Annual Securities Report 56Th Term
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Annual Securities Report 56th term (from April 1, 2019 to March 31, 2020) Hitachi Construction Machinery Co., Ltd. [Cover] [Document Filed] Annual Securities Report (“Yukashoken Hokokusho”) [Applicable Law] Article 24, paragraph (1) of the Financial Instruments and Exchange Act of Japan [Filed with] Director, Kanto Local Finance Bureau [Filing Date] July 21, 2020 [Fiscal Year] 56th term (from April 1, 2019 to March 31, 2020) [Company Name] Hitachi Kenki Kabushiki-Gaisha [Company Name in English] Hitachi Construction Machinery Co., Ltd. [Name and Title of Representative] Kotaro Hirano, President and Executive Officer [Address of Headquarters] 2-16-1, Higashiueno, Taito-ku, Tokyo [Phone No.] +81-3-5826-8151 [Direct-dialing] [Contact Person] Yusuke Araki, General Manager, Legal Division [Contact Address] 2-16-1, Higashiueno, Taito-ku, Tokyo [Phone No.] +81-3-5826-8151 [Direct-dialing] [Contact Person] Yusuke Araki, General Manager, Legal Division [Place Where Available for Public Tokyo Stock Exchange, Inc. Inspection] 2-1, Nihonbashi Kabutocho, Chuo-ku, Tokyo 1 Contents Part I Information on the Company ................................................................................................................. 3 I. Overview of the Company ........................................................................................................................ 3 1. Transition of the Key Financial Data ...................................................................................................................................3 2. History .................................................................................................................................................................................5 3. Description of Business .......................................................................................................................................................7 4. Information on Subsidiaries and Associates ........................................................................................................................8 5. Employees ......................................................................................................................................................................... 12 II. Business Overview ................................................................................................................................... 13 1. Management Policy, Operating Environment and Issues to be Addressed ........................................................................ 13 2. Business Risks ................................................................................................................................................................... 14 3. Management Analysis of Financial Condition, Results of Operations and Cash Flows .................................................... 16 4. Important Business Contracts, etc. ..................................................................................................................................... 21 5. Research and Development Activities ............................................................................................................................... 22 III. Property, Plant and Equipment ............................................................................................................. 23 1. Overview of Capital Investment ........................................................................................................................................ 23 2. Major Property, Plant and Equipment................................................................................................................................ 23 3. Plan for New Capital Investment and Disposal, etc. of Property, Plant and Equipment .................................................... 24 IV. Information on the Company ................................................................................................................. 25 1. Information on the Company’s Stock, etc.......................................................................................................................... 25 (1) Total number of shares, etc. ......................................................................................................................................... 25 (2) Information on subscription rights to shares, etc. ......................................................................................................... 26 (3) Information on moving strike convertible bonds, etc. .................................................................................................. 26 (4) Changes in the total number of issued shares and the amount of common stock and other ......................................... 26 (5) Composition of shareholders ........................................................................................................................................ 26 (6) Major shareholders ....................................................................................................................................................... 27 (7) Information on voting rights ........................................................................................................................................ 28 2. Information on Acquisition, etc., of Treasury Stock .......................................................................................................... 29 3. Dividend Policy ................................................................................................................................................................. 30 4. Corporate Governance, etc. ............................................................................................................................................... 31 (1) Corporate governance .................................................................................................................................................. 31 (2) Directors and Executive Officers ................................................................................................................................. 36 (3) Status of audit .............................................................................................................................................................. 46 (4) Compensation to Directors and Executive Officers ..................................................................................................... 50 (5) Information on shareholdings ....................................................................................................................................... 51 V. Financial Information ............................................................................................................................. 54 1. Consolidated Financial Statements, etc. ............................................................................................................................ 55 (1) Consolidated financial statements ................................................................................................................................ 55 (2) Others ......................................................................................................................................................................... 116 2. Non-consolidated Financial Statements, etc. ................................................................................................................... 117 (1) Non-consolidated financial statements ....................................................................................................................... 117 (2) Major assets and liabilities ......................................................................................................................................... 132 (3) Others ......................................................................................................................................................................... 132 VI. Overview of Operational Procedures for Shares of the Company .................................................... 133 VII. Reference Information of the Company .............................................................................................. 134 1. Information about Parent Company, etc. of the Company ............................................................................................... 134 2. Other Reference Information ........................................................................................................................................... 134 Part II Information about Company Which Provides Guarantee to the Company, etc. .......................... 135 2 Part I Information on the Company I. Overview of the Company 1. Transition of the Key Financial Data (1) Five-year financial data (Millions of yen, unless otherwise stated) Fiscal year 52nd term 53rd term 54th term 55th term 56th term March 31, March 31, March 31, March 31, March 31, As of and years ended 2016 2017 2018 2019 2020 Revenue 758,331 753,947 959,153 1,033,703 931,347 Income before income taxes 24,517 23,859 95,612 102,702 67,103 Net income attributable to owners of the parent 8,804 8,022 60,004 68,542 41,171 Comprehensive income attributable to owners of (22,394) 7,876 58,437 57,445 9,874 the parent Total equity attributable to owners of the parent 395,963 399,619 448,502 486,407 473,537 Total assets 926,628 1,012,208 1,089,796 1,185,256 1,167,567 Equity