Performance Report
Accumulated Total for
the Fiscal Year Ended March 31, 2010
Head of Finance and Accounting Division
Toshio Takizaki
FP Corporation
-・3 -
Sales (for FY Ended March 2010)
*Projected figures are based on forecasts released on November 5, 2009.
FY ended March 2009
Unit: million yen
Performance
Percentage
FY ended March 2010
Performance
Percentage
Increase/
decrease
Growth
rate
Year-on-year
(volume)
FY ended March 2010
Projected
Percentage
Achievement
rate
Trays
28,748
22.4
26,967
21.6
-1,781
93.8%
102.0%
28,755
22.8
93.8%
Lunchbox containers
67,814
52.9
68,714
55.0
900
101.3%
106.3%
69,270
55.0
99.2%
Other products
1,981
1.5
1,737
1.4
-244
87.7%
1,390
1.1
125.0%
[Products total]
98,544
76.8
97,419
78.0
-1,125
98.9%
99,415
78.9
98.0%
Packaging materials
17,874
13.9
16,961
13.6
-912
94.9%
16,700
13.3
101.6%
Other goods
11,824
9.2
10,537
8.4
-1,287
89.1%
9,885
7.8
106.6%
[Goods total]
29,699
23.2
27,499
22.0
-2,200
92.6%
26,585
21.1
103.4%
128,244
100.0
124,918
100.0
-3,325
97.4%
126,000
100.0
99.1%
[Sales]
 Products
- Shipments (by pcs.): 4.4% growth year-on-year
- Product prices:
We lowered prices compared to FY ended March 2009 in line with
reductions in raw material prices during the fourth quarter of last year.
- Trays:
FLB-series ultra-lightweight, low-stack-height trays had a strong showing.
- Lunchbox containers:
Strong performance from lightweight sashimi and sushi containers
Steady stream of inquiries regarding new PET products
Increased sales as a result of entry into agricultural goods container
market
104.4%
 Goods
- Concentrated on recommended goods such as packaging materials
- Reviewed unprofitable trades
- The figure for “Other goods” for the previous term includes ¥1,333
million in sales of paintings and antiques.
* Reference: Paintings and antiques for sale in the previous year not included
Other goods
10,491
10,537
46
100.4%
9,885
106.6%
[Goods total]
28,366
27,499
-866
96.9%
26,585
103.4%
126,910
124,918
-1,991
98.4%
126,000
99.1%
[Sales]
FP Corporation
・
Financial Results Summary (for FY Ended March 2010)
*Projected figures are based on forecasts released on November 5, 2009.
FY ended March 2009
Unit: million yen
[Net sales]
Performance
FY ended March 2010
FY ended March 2010
Percentage
Performance
Percentage
Increase/
decrease
Year-on-year
Projected
Percentage
Achievement
rate
128,244
100.0
124,918
100.0
-3,325
97.4%
126,000
100.0
99.1%
Sales of products
98,544
76.8
97,419
78.0
-1,125
98.9%
99,415
78.9
98.0%
Sales of goods
29,699
23.2
27,499
22.0
-2,200
92.6%
26,585
21.1
103.4%
[Operating income]
9,190
7.2
11,892
9.5
2,702
129.4%
11,800
9.4
100.8%
[Ordinary income]
9,298
7.3
12,220
9.8
2,922
131.4%
12,000
9.5
101.8%
[Pretax income]
8,832
6.9
11,953
9.6
3,121
135.3%
11,730
9.3
101.9%
[Net income]
5,302
4.1
7,114
5.7
1,812
134.2%
6,950
5.5
102.4%
Rationalization:
Raw materials:
Sales:
Production:
Distribution:
We have reduced our range of items and focused on reducing costs on a group-wide basis, including production and distribution.
We have reduced material costs by significantly lowering stack heights, developing more lightweight versions of all of our products and
using replacement materials.
Raw material costs increased as a result of a renewed increase in raw material prices in Q2, after a fall since the fourth quarter of last
year.
Having taken over the packaging material division of Taiyo Kosan Co. Ltd. in June 2009, we have launched a full-scale entry into the
container and film market for produce.
We took over food container operations from Nihon Pearl Containers Co. Ltd., whose customer base consists primarily of processed
food manufacturers, in October 2009 and are working to increase sales.
We took steps to improve productivity and product quality, enhanced production capacity and optimized the production base to expand
demand.
Developing a supply structure as appropriate for demand. Ensuring appropriate inventory levels. Reducing costs related to storage and
internal allocation prior to shipment.
FP Corporation
・
Factors Influencing Ordinary Income (for FY Ended March 2010)
Unit: billion yen
Ordinary income for FY ended March 2009:
9.29 bn.
Trends in Raw Material
Ordinary income for FY ended March 2009:
9.29 bn.
FY ended March 2009: Impact of
increase in raw material prices
Impact of raw materials: +¥3.4 bn
Raw material price
lowered: +5.3 bn.
+5.3
-2.5
+2.5
Raw material prices lowered
+2.5
FY ended March 2009: Impact of increase in product prices
1st product price reduction
March 2009
2nd product price reduction
June 2009
-1.9
(+ Effects of reducing product prices by using alternative materials and developing lighter products)
First and second increases
in raw material prices
Increase in prices/improvements
to product mix
Raw material replacement
and lighter-weight products
Product price
reduction: -3.8 bn.
-1.9
Increase in raw material
prices: -1.9 bn.
-1.9
First: July 2009 / Second: September 2009
-2.5
Distribution improvement
Product price reduction
We lowered product prices in line with reductions in
raw material prices.
We lowered the prices of products that had previously
been increased.
Reductions in raw material prices were passed on to
product prices.
First and second increases raw material prices
Raw material prices started to increase again from the
second quarter of FY ended March 2010.
Product sales (volume) +4.4% year-on-year
Using alternative materials/developing lighter
products
We have been working on lightweight versions of all of
our products.
We are making progress with the transition from PS to
APET/PP.
+0.6
Production improvement
After a substantial increase, raw material prices
started to fall from the fourth quarter of FY ended
March 2009.
Prices started to rise again however from the second
quarter of FY ended March 2010.
+2.0
Increase in profits:
+5.0 bn.
+0.95
+0.95
Increase in profit from group companies
+0.5
Profit from the sale of artwork last year
-0.4
Decrease in profit from
artwork sales: -0.4 bn.
Production improvement
We have made steady progress with improvement
measures and also effectively increased production
volumes.
Distribution improvement
We have made steady progress with improvement
measures.
Reducing range of items
We have reduced our range of items from 8,500, as of
the end of September 2008, to 5,000 items, as of the
end of February 2010.
The FPCO Fair 2010 held
Cost increase
-1.27
Ordinary income for FY ended March 2010:
12.22 bn.
Cost increase: -1.27 bn.
Ordinary income for FY
ended March 2010:
12.22 bn.
12,500 visitors
600 new products to be launched
Year-on-year +2.93 bn. 131.5%
(+3.33 bn. 137.5% when paintings and
antiques are excluded)
1.42 bn. more than plan in
beginning of year
FP Corporation
・
Capital Investments and Research and Development Cost
(for FY Ended March 2010)
*Projected figures are based on forecasts released on November 5, 2009.
FY ended March 2009
Unit: million yen
FY ended March 2010
Performance
FY ended March 2010
Increase/
decrease
Performance
Year-on-year
Projected
Percentage
10,071
-2,935
77.4%
12,590
80.0%
12,166
9,658
-2,507
79.4%
12,020
80.4%
(in-house procurement)
8,249
7,806
-442
94.6%
9,900
78.9%
Tangible fixed assets
(lands only)
1,485
1,416
-68
Intangible fixed assets
841
413
-427
49.1%
570
72.5%
Depreciation and amortization
8,467
8,461
-5
99.9%
8,660
97.7%
965
1,035
70
107.3%
1,000
103.6%
Capital investment
13,007
Tangible fixed assets
Research and development cost
1,420
* Capital investment figures refer to all investments, including leasing and procurement.
Major capital investments
◆ Chubu Picking Center/Recycling Plant
\1,001
million
◆ New Fukuyama Picking Center
◆ Mold
◆ Container collection and sorting plants
◆ PET Mechanical Recycling Plant
◆ IT investment
◆ M&A (Taiyo Kogyo Corporation, Nippon Pearl Container)
\889
\1,512
\661
\292
\355
\861
million *Total investment \1,800 million
million
million
million *Total investment \1,320 million
million
million
FP Corporation
・
Cash Flows (for FY Ended March 2010)
FY ended March 2009
Performance
FY ended March 2010
Performance
CF from operating activities
14,568
16,369
CF from investing activities
-5,725
-9,701
8,843
6,668
-960
-11,673
7,883
-5,005
16,108
11,102
Unit: million yen
Free cash flows
CF from financing activities
Amount of increase/decrease of cash and cash equivalents
Balance of cash and cash equivalents at end of year
 Cash flows from operating activities
Net income before taxes and
other adjustments
\11,953 million
Depreciation and amortization
\8,461 million
Increase in trade receivables
- \1,416 million
Decrease in inventory assets
\880 million
Corporate taxes and other payments
- \4,785 million
 Cash flows from investing activities
Acquisition of tangible fixed assets
- \7,565 million
Expenditure in line with takeover of operations- \1,262million
Increase in long-term loans receivable
- \584 million
■ Cash flows from financing activities
Net decrease in borrowing
Payment of lease obligations
Amount paid as dividends
- \ 6,412
- \ 3,340
- \ 1,940
million
million
million
FP Corporation
・
Summary of Results
Chairman & CEO
Yasuhiro Komatsu
FP Corporation
- 15
・ -
Summary of Consolidated Financial Results
and Forecast for the Future Unit: billion yen
Ordinary income
for FY ending March 2011
Ordinary income
Projected: ¥13.5 bn.
for FY ended March 2010
☆ Reduced
product prices in line with fall in raw material
 Renewed increase in raw material prices
☆ Implemented extensive internal rationalization
+2.93 bn. +3.33 bn.
☆ Strategic investment
+31.5%
+37.5%
☆ Market expansion through corporate integration
☆ Reduction in product range to 5,000 items
☆ FPCO Fair 2010
9.29 bn.
8.89
8.89 bn.
+¥400 million from
sale of movable assets
8.12 bn.
6.65 bn.
12.22 bn.
↑
+10.5%
↑
10.8 bn.
☆ World-first materials and functions
Product sales for
FY ended March 2010
(volume):
+4.4% year-on-year
☆ Developing products in anticipation of needs
☆ Increase market share and expand market
☆ Increase sales of general-purpose products
6.45 bn.
6.31 bn.
Price competition
-2.5 bn.
+1.28 bn.
12.0 bn.
Projected sales for FY ending March 2011:
¥137.0 billion
9.7%
[Products]
Sales: +5.3% year-on-year ( 52)
Volume: +5% year-on-year
[Goods]
Sales: +25.1% year-on-year (69)
☆ Implement extensive internal improvements
☆ Improve recycling operations
3.37 bn.
3.63 bn.
☆ Improve small lot distribution operations
2.87 bn.
'02/3
Integration of raw
material
manufacturers
'03/3
Ordinary income
'04/3
1st raw material
price increase
'05/3
'06/3
2nd, 3rd and 4th raw material
price increase
'07/3
'08/3
Product price
increase
Product price increase
SCM within company started
East Japan Hub-C
Yamagata plant
10th and 11th
raw material
price increase
6th, 7th and 8th raw
9th raw material
material price increase price increase
Product price
increase
Plan for FY
ending March 2011
‘10/3
'09/3
Raw material
prices lowered
1st product price
reduction
1st, 2nd increase in
raw material prices
3rd increase in raw material prices
2nd product price reduction
Introduction of
highly-foamed products
Non-foaming materials
 Foaming materials
Use of A-PET started
Shift to thinner and
lighter-weight products
Shift to thinner and
lighter-weight products
Targets and medium-term
management indicators
Net profit per share: ¥400
Take over operations from Yuka Shoji Company
Reduced range of items
Nationwide expansion of transparent container collection
Work-restructuring project
PET Mechanical Recycling Plant
Expanding nationwide container collection and sorting plants
Kanto Yachiyo Center
Shimodate Daini Plant
Shin Hokkaido HC
Chubu Daini Plant
Extended APET container facilities
Kyushu Daini Plant
Nishi Kanto Delivery Center
New FukuyamaPC
Took over packaging material
Incorporate ALRight Inc.
division of Taiyo Kosan Co. Ltd.
Took over operations from Nihon Pearl Containers Co. Ltd.
New Chubu Picking Center
FP Corporation
・
Trends in Raw Material
200
2,000
Naptha
GPPS
May need to consider price increases
PET
in the event of further increases in raw material prices
180
160
1,800
1,600
Renewed increase since middle of 2009
140
1,400
120
1,200
Sudden decline
from the end of 2008
100
1,000
80
800
60
600
40
Passed on to product prices
20
☆ Internal improvements
☆ Lightweight development
400
and replacement materials
☆ Increasing sales
200
Trends in the Asian market
0
0
Q1
Q2
Q3
FY ended March 2009
Q4
Q1
Q2
Q3
Q4
FY ended March 2010
☆ Shift towards new products and materials
☆ Global procurement of materials as top user
FP Corporation
・
Product Strategy New Materials and New Functions
☆ New materials
◆ Multi FP (MFP): Foamed PS containers resistant from -40˚C to 110˚C
◆ Super Crystar (SCS): Highly transparent containers resistant from -40˚C to 110˚C
◆ Mono-axially oriented PET containers: Heat-resistant up to 70˚C, lightweight
◆ Bi-axially oriented PET containers: Heat-resistant up to 80˚C, lightweight
600 new products to be launched
at FPCO Fair 2010
☆ High added value and functionality
SCS lid
MFP tray with SCS lid
◆ Screw-top containers (leak-resistant)
◇ Leak-resistant containers: APET, PP
◆ Containers with special bottom shapes
MFP tray
Screw-top container
☆ Increase share of existing markets
which prevent food from shifting.
◇ Containers with new designs
☆ Target new markets
☆ Looking to new markets
◇ Containers
and flexible packaging (films) for produce
◇ Containers for processed food manufacturers
☆ Using alternative materials/
Non-slip container
developing lighter products
◇ Material replacement for transparent containers: OPS  A-PET, PP, SCS
◇ Development of lightweight foamed PS containers: Low-foamed PS
 High-foamed PS
◆New Histar: Lightweight PP containers foamed 3.5 instead of  1.8 as
previously
☆ Reducing the number of items
◇ Range
☆ Increase market share of
General-purpose tray
general purpose products
◇ Ultra-lightweight low-stack-height trays: FLB and Eco FLB
Clamshell container
◇ Snap-fit clamshell containers: AP-SA, OPS-SA, PP-SA
◇ Clamshell containers: FP Food (OPS)
◇ Transparent tray: AP-FC
of items reduced to 5,000 at the end of February 2010
 6,200 items (end of Mar. 2009)  8,500 items (end of Sep. 2008)
Transparent tray
Snap-fit clamshell container
FP Corporation
・
Domestic Food Market
Establishing an even stronger competitive advantage in specialist areas
Price competitiveness + quality and functionality
Snap-fit clamshell container
Screw-top container
Increasing share of existing markets
General-purpose tray
According to
industry
According to
sector
Other food
Prepared food
Fresh fish
Packed meat
Fruit & veg
Agricultural supplies
Processed food
Specialty stores
Department stores
Food supermarkets
General supermarkets
CVS
Tapping into new markets
Transparent tray
MFP tray with SCS lid
New Materials and New Functions
Product development with an eye to new markets
Ham and sausages
Food manufacturers
Pickled food
Frozen food
Agricultural
Restaurant and
company/
school meals
FP Corporation
・
Expanding the Scale of the Company
Market scale: Over ¥2 trillion
Market for packaging materials and supplies
Market size: \500 billion
Containers for disposable packaging
In stores
Supplies and packaging materials/equipment
Packaging outside stores
・
Machinery
・
Fixtures &
fittings
・
Flavorings
Absorbent
paper
Fabric
Films
Bags
Office supplies
Promotional
items
Gaining ground
in new fields
Sanitary goods
Agricultural
produce
Fruit &
veges
Packed
meat
Fresh fish
Prepared
food
Bolstering our
competitive edge in
specialty areas
Packaging food
For daily
deliveries
October 2009
Took over operations at Nihon Pearl Containers Co. Ltd.
from paper container manufacturer Toyama Yoseisha Co. Ltd.
Support
June 2009
Alliances and M&A
Took over packaging material division of Taiyo Kosan Co. Ltd.,
number one company for containers and films for produce.
Distribution network & SCM
Improving small lot distribution capabilities
New Fukuyama Picking Center (May 2010)
New Chubu Picking Center (May 2011)
June 2010
Plans to incorporate ALRight Inc. into the group
Distribution capabilities, infrastructure/
network and procurement capabilities
Product and material development
capabilities and recycling
Alliances and M&A
☆ Increasing share of existing markets
☆ Targeting new markets
Alliances and M&A
April 2010
Took over product purchasing division of Yuka Shoji Co. Ltd
Suppliers
FP Corporation
・
Collecting and Recycling Containers Facing up to the Greatest Risk of All
Collection base
Container collection and sorting plant
Transparent containers sorted 
Collected/received
Aligned
Sorted by machine
+ Other processes  Infrared sorting of materials
White
Colored
カラー
PET Mechanical
Recycling Plant
Research and development geared
towards Tray to Tray recycling
Volume
reduction
Foamed PS containers sorted 
Volume
reduction
Return truck
Delivery of products
Operations scheduled to commence
in Chubu in November 2010
☆ Expanding container collection and sorting plants nationwide
Recycling plant
☆ Integrating recycling plants
☆ Upgrading cleaning processes at recycling plants to highly
functional lines
Reducing recycling costs and further
improving the quality of pellets
Washed in warm water
and detergent
Pulverized
Nationwide expansion of collection
and sorting plants and restructuring of recycling centers
to be completed by end of year
Dried
Melted/cut
FY ended March 2010
Foamed PS container collection bases: 7,899
Annual volume collected: 7,095 tons
Transparent container collection bases: 1,495
Annual volume collected: 426 tons
Performance for FY ended March 2010:
Collected 7,500 tons of used containers from 7,900 collection bases
and sold ¥14.9 billion in recycled containers
FP Corporation
・
Social Contributions and Corporate Activities
Rate of disabled employment within the FP Corporation Group: 8.49%
Disabled employment support initiatives
- Workplaces for disabled employees all over the country -
(Based on report dated June 1, 2009)
Sorting lines
● Thermoforming: Three locations
Plans to recruit 92 additional employees during FY ending March 2011
● Container assembly and secondary processing:
Nine locations
Number of disabled employees: 291
Calculated rate of employment: 493
FY ended FY ending March
March 2010 2011 (projected)
Foamed PS
sorting
17
24
Transparent
container sorting
9
13
FPCO Ai Pack Corp.
Hokkaido Plant
*Some overlap in the case of severely disabled employees
Hokkaido Sorting Center
FPCO Ai Pack Corp.
(scheduled to open in September 2010)
Two foamed PS sorting lines,
one transparent container sorting line
Includes employees at allied companies as of the end of March 2010
FPCO Ai Pack Corp.
Yamagata Plant
Fukuyama Plant, FPCO
Ai Pack Corp.
★ Recycling and sorting:
Nine locations
Yamagata Sorting Center
FPCO Ai Pack Corp.
(scheduled to open in September 2010)
Two foamed PS sorting lines,
one transparent container sorting line
Kanazawa Container Recycling Co. Ltd.
Fukuyama Plant,
Daks Shikoku
Fukuyama Sorting Center
FPCO Ai Pack Corp.
Six foamed PS sorting lines,
four transparent container sorting lines
Ibaraki Plant,
FPCO Ai Pack Corp.
Local social welfare organization
F&Y Sakaiminato
Ibaraki Pigeon Recycling Co. Ltd.
Two transparent container sorting lines
Daks Co.
Local social welfare organization
Tokai Sorting Center
(scheduled to open in April 2010)
Two foamed PS sorting lines
Hiroshima Plant,
FPCO Ai Pack Corp.
Saga Plant,
FPCO Ai Pack Corp.
Saga Sorting Center
FPCO Ai Pack Corp.
Two foamed PS sorting lines,
one transparent container sorting line
Nishinomiya Plant,
FPCO Ai Pack Corp.
Daks Shikoku
Daks Saga
Nishinomiya Sorting Center
FPCO Ai Pack Corp.
Two foamed PS sorting lines,
one transparent container sorting line
Gifu Plant,
FPCO Ai Pack Corp.
FPCO Ai Pack Corp.
Gifu Sorting Center
(scheduled to open in October 2010)
Four foamed PS sorting lines,
two transparent container sorting lines
Aiming to enhance corporate value from an economic, environmental and social standpoint
FP Corporation
・
Major Capital Investment Reinforcing Distribution and Recycling Bases
☆ New Fukuyama Picking Center
In full operation from June 2010
2 floors, 24,750m2
Connected to existing building, increasing small lot distribution
capacity by 50%
* Enabling small lot distributions worth ¥11.0 billion a year
Establishing a comprehensive
nationwide distribution network
Hokkaido Delivery Center
Sapporo Picking Center
Tohoku Delivery Center
☆ New Chubu Picking Center
Sendai Picking Center
Niigata Picking Center
Scheduled to start operations in May 2011
Reinforcing small lot distribution capabilities for the Chubu and Tokai areas
Fukuyama Delivery Center
Kanto Delivery Center
Fukuyama Picking Center
Nishinomiya Picking Center
Kanto Picking Center
Hiroshima Picking Center
Tokyo Picking Center
Kyushu Delivery Center
☆ Launching a PET Mechanical Recycling Plant
Chubu Picking Center
Fukuoka Picking Center
Nishikanto Picking Center
Chubu Delivery Center
Scheduled to start operations in November 2010
*Research and development underway with an eye to achieving PET Tray to Tray recycling
☆ Reopening Chubu Recycling Plant
Scheduled to start operations in October 2010, reinforcing recycling capabilities
☆ Nationwide expansion of container collection
and sorting plants (from six centers to nine)
* Enabling annual sorting capacities of 1,200 tons of transparent
containers and 8,400 tons of foamed PS
Hokkaido Sorting Center
Expanding collection and sorting
bases nationwide and
restructuring recycling centers
Yamagata Sorting Center
Kanazawa Sorting Center
Fukuyama Recycling Center
☆ Upgrading cleaning facilities at recycling plants to highly functional lines
Kanto Recycling Center
Fukuyama Sorting Center
Nishinomiya Sorting Center
* Switching from water-based cleaning to cleaning using warm water and detergent and further improving
the quality of pellets
Kanto Sorting Center
Tokai Sorting Center
Chubu Sorting Center
Kyushu Sorting Center
Chubu Recycling Center
APET Mechanical Recycling Plant
FP Corporation
・
Expanding the Scale of the Company
A major shift towards internal improvements
+ an increased scale of operations
FY ended
March 2007
Sales 124.2 bn.
FY ended
March 2008
Sales 125.5 bn.
FY ended
March 2009
Sales 128.1 bn.
Goods
Goods
Goods
32.2 bn.
31.3 bn.
Products
Products
92.0 bn.
94.2 bn.
Volume: 103.6%
Volume: 103.9%
29.7 bn.
Products
FY ending
March 2011
Projected sales 137.0 bn.
+12.1 bn. 109.7%
FY ended
March 2010
Sales 124.9 bn.
☆ Increasing products handled and
reinforcing procurement capabilities
☆ Proposing distribution cost reductions
and expanding scale through M&A
Goods
27.5 bn.
Projected product sales
34.4 bn.
+6.9 bn. 125.1%
☆ Product development preempting
Products
98.5 bn.
97.4 bn.
Volume: 101.5%
Volume: 104.4%
customer needs
☆ Increasing share of existing markets
and targeting new markets
☆ Increasing sales of general-purpose
products
Projected product sales
☆ Increasing sales of Eco Tray products
102.6 bn.
+5.2
bn. 105.3%
+ World-first materials and functions
+ Expanding scale through M&A
Projected sales volume105%
☆ March 2010: FPCO Fair 2010
☆ June 2010: Commence full operations at New Fukuyama Picking Center
☆ September 2010: Complete nationwide expansion of collection and sorting bases
☆ October 2010: Commence operations at New Chubu Picking Center
and complete restructuring of recycling centers
☆ November 2010: Commence operations at APET Mechanical Recycling Plant in Chubu
☆ May 2011: Commence operations at New Chubu Picking Center
FP Corporation
・
Reinforcing Our Corporate Foundations
President & COO
Morimasa Sato
FP Corporation
- 27
・ -
Uncompromising pursuit of three basic pillars of a manufacturer
Providing higher-quality products
High quality
at the most competitive price
Price
competitiveness
Increasing precision
and sharing information
Distribution
capability
without fail, when they are wanted
Reinforcing the foundation of our company
Improving our corporate value and competitiveness
FP Corporation
・
Impact of Fluctuations in Raw Material Prices
Unit: billion yen
Raw material price increase since FY ended March 2003 has been
putting pressure on profit in following amounts:
Raw material prices down from 4th
quarter of FY ended March 2009
\11.88 bn. in FY ended March 2008
Accumulated total of \15.58 bn. in FY ended March 2009
Accumulated total of \12.18 bn. in FY ended March 2010
10th, 11th
Accumulated total of
-1.50
1st, 2nd and 3rd increases
in raw material prices
3.80
+5.2
Accumulated total of ¥14.68
billion forecast for FY ending March 2011
-6.8
9th
Indirect materials and
PP
0.45
2.50
Indirect materials and
PP 0.40
-5.30
1.00
+4.4
1.90
9th
1.20
8th
1.40
6th, 7th
0.90
Reduction in raw material prices
passed on to product prices
8th 0.40
6th, 7th
Raw material prices on
increase from 2nd quarter of
FY ended March 2010
15.58
0.90
14.68
2nd, 3rd, 4th
12.18
1.00
11.88
2nd, 3rd, 4th
2.00
1st
1.65
1st
1.38
0.60
'03/3
'04/3
'05/3
'06/3
'07/3
'08/3
'09/3
'10/3
'11/3
FP Corporation
・
Internal Improvement Measures
Unit: billion yen
0.80
Shift to thinner, lighter products, replacement of materials
・Non-foaming materials  Foaming materials
・Adding ribs and bottom rims
・FLB and Eco FLB (ultra-lightweight trays)
・Switching to A-PET materials
・Reducing the weight of foamed polystyrene products
Low-foamed PS  High-foamed PS
+2.0
1.20
2.00
Product prices increased
3.80
+3.9
Product prices
lowered
-3.80
0.95
0.95
Distribution improvement
・Ensuring appropriate inventory level
・Reduction of extra transportation before final shipment
・Improving the efficiency of deliveries to customers
2.40
+3.2
Product prices increased
0.90
Production improvement
・Speeding up production
・Increasing rate of in-house production
・Downtime reduction
0.50
0.30
19.66
1.18
Product prices increased
0.80
0.57
0.30
17.66
0.86
Product prices increased
2.30
0.80
13.76
0.87
0.80
Product prices increased
0.77
Continuous internal
improvements
10.56
0.55
0.60
0.20
1.23
0.50
0.38
1.10
0.38
0.24
'03/3
'04/3
'05/3
'06/3
'07/3
'08/3
'09/3
'10/3
'11/3
FP Corporation
・
Improving productivity and quality
稼働率 % rate %
Operating
時間あたりショット数
Number of shots perst/h
time st/h
49th term:
Up another 0.4 points
ショット労務費
\/st
Shot labor costs
\/st
製品効率
%
Product efficiency
%
7.6% improvement
49th term:
Down another
2.3 points
49th term:
Up another 0.03 points
49th term:
Up another 0.5 points
8.0 point improvement
46th
term
46期上
(1st half)
46th
term
46期下
(2nd half)
47th
term
47期上
(1st half)
47th
term
47期下
(2nd half)
0.8 point improvement
9.2% improvement
48th
term
48期上
(1st half)
48th
term 49期計画
49th term
48期下
(2nd half) (projected)
1. Reduction of downtime
2. Reduction of stop time for accommodating troubles
46th
term
46期上
(1st half)
46th
term
46期下
(2nd half)
47th
term
47期上
(1st half)
47th
term
47期下
(2nd half)
48th
term
48期上
(1st half)
48th
term 49期計画
49th term
48期下
(2nd half) (projected)
46th
term
46期上
(1st half)
46th
term
46期下
(2nd half)
47th
term
47期上
(1st half)
47th term
47期下
(2nd half)
48th
term
48期上
(1st half)
48th
term 49期計画
49th term
48期下
(2nd half) (projected)
46th
term
46期上
(1st half)
1. Aiming for best cycle for each product
1. Reduction of stop time for accommodating troubles
2. Renewing and revamping facilities in a planned manner 2. Reducing losses generated when laminating machines are
started up
46th
term
46期下
(2nd half)
47th
term
47期上
(1st half)
48th
term
48期下
(2nd half)
48th
term
48期上
(1st half)
47th
term
47期下
(2nd half)
49th term
49期計画
(projected)
1. Examining optimum personnel assignment
2. Reducing overtime
Effective impact of improvements during FY ending March 2010: Approx. ¥890 million
[Skill school]
Educational programs for resource development
★Succession of superior skills
★Skill development/improvement
120
49th term
(projected)
18ppb
クレーム発生率ｐｐｂ
Complaint rate ppb
80
43ppb
40
FY ended March 2009: 49 graduates
FY ended March 2010: 48 graduates
FY ending March 2011:
First half:
24 trainees entered the school
[Innovative activities in manufacturing ]
75ppb
0
44th
term
44期上
(1st half)
Range of items reduced to 5,000 at the end of February 2010
 6,200 items (end of Mar. 2009)  8,500 items (end of Sep. 2008)
45th
term
45期下
(2nd half)
46th
term
46期上
(1st half)
46th
term
46期下
(2nd half)
47th
term
47期上
(1st half)
47th
term
47期下
(2nd half)
48th
term
48期上
(1st half)
48th
term
48期下
(2nd half)
49th term
49期計画
(projected)
85%
Rate of in-house production
自社生産比率
80%
76%
83%
44th
term
44期上
(1st half)
60
[Reducing the number of items]
45th
term
45期上
(1st half)
Target: 10 ppb
Continuing to hold reporting
Pursuit of speed and precision
sessions once every six months
★Visualizing waste and losses based on “5S”
★Sharing awareness of issues
Achieving higher work standards through reviews and revisions
44th
term
44期下
(2nd half)
44th
term
44期下
(2nd half)
45th
term
45期上
(1st half)
45th
term
45期下
(2nd half)
46th
term
46期上
(1st half)
46th
term
46期下
(2nd half)
47th
term
47期上
(1st half)
47th
term
47期下
(2nd half)
48th
term
48期上
(1st half)
75%
48th
term
48期下
(2nd half)
70%
5.8% improvement
Frequency of replacing molds
40
Foamed PS19.7% improvement
20
0
44th term
45th term
46th term
47th term
48th term
FP Corporation
・
Technologies and Materials
★ We are competitive in all aspects of manufacturing products, including prices
★ Further cost reduction and
further improvement of function in terms of
materials, original fabrics, films, molds, molding and general technologies
◆ Leak-resistant containers ◆ Screw-top containers
◆ PP containers, APET containers
◇ New heat-resistant containers
Screw-top container
Leak-resistant containers
◇ Mono-axially oriented PET containers: Heat-resistant up to 70˚C, increased strength to enable more
lightweight containers
◇ Bi-axially oriented PET containers: Heat-resistant up to 80˚C, increased strength to enable more
lightweight containers
◇ Transparent PP containers: Heat-resistant up to 110˚C
◇ New Histar (HS): Heat-resistant up to 110˚C, increased rate of foaming to product lightweight PP containers
Transparent tray
Snap-fit clamshell container
★ New cold- and heat-resistant containers
★ Multi FP (MFP): Foamed PS containers resistant from -40˚C to 110˚C
★ Super Crystar (SCS): Highly transparent sheet resistant from -40˚C to 110˚C
FY2009-2011
Harnessing resources
FY2012-2014
FP Corporation
Commercialization
of food containers
Hiroshima
University
Joint
Identification of
structures research
and
physical
properties
Wide-ranging
domestic and
international research
Development of usable
prototype NOC
for ultra high-performance
polymers
Sun Allomer Ltd.
Polymers
optimization
Creation of
new industries
Development of ultra
high-performance
polymer materials
Laboratory prototypes
resistant up to 176˚C
☆ Achieving same level of transparency as glass
☆ Enabling thermoforming on a more advanced level
☆ Enabling recycling
Research into polymer
crystallization
☆ Achieving polypropylene crystallization of almost 100%
☆ Achieving specific strength 2-5 that of steel, heat-
FY2006-2009
Initial research
Identification of areas
of research and testing
new general-purpose plastics
To date
Hiroshima
University
☆ Getting involved in development of
MFP tray with SCS lid
Research and Development Roadmap
FP Corporation
・
Cutting Distribution Costs and Improving Quality
Route costs
Internal transportation costs
Internal
横持ち
transportation
製品売上高比
Percentage
of
product sales
Routes
路線
Percentage
of
製品売上高比
product sales
1.1%→
←
FY ended
期
03/3
March 2003
1.2%→
←
FY ended
04/3
March 期
2004
←
1.0%→
FY ended
期
05/3
March 2005
0.9%→
←
FY ended
06/3
March 期
2006
0.7%→
←
0.7%→
←
FY ended
期
07/3
March 2007
FY ended
08/3
March 期
2008
0.4%→
←
FY ended
09/3
March期
2009
0.3%→
←
FY ended
10/3
March期
2010
3.3%→
←
FY ended
期
03/3
March 2003
3.2%→
←
FY ended
期
04/3
March 2004
2.7%→
←
FY ended
期
05/3
March 2005
2.3%→
←
FY ended
期
06/3
March 2006
Total distribution costs
Total
トータル物流費
distribution
Percentage
of
製品売上高比
product sales
1.9%→
←
1.5%→
←
FY ended
期
07/3
March 2007
FY ended
期
08/3
March 2008
50
出荷系ﾐｽ
Errors
related to shipment
18.8% → ← 18.1% →← 17.4% → ← 15.6% → ← 14.8% → ← 14.4% →← 13.9% → ← 13.9% →
FY ended
04/3
March期
2004
FY ended
期
05/3
March 2005
FY ended
06/3
March 期
2006
FY ended
07/3
March 期
2007
FY ended
期
08/3
March 2008
FY ended
09/3
March 期
2009
FY ended
10/3
March期
2010
1.1%→
←
FY ended
期
10/3
March 2010
Other
errors
その他ﾐｽ
40
30
FY ended
03/3
March期
2003
FY ended
期
09/3
March 2009
Trends of small lot distribution, its
service levels
Errors
related to deliveries
配送系ﾐｽ
←
1.2%→
←
(Target for FY ending March 2010: 5ppm)
1.9ppm Shipment-related errors: 1.0ppm
Delivery-related errors: 0.1ppm
Other errors: 0.8ppm
20
10
150
0
FY ended
04/3
期
March 2004
Daily average in FY3/2006: 37 items
→Daily average in FY3/2007: 11.7 items
→Daily average in FY3/2008: 6.2 items
→Daily average in FY3/2009: 4.3 items
→Daily average in FY3/2010: 1.3 items
100
FY ended
05/3
期
March 2005
FY ended
06/3
期
March 2006
FY ended
07/3
期
March 2007
FY
ended
08/3
期
March 2008
Apr.
1
4月1日
May
1
5月1日
Jun. 1
6月1日
Jul. 1
7月1日
Aug.
1
8月1日
Sep. 1
9月1日
FY ended
10/3
期
March 2010
Trends in number of items
subject to shortage
06/3 期
FY3/2006
FY3/2007
07/3 期
FY3/2008
08/3 期
FY3/2009
09/3 期
FY3/2010
10/3 期
FY3/2011
11/3 期
50
0
FY ended
09/3
期
March 2009
Oct. 1
10月1日
Nov. 1
11月1日
Dec. 1
12月1日
Jan. 1
1月1日
Feb. 1
2月1日
Mar. 1
3月1日
FP Corporation
・
FP Corporation's Comprehensive Nationwide Distribution Network
Six delivery centers (339,900m2*)
and 11 picking centers (92,400m2*) nationwide
Hokkaido Delivery Center
Sapporo PC
* Including new Fukuyama Picking Center
Providing high quality, efficient distribution services
Tohoku Delivery Center
New Fukuyama Picking Center
to commence operations in May 2010
Sendai PC
Niigata PC
Fukuyama Delivery Center
Nishinomiya PC
Kanto PC
Fukuyama PC
Kanto Delivery Center
Tokyo PC
Hiroshima PC
Nishikanto PC
Kyushu Delivery Center
Chubu PC
Fukuoka PC
Chubu Delivery Center
New Chubu Picking Center scheduled
to commence operations in May 2011
Outline of small lot distribution
 Items handled: 45,000
 Volume of shipments: 4 million a
month
 Shipment destinations: 220
companies (6,000 locations)
 Delivery precision: 4ppm
(4/1,000,000)
FP Corporation
・
Approach to the Packaging Material and Consumable Goods Market
Market for packaging materials and supplies
Supplies and packaging materials/equipment
Containers for simple packaging
・
Machinery
Fixtures &
fittings
Labels
Absorbent
paper
Fabric
Films
Bags
Office supplies
Promotional
items
Sanitary goods
Transparent
containers
Salad
containers
Sashimi
containers
Lunch box
containers
Prepared
food
containers
Fresh
food trays
・
・
Breakdown of sales
30% ~ 40%
60% ~ 70%
Breakdown of distribution costs
60% ~ 70%
Class A products
Class B products
30% ~ 40%
Class C products
[Breakdown according to class ]
Percentage of warehouse
stock
[Outline of delivery operations]
38%
35%
Class C products
27%
Containers
Containers
Percentage of items
9%
27%
64%
Percentage of sales
54%
38%
8%
- Labels
- Bags
- Edging
- Hygiene
products
·
·
·
Containers
Class A products Class B products
Cutting overall distribution costs,
focusing mainly on container distribution
FP Corporation
・
Expanding the Scale of the Company
Market scale: Over ¥2 trillion
Market for packaging materials and supplies
Market size: \500 billion
Containers for disposable packaging
In stores
Supplies and packaging materials/equipment
Packaging outside stores
・
Machinery
・
Fixtures &
fittings
・
Flavorings
Absorbent
paper
Fabric
Films
Bags
Office supplies
Promotional
items
Sanitary goods
Agricultural
produce
Fruit &
veges
Packed
meat
Fresh fish
Prepared
food
Bolstering our
competitive edge in
specialty areas
Packaging food
for daily
deliveries
October 2009
Gaining ground
in new fields
Took over operations at Nihon Pearl Containers Co. Ltd.
from paper container manufacturer Toyama Yoseisha Co. Ltd.
Support
June 2009
Took over packaging material division of Taiyo Kosan Co. Ltd.,
number one company for containers and films for produce.
Alliances and M&A
Distribution network & SCM
Improving small lot distribution capabilities
New Fukuyama Picking Center (May 2010)
New Chubu Picking Center (May 2011)
June 2010
Plans to incorporate ALRight Inc. into the group
Distribution capabilities, infrastructure/
network and procurement capabilities
Product and material development
capabilities and recycling
Alliances and M&A
☆ Increasing share of existing markets
☆ Targeting new markets
Alliances and M&A
April 2010
Took over product purchasing division of Yuka Shoji Co. Ltd
Suppliers
FP Corporation
・
Group Management
Consolidated production companies
Commissioned producers
Companies with disabled employees
FPCO Hokkaido Co.
FPCO Kannabe Ltd.
FPCO Sendai Co.
FPCO Fukuyama Co.
FPCO Yamagata Ltd.
FPCO Minoshima Co.
FPCO Ibaraki Co.
FPCO Saga Co.
FPCO Shimodate Ltd.
Teika Precision Co.
FPCO Chubu Co.
FPCO Japan Pearl Co.
FPCO Kasaoka Co.
ALRight Inc. (Planed)
Daks Co.
Daks Saga Co.
Daks Shikoku Co.
Nodaya Ltd.
FPCO Ai Pack Corp.
Ibaraki Pigeon Recycling Co.
We supply 13.5 million cartons of products
to dinner tables in 50 million households
all over Japan every year,
with a total of 47 million products delivered
in 110,000 trucks,
and collect 1.9 billion containers (7,500 tons).
FPCO Engineering Ltd.
FP Corporation
Consolidated sales and
purchasing companies
FP CHUPA Co. Ltd.
FP Trading Co. Ltd.
FPCO Modern Pack Co. Ltd.
Materials
manufacturers
and packaging
wholesalers
Commissioned distributors
Sales
Consolidated distribution companies
FPCO Distribution Co. Excel Distribution Ltd.
I Logic Co.
FPCO Picking Ltd.
FPCO Chubu Distribution Ltd.
FPCO Kanto Picking Ltd.
FPCO Kyushu Distribution Ltd.
Production
Environment
Collection of Postconsumer containers
Disabled
employment
SCM
Purchasing
Distribution
Harnessing the group's all-round strengths to
expand the scale of the company and enhance corporate value
FP Corporation
・