blanchester mazda

1
SHOWA Philosophy
2
Message from the President
3
Review of Operations
6
Consolidated Financial Statement
11
Topics
13
SHOWA’s Global Network
15
Showa’s Technology
17
Outlook of Consolidated Business Performance
SHOWA CORPORATION
SHOWA CORPORATION
SHOWA Philosophy
Corporate Culture
Our Corporate Principle
Code of Conduct
Our Fundamental Beliefs
− Our Fundamental Beliefs −
Respect for the individuals
Trust/Fairness/Independence
− Our Corporate Principle −
With the aim of becoming a global company
trusted by customers worldwide, we are
committed to making continuous innovations
to provide superior products of the best
technology and the highest quality to meet
users’ needs.
− Code of Conduct −
1.Let actions be driven by ideals and visions
2.Value time and ideas, and approach problems based
on fundamentals and principles
3.Place value on communications and understand the
situation of others
4.Maintain operational transparency and soundness
5.Always be aware of environmental preservation,
and make contributions to the community and society
1
ANNUAL REPORT 2012
SHOWA CORPORATION
Message from the President
We would like to express our gratitude for your continued support
over the year.
We are pleased to present the summary of consolidated result of the
104th fiscal year (From 1st April 2011 to 31st March 2012).
The net sales for the current term decreased compare to previous
term. The reason is that despite the fact that the sales of motorcycle
components increased mostly in Asia, the sales of automotive
components decreased due to our customer production adjustment
caused by the impact of the Tohoku earth quake and the Thailand
floods. Also for the profit, although there was an improvement effect
Yoichi Hojo
President
by the enhancement of production setup as well as thorough cost-cut,
there was fluctuation in sales, changes in structure and increase in
labor cost. Therefore both operating and ordinary income decreased
compared to the previous term. Compare to the previous term, the net
income increased because of the extraordinary income such as a gain
on sale of investment securities in addition to the decrease in
extraordinary loss caused by the disaster which was recorded for the
previous term.
The basic concept of our policy regarding profit allocation is the return
profit which takes business performance and achievement into
consideration. In reference to the final dividend, we have taken the
future business development and business performance on a
consolidated basis into consideration comprehensively from the
long-term perspective. And 10 yen per share is decided hoping that
we respond to your support. As a result, current dividend per share is
10 yen.
Furthermore predicted dividends for next term (from 1st April 2012 to
31st March 2013) are 11 yen per share for both interim and year-end
dividends, and the annual dividend per share will be 22 yen.
Our hope is that our shareholders will continue in their enduring
support in the years to come.
July 2012
2
ANNUAL REPORT 2012
SHOWA CORPORATION
Review of Operations
Segment results (2012)
In terms of business environment surrounding our group, the economic recovery remained weak worldwide. For motor vehicle
industries, production and sales exceeded previous year despite the impact of the disaster and the Thailand floods. Under such
circumstances, the sales for motorcycle components for our group increased compared to the previous term and achieved revenue
growth, due to the fact that it was driven by strong market mostly in Asia. Another reason is that we acquired ownership of the joint
venture company in Vietnam. However for automotive components, the sales and profit both decreased. It is because the our
customers adjusted the production due to the impact of the disaster and the Thailand floods.
Resuts(Consolidated)
Operating profit
Net sales
JPY 7,507 mil.
JPY 215,889 mil.
(Compared with the previous fiscal year : 15.6% decrease)
(Compared with the previous fiscal year : 7.5% decrease)
Current profit
Current term net profit
JPY 2,549 mil.
JPY 7,330 mil.
(Previous fiscal year : JPY 122mil.)
(Compared with the previous fiscal year : 9.1% decrease)
* MACHINO AUTO-PARTS CO., LTD.( present: SHOWA AUTO-PARTS VIETNAM CO., LTD.)
Prospect for the next term (2013)
For business development of our group, we implemented “opereations organization” and newly organized four divisions; “Motorcycle
and Hydraulic components Operations”, “Automotive components Operations”, “Steering Systems Operations” and “Gas Spring
Operations”.
We will be improving the competitiveness in the global market which is expected to escalate in the future by giving necessary authority
and responsibility to operate the business to business divisions. This leads each division to make a swift progress globally and to
make maximum use of the specialty of functional organization.
Prospects(Consolidated)
Operating profit
Net sales
JPY 243,000 mil.
JPY 12,500 mil.
(Compared with the previouss fiscal year : 12.6% increase)
(Compared with the previouss fiscal year : 66.5% increase)
Current profit
Current term net profit
JPY 13,500 mil.
JPY 7,000 mil.
(Compared with the previouss fiscal year : 84.2% increase)
(Compared with the previouss fiscal year : 174.6% increase)
3
ANNUAL REPORT 2012
SHOWA CORPORATION
Review of Operations
Financial Performance Highlights
Sales
Operating profit
Non-consolidated
(Unit：Million Yen)
300,000
271,510
207,657
200,000
135,421
100,000
Non-consolidated
(Unit：Million Yen)
10,000
250,000
150,000
Consolidated
233,381
215,889
8,895
2,409
114,997
104,972
107,165
0
5,001
4,058
2,370
March 2009
March 2010
March 2011
5,000
March 2012
Current net income
March 2009
March 2010
7,000
Consolidated
4,883
122
11,195 11,609
100
0
March 2011
200
March 2012
Net asset
112.47 113.11
Non-consolidated
87,228
March 2010
59,605
52,058
Consolidated
(Unit：Yen)
March 2011
Non-consolidated
1,200
85,054
80,000
82,753
50,469
984.38
81,010
900
54,359
784.61
929.52
685.27
600
40,000
TMarch 2012
Consolidated
892.75
664.36
884.61
715.56
300
20,000
0
March 2009
Net asset per share
(Unit：Million Yen)
60,000
33.57
16.89
100
March 2010
Consolidated
1.62
147.37 152.82
8,544 8,593
100,000
March 2012
64.28
2,549
7,000
March 2009
March 2011
Non-consolidated
(Unit：Yen)
1,283
14,000
428
833
Net income per share
Non-consolidated
(Unit：Million Yen)
0
7,507
5,000
50,000
0
Consolidated
March 2009
March 2010
March 2011
0
March 2012
4
March 2009
March 2010
March 2011
March 2012
ANNUAL REPORT 2012
SHOWA CORPORATION
Review of Operations
Segment results
Japan
Sales
Operating Profit
JPY 117,165 mil.
(Compared with the previous fiscal year : 6.5% decrease)
125,258
North America
Sales
117,165 (Unit：Million Yen)
JPY 472 mil.
JPY 41,110 mil.
(The previous fiscal year profit: JPY 28 mil.)
(Unit：Million Yen)
Operating Profit
(Compared with the previous fiscal year : 21.9% decrease)
52,627
472
JPY 845 mil. Operating deficit
(The previous fiscal year defisit:
JPY 101 mil. )
41,110
△101
28
Previous tems
Previous tems
This tem
This tem
Previous tems
The sales and profits of our automotive components decreased mainly to reduction
of production by our customers due to impact of the Tohoku earthquake. Operation
profit increased due to reduction of production reconstruction costs and
improvement in costs.
South America
Sales
(Compared with the previous fiscal year : 1.6% decrease)
21,229
Previous tems
20,883
Asia
Sales
JPY 875 mil .
(Compared with the previous fiscal year: 9.4% increase)
41,359
(Unit：Million Yen)
1,123
Previous tems
(Compared with the previous fiscal year : 8.2% decrease)
24,370
22,382
This tem
Other
Sales
JPY 1,295 mil.
(Compared with the previous fiscal year : 49.7% decrease)
This tem
Previous tems This tem
JPY 371 mil. Operating deficit
(The previous quarte fiscal year :
JPY 347 mil. )
7,717
(Unit：Million Yen)
2,173
1,295
Previous tems
6,297
Operating Profit
JPY 3,885 mil.
(Compared with the previous fiscal year :
40.4% decrease)
(Unit：Million Yen)
(Compared with the previous fiscal year :
2.0% increase)
Sales of automotive components declined in Thailand and India owing to the impact
of the disaster and floods, reduction in power steering business respectively. Sales
of motorcycle components increased in Indonesia and Thailand. It also increased by
acquiring ownership of joint company in Vietnam and the same applies to the
revenue and operating profit.
Operating Profit
JPY 22,382 mil.
JPY 6,297 mil.
6,173
In Brazil, in spite of the fact that and sales of motorcycle components improved, it
declined sales of automotive components. As for the operating profit, it was
reduced because of the decrease in sales and the impact of exchange conversion.
China
Sales
45,256
875
Previous tems This tem
This tem
This tem
Operating Profit
JPY 45,256 mil.
(Compared with the previous fiscal year :
22.1% decrease)
(Unit：Million Yen)
△845
Previous tems
In the US, sales of motorcycle components increased. However sales of automotive
components decreased by the reason of the impact of the disaster and Thailand
floods. The sales and profit of parts for four-wheeled vehicle decreased in Canada.
And the operating profit fell because of the decrease in sales.
Operating Profit
JPY 20,883 mil.
This tem
3,885
Previous tems This tem
△347
Previous tems
Because of the fall in sales of our customer, and sales of automotive components
reduced. As for the operating profit, it also declined caused by the decrease in sales
and steep rise in row material cost.
This tem
△371
Previous tems This tem
Segment sales (for external customers)
Total Sales JPY 215,889 mil.
Japan
JPY 86,669 mil.40.1%
North America
JPY 40,570 mil.18.8%
South America
JPY 20,883 mil.9.7%
Asia
JPY 44,799 mil.20.8%
5
China
JPY 19,080 mil.8.8%
Other
JPY 3,885 mil.
1.8%
ANNUAL REPORT 2012
Following consolidated financical statements have been compiled from the consolidated financial statements
prepared by the Company as required under the Financial Instruments and Exchange Law of Japan and, therefore
have been prepared in conformity with accounting principles generally accepted in Japan, which are different in
certain respects as to the application and disclosure requirements of International Financial Reporting Standards.
The translation of yen amounts into U.S. dollar amounts is included solely for the convenience and has been made,
as a matter of arithmetic computation only, at the rate of ¥82.19 = U.S.$1.00, the exchange rate prevailing at 31st
March, 2012.The translation should not be construed as a representation that yen amounts have been, could have
been, or could in the future be, converted into U.S. dollars at the above or any other rate.
Consolidated Financial Statement
Consolidated Balance Sheet (Unaudited)
31st March 2011 and 2012
Assets
Current assets
........................................................................................................................................................................................
Cash and deposits
Notes and accounts receivable-trade
Marketable securities
Merchandise and finished goods
Work in process
Raw materials and supplies
Deferred tax assets
Other
Allowance for doubtful accounts
Property, plant and equipment
Buildings, net
Machinery, equipment and vehicles, net
Tools, furniture and fixtures, net
Land
Lease assets, net
Construction in progress
Total property, plant and equipment
Intangible assets
........................................................................................................................................................................................
Goodwill
Other
Millions of yen
Thousands of U.S. dollars
2011
2012
2012
................................................... ................................................... ...................................................
20,402
28,026
−
4,638
3,416
14,759
485
8,568
(97)
Total current assets
Noncurrent assets
........................................................................................................................................................................................
Millions of yen
80,200
17,289
32,382
3,800
5,697
3,202
15,725
387
6,245
(172)
84,559
210,354
393,990
46,234
69,315
38,959
191,325
4,709
75,982
(2,093)
1,028,823
................................................... ................................................... ...................................................
17,386
30,421
1,653
10,466
958
3,013
63,899
16,392
26,807
1,429
10,208
781
1,793
199,440
326,159
17,387
124,200
9,502
21,815
57,411
698,516
................................................... ................................................... ...................................................
633
98
Total Intagible assets
Investments and other assets
Investment securities
Long-term loans receivable
Deferred tax assets
Other
Allowance for doubtful accounts
Total investments and other assets
Total noncurrent assets
732
1,763
10,581
200
261
2,480
(16)
13,508
8,142
200
296
3,183
(17)
11,805
78,140
158,340
Total assets
1,660
102
70,981
155,540
20,197
1,241
21,450
99,063
2,433
3,601
38,727
(207)
143,631
863,621
1,892,444
Liabilities
Current liabilities
........................................................................................................................................................................................
Notes and accounts payable-trade
Short-term loans payable
Accounts payable-other and accrued expenses
Lease obligations
Income taxes payable
Provision for product warranties
Provision for bonuses
Provision for loss on liquidation of subsidiaries and affiliates
Other
................................................... ................................................... ...................................................
25,077
16,158
7,130
124
1,001
1,244
2,701
28
2,602
Total current liabilities
Noncurrent liabilities
........................................................................................................................................................................................
Long-term loans payable
Lease obligations
Deferred tax liabilities
Provision for product warranties
Provision for retirement benefits
Provision for directors' retirement benefits
Other
56,069
8,851
866
2,943
1,034
5,261
354
206
19,517
75,586
Total noncurrent liabilities
Net assets
Shareholders' equity
Capital stock
Capital surplus
Retained earnings
Treasury stock
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustment
646,502
10,812
719
2,075
1,124
5,985
339
338
21,393
74,529
131,549
8,748
25,246
13,676
72,819
4,125
4,112
260,287
906,789
................................................... ................................................... ...................................................
12,698
13,455
49,906
(53)
Total shareholders' equity
Valuation and translation adjustments
........................................................................................................................................................................................
53,136
327,923
135,114
79,839
1,387
15,391
18,713
32,425
−
35,661
................................................... ................................................... ...................................................
Total liabilities
........................................................................................................................................................................................
26,952
11,105
6,562
114
1,265
1,538
2,665
−
2,931
76,008
12,698
13,455
52,440
(53)
78,542
154,496
163,706
638,034
(645)
955,615
................................................... ................................................... ...................................................
4,176
−
(12,364)
(8,187)
14,933
82,753
158,340
Valuation and translation adjustments
Minority interests
Total net assets
Total liabilities and net assets
6
3,174
−
(14,515)
(11,340)
13,808
81,010
155,540
38,618
−
(176,603)
(137,973)
168,001
985,643
1,892,444
ANNUAL REPORT 2012
Consolidated Financial Statement
Consolidated Statements of Cash Flows (Unaudited)
Year ended 31st March 2011 and 2012
Net cash provided by (used in) operating activities
........................................................................................................................................................................................
Income (loss) before income taxes
Depreciation and amortization
Impairment loss
Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in provision for product warranties
Increase (decrease) in provision for retirement benefits
Increase (decrease) in provision for loss on liquidation of subsidiaries and affiliates
Interest and dividends income
Interest expenses
Foreign exchange losses (gains)
Equity in (earnings) losses of affiliates
Subsidy Income
Loss (gain) on sales and retirement of property, plant and equipment
Decrease (increase) in notes and accounts receivable-trade
Decrease (increase) in inventories
Increase (decrease) in notes and accounts payable-trade
Loss (gain) on sales of investment securities
Loss on adjustment for changes of accounting standard for asset retirement obligations
Loss on disaster
Other, net
Subtotal
Interest and dividends income received
Interest expenses paid
Proceeds from subsidy
Income taxes paid
Income taxes refund
Net cash provided by (used in) investing activities
Payments into time deposits
Proceeds from withdrawal of time deposits
Purchase of property, plant and equipment
Proceeds from sales of property, plant and equipment
Purchase of investment securities
Proceeds from sales of investment securities
Collection of loans receivable
Payments for short term investment
Proceeds from short term investment
Purchase of investments in capital of subsidiaries
Other, net
Net cash provided by (used in) financing activities
Net increase (decrease) in short-term loans payable
Proceeds from long-term loans payable
Payments from long-term loans payable
Proceeds from sade and leaseback
Cash dividends paid
Cash dividends paid to minority shade holders
Other, net
Thousands of U.S. dollars
2012
2012
6,866
10,120
111
(43)
212
632
(2,748)
(879)
769
194
(281)
(426)
582
3,758
1,033
(1,887)
−
68
354
(342)
18,097
851
(777)
432
(3,424)
1,377
8,996
9,777
409
8
289
734
(3)
(942)
725
(71)
(437)
(417)
15
(4,451)
(2,422)
2,537
(1,963)
−
−
(296)
12,490
1,012
(760)
300
(3,786)
462
109,454
118,956
4,976
97
3,516
8,931
(37)
(11,461)
8,821
(864)
(5,317)
(5,074)
183
(54,155)
(29,468)
30,868
(23,884)
−
−
(3,601)
151,965
12,313
(9,247)
3,650
(46,064)
5,621
16,557
9,720
118,263
................................................... ................................................... ...................................................
Net cash provided by (used in) investing activities
........................................................................................................................................................................................
Millions of yen
2011
................................................... ................................................... ...................................................
Net cash provided by (used in) operating activities
........................................................................................................................................................................................
Millions of yen
(2,208)
2,407
(7,634)
174
(109)
−
−
(8,920)
6,140
−
(190)
(1,632)
3,241
(5,341)
119
(5)
2,223
8
(1,000)
3,392
(1,605)
(117)
(19,856)
39,433
(64,984)
1,448
(61)
27,047
97
(12,167)
41,270
(19,528)
(1,424)
(10,340)
(717)
(8,724)
................................................... ................................................... ...................................................
(2,855)
3,234
(6,167)
1,006
(1)
(1,693)
(96)
307
6,698
(5,083)
−
(0)
(3,669)
(123)
3,735
81,494
(61,845)
−
(0)
(44,640)
(1,497)
(6,572)
(1,870)
(22,752)
Effect of exchange rate change on cash and cash equivalents
752
639
7,775
Net increase (decrease) in cash and cash equivalents
396
7,772
94,561
Cash and Cash Equivalents at Beginning of Year
12,449
12,846
156,296
Cash and Cash Equivalents at End of Year
12,846
20,618
250,858
Net cash provided by (used in) financing activities
7
ANNUAL REPORT 2012
Consolidated Financial Statement
Consolidated Statement of Changes in Net Assets (Unaudited)
Year ended 31st March 2011 and 2012
Overview of Cash Flow
The balance of cash and cash equivalents at the end of the fiscal
(Net cash provided by (used in) financial activities)
(Net cash provided by (used in) operating activities)
on year, mainly due to an increase in net increase (decrease) in
year, mainly due to an increase in trade receivables and
payable.
Cash used for financial activities decreased ¥4,701 million year
year totaled ¥20,618 million, up ¥7,772 million year on year.
short-term loans payable and proceeds from long-term loans
Cash earned from operation decreased ¥6,836 million year on
inventories, though there was an increase in income before
income taxes.
(Net cash provided by (used in) investing activities)
Cash used for investment activities decreased ¥9,623 million year
on year, mainly due to a decrease in fund management due to
short-term investments, proceeds from sales of investment
securities and a decrease in purchase of property, plant and
equipment.
Shareholders' equity
Capital stock
........................................................................................................................................................................................
Balance at the end of previous period
Changes of items during the period
Total changes of items during the period
Capital surplus
Balance at the end of previous period
Changes of items during the period
Total changes of items during the period
Retained earnings
Balance at the end of previous period
Changes of items during the period
Net income
Change of scope consolidation
Total changes of items during the period
Treasury stock
Balance at the end of previous period
Changes of items during the period
Purchase of treasury stock
Total changes of items during the period
Total shareholders' equity
Balance at the end of current period
Changes of items during the period
Net income
Purchase of treasury stock
Change of scope consolidation
Total changes of items during the period
12,698
12,698
154,496
−
−
−
12,698
12,698
154,496
−
13,455
13,455
−
13,455
163,706
163,706
................................................... ................................................... ...................................................
49,784
49,906
607,203
122
−
122
2,549
(15)
2,534
31,014
(183)
30,831
49,906
52,440
638,034
................................................... ................................................... ...................................................
Balance at the end of previous period
........................................................................................................................................................................................
2012
13,455
Balance at the end of current period
........................................................................................................................................................................................
Thousands of U.S. dollars
2012
................................................... ................................................... ...................................................
Balance at the end of current period
........................................................................................................................................................................................
Millions of yen
2011
................................................... ................................................... ...................................................
Balance at the end of current period
........................................................................................................................................................................................
Millions of yen
(52)
(53)
(645)
(0)
(0)
(0)
(0)
(0)
(0)
(53)
(53)
(645)
................................................... ................................................... ...................................................
Balance at the end of current period
8
75,885
76,008
924,784
122
(0)
−
122
2,549
(0)
(15)
2,534
31,014
(0)
(183)
30,831
76,008
78,542
955,615
ANNUAL REPORT 2012
Consolidated Financial Statement
Consolidated Statement of Changes in Net Assets (Unaudited)
Year ended 31st March 2011 and 2012
Valuation and translation adjustments
Valuation difference on available-for-sale securities
........................................................................................................................................................................................
Balance at the end of previous period
Changes of items during the period
Net changes of items other than shareholders' equity
Total changes of items during the period
Deferred gains or losses on hedges
Balance at the end of previous period
Changes of items during the period
Net changes of items other than shareholders' equity
Total changes of items during the period
Foreign currency translation adjustment
Balance at the end of previous period
Changes of items during the period
Net changes of items other than shareholders' equity
Total changes of items during the period
Total valuation and translation adjustments
Balance at the end of previous period
Changes of items during the period
Net changes of items other than shareholders' equity
Total changes of items during the period
Minority interests
Balance at the end of previous period
Changes of items during the period
Net changes of items other than shareholders' equity
Total changes of items during the period
Total net assets
Balance at the end of previous period
Changes of items during the period
Net income
Purchase of treasury stock
Change of scope consolidation
Net changes of items other than shareholders' equity
Total changes of items during the period
4,176
50,809
(318)
(318)
(1,001)
(1,001)
(12,179)
(12,179)
4,176
3,174
38,618
(16)
−
−
16
16
−
−
−
−
−
−
−
(9,750)
(12,364)
(150,432)
(2,614)
(2,614)
(2,150)
(2,150)
(26,159)
(26,159)
(12,364)
(14,515)
(176,603)
(5,272)
(8,187)
(99,611)
(2,915)
(2,915)
(3,152)
(3,152)
(38,350)
(38,350)
(8,187)
(11,340)
(137,973)
................................................... ................................................... ...................................................
Balance at the end of current period
........................................................................................................................................................................................
4,494
................................................... ................................................... ...................................................
Balance at the end of current period
........................................................................................................................................................................................
2012
................................................... ................................................... ...................................................
Balance at the end of current period
........................................................................................................................................................................................
Thousands of U.S. dollars
2012
................................................... ................................................... ...................................................
Balance at the end of current period
........................................................................................................................................................................................
Millions of yen
2011
................................................... ................................................... ...................................................
Balance at the end of current period
........................................................................................................................................................................................
Millions of yen
14,440
14,933
181,689
492
492
(1,124)
(1,124)
(13,676)
(13,676)
14,933
13,808
168,001
................................................... ................................................... ...................................................
Balance at the end of current period
9
85,054
82,753
1,006,850
122
(0)
−
(2,423)
(2,300)
2,549
(0)
(15)
(4,277)
(1,743)
31,014
(0)
(183)
(52,038)
(21,207)
82,753
81,010
985,643
ANNUAL REPORT 2012
Consolidated Financial Statement
Consolidated Statements of Income (Unaudited)
Year ended 31st March 2011 and 2012
Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income
Non-operating income
........................................................................................................................................................................................
Interest income
Dividend income
Equity in earnings of affiliates
Subsidy Income
Other
Total non-operating income
Non-operating expenses
........................................................................................................................................................................................
Interest expense
Foreign exchange losses
Others
Total non-operating expenses
Ordinary income
Extraordinary income
........................................................................................................................................................................................
Gain on sales of noncurrent assets
Gain on step acquisitions
Gain on sales of investment securities
Reversal of provision for loss on liquidation of subsidiaries and affiliates
Total extraordinary income
Extraordinary loss
........................................................................................................................................................................................
Loss on sales of noncurrent assets
Loss on abandonment of noncurrent assets
Impairment loss
Provision for product warranties
Loss on disaster
Loss on adjustment for changes of accounting standard for asset retirement obligations
Total extraordinary loss
Millions of yen
Millions of yen
Thousands of U.S. dollars
2011
2012
2012
233,381
202,655
30,726
21,831
8,895
215,889
186,587
29,301
21,794
7,507
................................................... ...................................................
530
349
281
426
464
2,051
789
153
437
417
310
2,107
................................................... ...................................................
769
1,733
380
2,884
8,062
725
1,378
180
2,284
7,330
................................................... ...................................................
59
−
−
70
130
66
128
1,963
−
2,157
................................................... ...................................................
112
530
111
148
354
68
1,325
Income before income taxes
Income taxes-current
Income taxes-deferred
Total income taxes
Income before minority interests
6,866
3,505
118
3,624
3,242
3,119
122
Minority interests in income
Net income
6
75
409
−
−
−
491
8,996
3,695
32
3,728
5,268
2,718
2,549
2,626,706
2,270,191
356,503
265,166
91,337
...................................................
9,600
1,862
5,317
5,074
3,772
25,636
...................................................
8,821
16,766
2,190
27,789
89,184
...................................................
803
1,557
23,884
−
26,244
...................................................
73
913
4,976
−
−
−
5,974
109,454
44,957
389
45,358
64,095
33,070
31,014
Overview of Assets, Liabilities and Net Assets
Consolidated total assets at the end of the fiscal year totaled
¥15,540 million, down ¥2,799 million year on year.
(Current assets)
Current assets at the end of the fiscal year increased ¥4,359
million year on year, mainly due to an increase in notes and
accounts receivable-trade.
(Noncurrent assets)
Noncurrent assets at the end of the fiscal year decreased
¥7,158 million year on year, mainly due to a decrease in
Property, Plant and Equipment and investment securities.
(Current liabilities)
Current liabilities at the end of the fiscal year decreased
¥2,932 million year on year, mainly due to a decrease in
short-term loans payable.
(Noncurrent liabilities)
Noncurrent liabilities at the end of the fiscal year increased
¥1,875 million, mainly due to an increase in long-term loans
payable.
(Net assets)
Net assets at the end of the fiscal year decreased ¥1,743
million year on year, mainly due to a decrease in valuation
difference on available-for-sale securities, foreign currency
translation adjustment, and minority interests.
10
ANNUAL REPORT 2012
SHOWA CORPORATION
Topics
Showaʼs product adopted for“Mira e;S”
China
Our shock absorbers (Damper Comps*) was adopted for the newly released mini vehicle
CHENGDU NINGJIANG
SHOWA AUTOPARTS CO.,LTD.
“Mira e;S” by Daihatsu Motor Co., Ltd. in September 2011.
This product is produced in CHENGDU NINGJIANG SHOWA AUTOPARTS CO., LTD. (china)
and is supplied directly to Daihatsu Motor Kyushu Co., Ltd.
This became the first global procurement for Damper Comp,
supplying the products produced in overseas base directly to
the final vehicle assembles.
Daihatsu Motor Kyushu
Co., Ltd.
*Damper COMP is shock absorber that does not include exterior parts such as Spring, etc.
SHOWA AUTO-PARTS VIETNAM CO.,LTD.
Our subsidiary company in Vietnam, MACHINO AUTO-PARTS CO., LTD. has changed
its company name to SHOWA AUTO-PARTS VIETNAM CO., LTD. In the future, we aim
toward further development in the growing motorcycle market in Asia.
Sales Expansion and Newly Adapted Product
With regards to automotive components , shock absorbers (SA hereafter), propeller shaft and differential gear were adopted to “N
BOX” by Honda Motor Co., Ltd. (Honda hereafter). Moreover Damper Comps* for “SUBARU BRZ” and ”TOYOTA 86” that were jointly
developed by Fuji Heavy Industries Ltd. and Toyota Motor Corporation, front Damper Comps* and Gas Spring for the global strategic
vehicle “CX-5” by Mazda Motor Corporation were adopted respectively.
*Damper Comp is SA which does not include exterior parts such as Spring, etc.
N BOX
SUBARU BRZ
CX-5
With regards to motorcycle components , front fork (Big Piston Front Fork) and rear cushion (Balance Free Rear Cushion) for
“CBR1000RR” by Honda, front fork and rear cushion for the New Mid Concept Series (NC700X, NC700S, INTEGRA) were adopted
respectively.
CBR1000RR
NC700X
NC700S
11
INTEGRA
ANNUAL REPORT 2012
SHOWA CORPORATION
Topics
Overseas expansion for motorcycle components business
In March 2012, SHOWA INDIA PVT. LTD. started sales and production of motorcycle
components, aiming to expand in sales to the clients of inside and outside of the
Indian motorcycle market which is expected to expand in the future. Furthermore,
SHOWA AUTOPARTS VIETNAM CO., LTD. established a new factory (schedule to
start operation in December 2012) with its purpose to expand the clients of outside
and inside of ASEAN. SHOWA AUTOPARTS (THAILAND) CO., LTD. started production
and sales of motorcycle components (schedule to start April 2013).
Discussion started on strategic technology alliances with TRW Automotive
We started discussing with TRW Automotive Inc. regarding
【TRW Automotive Inc.】
strategic alliance about electric steering technology which does
not include capital alliance.
We are analyzing and discussing on the possibility of strategic
alliance in order to make maximum use of our advantage, the
world class level of technology which can be conductive to provide
Location
Michigan, USA
# of payrolls
Approx. 60,000
Sale
Approx JPY 1279.8 billion (2011 fiscal year)
Main products
"Sfaety system (seat belt and airbag),
steering system, brake system, etc.
better services to Japanese clients.
Returning in MotoGP
We returned to MotoGP, one of the best two-wheel races by participating as a technical partner with
TEAM SAN CARLO HONDA GRESINI. We provide shock absorbers (front folk, rear cushion) to all the
class, Moto GP, Moto2 and Moto3. Our purpose is to reflect the technology and reliability cultivated at
one of the best race to mass-produced product and we will be aiming to obtain the championship.
【Team】
Team Name
TEAM SAN CARLO HONDA GRESNI
Resp.
FAUSTO GRESINI
Rider
ALVARO BAUTISTA, MICHELE PIRRO
Machine
HONDA RC213V *same as Honda Workds Team's
12
ANNUAL REPORT 2012
SHOWA CORPORATION
SHOWAʼs Global Network
As of 31st March 2012
Overview of Business
The SHOWA Group consists of our company, 15 subsidiaries and three affiliates, and our main
businesses are the manufacture and sale of automotive parts.
Corporate Head Office, Plants and R&D Facilities
Corporate Head Office
1-14-1, Fujiwara-cho, Gyoda, Saitama
Plants
Saitama Plant (Gyoda, Saitama),
Hadano Plant (Hadano, Kanagawa),
Gotemba Plant (Gotemba, Shizuoka),
Asaba Plant (Fukuroi, Shizuoka),
Nagoya Plant (Kasugai, Aichi)
R&D Facilities
Automotive Parts R&D Centers (Haga, Tochigi / Gyoda, Saitama)
Motorcycle Parts R&D Center (Fukuroi, Shizuoka)
Japan
Honda Cars SAITAMAKITA
Automotive Parts R&D Center (Saitama)
Automotive Parts R&D Center (Tochigi)
Corporate Head Office / Saitama Plant
Nagoya Plant
SHOWA SEIKO CO., LTD.
Hadano Plant
SHOWA KYUSHU CORPORATION
Gotemba Plants (No.1 / No.2)
Asaba Plant
Motorcycle Parts R&D Center (Asaba)
Corporate Head Office
Manufacturing Plants
Domestic Subsidiaries
& Affiliates
R&D Facilities
13
ANNUAL REPORT 2012
SHOWA CORPORATION
SHOWAʼ s Global Network
As of 31st March 2012
Overview of Subsidiaries and Affiliates
Consolidated Subsidiaries
P.T. SHOWA INDONESIA MANUFACTURING
Equity Method Affiliates
KAIFA INDUSTRY CO., LTD
MUNJAL SHOWA LTD.
CHENGDU NINGJIANG SHOWA AUTOPARTS CO.,LTD
Non-consolidated subsidiary
SHOWA REGIONAL CENTER (THAILAND) CO., LTD.
AMERICAN SHOWA, INC.
SHOWA DO BRAZIL LTDA.
SHOWA KYUSHU CORPORATION
SUMMIT SHOWA MANUFACTURING CO., LTD.
SHOWA CANADA INC.
SHOWA INDUSTRIA E COMERICO LTDA.
SHOWA SEIKO CO., LTD.
GUANGZHOU SHOWA AUTOPARTS CO., LTD.
NISSIN SHOWA UK LTD
SHANGHAI SHOWA AUTO PARTS CO., LTD.
SHOWA INDIA PVT. LTD.
SHOWA AUTOPARTS (THAILAND) CO., LTD.
SHOWA AUTO-PARTS VIETNAM CO., LTD.
Honda Cars SAITAMAKITA
Overseas
NISSIN SHOWA UK LTD.
GUANGZHOU SHOWA AUTOPARTS
CO.,LTD. WUHAN PLANT
SHOWA CANADA INC.
North America
Europe
CHENGDU NINGJIANG
SHOWA AUTOPARTS CO.,LTD.
China
AMERICAN SHOWA, INC.
Los Angeles Office
Japan
AMERICAN SHOWA, INC.
Head Office and Sunbury Plant
AMERICAN SHOWA, INC.
Blanchester Plant
MUNJAL SHOWA LTD.
SHOWA INDIA PVT. LTD.
SHANGHAI SHOWA
AUTO PARTS CO.,LTD.
SHOWA DO BRAZIL LTDA.
KAIFA INDUSTRY CO.,LTD.
SUMMIT SHOWA
MANUFACTURING CO.,LTD.
SHOWA AUTOPARTS
(THAILAND) CO., LTD.
SHOWA REGIONAL CENTER
CO.,LTD.
GUANGZHOU SHOWA
AUTOPARTS CO.,LTD.
SHOWA AUTO-PARTS
VIETNAM CO., LTD.
South America
SHOWA INDUSTRIA
E COMERCIO LTDA.
P.T. SHOWA INDONESIA
MANUFACTURING
Southeast Asia
14
ANNUAL REPORT 2012
SHOWA CORPORATION
SHOWAʼs Technology
Automotive Components
Shock Absorbers
Propeller Shafts
Shock absorbers are critical to an automobile’s character
The propeller shaft’s function is to transmit the driving force of
because they make the auto comfortable to ride and affect the
the engine to the wheel axis. The long cylindrical shaft rotates
attitude and stability of the automobile body. With their superior
at high speed. It must limit vibration and noise while ensuring
performance and quality, Showa brand shock absorbers have
high durability. Showa supplies leading-edge technologies,
created satisfied customers around the world. Showa has years
and our structural analysis enables a smaller number of
of experience with strut modules and is also working on
components and lighter weight. Further, we have implemented
suspension modules combined with peripheral components.
friction welding to achieve high precision, dynamic balance
and ultra–strong parts connections.
Gas Springs
Gas springs help to open and close front hoods and rear gates
Steering Systems
by using gas reaction force. They come with speed-adjustment
Of all automobile components, steering systems must provide
devices that enable operators to open and close the hood and
performance and reliability. The steering system is the
trunk at optimal speed. Showa develops a variety of products
man/machine interface that transmits the driver’s steering
to meet customers’ diverse needs.
motion to the automobile and conveys information on running
conditions from the automobile to the driver. The term “power
Differential Gears
steering system” refers to a component that assists steering and
The role of a differential mechanism is to absorb the difference
provides drivers with comfortable maneuverability.
in rotation between the right and left wheels when an
Power steering systems are classified into hydraulic power
automobile is cornering. These products must offer durability,
steering systems (HPS), which use the engine’s power as a drive
transmission efficiency and quiet operation. Showa’s
source, and electric power steering systems (EPS), utilizing the
differential gears are light in weight while exhibiting high
vehicle’s battery. Showa has a full line of power steering models.
performance in automobiles from subcompacts to SUVs.
15
ANNUAL REPORT 2012
SHOWA CORPORATION
SHOWAʼs Technology
Motorcycle Components
Shock Absorbers
Showa motorcycle shock absorbers are used extensively in
motorcycle races around the world. From racing machines to
scooters, we use our technology and experience to meet a
wide variety of performance needs.
Front Forks
T h e f ro n t f o r k i s a k e y s t r u c t u r a l
component of a motorcycle, holding
the front wheel securely and providing
the steering function. This vital part
must be able to closely follow road
contours through smooth operation
Outboard Marine Engine Components
a n d s t e a d y d a m p i n g f o rc e , w h i l e
retaining high rigidity.
Power Tilt and Trim Units
Rear Cushions
Power trim and tilt units change the angle of outboard engines
The rear cushion is attached to the rear
and provide the following three functions. The trim function
fork directly or through a link. By
provides good screw efficiency and steady cruising by adjusting
controlling the attitude and energy
the angle of the outboard engine while running. The tilt function
absorption of the motorcycle body, the
enables owners to prevent outboard engine damage from
rear cushion helps the rear wheel to
clinging shellfish by raising the engine above the water’s surface
follow road contours.
when moored. When driftwood or other objects strike the
outboard engine while under way, shocks are absorbed, helping
Drive Unit Products
to prevent damage to the outboard engine and boat.
For motorcycle and ATV drive unit products, Showa has
achieved lighter weights through analysis of functions, shapes,
and materials, while maintaining excellent durability,
transmission efficiency and quiet operation.
16
ANNUAL REPORT 2012
SHOWA CORPORATION
Outlook of Consolidated Business Performance
As of 31st March 2012
Major shareholders
Status of Shares
Total Number of Authorized Shares 180,000,000 shares
33.48
7,057,000
9.28
2,554,500
3.36
2,181,000
2.87
1,774,800
2.33
1,740,560
2.29
SSBT OD05 OMNIBUS ACCOUNT-TREATY CLIENTS 1,221,800
1.61
RBC Dexia Investor Services Bank Account
Luxembourg Non-Resident Domestic Rate
1,189,230
1.56
1,185,400
1.56
The Master Trust Bank of Japan, Ltd.
(Trust Account)
THE BANK OF NEW YORK,
TREATY JASDEC ACCOUNT
Japan Trustee Service Bank Ltd.
(Trust 9G Account)
Share Distribution by Shareholders
Showa Holdings
Financial institutions
CBNY DFA INTL SMALL CAP VALUE PORTFOLIO
27.32%
(43)
Foreign Investors
21.54%
120
(139)
1.70
1,291,480
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
Individuals / others
(6,727)
25,447,856
Japan Trustee Service Bank Ltd.
(Trust Account)
Number of shareholders 7,053
Investment
ratio (%)
(shares)
Honda Motor Co., Ltd.
Total Number of Issued Shares 76,020,019 shares
12.86%
Shares held
Shareholder Name
Showaʼs Stock Price (06ʼ/4=100)
100
Other corporations
80
37.83%
60
(116)
40
Securities Traders
20
0.45%
0
‘06/4 7
(28)
10 ‘07/1
4
7
10 ‘08/1
4
7
10 ‘09/1
4
7
10 ‘10/1 4
7
10 ‘11/1
4
7
10 ‘12/1 4
7
Showa’s Stock Price
Nikkei Average
Board of Directors and Corporate Auditors
As of 28rd June 2012
Directors
Representative Director and President
Representative Director, Executive
Vice President and Executive Officer
Representative Director and Senior
Managing Officer
Directors and Managing Officers
Corporate Auditors
Yoichi Hojo
Statutory Auditors
Akira Kadoya
Auditors
Kenshi Hirai
Hajime Hirata
Mitsutaka Sugino
Directors and Operating Officers
Tetsuo Nishikiori
Nobuyuki Sugiyama
Masaharu Sobue
Tetsurou Aoyama
Yuetsu Sato
Tsuneo Mizusawa
Hikoyuki Miwa
* Tsuneo Mizusawa and Hikoyuki Miwa are outside company auditors.
Exective Officers
Managing Officers
Atsushi Izumina
Takeshi Nagao
Operating Officers
Teru Oda
Akira Wada
Kenichi Ono
Masami Matsuo
Yutaka Ueno
Shuichi Kawahara
17
* Serving consecutively as both Director and Executive Director.
ANNUAL REPORT 2012