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1
REVIEW OF OPERATIONS
CONTENTS
Ⅰ. SUMMARY OF NIPPON SEIKI. GROUP. FOR F.Y.2004/ 2005
● Instrument Sales Automotive instrument sales increased owing to an increase in sales for Japanese, European, and Asian makers. Motorcycle instrument sales decreased owing to a decrease in sales for European makers, but Motorcycle instrument sales increased thanks to Japanese makers, North and South American makers and Asian makers. Overall, instruments sales for the year totaled ¥95,163 million, a 10.8% increase from the previous fiscal year.
● Liquid Crystal Display Sales LCD panel and module sales decreased by 15.8%, to ¥21,805 million from the previous fiscal year due to bad sales of reflective color LCD’s for mobile-telecommunications equipment and to a decrease in orders for them.
● Sales of Other Products Sales of other products totaled ¥19,206 million, an 8.4% increase from the previous fiscal year, due to a sales increase in resin materials, car sales, and computer services.
Ⅰ SUMMARY FOR THE YEAR - REVIEW OF OPERATIONS 1 Ⅱ CONSOLIDATED BUSINESS RESULTS 2 Ⅲ NON-CONSOLIDATED FINANCIAL HIGHLIGHTS 3 Ⅳ OUTLINE OF THE COMPANY 4 Ⅴ PROFILE OF THE GROUP COMPANIES 6 Ⅵ OWNERSHIP OF THE COMPANY’S SHARE 7 Ⅶ BOARD OF DIRECTORS AND CORPORATE AUDITORS 9 Ⅷ CONSOLIDATED FINANCIAL STATEMENTS 10 Ⅸ OTHER INFORMATION 24
● Consumer Products and Electronic Device Sales Sales increased by 22.2% to ¥11,561 million, due to an increase in orders for the start in production of mounting boards for plasma display and so-called “photo fine player”(a device that can stock many digital images).
In conclusion, the company’s consolidated business operations for fiscal year2005, ending March 31, 2005, resulted in annual sales of ¥147,737 million, up 6.3% from the previous year. At the same time, ordinary income for the year increased by 62.0%, to ¥13,719 million, and net income increased by 48.0%, to ¥7,253 million, respectively.
2
1.92.9
4.9
7.2
0
1
2
3
4
5
6
7
8
01/02 02/03 03/04 04/05
15.8
9.1
13.6
5.7
19.1
48.0
17.3
9.1
23.1
5.9
21.9
54.9
17.7
9.4
25.9
5.8
23.1
56.8
19.2
11.5
21.8
6.4
28.4
60.2
0.0
20.0
40.0
60.0
80.0
100.0
120.0
140.0
160.0
01/02 02/03 03/04 04/05
AutomotiveInstruments
MotorcycleInstruments
OtherInstruments
L.C.D.Products
Consumer-useProducts
Miscellaneous
-as of March 31, 2005
1. Consolidated Progress in Sales 2. Consolidated Progress in Net Income
● Consolidated Sales by business segment (¥ million)
Business Segment Annual sales in F.Y. 2004/2005
Increase (Decrease)
Annual sales in F.Y. 2003/2004
Instrument clusters for automobiles, motorcycles, agricultural/construction machines and boats
95,163 10.8% 85,922
LCD Products 21,805 △15.8% 25,901
Consumer-use products 11,561 22.2% 9,464
Other businesses 19,206 8.4% 17,718
Total 147,737 6.3% 139,007
● Consolidated Financial Highlights F.Y.2004 /2005
ending March 31 2005
F.Y.2003 /2004 ending March 31
2004
F.Y.2002 /2003 ending March 31
2003
F.Y.2001 /2002 ending March 31
2002
Sales (¥ million) 147,737 139,007 132,410 111,685
Ordinary income (¥ million) 13,719 8,467 6,655 4,849
Net income (¥ million) 7,253 4,902 2,927 1,957
Total assets (¥ million) 118,350 114,075 108,903 98,636
Net assets (¥ million) 53,483 42,955 38,272 39,681
Net income per share (¥) 128.32 85.60 48.80 34.62
Net assets per share (¥) 924.46 796.24 708.69 701.91
Consolidated sales for the fiscal year ending March 31, 2005, increased by 6.3% to ¥147,737 million; ordinary
income increased by 62.0% to ¥ 13,719 million, and net income increased by 48.0% to ¥ 7,253 million.
Ⅱ. Consolidated Business Results
In billions of Yen In billions of Yen
139.0
111.6
132.4
147.7
3
1.41.7
3.1
5.0
0
1
2
3
4
5
6
01/02 02/03 03/04 04/05
3.0
8.1
13.6
4.1
17.9
28.9
3.5
8.3
23.1
4.5
17.6
33.8
3.8
8.8
25.9
5.0
16.9
33.7
3.7
10.1
21.8
5.7
18.3
38.8
0.0
20.0
40.0
60.0
80.0
100.0
01/02 02/03 03/04 04/05
AutomotiveInstruments
MotorcycleInstruments
Other Instruments
L.C.D.Products
Consumer-useProducts
Miscellaneous
-as of March 31, 2005 1. Progress in Sales 2. Progress in Net Income
3.Progress in business results
Fiscal Year F.Y. 2004/2005 ending March 31 2005
F.Y. 2003/2004 ending March 31 2004
F.Y. 2002/2003 ending March 31 2003
F.Y. 2001/2002 Ending March 31 2002
Sales (¥ million) 98,620 94,405 91,098 76,041
Ordinary income (¥ million) 8,439 4,472 3,145 2,988
Net income (¥ million) 5,016 3,122 1,723 1,483
Net income per share (¥) 89.49 55.06 28.87 26.23
Dividend per share (¥) 15.00 10.00 8.00 8.00
Total assets (¥million) 95,373 93,282 89,041 77,740
Shareholders’ Equity (¥million) 47,324 38,750 35,130 37,338
Common stock capital (¥ million) 12,982 12,495 12,495 12,495
Equity ratio (%) 49.6 41.5 39.5 48.0
N.B.
※ Net income per share is calculated by the average number of all issued- shares in the F./Y.
Ⅲ.Non-Consolidated FINANCIAL HIGHLIGHTS
In billions of Yen 94.4
76.0
91.0
98.6 In billions of Yen
4
-as of March 31, 2005-
Nippon Seiki Co., Ltd.
● Incorporated : December 24, 1946
● Common stock capital : 12,982,041,236 Yen
● Main products
・Automotive instruments
・Heads Up Display※1
・Motorcycle instruments
・Instruments for agricultural and construction machines
and boats
・Sensors for automobiles
・Liquid crystal display panels for:
-Instruments, clocks, audio appliances, telecommunication
equipment, office/household equipment etc.
・Color liquid crystal display modules
・Applied products of organic electroluminescence
・Hybrid IC
・Remote controllers for air conditioners and household
appliances
・Control panels for household equipment
・System controllers for air conditioner equipment
・Educational card players
・LED printer heads for plotters
・Control panels for office equipment
・Diver computers
・Automatic liquid filling and packing machines
for the food industry
・Aftermarket car products
・Lettering sheets
※1The product, "Head Up Display(HUD)," uses projection technology to display vehicle information on the windshield.
● Head office and Factory
2-34, Higashi-Zaoh 2-chome, Nagaoka-shi, Niigata
940-8580 JAPAN
● Takami Division
2-8, Higashi-Takami 2-chome, Nagaoka-shi, Niigata
940-0006 JAPAN
● Research & Development Center
190-1,Fujihashi 1-chome,Nagaoka-shi, Niigata
940-2141 JAPAN
● Special Machine Business Operation Division
2-16, Jyoka 3-chome, Nagaoka-shi, Niigata
940-0021 JAPAN
● Branches
Tokyo, Hong Kong
● Offices
Utsunomiya, Ageo, Hamamatsu, Nagoya, Suzuka,
Osaka, Mizushima, Kumamoto
● Number of Employees
1,632
Ⅳ. OUTLINE OF THE COMPANY
5
Worldwide Network
● North America ● South America ・New Sabina Industries, Inc. / Sabina, Ohio, U.S.A. ・Nippon Seiki Do Brasil Ltda. / Manaus, Brazil
・N.S. International, Ltd. / Troy, Michigan U.S.A.
● Europe ・UK-NSI Co., Ltd. / Redditch, Worcs., U.K.
・Nippon Seiki (Europe)B.V. / Hoofddorp, Netherlands
● Asia ・Thai Nippon Seiki Co., Ltd. / Chonburi, Thailand
・Thai Matto NS Co., Ltd. / Chonburi, Thailand
・JNS Instruments Ltd. / Haryana, India
・Tatung Precise Meter Co., Ltd. / Taipei, Taiwan R.O.C.
・Cixi Zhengtong Erectronics Co.,Ltd./ Cixi Zhengtong,China
・Nantong NS Advantech Co.,Ltd./ Nantong, China
・Hong Kong Ek Chor Nissei Co., Ltd. / Hong Kong, China
・Hong Kong Nippon Seiki Co., Ltd. / Hong Kong, China
・Shanghai Nissei Display System Co., Ltd./ Shanghai, China
・PT. Indonesia Nippon Seiki / Banten, Indonesia
・Dongguan Nissei Electronics Co., Ltd. / Dongguan, China
Nippon Seiki Do Brasil Ltda.
Shanghai Nissei
Display System Co.,Ltd.
UK-NSI Co., Ltd. N.S.International, Ltd.
New Sabina Industries, Inc.
Tatung Precise Meter
Co., Ltd. Hong Kong Ek Chor
Nissei Co., Ltd.
Nippon Seiki Co., Ltd.
JNS Instruments Ltd
Hong Kong Nippon Seiki
Co., Ltd. Thai Nippon Seiki Co., Ltd.
Thai Matto NS Co., Ltd.
Nippon Seiki (Europe) B.V.
Dongguan Nissei Electronics
Co., Ltd. PT.Indonesia Nippon Seiki
Cixi Zhengtong Electronics
Co.,Ltd Nantong NS Advantech
Co.,Ltd
6
-as of March 31, 2005-
Nippon Seiki Group is composed of 22 consolidated subsidiaries and 3 affiliated companies. The main business of the group is responsible for the manufacture and sale of instrument clusters for automobiles, motorcycles, agricultural / construction machines and boats, and the manufacture and sale of Liquid Crystal Display panels and modules, consumer-products and other products.NS Group also has businesses related to transport, and research & development connected with the above products. NS Group is also involved in software development, car sales and other services.
Details of each company in the group and its main activities are as follows. ●Consolidated subsidiaries
Name of Company voting rights equity ratio Main activities Main trading with
the parent NS Advantech Co., Ltd. 85.6 Manufacturing of automotive and motorcycle
clusters and gauges / Plastic injection molding /Compounding, colouring of Plastics and Trading
Selling products and component parts
NS Electronics Co., Ltd. 100.0 Manufacturing of electronic subassemblies for instrument clusters and remote controllers
Selling products and component parts
YNS Inc. 80.0 Manufacturing and sales of automotive instrument clusters and peripheral systems
Purchasing component parts
NS Computer Service Co., Ltd. 91.9
Computer services, software development and office automation equipment sales
Software development
Nissei Service Co., Ltd. 100.0 Transport and car sales Packing and transporting products
Honda Car Sales Nagaoka Co., Ltd. 100.0
Honda car dealer
Car sales
Yamato Honda Co., Ltd.
100.0 Honda car dealer Car sales
NS Motors Co.,Ltd. 100.0 An imported car dealer Car sales NS Body Service Co., Ltd 100.0 Repairing of car bodies Repairing of cars Pretech. N Co., Ltd. 48.8 Manufacturing components of automotive
and motorcycle instrument clusters Selling products and component parts
UK-NSI Co., Ltd. 100.0
Manufacturing of automotive and motorcycle instrument clusters
Purchasing component parts
Nippon Seiki (Europe) B.V. 100.0 Sales of products made by Nippon Seiki Group in the European market
Purchasing products
New Sabina Industries, Inc. 100.0 Manufacturing and sales of automotive and motorcycle instrument clusters
Purchasing products and component parts
NS International, Ltd.
86.4 Sales of products made by Nippon Seiki Group in the North American market
Purchasing products
Nippon Seiki Do Brasil Ltda. 100.0 Manufacturing and sales of motorcycle instrument clusters
Purchasing products and component parts
Thai Nippon Seiki Co., Ltd 55.4 Manufacturing and sales of automotive and motorcycle instrument clusters
Purchasing component parts and production equipment
Thai Matto NS Co., Ltd. 83.5 Compounding and colouring of plastics and trading
None
PT. Indonesia Nippon Seiki 70.0 Manufacturing and sales of motorcycle instrument clusters
Purchasing component parts and production equipment
Hong Kong Nippon Seiki Co., Ltd. 100.0 Manufacturing and sales of control panels for office equipment and remote controllers for air conditioners and household equipment
Buying and selling products
Dongguan Nissei Electronics Co.,Ltd
100.0 Manufacturing of control panels for office equipment and remote controllers for air conditioners and household equipment
Buying Products
Ⅴ.PROFILE OF THE GROUP COMPANIES
7
●Consolidated subsidiaries
Name of Company Voting rights equity ratio Main activities Main trading with
the parent Shanghai Nissei Display System Co., Ltd.
80.0 Manufacturing and sales of automotive and motorcycle instrument clusters
Purchasing component parts and production equipment
Hong Kong Ek Chor Nissei Co., Ltd.
90.0 Investment and holding company Investment in China on behalf of the parent
●Affiliated Companies by equity method
Name of Company Voting rights equity ratio Main activities Main Trading with
Nippon Seiki Adeon Co., Ltd. 50.0 Manufacturing and sales of Organic EL Selling products
Kashiwazaki Taxi Co., Ltd. 27.7 Taxicab operator None
Tatung Precise Meter Co., Ltd. 49.0 Manufacturing and sales of automotive and motorcycle instruments and peripheral systems
Purchasing products and component parts
.
3,781 shareholders in total hold the company’s common shares. Details of the issued shares and shareholders are as follows. ● Total number of authorized shares : 220,000,000 shares ● Total number of issued shares : 57,605,752 shares ● Major shareholders ( 1000 shares)
Name Number of shares (Shareholder’s equity ratio)
Number of shares held by the Company
(Shareholder’s equity ratio)
Honda Motor Co., Ltd. 3,753(6.52%) 1,675(0.18%)
Yasuo Nagai 3,379(5.87%) N/A
The Bank of Tokyo-Mitsubishi, Ltd. 2,391(4.15%) N/A
Japan Trustee Services Bank,Ltd. 2,347(4.07%) N/A
Shareholding association of Nippon Seiki Employees 2,321(4.03%) N/A
The Master Trust Bank of Japan, Ltd. 2,211(3.84%) N/A
The Hokuetsu Bank, Ltd. 2,022(3.51%) 1,572(0.69%)
The Daishi Bank, Ltd. 1,568(2.72%) 240 (0.06%)
Atsuo Nagai 1,397(2.43%) N/A
Yamaha Motor Co., Ltd. 1,217(2.11%) 171(0.06%)
Ⅵ. OWNERSHIP OF THE COMPANY’S SHARE
8
● Distribution Ratio by type of Shareholder
0.78%10.65%
38.57%
15.42%
34.58%Banks(38.57%)
SecurityCompanies(0.78%)
OtherCorporations(15.42%)
Foreign Corporationsetc.(10.65%)
Individualsetc.(34.58%)
● Distribution Ratio by number of shares of total capital
0.57% 7.74%
2.79%
11.73%
30.44%
46.73%
Under 1,000shares(0.57%)
Over 1,000shares(7.74%)
Over 5,000shares(2.79%)
Over 10,000shares(11.73%)
Over 100,000shares(30.44%)
Over 1,000,000shares(46.73%)
9
-as of June, 2005-
President and Representative Director Directors
Shoji Nagai Ryuichi Yamazaki
Senior Managing and Takeyoshi Ikarashi
Representative Director Kazuyoshi Kishi Takashi Nagatsuka Norio Yakubo
Senior Managing Directors Yoshinobu Kimura Kazuo Nirasawa Takashi Komagata Managing Directors Yoshiki Takebe
Michio Hirokawa Soichi Fujita
Mitsuhiro Kawamata Akira Nakamura
Hitoshi Yoshikawa Hirotoshi Takada Yoshiaki Yazawa Hiroshi Araki Corporate Auditors
Yasuo Nagai
Kimiyuki Saito Tadao Endo Youichi Sakurai
Ⅶ.BOARD OF DIRECTORS AND CORPORATE AUDITORS
10
Consolidated Balance Sheets
March 31, 2005
March 31, 2004
ASSETS (Thousands of Japanese Yen) (Thousands of Japanese Yen)
Current Assets Cash and bank deposits (Note 8) Notes receivable Accounts receivable Inventories Deferred tax assets (Note 4) Other current assets Allowance for doubtful accounts
¥ 6,263,865 1,726,914
32,271,580 18,239,841 1,549,428 2,913,462
( 206,717
)
¥ 8,948,536 2,091,412
29,076,869 16,620,743 1,121,829 2,706,077
( 48,177
)
CURRENT ASSETS-TOTAL 62,758,369 60,517,292
Fixed Assets
Tangible Fixed Assets (Note 3) Buildings and Structures Machinery, Equipment and Vehicles Tools, Jigs and Fixtures Land Construction in Progress
10,135,740 9,369,057 3,904,812
13,304,709 1,545,957
10,032,919 9,053,945 3,269,446
13,892,904 860,950
Total 38,260,276 37,110,166
Intangible Fixed Assets Consolidation adjustment account - 245,421 Other intangible fixed assets 1,230,730 1,060,652
Total 1,230,730 1,306,073
Investment and Other Assets Investment securities (Note 3) Deferred tax assets (Note 4) Other investment and assets Allowance for doubtful accounts
13,813,166 1,160,802
894,319 ( 75,433 )
12,446,497 1,567,567
907,544 ( 74,559
)
Total 15,792,854 14,847,049
FIXED ASSETS-TOTAL 55,283,861 53,263,289
Deferred Assets
Research and Development expenses 308,349 295,188
TOTAL ASSETS ¥ 118,350,581 ¥ 114,075,770
Ⅷ. CONSOLIDATED FINANCIAL STATEMENTS of NIPPON SEIKI Co.,Ltd.
11
March 31, 2005
March 31, 2004
LIABILITIES (Thousands of Japanese Yen) (Thousands of Japanese Yen)
Current Liabilities Notes payable Accounts payable Short-term loans payable (Note 3) Accrued income taxes Accrued bonuses to employees Other current liabilities
¥ 3,748,918 25,395,091 8,373,590 3,404,304 1,666,484 6,379,083
¥ 3,246,318 22,918,807 16,922,688
895,483 1,444,731 5,021,110
CURRENT LIABILITIES-TOTAL 48,967,474 50,449,140
Long-term Liabilities Bonds Long-term loans payable (Note 3) Deferred tax liability (Note 4) Allowance for employees’ retirement benefits (Note 5) Allowance for directors’ retirement benefits Consolidation adjustment account Other long-term liabilities
3,782,000 3,979,464
649,044 1,886,582
593,102 28,719
1,093,239
7,500,000 4,712,624
459,377 2,460,004
665,870 -
1,374,288
LONG-TERM LIABILITIES-TOTAL 12,012,152 17,172,165
TOTAL LIABILITIES 60,979,627 67,621,306
MINORITY INTERESTS 3,886,963 3,499,373
SHAREHOLDERS’ EQUITY (Note 6)
Common stock 12,982,041 12,495,488
Additional paid-in capital 5,505,316 4,220,626
Retained earnings 33,504,480 27,185,627
Unrealized gain on investment securities 3,333,066 2,630,447
Adjustment from foreign currency translation ( 1,784,136 ) ( 1,672,621 )
Treasury stock ( 56,777 ) ( 1,904,477 )
TOTAL SHAREHOLDERS’ EQUITY 53,483,990 42,955,090 TOTAL LIABILITIES, MINORITY INTERESTS AND
SHAREHOLDERS’ EQUITY ¥ 118,350,581 ¥ 114,075,770
See notes to consolidated financial statements.
12
Consolidated Statements of Income
Year ended March 31, 2005
Year ended March 31, 2004
(Thousands of Japanese Yen) (Thousands of Japanese Yen)
Sales ¥ 147,737,711 ¥ 139,007,170
Cost of Sales 119,720,906 115,246,783
GROSS PROFIT 28,016,804 23,760,387 Selling, General and Administrative Expenses
Packing and Transportation Salaries Provision for doubtful accounts Provision for accrued bonuses to employees Provision for accrued retirement allowance Provision for accrued directors’ retirement allowance Depreciation Other expenses
3,199,464 5,293,857
157,131 318,846 176,894 60,541
581,500 5,430,864
2,943,231 4,803,635
40,081 305,785 389,168 65,004
562,169 5,374,538
Total 15,219,098 14,483,615
OPERATING INCOME 12,797,705 9,276,771 Non Operating Income
Interest income Dividend income Profits on sales of securities Profits on foreign exchange Other non operating income
157,504 116,970 -
454,553 482,055
45,446 239,057
72 -
322,776 Total 1,211,084 607,352
Non Operating Expenses Interest expense Bond issue costs Loss on foreign exchange Equity in loss of affiliates Other non operating expenses
136,762 - -
133,440 19,315
255,632 185,917 924,072 41,644 9,590
Total 289,518 1,416,858
ORDINARY INCOME 13,719,270 8,467,266 Special Income
Gain on sales of fixed assets Profits from termination of defined benefit pension plans Other special income
213,836 -
23,001
39,601 581,307 -
Total 236,837 620,909 Special Loss
Loss on sales of fixed assets Loss on disposal of fixed assets Impairment loss Loss on earthquakes Loss on investment security revaluation Amortization of transition difference of retirement allowance
due to change of accounting standard (Note 5) Loss on termination of defined benefit pension plans Provision for accrued director’s retirement allowance Other special loss
32,900 213,378 551,331 270,623 19,447
67,488
174,570 28,681 16,150
8,094 180,333 - -
85,479
277,899 -
34,032 49,557
Total 1,374,572 635,397
INCOME BEFORE TAXES 12,581,536 8,452,778
Income taxes (Note 4) 4,416,292 2,744,328
Minority Interests in Income 911,305 805,797
NET INCOME ¥ 7,253,938 ¥ 4,902,652
See notes to consolidated financial statements.
13
Consolidated Statements of Retained Earnings
Year ended March 31, 2005
Year ended March 31, 2004
(Thousands of Japanese Yen) (Thousands of Japanese Yen)
Retained earnings at beginning ¥ 27,185,627 ¥ 23,009,432
Increase in retained earnings : Net income 7,253,938 4,902,652
Total 7,253,938 4,902,652
Decrease in retained earnings : Dividends Bonus to directors [Bonus to corporate auditors included] Decrease in retained earnings due to increase of
additional consolidated subsidiary Decrease due to change in ownership ratio of
consolidated subsidiary Employee welfare fund
592,581 296,781
[ 17,572
6,689
29,540 9,493
]
428,655 275,036
[ 15,905
22,764
-
]
Total 935,085 726,457
Retained earnings at end ¥ 33,504,480 ¥ 27,185,627
See notes to consolidated financial statements.
14
Consolidated Statements of Cash Flows
Year ended March 31, 2005
Year ended March 31, 2004 Cash flows from operating activities: (Thousands of Japanese Yen) (Thousands of Japanese Yen)
Income before income taxes and minority interests Depreciation and amortization Impairment loss Amortization of consolidation adjustment account Accrued bonuses to employees, net of payment Employees’ retirement benefits, net of payments Directors’ retirement benefits, net of payment Allowance for doubtful accounts Interest and dividend income Interest expense Gain on foreign exchange Equity in loss of affiliates Loss (gain) on sales of marketable securities Loss on sales or disposal of property, net Loss on earthquakes Loss on investment securities revaluation Decrease (increase) in accounts and notes receivable Increase in inventories Increase (decrease) in accounts and notes payable Bonuses to directors Other, net
¥ 12,581,536 5,338,750
551,331 37,715
221,753 ( 571,855 ( 72,768
157,131 ( 274,475
136,762 ( 80,623
133,440 ( 10,203
32,442 11,710 30,167
( 2,714,257 ( 1,672,992
2,929,139 ( 315,880
424,927
) ) ) ) ) ) ) )
¥ 8,452,778 5,481,228 -
88,922 ( 152,707 ( 3,321,545
46,654 39,725
( 284,503 255,632
( 46,824 41,644
( 72 148,826 -
97,679 1,022,375
( 534,119 ( 3,660,921 ( 290,200
2,218,167
) ) ) ) ) ) ) )
Sub-total 16,873,751 9,602,740 Interest and dividend received Interest paid Income taxes paid
313,457 ( 136,536 ( 2,202,440
) )
285,878 ( 254,852 ( 3,622,347
) )
Cash provided by operating activities 14,848,232 6,011,419
Cash flows from investing activities: Purchase of properties Proceeds from sale of properties Purchase of investment securities Proceeds from sales of investment securities Other, net
( 6,591,812 510,291
( 607,728 21,785
( 876,290
) ) )
( 5,986,790 1,320,264
( 1,545,184 8,668
( 836,162
) ) )
Cash used in investing activities ( 7,543,754 ) ( 7,039,205 )
Cash flows from financing activities: Increase (decrease) in short-term loans Proceeds from long-term loans Repayments of long-term loans Proceeds from bond issued Proceeds from stock issued to minority shareholders Cash dividend paid Cash dividend paid to minority shareholders Other, net
( 8,583,625 1,528,387
( 2,281,107 -
48,847 ( 592,850 ( 137,705 ( 191,741
) ) ) ) )
1,361,184 72,800
( 2,480,749 7,500,000 -
( 429,039 ( 121,396 ( 35,875
) ) ) )
Cash provided by (used in) financing activities ( 10,209,795 ) 5,866,923
Effect of exchange rate changes on cash and cash equivalents 48,119 69,575 Net (decrease) increase in cash and cash equivalents ( 2,857,198 ) 4,908,713 Cash and cash equivalents at beginning of year 8,879,216 3,786,620 Increase in cash and cash equivalents due to
inclusion of subsidiaries in consolidation 176,120 183,882
Cash and cash equivalents at end of year (Note 8) ¥ 6,198,138 ¥ 8,879,216
See notes to consolidated financial statements.
15
Notes to Consolidated Financial Statements
Nippon Seiki Co., Ltd. and Consolidated Subsidiaries
March 31, 2005
1. Summary of Significant Accounting Policies
(a) Basis of presentation
Nippon Seiki Co., Ltd. ( the "Company" ) and its domestic subsidiaries maintain their accounting records and prepare their
financial statements in accordance with accounting principles and practices generally accepted in Japan, and foreign
subsidiaries maintain their books of account in conformity with those of their countries of domicile. The accompanying
consolidated financial statements are prepared on the basis of accounting principles generally accepted in Japan, which are
different in certain respects as to application and disclosure requirements of International Financial Reporting Standards
and are compiled from the consolidated financial statements prepared by the Company as required by the Securities and
Exchange Law of Japan. For the purposes of this document, certain reclassifications have been made to present the
accompanying consolidated financial statements in a format that is familiar to readers outside Japan.
(b) Basis of consolidation and accounting for investments in affiliates
The consolidated financial statements include the accounts of the Company and its 22 significant subsidiaries (the
“Companies”) at March 31, 2005, except for certain subsidiaries whose gross assets, net sales, and net income were not
significant in the aggregate in relation to the comparable figure in the consolidated financial statements. All significant
inter-company balances and transactions have been eliminated in consolidation.
Investments in three affiliates have been accounted for by the equity method. Investments in two affiliates were stated at
cost because the effect of application of the equity method would be immaterial.
One domestic subsidiary is consolidated on the basis of fiscal period ending February 28, and eight foreign subsidiaries are
consolidated on the basis of fiscal period ending December 31. Significant transactions, which occurred during the period
between these fiscal year-ends and March 31, are adjusted in the accompanying consolidated financial statements.
All assets and liabilities of the subsidiaries are revaluated at fair values on acquisition and the excess of cost over
underlying net assets at the date of acquisition is amortized over a period of five years on a straight-line basis.
(c) Foreign currency translation
Monetary assets and liabilities of the Company and its domestic subsidiaries denominated in foreign currencies are
translated at the current exchange rates in effect at each balance-sheet date. Resulting gains and losses are included in net
profit or loss for the period.
Assets and liabilities of the foreign consolidated subsidiaries are translated at the current exchange rates in effect at each
balance-sheet date and revenue and expense accounts are translated at the average rate of exchange in effect during the
year. The Company has presented translation adjustments as a component of shareholders’ equity and minority interests in
consolidated financial statements.
(d) Cash and cash equivalents
All highly liquid investments, generally with a maturity of three months or less when purchases, which are readily
convertible into known amounts of cash and are so near maturity that they represent only an insignificant risk of any
change in value attributable to changes in interest rates, are cash equivalents.
16
(e) Securities
Equity securities not classified as trading securities are stated at fair value and the changes in fair value, net of applicable
income taxes, have been directly included in shareholders’ equity as unrealized gain on investment securities.
Other securities, for which fair values are unavailable, are stated at cost as determined by the moving average method.
(f) Inventories
Finished goods and Work in process;
Instruments Stated at cost by the weighted average method
Others Stated at cost by the identified method Materials Stated at cost by the weighted average method Supplies Stated at cost by the most recent purchase price method
(g) Depreciation and Amortization
Depreciation of tangible assets is mainly calculated by the declining-balance method. Useful lives of the respective assets
are based on the Corporation Tax Law.
Depreciation of intangible assets is mainly calculated by the straight-line method. Useful lives of the respective assets are
based on the Corporation Tax Law.
(h) Allowance for doubtful accounts
The allowance for doubtful accounts is provided at an amount sufficient to cover possible losses on the collection of
receivables. For the Company and its consolidated subsidiaries, the amount of the allowance is determined based on (1) past
write-off experience, and (2) an estimated amount for probable doubtful accounts based on a review of the collectibility of
individual receivables.
(i) Accrued bonuses to employees
Accrued bonuses are recognized based on expected total expenditure at the end of fiscal year.
(j) Pension and retirement benefits
Employees’ retirement benefits
Effective the year ended March 31, 2001, the Company and its domestic subsidiaries adopted a new accounting standard for
retirement benefits. In accordance with this standard, allowance for employees’ retirement benefits has been provided based
on the projected retirement benefit obligation and the pension fund assets.
The transition difference from the initial adoption of the new accounting standard is being amortized by the straight-line
method over 5 years.
Past service costs are amortized by the straight-line method over 10 years which are shorter than the average remaining
years of service of the 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 10 years which are shorter than the average remaining years of service of the employees.
Directors’ retirement benefits
The Company and seven domestic subsidiaries provide 100% allowance for retirement benefits for the directors under their
internal rules.
17
(k) Leases
Finance leases for which ownership does not transfer to lessees are principally accounted for as ordinary rental
transactions.
(l) Income taxes
Deferred income taxes are recognized by the asset and liability method. Under this method, deferred assets and liabilities
are determined based on the difference between financial reporting and the tax basis of the assets and liabilities and are
measured using the enacted tax rates and laws which will be in effect when the differences are expected to reverse.
(m) Appropriation of retained earnings
Under the Commercial Code of Japan, the appropriation of retained earnings with respect to a given financial period is
made by resolution of the shareholders at a general meeting held subsequent to the close of such financial period. The
accounts for that period do not, therefore, reflect such appropriation.
2. Changes in Accounting Policies
Accounting Standard for Impairment of Fixed Assets
As permitted by “Accounting Standard for Impairment of Fixed Assets” (“Opinion Concerning Establishment of Accounting
Standard for Impairment of Fixed Assets” (Business Accounting Council Report, August 9, 2002)) and “Guidelines on
Implementation of Accounting Standard for Impairment of Fixed Assets” (Guidelines on Implementation of Business
Accounting Standard No. 6, October 31, 2003) effective the fiscal year beginning on April 1, 2004, the impairment
accounting in accordance with the above standard and guidelines were applied. The effect of this change on operations was
to decrease income before income taxes by ¥551,331 thousand.
3. Short-term Loans and Long-term Debt
The weighted average interest rate of short-term loans payable to banks was 0.8% at March 31, 2005.
Long-term debt as of March 31, 2005 consisted of the following:
Thousands of Yen Loans from banks and insurance companies, due through 2013 At average rates of 1.1% and 1.0% for current and non-current portion, respectively ¥ 6,044,574 Less: Current portion 2,065,109 ¥ 3,979,464
Aggregate annual maturities of long-term debt subsequent to March 31, 2005 are as follows:
Year ending March 31,
Thousands of Yen
2006 ¥ 2,065,109 2007 1,537,550 2008 1,130,694 2009 906,000 2010 and thereafter 405,219 ¥ 6,044,574
18
The assets mortgaged for short-term and long-term loans payable as of March 31, 2005 were as follows:
Thousands of Yen Property, plant and equipment, net of accumulated depreciation ¥ 5,073,572 Securities 4,779,300
4. Income Taxes
Income taxes applicable to the Company and its domestic subsidiaries comprised corporation tax, inhabitant’s taxes and
enterprise tax which, in aggregate, resulted in a statutory tax rate of approximately 40% for the year ended March 31,2005.
Income taxes of the foreign subsidiaries are based generally on the tax rates applicable in their countries of incorporation.
The major components of deferred tax assets and liabilities as of March 31, 2005 were as follows;
Thousands of Yen Deferred tax assets
Accrued bonuses ¥ 674,764 Retirement benefits 956,649 Accrued pension contribution 763,552 Unrealized gains on inventories, property and equipment Loss on devaluation of unused property
615,393 222,738
Others 2,269,915 Valuation allowance for deferred tax assets
5,503,012 (59,541)
Total deferred tax assets 5,443,471 Deferred tax liabilities
Reserve for special depreciation ( 157,053) Unrealized gains on investment securities ( 2,627,428) Undistributed earnings of foreign subsidiaries ( 493,419) Others ( 104,383)
Total deferred tax liabilities ( 3,382,285) Net deferred tax assets ¥ 2,061,186
5. Retirement Benefits
The Company and its consolidated subsidiaries have mainly defined contribution plans.
The Company and certain consolidated subsidiaries also have defined benefit pension plans, welfare pension fund plans,
tax-qualified pension plans and lump-sum payment plans. The amount of benefits under the plans is determined on the
basis of years of service at the time of termination of employment.
On December 1, 2004, one consolidated subsidiary transferred defined benefit pension plans and tax-qualified pension to
defined contribution plans.
The following table sets forth the funded and accrued status for the plans, and the amounts recognized in the consolidated
balance sheet as of March 31, 2005 for the Company and consolidated subsidiaries’ defined benefit plans;
Thousands of Yen Projected benefit obligation ¥ 1,958,575 Plan assets at fair value ( 16,306) 1,942,268 Unrecognized actuarial gain or loss 55,686 Allowance for employees’ retirement benefits ¥ 1,886,582
19
The effect of a transfer from the welfare pension fund plan, tax-qualified pension plan and lump-sum payment plan to
defined contribution plans was as follows;
Thousands of Yen Decrease in retirement benefit liabilities ¥ 1,251,174 Unrecognized transitional difference at the accounting change ( 23,005) Unrecognized actuarial difference ( 63,887) Unrecognized past service cost ( 41,357) Transfer of plan assets ( 387,346) Decrease in allowance for retirement benefit ¥ 735,577
The assets yet to be transferred to defined contribution plans at March 31, 2005 amounted to ¥1,882,488 thousands and
were included in accounts payable-other and long-term payables.
The components of retirement benefit expenses for the year ended March 31, 2005 were outlined as follows;
Thousands of Yen Service cost ¥ 222,996 Interest cost 52,711 Expected return on plan assets ( 2,797) Amortization of past service cost 4,772 Amortization of actuarial gain or loss 28,699 Amortization of net retirement obligation at transition 67,488 Net retirement benefit expenses ¥ 373,870
The amount of cost recognized for the contribution to the plans for the year ended March 31, 2005 was ¥585,384 thousands.
The assumptions used in accounting for the above plans are as follows:
Discount Rate 2.0%-2.5%
Expected return rate on plan assets 1.0%
Amortization period of past service cost 10 years (straight-line method)
Amortization period of actuarial gain or loss 10 years (straight-line method)
Amortization period of net retirement benefits obligation at transition 5 years (straight-line method)
6. Shareholders' Equity
In accordance with provisions of the Commercial Code of Japan, the Company has provided a legal reserve as an
appropriation of retained earnings. The Code provides that neither additional paid-in capital nor the legal reserve is
available for dividends, but both may be used to reduce or eliminate a deficit by resolution of the shareholders or may be
transferred to stated capital (ordinary share / common stock ) by resolution of the Board of Directors.
7. Amounts per Share
Net income per share shown below is based on the weighted average number of shares of common stock outstanding during
the year.
Net assets per share is based on the number of shares of common stock outstanding at each balance sheet date.
Net income per share and net assets per share for the year ended or as of March 31, 2005 were as follows;
Net income per share ¥ 128.32 Net income per share, fully diluted ¥ 112.61 Net assets per share ¥ 924.46
20
8. Supplementary Cash Flow Information
The following table represents a reconciliation of cash and cash equivalents as of March 31, 2005 and 2004.
Thousands of Yen 2005 2004 Cash and bank deposit ¥ 6,263,858 ¥ 8,948,536 Time deposit with a maturity of more than three months ( 65,720 ) ( 69,320 ) Cash and cash equivalents ¥ 6,198,138 ¥ 8,879,216
9. Derivatives
The Companies, which operate globally, are exposed to market risk arising from fluctuations in foreign currency exchange
rates and enter into derivative financial instruments to the purpose of reducing such risk. The Companies also enter into
interest rate swap agreements as a means of managing their interest rate exposure. The Companies do not hold or issue
derivatives for speculative or dealing purposes. The counterparties to these derivatives are limited to authentic financial
institutions, the Companies do not anticipate any losses arising from credit risk.
All derivative transactions are entered into to hedge foreign currency exposures incorporated within business. Accordingly,
market risk in these derivatives is basically offset by opposite movements in the value of hedged assets or liabilities.
Derivative transactions entered into by the Companies have been made in accordance with the Companies’ policies. The
execution and control of derivatives are controlled by the Corporate Finance Department.
Fair Value of Derivative Financial Instruments:
The fair value of the Companies’ derivative financial instruments at March 31, 2005 and 2004 were as follows:
Interest-Related Transactions
Thousands of Yen
As of March 31, 2005 Notional Amount Fair Value
Unrealized Gain/Loss
Interest rate swaps Receive/fixed and pay/floating - - -
Thousands of Yen
As of March 31, 2004 Notional Amount Fair Value
Unrealized Gain/Loss
Interest rate swaps Receive/fixed and pay/floating ¥125,000 ¥245 ¥245
21
10. Segment Information
The Companies primary business activities include (1) Instrument clusters for automobiles, motorcycles,
agricultural/construction machines and boats (“Instrument”), (2) LCD products, (3) Consumer-use products and (4) Others.
A summary of net sales, operating costs and expenses, and operating income by segment of business activities for the years
ended March 31, 2005 and 2004 were as follows:
Thousands of Yen
Year ended March 31, 2005 Instruments LCD Products Consumer-Use
Products Others Total Elimination
and Corporate Consolidated
Total
Sales Unaffiliated customers....... ¥ 95,163,692 ¥ 21,805,658 ¥ 11,561,571 ¥ 19,206,788 ¥ 147,737,711 ¥ - ¥ 147,737,711 Intersegment ...................... - - - 7,895,965 7,895,965 (7,895,965) -
Total sales ................................ 95,163,692 21,805,658 11,561,571 27,102,753 155,633,676 (7,895,965) 147,737,711 Operating costs and expenses................................. 83,745,366 21,642,094 11,209,846 26,338,210 142,935,518 (7,995,512) 134,940,005
Operating income.................... ¥ 11,418,325 ¥ 163,564 ¥ 351,725 ¥ 764,542 ¥ 12,698,157 ¥ 99,547 ¥ 12,797,705
Total assets .............................. ¥ 61,655,716 ¥ 12,340,903 ¥ 9,391,465 ¥ 18,733,232 ¥ 102,121,318 ¥ 16,229,262 ¥ 118,350,581 Depreciation and amortization.......................... ¥ 3,544,408 ¥ 668,348 ¥ 418,548 ¥ 412,199 ¥ 5,043,504 ¥ 71,772 ¥ 5,115,277
Impairment loss...................... ¥ - ¥ - ¥ - ¥ - ¥ - ¥ 551,331 ¥ 551,331 Capital expenditure................ ¥ 5,605,377 ¥ 45,353 ¥ 813,385 ¥ 1,033,860 ¥ 7,497,976 ¥ 18,730 ¥ 7,516,706
Thousands of Yen
Year ended March 31, 2004 Instruments LCD Products Consumer-Use
Products Others Total Elimination
and Corporate Consolidated
Total
Sales Unaffiliated customers....... ¥ 85,922,733 ¥ 25,901,039 ¥ 9,464,927 ¥ 17,718,469 ¥ 139,007,170 ¥ - ¥ 139,007,170 Intersegment ...................... - - - 7,134,878 7,134,878 (7,134,878) -
Total sales ................................ 85,922,733 25,901,039 9,464,927 24,853,348 146,142,049 (7,134,878) 139,007,170 Operating costs and expenses................................. 77,337,530 25,711,557 9,166,589 24,590,823 136,806,500 (7,076,101) 129,730,399
Operating income.................... ¥ 8,585,203 ¥ 189,482 ¥ 298,338 ¥ 262,524 ¥ 9,335,548 ¥ (58,777) ¥ 9,276,771
Total assets .............................. ¥ 56,635,602 ¥ 14,340,253 ¥ 7,432,371 ¥ 16,960,541 ¥ 95,368,769 ¥ 18,707,001 ¥ 114,075,770 Depreciation and amortization.......................... ¥ 3,529,297 ¥ 791,929 ¥ 307,223 ¥ 408,505 ¥ 5,036,956 ¥ 75,069 ¥ 5,112,025
Capital expenditure................ ¥ 4,695,096 ¥ 311,888 ¥ 617,525 ¥ 656,644 ¥ 6,281,155 ¥ 1,409 ¥ 6,282,564
22
Geographic Information
Thousands of Yen
Year ended March 31, 2005 Japan Americas Europe Asia Total Elimination
and Corporate Consolidated
Total
Sales Unaffiliated customers....... ¥ 93,987,931 ¥ 25,007,008 ¥ 9,995,804 ¥ 18,746,966 ¥ 147,737,711 ¥ - ¥ 147,737,711 Intersegment ...................... 29,290,261 107,279 785 3,826,330 33,224,657 (33,224,657) -
Total sales ................................ 123,278,193 25,114,287 9,996,590 22,573,296 180,962,368 (33,224,657) 147,737,711 Operating costs and expenses................................. 114,326,513 24,104,405 9,542,732 20,290,559 168,264,210 (33,324,205) 134,940,005
Operating income.................... ¥ 8,951,680 ¥ 1,009,882 ¥ 453,858 ¥ 2,282,737 ¥ 12,698,157 ¥ 99,547 ¥ 12,797,705
Total assets .............................. ¥ 87,045,478 ¥ 11,471,944 ¥ 5,746,120 ¥ 13,902,866 ¥ 118,166,410 ¥ 184,170 ¥ 118,350,581
Thousands of Yen
Year ended March 31, 2004 Japan Americas Europe Asia Total Elimination
and Corporate Consolidated
Total
Sales Unaffiliated customers....... ¥ 94,046,320 ¥ 23,932,733 ¥ 10,207,529 ¥ 10,820,587 ¥ 139,007,170 ¥ - ¥ 139,007,170 Intersegment ...................... 23,468,484 667,141 1,484 5,520,573 29,657,683 (29,657,683) -
Total sales ................................ 117,514,804 24,599,875 10,209,014 16,341,160 168,664,854 (29,657,683) 139,007,170 Operating costs and expenses................................. 111,305,791 23,637,510 9,740,647 14,645,356 159,329,305 (29,598,906) 129,730,399
Operating income.................... ¥ 6,209,013 ¥ 962,364 ¥ 468,366 ¥ 1,695,804 ¥ 9,335,548 ¥ (58,777) ¥ 9,276,771
Total assets .............................. ¥ 83,389,608 ¥ 10,168,325 ¥ 6,849,147 ¥ 10,104,991 ¥ 110,512,073 ¥ 3,563,696 ¥ 114,075,770
Overseas Sales
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, 2005 and 2004 were summarized
as follows:
Thousands of Yen Year ended March 31, 2005 Americas Europe Asia Total Overseas sales............................................................. ¥ 25,023,482 ¥ 10,450,293 ¥ 21,132,780 ¥ 56,606,556 Consolidated net sales................................................ 147,737,711 Overseas sales as a percentage of consolidated net sales...................................................................... 16.9% 7.1% 14.3% 38.3%
Thousands of Yen Year ended March 31, 2004 Americas Europe Asia Total Overseas sales............................................................. ¥ 23,858,626 ¥ 10,671,326 ¥ 15,190,866 ¥ 49,720,819 Consolidated net sales................................................ 139,007,170 Overseas sales as a percentage of consolidated net sales...................................................................... 17.2% 7.7% 10.9% 35.8%
副 B印 も汀&YouN6-5用 rNN■HON
Report of lndependent Auditors
The Board of Directors
Nippon Seiki Co.,Ltd.
We have audited the accompanying consolidated balance sheets of Nippon Seiki Co.,Ltd。
and consolidated subsidiaries as of March 31,2005 and 2004,and thc related consolidated
statcmcnts of income, retained eamings, and cash ユ ows for thc years then ended, all
expressed in yen. These inancial statements are the responsibility of the Company's
management. Our responsibility is to cxpress an opinion on these inancial statements
based on our audits。
We conducted our audits in accordance with auditing standards gencrally accepted in Japan.
Those standards require that we plan and perform■ the audit to obtain rcasonable assurance
about whethcr thc inancial statements are free of material Hlisstatement. An audit
includes examining,on a test basis,evidence supporting the amounts and disclosures in the
nnancial statements. An audit also includes assessing the accounting principles used and
signincant estilnates made by management, as well as evaluating the overall 宜 nancial
statement presentation. We believc that our audits provide a rcasonablc basis for our
oplnlon.
In our opinion, the Snancial statements rcfcrrcd to above present fairly, in all material
rcspccts, thc consolidated financial position of Nippon Seiki Co., ]し td. and consolidated
subsidiaries at March 31,2005 and 2004,and thc consolidatcd results of their operations
and thcir cash nows for the years then cnded in confoェ ェェェity with accounting principles
generally acceptcd in Japan。
И筋 ″Jοれαレ玉ギorttαすどθれ
As described in Note 2 to the consolidatcd inancial statcments, the Company adopted
accounting standards for impaiェェェェent of ixed assets in the year ended March 31,2005.
kJunc 25,2005
A卜 711卜11;IR()I FRN、1&Y()に ド(i(il()|ぅヽ1
24
Non-consolidated Financial Statements of NIPPON SEIKI Co., Ltd. for the Fiscal Year 2004/2005 Balance Sheets
March 31, 2005
March 31, 2004
ASSETS (Thousands of Japanese Yen) (Thousands of Japanese Yen)
Current Assets
Cash and bank deposits Notes receivable Accounts receivable Finished goods Raw materials and Parts Work in process Supplies Prepaid expenses Deferred tax assets Short-term loans Sundry receivable Other current assets Allowance for doubtful accounts
¥ 2,448,023 1,194,171
29,834,449 1,583,648 3,687,379
814,072 94,054 38,890
626,736 6,186,949 1,847,415
140,171 ( 19,277
)
¥ 5,604,468 1,597,307
26,240,356 1,338,628 4,230,404
793,350 90,663 38,394
426,520 5,235,452 1,608,726
159,092 ( 17,164
)
CURRENT ASSETS-TOTAL 48,476,683 47,346,202
Fixed Assets
Tangible Fixed Assets
Buildings Structures Machinery and Equipment Vehicles Tools, Jigs and Fixtures Land Construction in progress
4,545,082 226,684
3,827,462 62,469
2,912,033 8,936,303
389,742
4,813,732 237,664
4,187,760 55,340
2,546,129 9,507,506
131,959
Total 20,899,778 21,480,092
Intangible Fixed Assets
Software Other intangible assets
770,678 12,202
750,597 33,744
Total 782,881 784,341
Investment and Other Assets
Investment securities Investment in subsidiary and affiliate companies Long-term loans Prepaid expenses Deferred tax assets Other investments and assets Allowance for doubtful accounts
12,763,256 11,609,187
345,000 188,737 168,154 214,254
( 74,103
)
11,566,284 11,155,070
100,000 214,961 501,199 208,789
( 74,103
)
Total 25,214,486 23,672,202
FIXED ASSETS-TOTAL 46,897,147 45,936,636
TOTAL ASSETS ¥ 95,373,830 ¥ 93,282,838
Ⅸ. OTHER INFORMATION
25
March 31, 2005
March 31, 2004
LIABILITIES (Thousands of Japanese Yen) (Thousands of Japanese Yen)
Current Liabilities
Notes payable Accounts payable Short-term loans payable Current maturities of long-term loans payable Accrued liabilities Accrued expenses Accrued income taxes Advance received Deposits received Accrued bonuses to employees Bills payable - capital investment
¥ 705,744 23,905,944 5,970,947 1,473,700 1,256,567 1,847,284 2,292,359
808 193,564 775,709 152,024
¥ 349,947 22,173,934 12,940,047 1,413,600 1,128,523 1,433,769
120,575 1,091
152,322 732,119 112,794
CURRENT LIABILITIES-TOTAL 38,574,654 40,558,727
Long-term Liabilities
Bonds Long-term loans payable Allowance for employees’ retirement benefits Allowance for directors’ retirement benefits Other long-term liabilities
3,782,000 3,568,500 1,289,198
295,317 539,637
7,500,000 3,692,200 1,319,792
403,434 1,057,928
LONG-TERM LIABILITIES-TOTAL 9,474,652 13,973,354
TOTAL LIABILITIES 48,049,307 54,532,082
SHAREHOLDERS’ EQUITY
Common stock 12,982,041 12,495,488
Additional paid-in capital 5,505,316 4,220,626
Retained earnings
Legal reserves Allowance for special depreciation General reserve Unappropriated retained earnings
[Net income for the period included]
960,230 184,998
18,880,000 5,552,815
[ 5,016,675
]
960,230 194,997
16,480,000 3,691,722
[ 3,122,913
]
Total 25,578,044 21,326,950
Unrealized gain on investment securities 3,315,898 2,612,169
Treasury stock ( 56,777 ) ( 1,904,477 )
TOTAL SHAREHOLDERS’ EQUITY 47,324,523 38,750,756
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY ¥ 95,373,830 ¥ 93,282,838
26
Statements of Income
Year ended March 31, 2005
Year ended March 31, 2004
(Thousands of Japanese Yen) (Thousands of Japanese Yen)
Sales ¥ 98,620,411 ¥ 94,405,985
Operating Expenses
Cost of Sales Selling, General and Administrative Expenses
85,021,160 7,466,308
82,966,265 7,440,135
Total 92,487,468 90,406,401
OPERATING INCOME 6,132,942 3,999,584
Non Operating Income
Interest and Dividend income Other non operating income
990,908 1,411,260
838,573 512,675
Total 2,402,169 1,351,248
Non Operating Expenses
Interest expenses Other non operating expenses
84,419 11,094
110,427 768,035
Total 95,514 878,463
ORDINARY INCOME 8,439,597 4,472,369
Special Income
Gain on sales of fixed assets Profits from termination of defined benefit pension plans Amortization of transition difference of retirement allowance
due to change of accounting standard
2,289 -
58,003
96 249,051
-
Total 60,292 249,148
Special Loss
Loss on disposal of fixed assets Impairment loss Loss on earthquakes Loss on investment security revaluation Amortization of transition difference of retirement allowance
due to change of accounting standard Other special loss
93,224 551,331 130,471 17,447
-
44,935
119,372 - -
85,479
30,431 16,374
Total 837,410 251,656
INCOME BEFORE TAXES 7,662,479 4,469,860
Income Taxes 2,645,804 1,346,947
NET INCOME 5,016,675 3,122,913
Retained earnings brought forward from previous period 807,420 783,085
Interim dividend paid 271,280 214,276
Unappropriated retained earnings ¥ 5,552,815 ¥ 3,691,722
27
Statements of Retained Earnings
Year ended March 31, 2005 Year ended March 31, 2004
(Thousands of Japanese Yen) (Thousands of Japanese Yen)
Unappropriated retained earnings for the period ¥ 5,552,815 ¥ 3,691,722
Disposition of special depreciation allowance 45,684 42,470
Total 5,598,500 3,734,193
Appropriations of surplus
Dividends [¥4 per share for ordinary dividend and ¥6 per share for special dividend for F.Y.2005]
575,245
321,300
Bonus to directors [Bonus to corporate auditors included]
170,000 [ 10,500
]
173,000 [ 9,600
]
Allowance for special depreciation 22,729 32,472
General reserve 3,800,000 2,400,000
Retained earnings brought forward to the next period ¥ 1,030,526 ¥ 807,420
* Interim dividend: ¥214,276thousand at December 16, 2003 [ ¥ 4 per share for dividend ] * Interim dividend: ¥271,280thousand at December 14, 2004 [ ¥ 5 per share for dividend ]
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