ANNUAL REPORT
2 0 1 5（ Y e a r
ended March 31, 2015）
Growth History
▶
(resu lts for fiscal 2014)
▶
Starting with high-precision technology for engineering aircraft equipment, SPP has
extended its business into a broad range of creative areas.
▶
SPP is particularly strong in the precision machining of high-strength metal materials,
thermal management, and joining of metal materials.
▶
SPP has some 15% of the world market for landing gear systems used in regional jets.
▶
We boast world-class shares of the markets for plate-fin heat exchangers and LNG
vaporizers.
Gr ou p n e t sa le s
1950
Other Products:
Industrial
Products
2000
1961
¥47.1 b i l l i o n
Micro Technology,
Environmental Systems, etc.
Foundation of SPP
1900
B us ines s M ix
Future
Heat Control
Products
178
（38% ）
Aerospace and
Related Products
Aerospace and Related Products
Research into
duralumin
Start of integrated
production of propellers
293
Landing Gears
and
Landing Gear
Control Systems
（62% ）
Aerospace
Products
Business expanded into
landing gear and heat
exchangers for aircraft
Hydraulic
Controls
Heat Exchangers
for Aircraft
Hydraulic Controls
Commercial hydraulic equipment
operations started by applying
hydraulic technology for propellers
Industrial Products
Heat Control
Products
First industrial heat exchangers
produced by leveraging aircraft
heat exchanger technology
Environmental
Systems
The development department
investigates and develops
new business operations
Entry into the environmental systems
market with the commercialization
of ozone generators
Contents
Micro Electronics
Technology
Introduction of vacuum
pump technology
Start of liquid crystal
manufacturing equipment
operations
Micro Technology
Control taken of a
plasma etching
specialist
Sensors
MEMS manufacturing
equipment technology
employed to start
sensor business
Fuel Cell
1
Information provided in this annual report contains certain forward-looking statements concerning performance forecasts and projections made by SPP using
information available at present (performance forecasts for fiscal 2015 are the figures announced on April 30) and is subject to various risks and uncertainties.
Due to various changes, actual results may vary from those projected in the forward-looking statements.
3
Consolidated Financial Highlights
6
Segment Overview
Aerospace and Related Products
Start of semiconductor/
MEMS manufacturing
equipment business
Notes on forward-looking statements
Message from the President
Various technical resources
funneled into new
operations on fuel cells
7
Industrial Products
10
Corporate Governance
13
CSR Activities
15
Environmental Preservation
17
Consolidated Financial Statements
19
Domestic and Overseas Bases
37
Company Profile / Stock Information
38
2
Message
from
the
President
Operating
Income
Net Sales
In glob al gr owth m ar k e t s , w e w i l l p e rs i s t e n t l y fo l l o w o u r
“Two-w h eeled G r owth M o d e l w i t h a n E q u a l F o c u s o n Q u a l i t y
(billion ¥)
100
(billion ¥)
9
“Aspiration 2020”
Other Industrial Products
Consolidated net sales
in the range of ¥100 billion
Operating margin of at least 8%
Heat Control Products
Aerospace and Related Products
80
a nd Q uan tity” to ach ieve o u r “ A s p i ra t i o n ” l o n g - t e rm v i s i o n .
7
Growth in existing business
fields with a focus on new products
Increasing
overseas
sales ratio
to 50%
60
President
Sustained growth in
both revenue and
earnings
5
40
20
3
Operating
Income
1
0
0
2005
2006
2007
2008
2009
2010
2011
Note: The SPTS business was divested in August 2011
(the graph does not include the results for the transferred business).
recognized as a non-operating income, helped push up
2013
2014
2015
Forecast
2020
Mid-Term Management Plan
2014
2015
2016
Net Sales
520
600
680
Operating Income
19
39
54
-1
We were not as successful on the “harvest” side of
consolidated ordinary income to ¥2.02 billion.
strengthening our earning power from the existing
Consolidated net income, which includes a ¥0.5 billion gain
operations, however. Despite making progress in optimizing
on the sale of investment securities related to Micro
purchase costs, we are left with challenges in improving the
Enhancing the Management and Business
business resources, enhancement of global management
Technology, was ¥1.45 billion. For fiscal 2014, SPP paid an
productivity of aircraft landing gear systems and in marketing
Foundation to Achieve the “Aspiration”
and group management, and optimization of the business
annual dividend of ¥7 per share.
of and receiving orders for new products.
Long-Term Vision for 2020
and product portfolio. Secondly, business operations will be
Despite achieving growth in both revenue and earnings,
further improved toward four goals: higher productivity,
we had mixed results in the first year of the mid-term
In the spring of 2014, SPP formulated the “Aspiration 2020”
improved QCD (quality, cost, and delivery), strengthened
plan.
long-term vision as well as the “Mid-Term Management Plan
supply chain, and enhanced after-sale services.
for Fiscal 2014-2016,” the latter being the first three-year
action plan aimed at achieving the long-term goal.
The long-term vision upholds SPP’s aspiration to be a
group that “works with its customers to create value in global
The current mid-term plan has both aspects of “sowing”
and “harvesting.” In the latter, we are to successfully develop
Overcoming Short-term Challenges
in FY 2015 for FY 2016 and After
to Achieve the Long-term Vision
Challenges Still Remain Despite
the operations and products we have prepared so far and
In fiscal 2015, we expect to achieve net sales of ¥55.0 billion
Growth in Both Revenue and
thereby help strengthen our direct earning power. On the
and an operating income of ¥2.0 billion. These figures
Earnings in FY 2014
“sowing” side, we will foster new “seeds” of growth to
represent year-on-year growth in both revenue and
achieve the “Aspiration 2020” vision. In other words, the plan
earnings, but fall short of the levels indicated for the current
customer perspective” “in SPP’s existing business fields,” it
In fiscal 2014, the first year of the mid-term plan, all members
is aimed at both investment in sustainable growth and the
fiscal year in the Mid-Term Management Plan.
aims to ensure “growth in terms of both quality and
of the SPP group worked together to secure incoming
improvement of financial strength.
quantity.” As targets for 2020, therefore, the “Aspiration”
orders and increase sales, while at the same time developing
Looking back on fiscal 2014 from these perspectives, the
fruit grown from previously sown “seeds.” For example,
vision eyes consolidated net sales in the range of ¥100 billion
new products and their applications. As a result, the group’s
SPP group made good progress on the “sowing” side for
Aerospace and Related Products suffers from a delay in the
and operating margin of 8%.
consolidated net sales rose by 4.7% from the previous fiscal
future growth. The Aerospace Products segment developed
planned improvement of productivity to ensure stable supply
growth markets.” Focusing on “attractive technologies from a
3
2012
The reason is that it has been taking time to “harvest” the
The “Mid-Term Management Plan for Fiscal 2014-2016” is
year to ¥47.13 billion. Due to efforts in promoting sales and
global MRO (maintenance, repairs, and overhaul) operations
of new products. Industrial Products faces a problem with
defined as an action plan to strengthen both foundations of
optimizing costs as well as the effects of the weaker yen,
under partnership with the Lufthansa group. The Heat
catalytic reactors for CompactGTL as C-GTL users have
SPP. First, management will be enhanced with a focus on
SPP posted a consolidated operating income of ¥1.59
Control Products segment won the first major order in
been slow in making decisions on commercialization.
four pillars: upgrading of corporate governance, best use of
billion, an increase of ¥0.63 billion. An exchange gain,
relation to a shale gas project in North America.
However, our scenario for achieving the “Aspiration” long-term
4
Consolidated
Financial
Highlights
For the years ended March 31, 2015
vision remains entirely unchanged. We aim to achieve mid-
consolidated/non-consolidated ratio within the group. To
to long-term growth with a focus on developing overseas
this end, we will implement fundamental improvement
operations primarily in three fields. SPP’s commercial aircraft
measures to achieve the initially planned productivity level,
business is expected to grow steadily; our high-value added
thereby reducing costs and improving profitability further.
heat exchangers and LNG vaporizers boast a strong
To achieve these targets, we have set up a cross-organizational
competitive edge in international markets; and our Micro
task force to accelerate the process of resolving fundamental
Technology has a distinctive technology to differentiate itself.
issues. In addition, we have started an initiative to increase
Specifically, SPP has already completed two merger and
the value of our human resources even further by helping
acquisition projects in fiscal 2015. One is the purchase of a
employees broaden their perspective to encompass all aspects
Canadian surface finishing service provider with the aim of
of business including production, sales, and technology.
improving group capacity to supply aircraft landing gear on a
global basis. The other is the acquisition (by our subsidiary
SPP Technologies) of a U.S.-based Thermal Products business
(3) Solid implementation and completion of commercialproduction projects and further development
R e su l t s f o r F i sc a l 2 0 1 4
billion
Operating
income
(+ 4.7%)
¥1.59
billion
¥1.45
Net
income
(+ ¥0.63 billion)
billion
(+ ¥0.32 billion)
2010
2011
2012
2013
2014
2015
Forecast
Net sales
(million ¥)
56,237
52,296
40,171
45,032
47,135
55,000
Operating income
(million ¥)
5,026
4,193
430
963
1,598
2,000
(%)
2.0
1.2
1.1
2.1
3.4
3.6
to ensure that Micro Technology can develop operations
Aerospace Products will steadily work on the commercial-
overseas and develop new products by leveraging synergy
production of the MRJ1 and HondaJet2, the development
Net income
(million ¥)
4,811
6,695
263
585
1,450
1,000
with existing operations.
of the orders from Dornier3, and the development of a
Total assets
(million ¥)
80,095
72,603
75,585
79,948
81,899
87,100
(%)
35.0
45.6
44.1
41.0
42.4
41.3
Net income
(¥)
90.80
126.37
4.96
11.05
27.39
18.89
Cash dividends
(¥)
8.00
8.00
7.00
7.00
7.00
7.00
We will develop these operations and products to reach the
heat exchanger for the Rolls-Royce engine to power the
“harvest” phase as soon as possible and thereby get closer
A330 neo aircraft now being developed by Airbus.
to achieving our long-term vision. In fiscal 2015, all members
Industrial Products will make solid progress in delivering
of the group will work together to that end with a focus on
large orders related to shale gas.
the five areas described below:
(4) Developing specialty technologies further
(1) Strengthening corporate governance and
fast improvement of ROE
high-strength metal materials, thermal management, and
Corporate governance is an aspect of management that
joining of metal materials. Leveraging these strengths, the
investors are particularly concerned with. As part of an
company will accelerate the development of EHA aircraft
initiative for its enhancement, SPP will have two External
landing gear systems, ultra-high performance cooling for
Directors for the first time to make the board of directors more
aircraft engines, and heat exchangers for the hydrogen
active and enable it to make swift decisions to strengthen
society of tomorrow.
both our growth strategies and financial foundation.
ROE is another aspect or parameter of management that
Operating margin (not including the SPTS business)
Equity ratio
Per share
SPP’s core competence lies in the precision machining of
▶
N e t S a l e s・O p e r a t i n g M a r g i n (not including the SPTS business)
（ million ¥）
Improving free cashflow is indispensable for making timely
this parameter fast by speeding up the implementation of
investments that are necessary to achieve our “Aspiration”
measures to increase earnings.
vision for 2020. To this end we will strive to improve our asset
（%）
70,000
Operating Margin
(not including the SPTS business)
56,237
SPP will need to respond to diverse changes in its business
While there are certainly some delays compared with the
initial targets stated in initial Mid-Term Plan, we will strive to
sales ratio and the growing share of private-sector
properly achieve our business vision in order to ensure the
demand in Aerospace products, as well as a rise in the
sustainable growth of our corporate value.
50,000
55,000
（%）
100,000
100
Total Assets
Equity Ratio
48,805
87,100
81,283
77,674
40,346
70,000
65,166
40,171
80,095
10
79,948
80
72,603
70
67,293
60,000
60
50,000
30,000
6.3
6.1
50
43.8
5
20,000
4.1
3.4
10,000
44.1
45.6
44.1
39.8
30,000
41.3
40
35.0
34.2
3.6
42.4
41.0
30
29.4
2.1
2.0
0.6
40,000
90
81,899
75,585
72,363
47,135
45,032
40,000
90,000
80,000
42,767
1.2
1.1
0
0
20,000
20
10,000
10
-1.7
-10,000
1: Japan’s first commercial jet being developed by Mitsubishi Aircraft Corporation. SPP is responsible for MRJ’s landing gear system.
2: The private jetplane being developed by Honda. Its landing gear system is supplied by SPP.
3: A German aircraft manufacturer. Dornier has selected SPP as the supplier of the landing gear system for an amphibious flying boat.
15
52,296
50,151 49,903
step, we have been giving top priority to reducing inventories.
structure, such as increases in the group’s overall overseas
T o t a l A s s e t s・E q u i t y R a t i o
Contribution from SPTS*
60,000
efficiency. Beginning in fiscal 2015, SPP has introduced ROIC
as a new performance management indicator. As the first
▶
（ million ¥）
Net Sales
(5) Improving asset efficiency and free cashflow
investors take keen interest in. SPP will also strive to improve
(2) Improving group productivity with a focus
on Aerospace Products
5
¥47.13
Net
sales
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Forecast
-2.5
0
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
0
Forecast
*SPP Process Technology Systems (SPTS) has been excluded from consolidation since the third quarter of fiscal 2011, following the transfer of the SPTS shares in the first half of that fiscal year.
6
Segment
Overview
Aerospace and Related Products
Unique Combination of the Precision Machining of High-strength Metal Materials
Business Profile
In 1957, SPP delivered the landing gear system for the T-33 training aircraft to
the former Japanese Defense Agency. Since then, aircraft for the Agency (now
upgraded to a ministry) have almost exclusively been equipped with landing
gear systems from SPP. Today, SPP products account for some 80% of the
landing gear systems installed in the Defense Ministry’s air fleet.
SPP has also been successful in the area of commercial aircraft. In 1997, the
with Specialized Surface Finishing Ensures Clear Differentiation
Developed since the start of propeller production in 1933,
for aircraft components. This purchase has substantially
SPP technology for the precision machining of high-strength
raised SPP’s corporate value, since it makes SPP one of the
metal materials has been highly regarded by our customers. In
few suppliers in the world that are capable of comprehensive
June 2015, we added further operations by purchasing
production featuring the unique combination of precision
a Canadian company engaged in specialized surface finishing
machining with specialized surface finishing.
SPP Aims to Become a Global Tier 1 Supplier of Landing Gear Systems
company worked with U.S.-based Menasco to win a landing gear system project
for Business-Regional Aircraft
for the CRJ 700 from Bombardier in Canada. SPP landing gear systems currently
Since our early days, SPP has had the desire to enter the commercial
5,000
have approximately 15% of the world market for regional jets. In addition, the
aircraft market as a global Tier 1 supplier by taking advantage of the
4,000
company has received an order from Mitsubishi Aircraft Corporation for the MRJ
technology it has long developed in public-sector business. To this
3,000
90 landing gear system. With the start of flight services using the Mitsubishi
end, we have faced the three requirements to be met by a landing
2,000
aircraft, SPP is expected to increase its share of the regional jet market solidly.
gear system integrator: technological ability, overseas operations,
and MRO. These efforts have ensured continued success. The
Major product lines and SPP’s strengths
Landing Gear Systems
2033
Number of aircraft
in service
Number of aircraft
in service
New deliveries
3,435
3,508
4,328
1,000
orders received in relation to the domestically developed HondaJet
0
and MRJ aircraft were followed in 2014 by the signing of a landing
-1,000
gear system contract with Dornier in Germany.
-2,000
Note: A Tier 1 supplier concludes direct contracts with aircraft manufacturers and is
involved in the development and commercial-production of landing gear systems
right from the initial phase of aircraft projects.
Note: MRO stands for maintenance, repairs, and overhaul.
2014∼33
2013
Number of
aircraft
Retirements
Current SPP share:
approx. 15%
SPP’s target as a Tier 1 supplier:
CRJ+MRJ+new Tier 1 contracts
-2,615
-3,000
Projected Demand for Regional Jets with 20 to 99 seats
(Source: Japan Aircraft Development Corporation)
Many years of experience in the design, development, and production
technology for landing gear, with a focus on the outstanding precision
machining of high-strength metal materials
Involvement in the development projects on the MRJ and HondaJet, both
promising products for Japan’s future aviation industry provide opportunities
to make technical achievements as a landing gear system integrator.
CRJ1000
(from Bombardier Web Page)
CRJ700/900/1000
Dressed Main Landing Gear Assy
Impact absorption during landing
CRJ700/900/1000
Dressed Nose Landing Gear Assy
Steering of surface movement
Purchase of a Canadian specialized surface finishing service provider
leads to establishing a production system combining precision
machining and specialized surface finishing.
In Japan, SPP took over ANA MRO operations to found a subsidiary in
Nagasaki. SPP also works with Lufthansa to strengthen overseas MRO.
Requirement
Previous Mid-Term Plan
（2011∼13）
Technological
development
ability as a
Tier 1 supplier
MRJ/HondaJet (HJ)
development
Overseas
operations
Foundation of
North American subsidiary (SPPCA)
Purchase of CFN
MRO
Purchase of domestic
MRO specialist (SPPNECO)
Partnership with Lufthansa
for overseas MRO
Heat Management Systems
Thermal management and the joining of metal materials are SPP’s
specialties here.
Trent 1000®Engine SACOC
Trent 1000®Engine
(Photograph : Courtesy of Rolls-Royce plc.)
High efficiency, compact size, and low weight as well as shapes that
help reduce air drag contribute to reducing the fuel consumption and
noise of aircraft engines.
Trent 1000®Engine FOHE
Since the 1980s, SPP has supplied heat exchangers for almost all engine
series from Rolls-Royce, the famous UK manufacturer of aircraft engines.
Aspiration 2020
（2017∼）
Start of MRJ/HJ commercial-production
MRJ Roll-Out
HJ’s first flight in Japan
Development of new-generation (next-generation and derived) technologies
Net Sales
（billion ¥）
50
Private demand
Public demand
40
Current Mid-Term Plan
（2014∼16）
To become a Global
Promotion of overseas operations
(from Tier 2 to Tier 1)
Wins Dornier contract on Seastar CD 2 landing gear
Tier 1 Supplier of landing gear
for business-regional aircraft
Expansion of MRO operations
To be utilized also for products for the public sector
Aspiration
Starting
Aiming to be a global
12/2014: Wins Dornier Seastar landing
commercialTier 1 supplier
gear contract
production
01/2008: Wins MRJ landing
Early phase of
gear development contract
commercial-production Starting full-fledged development programs
Start of
07/2006: Wins HJ landing
to become a global Tier 1 supplier
commercial-production
gear development contract
04/2012: Starts building
Establishing a cycle from the development to
commercial-production of heat control systems
Canadian operations
30
Hydraulic Control Products
Full-fledged development for the private sector
Growing into a landing gear system integrator
Technologies developed for aircraft hydraulic equipment are
leveraged to offer hydraulic pumps featuring low consumption, low
pulsation, and low noise for various applications such as transport
equipment and general industrial equipment.
HS Pump
7
QT Pumps
CX Pump
Under strong partnership with the Haitian group, the world’s largest
manufacturer of injection molding equipment, a joint venture has
been established to develop business in China.
Diversifying heat control systems
20
117
120
128
176
209
240
Products for public sector
10
95
0
85
90
90
84
Delivery of components
for private-sector applications (Tier 2)
100
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
（Forecast）
2020
8
Segment
▶ Overview of Business Performance
in Fiscal 2014
Net
sales
Overview
¥29.32 billion
Industrial
Products
Business Profile
In the fiscal year under review (fiscal 2014), Aerospace and Related
Products achieved net sales of ¥29.32 billion, an increase of 10.1% from
the previous year. Operating income rose by 68.4% to ¥1.35 billion. The
segment posted year-on-year growth in both revenue and earnings,
Operating
income
primarily due to favorable developments in the sale of heat exchangers
for aircraft engines and hydraulic equipment for China. Further positive
contributions came from the purchase of MRO operations for aircraft
Net Sales
（ million ¥）
40,000
¥34.0 billion due to expected growth in sales, particularly those of
landing gear systems. The segment’s operating income is expected to
be at a prior-year level of ¥1.35 billion, primarily due to an increase in
20,000
・Our low-temperature industrial heat exchangers dominate the domestic
market almost completely and have a 20 to 30% market share worldwide.
・SPP’s element coolers for Shinkansen bullet trains boast the monopoly of
the Japanese market.
1,000
805
In the area of information-communication technology, SPP delivers MEMS and
594
semiconductor manufacturing equipment. Our SiO2 sacrificial layer etching
500
10,000
systems maintain a domestic market share of more than 90%.
125
0
2010 2011 2012 2013 2014 2015
0
“information-communication
・SPP open-rack LNG vaporizers have 60% of the world market.
1,356 1,350
21,181 20,493 21,805
fixed costs.
and
and plate-fin heat exchangers.
29,329
26,638
“environment,”
area of heat control, the SPP segment is highly regarded for its LNG vaporizers
34,000
30,000
sources,”
technology” are the keywords that characterize SPP’s Industrial Products. In the
Operating
Income
（ million ¥）
1,500
landing gear as well as the weaker yen.
In fiscal 2015, the segment anticipates a further increase in net sales to
”Heat/energy
¥1.35 billion
Note: Some of the share figures indicated above are estimated by SPP.
11
2010 2011 2012 2013 2014 2015
（Forecast）
（Forecast）
Major product lines and SPP’s strengths
T O P I C S
●
Heat Control Products
Dornier Names SPP Tier 1
Landing Gear Supplier
Technology developed for aircraft heat exchangers is applied to
industrial equipment
With their high reliability and quality, SPP’s high-performance,
compact, and lightweight plate-fin heat exchangers are acclaimed as
world-class products.
In November 2014, SPP Canada Aircraft, Inc. (SPPCA), a Canadian
subsidiary of SPP, was selected by Dornier Seawings GmbH in
Germany as a landing gear supplier to equip its new Seastar CD2
SPP open-rack LNG vaporizers (ORVs) have a higher share of the
world market than any other competitor.
amphibious flying boat. For the first time, SPPCA received an order
for landing gear systems as a Tier 1 supplier.
SPP is striving to establish itself as a Tier 1 supplier that takes on
direct delivery of landing gear to global aircraft manufacturers. The
LNG Vaporizer
new milestone was a tribute to the various measures SPP had taken
Micro Technology
to that end.
●
9
The segment’s original technology for silicon deep etching systems, which
are used for processing MEMS and other electronic devices, makes them
the segment’s core product category. SPP and its partner SPTS
Technologies accommodate 90% of worldwide demand for these
systems. (SPP focuses on the Japanese market.)
Involvement in the Development of the Rolls-Royce Trent 7000 Engine
In April 2015, SPP and Rolls-Royce in the UK concluded an
product support. The Trent 7000 is slated for exclusive use in the
agreement that SPP take part in the Rolls-Royce project on the Trent
A330 neo, the facelifted variant of the A330 aircraft being developed
7000 engine. Under this agreement SPP is to design, develop, and
by Airbus. The A330 neo is to be put into commercial operation in
produce heat exchangers for the engine and provide aftermarket
2017.
●
Heat Exchanger for Air Separation Plant
SPP serves Japanese heavy electrical equipment manufacturers as
their main supplier of inverter-controlled element coolers for fast
trains.
Silicon Deep Etching System
SiO2 Sacrificial Layer Etching System
Environmental Systems
SPP Purchases Tecnickrome
In June 2015, SPP Canada Aircraft, Inc. (SPPCA), a Canadian
2013 purchase of CFN Precision Ltd., a Canadian manufacturer of
subsidiary of SPP, completed the acquisition of Tecnickrome
landing gear components, the recent acquisition of Tecnickrome will
Aeronautique Inc. (Tecnickrome), a Canadian provider of specialized
significantly enhance the SPP group’s overall capability to provide a
surface finishing services for aerospace equipment. Following the
stable supply of products.
Ozone generating technology is used as a basis to deliver advanced
water treatment systems that are ideal for decomposing persistent
substances.
Ozone generator
New Operations |
AOP water treatment system
Fuel Cells (SOFCs), Wireless Sensor Networks, High Precision Gyro / MEMS Devices
10
Segment
Overview
Industrial
Products
All Existing Departments Strive for Steady Growth
▶ Overview of Business Performance
by Introducing New Products and Opening up New Markets
in Fiscal 2014
Globalization is the keyword for our growth in Industrial Products, too.
capitalize on its sales collaboration and partnerships with local
In the fiscal year under review (fiscal 2014), Industrial Products
In connection with LNG vaporizers, many LNG receiving terminals
companies. Specific measures will include the strengthening of
achieved net sales of ¥17.8 billion, a drop of 3.2% from the previous
are expected to be built in Southeast Asian countries in a few
marketing
years. Low-temperature industrial heat exchangers will benefit
implementation of final assembly processes.
fiscal year. Operating income increased by 53.5% to ¥0.24 billion.
from
activities
in
individual
regions
and
the
local
gas
In the area of Micro Technology, in June 2015 SPP purchased the
liquefaction and downstream petrochemical products worldwide.
Thermal Products operations of the UK’s SPTS and founded a
Particularly promising are exciting developments triggered by the
new group company in the USA. The new affiliate will allow us to
shale gas revolution in North America. The European railroad car
aggressively develop overseas operations and new products in
market is another promising market that promises solid growth.
the area of Micro Technology.
numerous
projects
being
planned
on
natural
Sales promotion to
shale gas projects
in North America
and a delay in launching operations such as those for environmental
systems in China. Operating income was slightly higher than for the
Operating
income
¥0.24 billion
and earnings. Its net sales will reach ¥21.0 billion due to an increase
in sales from Micro Technology and other operations. Streamlining
Operating
Income
Net Sales
（ million ¥）
40,000
35,054
previous fiscal year due to the positive effects of streamlining and
In fiscal 2015, the segment expects to post growth in both revenue
Initiatives/achievements
¥17.8 billion
postponement of sales in Micro Technology to the next fiscal year
cost reductions.
To take advantage of these opportunities, SPP will aggressively
Issue
The year-on-year decline in net sales was caused by the
Net
sales
31,802
Contribution
from SPTS（※）
（ million ¥）
5,000 4,901
4,000
30,000
3,000
18,365 18,393 17,806
20,000
21,000
2,000
1,000
0
0
Wins several large projects (heat exchangers for an LNG manufacturing base and for an ethylene plant)
650
10,000
effects will raise the segment’s operating income to ¥0.65 billion.
Prioritized strengthening of marketing activities in North America
Contribution
from SPTS（※）
4,181
2010 2011 2012 2013 2014 2015
-1,000
（Forecast）
157
241
-164
2010 2011 2012 2013 2014 2015
（Forecast）
*SPP Process Technology Systems (SPTS) has been excluded from consolidation since the third
quarter of fiscal 2011, following the transfer of the SPTS shares in the first half of that fiscal year.
Catalytic reactors
for CompactGTL
Completion of a new enhanced plant for stainless steel heat exchangers for the high-temperature industry
Expansion of Micro
Technology business
Purchase of a Thermal Products business by SPP Technologies Co., Ltd.
T O P I C S
●
SPP Wins a Heat Exchanger Project for
a North American LNG Export Base
Operating with a focus on vaporizers at LNG receiving terminals,
SPP’s heat exchanger business has made numerous achievements.
SPP has aptly responded to the shale gas revolution currently going
Net sales
（billion ¥）
50
3.5%
3.1%
40
2.4%
0.9%
20
21
22
20
16
34
43
9
18
13
18
33
30
Commercialization
of products from
new businesses
1.3%
9
18
27
ow
Gr
20
35
35
0
11
109
123
123
124
d
th
riv
shipping the order in March 2015.
2011
2012
2013
2014
¥18.4
billion
¥17.8
billion
adopted by SPP. Depending on the liquefying method, however,
250
spiral tube products are combined with large-size low-temperature
2.0
industrial heat exchangers, which are plate-fin products. SPP will
continue to promote its products in this area to contribute to
ensuring stable energy supply.
Market launch of
new MT equipment
1.0
●
Heat Control
Products
250
0.0
120
2015
2020
¥21.0
billion
¥50.0
billion
（Forecast）
For the mass-production of LNG, most export bases employ heat
exchangers of a type (spiral tube) different from the plate-fin type
Other
Industrial Products
-0.9%
2010
liquefiers used at LNG export bases. In February 2014, the company
exchangers used in liquefiers at the Cove Point Base in Maryland,
ers
Heat exchangers
・Commercial products
for C-GTL
・Expansion of
overseas operations
on in North America, and worked to expand its business to cover
won a major project for large-sized low-temperature industrial heat
Environmental
business in China
10
113
4.0
3.0
Volum e effect
C ost r ed uction
Clearer differentiation
SPTS
business transfer
30
SPTS (transferred business)
New Operations
Environmental Systems
Micro Technology
Heat Control Products
Operating margin (not including the transferred business)
Operating margin
（％）
Aspiration 2020
-1.0
Purchase of a Thermal Products Business
In June 2015, SPP Technologies Co., Ltd (SPT), a SPP subsidiary,
This purchase allows SPP to expand the Micro Technology
purchased the Thermal Products business from SPTS Technologies
operations conducted mainly by SPT and have an overseas site for
UK Ltd. in the UK. Based in Silicon Valley, the business is related to
the business. At the same time, the company strives to create
the heat treat furnaces used in semiconductor manufacturing
maximum synergy with existing products and technologies to
processes. To take over the business, SPT established a
establish itself as a world-class producer of MEMS and semiconductor
wholly-owned new U.S. company named SPT Microtechnologies
manufacturing equipment and thereby ensure further continued
USA, Inc.
growth.
12
Corporate
Governance
Directors and Audit & Supervisory Board Members ( As of June 26, 2015 )
Corporate Governance
■
Overview of Corporate Governance at SPP
■
Directors
SPP has good corporate governance with the Board of Directors and
operations in a fast and appropriate fashion.
the Audit & Supervisory Board. The Board of Directors meet at least
Audit & Supervisory Board members attend meetings of the Board of
once every month to make decisions on important matters and
Directors and other significant meetings to correctly understand and
Executive Vice President
supervise the implementation of specific tasks. Management
supervise the way the company is actually managed. They also utilize
In charge of Heat Exchangers
Conference meetings of the senior management and Business Study
the Audit and Supervisory Board Members' Office to help audit the
Meetings at individual departments are also held as appropriate to
internal control system and the risk management structure. Under an
ensure exhaustive discussion. If necessary, our legal advisor provides
agreement with an accounting auditor, the company conducts
relevant advice. These procedures allow the company to carry out its
regular audits and, as the need arises, receives professional advice.
■
President
Compliance
To promote compliance activities, SPP has set up a Compliance
independent organization directly reporting to the President. It
Committee, which is responsible for establishing and maintaining
conducts audits on compliance to legal regulations, operational
the company's compliance structure.
efficiency, and the establishment and management of the structure
In carrying out operations at individual departments, regulations on
that is stipulated in the Financial Instruments and Exchange Act for
organizations, division of duties, and decision-making criteria to
the internal control of financial reporting. It then reports the results
clarify the authorities and responsibilities are defined. Furthermore,
to the President and Audit & Supervisory Board to ensure the validity
internal audit regulations and regulations on the audit of internal
of operations as a whole and the reliability of financial reports.
control of financial reporting are in place. According to these
In addition, a whistle-blowing system is established to upgrade the
regulations, the Internal Auditing Department works as an
compliance structure.
■
Sh i n i c h i M I K I
Risk Management
SPP commits itself to understanding and reducing individual risks
conducted by each of the committees. The CSR Committee is
existing in the performance of operations. Starting by identifying
responsible for overall risk management by controlling individual
such risks, the company sets up special committees on individual
special committees and having them report their activities.
items and establishes regulations on the examination and activities
Yo s h i h i s a
N AK AM U R A
Guntaro
K AW AM U R A
Ay a SH I R AI
External Director
Member of the Board, Senior
Executive Officer, Daikin
Industries, Ltd.
Former Mayor of Amagasaki City
External Director, GUNZE
LIMITED
External Director, PEGASUS
SEWING MACHINE MFG. CO., LTD.
Yo s h i o T AOK A
K i y o t a ka N OG I
K a z uo SAD A
Senior Managing Director Senior Managing Director Senior Managing Director In charge of Aerospace,
Research
In charge of Industrial Hydraulic,
Environmental Systems,
Microelectronics Technology,
Corporate Environmental Control
& Facilities Engineering
In charge of Corporate Planning,
Controlling & Treasury,
Information Systems
K a t s u h i ko
H AM ADA
Natsuo
H ASH I M OT O
J un SH I RAI SH I
Managing Director
Managing Director
In charge of Project Management･
Engineering & Development･
Quality Assurance･Thermal
Control Systems -Aerospace,
Purchasing & Transportation
In charge of Business Strategy
Planning･Production･Strategic
Procurement -Aerospace
Ay u m u
T AK AH ASH I
Aki h i ko
M AT SU YU K I
T a k a yuk i
K ASH I WA
Managing Director
Director
Director
In charge of Sensor, Wireless
Sensor Network & Systems,
MEMS & Sensor Systems, Fuel
Cell Systems
In charge of Sales &
Marketing-Aerospace
In charge of Business Strategy
Planning･Production･
Procurement･Engineering･Quality
Assurance -Heat Exchangers
External Director
Director
In charge of General
Administration, Factory Innovation
Center
General Meeting of Shareholders
Appointment/dismissal
Appointment/dismissal
Toshihiro
H AYAM I
Appointment/dismissal
Director
Audit & Supervisory
Board
Board of Directors
(including two external directors)
Audit
Cooperation
Decision-making
External
audit
Supervision
■
President and
Representative Director
Audit & Supervisory
Board Members’ Office
Internal Auditing
Department
Internal audit
Legal Advisor
Advice
Management
Conference
Individual business segments
and indirect department
Affiliated Companies
13
CSR
Committee
Responsible Director
Business Study Meetings
In charge of TSV System
Development, Micro
Technology
Accounting
Auditor
Compliance
Committee and other
Monitoring special committees
control
Audit & Supervisory Board Members
Yo s h i f u m i
K AW AK AM I
Sh i g e ki
I W ASH I T A
Senior Audit &
Supervisory
Board Member
Senior Audit &
Supervisory
Board Member
Ya s u m a s a
N AK AN I SH I
E i i c h i M OR I
Susumu MAEKAWA
External Audit & Supervisory
Board Member
External Audit & Supervisory
Board Member
Attorney at Law
General Manager, Group
Companies Planning Division,
Nippon Steel & Sumitomo Metal
Corporation
External Audit & Supervisory
Board Member
Attorney at Law
14
CSR
Activities
2 Lo c a l c o nt ri b ut i o ns
Comp a ny P r i n c i pl e s
Following the Sumitomo business slogan of “valuing credibility and
discharge our responsibilities to different stakeholders in ensuring
ensuring reliability,” the Sumitomo Precision Products group conducts
sustained business development and an increase in corporate value.
business on the following company principles. In so doing we
“Toward a
Promising Future”
Sumitomo Precision Products
Group will continue to increase
its global presence with
innovative technology, and
will pave its way toward a
prosperous tomorrow.
1. COMPLIANCE: Complying with laws and regulations, we will conduct all business activities
based on the highest ethical standards.
2. CUSTOMER SATISFACTION: Focusing intensely on market demands and clients´ needs, we will
continue to offer quality products and services to achieve the highest customer satisfaction possible.
annual cleanup of walks and
people by making donations to local events and inviting them to our summer
ditches around the SPP Main
festival. We co-sponsored the autumn festival organized by a nearby facility
Plant. We also takes part in
providing assisted living/rehabilitation services for the disabled. During the
Hyogo Prefecture’s “Hyogo
event our car park was opened for visitors to the facility. In Amagasaki City,
Adopt—Lighting Maintenance
SPP’s hometown, we took part in the municipality’s Next-Generation
Partners” project, helping
Development Project, organizing plant tours for elementary school pupils.
maintain road lighting installed
Seihokai, the group of SPP's front-line foremen, spearheads the
along a prefectural route.
3. CHANGE & CHALLENGE: Responding sensitively to global trends, we will boldly try to fully meet these
changes and keep our eyes open to new opportunities that accompany this changing atmosphere.
4. HUMAN RESOU RC ES: Respecti ng o ur human reso urces, w e w i l l pro vi de a suppo r ti v e
environment that encourages each individual's fulfillment and harmony among all employees.
5. COEXISTENCE WITH SOCIETY: By playing an active role in society, we will promote good
citizenship with our community and harmony with the surrounding environment.
CSR Ac tivit i e s
The SPP group started full-fledged CSR activities in April 2006. Chaired
Compliance Committee
by the President, the CSR Committee has built a framework for CSR
Risk Management Committee
activities to probe into group management from the CSR perspective.
At the same time, we have established the “Code of Conduct” on the
CSR activities and the above rules and basic ideas are distributed to all
employees to develop a keen CSR awareness.
Emp l o y e e Re l a t i o ns
1 Re c rui t me nt p l a ns a nd d i ve rs i t y c o mmi t me nt
In the medium term, SPP has the basic policy of hiring 10 to 20 university
diversity. Specific measures include positive recruitment of the disabled
and college graduates and 20 to 30 graduates from professional schools
(the current employment of 34 persons surpasses the legally required
and high schools on a periodical basis. The company also responds
number of 30) and establishing and improving structures for empowering
flexibly to the needs to expand operations by recruiting mid-career
women (In fiscal 2015, Amagasaki City approved SPP as a gender
employees. (SPP welcomed 41 periodically hired employees in April
equality promotor). In recent years, the company has also committed to
2015, after recruiting 24 mid-career employees during fiscal 2014.)
recruiting foreign employees. A further highlight in fiscal 2015 is the
The SPP management also faces up to the challenge of promoting
appointment of a female External Director.
Information Security Committee
basis of the “Company Principles.” Copies of a brochure describing our
CSR
Committee
Particular emphasis is placed on compliance activities. Measures include
Environmental Management Committee
Human Rights Committee
Quality Assurance Committee
education for directors and executives by lawyer lectures and other
programs, maintaining a contact for whistle-blowing and consulting on
Product Liability Committee
legal violations, and distribution of an ethics test sheet and card showing
Safety and Health Committee
the whistle-blowing contact to all employees.
Sha re hold e r a nd In v e s t o r R e l a t i o n s
2 Me a sure s a g a i ns t na t ura l d i s a s t e rs a nd o t he r e me rg e nc i e s
The “Regulations on Measures against Natural Disasters” provide for
regularly—in May and November—to ensure the safety of employees.
emergencies caused by natural disasters such as earthquakes and
Emergencies other than natural disasters are addressed by
typhoons. Following procedures stated in these regulations, every
establishing the “Crisis Management Regulations.” Cards showing
July the company registers equipment likely to cause a hazard during
“Action to Be Taken in Emergencies Such as Earthquakes and
natural disasters, designates evacuation routes and spaces, and
Terrorist Attacks” are provided to all employees to ensure the
maintains an emergency contact network. In addition, drills on
fastest possible action and communication in the event of a
responding to an earthquake early warning (EEW) are conducted
disaster.
3 S a fe t y , he a l t h, a nd fi re p re v e nt i o n
I R a c tivitie s a nd di s c l o s u r e
In addition to committing itself to safety education, SPP holds meetings of
As part of our commitment toward employee mental health, SPP asks an
SPP conducts active IR activities to help shareholders and investors
information in an appropriate
the Safety and Health Committee and monthly ceremonies to pray for safety
external counselor to visit the company twice a month to open a temporary
better understand our business policies and strategies. More specifically,
manner via the security exchange,
at an in-house shrine to improve the safety awareness of all employees.
clinic for consultation on various concerns (such as those over psychological
these include biannual (spring and autumn) presentations of financial
news media, and our website.
In 2015, we give priority to three areas: continued implementation of measures
and physical health, human relationships, and family problems).
results for institutional investors and analysts, financial summaries and
We will remain committed to
annual reports for shareholders, and communication via the SPP website.
upgrading our information disclosure
We will continue to disclose material facts and other relevant
and ensuring the timeliness and usefulness of IR information.
to increase safety sensibility, continued operation of the Occupational Safety
and Health Management System (S-OSHMS), and maintenance and
strengthening of the workplace safety and health management structure.
Year
2013
2014
2015（As of end of June）
Accidents resulting in leave Accidents not resulting in leave
0
0
1
7
1
1
4 Huma n ri g ht s
Re la tions wi t h S o c i e t y
1 Soc ia l c o n t r i bu t i o n s
15
SPP cares about the communities in which it operates. We interact with local
To increase employee awareness of human rights and thereby prevent
discrimination. Examples include providing education for new employees
and eliminate all forms of discrimination, SPP provides relevant
(both new graduates and mid-career employees) and having
education programs including an annual human rights lecture meeting as
representatives participate in education programs provided by authorities.
In fiscal 2014, SPP provided donations and support for various
and presenting winners with extra prizes.
well as educational material distributed to all employees during Human
SPP properly addresses harassment—most typically sexual harassment
educational institutions and cultural/sports initiatives. We took part in the
SPP’s biannual blood donation events attracted a total of 227
Rights Week (December 4 to 10). In addition, we strive to take every
and workplace bullying—by making separate contacts available for both
All Japan Student Indoor Flying Robot Contest as presenter, providing
contributors in fiscal 2014.
opportunity to raise the employee awareness of the need to eliminate
men and women.
16
Environmental
Preservation
Ot he r I nd us t ri a l Pro d uc t s
E nvironme nt a l l y - F r i e n dl y Pr o du cts
Committed toward social contributions through its business
efficiency of resources and energy use, or facilitate environmental
activities, SPP offers many environmentally-friendly products,
preservation. The company also strives to develop new environmental
which are designed to reduce environmental risks, increase the
products and technologies.
Here, SPP works on landfill leachate treatment systems using
power generation technology, are a further area of development
ozone and energy visualization systems. Fuel cells, which are
at SPP. Environmentally-friendly products account for some 40%
drawing enthusiastic attention as an environmentally friendly
of SPP offerings in this category.
■
Ae rosp a c e and R e l a t e d Pr o du c t s
AOP treatment equipment
(landfill leachate treatment system)
In developing new aerospace products, SPP always focuses on weight
development engineers also work actively to reduce noise emissions as
savings, because component weight is an important determinant of the
a way of contributing to environmental protection.
■
EcoWizard
(energy visualization system)
aircraft’s fuel consumption, hence its environmental impact. SPP
■
Development of a low-noise landing gear system
Noise generated from around the landing gear during aircraft
landing is measured to conduct a numerical analysis of noise
sources which helps improve landing gear design
Noise perceived around airports has
■
Development of fuel cells
Fuel cells generate electricity in an electrochemical reaction between oxygen
from the air and hydrogen extracted from various fuels such as utility gas. With its
high generating efficiency, fuel cell technology produces lower CO2 emissions
compared with thermal power generation. It improves energy efficiency even
further since the heat generated during power generation
can also be used as an energy source. Another highlight e- eis that it generates very little
Water H O
noise, sulfur oxides, or nitrogen
O
Fuel* reforming hydrogen H
Oxygen O air
oxides.
2
long been a problem in selecting
2-
2
2
*Such as utility gas, LP gas, or kerosene
Anode electrode
airport locations and is therefore being
controlled increasingly by international
Electrolyte
Cathode electrode
Env i ro nme nt a l Po l i c y a nd Env i ro nme nt a l Ma na g e me nt
regulations. As a partner to the JAXA FQUROH (Flight demonstration of
QUiet technology to Reduce nOise from High-lift configurations) project, SPP
has been developing a low-noise landing gear system, which features
As a responsible member of society, we recognize the significant need to
reduced levels of wind noise during landing. The company aims to have
preserve the local and global environment and meet the challenge of
the new landing gear adopted in next-generation regional jets.
■
Low-consumption and low-noise hydraulic pumps
Source: JAXA
http://www.aero.jaxa.jp/research/ecat/fquroh/
■
Heat exchangers for energy-saving aircraft engines
All hydraulic pumps from SPP not only feature low energy consumption,
Efficient, compact, and lightweight, SPP heat exchangers for aircraft
but also generate very low levels of noise.
engines help increase aircraft fuel efficiency. Some of them feature
shapes that help reduce air drag, contributing to reducing noise.
HS Pump
QT Pumps
Heat exchangers for aircraft engines
He a t E x c ha n g e r s
In the area of heat exchangers, SPP offers many product lines
environmental impact. Environmentally-friendly products account
that help spread clean energy sources and promote the efficient
for half of the SPP heat exchanger lineup.
Environmental Management Officer
Environmental Management
Committee
“harmony with the surrounding environment” stated in the company principle
as one of the top priorities in management, through the following actions:
1. Establish an environmental management system. Set and review environmental
objectives and targets under the system to develop and continually improve
environmental preservation activities involving all employees.
2. Reduce the environmental impact of individual phases of business
operations, for example by preventing environmental pollution.
3. Comply with environmental laws, ordinances, and other requirements.
4. Improve the environmental awareness of employees and facilitate
their environmental preservation activities.
5. Promote company-wide activities for resources/energy saving and recycling.
6. Take advantage of basic technologies that have long been developed
in individual fields including Aerospace, Hydraulic Control, Heat
Control, and Industrial Products, and Environmental Systems to
promote the development of environmental preservation technologies
and products as a means of social contribution.
Environmental Management Representative
General Manager of Corporate Environmental
Control & Facilities Engineering Department
Internal Environmental
Auditor
Corporate Environmental Control &
Facilities Engineering Department
W orki ng D ep a r t m e n t s
Management and
Sales Department
Aerospace
Department
Heat Exchangers
Department
Industrial Equipment
Systems Department
Sensor /
New Operation Department
Purchasing / Research /
Corporate Environmental Control &
Facilities Engineering Department
use of energy by providing support in saving energy and reducing
■
■
Reactors for oil field-associated gas liquefying plants
I ni t i a t i ve s fo r re d uc i ng e nv i ro nme nt a l i mp a c t
Natural gas is regarded as friendly
Gas produced at oil fields today is mostly
To reduce the environmental impact of its operations, SPP strongly commits
▶ Energy usage
to the environment since it generates
injected back or burned in the atmosphere,
itself toward company-wide activities for saving energy and resources.
Energy usage GJ
low emissions of CO 2 and NOx
accelerating global warming.
The resources-saving initiative focuses on recycling activities, including
and
during
CompactGTL, a partner of SPP, develops plants
not only the reuse of metallic waste generated from the production
combustion. SPP develops and
for generating synthetic crude oil from associated
process, but also the reuse of logistics and packaging materials and the
produces equipment that vaporizes
gas—an innovative technology that eliminates gas
recycling of paper by meticulous separation.
natural gas liquefied for transport
emissions while at the same time increasing oil production. SPP is responsible
purposes (LNG).
for the development of reactors that support the CompactGTL process.
■
17
LNG vaporizers
no
sulfur
oxides
Development of heat exchangers for hydrogen stations
Specific
consumption
（Thousand）
600
500
1.2
Energy usage GJ
Specific consumption per ¥million of added value
1.0
400
0.8
The energy-saving work is spearheaded by the Energy-Saving
300
0.6
Committee. Individual workplaces are expected to reduce energy use
200
0.4
through stringent control. In addition, they try to make a difference
100
0.2
through small efforts, such as switching to energy-saving equipment,
0
2009
2010
2011
2012
2013
2014
0
Hydrogen is raising expectations as a clean source of energy since
Hydrogen supply infrastructure is the key requirement for a
removal of some lights, and turning off the power to unused equipment.
the gas generates no CO2 emissions during combustion. All-out
widespread use of hydrogen fuel cell vehicles. In this connection, SPP
These activities do not immediately result in a substantial reduction in
manufacturing differs depending on the product. But they do help us in
national efforts are now under way to build a hydrogen society.
works on the development of heat exchangers for hydrogen stations.
company-wide energy usage because, at SPP, energy usage during
our efforts to maintain it at certain levels and even reduce it.
18
Consolidated
Financial
Statements
Sumitomo Precision Products Co., Ltd. and Consolidated Subsidiaries
Consolidated Balance Sheet
March 31, 2015
Thousa nds of
U.S. Dol l ars
(Note 1 )
Millions of Ye n
A SS E T S
2015
2014
2015
CU R R E N T A S S E T S :
C a s h a n d c a sh e q u i val en ts (No te 1 2 )
U n c o n so l i d a t e d s u bs i di ari es an d as s o ci ated co m p a nie s
A l l o w a n c e f o r d o u btf u l acco u n ts
Inventories (Note 5)
D e f e r r e d t a x a ss ets (No te 1 0 )
O t h e r c u r r e n t a ss ets
T o t a l c u r r e n t as s ets
¥8,968
¥9,832
$74,640
20,714
20,117
1 7 2 , 40 1
216
916
1 , 79 8
(9)
(8 )
( 7 5)
25,643
22,104
2 1 3 , 42 5
1,068
784
8,889
378
1,113
3,146
56,978
54,858
474,224
4,229
38,976
Bu i l d i n g s a n d st r uctu res (No te 6 )
19,198
18,525
159,784
M a c h i n e r y a n d e q u i pm en t
35,566
32,806
296,013
415
375
3,454
Co n s t r u c t i o n i n p r o g res s
Total
A c c u m u l a t e d d e p reci ati o n
N e t p r o p e r t y, pl an t an d equ i pm en t
2015
¥ 1 3 ,6 1 0
¥15,157
$113,275
2 ,4 6 1
2,330
20,483
Trade not es
2 ,7 9 5
3,134
23,263
Trade account s
5 ,0 8 5
4,728
42,322
22
77
183
251
3,158
2,089
S hort -t erm bank l oans (N ot es 6 and 12)
P ay abl es (N ot es 12):
U ncons ol i dat ed s ubs i di ari es and as s oci at ed compani es
C ons t ruct i on
2 ,8 2 7
2,374
23,529
I ncome t ax es pay abl e
1 ,1 0 3
176
9,180
A ccrued ex pens es
1 ,3 1 0
1,172
10,903
Ot her current l i abi l i t i es
1 ,9 4 6
1,641
16,196
3 1 ,4 1 0
33,947
261,423
1 3 ,3 6 4
10,488
111,228
Ot her
Tot al current l i abi l i t i es
4,683
L e a s e a ss e t s ( N o t e 1 1 )
2014
C urrent port i on of l ong-t erm debt (N ot es 6 and 12)
PR O P E R T Y , P L A N T AND E Q UI PME NT:
Land (Note 6)
2015
LI A B I LI TI E S A N D E QU I TY
C U R R EN T LI A B I LI TI ES :
N o t e s a n d a c c o u n ts recei vabl e (No te 1 2 ):
Trade
Thousands of
U. S. Do lla r s
( No t e 1)
Mi l l i ons of Ye n
69
1,017
574
59,931
56,952
4 9 8 , 80 1
(40,407)
(37,676)
( 3 3 6 , 3 0 5)
19,524
19,276
1 6 2 , 49 6
LON G - TER M LI A B I LI TI ES :
Long-t erm debt (N ot es 6 and 12)
D ef erred t ax l i abi l i t i es (N ot e 10)
759
740
6,317
Li abi l i t y f or ret i rement benef i t s (N ot e 7)
742
1,073
6,176
A s s et ret i rement obl i gat i ons
134
131
1,115
80
337
665
1 5 ,0 7 9
12,769
125,501
Ot her l ong-t erm l i abi l i t i es
Tot al l ong-t erm l i abi l i t i es
C OM M I TM EN TS A N D C ON TI N G EN T LI A B I LI TI ES ( N ote 13)
IN V E S T M E N T S A N D O THE R ASSE TS:
In v e st m e n t se c u r i ti es (No tes 4 an d 1 2 )
Investments in and advances to unconsolidated subsidiaries and associated companies
EQU I TY ( N otes 6, 8 and 16) :
2,187
1,710
1,834
1,934
18,202
Common stock, authorized, 200,000,000 shares; issued, 53,167,798 shares in 2015 and 2014
1 0 ,3 1 2
10,312
85,826
14,232
C api t al s urpl us
1 1 ,3 3 2
11,332
94,315
R et ai ned earni ngs
1 2 ,9 6 5
11,877
107,907
(9 5 )
(92)
(791)
In t a n g i b l e a ss e t s:
Goodwill
159
175
1 , 32 3
O t h e r i n t a n g i b l e as s ets
712
434
5 , 92 6
D e f e r r e d t a x a ss e ts (No te 1 0 )
400
621
3 , 32 9
Ot h e r a s s e t s
251
1,062
2 , 09 0
A l l o w a n c e f o r d o u btf u l acco u n ts
(22)
(186)
( 1 8 3)
(6 0 )
A l l o w a n c e f o r i n v es tm en t l o s s
T o t a l i n v e stm en ts an d o th er as s ets
TOTAL
5,397
5,814
44,919
¥81,899
¥79,948
$ 6 8 1 , 63 9
T reasury stock - at cost 227,082 shares in 2015 and 222,298 shares in 2014
A ccumul at ed ot her comprehens i v e i ncome:
U nreal i z ed gai n on av ai l abl e-f or-s al e s ecuri t i es
696
404
5,793
Forei gn currency t rans l at i on adj us t ment s
194
(35)
1,615
(6 8 0 )
(1,054)
(5,660)
D ef i ned ret i rement benef i t pl ans
3 4 ,7 2 4
32,744
289,005
Mi nori t y i nt eres t s
686
488
5,710
Tot al equi t y
3 5 ,4 1 0
33,232
294,715
¥ 8 1 ,8 9 9
¥79,948
$681,639
Tot al
TOTA L
S ee n ot es t o co n s olida ted financial statem ents.
19
20
Consolidated
Financial
Statements
Sumitomo Precision Products Co., Ltd. and Consolidated Subsidiaries
Consolidated Statement of Income
Year Ended March 31, 2015
Consolidated Statement of Changes in Equity
Year Ended March 31, 2015
Millions of Ye n
NE T S A L E S
CO S T O F S A L E S ( N ote 1 1 )
Gross profit
SE L L I N G , G E N E R A L AND ADMI NI STR ATI V E E X PE NSES (N o tes 9 and 11)
O p e r a t i n g i nco m e
O T H E R I N C O M E ( EX PE NSE S) :
I n t e r e st a n d d i v i d en d i n co m e
I n t e r e st e x p e n se
L o s s o n d i s p o s a l o f pro perty, pl an t an d equ i pm en t
G a i n o n f o r e i g n c urren cy ex ch an g e
E q u i t y i n e a r n i n g s o f as s o ci ated co m pan i es
P r o v i si o n o f a l l o wan ce f o r do u btf u l acco u n ts
P r o v i si o n o f a l l o wan ce f o r i n ves tm en t l o s s
G a i n o n s a l e s o f in ves tm en t s ecu ri ti es
Other - net
O t h e r i n c o m e - n et
Thousa nds of
U.S. Dol l ars
(Note 1 )
2015
¥47,135
2014
¥45,032
36,309
10,826
35,255
9,777
3 0 2 , 19 7
9 0 , 10 4
9,228
1,598
8,814
963
7 6 , 80 4
1 3 , 30 0
350
(274)
(249)
691
89
(281)
168
(261)
(17)
761
21
(163)
(60)
Thous ands of S hares /Mi l l i ons of Yen
2015
$ 3 9 2 , 30 1
2,913
( 2 , 2 8 0)
( 2 , 0 7 2)
5 , 75 1
741
(2,339)
Common Stock
Shares
B A LA N C E, A P R I L 1, 2013
(32)
417
4 , 22 8
832
7 , 77 4
2,532
1,380
2 1 , 07 4
IN C O M E T A X E S ( N o te 1 0 ) :
Current
Deferred
T o t a l i n c o m e tax es
1,290
(335)
955
396
281
677
1 0 , 73 6
( 2 , 7 8 8)
7 , 94 8
NE T I N C O M E B E F O R E MI NO R I TY I NTE R E STS
1,577
703
1 3 , 12 6
127
118
1 , 05 8
¥1,450
¥585
$ 1 2 , 06 8
MI N O R I T Y I N T E R E S T I N NE T I NCO ME
NE T I N C O M E
Ye n
PE R S H A R E O F C O MMO N STO CK ( Note 2 .w) :
B a si c n e t i n c o m e
C a s h d i v i d e n d s a p pl i cabl e to th e year
¥27.39
7.00
53,168 ¥10,312 ¥11,332 ¥11,662
N et i ncome
B A LA N C E, M A R C H 31, 2014
53,168
53,168
¥1,577
2014
¥703
2015
$13,126
TO T A L C O M P R E H E NSI V E I NCO ME ATTR I B UTAB L E T O:
O w n e r s o f t h e p a ren t
M i n o r i t y i n t e r e st s
21
S ee n ot es t o co n s olida ted financial statem ents.
292
201
374
76
943
75
180
98
353
2,431
1,672
3,113
632
7,848
¥2,520
¥1,056
$20,974
¥876
180
$19,517
1,457
(12)
(12)
11,877
11,857
(370)
28
P urchas e of t reas ury s t ock
(222 )
( 12)
( 92)
404
215 ¥(1,054)
(35)
(222 )
(92)
(1,054) 32,744
175
488
404
( 35)
(1,054) 32,724
488
28
(227)
¥(95)
(3)
(3)
229
¥696
¥194
374
895
¥(680) ¥34,724
33,212
(370)
28
292
33,232
1,450
(370)
(3)
(589)
(20)
1,450
N et change i n t he y ear
53,168 ¥10,312 ¥11,332 ¥12,965
(764)
(20)
( 5)
198
1,093
¥686 ¥35,410
Thous ands of U .S . D ol l ars (N ot e 1)
Common
Stock
Treasury
Stock
Accumulated Othe r
Comprehens ive Income
Ca p i t a l R e t a i n e d
Surplus Earnings
A mo u n t
Foreign
Defined
Unrealized
Currency Retirement
Gain on
Benefit
Available -for- Translation
Plans
Sale Securities Adjustments
$85,826 $94,315 $98,851
$(766)
Cumulative effect of accounting change
B A LA N C E, A P R I L 1, 2014 (as restated)
C as h di v i dends , $0.06 per s hare
C hange i n s cope of cons ol i dat i on
$3,362
94,315
Mi nori ty
Interes ts
Total
Eq ui ty
$4,062 $276,587
(166)
(166)
(8,772) 272,359
4,062 276,421
12,068
12,068
12,068
(3,079)
(3,079)
(3,079)
233
233
233
(25)
(25)
(166)
85,826
Total
$(291) $(8,772) $272,525
98,685
P urchas e of t reas ury s t ock
(766)
3,362
(291)
(25)
N et change i n t he y ear
B A LA N C E, M A R C H 31, 2015
¥2,345
175
¥33,618
585
Change in scope of consolidation
N et i ncome
CO M P R E H E N S I V E INCO ME
11,332
¥313
Total
Eq ui ty
(370)
C as h di v i dends , ¥7.0 per s hare
(APRIL 1, 2014, as previously reported)
2015
11,332
Mi nori ty
Interes ts
585
1,450
B A LA N C E, M A R C H 31, 2014
Millions of Ye n
O T H E R C O M P R E H ENSI V E I NCO ME ( Note 1 4 ) :
U n r e a l i z e d g a i n o n avai l abl e-f o r-s al e s ecu ri ti es
F o r e i g n c u r r e n c y tran s l ati o n adj u s tm en ts
D e f i n e d r e t i r e m e n t ben ef i t pl an s
S h a r e o f o t h e r c o m preh en s i ve i n co m e i n as s o ci ates
T o t a l o t h e r co m preh en s i ve i n co m e
10,312
A mo u n t
Thousa nds of
U.S. Dol l ars
(Note 1 )
¥33,305
(20)
D i lu t ed n et in come per shar e is not p r esented b ecause no d iluti ve se c u r itie s e xist.
S ee n ot es t o co n s olida ted financial statem ents.
NE T I N C O M E B E F O R E MI NO R I TY I NTE R E STS
10,312
N et i ncome
B A LA N C E, M A R C H 31, 2015
¥( 250 )
¥329
75
Cumulative effect of accounting change
(as restated)
Total
(370)
N et change i n t he y ear
$ 0 .2 3
0 .0 6
Consolidated Statement of Comprehensive Income
Year Ended March 31, 2015
¥( 80)
Foreign
Defined
Unrealized
Currency Retirement
Gain on
Benefit
Available -for- Translation
Plans
Sale Securities Adjustments
585
( 28)
U.S. Do l l ars
¥11.05
7.00
(194)
A mo u n t
Accumulated Othe r
Comprehens ive Income
(370)
P urchas e of t reas ury s t ock
B A LA N C E, A P R I L 1, 2014
IN C O M E B E F O R E INCO ME TAX E S AND MI NO R I TY I NT EREST S
Ca p i t a l R e t a i n e d S h a r e s
Surplus Earnings
C as h di v i dends , ¥7.0 per s hare
(APRIL 1, 2014, as previously reported)
508
100
934
A mo u n t
Treas ury Stock
2,431
$85,826 $94,315 $107,907
$(791)
$5,793
1,906
3,112
7,449
$1,615 $(5,660) $289,005
1,648
9,097
$5,710 $294,715
S e e n o t e s t o c o n s o l i d a t e d f i n a n c i a l s t a t e me n t s .
22
Consolidated
Financial
Statements
Sumitomo Precision Products Co., Ltd. and Consolidated Subsidiaries
Consolidated Statement of Cash Flows
Year Ended March 31, 2015
Notes to Consolidated Financial Statements
Year Ended March 31, 2015
Thousa nds of
U.S. Dol l ars
(Note 1 )
Millions of Ye n
2015
2014
¥2,532
¥1,380
2015
O P E R A T I N G A C T I V I TI E S:
I n c o m e b e f o r e i n c o m e tax es an d m i n o ri ty i n teres ts
$21,074
A d j u st m e n t s f o r :
I n c o m e t a x e s p ai d
I n c o m e t a x e s r e f u n ded
D e p r e c i a t i o n a n d am o rti zati o n
A m o r t i z a t i o n o f g o o dwi l l
L o ss o n d i s p o s al o f pro perty, pl an t an d equ i pm en t
I n c r e a se i n a l l o wan ce f o r do u btf u l acco u n ts
I n c r e a se i n a c c ru ed ex pen s es
D e c r e a s e ( i n c r e a s e) i n l i abi l i ty f o r reti rem en t ben ef its
(4 1 2 )
45
2,461
20
249
284
29
(17)
I n c r e a se i n a l l o wan ce f o r i n ves tm en t l o s s
I n c r e a se i n a s s et reti rem en t o bl i g ati o n s
G a i n o n sa l e s o f i n ves tm en t s ecu ri ti es
G a i n o n f o r e i g n cu rren cy ex ch an g e
E q u i t y i n e a r n i n g s o f as s o ci ated co m pan i es
3
(5 0 8 )
(25)
(89)
(355)
7
2,130
18
17
170
117
6
60
3
(2 6 5 )
(21)
(3 , 4 2 9 )
375
20,483
166
2 , 07 2
2 , 36 4
241
( 1 41 )
25
( 4 , 2 28 )
( 2 08 )
( 7 41 )
C h a n g e s i n a s s ets an d l i abi l i ti es , n et o f ef f ects :
D e c r e a se i n trade n o tes an d acco u n ts recei vable
I n c r e a s e i n i n ven to ri es
D e c r e a se ( i ncreas e) i n o th er cu rren t as s ets
I n c r e a s e ( d ecreas e) i n trade n o tes an d acco u n ts p a ya b le
D e c r e a se ( i ncreas e) i n o th er cu rren t l i abi l i ti es
Other - net
T o t a l a dj u s tm en ts
N e t c a sh pro vi ded by (u s ed i n ) o perati n g activitie s
512
(2,998)
83
315
(2 9 9 )
23
(3 2 4 )
2,208
68
(2,746)
(178)
(1,511)
415
(72)
(2 , 1 3 7 )
(757)
4 , 26 1
(24,952)
691
2 , 62 2
( 2 , 4 89 )
19 1
( 2 , 6 97 )
18,377
P u r c h a se o f i n t an g i bl e as s ets
(4,453)
(1 1 8 )
P r o c e e d s f r o m sal es o f pro perty, pl an t an d equ i pme nt
Purchases of investments in subsidiaries resulting in change in scope of consolidation
P u r c h a se s o f i n ves tm en ts i n co n s o l i dated s u bs i di ary
P u r c h a se s o f i n ves tm en t s ecu ri ti es
P r o c e e d s f r o m sal es o f i n ves tm en t s ecu ri ti es
P a y m e n t s o f l o an s recei vabl e
P r o c e e d s f r o m c o l l ecti o n o f l o n g -term l o an s recei va b le
Other - net
N e t c a sh u s ed i n i n ves ti n g acti vi ti es
(21)
(7)
(31)
511
(5 2 0 )
546
11
(4 , 0 8 2 )
(1 , 1 7 0 )
(128)
15
(708)
(320)
(164)
34
32
(2,409)
P r o c e e d s f r o m lo n g -term debt
R e p a y m e n t s o f l o n g -term debt
Dividends paid
P a y m e n t s f o r sal es an d redem pti o n by i n s tal l m en t p a yme nt
C a sh d i v i d e n d s pai d to m i n o ri ty s h areh o l ders
Other - net
N e t c a s h pro vi ded by f i n an ci n g acti vi ti es
FOREIGN CURRENCY TRANSLATION ADJUSTMENTS ON CASH AND CASH EQUIVALENTS
NE T D E C R E A S E I N CASH AND CASH E Q UI V AL E NTS
CA S H A N D C A S H E Q UI V AL E NTS, B E G I NNI NG O F YE AR
CASH AND CASH EQUIVALENTS OF NEWLY CONSOLIDATED SUBSIDIARIES
CA S H A N D C A S H E Q UI V AL E NTS, E ND O F YE AR
(1 , 5 9 9 )
5,281
(2 , 2 9 9 )
(370)
(201)
(2)
(2)
808
108
(958)
9,832
94
¥8,968
843
2,337
(2,548)
(3 7 0 )
(2 1 8 )
(5)
(3)
36
200
(2,930)
12,762
¥9,832
procedures applied to a parent company and its subsidiaries for similar
The accompanying consolidated financial statements of Sumitomo
transactions and events under similar circumstances should in principle
Precision Products Co., Ltd. (the "Company") have been prepared in
be unified for the preparation of the consolidated financial statements.
accordance with the provisions set forth in the Japanese Financial
However, financial statements prepared by foreign subsidiaries in
Instruments and Exchange Act and its related accounting regulations and in
accordance with either International Financial Reporting Standards or
accordance with accounting principles generally accepted in Japan
generally accepted accounting principles in the United States of America
("Japanese GAAP"), which are different in certain respects as to application
tentatively may be used for the consolidation process, except for the
and disclosure requirements of International Financial Reporting Standards.
following items that should be adjusted in the consolidation process so
In preparing these consolidated financial statements, certain reclassifications
that net income is accounted for in accordance with Japanese GAAP,
and rearrangements have been made to the Company's consolidated
unless they are not material: (a) amortization of goodwill; (b) scheduled
financial statements issued domestically in order to present them in a form
amortization of actuarial gain or loss of pensions that has been recorded
which is more familiar to readers outside Japan.
In addition, certain
in equity through other comprehensive income; (c) expensing capitalized
reclassifications have been made in the 2014 consolidated financial
development costs of R&D; (d) cancellation of the fair value model of
statements to conform to the classifications used in 2015.
accounting for property, plant and equipment and investment properties
The consolidated financial statements are stated in Japanese yen, the
and incorporation of the cost model of accounting; and (e) exclusion of
currency of the country in which the Company is incorporated and operates.
minority interests from net income, if contained in net income.
The translations of Japanese yen amounts into U.S. dollar amounts are
c. Unification of Accounting Policies Applied to Foreign Associated
included solely for the convenience of readers outside Japan and have been
Companies for the Equity Method - In March 2008, the ASBJ issued
made at the rate of ¥120.15 to $1, the approximate rate of exchange at
ASBJ Statement No. 16, "Accounting Standard for Equity Method of
March 31, 2015.
Such translations should not be construed as
Accounting for Investments." The new standard requires adjustments to
representations that the Japanese yen amounts could be converted into
be made to conform the associate's accounting policies for similar
U.S. dollars at that or any other rate.
transactions and events under similar circumstances to those of the
parent company when the associate's financial statements are used in
2.SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
applying the equity method unless it is impracticable to determine such
adjustments.
In addition, financial statements prepared by foreign
associated companies in accordance with either International Financial
( 3 7 , 0 62 )
( 9 82 )
2015, include the accounts of the Company and its thirteen (ten in 2014)
Reporting Standards or generally accepted accounting principles in the
significant subsidiaries (together, the "Group").
SPP Nagasaki
United States of America tentatively may be used in applying the equity
Engineering Co., Ltd., Shinsen Seiki Co., Ltd. and M2M Technologies
method if the following items are adjusted so that net income is
( 1 75 )
( 5 8)
(2 58 )
4 , 25 3
( 4 , 3 2 8)
4 , 54 4
92
( 3 3 , 9 74 )
Inc. became consolidated subsidiaries during the period.
accounted for in accordance with Japanese GAAP, unless they are not
Under the control and influence concepts, those companies in which the
material:
Company, directly or indirectly, is able to exercise control over operations
actuarial gain or loss of pensions that has been recorded in equity
are fully consolidated, and those companies over which the Group has
through other comprehensive income; (c) expensing capitalized
the ability to exercise significant influence are accounted for by the equity
development costs of R&D; (d) cancellation of the fair value model of
method.
accounting for property, plant and equipment and investment properties
Investments in four (four in 2014) associated companies are accounted
and incorporation of the cost model of accounting; and (e) exclusion of
FIN A N C I N G A C T I V I TI E S:
I n c r e a se ( d e c r e as e) i n s h o rt-term ban k l o an s - n et
Statements." PITF No. 18 prescribes that the accounting policies and
a. Consolidation - The consolidated financial statements as of March 31,
IN V E S T I N G A C T I V I T I E S:
P u r c h a se s o f p ro perty, pl an t an d equ i pm en t
Policies Applied to Foreign Subsidiaries for the Consolidated Financial
1.BASIS OF PRESENTING CONSOLIDATED
FINANCIAL STATEMENTS
(1 3 , 3 08 )
4 3 , 95 3
( 1 9 , 1 34 )
( 3 , 0 7 9)
( 1 , 6 7 3)
( 1 7)
(1 7)
6,725
899
( 7 , 9 7 3)
81,831
782
$ 7 4 , 64 0
for by the equity method.
(a) amortization of goodwill; (b) scheduled amortization of
minority interests from net income, if contained in net income.
Investments in the remaining unconsolidated subsidiary and associated
d. Business Combinations - In October 2003, the Business Accounting
company are stated at cost. If the equity method of accounting had
Council issued a Statement of Opinion, "Accounting for Business
been applied to the investments in these companies, the effect on the
Combinations," and in December 2005, the ASBJ issued ASBJ
accompanying consolidated financial statements would not be material.
Statement No. 7, "Accounting Standard for Business Divestitures" and
The excess of the cost of acquisition over the fair value of the net assets
ASBJ Guidance No. 10, "Guidance for Accounting Standard for
of an acquired subsidiary at the date of acquisition is being amortized
Business Combinations and Business Divestitures."
over a period of 10 years.
standard for business combinations allowed companies to apply the
The accounting
All significant intercompany balances and transactions have been
pooling-of-interests method of accounting only when certain specific
eliminated in consolidation.
criteria are met such that the business combination is essentially
All material unrealized profit included in
assets resulting from transactions within the Group is also eliminated.
regarded as a uniting-of-interests. For business combinations that do
b. Unification of Accounting Policies Applied to Foreign Subsidiaries for
not meet the uniting-of-interests criteria, the business combination is
the Consolidated Financial Statements - In May 2006, the Accounting
considered to be an acquisition and the purchase method of accounting
Standards Board of Japan (the "ASBJ") issued ASBJ Practical Issues
is required.
Task Force (PITF) No. 18, "Practical Solution on Unification of Accounting
combinations of entities under common control and for joint ventures.
This standard also prescribes the accounting for
S ee n ot es t o co n s olida ted financial statem ents.
23
24
Consolidated
Financial
Statements
Sumitomo Precision Products Co., Ltd. and Consolidated Subsidiaries
In December 2008, the ASBJ issued a revised accounting standard for
i. Other Intangible Assets - Intangible assets, except for goodwill, are
amortized on a straight-line basis over 10 years within the average
and ASBJ Guidance No. 21, "Guidance on Accounting Standard for Asset
business combinations, ASBJ Statement No. 21, "Accounting Standard
stated at cost less accumulated amortization, which is computed by the
remaining service period.
Retirement Obligations."
for Business Combinations."
straight-line method over the estimated useful lives of the assets. The
In May 2012, the ASBJ issued ASBJ Statement No. 26, "Accounting
retirement obligation is defined as a legal obligation imposed either by law
useful life is principally 5 years for software for internal use.
Major accounting changes under the
revised accounting standard are as follows: (1) The revised standard
Standard for Retirement Benefits" and ASBJ Guidance No. 25,
or contract that results from the acquisition, construction, development and
requires accounting for business combinations only by the purchase
j. Long-Lived Assets - The Group reviews its long-lived assets for
"Guidance on Accounting Standard for Retirement Benefits," which
normal operation of a tangible fixed asset and is associated with the
method. As a result, the pooling of interests method of accounting is no
impairment whenever events or changes in circumstances indicate the
replaced the accounting standard for retirement benefits that had been
retirement of such tangible fixed asset. The asset retirement obligation is
longer allowed. (2) The previous accounting standard required research
carrying amount of an asset or asset group may not be recoverable. An
issued by the Business Accounting Council in 1998 with an effective date
recognized as the sum of the discounted cash flows required for the future
and development costs to be charged to income as incurred. Under the
impairment loss is recognized if the carrying amount of an asset or asset
of April 1, 2000, and the other related practical guidance, and were
asset retirement and is recorded in the period in which the obligation is
revised standard, in-process research and development costs (IPR&D)
group exceeds the sum of the undiscounted future cash flows expected
followed by partial amendments from time to time through 2009.
incurred if a reasonable estimate can be made. If a reasonable estimate of
acquired in the business combination are capitalized as an intangible
to result from the continued use and eventual disposition of the asset or
(a) Under the revised accounting standard, actuarial gains and losses
the asset retirement obligation cannot be made in the period the asset
asset. (3) The previous accounting standard provided for a bargain
asset group. The impairment loss would be measured as the amount by
and past service costs that are yet to be recognized in profit or loss
retirement obligation is incurred, the liability should be recognized when a
purchase gain (negative goodwill) to be systematically amortized over a
which the carrying amount of the asset exceeds its recoverable amount,
are recognized within equity (accumulated other comprehensive
reasonable estimate of the asset retirement obligation can be made. Upon
period not exceeding 20 years. Under the revised standard, the acquirer
which is the higher of the discounted cash flows from the continued use
income), after adjusting for tax effects, and any resulting deficit or
initial recognition of a liability for an asset retirement obligation, an asset
recognizes the bargain purchase gain in profit or loss immediately on the
and eventual disposition of the asset or the net selling price at
surplus is recognized as a liability (liability for retirement benefits) or
retirement cost is capitalized by increasing the carrying amount of the
acquisition date after reassessing and confirming that all of the assets
disposition.
asset (asset for retirement benefits).
related fixed asset by the amount of the liability. The asset retirement cost
acquired and all of the liabilities assumed have been identified after a
k. Derivatives and Hedging Activities - The Group uses derivative financial
(b) The revised accounting standard does not change how to recognize
is subsequently allocated to expense through depreciation over the
review of the procedures used in the purchase price allocation. The
instruments to manage its exposures to fluctuations in foreign exchange
actuarial gains and losses and past service costs in profit or loss.
remaining useful life of the asset. Over time, the liability is accreted to its
revised standard was applicable to business combinations undertaken
and interest rates. Foreign exchange forward contracts and interest rate
Those amounts are recognized in profit or loss over a certain period
present value each period. Any subsequent revisions to the timing or the
on or after April 1, 2010.
swaps are utilized by the Group to reduce foreign currency exchange
no longer than the expected average remaining service period of the
amount of the original estimate of undiscounted cash flows are reflected as
The Group acquired 100% of SPP Nagasaki Engineering Co, Ltd. on April
and interest rate risks. The Group does not enter into derivatives for
employees. However, actuarial gains and losses and past service
an adjustment to the carrying amount of the liability and the capitalized
1, 2014, and accounted for it by the purchase method of accounting.
trading or speculative purposes.
costs that arose in the current period and have not yet been
e. Cash Equivalents - Cash equivalents are short-term investments that are
Derivative financial instruments are classified and accounted for as
recognized in profit or loss are included in other comprehensive
q. Leases - In March 2007, the ASBJ issued ASBJ Statement No. 13,
readily convertible into cash and that are exposed to insignificant risk of
follows: (1) all derivatives are recognized as either assets or liabilities and
income and actuarial gains and losses and past service costs that
"Accounting Standard for Lease Transactions," which revised the
changes in value.
measured at fair value, and gains or losses on derivative transactions are
were recognized in other comprehensive income in prior periods and
previous accounting standard for lease transactions.
Cash equivalents include time deposits, which mature or become due
recognized in the consolidated statement of income, and (2) for
then recognized in profit or loss in the current period are treated as
accounting standard for lease transactions was effective for fiscal years
within three months of the date of acquisition.
derivatives used for hedging purposes, if such derivatives qualify for
reclassification adjustments.
beginning on or after April 1, 2008.
amount of the related asset retirement cost.
The revised
f. Inventories - Inventories are stated at the lower of cost, determined by the
hedge accounting because of high correlation and effectiveness
(c) The revised accounting standard also made certain amendments
Under the previous accounting standard, finance leases that were
average method for finished goods, semi-finished goods, and work in
between the hedging instruments and the hedged items, gains or losses
relating to the method of attributing expected benefit to periods, the
deemed to transfer ownership of the leased property to the lessee were
process, by the specific identification method for certain work in process,
on derivatives are deferred until maturity of the hedged transactions.
discount rate and expected future salary increases.
capitalized.
and by the moving-average method for all raw materials and supplies, or
Interest rate swaps, which qualify for hedge accounting and meet
This accounting standard and the guidance for (a) and (b) above are
accounted for as operating lease transactions if certain "as if capitalized"
net selling value.
specific matching criteria are not remeasured at market value but the
effective for the end of annual periods beginning on or after April 1, 2013,
information was disclosed in the notes to the lessee's financial
differential paid or received under the swap agreements is recognized
and for (c) above are effective for the beginning of annual periods
statements. The revised accounting standard requires that all finance
and included in interest expense.
beginning on or after April 1, 2014, or for the beginning of annual periods
lease transactions be capitalized by recognizing lease assets and lease
l. Allowance for Doubtful Accounts - Notes and accounts receivable,
beginning on or after April 1, 2015, subject to certain disclosure in March
obligations in the consolidated balance sheet.
including loans and other receivables, are valued by providing individually
2015, all with earlier application being permitted from the beginning of
The Company and its consolidated domestic subsidiaries applied the
categories.
estimated uncollectible amounts plus the amounts for probable losses
annual periods beginning on or after April 1, 2013.
revised accounting standard effective April 1, 2008.
Available-for-sale securities, which are not classified as either trading
calculated by applying a percentage based on collection experience to
retrospective application of this accounting standard to consolidated
securities or held-to-maturity debt securities, are reported at fair value,
the remaining accounts.
financial statements in prior periods is required.
g. Investment Securities - The standard requires all applicable securities to
be classified and accounted for, depending on management's intent, as
trading securities, held-to-maturity debt securities or available-for-sale
securities.
The Group does not have securities in the former two
However, no
However, other finance leases were permitted to be
All other leases are accounted for as operating leases.
r. Bonuses to Directors and Audit & Supervisory Board Members -
m. Allowance for Investment Loss - Allowance for investment loss provides
The Group applied the revised accounting standard and guidance for
separate component of equity.
for loss from investments to associated companies. The amount is
retirement benefits for (a) and (b) above, effective March 31, 2014, and
Nonmarketable available-for-sale securities are stated at cost
estimated in light of the financial standings of the associated companies.
for (c) above, effective April 1, 2014.
determined by the moving-average method. For other-than-temporary
n. Retirement Benefits - The Company and its consolidated domestic
With respect to (c) above, the Group changed the method of attributing
Statement No. 15, "Accounting Standard for Construction Contracts"
declines in fair value, investment securities are reduced to net realizable
subsidiaries have defined benefit retirement plans covering substantially
the expected benefit to periods from a straight-line basis to a benefit
and ASBJ Guidance No. 18, "Guidance on Accounting Standard for
value by a charge to income.
all of their employees. The Group accounts for the liability for retirement
formula basis and the method of determining the discount rate from
Construction Contracts." Under this accounting standard, construction
benefits based on projected benefit obligations and plan assets at the
using the period which approximates the expected average remaining
revenue and construction costs should be recognized by the
stated at cost. Depreciation of property, plant and equipment of the
consolidated balance sheet date.
service period to using a single weighted average discount rate reflecting
percentage-of-completion method if the outcome of a construction
Company and its consolidated domestic subsidiaries is computed
Effective April 1, 2000, the Company adopted a new accounting
the estimated timing and amount of benefit payment, and recorded the
contract can be estimated reliably. When total construction revenue,
generally by the declining-balance method, while the straight-line method
standard for retirement benefits and accounted for the liability for
effect of (c) above as of April 1, 2014, in retained earnings. The effects of
total construction costs and the stage of completion of the contract at
is principally applied to buildings and lease assets of the Company and
retirement benefits based on the projected benefit obligations and plan
adopting the revised accounting standard are immaterial.
the consolidated balance sheet date can be reliably measured, the
property, plant and equipment of consolidated foreign subsidiaries. The
assets at the consolidated balance sheet date. The projected benefit
range of useful lives is principally from 3 to 50 years for buildings and
obligations are attributed to periods on a straight-line basis. Actuarial
structures and from 4 to 9 years for machinery and equipment. The
gains and losses are amortized on a straight-line basis over 10 years
p. Asset Retirement Obligations - In March 2008, the ASBJ issued ASBJ
useful lives for lease assets are the terms of the respective leases.
within the average remaining service period. Past service costs are
Statement No. 18, "Accounting Standard for Asset Retirement Obligations"
with unrealized gains and losses, net of applicable taxes, reported in a
h. Property, Plant and Equipment - Property, plant and equipment are
25
Under this accounting standard, an asset
o. Research and Development Costs - Research and development costs
are charged to income as incurred.
Bonuses to directors and Audit & Supervisory Board members are
accrued at the end of the year to which such bonuses are attributable.
s. Construction Contracts - In December 2007, the ASBJ issued ASBJ
outcome of a construction contract is deemed to be estimated reliably.
If the outcome of a construction contract cannot be reliably estimated,
the completed-contract method should be applied. When it is probable
that the total construction costs will exceed total construction revenue,
26
Consolidated
Financial
Statements
Sumitomo Precision Products Co., Ltd. and Consolidated Subsidiaries
an estimated loss on the contract should be immediately recognized by
providing for a loss on construction contracts.
t. Income Taxes - The provision for income taxes is computed based on the
the acquirer accounts for acquisition-related costs by including
prior-period financial statements is discovered, those statements are restated.
them in the acquisition costs of the investment. Under the revised
accounting standard, acquisition-related costs shall be accounted
y. New Accounting Pronouncements
for as expenses in the periods in which the costs are incurred.
million, respectively.
4.INVESTMENT SECURITIES
pretax income included in the consolidated statement of income. The
Accounting Standards for Business Combinations and Consolidated
asset and liability approach is used to recognize deferred tax assets and
Financial Statements - In September 2013, the ASBJ issued revised ASBJ
The above accounting standards and guidance for (a) transactions with
The cost and aggregate fair value of available-for-sale securities at March
liabilities for the expected future tax consequences of temporary
Statement No. 21, "Accounting Standard for Business Combinations,"
noncontrolling interest, (b) presentation of the consolidated balance
31, 2015 and 2014, were as follows:
differences between the carrying amounts and the tax of assets and
revised ASBJ Guidance No. 10, "Guidance on Accounting Standards for
sheet, (c) presentation of the consolidated statement of income, and (e)
liabilities. Deferred taxes are measured by applying currently enacted
Business Combinations and Business Divestitures," and revised ASBJ
acquisition-related costs are effective for the beginning of annual periods
income tax rates to the temporary differences.
Statement No. 22, "Accounting Standard for Consolidated Financial
beginning on or after April 1, 2015. Earlier application is permitted from
Statements." Major accounting changes are as follows:
the beginning of annual periods beginning on or after April 1, 2014,
receivables and payables denominated in foreign currencies are
(a) Transactions with noncontrolling interest - A parent's ownership
except for (b) presentation of the consolidated balance sheet and (c)
translated into Japanese yen at the exchange rates at the consolidated
interest in a subsidiary might change if the parent purchases or sells
presentation of the consolidated statement of income. In the case of
balance sheet date.
ownership interests in its subsidiary. The carrying amount of minority
earlier application, all accounting standards and guidance above, except
interest is adjusted to reflect the change in the parent's ownership
for (b) presentation of the consolidated balance sheet and (c)
interest in its subsidiary while the parent retains its controlling interest
presentation of the consolidated statement of income, should be applied
accounts and revenue and expense accounts of the consolidated foreign
in its subsidiary.
simultaneously.
subsidiaries are translated into Japanese yen at the current exchange rate
difference between the fair value of the consideration received or paid
Either retrospective or prospective application of the revised accounting
as of the consolidated balance sheet date except for equity, which is
and the amount by which the minority interest is adjusted is
standards and guidance for (a) transactions with noncontrolling interest
translated at the historical rate. Differences arising from such translation are
accounted for as an adjustment of goodwill or as profit or loss in the
and (e) acquisition-related costs is permitted. In retrospective application
The proceeds, realized gains and realized losses of the available-for-sale
shown as "Foreign currency translation adjustments" under accumulated
consolidated statement of income. Under the revised accounting
of the revised standards and guidance, the accumulated effects of
securities which were sold during the year ended March 31, 2015, were as
other comprehensive income in a separate component of equity.
standard, such difference shall be accounted for as capital surplus as
retrospective adjustments for all (a) transactions with noncontrolling
follows:
long as the parent retains control over its subsidiary.
interest and (e) acquisition-related costs which occurred in the past shall
u. Foreign Currency Transactions - All short-term and long-term monetary
The foreign exchange gains and losses from
translation are recognized in the consolidated statement of income.
v. Foreign Currency Financial Statements - The consolidated balance sheet
w. Per Share Information - Basic net income per share is computed by
Under the current accounting standard, any
(b) Presentation of the consolidated balance sheet - In the consolidated
weighted-average number of common shares outstanding for the period,
balance sheet, "minority interest" under the current accounting
and retained earnings for the year of the first-time application.
retroactively adjusted for stock splits. The number of common shares
standard will be changed to "noncontrolling interest" under the
prospective application, the new standards and guidance shall be
used in computing basic net income per share was 52,943 thousand
revised accounting standard.
applied prospectively from the beginning of the year of the first-time
(c) Presentation of the consolidated statement of income - In the
Co s t
Equity securities
¥985
March 31, 2014
Co s t
Equity securities
Equity securities
¥957
Millions of Yen
Unrealized Unrealized
Gains
Losses
¥954
Fair
Value
¥1,939
Millions of Yen
Unrealized Unrealized
Gains
Losses
¥614
Fair
Value
¥1,571
Thousands of U.S. Dollars
Unrealized Unrealized
Fair
Co s t
Gains
Losses
Value
$8,198
$7,940
$16,138
be reflected as adjustments to the beginning balance of capital surplus
In
application.
Diluted net income per share reflects the potential dilution that could occur
consolidated statement of income, "income before minority interest"
The revised accounting standards and guidance for (b) presentation of
if securities were exercised or converted into common stock. Diluted net
under the current accounting standard will be changed to "net
the consolidated balance sheet and (c) presentation of the consolidated
income per share of common stock assumes full conversion of the
income" under the revised accounting standard, and "net income"
statement of income shall be applied to all periods presented in financial
outstanding convertible notes and bonds at the beginning of the year (or at
under the current accounting standard will be changed to "net
statements containing the first-time application of the revised standards
the time of issuance) with an applicable adjustment for related interest
income attributable to owners of the parent" under the revised
and guidance.
expense, net of tax, and full exercise of outstanding warrants (if any).
accounting standard.
The revised standards and guidance for (d) provisional accounting
Diluted net income per share is not disclosed because there were no potentially
March 31, 2015
March 31, 2015
dividing net income available to common shareholders by the
shares for 2015 and 52,968 thousand shares for 2014.
March 31, 2015
Proceeds
Equity securities
March 31, 2015
Equity securities
¥511
Millions of Yen
Realized
Realized
Gains
Loss
¥508
Thousands of U.S. Dollars
Realized
Realized
P r o c e e ds
Gains
Loss
$4,253
$4,228
5.INVENTORIES
Inventories at March 31, 2015 and 2014, consisted of the following:
(d) Provisional accounting treatments for a business combination - If the
treatments for a business combination are effective for a business
dilutive securities outstanding for the years ended March 31, 2015 and 2014.
initial accounting for a business combination is incomplete by the end
combination which occurs on or after the beginning of annual periods
Cash dividends per share presented in the accompanying consolidated
of the reporting period in which the business combination occurs, an
beginning on or after April 1, 2015. Earlier application is permitted for a
statement of income are dividends applicable to the respective fiscal
acquirer shall report in its financial statements provisional amounts for
business combination which occurs on or after the beginning of annual
years, including dividends to be paid after the end of the year.
the items for which the accounting is incomplete. Under the current
periods beginning on or after April 1, 2014.
x. Accounting Changes and Error Corrections - In December 2009, the ASBJ
accounting standard guidance, the impact of adjustments to
The Company expects to apply the revised accounting standards and
issued ASBJ Statement No. 24, "Accounting Standard for Accounting
provisional amounts recorded in a business combination on profit or
guidance for (a), (b), (c) and (e) above from April 1, 2015, and for (d)
Changes and Error Corrections" and ASBJ Guidance No. 24, "Guidance on
loss is recognized as profit or loss in the year in which the
above for a business combination which will occur on or after April 1,
Accounting Standard for Accounting Changes and Error Corrections."
measurement is completed. Under the revised accounting standard
2015, and is in the process of measuring the effects of applying the
Accounting treatments under this standard and guidance are as follows: (1)
guidance, during the measurement period, which shall not exceed
revised accounting standards and guidance in future applicable periods.
Changes in Accounting Policies - When a new accounting policy is applied
one year from the acquisition, the acquirer shall retrospectively adjust
following revision of an accounting standard, the new policy is applied
the provisional amounts recognized at the acquisition date to reflect
retrospectively unless the revised accounting standard includes specific
new information obtained about facts and circumstances that existed
transitional provisions, in which case the entity shall comply with the specific
as of the acquisition date and that would have affected the
"Payments of loans receivable" and "Proceeds from collection of long-term
Short-term bank loans bear interest at rates ranging from 0.43% to 6.00%
transitional provisions. (2) Changes in Presentation - When the presentation of
measurement of the amounts recognized as of that date.
Such
loans receivable" were included in "Other - net" among the investing
at March 31, 2015, and from 0.44% to 6.00% at March 31, 2014.
financial statements is changed, prior-period financial statements are
adjustments shall be recognized as if the accounting for the business
activities section of the consolidated statement of cash flows for the year
combination had been completed at the acquisition date.
ended March 31, 2014. Since the amounts increased, such amounts are
reclassified in accordance with the new presentation.
27
and future periods. (4) Corrections of Prior-Period Errors - When an error in
(3) Changes in
3.CHANGES IN PRESENTATIONS
Accounting Estimates - A change in an accounting estimate is accounted for in
(e) Acquisition-related costs - Acquisition-related costs are costs, such
separately presented in the investing activities section of the consolidated
the period of the change if the change affects that period only, and is
as advisory fees or professional fees, which an acquirer incurs to
statement of cash flows the year ended March 31, 2015. The amounts
accounted for prospectively if the change affects both the period of the change
effect a business combination. Under the current accounting standard,
included in "Other - net" as of March 31, 2014, were ¥164 million and ¥34
Millions of Yen
2015
Thousands of
U.S. Dollars
2014
2015
Finished products and
semi-finished products
¥5,413
¥4,590
$45,052
Work in process
11,678
10,160
71,178
8,552
7,354
97,195
¥25,643
¥22,104
$213,425
Raw materials and supplies
Total
6.SHORT-TERM BANK LOANS AND LONG-TERM DEBT
Long-term debt at March 31, 2015 and 2014, consisted of the following:
28
Consolidated
Financial
Statements
Sumitomo Precision Products Co., Ltd. and Consolidated Subsidiaries
Thousands of
U.S. Dollars
Millions of Yen
2015
Loans from banks and insurance companies,
due serially to 2018 with interest rates ranging
from 0.45% to 5.13% (2015) and from 0.71%
to 5.13% (2014)
Collateralized
2014
7.RETIREMENT BENEFITS
The Company and its domestic consolidated subsidiaries have defined
benefit retirement plans for employees.
Employees terminating their employment are, under most circumstances,
Service cost
Interest cost
Expected return on plan assets
¥932
$28,955
entitled to retirement benefits determined based on the rate of pay at the
12,005
11,189
99,917
341
697
2,839
time of termination, length of service, and conditions under which the
Recognized actuarial losses
Total
15,825
12,818
131,711
termination occurs. If the termination is involuntary, caused by retirement at
Others
Less current portion
(2,461)
(2,330)
(20,483)
the mandatory retirement age or caused by death, the employee is entitled
Net periodic benefit costs
¥13,364
¥10,488
$111,228
Obligation under finance leases
Long-term debt, less current portion
Amortization of prior service cost
2014
2015
¥344
¥347
74
83
(137)
(119)
$2,888
616
(1,140)
8.EQUITY
Japanese companies are subject to the Companies Act of Japan (the
"Companies Act"). The significant provisions in the Companies Act that
affect financial and accounting matters are summarized below:
(a) Dividends
(6)
(6)
(50)
350
358
2,913
Under the Companies Act, companies can pay dividends at any time
15
4
125
during the fiscal year in addition to the year-end dividend upon resolution
¥643
¥664
$5,352
at the shareholders' meeting. For companies that meet certain criteria,
to greater payments than in the case of voluntary termination.
the Board of Directors may declare dividends (except for dividends in
Employees of the Company who retire at the mandatory retirement age are
(5) Amounts recognized in other comprehensive income (before income tax
Annual maturities of long-term debt, as of March 31, 2015, for the next five
entitled to receive approximately 50% of their benefits in the form of an
effect) in respect of defined retirement benefit plans for the years ended
in its articles of incorporation. The Company meets the above criteria.
years and thereafter were as follows:
annuity with the balance in a lump-sum payment upon retirement. The
March 31, 2015 and 2014:
The Companies Act permits companies to distribute dividends in-kind
Yea r End i ng Ma r ch 31
Millions of
Yen
Thousands of
U.S. Dollars
2016
¥2,461
$20,483
2017
7,896
65,718
2018
1,417
11,794
2019
1,211
10,079
2020
1,955
16,271
funds for the annuity payments are entrusted to an outside trustee.
(1) The changes in defined benefit obligation for the years ended March 31,
2015 and 2014, were as follows:
2015
2014
7,366
Balance at beginning of year (as previously reported)
¥5,627
Cumulative effect of accounting change
30
Balance at beginning of year (as restated)
5,657
The carrying amounts of assets pledged as collateral for long-term bank
Increase due to inclusion of subsidiaries in consolidation
224
loans of ¥3,479 million ($28,955 thousand) and long-term payables of ¥62
Current service cost
347
344
2,888
million ($516 thousand) at March 31, 2015, were as follows:
Interest cost
74
83
616
240
25
1,998
(767)
(447)
(6,384)
Millions of
Yen
Land
Buildings and structures
Total
Thousands of
U.S. Dollars
¥409
$3,404
79
658
¥488
$4,062
The above assets are provided for the factory foundation mortgage.
Benefits paid
Balance at end of year
¥5,775
¥5,622
5,622
$46,833
2014
$48,065
2015
Unrecognized prior service cost
Unrecognized actuarial losses
2015
¥(42)
¥(48)
$(349)
1,110
1,685
9,238
¥1,068
¥1,637
$8,889
Thousands of
U.S. Dollars
2015
¥4,554
¥3,971
$37,903
465
276
3,870
Equity investments
201
415
1,673
Cash and cash equivalents
These agreements include the following financial restriction provisions:
(1) Ordinary income in the consolidated or nonconsolidated statements of
Benefits paid
(324)
(227)
(2,697)
Others
¥5,033
¥4,554
$41,889
operations for the year ended March 31, 2015, are ¥2,024 million and
Millions of Yen
¥1,880 million, respectively.
2015
(2) The amount of equity in the consolidated balance sheet at the end of
Defined benefit obligation
¥5,775
fiscal year should be more than ¥22,500 million.
(3) The amount of equity in the nonconsolidated balance sheet at the end of
Plan assets
Net liability arising from defined benefit obligation
2014
Thousands of
U.S. Dollars
2015
¥5,627
$48,065
(5,033)
(4,554)
(41,889)
¥742
¥1,073
$6,176
Total
ended March 31, 2015 and 2014, were as follows:
surplus and retained earnings can be transferred among the accounts
37%
with equity under certain conditions upon resolution of the shareholders.
(c) Treasury stock and treasury stock acquisition rights
51
49
The Companies Act also provides for companies to purchase treasury
4
4
6
10
stock and dispose of such treasury stock by resolution of the Board of
100%
100%
2014
b. Method of determining the expected rate of return on plan assets
Directors. The amount of treasury stock purchased cannot exceed the
amount available for distribution to the shareholders which is determined
by a specific formula. Under the Companies Act, stock acquisition rights
The expected rate of return on plan assets is determined considering
are presented as a separate component of equity. The Companies Act
the long-term rates of return which are expected currently and in the
also provides that companies can purchase both treasury stock
future from the various components of the plan assets.
acquisition rights and treasury stock. Such treasury stock acquisition
rights are presented as a separate component of equity or deducted
(8) Assumptions used for the years ended March 31, 2015 and 2014, were set
directly from stock acquisition rights.
forth as follows:
2015
Discount rate
Expected rate of return on plan assets
(4) The components of net periodic retirement benefit costs for the years
dividends, until the aggregate amount of legal reserve and additional
39%
2015
Contributions from the employer
assets
depending on the equity account charged upon the payment of such
common stock, legal reserve, additional paid-in capital, other capital
Plan assets as of March 31, 2015 and 2014, consisted of the following:
Actuarial gains
balance sheet and the balances of defined benefit obligation and plan
earnings) or as additional paid-in capital (a component of capital surplus),
be reversed without limitation. The Companies Act also provides that
a. Components of plan assets
the term for all the liabilities under these agreements.
(3) Reconciliation between the liability recorded in the consolidated
must be appropriated as a legal reserve (a component of retained
Act, the total amount of additional paid-in capital and legal reserve may
of the following covenants are violated, the Company may lose the benefit of
is ¥35,575 million.
2014
The Companies Act requires that an amount equal to 10% of dividends
paid-in capital equals 25% of the common stock. Under the Companies
Debt investments
the nonconsolidated balance sheet for the year ended March 31, 2015,
Thousands of
U.S. Dollars
Millions of Yen
1,140
Balance at end of year
on the amounts available for dividends or the purchase of treasury stock.
maintained at no less than ¥3 million.
(b) Increases/decreases and transfer of common stock, reserve and surplus
as of March 31, 2015 and 2014:
(7) Plan assets
2015
Balance at beginning of year
Company so stipulate. The Companies Act provides certain limitations
shareholders, but the amount of net assets after dividends must be
2014, were as follows:
Millions of Yen
resolution by the Board of Directors if the articles of incorporation of the
(before income tax effect) in respect of defined retirement benefit plans
119
fiscal year should be more than ¥22,000 million. The amount of equity in
(4,786)
$(4,736)
Semiannual interim dividends may also be paid once a year upon
47,083
137
income in the consolidated and nonconsolidated statements of
(575)
¥(569)
additional requirements.
The limitation is defined as the amount available for distribution to the
Expected return on plan assets
before income taxes less extraordinary items. The amount of ordinary
$50
(noncash assets) to shareholders subject to a certain limitation and
(6) Amounts recognized in accumulated other comprehensive income
¥6,600 million ($54,931 thousand) at March 31, 2015. In the event that any
the fiscal year ended March 31, 2012. Ordinary income means income
¥6
(2) The changes in plan assets for the years ended March 31, 2015 and
current portion of long-term debt and long-term payables.
operations should not be negative for two consecutive years on or after
2015
kind) at any time during the fiscal year if the Company has prescribed so
250
1,864
¥5,627
Total
Total
The above collateralized long-term debt and long-term payables include the
Long-term bank loans include syndicate loan agreements amounting to
Prior service cost
2014
2015
$131,711
Actuarial losses
2015
Actuarial losses
Thousands of
U.S. Dollars
Millions of Yen
885
Total
Thousands of
U.S. Dollars
Millions of Yen
¥15,825
2021 and thereafter
29
2015
¥3,479
Unsecured
Thousands of
U.S. Dollars
Millions of Yen
2015
Expected rate of salary increase
0.865-1.011%
2014
1.5%
3.0%
3.0%
1.5-2.4%
1.5-2.4%
9.SELLING, GENERAL AND ADMINISTRATIVE EXPENSES
Selling, general and administrative expenses for the years ended March 31,
2015 and 2014, principally consisted of the following:
30
Consolidated
Financial
Statements
Sumitomo Precision Products Co., Ltd. and Consolidated Subsidiaries
Thousands of
U.S. Dollars
Millions of Yen
2015
2014
2015
¥3,018
¥2,702
$25,119
Net periodic retirement benefit costs
177
203
1,473
Depreciation and amortization
391
371
3,254
1,145
1,097
9,530
20
18
166
Employees' salaries and bonuses
Research and development costs
Goodwill amortization
10.INCOME TAXES
The Company and its domestic subsidiaries are subject to Japanese
national and local income taxes which, in the aggregate, resulted in normal
2015
2014
38.0%
35.6%
Normal effective statutory tax rate
rates, those risks are hedged by using forward foreign currency
market value are monitored on a quarterly basis.
Nontax deductible expenses
0.7
1.3
Tax rate difference in foreign subsidiaries
0.1
(0.2)
Payment terms of payables, such as trade notes and trade accounts, are
Per capita in local tax
0.6
1.1
less than one year. Although payables in foreign currencies are exposed
Amortization of goodwill
0.3
0.5
to the market risk of fluctuation in foreign currency exchange rates, those
Equity in earnings of associated companies
(1.3)
(0.6)
Change in valuation allowance
9.6
11.3
risks are generally hedged by using forward foreign currency contracts.
Tax credit
(8.6)
(5.9)
Tax on unrealized intercompany profit
(0.7)
(1.1)
Decrease adjustment of deferred tax assets for changing the tax rate
1.4
3.7
Other - net
0.0
37.7%
Actual effective tax rate
March 31, 2015
contracts. Investment securities are mainly equity securities and their fair
Cash and cash equivalents
Notes and accounts receivable
Investment securities
Total
Millions of Yen
Carrying
Fair
Unrealized
Amount
Value
Loss
¥8,968
¥8,968
20,921
20,921
1,565
1,565
¥31,454
¥31,454
Maturities of bank loans and lease obligations are less than seven and a
Short-term bank loans
¥(13,610)
¥(13,610)
half years after the consolidated balance sheet date. Although a part of
Payables
(10,980)
(10,980)
such bank loans and lease obligations are exposed to market risks from
Long-term debt
(15,825)
(15,834)
¥(9)
1.0
changes in variable interest rates, those risks are mitigated by using
Total
¥(40,415)
¥(40,424)
¥(9)
49.1%
derivatives of interest rate swaps. See Note 13 for more details about
March 31, 2014
derivatives.
effective statutory tax rates of 35.6％ and 38.0% for the years ended March
(3) Risk management for financial instruments
Millions of Yen
Carrying
Fair
Unrealized
Amount
Value
Loss
¥9,832
¥9,832
31, 2015 and 2014, respectively.
New tax reform laws enacted in 2015 in Japan changed the normal effective
The tax effects of significant temporary differences and loss carryforwards
statutory tax rate for the fiscal year beginning on or after April 1, 2015, to
which resulted in deferred tax assets and liabilities at March 31, 2015 and
approximately 33.0% and for the fiscal year beginning on or after April 1,
Credit risk is the risk of economic loss arising from a counterparty's
2014, were as follows:
2016, to approximately 32.3%. The effect of these changes was immaterial.
failure to repay or service debt according to the contractual terms. The
At March 31, 2015, certain subsidiaries have expiring tax loss carryforwards
Group manages its credit risk from receivables on the basis of internal
aggregating approximately ¥3,210 million ($26,717 thousand) which are
guidelines, which include monitoring payment terms and balances of
Short-term bank loans
available to be offset against taxable income of such subsidiaries in future
major customers by each business administration department to identify
Payables
years. These tax loss carryforwards, if not utilized, will expire as follows:
the default risk of customers at an early stage. Because the
Long-term debt
(12,818)
(12,831)
¥(13)
counterparties to derivatives are limited to major international financial
Total
¥(41,446)
¥(41,459)
¥(13)
Thousands of
U.S. Dollars
Millions of Yen
2015
2014
2015
Deferred tax assets:
Reserve for accrued bonuses
¥422
¥418
$3,512
Liability for retirement benefits
388
582
3,229
Loss on devaluation of inventories
289
213
2,405
27
25
225
Tax loss carryforwards
861
563
7,166
Other
762
465
6,343
(1,167)
(799)
(9,713)
¥1,582
¥1,467
$13,167
Loss on devaluation of investment securities
Less valuation allowance
Total
Deferred tax liabilities:
Y ear E nd ing M arch 31
Millions of
Yen
Thousands of
U.S. Dollars
Credit Risk Management
institutions, the Group does not anticipate any losses arising from credit
Notes and accounts receivable
Investment securities
Total
March 31, 2015
risk. See Note 13 for more details about derivatives.
2016
¥49
$408
2017
277
2,305
2018
242
2,014
Foreign currency trade receivables and payables are exposed to market
2019
188
1,565
risk resulting from fluctuations in foreign currency exchange rates. Such
2020
397
3,304
foreign exchange risk is hedged principally by forward foreign currency
2,057
17,121
¥3,210
$26,717
contracts. Interest rate swaps are used to manage exposure to market
2021 and thereafter
Cash and cash equivalents
Market risk management (foreign exchange risk and interest rate risk)
Cash and cash equivalents
Notes and accounts receivable
¥(15,157)
(13,471)
(13,471)
Thousands of U.S. Dollars
Carrying
Fair
Unrealized
Amount
Value
Loss
$74,640
$74,640
174,124
174,124
13,025
$(113,275)
$(113,275)
Net unrealized gain on available-for-sale securities
(318)
(210)
(2,647)
risks from changes in the interest rates of loan payables.
Short-term bank loans
Prepaid pension cost
(198)
(221)
(1,648)
Investment securities are managed by monitoring market value and the
Payables
Other
(210)
(231)
(1,748)
financial position of issuers on a regular basis.
Long-term debt
¥(873)
¥(802)
$(7,266)
¥709
¥665
$5,901
Net deferred tax assets
¥(15,157)
$261,789
$(1,223)
Derivative transactions entered into by the Group have been made in
¥32,026
$261,789
¥(140)
11.LEASES
1,169
¥32,026
Total
¥(147)
Total
21,025
1,169
13,025
Investment securities
Roll-over relief on property, plant and equipment
Total
21,025
Total
(91,386)
(91,386)
(131,711)
(131,786)
$(75)
$(336,372)
$(336,447)
$(75)
Total rental expenses including lease payments under finance lease
accordance with internal policies which regulate the authorization and
The above long-term debt includes the current portion of long-term debt.
Note:
agreements that do not transfer ownership of the leased property to the
credit limit amount by the corporate treasury department.
Cash and cash equivalents and Notes and accounts receivable
The amounts of net deferred tax assets are shown in the following accounts
Group, accounted for as operating lease, were ¥336 million ($2,797
in the consolidated balance sheets as of March 31, 2015 and 2014.
thousand) and ¥317 million for the years ended March 31, 2015 and 2014,
Liquidity risk comprises the risk that the Group cannot meet its
Investment securities
respectively.
contractual obligations in full on their maturity dates. The Group manages
The fair values are measured at the quoted market price of the stock
its liquidity risk by holding adequate volumes of liquid assets along with
exchange for the equity instruments.
adequate financial planning by the corporate treasury department.
investment securities by classification is included in Note 4.
Millions of Yen
2015
2014
Thousands of
U.S. Dollars
2015
¥1,068
¥784
$8,889
Deferred tax assets - noncurrent
400
621
3,329
Long-term liabilities - noncurrent
(759)
(740)
(6,317)
Deferred tax assets - current
12.FINANCIAL INSTRUMENTS AND
RELATED DISCLOSURES
Liquidity risk management
(4) Fair value of financial instruments
The carrying values approximate fair value because of their short maturities.
Fair value information for the
Short-term bank loans and Payables
Fair values of financial instruments are based on quoted prices in active
The carrying values approximate fair value because of their short maturities.
markets. If a quoted price is not available, other rational valuation
Long-term debt
The Group uses financial instruments, mainly long-term debt including
techniques are used instead. See Note 13 for the details of fair value for
The fair values of long-term debt and lease obligations are determined by
bank loans and convertible bonds, based on its capital financing plan.
derivatives.
discounting the cash flows related to the debt at the Group's assumed
A reconciliation between the normal effective statutory tax rates and the
Cash surpluses, if any, are invested in low risk financial assets.
(a) Fair value of financial instruments
corporate borrowing rate.
actual effective tax rates reflected in the accompanying consolidated
Short-term bank loans are used to fund the Group's ongoing operations.
Derivatives
statement of income for the year ended March 31, 2015, with the
Derivatives are used, not for speculative purposes, but to manage
Fair value information for derivatives is included in Note 13.
corresponding figures for 2014, is as follows:
exposure to financial risks as described in (2) below.
(b) Carrying amount of financial instruments whose fair value cannot be
(1) Group policy for financial instruments
(2) Nature and extent of risks arising from financial instruments
reliably determined
Receivables, such as trade notes and trade accounts, are exposed to
customer credit risk.
Although receivables in foreign currencies are
exposed to the market risk of fluctuation in foreign currency exchange
31
32
Consolidated
Financial
Statements
Sumitomo Precision Products Co., Ltd. and Consolidated Subsidiaries
Thousands of
U.S. Dollars
Millions of Yen
2015
Investments in equity instruments that
do not have a quoted market price in
an active market
¥591
Investments in limited partnerships
Total
2014
2015
$4,919
¥620
31
45
258
¥622
¥665
$5,177
(5) Maturity analysis for financial assets with contractual maturities
Ma r ch 31 , 2 0 1 5
Due in
1 Year
or Less
Cash and cash equivalents
¥8,968
Notes and accounts receivable
20,921
Total
Ma r ch 31 , 2 0 1 5
Millions of Yen
Due after
Due after
1 Year
5 Years
through
through
5 Years
10 Years
Due after
10 Years
Interest rate swaps:
(fixed rate payment, floating rate receipt)
Thousands of U.S. Dollars
Contract
Fair
Hedged
Contract
Amount
Value
Item
Amount
Due after
One Year
Long-term
$17,145
$16,896
debt
Notes and accounts receivable
174,124
U.S. Dollars
Due after
Due after
5 Years
10 Years
through
10 Years
$248,764
The Group enters into derivative contracts to hedge market risks such as
foreign exchange and interest rate fluctuations associated with certain
assets and liabilities.
differential paid or received under the swap agreements is recognized and
allocated among the Group. Therefore, the Group consists of two
included in interest expense. In addition, the fair value of such interest rate
segments: aerospace and related products and industrial products.
swaps in Note 12 is included in that of hedged items (i.e., long-term debt).
Aerospace and related products consists of manufacturing propeller
The contract or notional amounts of derivatives which are shown in the
systems, landing gear systems, heat control systems, space equipment,
above table do not represent the amounts exchanged by the parties and do
hydraulic pumps, hydraulic valves and others.
not measure the Group's exposure to credit or market risk.
consists of manufacturing LNG vaporizers, heat exchangers, ozone
The accounting policies of each reportable segment are consistent with
31, 2015 and 2014, were as follows:
those disclosed in Note 2, "Summary of Significant Accounting Policies."
Gains arising during the year
¥908
Reclassification adjustments to profit or loss
(508)
Amount before income tax effect
400
Total
Thousands of
U.S. Dollars
2014
¥117
Since all of the Group's derivative transactions are related to qualified
hedges of underlying business exposures, market gain or loss risk in the
derivative instruments is basically offset by opposite movements in the value
of the hedged assets or liabilities.
Derivative transactions entered into by the Group have been made in accordance
with internal policies which regulate the authorization and credit limit amount.
(4,228)
117
3,329
(108)
(42)
(898)
¥292
¥75
$2,431
¥180
$1,672
¥201
¥180
$1,672
Segment assets
Depreciation
$1,873
Reclassification adjustments to profit or loss
344
2,863
Amount before income tax effect
569
4,736
Income tax effect
Total
¥2,060
¥2,030
Millions of Yen
Contract
Contract
Amount
Amount
Due after
One Year
¥680
¥660
(195)
(1,623)
¥374
$3,113
Amortization of goodwill
Investment in associated companies
accounted for by the equity method
Increase in property, plant and
equipment and intangible assets
Depreciation
Amortization of goodwill
Investment in associated companies
accounted for by the equity method
Increase in property, plant and
equipment and intangible assets
¥76
¥98
$632
¥76
¥98
$632
¥943
¥353
$7,848
15.SEGMENT INFORMATION
Sales to external customers
Total
Segment profit
(operating income)
Segment assets
Information Disclosures" and ASBJ Guidance No. 20, "Guidance on
Other:
segments. Reportable segments are operating segments or aggregations
of operating segments that meet specified criteria. Operating segments are
Japan
North America
¥24,099
¥11,643
Japan
North America
¥24,611
¥10,750
¥47,135
¥47,135
$244,103 $148,198 $392,301
$392,301
$11,286
$2,014
$13,300
393,167
211,544
604,711
11,103
9,380
20,483
166
$13,300
681,639
$76,928
14,773
20,483
166
166
9,688
9,688
9,688
4,045
18,818
18,818
¥29,329
¥17,806
¥47,135
¥47,135
Japan
¥1,598
$200,574
¥1,356
¥242
¥1,598
47,239
25,417
72,656
1,334
1,127
2,461
2,461
20
20
1,164
1,164
1,164
486
2,261
2,261
¥9,243
81,899
Depreciation
Amortization of goodwill
Investment in associated companies
accounted for by the equity method
Increase in property, plant and
equipment and intangible assets
$96,904
O ther
Total
¥3,171
¥193
¥47,135
¥8,029
Millions of Yen
2 0 14
Europe
Asia
O ther
Total
¥3,744
¥169
¥45,032
¥5,758
$26,392
$66,825
O ther
Total
$1,606
$392,301
Note: Sales are classified by country or region based on the location of customers.
(2) Property, plant and equipment
20
1,775
Information about property, plant and equipment by geographical
area is not disclosed because Japanese GAAP does not require
such disclosure if total assets in Japan represent more than 90% of
the consolidated amounts.
5. Information about major customers
Information about major customers is not disclosed for the year ended
March 31, 2015, because there is no customer that represents more
than 10% of net sales in the consolidated statement of income.
¥26,639
¥18,393
¥45,032
¥45,032
Name of Customer
2 0 14
Sales
Millions of Yen
¥26,639
¥18,393
¥45,032
¥45,032
Related Segment Name
Ministry of Defense
¥4,530
Aerospace and Related Products
¥806
¥157
¥963
41,751
27,417
69,168
1,226
904
2,130
2,130
18
18
998
998
998
3,493
4,754
4,754
18
1,261
¥963
¥10,780
6. Information about amortization of goodwill
79,948
Aerospace and
Related Products
¥20
Amortization of goodwill
Goodwill at March 31, 2015
components of an entity about which separate financial information is
decision maker in deciding how to allocate resources and in assessing
Millions of Yen
2 0 15
Europe
Asia
Thousands of U.S. Dollars
2 015
Asia
North America E u r o p e
Sales:
Under ASBJ Statement No. 17, "Accounting Standard for Segment
required to report financial and descriptive information about its reportable
(1) Sales
available and such information is evaluated regularly by the chief operating
Amortization of goodwill
Goodwill at March 31, 2014
33
$392,301
Other:
¥17,806
Millions of Yen
2014
Reportable Segment
Aerospace and Industrial
Total
Reconciliations Consolidated
Related Products Products
Share of other comprehensive income in associates:
Accounting Standard for Segment Information Disclosures," an entity is
Fair
Value
Segment assets
¥29,329
Intersegment sales or transfers
Fair
Value
Total
Segment profit
(operating income)
Intersegment sales or transfers
¥201
¥225
Total other comprehensive income
Millions of Yen
Contract
Contract
Amount
Amount
Due after
One Year
Sales to external customers
Total
Segment profit
(operating income)
Adjustments arising during the year
Total
Derivative transactions to which hedge accounting is applied.
Sales:
Other:
Gains arising during the year
Long-term
debt
Millions of Yen
2015
Reportable Segment
Aerospace and Industrial
Total
Reconciliations Consolidated
Related Products Products
$7,557
Defined retirement benefit plans:
or issue derivatives for speculative purposes.
Interest rate swaps:
(fixed rate payment, floating rate receipt)
3. Information about sales, profit, assets, and other items
2015
Foreign currency translation adjustments:
Total
$244,103 $148,198 $392,301
Intersegment sales or transfers
4. Information about geographical areas
other items for each reportable segment
The components of other comprehensive income for the years ended March
market risks associated with assets and liabilities. The Group does not hold
Hedged
Item
Industrial products
Sales to external customers
2. Methods of measurement for the amounts of sales, profit, assets and
14.OTHER COMPREHENSIVE INCOME
Adjustments arising during the year
It is the Group's policy to use derivatives only for the purpose of reducing
A t Ma r ch 31 , 2 0 1 4
The Group's reportable segments are those for which separate financial
management is being performed in order to decide how resources are
Income tax effect
Long-term
debt
Sales:
1. Description of reportable segments
Unrealized gain on available-for-sale securities:
13.DERIVATIVES
Interest rate swaps:
(fixed rate payment, floating rate receipt)
segments.
information is available and regular evaluation by the Company's
Millions of Yen
See Note 6 for annual maturities of long-term debt.
Hedged
Item
performance and deciding how to allocate resources to operating
specific matching criteria are not remeasured at market value but the
2015
Thousands of U.S. Dollars
2015
Reportable Segment
Aerospace and Industrial
Total
Reconciliations Consolidated
Related Products Products
on the same basis as is used internally for evaluating operating segment
generators, semiconductor equipment and others.
Cash and cash equivalents
A t Ma r ch 31 , 2 0 1 5
performance. Generally, segment information is required to be reported
The above interest rate swaps which qualify for hedge accounting and meet
¥29,889
Thousands of
Due after
Due in
1 Year
1 Year
through
or Less
5 Years
$74,640
Total
At M arch 31, 2015
Millions of Yen
2015
Industrial
Elimination/
Products
Corporate
¥20
159
159
Aerospace and
Related Products
¥18
175
Total
Millions of Yen
2014
Industrial
Elimination/
Products
Corporate
Total
¥18
175
34
Consolidated
Financial
Statements
Sumitomo Precision Products Co., Ltd. and Consolidated Subsidiaries
Consolidated
Financial
Statements
Sumitomo Precision Products Co., Ltd. and Consolidated Subsidiaries
Independent Auditor’s
March 31, 2015
Report
Thousands of U.S. Dollars
2015
Aerospace and
Industrial
Elimination/
Total
Related Products Products
Corporate
$166
$166
Amortization of goodwill
Goodwill at March 31, 2015
1,323
1,323
16.SUBSEQUENT EVENTS
(a) Appropriations of Retained Earnings
At the general shareholders' meeting held on June 26, 2015, the
Company's shareholders approved the following appropriations of
retained earnings as of March 31, 2015:
Millions of
Yen
Appropriations:
Cash dividends, ¥3.5 ($0.03) per share
¥185
Thousands of
U.S. Dollars
$1,540
(b) Business Combination
(1) Acquisition of stock
On June 4, 2015, SPP Canada Aircraft, Inc. (SPPCA), a wholly-owned
subsidiary of the Company, acquired 100% of the shares of
Tecnickrome Aéronautique Inc. (Tecnickrome), a provider of surface
finishing technologies for the aerospace market based in Quebec,
Canada.
The acquisition enables the Company to provide flexible and
high-value services to our customers throughout North America and
Europe through SPPCA.
This will also significantly enhance the
overall capability of the Group, which includes the recently-acquired
CFN Precision Ltd., to provide a stable supply of products. Tecnickrome
will benefit from the opportunity to provide its high-value products to
a broader customer base by expanding its traditional business with
the anticipation of further growth.
The aggregate cost of the acquisition was CA$ 15.5 million and the
value of assets acquired and liabilities assumed has not been
determined.
(2) Acquisition of businesses
On June 25, 2015, the board of the Company resolved that SPP
Technologies Co., Ltd. (SPT), a subsidiary of the Company, should
establish a wholly-owned new company in the United States, SPT
USA, Inc., and acquire the Thermal Product (TP) business from SPTS
Technologies UK Limited on June 30, 2015.
The acquisition of the TP business will lead to an expansion of the
Microtechnology business unit operated mainly by SPT, by
generating a synergy effect with the existing SPT products and
technologies, and by obtaining an overseas network.
The aggregate cost of the acquisition was approximately US$ 22
million and the value of assets acquired and liabilities assumed has
not been determined.
35
36
Domestic
and
Overseas
Bases
Company Profile / Stock Information
As of July 1, 2015
■
Office & Plant ／
■
Overseas Office ／
■
Main Affiliated Company
Company Profile
(As of March 31, 2015)
Domestic
■
Nagoya Sales Office
■
Shiga Plant
C o m p any N am e
Sumitomo Precision Products Co., Ltd.
Es tab lis hed
January, 1961
P ain-in C ap ital
¥10,311 million
P r es id ent
Shinichi Miki
N um b er o f Em p lo y ees
1,709 (Consolidated)
1,118 (Non-consolidated)
■
■
Head Office & Main Plant
Sumisei Engineering Co., Ltd.
■
（Design, drawing and engineering services）
■
Sumisei Sangyo Co., Ltd.
（Sales of all types of materials and machinery parts）
■
Shinsen Seiki Co., Ltd.
■
Tokyo Head Office
■
SPP Technologies Co., Ltd.
■
SPP Nagasaki Engineering Co., Ltd
Sumisei Hydraulic Systems Co., Ltd.
（Production, maintenance and sales of
aerospace and hydraulic equipment）
（Maintenance, repair and overhaul on aircraft
landing gear systems and customer support）
■
Wakayama Plant
■
M2M Technologies Inc.
Overseas
■
Sumitomo Precision USA, Inc.
（Production and sales of heat exchangers for aerospace）
■
SPP Canada Aircraft, Inc.
（Design, assembly, sales and customer support for
Commercial Landing Gear Systems）
Sumitomo Precision Shanghai Co., Ltd.
■
（Development and sales of environmental systems）
■
CFN Precision Ltd.
（Production and sales of aircraft parts）
Ningbo SPP Hydraulics Co., Ltd.
■
（Production and sales of QT pumps）
■
Main Plant (Amagasaki), Shiga Plant, Wakayama Plant (Plant site area：136,844 square meters)
URL
http://www.spp.co.jp
Stock Information
(As of March 31, 2015)
Fis cal Year
From April 1 of each year through March 31 of the following year
Or d inar y S har eho ld er M eeting
June
Reco r d Date
Ordinary Shareholder Meeting: March 31
Year-end Dividends: March 31
Interim Dividends: September 30
(Solution services utilizing machine to machine communication
and cloud computing technology)
■
1-10 Fuso-cho, Amagasaki, Hyogo 660-0891, Japan
P lant
（Production, sales and support of MEMS/
semiconductor related process tools）
（Processing of all types of machinery parts）
■
Iruma Plant
H ead Office
T r ans fer A g ent
1-4-1, Marunouchi, Chiyoda-ku, Tokyo 100-0005, Japan
Sumitomo Mitsui Trust Bank, Limited
M etho d o f P ub lic N o tices
To be posted on the Company’s Website（http://www.spp.co.jp）
S to ck C o d e
6355
N um b er o f A utho r iz ed S har es
200,000,000
N um b er o f I s s ued S har es
53,167,798
N um b er o f S har eho ld er s
6,082
M inim um T r ad ing Unit
1,000
S to ck Ex chang e Lis ting
Tokyo
Tecnickrome Aéronautique Inc.
（Surface finishing of aircraft parts）
London Office
▶
Treas ury S t ock
0.4%
Forei gn
I nv es t ors
8.5%
■
■
Aviocast Inc.
（Production and sales of casting products）
■
I ndi v i dual s
and ot her
33.8%
SPT Microtechnologies USA, Inc.
D omes t i c
C orporat i ons
44.8%
5 3 ,1 6 7 t h o u san d
sh ar es
Fi nanci al
I ns t i t ut i ons
10.5%
■
Silicon Sensing Systems Ltd.
（Production and sales of motion sensors）
37
M ajo r S har eho ld er s
Name of Shareholder
Nippon Steel & Sumitomo Metal Corporation
New York Office
(Manufacture and sales of thermal process
furnace equipment etc. and relevant services
for semiconductor related device industry)
▶
Br eakd o wn o f S har eho ld er s
Fi nanci al I ns t rument
C ompani es
2.0%
Number of
Shares
(thousands)
Shareholding
Ratio
(%)
21,394
40.41
1,014
1.92
Sumitomo Precision Products Co., Ltd. Kyoeikai
972
1.84
Sumitomo Corporation
880
1.66
The Master Trust Bank of Japan, Ltd. (trust account)
859
1.62
CBNY DFA INTL SMALL CAP VALUE PORTFOLIO
676
1.28
Japan Trustee Services Bank, Ltd. (trust account)
621
1.17
Masayoshi Yamauchi
Sumitomo Mitsui Banking Corporation
543
1.03
BNYM SA/NV FOR BNYM CLIENT ACCOUNT MPCS JAPAN
504
0.95
Tatsuo Yamamoto
500
0.94
38
1-10 Fuso-cho, Amagasaki, Hyogo 660-0891, Japan
Phone 81-(0)6-6482-8811 Fax 81-(0)6-6489-5801
http://www.spp.co.jp/