REPORT

Transcription

REPORT

2008REPORT
ANNUAL
F o r t h e Ye a r e n d e d M a r c h 3 1 , 2 0 0 7
HOGY MEDICAL
● P R O F I L E
Contributing to Improved Medical Treatment Safety
and Hospital Operations
Hogy Medical was established in 1961 by Masao Hoki, our founder and current chairman.
Since that time, we have continued to lead the industry with the provision of innovative
products. Our Mekkin Bag, developed and released in 1964 as the first step in the prevention of
in-hospital infections, has grown to become the representative product for sterilization bags.
This was followed by the development of DuPont Sontara, a non-woven fabric medical
product that has been a great success, generating a revolution in the prevention of hospital
infections.
Hogy Medical directly conducts proposal-based marketing to medical institutions and
responds meticulously to the voices of people on the medical front. Demand for our medical kit
products is rapidly growing, reflecting the needs of customers. In these kits, the quantity of
medical instruments is set in accordance with the requirements of specific medical functions,
such as surgery and medical check-ups. Since their release, the kits have captured the attention
of medical institutions from the perspective of reducing their burden of work, preventing
human error and hospital infections, and other aspects of risk management.
Over the medium and long terms, the Hogy Medical Group will use its Tsukuba Plant,
featuring unparalleled safety standards, to spearhead its Operamaster strategy, aimed at
fostering the safety of medical treatment and improved operations of medical institutions.
Sontara ® is registered trademarks of
E.I.du Pont de Nemours & Company (Inc.).
Contents
1
Financial Highlights (Consolidated)
2
To Our Shareholders and Investors
10
Sales of Mainstay Products and Performance by Segment
16
Five-Year Financial Data Overview (Consolidated)
17
Financial Review (Consolidated)
18
Key Financial Data (Consolidated)
20
Consolidated Financial Statements
34
History
35
Shareholder Information
36
Corporate Information
37
Network
Financial Highlights (Consolidated)
Years ended March 31,
2008
2007
(Millions of yen
unless indicated otherwise)
Income statement data
Net sales
Operating income
Income before income taxes and
minority interests
Net income
Balance sheet data
Common stock
Additional paid-in capital
Total assets
Total shareholders’ equity, net
Property, plant and equipment, net
Cash flow data
Net cash provided by operating
activities
Net cash used in investing activities
Net cash used in financing activities
Cash and cash equivalents at end of
year
29,010
7,232
27,294
6,059
289,526
72,177
6,825
4,054
6,102
3,622
68,114
40,467
7,123
8,336
61,514
49,631
29,547
7,123
8,336
59,231
48,031
30,461
71,090
83,194
613,917
495,321
294,884
8,407
(3,201)
(2,205)
5,356
(4,643)
1,035
83,911
(31,954)
(22,010)
10,838
7,825
108,172
(yen)
Per share data
Net income (Basic)
Net income (Diluted)
Net assets
2008
(Thousands of
U.S. dollars)
269.73
–
3,300.59
(U.S. dollars)
234.69
–
3,194.04
2.691
–
32.940
Notes: (1) The U.S. dollar amounts in this annual report are translated from Japanese yen, for convenience only,
at the rate of ¥100.20 = U.S.$1.00, the rate of exchange on March 31, 2008.
(2) This annual report states all figures on a consolidated basis, except where otherwise noted.
Forward-looking Statements
The plans, strategies and performance forecasts in this annual report are forward-looking statements and include
risks and uncertainties. Please recognize that various factors may lead to actual results differing from the
forecasted figures.
ANNUAL REPORT 2008
1
● To Our Shareholders and Investors
Jun-ichi Hoki, President & CEO
Revenue Up for 47th Consecutive Year
In fiscal 2007, ended March 31, 2008, consolidated
net sales amounted to ¥29,010 million, up 6.3%
from fiscal 2006 and representing the 47th consecutive year-on-year increase in revenue. Operating
income grew 19.4%, to ¥7,232 million, and ordinary income climbed 18.7%, to ¥7,285 million. Net
income increased 12.0%, to ¥4,054 million.
During the year, we continued working to
expand sales of products that foster the safety of
patients and medical staff and help enhance the
operating efficiency of medical institutions.
Accordingly, our surgical-use kit products performed well, generating a 12.7% year-on-year
sales. Opera Master, a solution-based service for
medical institutions incorporating products, logistics, and information management, performed
well, achieving solid growth. The number of
Opera Master contracts reached 96 by March 31,
2008 (up from 66 a year earlier). In surgical-use
non-woven fabric products, we introduced new
gowns and drapes in the previous fiscal year
under our “Surrem strategy,” based on the con-
2 ANNUAL REPORT 2008
cept of low price, high function, and high quality. These products continued to be well received
by medical institutions in the period under
review.
On the earnings side, we continued striving
to enhance production efficiency and otherwise
reduce costs. We also sought to ensure efficient
expense allocations in the selling, general, and
administrative expenses category, achieving our
targets in this area. In the non-operating category, we generated a foreign exchange gain on
assets denominated in foreign currencies and
received dividend income. We also posted an
extraordinary loss on the valuation of investment
securities.
In the third quarter of the year under review,
P.T. Nitto Matex Indonesia, which became a subsubsidiary on July 1, 2007, was included in the
scope of consolidation. That company, which
changed its name to P.T. Hogy on February 25,
2008, contributed ¥264 million to consolidated
net sales in the year under review.
External Environment and the Group's Strategies
Specific Themes: Our Priorities
On October 11, 2007, the Group announced its medium-term business plan, specific
themes of which are to create safe products that benefit society, coexist harmoniously
with customers, raise employee satisfaction levels, achieve steady growth, and improve
earnings. Specific goals cited in the plan are listed below. We will take assertive actions
to achieve these goals and thus increase our corporate value.
1. Step up promotion of Opera Master strategy
2. Further reinforce Surrem strategy
3. Develop new products
4. Ensure stable supply of safe products
5. Enhance production efficiency and otherwise target ongoing cost reductions
6. Diversify sourcing of materials and lower sourcing costs
7. Reinforce internal control system and compliance
8. Nurture human resources and educate employees
Distinguish Ourselves through Aggressive Pursuit of
Opera Master and Surrem strategies
Seeking to rebuild the nation's health insurance
system amid the rapidly aging, low-birthrate society, the Japanese government in recent years has
undertaken successive measures aimed at
restraining medical expenses. These reforms have
had a negative impact on the income medical
institutions, causing conditions in the medical
equipment industry to remain difficult.
Meanwhile, the revised Pharmaceutical Affairs
Law was enacted in April 2005, highlighting the
growing importance of safety and legal compli-
ance among companies in the industry.
Facing these challenges, the Hogy Medical
Group will assertively promote its Opera Master
strategy, designed to help streamline and improve
the efficiency of hospital operations. We will also
reinforce our “Surrem strategy” based on the concept of low price, high function, and high qualityto mainly non-woven fabric products. Through
these two strategies, we will distinguish ourselves
from the competition.
ANNUAL REPORT 2008
3
Establish Benefit Verification System for Opera Master
Conditions in the medical equipment industry
are expected to remain difficult for some time.
A revision to the medical treatment remuneration
system in April 2008 had a 0.38% positive effect
on core businesses (directly connected to hospital
revenue), but a 0.82% negative effect overall.
This has placed more and more pressure on companies associated with the medical equipment
industry to streamline operations and enhance
efficiency. In response, Hogy Medical will establish a system for verifying the effectiveness of
Opera Master, in order to reinforce its proposals
to hospitals.
Opera Master is based on full-kit offerings, in
which each kit is customized for hospitals according to specific doctors and types of surgery. It is
an integrated, solution-based system incorporating products, logistics, and information management, and is designed to help hospitals improve
operating efficiency, reduce inventories, and
control costs. The number of Opera Master contracts has grown steadily, reaching 96 by March
31, 2008, up from 66 a year earlier.
Already, some hospitals use academic societies
to announce the specific benefits of introducing
Opera Master. Personnel from hospitals using
Opera Master also describe their success stories at
seminars hosted by Hogy Medical. These forums
provide powerful backup for our sales activities.
Recently, more and more hospitals are purchasing our kit products for the first time, with a
view to introducing Opera Master. By purchasing
kit products prior to signing the contract, we can
quickly book revenues and gain a proper understanding of the benefits of kit products. We are
then in a good position to sign the Opera Master
contract with the customer.
By employing various techniques to verify the
effectiveness of Opera Master, we hope to add
another 45 contracts over the current fiscal year,
bringing the total to 135 by March 31, 2009. Since the
end of the period under review, six Opera Master
contracts have been canceled due to consolidation of
hospitals and changes in their management policies.
However, these are one-time factors that will have
minimal impact on our business in the future.
Fiscal 2007 Sales Growth by Major Products
(Unit: million yen, rounded down)
1,400
KIT 1,319
1,200
Fiscal 2007 Sales Growth
1,716 million yen
Regular Kit
276
1,000
800
Operamaster
600
External sales
of P.T. Hogy
1,042
400
200
0
(formerly P.T.
Nitto Matex)
Non-woven
fabrics
253
-68
-200
Other
products
Mekkin bag
-6
Other non-woven
fabrics
-45
264
Sales of Operamaster
50
46.3
8.2
40
31.6
14.0
30
7.7
18
20
9.4
9.6
14.5
14.2
2007
2008
Contract signed years
2008
2007
2006
2005
4.7
10
13.3
7.2
0
2005
2006
Years ended in March
Contracts for Opera Master
135
140
Number of contracts
120
96
100
80
66
60
40
20
0
2005
2006
2008
2007
2009
Launch New Tigalyer Line of Drapes
With respect to non-woven fabric products and
simple kit products, Hogy Medical will step up its
Surrem strategy, based on the concept of low
price, high function, and high quality, in order to
accurately address the needs of medical institutions.
In the area of non-woven fabric products, in
March 2007 we launched two new products — K
Gown and BR Drape — both of which have been
warmly received by numerous hospitals. The
gowns have been particularly popular, generating
annual sales growth in excess of 30% on a volume
basis. As a result, sales of non-woven fabric products grew ¥253 million, or 2.4%, in fiscal 2007. In
the year ending March 2009, we will unveil a new
line of drapes called Tigalyer.
Regarding simple kit products, in the current
fiscal year we have been applying the basic concepts of the Surrem strategy to develop kit products for use in hospital ophthalmology and
radiology departments. This initiative is already
showing steady results.
ANNUAL REPORT 2008
5
Surrem Strategy
Further expanding
sales of the K Gown
and BR Drape
Upgrading basic
medical kits
Launching sales
of Tigalyer drapes
March 2009
Further expanding our market share
by launching new products
Positioning of Drape (Image)
Price (yen)
Comfor
Sheild
Sontara
Suprel
Quality
Tigalyer
BR
Indonesian Sub-Subsidiary Included in Scope of
Consolidation
To keep costs down, we consign the production of
some mainstay medical-use disposables and nonwoven fabric products to P.T. Hogy Indonesia, a
manufacturing subsidiary in Indonesia. That company, in turn, procures some materials from P.T.
Nitto Matex Indonesia, a local company. In July
2007, P.T. Hogy Indonesia acquired P.T. Nitto
Matex Indonesia (name subsequently changed to
P.T. Hogy), making it a sub-subsidiary of Hogy
Domestic
Domestic
user
Raw material /
Semi-finished product
Hogy Medical
Production/Sale
Product /
Medical. Here, our strategy was to reinforce the
Group's medium-to-long-term business foundation and help maintain steady production and
high quality of our medical-use non-woven products, while also enhancing productivity and
reducing costs. P.T. Hogy, which was included in
consolidation in the third quarter of fiscal 2007,
contributed ¥264 million to consolidated net sales
in the year under review.
Overseas
Overseas
P. T. Hogy Indonesia
P. T. Hogy
(Subsidiary)
Production/Sale
(Sub-subsidiary)
Production
Product /
Raise Dividends to ¥92.00 in Fiscal 2008
In fiscal 2008, ending March 2009, the Hogy
Medical Group forecasts consolidated net sales of
¥31,150 million, up 7.4% from fiscal 2007. By
product category, we project a 16.6% increase in
sales of kit products, to ¥13,620 million, of which
Opera master will account for ¥7,240 million, up
35.7%. Boosted by our Surrem strategy, we expect
a 2.1% rise in sales of non-woven fabric products,
to ¥11,180 million.
In the year ahead, we expect to reap the benefits of increased manufacturing capacity and productivity, while continuing to improve cost
efficiency through reductions in depreciation
expenses. For fiscal 2008, we forecast 12.0%
growth in operating income, to ¥8,100 million; a
11.7% rise in ordinary income, to ¥8,140 million;
and a 14.9% increase in net income, to ¥4,660 million.
Our basic policy with respect to profit appropriation emphasizes payment of cash dividends,
and since our foundation we have adhered to our
corporate motto of “ensuring harmonious coexistence with customers, shareholders, employees,
and corporations.” With regard to this, we continue to actively and consistently reward our shareholders for their patronage. We have set a
consolidated dividend payout ratio of 30%. To
ensure that the fruits of our performance are swiftly returned to shareholders, we started paying
quarterly dividends in fiscal 2006.
In the year under review, we paid quarterly
dividends of ¥20.00 per share each, for a total of
¥80.00. In the fiscal year ending March 2009, we
plan to raise quarterly dividends to ¥23.00, for
total annual dividends of ¥92.00 per share.
In addition, we have introduced a stock
option plan. By granting stock options to directors
and employees, we are seeking to raise their
desire and motivation, and thus improving the
Group's overall business performance.
ANNUAL REPORT 2008
7
Corporate Governance and Internal Control System
Basic Approach
Hogy Medical advocates “focus on shareholders” as a fundamental policy. By always
considering the interests of shareholders, we are building a framework enabling corporate governance to function effectively.
General Meeting of Shareholders
Supervision, election or
dismissal of directors
Disclosure, Explanation
Board of Corporate Auditors,
Three members
Board of Directors,
Five members
(including two outside members)
(including one outside member)
Inspection
Inspection
Independent Auditors
Audit inspection
Directors
Internal Control
Committee
Internal Auditing
Department
Inspection
Production
Department
Administration
Department
Internal control
Corporate
Planning
Department
Sales
Departments
Implementation status
To enable swift management decision-making, the
Company maintains a small Board of Directors,
with only five members (including one outside
member). In June 1999, we introduced an executive officer system to clarify the distinction
between the functions of directors (management
decision-making and supervision of business execution) and executive officers (business execution
itself). Therefore, we now have a system that permits swift responses to changing business conditions.
We have adopted a corporate auditor system,
with three corporate auditors (including two outside members) who audit the performance of
directors. Corporate auditors attend important
meetings, receive reports from directors and others, examine important documents, and monitor
the activities of subsidiaries. All corporate auditors belong to the Board of Corporate Auditors,
which determines auditing policies, receives
reports on the status of audits conducted by corporate auditors, and on audits conducted by the
independent accounting auditor, and exchanges
information as necessary. In these ways, interaction between relevant parties is maximized.
The Company holds management meetings,
attended by the five directors, eight executive officers, and appointed divisional general managers,
on the day after each Board of Directors meeting,
in principle, to decide specific measures aimed at
addressing various important issues.
Internal control system:
Basic stance and implementation status
In addition to clearly identifying the lines of
authority and responsibility, we have incorporated a mutual “checking” function into our work
flow as part of building a system to ensure optimal division of duties. However, we recognize
the need to constantly reassess, improve, and
strengthen this internal governance system.
To provide a framework for ensuring that
execution of business by directors conforms
to laws and the Company’s Articles of
Incorporation, the Board of Directors set up the
Internal Control Committee. The Committee is
responsible for building internal control, compliance, and risk management systems, as well as
monitoring and improving those systems. Headed
by the president, the Committee meets every
month, and details of the meetings are reported to
the Board of Directors.
ANNUAL REPORT 2008
9
Sales of Mainstay Products and Performance by Segment
Sales of Mainstay Products
30,000
25,000
20,000
15,000
Others
10,000
Kit products
Non-woven fabrics
products
5,000
0
Mekkin bag
2004
2005
2006
2007
2008
Performance by segment
Sterilization
Surgical-use
Others
(¥million)
25,000
(¥million)
25,000
(¥million)
25,000
20,000
20,000
20,000
20,000
15,000
15,000
15,000
15,000
10,000
10,000
10,000
10,000
5,000
5,000
5,000
5,000
0
0
Medical treatment
(¥million)
25,000
0
0
2004 2005 2006 2007 2008
2004 2005 2006 2007 2008
2004 2005 2006 2007 2008
2004 2005 2006 2007 2008
Kit products meet specific needs
Hogy’s stable supply of surgical-use products
meets the needs of the most modern medical institutions and contributes to the rationalization of
hospital management.
Our medical kit products, a kit made up of
specific items required to meet the needs of a
diverse range of surgical and medical procedures,
have the potential to make a huge contribution to
the medical workplace. However, this potential
cannot be fulfilled unless they accurately reflect
the singular features and staffing situations of
each medical institution and an understanding of
specific medical requirements. Developed from
the perspective of staff working at the medical
frontline, all of Hogy’s kit products meet the specific needs of each customer.
Orthopedic Surgery Kit
Cesarean Kit
Angio Kit
Medical Kit
ANNUAL REPORT 2008
11
Opera Master concept
Opera Master, a product, logistics and information management system, is
designed to boost earnings and efficiency at medical institutions.
The Opera Master is a product, logistics, and
information management system, centering on
full-kit products that are adjusted according to the
needs of doctors and the types of surgery being
performed at individual hospitals. It is a solutionbased service that heightens the efficiency of medical institutions, reduces inventories, and provides
cost control information.
The system has substantial benefits for medical institutions, which are currently faced with
the pressing task of improving their management
systems. Pre-surgery preparation time is shortened considerably, as the kit containing the exact
items required for a specific surgical procedure
can be opened immediately prior to the commencement of surgery. Furthermore, the system
makes it easy to gather cost control information
related to inventory and supply processes. Hogy
has placed promotion of the Opera Master strategy
as a top management priority.
Opera Master Strategy: Basic Concept
Benefits of Full Kit Products
Full Kit
Information Management-related Benefits
■ Low indirect administrative costs
■ More effective materials control
■ Sanitized using electron beam sterilization
■ Materials used only once
■ Rigorous safety measures taken
■ Facilitates scheduling of operations
■ Allows human resources
to be allocated
more appropriately
■ Online ordering system
■ Includes cost-control system
Hospital
Information
management
system
Logistics
system
Logistics-related Benefits
■ One-kit orders (minimum) accepted
■ Four-day minimum manufacturing
lead-time
■ Alleviates inventory burden
■ Backed by reliable logistics
system
Surrem Strategy
Hogy Medical will step up its Surrem strategy, based on
the concept of low price, high function, and high quality.
With respect to non-woven fabric products and
simple kit products, Hogy Medical will step up its
Surrem strategy, based on the concept of low
price, high function, and high quality, in order to
accurately address the needs of medical institutions.
In the area of non-woven fabric products, in
2007 we launched two new products — K Gown
and BR Drape — both of which have been warmly
received by numerous hospitals.
In fiscal 2008, ending March 2009, we will
unveil a new line of drapes called Tigalyer.
Regarding simple kit products, in the current
fiscal year we have been applying the basic concepts of the Surrem strategy to develop kit products for use in hospital ophthalmology and
radiology departments.
Surrem Strategy: Basic Concept
Accurate addressing of the needs
of medical institutions
High quality
Low price
High function
ANNUAL REPORT 2008
13
Non-woven Fabric Products
Our non-woven fabric product line consists mainly of surgical gowns, drapes, and caps. Featuring
strong barriers and excellent durability, these
products help prevent the spread of infections in
hospitals.
Disposable gowns & Disposable drapes
Disposable gowns & Disposable drapes
Disposable gowns
Mekkin Bag and Other Products
The material of the Mekkin Bag, sterilization
pouch product, must be open to the sterilizing
steam or gas, while at the same time be capable of
maintaining the contents of the pouch sterile for
long periods of time.
Hogy developed a paper with a special
micro-structure to achieve these diametrically
opposed objectives and launched this in 1964 as
the “Mekkin Bag” and a major contribution to the
Mekkin bags
Disposable Kit articles
prevention of hospital infections. The high sterilization characteristics and the convenience of use
caused demand to rise rapidly. The Mekkin Bag is
presently the recognized name among sterilization
pouch products. The history of the Mekkin Bag
product is the history of Hogy.
Mekkin Cards
N95-PR Masks
Steel surgical tool
ANNUAL REPORT 2008
15
Five-Year Financial Data Overview (Consolidated)
Years ended March 31,
2008
2007
2006
2004
2005
(Millions of yen
Income statement data
Net sales
Operating income
Income before income taxes and
minority interests
Net income
Balance sheet data
Common stock
Additional paid-in capital
Total assets
Total shareholders’ equity, net
Cash flow data
Net cash provided by operating
activities
Net cash (used in) provided by
financing activities
Cash and cash equivalents at end of
year
(Thousands of
U.S. dollars)
29,010
7,232
27,294
6,059
26,435
6,201
24,961
5,730
24,844
5,843
289,526
72,177
6,825
4,054
6,102
3,622
6,446
3,909
5,813
3,494
5,478
3,225
68,114
40,467
7,123
8,336
61,514
49,631
29,547
7,123
8,336
59,231
48,031
30,461
7,123
8,336
55,939
47,395
32,117
7,123
8,336
60,842
43,936
28,952
7,123
8,336
58,509
41,048
27,671
71,090
83,194
613,917
495,321
294,884
8,407
(3,201)
5,356
(4,643)
5,738
(4,998)
5,776
(4,313)
5,281
(2,858)
83,911
(31,954)
(2,205)
1,035
(10,671)
(383)
(1,280)
(22,010)
10,838
7,825
6,055
15,745
14,571
108,172
(yen)
Per share data
Net income (Basic)
Net income (Diluted)
Net assets
269.73
–
3,300.59
234.69
–
3,194.04
246.82
227.41
3,037.59
(U.S. dollars)
220.21
201.95
2,818.62
1,570
2,728
259
80.66
8.31
19.02
16,341
1,485
(472)
1,152
2,915
270
81.07
7.59
23.48
16,341
1,424
(260)
5,266
2,317
325
84.70
8.56
25.44
16,341
1,470
(89)
2.691
–
32.940
202.04
185.37
2,632.80
(Millions of yen
Key financial data
Capital expenditures
Depreciation expenses
R&D expenses
Equity ratio (%)
Return on equity (%)
Price/earnings ratio (times)
Number of shares issued (thousands)
Number of employees at year-end*1
2008
(Thousands of
U.S. dollars)
3,745
2,236
263
72.21
8.22
23.66
16,341
1,551
2,606
2,501
323
70.16
8.03
23.46
16,341
1,510
156,687
27,226
2,585
—
—
—
—
—
Notes: (1) The U.S. dollar amounts in this annual report are translated from Japanese yen, for convenience only,
at the rate of ¥100.20 = U.S.$1.00, the rate of exchange on March 31, 2008.
(2) The per share data is calculated under new accounting standards since the fiscal year ended March 31,
2003.
*1: The number of employees is the size of the employed population. As of the fiscal year ended March
2006, the annual average number of employees who are on fixed-term employment contracts with
consolidated subsidiaries are indicated in parentheses.
(¥bn)
Net sales
30
(¥bn)
Operating income
(¥bn)
8.0
80
6.0
60
4.0
40
2.0
20
Total assets
20
10
2004 2005 2006 2007 2008
0
0
0
2004 2005 2006 2007 2008
2004 2005 2006 2007 2008
Financial Review (Consolidated)
Performance
Net Sales
Net sales grew 6.3% compared with the previous consolidated fiscal year, to ¥29,010 million. Sales of surgical-use kit products increased 12.7%, to ¥11,684 million.
In addition, Opera Master-a solution-based service for
medical institutions incorporating products, logistic,
and information management-performed well, with
sales of ¥4,631 million. The number of Opera Master
contracts reached 96 by March 31, 2008 (up from 66 a
year earlier). The increase in sales of surgical-use nonwovens was attributable to new gowns and drapes
introduced in the year earlier. These products, which
reflect our “Surrem strategy,” based on the concept of
low price, high function, and high quality, continued to
be well received by medical institutions in the period
under review. As a result, the Company posted the
47th consecutive annual increase in revenue since its
establishment.
Operating Income
Cost of sales increased 4.5%, to ¥14,093 million. There
was a decline in depreciation of the dedicated Opera
Master line at Tsukuba plant. We also continued striving to enhance production efficiency and otherwise
reduce costs. Selling, general, and administrative
expenses edged down 0.8%, to ¥7,684 million. In addition to reducing depreciation, we sought to ensure
efficiency of operating expenditures.
Consequently, operating income increased 19.4%,
to ¥7,232 million.
Ordinary Income
In the non-operating category, we generated a foreign
exchange gain on assets denominated in foreign currencies and received dividend income. By contrast, we
incurred costs in the form of interest on borrowings
from financial institutions.
Consequently, ordinary income declined 18.7%, to
¥7,285 million.
Net Income
Among extraordinary items, the Company posted a
loss on valuation of investment securities. As a result,
net income declined 12.0%, to ¥4,054 million.
Financial Position
As of March 31, 2008, total assets stood at ¥61,514 million, up ¥2,283 million from a year earlier. Current
assets rose ¥2,901 million, to ¥25,962 million. This was
due mainly to a ¥3,024 million increase in cash and
bank deposits related to operating activities.
Fixed assets declined ¥618 million, to ¥35,551 million. Within this figure, tangibles fell ¥913 million, to
¥29,547 million, as depreciation costs exceeded purchases of property, plant, and equipment. Intangibles
declined ¥69 million, to ¥463 million, and investments
and other assets rose ¥364 million, to ¥5,540 million.
At fiscal year-end, total liabilities amounted to
¥11,883 million, up ¥683 million. Current liabilities rose
¥1,507 million, to ¥7,642 million. Major factors included
a ¥712 million increase in notes and accounts payable
and a ¥475 million rise in accrued income tax. Longterm liabilities decreased ¥824 million, to ¥4,240 million. Major factors included a ¥1,000 million fall in
long-term debt due to repayment of principal.
Net assets at the end of the year totaled ¥49,631
million, up ¥1,599 million from a year earlier. Items
boosting net assets included net income (¥4,054 million), while items holding down net assets included
cash dividends paid (¥1,202 million). As a result, the
equity ratio edged down to 80.7%, from 81.1%.
Cash Flows
Cash flows during the consolidated fiscal year were as
follows:
• Cash flow from operating activities posted a revenue
of ¥8,407 million (a year-on-year increase of ¥3,052
million)
• Cash flow from investing activities posted an expenditure of ¥3,201 million (a year-on-year decrease in
expenditure of ¥1,440 million)
• Cash flow from financing activities posted an expenditure of ¥2,205 million (a year-on-year decrease in
expenditure of ¥3,241 million)
As a result, cash and cash equivalents at the end of
the year increased ¥3,013 million to ¥10,838 million.
(Cash Flows from Operating Activities)
Net cash provided by operating activities amounted to
¥8,407 million, up ¥3,052 million from the precious
year. Factors in this result included ¥6,825 million in
income before income taxes and minority interests and
¥2,728 million in depreciation, as well as a ¥497 million
decrease in notes and accounts receivable and a ¥610
million increase in payables. In contrast, there was a
¥2,479 million decrease in income taxes paid.
(Cash Flows from Investing Activities)
Net cash used in investing activities totaled ¥3,201 million, down ¥1,440 million from the previous year. Main
factors included purchases of investment securities and
tangible fixed assets.
(Cash Flow from Financing Activities)
Net cash used in financing activities was ¥2,205 million.
Major outlays included repayments of long-term debt
and cash dividends paid.
ANNUAL REPORT 2008
17
Key Financial Data (Consolidated)
Profitability
Stability
Equity ratio
Return on equity (ROE)
(%)
(%)
10.0
90
7.5
80
5.0
70
2.5
60
0
50
2004
2005
2006
2007
2004
2008
2005
2006
2007
2008
Current ratio
Return on assets (ROA)
(%)
(%)
10.0
500
400
7.5
300
5.0
200
2.5
100
0
0
2004
2005
2006
2007
2004
2008
2005
(%)
4.0
100
3.0
75
2.0
50
1.0
25
0
0
2006
2007
2008
2008
Fixed Ratio
(¥bn)
2005
2007
Net income
2004
2006
2004
2005
2006
2007
2008
Capital Expenditures and
Related Data
Capital expenditures
Per Share Data
Earnings per share (EPS)
(¥bn)
(yen)
6.0
300
4.0
200
2.0
100
0
0
2004
2005
2006
2007
2004
2008
2005
2006
2007
2008
Dividends per share
Depreciation expenses
(¥bn)
(yen)
3.0
100
80
2.0
60
40
1.0
20
0
0
2004
2005
2006
2007
2004
2008
2005
2006
2007
2008
Payout ratio
Cash flow
(¥bn)
(%)
10.0
40
8.0
30
6.0
20
4.0
10
2.0
0
0
2004
2005
2006
2007
2008
2004
2005
2006
2007
2008
ANNUAL REPORT 2008
19
Consolidated Financial Statements
Hogy Medical Co., Ltd. and Subsidiary
Consolidated Balance Sheets
March 31,
2008
2007
(Millions of yen)
Assets
Current assets:
Cash and bank deposits (Note 11)
Notes and accounts receivable
Inventories
Deferred income taxes (Note 5)
Other current assets
Allowance for doubtful accounts
Total current assets
2008
(Thousands of
U.S. dollars)
(Note 2)
¥11,138
8,487
5,674
316
350
(4)
25,962
¥ 8,114
8,924
5,327
152
549
(5)
23,061
$111,158
84,709
56,627
3,154
3,501
(41)
259,110
Less: Accumulated depreciation
24,278
19,193
7,671
1,025
2,419
54,588
(25,040)
29,547
24,144
18,970
7,473
4
2,328
52,919
(22,458)
30,461
242,295
191,550
76,564
10,238
24,144
544,793
(249,909)
294,884
Investments and other assets:
Investment securities (Note 12)
Prepaid pension cost
Guarantee deposits
Other assets
Total investments and other assets
3,038
498
422
543
1,501
6,004
2,793
—
—
547
2,369
5,709
30,319
4,977
4,217
5,420
14,987
59,922
¥61,514
¥59,231
$613,917
Property, plant and equipment, at cost:
Buildings and structures
Machinery, equipment and vehicles
Land
Construction in progress
Other
Total assets
March 31,
2008
2007
(Millions of yen)
Liabilities and net assets
Current liabilities:
Notes and accounts payable:
Trade
Construction
Current portion of long-term debt (Note 3)
Income taxes
Other current liabilities
Total current liabilities
Long-term liabilities:
Long-term debt (Note 3)
Accrued retirement benefits (Note 6)
Negative goodwill
Long-term accounts payable-other
Other long-term liabilities
Total long-term liabilities
Net assets:
Shareholders’ equity:
Common stock:
Authorized — 65,000,000 shares;
Issued
— 16,341,155 shares
Additional paid-in capital (Note 4)
Retained earnings (Note 4)
Treasury stock, at cost (Note 9):
1,308,337 shares in 2008 and 1,307,466 shares
in 2007
Total shareholders’ equity
Valuation, translation adjustments and other:
Net unrealized gain on securities
Gain on deferred hedges
Translation adjustments
Total valuation, translation adjustments and other
Minority interests
Total net assets
Total liabilities and net assets
2008
(Thousands of
U.S. dollars)
(Note 2)
¥ 3,711
102
1,000
1,674
1,154
7,642
¥ 2,999
66
1,000
1,198
872
6,135
$ 37,041
1,026
9,980
16,708
11,517
76,273
2,925
97
384
125
397
310
4,240
3,925
358
492
—
—
290
5,065
29,191
974
3,833
1,250
3,968
3,103
42,322
7,123
8,336
41,479
7,123
8,336
38,627
71,090
83,194
413,963
(7,104)
49,834
(7,100)
46,986
(70,901)
497,347
(425)
265
(57)
(217)
23
926
83
1,032
(4,247)
2,649
(569)
(2,167)
14
49,631
¥61,514
13
48,031
¥59,231
140
495,321
$613,917
See notes to consolidated financial statements.
ANNUAL REPORT 2008
21
Consolidated Statements of Income
Year ended March 31,
2008
2007
2006
(Millions of yen)
Net sales
Cost of sales
Gross profit
Selling, general and administrative
expenses (Note 7)
Operating income
Other income (expenses):
Interest income
Interest expense
Dividends income
Exchange gain, net
Amortization of negative goodwill
Gain on sales of investment
securities
Loss on disposal of property,
plant and equipment
Loss on devaluation of investment
securities
Other, net
Income before income taxes
and minority interests
Income taxes (Note 5):
Current
Deferred
Income before minority interests
Minority interests
Net income
2008
(Thousands of
U.S. dollars)
(Note 2)
¥29,010
14,093
14,916
¥27,294
13,490
13,804
¥26,435
12,860
13,575
$289,526
140,654
148,872
7,684
7,232
7,745
6,059
7,374
6,201
76,694
72,177
21
(64)
20
21
13
16
(23)
—
19
—
31
—
—
174
—
219
(641)
206
216
138
0
—
27
6
(9)
(15)
(21)
(94)
(462)
49
(407)
—
46
43
—
34
245
(4,613)
497
(4,063)
6,825
6,102
6,446
68,114
2,954
(185)
2,769
4,056
2,484
(5)
2,479
3,623
2,500
36
2,536
3,910
29,484
(1,848)
27,635
40,479
(1)
¥ 4,054
(1)
¥ 3,622
(1)
¥ 3,909
(11)
$ 40,467
Consolidated Statements of Changes in Net Assets
Shareholders’ equity
Common stock
Number of
Amount
shares
Balance at March 31, 2005
Cash dividends paid
Bonuses to directors
Net income
Purchases of treasury stock
Disposition of treasury stock
Other, net change
Net changes during the year
Cash dividends paid
Net income
Other, net change
Distributions made
Net income
Other, net change
16,341,155
¥7,123
Additional
paid-in
capital
¥8,336
Retained
earnings
(Millions of yen)
¥33,280
(747)
(67)
3,909
(1)
—
16,341,155
—
7,123
—
8,336
3,094
36,374
(1,301)
(67)
3,622
(1)
—
16,341,155
—
16,341,155
—
7,123
—
¥7,123
—
8,336
—
¥8,336
¥ 15
¥(4,590)
(7)
85
78
(4,512)
(2,701)
113
2,253
38,627
(1,202)
4,054
(2,588)
(7,100)
2,852
¥41,479
(4)
¥(7,104)
Valuation, translation adjustments and other
Total
Net
valuation,
unrealized
translation
Gain on
gain on
adjustments
deferred
Translation
securities
and other
hedges
adjustments
(Millions of yen)
Cash dividends paid
Net income
Other, net change
Cash dividends paid
Net income
Other, net change
Distributions made
Net income
Other, net change
Treasury
stock,
at cost
(4)
Minority
interests
¥ —
¥(228)
¥ (213)
¥11
(13)
(13)
2
—
288
288
60
275
275
62
1
1
12
21
21
23
926
926
926
23
23
83
970
970
1,032
1
1
13
(448)
(448)
¥(425)
(660)
(660)
¥ 265
(139)
(139)
¥ (57)
(1,248)
(1,248)
¥ (217)
1
1
¥14
Total
shareholders’
equity
¥44,149
(747)
(67)
3,909
(7)
84
—
3,172
47,321
(1,301)
(67)
3,622
(2,701)
112
—
(335)
46,986
(1,202)
4,054
(4)
—
2,847
¥49,834
Total
net assets
¥43,947
(747)
(67)
3,909
(7)
84
276
3,448
47,395
(1,301)
(67)
3,622
(2,701)
112
971
636
48,031
(1,202)
4,054
(4)
(1,247)
1,599
¥49,631
ANNUAL REPORT 2008
23
Shareholders’ equity
Common
stock
Distributions made
Net income
Other, net change
$71,090
—
$71,090
Additional
Treasury
Retained
paid-in
stock,
earnings
capital
at cost
(Thousands of U.S. dollars) (Note 2)
$83,194
—
$83,194
$385,498
(12,002)
40,467
$(70,857)
28,465
$413,963
(44)
$(70,901)
(44)
Total
shareholders’
equity
$468,926
(12,002)
40,467
(44)
—
28,421
$497,347
Valuation, translation adjustments and other
Total
Net
valuation,
unrealized
translation
Gain on
gain on
adjustments
Minority
deferred
Translation
securities
and other
interests
hedges
adjustments
(Thousands of U.S. dollars) (Note 2)
Distributions made
Net income
Other, net change
$ 227
$9,245
$ 823
$ 10,296
$130
(4,475)
(4,475)
$(4,247)
(6,595)
(6,595)
$2,649
(1,392)
(1,392)
$ (569)
(12,463)
(12,463)
$ (2,167)
10
10
$140
Total
net assets
$479,353
(12,002)
40,467
(44)
(12,453)
15,967
$495,321
Consolidated Statements of Cash Flows
Year ended March 31,
2008
2007
2006
(Millions of yen)
Operating activities
Income before income taxes and minority interests
Adjustments to reconcile income before income taxes and
minority interests to net cash provided by operating activities:
Depreciation
Amortization of negative goodwill
Retirement benefits, net of payments
(Decrease) increase in allowance for doubtful accounts
Interest and dividend income
Interest expense
Gain on sales of investment securities
Loss on valuation of investment securities
Exchange gain
Gain on sales of property, plant and equipment
Loss on disposal of property, plant and equipment
Changes in assets and liabilities:
Notes and accounts receivable
Inventories
Notes and accounts payable
Consumption taxes receivable
Accrued consumption taxes and other
Other current assets
Other current liabilities
Other investments
Other liabilities
Bonuses paid to directors
Other
Subtotal
Interest and dividends received
Interest paid
Income taxes paid
Net cash provided by operating activities
Investing activities
Increase in time deposits
Proceeds from time deposits
Payment for sales of investment securities
Proceeds from sales of investment securities
Payments for acquisition of newly consolidated
subsidiaries
Purchase of property, plant and equipment
Proceeds from sales of property, plant and equipment
Purchases of intangible assets
Payments for loans receivable
Collection of loans receivable
(Increase) decrease in other investments
Financing activities
Proceeds from long-term debt
Repayment of long-term debt
Redemption of convertible bonds
Proceeds from sales of treasury stock
Distributions made
Net cash (used in) provided by financing activities
Effect of exchange rate changes on cash and cash
equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year (Note 11)
2008
(Thousands of
U.S. dollars)
(Note 2)
¥ 6,825
¥6,102
¥ 6,446
$ 68,114
2,728
(13)
(529)
(9)
(42)
64
(0)
462
(36)
(1)
9
2,915
—
(66)
32
(16)
23
—
—
(19)
(0)
15
2,317
—
(108)
(2)
(31)
—
(27)
—
(178)
(1)
21
27,230
(138)
(5,286)
(96)
(425)
641
(6)
4,613
(360)
(15)
94
497
(303)
610
—
177
(65)
73
(13)
418
—
60
10,911
42
(66)
(2,479)
8,407
(1,176)
331
(446)
99
127
(8)
92
(22)
13
(67)
—
7,929
16
(16)
(2,573)
5,356
(372)
2
484
(99)
(300)
15
16
(38)
26
(67)
—
8,104
30
—
(2,396)
5,738
4,962
(3,024)
6,097
—
1,776
(656)
735
(137)
4,175
—
(600)
108,892
425
(659)
(24,747)
83,911
(10)
—
(1,780)
329
(24)
6
(2,552)
—
(38)
10
—
167
(106)
—
(17,765)
3,287
(123)
(1,439)
5
(171)
(5)
9
(14)
(3,201)
—
(1,829)
1
(341)
(119)
122
93
(4,643)
—
(4,956)
4
(123)
(166)
93
11
(4,998)
(1,236)
(14,369)
51
(1,707)
(54)
92
(146)
(31,954)
—
(1,000)
—
—
(4)
(1,201)
(2,205)
5,000
(75)
—
112
(2,701)
(1,301)
1,035
—
—
(9,997)
81
(7)
(748)
(10,671)
—
(9,980)
—
—
(44)
(11,986)
(22,010)
12
3,013
7,825
¥10,838
22
1,770
6,055
¥7,825
241
(9,690)
15,745
¥ 6,055
127
30,073
78,098
$108,172
ANNUAL REPORT 2008
25
Notes to Consolidated Financial Statements
March 31, 2008
1. Summary of Significant Accounting Policies
(a) Basis of preparation
Hogy Medical Co., Ltd. (the “Company”) maintains
its accounting records in accordance with accounting
principles generally accepted in Japan, and its one
overseas subsidiary maintains its accounting records
in conformity with that of its country of domicile. The
accompanying consolidated financial statements of
the Company and consolidated subsidiary are prepared on the basis of accounting principles generally
accepted in Japan, which are different in certain
respects as to the application and disclosure requirements of International Financial Reporting Standards,
and are compiled from the consolidated financial
statements prepared by the Company as required by
the Financial Instruments and Exchange Law of Japan.
For the purposes of this document, certain reclassifications have been made to present the accompanying
consolidated financial statements in a format which is
familiar to readers outside Japan. In addition, the
notes to the consolidated financial statements include
information which is not required under accounting
principles generally accepted in Japan but is presented
herein as additional information.
(b) Basis of consolidation and accounting for
investments in affiliates
In accordance with the accounting standard for
consolidation, consolidated financial statements are
required to include the accounts of the parent company and all its subsidiaries over which substantial
control is exerted either through majority ownership
of voting stock and/or by other means. As a result,
the accompanying consolidated financial statements
include the accounts of the Company and one consolidated subsidiary.
The subsidiary is consolidated on the basis of a
fiscal period ending on December 31, which differs
from that of the Company; however, the necessary
adjustments are made if the effect of this difference is
material.
All significant intercompany balances and transactions have been eliminated in consolidation.
(c) Foreign currency translation
The revenue and expense accounts of the overseas
consolidated subsidiary are translated into yen at the
rate of exchange in effect at the balance sheet date.
The balance sheet accounts, except for the components
of shareholders’ equity, are also translated into yen at
the rate of exchange in effect at the balance sheet date.
The components of shareholders’ equity are translated
at their historical exchange rates.
Monetary assets and liabilities of the Company
denominated in foreign currencies are translated at
the current exchange rates in effect at each balance
sheet date. All revenues and expenses denominated
in foreign currencies are translated at the rates of
exchange prevailing when such transactions were
made. The resulting exchange loss or gain is charged
or credited as other expense or income.
(d) Cash equivalents
All highly liquid investments, with a maturity of
three months or less when purchased and which are
readily convertible into known amounts of cash and
are so close to maturity that they represent only an
insignificant risk of any change in value attributable
to changes in interest rates, are considered cash
equivalents.
The definition of cash and cash equivalents in the
consolidated statements of cash flows differs from
that of cash and bank deposits in the consolidated
balance sheets. A reconciliation between these is
presented in Note 11.
(e) Securities
Securities other than those of the subsidiary and
affiliates are classified into three categories: trading,
held-to-maturity or other securities. Trading securities are carried at fair value and held-to-maturity
securities are carried at amortized cost. Marketable
securities classified as other securities are carried at
fair value with any changes in unrealized holding
gain or loss, net of the applicable income taxes,
included directly in net assets. Non-marketable
securities classified as other securities are carried at
cost. Cost of securities sold is determined by the
moving average method.
(f) Derivatives
Derivatives positions are stated at their respective fair
market value.
(g) Inventories
Finished goods, semifinished goods, work in process
and raw materials are stated at cost determined by
the average method. Merchandise is stated at cost
determined by the moving average method. Supplies
are stated at their most recent purchase prices.
(h) Depreciation and amortization
Depreciation of property, plant and equipment of the
Company is principally calculated by the decliningbalance method over the estimated useful lives of the
respective assets. However, buildings (excluding
leasehold improvements) acquired by the Company
after April 1, 1998 are depreciated by the straight-line
method over the estimated useful lives of the respective assets.
Property, plant and equipment of the consolidated
subsidiary is depreciated principally by the straightline method over the estimated useful lives of the
respective assets.
The principal estimated useful lives used for
computing depreciation are as follows:
Buildings and structures
3 to 50 years
Machinery, equipment and vehicles 4 to 15 years
Intangible assets, including costs for computer
software, are amortized by the straight-line method
over their estimated useful lives.
(i) Leases
Non-cancelable leases are primarily accounted for as
operating leases (whether such leases are classified as
operating or finance leases) except that lease agreements which stipulate the transfer of ownership of the
leased assets to the lessee are accounted for as finance
leases.
(j) Allowance for doubtful accounts
The allowance for doubtful accounts is provided at
an amount sufficient to cover possible losses on the
collection of receivables. For the Company, the
amount of the allowance is determined based on the
historical rate of losses on receivables plus an estimate
of the individual amounts deemed unrecoverable.
(k) Allowance for employees’ bonuses
The allowance for employees’ bonuses represents a
provision for the future payment of employees’
bonuses. The amount at each balance sheet date is
included in other current liabilities.
(l) Allowance for directors’ bonuses
The allowance for directors’ bonuses represents a
provision for the future payment of directors’ bonuses.
The amount at March 31, 2008 is included in other
current liabilities.
(m) Retirement and severance benefits
The Company’s employees are covered by an employee retirement allowances plan and by an employee
pension plan. The employee retirement allowances
plan provides for a lump-sum payment, payable upon
mandatory retirement or upon earlier termination of
employment, based on the approximate basic salary at
the time of termination, years of service and certain
other factors. The employee pension plan, which is
noncontributory and funded, was instituted to provide
for retirement allowances for employees who retire at
the mandatory retirement age.
Accrued retirement benefits for employees are
provided at an amount calculated based on the retirement benefit obligation and the fair value of the pension plan assets, as adjusted for the net unrecognized
retirement benefit obligation at transition, unrecognized actuarial gain or loss, and unrecognized prior
service cost. The retirement benefit obligation is
attributed to each period by the straight-line method
over the estimated years of service of the eligible
employees. The net retirement benefit obligation at
transition is being amortized principally over a period
of 10 years by the straight-line method.
Actuarial gain and loss are amortized in the year
following the year in which the gain or loss is recognized primarily by the straight-line method over a
period of 10 years, which falls within the estimated
average remaining years of service of the eligible
employees.
In addition, directors and statutory auditors of
the Company are entitled to lump-sum payments
under the unfunded retirement allowances plan in
accordance with an internal regulation. Provisions
for retirement allowances for these officers are made
at estimated amounts and are included in accrued
retirement benefits.
(n) Income taxes
Deferred tax assets and liabilities are recognized in
the consolidated financial statements with respect to
the differences between financial reporting and the
tax bases of the assets and liabilities and are measured
using the enacted tax rates and laws which will be in
effect when the differences are expected to reverse.
(o) Appropriation of retained earnings
Under the Commercial Code of Japan (the “Code”),
the appropriation of retained earnings with respect to
a given financial period is made by resolution at the
annual general meeting of the shareholders held
subsequent to the close of such financial period. The
accounts for that period do not, therefore, reflect such
appropriations. See Note 14.
On May 1, 2006, the new Corporation Law of
Japan (the “Law”), which superseded the Code, went
into effect. With respect to distributions of additional
paid-in capital or retained earnings, see Note 4.
(p) Change in method of accounting
As for property, plant and equipment acquired on or
after April 1, 2007, the Company has changed the
depreciation method based on an amendment to the
Corporation Tax Law.
This change does not have significant impact on
the consolidated financial statements.
ANNUAL REPORT 2008
27
In addition, effective the year ended March 31,
2008, property, plant and equipment acquired on or
before March 31, 2007 for which the allowable limit
on depreciable amount has been reached are to be
depreciated evenly over five years from the following fiscal year.
This change does not have significant impact on
the consolidated financial statements.
The Company decided to discontinue retirement
benefits for directors and statutory auditors, and a
resolution was approved at the general shareholders’
meeting held on June 26, 2007 that accrued retirement benefits for directors and statutory auditors
would be paid to the relevant directors and statutory
auditors when they retire.
Accordingly, the Company recognized the
amount of expected payments for this purpose
included in “Long-term accounts payable-other” at
March 31, 2008.
Effective the year ended March 31, 2007, the
Company adopted a new accounting standard for
the presentation of net assets in the balance sheet
and the related implementation guidance. In addition, effective the year ended March 31, 2007,
the Company is required to prepare consolidated
statements of changes in net assets instead of
consolidated statements of shareholders’ equity. In
this connection the previously reported consolidated
balance sheet as of March 31, 2006 consolidated
statements of shareholders’ equity for the year ended
March 31, 2006 restated to conform to the presentation and disclosure of the consolidated financial
statements for the year ended March 31, 2007.
Total shareholders’ equity, net under the previous method of presentation amounted to ¥47,092
million for the year ended March 31, 2007.
Effective the year ended March 31, 2007, the
Company adopted a new accounting standard for
allowance for directors’ bonuses. The effect of the
adoption of this standard was to decrease both
operating income and income before income taxes
and minority interests by ¥90 million over the
amount which would have been recorded under the
method applied in the previous years.
2. U.S. Dollar Amounts
For the convenience of the readers, the accompanying
consolidated financial statements with respect to the
year ended March 31, 2008 have been presented in
U.S. dollars by translating all yen amounts at ¥100.20 =
U.S.$1.00, the exchange rate prevailing on March 31,
2008. This translation should not be construed as a
representation that yen have been, could have been, or
could in the future be, converted into U.S. dollars at the
above or any other rate.
3. Long-Term Debt
Long-term debt at March 31, 2008 is summarized as
follows:
Loans from banks and insurance
companies, due through 2011:
Unsecured
Less: Current portion
(Millions of yen)
(Thousands of
U.S. dollars)
(Note 2)
¥3,925
(1,000)
¥2,925
$39,171
(9,980)
$29,191
The weighted average interest rate of long-term debt
at March 31, 2008 is 1.46% per annum.
The aggregate annual maturities of long-term debt
subsequent to March 31, 2008 are summarized as follows:
(Millions of yen)
(Thousands of
U.S. dollars)
(Note 2)
¥1,000
1,000
925
¥2,925
$ 9,980
9,980
9,231
$29,191
Year ending March 31,
2009
2010
2011
4. Shareholders’ Equity
The Code provided that an amount equal to at least
10% of the amounts to be disbursed as distributions of
earnings be appropriated to the legal reserve until the
sum of the legal reserve and additional paid-in capital
equals 25% of the common stock account. The Code
also stipulates that, to the extent that the sum of the
additional paid-in capital account and the legal reserve
exceeds 25% of the common stock account, the amount
of any such excess is available for appropriation by
resolution of the shareholders.
The Law, which superseded most of the provisions
of the Code, went into effect on May 1, 2006. The Law
provides that amounts from additional paid-in capital
and retained earnings may be distributed to the shareholders at any time by resolution of the shareholders or
by the Board of Directors if certain provisions are met
subject to the extent of the applicable sources of such
distributions. The Law further provides that amounts
equal to 10% of such distributions be transferred to the
capital reserve included in additional paid-in capital or
the legal reserve included in retained earnings based on
the applicable sources of such distributions until the
sum of the capital reserve and the legal reserve equals
25% of the capital stock account.
5. Income Taxes
Income taxes applicable to the Company comprise
corporation tax, inhabitants’ taxes and enterprise tax
which, in the aggregate, resulted in a statutory tax rate
of approximately 40% for 2008 and 2007. Income taxes
of the overseas consolidated subsidiary are, in general,
based on the tax rate applicable in its country of
incorporation.
The major components of deferred tax assets and
liabilities at March 31, 2008 and 2007 are summarized
as follows:
2008
2007
(Millions of yen)
Deferred tax assets (current):
Enterprise tax payable
Allowance for employees’ bonuses
Unrealized gain on inventories
Social insurance premium on
accrued bonuses
Other
Total deferred tax assets (current)
Deferred tax liabilities (current):
Total deferred tax liabilities (current)
Deferred tax assets (current), net
Deferred tax assets (non-current):
Accrued retirement benefits
Allowance for retirement benefits
for directors and corporate auditors
Loss on valuation of investment
securities
Unrealized holding gain on securities
Write-down of golf memberships
Other
Total deferred tax assets (non-current)
2008
¥ 85
146
47
$ 1,185
1,603
418
23
5
350
21
2
301
233
57
3,498
(34)
(34)
¥ 316
(149)
(149)
¥ 152
(343)
(343)
$ 3,154
¥
5
¥ 27
$
158
164
1,578
183
281
34
4
667
—
—
43
13
247
1,834
2,804
345
42
6,660
(22)
—
(140)
—
(15)
(463)
(223)
—
(1,405)
55
Deferred tax liabilities (non-current):
Accrued retirement benefits
Unrealized holding gain on securities
Deferred gains on property and
equipment
Other
Total deferred tax liabilities
(non-current)
Deferred tax assets (non-current), net
(103)
(0)
(128)
—
(1,028)
(0)
(266)
¥ 401
(606)
¥ —
(2,658)
$ 4,002
Total deferred tax liabilities
(non-current)
¥ —
¥(359)
$
—
6. Retirement Benefit Plans
The Company’s policy is to fund amounts from a
lump-sum retirement payment plan for employees
who are under 55 years old and from a tax-qualified
pension plan for employees who have reached age 55,
respectively.
The overseas subsidiary has a lump-sum retirement
payment plan in accordance with the law in its country
of domicile.
The following table sets forth the funded and
accrued status of the plans, and the amounts recognized
in the consolidated balance sheets at March 31, 2008 and
2007 for the Company’s defined benefit plans:
2007
(Millions of yen)
¥(2,032) ¥(1,945)
Retirement benefit obligation
1,846
1,973
Plan assets at fair value
(185)
28
Unfunded retirement benefit obligation
Net unrecognized retirement benefit
(56)
(84)
obligation at transition
279
(23)
Unrecognized actuarial gain
Net retirement benefit obligation
38
(79)
Prepaid pension cost
422
—
Accrued retirement benefits for
employees
¥ (384) ¥ (79)
2008
(Thousands of
U.S. dollars)
¥ 118
160
41
2008
The components of retirement benefit expense for
the years ended March 31, 2008, 2007 and 2006 are outlined as follows:
¥143
Service cost
50
Interest cost
(49)
Expected return on plan assets
Amortization of net retirement
(28)
benefit obligation at transition
22
Amortization of actuarial loss
¥139
Total
$(20,280)
18,432
(1,848)
2008
2006
(Thousands of
U.S. dollars)
¥143
48
(43)
¥137
44
(31)
$1,433
506
(492)
(28)
27
¥147
(27)
50
¥173
(279)
222
$1,390
The assumptions used in accounting for the above
plans were as follows:
Discount rates
Expected rate of return on plan assets
2008
2007
2.5%
2.5%
2.5%
2.5%
Actuarial cost allocation method
Unit credit method
Amortization period for actuarial
difference:
10 years (amortized by the
straight-line method over a
period which fall within the
average remaining years of
service of the eligible employees,
effective the year subsequent to
the period when the difference
occurred).
Amortization period for retirement
benefit obligation at transition from
the initial adoption of new
accounting method:
10 years (amortized by the
straight-line method as a certain
period within the employees’
average remaining service years,
effective the year when the
difference occurred).
7. Leases
(a) Lessee
Lease expenses relating to finance leases accounted for
as operating leases for the years ended March 31, 2007,
amounted to ¥1 million, which are equivalent to the
depreciation expense of the leased assets computed by
the straight-line method over the lease periods.
(b) Lessor
The following amounts represent the acquisition costs,
accumulated depreciation and net book value of the
leased assets at March 31, 2008, which would have been
reflected in the balance sheet if finance leases currently
accounted for as operating leases had been capitalized.
March 31, 2008
Equipment Total Equipment
2008
(Thousands of
U.S. dollars)
2007
(Millions of yen)
(Millions of yen)
Acquisition costs
Accumulated depreciation
Net book value
¥9
2
¥7
¥9
2
¥7
Total
(Thousands of U.S. dollars)
$96
23
$72
$96
23
$72
(559)
2,792
384
4,217
$ (3,833)
ANNUAL REPORT 2008
29
Lease revenues relating to finance leases accounted
for as operating leases for the years ended March 31,
2008 amounted to ¥1 million ($8 thousand).
Future lease revenues (including the interest portion
thereon) subsequent to March 31, 2008 for finance leases
accounted for as operating leases, except for lease agreements which stipulate the transfer of ownership of the
leased property to the Company and its consolidated
subsidiary, are summarized as follows:
2008
(Millions of yen)
Due in one year or less
Due after one year
Total
$20
55
$76
8. Segment Information
Business segments
The Company and its consolidated subsidiary are
engaged principally in manufacturing and selling nonwoven fabric and sterilized medical goods, which are
considered to be a single business segment. Accordingly,
the presentation of information by business segment has
been omitted.
Geographical segments
Year ended March 31, 2008
IndoElimina- Consolinesia
Total
tions
dated
(Millions of yen)
Sales to third parties
Inter-area sales and
transfers
Total sales
Operating expenses
Operating income
¥28,687
¥ 322
¥29,010
¥
—
28,687
21,962
¥ 6,725
3,888
4,210
3,730
¥ 480
3,888
32,898
25,693
¥ 7,205
(3,888)
(3,888)
(3,914)
¥ 26
—
29,010
21,778
¥ 7,232
Total assets
¥58,770
¥3,881
¥62,652
¥(1,137)
¥61,514
Japan
—
¥29,010
Elimina- ConsoliIndonesia
Total
tions
dated
Sales to third parties $286,306
transfers
—
286,306
Total sales
Operating expenses
219,184
Operating income
$ 67,121
$ 3,220 $289,526 $
Total assets
$38,741 $625,270 $(11,353) $613,917
$586,529
(Millions of yen)
transfers
Total sales
Operating expenses
Operating income
¥26,389
¥
46
¥26,435
¥
—
26,389
20,660
¥ 5,729
3,088
3,134
2,747
¥ 387
3,088
29,523
23,407
¥ 6,116
(3,088)
(3,088)
(3,173)
¥ 85
—
26,435
20,234
¥ 6,201
Total assets
¥53,895
¥3,364
¥57,259
¥(1,320)
¥55,939
—
$289,526
38,803
38,803 (38,803)
—
42,024 328,330 (38,803) 289,526
37,233 256,418 (39,069) 217,349
$ 4,790 $ 71,912 $ 265 $ 72,177
Total
tions
dated
(Millions of yen)
transfers
Total sales
Operating expenses
Operating income
¥27,211
¥
83
¥27,294
¥
—
27,211
21,574
¥ 5,637
3,794
3,877
3,430
¥ 447
3,794
31,088
25,004
¥ 6,084
(3,794)
(3,794)
(3,769)
¥ (25)
—
27,294
21,235
¥ 6,059
Total assets
¥57,077
¥3,397
¥60,474
¥(1,243)
¥59,231
¥26,435
Change in method of accounting
As described in Note 1(p), effective the year ended
March 31, 2007, the Company has adopted a new
accounting standard for allowance for directors’ bonuses.
The effect of the adoption of this new standard was to
increase operating expenses in the column of “Japan” by
¥90 million and to decrease operating income by the
same amount over the amount which would have been
recorded under the method applied in the previous
years.
Overseas sales
Since overseas sales were less than 10% of consolidated
sales for the years ended March 31, 2008, 2007 and 2006,
no disclosure of overseas sales has been presented.
9. Stock Option Plans
The shareholders of the Company approved stock option
plans which, in accordance with the Code, entitle the
directors and employees to purchase shares of the Company’s common stock which had been purchased by the
Company from the market.
At March 31, 2008, the stock option plans of the
Company are summarized as follows:
Date of approval
by shareholders
June 28, 2005
June 26, 2003
June 27, 2002
Grantees
4 directors and
316 employees
5 directors and
318 employees
5 directors and
323 employees
Nature of shares
with warrants
granted
Common stock
Common stock
Common stock
181,100
179,800
—
¥5,967
¥5,780
¥5,877
July 1, 2007 March 31, 2011
July 1, 2005 March 31, 2009
July 1, 2004 March 31, 2008
Number of
shares with
warrants granted
Price per share of
common stock(*1)
Exercise period
Japan
—
(Thousands of
U.S. dollars)
¥2
5
¥7
Japan
Japan
Total
tions
dated
—
¥27,294
(*1) As outlined in the Company’s stock option plan, this exercise price will be
adjusted in accordance with a specified formula for stock splits, reverse stock
splits or new issues of shares of common stock whose issue price is less than
the market price.
10. Amounts per Share
Basic net income per share was computed based on the
net income available for distribution to shareholders of
common stock and the weighted-average number of
shares of common stock outstanding during the year,
and diluted net income per share was computed based
on the net income available for distribution to the shareholders and the weighted-average number of shares of
common stock outstanding during each year after giving
effect to the dilutive potential of shares of common stock
to be issued upon the conversion of convertible bonds
and the exercise of warrants. Amounts per share of net
assets were computed based on the net assets available
for distribution to the shareholders and the number of
shares of common stock outstanding at the year end.
Distributions per share represent the distributions
declared as applicable to the respective years together
with the interim distributions made.
2007
2008
2006
(Yen)
Net income:
Basic
¥ 269.73
—
Diluted
3,300.59
Net assets
Distributions
80.00
applicable to the year
$ 2.691
—
32.940
80.00
48.00
0.798
11. Supplementary Cash Flow Information
The following table represents a reconciliation of cash
and cash equivalents at March 31, 2008 and 2007:
2007
(Millions of yen)
¥11,138
(299)
¥10,838
(Millions of yen)
Securities whose carrying value
exceeds their acquisition cost:
Equity securities
Others
Subtotal
Securities whose acquisition cost
exceeds their carrying value:
Equity securities
Others
Subtotal
Total
¥8,114
(289)
¥7,825
¥
—
100
100
3,644
—
3,644
¥3,744
2,938
—
2,938
¥3,038
(706)
—
(706)
¥(706)
$
—
998
998
36,373
—
36,373
$37,371
$
—
998
998
29,321
—
29,321
$30,319
$
—
0
0
(7,051)
—
(7,051)
$(7,051)
March 31, 2007
Acquisition Carrying Unrealized
cost
value
gain (loss)
2008
$111,158
12. Investment Securities
Sales of securities classified as other securities amounted
to ¥329 million with an aggregate gain of ¥0 million for
the year ended March 31, 2008. There were no sales of
securities classified as other securities for the year ended
March 31, 2007.
¥ —
0
0
Equity securities
Others
Subtotal
Equity securities
Others
Subtotal
Total
(Thousands of
U.S. dollars)
(2,986)
$108,172
—
100
100
¥
March 31, 2008
cost
value
gain (loss)
(U.S. dollars)
¥ 246.82
227.41
3,037.59
Cash and bank deposits
Time deposits with original maturities
of more than three months
Cash and cash equivalents
March 31, 2008
cost
value
gain (loss)
2008
¥ 234.69
—
3,194.04
2008
Investment securities, except for those of affiliates, at
March 31, 2008 and 2007 consisted of the following:
(Millions of yen)
Equity securities
Others
Subtotal
Equity securities
Others
Subtotal
Total
¥2,051
100
2,151
¥2,097
100
2,197
¥46
0
46
504
100
604
¥2,755
498
98
596
¥2,793
(6)
(2)
(8)
¥38
ANNUAL REPORT 2008
31
13. Derivatives
The Company utilizes forward foreign exchange
contracts and currency swaps to hedge certain foreign
currency transactions related to its foreign purchase
commitments. The purpose of the Company’s hedging
activities in the form of forward foreign exchange contracts and currency swaps is to protect the Company
from the related market risks.
The accounting standard for financial instruments
requires that derivative financial instruments be stated
at fair value and that any changes in fair value be recognized as gain or loss unless the derivatives qualify as
hedges. Valuation gain or loss on hedging instruments
is deferred as an asset or a liability until the gain or loss
on the underlying hedged instruments is realized.
Premiums or discounts on forward foreign exchange
contracts and currency swaps utilized for hedging purposes are allocated to each fiscal term without being
marked to market.
The Company and its consolidated subsidiary are
exposed to certain market risks arising from the forward
foreign exchange contracts and swap agreements
referred to above. The Company is also exposed to the
risk of credit loss in the event of non-performance by the
counterparties to the currency and interest derivatives;
however, the Company does not anticipate nonperformance by any of these counterparties, all of whom
are financial institutions with high credit ratings.
Hedging transactions are entered into in accordance
with the strategies established by the Company’s
management. The operations of the department which
is responsible for hedging transactions is routinely
examined by the Company’s management.
14. Subsequent Events
The following appropriations of retained earnings of the
Company, which will be effective May 31, 2008 and
have not been reflected in the consolidated financial
statements for the year ended March 31, 2008, were
approved at the Board of Directors’ meeting held on
April 11, 2008:
Distributions of ¥20 (U.S.$0.199)
per share
(Millions of
yen)
(Thousands of
U.S. dollars)
¥300
$3,000
Report of Independent Auditors
The Board of Directors
Hogy Medical Co., Ltd.
We have audited the accompanying consolidated balance sheets of Hogy Medical Co., Ltd. and
consolidated subsidiary as of March 31, 2008 and 2007, and the related consolidated statements of income,
changes in net assets, and cash flows for each of the three years in the period ended March 31, 2008, all
expressed in yen. These financial statements are the responsibility of the Company’s management.
Our responsibility is to express an opinion on these financial statements based on our audits.
We conducted our audits in accordance with auditing standards generally accepted in Japan. Those
standards require that we plan and perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit includes examining, on a test basis,
evidence supporting the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by management, as well as
evaluating the overall financial statement presentation. We believe that our audits provide a reasonable
basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in all material respects, the
consolidated financial position of Hogy Medical Co., Ltd. and consolidated subsidiary at March 31, 2008
and 2007, and the consolidated results of their operations and their cash flows for each of the three years in
the period ended March 31, 2008 in conformity with accounting principles generally accepted in Japan.
The U.S. dollar amounts in the accompanying consolidated financial statements with respect to the year
ended March 31, 2008 are presented solely for convenience. Our audit also included the translation of yen
amounts into U.S. dollar amounts and, in our opinion, such translation has been made on the basis
described in Note 2.
June 24, 2008
ANNUAL REPORT 2008
33
■ History
1955
1961
1963
1964
1967
1970
1971
1972
1977
1978
1979
1982
1983
1984
1985
1987
1988
1989
1991
1992
1993
1994
1995
1997
1999
2000
2002
2003
2004
2005
2006
2007
Establishment of Hoki Meishodo in Bunkyo Ward, Tokyo by Masao Hoki (Founder of Hogy
Medical Co., Ltd.) as a family-type operation, and start of retailing paper and stationery and
launch of medical recording paper
Incorporation of Hoki Recording Paper Marketing Co., Ltd. in Bunkyo Ward, Tokyo with paidin capital of ¥1 million
Launch of recording paper for electrocardiograph equipment under the Hogy name
Establishment of Nogata Plant in Nerima Ward, Tokyo and start of manufacturing Mekkin Bag
(sterilization pouch for surgical instruments)
Launch of Mekkin Bag
Construction of Kashiwa Plant in Kashiwa City, Chiba and closing of Nogata Plant
Change of company name to Hogy Co., Ltd.
Establishment of No. 1 Distribution Center in Nagareyama City, Chiba
Start of manufacturing and launch of medical use non-woven fabric products
Registration with the Governor of Tokyo as business conducting general sales of poisonous and
deleterious substances and acquisition of approval to conduct sales of pharmaceutical products
Construction of Miho Plant (presently, Miho No. 1 Plant) in Miho Village, Inashiki District,
Ibaraki and start of manufacturing Mekkin Bag and non-woven fabric products, taking over
Kashiwa Plant operations
Renovations of former Kashiwa Plant and establishment of it as No. 2 Distribution Center
Start of manufacturing and launch of medical use non-woven fabric products using Sontara ®
(non-woven fabrics) manufactured by E.I. du Pont de Nemours and Company
Completion of Miho No. 2 Plant and start of operations as plant exclusively for non-woven
fabric products
Establishment of No. 3 Distribution Center on adjacent land
Launch of OR Pack (surgical drapes pack)
Commencement of strategy to market non-woven fabric products through an original complete
deployment system
Change of company name to Hogy Medical Co., Ltd.
Adoption of new computer system as centralized business management and power-saving efforts
Establishment of Edosaki Distribution Center (fully-automated warehouse)
Listing on Second Section of the Tokyo Stock Exchange
Start of operations at Edosaki Sterilization Center (electron beam sterilization)
Completion of Miho No. 3 Plant (integrated into Miho No. 2 Plant in April 1994)
Acquisition of site for Tsukuba Plant (Minami Okuhara Industrial Park)
Completion of expansion work on Edosaki Distribution Center and integration with No. 1
Distribution Center
Launch of kit products
Incorporation of P.T. Hogy Indonesia (presently, a consolidated subsidiary)
Completion of building for Tokyo Sales Office
Completion of Tsukuba Sterilization Center (fully-automated electron beam sterilization)
Completion of Tsukuba Distribution Center (fully-automated warehouse)
Launch of steel surgical instruments
Change of listing to First Section of the Tokyo Stock Exchange
Completion of building for new Head Office
Relocated Head Office to current location (Minato Ward, Tokyo)
Completion of Tsukuba Kit Plant and start of operations as plant exclusively for kit products
Launch of Opera Master Product
Start of operations of production line exclusively for Opera Master at Tsukuba Plant
Tsukuba OPC commenced its operations
P.T. Hogy became sub-subsidiary (included in consolidation; name changed from
P.T. Nitto Matex Indonesia in February 2008)
■ Shareholder Information
Common stock price range & trading volume
(¥)
Closing →
8,000
← Highest →
←(upper whisker)→
← Opening
7,000
Opening→
6,000
Unique to Japan, the “box-andwhisker” chart shows monthly
price movements and turnover. A
single box contains opening, closing, high and low quotations on a
monthly basis which enables the
reader to quickly see price movements.
(Million
If the box is white, it means
shares) that the closing price of the month
is higher than the opening price
2
and if the box is blue, the opposite has occurred. The box also
1
changes shape. If the opening
quotation is the same as the low
for the month and the closing
0
2008
quotation is the same as the high
for the month, a whisker does not
appear from the white box. These
2008
are but two examples of this
Years ended in excellent charting method.
2007
March
Numbers shown in the chart
represent the highest and the
lowest prices throughout the peri6,230
7,030
od. A bar graph at the foot of the
chart indicates the monthly
turnover in units of one million
4,160
4,320
shares.
5,000
4,000
3,000
2004
2005
2007
2006
2004
2005
2006
High (yen)
5,430
6,230
6,600
Low (yen)
4,110
4,150
4,270
←(lower whisker)→
Lowest
→
←
← Closing
Major shareholders
Masao Hoki
Hoki Business Limited
Hogy Medical Co., Ltd.
Japan Trustee Services Bank, Ltd. (Trust Account)
The Master Trust Bank of Japan, Ltd. (Trust Account)
National Mutual Insurance Federation of
Agricultural Cooperatives
Nikko Citi Trust and Banking Corporation
(Investment Trust Account)
State Street Bank and Trust Company
Northern Trust Company (AVFC) Re-fidelity Funds
Mediceo Paltac Holdings Co., Ltd.
Jun-ichi Hoki
Total
Number of shares
Percentage of total
(thousands)
(%)
2,725.3
1,667.7
1,308.4
954.8
898.9
16.67
10.20
8.00
5.84
5.50
551.0
3.37
348.3
2.13
323.8
304.0
292.0
283.4
1.98
1.86
1.78
1.73
9,657.7
59.10
Number of shares
Proportion
(thousands)
(%)
5,140.3
4,046.0
92.2
3,467.1
3,595.3
16,341.1
31.46
24.77
0.56
21.22
21.99
100.00
Shareholder composition
Individuals
Financial institutions
Securities companies
Foreign investors and others
Others
Total
Number of
shareholders
5,270
48
32
124
70
5,544
ANNUAL REPORT 2008
35
■ Corporate Information
Board of Directors,
Corporate Auditors
and Executive Officers
Jun-ichi Hoki
President & CEO
Jun-ichi Hoki
Founder & Director
Masao Hoki
Director
Kazuo Hirose
Masao Hoki
(Production Div.)
Yukio Yamamoto
(Sales Dept. 4)
Kazuo Hirose
Yukio Yamamoto
Katsumi Uchida
Outside Board Member
Katsumi Uchida
Full-time Corporate Auditor
Yukikazu Mishima
Outside Corporate Auditors
Shigeru Yasuda
Shuji Yanase
Executive Officers
Katsuo Sasaki
(Sales Dept.1)
Naoki Matsumoto
(Sales Dept.2)
Takuya Kobayashi
(Sales Dept.3)
Ikuo Fuse
(Sales Dept. 5)
Kazuo Takahashi
(Management Planning Dept. &
Product Control Dept.)
Ken-ichi Yamaoka
(Procurement Dept.)
Yukikazu Mishima
Shigeru Yasuda
Shuji Yanase
Shigeharu Suzuki
(Sales Promotion Dept.)
Tatsuo Hayashi
(Research & Development Dept.)
(as of August 8, 2008)
Corporate Data
Incorporated:
Paid-in capital:
Number of employees:
Number of sales offices:
Listing:
April 3, 1961
¥7,123 million
1,485 (Consolidated)
26
The Tokyo Stock Exchange
First Section
Code number:
3593
Number of shareholders: 5,544
Shares of common stock
issued and outstanding: 16,341,155
Financial year:
April 1 to March 31
Annual general meeting: June
Transfer agent:
Independent auditor:
Mitsubishi UFJ Trust and
Banking Corporation
4-5, Marunouchi 1-chome,
Chiyoda-ku, Tokyo 100-8212
Tel: 03-3212-1211
Ernst & Young ShinNihon
Hibiya Kokusai Building,
2-3, Uchisaiwai-cho 2-chome,
Chiyoda-ku, Tokyo 100-0011
Tel: 03-3503-1100
(as of March 31, 2008)
■ Network
Head Office
7-7, Akasaka 2-chome, Minato-ku, Tokyo 107-8615
Phone: +(81)3-6229-1300
Fax: +(81)3-6229-1350
http://www.hogy.co.jp
Sales Offices
Sapporo Sales Office
1-1, Higashi 19-chome, Kita 26-jo,
Higashi-ku, Sapporo-shi,
Hokkaido 065-0026
Phone: +(81)11-783-2401
Fax: +(81)11-783-2460
Morioka Sales Office
14-50, Mitake 4-chome, Morioka-shi,
Iwate 020-0122
Phone: +(81)19-641-1221
Fax: +(81)19-641-1383
Sendai Sales Office
1, Okadanishimachi 3-chome,
Miyagino-ku, Sendai-shi, Miyagi 983-0004
Phone: +(81)22-287-5333
Fax: +(81)22-287-5335
Utsunomiya Sales Office
13-46, Futaba 1-chome, Utsunomiya-shi,
Tochigi 321-0164
Phone: +(81)28-684-1715
Fax: +(81)28-658-6164
Omiya Sales Office
8-9, Higashi-omiya 6-chome, Minuma-ku,
Saitama-shi, Saitama 337-0051
Phone: +(81)48-684-8591
Fax: +(81)48-684-8590
Chiba Sales Office
12-12, Tsuga 2-chome, Wakaba-ku,
Chiba-shi, Chiba 264-0025
Phone: +(81)43-232-1411
Fax: +(81)43-232-1285
Tokyo No.1 Sales Office
2F 20-9, Hongo 3-chome, Bunkyo-ku,
Tokyo 113-0033
Phone: +(81)3-3813-8141
Fax: +(81)3-3813-8140
Tokyo No.2 Sales Office
3F 20-9, Hongo 3-chome, Bunkyo-ku,
Tokyo 113-0033
Phone: +(81)3-5802-6234
Fax: +(81)3-5802-2048
Tama Sales Office
49-16, Tokura 4-chome,
Kokubunji-shi, Tokyo 185-0003
Phone: +(81)42-320-5511
Fax: +(81)42-320-5513
Yokohama Sales Office
482-1, Toriyama-cho, Kohoku-ku,
Yokohama-shi, Kanagawa 222-0035
Phone: +(81)45-471-7701
Fax: +(81)45-471-7704
Niigata Sales Office
9-3, Bentenbashi-dori 3-chome, chuo-ku
Niigata-shi, Niigata 950-0925
Phone: +(81)25-287-7110
Fax: +(81)25-287-7116
Kanazawa Sales Office
1-16-22, Ekinishi-shinmachi,
Kanazawa-shi, Ishikawa 920-0027
Phone: +(81)76-223-2351
Fax: +(81)76-223-5505
Shizuoka Sales Office
241 Mise, Suruga-ku, Shizuoka-shi,
Shizuoka 422-8057
Phone: +(81)54-284-6688
Fax: +(81)54-284-6855
Matsumoto Sales Office
943-4, Yoshikawa-muraimachi,
Matsumoto-shi, Nagano 399-0032
Phone: +(81)263-85-3280
Fax: +(81)263-86-7847
Nagoya Sales Office
1-508, Bunkyodai, Meito-ku,
Nagoya-shi, Aichi 465-0012
Phone: +(81)52-778-2711
Fax: +(81)52-778-2720
Kyoto Sales Office
20-2, Kamitoba-waranden, Minami-ku,
Kyoto-shi, Kyoto 601-8133
Phone: +(81)75-672-1441
Fax: +(81)75-671-9330
Osaka Kita Sales Office
14-17, Nishiawaji 1-chome,
Higashiyodogawa-ku, Osaka-shi,
Osaka 533-0031
Phone: +(81)6-6320-7211
Fax: +(81)6-6320-7216
Osaka Minami Sales Office
58, Hamaderafunao-cho,
Nishi 3-cho, Nishi-ku, Sakai-shi,
Osaka 592-8342
Phone: +(81)72-268-8051
Fax: +(81)72-268-8052
Nara Sales Office
70-1, Hokkeji-cho, Nara-shi,
Nara 630-8001
Phone: +(81)742-32-2811
Fax: +(81)742-32-2812
Kobe Sales Office
2-15, Ekimae-dori, 2-chome,
Hyogo-ku, Kobe-shi, Hyogo 652-0898
Phone: +(81)78-579-8611
Fax: +(81)78-579-8612
Okayama Sales Office
25-105, Tatsumi, Okayama-shi,
Okayama 700-0976
Phone: +(81)86-246-2727
Fax: +(81)86-246-3255
Hiroshima Sales Office
17-23, Nakasuji 2-chome, Asaminami-ku,
Hiroshima-shi, Hiroshima 731-0122
Phone: +(81)82-879-3901
Fax: +(81)82-879-3903
Matsuyama Sales Office
1188-1, Kishimachi, Matsuyama-shi,
Ehime 791-1102
Phone: +(81)89-976-2021
Fax: +(81)89-976-1822
Fukuoka Sales Office
22-22, Toko 2-chome, Hakata-ku,
Fukuoka-shi, Fukuoka 812-0008
Phone: +(81)92-475-1861
Fax: +(81)92-475-1864
Kumamoto Sales Office
107-12 Koga, Mashikimachi,
Kamimashiki-gun, Kumamoto 861-2234
Phone: +(81)96-286-1331
Fax: +(81)96-286-1425
Kagoshima Sales Office
3-1, Gionnosu-cho, Kagoshima-shi,
Kagoshima 892-0803
Phone: +(81)99-248-5040
Fax: +(81)99-247-2330
R&D
Research & Development Department
1650-30, Okubara-cho, Ushiku-shi,
Ibaraki 300-1283
Phone: +(81)29-830-9720
Fax: +(81)29-830-9721
Facilities
Tsukuba Plant
1650-30, Okubara-cho, Ushiku-shi,
Ibaraki 300-1283
Kit Plant
Phone: +(81)29-830-9700
Fax: +(81)29-830-9710
Sterilization Center
Phone: +(81)29-830-9725
Fax: +(81)29-830-9726
Distribution Center
Phone: +(81)29-830-9100
Fax: +(81)29-830-9101
OPC
Phone: +(81)29-830-9735
Fax: +(81)29-830-9736
Miho Plant No.1
1873-1 Fusa, Miho-mura, Inashiki-gun,
Ibaraki 300-0427
Phone: +(81)29-885-2981
Fax: +(81)29-885-6800
Miho Plant No.2
1776-1 Fusa, Miho-mura, Inashiki-gun,
Ibaraki 300-0427
Phone: +(81)29-885-6611
Fax: +(81)29-885-6800
Edosaki
2726-1, Tatenodai, Sakura,
Inashiki-shi, Ibaraki 300-0508
Sterilization Center
Phone: +(81)29-892-5300
Fax: +(81)29-892-5221
Distribution Center
Phone: +(81)29-892-2381
Fax: +(81)29-892-0891
Overseas Subsidiaries
P.T. HOGY INDONESIA
MM2100 Industrial Town, EPZ.,
Block M-3-1, Cikarang Barat,
Bekasi 17520, West Java, Indonesia
P.T. HOGY
MM2100 Industrial Town,
Block NN-4, Cikarang Barat,
Bekasi 17520, West Java, Indonesia
ANNUAL REPORT 2008
37
HOGY MEDICAL Co., Ltd.
Printed in Japan

REPORT

Transcription

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