Chuo Malleable Iron Co., Ltd. Business Report FY ended Mar. 2015

Financial Overview

(in million JPY)

	FY ended Mar. 31, 2015	FY ended Mar. 31, 2014	Rate of change (%)	Factors
Overall
Sales	23,529	22,381	5.1	-Sales and profit increased as a result of winning new customers, developing new products, and implementing cost-reduction initiatives.
Operating income	601	295	103.7
Ordinary income	1,330	985	35.0
Current net income	1,080	673	60.5
Die-casting Business
Sales	22,646	21,617	4.8	-Sales and profit increased as a result of higher sales of small-truck parts due to greater of production outside Japan.
Operating income	1,499	1,204	24.5

Outlook for FY ending Mar. 31, 2016

(in million JPY)

	FY ending Mar. 31, 2016 (Forecast)	FY ended Mar. 31, 2015 (Actual Results)	Rate of change (%)
Sales	24,000	23,529	2.0
Operating income	610	601	1.5
Ordinary income	1,350	1,330	1.5
Net income	1,060	1,080	(1.9)

R&D Expenditure

(in million JPY)

	FY ended Mar. 31, 2015	FY ended Mar. 31, 2014	FY ended Mar. 31, 2013
Overall	35	34	20
-Die-casting Business	18	19	5

R&D Structure

Die-casting Business
-R&D activities are conducted by the R&D Section of the Engineering Management Department.

-Taking environmental concerns into consideration, the Company is actively working to raise the yield or ratio of recyclable materials, emphasizing the creation of market innovations based on developmental technology.

Capital Expenditure

(in million JPY)

	FY ended Mar. 31, 2015	FY ended Mar. 31, 2014	FY ended Mar. 31, 2013
Overall	1,396	1,104	2,617
-Die-casting Business	1,366	1,098	2,584

Die-casting Business
-Capital investments during FY ended Mar. 2015 were focused on the following projects:

Maintenance and up-keep of existing facilities
Rationalization and renewal of production facilities

Planned Capital Investments

(As of Mar. 31, 2015)

Company/ Facility (Location)	Equipment	Planned amount of investment (in million JPY)	Project period		Capacity increase
Company/ Facility (Location)	Equipment	Planned amount of investment (in million JPY)	From	To	Capacity increase
The Company Nissin Plant (Aichi, Japan)	Die-casting equipment	431	Mar. 2015	Mar. 2016	*1
The Company Nissin Plant (Aichi, Japan)	Processing equipment	595	Mar. 2015	Mar. 2016	*1
The Company Kumamoto Plant (Kumamoto, Japan)	Processing equipment	651	Mar. 2015	Mar. 2016	*1
Toki Malleable Iron Co., Ltd. (Gifu, Japan)	Die-casting equipment	291	Apr. 2015	Mar. 2016	*1
Suzhou Chuo Malleable Iron Co., Ltd. (Suzhou, China)	Die-casting equipment	541	Jan. 2015	Dec. 2015	*1

*1: The project is to renew facilities, so the production capacity will remain unchanged.

Data

Segment	Mar. 2015	Mar. 2014	Mar. 2013
Die-casting Business	674	674	691
Metal Furniture Business	20	19	18
In common	61	59	52
Total	755	752	761

Sales by Segment

(in million JPY)

	FY ended Mar. 31, 2015		FY ended Mar. 31, 2014		FY ended Mar. 31, 2013
	Sales	Operating income	Sales	Operating income	Sales	Operating income
Die-casting Business	22,646	1,499	21,617	1,204	20,807	1,526
Metal Furniture Business	882	(2)	763	4	644	14
Adjusted amount	-	(896)	-	(912)	-	(934)
Total	23,529	601	22,381	295	21,452	606

Consolidated

	FY ended Mar. 31, 2011	FY ended Mar. 31, 2012	FY ended Mar. 31, 2013	FY ended Mar. 31, 2014	FY ended Mar. 31, 2015
Sales (thousand yen)	19,421,078	20,896,414	21,452,198	22,381,349	23,529,079
Income from ordinary business activities (thousand yen)	910,468	918,454	1,046,189	985,151	1,330,303
Net income (thousand yen)	737,104	986,782	683,706	673,598	1,080,934
Comprehensive income (thousand yen)	524,910	1,041,769	1,329,490	1,874,403	2,183,422
Net assets (thousand yen)	11,595,281	12,448,372	13,658,373	15,597,752	17,902,914
Total assets (thousand yen)	17,068,096	20,370,874	21,503,150	23,469,695	26,535,199
Book value per share (yen)	760.87	827.94	909.31	1,041.36	1,197.48
EPS (yen)	49.14	67.36	46.99	46.29	74.29
Diluted EPS (yen)	-	-	-	-	-
Net asset ratio (%)	65.5	59.1	61.5	64.5	65.6
ROE (%)	6.65	8.49	5.40	4.74	6.63
PER	7.22	5.41	7.21	7.23	5.76
Cash flow from operating activity (thousand yen)	2,091,798	1,409,191	2,212,715	1,118,162	2,055,695
Cash flow from investment activity (thousand yen)	(773,730)	(1,427,179)	(2,285,798)	(1,249,040)	(1,072,993)
Cash flow from financial activity (thousand yen)	(844,469)	1,718,610	(352,190)	(335,330)	(556,875)
Balance at the term-end of cash and cash equivalents (thousand yen)	1,259,502	2,952,029	2,629,154	2,267,655	2,709,036
Number of employees	836	861	761	752	755

Non Consolidated

	FY ended Mar. 31, 2011	FY ended Mar. 31, 2012	FY ended Mar. 31, 2013	FY ended Mar. 31, 2014	FY ended Mar. 31, 2015
Sales (thousand yen)	18,087,464	19,407,423	20,177,385	20,458,083	21,246,247
Income from ordinary business activities (thousand yen)	519,698	484,743	756,284	724,192	729,179
Net income (thousand yen)	418,559	621,408	483,098	491,234	584,986
Paid-in Capital (thousand yen)	1,036,000	1,036,000	1,036,000	1,036,000	1,036,000
Number of stock outstanding (thousand)	15,400	15,400	15,400	15,400	15,400
Net assets (thousand yen)	9,899,039	10,407,615	10,901,548	11,358,662	12,373,420
Total assets (thousand yen)	14,810,433	17,927,410	18,186,441	18,587,172	20,086,926
Book value per share (yen)	672.95	715.33	749.29	780.71	850.47
Dividend per share (yen)	8.00	8.00	8.00	9.00	9.00
EPS (yen)	27.90	42.42	33.20	33.76	40.20
Diluted EPS (yen)	-	-	-	-	-
Net asset ratio (%)	66.8	58.0	59.9	61.1	61.5
ROE (%)	4.24	6.12	4.53	4.41	4.92
PER	12.72	8.60	10.20	9.92	10.64
Payout ratio (%)	28.66	18.85	24.09	26.65	22.38
Number of employees	477	484	406	413	409