factbook 2017 - daido metal | the tribology solution machinery and motorcycles, as well as bearings...

FACTBOOK 2017

For the fiscal year ended March 31, 2017

Contents

Corporate Profile 1-3

Consolidated Balance Sheet 4

Consolidated Statement of Income,Consolidated Statement of Cash Flows 5

Net Sales by Segment, Trends of Performance 6

Major Financial Indicators 7-9

Stock Information 10 DAIDO METAL CO., LTD.Securities Code: 7245 / TSE 1st, NSE 1st

Corporate Profile

1

Global Network（Main Bases）

Copyright© 2017 DAIDO METAL CO., LTD. All Rights Reserved.

Company Name DAIDO METAL CO., LTD.

Headquarters 13F Nagoya Hirokoji Bldg. 2-3-1 Sakae, Naka-ku, Nagoya 460-0008, JAPAN

Established November 4th, 1939

Capital JPY 7,273 million (as of March 31, 2017)

Representative Seigo Hanji, Chairman and Chief Executive OfficerKotaro Kashiyama, President and Chief Operating Officer

Number of Employees 6,321 (Consolidated) / 1,255 (Non-Consolidated) (as of March 31, 2017)

Listed Markets TSE 1st Section, NSE 1st Section

Corporate Profile

2

Automotive Engine BearingsAutomotive (passenger cars, trucks, racing cars) engine bearings, Motorcycle engine bearings, Engine auxiliary machine (turbochargers, balancer mechanisms) bearings

Products

Automotive Non-Engine BearingsAutomotive parts (transmissions, shock absorbers, compressors for air conditioning, steering, injection pumps, etc.) bearings


Automotive Engine Bearings

Piston pinbush

Half bearing

Thrust bearings forturbochargers

Floating bearings forturbochargers

Throttle body bushes

Trunk lid bearings /engine hood bearingsMechanical part bushes

for front reclining seat

Starter bushesStrut-type shockabsorber bushes

Rack and pinionsteering bushes

Tip seals for airconditioners(scroll compressor)

Pump bushes forpower steering units

Daido Metal is the only “comprehensive manufacturer of plain bearings” in the world, engaged in the manufacturing and the sales of a wide variety of bearings for automobiles, marine engines, construction machinery, and bearings for general industrial use.

Daido Metal has a global production and sales network in 5 geographic regions of Japan, North America, Europe, Asia, and China.

Daido Metal is an independent company and is delivering its products globally to many customers across various industries.

Daido Metal is the largest manufacturer in the world for several types of bearings, with a 32.5% market share for automobile engine bearings, 28% for turbocharger bearings (small turbo), and 45% for large ship engine bearings (according to the in-house estimation for calendar year 2016).

Daido Metal also boasts a significant domestic market share of bearings used in trucks, construction machinery, agricultural machinery and motorcycles, as well as bearings in automobile parts such as shock absorbers.

In particular, our lead-free bearings have received high praise from the market and have been increasingly adopted by European automobile manufacturers. In addition, bearings used in turbines for electric power generation have a good reputation from our customers for their superior durability and longevity.

Aiming for medium- and long-term product and business expansion, Daido Metal acquired Iino Holding Ltd. and ATA Casting Technology Japan Co., Ltd. in FY2016.

Company Features

Corporate Profile

3

Bearings for low-speed diesel engines

Bearings for medium to high-speed diesel engines

For Construction Machinery / Small to Medium-scale Ships For Large Ships

For Heavy Electrical / General Industrial Machinery

Dry bearingseries

Turbomachinerybearing systems

Electrode sheet forcapacitors

Others

Non-Automotive Bearings and Products Other than BearingsBearings for low-speed (two-cycle) diesel engines, medium to high-speed (four-cycle) diesel engines, power generation (turbines including hydraulic turbines), general industrial machinery (compressors, accelerator/reduction gears), and other products such as rotary pumps, centralized lubrication equipment (for machine tools), electrode sheets for capacitors, etc.

Thermalloy DAISLIDE


Centralized lubricationequipment/ Rotary pumps

Looking to achieve product and business diversification and multifaceted expansion in the medium and long term, the Company made Iino Holding Ltd. and ATA Casting Technology Japan Co., Ltd. subsidiaries. The two companies will leverage the Group's current global production and sales network to accelerate their globalization process. The Group can enhance technological and production capabilities and improve efficiency of operations through exchanging human resources and sharing technologies and expertise. Through these initiatives, we intend to establish a foundation for a new round of growth in the period of the next Medium Term Business Plan.

Topics

Iino Holding Ltd.Iino Holding Ltd. manufactures and sells high-precision and high-quality parts for automobile engines and transmissions such as formed pipes, knock pins, and NC milled parts. Iino Holding Ltd.’s advanced technological capabilities are recognized by its clients, which are automobile manufacturers and automobile part manufacturers.

ATA Casting Technology Japan Co., Ltd.ATA Casting Technology Japan Co., Ltd. manufactures and sells aluminium die cast automobile parts in Thailand. ATA Casting Technology Japan Co., Ltd.‘s advanced technological capabilities are recognized by its clients, which are automobile manufacturers and automobile part manufacturers.

4

Consolidated Balance Sheet


(JPY million) FY3/13 FY3/14 FY3/15 FY3/16 FY3/17Assets

Current assets 47,405 51,743 58,755 60,002 68,101Cash and deposits 9,752 12,047 13,001 14,268 14,203Notes and accounts receivable - trade 19,940 21,057 24,056 22,824 25,031Electronically recorded monetary claims - operating －－－ 1,304 1,910Inventories 15,199 15,907 18,229 18,384 22,755Other 2,512 2,729 3,467 3,220 4,200

Non-current assets 44,909 52,356 57,778 62,918 87,183Property, plant and equipment 38,172 45,591 50,082 55,324 63,290

Buildings and structures, net 9,813 14,276 14,267 15,838 17,705Machinery, equipment and vehicles, net 12,782 16,270 19,448 20,034 26,926Land 8,158 9,303 11,128 10,954 9,714Leased assets, net 1,446 786 632 1,652 3,376Construction in progress 5,242 3,673 3,571 5,844 4,506Other, net 729 1,280 1,034 999 1,060

Intangible assets 1,978 1,931 1,977 2,124 16,631Investments and other assets 4,758 4,833 5,717 5,469 7,261

Investment securities 2,135 2,787 3,471 2,827 4,301Other 2,622 2,045 2,246 2,641 2,960

Total assets 92,314 104,099 116,533 122,920 155,284Liabilities

Current liabilities 39,154 32,098 37,355 40,337 73,515Notes and accounts payable - trade 10,972 5,938 6,727 7,003 8,696Electronically recorded obligations - operating － 7,283 8,754 7,783 8,143Short-term loans payable 10,616 6,687 8,623 12,485 38,001Current portion of bonds 90 75 －－－Current portion of long-term loans payable 8,227 2,387 3,244 3,552 5,122Lease obligations 865 624 278 203 778Income taxes payable 1,577 1,759 1,936 983 989Other 6,805 7,342 7,790 8,325 11,783

Non-current liabilities 13,098 25,267 26,083 30,434 28,803Bonds payable 75 －－－－Long-term loans payable 5,920 17,667 18,454 19,817 15,623Lease obligations 1,117 450 364 1,446 3,785Other 5,985 7,148 7,264 9,170 9,394

Total liabilities 52,252 57,365 63,439 70,772 102,319Net assets

Shareholders' equity 34,215 38,386 41,850 45,729 47,249Capital stock 7,273 7,273 7,273 7,273 7,273Capital surplus 7,946 7,946 7,946 8,821 8,821Retained earnings 20,400 24,578 28,051 31,055 32,576Treasury shares (1,404) (1,411) (1,420) (1,421) (1,421)

Accumulated other comprehensive income (726) 454 1,730 (1,753) (2,018)Valuation difference on available-for-sale securities 725 958 1,250 886 1,145Foreign currency translation adjustment (1,452) 782 1,340 (159) (1,114)Remeasurements of defined benefit plans － (1,286) (860) (2,480) (2,049)

Non-controlling interests 6,573 7,892 9,512 8,172 7,733Total net assets 40,062 46,733 53,093 52,148 52,964Total liabilities and net assets 92,314 104,099 116,533 122,920 155,284Note: Figures presented in this FACTBOOK are rounded down to JPY million.

5

Consolidated Statement of Income,Consolidated Statement of Cash Flows


(JPY million) FY3/13 FY3/14 FY3/15 FY3/16 FY3/17Net cash provided by (used in) operating activities 10,928 12,975 9,763 9,372 9,801Net cash provided by (used in) investing activities (10,169) (9,861) (9,627) (13,364) (30,821)Net cash provided by (used in) financing activities (3,213) (1,016) 626 4,989 20,679Effect of exchange rate change on cash and cash equivalents 16 133 386 (217) (208)Net increase (decrease) in cash and cash equivalents (2,437) 2,230 1,147 780 (548)Cash and cash equivalents at beginning of period 10,984 9,196 11,427 12,595 13,376Increase (decrease) in cash and cash equivalents resultingfrom change of scope of consolidation

650 － 20 －－

Cash and cash equivalents at end of period 9,196 11,427 12,595 13,376 12,827Note: Figures presented in this FACTBOOK are rounded down to JPY million.

(JPY million) FY3/13 FY3/14 FY3/15 FY3/16 FY3/17Net sales 70,886 77,350 85,015 81,400 85,073Cost of sales 52,178 56,057 62,068 58,599 62,982Gross profit 18,708 21,292 22,946 22,801 22,091Selling, general and administrative expenses 12,422 13,923 15,312 15,686 16,987Operating profit 6,286 7,368 7,633 7,114 5,103Non-operating income 1,611 1,637 1,252 1,153 1,123Non-operating expenses 962 942 757 1,472 799Ordinary profit 6,935 8,063 8,129 6,796 5,427Extraordinary income 61 896 436 202 200Extraordinary losses 13 17 －－ 2,449Profit before income taxes 6,982 8,942 8,565 6,999 3,178Total income taxes 2,080 3,163 2,877 2,234 628Profit 4,902 5,779 5,687 4,765 2,549Profit (loss) attributable to non-controlling interests 516 1,044 1,228 845 (85)Profit attributable to owners of parent 4,385 4,735 4,459 3,919 2,635Note: Figures presented in this FACTBOOK are rounded down to JPY million.

6

Net Sales by Segment, Trends of Performance


Net Sales by Segment

Trends of Performance

(*1) Following the review of business grouping, a part of the “Automotive Non-Engine Bearings” business is now included in “Automotive Engine Bearings”. Previous period figures appearing above are recalculated according to this new grouping.

Note: Figures presented in this FACTBOOK are rounded down to JPY million.

(*3) “Others” includes real estate leasing, metallic dry bearing business, and pump related product business, and others.

68,062

60,572

51,143

63,451 70,326 70,886

77,350

85,015 81,400

85,073

1.3%

-0.6%0.5%

12.2%13.5%

8.9%9.5% 9.0% 8.7%

6.0%

-2.0

0.0

2.0

4.0

6.0

8.0

10.0

12.0

14.0

16.0

18.0

(10,000)

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

90,000

FY3/08 FY3/09 FY3/10 FY3/11 FY3/12 FY3/13 FY3/14 FY3/15 FY3/16 FY3/17

(%)(JPY million)

Net SalesOperating Profit Margin

(*2) During the year ended in March 2017, the Company acquired shares of Iino Holding Ltd. and ATA Casting Technology Japan Co.,Ltd. Sales of these two companies and their subsidiaries are now reported under a new segment, “Other Automotive Parts”.

0

20,000

40,000

60,000

80,000

100,000

FY3/16 FY3/17

(JPY million) Automotive Engine Bearings (*1) Automotive Non-Engine Bearings (*1)

Non-Automotive Bearings Other Automotive Parts (*2)

Others (*3)

(JPY million) FY3/16 FY3/17Net sales

Automotive Engine Bearings (*1) 55,003 59,365Automotive Non-Engine Bearings (*1) 12,976 12,757Non-Automotive Bearings 11,713 9,691Other Automotive Parts (*2) － 1,241Others (*3) 1,707 2,017Total 81,400 85,073

7

Major Financial Indicators

Note：Figures presented in this FACTBOOK are rounded down to JPY million. Ratios PER and PBR are also rounded down to one decimal point, and other ratios are rounded off.


Operating Profit Margin＝Operating Profit/Net Sales D/E Ratio＝Interest-bearing Debt/Equity

Ordinary Profit Margin＝Ordinary Profit/Net Sales Equity Ratio=Average Equity/Average Total Assets

Net Profit Margin＝Profit Attributable to Owners of Parent/Net Sales Inventory Turnover＝Net Sales/Average Inventories

ROA＝Profit Attributable to Owners of Parent/Average Total Assets Current Ratio＝Average Current Assets/Average Current Liabilities

Equity=Total Net Asset-Non-controlling Interests Free Cash Flows=Operating Cash Flows+Investing Cash Flows

ROE＝Profit Attributable to Owners of Parent/Average Equity PER=Stock Price at Term-end/Earnings per Share

Total Assets Turnover=Net Sales/Average Total Assets PBR＝Stock Price at Term-end/Book-value per Share

Interest-bearing Debt=Short-term Loans Payable+Current Portion of Bonds Dividend Payout Ratio＝Dividend per Share/Earnings per Share

+Current Portion of Long-term Loans Payable+Long-term Loans Payable

+Bonds Payable+Lease Obligations

Total Assets 92,314 104,099 116,533 122,920 155,284

ROA 4.9% 4.8% 4.0% 3.3% 1.9%

Equity 33,488 38,840 43,581 43,975 45,231

ROE 14.2% 13.1% 10.8% 9.0% 5.9%

Total Assets Turnover 0.78 0.79 0.77 0.68 0.61

Interest-bearing Debt 26,911 27,892 30,966 37,506 63,312

D/E Ratio 80.4% 71.8% 71.1% 85.3% 140.0%

Equity Ratio 36.3% 37.3% 37.4% 35.8% 29.1%

Inventory Turnover 4.75 4.97 4.98 4.45 4.14

Current Ratio 121.1% 161.2% 157.3% 148.7% 92.6%

Free Cash Flows 759 3,113 135 (3,991) (21,019)

Earnings per Share (JPY) 110.10 118.89 112.00 98.44 66.19Book-value per Share (JPY) 840.76 975.32 1,094.54 1,104.45 1,136.00Dividend per Share (JPY) 14.00 17.00 20.00 26.00 30.00PER (times) 6.8 9.1 11.1 8.8 14.7PBR (times) 0.9 1.1 1.1 0.7 0.8Dividend Payout Ratio (%) 12.7 14.3 17.9 26.4 45.3

Capital Expenditure 10,040 10,838 10,597 14,802 12,329

Depreciation 4,838 5,027 5,744 6,259 6,751

R&D Expenses 1,251 1,319 1,559 1,667 1,821

(JPY million) FY3/13 FY3/14 FY3/15 FY3/16 FY3/17

Net Sales 70,886 77,350 85,015 81,400 85,073

Operating Profit 6,286 7,368 7,633 7,114 5,103

Operaring Profit Margin 8.9% 9.5% 9.0% 8.7% 6.0%

Ordinary Profit 6,935 8,063 8,129 6,796 5,427

Ordinary Profit Margin 9.8% 10.4% 9.6% 8.3% 6.4%

Profit Attributable to Owners of Parent 4,385 4,735 4,459 3,919 2,635

Net Profit Margin 6.2% 6.1% 5.2% 4.8% 3.1%

0

20,000

40,000

60,000

80,000

100,000

FY3/13 FY3/14 FY3/15 FY3/16 FY3/17

Net Sales(JPY million)

8



0.0

3.0

6.0

9.0

12.0

15.0

0

2,000

4,000

6,000

8,000

10,000

FY3/13 FY3/14 FY3/15 FY3/16 FY3/17

Operaring Profit MarginOperating ProfitOperaring Profit Margin

(%)(JPY million)

0.0

3.0

6.0

9.0

12.0

0

40,000

80,000

120,000

160,000

200,000

FY3/13 FY3/14 FY3/15 FY3/16 FY3/17

Total Assets ROA

ROA(%)(JPY million)

0.0

10.0

20.0

30.0

40.0

0

10,000

20,000

30,000

40,000

50,000

FY3/13 FY3/14 FY3/15 FY3/16 FY3/17

Equity ROE

ROE(%)(JPY million)

0.0

50.0

100.0

150.0

200.0

250.0

0

20,000

40,000

60,000

80,000

100,000

FY3/13 FY3/14 FY3/15 FY3/16 FY3/17

Interest-bearing Debt D/E Ratio

D/E Ratio(%)(JPY million)

0.0

4.0

8.0

12.0

16.0

20.0

0

2,000

4,000

6,000

8,000

10,000

FY3/13 FY3/14 FY3/15 FY3/16 FY3/17

Ordinary ProfitOrdinary Profit Margin

Ordinary Profit Margin(%)(JPY million)

0.0

3.0

6.0

9.0

12.0

0

2,000

4,000

6,000

8,000

FY3/13 FY3/14 FY3/15 FY3/16 FY3/17

Profit Attributable to Owners of ParentNet Profit Margin

Net Profit Margin(%)(JPY million)

9



0.0

10.0

20.0

30.0

40.0

FY3/13 FY3/14 FY3/15 FY3/16 FY3/17

Equity Ratio(%)

(22,000)

(18,000)

(14,000)

(10,000)

(6,000)

(2,000)

2,000

6,000

FY3/13 FY3/14 FY3/15 FY3/16 FY3/17

Free Cash Flows(JPY million)

0.00

50.00

100.00

150.00

200.00

FY3/13 FY3/14 FY3/15 FY3/16 FY3/17

Earnings per Share(JPY)

0.00

200.00

400.00

600.00

800.00

1,000.00

1,200.00

FY3/13 FY3/14 FY3/15 FY3/16 FY3/17

Book-value per Share(JPY)

0.0

4.0

8.0

12.0

16.0

20.0

FY3/13 FY3/14 FY3/15 FY3/16 FY3/17

PER(times)

0.0

0.5

1.0

1.5

2.0

FY3/13 FY3/14 FY3/15 FY3/16 FY3/17

PBR(times)

0

3,000

6,000

9,000

12,000

15,000

FY3/13 FY3/14 FY3/15 FY3/16 FY3/17

Capital Expenditure Depreciation

Capital Expenditure / Depreciation(JPY million)

19.8%

19.9%

20.3%

16.8%

15.2%

13.5%

13.3%

13.3%

13.3%

37.7%

39.6%

40.4%

1.0%

0.6%

1.1%

11.4%

11.4%

11.4%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

FY3/15

FY3/16

FY3/17

Individuals and Others Foreign Institutions and OthersOther Japanese Companies Financial InstitutionsFinancial Instruments Business Operators Treasury Shares

10

Stock Information


Stock Price and Trading Volume

Breakdown by Type of Shareholders

Major Shareholdersas of March 31, 2017

Note: The Company holds 5,140 thousand shares in treasury shares and those are excluded from the above major shareholders.

Top 10 Shareholders Numer of Shares(thousand shares)

Shareholding Ratio(%)

Japan Trustee Services Bank, Ltd. 5,568 12.39The Master Trust Bank of Japan, Ltd. 2,862 6.37Sumitomo Mitsui Trust Bank, Limited 1,978 4.40Mizuho Bank, Ltd. 1,977 4.40The Bank of Tokyo-Mitsubishi UFJ, Ltd. 1,822 4.05Tokio Marine & Nichido Fire Insurance Co., Ltd. 1,661 3.70Daido Metal Yueikai Stock Ownership 1,295 2.88THE SERI WATHANA INDUSTRY CO., LTD. 703000 1,000 2.22Nisshin Steel Co., Ltd. 909 2.02Marubeni-Itochu Steel Inc. 886 1.97

0

200

400

600

800

1,000

1,200

1,400

1,600

0

2,000

4,000

6,000

8,000

10,000

12,000

Mar./2013 Mar./2014 Mar./2015 Mar./2016 Mar./2017

Monthly trading volume (LHS) Stock price - month end (RHS)(thousand shares) (JPY)

ContactDAIDO METAL CO., LTD.General Affairs DepartmentPhone : +81-52-205-1400E-mail : [email protected] : http://www.daidometal.com/

factbook 2017 - daido metal | the tribology solution machinery and motorcycles, as well as bearings...

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