to our shareholders business report for fy2008 · orders for our products for use in hybrid...
TRANSCRIPT
Securities code: 7250
CONTENTSFinancial Highlights ･･･････････････････････････････ 1Interview with the President ･･･････････････････････ 2Special Feature: High-Precision Stamping ･････････････ 5Business Results by Segment/ Regional Results ････････ 7Consolidated Financial Statements (summary) ････････ 9Non-consolidated Financial Statements (summary) ･･･ 11Pacific Satoyama Woodland Project ････････････････ 12Company Profile ････････････････････････････････ 13Share Information ･･･････････････････････････････ 14
Business Report for FY2008From April 1, 2008 to March 31, 2009
To Our Shareholders
Financial Highlights
(Million yen)
0
20,000
40,000
60,000
80,000
100,000
2004 2005 2006 2007(Fiscal year)
2008
80,468
57,135
68,277
82,641
89,862
58,04963,090
70,302
51,810
43,773
(Yen)
- 30.0
0
20.0
40.0
60.0
2004 2005 2006 2007(Fiscal year)
2008
- 6.6
33.2
20.6
58.7
43.6
13.6
25.9
41.5
26.3
- 24.7
13.6
25.9
41.5
26.3
0
1,000
- 3,000
2,000
3,000
4,000
5,000(Million yen)
2004 2005 2006 2007(Fiscal year)
2,882
3,439
4,475
3,976
2008
- 490
3,104
2,410
3,733
2,527
- 2,096
(Million yen)
0
20,000
60,000
40,000
80,000
100,000
120,000
2004 2005 2006 2007(Fiscal year)
2008
85,46878,034
71,660
90,287
78,516
61,739
97,476 100,466
87,249 89,985
78,03478,516
61,739
87,249 89,985
(Million yen)
0
1,000
- 2,000
2,000
4,000
3,000
2004 2005 2006 2007(Fiscal year)
1,811
1,147
780
3,144
2,3352,240
1,4001,454
2008
- 355
780
2,240
1,4001,454
- 1,332
(Million yen)
0
10,000
20,000
30,000
40,000
50,000
2004 2005 2006 2007(Fiscal year)
33,21137,739
45,64443,138
36,79240,097
33,052
2008
35,238
31,695
39,42337,739 36,792
40,097
33,052 31,695
Net sales Ordinary income Net income
Consolidated figures
Non-consolidated figures
Net income per share Total assets Net assets
1
CEO Interview
2
What results did the Company achieve for FY2008 (ended March 2009)?
We posted our first net loss for the fiscal year since going public, the result of a wave of production cuts by automakers that hit us directly.
We reported disappointing consolidated results for the fiscal year under review, with consolidated net sales declining 10.5% year on year, to 80,468 million yen, a consolidated operating loss of 437 million yen, a consolidated ordinary loss of 490 million yen, and a consolidated net loss of 355 million yen. Our net sales fell year on year, on a consolidated basis, for the first time in ten fiscal years.The global economic slowdown and the substantial production cuts made by automakers in response were the obvious factors behind these results. Our performance remained strong in the first half of the fiscal year, but orders declined steeply from October 2008. With the added effects of the inventory adjustment we carried out from the fourth quarter, our results plunged to unprecedented levels. For certain items, production fell to less than half the original levels. To deal with this critical situation, we took a number of steps, such as improving our cost structure, streamlining operations, reducing
expenses, allowing contracts for temporary employees to elapse, and imposing restrictions on overtime. Despite these efforts, we still posted a net loss for the fiscal year, our first since listing our shares, as demand fell too quickly and too sharply to be wholly offset.Although our operating results were disappointing, many positive signs for the future emerged during the fiscal year under review. In particular, in the area of capital investment, we were able to make steady progress on activities to develop a production organization for the future, with the establishment of new high-precision stamping lines at the Yoro Plant, the development of continuous auto body parts production lines at the Kyushu Plant, and the setup of stamping and welding lines at our subsidiary in Tianjin, China, all based on a policy set out in OCEAN-10, our Medium-Term Management Plan. In another development, Toyota Motor Corporation asked us to manufacture almost all oil pans used in its gasoline engines, in addition to the oil pans for its diesel engines we were already producing. We set up a production organization for the order by expanding our facilities at the Higashi Ogaki Plant. Unfortunately, the overall operating ratio remains low for these facilities at the moment, given the subsequent downscaling of auto production. Nonetheless, we expect these facilities to become a major source of earnings in the medium and long terms.
Shinya OgawaPresident and Chief Executive OfficerPACIFIC INDUSTRIAL CO., LTD.
Adopting the “inchworm spirit:” Resolutely moving forward and never flinching in the face of the turbulent changes taking place in the operating environment
Q
market a boost. Demand for engines and transmission parts are also set to increase for our high-precision stamping machines (*refer to the Special Feature on page 5). Moreover, the market for tire pressure monitoring systems (TPMS) is likely to expand in Europe and in the United States, the result of a decision to make such systems a legal requirement in the region from November 2012. We plan to continue expanding our shares in growth areas by seizing these business opportunities without fail.Our founder Soichi Ogawa (who established the Company in 1930) adopted the “inchworm spirit” as his management philosophy. An inchworm contracts so that it can maximize the distance it travels in its next movement. An inchworm never turns backward, and moves forward little by little, contracting and expanding step by step, no matter what difficulty stands in its path. We need to respond with a sense of urgency, because time no longer flows at the pace it did in bygone days. However, we must also return to the spirit of our founder, and pull ourselves through this severe global recession.
How do you plan to respond to the rapid business downturn?
We will make strategic preparations for the next generation by “stocking up on human talent.”
As I explained earlier, we began reducing our overall labor costs and other expenses in the second half of the fiscal year under review, and took comprehensive steps to curb our investments. In addition to the emergency financing system for employees, we introduced the bridge financing system for our suppliers as an emergency measure. The Pacific Industrial Group is standing up against this crisis as a united force, by offering indirect support to suppliers having a difficult time raising funds.Given consistent production increases, we have in recent years had difficulty finding sufficient opportunities to transfer our technologies and skills to employees early in their career path. Now that production pressures have diminished, we have the opportunity to “stock up on human talent.” I would like our leaders to seriously think about what they should teach our newcomers and what they in future should pass on to employees in the next era. We would like to make strategic preparations for future generations in this way. “Personnel” become “human resources” when we train our
What are your business plans for FY2009 (ending March 2010)?
We will create a business structure geared to overcoming adverse conditions and accelerate efforts to restore our profitability.
Business conditions are unlikely to improve rapidly, judging from our most recent orders and automakers’ production plans. We cannot expect to avoid falling profits in these circumstances. In this environment, we will focus on our basic activities during the first half of the current fiscal year, aiming to return to the black on a full-year basis, positioning the restoration of profitability as our number one priority. We will not delay for an instant in creating a slim business structure that is equipped to deal with the economic challenges, and rebuilding our cost structure through healthy team member collaboration. At the same time, we will tighten our controls, and step up our efforts to streamline management, leaving no aspect untouched, by restructuring Group member companies, refining our operating focus, and introducing other initiatives in this fiscal year.The outlook is not all grim, by any means. We are receiving many orders for our products for use in hybrid vehicles. The new PRIUS model released in May is generating more orders than we anticipated. We expect this model to give the sluggish automobile
New PRIUS model released in May 2009The model uses many Pacific Industrial products, including wheel covers designed by the Company, a battery case, an oil pan and a backdoor opening device.
CEO Interview
3
employees with a sense of purpose, vigorously encouraging our entry level workers to realize that a “chance like this comes only once in a lifetime.”
How much progress has been made on theOCEAN-10 Medium-Term Management Plan?
We will draw up the new OCEAN-12 Plan that responds to prevailing business conditions by the end of this fiscal year.
We have adopted such keywords as “technologies and overseas” and “manufacturing to cultivate human resources” in OCEAN-10, our Medium-Term Management Plan that will conclude in fiscal 2010, and have sought to expand our operations with the goal of being a leading parts manufacturer both globally and locally. We have taken virtually every step required to set up our foundations. However, achieving numerical targets with businesses that take advantage of these foundations has become difficult, as a result of the rapid changes in the operating environment that have occurred since the end of last year. Based on this, we decided to draw up OCEAN-12, our new Medium-Term Management Plan, which sets 2012 as the target year.Through the course of this new Medium-Term Management Plan, we would like to transform our business structure so that we can combine our limited resources, such as our associates, materials and money, with ingenuity and achieve the maximum effect. We are planning to change our business structure through a process of refining our business focus, in light of the shift from regular, to emergency, and then to long-term operations now underway, by developing basic strategies for solidifying our foothold in terms of safety, environment, quality, production, and cost. Meanwhile, we will continue to deepen and integrate our proprietary technologies to bolster our competitiveness in existing businesses and move our business structure to an emphasis on high value-added products.We are also planning to change our long-term vision next year, from the current PACIFIC GLOCAL VISION 2015 to PACIFIC GLOCAL VISION 2020.
Finally, what message would you like tocommunicate to shareholders and investors?
We are committed to returning to the black at the earliest stage with our “inchworm spirit.”
We have decided to pay a year-end dividend of 3 yen per share for the fiscal year under review (giving an annual dividend of 8 yen per share). This decision takes into consideration our income levels in the fiscal year and likely business conditions in the future. The year-end dividends represent a year-on-year decline of 2 yen per share. With our resolve to establish a structure for restoring profitability under the Medium-Term Management Plan, through initiatives such as those to solidify our foothold and respond to next-generation demands, we request your kind understanding of our decision to reduce the dividend.Under the difficult operating conditions, we continue to advance our program of corporate social responsibility (CSR) activities, including steps to improve compliance, strengthen risk management, protect the global environment, and contribute to sustainable development. With these activities, we seek to fulfill our responsibility to the community.We expect operating conditions to remain difficult in the period ahead. The Pacific Industrial Group is resolved to confront these conditions with the “inchworm spirit,” with all members, including those in five countries abroad, united as one under the goal of “becoming a leading parts manufacturer both globally and locally.” We ask our shareholders and investors for their continued understanding and support in the years to come.
4
High-precision stamping is a processing technology that
achieves light weight, low cost, high function and high
precision in manufacturing, with composite molding that
consists of stamping and cold forging. It is a new technology
that we have commercialized in an environment of
intensifying competition worldwide and demanding changes
in operating conditions.
The Company’s high-precision stamping products have been
adopted as highly functional parts used in automatic
transmissions and hybrid units. Together with the Company’s
comprehensive technological capabilities, these products are
gaining an edge over their competitors on the strength of
their excellent reputation as new and distinct components.
*Cold forging: Compression molding of metallic materials with the use of molds at normal temperatures is known as cold forging. Cold forging requires great skill and experience, given the extreme difficulty involved in designing molds.
Integrating stamping and cold-forging to achieve unmatched weight, cost, function and precision performance in manufacturing
High-Precision Stamping
Special Feature
5
Reducing the weight of automobile components has emerged as a major challenge in recent years, the result of intensifying competition for developing more fuel-efficient cars as a measure for protecting the environment.The Company’s high-precision stamping products, adopted as generator parts in the new PRIUS model, use aluminum alloys to cut weight. We have succeeded in mass producing these components using original process designs and the net-shape method.* Our eco-friendly manufacturing approach is winning plaudits from customers by reducing both weight and cost courtesy of high-efficiency processing.
*Net- shape methodThe net-shape method is a processing technology that effectively uses materials by bringing the weight of materials required for processing closest to the product weight. It is an eco-friendly processing technology that contributes to resource and energy conservation (high-efficiency energy production) by eliminating cutting loss and other waste in processes centering on cold forging, and by reducing the volume of materials used.
Stress analysis
Eco-friendly manufacturing with the net-shape method
Key factors in high-precision stamping are molds, facilities and personnel. With a commitment to pursuing these three factors, the Company is constantly developing new, unrivaled manufacturing processes.The Company’s high-precision stamping products, adopted as change gear parts used in automatic transmissions, have achieved in-process forms of metal flows that had not been previously expressed in technical drawing measurements and material standards. This was done by independently and internally controlling them with the combined use of stamping and forging. These products boast light weight, low cost, sophisticated functions, and impressive precision.
Manufacturing with determination to make things right
Molds: Mold manufacturing through the minimum and optimum processes by skillfully controlling metal flows (the directions in which metals flow)
Facilities: Original automation lines based on general-purpose machines and incorporating special functions
Personnel: Personnel training with no compromise made in molds and facilities
The initial examination from process design to test production is performed in a short period, with stress analysis in each molding process.
Manufacturing using the net-shape method
Processed goods are actively forged and their functions are enhanced with cold flows of base metals within molding processes.
Metal flow controls
An original automation line
The Company is manufacturing stable products of high quality with precision measurement.
Unrivaled manufacturing
6
Low stress
High stress
Stamping and resin product business segmentNet sales: 57 billion yen Operating loss 0.9 billion yen
Net sales increased year on year for consolidated subsidiaries in the United States on a local currency basis. However, net sales translated into yen figures declined, reflecting the strong yen. Net sales rose for our consolidated subsidiary in Tianjin, China, thanks to the expansion of production. In Taiwan, however, net sales were substantially below levels achieved in the previous fiscal year for the Company and its consolidated subsidiary, due to weaker automobile production.As a result of the developments described above, consolidated net sales for this segment fell 9.5% from the previous fiscal year, to 57,049 million yen. We posted a consolidated operating loss of 904 million yen (compared to consolidated operating income of 1,254 million yen reported in the previous fiscal year), owning primarily to a sharp decline in sales and rising depreciation and amortization expenses associated with substantial investment, as well as to lower market prices of scrap iron.
Net sales and operating income
Product information
Consolidated net sales for Japan declined 15.9% from the previous fiscal year, to 50,668 million yen, and consolidated operating loss of 2,668 million yen resulted for this region (compared to consolidated operating income of 1,992 million yen reported in the previous fiscal year). This result was influenced by factors that included a steep decline in sales volume for the Company from the third quarter because of poor automobile sales, greater depreciation and amortization expenses caused by large-scale investment and tax system reforms, and the appreciation of the yen.Notwithstanding an exchange loss attributable to the strong yen, consolidated net sales for North America rose 0.2% from the previous fiscal year, to 21,508 million yen, the result of factors such as expanded TPMS sales. Consolidated operating income for this region decreased 20.5% from the previous fiscal year, to 1,235 million yen, reflecting factors such as higher labor costs and other expenses.Consolidated net sales for Asia grew 2.3% from the previous fiscal year, to 8,291 million yen, thanks to substantial contributions made by a consolidated subsidiary in Tianjin, China, which expanded production. Consolidated operating income for this region rose sharply from the previous fiscal year at the year-on-year rate of 125.9%, to 584 million yen.
Japan 63.0%
North America
26.7%
Asia10.3%
Net sales by region
Net sales
80,468 million yen
2005 2006 2007 2008
(Million yen)
(Million yen)
(Fiscal year)
15,000
30,000
45,000
60,000
75,000
0
500
1,000
1,500
2,000
51,392
1,660
1,918
1,254
- 904
60,30863,024
57,049
Net sales Operating income
0
Hybrid battery cases Wheel coversWe are manufacturing cases that accommodate batteries used in Toyota’s hybrid cars. We are striving to reduce the size and weight of these cases, paying attention to the cooling structure for preventing deterioration in battery performance and to measures for insulating high-pressure electric circuits.
The Company’s wheel covers, which are being used in the new PRIUS model, help improve aerodynamic performance (with better mileage) by rectifying air flows. These covers also feature a completely recyclable center mark made with an insert molding technology for bright films.
Business results by segment
Regional results
7
71%
Product information
Valve product business segmentNet sales: 22.9 billion yen Operating income 0.4 billion yen
Consolidated net sales for this segment fell 12.2% from the previous fiscal year, to 22,906 million yen, on lower sales of tire valves and valve-related products and tire pressure monitoring systems (TPMS), which in turn reflected lower automobile production and inventory adjustment. Despite steps to improve cost and cut expenses, consolidated operating income for the segment plunged 79.7% from the previous fiscal year, to 469 million yen.
*Amounts by segment and amounts by region exclude inter-segment and inter-region transactions.
(Fiscal year)2005 2006 2007 2008
(Million yen)
47,508
13,711
7,057
56,033
19,885
6,722
60,279
21,474
8,108
50,668
21,508
8,291
Japan North America Asia
0
20,000
40,000
60,000 (Million yen)
2,505
- 114
637
2,956
799
201
1,992
1,553
258
- 2,668
1,235
584
- 3,000
0
1,000
2,000
3,000
2005 2006 2007 2008 (Fiscal year)
Japan North America Asia
Net sales and operating income
Net sales by region Operating income by region
2005 2006 2007 2008
(Million yen)
(Million yen)
(Fiscal year)
10,000
20,000
30,000
1,000
2,000
3,000
0
16,246
1,390
1,906
2,314
469
21,629
26,085
22,906
0
Net sales Operating income
Valve cores Tire Pressure Monitoring Systems (TPMS)Valve cores are the Company’s oldest products. These precision parts are the very heart of tire valves. They perform the role of valves that feed air to tires. Our market shares for these products have reached 100% in Japan and 25% in other countries. We have established Pacific as the valve core brand with the most sophisticated product quality and technologies in the world. We export our valve cores to countries worldwide, taking advantage of our global manufacturing and sales organization.
TPMS are groundbreaking systems that directly measure tire pressure and temperature with a sensor built in a transmitter installed within the tires, and automatically report abnormal conditions to the driver. TPMS contribute not only to driving safety but also to improving mileage and reducing carbon dioxide by keeping tire pressure at appropriate levels. Following the United States, The European Union has decided to make TPMS installation a legal requirement for regional automakers by 2012.
Established in 2005, Tianjin Pacific principally manufactures auto body parts. Despite the effects of the global economic crisis, Tianjin Pacific posted gains in both sales and income in fiscal 2008. The subsidiary is aiming to expand its operations in China, a market expected to achieve rapid growth.
8
Expectations for the Chinese automobile marketTianjin Pacific Auto Parts Co., Ltd.
Topics
29%
Consolidated Balance Sheets(Unit: million yen, amounts of less than one million yen are discarded)(Unit: million yen, amounts of less than one million yen are discarded)
Balance of cash and deposits, tangible fixed assets, and long-term loans payableThe balance of cash and deposits decreased on factors such as greater capital investment, and an increase in long-term loans undertaken to raise funds.
Investments in securities, deferred tax liabilities and other unrealized gains on marketable securitiesInvestments in securities, deferred tax liabilities and other unrealized gains on marketable securities decreased, owing primarily to a decline in the market value of the share portfolio.
Notes for FY2008 (as indicated in Consolidated Balance Sheets)
Item At the endof FY2008
At the endof FY2007
(Assets)
Current assets 19,674 30,919
Cash and bank balance 2,804 6,718
Notes and accounts receivable 7,794 13,115
Inventories 5,631 7,102
Others 3,462 4,028
Allowance for doubtful receivables - 18 - 45
Fixed assets 65,794 69,546
Tangible fixed assets 48,101 45,806
Buildings and structures 12,872 11,065
Machinery and vehicles 17,204 16,416
Tools, equipment and fixtures 5,838 6,366
Land 5,373 5,698
Leased assets 1,566 － Construction in progress 5,246 6,259
Intangible fixed assets 261 370
Investments and other assets 17,431 23,369
Investments in securities 14,780 20,416
Prepaid pension expenses 2,070 2,421
Others 620 567
Allowance for doubtful receivables - 39 - 35
Total assets 85,468 100,466
Item At the endof FY2008
At the endof FY2007
(Liabilities)
Current liabilities 21,000 29,426 Notes and accounts payable 5,940 10,511
Short-term loans payable 5,966 5,106
Long-term loans payable within one year 1,191 119
Accrued expenses 5,270 10,261
Others 2,632 3,427
Long-term liabilities 29,229 27,901 Convertible bonds payable 6,000 6,000
Long-term loans payable 17,560 14,569
Deferred tax liabilities 3,403 6,261
Others 2,265 1,070
Total liabilities 50,229 57,328(Net assets)
Shareholders' equity 32,724 33,621 Capital stock 4,320 4,320
Capital surplus 4,579 4,579
Retained earnings 24,155 25,051
Treasury stock - 331 - 329
Valuation and translation adjustments, etc. - 38 6,884 Other unrealized gains on marketable securities 4,447 7,789
Foreign currency translation adjustments - 4,486 - 905
Minority interests 2,553 2,632Total net assets 35,238 43,138Total liabilities and net assets 85,468 100,466
1
1 1
2
22
1
2
Consolidated Financial Statements (Summary)
9
Consolidated Statements of Income Consolidated Statements of Cash Flows(Unit: million yen, amounts of less than one million yen are discarded)(Unit: million yen, amounts of less than one million yen are discarded)
Item At the endof FY2008
At the endof FY2007
Net sales 80,468 89,862
Cost of sales 73,863 78,111
Gross margin 6,604 11,751Selling, general and administrative expenses 7,042 8,110
Operating income (operating loss) - 437 3,640
Non-operating income 685 1,107
Non-operating expenses 737 771
Ordinary income (ordinary loss) - 490 3,976
Extraordinary income 1 339
Extraordinary loss 281 496
Net income before income tax, etc. - 770 3,819
Income tax, inhabitant tax and enterprise tax 204 1,148
Income tax adjustments - 621 409
Minority interests (-: negative) 1 - 74
Net income (Net loss) - 355 2,335
Item At the endof FY2008
At the endof FY2007
Cash flows from operating activities 7,520 10,472
Cash flows from investing activities - 17,002 - 12,853
Cash flows from financing activities 6,108 4,186Translation adjustments for cash and - 370 - 39cash equivalents
Increase (decrease) in cash and cash equivalents - 3,744 1,766
Balance of cash and cash equivalents 6,170 4,404at the beginning of the fiscal year
Balance of cash and cash equivalents 2,426 6,170at the end of the fiscal year
Notes for FY2008 (as indicated in Consolidated Balance Sheets)
Net sales: Net sales declined 10.5% from the previous fiscal year, reflecting a fall in the number of automobiles produced by major customers.
Ordinary income: Ordinary income fell sharply, influenced by greater depreciation and amortization expenses attributable to significant investment and an exchange loss caused by the strong yen, combined with a decline in sales volume.
3
4
3
4
Consolidated Statements of Changes in Equity (for FY2008) (Unit: million yen, amounts of less than one million yen are discarded)
ItemShareholders’ equity Valuation and translation adjustments, etc.
Minorityinterests
Total netassetsCapital
stockCapitalsurplus
Retainedearnings
Treasurystock
Totalshareholders’
equity
Other unrealized gains on
marketable securities
Foreign currencytranslation
adjustments
Total valuationand translationadjustments,etc.
Balance as of March 31, 2007 4,320 4,579 25,051 - 329 33,621 7,789 - 905 6,884 2,632 43,138Changes resulting to new accounting
- 1 - 1 - 1procedures at overseas subsidiaries
Changes during the consolidated fiscalyear under review
Cash dividends - 538 - 538 - 538
Net loss (-: negative) - 355 - 355 - 355
Acquisition of treasury stock - 1 - 1 - 1
Disposition of treasury stock 0 0 0 0
Net changes in items other than shareholders’ equity- 3,342 - 3,580 - 6,923 - 79 - 7,002during the consolidated fiscal year under review
Total changes during the consolidated — 0 - 896 - 1 - 897 - 3,342 - 3,580 - 6,923 - 79 - 7,899fiscal year under review
Balance as of March 31, 2009 4,320 4,579 24,155 - 331 32,724 4,447 - 4,486 - 38 2,553 35,23810
Item At the endof FY2008
At the endof FY2007
Net sales 58,049 70,302
Cost of sales 54,992 61,867
Gross margin 3,056 8,434
Selling, general and administrative expenses 5,722 6,513
Operating income (operating loss) - 2,666 1,920
Non-operating income 977 1,254
Non-operating expenses 408 646
Ordinary income (ordinary loss) - 2,096 2,527
Extraordinary income － 306
Extraordinary loss 273 493
Net income before income tax - 2,370 2,340
Income tax, inhabitant tax and enterprise tax 61 738
Adjustments for income tax, etc. - 1,098 200
Net income (net loss) - 1,332 1,400
Item At the endof FY2008
At the endof FY2007
(Assets)Current assets 15,143 24,752Fixed assets 62,890 65,233 Tangible fixed assets 33,757 30,503 Intangible fixed assets 251 415 Investments and other assets 28,880 34,313Total assets 78,034 89,985(Liabilities)Current liabilities 18,908 27,419Long-term liabilities 27,429 25,773Total liabilities 46,338 53,193(Net assets)Shareholders’ equity 27,118 28,991 Capital stock 4,320 4,320 Capital surplus 4,576 4,576 Retained earnings 18,446 20,317 Treasury stock - 224 - 223Valuation and translation adjustments, etc. 4,577 7,801Total net assets 31,695 36,792Total liabilities and net assets 78,034 89,985
Non-consolidated Statements of Changes in Equity (for FY2008)
ItemShareholders’ equity Valuation and
translation adjustments, etc.
Total netassetsCapital
stockCapitalsurplus
Retainedearnings
Treasurystock
Totalshareholders’
equity
Balance as of March 31, 2008 4,320 4,576 20,317 - 223 28,991 7,801 36,792
Changes during the fiscal year under review
Cash dividends - 538 - 538 - 538
Net loss - 1,332 - 1,332 - 1,332
Acquisition of treasury stock - 1 - 1 - 1
Disposition of treasury stock 0 0 0 0
Net changes in items other than shareholders equity - 3,224 - 3,224during the fiscal year under review
Total changes during the fiscal year under review — 0 - 1,871 - 1 - 1,872 - 3,224 - 5,097
Balance as of March 31, 2009 4,320 4,576 18,446 - 224 27,118 4,577 31,695
Non-consolidated Balance Sheets Non-consolidated Statements of Income(Unit: million yen, amounts of less than one million yen are discarded) (Unit: million yen, amounts of less than one million yen are discarded)
(Unit: million yen, amounts of less than one million yen are discarded)
Non-consolidated financial statements (summary)
11
Activity areasNorth
To Mie Prefecture
National highway No. 365
BiotopeBiotope
Plantation care area 1
Plantation care area 2
Tree-planting areaTree-planting area
Community interaction siteKamiishidu Midori no Mura Park
Kamiishidu folky mountain study forest
To Ogaki City Center, Sekigahara-choFive Pacific Industrial Group members have commenced activities for developing a woodland in the Pacific Satoyama Woodland zone of Kami-Ishizucho, Ogaki City, Gifu Prefecture, following the signing of a collaborative government-enterprise woodland development agreement with the Gifu Prefectural Government and the Ogaki City Office.These activities cover a project period of ten years, which began in February 2009. The Project is designed to promote comprehensive development of a satoyama in partnership with members of the local community. Initiatives include forest management for providing a safe, relaxing, and comfortable living environment and educational enhancement for using the satoyama ecosystem effectively.The first tree-planting ceremony for the Project was held in March 2009, with some 350 participants from the five Pacific Industrial Group members, their families, and the local community. The participants planted mountain cherry blossoms, konara oak, Japanese chestnut, and other saplings.Going forward, the five companies will plan and execute activities, including clean-cutting, thinning, nature trail establishment, biotope establishment, and walking tours. Through these activities, they will seek to enable employees, their family members, and members of the local community to enjoy satoyama, and increase their awareness of the importance of environmental conservation.
Satoyama are woodlands near human settlements, the ecosystems of which are maintained by human labor, including mowing and logging of excess trees. Most satoyama woodlands have fallen into decline in recent years, the result of changing lifestyles and a lack of people to manage them. Satoyama offer an environment peculiar to Japan, jointly developed by its people and nature. They are home to large numbers of living creatures and help preserve local history and culture. Pacific Industrial has begun a program to restore satoyama, which have been called an archetypal image in the Japanese mind.
Pacific Satoyama Woodland Project” for promoting the conservation and use of satoyama (semi-natural woodlands located close to populated areas)
What are satoyama?
Three representatives sign an agreement at the signing ceremony held in the Gifu Prefectural Government Office.
Children enjoy planting trees and other events designed to offer woodland experience.
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Company Profile Corporate Directors, Auditors and Officers(as of June 20, 2009)
Shinya OgawaChairman, Member of the Board of Directors
Yasunori HataVice President, Member of the Board of Directors
Masaharu ObaSenior Managing Officer, Member of the Board of Directors
Chikashi SuzukiSenior Managing Officer, Member of the Board of Directors
Takayuki IshizukaSenior Managing Officer, Member of the Board of Directors
Katsuya SuzukiSenior Managing Officer, Member of the Board of Directors
Takafumi Shimizu Fulltime Corporate Auditor
Hiroshi Nagata Fulltime Corporate Auditor (newly appointed)
Yukio Manita Corporate Auditor
Katsuhiro Takahashi Corporate Auditor
Junzo Matsumoto Managing Officer
Kenji Mizobe Managing Officer
Toshiteru Ando Officer
Tsunenaga Moshino Officer
Toshinori Tanahashi Officer
Kunihiro Yanagihara Officer
Hisashi Kayukawa Officer (newly appointed)
Terumi Noda Officer (newly appointed)
Name:
Head Office location:
Established:
Capital stock:
Number of employees:
Businesses:
Pacific Industrial Co., Ltd.
100 Kyutoku-Cho, Ogaki City,
Gifu Prefecture, 503- 8603 Japan
TEL 0584−91−1111 (main switchboard)
August 8, 1930
4,320 million yen
1,660 persons
Manufacturing and sales of automotive
parts, electric appliance components,
electronic devices and other products
Manufacturing
plants and
branch offices:
Nishi Ogaki Plant, Higashi Ogaki Plant, Yoro Plant,
Kyushu Plant, Kita Ogaki Plant, Mino Plant,
Tokyo Branch Office, PACIFIC TERA HOUSE
and PACIFIC TOYOTA CITY OFFICE
Japan
Taiwan
South Korea
United States
Thailand
China
PEC Holdings Corporation
Pacific Development Co., Ltd.
Taiyo Kosan Co., Ltd
Taiheiyo Sangyo Co., Ltd.
PI System Co., Ltd.
Juji Industrial Co., Ltd.
Pacific Valve (Taiwan) Co., Ltd.
Pacific Valve Industrial Co., Ltd.
Pacific Air Control Co., Ltd.
Pacific Industries USA Inc.
Pacific Manufacturing Ohio, Inc.
Takumi Stamping Inc.
Pacific Industries（Thailand） Co., Ltd.
Qingdao Pacific Hongfeng Industrial Co., Ltd.
Tianjin Pacific Auto Parts Co., Ltd.
Operations in Japan
PACIFIC INDUSTRIAL Group members
(as of March 31, 2009)Company Profile
13
Foreign corporations6.2%
Treasury stock1.4%
Securities companies0.3%
Financialinstitutions
41.2%
Other Japanese corporations13.3%
Individualsand others
37.6%
Number of shares the Company is authorized to issue: 90,000,000 sharesNumber of shares already issued: 54,646,347 sharesNumber of shareholders: 4,536 parties
(Note) Shareholding ratios exclude treasury stock.
2004 2005 2006 2007 2008
(yen/share)
(Fiscal year)
58.7% (%)
Interim dividends Year-end dividends Dividend payout ratio
0
3
6
9
12
0
15
30
45
60
24.1%38.5%
30.4%
3 3
3
55
5
55
510yen
8yen 8yen8yen
10yen
5
State of Shares Share Distribution by Owner
Share Distribution by Share Number
Principal Shareholders (top 10 shareholders)
Changes in Dividends / Dividend Payout Ratio(Non-consolidated)
Introducing Our Website
www.pacific-ind.co.jp
Our website offers information for shareholders and other investors, including the latest financial data, financial results and share price data.
100,000 shares to 999,999 shares
18.6%
1,000 shares to 9,999 shares
14.3%
999 or less shares0.1%
1,000,000 or more shares55.0%
10,000 shares to 99,999 shares
12.0%
Shareholder nameNumber of sharesheld (thousands
of shares)
Shareholdingratio (%)
The Bank of Tokyo-Mitsubishi UFJ, Ltd. 2,679 4.97
Ogaki Kyoritsu Bank, Ltd. 2,671 4.96
The Juroku Bank, Ltd. 2,619 4.86
Nippon Life Insurance Company 2,457 4.56
The Dai-ichi Mutual Life Insurance Company 2,349 4.36
Japan Trustee Services Bank, Ltd. (trust account) 2,281 4.23
PEC Holdings Corporation 1,987 3.69
Giken K. K. 1,891 3.51
Japan Trustee Services Bank, Ltd. (trust account 4G) 1,780 3.30
Nipponkoa Insurance Co., Ltd. 1,737 3.22
(as of March 31, 2009)Share Information
14
This document was printed using an eco-friendly, plant-derived soy ink.
100 Kyutoku-Cho, Ogaki City, Gifu Prefecture, Japan
Tel: 0584-91-1111 (main) Fax: 0584-92-1804
Business year: From April 1 to March 31 of the following year
Date on which shareholders receiving year-end dividends are established:
March 31
Date on which shareholders receiving interim dividends are established:
September 30
Annual general meetingof shareholders: June of each year
Transfer agent: Mitsubishi UFJ Trust and Banking CorporationSpecial account administrator
Administrator contact address:
Corporate Agency DivisionMitsubishi UFJ Trust and Banking Corporation7-10-11 Higashi-Suna, Koto-ku, Tokyo 137-8081Phone: 0120-232-711 (Toll-free)
Stock exchange listings: Tokyo Stock Exchange andNagoya Stock Exchange
Trading unit: 1,000 shares
Securities code: 7250
Method of public notice:
By means of electronic public noticeAddress of the website where electronic public notices will be made:http://www.pacific-ind.co.jp/koukoku/(Public notices will be made in the Chubu Keizai Shimbun newspaper and the Nihon Keizai Shimbun newspaper when the publishing of electronic public notices is not possible.)
Nature of procedures, inquiries, etc. Contact for inquiries
- Requests for transfers from special accounts to regular accounts
- Requests for the purchase (additional purchase) of shares of less than one unit
- Changes of name, address, etc.- Inquiries about special account balances- Nomination of method for receiving
dividends (*)
Specialaccount administrator
Corporate Agency DivisionMitsubishi UFJ Trust and Banking Corporation7-10-11 Higashi-Suna, Koto-ku, Tokyo 137-8081Phone: 0120-232-711 (Toll-free)
- Inquiries relating to the shipment and return of mailed articles, etc.
- Inquiries relating to dividends after their payment period has elapsed
- General inquiries relating to share administration
Transferagent
(*) Shareholders owning shares recorded in special accounts may not choose proportional distribution based on the number of shares as their method for receiving dividends.
Nature of procedures, inquiries, etc. Contact for inquiries
- Inquiries relating to the shipment and return of mailed articles, etc.
- Inquiries relating to dividends after their payment period has elapsed
- General inquiries relating to share administration
Transferagent
Corporate Agency DivisionMitsubishi UFJ Trust and Banking Corporation7-10-11 Higashi-Suna, Koto-ku, Tokyo 137-8081Phone: 0120-232-711 (Toll-free)
- Other procedures and inquiries Please ask the securities company, etc. where you maintain your account about these procedures.
Procedures relating to shares
• Shares recorded in special accounts
• Shares recorded in accounts opened at securities companies, etc.
Method for obtaining the documentation required for procedures- Request via an interactive voice
response system0120-244-479 (Toll-free)- Downloading from a websitehttp://www.tr.mufg.jp/daikou/
Date of issue: June 21, 2009
1. With the digitization of share certificates, account administrators where accounts have been opened (such as securities companies) have been appointed, in principle, to perform procedures for shareholders, including those for changing addresses and requesting purchases. Please ask the securities company, or other institution that maintains your account, about these procedures. Please note that the transfer agent (Mitsubishi UFJ Trust and Banking Corporation) does not deal with these procedures.
2. Mitsubishi UFJ Trust and Banking Corporation is responsible for procedures for shareholders who have special accounts. Please ask the special account administrator stated above (Mitsubishi UFJ Trust and Banking Corporation) about these procedures. Branch offices of Mitsubishi UFJ Trust and Banking Corporation across Japan can deal with these procedures.
3. The head and branch offices of Mitsubishi UFJ Trust and Banking Corporation pay dividends receivable.
(Notes)
Notes for Shareholders