Owari Precise Products Co., Ltd. Business Report FY ended Mar. 2015

Financial Overview

(in millions of JPY)
FY ended Mar. 31, 2015 FY ended Mar. 31, 2014 Rate of change
(%)
Factors
Sales 15,734 15,372 2.4 1)
Operating income 521 841 (38.1) -
Ordinary income 792 1,091 (27.4) -
Net income 629 852 (26.2) -


Factors
1) Sales
-As a result of unit-production decreasing in Japan, sales in Japan fell; however, sales for the year increased due to higher sales of products at subsidiaries outside Japan.

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 17,200 15,734 9.3
Operating income 810 521 55.4
Ordinary income 830 792 4.8
Net income 670 629 6.4

R&D Expenses

(in thousands JPY)
FY ended Mar. 31, 2015 FY ended Mar. 31, 2014 FY ended Mar. 31, 2013
Overall N.A. 3,522 3,852

R&D Activities

Japan
-In the screw business, the Company is developing plastic tapping screws, screws that can’t be screwed in at an angle, etc.
-In the precision forged products business, the Company is developing its own R&D activities, finding its own ways to respond to the hollowing-out of production in Japan caused by the general migration of production from Japan to locations outside the country. The Company is developing synchronizer rings, carbon rings, and low-priced materials so as to be able to maintain demand in Japan.

Technology Licensed-in Agreement

(As of Mar. 31, 2015)
Company Country Products under agreement Details of agreement Contract period
Acument Global Technologies, Inc. Netherlands Torx 1. Establishing the usage rights to trademark rights.
2. Consenting to both manufacturing and sales rights
3. Providing technical information
From Apr. 23, 2014
to Apr. 22, 2017
Torx Plus From Jan. 1, 2012
to Dec. 31, 2015
Strux From Jun. 20, 2013
to Jun. 19, 2016
Ejot GmbH & Co. KG, Industrial
Fastener Division
Germany PT screws 1. Establishing the usage rights to trademark rights.
2. Consenting to both manufacturing and sales rights
3. Providing technical information
From Jun. 21, 2004
to Jul. 27, 2018
Delta PT screws
ITW Automotive C&F Japan Japan Locks 1. Establishing the usage rights to trademark rights.
2. Consenting to both manufacturing and sales rights
3. Providing technical information
From Jun. 15, 2014
to Jun. 14, 2015
MAThread, Inc. USA MATheard 1. Establishing the usage rights to trademark rights.
2. Consenting to both manufacturing and sales rights
3. Providing technical information
From Oct. 30, 2009
to Oct. 29, 2024
MATpoint
Magni Japan, Inc. Japan High corrosion-resistant coating agent for metal fittings 1. Establishing the usage rights to trademark rights.
2. Consenting to both manufacturing and sales rights
3. Providing technical information
From Dec. 1, 2012
to Nov. 30, 2015

Technology Licensed-out Agreement

(As of Mar. 31, 2015)
Company Country Products under agreement Details of agreement Contract period
Hexas Precision (Jiaxing) Co., Ltd. China Bolts Technical assistance regarding production, application and sales From Sep. 1, 2014
to Aug. 31, 2017

Capital Expenditure

(in millions of JPY)
FY ended Mar. 31, 2015 FY ended Mar. 31, 2014 FY ended Mar. 31, 2013
Overall 1,119 1,220 1,309
-Land 234 - -
-Buildings and structures - N.A. 587
-Machinery 669 656 552


-The Company invested to revamp its production lines, improve productivity, and maintain and renew facilities.


-The Company invested JPY 234 million in land on which it is relocating a production plant.
-The Company invested JPY 407 million to install machinery in order to not only increase the productivity of its production facilities but also maintain and upgrade them.


-The Company invested 169 million yen in machinery in order to manufactures products based on new orders.


-The Company invested 86 million yen in machinery in order to manufactures products based on new orders.

Data

 Segment Mar. 2015 Mar. 2014 Mar. 2013
Japan 368 351 354
USA 21 24 24
India 76 61 58
Thailand 97 87 91
Total 562 523 527

Sales by Segment

(in millions of JPY)
FY ended Mar. 31, 2015 FY ended Mar. 31, 2014 FY ended Mar. 31, 2013
Sales Ordinary income Sales Ordinary income Sales Ordinary income
Japan 11,894 425 12,120 730 12,265 803
USA 1,133 27 948 (4) 685 5
India 474 42 437 118 230 8
Thailand 2,231 344 1,866 276 1,530 161
Adjusted amounts - (48) - (30) - (4)
Total 15,734 792 15,372 1,091 14,712 975

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) 14,742,327 14,132,032 14,712,952 15,372,675 15,734,623
Income from ordinary business activities (thousand yen) 783,009 688,589 975,967 1,091,499 792,036
Net income (thousand yen) 257,178 329,175 568,919 852,876 629,539
Comprehensive income (thousand yen) 134,579 264,000 718,831 1,035,821 1,211,243
Net assets (thousand yen) 8,493,750 8,687,372 9,336,042 10,350,914 11,482,802
Total assets (thousand yen) 14,161,013 15,662,406 15,824,273 15,932,924 16,526,215
Book value per share (yen) 745.37 761.24 817.16 888.70 983.63
EPS (yen) 22.56 28.90 49.97 74.06 54.41
Diluted EDS (yen) - - - - -
Net asset ratio (%) 60.0 55.4 58.8 64.6 68.8
ROE (%) 3.0 3.8 6.3 8.7 5.8
PER 9.4 8.3 4.9 4.1 6.5
Cash flow from operating activity (thousand yen) 1,638,110 570,779 1,262,420 1,006,356 1,105,292
Cash flow from investment activity (thousand yen) (116,418) (4,156,106) 2,428,443 (847,952) (1,393,624)
Cash flow from financial activity (thousand yen) (824,676) 1,193,757 (935,179) (867,707) (618,709)
Balance at the term-end of cash and cash equivalents (thousand yen) 3,747,575 1,288,770 4,228,832 3,691,365 2,947,670
Number of employees 486 497 527 523 562

 

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) 13,263,023 12,742,708 12,617,675 12,399,989 12,170,720
Income from ordinary business activities (thousand yen) 464,650 440,971 693,399 582,952 322,224
Net income (thousand yen) 135,534 162,029 352,222 429,493 248,019
Paid-in Capital (thousand yen) 1,093,978 1,093,978 1,093,978 1,093,978 1,093,978
Number of stock outstanding 11,659,500 11,659,500 11,659,500 11,659,500 11,659,500
Net assets (thousand yen) 7,304,494 7,412,013 7,771,107 8,233,877 8,593,433
Total assets (thousand yen) 12,769,135 14,289,664 13,883,607 13,490,014 13,275,301
Book value per share (yen) 641.04 650.76 682.79 711.48 743.04
Dividend per share (yen) 6.00 6.00 6.00 6.00 6.00
EPS (yen) 11.89 14.22 30.94 37.30 21.44
Diluted EPS (yen) - - - - -
Net asset ratio (%) 57.2 51.9 56.0 61.0 64.7
ROE (%) 1.9 2.2 4.6 5.4 2.9
PER 17.8 16.9 8.0 8.1 16.4
Payout ratio (%) 50.5 42.2 19.4 16.1 28.0
Number of employees 309 306 295 288 302