Scrap income

16.2

15.9

13.5

16.1

10.6

    NOP Insurance and dividends income

-

-

2.9

-

-

    NOP Exchange Gain

0.0

5.0

0.0

3.3

8.9

    NOP Other Income

11.3

9.9

9.8

11.2

10.7

    NOP Interest Expense

-11.6

-11.5

-12.0

-14.5

-12.7

    NOP Contribution

-

-

-4.4

-

-

    NOP Sale Discount

-3.9

-4.3

-4.0

-4.0

-4.7

    NOP Exchange Loss

-30.0

-

-14.9

0.0

0.0

    NOP Equity in losses of affiliates

-

-

-0.2

-

-

    NOP Other Expenses

-16.8

-5.5

-6.9

-13.3

-15.6

Net Income Before Taxes

764.8

631.3

968.0

577.7

16.7

 

 

 

 

 

 

Total income taxes

230.4

234.3

313.8

171.9

4.1

Net Income After Taxes

534.4

397.0

654.2

405.9

12.6

 

 

 

 

 

 

    Minority interests in income

-6.0

-3.5

-3.7

-1.6

-9.9

Net Income Before Extra. Items

528.4

393.4

650.5

404.2

2.7

Net Income

528.4

393.4

650.5

404.2

2.7

 

 

 

 

 

 

    Rounding adjustment Income Statement

0.0

-

-

-

-

    Rounding adjustment Income Statement

-

0.0

-

-

-

    Adjustment

-

-

-

0.0

0.0

Income Available to Com Excl ExtraOrd

528.4

393.4

650.5

404.2

2.7

 

 

 

 

 

 

Income Available to Com Incl ExtraOrd

528.4

393.4

650.5

404.2

2.7

 

 

 

 

 

 

Basic Weighted Average Shares

164.6

164.5

165.2

166.6

166.6

Basic EPS Excluding ExtraOrdinary Items

3.21

2.39

3.94

2.43

0.02

Basic EPS Including ExtraOrdinary Items

3.21

2.39

3.94

2.43

0.02

Dilution Adjustment

-

-

0.0

0.0

0.0

Diluted Net Income

528.4

393.4

650.5

404.2

2.7

Diluted Weighted Average Shares

164.9

164.7

165.6

166.8

166.8

Diluted EPS Excluding ExtraOrd Items

3.20

2.39

3.93

2.42

0.02

Diluted EPS Including ExtraOrd Items

3.20

2.39

3.93

2.42

0.02

DPS-Ordinary Shares

1.21

1.27

1.05

0.43

0.80

Gross Dividends - Common Stock

198.5

208.3

172.5

71.7

132.6

Normalized Income Before Taxes

786.0

712.0

992.6

631.0

142.4

 

 

 

 

 

 

Inc Tax Ex Impact of Sp Items

236.8

264.3

322.1

188.4

36.2

Normalized Income After Taxes

549.3

447.7

670.5

442.6

106.2

 

 

 

 

 

 

Normalized Inc. Avail to Com.

543.2

444.2

666.8

441.0

96.3

 

 

 

 

 

 

Basic Normalized EPS

3.30

2.70

4.04

2.65

0.58

Diluted Normalized EPS

3.29

2.70

4.03

2.64

0.58

Research and Development Expense(in SGA)

332.3

316.6

-

-

-

R & D expenses

-

-

256.1

224.6

216.1

Interest Expense

11.6

11.5

12.0

14.5

12.7

BC - Depreciation of Fixed Assets

439.5

-

-

-

-

Amort of Tangible Assets-Current Portion

-

466.1

-

-

-

Depreciation

-

-

466.1

482.1

503.1

Amort of negative goodwill

-

-

-1.0

-2.3

-4.9

    Income taxes-current

261.6

189.8

-

-

-

Current Tax - Total

261.6

189.8

-

-

-

    Income taxes-deferred

-31.3

44.5

-

-

-

Deferred Tax - Total

-31.3

44.5

-

-

-

Income Tax - Total

230.4

234.3

-

-

-

Reported operating profit

827.7

715.4

994.8

603.5

137.7

Reported ordinary profit

812.0

740.1

993.6

633.0

147.4

Service Cost

68.6

67.3

55.8

52.1

47.0

Interest Cost

25.7

30.3

27.5

28.1

25.4

Expected Return on Plan Assets

40.7

-42.0

-36.8

-20.3

-27.8

Actuarial Gains and Losses

62.0

53.5

44.8

49.7

28.9

Prior Service Cost

-5.9

-6.1

-5.6

-5.1

-4.7

Domestic Pension Plan Expense

191.2

103.0

85.8

104.4

68.8

Total Pension Expense

191.2

103.0

85.8

104.4

68.8

Discount Rate(MIN)-Retirement Cost(Domes

1.40%

1.60%

-

-

-

Discount Rate

-

-

1.90%

2.10%

2.00%

Expected return on assets(MIN)-Retiremen

1.50%

1.50%

-

-

-

Expected Rate of Return

-

-

1.50%

1.50%

1.50%

 

 

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

KPMG AZSA LLC

KPMG AZSA LLC

KPMG LLP

KPMG LLP

KPMG LLP

Auditor Opinion

Unqualified

Unqualified

Unqualified

Unqualified

Unqualified with Explanation

 

 

 

 

 

 

    Cash & Deposit

2,307.3

2,547.2

2,546.4

1,839.9

1,153.8

    Notes and accounts receivable-trade

1,730.4

1,539.6

1,601.4

1,452.6

946.9

    Inventories - merchandise&finished goods

232.1

244.6

250.9

211.6

205.5

    Inventories - work-in-process

458.9

404.9

348.8

289.3

293.2

    Inventories - raw materials & supplies

184.3

170.4

153.1

119.0

118.7

    Deferred Tax

111.0

78.7

110.1

90.4

72.5

    Rounding adjustment Assets

0.0

0.0

-

-

-

    Other Assets

124.1

155.5

105.6

89.5

144.4

    Doubtful Account

-8.8

-6.6

-8.5

-8.9

-6.8

Total Current Assets

5,139.3

5,134.3

5,107.8

4,083.4

2,928.3

 

 

 

 

 

 

    Buildings And Structures

2,292.3

-

-

-

-

    Buidl.&Structure

-

2,413.1

2,376.6

2,100.3

1,917.8

    Machinery, equipment and vehicles

3,901.1

-

-

-

-

    Tools, furniture and fixtures

428.3

-

-

-

-

    Machinery, equipment and vehicles

-

4,109.4

3,962.8

3,452.4

3,153.3

    Tools, furniture and fixtures

-

460.1

442.6

392.9

365.9

    Land

208.8

-

-

-

-

    Land

-

231.3

230.2

204.6

199.3

    Construction In Progress

213.0

-

-

-

-

    Const. Progress

-

192.3

149.5

89.1

204.5

    Depreciation

-4,775.5

-5,099.1

-4,807.1

-4,008.9

-3,510.4

    Goodwill

32.4

15.1

19.4

0.6

0.7

    Other Total intangible assets

0.0

-

-

-

-

    Other Intangible

116.0

93.6

78.3

77.2

86.2

    Other LT investment

67.1

64.2

-

-

-

    Investment Secs.

-

-

67.0

72.3

76.7

    Invt Secs Noncons, Asc, Affd Cos

18.3

45.0

-

-

-

    Inv't. in Affiliate

-

-

36.5

22.9

-

    Deferred tax assets

91.2

121.2

115.2

103.8

87.8

    Prepaid Pension

110.8

87.9

75.8

60.4

98.0

    Rounding adjustment Assets

0.0

-

-

-

-

    Other Total investments and other assets

0.0

-

-

-

-

    Allowance For Doubtful Accounts

-1.4

-

-

-

-

    Rounding adjustment Assets

-

0.0

-

-

-

    Other Other Long Term Assets

-

0.0

-

-

-

    Other Assets

38.8

47.0

38.6

40.4

46.8

    Doubtful Account

-

-2.5

-3.0

-2.7

-3.0

    Other PPE

0.0

-

-

-

-

Total Assets

7,880.6

7,912.9

7,890.4

6,688.6

5,652.0

 

 

 

 

 

 

    Notes and accounts payable-trade

936.4

955.6

975.8

851.1

545.5

    Short-term loans payable

118.4

36.1

31.3

42.3

287.4

    LT borrowings (current)

-

-

97.2

71.8

4.5

    Commercial Paper

-

-

-

0.0

253.1

    Accounts payable-other

331.9

374.7

289.4

224.1

306.0

    Accrued Expense

239.5

195.9

230.5

199.0

118.1

    Tax Payable

147.9

42.6

225.7

168.5

15.6

    Provision for directors'' bonuses

3.3

3.4

4.9

3.5

2.7

    Rounding adjustment Liability

0.0

0.0

-

-

-

    Other Liability

89.9

72.6

39.8

41.5

23.3

Total Current Liabilities

1,867.2

1,681.0

1,894.8

1,601.9

1,556.3

 

 

 

 

 

 

    Corporate Bond

531.4

606.9

603.3

535.1

0.0

    Long-term loans payable

10.5

72.8

72.4

153.2

211.8

    Lease obligations

-

0.2

0.1

0.2

-

Total Long Term Debt

541.9

680.0

675.8

688.5

211.8

 

 

 

 

 

 

    Allow.Accr.Retir

210.0

230.6

225.5

205.7

185.8

    Provision for directors'' retirement ben

4.0

4.8

4.7

5.5

5.1

    Deferred Tax

13.3

4.3

4.4

1.9

3.5

    Other Long Term Liabilities

0.0

-

-

-

-

    Rounding adjustment Liability

-

0.0

-

-

-

    Negative Goodwill

-

-

0.0

0.0

5.8

    Other Liability

19.0

20.9

21.5

24.9

27.4

    Minor. Interest

22.9

17.4

14.7

10.6

22.3

Total Liabilities

2,678.3

2,638.9

2,841.5

2,539.1

2,018.1

 

 

 

 

 

 

    Rounding adjustment Equity

0.0

-

-

-

-

    Other Equity

-

0.0

-

-

-

    Common Stock

284.7

325.1

323.2

286.6

271.2

    Total capital surpluses

597.0

681.7

677.7

601.0

568.7

    Total retained earnings

4,678.3

5,010.4

4,804.1

3,770.5

3,287.8

    Valuation difference on available-for-sa

20.2

14.3

15.1

18.8

10.5

    Deferred hedge

-17.4

-8.0

1.5

-3.0

-1.3

    Trans. Adjust.

-24.3

-352.6

-373.2

-233.0

-226.6

    New Stock Subscription Right

8.2

11.7

10.2

11.4

11.0

    Treasury Stock

-344.4

-408.5

-409.7

-302.7

-287.3

Total Equity

5,202.3

5,274.1

5,048.9

4,149.5

3,633.9

 

 

 

 

 

 

Total Liabilities & Shareholders' Equity

7,880.6

7,912.9

7,890.4

6,688.6

5,652.0

 

 

 

 

 

 

    S/O-Ordinary Shares

164.8

164.5

164.4

166.6

166.6

Total Common Shares Outstanding

164.8

164.5

164.4

166.6

166.6

T/S-Ordinary Shares

8.9

9.3

9.4

7.2

7.2

Number Of Employees

25,476

26,468

-

-

-

Full-Time Employees

-

-

25,402

24,851

23,163

Total Number of Shareholders

47,834

63,701

-

-

-

Number of Common Shareholders

-

-

57,543

64,487

62,442

LT Debts <1Yr.

63.8

-

97.2

71.8

4.5

Over One Year And Within Two Years

531.4

-

-

-

-

Lns Pble Maturing over a Yr within 2 Yrs

5.4

72.8

-

-

-

Oth Intt Br Dbt Matg ovr a Yr wthn 2 Yr

0.1

0.1

-

-

-

LT Debts <2 Yr.

-

-

0.0

88.8

53.2

Lns Pble Maturg over 2 Yrs within 3 Yrs

5.0

-

-

-

-

Bond Redemp Amts over 2 Yrs within 3 Yrs

-

606.9

-

-

-

Oth Intt Br Dbt Matg ovr 2 Yr wthn 3 Yr

0.1

0.0

-

-

-

LT Debts <3Yr.

-

-

72.4

0.2

97.6

Oth Intt Br Dbt Matg ovr 3 Yr wthn 4 Yr

0.0

0.0

-

-

-

LT Debts <4Yr.

-

-

603.3

64.2

0.2

Oth Intt Br Dbt Matg ovr 4 Yr wthn 5 Yr

0.0

0.0

-

-

-

LT Debts <5Yr.

-

-

0.0

535.1

60.7

Others

0.1

-

-

-

-

Other Interest Bearing Remaining

-

0.1

-

-

-

LT Debts Remaining

-

-

0.0

-

0.0

Total Long Term Debt, Supplemental

605.9

680.0

772.9

760.1

216.3

lease Liability due in 2 yr.

-

-

-

0.1

-

lease Liability due in 3 yr.

-

-

0.0

0.0

-

lease Liability due in 4 yr.

-

-

0.0

0.0

-

lease Liability due in remaining yr.

-

-

0.0

0.1

-

Total Capital Leases, Supplemental

-

-

0.1

0.2

-

Pension Obligation

1,380.4

1,495.8

1,384.1

1,187.3

1,097.4

Fair Value of Plan Assets

977.6

975.3

947.6

800.2

648.6

Funded Status

-402.8

-520.5

-436.5

-387.1

-448.8

Total Funded Status

-402.8

-520.5

-436.5

-387.1

-448.8

Discount Rate

1.40%

1.60%

1.90%

2.10%

2.00%

Expected Rate of Return

1.50%

1.50%

1.50%

1.50%

1.50%

Unrecognized Actuarial Gains and Losses

318.8

401.1

315.9

271.3

393.8

Unrecognized Prior Service Cost

-15.2

-23.3

-29.0

-29.5

-32.8

Prepaid Pension Benefits

110.8

87.9

75.8

60.4

98.0

Reserve for Accrued Retirement Benefits

-210.0

-230.6

-225.5

-205.7

-185.8

Net Assets Recognized on Balance Sheet

204.4

235.1

137.3

96.4

273.3

 

 

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

KPMG AZSA LLC

KPMG AZSA LLC

KPMG LLP

KPMG LLP

KPMG LLP

Auditor Opinion

Unqualified

Unqualified

Unqualified

Unqualified

Unqualified with Explanation

 

 

 

 

 

 

Net Income Bf. Tax

764.8

631.3

968.0

577.8

16.7

    Depreciation

439.5

466.1

466.1

482.1

503.1

    Loss (gain) on liquidation of subsidiari

-4.5

20.1

-

-

-

    L on sales of stocks of subsidiaries

26.0

28.0

0.0

-

-

    Liquidation of subsidiaries

-

-

0.0

-

-

    Impairment asset

7.6

41.0

2.0

2.8

49.9

    Inc/Dec in provsion for retire. benefits

-34.6

-7.3

-12.4

52.2

20.0

    Increase (decrease) in provision for dir

-0.2

0.0

-1.1

0.1

-0.7

    Interest & Dividend

-10.3

-5.5

-5.3

-4.2

-6.6

    Interest Expense

11.6

11.5

12.0

14.5

12.7

    Foreign exchange losses (gains)

-0.6

-1.3

-2.6

0.7

-0.2

    Equity in (earnings) losses of affiliate

7.7

4.7

0.2

0.9

1.7

    Loss (gain) on valuation of investment s

1.3

0.2

0.9

0.2

1.0

    L/G on sale and retire. of fixed assets

14.7

12.6

16.0

33.0

52.4

    Decrease (increase) in notes and account

-229.3

69.6

-19.0

-451.8

429.4

    Decrease (increase) in inventories

-113.1

-71.3

-73.2

31.1

83.1

    Decrease (increase) in accounts receivab

-7.4

-3.1

7.8

-6.5

20.0

    Increase (decrease) in notes and account

93.2

-18.8

72.2

283.6

-416.4

    Increase (decrease) in accrued expenses

66.1

-35.5

11.2

79.0

-70.6

    Increase In Cash And Cash Equivalents Re

12.1

-

-

-

-

    Rounding adjustment Cash flow

0.0

0.0

-

-

-

    Other, net

-104.3

24.6

-18.1

3.9

19.1

    Int.&Divid. Received

10.4

5.1

5.3

4.7

6.7

    Interest Paid

-11.7

-12.1

-12.5

-16.4

-13.6

    Income taxes (paid) refund

-105.3

-419.3

-284.6

15.3

-197.4

    Newly Consolidated

-

-

-

-

0.0

    Adjustment

-

-

-0.1

0.0

-

Cash from Operating Activities

833.5

740.8

1,132.6

1,102.8

510.4

 

 

 

 

 

 

    Proceeds from sales of stocks of subsidi

0.0

1.9

-

-

-

    Proceeds from sales of investments in su

42.6

5.4

-

-

-

    Decrease (increase) in time deposits

0.7

-17.6

-17.3

-656.5

6.6

    Capital Expenditure

-637.2

-446.4

-327.1

-365.3

-611.0

    Sale Fixed Assets

5.1

1.6

11.5

7.8

5.1

    Purch. Inv. Secs.

-0.6

-0.7

-0.2

-3.9

-0.9

    Sale Inv. Secs.

0.2

0.0

0.3

0.7

0.1

    Purch. Affili. Stock

-3.6

-8.4

-9.4

-19.1

-8.4

    Sale Affili. Stock

-

-

0.0

-

0.0

    Proceeds from liquidation of subsidiarie

-

0.0

0.2

0.0

-

    Purchase of subsidiaries secu.cons.

-92.8

0.0

-31.9

0.0

-

    Sale Consoli.Sub.Sk

-

-

0.0

-

-

    Loan Made

-3.0

-11.8

-3.7

-6.1

-0.2

    Rounding adjustment Cash flow

0.0

-

-

-

-

    Loan Collected

10.4

6.5

3.8

3.2

4.1

Cash from Investing Activities

-678.2

-469.4

-373.9

-1,039.2

-604.6

 

 

 

 

 

 

    Net increase (decrease) in short-term lo

-1.7

3.7

-12.8

-256.5

209.4

    Commercial Paper

-

-

0.0

-269.0

248.8

    Proceeds from long-term loans payable

10.1

-

0.0

1.8

147.8

    Repayment of long-term loans payable

0.0

-100.7

-74.2

-4.5

-7.8

    Decrease (increase) in treasury stock

11.6

2.0

-69.8

0.2

0.0

    Issue Bond

-

-

0.0

538.0

0.0

    Cash dividends paid

-198.3

-208.2

-115.5

-107.5

-132.6

    Divid.Paid to Minor.

-0.4

-0.4

-0.3

-0.7

-0.8

Cash from Financing Activities

-178.6

-303.7

-272.6

-98.2

464.8

 

 

 

 

 

 

Foreign Exchange Effects

102.4

-0.3

-46.7

1.3

-27.4

Net Change in Cash

79.1

-32.6

439.5

-33.3

343.2

 

 

 

 

 

 

Net Cash - Beginning Balance

1,756.2

1,878.0

1,291.0

1,223.6

788.6

Net Cash - Ending Balance

1,835.3

1,845.4

1,730.5

1,190.3

1,131.7

    Cash Interest Paid

11.7

12.1

12.5

16.4

13.6

    Cash Taxes Paid

105.3

419.3

284.6

-15.3

197.4

 

 

Financial Health

 

Financials in: USD (mil) 

Except for share items (millions) and per share items (actual units)         

Key Indicators USD (mil)

 

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 (?)

1,819.5

13.27%

8,142.8

11.19%

3.93%

-1.94%

Research & Development1 (?)

-

-

332.3

10.28%

9.72%

4.53%

Operating Income1 (?)

199.0

20.78%

799.4

30.59%

9.02%

-1.72%

Income Available to Common Excl Extraord Items1 (?)

122.2

10.07%

528.4

41.12%

5.28%

-1.23%

Basic EPS Excl Extraord Items1 (?)

0.74

9.81%

3.21

41.01%

5.70%

-1.00%

Capital Expenditures2 (?)

-

-

637.2

49.99%

15.90%

-4.58%

Cash from Operating Activities2 (?)

-

-

833.5

18.23%

-12.29%

-7.41%

Free Cash Flow (?)

-

-

173.1

-29.92%

-38.06%

-14.07%

Total Assets3 (?)

7,675.2

15.68%

7,880.6

13.74%

5.86%

4.47%

Total Liabilities3 (?)

2,770.6

22.81%

2,678.3

15.91%

2.03%

3.47%

Total Long Term Debt3 (?)

10.2

-98.21%

541.9

-8.98%

-7.46%

49.04%

Employees3 (?)

-

-

25476

-3.75%

0.83%

-0.29%

Total Common Shares Outstanding3 (?)

164.9

0.26%

164.8

0.21%

-0.36%

-0.21%

1-ExchangeRate: JPY to USD Average for Period

98.564314

 

82.970472

 

 

 

2-ExchangeRate: JPY to USD Average for Period

 

 

82.970472

 

 

 

3-ExchangeRate: JPY to USD Period End Date

98.239969

 

94.088557

 

 

 

Key Ratios

 

31-Mar-2013

31-Mar-2012

31-Mar-2011

31-Mar-2010

31-Mar-2009

Profitability

Gross Margin (?)

28.33%

27.60%

30.46%

26.77%

21.14%

Operating Margin (?)

9.82%

8.36%

12.99%

8.50%

0.11%

Pretax Margin (?)

9.39%

8.20%

12.99%

8.92%

0.29%

Net Profit Margin (?)

6.49%

5.11%

8.73%

6.24%

0.05%

Financial Strength

Current Ratio (?)

2.75

3.05

2.70

2.55

1.88

Long Term Debt/Equity (?)

0.10

0.13

0.13

0.17

0.06

Total Debt/Equity (?)

0.13

0.14

0.16

0.19

0.21

Management Effectiveness

Return on Assets (?)

6.36%

4.80%

8.77%

6.38%

0.22%

Return on Equity (?)

9.49%

7.28%

13.83%

10.06%

0.07%

Efficiency

Receivables Turnover (?)

4.69

4.70

4.78

5.29

4.94

Inventory Turnover (?)

6.46

6.77

7.38

7.41

6.83

Asset Turnover (?)

0.97

0.93

1.00

1.02

1.00

Market Valuation USD (mil)

P/E (TTM) (?)

19.25

.

Enterprise Value2 (?)

7,833.5

Price/Sales (TTM) (?)

1.31

.

Enterprise Value/Revenue (TTM) (?)

1.10

Price/Book (MRQ) (?)

1.79

.

Enterprise Value/EBITDA (TTM) (?)

6.98

Market Cap as of 30-Aug-20131 (?)

9,257.7

.

 

 

1-ExchangeRate: JPY to USD on 30-Aug-2013

98.350366

 

 

 

2-ExchangeRate: JPY to USD on 30-Jun-2013

98.239969

 

 

 

 

 

Annual Ratios

 

Financials in: USD (mil) 

Except for share items (millions) and per share items (actual units)         

 

 

 

31-Mar-2013

31-Mar-2012

31-Mar-2011

31-Mar-2010

31-Mar-2009

Financial Strength

Current Ratio (?)

2.75

3.05

2.70

2.55

1.88

Quick/Acid Test Ratio (?)

2.16

2.43

2.18

2.05

1.35

Working Capital1 (?)

3,272.1

3,453.3

3,213.0

2,481.5

1,372.0

Long Term Debt/Equity (?)

0.10

0.13

0.13

0.17

0.06

Total Debt/Equity (?)

0.13

0.14

0.16

0.19

0.21

Long Term Debt/Total Capital (?)

0.09

0.11

0.12

0.14

0.05

Total Debt/Total Capital (?)

0.11

0.12

0.14

0.16

0.17

Payout Ratio (?)

37.54%

52.94%

26.68%

17.74%

4,990.95%

Effective Tax Rate (?)

30.12%

37.12%

32.42%

29.75%

24.58%

Total Capital1 (?)

5,862.6

5,990.2

5,853.2

4,952.2

4,390.8

 

 

 

 

 

 

Efficiency

Asset Turnover (?)

0.97

0.93

1.00

1.02

1.00

Inventory Turnover (?)

6.46

6.77

7.38

7.41

6.83

Days In Inventory (?)

56.50

53.90

49.45

49.24

53.41

Receivables Turnover (?)

4.69

4.70

4.78

5.29

4.94

Days Receivables Outstanding (?)

77.87

77.58

76.28

69.06

73.94

Revenue/Employee2 (?)

281,858

278,660

303,306

259,190

252,609

Operating Income/Employee2 (?)

27,672

23,293

39,398

22,043

281

EBITDA/Employee2 (?)

42,886

40,172

58,369

41,341

22,379

 

 

 

 

 

 

Profitability

Gross Margin (?)

28.33%

27.60%

30.46%

26.77%

21.14%

Operating Margin (?)

9.82%

8.36%

12.99%

8.50%

0.11%

EBITDA Margin (?)

15.22%

14.42%

19.24%

15.95%

8.86%

EBIT Margin (?)

9.82%

8.36%

12.99%

8.50%

0.11%

Pretax Margin (?)

9.39%

8.20%

12.99%

8.92%

0.29%

Net Profit Margin (?)

6.49%

5.11%

8.73%

6.24%

0.05%

R&D Expense/Revenue (?)

4.08%

4.11%

3.44%

3.47%

3.76%

COGS/Revenue (?)

71.67%

72.40%

69.54%

73.23%

78.86%

SG&A Expense/Revenue (?)

12.95%

13.12%

12.60%

12.66%

13.65%

 

 

 

 

 

 

Management Effectiveness

Return on Assets (?)

6.36%

4.80%

8.77%

6.38%

0.22%

Return on Equity (?)

9.49%

7.28%

13.83%

10.06%

0.07%

 

 

 

 

 

 

Valuation

Free Cash Flow/Share2 (?)

1.05

1.72

5.07

4.40

-0.61

Operating Cash Flow/Share 2 (?)

4.46

4.32

7.12

6.58

3.12

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) (?)

20.27

Market Cap/Equity (MRQ) (?)

1.89

Market Cap/Revenue (TTM) (?)

1.31

Market Cap/EBIT (TTM) (?)

12.62

Market Cap/EBITDA (TTM) (?)

8.26

Enterprise Value/Earnings (TTM) (?)

17.14

Enterprise Value/Equity (MRQ) (?)

1.60

Enterprise Value/Revenue (TTM) (?)

1.10

Enterprise Value/EBIT (TTM) (?)

10.66

Enterprise Value/EBITDA (TTM) (?)

6.98


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.62.52

UK Pound

1

Rs.100.26

Euro

1

Rs.84.67

 

 

INFORMATION DETAILS

 

Report Prepared by :

SDA

 

 

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%)