Pacific Report 2017 · 2018-05-22 · 01 Pacific Industrial Co.,Ltd. PACIFIC REPORT 2017 Pacific...
Transcript of Pacific Report 2017 · 2018-05-22 · 01 Pacific Industrial Co.,Ltd. PACIFIC REPORT 2017 Pacific...
Pacific Report2017
Investors’ Guide
Contents
01 Profile
03 Review from President & CEO
05 Pacific Industrial’s Value Creation Model
07 Special Feature
09 Review of Operations
11 Management
14 R&D Activities
15 Performance Highlights
17 Consolidated Financial Statement (Summary)
Back Cover Company and Stock Information
Year ended March 31, 2017
Pacific Industrial Co.,Ltd. PACIFIC REPORT 201701 02Pacific Industrial Co.,Ltd. PACIFIC REPORT 2016
TPMS: Contributing to Automobile Safety, Security, and Global Warming Prevention
History
1930 PACIFIC INDUSTRIAL CO. (unlimited partnership) was founded to manufacture valve cores for automobiles.
1946Started production of metal stamped parts for automobiles as a supplier to Toyota Motor Corp.
1970Listed in the TOKYO and NAGOYA STOCK EXCHANGES, 1st Sections. Received TOYOTA SUPERIOR QUALITY CONTROL AWARD from Toyota Motor Corp.
1999Developed TPMS(Tire Pressure Monitoring System)transmitter.
We a re a comprehens i ve manufacturer of automotive p re s s e d r e s i n p ro d u c t s , including battery cases for hybrid cars, oil pans, wheel caps, and engine covers. With our market leading technology we promote manufacturing that contributes to the realization of a low-carbon society.
Valve core
1984 – Expanded the valve business overseas (Taiwan, South Korea, USA, Thailand)
1986 – Started stamping business in Thailand
1999 – Expanded Stamping and Molding business into the U.S., China, and Thailand
2012 – Expanded TPMS business into the U.S., Belgium, and China
TPMS transmitter
Global Operations
The Pacific Industrial Group is an automotive parts supplier which has 12 global subsidiaries in s ix countr ies outs ide of Japan. We maintain an overwhelming share of the valve product business and are highly-reputed as a specialized manufacturer with advanced processing techniques in the stamping and molding product business. With these two core businesses, we will create values for the future and enhance the quality of corporate management.
Profile
As a Global Manufacturer of Technology Components
VISION and MISSION
1 We will endeavor to develop and enhance technologies and to supply high quality products in response to the needs of customers.
2 We value our employees as our essential family members and pledge to provide a place where they enjoy working and creating.
3 We will continue to contribute to society, confirming our role in the world as an excellent company as well as an environmentally conscious company.
The Group has captured 100 percent of the tire valve market in Japan, and over 20 percent of the market globally. We are proud of our ability t o p ro d u c e p ro d u c t s k n o w n throughout the world as being o f the h ighes t qua l i t y and technological capacity. We are the only manufacturer in Japan supplying, on an OEM basis, the next generat ion valve “TPMS” that has become compulsory by law in the United States, Europe, and South Korea.
Long Term Vision
PACIFIC GLOCAL VISION 2020
“Deepening” (Shinka) Strength to improve
“Evolution” (Shinka) Strength to innovate
“Developing” (Shinka) Strength to launch new technologies and businesses
“True worth” (Shinka) Strength to enhance corporate value
“Stronger trust” (Shinka) Strength to win stakeholders’ confidence
The business environment surrounding the Pacific Industrial Group has been changing dramatically and at an unexpectedly rapid pace. Examples of these changes include: the sudden global structural switch within the automobile industry, global environmental and energy problems, corporate social responsibility, globalization, and technological innovation. Recognizing these changes as a great opportunity, we have decided to make clear our dreams and mission by drawing up our long-term vision known as “PACIFIC GLOCAL VISION 2020”. This plan will serve as a milestone as we approach the 100th anniversary of our foundation in 2030.
This “long-term vision”, emphasizes CSR as a most vital management issue as well as ongoing innovation within our business structure. We will practice the “five meanings of ‘SHINKA’” as we shift to “Amalgamated Business Management” in pursuit of improved corporate value.
Five meanings of “SHINKA”
Deepening(Shinka)
Developing(Shinka)
Evolution(Shinka)
Strongertrust(Shinka)
True worth(Shinka)
The new PRIUS equipped with the Group’s wheel parts, battery case, etc.
We will create values for the future and enhance the quality of corporate management.
“GLOCAL” is a combination of the words “global” and “local”.While working to mature and advance as a specialized manu fac tu re r i n t he “g loba l ” marke t , we a l so simultaneously strive to contribute to each “local” region’s development.
(GLOBAL)By promoting innovative research and development activities, manufacturing, and employee development, we aim to not only secure a dynamic competitive advantage which can be utilized throughout the world, but also aim to continuously mature as a company and further improve our corporate value.
(LOCAL)When expanding into new countries and regions, our company complies with all national and regional regulations and creates facilities which are kind to the environment. We respect local cultures and traditions, and contribute to regional development through generating jobs, hoping to become a business that is respected and loved by its surrounding community.
( ¥ )( ¥ million )
0
50
100
150
0
5,000
10,000
15,000
20,000
EPSEBITDA
138.0818,557
0
30,000
60,000
90,000
120,000 103,669
2015 2016 2017/32013 2014 2015 2016 2017/32013 2014
Net sales
( ¥ million )
2015 2016 2017/32013 2014
Investors’ Guide 2017 Editorial PolicyThe Pacific Industrial Group began publishing Investors’ Guide in 2013 to promote and enhance dialogue with more of our stakeholders with more of our stakeholders so as to build a sustainable society.
The 2017 edition, which is the fourth issue, is compiled to maximize readership among our stakeholders and is edited to integrate important financial and non-financial information, along with utilizing websites to comprehensively disclose information. We look forward to hearing your candid opinions about it.
Period covered in the Report:
From April 1, 2016 to March 31, 2017(includes the latest information at the time of publication)
Boundary of the Report:
Pacific Industrial Co., Ltd. and some Pacific Industrial Group companies
Publication Date: July, 2017
Publisher:Pacific Industrial Co., Ltd. Department of General Affairs Phone: +81-584-93-0113 Fax: +81-584-92-1804
Forward-Looking StatementsThis Report contains information about forward-looking statements related to such matters as the Company’s plans, strategies, and business results. These forward looking statements represent judgments made by the Company based on information available at present and are inherently subject to a variety of risks and uncertainties.The Company’s actual activities and business results could differ materially from those anticipated in these statements.
03 04Pacific Industrial Co.,Ltd. PACIFIC REPORT 2017Pacific Industrial Co.,Ltd. PACIFIC REPORT 2017
We will accelerate a virtuous cycle of management to establish a management foundation capable of withstanding long-term environmental changes.
Top Message
Shinya OgawaPresident and Chief Executive Officer
Thanks to our act ive investment and aggressive management strategies, we have successfully launched new plants and equipment in the March term of FY 2016, resulting in continued favorable sales from the previous term. As for revenue, despite a foreign exchange loss at the beginning of the term due to a strong yen, we have achieved a record-high level due to an increase in physical volume, overall cost reduction activities, and a company-wide commitment to improving work methods which has resulted in a reduction in expenses.
Plants are operating smoothly at our overseas bases: Our new Tennessee plant, which is our second branch in the United States; our new plant in China, which was founded in anticipation of legislation mandating the installation of Tire Pressure Monitoring Systems (TPMS) in vehicles; and our new aluminum die cast plant in Korea, which has been expanded in order to meet increasing market demand. The successful operation of these overseas production sites is due largely to our continued initiatives to thoroughly “level up” our manufacturing technology in Japan, followed by offering technical support to our overseas branches when we spread that technology to them. This, together with the early full-scale operation of these facilities, has led to positive growth in orders for cold-stamped products made from ultrahigh tensile strength steel (UHTSS), on which our group has focused, as well as in orders for TPMS products and plastic products manufactured at our plant in Thailand.
At production sites in Japan where we produce cold-stamped or hot-stamped ultrahigh tensile strength steel products, which is technology in which we have made a large investment to date, endeavors to develop technologies in-house have improved our level of work proficiency, and efforts to improve work methods have resulted in the spread of a more improvement-minded thought process. In result of these endeavors, both productivity and profit rates have improved, and these facilities are all maintaining high rates of operation. Results such as these are part of our recent change in business direction from defense to offense, which has led to our company receiving a long-term issuer and bond credit rating of “A-“ from the Japan Credit Rating Agency last December. We believe that this serves as evidence that our prospects for business expansion, for stamping through technology such as ultrahigh tensile strength steel, as well as for global TPMS market development, are being recognized.
Currently, Japan’s car market is continuing to polarize into cars that sell well and those that do not. This polarization has also affected our group, leading to significant fluctuations in received orders. To cope with the variations in demand, we will continuously promote worksite improvement to ensure the production of high-quality products, as well as cost reduction. We will focus on establishing an organizational structure capable of yielding profits by improving our company’s ability to endure variations in production volume at domestic plants as well as fluctuations in foreign exchange rates. On the other hand, our overseas facilities continue to successfully explore new trade partners and increase production volume, so we wil l continue to enhance equipment and promote self-sustainability. In the stamping and molding business, the 3000-ton large transfer presses and hot stamping machines operate efficiently, and for valves, demand for TPMS is expected to increase. In response to the introduction of legislation in China to install a TPMS on vehicles from 2019 onward, we will reinforce our sales act iv i t ies for Japanese and local automotive manufacturers in order to increase our market share in China and grow the TPMS into a core business.
As the goals set forth in the current mid-term management plan for our group, “OCEAN-18”, are likely to be achieved, we will review the plan and announce this autumn a new mid-term management plan, “OCEAN-20”, which will set fiscal year 2020 as the final year for new objective completion.
The automobile industry is now facing the challenges of addressing environmental issues, low fuel efficiency, automobile weight reduction, and safety-related issues, and the development of self-driving and/or connected cars and utilization of AI and IoT have also come to the forefront. In order to further grow, it is vital for us to develop new technologies and manufacturing methods which lead to new products, expand overseas bases, improve environment, safety, quality and productivity and continuously achieve competitive costs. With this in mind, we will establish a global organizational structure and develop our human resources. For our 85th anniversary, we have established “PACIFIC VALUES” as a universal sense of value that all members of Pacific will share. In these “PACIFIC VALUES”, we express the mental
attitude that each employee should have with the “Dream and Challenge” and “Trust and Gratitude” slogans. This means that the ability to take action without fearing a failure, always with dreams and goals in mind, will grow both the company and individual. In order to maintain our status as a company that is worthy of trust and meets the expectations of society, we will actively commit ourselves to activities to establish ties with stakeholders, and create values for the future and enhance the quality of our corporate management.
Environmental issues are a subject that is deeply interconnected with the automobile industry. In order to maintain long-term competitiveness and better manage risks, it is imperative that we commit to helping the environment. In addition to developing environmentally friendly products and establishing targets for substance emissions, we are also tracking many types of information. This data is not only to show compliance with regulations, but to also guarantee traceability of raw materials and parts, and we have set policies for CSR procurement in order to meet the demands of society.
In addition, employees play a central role in supporting our growth. We are enhancing our company support systems, such as childcare and family care leave systems, human resource diversity initiatives, creating more accessible workplaces for the disabled, expanding opportunities for women and supporting childrearing.However, it is important that we also ensure that these pursuits are being followed together with our overseas subsidiaries.
Corporate governance supports our mid-to-long term growth, and as such we are promoting more effective activities rather than praising it only as a formality. This includes activities such as inspection tours by outside directors for sites both domestic and overseas, as well as holding discussions at themed meetings with directors. We will earnestly listen to the opinions of shareholders and corporate investors and strive to reflect that information in our business management.
At present, our mid-term management plan is likely to be achieved, our ratings have been raised, and a virtuous cycle of management is being created, but the environment of the automobile industry will be subject to significant changes in the future. We will accelerate research and development, and establish a sound management foundation capable of enduring environmental changes. We would like to ask shareholders and investors for continued guidance and support.
Initiatives and Outlook forthe Next Term
Initiatives and Results forFY2016 March Term
Foundation to AchieveMid-to-Long Term Vision
Mid-to-Long Term Outlook
05 Pacific Industrial Co.,Ltd. PACIFIC REPORT 2017 06Pacific Industrial Co.,Ltd. PACIFIC REPORT 2016
Pacific Industrial’s Value Creation Model
We are a global manufacturer of automotive parts which produces tire valve- related products that boast a significant share of the tire valve market, as well as stamped metal and plastic molding products with advanced technologies that make us capable of responding to modern consumer demands.
Risks
•Economic conditions in Japan and overseas
• Impact of natural disasters (e.g. earthquakes, flooding)
•Excessive dependence on specific business partners
•Cyberterrorism
Opportunities
•Stable growth in the automotive sector
•Growth of emerging markets
• Increasing legislation on compulsory installation of TPMS
•Structural shift of automobiles
•Utilization of AI and IoT
•Product quality
•Global business development
• Exchange rate and interest rate fluctuations
•Price competition
•Raw material procurement
Market Environment
Strengths
• Large market share of Japanese and global valve business
•Advanced stamping techniques
•Integrated production systems
• Management trusted by our stakeholders through practice of CSR
Internal Environment
Issues
• Strengthening of business competitiveness and a shift in product mix towards more high-value-added products
•Passing on technologies and skills•Development of next-generation and global human resources• Development of environmentally friendly products, processes, and technologies
•Further expansion of overseas business•Deployment of equipment with high productivity
Building an extensive, multifaceted global structure Development that meets the needs for new tech-nologies and materials Proactively addressing medium-to-long-term risks
The Pacific Industrial Group
Medium-to-long-term high priority issues
• Financial capital
• Manufactured capital
• Intellectual capital
• Human capital
• Social and relationship capital
• Environmental capital
Desired Corporate Pictures in 2020
• An “indispensable corporate group for all stakeholders” with heightened corporate brand awareness
• A corporate group that has established open and fair corporate ethics and that fulfills its CSR
• A corporate group where each employee can pursue personal dreams and display his/her creativity and a spirit of challenge, and where he/ she can achieve self-realization and self-growth
• A corporate group that creates new values by “Manufacturing with Persistency” and that contributes to the development of local communities
• A corporate group that has pursued five meanings of “SHINKA”
Planning and design
Trial production and evaluation Procurement Production Delivery
CapitalInvested
Products Valve product business
We have established ourselves as the top manufacturer in Japan for tire valve products, on which we were founded, with the world’s highest quality and technological capacity. These products are manufactured and marketed globally, securing a large market share in not only Japan, but overseas markets as well. In addition to manufacturing control devices used for air conditioning and refrigerant control for systems such as car air conditioners, we also produce TPMS transmitters, developed as next-generation tire pressure valves, both in Japan and overseas. Modelling off of our proprietary technology which we have utilized since our foundation, we are pushing ahead with R&D to respond to customer needs.
OCEAN-18Medium-Term Management Plan
Strength to improve
Strength to innovate
Strength to launch new technologiesand businesses
Capability to enhance corporate value
Strength to win stakeholders’ confidence
Deepening
Evolution
Developing
True worth
Stronger trust
Keywords
Technology & Overseas Manufacturing is about Developing People CSR & Environmental Preservation
Long Term Vision PGV2020 Aiming to improve corporate value through amalgamated business management, we have positioned CSR as
management’s highest priority issue and reorganized our operational structure around the five meanings of “SHINKA.”
Stamping and Molding product business
We produce automotive parts which make up automobile main bodies, functional components such as hinges and battery cases, engine peripherals such as oil pans, and resin interior and exterior parts including engine covers and wheel caps, supplying Toyota Motor Corp. as our primary customer. As a specialized manufacturer with advanced processing techniques, we strive not only to develop smaller, lighter and low-cost products, but also to provide high-value-added products and services to meet customer needs.
Target of FY2018Consolidated sales 120billion yen
*Precondition : 1US$=¥115Consolidated ordinary income rate Above 8%
Oversea sales Above 50%Total assets turnover ratio Above1.05times
<PACIFIC VALUES>
Founding Spirit
Company Motto
Our Shared Identity
2030: Celebrating
Our CentennialAnniversary
<Corporate Policies>
VISION and MISSION
Management Philosophy
Action Guidelines
Technology Development Guidelines
07 08Pacific Industrial Co.,Ltd. PACIFIC REPORT 2017Pacific Industrial Co.,Ltd. PACIFIC REPORT 2017
Being a Company that Pursues Value Creation
We have made investments in equipment conforming to predictions of future market conditions, such as installing press machines to run the prospective favorable ultrahigh tensile strength steel material, and establishing a new plant in China in preparation for the legal mandating of TPMS in vehicles. We are poised and ready for future increases in demand.
Successful results of continuous strategic investments and promotion of cost improvements has led to an increase in sales profits for 5 consecutive terms.Cash flows from operating activities has increased simultaneously with sales profits, and the performance of our primary business operations has improved our capability to raise funds.
The continued expansion of new product sales, in addition to the implementation of companywide initiatives to foster an improvement-minded thought process, have resulted in an increased earning power from the stamping and molding product business. Additionally, our highly-profitable valve business has shown record-breaking profits.
Due to our improvement in ability to generate cash flow and expectations for maintaining a healthy financial structure, the Japan Credit Rating Agency has assigned an “A-“ rating to our bonds for long-term credit, and has evaluated our future outlook as “Stable”.
Net Sales Operating income
Rating performance
Equity ratio (%)
(Million yen)
BBB
40.3
89,862
3,640
80,468
(437)
78,202
3,073
84,631
5,151
79,579
3,699
83,700
4,340
91,976
5,500
99,952
6,962
106,886
7,869
103,669
8,662
38.2 38.9
44.6 44.1
49.6
BBB BBB BBB BBB BBB
BBB+ BBB+ BBB+
A–
2008/3 2009/3 2010/3 2011/3 2012/3 2013/3 2014/3 2015/3 2016/3 2017/3
49.5
55.5 55.7
59.2
JCR A-/Stable
Increase in Cash Flow Improvement
in Business EarningPower
Effective Capital
Expenditures
Improvement in Financial
Rating
: 14.3billion yenOperating income: 8.6billion yen
Capital expenditures: 16.6billion yen
Operating income have increased, and both our
owners’ equity and credit ranking have
improved. These results allow us to further
advance our offensive capital expenditures
strategies.
Cash flows from operating activities
We have conducted various business strategies and relevant capital expenditures in order to accomplish goals for “OCEAN-1 8”, our mid-term management plan. Recent years have seen many successes, such as smooth launches of new plants and equip-ment, both in Japan and overseas, as well as increased sales through business expan-sion. We are still continuing to reap the returns from our investments. We will continue to make offensive investments, create and provide new value, and sat-isfy our customers and society.
Special Feature
Virtuous Cycle Generated by
Record-Breaking Performance
Major Capital Expenditures to Present
Japan
Tohoku region: Construction of integrated stamping and welding plantExpansion of processing equipment for ultra-high tensile strength steel (cold/hot stamping)Expansion of high accuracy production business
North America
•Ohio base: Press plant expansion and press machine addition•Tennessee base: Integrated stamping/welding plant construction and deployment of equipment
KoreaExpansion of aluminum die casting business
Thailand Expanded equipment for producing plastic products
China
Tianjin base: Press machine additionChangsha base: Construction of integrated stamping and welding plantChangshu base: Construction of TPMS plant and deployment of equipment
One-way clutch holding
Piston brake
Expansion of Yoro Plant and production in North America is planned to start in FY2017.
Build integrated production system of compressor parts for car air conditioners.
Organized production structure to prepare for expected change in laws to require installation of TPMS on vehicles in China. Planning to deliver TPMS products to automobile manufacturers in Korea starting in FY 2017.
Press machine in Tennessee base
TPMS production equipment in Changshu base➡
➡
➡
09 10Pacific Industrial Co.,Ltd. PACIFIC REPORT 2017Pacific Industrial Co.,Ltd. PACIFIC REPORT 2017
Review of Operations
During the fiscal year under review, the Japanese econo-
my saw improvements in employment and income environ-
ment and was on a moderate recovery trend thanks to the
economic policies of the Japanese government and the fi-
nancial measures of the Bank of Japan. Meanwhile, although
the economies of the United States and Europe have contin-
ued their moderate recovery trends, and despite signs of a
pause in China’s economic slowdown, the future of the glob-
al economy remains uncertain due to the European Union’s
Brexit issue and shifts in policy direction from the new ad-
ministration in the United States.
In the automotive-related industry, in which our group’s
business is focused, vehicle production by our primary cus-
tomers in Japan, the US, and China remains largely the
same level as that of the previous fiscal year.
In such circumstances, in an attempt to become a “top-
class glocal parts manufacturer”, our group has promoted its
medium-term management plan, “OCEAN-18,” and focused
on developing environmentally friendly products, new tech-
nologies, new manufacturing methods, developing diverse
human resources and establishing and improving domestic
and overseas bases.
As a result of these efforts, our group has achieved an op-
erating income of 8.662 billion yen (up 10.1% YOY), an ordi-
nary income of 9.957 billion yen (up 10.5% YOY), and a net
income attributable to the shareholders of the parent company
of 7.524 billion yen (up 5.8% YOY) due to an increase in vol-
ume of sales and the effect of cost improvement. This is de-
spite a decline in net sales to 103.669 billion yen (down 3.0%
YOY) on a consolidated basis for the current fiscal year, par-
tially because of a foreign exchange loss due to a strong yen.
Although the Japanese economy is expected to gradually
continue its recovery thanks to ongoing economic stimulus
measures such as government spending, ultra-low interest
rate policies, a recovery of corporate performance, and im-
provement in employment and income environment, the fu-
ture economic outlook remains uncertain due to the sluggish
personal consumption and the uncertainty of the overseas
economy.
In the automotive-related industry in which our group op-
erates, even though sales are expected to rise in overseas
markets, it is difficult to have the same expectations for an
increase in sales in Japan. In addition, a continuously in-
creasing demand for higher quality and a global competition
for developing safe and environment-friendly products and
self-driving car technology will further intensify competition
among companies.
In consideration of such circumstances, we have the fol-
lowing business performance outlook for the current fiscal
year: Net sales of 110.0 billion yen (up 6.1% YOY), operating
income of 8.7 billion yen (up 0.4% YOY), ordinary income of
9.5 billion yen (down 4.6% YOY), and net income attributable
to the shareholders of the parent company of 6.7 billion yen
(down 11.0% YOY).
This performance outlook is based on an exchange rate
of 105 yen to the US dollar.
57,738
23,77222,158
Japan North America Asia( ¥ million )
2015 2016 2017/32013 2014
60,000
40,000
20,000
0 (1,000)
0
2,000
1,000
3,000
6,000
5,000
4,000
5,394
1,7851,298
Japan North America Asia( ¥ million )
2015 2016 2017/32013 2014
( % )
20
40
60 48.3
02015 2016 2017/32013 2014
Operations for Stamping and Molding Products
Although auto production by our primary customers in Japan, the US, and
China remains level at largely the same level as that of the previous fiscal year,
the overall sales from these operations have dropped to 7 0.8 7 6 billion yen
(down 4.8%) from the previous term because of a foreign exchange loss due
to a strong yen. For revenue aspects, we have achieved an operating income
of 2.542 billion yen (up 43.7% YOY) due to a drop in cost of launching plants
overseas and the effects of cost improvement.
Despite foreign exchange losses due to a strong yen, our sales have in-
creased to 32.62 billion yen (up 1.8% YOY) thanks to solid sales performance
for TPMS products, and for revenue, operating income has increased to 6.12
billion yen (up 0.1% YOY) due to increased sales volume and the effects of
cost improvement efforts.
Stamping products Molding products
Operations for Valve Products
Tire Valve products TPMS products Control Devices products
( ¥ million )
( ¥ million )
0
30,000
15,000
45,000
60,000
75,000
0
2,400
1,800
1,200
600
3,000
70,8762,542
Operating incomeNet sales
2015 2016 2017/32013 2014
( ¥ million )
0
7,000
14,000
21,000
28,000
35,000
( ¥ million )
0
3,600
4,800
6,000
32,620Operating incomeNet sales
6,120
2,400
1,200
2015 2016 2017/32013 2014
Net sales by region Operating income by region Rate of oversea sales
Net sales and operating income
Net sales and operating income
Analysis of Financial Results for FY2016 Outlook for FY2017 Condition in FY2016 by Segment
68.4%
31.4%
11 12Pacific Industrial Co.,Ltd. PACIFIC REPORT 2017Pacific Industrial Co.,Ltd. PACIFIC REPORT 2017
President & CEO * Shinya Ogawa
Executive Vice President * Takayuki Ishizuka
Senior Managing Officer * Katsuya Suzuki
Senior Managing Officer * Tetsushi Ogawa
Managing Officer * Hisashi Kayukawa
* Member of the Board (As of June 17, 2017)
Management
Our company has adopted a system to audit our opera-tions. In addition to mandatory general shareholder meet-ings, board of directors meetings, auditor boards and ac-counting auditors, we also hold strategy and management meetings to discuss important management issues and cor-porate strategies.
Additionally, the introduction of our corporate officer sys-tem has allowed us to separate management monitoring functions from operation administration functions. This change is designed to further clarify roles and responsibili-ties, as well as expedite the decision-making process.
The board of directors consists of five inside directors, who have an entire picture of our operations and an excel-lent sense of balance that allows them to cover each field from various perspectives, and outside directors, who have
Corporate Governance
In step with our company’s foray into global operations, we are working toward enhancing and strengthening our risk management so as to minimize the effects of increasingly diverse risks. In response to the multitude of risks that can drastically affect business operations, we are not only en-
Preparation of Risk Management System
The board of auditors consists of four members in all, of which two are full-time auditors and the other two are outside auditors. A staffed Audit Office is provided to assist them.
The full-time auditors participate in important meetings, such as the board of directors meetings and management meetings, receive audit reports from CSR and the Audit Office, which is an internal audit department, and give the CSR and Audit Office instructions on audited departments and import-ant audited items, if necessary. The outside auditors, who are certified accountants or lawyers, give expert advice at meet-ings with the board of directors.
These auditors hold regular meetings with representative directors, accounting auditors and the CSR and Audit Offices, respectively. At these meetings, the participates work in col-
Internal Audit and Audit by Auditors
We determine basic remuneration for directors for each title within the limits of annual remuneration approved by the general meeting of shareholders in accordance with Direc-tors’ Remuneration Rules.
For director bonus, we have introduced a perfor-mance-based bonus system to boost their morale and mo-tivation for improving operations. In the system, the bonus of directors other than outside directors is calculated based on a profit margin on consolidated sales and a return on consolidated stockholders’ equity for the current term.
In June 2011, we have abolished the retirement gratuities
Policy for determining directors’ remuneration and calculation method
Executive ClassificationTotal Amount ofCompensation,Etc.(million yen)
Total Amount of Compensation by Type (million yen) Total Number ofEligible ExecutivesBasic Compensation Stock Options Bonuses Retirement Bonus
Board Members(excluding outside board members)
261 176 20 63 0 6
Corporate Auditors(excluding outside auditors)
43 38 — — 4 3
Outside Directors 24 20 — — 4 5
Executive Compensation, Etc.high-level expertise in fields outside of our area of business and independence so that we can make prompt, flexible, in-dependent and objective decisions.
To satisfy management monitoring functionality, outside directors and auditors regularly hold liaison meetings where they exchange information and share their views and under-standings. This facilitates an environment and organizational structure where directors can easily express their opinions and give advice at meetings with the board of directors.
For internal reporting of issues, we have provided an in-dependent counseling service where one can directly con-sult with an outside director or full-time auditor who has a third party’s position independent from management. Utili-zation of this service will lead to earlier issue discovery and problem resolution.
deavoring to prevent risks prior to their occurrence, but also crafting a Business Continuity Plan (BCP) which will be used to facilitate swift initial responses and recovery operations, and minimize the damage.
laboration by exchanging opinions on the current state of management and problems that the company should address, sharing accounting audit report details and evidence to vali-date that information and aid effective implementation of inter-nal audits, and other such collaborative activities.
The CSR and Audit Office, with four members, conducts audits on internal operations, checks how internal controls are performed by each department, finds problems and makes recommendations for improving them, takes all possible mea-sures to ensure that internal controls under the Financial Instru-ments and Exchange Act are audited properly, while making internal controls more effective by expanding the internal audit range to include other business operations.
system for directors other than outside directors, and start-ed to use stock options as compensation to further boost the morale and motivation for continuous improvement in mid-to-long term performance and corporate value. More specifically, the subscription right to shares is granted as a stock option within an annual limit of ¥50 million, apart from the remunerations of directors.
In June 2017, we have also abolished the retirement gra-tuities system for outside directors and auditors to enhance their independence and neutrality toward management and further reinforce corporate governance.
Corporate Directors, Auditors and Officers
Outside Board Member * Hiroshi Kurokawa
Outside Board Member * Osamu MotojimaAudit & SupervisoryBoard Member Hiroshi NagataAudit & SupervisoryBoard Member Yasuhiko FujiiAudit & SupervisoryBoard Member Katsuhiro TakahashiAudit & SupervisoryBoard Member Ayao Sakakibara
Board Members and Auditors
Board Members and Auditors
Managing Officer Takayuki Shirata
Managing Officer Terumi Noda
Operating Officer Yoshio Mori
Operating Officer Harunori Asano
Operating Officer Kazuya Hayashi
Operating Officer Masataka Kurita
Operating Officer Katsuhiro Suzuki
Corporate Officers
■1
■2
■�
■4■5■9
■�
■8■3
■6 ■7
13 14Pacific Industrial Co.,Ltd. PACIFIC REPORT 2017Pacific Industrial Co.,Ltd. PACIFIC REPORT 2017
Management
The Pacific Industrial Group believes that CSR is the keystone of management for honorable business operations that can be trusted and counted on by society. Through our activities in all regions and countries, we aim to become a “True Glocal Enter-prise” that positively contributes to the continuous development of society. To preserve harmony between the economy, environ-ment, and society, we place great importance on open and fair communication as well as creating a win-win relationship with all of our stakeholders.
Corporate Social Responsibility (CSR) Management
Work TeamsCommittees
Supervision and promotion agency of overall CSR activities
Risk Management Committee
CSR Council
CSR Promotion Organization CSR Philosophy
Amid many risks and dangers, we try to earn the trust and expecta-tions of our stakeholders as a true global compa-ny. To this purpose, we have establ ished the core elements of com-pliance, risk manage-ment, and corporate governance within all of our business activities.
Technology
Safety
QualityHuman
resources
Cost Regionalcontribution
Environment
Energysaving
Compliance
Internal control
Corporategovernance
Riskmanagement
Informationdisclosure
Stockholder
Glocal (C
omm
unity)
Employee
Par
tner
Customer
Environmentpreservation
Stakeholder Management
In order to obtain trust and meet e x p e c t a t i o n s o f o u r stockholders, we will place i m p o r t a n c e o n t w o w a y communication and continuously strive to improve our corporate value by taking a long-term view.
Stockholders
CSRPolicy
Placing the utmost importance on “Customer First”, we will work to provide environmentally friendly, high-quality, and safe products and services that are trusted by, and satisfy, our customers.
Customers
From the perspective of respect for human rights and dignity, we will provide a workplace where all employees can work at ease in an environment that allows them to find work they can be proud of, and encourages them to demonstrate their creativity and spirit of challenge.
Employees
Aiming at co-existence and coprosperity based on mutual t rus t , we w i l l respect our business partners and establish strong positive relationships with them on an equitable and fair basis.
Business Partners
We wil l strengthen the development of env i ronmenta l ly f r iendly products and technology and promote manufacturing that takes env ironmenta l conservat ion and reduction of burdens on the environment into account throughout the entire process.
Glocalization (Communities)
Environment
We wil l be compliant with national and international laws and regulations and social norms and respect culture and custom, while working to contribute to the international society and promoting regional development.
Society
We will be actively engaged in various social contribution activities through close partnership and cooperation with communities to establish ourselves as a good corporate citizen.
Social Contribution
R&D Activities
In order to refine our unique and proprietary technologies, which we have cultivated since our foundation, and in order to respond to the needs of customers and to social issues that should be addressed by the automobile industry, we will speedily work towards the development of new technologies, new methodologies, and new materials through a structure that incorporates industry, government and academia, such as specialized manufacturers, universities, and research institutes.
For stamped products, weight reduction has been one of many important challenges to overcome to achieve fuel effi-ciency, and in recent years, ultra-high tensile strength steel, which is thinner but stronger than conventional materials, has rapidly grown in popularity. Although ultra-high tensile strength steel generally requires sophisticated press forming and die technologies because of its hardness, after long-term research utilizing CAE analysis, we are now able to successfully cold-stamp this durable material. We are systematically introducing processing equipment for UHTSS to production bases in Ja-pan and overseas, and developing a global production system while also promoting further exploration of these technologies going forward.
In the valve products business, valve core products, on which our business was founded, have achieved cumulative production of over 16 billion units. The TPMS (Tire Pressure Monitoring System) transmitter developed as the next-gen-eration valve has achieved cumulative production of 100 mil-lion units. In recent years, in order to meet the needs for simple-to-install TPMS transmitters, we developed the Snap-In TPMS by reducing its weight and changing materials. We are also conducting new product development that applies our
valve technology, cultivated over many years, exemplified by the relief valve we developed being adopted for use in the hy-drogen piping system of the Toyota Motor’s fuel cell vehicle MIRAI.
In addition, we are working to develop technologies for re-alizing new design concepts aimed for by various automobile manufacturers, including Toyota Motor’s TNGA (Toyota New Global Architecture).
The PRIUS PHV, which is based on TNGA, is equipped with a “one-way clutch holding plate”, a stamped product that we have developed which is a core part that enables high-pow-ered driving.
Going forward, we will continue to conduct development closely focused on customers, engage in research with an eye to the future, and develop products that pursue environmental performance, safety and comfort.
Topics
Urethane Engine Cover Developed.
0
400
200
600
800
1,000(%)
0
0.4
0.2
0.6
0.8
1.0
R&D expenses/Ratio of R&D expenses to net sales
0.96
1,0041,004
2015 2016 2017/32013 2014
( ¥ million )
R&D expenses Ratio of R&D expensesto net sales
General Environmental Policies
Initiatives for Research and Development Activities
Development of environmentally friendly new technologies and manufacturing methods Immediate target More than 25 developments in 2017
Reduction of CO2 Emissions Immediate target Reduction of CO2 emissions by 10% in 2017 compared to 2007 Total amount of emissions less than 25,660t, CO2 emission rate for sales: less than 38.88t/million yen
Reduction of Industrial Wastes (except to material recycles) Immediate target Maintain within 325t in 2017
Reduction of VOC Emissions Immediate target Reduction of VOC emissions by 3.9% in 2017 compared to 2016(Goal 123.3t)
We shall actively partake in protection of the global environment, and strive to bea “credible high quality company” that is respected by society
EnvironmentalPhilosophy
Env
ironm
enta
l P
olic
ies
Cor
pora
te
Env
ironm
enta
lA
ctiv
ities
Thorough our business activity, we endeavor to improve our environment, and follow the environmentally-related laws, as well as to achieve companywide environmental 4 goals.
We familiarize all employees and all suppliers with our environmental policy and promote raising of environmental awareness.
Although engine covers (see Note 1) have been traditionally composed of hard resin and urethane, we have successfully developed the world’s first non-coated engine cover composed of urethane alone. The engine cover features high cushioning and sound and vibration insulation properties, and improves product performance while maintaining functional design. We have started mass-production in U.S. and Japan from 2016 and expect these covers to be adopted in more vehicles in the future.Note 1. Engine cover: Covers the upper part of the engine to reduce vibration and noise while enhancing design
Award for New Pop-up Hood System
A 4-point pop-up hood (see Note 2), which supports a hood at four points, has been adopted for the New Lexus LC. The pop-up hood system saves mounting space, allows for intricate design, achieves high fuel economy performance due to weight saving, and enhances pedestrian safety performance. These features are highly appreciated, which has led to the winning of Toyota Motor’s “New Lexus LC Project Award”.
Note 2. Pop-up hood: A system that reduces impact on pedestrians by raising the hood instantly at the time of collision between the vehicle and pedestrian.
15 16Pacific Industrial Co.,Ltd. PACIFIC REPORT 2017Pacific Industrial Co.,Ltd. PACIFIC REPORT 2017
Performance HighlightsPACIFIC INDUSTRIAL CO., LTD. and Consolidated Subsidiaries, Year Ended March 31
8,414
59.2
16,6339.6
140,869
1,404.98
7.40.77 9.7
138.08 28.0
84,266
( ¥ million ) ( ¥ million )
( ¥ million )
( % )
0
60,000
30,000
90,000( ¥ million )
0
20
40
60( % )
0
3,000
6,000
9,000
0
5,000
10,000
15,000
20,000
0
50,000
100,000
150,000
0
2.0
4.0
6.0
8.0
10.0
Depreciation ExpensesCapital ExpendituresRatio of ordinary profit to sales
Total assets Net assets Equity ratio
( Times )
2015 2016 2017/32013 2014 2015 2016 2017/32013 2014
2015 2016 2017/32013 2014 2015 2016 2017/32013 2014
2015 2016 2017/32013 2014 2015 2016 2017/32013 2014
2015 2016 2017/32013 20142015 2016 2017/32013 2014
2015 2016 2017/32013 2014
2015 2016 2017/32013 2014
2015 2016 2017/32013 2014
2015 2016 2017/32013 2014
0
0.25
0.50
0.75
1.00
Total assets turnover ratio
0
2.0
4.0
6.0
8.0( % )
ROA/Return on assets
0
3.0
6.0
9.0
12.0( % )
ROE/Return on equity
( ¥ )
0
10.0
20.0
30.0
Cash dividends per share
( ¥ )
0
50
100
150
EPS
( ¥ )
0
500
1,000
1,500
BPS
2012 2013 2014 2015 2016/3 2017/3 2017/3
Net sales *1 ¥79,579 ¥83,700 ¥91,976 ¥99,952 ¥106,886 ¥103,669 953,548
Operating income *1 3,699 4,340 5,500 6,962 7,869 8,662 79,673
Ratio of operating profit to sales (%) 4.6 5.2 6.0 6.9 7.4 8.4 8.4
Ordinary income *1 4,147 5,372 7,062 8,691 9,013 9,957 91,587
Ratio of ordinary profit to sales (%) 5.2 6.4 7.7 8.7 8.4 9.6 9.6
Net income for the year attributable to owners of the parent 3,297 2,807 4,587 6,714 7,114 7,524 69,212
Ratio of net income to sales (%) 4.1 3.4 5.0 6.7 6.7 7.3 7.3
EBITDA *2 12,042 11,520 14,205 13,657 17,030 18,557 170,686
Capital expenditures *1 6,855 7,820 11,168 15,390 11,988 16,633 152,989
Depreciation expenses *1 7,117 6,564 6,996 6,637 8,003 8,414 77,399
R&D expenses *1 603 647 735 905 943 1,004 9,241
For the year Millions of yen Thousands ofU.S. dollars
2012 2013 2014 2015 2016/3 2017/3 2017/3
Total assets ¥90,540 ¥96,976 ¥116,562 ¥133,694 ¥129,954 ¥140,869 1,255,637
Net assets 42,396 50,969 60,648 75,459 73,244 84,266 751,102
Equity ratio (%) 44.1 49.6 49.5 55.5 55.7 59.2 59.2
At year end Millions of yen Thousands ofU.S. dollars
2012 2013 2014 2015 2016/3 2017/3 2017/3
Cash flows from operating activities *1 ¥7,041 ¥9,934 ¥10,689 ¥11,130 ¥15,211 ¥14,381 132,275
Cash flows from investing activities *1 (6,997) (7,405) (10,749) (15,370) (12,754) (16,420) (151,034)
Cash flows from financing activities *1 3,050 (3,195) 5,515 (1,812) (236) 246 2,263
Free cash flow *1 44 2,529 (60) (4,240) 2,456 (2,039) (18,758)
Cash flows Millions of yen Thousands ofU.S. dollars
2012 2013 2014 2015 2016/3 2017/3 2017/3
Net assets (BPS) ¥748.15 ¥900.89 ¥1,079.42 ¥1385.19 ¥1,339.62 ¥1,404.98 12.52
Net income (EPS) 61.68 52.57 85.80 125.47 132.42 138.08 1.23
Cash dividends 10.00 11.00 16.00 24.00 26.00 28.00 0.24
Per share data yen dollars
2012 2013 2014 2015 2016/3 2017/3
Total assets turnover ratio (%) 0.92 0.89 0.86 0.80 0.81 0.77
ROA/Return on assets (%) *2 4.8 5.7 6.6 6.9 6.8 7.4
ROE/Return on equity (%) *2 8.6 6.4 8.7 10.2 9.7 9.7
Major operating ratio
2012 2013 2014 2015 2016/3 2017/3
CO2 emissions (kt) *3 24 26 26 27 27 28
Waste generation (t) *3 361 339 429 335 315 375
VOC emissions (t) *3 165 175 156 151 147 134
Number of people taking childcare leave *3 10 9 10 8 12 10
Frequency rate of employees leavingdue to industrial accident *3 0 0.53 0.51 0.51 0.25 0
Number of employees 2,944 3,128 3,264 3,418 3,446 3,511Notes:*1 U.S. dollar amounts presented are calculated at the exchange rate as of March 31, 2017 with Japanese yen amounts to U.S. dollar amounts at ¥112.19 to US$1.00. However, for those with a *1 mark, the amounts are
calculated at the average rate during the fiscal year of Japanese yen amounts to U.S. dollar amounts at ¥108.72 to US$1.00.*2 Calculation formulas for each indices EBITDA = Net income before income tax, etc. + Interest expenses + Depreciation expenses ROA = Ordinary income / (Total assets at the end of previous fiscal year + Total assets at the end of current fiscal year) / 2 ROE = Net income of current fiscal year / (Equity at the end of previous fiscal year + Equity at the end of current fiscal year) / 2*3 The emission rate figures of CO2, waste products, VOC, number of people taking childcare leave, and frequency rate of employees leaving due to industrial accident only represent those of domestic locations (excluding affiliates).
ESG data
*1
17 18Pacific Industrial Co.,Ltd. PACIFIC REPORT 2017Pacific Industrial Co.,Ltd. PACIFIC REPORT 2017
Consolidated Financial Statement (Summary)
2016/3 2017/3 2017/3
(Assets)
Current Assets
Cash and time deposits 15,164 13,737 122,451
Trade notes and accounts receivable 15,507 16,257 144,914
Merchandise and finished goods 2,818 4,008 35,727
Work in process 1,894 2,210 19,702
Raw materials and supplies 1,905 1,773 15,809
Deferred tax assets 880 1,075 9,583
Other accounts receivable 2,009 2,034 18,131
Other current assets 516 494 4,411
Allowance for doubtful accounts (25) (32) (291)
Total current assets 40,670 41,559 370,439
Fixed Assets
Property, plant and equipment
Buildings and structures 18,510 17,664 157,450
Machinery and vehicles 22,269 24,948 222,379
Tools, furniture, and fixtures 4,744 5,971 53,227
Land 5,392 5,867 52,301
Lease asset 449 398 3,556
Construction in progress 6,697 10,554 94,076
Total property, plant and equipment 58,065 65,405 582,991
Intangible fixed assets 1,001 994 8,866
Investments and other assets
Investments in securities 24,924 26,230 233,804
Long-term loans 116 1,220 10,877
Deferred tax assets 191 183 1,633
Net defined benefit asset 4,055 4,376 39,013
Other fixed assets 938 903 8,056
Allowance for doubtful accounts (9) (4) (44)
Total Investments and other assets 30,216 32,909 293,341
Fixed assets 89,283 99,310 885,198
Total Assets 129,954 140,869 1,255,637
Millions of yen Thousands ofU.S. dollars
2016/3 2017/3 2017/3
(Liabilities)
Current Liabilities
Trade notes and accounts payable 6,313 7,161 63,831
Electronically recorded obligations - operating 6,208 6,584 58,688
Short-term borrowings 3,480 3,920 34,942
Current portion of long-term borrowings 4,826 1,751 15,615
Other accounts payable 3,633 3,879 34,584
Accrued expenses 983 1,024 9,129
Income taxes payable 910 1,475 13,155
Consumption taxes payable 303 43 392
Deposits received 113 147 1,318
Allowance for bonuses 1,366 1,444 12,872
Allowance for bonuses to directors 69 63 569
Notes concerning installations 54 570 5,087
Other current liabilities 1,842 1,822 16,241
Total current liabilities 30,104 29,890 266,427
Noncurrent Liabilities
Convertible bond 5,635 885 7,888
Long-term borrowings 13,428 17,934 159,857
Deferred tax liabilities 6,223 6,784 60,470
Provision for directors retirement benefit 248 211 1,881
Net defined benefit liabilities 135 151 1,346
Other noncurrent liabilities 934 747 6,662
Total noncurrent liabilities 26,605 26,713 238,107
Total liabilities 56,710 56,603 504,534
(Net Assets)
Shareholders' Equity
Capital stock 4,502 6,877 61,306
Capital surplus 4,800 7,187 64,061
Retained earnings 49,632 55,686 496,358
Treasury stock at cost (294) (283) (2,528)
Valuation and translation adjustment 58,642 69,467 619,199
Valuation and Translation Adjustment
Valuation difference on available securities 10,551 11,481 102,343
Foreign currency translation adjustments 2,861 2,040 18,188
Remeasurement of defined benefit plan 303 374 3,341
Total valuation and translation adjustment 13,716 13,897 123,873
Subscription rights to shares 190 201 1,797
Minority interests 695 699 6,232
Total net assets 73,244 84,266 751,102
Total Liabilities and Net Assets 129,954 140,869 1,255,637
2016/3 2017/3 2017/3
Net Sales 106,886 103,669 953,548
Cost of sales 90,911 86,655 797,049
Gross Profit 15,975 17,014 156,498
Selling, general and administrative expenses 8,105 8,352 76,825
Operating Income 7,869 8,662 79,673
Non-Operating Income
Interest income 59 63 587
Dividend income 608 584 5,373
Equity in earnings of affiliated companies 796 399 3,675
Subsidy income 75 427 3,934
Other non-operating income 259 224 2,068
Non-operating income 1,798 1,700 15,639
Non-Operating Expenses
Interest expense 166 150 1,388
Foreign exchange loss 480 219 2,021
Other non-operating expense 7 34 315
Non-operating expenses 654 405 3,725
Ordinary Income 9,013 9,957 91,587
Extraordinary Income
Gains on sale of fixed assets 11 19 183
Gains on sale of investment securities – 289 2,664
Gains on sale of shares of subsidiaries and associates 44 – –
Gains on sale of fixed assets 55 309 2,847
Extraordinary Losses
Losses on sales and retirements of fixed assets 144 275 2,536
Impairment loss 64 – –
Extraordinary losses 209 275 2,536
Income Before Income Taxes and Minority Interests 8,859 9,991 91,898
Income taxes-current 1,364 2,403 22,111
Income taxes-deferred 378 28 266
Income taxes 1,742 2,432 22,378
Net Income 7,117 7,558 69,519
Profit attributable to non-controlling interests 2 33 307
Profit attributable to owners of parent 7,114 7,524 69,212
Millions of yen Thousands ofU.S. dollars
Consolidated Statements of IncomeConsolidated Balance Sheets
2016/3 2017/3 2017/3
Net Income 7,117 7,558 69,519
Other comprehensive Income
Unrealized gains on available-for-sale securities (4,023) 724 6,460
Foreign currency translation adjustments (2,843) (775) (6,909)
Remeasurements of defined benefit plans (879) 71 637
Share of other comprehensive income of associates accounted for using the equity method (271) 139 1,247
Total other comprehensive income (8,018) 161 1,436
Comprehensive Income (901) 7,719 70,955
Comprehensive income attributable to:
Owners of the parent (833) 7,705 70,832
Comprehensive income attributable to non-controlling interests (68) 13 123
Consolidated Statements of Comprehensive Income
Millions of yen Thousands ofU.S. dollars
Millions of yen Thousands ofU.S. dollars
Department of General Affairs
100 Kyutoku-Cho, Ogaki City, Gifu Prefecture, 503- 8603 Japan
Phone: +81-584-93-0113 Fax: +81-584-92-1804
E-mail: [email protected]
www.pacific-ind.co.jp
’12/06 ’13/01 ’14/01 ’15/01 ’16/01 ’17/01 ’17/05
8,000
24,000
18,000
12,000
6,000
0
2,000
0
4,000
6,000
1,600
800
0
1,200
400
(yen) (yen)
(thousand shares)Trading Volume
Nikkei 225Pacific ind.
Company Profile
Name: Head Office location:
Established:Capital stock: Number of employees:Businesses:
Operations in Japan:
Pacific Industrial Co., Ltd.100 Kyutoku-Cho, Ogaki City, Gifu Prefecture, 503-8603 JapanTEL 0584−91−1111 (main switchboard)August 8, 19304,320 million yen1,680 (consolidated: 3,510)Manufacturing and sales of automotive parts, electric appliance components,electronic devices and other productsEight plants in Japan
JAPAN Taiheiyo Sangyo Co., Ltd.
PI System Co., Ltd.
PEC Holdings Corporation
U.S.A. Pacific Industries USA Inc.
Pacific Manufacturing Ohio, Inc.
Pacific Manufacturing Tennessee, Inc.
Taiwan Pacific Valve (Taiwan) Co., Ltd.
South Korea Pacific Valve Industrial Co., Ltd.
Pacific Air Controls Co., Ltd.
Thailand Pacific Industries (Thailand) Co., Ltd.
China Pacific Industries China Corporation
Tianjin Pacific Auto Parts Co., Ltd.
Changsha Pacific Hanya Auto Parts Co., Ltd.
Pacific Auto Parts Technology (Changshu) Co., Ltd.
Belgium Pacific Industries Europe NV/SA
Group Companies
State of Shares
Number of shares the Company is authorized to issue
90,000,000
Number of shares already issued 60,336,074
Number of shareholders 3,305
Principal Shareholders (top 10)
Shareholder name Number of shares held (thousands of shares)
Shareholding ratio (%)
Japan Trustee Services Bank, Ltd. (Trust Account)
4,784 8.00
The Bank of Tokyo-Mitsubishi UFJ, Ltd. 2,679 4.48
Ogaki Kyoritsu Bank, Ltd. 2,671 4.47
The Juroku Bank, Ltd. 2,619 4.38
Nippon Life Insurance Company 2,359 3.95
The Dai-ichi Mutual Life Insurance Company 2,349 3.93
PEC Holdings Corporation 1,987 3.32
The Master Trust Bank of Japan ,Ltd.(Trust Account)
1,892 3.17
Giken K. K. 1,891 3.16
Employee stock ownership of Pacific Industrial Co.,Ltd.
1,884 3.15
(Note) The shareholding ratio, excluding treasury stock (551,242 shares), is rounded to two decimal places.
Securities companies0.8%
Financial institutions42.9%
Other Japanese corporations12.2%
Treasury stock0.9%
Individuals and others
21.8%
Foreign corporations
21.4%
Distribution of Shares
Stock Price