ShinMaywa Industries, Ltd.

Transcription

ANNUAL REPORT 2009
ShinMaywa
ShinMaywa
A N N U A L RE P O RT 2 0 0 9
ShinMaywa
Year ended March 31, 2009
ShinMaywa
09.09
ShinMaywa
ShinMaywa
www.shinmaywa.co.jp
ShinMaywa
Company Overview
(As of March 31, 2009)
Company Profile
Company Name
Head Office
1-1 Shinmeiwa-cho, Takarazuka-shi, Hyogo 665-8550, Japan
Paid-in Capital
15,981,967,991 yen
Founded
November 5, 1949
President
Tadashi Kaneki
Category of Business
Transportation Equipment
Number of Employees
Consolidated 3,883 / Non-consolidated 2,010
Number of Affiliated Companies
23
Profile
“Contributing to Society
through Excellent Technologies
as well as Superior
Products and Services”
Breakdown of Shareholders
2009 has a special significance for us because it is the 60th year since weTreasury Stocks 16.65%
(1)
adopted the ShinMaywa name. However, our history stretches back to 1918
19,933,888 shares
Stock Information
when our forerunner, Japan’s first aircraft manufacturer, was founded.
In 1928 the spirit of that enterprise passed to Kawanishi Aircraft Company,
Total Number of SharesLtd.,
Authorized
shares incorporating state-of-the-art technology
which built300,000,000
world-class aircraft
Financial Institutions 21.14%
(42)
25,305,791 shares
Total Number of
that era.
Shares Issued:
Total Number of SharesofIssued
119,727,565 shares
119,727,565
shares
Subsequently, we capitalized on the technologies
and expertise
Number of Shares per Unit
1,000 shares
Number
of
accumulated through aircraft production by applying them in two new
Shareholders:
Number of Shareholders
10,459
business fields, namely, special
purpose trucks and industrial
10,459machinery,
Financial Instruments Firms 0.32%
(40)
384,537 shares
Other Companies 14.16%
(119)
16,958,377 shares
in which we gained a strong presence. The establishment of SHIN MEIWA
Foreign Institutions and Individuals 22.18%
INDUSTRY CO.,LTD. in 1949 paved the way for the resumption of the aircraft(128)
26,551,917 shares
business. Thus, the present-day ShinMaywa is a contender in these three fields.
Japanese Individuals and Others 25.55%
The ShinMaywa Group is characterized by its diverse business portfolio.
(10,129)
30,593,055 shares
The unifying theme of our activities is that they share the goal articulated
in
our corporate philosophy of “contributing to society through excellent
Major Shareholderstechnologies as well as superior products and services”. In all our business
CONTENTS
Profile
1
At a Glance
2
Financial Highlights
3
Featured Interview
Review of Operations by Segment
4
8
activities and products, we endeavor to give shape to our customers’ needs
Disclaimer
Caution Concerning Forward-Looking Statements
This annual report contains forward-looking statements—that is,
statements related to future, not past, events. Such statements
Order
Number of Shares
Shareholding Ratio
(%)
Name of Shareholders
and aspirations
by deploying our accumulated technological
prowess.
Held
2
LTD.
Due to the highly specialized nature of our work, most9,293,065
of our products are 9.31
SANSHIN CO.,
Treasury Stocks 16.59%
built
to order
and Ltd.
hence
manufactured
quantities.
Japan Trustee
Services
Bank,
(Trust
Account)in relatively limited8,273,000
8.29
(1)
3
The Master Trust
Bankthese
of Japan,
Ltd.
(Trust
5,681,000
However,
products
are
madeAccount)
to fulfill key social purposes
and the
1
19,863,697 shares
5.69
are in accordance with management’s present plans, strategies
4
Japan Trustee
Servicesmarket
Bank, Ltd.
(Trust
Account
4G) Group products
4,308,000
significant
shares
of many
ShinMaywa
are a testimony
and outlook, based on management’s judgment in light of
5
Hitachi, Ltd. to their high quality and superior after-sales service.
information currently available. These forward-looking
6
statements involve potential risks and uncertainties, and
7
ShinMaywa Employees'
Stock
3,327,471
Our mission
is toOwnership
develop businesses and create products
that deliver
Strategies for Sustained Growth
of the ShinMaywa Group
15
Corporate Governance
18
Financial Section
20
forward-looking statements herein, owing to various factors.
Report of Independent Auditors
21
the industry, market demand, exchange rates, other social and
Company Overview
53
ShinMaywa offers no guarantee as to their accuracy and
reliability. It should be noted that the Company’s actual
performance may differ materially from that expressed in the
These factors include future economic conditions, competition in
8
9
10
4,000,337
Total
State Street Bank and Trust Company 505019
2,979,000
(10,737)
outstanding value to our customers based on engineering
excellence
Trust & Custody Services Bank, Ltd.
119,727,565
unaffected by fashion. We are resolved to remain true to this
tradition.
2,647,000
(Securities Investment Trust Account)
shares
Inspired by the celebration of our 60th anniversary, the ShinMaywa Group
100%
CBNYDFA International Cap Value Portfolio
2,597,000
will continue to devote itself to enhancing its corporate value.
The Chase Manhattan Bank, N.A. London Secs Lending
2,428,000
Omnibus Account
economic circumstances and contingencies.
Note: The Company holds 19,933,888 treasury stocks, but it has been excluded from the above list of major shareholders.
Financial
4.32 Institutions 19.82%
(45)
23,727,840
shares
4.01
3.33
2.99
2.65
(53)
805,928 shares
(116)
2.60
16,118,316 shares
Foreign2.43
Institutions and Individuals 24.87%
(137)
29,770,579 shares
(10,385)
29,441,205 shares
1 53
At a Glance
Contribution of Each Segment to Net Sales
The ShinMaywa Group has four business
segments: aircraft, special purpose truck,
industrial machinery, and construction &
others.
Construction & Others
The breakdown of the net sales for fiscal
7.0%
9.0% Aircraft
2008 is as shown in the pie charts. Sales of
Aircraft
20.6%
19.3%
the special purpose truck and industrial
Industrial Machinery
machinery segments accounted for
FY2008
FY2007
approximately 70% of net sales, with the
36.4% 138,959
36.9% 127,777
Millions of yen
Millions of yen
remaining sales coming from aircraft and
Special Purpose Truck
construction & others segments.
36.0%
Net sales were approximately 10% lower
34.8%
than in the previous fiscal year, but the
proportion of sales contributed by each
(Millions of yen)
200,000
segment did not change significantly.
Net Sales
Operating Income
Net Income / Earnings per Share
Earnings per Share
Net Income
Millions of yen
144,451
150,000
129,681
127,992
138,959
Millions of yen
Millions of yen
8,000
4,000
yen
80
3,840
3,643
127,777
120,000
6,000
6,050
3,000
5,298
4,854
90,000
3,051
60
5,008
2,450
4,000
2,000
38.43
35.36
60,000
28.12
2,000
30,000
40
24.53
1,000
20
968
0
’04
’05
’06
’07
’08 (FY)
Return on Equity
150,000
0
’04
’05
’06
’07
0
’08 (FY)
Total Assets
26
0.27
’04
’05
’06
’07
Net Assets /Net Assets per Share
Net Assets per Share
Net Assets
Aircraft Segment
100,000
50,000
teel Business
Material Recycling Business
Other Business
0
’05
’06
’07 (FY)
Millions of yen
%
10
150,000
8
120,000
141,192
132,079
Millions of yen
144,206
140,388
125,900
Sales: 24,613 million yen (-14%)
Operating loss:
526 million yen (-1,419 million yen)
Major products:US-2 STOL Search and Rescue Amphibian,
Components for Boeing 777 and Gulfstream G550
6
4.7
4
0
’08 (FY)
yen
100,000
1,000
82,947 82,925 81,147
80,000 75,523 78,419
800
808.16 814.56
783.47
797.49
753.96
90,000
60,000
600
60,000
40,000
400
30,000
20,000
200
4.8
3.9
3.0
Special Purpose Truck Segment
Operating income: 422 million yen (-2,647 million yen)
Major products: Rear Dump Body and Tipping Gear, Detachable
Container System, Arm Hinge Type Tail Gate
Lifter, Refuse Collector
2
0
0.0
’04
’05
’06
’07
’08 (FY)
0
’04
’05
’06
’07
0
’08 (FY)
’04
’05
’06
’07
0
’08 (FY)
Business Results
Industrial Machinery Segment
During fiscal 2008 the impact of the financial crisis originating in the United States and the appreciation of the yen greatly
Operating income: 3,255 million yen (+158 million yen)
Major products: Pumps and related products, Elevator Type Car
Parking System, Automatic Wire Terminating
Machines, Refuse Transfer Station System
and declining personal consumption.
management resources on core activities.
Sales: 11,504 million yen (+18%)
Operating income: 298 million yen (-97 million yen)
exceeding forecasts pushed the Japanese economy into recession amid slumping exports, plummeting capital spending,
In these circumstances, the ShinMaywa Group worked to minimize the adverse impact of this sharp deterioration of the
business environment by implementing emergency measures to squeeze costs out of the business. Looking to the future,
the Group stepped up development of new products and expanded its network of offices in overseas markets. The Group
also endeavored to increase corporate value by, for example, withdrawing from unprofitable businesses and concentrating
Despite these efforts, orders declined 24.5% year on year to ¥111,302 million and net sales decreased 8.0% to
0
’05 fully
’06 offset
’07
’05
’06
’07
’08 this could not
¥127,777 million. While the industrial machinery segment maintained a robust
performance,
(FY)
plummeting demand for the products of the special purpose truck segment and the decline in earnings of the aircraft
’08
(FY)
0
’05
segment due to appreciation of the yen.
With regard to profits, although the emergency measures did have a positive impact, ordinary income declined 78.8%
(Millions of yen)
(Millions of yen)
150,000
150,000
year on year to ¥996 million and net income plunged 98.9% to ¥26
million owing to the recording
of a 144,451
loss on valuation
of investment securities attributable to sluggish stock markets.
Note: The Company’s fiscal year is from April 1 to March 31. Fiscal 2008 is a fiscal year from April 1, 2008, to March 31, 2009 (from page 2 to page 19).
12,595
138,959
9,747
00,000
120,000
(Millions of yen)
4,000
3,840
000,000
120,000
3,000
2
54,791
50,529
00,000
3
Featured Interview
ShinMaywa Industries’ 60th anniversary
—Toward the Creation of Value in the Global Markets—
November 2009 marks ShinMaywa Industries’ 60th
Celebrating the 60th anniversary
anniversary. In Japan, when a person turns sixty
years old, we use the word “kanreki”, which refers
not only to the completion of his or her first 60-year
The worldwide recession that originated in the United
States in September 2008 was a severe blow to the
It will be 60 years since we became ShinMaywa, but we can
ShinMaywa Group. Since the performance of our businesses
trace our history back through more than nine decades.
is closely linked with construction demand and capital
investment, sales stalled. This coupled with the appreciation
We started out as an aircraft manufacturer. In the post-
cycle but also to the commencement of the second
war period in Japan as infrastructure development got
of the yen, resulted in significant declines in both sales and
phase of a person’s life. It is an auspicious juncture
underway and economic growth took off, ShinMaywa
profits for fiscal 2008 compared with the previous cycle.
in the life of a person and so it represents a
launched the special purpose truck business and entered the
industrial machinery field by deploying in these new
most. Orders for dump trucks and other mainstay products
domains technologies originally cultivated through aircraft
abruptly lost momentum in October 2008. Similarly, in the
milestone in the history of a company.
Therefore, this is an opportune time for
The special purpose truck business was affected the
production.
industrial machinery business, orders for Thin Film Coating
ShinMaywa to reflect on its history, review its
System and Automatic Wire Terminating Machine (products
underlying technological expertise and identify
special purpose truck, and industrial machinery. Although
closely linked with the automotive market) fell far short of
opportunities for further growth.
our businesses are relatively modest in scale, we derive
expectations. Furthermore, even in the aircraft business,
strength from having been a pioneer in each field, the
which is less subject to turbulence in the economic climate,
Tadashi Kaneki, President and Chief Executive Officer, giving an interview
In this interview, President Tadashi Kaneki, who
At present, our principal business segments are aircraft,
breadth of our product portfolio, and the large market
international sales were substantially below what we had
is charting the course of the ShinMaywa Group,
shares our products command. Indeed, we offer more than
anticipated owing to a two-month strike at Boeing and the
discusses the principal issues concerning the Group
200 types of products in the special purpose truck segment
appreciation of the Japanese currency.
and the road ahead.
alone.
tunnel. The impact of our company-wide initiative to reform
I believe that customer-oriented manufacturing enables
Nonetheless, light began to appear at the end of the
us to maintain our competitive advantage amid fierce
production systems, SHIP (ShinMaywa Innovation for
competition with specialist manufacturers. I also believe that
Productivity), is becoming evident at workplaces. For
our continuous efforts to endow our products with
example, the amount of overtime worked at certain plants
functions and quality that satisfy market needs have inspired
has been halved. In another positive development, orders
customer confidence in the ShinMaywa Group. This is what
substantially increased for the CNW series, Hiefficiency and
ultimately underpins our strong presence in various markets.
Good Particles Passage Performance Submersible Pump,
Although our business segments may appear to have
products for which we have high expectations. These pumps
little in common with one another at first glance, they do
received public recognition in the form of an award for their
share underlying fundamental technologies. The Group
energy-conserving performance.
pursues an integrated approach from product development
and manufacturing to services in each business.
4
5
Featured Interview
Long-term management plan:
“Value Up 200!”
already have the largest market share.
Furthermore, we received an order for a refuse transfer
station system for Shanghai. We have already started
In Japan, with the aim of focusing resources on core
Shortly after we had set new targets in the “Value Up 200!”
businesses, on June 1st, 2009, ShinMaywa Industries
construction of this system with the aim of completing it
long-term management plan in July 2008, the worldwide
absorbed ShinMaywa Engineering, Ltd. which designs, sells
before Shanghai Expo. Capitalizing on this project, we will
recession struck. This underlined the necessity of enhancing
and maintains mechanical car parking systems. As a result,
step up overseas marketing of our environmental systems.
intrinsic corporate value, the action theme of “Value Up
the operations of the two companies are now fully
200!”
integrated. This merger is intended to increase ShinMaywa’s
competitive advantage in the industry. Moreover, while the
There is a large disparity between the management
ShinMaywa’s vision for the future
targets we initially set and current profit levels. However, as I
Japanese market is expected to shrink, the merger will
Throughout its history, ShinMaywa has evolved by
have already mentioned, our initiatives have started to bear
strengthen our ability to seize opportunities in promising
advancing into new business fields whenever an
fruit. Moreover, there are various other measures that we
markets overseas.
opportunity arose. Our development is based on
are considering or are already implementing. Therefore, we
These are examples of what we are doing to achieve the
technological expertise, which brings about a realization of
intend to revise the management targets once the economic
vision articulated by “Value Up 200!” Going forward, we will
the requirements of our customers; and service capabilities,
climate stabilizes, but continue working on the action
continue to closely monitor the operating environment and
which enable us to maintain the performance and safety of
theme, enhancement of intrinsic corporate value, without
apply a flexible management style in line with the current
our products. Recognition that our business is a
any major changes.
times.
combination of products and services allows us to identify
aspects of products requiring improvement as well as new
Keep challenging in fiscal 2009 to accomplish
“Value Up 200!”
Growth strategies
6
customer needs. The plan-do-check-action (PDCA) cycle not
only enables us to maintain the position we have cultivated
As an initiative to enhance intrinsic corporate value, we are
Since there is little prospect of a decisive recovery of the
in the market over the years but also leads to further
laying the foundations for business expansion overseas.
business environment in fiscal 2009, the ShinMaywa Group
development of the business. While strong demand for
Kailash ShinMaywa Industries Ltd., established in Pune,
will work to secure orders and sales, which are the sources
environmentally friendly, high value-added products has
India, in June 2009, will manufacture and sell special
of profits, while endeavoring to reduce fixed costs.
emerged in Japan in recent years, ShinMaywa’s existing
purpose trucks in that country whose economy is expected
products retain great appeal in many overseas markets.
to continue growing dramatically. Depending on the region,
the aircraft business, while executing projects for the
Aspiring to be an enterprise that fully utilizes its
we pursue overseas development of the special purpose
Ministry of Defense as planned, we are working to secure
technological expertise and management resources in the
truck business either through exports or local production.
more orders for components for the new aircraft that will
global marketplace to create new value, we will strive to
Regarding local production, our immediate task is to get the
follow the Boeing 787.
make “ShinMaywa” synonymous with these qualities
joint-venture companies recently established in India and
around the world.
Chongqing, China, on track as soon as possible.
greater decline in domestic demand than in the previous
fiscal year amid intensifying competition with industry peers.
The current economic recession, whose depth has exceeded
for industrial machinery in Singapore, ShinMaywa JEL
In fiscal 2009, we will work to increase the ratio of in-house
anything we had anticipated, has dealt our business a
Aerotech Pte. Ltd., which will design and manufacture
production based on a review of personnel deployment and
severe blow. However, this ordeal has been imposed equally
Aircraft Passenger Boarding Bridges in addition to providing
capital investment, while striving to increase our market
on virtually every manufacturer. I am determined to fulfill
after-sales services in response to boosting demand for
share in order to improve profitability.
my responsibilities at the helm of ShinMaywa based on the
these products in Asia. Our principal objective in establishing
conviction that our future success hinges on the extent to
this local subsidiary is to differentiate ShinMaywa from
commercialize a stream of hit products comparable to the
which the initiatives I have referred to take root and nourish
European and American competitors by adding cost
CNW series of submersible pumps so that we are in a
our intrinsic corporate vitality before the economy bottoms
competitiveness to our brand power in Asia, where we
position to advance rapidly once the market recovers.
out and a decisive recovery gets underway.
We have also established a new joint-venture company
Let me comment on our priorities in each business. In
In the special purpose truck business, we expect a
In the industrial machinery business, our priority is to
Tadashi Kaneki
President and Chief Executive Officer
7
Key Policies in the “Value Up 200!”
Long-term Management Plan
●E
stablish a mass-production system for the Boeing 787 Main
●E
nsure steady earnings for the production of commercial aircraft
●D
evelop basic technologies for future opportunities
overhaul the aircraft.
overseas businesses.
and Gulfstream Aerospace Corporation, which are both based
aircraft capable of taking off from, and landing on, water
Composition of the Segment
The “US-2” carried out its first overseas dispatch in May
* Aircraft Division, ShinMaywa Industries, Ltd.: Design,
(ARF) Voluntary Demonstration of Response on Disaster
2009, when it participated in the ASEAN Regional Forum
Relief.
components
* ShinMaywa Iwakuni Aircraft Maintenance, Ltd.: Repair,
in the United States. We produce components for the
Rescue Amphibian that is capable of taking off and landing in
commercial aircraft manufactured by these two companies.
the open sea or on land.
Body Fairing, whose production involves processing composite
remodeling and maintenance of STOL Search and Rescue
Amphibians
Our current mainstay product is the Boeing 777 Wing-To-
currently has seven STOL Search and Rescue Amphibians,
materials. Since our first shipment in 1992, we have delivered
normally places an order for an amphibian whenever one is
more than 800 fairings to Boeing.
decommissioned. Recently, the JMSDF ordered the US-2
model, which we developed in 2004, as a replacement for the
Wing Spar for the 787 aircraft currently being developed by
former US-1A model.
Boeing. We are establishing a mass-production system for this
component, which is bigger and plays a more important role
Rescue Amphibian, the Company is also contracted to
1A” STOL Search and Rescue Amphibian, the “US-2” is an
and the ground. The navy-blue themed “US-2” is about
production, sales and overhaul of aircraft and related
Our major overseas customers are The Boeing Company
The Company is the prime contractor of the STOL Search and
In addition to manufacturing the STOL Search and
tion type of “US-2” STOL Search and Rescue Amphibian to
33m long, with a cruising range of approximately 4,700 km.
The aircraft business can be categorized into domestic and
The Japan Maritime Self-Defense Force (JMSDF), which
Make full use of the Company’s originality in aircraft
component manufacturing
Line of Business
Our principal customer in Japan is the Ministry of Defense.
Japan’s Ministry of Defense
the Ministry of Defense of Japan. A successor to the “US-
components
Aircraft
“US-2” STOL Search and Rescue Amphibian to
In February 2009, we completed delivery of the first produc-
Wing Spar
ShinMaywa Delivers First Production Type of
* ShinMaywa (California), Ltd.: Procurement of materials for
aircraft-related products
The Company has been awarded the contract for Main
than our current product for the Boeing 777.
Business Environment in Fiscal 2008
Japan: The Company delivered the first production type (third including prototypes)
of the US-2 STOL Search and Rescue Amphibian to the Ministry of Defense in February
2009. (Sales of this product are booked on a percentage-of-completion basis.)
Overseas: Owing to the impact of strikes at Boeing, the Company halted
manufacturing of the Boeing 777 Wing-to-Body Fairing, the mainstay product, for
two months. Furthermore, sharp appreciation of the yen continued: whereas the
average exchange rate for fiscal 2008 was 101 yen to the U.S. dollar, it was 113 yen
to the U.S. dollar for the previous fiscal year.
First production type of “US-2”
Sales
(Millions of yen)
30,000
(Millions of yen)
1,200
28,572
24,616
20,849
20,688
893
-526
0
’04
’05
’06
’07
’08 (FY)
-600
Japanese Market (business with the Ministry of Defense)
●A
n order was received for periodic repair work for the STOL Search and Rescue Amphibian.
●S
ales of manufacturing and periodic repair work of the STOL Search and Rescue Amphibian
declined from the previous fiscal year.
628
600
10,000
1,003
981
24,613
20,000
0
Business Results for Fiscal 2008
Operating Income
’04
’05
’06
’07
’08 (FY)
Overseas Market (commercial aircraft)
● Orders for the Boeing 787 Main Wing Spar declined.
●S
ales of the Boeing 777 Wing-To-Body Fairing declined owing to discontinuation of work
caused by strikes at Boeing.
●O
rders for components for the Gulfstream G550 business jet declined. Although the
delivered quantity increased, owing to the appreciation of the yen, sales remained at
roughly the same level as the previous fiscal year.
8
9
In June 2009, ShinMaywa established two joint ventures
● Improve profitability by production rationalization
outside of Japan. Kailash ShinMaywa Industries Limited is
●E
xpand sales by advancing aggressively into overseas markets
responsible for the manufacturing and sales of our special
purpose trucks in India. This joint venture is expected to
(export & local production)
●B
roaden the business portfolio by forming joint ventures and
accelerate the ShinMaywa Group’s drive to increase our
overseas sales ratio, and as such will serve as our point of
entering new markets
Joint Venture Established in India
contact in the Asian market, which promises high growth.
* Special Purpose Truck Division, ShinMaywa Industries, Ltd.:
Design, production and sales of special purpose trucks
Line of Business
* ShinMaywa Auto Engineering, Ltd.: Maintenance and after-sales
Our special purpose truck segment produces functional units
Japanese market, we have been exporting special purpose
service for special purpose trucks and sales of related
for various purposes and mounts them on truck bodies
trucks for a long time. In recent years, we have exported
components and pre-owned special purpose trucks
produced by chassis manufacturers.
dump trucks and refuse collectors to the Middle East and
Africa.
Although there are many categories of special purpose
* Iwafuji Industrial Co., Ltd.: Production and sales of forestry
machinery, environmental equipment and special purpose trucks
trucks, the Company focuses on three categories:
construction-related vehicles (e.g. Rear Dump Body and
special purpose trucks and maintains high market shares in all
Tipping Gear and Direct Drive Type Concrete Mixing Drum),
its product categories. This success is attributable to two key
environment-related vehicles (e.g. Crushing and Compacting
strengths: customer-oriented production of high-quality,
sales, maintenance, and repair of special purpose trucks and
Type Refuse Collector and Detachable Container System), and
durable products and superior product maintenance with a
environmental systems
distribution-related vehicles (e.g. Arm Hinge Type Tail Gate
24-hour service system.
* Thai ShinMaywa Co., Ltd.: Production and sales of components
ShinMaywa was the first company in Japan to produce
for special purpose trucks
* Chongqing Endurance & ShinMaywa Industries, Ltd.: Production,
Signing ceremony in India
Lifter and Petroleum Tank).
We produce special purpose trucks at three factories in
Japan. Although approximately 80% of our sales are in the
Sales
Operating Income
substantially owing to stagnant construction demand attributable to the economic
(Millions of yen)
60,000
(Millions of yen)
4,000
downturn.
50,000
Overseas markets: Demand declined because of appreciation of the yen and the
40,000
impact of the economic downturn.
30,000
Forestry machinery: Our strong performance reflected promotion of forestry
20,000
maintenance that accelerated the shift to greater mechanization.
10,000
Construction-related vehicles: Orders for Rear Dump Body and Tipping Gear fell
48,205
52,446
50,110
41,212
44,483
3,000
3,588
Manufacturing and sales of truck bodies etc.:
In regard to environment-related vehicles, sales of Rear Dump Body and Tipping Gear
3,481
distribution-related vehicles declined substantially.
Maintenance and repair business: Whereas decreases in sales of components and
2,000
revenues from service operations etc. were slight, sales of pre-owned special purpose
1,000
0
remained at about the same level as the previous year but sales of construction and
3,069
2,979
’04
’05
’06
’07
’08 (FY)
0
’04
’05
’06
’07
422
trucks, which tend to be linked to sales of new trucks, greatly decreased.
’08 (FY)
Forestry machinery: Both orders and sales were robust owing to the contribution
throughout the year from Iwafuji Industrial Co., Ltd., which became a consolidated
subsidiary in November 2007.
10
11
●M
ake continued efforts to develop and commercialize new and
* ShinMaywa Waste Technology, Ltd.: Installation, maintenance
and repair of refuse disposal facilities
* MELTEC, Ltd.: Intermediate treatment and recycling of incinerated
ash of industrial and non-industrial wastes
improved products that will be the drivers of growth
●E
xecute full-scale entry to overseas markets (e.g. production
satisfying export specifications, consideration of M&A and
Development of the New Automatic Wire
alliances)
Terminating Machine “TRD 401” for the
●C
reate production processes capable of flexibly responding to
fluctuations in demand
* Industrial Machinery Systems Division, ShinMaywa
Industries, Ltd.: Design, production and sales of pumps and
related products and mechatronics products
* Environmental Systems Division, ShinMaywa Industries,
Ltd.: Design, engineering and sales of Environmental
Automotive Market
The “TRD 401” reduces the switchover time to about onesixth of that needed with its conventional counterparts,
while at the same time achieving enhanced safety and processing accuracy. Going
forward, we will aim to
receive more orders
from Europe and North
America.
Systems
Line of Business
* ShinMaywa Engineering, Ltd.: Design, sales, maintenance and
Our industrial machinery segment handles products and
company performs maintenance and refurbishment to ensure
improvement, etc. of Car Parking Systems (absorbed into
systems that contribute to rationalization and labor-saving of
the stable operation of car parking systems.
ShinMaywa Industries on June 1, 2009)
production facilities etc. There are four product categories:
Water Treatment Equipment, Car Parking Systems,
and sells Automatic Wire Terminating Machines, Direct Drive
Mechatronics Equipment, and Environmental Systems.
Motors, Thin Film Coating Systems, etc., focusing on
equipment that contributes to automation of production
Water Treatment Equipment: Principal products are
* ShinMaywa Aqua Technology Services, Ltd.: Installation,
Mechatronics Equipment: The Company designs, develops
maintenance and repair of pumps and related products
* ShinMaywa (Asia) Pte. Ltd.: Sales and maintenance of industrial
machinery and environmental systems
“TRD 401”
ShinMaywa Receives an Order for the Refuse
Transfer Station System (compaction / transfer
facility) from Shanghai, the Largest of its Kind
in China
equipment utilized in sewage treatment plants and at civil
facilities and enhances added value. Aircraft Passenger
engineering and construction sites. The Company offers the
Boarding Bridges equipped with automatic control functions
equipment and systems required to swiftly convey the effluent
are included in this category.
discharged from homes and industry to final treatment
facilities.
recycling and treatment technologies, including those for
Car Parking Systems: The Company designs and sells car
systematization of treatment processes from refuse collection
parking systems equipped with an elevator mechanism or a
to storage and transfer facilities, and safe and highly efficient
etc. of Automatic Wire Terminating Machines and Aircraft
in 2010, construction work is underway through concerted
rotary and vertical mechanism, ranging from systems for
treatment plants etc.
Passenger Boarding Bridges
efforts between a local corporation and ShinMaywa.
* ShinMaywa (America), Ltd.: Sales and maintenance of industrial
machinery
* ShinMaywa (Shanghai) Trading Co., Ltd.: Services for and sales of
Environmental Systems: The Company develops refuse
ShinMaywa was chosen by the municipal government of
Shanghai as a supplier for its refuse transfer station system
industrial machinery and assembly of Automatic Wire Terminating
which, after reducing volume in an efficient manner through
Machines
the use of waterways, transports general waste to landfill
* ShinMaywa (Bangkok) Co., Ltd.: Maintenance, repair, installation,
sites. For a target completion in time for the Shanghai Expo
detached houses to those for condominiums. In addition, the
Business Environment
in Fiscal 2008
●R
obust sales of Car Parking Systems
were maintained.
●S
ales of Mechatronics Equipment and
Sales
(Millions
(Millions
of yen)
of yen)
60,000
60,000
54,791
54,791
51,114
51,114
50,529
50,529
49,206
49,206
47,175
47,175
50,000
50,000
40,000
40,000
Environmental Systems were lackluster
30,000
30,000
owing to deterioration of markets,
20,000
20,000
postponement of orders, etc.
10,000
10,000
0
12
Operating Income
0
’04 ’04
(Millions
(Millions
of yen)
of yen)
5,0005,000
4,454
4,454
4,0004,000
3,0003,000
3,295
3,2953,097
3,255
3,097 3,255
2,695
2,695
2,0002,000
1,0001,000
’05 ’05
’06 ’06
’07 ’07
’08 (FY)
’08 (FY)
0
0
’04 ’04
’05 ’05
’06 ’06
’07 ’07
’08 (FY)
’08 (FY)
Coating Systems declined. Regarding Automatic Wire Terminating
Water Treatment Equipment: Both orders and sales declined.
Machines, despite an increase in sales, orders declined substantially.
Although the CNW Series and CNWX Series, Hiefficiency and
Sales of Aircraft Passenger Boarding Bridges increased owing to
Good Particles Passage Performance Submersible Pump made a
completion of a large project in Japan and other factors.
significant contribution, demand for systems for public works was
Withdrawal from the beauty and medical equipment business in
sluggish.
fiscal 2008 contributed to improved profitability. Profitability of Car
Car Parking Systems: Sales increased despite a decline in orders
Parking Systems improved. As a result, despite lower sales, overall
for new projects. Revenues from repair services remained at the
operating income increased for this product category.
same level as the previous year.
Environmental Systems: Both orders for and deliveries of the
Mechatronics Equipment: Both orders for and sales of Thin Film
mainstay refuse transfer and sorting facilities declined.
13
Special Purpose Truck Business
Hiroshima Plant
Line of Business
This segment comprises three subsidiaries: Maywa Komuten,
*M
aywa Komuten, Ltd.: Construction, civil engineering, electrical
Ltd. carries out construction and civil engineering work under
engineering, work related to water supply and drainage, and
contract, ShinMaywa Shoji, Ltd. is engaged in real estate and
work related to air conditioning
temporary personnel services, and ShinMaywa Soft
Sano Plant
Products:
Rear Dump Body and Tipping
Gear for large dump trucks,
Detachable Container System,
and Direct Drive Type Concrete
Mixing Drum
Products:
Refuse Collector and Vacuum Loader
* S hinMaywa Shoji, Ltd.: Real estate and temporary personnel
Technologies, Ltd. develops and designs computer systems
services
under contract.
Samukawa Plant
* S hinMaywa Soft Technologies, Ltd.: Development of computer
November 2009 marks ShinMaywa Industries’ 60th Anniversary.
systems
Not only were we the first company to manufacture special purpose trucks in
Japan, but we have maintained our leadership in this business field. We provide
many kinds of special purpose trucks. Our special purpose trucks are categorized
Sales
Construction-related: Despite deterioration of the construction market, sales
(Millions of yen)
increased because sales of several projects were booked in fiscal 2008, and not in
15,000
fiscal 2007 as originally scheduled, owing to revisions to the Building Standards Act.
12,000
into three fields: construction, distribution and environment.
(Millions of yen)
14,816
11,580
11,504
400
9,747
489
375
395
300
298 and regulatory environments.
to changes in the economic
6,000
200
Construction-related: Although orders for construction work declined, sales
3,000
100
0
intensifying competition and cancellation and postponement of projects triggered by
deterioration of the construction market. On the other hand, sales increased because
of work that was postponed until fiscal 2008 owing to the impact of the revisions to
the Building Standards Act.
11,504
11,580
9,747
9,000
400
(Millions of yen)
150,000
6,000
12,595
’04
9,747
’05
’06
’07
0
’08 (FY)
54,791
50,529
4,000
0,000
business performance. Then, we will show you the Group’s strategies for both
000,000
the Japanese market, which is expected to show little or no growth, and the
promising overseas markets, which offer opportunities for expansion.
120,000
’06
This special feature presents the future direction of the special purpose truck
(Millions of yen)
’07
’08 (FY)3,000
3,000
00,000
0,000
2,450
90,000
’08 (FY)
business
4,000toward sustained growth. Let’s start by looking at the trend of our
3,840
66
’05
’07
marketplace.
298 (Millions of yen)
138,959
’04
’06
recognize that now is the time to step up our efforts while putting in place a
(Millions of yen)
150,000
144,451
00,000
100
’05
major cost savings. However, among our businesses, this one has been the most
severely affected by the global recession that struck last year. Therefore, we
395
200
120,000
’04
0
’08 (FY)
system enabling us to bring our capabilities into full play in the global
375
300
3,000
0
’07
489
500
12,595 in line with the
Temporary personnel services: Both orders and sales declined
decline in demand for temporary workers.
’06
66
products, while also striving to increase the ratio of overseas sales and achieve
(Millions of yen)
14,816
12,000
’05
In recent years, we have aimed at enhancing the stability of the performance
of this business by capitalizing on our ability to provide highly customized
Operating Income
(Millions of yen)
15,000
’04
Products:
Rear Dump Body and Tipping Gear for
small dump trucks and Tail Gate Lifters
performance of this business is exposed to the risk of short-term fluctuations due
9,000
increased owing to a large project. Orders for construction work declined because of
14
In order to maintain our focus on meeting the various needs of our
customers, most of our special purpose trucks are built to order. However, the
500
12,595
90,000
0,000
0,000
15
Strategies for Sustained Growth of the ShinMaywa Group
Special Purpose Truck Business
Strategies for the Special Purpose Truck Business in Japanese Market
The indicator used to forecast the trend of the Company’s
special purpose truck business is the demand for standard
bottoming out, demand for standard trucks in Japan, and
trucks of 4 tons or heavier. This figure is an effective indicator
therefore also the associated demand for special purpose
because approximately 20% of standard trucks are serving as
trucks, is unlikely to resume a vigorous upward trend in view
special purpose trucks and the trend has been evident in the
of the country’s aging society coupled with a falling birth rate
past.
and its mature infrastructure. Although our special purpose
In recent years, the sharpest decline in demand occurred
Although there are indications that the economy may be
Cost reductions allow us to provide products meeting
Whereas the special purpose truck business is highly
customer specifications at attractive prices. We are
dependent on subcontractors, we are working to increase the
implementing SHIP, a company-wide production innovation
ratio of in-house production in order to reduce variable costs
initiative, whose benefits are already becoming evident.
as a part of our drive to reduce costs.
Strategies for the Special Purpose Truck Business in Overseas Markets
trucks include environment-related and distribution-related
The measures implemented in the Japanese market will also
adjacent areas. We intend to ensure the success of this
in fiscal 2002. Following the bursting of the IT bubble, the
vehicles contributing to the quality of life and the efficiency of
be our strengths abroad.
expansion by offering high-quality, durable products built to
Japanese economy cooled dramatically, leading to the
transportation, further growth in demand for construction-
robust specifications that fulfill local requirements.
collapse of demand for construction-related vehicles, which
related vehicles, which account for the largest proportion of
vehicles is mature, there are plenty of opportunities overseas,
accounts for approximately 40% of sales of special purpose
our sales, is not in prospect in Japan where infrastructure is
where demand for these vehicles is expected to rise rapidly.
ability to offer products at much lower prices than in Japan.
trucks.
already at an advanced level.
Therefore, our growth strategies for the special purpose truck
For these markets, we must establish a business model based
business are weighted toward overseas markets.
on local production and sales of trucks whose specifications
meet local needs. Recently, we have established joint-venture
We responded by reducing the Group’s special purpose
In these circumstances, our two priorities for the Japanese
While the domestic market for construction-related
In regions where demand is rising, success hinges on the
truck factories from five to three while downsizing the
market are to maintain a large market share and reduce costs.
workforce.
trucks completed in Japan has led to increasing overseas
companies in China and India to manufacture and sell special
expected, since special purpose trucks are indispensable for
sales, primarily in the Middle East and Africa. In fiscal 2008,
purpose trucks for those two large and growing markets.
standard trucks sharply increased compared with the previous
maintaining and improving infrastructure, demand will never
we exported special purpose trucks to about 70 countries.
Accordingly, the new role of Thai ShinMaywa Co., Ltd. is to
year, and the special purpose truck segment’s sales and profit
cease. Therefore, we believe that maintaining a large market
However, the overseas sales ratio declined from the level of
ensure stable supply of core components to these companies.
increased at an even greater rate. This surge was attributable
share will allow us to strengthen our position in the industry.
the previous fiscal year because the appreciation of the yen
to a rapid increase in replacement demand triggered by the
For this purpose, product attractiveness and differentiation
placed us at a competitive disadvantage vis-à-vis European
finished trucks and local production, we aim to accelerate
exhaust gas regulations that came into force in Japan in
from competitors’ offerings are crucially important. We are
manufacturers and the steep decline in oil prices undermined
penetration of the ShinMaywa brand in overseas markets.
October 2003. The increase in demand associated with the
striving to enrich and refine our products by endowing them
the financial position of importers. Once the economy
regulatory change continued for approximately four years,
with attributes attuned to market needs, namely, low noise,
recovers, we will expand our sales territories to encompass
during which the special purpose truck segment underpinned
energy saving, and light weight (greater loading capacity), so
the Group’s performance.
that we can win repeat orders.
As shown in the graph, in fiscal 2003 demand for
Although an overall large increase in demand is not
(Millions of yen)
precipitated by the collapse of Lehman Brothers in October
sales evaporated, with construction-related vehicles, the
mainstay of our sales, being hit particularly hard. As a result,
the special purpose truck business recorded big drops in sales
and operating income. Demand for standard trucks in fiscal
ShinMaywa’s Sales of Special Purpose Trucks and
Demand for Standard Trucks in Japan
(Millions of yen)
120,000
105,495
99,516
52,446
50,000
50,110
48,205
46,110
100,000
44,483
105,427
40,000
85,114
78,735
ShinMaywa’s Sales of Special Purpose Trucks and
Overseas Sales
(Millions of yen)
1,159
60,000
62,961
60,000
Millio
48,205
46,110
44,483
1200
41,212
40,000
100000
31,713
30,000
52,446
50,110
50,000
144,451
(1,444,510) 138,959
(1,389,590) 000,000
129,681
(0,000,000)
(1,296,810)
120000
80,000
449
Sudan 646
Iraq
295
Algeria
Millions of yen
41,212
52,000 units for fiscal 2009, we expect the severe business
environment to continue.
Mongolia
(Units)
117,101
60,000
2008 was 63,000 units, which is nearly half the figure for
fiscal 2003. As the figure is expected to further decline to
Endeavoring to strike a balance between exports of
Fiscal 2008 Overseas Sales:
Top Five Countries
This advantage was wiped out by the global recession
2008. Similar to what happened in fiscal 2002, orders and
In recent years, our emphasis on the export of finished
1000
31,713
80000
800
30,000
60000
20,000
600
40,000
20,000
40000
10,000
400
20,000
20000
0
0
’02
’03
’04
’05
’06
’07 ’08 (FY)
0
Australia
’05
’06
’07
’08
314
10,000
0
’09
930 1,503
’02
’03
5,478
2,656
’04
’05
8,229
6,285
’06
’07
200
4,977
’08 (FY)
ShinMaywa’s sales of special purpose trucks (Millions of yen)
ShinMaywa’s sales of special purpose trucks (Millions of yen)
Demand for standard trucks in Japan (Units)
Overseas sales of special purpose trucks (Millions of yen)
17
16
(%)
(%)
Basic Philosophy Regarding Corporate Governance
In regard to corporate governance, the ShinMaywa Group places top priority on conducting corporate
activities in compliance with relevant laws and regulations, social norms and common sense, while ensuring
management transparency and rationality, in order to improve our corporate value.
ShinMaywa’s Approach to Corporate Governance
Taking into account the business style and scale of ShinMaywa, the company has adopted a corporate auditing
system, and introduced an Executive Officer system. The latter is intended to strengthen management functions by
transferring individual business management authority to Executive Officers, in order to speed up decision making
and clarify management responsibilities. The executive officer system also aims to enhance governance by ensuring
that directors (the Board of Directors) concentrate on assessing individual business operations from company-wide
perspectives, as well as decision making and the supervision of management resource allocation.
Furthermore, ShinMaywa has set the terms of office for Directors and Executive Officers at one year, in order to
facilitate management assessment and clarification of management responsibilities. At the same time the
Management Personnel Committee was established, as an advisory body to the President, to further improve the
transparency and appropriateness of personnel affairs and compensation. The majority of these committee members
are experts from outside the Company (lawyers and university professors) and Outside Directors.
Currently ShinMaywa has six Directors (two from outside the Company) who attend the monthly Board of
Director’s meetings to decide on important management subjects. The Board also monitors the performance of its
Directors as deemed appropriate. ShinMaywa has concluded in its articles of association that the number of
Directors shall be eight or less.
ShinMaywa has thirteen Executive Officers, including five managers from respective divisions, who focus on the
implementation of specific projects. These Executive Officers are members of the Management Committee, an
advisory body to the President that, in
principle, meets twice a month to discuss
General meeting of shareholders
important matters related to the
management of ShinMaywa.
Board of Corporate Auditors
Independent Auditors
(Corporate Auditors and Outside Auditors)
(Audit Corporation)
There are five Corporate Auditors,
three of whom are Outside Auditors who,
in addition to attending the Board of
Directors’ meetings and other important
Board of Directors (Directors and Outside Directors)
in-house meetings, perform their duties
by listening to business reports from
Directors and employees, and inspecting
Corporate Ethics Expert Committee
Management Personnel Committee
(Outside Directors and Experts)
(Outside Directors and Experts)
Representative
final-approval documents.
Director
The Company has appointed Grant
(President and
Management Committee
CEO)
(Directors and Executive Officers)
CSR and Quality Assurance
Thornton Taiyo ASG as the Company’s
Division
accounting auditor. Grant Thornton Taiyo
Respective division heads
(Executive Officers and Employees)
Corporate Ethics Helpline
(Internal Reporting System)
ASG replaced Ernst & Young ShinNihon, whose contract with the Company expired at the closure of the 85th
annual general meeting of shareholders. By providing accurate management information to its accounting auditor,
the Company has established an environment in which the auditor can conduct accounting audits from a fair
standpoint.
As part of our compliance efforts, we have stipulated a standard of ethics in order to provide guidelines which
ensure all employees conform with laws and regulations, social norms and common sense. ShinMaywa also works
to promote awareness of compliance and establish various related programs, such as the “ShinMaywa Ethics Day”
and “Corporate Ethics Month”. Furthermore, in order to clarify the responsibility for centralized control of
compliance and CSR implementation, as well as quality assurance of products and services the “CSR and Quality
Assurance Division” was established, which in turn is evaluated and inspected by the “Corporate Ethics Expert
Committee” that was formed primarily with members from outside the company. This committee also put together
a system for providing counseling and advice.
A corporate ethics consultation section (corporate ethics helpline) was also created in order to eliminate
compliance risk through early problem detection and selfgovernance.
Board of Directors
President and Chief Executive Officer
Tadashi Kaneki
Board Director and Senior Vice
President and Executive Officer
Yoshihiro Onishi
Board Directors and Executive Officers
Keisuke Endo
Masao Mizuta
Board Directors
Koichi Takatsuka *1
Nobutane Yamamoto *1
Senior Vice President and Executive
Officer
Masachika Matsuoka
Vice Presidents and Executive Officers
Takashi Sugano
Yoshifumi Fujiwara
Mikiaki Kato
Executive Officers
Masaharu Ishii
Yasushi Ihara
Taku Ikeda
Jitsuo Nakane
Tomoya Teramoto
Hiroichi Sano
Corporate Auditors
Norio Maki
Isao Nishimura
Takao Koyama *2
Yuka Shimokobe *2
Kyozo Hayashi *2
Internal Audit Division
(Internal Audit Office)
Internal Reporting Section
(Office of the President)
External Reporting Office
(Law Firm)
An overview of the Company’s management system
*1 Outside Director
18
*2 Outside Auditor
19
Financial Section
Consolidated Five-year Summary
ShinMaywa Industries, Ltd. and Consolidated Subsidiaries
Years ended March 31, 2005, 2006, 2007, 2008 and 2009
Thousands of
2005
2006
Millions of yen
2007
2008
2009
U.S. dollars
2009
¥127,992
¥129,681
¥144,451
¥138,959
¥127,777
$1,303,847
3,051
3,643
3,840
2,450
26
265
Net cash (used in) provided by
operating activities
11,264
(3,876)
(1,930)
6,498
(2,021)
(20,622)
Net cash used in investing activities
(2,383)
(5,486)
(3,352)
(4,183)
(3,330)
(33,980)
(9,959)
832
2,943
(1,054)
4,919
50,194
20,850
12,371
10,099
11,333
10,794
110,143
75,523
78,419
82,947
82,925
81,147
828,031
125,900
132,079
141,192
144,206
140,388
1,432,531
For the year:
Net sales
Net income
Net cash provided by (used in)
financing activities
Cash and cash equivalents at end of
the year
At year-end:
Total net assets
Total assets
Yen
U.S. dollars
Per share amounts:
Net assets per share
Net income per share
¥ 753.96
¥ 783.47
¥ 808.16
¥ 814.56
¥ 797.49
$
8.14
28.12
35.36
38.43
24.53
0.27
0.00
60.0
59.4
57.1
56.4
56.7
–
3.9
4.7
4.8
3.0
0.0
–
17.64
18.98
15.87
12.56
766.67
–
3,706
3,773
3,761
3,954
3,883
–
Ratios:
Capital adequacy ratio (%)
Rate of return on equity capital (%)
Price earnings ratio (multiple)
Other:
Number of employees
Notes: 1. U.S. dollar amounts in this annual report are translated from Japanese yen, for convenience only, at the rate of ¥98 = US$1.00, the approximate rate prevailing on
March 31, 2009.
20
21
Financial Section
Consolidated Balance Seets
Years ended March 31, 2009 and 2008
Millions of yen
2009
Thousands of
U.S. dollars (Note 3)
2009
2008
Allowance for doubtful receivables
Inventories (Note 5)
Trade notes and accounts payable
¥ 10,794
¥ 11,337
$ 110,143
$ 115,684
47,271
51,577
482,357
526,296
(95)
(126)
(969)
(1,286)
42,409
41,411
432,745
422,561
2,329
2,651
23,765
27,051
Prepaid expenses and other current assets
1,305
1,232
13,316
12,571
104,016
108,083
1,061,388
1,102,888
Property, plant and equipment (Note 14):
5,730
5,782
58,469
59,000
Buildings and structures
36,055
36,021
367,908
367,561
Machinery, equipment and vehicles
35,957
34,463
366,908
351,663
Land (Note 11)
Construction in progress
Less accumulated depreciation and impairment loss
2008
2009
2008
$ 188,714
$ 257,000
Current liabilities:
Deferred income taxes (Note 9)
Total current assets
Thousands of
Liabilities and Net assets
Current assets:
Trade notes and accounts receivable
2009
2008
Assets
Cash and deposits (Note 4)
Millions of yen
720
496
7,347
5,061
78,464
76,763
800,653
783,296
(53,188)
(50,729)
(542,735)
(517,643)
25,276
26,034
257,918
265,653
¥ 18,494
¥ 25,186
Short-term bank loans (Note 7)
6,000
–
61,224
–
Current portion of long-term debt (Note 7)
2,000
–
20,408
–
Accrued expenses
5,053
6,963
51,561
71,051
Accrued income taxes (Note 9)
1,014
1,010
10,347
10,306
Accrued bonuses for directors
46
152
469
1,551
Provision for product warranty
103
109
1,051
1,112
Provision for losses on construction contracts
1,502
896
15,327
9,143
Other current liabilities
5,433
4,723
55,439
48,194
39,647
39,042
404,561
398,388
Long-term debt (Note 7)
4,323
6,000
44,112
61,224
Accrued retirement benefits for employees (Note 8)
Total current liabilities
Long-term liabilities:
8,081
8,848
82,459
90,286
Accrued retirement benefits for directors and corporate auditors
669
823
6,827
8,398
223
317
2,276
3,235
62
62
633
633
Deferred income taxes on land revaluation reserve (Note 11)
Negative goodwill
Other long-term liabilities
531
678
5,418
6,918
5,701
5,509
58,173
56,214
Total long-term liabilities
19,593
22,238
199,929
226,918
Total liabilities
59,240
61,281
604,490
625,316
Contingent liabilities (Note 10)
Net assets:
Shareholders’ equity (Note 12):
Common stock
Authorized – 300,000,000 shares
Property, plant and equipment, net
Investments and long-term loans receivable:
381
202
3,888
2,061
2,371
3,331
24,194
33,990
4
13
41
133
Total investments and long-term loans receivable
2,757
3,546
28,133
36,184
4,569
2,834
46,622
28,918
Other assets (Note 14)
3,768
3,707
38,449
37,827
¥140,388
¥144,206
$1,432,531
$1,471,490
Investments in an unconsolidated subsidiary and affiliates
Investment securities (Note 6)
Long-term loans receivable
Total assets
Issued – 119,727,565 shares at March 31, 2009 and 2008
15,981
15,981
163,071
163,071
Capital surplus
15,737
15,739
160,582
160,602
Retained earnings (Note 20)
56,549
57,524
577,031
586,980
Less treasury common stock, at cost;
19,933,888 shares at March 31, 2009 and
19,862,697 shares at March 31, 2008
(8,194)
(8,175)
(83,612)
(83,418)
80,074
81,070
817,082
827,245
158
673
1,612
6,867
Land revaluation reserve (Note 11)
(389)
(389)
(3,969)
(3,969)
Translation adjustments
(259)
(8)
(2,643)
(82)
(490)
275
(5,000)
2,806
1,563
1,579
15,949
16,112
Total shareholders’ equity
Valuation and translation adjustments:
Unrealized gain on securities (Note 6)
Total valuation and translation adjustments:
Minority interests
Total net assets
Total liabilities and net assets
81,147
82,925
828,031
846,173
¥140,388
¥144,206
$1,432,531
$1,471,490
The accompanying notes are an integral part of these statements.
22
23
Financial Section
Consolidated Statements of Income
Consolidated Statements of Changes in Net Assets
Millions of yen
Net sales
Cost of sales (Notes 5 and 15)
2009
2008
2009
2008
¥127,777
¥138,959
$1,303,847
$1,417,949
110,698
116,198
1,129,571
1,185,694
17,079
22,760
174,276
232,245
Gross profit
Selling, general and administrative expenses (Notes 13 and 15)
Operating income
16,111
17,752
164,398
181,143
968
5,008
9,878
51,102
Other income (expenses):
76
73
776
745
(103)
(80)
(1,051)
(816)
Amortization of negative goodwill
146
52
1,490
531
Equity in losses of an unconsolidated subsidiary and affiliates
(60)
(37)
(612)
(378)
Restructuring losses (Note 8)
(18)
(333)
(184)
(3,398)
Impairment losses on other securities (Note 6)
(291)
(117)
(2,969)
(1,194)
Other, net (Note 14)
(102)
(331)
(1,041)
(3,378)
(353)
(774)
(3,602)
(7,898)
615
4,233
6,276
43,194
1,723
1,523
17,582
15,541
(1,150)
201
(11,735)
2,051
15
57
153
582
26
¥ 2,450
Interest and dividend income
Interest expense
Income before income taxes and minority interests
Shareholders' Equity
Thousands of
Number of
shares of
Common
common stock stock
Capital
surplus
Valuation and translation
adjustments
Treasury
common Unrealized Land
Retained stock, at
gain on revaluation Translation Minority
earnings
cost
securities reserve adjustments interests
Total net
assets
Millions of yen
Balance at
March 31, 2007
Disposal of
treasury stock
Acquisition of
treasury stock
Dividends paid
Net income for
the year
Net changes in
items other
than those in
shareholders’
equity
Balance at
March 31, 2008
Disposal of
treasury stock
Acquisition of
treasury stock
Dividends paid
Net income for
the year
Net changes in
items other
than those in
shareholders’
equity
Balance at
March 31, 2009
119,727,565
¥15,981
¥15,739
¥55,990
¥(8,152)
¥1,401
¥(306)
¥ 90
¥2,202
¥82,947
–
–
0
–
3
–
–
–
–
3
–
–
–
–
(27)
–
–
–
–
(27)
–
–
–
(999)
–
–
–
–
–
(999)
–
–
–
2,450
–
–
–
–
–
2,450
–
–
–
82
–
(728)
(82)
(98)
(623)
(1,450)
119,727,565
15,981
15,739
57,524
(8,175)
673
(389)
(8)
1,579
82,925
–
–
(2)
(3)
15
–
–
–
–
9
–
–
–
–
(33)
–
–
–
–
(33)
–
–
–
(998)
–
–
–
–
–
(998)
–
–
–
26
–
–
–
–
–
26
–
–
–
–
–
(514)
–
(251)
(16)
(782)
119,727,565
¥15,981
¥15,737
¥56,549
¥(8,194)
¥ 158
¥(389)
¥(259)
¥1,563
¥81,147
Income taxes (Note 9):
Current
Deferred
Minority interests
Net income
¥
$
265
$
25,000
24
25
Financial Section
Consolidated Statements of Cash Flows
Shareholders' Equity
Common
stock
Capital
surplus
Valuation and translation
adjustments
Treasury
common
stock, at
cost
Retained
earnings
Millions of yen
Unrealized
Land
gain on revaluation Translation
adjustments
securities
reserve
Minority
interests
Total net
assets
$163,071
$160,602
$571,327
$(83,184)
$14,296
$(3,122)
918
$22,469
$846,398
–
0
–
31
–
–
–
–
31
–
–
–
(276)
–
–
–
–
(276)
–
–
(10,194)
–
–
–
–
–
(10,194)
–
–
25,000
–
–
–
–
–
25,000
–
–
837
–
(7,429)
(837)
1,000
(6,357)
(14,795)
163,071
160,602
586,980
(83,418)
6,867
(3,969)
(82)
16,112
846,173
–
(20)
(31)
153
–
–
–
–
(92)
–
–
–
(337)
–
–
–
–
(337)
–
–
(10,184)
–
–
–
–
–
(10,184)
–
–
265
–
–
–
–
–
265
–
–
–
–
(5,245)
2009
2008
–
$
(2,561)
(163)
(7,979)
2009
¥
615
¥ 4,233
$ 6,276
$ 43,194
3,929
3,733
40,092
38,092
60
37
612
378
291
117
2,969
1,194
(919)
(393)
(9,378)
(4,010)
Interest and dividend income
(76)
(73)
(776)
(745)
Interest expense
103
80
1,051
816
4,199
6,610
42,847
67,449
Increase in inventories
(1,025)
(7,618)
(10,459)
(77,735)
(Decrease) increase in trade notes and accounts payable
(6,582)
464
(67,163)
4,735
(666)
1,587
(6,796)
16,194
(72)
8,779
(735)
89,582
77
72
786
735
(103)
(80)
(1,051)
(816)
Income taxes paid
(1,923)
(2,272)
(19,622)
(23,184)
Net cash (used in) provided by operating activities
(2,021)
6,498
(20,622)
66,306
(2,427)
(2,306)
(24,765)
(23,531)
(429)
(507)
(4,378)
(5,173)
–
(1,095)
–
(11,173)
(0)
(331)
(0)
(3,378)
(473)
57
(4,827)
582
(3,330)
(4,183)
(33,980)
(42,684)
Increase in short-term bank loans
6,000
–
61,224
–
Acquisition of treasury stock, net
(24)
(23)
(245)
(235)
(998)
(999)
(10,184)
(10,194)
Dividends paid to minority shareholders
(21)
(32)
(214)
(327)
Other, net
(36)
–
(367)
–
Net cash provided by (used in) financing activities
4,919
(1,054)
50,194
(10,755)
Effect of exchange rate changes on cash and cash equivalents
(106)
(26)
(1,082)
(265)
Net (decrease) increase in cash and cash equivalents
(538)
1,233
(5,490)
12,582
11,333
10,099
115,643
103,051
¥10,794
¥11,333
$110,143
$115,643
2008
Operating activities
Income before income taxes and minority interests
Thousands of U.S. dollars (Note 3)
Balance at
March 31, 2007
Disposal of
treasury stock
Acquisition of
treasury stock
Dividends paid
Net income for
the year
Net changes in
items other
than those in
shareholders’
equity
Balance at
March 31, 2008
Disposal of
treasury stock
Acquisition of
treasury stock
Dividends paid
Net income for
the year
Net changes in
items other
than those in
shareholders’
equity
Balance at
March 31, 2009
Thousands of
Depreciation and amortization
Equity in losses of an unconsolidated subsidiary and affiliates
Impairment losses on other securities
Decrease in accrued retirement benefits for employees,
directors and corporate auditors
Decrease in trade notes and accounts receivable
Other, net
Interest and dividends received
Interest paid
Investing activities
$163,071
$160,582
$577,031
$(83,612)
$ 1,612
$(3,969)
$(2,643)
$15,949
$828,031
Purchases of property, plant and equipment
Purchases of intangible assets
Purchases of consolidated subsidiary’s stock accompanied by changes
in scope of consolidation (Note 4)
Purchases of consolidated subsidiary’s stocks from minority
shareholders
Other, net
Net cash used in investing activities
Financing activities
Dividends paid
Cash and cash equivalents at beginning of the year
Cash and cash equivalents at end of the year (Note 4)
26
27
Financial Section
Notes to Consolidated Financial Statements
1. Summary of Significant Accounting Policies
(a) Basis of presentation
ShinMaywa Industries, Ltd. (the “Company”) and its domestic consolidated subsidiaries maintain their books of account
in conformity with the financial accounting standards of Japan, and its overseas consolidated subsidiaries maintain their
books of account in conformity with those of their countries of domicile.
The accompanying consolidated financial statements have been compiled from the consolidated financial
statements prepared by the Company as required under the Financial Instruments and Exchange Act of Japan and,
(d) Foreign currency translation
All monetary assets and liabilities, regardless of whether they are short-term or long-term, denominated in foreign
currencies are translated into yen at the exchange rates prevailing as of the fiscal year end, and the resulting gain and
loss are included in income.
Balance sheet accounts and revenue and expense accounts of the overseas consolidated subsidiaries are translated
into yen at the exchange rates prevailing as of the fiscal year end, except for the components of net assets excluding
minority interests which are translated at their historical exchange rates. Translation adjustments are presented as a
component of valuation and translation adjustments and minority interests.
therefore, have been prepared in accordance with accounting principles generally accepted in Japan, which are different
in certain respects as to the application and disclosure requirements of International Financial Reporting Standards.
As permitted by the Financial Instruments and Exchange Act, amounts of less than one million yen have been
omitted. As a result, the totals shown in the accompanying consolidated financial statements (both in yen and in U.S.
dollars) do not necessarily agree with the sums of the individual amounts.
(b) Scope of Consolidation
The consolidated financial statements included the accounts of the Company and its 20 subsidiaries for the years ended
March 31, 2009 and 2008. Investments in one subsidiary and 2 affiliates are accounted for by the equity method for
the years ended March 31, 2009 and 2008.
(c)Principles of consolidation and accounting for investments in unconsolidated subsidiaries and affiliates
The accompanying consolidated financial statements include the accounts of the Company and significant companies
controlled directly or indirectly by the Company. Companies over which the Company exercises significant influence in
terms of their operating and financial policies have been included in the consolidated financial statements on an equity
basis. All significant intercompany balances and transactions have been eliminated in consolidation.
The balance sheet date of certain consolidated subsidiaries is December 31. Any significant differences in
intercompany accounts and transactions arising from intervening intercompany transactions during the period from
January 1 through March 31 have been adjusted, if necessary.
(e) Cash equivalents
For the purpose of the consolidated statements of cash flows, all highly liquid investments with a maturity of three
months or less when purchased are considered cash equivalents.
(f) Securities
Securities are generally classified into three categories: trading, held-to-maturity or other securities. Securities held by
the Company and its consolidated subsidiaries are all classified as other securities. Marketable securities classified as
other securities are carried at fair value with any changes in unrealized 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.
(g) Inventories
Inventories are stated principally at the lower of cost, cost being determined by the moving average method, or net
selling value.
(Change in accounting policy of the Company and its consolidated subsidiaries)
Effective the year ended March 31, 2009, the Company and its consolidated subsidiaries adopted the “Accounting
Standard for Measurement of Inventories” (Accounting Standards Board of Japan (“ASBJ”) Statement No. 9 issued on
July 5, 2006). This standard requires that inventories held for sale in the ordinary course of business be measured at the
lower of cost or net selling value, which is defined as the selling price less incremental estimated manufacturing costs
and estimated direct selling expenses.
As a result of this change, operating income and income before income taxes and minority interests decreased by
¥133 million ($1,357 thousand) for the year ended March 31, 2009 compared with the corresponding amounts which
would have been recorded under the previous method. The effect of this change on segment information is described
in Note 19.
28
29
Financial Section
(h) Property, plant and equipment
Depreciation of property, plant and equipment is computed by the declining-balance method, except that certain foreign
subsidiaries apply the straight-line method. The Company and its principal domestic consolidated subsidiaries apply
useful lives and residual value of the respective assets as prescribed by the Corporation Tax Law for accounting purposes.
Leased assets under lease transactions that do not transfer ownership of the leased assets to the lessee are
depreciated over the respective lease periods by the straight-line method to a nil residual value. Finance leases
commencing prior to April 1, 2008 that do not transfer ownership of the leased assets to the lessee are accounted for as
operating lease transactions as permitted by the revised accounting standard.
Property, plant and equipment and intangible fixed assets are reviewed for impairment whenever events or
changes in circumstances indicate that the carrying amount of an asset may not be recoverable. An impairment loss is
recognized if certain indicators of asset impairment exist and the book value of an asset exceeds the undiscounted sum
of future cash flows of the asset and is measured as the excess of the book value over the higher of (1) the fair market
value of the asset, net of disposition costs, and (2) the present value of future cash flows arising from ongoing utilization
of the asset and from disposal of the asset after use.
Business assets of the Company and its consolidated subsidiaries are grouped at its management accounting units
(Additional Information)
Effective the year ended March 31, 2009, the Company and its domestic consolidated subsidiaries reviewed the
utilization status of tangible fixed assets and changed the useful lives of certain assets based on the revised Corporation
Tax Law. As a result of this change, operating income and income before income taxes and minority interests decreased
by ¥109 million ($1,112 thousand) for the year ended March 31, 2009 compared with the corresponding amounts
which would have been recorded under the previous method. The effect of this change on segment information is
described in Note 19.
Effective the year ended March 31, 2008, depreciation of tangible fixed assets acquired on or before March 31,
2007, which have been depreciated to their respective allowable limits, is calculated by a method which depreciates the
residual value by the straight-line method over five years to memorandum value. As the result of this change, operating
income and income before income taxes and minority interests decreased by ¥153 million ($1,561 thousand) for the
year ended March 31, 2008 compared with the corresponding amounts which would had been recorded under the
previous method.
(i) Allowance for doubtful receivables
for impairment testing. However, the Company and its consolidated subsidiaries determine whether an asset is
An allowance for doubtful receivables is provided at an amount calculated based on historical experience, while specific
impaired on an individual asset basis for leased assets and when the business asset is deemed idle or it is scheduled to
allowances for doubtful receivables are provided for the estimated amounts considered to be uncollectible after
be disposed of.
reviewing individual collectibility.
(Changes in accounting policy of the Company and its consolidated subsidiaries)
Under the previous accounting standard, finance leases that transfer ownership of the leased assets to the lessee were
to be capitalized, however, other finance leases that do not transfer ownership to the lessee were permitted to be
accounted for as operating lease transactions if certain “as if capitalized” information was disclosed in the notes to the
lessee’s financial statements. However, effective the year ended March 31, 2009, the Company and its domestic
(j) Accrued bonuses for directors
Accrued bonuses for directors are provided for payments of bonuses to directors based on estimated amounts.
(k) Provision for product warranty
consolidated subsidiaries have adopted “Accounting Standard for Lease Transactions” (ASBJ Statement No. 13 originally
For payments of the after-sales service expense of the product and the repair cost of the completed work, provision for
issued by the First Committee of the Business Accounting Council on June 17, 1993 and revised on March 30, 2007)
product warranty is provided based on past experience.
and “Guidance on Accounting Standard for Lease Transactions” (ASBJ Guidance No. 16 originally issued by the
Accounting System Committee of the Japanese Institute of Certified Public Accountants on January 18, 1994 and
revised on March 30, 2007). The revised accounting standard requires that all finance lease transactions shall be
capitalized recognizing leased assets and lease obligations in the balance sheet. The Company and its consolidated
subsidiaries adopted the revised accounting standard and account for all finance lease arrangements which have been
entered into on or after April 1, 2008 as if they have been purchased or sold under ordinary buy or sell transactions.
(l) Provision for losses on construction contracts
With regard to construction contracts that have not yet been delivered and are with high probability of generating losses
at the end of the fiscal year, and where it is possible to reasonably estimate the amount of such losses, the estimated
amount of losses to be incurred is provided as provision for losses on construction contracts.
The effect of this change was immaterial for the year ended March 31, 2009.
Effective the year ended March 31, 2008, depreciation of tangible fixed assets acquired on or after April 1, 2007
have been calculated in accordance with the revised Corporation Tax Law. The application of the provisions of the
revised Corporation Tax Law had an immaterial effect on net income for the year ended March 31, 2008 compared with
the corresponding amount which would had been recorded if the previous method had been followed.
30
31
Financial Section
(m)Retirement benefits
Accrued retirement benefits for employees are provided principally at an amount calculated based on the retirement
(q) Derivative financial instruments
Derivatives are stated at fair value.
benefit obligation and the fair value of the pension plan assets at the balance sheet dates, as adjusted for 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 remaining years of service of the eligible employees.
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 13 years which falls within the average remaining years of service
of the eligible employees.
Prior service cost is amortized as incurred by the straight-line method over a period of 13 years which falls within
the average remaining years of service of the eligible employees.
Certain domestic consolidated subsidiaries have adopted a simplified method for calculating their retirement
benefit obligation which is permitted under the accounting standard for retirement benefits.
In addition, subject to the shareholders’ approval, directors and corporate auditors of the Company and its
(r) Revenue recognition
Revenues from production of STOL Search and Rescue Amphibians are recognized by the percentage-of-completion
method. Revenues from production of waste treatment facilities with contracted amounts exceeding ¥400 million and
production periods exceeding one year are also recognized by the percentage-of-completion method. Sales recognized
by the percentage-of-completion method amounted to ¥6,198 million ($63,245 thousand) and ¥7,445 million ($75,969
thousand) for the years ended March 31, 2009 and 2008, respectively.
(s) Consumption taxes
All amounts in the accompanying financial statements are stated exclusive of consumption tax. Non-deductible
consolidated subsidiaries are customarily entitled to lump-sum payments of retirement benefits. Provision for retirement
consumption taxes paid by a domestic consolidated subsidiary which can not be reduced from consumption taxes
benefits for those officers has been made at estimated amounts under the internal rules of the Company and its
received in accordance with the Consumption Tax Law of Japan are charged to income as incurred.
consolidated subsidiaries.
(t) Goodwill and negative goodwill
(n) Income taxes
Goodwill or negative goodwill, the differences between the cost and the underlying equity in net assets at the respective
Deferred tax assets and liabilities are determined based on the differences between financial reporting and the tax bases
dates of acquisition of the consolidated subsidiaries, is amortized over the period of 5 years except for the immaterial
of the assets and liabilities, and are measured using the enacted tax rates and laws which will be in effect when the
differences which are charged or credited to income as incurred.
differences are expected to reverse.
(o) Research and development costs
Research and development costs are charged to income as incurred and are included in cost of sales and selling, general
and administrative expenses.
(p) Amounts per share
2. Change in Accounting Policy
Effective the year ended March 31, 2009, the Company and its consolidated subsidiaries applied “Practical Solution on
Unification of Accounting Policies Applied to Foreign Subsidiaries for the Consolidated Financial Statements” (ASBJ
Practical Issues Task Force No.18 issued on May 17, 2006) and made necessary adjustments in the consolidation process.
The effect of this change was immaterial.
Net income per share is 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. Amounts per share of net
assets are computed based on net assets available for distribution to the shareholders and the number of shares of
common stock outstanding at the year end.
32
33
Financial Section
3. U.S. Dollar Amounts
5. Inventories
The translations of yen amounts into U.S. dollar amounts are included solely for the convenience of readers outside Japan
Inventories at March 31, 2009 and 2008 consisted of the following:
and have been made for both 2009 and 2008, as a matter of arithmetic computation only, at the rate of ¥98 = U.S.$1.00,
Millions of yen
the approximate rate of exchange in effect on March 31, 2009. The translations 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.
4. Supplementary Cash Flow Information
Thousands of
U.S. dollars
2009
2008
2009
2008
Finished goods
¥ 2,191
¥ 2,519
$ 22,357
$ 25,704
Work in process
28,753
27,989
293,398
285,602
Raw materials and supplies
11,253
10,340
114,827
105,510
211
562
2,153
5,735
¥42,409
¥41,411
$432,745
$422,561
Real estate for sale
Information related to cash and cash equivalents as of March 31, 2009 and 2008 is as follows:
A loss on devaluation of inventories in the amount of ¥281 million ($2,867 thousand) is recorded under cost of sales
Millions of yen
Cash and deposits
Time deposits with deposit terms of more than
three months
Cash and cash equivalents at end of the year
for the year ended March 31, 2009.
Thousands of
U.S. dollars
2009
2008
2009
2008
¥10,794
¥11,337
$110,143
$115,684
–
¥10,794
–
(4)
¥11,333
$110,143
6. Securities
(41)
$115,643
a)Information with respect to marketable securities classified as other securities as of March 31, 2009 and 2008 are as
follows:
March 31, 2009
The following shows a breakdown of assets and liabilities at the initial consolidation of the subsidiary initially
consolidated in the year ended March 31, 2008 through stock acquisition and the relationship between net expenditure and
Acquisition cost
cost for the acquisition of the subsidiary:
Thousands of
U.S. dollars
2008
$ 28,990
832
8,490
(1,269)
(12,949)
Long-term liabilities
(607)
(6,194)
Negative goodwill
(422)
(4,306)
Current liabilities
Acquisition cost of shares
1,374
14,020
Cash and cash equivalents of the acquired company
(279)
(2,847)
¥ 1,095
$ 11,173
Net expenditure for consolidated subsidiary stock
34
Carrying
amount
Unrealized gain
(loss)
Thousands of U.S. dollars
Securities whose fair value
exceeds their acquisition
cost:
Equity securities
¥ 2,841
Fixed assets
Unrealized gain
(loss)
Acquisition cost
Millions of yen
Millions of yen
Current assets
Carrying
amount
Bonds and debentures
Other securities
¥ 798
¥1,237
¥ 438
$ 8,143
$12,622
$ 4,469
–
–
–
–
–
–
–
–
–
–
–
–
¥ 798
¥1,237
¥ 438
$ 8,143
$12,622
$ 4,469
¥ 676
¥ 508
¥(167)
$ 6,898
$ 5,184
$(1,704)
–
–
–
–
–
–
Securities whose acquisition
cost exceeds their fair value:
Equity securities
Other securities
–
–
–
–
–
–
¥ 676
¥ 508
¥(167)
$ 6,898
$ 5,184
$(1,704)
¥1,475
¥1,745
¥ 270
$15,051
$17,806
$ 2,755
35
Financial Section
7. Short-Term Bank Loans and Long-Term Debt
March 31, 2008
Acquisition cost
Carrying
amount
Unrealized gain
(loss)
Acquisition cost
Millions of yen
Carrying
amount
Unrealized gain
(loss)
Thousands of U.S. dollars
0.92%.
Securities whose fair value
exceeds their acquisition
cost:
Equity securities
Long-term debt at March 31, 2009 and 2008 consisted of the following:
¥ 932
¥2,247
¥1,314
$ 9,510
$22,929
$13,408
–
–
–
–
–
–
Other securities
–
–
–
–
–
–
¥ 932
¥2,247
¥1,314
$ 9,510
$22,929
$13,408
Securities whose acquisition
cost exceeds their fair value:
Equity securities
¥ 625
¥ 458
¥(167)
$ 6,378
$ 4,673
$(1,704)
–
–
–
–
–
–
Other securities
–
–
–
–
–
–
¥ 625
¥ 458
¥(167)
$ 6,378
$ 4,673
$(1,704)
¥1,557
¥2,705
¥1,147
$15,888
$27,602
$11,704
The impairment losses associated with the fair market value determination of marketable securities classified as other
securities are ¥291 million ($2,969 thousand) and ¥117 million ($1,194 thousand) for the years ended March 31, 2009 and
2008, respectively.
Impairment losses are recorded for securities whose fair value has declined by 50% or more or for those which have
declined within a range of 30% or more, but less than 50% if the decline is deemed to be irrecoverable.
b) The aggregate book value of securities with no available fair value as of March 31, 2009 and 2008 are as follows:
Millions of yen
2009
Unlisted stocks
Short-term bank loans at March 31, 2009 represent loans on deeds from banks with the weighted-average interest rate of
¥625
Thousands
of U.S. dollars
2008
¥626
Millions of yen
Unsecured loans due through 2011 with
weighted-average interest rates of 1.11% at
March 31, 2009 and 1.27% at March 31, 2008
2009
2008
¥ 6,000
¥6,000
Lease obligations due through 2015
Less current portion
Thousands of
U.S. dollars
2009
$ 61,224
2008
$61,224
323
–
3,296
–
6,323
6,000
64,520
61,224
(2,000)
–
(20,408)
–
¥ 4,323
¥6,000
$ 44,112
$61,224
The aggregate annual maturities of long-term debt subsequent to March 31, 2009 are as follows:
Years ending March 31,
(Millions of yen)
2010
(Thousands of U.S. dollars)
¥2,078
$21,204
2011
2,073
21,153
2012
2,072
21,142
2013
68
694
2014
29
296
2015
0
0
Total
¥6,323
$64,520
Lease obligations of ¥78 million ($796 thousand) as of March 31, 2009 whose maturity dates are in the year ending
2009
2008
$6,378
$6,388
March 31, 2010 are included in the long-term debt of ¥4,323 million ($44,112 thousand) presented in the consolidated
balance sheet as of March 31, 2009.
8. Retirement Benefit Plans for Employees
The Company and its domestic consolidated subsidiaries have defined benefit plans, i.e., corporate pension plans, taxqualified pension plans and lump-sum payment plans, covering substantially all their employees. Eligible employees, upon
termination of employment, are entitled to lump-sum or annuity payments, the amounts of which are determined by
reference to their basic rates of pay, length of service, and the conditions under which termination occurs. The certain
consolidated subsidiaries participate in the multi-employer welfare pension fund plan.
36
37
Financial Section
The following table sets forth the funded and accrued status of the plans, and the amounts recognized in the
The assumptions used in the accounting for the above plans were as follows:
consolidated balance sheets at March 31, 2009 and 2008 for the Company’s and the consolidated subsidiaries’ defined
2009
benefit plans:
Millions of yen
2009
Retirement benefit obligation
Thousands of
U.S. dollars
2008
¥(23,976)
¥(24,519)
2009
2008
$(244,653)
$(250,194)
12,139
13,368
123,867
136,408
(11,836)
(11,150)
(120,776)
(113,776)
Unrecognized actuarial loss
4,586
2,863
46,796
29,214
Unrecognized prior service cost
(132)
(128)
(1,347)
(1,306)
(7,383)
(8,416)
(75,337)
(85,878)
698
432
7,122
4,408
¥ (8,081)
¥ (8,848)
$ (82,459)
$ (90,286)
Plan assets at fair value
Unfunded retirement benefit obligation
Net retirement benefit obligation
Prepaid pension cost
Accrued retirement benefits
2008
Discount rate
2.0%
2.0%
Expected rates of return on plan assets
1.4%
2.2%
Certain subsidiaries contributed ¥39 million ($398 thousand) to the multi-employer welfare pension fund plan for the
year ended March 31, 2009, which was not included in the table of retirement benefit expenses above. The funded status of
the multi-employer welfare pension fund plan as of March 31, 2009 and 2008 is as follows:
2009
2008
(Millions of yen)
Plan assets
Projected benefit obligation
recorded by pension fund
Unfunded status
2009
2008
¥ 83,238
¥97,361
$ 849,367
$ 993,480
104,244
99,244
1,063,714
1,012,694
¥(21,006)
¥(1,883)
$(214,347)
$ (19,214)
Certain domestic consolidated subsidiaries have adopted a simplified method for calculating their retirement benefit
The Company’s contribution percentage for the multi-employer welfare pension fund plan was 0.7% for the years
obligation which is permitted under the accounting standard for retirement benefits.
The components of retirement benefit expenses for the years ended March 31, 2009 and 2008 are outlined as follows:
March 31, 2009 and 2008. This percentage does not agree with the actual share percentage of the consolidated
subsidiaries to the pension plan.
Millions of yen
The unfunded status of the multi-employer welfare plan mainly represented past service liabilities of ¥20,380 million
Thousands of
U.S. dollars
2009
2008
Service cost
¥1,064
¥1,304
$10,857
$13,306
Interest cost
459
463
4,684
4,724
(182)
(284)
(1,857)
(2,898)
402
329
4,102
3,357
Expected return on plan assets
Amortization of actuarial loss
Amortization of prior service cost
Total
2009
($207,959 thousand) and unfunded amounts of ¥625 million ($6,378 thousand) as of March 31, 2009. The unfunded
2008
3
3
31
31
¥1,746
¥1,816
$17,816
$18,531
Retirement benefit expenses of certain domestic consolidated subsidiaries, which have been calculated by a simplified
method, are included in service cost in the above table.
In addition to the above, a consolidated subsidiary had recorded additional severance benefits of ¥104 million ($1,061
thousand) as a component of restructuring losses for the year ended March 31, 2008.
status as of March 31, 2008 mainly represented past service liabilities of ¥20,838 million ($212,633 thousand) offset by a
funded surplus amount of ¥18,955 million ($193,418 thousand). Past service liabilities are amortized with interest by the
straight-line method over a period of 20 years. Special retirement benefit expenses of ¥13 million ($133 thousand) and ¥5
million ($51 thousand) were charged to consolidated income for the years ended March 31, 2009 and 2008, respectively.
9. Income Taxes
Income taxes applicable to the Company and its domestic consolidated subsidiaries comprise corporation tax, inhabitants’
taxes and enterprise tax, which, in the aggregate, resulted in a statutory tax rate of approximately 40.6% for both 2009 and
2008. Income taxes of the overseas consolidated subsidiaries are based generally on the tax rates applicable in their
countries of incorporation.
38
39
Financial Section
The tax effects of temporary differences which gave rise to significant portions of the deferred tax assets and liabilities
10. Contingent Liabilities
at March 31, 2009 and 2008 are summarized as follows:
At March 31, 2009, the Company and its consolidated subsidiaries were contingently liable as follows:
Millions of yen
2009
Thousands of
U.S. dollars
2009
2008
695
$ 16,827
$ 7,092
2008
Deferred tax assets:
Net operating loss carryforwards
¥ 1,649
¥
As endorsers of trade notes
receivable endorsed to vendors
Millions of yen
Thousands
of U.S. dollars
¥24
$245
2,917
3,333
29,765
34,010
Accrued bonuses
790
1,094
8,061
11,163
Accrued retirement benefits for directors and
corporate auditors
273
336
2,786
3,429
Loss on impairment of fixed assets
356
360
3,633
3,673
Depreciation and amortization
359
334
3,663
3,408
Provision for losses on construction contracts
610
371
6,224
3,786
1,786
2,248
18,224
22,939
was revalued on March 31, 2000. The income tax effect of the difference between the book value and the revalued
amounts have been presented under liabilities as “Deferred income taxes on land revaluation reserve” and the remaining
Accrued retirement benefits for employees
Other
8,743
8,775
89,214
89,541
(1,491)
(1,811)
(15,214)
(18,480)
7,251
6,964
73,990
71,061
Deferred gain on sales of property, plant and
equipment
187
973
1,908
9,929
Unrealized gain on securities
110
466
1,122
4,755
Negative goodwill
274
351
2,796
3,582
3
3
31
31
Valuation allowance
Deferred tax liabilities:
Other
Net deferred tax assets
575
1,794
5,867
18,306
¥ 6,676
¥ 5,169
$ 68,122
$ 52,745
The effective tax rate reflected in the consolidated statement of income for the year ended March 31, 2009 differs
from the statutory tax rate for the following reasons:
11. Land Revaluation
Pursuant to the “Law Concerning the Revaluation of Land,” land used for a consolidated subsidiary’s business operations
balances have been presented under valuation and translation adjustments as “Land revaluation reserve” in the
accompanying consolidated balance sheets.
Revaluation of the land was determined based on the property tax assessment values in accordance with Paragraph 3,
Article 2 of the “Enforcement Ordinance Concerning Land Revaluation.”
The carrying value of the land after revaluation exceeded its fair value by ¥166 million ($1,694 thousand) and ¥220
million ($2,245 thousand) at March 31, 2009 and 2008, respectively.
12. Shareholders’ Equity
The Corporation Law of Japan provides that an amount equal to 10% of the amount to be distributed as distributions of
capital surplus (other than the capital reserve) and retained earnings (other than the legal reserve) be transferred to the
Statutory tax rate
2009
40.6 %
Expenses not deductible for tax purposes
20.1
Revenues not taxable for tax purposes
(2.1)
Per capital portion of inhabitants’ taxes
24.3
Changes in valuation allowance
27.0
Amortization of negative goodwill
(9.7)
Tax credit
(4.5)
Other
(2.5)
Effective tax rate
capital reserve and the legal reserve, respectively, until the sum of the capital reserve and the legal reserve equals 25% of the
common stock account. Such distributions can be made at any time by resolution of the shareholders, or by the Board of
Directors if certain conditions are met, but neither the capital reserve nor the legal reserve is available for distributions.
The company’s legal reserve was ¥2,128 million ($21,714 thousand) at March 31, 2009 and 2008.
93.2 %
As the difference between the statutory tax rate and the effective tax rate was less than 5% of the statutory tax rate,
the disclosure of the tax rate reconciliation has been omitted for the year ended March 31, 2008.
40
41
Financial Section
13. Selling, General and Administrative Expenses
Movements in treasury stock during the years ended March 31, 2009 and 2008 are summarized as follows:
Number of shares
Selling, general and administrative expenses consist primarily of the following for the year ended March 31, 2009 and 2008:
2009
March 31, 2008
Increase
Decrease
March 31, 2009
19,862,697
109,267
38,076
19,933,888
Treasury stock
Employees salaries and allowances
2008
March 31, 2007
Increase
Decrease
March 31, 2008
19,815,023
56,945
9,271
19,862,697
Treasury stock
Thousands
of U.S. dollars
Millions of yen
Dividends paid in the years ended March 31, 2009 and 2008 are as follows:
2009
2008
2009
2008
¥5,957
¥6,298
$60,786
$64,265
Provision of allowance for doubtful receivable
37
38
378
388
Accrued bonuses for directors
46
152
469
1,551
Retirement benefit expenses
436
462
4,449
4,714
Provision for directors’ and corporate auditors’
retirement benefits
188
212
1,918
2,163
Resolution
2009
Annual general meeting
Board of directors
of shareholders held on meeting held on October
June 26, 2008
28, 2008
Class of shares
Common stock
Common stock
2008
Board of directors
of shareholders held on meeting held on October
June 27, 2007
26, 2007
Common stock
Common stock
Impairment loss on fixed assets, a component of “other, net” included in other expanses in the consolidated statements of
income for the years ended March 31, 2009 and 2008 is as follows:
Total cash dividends
(Millions of yen)
¥ 499
¥ 499
¥ 499
¥ 499
(Thousands of
U.S. dollars)
$5,092
$5,092
$5,092
$5,092
(Millions of yen)
Location
Cash dividends
per share
(Yen)
¥
(U.S. dollars)
$ 0.05
5
¥
5
$ 0.05
¥
5
¥
$ 0.05
5
Nishinomiya-city,
Hyogo
$ 0.05
Record date
March 31, 2008
September 30, 2008
March 31, 2007
September 30, 2007
Effective date
June 27, 2008
December 1, 2008
June 28, 2007
December 3, 2007
Dividends whose record date falls in the year ended March 31, 2009 or 2008, but whose effective date falls in the
following year are as follows:
Location
Yawata-city, Kyoto
and other
Resolution
Class of shares
14. Impairment Loss on Fixed Assets
2009
2008
of shareholders to be held
on June 25, 2009
of shareholders held
on June 26, 2008
Common stock
Common stock
Usage
Maintenance and
service for special
purpose trucks
Usage
2009
Category
Land, buildings and
structures, machinery,
equipment and vehicles
¥39
$398
(Millions of yen)
(Thousands of
U.S. dollars)
Category
Management of parking Buildings and structures,
facilities
machinery, equipment,
vehicle and other assets
(Thousands of
U.S. dollars)
2008
¥30
$306
Equipment for maintenance and service for special purpose trucks were written down to the recoverable amounts and
impairment loss was recorded for the year ended March 31, 2009 since they were to be sold. The recoverable amounts of
these assets were measured at net selling value, which was computed at expected selling value less estimated disposal costs.
A consolidated subsidiary recognized impairment losses for management of parking facilities for the year ended March
Total cash dividends
(Millions of yen)
¥ 498
¥ 499
31, 2008 because operating loss had occurred continuously due to low utilization of these facilities. The carrying amount of
$5,082
$5,092
those assets was written down to a nil recoverable value and impairment losses were recorded.
¥
¥
Cash dividends per share
(Yen)
42
5
5
(U.S. dollars)
$ 0.05
Record date
March 31, 2009
March 31, 2008
Effective date
June 26, 2009
June 27, 2008
$ 0.05
43
Financial Section
Breakdown of the impairment loss by asset type for the years ended March 31, 2009 and 2008 are as follows:
The following pro forma amounts represent the acquisition costs, accumulated depreciation, impairment of assets and
net book value of the leased assets as of March 31, 2009 and 2008, which would have been reflected in the
(Millions of yen)
Land
Buildings and structures
Machinery, equipment and vehicles
Other assets
Total
(Thousands of
U.S. dollars)
consolidated balance sheets if finance lease accounting had been applied to the finance leases currently accounted for as
2009
2008
2009
2008
¥22
¥ –
$224
$ –
13
10
133
102
3
3
31
31
–
16
–
163
¥39
¥30
$398
$306
operating leases:
March 31, 2009
Acquisition
costs
Accumulated
impairment
loss
Net book
value
Acquisition
costs
(Millions of yen)
Machinery,
equipment
and vehicles
Other assets
15. Research and Development Expenses
Accumulated
depreciation
Total
¥2,049
¥1,222
¥9
¥817
$20,908
Other assets
Total
2009
(Yen)
Net income
2008
(U.S. dollars)
¥ 0.27
¥ 24.53
$0.00
$0.25
797.49
814.56
8.14
8.31
–
–
–
–
Net assets:
Basic
Diluted
Diluted net income per share has not been presented because there were no potentially dilutive shares at March 31,
2009 and 2008.
$8,337
26
–
10
367
265
–
102
¥1,249
¥9
¥828
$21,286
$12,745
$92
$8,449
Accumulated
depreciation
Accumulated
impairment
loss
Net book
value
Acquisition
costs
(Millions of yen)
Machinery,
equipment
and vehicles
Year ended March 31,
$92
36
Acquisition
costs
2008
$12,469
March 31, 2008
thousand), respectively.
2009
Net book
value
¥2,086
years ended March 31, 2009 and 2008 amounted to ¥1,737 million ($17,724 thousand) and ¥2,007 million ($20,480
Amounts per share are summarized as follows:
Accumulated
impairment
loss
Research and development expenses included in manufacturing cost and selling, general and administrative expenses for the
16. Amounts per Share
Accumulated
depreciation
¥2,794
¥1,453
Accumulated
depreciation
Accumulated
impairment
loss
Net book
value
¥37
¥1,304
$28,510
$14,827
$378
$13,306
65
36
–
28
663
367
–
286
¥2,860
¥1,490
¥37
¥1,333
$29,184
$15,204
$378
$13,602
Lease payments relating to finance leases accounted for as operating leases in the accompanying consolidated
financial statements amounted to ¥572 million ($5,837 thousand) and ¥629 million ($6,418 thousand) for the years
ended March 31, 2009 and 2008, respectively. Depreciation of the leased assets computed by the straight-line method
over the respective lease terms and the interest portion included in the lease payments amounted to ¥510 million
($5,204 thousand) and ¥22 million ($224 thousand), respectively, for the year ended March 31, 2009, and ¥600 million
($6,122 thousand) and ¥30 million ($306 thousand), respectively, for the year ended March 31, 2008. Loss on
impairment of leased assets amounted to ¥9 million ($92 thousand) for the year ended March 31, 2008. Reversal of
reserve for loss on impairment of finance leases amounted to ¥8 million ($82 thousand) and ¥10 million ($102 thousand)
for the years ended March 31, 2009 and 2008, respectively.
Future minimum lease payments subsequent to March 31, 2009 for finance lease transactions accounted for as
17. Leases
operating leases are summarized as follows:
Year ending March 31,
a) Lessees’ Accounting
1. Finance leases which commencing on or before March 31, 2008 that do not transfer ownership of the leased assets to
lessee
44
2010
2011 and thereafter
Total
(Millions of yen)
¥365
$3,724
507
5,173
¥872
$8,898
45
Financial Section
Reserve for loss on impairment of finance leases accounted for as operating leases which is included in other longterm liabilities, amounted to ¥2 million ($20 thousand) and ¥11 million ($112 thousand) at March 31, 2009 and 2008,
Future minimum lease income subsequent to March 31, 2009 from finance leases accounted for as operating leases is
summarized as follows:
respectively.
Future minimum lease payments subsequent to March 31, 2009 for operating leases are summarized as follows:
(Millions of yen)
2010
(Millions of yen)
2010
¥33
2011 and thereafter
Total
2011 and thereafter
Total
$337
19
194
¥53
$541
¥4
$41
4
41
¥9
$92
Future minimum lease income include related interest.
2. Finance leases that do not transfer ownership of the leased assets to the lessee
18. Derivatives
With respect to the contents of the leased assets, these are mainly production facilities for aircraft business and
The Company is exposed to market risk from fluctuation in foreign currency exchange rates and enters into derivative
vehicles for operational use as tangible fixed assets.
instruments in order to reduce such risk. The Company does not hold or issue derivative financial instruments for the
Depreciation method of the leased assets are described in Note 1 (h).
purpose of speculative trading.
b) Lessors’ Accounting
The forward foreign exchange contracts have aimed to decrease fluctuation of earnings and cash flow by the change
in the exchange rates in usual operating transaction, the export of the product, the purchase of materials etc. Therefore, the
Finance leases commencing on or before March 31, 2008 that do not transfer ownership of the leased assets to lessee
forward foreign exchange contracts have been made reasonably in accordance with internal policies within the range of
The following amounts represent the acquisition costs, accumulated depreciation and net book value of the leased
assets relating to finance leases accounted for as operating leases at March 31, 2009 and 2008:
Acquisition costs
Net book value
counterparty’s failure to perform according to the terms and conditions of contract.
Acquisition costs
(Millions of yen)
Machinery,
equipment, vehicles
¥19
¥14
Accumulated
depreciation
Because the counterparties to those derivative contracts are limited to major domestic financial institutions with high
Net book value
¥4
Derivatives are subject to market risk and credit risk. Market risk is the exposure created by potential fluctuations in
market conditions, including in changes in foreign exchange rates. Credit risk is the possibility that a loss may result from a
March 31, 2009
Accumulated
depreciation
existing assets and liabilities in foreign currencies, the payments scheduled in the future, and the forecasted income.
$194
$143
credit ratings, the Company do not anticipate any losses arising credit risk.
Derivative transactions have been made in accordance with internal policies which regulate the authorization and
$41
credit limit amounts, and the accounting section has managed it collectively.
March 31, 2008
Acquisition costs
Accumulated
depreciation
Net book value
(Millions of yen)
Machinery,
equipment, vehicles
¥28
¥20
Acquisition costs
Accumulated
depreciation
Net book value
¥7
$286
$204
$71
Lease income relating to finance leases accounted for as operating leases in the accompanying consolidated financial
statements amounted to ¥4 million ($41 thousand) and ¥10 million ($102 thousand) for the years ended March 31, 2009
and 2008, respectively. Depreciation of the assets leased under finance leases accounted for as operating leases amounted
to ¥3 million ($31 thousand) and ¥5 million ($51 thousand) for the years ended March 31, 2009 and 2008, respectively.
46
47
Financial Section
19. Segment Information
The contract or notional amounts of the derivative financial instruments held at March 31, 2009 and 2008 are
The Company and consolidated subsidiaries are primarily engaged in the manufacture and sales of transportation equipment
March 31, 2009
and machinery, and also conduct operations in the construction and other services sectors.
Contracts due
Within one year
After
one year
Fair
value
(Loss)
Gain
The business segment information of the Company and consolidated subsidiaries for the years ended March 31, 2009
and 2008 are summarized as follows:
(Millions of yen)
Forward foreign exchange contracts:
To sell foreign currencies
U.S. dollars
To buy foreign currencies
Singaporean dollars
¥ 2,403
¥–
¥ 2,482
¥ (79)
¥
¥–
¥
¥
76
77
0
¥ (78)
Total
U.S. dollars
To buy foreign currencies
Singaporean dollars
$24,520
$–
$25,327
$(806)
$
$–
$
$
776
786
0
$(796)
Total
March 31, 2008
Contracts due
Within one year
After
one year
Fair
value
Gain
(Millions of yen)
U.S. dollars
¥ 1,976
¥–
¥ 1,794
48
$20,163
$–
$18,306
Aircraft
Special
purpose trucks
Industrial
machinery
Construction
(Millions of yen)
I. Net sales, operating expenses, operating income (loss)
Net sales:
Customers
¥24,613
¥44,483
¥47,175
¥10,858
Inter-segment
–
239
24
737
24,613
44,723
47,199
11,596
Operating
expenses
25,140
44,301
43,944
11,519
Operating income
(loss)
¥ (526)
¥ 422
¥ 3,255
¥
77
II. Assets, depreciation, impairment loss on fixed assets, capital expenditures
Assets
¥48,439
¥29,766
¥39,252
¥10,464
Depreciation
1,383
1,099
1,025
65
Impairment loss
on fixed assets
–
39
–
–
Capital
expenditures
953
1,037
805
9
Eliminations
and corporate
Other
Consolidated
¥ 646
1,768
2,414
¥
–
(2,770)
(2,770)
¥127,777
–
127,777
2,193
(288)
126,809
¥ 221
¥(2,481)
¥
¥2,609
165
¥ 9,855
284
¥140,388
4,022
–
–
39
99
155
968
3,061
¥ 181
U.S. dollars
Business segment
$1,847
I. Net sales, operating expenses, operating income (loss)
Net sales:
Customers
$251,153
$453,908
$481,378
$110,796
$ 6,592
Inter-segment
–
2,439
245
7,520
18,041
251,153
456,357
481,622
118,327
24,633
Operating
expenses
256,531
452,051
448,408
117,541
22,378
Operating income
(loss)
$ (5,367)
$ 4,306
$ 33,214
$
786
$ 2,255
Assets
$494,276
$303,735
$400,531
$106,776
$26,622
Depreciation
14,112
11,214
10,459
663
1,684
Impairment loss
on fixed assets
–
398
–
–
–
Capital
expenditures
9,724
10,582
8,214
92
1,010
$
–
(28,265)
(28,265)
$1,303,847
–
1,303,847
(2,939)
1,293,969
$(25,316)
$
$100,561
2,898
$1,432,531
41,041
–
1,582
9,878
398
31,235
49
Financial Section
As described in Note 1(h), effective the year ended March 31, 2009, the Company and its domestic consolidated
Business segment
subsidiaries reviewed the utilization status of tangible fixed assets and changed the useful lives of certain assets based on the
revised Corporation Tax Law. As a result of this change, operating expenses of “Special purpose trucks,” “Industrial
Aircraft
Special
purpose trucks
Industrial
machinery
Construction
(Millions of yen)
I. Net sales, operating expenses, operating income
Net sales:
Customers
¥28,572
¥50,110
¥50,529
¥ 9,039
Inter-segment
–
299
34
574
28,572
50,409
50,563
9,613
Operating
expenses
27,679
47,340
47,465
9,455
Operating income
¥ 893
¥ 3,069
¥ 3,097
¥ 158
Assets
¥44,204
¥36,255
¥39,867
¥10,591
Depreciation
1,344
937
1,026
69
Impairment loss
on fixed assets
–
–
30
–
Capital
expenditures
373
636
607
6
Eliminations
and corporate
Other
Consolidated
thousand), ¥6 million ($61 thousand), ¥10 million ($102 thousand) and ¥1 million ($10 thousand), respectively, and the
respective operating income decreased by the same amounts, and operating expenses of “Aircraft” for the year ended
¥ 707
1,753
2,461
¥
–
(2,661)
(2,661)
¥138,959
–
138,959
2,223
¥ 237
(213)
¥(2,448)
133,951
¥ 5,008
¥2,574
153
¥10,713
296
¥144,206
3,827
–
–
30
123
205
1,952
March 31, 2009 increased by ¥33 million ($337 thousand) and the respective operating loss increased by the same amounts
compared with the corresponding amounts which would have recorded under the previous method.
The disclosure of geographic segment information for the years ended March 31, 2009 and 2008 has been omitted
because more than 90% of total consolidated sales were recorded in Japan and more than 90% of total assets were located
in Japan.
Overseas sales, which include export sales of the Company and its domestic consolidated subsidiaries and sales (other
than exports to Japan) of the foreign consolidated subsidiaries, for the years ended March 31, 2009 and 2008 are
Asia
North America
Other areas
Total
(Millions of yen)
I. Net sales, operating expenses, operating income
Net sales:
Customers
$291,551
$511,327
$515,602
$ 92,235
Inter-segment
–
3,051
347
5,857
291,551
514,378
515,949
98,092
Operating
expenses
282,439
483,061
484,337
96,480
Operating income
$ 9,112
$ 31,316
$ 31,602
$ 1,612
Assets
$451,061
$369,949
$406,806
$108,071
Depreciation
13,714
9,561
10,469
704
Impairment loss
on fixed assets
–
–
306
–
Capital
expenditures
3,806
6,490
6,194
61
machinery,” “Other” and “Eliminations and corporate” for the year ended March 31, 2009 increased by ¥58 million ($592
Overseas sales
¥ 3,282
–
Consolidated net sales
$ 7,214
17,888
25,112
$
–
(27,153)
(27,153)
$1,417,949
–
1,417,949
22,684
$ 2,418
(2,173)
$(24,980)
1,366,847
$ 51,102
$26,265
1,561
$109,316
3,020
$1,471,490
39,051
–
–
306
1,255
2,092
19,918
¥ 10,819
¥ 6,070
¥
20,172
–
–
127,777
Overseas sales
$33,490
$110,398
$61,939
$ 205,837
–
–
–
1,303,847
2.6%
8.5%
4.7%
15.8%
Overseas sales as a percentage of
consolidated sales
Asia
North America
Other areas
Total
(Millions of yen)
Overseas sales
¥ 4,043
¥ 11,707
¥ 7,695
¥
23,446
–
–
–
138,959
$41,255
$119,459
$78,520
$ 239,245
–
–
–
1,417,949
2.9%
8.4%
5.6%
16.9%
As described in Note 1(g), effective the year ended March 31, 2009, the Company and its consolidated subsidiaries
adopted a new accounting standard for measurement of inventories. As a result of this change, operating expenses of
”Aircraft” for the year ended March 31, 2009 increased by ¥133 million ($1,357 thousand) and the respective operating loss
Overseas sales
Overseas sales as a percentage of
consolidated sales
increased by the same amounts compared with the corresponding amounts which would have been recorded under the
previous method.
50
51
Company Overview
(As of March 31, 2009)
Company Profile
20. Subsequent Event
The following appropriations of retained earnings of the Company, which have not been reflected in the accompanying
consolidated financial statements for the year ended March 31, 2009, was proposed upon resolution at the meeting of the
Board of Directors held on May 21, 2009 and is subject to approval at a shareholders’ meeting to be held on June 25, 2009:
Cash dividends (¥5.00 = U.S.$0.05per share)
(Millions of yen)
¥498
$5,082
“Contributing to Society
through Excellent Technologies
as well as Superior
Products and Services”
Company Name
Head Office
1-1 Shinmeiwa-cho, Takarazuka-shi, Hyogo 665-8550, Japan
Paid-in Capital
15,981,967,991 yen
Founded
November 5, 1949
President
Tadashi Kaneki
Category of Business
Transportation Equipment
Number of Employees
Consolidated 3,883 / Non-consolidated 2,010
Number of Affiliated Companies
23
Breakdown of Shareholders
(1)
19,933,888 shares
Financial Institutions 21.14%
(42)
25,305,791 shares
Stock Information
Total Number of Shares Authorized
300,000,000 shares
Total Number of Shares Issued
119,727,565 shares
Number of Shares per Unit
1,000 shares
Number of Shareholders
10,459
Total Number of
Shares Issued:
(40)
384,537 shares
119,727,565 shares
Number of
Shareholders:
10,459
(119)
16,958,377 shares
Foreign Institutions and Individuals 22.18%
(128)
26,551,917 shares
(10,129)
30,593,055 shares
Major Shareholders
CONTENTS
Profile
1
At a Glance
2
3
Featured Interview
4
8
15
Disclaimer
Caution Concerning Forward-Looking Statements
This annual report contains forward-looking statements—that is,
statements related to future, not past, events. Such statements
Order
Name of Shareholders
Number of Shares
Held
1
SANSHIN CO., LTD.
9,293,065
2
Japan Trustee Services Bank, Ltd. (Trust Account)
8,273,000
3
The Master Trust Bank of Japan, Ltd. (Trust Account)
5,681,000
9.31
8.29
(1)
19,863,697 shares
5.69
are in accordance with management’s present plans, strategies
4
Japan Trustee Services Bank, Ltd. (Trust Account 4G)
4,308,000
and outlook, based on management’s judgment in light of
5
Hitachi, Ltd.
4,000,337
Financial
4.32 Institutions 19.82%
(45)
23,727,840
shares
4.01
information currently available. These forward-looking
6
ShinMaywa Employees' Stock Ownership
3,327,471
3.33
statements involve potential risks and uncertainties, and
7
State Street Bank and Trust Company 505019
8
Trust & Custody Services Bank, Ltd.
(Securities Investment Trust Account)
9
CBNYDFA International Cap Value Portfolio
10
The Chase Manhattan Bank, N.A. London Secs Lending
Omnibus Account
ShinMaywa offers no guarantee as to their accuracy and
reliability. It should be noted that the Company’s actual
18
Financial Section
20
forward-looking statements herein, owing to various factors.
Report of Independent Auditors
21
the industry, market demand, exchange rates, other social and
Company Overview
53
performance may differ materially from that expressed in the
These factors include future economic conditions, competition in
Total
2,979,000
(10,737)
119,727,565
2,647,000
shares
100%
2,597,000
2,428,000
economic circumstances and contingencies.
Note: The Company holds 19,933,888 treasury stocks, but it has been excluded from the above list of major shareholders.
52
Shareholding Ratio
(%)
2.99
2.65
(53)
805,928 shares
(116)
2.60
16,118,316 shares
Foreign2.43
Institutions and Individuals 24.87%
(137)
29,770,579 shares
(10,385)
29,441,205 shares
53
ANNUAL REPORT 2009
ShinMaywa
ShinMaywa
A N N U A L RE P O RT 2 0 0 9
ShinMaywa
ShinMaywa
09.09
ShinMaywa
ShinMaywa
www.shinmaywa.co.jp
ShinMaywa

ShinMaywa Industries, Ltd.

Transcription

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