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A N N U A L R E P O R T 2 0 1 3
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Nifco Inc. is the principal manufacturer of industrial plastic parts and components in Japan with a dominant 70% share of the market. Nifco produces more than 20,000 types of fasteners, plastic components, electrical and electronic parts which it supplies largely to the automobile industry, home electric appliance and white goods manufacturers.
The company was founded in 1967 and was first listed on the Tokyo Stock Exchange in 1979 where its shares are now traded on the First Section of the Exchange.
Nifco’s domestic operations include five production f a c i l i t i e s , t we l ve s a l e s o f f i c e s , a n d fo u r subsidiaries, including Simmons Co. Ltd. and The Japan Times, Ltd. Overseas, Nifco has subsidiaries in China, Germany, Hong Kong, India, Indonesia, Malaysia, Mexico, Poland, Singapore, South Korea, Spain, Taiwan, Thailand, the United Kingdom, the United States, and Vietnam. Nifco also has an affiliated company in Japan.
Company Profile
ContentsTo our shareholders …1Interview with the President …2Financial Highlights …4Financial Review …5Topics 2012/13 …6Five-Year Summary …7Segment information on a consolidated basis …8Outline of Corporate Governance …9Consolidated Balance Sheets …10Consolidated Statements of Income and Comprehensive Income …12Consolidated Statements of Changes in Net Assets …13Consolidated Statements of Cash Flows …14Notes to Consolidated Financial Statements …15Independent Auditors’ Report …27Corporate Data …28
Disclaimer regarding forward-looking statementsThis Annual Report contains forward-looking statements that are statements that do not relate to historical or current facts. These statements are based on the assumptions and beliefs of Nifco Inc. in the light of current information available to it and involve known and unknown risks and uncertainties. Such risks, uncertainties and other factors may cause Nifco Inc.’s actual results to differ from these forward-looking statements. Accordingly, investors are requested to bear this in mind when reading such forward-looking statements.The actual results will depend on the economic conditions in which the Company finds itself, the changes in the market, the exchange rate movement, etc. As such they may materially differ from the forward-looking statements contained in this Annual Report.
Nippon Industrial Fastener Corporation was formed as a joint venture between Nichiei Bussan Co. Ltd. and Illinois Tool Works Inc.
Technical licence agreements were entered into with General Motors, Chrysler, and Ford Motors of the USA.
The building of Nifco’s factory in Maioka, Totsuka, Yokohama was finished.
Nifco and Nichiei Bussan were merged and Nifco’s company head office was moved to Maioka, Totsuka, Yokohama.
The company’s name was changed to Nifco Inc.
Nifco was listed on the Second Section of the Tokyo Stock Exchange.
Nifco’s revenues exceeded ¥10 billion for the first time.
Nifco’s first overseas factory was established in Taiwan.
Nifco’s shares were transferred to the First Section of the Tokyo Stock Exchange.
Nifco established a factory in South Korea.
Nifco established a factory in the USA.
Nifco established a factory in Hong Kong.
Nifco established a factory in Thailand.
Nifco Yamagata Inc. (former name:JT Nifco Co. Ltd.) was established as a joint venture with Japan Tobacco Inc.
Nifco acquired a factory in the United Kingdom.
Nifco established a factory in Malaysia.
Nifco’s consolidated sales exceeded ¥50 billion for the first time.
1967
Company history
1972
1973
1977
1979
1980
1983
1984
1985
1986
19871988
1990
1991
1992
Nifco established a sales office in Singapore.
Nifco established a factory in Shanghai, China.
Simmons Co. Ltd. and The Japan Times, Co. Ltd. joined the Nifco Group.
Nifco acquired a factory in Spain.
Nifco’s consolidated sales exceeded ¥100 billion for the first time.
Nifco Group established a factory in Guangdong Province, China.
Nifco Group established a factory in Vietnam.
Nifco established a factory in Poland.
Nifco established a sales office in Germany.
Nifco established a factory in Kentucky, in the USA.
Nifco Group established Nifco Korea USA Inc.
Nifco established an administrative company, Nifco Enterprise Management (Shanghai) Co. Ltd. in Shanghai, China.
Nifco established factories in Tianjin and Hubei, China.
Nifco established a factory in Gurgaon, India.
Nifco Group established Nifco South India Manufacturing Private Ltd.
Nifco established a factory in Jiangsu and Yancheng, China
Nifco established PT. Nifco Indonesia.
Nifco established Nifco Central Mexico S. de R. L. de C.V.
Nifco opened Nifco Technology Development Centre.Nifco acquired KTS group in Germany.
1995
1996
2001
2002
2005
2006
2007
2008
2010
2011
2012
2013
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However, the resul ts posted by our overseas subsidiaries have been good with an increase in sales and profits in North America. Asia and Europe also showed an increase in income year on year. To deal with increased expansion overseas by our main customers, Nifco has been expanding its overseas production bases in Indonesia, South India, and Central Mexico. A new plant was also recently completed in the U.K. and a new factory is currently under construction in Taiwan. In addition new plants are being planned for Eastern Mexico, China and a stage two development phase is planned for the U.K. As such Nifco is truly becoming a global manufacturing organization. In the housing affiliated product market sales of Nifco’s “finetech” motion parts aimed at enhancing a sense of high-end quality as well as safety and comfort are increasing steadily. In particular our door “soft closers” as well as our storage products for the kitchen etc are increasing in their scope and variation and enjoy a strong reputation in both the domestic and overseas’ markets. This year in 2013 we also started earnest full scale sales in China through our Simmons showrooms in Shanghai. In addition Nifco will also utilize its production bases in China and Southeast Asia to enable overseas supply to its main housing product customers in Japan. In the electronics affiliated market Nifco enjoys the firm trust of its customers to produce and provide high performance parts including fasteners, dampers, clutches and hinges. We have also built a structure of local on the spot production, procurement and development centered mostly in Asia in response to our customers’ shift to globalization. Furthermore, Nifco’s buckle business continues to grow steadily building a global brand presence through tightly knit affiliations with its overseas subsidiaries. In April 2013 Nifco also proudly opened its new Technology Development Centre in Yokosuka city, Kanagawa Prefecture. This facility will function as the company’s key technical research and development hub to meet our customers increasing demands. As such it will also serve as Nifco’s launch pad for new and cutting edge product design. I look forward to the next successful chapters in Nifco’s evolving history. Let us continue to all work together giving our fullest efforts in the growth and development of the company.
During the latter half of this year the Japanese economy started in part to show signs of recovery due to the weakening yen in the market place and higher stock p r i c e s . Fro m a g l o b a l p e r s p e c t i ve we c a n s e e improvements in the North American employment figures and housing markets and recovery seems to be heading in a positive direction but the economic problems and slow down in places like the European and Chinese arenas are impeding economic growth on a broader level. Despite these conditions Nifco Group has continued to perform steadily in terms of supplying its major clientele base in the auto manufacturing industry and sales in North America and across Asia have been on the rise to produce good overall results for the Company. Domestically our performance in the first half of the year helped combat reduced production output in the latter half resulting in a consolidated sales increase of 13.9% year on year. Profits showed a 3% increase year on year as there were start up costs involved with the further global expansion of the business. Regarding the domestic market the government subsidy on eco-friendly vehicles ended last year and as such there has been a slow down of sales in that area. I anticipate that it will take some time before we see a genuine revival there.
Toshiaki OgasawaraChairman & Representative DirectorChief Executive Officer
Chairman’s Message
To our shareholders
ANNUAL REPORT 1
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Interview with the President
President & Representative Director, Chief Operating Officer,Toshiyuki Yamamoto
I would like to take this opportunity as we distribute
our annual report for the 61st term to go over the
business results and our future earnings outlook.
From the second half of FY2012, our plastic injection molding business suffered a decline in sales due to the end of car subsidies and falling demand in China. However, sales of Japanese cars increased in North America and business results were also favorable in Asian and European markets and as such we experienced an increase in sales income on the previous term. In addition sales of high quality bedding products throughout Asia by our subsidiary Simmons Co., Ltd. were also good. Simmons’ sales and profits hit record highs.
Accordingly the consolidated net sales of Nifco Group for FY2012 increased by 13.9% year on year to 139,917 million yen. Operating profit
Q 1 Please outline our business results
ANNUAL REPORT2
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Nifco expects its business performance to weaken slightly in Japan on the back of domestic automobile makers’ plans to cut output. However on a global level we expect Nifco to perform well based on the revival of the U.S. economy as well as due to stable growth in the Asian economies. With this in mind Nifco is continually developing its global manufacturing presence and expanding the number of its manufacturing plants throughout England, Mexico, Korea, and Yancheng China to support its clients’ local operations in those regions.
Based on all of this we predict net sales of 150 billion yen, operating profit of 11.5 billion yen, recurring profit of 11 billion yen and net income of 7 billion yen.
Q 2 What do you think of ourfuture earnings potential?
also increased by 3% year on year to 10,550 million yen. Recurring profit rose to 8.8% year on year to 10,946 million yen.
Our net income fell 22% year on year to 5,349 million yen due mainly to the fact that Nifco Group posted a deferred tax liability on the undistributed profits of all of its overseas subsidiaries as part of a fund distribution review.
It is one of Nifco’s basic policies to give a return to shareholders in the form of dividends. This fiscal term’s trend shows the yield to be a consolidated dividend ratio of 1/3. The mid term dividend result was 23 yen per share and the end term result was 24 yen per share giving a total dividend return of 47 yen per share for the fiscal period.
Furthermore, Nifco shareholders with more than 1,000 shares as of March 31st 2013 received Inaniwa wheat noodles (an Akita prefecture specialty.) We hope that this helps support the revival of Japan’s Tohoku region.
Q 3 Please tell us about the return to shareholders
ANNUAL REPORT 3
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2010 2011 2012
2010 2011
2010 2011 2012
2010 2011 2012
Net Sales (100 million yen)
Operating Income and Operating Profit Ratio (100 million yen) (%)
Net Income (100 million yen)
Total assets/Net assets (100 million yen)
8.0
1,226
790
85
44
1,075
8.3
Operating Income Operating Profit Ratio
Total assets
Net assets
2012
68
2013
53
75
1,228
2013
1,399
1,205
1,348
1,787
812
2013
895
1,279
814
102
10.9
7.5
2013
105
131
Japanese Yen (millions) % change
US Dollars (thousands)except net income
per share, and dividend per share
2013 2012 2013
FOR THE YEAR
Net Sales ¥ 139,917 ¥ 122,880 $ 1,487,687
Operating income 10,550 10,241 112,174
Net income 5,349 6,854 56,874
Net income per share 101.2 128.4 1.08
Dividend per share 47.0 45.0 0.50
AT YEAR-END
Number of outstanding shares (thousands) 52,752 52,967 52,752
Net Assets 89,539 81,202 952,036
US dollar amounts represent translation of Japanese yen, for convenience only, at the rate of 94.05 to US$1.00. In calculating net income per share, net income is adjusted by the interest expenses on the convertible bonds when such bonds are dilutive. The number of outstanding shares shown is adjusted for shares which the Company holds as treasury stock.
Financial Highlights
ANNUAL REPORT4
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1. Business Results
(1) Analysis of Business ResultsDuring the fiscal year under review, economic conditions were back on a recovery track in North America on the back of an improvement in problems in the housing market while the economic growth rate declined in China due to a slowdown of the European economy. In Japan, the economic outlook continued to be uncertain from the second half of the period due to factors including termination of the government’s economic stimulus measures and weak sales of automobiles in China. Under these circumstances, the performance of Japanese automobile manufacturers, the Nifco Group’s major customers, was robust in general overseas as their performance in North America and Asia improved. Performance was robust in Japan in the first half of the period but became sluggish in the second half due to a cut in output by Japanese automobile makers, the Group’s major customers.As a result, the consolidated net sales of the Nifco Group during the fiscal year under review increased 13.9% year on year to 139,916 million yen. On the profit front, consolidated operating profit for the period under review grew 3.0% year on year to 10,549 million yen. This was mainly because profit increased due to the growth in sales although there was an increase in expenses for starting up new operation bases for production expansion. Recurring profit rose 8.8% year on year to 10,946 million yen. Net income declined 22.0% year on year to 5,348 million yen largely because the Group posted deferred tax liability of 1,714 million yen on undistributed profits of its all subsidiaries as part of a review of funds distribution. Business results by main business segment are as follows.
(i) Industrial Plastic Parts and Components Business[For domestic automobile industry]Sales of industrial plastic parts and components for Japanese automobile makers were robust in the first half of the period, combined with the impact of economic stimulus measures implemented by the government. However, they remained weak in the second half of the period due to the impact of an output cut by Japanese automobile makers in response to the termination of the government’s subsidy for purchase of eco-cars and a decline in their car sales in China. On a full-year basis, sales in the Industrial Plastic Parts and Components Business in the fiscal year under review slightly increased from a year earlier. In the Japanese market, compact cars and minicars have become strong-selling car lines and have caused prices of automobiles to decline. To respond to changes in the market environment, Nifco is focusing efforts on developing and selling products that contribute to weight reduction and environment-friendly performance of automobiles. We expect that these products will boost sales not only in Japan but also in advanced countries, as well as in emerging markets, where needs for environmental measures are rising.
[For overseas automobile industry]As for earnings of Nifco’s overseas consolidated subsidiaries, sales at its consolidated subsidiaries in North America increased due to a growth in sales at Japanese automobile makers, as well as a rise in sales at Japanese automobile makers in Asia and Europe. As a result, the total sales at the overseas consolidated subsidiaries rose over the previous period.Profit almost leveled off from a year earlier due in part to start-up costs of operation bases for expansion of production. In the meantime, the Company completed constructing new plants in Indonesia, southern India, central Mexico and the U.K. and is constructing a new plant in Taiwan, with the aim of responding to expansion of overseas production at our customers’ sites. In addition, the Company is planning to construct a second plant in the U.K. and new plants in eastern Mexico and Yancheng in China, in an effort to expand its operation base globally.
[For other industries]In the housing equipment market, sales of “finetech” motion parts, aimed at enhancing a sense of high quality as well as safety and comfort, are increasing steadily. In particular, Nifco’s parts for doors, kitchens and other storage containers are available in a wide range of variations and are highly rated not only in the Japanese market but also in overseas markets. Nifco will utilize showrooms mainly in Shanghai, China, this fiscal year ending March 31, 2014, to launch sales in China on a full-scale basis. In addition, Nifco will utilize its production bases in China and Southeast Asia to respond to full-fledged start of overseas procurement of its major customers in the housing equipment sector in Japan. In the electronics-related market, Nifco is very trusted by customers to produce and provide high-performance parts including fasteners, dampers, clutches and hinges. And it has also built a structure of local development, production and local procurement mainly in Asia, in response to its customers’ shift towards globalization. Further, Nifco’s buckle business is growing steadily to build a global brand through close tie-ups with its overseas subsidiaries.
As a result of the foregoing, consolidated sales from the industrial plastic parts and components business amounted to 120,946 million yen (up 14.7% y-o-y). Operating profit was 12,560 million yen (down 3.0% y-o-y) due in part to the start-up costs of production bases for expansion of products.
(ii) Bedding and Furniture BusinessNifco’s subsidiary, Simmons Co., Ltd., and Asian subsidiaries of Simmons manufacture and sell high-quality beds in Japan and other parts of Asia. The Group’s business brand strategy of pursuing high-quality beds has worked well, and it recorded the best results ever in both sales and profit, with sales growing 10.2% year-on-year to 16,931 million yen and operating profit rising 13.3% year-on-year to 2,255 million yen.
(iii) Other BusinessesNifco’s other business activities center on the newspapers and publishing business, which are operated by its subsidiary, the Japan Times Ltd. The newspapers and publishing business is in a difficult environment due to the diversification of media and a fall in advertising income. Under these circumstances, Nifco made efforts to reduce costs, and sales amounted to 2,039 million yen and operating loss was 245 million yen.The Japan Times Ltd. has recently announced that it will form a business alliance in Japan with the New York Times Company and jointly publish an English newspaper “The Japan Times / International New York Times” starting in October 2013.
[Earnings outlook for FY2013]In terms of the outlook for the operating performance, while Nifco expects its performance in Japan will be weak on the back of domestic automobile manufacturers’ plans to cut output, it projects its performance to be strong based on the prospects for economic recovery in the U.S. and stable growth of the Asian economy.Considering such economic environment, Nifco projects net sales of 150 billion yen, operating profit of 11.5 billion yen, recurring profit of 11 billion yen and net income of 7 billion yen.
Nifco assumed an exchange rate of 85 yen to the US dollar when creating its earnings outlook for FY2013 ending March 31, 2014.
*Cautions to be taken when utilizing earnings projectionsForward-looking statements or projections are based on the judgment of the management of the Company based on currently available information, and include latent risks and uncertainties. Please note that actual results may differ greatly from the forecast figures depending on various factors.
(2) Analysis of Financial Status
(Unit: Millions of yen)FY2012 FY2011 Change
Total assets 178,775 134,886 43,889Shareholders’ equity 87,641 79,674 7,966Shareholders’ equity ratio (%) 49.0 59.1 -10.0p
(Unit: Millions of yen)
FY2012 FY2011 ChangeCash flow from operating activities 11,118 6,584 4,534Cash flow from investing activities (30,503) (17,371) -13,132Cash flow from financing activities 22,868 1,407 21,460Translation gains and losses 1,092 (845) 1,937Increase/decrease in cash and cash equivalents 4,575 (10,224) 14,800Balance of cash and cash equivalents at the beginning of term 28,778 39,002 -10,224Balance of cash and cash equivalents at the end of term 33,353 28,778 4,575
Balance of borrowings and bonds payable at the end of term 54,118 26,818 27,300
Total assets increased 43,889 million yen from the end of the previous term to 178,775 million yen. This was mainly attributable to an increase in cash and deposits of 19,468 million yen as the Company issued straight corporate bonds in the amount of 20 billion yen in October 2012, a rise in tangible fixed assets of 13,631 million yen as it made capital expenditure mainly in Japan and Asia and an increase in notes and accounts receivable of 4,037 million yen with an increase in sales.Total liabilities rose 35,552 million yen compared with the end of the previous fiscal year to 89,237 million yen. This was mainly due to issuance of straight corporate bonds in the amount of 20 billion yen as redemption funds for straight corporate bonds scheduled for May 2013, an increase in long-term loans payable of 3,324 million yen which the Company borrowed at low interest rates to finance capital expenditure and a rise in short-term loans payable of 1,297 million yen.Shareholders’ equity increased 7,966 million yen from the end of the previous term to 87,641 million yen. This was chiefly due to an increase in foreign currency translation adjustments of 5,263 million yen mainly because of the yen’s depreciation against foreign local currencies and a rise in retained earnings of 2,883 million yen.
As a result, the shareholders’ equity ratio dropped 10.0 percentage points year-on-year to 49.0%.
Cash flow from operating activitiesCash flow from operating activities increased 4,534 million yen compared with the end of the previous term to 11,118 million yen. This was mainly due to increased funds from income before income taxes of 10,657 million yen and depreciation of 6,778 million yen despite decreased funds from an increase in trade receivables of 1,648 million yen with an increase in sales, a rise in inventories of 3,005 million yen and payment of corporate taxes of 2,181 million yen.
Cash flow from investing activitiesCash flow used in investing activities increased 13,132 million yen in comparison with the end of the previous term to 30,503 million yen. This was primarily attributable to the expenditure to acquire fixed assets of 15,883 million yen to make a capital expenditure mainly in Japan, Asia, North America and Mexico and a deposit of 15,535 million yen in a term deposit as funds for redemption of straight corporate bonds in the amount of 15 billion yen scheduled for May 2013.
Cash flow from financing activitiesCash flow used in financing activities increased by 21,460 million yen in comparison with the previous term to 22,868 million yen. This was mainly due to proceeds from issuing corporate bonds in the amount of 22,347 million yen chiefly from the second and the third straight corporate bonds issued in October 2012 in Japan.
As a result of the above, the balance of cash and cash equivalents at the end of this term increased by 4,575 million yen, compared to the end of the previous term, to 33,353 million yen.
FY2008 FY2009 FY2010 FY2011 FY2012Shareholders’ equity ratio (%) 64.5 62.5 61.6 59.1 49.0Shareholders’ equity ratio based on market value (%) 50.7 93.4 83.2 88.8 65.7Ratio of cash flows to interest-bearing liabilities (Year) 1.7 1.4 1.5 4.1 4.9Interest coverage ratio (times) 34.9 43.7 46.3 20.9 21.6
Notes: Shareholders’ equity ratio: shareholders’ equity / total assetsShareholders’ equity ratio based on capital value: market capitalization / total assetsRatio of cash flows to interest-bearing liabilities: interest-bearing liabilities / cash flowsInterest coverage ratio: cash flows / interest payment* All indicators are calculated based on consolidated financial figures.* Market capitalization is obtained by multiplying the closing quotation at the end of the term by the number of outstanding shares (after subtracting treasury stock) at the end of the term.* Cash flows from operating activities in the consolidated statement of cash flows are used. Interest-bearing liabilities cover all liabilities which are posted in the consolidated balance sheets and for which interest is paid. Interest paid posted in the consolidated statement of cash flows are used as interest payment.
(3) Basic Policies for Profit Sharing and Dividends for this Term and the Following Terms
Nifco has set the payout ratio for the full year at a third (33%) of the consolidated net income. Based on this basic policy, the Company decided to pay 24 yen per share as the year-end ordinary dividend for the fiscal year ended March 31, 2013. As a result, the annual dividend per share including the interim dividend of 23 yen per share will be 47 yen per share. In the meantime, the dividend forecast for the next fiscal year, the interim dividend is 23 yen, the year-end ordinary dividend is 24 yen, will be 47 yen per share.
Financial Review
ANNUAL REPORT 5
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Topics 2012/2013
Engineers compete in a mold overhaul competition whose aim is to maintain Nifco’s safety, quality and efficiency standards in spite of the traps set.
Nifco Technology Development Centre opensNifco Technology Development Centre (NTEC) opened in April 2013 in Yokosuka Research Park in Yokosuka city, Kanagawa Prefecture. It has 7 floors with 1 basement level. The centre provides a unique working environment where information and idea exchange can be strengthened and new hit products can be launched progressively.
As the focal point for new design, it is hoped that NTEC will help to boost profits through the enterprise of new product lines that can not be imitated by our competitors.
Nifco’s 2nd Skill OlympicsIn December 2012, Nifco’s 2nd Skill Olympics were held at the Nagoya Plant. The event was held with a focus on improving manufacturing ability, developing global staff communication, cultivating and discovering new human resource talent, information sharing and advancing NNP. The Olympics consisted of the following:- 35 competitors from 10 countries and 18 plants- 14 translators- Spectators from 34 plants
Together with other event organizational staff the total number in attendance on the day was over 200 employees. The Olympics lasted 3 days and the atmosphere in the room was that of a focused and serious competition involving mold overhaul, injection molding and precision measurements.
Affiliation with German KTS In the spring of 2013 Nifco Inc. acquired a 100% share of KTS GmbH&Co. KG and its group companies (referred to below as KTS) through Nifco Inc’s subsidiary, Nifco Deutschland GmbH.
KTS is a company which specializes in manufacturing plastic components and is a single integrated operation running from design and development through to manufacture. Its main clients are European auto makers. The company is based in Solingen in the West of Germany. With the acquisition of KTS it is hoped that Nifco can take a first step to strengthen its inroads into the European automakers’ market with increased sales and sales of new products.
*NNP : Nifco New Production Nifco’s production method aimed at eliminating wastage to further reduce costs.
Comfortable work space (4th floor office)
Panoramic view of NTEC Glass wall on the north side to capture the natural surroundings
KTS plant
ANNUAL REPORT6
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For the years ended March 31
(Japanese yen in millions/U.S. Dollars in thousands, except per share amounts)
2013 2012 2011 2010 2009
REVENUES AND EXPENSES:
Net sales ¥ 139,917 $ 1,487,687 ¥ 122,880 ¥ 120,574 ¥ 107,506 ¥ 122,519
Cost of sales 100,075 1,064,061 85,404 81,501 74,927 88,420
Selling, general and administrative
expenses 29,292 331,452 27,235 25,966 24,026 26,861
Operating income 10,550 112,174 10,241 13,107 8,553 7,238
Other income (expenses), net 107 1,138 (72) (1,404) (1,164) (1,734)
Income before income taxes and
minority interests 10,657 113,312 10,169 11,703 7,389 5,504
Income taxes 4,947 52,600 2,938 3,692 2,595 1,495
Minority interests 361 3,838 377 479 326 74
Net income 5,349 56,874 6,854 7,532 4,468 3,935
Comprehensive income 11,338 120,553 4,726 4,481 — —
Net income per share 101.2 1.08 128.4 141.1 83.8 74.6
FINANCIAL POSITION:
Working capital 58,655 623,658 51,108 57,030 55,892 46,029
Property, plant and equipment, net 59,035 627,698 45,404 37,883 35,561 36,515
Total assets 178,776 1,900,861 134,887 127,925 122,671 112,140
Long-term indebtedness 32,825 349,016 21,968 20,256 18,296 15,832
Net assets 89,539 952,036 81,202 81,438 79,068 74,559
OTHER DATA:
Cash dividends, applicable to
the year 2,478 26,348 2,394 2,404 1,599 2,878
Cash dividends, per share 47.0 0.50 45.00 45.00 30.00 54.00
Net assets per share 1,661.36 17.66 1,504.22 1,473.85 1,438.56 1,355.98
Shares outstanding as of each
balance sheet date 52,752,820 52,967,666 53,435,351 53,302,340 53,304,116
Capital expenditures 18,522 196,938 17,057 9,661 5,575 11,475
Depreciation 6,778 72,068 6,038 5,739 6,624 7,979
Number of employees as of
each balance sheet date 7,979 6,437 5,886 5,427 5,443
ANNUAL REPORT 7
Five-Year Summary
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1,054
1,042
Injection Molded Plastic Parts and Components Sales (100 million yen)
FY2010
FY2011
1,209FY2012
86%
Bedding and Furniture Business
Other Businesses
2%
153
141
Bedding and Furniture Sales (100 million yen)
FY2010
FY2011
169FY2012
Segment information on a consolidated basisFasteners, Cup-holders, Dampers, Latches,Fuel-related components, Housing-related components, Buckles etc.
Nifco’s other business activities center on the newspaper and publishing business which are operated through its subsidiary The Japan Times. The newspaper and publishing business is in a difficult situation due to media diversification and falling advertising revenue. However, efforts have been made to reduce costs and sales amounted to 2,039 million yen and operating loss was 245 million yen.
Nifco’s subsidiary Simmons Co., Ltd, and its Asian subsidiaries manufacture and sell top end beds in Japan and throughout Asia. The Group’s business brand strategy of pursuing the high-end bed market has worked well and it has posted record results. Sales grew year on year by 10.2% to reach 16,931 million yen and operating profit rose 13.3% year on year to 2,255 million yen.
12%
Segment information on a consolidated basis
Industrial Plastics Parts and Components Business
Nifco’s core business suffered a decline in sales due to the end of domestic car subsidies and falling sales demand in China. However, sales of Japanese cars increased in North America and business results were also favorable in Asian and European markets. As a result consolidated sales amounted to 120,947 million yen (up 14.7% year on year.) Operating profit was 12,561 million yen (down 3% year on year.) This fall was due largely in part to the start-up costs of production bases to expand our product lines.
ANNUAL REPORT8
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Nifco’s basic policy towards corporate governance
(1) The Company adopts the statutory auditor system and has a board of auditors. Following the annual shareholders’ meeting held on June 27th 2013 in line with the submission date of the Company’s Listed Securities Report, there are currently 6 directors (including 2 external directors) and 4 auditors (including 2 external auditors.)
Nifco’s corporate governance and organizational execution outline
(2) The board of directors is a decision-making body and also serves to formulate subsidiary company management strategy with a view to enhance performance results and strengthen not only growth but corporate governance as well.
In particular, Nifco believes that the inclusion of 2 external directors helps to offer independent and useful perspectives and insights at the board meetings thus helping to enhance and reinforce the Group’s corporate governance.
The board of directors has one regular meeting each month and special meetings when necessary. In fiscal 2012 the board convened 13 times and the board of auditors convened 14 times.
There are also regular meetings of senior managers at the Company consisting of directors, auditors, executive officers and other senior managers usually held once a week at which relatively important issues and proposals that need not be put to the board of directors are deliberated and reported.
Furthermore in order to ensure that the dealings and decisions of directors are in compliance with the law and the Company’s articles of incorporation and that the business of the group companies is run properly the following committees have been established and organized under the board of directors since 2007. These are the Risk Management Committee, the Internal Controls Committee, and with regards to financial reporting, the Compliance Committee and the Information Security Committee.
These committees promote corporate governance through their careful activities. In fiscal 2012 they met the following number of times:
Risk Management Committee 5 timesInternal Controls Committee 4 timesCompliance Committee 5 timesInformation Security Committee 3 times
The Company’s executive directors bear responsibility for executing the Company’s business but the executive officer system was also introduced in order to make sure of a speedy and efficient business execution by delegating part of these executive directors’ responsibilities to the executive officers. To this end the board of directors is responsible for scrutinizing the execution of the work of representative directors and executive directors and also for scrutinizing the work of the executive officers.
Outline of Corporate Governance
Nifco is also actively making products for the medical field. Nifco has started to manufacture and supply a new “square r ing” to the top t ie r manufacturer DAIYA MANUFACTURING LTD., for use with its lower back support product.
Nifco’s “square ring” ensures that the tape runs in the right direction on a smooth mount and does not twist, ensuring a suitable fit at all times. The design is also ultra strong and super slim and adjusts to the shape of the body.
Nifco will continue to pioneer and launch original designs that contribute to our health and well being.
Nifco Product TriviaMedical Supporter
ANNUAL REPORT 9
010_0594001372508.indd 9 2013/08/08 17:52:24
ANNUAL REPORT10
AS OF MARCH 31, 2013 AND 2012
A S S E T S Japanese Yen(millions)
U.S. Dollars(thousands)
2013 2012 2013
CURRENT ASSETS:
Cash and cash equivalents (Note 9) ¥ 33,354 ¥ 28,778 $ 354,641
Time deposits (Note 9) 15,776 990 167,741
Marketable securities (Note 9, 10) 6,342 4,616 67,432
Trade receivables: (Note 9)
Notes 5,394 4,210 57,352
Accounts 26,437 23,583 281,095
Less- Allowance for doubtful accounts (92) (75) (978)
Inventories (Note 3) 17,442 12,684 185,455
Deferred income taxes and other (Note 15) 4,800 4,978 51,037
Total current assets 109,453 79,764 1,163,775
PROPERTY, PLANT AND EQUIPMENT:
Land (Note 4,5) 15,725 14,283 167,198
Buildings and structures (Note 5) 35,736 25,933 379,968
Machinery and equipment (Note 5,8) 41,373 33,254 439,904
Molds and dies 55,063 51,878 585,465
Other 4,070 5,539 43,276
151,967 130,887 1,615,811
Less- Accumulated depreciation (92,932) (85,483) (988,113)
Net property, plant and equipment 59,035 45,404 627,698
INVESTMENTS AND OTHER ASSETS:
Investment securities (Note 9, 10) 5,384 6,872 57,246
Goodwill 369 290 3,923
Deferred income taxes and other (Note 15) 4,535 2,557 48,219
Total investments and other assets 10,288 9,719 109,388
Total assets ¥178,776 ¥134,887 $1,900,861
Consolidated Balance Sheets
011_0594001372508.indd 10 2013/08/07 16:01:59
ANNUAL REPORT 11
AS OF MARCH 31, 2013 AND 2012
LIABILITIES AND NET ASSETS Japanese Yen(millions)
U.S. Dollars(thousands)
2013 2012 2013
CURRENT LIABILITIES:
Short-term borrowings (Note 9, 13) ¥ 5,995 ¥ 4,698 $ 63,743
Current portion of long-term indebtedness (Note 9, 14) 15,299 153 162,669
Trade payables: (Note 9)
Notes 1,548 1,726 16,459
Accounts 12,520 12,122 133,121
Other payables (Note 9) 2,386 2,146 25,369
Accrued bonuses 1,441 1,341 15,322
Accrued income taxes (Note 9, 15) 2,165 1,076 23,020
Other 9,444 5,394 100,414
Total current liabilities 50,798 28,656 540,117
LONG-TERM LIABILITIES:
Long-term indebtedness (Note 9, 14) 32,825 21,968 349,016
Liability for severance and retirement benefits (Note 12) 2,183 1,900 23,211
Deferred income taxes and other (Note 15) 3,431 1,161 36,481
Total long-term liabilities 38,439 25,029 408,708
NET ASSETS: (Note 16)
Shareholders’ equity
Common stock
Authorized – 233,000,000 shares
Issued – 53,754,477 shares 7,290 7,290 77,512
Capital surplus 11,651 11,651 123,881
Retained earnings 77,488 74,605 823,902
Treasury stock, at cost – 1,001,657 shares in 2013 and
786,811 shares in 2012 (2,123) (1,771) (22,573)
Total shareholders’ equity 94,306 91,775 1,002,722
Accumulated other comprehensive income
Net unrealized gains on securities, net of tax 444 272 4,721
Land revaluation difference, net of tax (Note 4) (86) (86) (914)
Foreign currency translation adjustments (7,022) (12,286) (74,663)
Total accumulated other comprehensive income (6,664) (12,100) (70,856)
Minority interests 1,897 1,527 20,170
Total net assets 89,539 81,202 952,036
Total liabilities and net assets ¥ 178,776 ¥ 134,887 $ 1,900,861
The accompanying notes to consolidated financial statements are an integral part of these balance sheets.
011_0594001372508.indd 11 2013/08/07 16:01:59
ANNUAL REPORT12
FOR THE YEARS ENDED MARCH 31, 2013 AND 2012
Japanese Yen(millions)
U.S. Dollars(thousands)
2013 2012 2013
NET SALES ¥ 139,917 ¥ 122,880 $ 1,487,687
COST OF SALES 100,075 85,404 1,064,061 GROSS PROFIT 39,842 37,476 423,626
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES 29,292 27,235 311,452 OPERATING INCOME 10,550 10,241 112,174
OTHER INCOME (EXPENSES):Interest expense (515) (300) (5,476)Interest and dividend income 268 293 2,850 Gain on sale of investment securities — 207 —Gain on sale of property, plant and equipment 62 259 659 Loss on disposal of property, plant and equipment (28) (167) (298)Exchange gain (loss) on foreign currency transactions 599 (342) 6,369 Investment loss on equity method (4) (4) (43)Bond issuance cost (110) — (1,170)Loss on valuation of derivatives (138) — (1,467)Impairment loss of investment securities (116) (120) (1,233)Impairment loss of fixed assets (Note 5) (193) (22) (2,052)Gain on liquidation of subsidiaries — 281 —Loss on disaster (Note 6) — (505) —Gain on negative goodwill — 136 —Other income, net 282 212 2,999
INCOME BEFORE INCOME TAXES AND MINORITY INTERESTS 10,657 10,169 113,312
PROVISION FOR INCOME TAXES: (Note 15)Current 3,440 2,515 36,576 Deferred 1,507 423 16,024
NET INCOME BEFORE MINORITY INTERESTS 5,710 7,231 60,712
MINORITY INTERESTS (361) (377) (3,838)
NET INCOME 5,349 6,854 56,874
MINORITY INTERESTS 361 377 3,838
NET INCOME BEFORE MINORITY INTERESTS 5,710 7,231 60,712
OTHER COMPREHENSIVE INCOME: (Note 7)Net unrealized gains on securities, net of tax 172 58 1,829 Land revaluation difference, net of tax — (7) —Foreign currency translation adjustments 5,456 (2,557) 58,012 Share of other comprehensive income of associates accounted
for using equity method — 1 —COMPREHENSIVE INCOME ¥ 11,338 ¥ 4,726 $ 120,553
TOTAL COMPREHENSIVE INCOME ATTRIBUTABLE TO:
Comprehensive income attribute to owners of the parent ¥ 10,785 ¥ 4,454 $ 114,673Comprehensive income attribute to minority interests 553 272 5,880
Japanese Yen U.S. Dollars
PER SHARE AMOUNTS: (Note 17) 2013 2012 2013Net income:
Basic ¥ 101.22 ¥ 128.4 $ 1.08Diluted — 128.4 —
Cash dividends, applicable to the year 47.0 45.0 0.50
The accompanying notes to consolidated financial statements are an integral part of these statements
Consolidated Statements of Income and Comprehensive Income
011_0594001372508.indd 12 2013/08/07 16:01:59
ANNUAL REPORT 13
FOR THE YEARS ENDED MARCH 31, 2013 AND 2012
Japanese Yen (millions)
Shareholders’ equityAccumulated other comprehensive
income
Minority interests Total
Common stock
Capital surplus
Retained earnings
Treasury stock
Net unrealized gains on
securities, net of tax
Land revaluation difference, net of tax
Foreign currency
translation adjustments
Balance as of April 1, 2011 ¥7,290 ¥11,651 ¥70,264 ¥ (749) ¥214 ¥(79) ¥ (9,836) ¥2,683 ¥81,438
Net income 6,854 6,854
Dividends paid (2,512) (2,512)
Acquisition of treasury stock (1,050) (1,050)
Disposal of treasury stock (1) 28 27
Net changes during the year 58 (7) (2,450) (1,156) (3,555)
Balance as of April 1, 2012 ¥7,290 ¥11,651 ¥74,605 ¥(1,771) ¥272 ¥(86) ¥(12,286) ¥1,527 ¥81,202
Net income 5,349 5,349
Dividends paid (2,430) (2,430)
Acquisition of treasury stock (604) (604)
Disposal of treasury stock (36) 252 216
Net changes during the year 172 5,264 370 5,806
Balance as of March 31, 2013 ¥7,290 ¥11,651 ¥77,488 ¥(2,123) ¥444 ¥(86) ¥ (7,022) ¥1,897 ¥89,539
U.S. Dollars (thousands)
Shareholders’ equityAccumulated other comprehensive
income
Minority interests Total
Common stock
Capital surplus
Retained earnings
Treasury stock
Net unrealized gains on
securities, net of tax
Land revaluation difference, net of tax
Foreign currency
translation adjustments
Balance as of April 1, 2012 $77,512 $123,881 $793,248 $(18,830) $2,892 $(914) $(130,633) $16,236 $863,392
Net income 56,874 56,874
Dividends paid (25,837) (25,837)
Acquisition of treasury stock (6,422) (6,422)
Disposal of treasury stock (383) 2,679 2,296
Net changes during the year 1,829 55,970 3,934 61,733
Balance as of March 31, 2013 $77,512 $123,881 $823,902 $(22,573) $4,721 $(914) $ (74,663) $20,170 $952,036
The accompanying notes to consolidated financial statements are an integral part of these statements.
Consolidated Statements of Changes in Net Assets
011_0594001372508.indd 13 2013/08/07 16:01:59
ANNUAL REPORT14
FOR THE YEARS ENDED MARCH 31, 2013 AND 2012
Japanese Yen(millions)
U.S. Dollars(thousands)
2013 2012 2013
CASH FLOWS FROM OPERATING ACTIVITIES:Income before income taxes and minority interests ¥10,657 ¥10,169 $113,312 Adjustments to reconcile income before income taxes and
minority interests to net cash provided by operating activities:Depreciation 6,778 6,038 72,068 Impairment loss of fixed assets 193 22 2,052 Gain on negative goodwill — (136) —Gain on liquidation of subsidiaries — (281) —Amortization of goodwill 52 41 553 Increase (decrease) in allowance for doubtful receivables (119) (62) (1,265)Increase (decrease) in accrued bonuses 85 86 904Increase (decrease) in retirement allowances 250 143 2,658Impairment loss of investment securities 116 120 1,233Interest and dividends income (268) (293) (2,850)Interest expense 515 300 5,476 Exchange (gain) loss on foreign currency transactions (691) 49 (7,347)Gain on sale of property, plant and equipment (62) (259) (659)Loss on disposal of property, plant and equipment 28 167 298Gain on sale of investment securities — (207) —
Changes in assets and liabilities, net(Increase) decrease in trade receivables (1,649) (5,428) (17,533)(Increase) decrease in inventories (3,006) (2,300) (31,962)(Increase) decrease in other assets 761 (662) 8,091Increase (decrease) in trade payables (979) 2,050 (10,409)Increase (decrease) in other liabilities 562 178 5,976Other, net 322 525 3,423
Subtotal 13,545 10,260 144,019
Interest income and dividends received 270 298 2,871 Interest paid (514) (315) (5,465)Income taxes paid (2,182) (3,658) (23,201)
Net cash provided by operating activities 11,119 6,585 118,224
CASH FLOWS FROM INVESTING ACTIVITIES:Increase in time deposits (15,535) (1,515) (165,178)Decrease in time deposits 849 1,835 9,027 Purchase of marketable securities (7,054) (3,000) (75,003)Proceeds from sale of marketable securities 6,536 2,547 69,495Additions to property, plant and equipment (15,883) (16,063) (168,878)Proceeds from sale of property, plant and equipment 92 1,445 978 Purchase of investment securities (571) (2,113) (6,071)Proceeds from sale of investment securities 1,023 812 10,877 Purchase of investments in subsidiaries (40) (1,041) (425)Other, net 79 (279) 840
Net cash used in investing activities (30,504) (17,372) (324,338)
CASH FLOWS FROM FINANCING ACTIVITIES:Proceeds from short-term borrowings 20,655 10,725 219,617 Repayments of short-term borrowings (20,230) (6,337) (215,098)Proceeds from long-term indebtedness 3,497 2,809 37,182Proceeds from issuance of bonds 22,347 — 237,608Repayments of long-term indebtedness (378) (1,930) (4,019)Purchase of treasury stock (604) (1,050) (6,422)Proceeds from sale of treasury stock 214 22 2,275Cash dividends paid (2,429) (2,513) (25,827)Cash dividends paid for minority interest (199) (311) (2,116)Other, net (5) (7) (53)
Net cash provided by financing activities 22,868 1,408 243,147EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS 1,093 (845) 11,622NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 4,576 (10,224) 48,655CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR 28,778 39,002 305,986CASH AND CASH EQUIVALENTS AT END OF YEAR ¥33,354 ¥28,778 $354,641
The accompanying notes to consolidated financial statements are an integral part of these statements.
Consolidated Statements of Cash Flows
011_0594001372508.indd 14 2013/08/07 16:01:59
ANNUAL REPORT 15
1. BASIS OF PRESENTATION OF THE CONSOLIDATED FINANCIAL STATEMENTS
The accompanying consolidated financial statements have been prepared
in accordance with the provisions set forth in the Japanese Financial
Instruments and Exchange Act and its related accounting regulations, and
in conformity with accounting principles generally accepted in Japan
(“Japanese GAAP”), which are different in certain respects as to application
and disclosure requirements of International Financial Reporting Standards.
The accounts of consolidated foreign subsidiaries are prepared in
accordance with either International Financial Reporting Standards or U.S.
generally accepted accounting principles, with adjustments for the
specified five items as applicable.
The accompanying consolidated financial statements have been
restructured and translated into English from the consolidated financial
statements of Nifco Inc. (the Company) and its consolidated subsidiaries
prepared in accordance with Japanese GAAP and filed with the appropriate
Local Finance Bureau of the Ministry of Finance as required by the Financial
Instruments and Exchange Act.
Certain supplementary information included in the statutory Japanese
language consolidated financial statements, but not required for fair
presentation, is not presented in the accompanying consolidated financial
statements.
The translations of the Japanese yen amounts into U.S. dollars are included
solely for the convenience of readers outside Japan, using the prevailing
exchange rate at March 31, 2013, which was ¥94.05 to US$1.00.
The convenience translations should not be construed as representations
that the Japanese yen amounts have been, could have been, or could in
the future be, converted into U.S. dollars at this or any other rate of
exchange.
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
(1) Significant Accounting Policies(a) Principles of Consolidation The consolidated financial statements include the accounts of the
Company and those of its majority-owned subsidiary companies. All
significant intercompany transactions and accounts are eliminated in
consolidation.
In the elimination of investments in subsidiaries, the portion of assets
and liabilities of a subsidiary attributable to the subsidiary’s shares
acquired by the Company is evaluated at the fair value as of the
respective dates when such shares were acquired. The amounts of
assets and liabilities attributable to minority shareholders of the
subsidiary are determined using the financial statements of the
subsidiary.
The excess of cost over the underlying net assets at acquisition dates
of investments in subsidiaries and affiliates is recognized as goodwill
and, is being amortized using the straight-line method over the period
when investment effect appears.
(b) Equity Method Investments in affiliated companies are accounted for under the
equity method. Affiliated companies are defined as the companies of
which the Company owns 20% to 50% of the voting rights, and the
companies of which the Company has at least 15% and less than
20% of the voting rights in the cases where the Company has the
ability to exercise significant influence over operating and financial
policies of the investees.
(c) Securities Securities are classified into: (1)debt securities intended to be held to
maturity (hereafter, “held-to-maturity securities”), or (2) all other
securities that are not classified as trading securities or in any of the
above categories (hereafter, “available-for-sale securities”).
Held-to-maturity securities are stated at amortized cost.
Available-for-sale securities with market values are stated at market
values, and the corresponding unrealized gains or losses, net of
applicable income taxes, are reported as a component of net assets.
Realized gains and losses on sale of such securities are computed using
average cost or moving-average cost. Other available-for-sale securities
with no available market value are stated at cost, as determined by the
moving average method, after taking into consideration devaluation, if
any, for permanent impairment.
(d) Derivatives The Company employs derivative financial instruments and basically
recognizes the derivative instruments as assets or liabilities in the
consolidated balance sheets. Derivative financial instruments are
initially recognized at cost and subsequently measured at fair value at
the balance sheet date with movements recorded in the consolidated
statements of income and comprehensive income.
(e) Inventories Inventories, except for molds and dies, are stated at cost (balance
sheet amount is calculated by writing down to reflect decrease in
profitability) mainly by the periodic average method. Molds and dies,
included in finished goods and work-in-process, are stated at cost
(balance sheet amount is calculated by writing down to reflect
decrease in profitability) by specific identification method.
(f) Property, Plant and Equipment (except for leased properties) Depreciation of property, plant and equipment except for leased
properties is computed primarily by using the declining-balance
method over their estimated useful lives. However, buildings acquired
on or after April 1, 1998 are depreciated by using the straight-line
method.
The useful lives for the years ended March 31, 2013 and 2012 are as
follows:
2013 2012Buildings and structures 2-50 years 2-50 yearsMachinery and equipment 2-15 years 2-13 yearsMolds and dies 2-11 years 2-11 years
Ordinary maintenance and repairs are charged to the consolidated
statements of income and comprehensive income as incurred. Major
replacements and improvements are capitalized. When properties are
retired or otherwise disposed of, the property and related accumulated
depreciation accounts are relieved of the applicable amounts and any
differences are included in other income (expenses).
(g) Software Costs (except for leased properties) The Company and its consolidated domestic subsidiaries amortize
software except for leased properties for internal use using the
straight-line method over its estimated useful life (5 years).
Notes to Consolidated Financial Statements
011_0594001372508.indd 15 2013/08/07 16:01:59
ANNUAL REPORT16
(h) Leased properties The Company and its consolidated domestic subsidiaries account for
finance leases commenced prior to April 1, 2008 which do not transfer
the ownership of the leased property to the lessee as operating leases
with disclosures of certain “as if capitalized” information. The
Company and its consolidated domestic subsidiaries adopted a new
accounting standard and capitalized finance leases which commenced
after March 31, 2008, except for certain immaterial or short-term
finance leases, which are accounted for as operating leases.
(i) Allowance for doubtful accounts The Company and its consolidated subsidiaries provide an allowance
for doubtful accounts in an amount sufficient to cover possible losses
on collection by estimating individually uncollectible amounts and
applying a percentage based on collection experience to the remaining
accounts.
(j) Accrued bonuses Accrued bonuses is provided at an expected payment amount of the
bonuses to employees attributable to the fiscal year.
(k) Severance and retirement benefits Under Japanese accounting standard, the liabilities and expenses for
employees’ severance and retirement benefits are determined based
on the amounts actuarially calculated using certain assumptions.
The Company and its consolidated subsidiaries provided allowance for
employees’ severance and retirement benefits at March 31, 2013 and
2012 based on the estimated amounts of projected benefit obligation
and the fair value of the plan assets at that date.
Actuarial gains and losses are amortized by the straight-line method
from the year or the following year in which they occur over a period
of 5-10 years, which is less than the estimated remaining service
period of employees. Certain consolidated subsidiaries recognize
actuarial gains or losses in the year in which they occur.
Unrecognized prior service cost is amortized by the straight-line
method over a period of 5-10 years, which is less than estimated
average remaining service period of employees.
(l) Foreign Currency Translation All short-term and long-term monetary receivables and payables
denominated in foreign currencies are translated into Japanese yen at
the exchange rates at the balance sheet date. The foreign exchange
gains and losses from translation are charged to income. The financial
statements of the Company’s consolidated foreign subsidiaries are
translated into Japanese yen at the current rates for assets and
liabilities and historical rates for shareholders’ equity accounts. The
resulting foreign currency translation adjustments are included in
“Foreign currency translation adjustments” and “Minority interests” in
the net assets of the accompanying consolidated balance sheets.
(m) Hedge Accounting If derivative financial instruments are used as hedges and meet certain
hedging criteria, the Company and its domestic subsidiaries defer
recognition of the gain or loss resulting from a change in fair value of
the derivative financial instrument until the related loss or gain on the
hedged item is recognized.
However, in cases where forward foreign exchange contracts are used
as hedges and meet certain hedging criteria, forward foreign exchange
contracts and hedged items are accounted for in the following
manner:
(1) If a forward foreign exchange contract is executed to hedge an
existing foreign currency receivable or payable, (a) the difference, if
any, between the Japanese yen amount of the hedged foreign
currency receivable or payable translated using the spot rate at the
inception date of the contract and the book value of the receivable
or payable is recognized in the consolidated statements of income
and comprehensive income in the period which includes the
inception date, and (b) the discount or premium on the contract
(that is, the difference between the Japanese yen amount of the
contract translated using the contracted forward rate and that
translated using the spot rate at the inception date of the contract)
is recognized over the term of the contract.
(2) If a forward foreign exchange contract is executed to hedge a
future transaction denominated in a foreign currency, the future
transaction will be recorded using the contracted forward rate, and
no gain or loss on the forward foreign exchange contract will be
recognized.
Also, if interest rate swap contracts are used as hedges and meet
certain hedging criteria, the net amount to be paid or received under
the interest rate swap contract is added to or deducted from the
interest on the assets or liabilities for which the swap contract was
executed.
(n) Cash and Cash equivalents Cash and cash equivalents include cash on hand, readily available
deposits and short-term highly liquid investments with original
maturities of three months or less.
(o) Consolidated tax return system The Company and certain domestic subsidiaries obtained an approval
for the consolidated tax return system during the year ended March
31, 2011 and adopted the consolidated tax return system in Japan
effective from the year ended March 31, 2012.
(p) Income Taxes Deferred tax assets or liabilities are computed based on the differences
between the financial statement and income tax basis of assets and
liabilities using the enacted marginal tax rate. The provision for income
taxes is computed based on the pretax income for financial reporting
purposes and included in the consolidated statements of income and
comprehensive income.
(q) Research and Development Expenses relating to research and development activities have been
charged to consolidated statements of income and comprehensive
income as incurred and amounted to ¥1,777 million ($18,894
thousand) and ¥1,629 million for the years ended March 31, 2013 and
2012, respectively.
(r) Reclassification Certain prior year amounts have been reclassified to conform to the
current year presentation. These changes had no impact on previously
reported results of operations or retained earnings.
(s) Accounting Standards Issued but Not Yet Adopted • ”Accounting Standard for Retirement Benefits” (ASBJ Statement No.
26, May 17, 2012)
• ”Guidance on Accounting Standard for Retirement Benefits” (ASBJ
Guidance No. 25, May 17, 2012)
Notes to Consolidated Financial Statements
011_0594001372508.indd 16 2013/08/07 16:01:59
ANNUAL REPORT 17
(1) Summary
Under the amended rule, actuarial gains and losses and past
service costs that are yet to be recognized in profit or loss would
be recognized within the net asset section, after adjusting for tax
effects, and the deficit or surplus would be recognized as a
liability or asset without any adjustments.
(2) Effective dates
Effective for the end of annual periods ending on or after March
31, 2014.
(3) Effect of application of the standard
The Company and its consolidated domestic subsidiaries are
currently in the process of determining the effects of these new
standards on the consolidated financial statements.
3. INVENTORIESInventories as of March 31, 2013 and 2012 consist of the following:
Japanese Yen(millions)
U.S. Dollars(thousands)
2013 2012 2013Finished goods and merchandise ¥10,225 ¥ 7,488 $108,719 Work-in-process and raw materials 7,217 5,196 76,736
Total ¥17,442 ¥12,684 $185,455
4. LAND REVALUATION DIFFERENCEIn accordance with the Partial Revision to the Land Revaluation Law (Law
No.34, enacted on March 31, 1998, the “Law”), land owned by a certain
consolidated subsidiary for business use was revaluated as of March 31,
2002. Unrealized losses on the revaluation of the land are included in net
assets as “Land revaluation difference, net of tax”. Deferred taxes of
unrealized losses are included in “Deferred income taxes and other” under
investments and other assets in the consolidated balance sheets as of
March 31, 2013 and 2012. According to the Law, the Company and its
consolidated subsidiaries are not permitted to revalue the land after April
1, 2002.
5. IMPAIRMENT LOSS OF FIXED ASSETS In the fiscal year ended March 31, 2013, the Company recorded
impairment loss on the following asset.
Location Use Type of asset
Nifco UK. Ltd.(Cleveland, U.K.) Idle assets
Buildings and structuresMachinery and equipmentLand
The Company and consolidated subsidiaries’ business assets for internal
use are grouped by the unit of office or consolidated subsidiary, and lease
properties and assets to be disposed (idle assets) are grouped by individual
property.
The impairment loss by each category of property, plant and equipment is
as follows:
Japanese Yen(millions)
U.S. Dollars(thousands)
2013Buildings and structures ¥157 $1,669Machinery 31 330Land 5 53
Total ¥193 $2,052
In the fiscal year ended March 31, 2012, the Company has no significant items to note.
6. LOSS ON DISASTERLoss on disaster was capacity utilization variance due to the Great East
Japan Earthquake.
7. ACCOUNTING STANDARDS FOR PRESENTATION OF COMPREHENSIVE INCOME
Amounts reclassified to net income in the current period that were
recognized in other comprehensive income in the current or previous
periods and tax effects for each component of other comprehensive
income for the years ended March 31, 2013 and 2012 are as follows:
Japanese Yen(millions)
U.S. Dollars(thousands)
2013 2012 2013Net unrealized gains on securities
Increase during the year ¥ 267 ¥ 209 $ 2,839Reclassification adjustments — (148) —
Sub-total, before tax 267 61 2,839Tax expense (95) (3) (1,010)
Sub-total, net of tax 172 58 1,829Land revaluation difference
Increase during the year — — —Reclassification adjustments — — —
Sub-total, before tax — — —Tax expense — (7) —
Sub-total, net of tax — (7) —Foreign currency translation adjustments
Decrease during the year 5,456 (2,273) 58,012Reclassification adjustments — (284) —
Sub-total, before tax 5,456 (2,557) 58,012Tax expense — — —
Sub-total, net of tax 5,456 (2,557) 58,012Share of other comprehensive income of associates accounted for using equity method
Reclassification adjustments — 1 —Total other comprehensive income ¥5,628 ¥(2,505) $59,841
8. LEASESInformation as lesseeAs discussed in Note 2. (1), finance lease commenced prior to April 1,
2008 which do not transfer ownership of leased assets to lessees are
accounted for as operating leases.
Assumed amounts of acquisition cost and accumulated depreciation as of
March 31, 2013 and 2012 are as follows:
Details of the leased assets:
Japanese Yen(millions)
U.S. Dollars(thousands)
2013 2012 2013Machinery and equipment ¥— ¥14 $— Accumulated depreciation — (12) —Net ¥— ¥ 2 $—
011_0594001372508.indd 17 2013/08/07 16:01:59
ANNUAL REPORT18
Information related to finance leases for the years ended March 31, 2013
and 2012 was as follows:
Japanese Yen(millions)
U.S. Dollars(thousands)
2013 2012 2013Lease expenses ¥2 ¥17 $21 Depreciation expense 2 17 21
Future minimum lease payments, including the portion of interest thereon,
as of March 31, 2013 and 2012 was as follows:
Japanese Yen(millions)
U.S. Dollars(thousands)
2013 2012 2013Finance leases:
Due within one year or less ¥— ¥2 $—Due after one year — — —
¥— ¥2 $—
Future non-cancelable operating leases payments for the years ended
March 31, 2013 and 2012 was as follows
Japanese Yen(millions)
U.S. Dollars(thousands)
2013 2012 2013Non-cancelable operating leases:
Due within one year or less ¥ 411 ¥314 $ 4,370 Due after one year 1,107 631 11,770
¥1,518 ¥945 $16,140
9. FINANCIAL INSTRUMENTSA. Qualitative information on financial instruments
(1) Policies for using financial instruments
The Company and its consolidated subsidiaries use the bank
borrowings and the bond issuances mainly for the purpose of
capital expenditures. Saving accounts are mainly used for the
purpose of short-term working capitals. Bonds and time deposits
are mainly used for the long-term working capitals. The derivative
transactions have the purpose of mitigating future risk shown in the
following, and the speculative purposes are prohibited.
(2) Details of financial instruments used and the exposures to risk and
how they arise
Trade receivables are exposed to credit risk in relation to customers.
In addition, foreign currency trade receivables are exposed to the
risk of fluctuation in foreign currency exchange rate.
Securities, which mainly consist of held-to-maturity securities,
bonds, certificate of deposits, shares relating to the business
relationship and investments for partnership, are exposed to the risk
of fluctuation of market value.
Most of trade and other payables have maturity for payment within
one year. In addition, foreign currency payables are exposed to the
risk of fluctuation in foreign currency exchange rate.
Borrowings and long-term indebtedness are mainly for the purpose
of capital expenditures. The longest maturity contract is 22 years as
of March 31, 2013. In addition, the Company and its consolidated
subsidiaries use derivative transaction (interest rate swap) for the
purpose of mitigating the risk of floating interest rate.
Derivative transactions are forward foreign exchange contracts for
the purpose of mitigating future risk of fluctuation in foreign
currency exchange rate related to foreign currency receivables or
payables, and interest rate swap contracts for the purpose of
mitigating the risk of floating interest rate related to borrowings.
The details of hedging transactions are as shown in Note 11.
(3) Policies and processes for managing the risk
Credit risk
The Company and its consolidated subsidiaries manage the
trade receivables periodically by monitoring the condition for
main customers, and managing the term and balance sorted by
customer for the purpose of controlling and mitigating the
credit risk related to deterioration of the financial condition.
The investments in held-to-maturity securities are exposed to
insignificant credit risks because the Company only invests in
the high rating securities.
The contracts of derivative transactions are limited to the
contracts with high rating financial institutions for the purpose
of mitigating credit risk.
Market risk
The Company and its consolidated subsidiaries use foreign
exchange forward contracts, as derivative financial instruments
only for the purpose of mitigating future risks of fluctuation of
foreign currency exchange rates with respect to existing foreign
currency trade receivable or payable. The Company and its
consolidated subsidiaries also use interest rate swap contracts,
only for the purpose of mitigating the risk of floating interest
rate related to borrowings.
Securities are periodically monitored considering the fair value
or the financial condition of the issuers. In addition, securities
except held-to-maturity securities are continually managed
considering the market circumstance or relationship with
counterparty.
The derivative transactions are executed and managed by the
person in charge authorized by the Company’s Finance
Department.
Liquidity risk
The Company and its consolidated subsidiaries manage liquidity
risks by creating and updating the financing plans on a timely
basis.
(4) Supplemental information on fair values
The fair values of financial instruments include market prices or
reasonably estimated values if there are no market values. Because
estimation of fair values incorporates variable factors, adopting
different assumptions can change the values. In addition, the
amounts of the contract for derivatives transaction in Note 11 do
not indicate their market risks related to the derivatives transactions.
B. Fair values of financial instruments
Book values and fair values of the financial instruments on the
consolidated balance sheets as of March 31, 2013 and 2012 are the
following.
Notes to Consolidated Financial Statements
011_0594001372508.indd 18 2013/08/07 16:01:59
ANNUAL REPORT 19
Japanese Yen (millions)2013 2012
Book value Fair value Difference Book value Fair value Difference
Cash and cash equivalents ¥33,354 ¥33,354 ¥ — ¥28,778 ¥28,778 ¥—Time deposits 15,776 15,776 — 990 990 —Securities (Note 10)
Held-to-maturity securities 5,116 5,116 — 3,038 3,038 —
Available-for-sale securities 5,537 5,537 — 7,660 7,660 —
Trade receivables 31,831 31,831 — 27,793 27,793 —Total assets 91,614 91,614 — 68,259 68,259 —Short-term borrowings 5,995 5,995 — 4,698 4,698 —Current portion oflong-term indebtedness 15,299 15,299 — 153 153 —
Trade payables 14,068 14,068 — 13,848 13,848 —Other payables 2,386 2,386 — 2,146 2,146 —Accrued income taxes 2,165 2,165 — 1,076 1,076 —Long-term indebtedness 32,825 32,382 (443) 21,968 21,971 3Total liabilities 72,738 72,295 (443) 43,889 43,892 3Derivative transactions (Note 11) (*) ¥ (165) ¥ (165) ¥ — ¥ (15) ¥ (15) ¥—
U.S. Dollars (thousands)2013
Book value Fair value Difference
Cash and cash equivalents $354,641 $354,641 $ —Time deposits 167,741 167,741 —Securities (Note 10)
Held-to-maturity securities 54,397 54,397 —
Available-for-sale securities 58,873 58,873 —
Trade receivables 338,447 338,447 —Total assets 974,099 974,099 —Short-term borrowings 63,743 63,743 —Current portion oflong-term indebtedness 162,669 162,669 —
Trade payables 149,580 149,580 —Other payables 25,369 25,369 —Accrued income taxes 23,020 23,020 —Long-term indebtedness 349,016 344,306 (4,710)Total liabilities 773,397 768,687 (4,710)Derivative transactions (Note 11) (*) $ (1,754) $ (1,754) $ —
(*) Net credits and debts generated from derivatives trading are shown.
Items generating net debts are enclosed in parentheses.
Methods of calculating the fair value of financial instruments, and items
relating to securities and derivatives transactions
Assets
Cash and Cash equivalents, Time deposits and Trade receivables
The fair values are equal to the book values because these items are
settled in short term and fair values and book values are nearly
equivalent.
Securities
For the fair values of securities, the equity securities are measured at
the prices on the relevant exchanges and the bond are measured at
the prices provided by the relevant financial institutes. The details
are as shown in Note 10.
Liabilities
Short-term borrowings, Current portion of long-term indebtedness,
Trade payables, Other payables and Accrued income taxes
The fair values are equal to the book values because these items are
settled in short term and fair values and book values are nearly
equivalent.
Long-term indebtedness
The fair value of the bond payable is based on the present value of
principal and interest payments discounted using the interest rate
which takes into account the Company’s own credit risk.
The fair value of the floating rate loan payable subject to the special
treatment for an interest rate swap is based on the present value of
future cash flows associated with the loan payable and the interest
rate swap discounted using the current borrowing rate for similar
indebtedness of comparable maturity.
The book value of the other f loating rate loans payable
approximates fair value because their interest rates reflect market
interest rates in short term and no significant change has occurred
in the creditworthiness of the Company and its consolidated
subsidiaries after receiving borrowings.
As a result, those fair values are equal to the book values.
Derivative transactions
The details are as shown in Note 11.
10. SECURITIESA. The following tables summarize fair value, acquisition cost and book
value of securities with available fair value as of March 31, 2013 and
2012:
Held-to-maturity securities
Securities with fair value exceeding book value
Japanese Yen (millions)2013 2012
Book value
Fair value Difference Book
valueFair
value Difference
Equity securities ¥— ¥— ¥— ¥— ¥— ¥— Bonds — — — — — — Other — — — — — —Total ¥— ¥— ¥— ¥— ¥— ¥—
Securities with fair value not exceeding book value
Japanese Yen (millions)2013 2012
Book value
Fair value Difference Book
valueFair
value Difference
Equity securities ¥ — ¥ — ¥— ¥ — ¥ — ¥—Bonds 104 104 — 28 28 —Other 5,012 5,012 — 3,010 3,010 —Total ¥5,116 ¥5,116 ¥— ¥3,038 ¥3,038 ¥—
Securities with fair value exceeding book value
U.S. Dollars (thousands)2013
Book value
Fair value Difference
Equity securities $— $— $—Bonds — — —Other — — —Total $— $— $—
011_0594001372508.indd 19 2013/08/07 16:01:59
ANNUAL REPORT20
Securities with fair value not exceeding book value
U.S. Dollars (thousands)2013
Book value
Fair value Difference
Equity securities $ — $ — $—Bonds 1,106 1,106 —Other 53,291 53,291 —Total $54,397 $54,397 $—
Available-for-sale securities
Securities with book value exceeding acquisition cost
Japanese Yen (millions)2013 2012
Acquisition cost
Book value Difference Acquisition
costBook value Difference
Equity securities ¥1,397 ¥2,038 ¥641 ¥1,649 ¥2,219 ¥570 Bonds — — — 500 503 3 Other 2,200 2,206 6 — — —Total ¥3,597 ¥4,244 ¥647 ¥2,149 ¥2,722 ¥573
Securities with book value not exceeding acquisition cost
Japanese Yen (millions)2013 2012
Acquisition cost
Book value Difference Acquisition
costBook value Difference
Equity securities ¥1,235 ¥1,170 ¥(65) ¥ 770 ¥ 686 ¥ (84)Bonds — — — 4,190 4,128 (62)Other 123 123 — 124 124 —Total ¥1,358 ¥1,293 ¥(65) ¥5,084 ¥4,938 ¥(146)
Securities with book value exceeding acquisition cost
U.S. Dollars (thousands)2013
Acquisition cost
Book value Difference
Equity securities $14,854 $21,669 $6,815 Bonds — — —Other 23,392 23,456 64Total $38,246 $45,125 $6,879
Securities with book value not exceeding acquisition cost
U.S. Dollars (thousands)2013
Acquisition cost
Book value Difference
Equity securities $13,131 $12,440 $(691) Bonds — — —Other 1,308 1,308 —Total $14,439 $13,748 $(691)
B. The following tables summarize book value of securities with no
available fair value as of March 31, 2013 and 2012:
Japanese Yen(millions)
U.S. Dollars (thousands)
2013 2012 2013Available-for-sale securities:
Non-listed securities ¥1,008 ¥652 $10,718
Convertible bonds with share subscription rights 50 100 531
Investment Partnership 11 32 117Investment in affiliated companies 4 6 42Total ¥1,073 ¥790 $11,408
C. Redemption schedule of securities with maturities is as follows:
Japanese Yen (millions)2013 2012
Within 1 year
1 to 5 years
Over 5 years Total Within
1 year1 to 5 years
Over 5 years Total
Held-to-maturity securitiesBonds ¥ 1 ¥ 103 ¥— ¥ 104 ¥ 3 ¥ 25 ¥ — ¥ 28Other 5,012 — — 5,012 3,010 — — 3,010
Available-for-sale securitiesBonds — — — — 78 — 1,003 1,081Convertible bonds with share subscription rights — 50 — 50 — — — —Other 1,205 1,005 — 2,210 1,399 2,151 — 3,550
Total ¥6,218 ¥1,158 ¥— ¥7,376 ¥4,490 ¥2,176 ¥1,003 ¥7,669
U.S. Dollars (thousands)2013
Within 1 year
1 to 5 years
Over 5 years Total
Held-to-maturity securitiesBonds $ 11 $ 1,095 $— $ 1,106Other 53,291 — — 53,291
Available-for-sale securitiesBonds — — — —Convertible bonds with share subscription rights — 531 — 531Other 12,812 10,686 — 23,498
Total $66,114 $12,312 $— $78,426
D. Total sale of available-for-sale securities for the years ended March 31,
2013 and 2012.
Japanese Yen(millions)
U.S. Dollars (thousands)
2013 2012 2013Amount of securities sold ¥— ¥1,344 $—Total gain on sale — 207 —Total loss on sale — — —
11. DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING TRANSACTIONS
The Company and its consolidated subsidiaries use foreign exchange
forward contracts, as derivative financial instruments only for the purpose
of mitigating future risks of fluctuation of foreign currency exchange rates
with respect to existing foreign currency trade receivable or payable, and
use interest rate swap contracts and currency swap contracts, for the
purpose of mitigating the risk of floating interest rate related to
borrowings.
Notes to Consolidated Financial Statements
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ANNUAL REPORT 21
The derivative transactions are executed and managed by the Company’s
Finance Department in accordance with the established policies and within
the specified limits on the amounts of derivative transactions allowed.
The Manager of the Finance Department reports information on derivative
transactions to the Board of Directors on a monthly basis.
The following summarizes hedging derivative financial instruments used by
the Company and its consolidated subsidiaries and the hedged items:Hedging instruments: Hedged items:
Forward foreignexchange contracts
Foreign currencyreceivables and payables
The summarized derivative financial instruments outstanding as of March
31, 2013 and 2012 are as follows:
A. Derivative transactions on which the hedge accounting is not applied
Interest rate related
Japanese Yen (millions)2013 2012
Type of transaction
Notional value
Notional value due
over 1 year
Fair value
Unrealized gain (loss)
Notional value
Notional value due
over 1 year
Fair value
Unrealized gain (loss)
Interest rate swap transactions
Variable receivable and fixed payment ¥ 282 ¥ 94 ¥ (8) ¥ (8) ¥370 ¥247 ¥(15) ¥(15)
Currency swap contracts 2,756 2,756 (157) (157) — — — —
Total ¥3,038 ¥2,850 ¥(165) ¥(165) ¥370 ¥247 ¥(15) ¥(15)
U.S. Dollars (thousands)2013
Notional value
Notional value due
over 1 year
Fair value
Unrealized gain (loss)
Interest rate swap transactions
Variable receivable and fixed payment $ 2,998 $ 999 $ (85) $ (85)
Currency swap contracts 29,304 29,304 (1,669) (1,669)
Total $32,302 $30,303 $(1,754) $(1,754)
B. Derivative transactions subject to hedge accounting
Currency related
The way of hedge
accounting
Type of transaction
Hedged items
Japanese Yen (millions)2013 2012
Notional value
Notional value due
over 1 year
Fair value
Notional value
Notional value due
over 1 year
Fair value
Allocation method
Foreign exchange forward contracts Sell US dollar
Held-to-maturity securities
¥5,012 ¥— (*) ¥3,010 ¥— (*)
The way of hedge
accounting
Type of transaction
Hedged items
U.S. Dollars (thousands)2013
Notional value
Notional value due
over 1 year
Fair value
Allocation method
Foreign exchange forward contracts Sell US dollar
Held-to-maturity securities
$53,291 $— (*)
(*) As foreign exchange forward contracts subject to the allocation method
are accounted to be combined with held-to-maturity securities as
hedged items, their fair values are included in those of held-to-maturity
securities.
12. LIABILITY FOR SEVERANCE AND RETIREMENT BENEFITS
The liability for severance and retirement benefits as of March 31, 2013
and 2012 consist of the following:
Japanese Yen(millions)
U.S. Dollars(thousands)
2013 2012 2013Projected benefit obligation ¥(11,500) ¥(9,758) $(122,275)Plan assets at fair value 8,312 6,994 88,378Unfunded projected benefit obligation (3,188) (2,764) (33,897)Unrecognized net actuarial loss 1,106 1,077 11,760Unrecognized prior service costs (101) (213) (1,074)Liability for severance and retirement benefits ¥ (2,183) ¥(1,900) $ (23,211)
Severance and retirement benefit expenses included in the consolidated
statements of income and comprehensive income for the years ended
March 31, 2013 and 2012 consist of the following:
Japanese Yen(millions)
U.S. Dollars (thousands)
2013 2012 2013Service costs – benefits earned
during the year ¥ 724 ¥ 593 $ 7,698 Interest cost on projected benefit
obligation 195 175 2,073Expected return on
plan assets (179) (112) (1,903)Amortization of unrecognized
prior service costs (104) (84) (1,106)Amortization of unrecognized
net actuarial loss 332 165 3,530Severance and retirement benefit
expenses ¥ 968 ¥ 737 $10,292 Payment to defined contribution
pension plan 274 247 2,913
Total ¥1,242 ¥ 984 $13,205
Accounting assumptions and amortization schedule are as follows:
2013 2012Pension cost allocation Mainly the straight-
line methodMainly the straight-
line methodDiscount rate 1.0-8.5% 1.0-8.5%Expected return on assets 1.5-5.1% 1.5-4.9%
Amortization of unrecognized prior service costs 5-10 years 5-10 years
Amortization of unrecognized net actuarial loss 5-10 years 5-18 years
011_0594001372508.indd 21 2013/08/07 16:02:00
ANNUAL REPORT22
Unrecognized prior service costs and unrecognized net actuarial loss are
amortized by using the straight-line method.
13. SHORT-TERM BORROWINGS Short-term borrowings represent principally notes payable to banks.
Weighted average interest rates on the short-term borrowings excluding
current portion of long-term indebtedness as of March 31, 2013 and 2012
were 3.0% and 4.1%, respectively.
14. LONG-TERM INDEBTEDNESSLong-term indebtedness as of March 31, 2013 and 2012 consists of the
following:
Japanese Yen(millions)
U.S. Dollars(thousands)
2013 2012 2013
Bonds payable-
Bond payable due 2013 through 2019 with average rate 0.97% ¥37,533 ¥15,000 $399,075
Loans payable-
Unsecured loans due 2013 through 2035 with average rate of 0.79% 10,591 7,121 112,610
48,124 22,121 511,685
Less-
Current portion of long-term indebtedness (15,299) (153) (162,669)
¥32,825 ¥21,968 $349,016
Annual maturities of long-term indebtedness as of March 31, 2013 are as
follows;
Japanese Yen (millions)
U.S. Dollars (thousands)
2014 ¥15,299 $162,6692015 4,319 45,9222016 1,335 14,1952017 1,619 17,2142018 13,703 145,6992019 and thereafter 11,849 125,986
Total ¥48,124 $511,685
15. INCOME TAXESThe Company is subject to corporation, enterprise and inhabitants’ taxes,
which resulted in an aggregate normal effective tax rate of approximately
38.0%, 40.6% respectively for the years ended March 31, 2013 and 2012.
The following table summarizes the significant differences between the
statutory tax rate and the effective tax rate for the years ended March 31,
2013 and 2012:
2013 2012
Statutory tax rate 38.0% 40.6%(Reconciliation) Non-deductible expenses, such as
entertainment expenses 1.4 1.3Non-taxable income,
such as dividends received (0.3) (0.5)Inhabitant tax on per capita basis 0.4 0.4Tax rate differences between those applied in
Japan and foreign subsidiaries’ countries (7.8) (9.7)
Undistributed profits of overseas subsidiaries 17.6 2.1Tax reduction for research and development
expense (3.4) (2.9)Other 0.5 (2.4)
Effective tax rate 46.4% 28.9%
Significant components of deferred tax assets and liabilities as of March
31, 2013 and 2012 are as follows:
Japanese Yen(millions)
U.S. Dollars(thousands)
2013 2012 2013Deferred tax assets:
Enterprise taxes ¥ 172 ¥ 51 $ 1,829 Valuation loss of molds and dies 152 179 1,616 Accrued bonuses 504 468 5,359 Valuation loss of inventories 272 69 2,892 Liability for severance and
retirement benefits 765 662 8,134 Impairment losses of fixed assets 99 123 1,053Net operating loss carry forwards
of subsidiaries 1,389 1,276 14,769 Depreciation 148 59 1,574 Unrealized gains of inventories 225 207 2,392Other 776 669 8,250
Total 4,502 3,763 47,868 Offset with deferred tax liabilities
within each entity (1,752) (1,525) (18,628)
Sub-total deferred tax assets 2,750 2,238 29,240 Valuation allowance (1,260) (1,104) (13,397)
Total deferred tax assets 1,490 1,134 15,843 Deferred tax liabilities:
Net unrealized gains on securities (265) (150) (2,818)Reserves under Special Taxation
Measures Law (504) (519) (5,359)
Undistributed profit of overseas subsidiaries (2,081) (341) (22,127)
Depreciation (876) (595) (9,314)Other (713) (612) (7,580)
Total (4,439) (2,217) (47,198)Offset with deferred tax assets
within each entity 1,752 1,525 18,628
Total deferred tax liabilities (2,687) (692) (28,570)Net deferred tax assets (liabilities) ¥(1,197) ¥ 442 $(12,727)
Notes to Consolidated Financial Statements
011_0594001372508.indd 22 2013/08/07 16:02:00
ANNUAL REPORT 23
Japanese Yen (millions)
Reporting segmentsOther Adjustments ConsolidatedIndustrial Plastic Parts
and ComponentsBedding and
Furniture Total
2013 Net sales:Sales to customers ¥120,947 ¥16,931 ¥137,878 ¥2,039 ¥ — ¥139,917 Inter-segment sales 2 12 14 94 (108) —
Total 120,949 16,943 137,892 2,133 (108) 139,917 Segment income (loss) 12,561 2,255 14,816 (245) (4,021) 10,550 Segment assets 107,186 14,705 121,891 8,657 48,228 178,776 Other items
Depreciation 6,200 355 6,555 2 221 6,778 Impairment loss of fixed assets — — — — 193 193 Investments in equity method-applied affiliates 4 — 4 — — 4 Capital expenditures 16,268 216 16,484 41 1,997 18,522
2012 Net sales:Sales to customers ¥105,407 ¥15,362 ¥120,769 ¥2,111 ¥ — ¥122,880Inter-segment sales 2 0 2 109 (111) —
Total 105,409 15,362 120,771 2,220 (111) 122,880 Segment income (loss) 12,954 1,991 14,945 (301) (4,403) 10,241 Segment assets 83,212 13,416 96,628 9,888 28,371 134,887 Other items
Depreciation 5,412 416 5,828 5 205 6,038 Impairment loss of fixed assets — — — 22 — 22 Investments in equity method-applied affiliates 6 — 6 — — 6 Capital expenditures 16,822 211 17,033 4 20 17,057
16. NET ASSETSUnder Japanese laws and regulations, the entire amount paid for new
shares is basically required to be designated as common stock. However, a
company may, by a resolution of the Board of Directors, designate an
amount not exceeding one-half of the price of the new shares as
additional paid-in capital, which is included in capital surplus.
The Japanese Corporate Law (“the Law”) provides that an amount equal
to 10% of cash dividends be appropriated as an additional paid-in capital
or legal reserve. No further appropriation is required when the total
amount of the additional paid-in capital and legal reserve equals to 25%
of common stock. Legal earnings reserve is included in retained earnings in
the accompanying consolidated balance sheets. The Law requires a
company to obtain the approval of shareholders for transferring amount
between common stock and additional paid-in capital. The Law also
permits a company to transfer an amount of common stock or additional
paid-in capital to retained earnings in principle upon approval of
shareholders. Under the Law, all additional paid-in-capital and all legal
earnings reserve may be transferred to other capital surplus and retained
earnings, respectively, which are potentially available for dividends.
The maximum amount that the Company can distribute as dividends is
calculated based on the non-consolidated financial statements of the
Company in accordance with Japanese laws and regulations.
At the annual shareholders’ meeting held on June 27, 2013, the
shareholders approved cash dividends amounting to ¥1,266 million
($13,461 thousand). Such appropriations have not been accrued in the
consolidated financial statements as of March 31, 2013. Such
appropriations are recognized in the period in which they are approved by
the shareholders.
17. PER SHARE DATADividends per share shown in the consolidated statements of income and
comprehensive income have been presented on the accrual basis and
include, in each fiscal period, dividends approved after each balance sheet
date, but applicable to the fiscal period then ended.
Net income per share is based on the weighted average number of shares
of common stock outstanding and common stock equivalents.
In the fiscal year ended March 31, 2012, the numbers of stock options are
considered as common stock equivalents that have a dilutive effect.
In the fiscal years ended March 31, 2013, there were no common stock equivalents that have a dilutive effect.
18. SEGMENT INFORMATION< Segment Information >
A. General information about reportable segments
The reportable segments of the Company are its constituent units on
which separate financial information can be obtained, and the Board
of Directors regularly examines them to determine the allocation of
management resources and to evaluate earnings.
The Company has two reportable segments: the “Industrial plastic
parts and components business” and the “Bedding and furniture
business.”
The main products and services of each reportable segment are as
follows:
(1) Industrial plastic parts and components: Industrial plastic fasteners,
precision plastic injection molded components, etc.
(2) Bedding and furniture: Various types of beds, reclining chairs, etc.
B. Basis of measurement about reported segment profit or loss, segment
assets, segment liabilities and other material items
The accounting method for reportable segments is the same, for the
most part, with descriptions in Note2, “Summary of Significant
Accounting Policies.”
Profit or loss in the reportable segments corresponds to operating
income or operating loss.
Inter-segment salesrevenue is based on the current market price.
C. Information about reported segment profit or loss, segment assets,
segment liabilities and other material items
Segment information as of and for the years ended March 31, 2013
and 2012 are as follows:
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ANNUAL REPORT24
U.S. Dollars (thousands)
Reporting segmentsOther Adjustments ConsolidatedIndustrial Plastic Parts
and ComponentsBedding and
Furniture Total
2013 Net sales:Sales to customers $1,285,986 $180,021 $1,466,007 $21,680 $ — $1,487,687 Inter-segment sales 21 128 149 999 (1,148) —
Total 1,286,007 180,149 1,466,156 22,679 (1,148) 1,487,687 Segment income (loss) 133,557 23,976 157,533 (2,605) (42,754) 112,174 Segment assets 1,139,670 156,353 1,296,023 92,047 512,791 1,900,861Other items
Depreciation 65,922 3,775 69,697 21 2,350 72,068 Impairment loss of fixed assets — — — — 2,052 2,052 Investments in equity method-applied affiliates 43 — 43 — — 43 Capital expenditures 172,972 2,296 175,268 436 21,234 196,938
Notes 1. “Other” includes newspapers and publishing business, etc. 2. Adjustments to the segment loss of ¥4,021 million ($42,754 thousand), ¥4,403 million respectively as of March 31, 2013 and 2012 reflect company costs of ¥4,146 million
($44,083 thousand), ¥3,781 million respectively and transactions eliminated between segments totaling ¥ 125 million ($1,329 thousand), negative ¥622 million respectively. Company costs mainly refer to general and administrative expenses that do not belong to reportable segments.
3. Segment income (loss) is adjusted by taking into account operating income of consolidated financial statements. 4. Adjustments to segment assets of ¥48,228 million ($512,791 thousand), ¥28,371 million respectively as of March 31, 2013 and 2012 reflect company assets that are
not allocated to each reportable segment of ¥61,704 million ($656,076 thousand), ¥43,543 million respectively and transactions eliminated between segments totaling ¥13,476 million ($143,285 thousand), ¥15,172 million respectively.
Amortization of goodwill and remaining amounts by reportable segment for the years ended March 31, 2013 and 2012 are as follows:
Goodwill
Japanese Yen (millions)2013 2012
Industrial Plastic Parts and
Components
Bedding and Furniture Other Total
Industrial Plastic Parts and
Components
Bedding and Furniture Other Total
Amortization ¥ 52 ¥— ¥— ¥ 52 ¥ 41 ¥— ¥— ¥ 41Remaining amounts 371 — — 371 317 — — 317
U.S. Dollars (thousands)2013
Industrial Plastic Parts and
Components
Bedding and Furniture Other Total
Amortization $ 553 $— $— $ 553Remaining amounts 3,945 — — 3,945
Negative goodwill
Japanese Yen (millions)2013 2012
Industrial Plastic Parts and
Components
Bedding and Furniture Other Total
Industrial Plastic Parts and
Components
Bedding and Furniture Other Total
Amortization ¥6 ¥19 ¥— ¥25 ¥6 ¥22 ¥— ¥28Remaining amounts — 2 — 2 6 21 — 27
U.S. Dollars (thousands)2013
Industrial Plastic Parts and
Components
Bedding and Furniture Other Total
Amortization $64 $202 $— $266Remaining amounts — 21 — 21
Notes to Consolidated Financial Statements
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ANNUAL REPORT 25
Operations by geographic areas for the years ended March 31, 2013 and 2012 are summarized as follows:
Japanese Yen (millions)
Japan Asia North America Europe Total Eliminations and Corporate Consolidated
2013 Net sales:Sales to customers ¥67,014 ¥45,772 ¥18,359 ¥8,772 ¥139,917 ¥ — ¥139,917 Inter-segment sales 5,185 3,729 26 40 8,980 (8,980) —
Total 72,199 49,501 18,385 8,812 148,897 (8,980) 139,917 Operating income (loss) 8,285 4,489 580 190 13,544 (2,994) 10,550
2012 Net sales:Sales to customers ¥65,373 ¥38,263 ¥12,333 ¥6,911 ¥122,880 ¥ — ¥122,880Inter-segment sales 4,829 3,093 14 45 7,981 (7,981) —
Total 70,202 41,356 12,347 6,956 130,861 (7,981) 122,880 Operating income (loss) 8,035 4,692 420 147 13,294 (3,053) 10,241
U.S. Dollars (thousands)
Japan Asia North America Europe Total Eliminations and Corporate Consolidated
2013 Net sales: Sales to customers $712,536 $486,677 $195,205 $93,269 $1,487,687 $ — $1,487,687Inter-segment sales 55,130 39,649 276 426 95,481 (95,481) —
Total 767,666 526,326 195,481 93,695 1,583,168 (95,481) 1,487,687 Operating income (loss) 88,091 47,730 6,167 2,020 144,008 (31,834) 112,174
< Related Information >
A. Information by product and service
Information is omitted since similar information is in the segment information.
B. Information by geographic areas
The amount of sales by geographic areas for the years ended March 31, 2013 and 2012 are summarized as follows:
Japanese Yen (millions)
Japan Asia Korea North America United States Europe Other Total
2013 ¥66,686 ¥27,668 ¥18,144 ¥3,004 ¥15,899 ¥8,258 ¥258 ¥139,917
2012 ¥64,825 ¥22,666 ¥15,834 ¥2,124 ¥10,704 ¥6,617 ¥110 ¥122,800
U.S. Dollars (thousands)
Japan Asia Korea North America United States Europe Other Total
2013 $709,048 $294,184 $192,919 $31,940 $169,048 $87,804 $2,744 $1,487,687Notes 1. Sales are classified by country or region which is based on customer location. 2. Sales in Asia do not include sales in Korea. 3. Sales in North America do not include sales in the United States.
The amount of tangible fixed assets by geographic areas for the year ended March 31, 2013 and 2012 are summarized as follows:
Japanese Yen (millions)
Japan Asia China North America Europe Total
2013 ¥25,724 ¥13,918 ¥6,254 ¥6,561 ¥6,578 ¥59,035
2012 ¥23,667 ¥ 9,333 ¥4,299 ¥3,603 ¥4,502 ¥45,404
U.S. Dollars (thousands)
Japan Asia China North America Europe Total
2013 $273,514 $147,985 $66,497 $69,761 $69,941 $627,698Notes 1. Tangible fixed assets are classified by country or region according to geographic adjacent level. 2. Tangible fixed assets of China are not included in Asia.
C. Information by major customer
There is no major unaffiliated customer which accounts for 10% or more of the net sales on the consolidated statements of income and comprehensive
income.
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ANNUAL REPORT26
Notes to Consolidated Financial Statements
19. SUBSEQUENT EVENTOn June 26, 2013, the Company received a written notice of reassessment
from the Tokyo Regional Taxation Bureau mainly regarding the application
of the Anti-Tax Haven Rules for the taxable income of a subsidiary in Hong
Kong for the five fiscal years ended from March 31, 2008 to March 31,
2012.
The total taxable income assessed was ¥1,709 million ($18,171 thousand)
and the estimated additional tax for the principal tax amounted to ¥725
million ($7,709 thousand) and, if including penalties, the total estimated
additional tax amounted to ¥767 million ($8,155 thousand).
The additional tax payments will be charged to income for the year ending
March 31, 2014.
The Company will protest against this corrective action and file a written
objection with the Bureau.
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ANNUAL REPORT 27
To the Board of Directors of Nifco Inc.:
We have audited the accompanying consolidated financial statements of Nifco Inc. and its consolidated subsidiaries, which comprise the consolidated balance sheets as of March 31, 2013 and 2012, and the consolidated statements of income and comprehensive income, statements of changes in net assets and statements of cash flows for the years then ended, and a summary of significant accounting policies and other explanatory information.
Management’s Responsibility for the Consolidated Financial Statements
Management is responsible for the preparation and fair presentation of these consolidated financial statements in accordance with accounting principles generally accepted in Japan, and for such internal control as management determines is necessary to enable the preparation of consolidated financial statements that are free from material misstatements, whether due to fraud or error.
Auditor’s Responsibility
Our responsibility is to express an opinion on these consolidated financial statements based on our audits. We conducted our audits in accordance with auditing standards generally accepted in Japan. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the consolidated financial statements. The procedures selected depend on our judgement, including the assessment of the risks of material misstatement of the consolidated financial statements, whether due to fraud or error. In making those risk assessments, we consider internal control relevant to the entity’s preparation and fair presentation of the consolidated financial statements in order to design audit procedures that are appropriate in the circumstances, while the objective of the financial statement audit is not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
Opinion
In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of Nifco Inc. and its consolidated subsidiaries as of March 31, 2013 and 2012, and their financial performance and cash flows for the years then ended in accordance with accounting principles generally accepted in Japan.
Emphasis of Matter
Without qualifying our opinion, we draw attention to Note 19 to the consolidated financial statements which indicates that the company received a written notice of reassessment from the Tokyo Regional Taxation Bureau mainly regarding the application of the Anti-Tax Haven Rules on June 26, 2013.
Convenience Translation
The U.S. dollar amounts in the accompanying consolidated financial statements with respect to the year ended March 31, 2013 are presented solely for convenience. Our audit also included the translation of yen amounts into U.S. dollar amounts and, in our opinion, such translation has been made on the basis described in Note 1 to the consolidated financial statements.
June 27, 2013
Tokyo, Japan
Independent Auditor’s Report
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ANNUAL REPORT28
Members of the Board
Chairman & Representative Director, Chief Executive Officer
Toshiaki Ogasawara
President & Representative Director,Chief Operating Officer
Toshiyuki YamamotoDirector (+) Senior Executive Managing Officer
Mitsutaka OgasawaraDirector (+) Senior Executive Managing Officer
Akira KagiichiNon Executive Director
Toyoo GyotenNon Executive Director
Shunji Yanai
Members of the Board of Auditors
Standing AuditorsKenji MatsukawaHiroshi Takikawa
AuditorsKagetoshi UchidaToshiyuki Arai
Executive Officers
Senior Executive Managing OfficersKiyohiko FukawaYoshiaki Notoya
Executive Managing OfficersYukiko OgasawaraEiji Suzuishi
Executive OfficersJunji HondaKazumasa KuriharaAkinobu SuzukiMasatoshi FukawaShinsuke OokiTakashi MorinagaTomoyasu KatoHiroshi KimuraFukuo IwasakiTakashi UkaiYukiko Yoshimaru
Corporate Outline (as of 31st March, 2013)
Registered name Nifco Inc.Date of Establishment 13th February,1967Shareholders’ capital ¥7,290 millionHead Office 184-1 Maioka-cho,
Totsuka-ku, Yokohama, Kanagawa Prefecture, 244-8522 Japan
Number of employees 1,357 (non-consolidated)7,979 (consolidated)
Corporate DirectoryTokyo Headquarters
Japan Times-Nifco Building,4-5-4 Shibaura, Minato-ku, Tokyo 108-8522 JapanTel 03-5476-4850Fax 03-5476-4859
Head Office184-1 Maioka-cho, Totsuka-ku,Yokohama, Kanagawa Prefecture, 244-8522 JapanTel 045-825-7900Fax 045-824-4781
Other Domestic Operations (in alphabetical order) Hamamatsu Sales OfficeHiroshima Sales OfficeKyushu Sales OfficeNagoya Plant and Sales OfficeNifco Technology Development CentreOsaka Sales OfficeOta Sales OfficeSagamihara Plant and Sales OfficeSayama Sales OfficeSuzuka Sales OfficeUtsunomiya Plant and Sales OfficeYamagata Sales Office
Transfer Agent and RegistrarStocks & Shares Department,Mizuho Trust & Banking Co., Ltd.,1-2-1 Yaesu, Chuo-ku, Tokyo
Domestic Subsidiary CompaniesNifco Yamagata Inc.Nifco Kumamoto Inc.Simmons Co., Ltd.The Japan Times, Ltd.
Domestic Affiliated CompanyNichiei Seiki Co., Ltd.
Overseas Subsidiary Companies
North America Nifco America Corporation
8015 Dove Parkway Canal Winchester, OH43110, U.S.A.Tel +1-614-920-6800Fax +1-614-836-3846
Nifco Korea USA Inc.4300 Alatex Road Montgomery, AL36108, U.S.A.Tel +1-334-481-1647Fax +1-334-481-1670
Nifco Central Mexico S. de R.L. de C.V. Avenida Rio San Lorenzo #1117Parque Industrial Castro del RioIrapuato, Guanajuato CP 36810Mexico
EuropeNifco U.K. Ltd.
Durham Lane, Eaglescliffe, Stockton-on-Tees, Cleveland TS16 0PS, U.K.Tel +44-(0)1642-672299Fax +44-(0)1642-611004
Nifco Products España, S. L. U.Bosch i Gimpera, 2-4 Pol.Ind. Santa Margarita II 08223,Terrassa Barcelona, SpainTel +34-93-736-1800Fax +34-93-731-6265
Corporate Data
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ANNUAL REPORT 29
Nifco Poland Sp. z o. o.ul. Przemyslowa, 41-43, 58-100 Swidnica, PolandTel +48-74-649-5500Fax +48-74-649-5503
Nifco Korea Poland Sp. z o. o.ul. Wygoda 8, 44-240, Zory, PolandTel +48-32-6211-390Fax +48-32-6211-399
Nifco Deutschland GmbHMergenthalerallee 77, D-65760Eschborn, GermanyTel +49-(0)6196-7762-078Fax +49-(0)6196-7614-999
Nifco KTS GmbH & Co. KGLindgesfeld 9 D-42653Solingen, GermanyTel +49-(0)212 / 25830-10Fax +49-(0)212 / 25830-30
AsiaShanghai Nifco Plastic Manufacturer Co., Ltd.
305 Shen Xia Lu, Ma Lu Zhen, Jiading District,Shanghai, 201818 People’s Republic of ChinaTel +86-(0)21-5990-3030Fax +86-(0)21-5990-3966
Nifco Enterprise Management (Shanghai) Co., Ltd.SOHO Zhongshan Plaza Room No.1011,1055 West Zhongshan Road, Shanghai, 200051Peoples’ Republic of ChinaTel +86-21-6275-5566Fax +86-21-6295-0183
Dongguan Nifco Co., Ltd.East Fang Zheng Road, New City Center,Shilong Town, Dongguan,Guangdong Province, 523326People’s Republic of ChinaTel +86-(0)769-8618-5767Fax +86-(0)769-8618-5697
Tifco (Dongguan) Co., Ltd.No.8, Haiyi Road, Chongtou District,Changan Town, Dongguan City, Guangdong, 523850 People’s Republic of China Tel +86-(0)769-8539-1205Fax +86-(0)769-8539-1203
Beijing Nifco Co., Ltd.The junction of Bo Xing First Street and Tai He Avenue, He Xi District, Beijing Economic-Technological Development Area, 100176 People’s Republic of ChinaTel +86-(0)10-8712-6000Fax +86-(0)10-8712-6050
Nifco (Tianjin) Co., Ltd.No.5, the 5th Haitaihuake Road, Huayuan Industrial Zone, New Technology Industry Park, Tianjin, 300384 People’s Republic of ChinaTel +86-22-5828-8288
Nifco (Hubei) Co., Ltd.Baoye Industrial Park, ChuangYe Avenue, Gedian Economic and Technical Development Zone of Hubei Province, 436070 People’s Republic of ChinaTel +86-711-370-0122
Nifco (Jiangsu) Co., Ltd.No.9, Chen Xin Road, North District, Zhang Jia Gang Economic Development Zone, Jiang Su Province, 215600 People’s Republic of ChinaTel +86-512-5879-9588Fax +86-512-5818-8200
Nifco (Yancheng) Co., Ltd.Room 306, Merchants Bureau of Optoelectronics Industry, No.69 Donghuan Road, Yancheng Economic Development Zone, Jiang Su Province, People’s Republic of ChinaTel +86-0515-6899-0293Fax +86-0515-6899-0292
Nifco (HK) LimitedNo.5 Dai Wang Street, Tai Po Industrial Estate, Tai Po,New Territories, Hong KongTel +852-2665-8088Fax +852-2664-9330
Nifco Taiwan Corporation7F, No.3, Sec.1, Tun Hwa S. Road, Songshan District, Taipei 105, Taiwan, Republic of ChinaTel +886-(0)2-2578-2952Fax +886-(0)2-2577-8431
Nifco Korea Inc.#14-4, Chaam-Dong, Chonan-Shi, Chungnam, 330-200 KoreaTel +82-(0)41-620-4771Fax +82-(0)41-621-8786
Nifco (Thailand) Co., Ltd.Amata Nakorn Industrial Estate 700/420 Moo 7, Bangna-Trad Road (KM.57), Tambol Don-Hua-Roh, Amphur Muang, Chonburi, Chonburi 20000 ThailandTel +66-(0)38-45-4165Fax +66-(0)38-45-4173
Union Nifco Co., Ltd.99/11 Moo 5, Bangna-Trad Road (KM.38), Tambol Bangsamak, Amphur Bangpakong, Chachoengsao 24180 ThailandTel +66-(0)38-84-2130~5Fax +66-(0)38-84-2129
Nifco Manufacturing (Malaysia) Sdn. Bhd.No.46, Jalan Keluli 2, Taman Perindustrian, Utama Bukit Raja, 41720 Klang, Selangor Darul Ehsan, MalaysiaTel +60-(0)3-33412103Fax +60-(0)3-33412107
Nifco (Singapore) Pte. Ltd.11 Woodlands Close, #05-38Woodlands 11, Singapore 737853Tel +65-6273-9123Fax +65-6273-9150
Nifco Vietnam Ltd.Lot #90, Linh Trung Export Processing Zone&Industrial Park III, Trang Bang Dist, Tay Ninh Province, VietnamTel +84-(0)663-89-7451Fax +84-(0)663-89-7455
Nifco India Private Ltd.Plot No.122, Sector 8, Industrial Estate, Imt-Manesar,Gurgaon-122050, Haryana, IndiaTel +91-124-4998225 & 226Fax +91-124-4998249
Nifco South India Manufacturing Private Ltd.Old No. 109, New No. 50, Mannur Village, Valarpuram Post, Sriperumbudur Taluk,Kancheepuram Dist,Tamilnadu 602 105, India
PT. Nifco IndonesiaJL.Harapan II Lot KK-5b, Kawasan Industri KIIC,Desa Sirnabaya Kec. Telukjambe TimurKarawang 41361, Jawa Barat, IndonesiaTel +62-21-8911-4296Fax +62-21-8911-4295
Simmons GroupSimmons Co., Ltd.
6&7F 4-5-4 Shibaura, Minato-ku, Tokyo 108-0023 Japan
AsiaBangkok, Hong Kong, Shanghai, Singapore, Taipei
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A N N U A L R E P O R T 2 0 1 3
Japan Times-Nifco Building4-5-4 Shibaura, Minato-ku, Tokyo 108-8522 Japan
Telephone 03-5476-4850Facsimile 03-5476-4859
http://www.nifco.co.jp (Japanese)http://www.nifco.com (English)
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