Kato Sangyo Co.,Ltd Company Profile 2012.11

Company Profile
2012.11
Kato Sangyo Co.,Ltd
President's Message
To gain the cooperate value by developing
community involvement and contribution.
The world is now in a period of major upheaval, and if past history is any
guide, companies that can't change during such periods don't survive. We are
again being called on to face new challenges, create new ways of working and
devise new ways of thinking.
Kato Sangyo was founded in 1945 as a beverage wholesaler, and established
in 1947 as a stock company. Since then we have faced a variety of obstacles
and continually grappled with new challenges.
Throughout our long history, our employees have been unified in their
adherence to a set of firmly held convictions: (1) to value our three client types
(partners, retailers and consumers), (2) to build our reputation and grow by
giving back to society, (3) to continually evolve by taking a proactive approach
to changes, and (4) to aspire to having the genuinely value in the market. All
our employees are dedicated to three basic concepts: Growth, Evolution and
Maximum Value. We will continue to provide supply chain management that
offers greater client satisfaction.
Kazuya Kato,
President
Company Slogan
[JOINT]
JOINT is the acronym we use to describe the activities we perform to continually
innovate wholesale functions for maximum consumer satisfaction. Our activities
bring manufacturers and retailers together into an effective organization that can
optimize distribution.
Just
Operation
Information
Network
Total support
Ensuring that quantities, times, locations and prices are matched 'just right'
to client needs.
Creating the cutting-edge distribution and IT systems that enable low-cost
operations.
Helping improve production and sales performance by using systems and
feedback to provide valuable information in an accurate and timely manner.
Creating a wide range of more advanced network functions to link production
and sales.
Providing total support for client business activities.
１
Consolidated Financial Statements/Earnings Highlights
Recent Earnings
FY 2010*
Sales
FY 2011
FY 2012
(billions of yen)
665
702
720
Operating profit (billions of yen)
9
10
11
Ordinary profit
(billions of yen)
9
11
12
Net profit
(billions of yen)
5
6
6
Total assets
(billions of yen)
205
218
243
Net assets
(billions of yen)
68
74
79
Equity ratio
(%)
32.87
33.65
32.18
Net profit per share
(yen)
134.44
168.23
178.80
Net assets per share
(yen)
1,807.55
1,964.02
2,090.45
ROA (%)
4.96
5.44
5.26
ROE (%)
7.67
8.92
8.82
*KS's fiscal year runs from October 1 of the previous year through September 30.
Sales breakdowns (FY 2012)
By product type
Other
(3.2%)
Perishables
(13.3%)
Condiments
(17.8%)
holesalers
(6.4%)
Other
(3.6%)
Luxuries
(10.9%)
Alcoholic
beverages
(8.0%)
700 665
600
702
720
(%)
6.0
Kansai
(39.5%)
5.65
400
Ordinary profit and
ordinary profit margin
(Billions of yen)
5.53
300
(%)
14.0
10.0
500
5.5
11.5
205
9.9
1.65
1.69
5.0
ROA and ROE
(%)
10.00
8.00
6.00
8.92 8.82
7.67
100
4.96
33.00
32.18
50
32.00
31.00
1.00
0
2010 2011 2012
Net profit per share and
net assets per share
(Yen)
2,000
33.65
32.87
1.50
0.0
2010 2011 2012
34.00
150
1.50
35.00
218
200
2.0
0
(%)
243
250
12.1
4.0
100
Total assets and
equity ratio
(Billions of yen)
2.00
8.0
6.0
200
Tokai
(7.7%)
Major regional supermarkets
(42.5%)
12.0
5.83
Kanto/Koshin-Etsu
(28.4%)
Independent
supermarkets/retailers
(5.2%)
Beverages
(18.7%)
(Billions of yen)
800
Tohoku/Hokkaido
(7.8%)
Chugoku/Shikoku
(8.6%)
Dried foods, cereals
(6.2%)
Sales volume and sales
management ratio
Overseas
Kyushu (0.0%)
(8.0%)
Major supermarkets
(30.5%)
Convenience stores
(11.8%)
Instant foods
(21.9%)
By region
By client category
1,807.55
1,964.02 2,090.45
300
30.00
2010 2011 2012
Dividend per share
(Yen)
50
44.00
5.44 5.26
1,500
40
168.23
1,000
4.00
178.80
134.44
0.00
33.50
30
100
0
2010 2011 2012
200
150
500
2.00
42.00
250
50
2010
2011
2012
２
20
2010
2011
2012
Logistics Functions
The Right Item, in the Right Amount, at the Right Time:
Food Distribution Made Possible By
KS's Advanced Distribution Technology
Distribution Systems That Deliver the Right Item at the Right Time (Logistics)
1. Small-lot high-frequency delivery
KS's advanced distribution systems make small-lot high-frequency
deliveries possible. These systems enable very narrowly targeted
deliveries–as little as one particular product to a particular store on
a particular date. So when consumers want the right product in the
right quantity at the right time, our advanced distribution functions
can meet their demands.
2. Advanced distribution systems
Our distribution centers feature advanced hi-tech distribution
systems designed to ensure that distribution operations are
efficient. They include automatic picking systems and scanning
inspection systems.
3. High-efficiency 'batch distribution' helps protect the
environment
We collect and deliver our products in batches together with
products of other wholesalers. This approach lowers costs by
streamlining retailer store operations, reducing retailer inventories
and creating similar benefits. And by decreasing the number of
delivery vehicles needed, it helps protect the environment and
reduce traffic congestion.
３
Retail Support
Retail Space Design That Incorporates
Current Trends and Shopper Needs to
Maximize Satisfaction
lDesigning Retail Spaces by Matching Sales Methods and Product Displays to
Shopper Needs (Retail Support)
Designing retail spaces
KS has devised methods of identifying the needs of store
visitors, which we use when working with retailers to create
optimum designs for retail spaces. We work to ensure that
store visitors have enjoyable shopping experiences and can
always find the products they want. We also create retail
spaces that anticipate shopper needs, showcasing products
they are likely to want even before they know they want them.
Creating retail spaces
To ensure each retail space functions as it was designed with
the retailer, KS takes care to prevent product delivery errors
and delays, and uses delivery formats that minimize the work
load required by the retailer. In supermarkets with high
shopper visit frequencies, retail spaces are changed weekly to
maintain a high level of shopper interest. We create and
execute retail space designs by examining consumer trends,
providing retail space support finely tuned to shopper needs.
４
Merchandising
Procuring Products from Around
the World to Meet the Needs
of Consumers and Retailers
lProcuring All the Products Consumers Want (Merchandising)
National brand products
National brand products are products designed and manufactured by food manufacturers. KS is a
general food trading company that purchases national brand products from more than 4,000
manufacturers, wholesaling them to retailers.
Private label brand products
To meet a wide range of consumer and retailer needs, KS also develops, manufactures and imports
products under our own private brands. Private label brand products are products designed by
retailers or wholesalers, and generally manufactured on an outsourced basis. We wholesale our
private label brand products to over 3,000 retailers. The more than 500 items in our private label
brand lineup are enjoyed by a large number of consumers. They include both domestic brands and a
erchandising
large number of imported foreign brands.
５
Overseas Business
lKS Enters China Market With Investments in Two Chinese Trading Companies
In July 2007, KS entered the Chinese wholesale market with an
investment in South China's largest wholesaler, Guangzhou Huaxin
Commercial Trading Co., Ltd. In December 2009, KS invested in
Shenzhen Huaxin Chuangzhan Commercial Trading, and sent
employees to both companies to improve operations and teach ways of
boosting wholesale functions. We are dedicated to helping improve the
Chinese consumer's diet by upgrading wholesale functions and services,
and making food distribution in China more efficient and advanced. To do
so, we will work on creating more advanced distribution and IT systems
for China's food distribution industry, provide retail support, and assist
the sales systems used for Japanese manufacturers' products.
lVietnam Office Opens to Conduct Local Market Surveys
In October 2011, KS established a representative office in Ho Chi Minh City. The office will conduct
surveys on the local market and potential business ventures.
CSR Activities
Adding CSR to the KS Group's Identity
Since our founding, the KS Group has always aimed to be a strong contender in the marketplace, but
as we march steadily into our next phase of growth, we are now adding CSR (corporate social
responsibility) to this corporate ethos. Committed to fulfilling the role of good corporate citizen and
food distributor, the Group is taking part in CSR activities such as environmental awareness and ISO
certification. Having stakeholders identify the KS name with CSR is an important goal for the Group.
ISO Certification
All 54 of the Group's Japanese business units have received ISO 14001 certification, and we are
taking steps to reduce environmental impact by continually improving our environmental
management system and using the PDCA (plan-do-check-act) cycle.
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Company Information
lOverview (as at September 30, 2012)
Name
Founded
Representative
Business areas
Business units
Capital
Number of employees
Kato Sangyo Co., Ltd.
August 22, 1947
Kazuya Kato, President and Representative Director
General food wholesaling; manufacture and sale of Kanpy products
11 branch offices, 26 sales offices
5,934,050,000 yen
984
lLocations
Headquarters
Tokyo Division
9-20 Matsubara-cho, Nishinomiya, Hyogo
1-2-28 Omorinaka, Ota-ku, Tokyo
81-798-33-7650
81-3-6404-3080
Hokkaido Office
Tohoku Office
Higashi-Kanto (East Kanto) Office
Kita-Kanto (North Kanto) Office
Minami-Kanto (South Kanto) Office
Chubu Office
Kita-Kinki (North Kinki) Office
Minami-Kinki (South Kinki) Office
Nishi-Kinki (West Kinki) Office
Chushikoku (Chugoku and Shikoku) Office
Kyushu Office
52-8 Kitanosato, Kitahiroshima, Hokkaido
3-4-37 Ogimachi, Miyagino-ku, Sendai, Miyagi
10-8 Hozuka-cho, Adachi-ku, Tokyo
3-8-5 Imai, Ome, Tokyo
1-2-28 Omorinaka, Ota-ku, Tokyo
25-2 Aza Minami Guminoki, Meichi, Ichinomiya, Aichi
4-24-6 Tsuruno, Settsu, Osaka
2-1-49 Shibatani, Suminoe-ku, Osaka-shi, Osaka
2-29-1 Naruohama, Nishinomiya, Hyogo
5-5-10 Shoko Center, Nishi-ku, Hiroshima-shi, Hiroshima
4-4-20 Katakasu, Hakata-ku, Fukuoka-shi, Fukuoka
81-11-372-5921
81-22-284-7135
81-3-3883-5107
81-428-32-5110
81-3-6404-3050
81-586-69-1000
81-72-636-1128
81-6-6105-4733
81-798-43-1274
81-82-277-7078
81-92-441-0520
Dried Foods Division
Kamigori Factory
1-3-1 Nishinomiyahama, Nishinomiya, Hyogo
328-6 Kashiwano, Kamigori-cho, Ako-gun, Hyogo
81-798-33-3581
81-791-52-0520
lHistory
October
August
June
July
November
April
September
September
July
1945
1947
1990
1997
1997
2004
2004
2006
2007
August
December
2007
2009
April
October
2011
2011
Founded as drinking water wholesaler.
Established as Kato Sangyo Co., Ltd.
Listed on the Second Section of the Osaka Stock Exchange.
Listed on the Second Section of the Tokyo Stock Exchange.
Adopts KALS distribution system.
Kamigori Factory receives ISO 9001 and HACCP certification.
Moved to First Sections of the Tokyo and Osaka Stock Exchanges.
All locations receive ISO 14001 certification.
Enters China's food wholesale market
(with investment in Guangzhou Huaxin Commercial Trading Co., Ltd.).
Celebrates 60th anniversary of founding.
Invests in Shenzhen Huaxin Chuangzhan Commercial Trading Co., Ltd.
(in Shenzhen, China).
Establishes Overseas Business Division.
Establishes Vietnam representative office (in Ho Chi Minh City).
７