Nippon Light Metal Company, Ltd. Annual Report 2012
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NIPPON LIGHT METAL COMPANY, LTD. ANNUAL REPORT 2012 ANNUAL REPORT Nippon Light Metal Company, Ltd. 2012 NYK Tennoz Building, 2-20, Higashi-Shinagawa 2-chome Year ended March 31, 2012 Shinagawa-ku, Tokyo 140-8628, Japan http://www.nikkeikin.co.jp Printed in Japan 005_0606501372409.indd 1 2012/08/31 19:30:07 Corporate Data CORPORATE DATA Profile Since its establishment, the NLM Group has been Japan’s sole fully integrated aluminum manufacturer offering varieties of products ranging from aluminum raw material to fabricated products. Aluminum has properties that make it a superb industrial material: it is lightweight and has Head Office Major Shareholders NYK Tennoz Building (Ratio of Stock Holding) excellent processability, corrosion resistance, thermal conductivity, and recyclability. Nippon Light 2-20, Higashi-Shinagawa 2-chome Japan Trustee Services Bank, Ltd. Metal applies its core strengths — a wealth of knowledge about aluminum and its characteristics and Shinagawa-ku, Tokyo 140-8628, Japan (trust accounts) technological capabilities that have been developed over many years — to supply a highly diversified http://www.nikkeikin.co.jp (11.4%) Phone: 81-3-5461-9211 range of products to a number of key industrial sectors, including the automotive, electrical and The Master Trust Bank of Japan, Ltd. Fax: 81-3-5461-9344 electronics, information and telecommunication, environment, safety, energy, construction, railroad, (trust accounts) (5.1%) and food products industries. Established March 30, 1939 The Dai-ichi Mutual Life Insurance Co. By carrying on development of new applications for aluminum and aluminum materials, the (3.7%) NLM Group is to continue to support customers in wide-ranging industrial sectors and contribute to Paid-In Capital improving the quality of people’s lives and protection of the environment. ¥39,085 million Japan Trustee Services Bank, Ltd. (trust accounts 9)(2.9%) Shares of Common Stock Asahi Mutual Life Insurance Co. Authorized: 1,600,000,000 (2.8%) Issued: 545,126,049 Consolidated Financial Highlight The Light Metal Educational Nippon Light Metal Company, Ltd. and its consolidated subsidiaries Years ended March 31 Number of Shareholders Foundation, Inc. 53,286 (2.7%) 2011 2012 2012 Thousands of Stock Exchange Listings Nikkei-Keiyu-Kai Millions of yen U.S. dollars Tokyo, Osaka (2.7%) For the year: Net sales ¥429,433 ¥403,009 $4,903,382 Mizuho Corporate Bank, Ltd. Transfer Agent of Common Stock Operating profit 24,724 13,665 166,261 (2.1%) Net income 11,040 2,856 34,749 The Chuo Mitsui Trust & Banking Co., Ltd. Namekawa Aluminium Co., Ltd. At year-end: Last Shareholders’ Meeting (1.6%) Total assets 414,885 422,671 5,142,609 June 28, 2012 Net assets 104,757 108,849 1,324,358 Retirement Benefit Trust in Short-term borrowings and long-term debt, Mizuho Trust & Banking Co., Ltd. including bonds and capital lease obligation 193,695 191,074 2,324,784 Mizuho Corporate Bank, Ltd. account; Trust & Custody Services Bank, Ltd. as a Trustee of Retrust Net Sales Operating Profit Total Assets (1.6%) 800 35 600 30 25 (As of March 31, 2012) 600 450 20 15 400 10 300 5 0 200 150 Cautionary Statement -5 This annual report contains various projections and estimates. Important factors that could alter these projections and estimates include -10 changes in the balance of aluminum supply and demand, fluctuations in the price of aluminum ingot and foreign exchange rates, as 0 -15 0 2007 2008 2009 2010 2011 2012 2007 2008 2009 2010 2011 2012 2007 2008 2009 2010 2011 2012 well as shifts in Japanese government policies and regulations. The Company cautions, therefore, that the projections and estimates Billions of yen Years ended March 31 Billions of yen Years ended March 31 Billions of yen As of March 31 contained herein involve risk and uncertainty, and that actual results could differ materially from those expressed or implied. 43 005_0606501372409.indd 2 2012/08/31 19:30:08 Contents Consolidated Financial Highlights ................................................................................................................ C2 To Our Shareholders ....................................................................................................................................... 2 Special Feature ............................................................................................................................................... 4 NLM Group Topics .......................................................................................................................................... 7 Corporate Governance And Internal Control Systems ............................................................................. 8 NLM Group Environmental Activities ......................................................................................................... 10 Review Of Operations..................................................................................................................................... 11 NLM Group ....................................................................................................................................................... 15 Consolidated Six-Year Summary .................................................................................................................. 16 Financial Review ............................................................................................................................................. 18 Consolidated Balance Sheets ...................................................................................................................... 20 Consolidated Statements Of Income ........................................................................................................... 22 Consolidated Statements Of Comprehensive Income .............................................................................. 23 Consolidated Statements Of Changes In Net Assets ............................................................................... 24 Consolidated Statements Of Cash Flows .................................................................................................... 25 Notes To Consolidated Financial Statements ............................................................................................ 26 Report Of Independent Auditors .................................................................................................................. 40 Overseas Network .......................................................................................................................................... 41 Directors And Officers ................................................................................................................................... 42 Corporate Data ................................................................................................................................................ 43 2011 2012 2012 yen U.S. dollars Per share data (yen and dollars): Net income —basic ¥ 20.29 ¥ 5.25 $ 0.06 —diluted — —— Cash dividends 2.00 2.00 0.02 Net assets 181.51 184.71 2.25 Stock information (TSE) (yen and dollars): Stock price: High ¥ 189 ¥ 172 $ 2.09 Low 96 89 1.08 Note: U.S. dollar amounts have been translated, for convenience only, at the exchange rate of ¥82.19 = U.S.$1.00. See Note 2 of the Notes to the Consolidated Financial Statements. Net Income per Share Net Assets per Share Cash Dividends per Share 30.0 300.0 5.0 250.0 4.0 0 200.0 3.0 150.0 2.0 -30.0 100.0 1.0 50.0 -60.0 0 0 2007 2008 2009 2010 2011 2012 2007 2008 2009 2010 2011 2012 2007 2008 2009 2010 2011 2012 Yen Years ended March 31 Yen Years ended March 31 Yen As of March 31 Net Income per Share = (Net Income - Amount Net Assets per Share = (Net Assets-Minority not attributable to common shareholders) / interests in consolidated subsidiaries) / Average Number of Shares Outstanding Number of Shares Outstanding at Year-end 1 008_0606501372409.indd 1 2012/08/31 14:39:45 To Our Shareholders bauxite to aluminum hydroxide, while actively expanding sales of high value added products by increasing production of high-purity alumina for LED sapphire substrates and developing lithium ion battery-related materials. For development of overseas business operations, the Group steadily established a foundation for future sustainable growth, including the creation of joint ventures engaged in trailer business and automotive parts business in China, and the construction of a new plant in Thailand for manufacturing room air conditioner condensers. The Group also promoted thorough efficiency improvements and rationalization in all of its business activities and diligently engaged in sales activities. However, the drop in demand resulting from the earthquake has not completely recovered, and as a result, consolidated net sales for the year under review decreased 6.2% year on year, to ¥403.0 billion. Takashi Ishiyama, President and CEO Consolidated operating profit, consolidated ordinary profit, and consolidated net income decreased 44.7%, 47.6%, I would like to take this opportunity to extend my and 74.1% year on year, to ¥13.7 billion, ¥9.7 billion, and ¥2.9 sincere gratitude to our shareholders for their billion, respectively. continued support of our business operations. Year-end dividend payment for the year under review will I hereby report on the operating results for Nippon be ¥2 per share, the same as the previous year. We ask for the Light Metal Company, Ltd. and its consolidated group understanding of all of our shareholders. companies