Annual Report 2010

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Annual Report 2010 Annual Report 2010 The Kanematsu Group aims to become a group of business creators, or a “Value Creator,” constantly creating new businesses together with its business partners while providing highly specialized and useful business functions, and pursuing true business value. In 1889, over 90% of Japan’s overseas trade was carried on by foreign companies. In the conviction that these trading rights would have to be returned to Japanese hands for the nation to regain its vigor, Fusajiro Kanematsu, then aged 44, hung out a “Kanematsu” sign in Kobe and launched Corporate Principle direct trading with Australia. “Let us sow and nurture the seeds of prosperity for Japan” In the 120 years that have passed since then, the Company has continued to develop, overcoming “If we sow a seed, we can expect it to develop into a seedling that generates content many difficulties and trials, while continuing to uphold the ideals of its founders. All employees of and prosperity for Japan. Let us sow that seed now.” So spoke our founder Fusajiro the Group draw inspiration from the spirit and commitment of Fusajiro Kanematsu, who always Kanematsu at the establishment of the Company. Furthering the “public interest” of Japan was the guiding mission of all leading Japanese of the late nineteenth anticipated the needs of his time and took on the challenge of establishing new businesses. century (Meiji period) in developing the national economy. Today, our founder’s ideal underlies all our company’s public benefit and community activities and our contributions to nations and peoples generally. On the occasion of the merger in 1967 with The Gosho Company, the Company enshrined its founder’s ideals in a document titled Our Beliefs: Kanematsu’s Guiding Principles. (Translated from Japanese) OUR BELIEFS Kanematsu’s Guiding Principles 1889 Fusajiro Kanematsu founds Fusajiro Kanematsu 1. We believe that we should achieve prosperity of our business through just Shoten of Australian Trading in Kobe and fair earnings in the pioneering spirit as fostered by our predecessors 1890 with the wisest use of our creative imagination and ingenuity. Sets up a branch in Sydney, 2. We believe that our Company should justify its existence by promoting a and begins direct import of sound and flourishing business which fulfils its responsibilities toward the Australian wool welfare of society and also contributes to the security and well-being of us all. 3. We believe that each one of us should attend to business not as an individual 1951 but as a member of the organization abiding by company rules, carrying out duties with a sense of loyalty to the Company and a spirit of cooperation and Establishes an overseas affiliated company in New York, understanding toward all other members of the organization. as the first Japanese trading company in postwar era Establishes an overseas affiliated company in Sao Paulo, Brazil 1957 Establishes an overseas affiliated company in Hamburg, West Germany 1970 Establishes its Head Office 2009 at the Tokyo Branch Office 1967 1990 120th anniversary of the founding of the Company Merges with The Gosho Company Lists stock on 1989 Trade name is changed to form Kanematsu-Gosho, Ltd. 1973 the First Section of the Tokyo Stock Exchange to Kanematsu Corporation 100th anniversary of the founding of the Company KANEMATSU CORPORATION Businesses Domains By leveraging of our business networks in Japan and overseas as well as our years of experience in general trading, and by integrating various functions including information-gathering, market cultivation, business incubation and “project- forming,” risk management and logistics, we are expanding our business globally. We are committed to growth and making a contribution to society, by winning ever deeper customer trust and becoming a “Value Creator” in partnership with them, through supply of varied products and services in a wide range of businesses (Electronics & IT, Foods & Foodstuff, Iron & Steel / Machinery & Plant and Environment & Materials). Electronics & IT Foods & Foodstuff Electronics-related materials and sub-materials Cooked foods Semiconductors Processed fruits Electronic components Processed agricultural products Modules Beverage materials onic F Aircraft ctr s & s & oods Meat and marine products le IT od tu E o ff Mobile solutions F Wheat, rice and soybeans, etc. ICT solutions Feedstuff OEM business Pet food Crude oil, Mach ent & Various steel sheets l / ine m Ma ee ry on te t r Petroleum products, Gas S & i ri v a P l & n s l E Pipes n a n o LPG r t I Wire Development of Stainless products environment-related materials Cast and forged products and new technologies Petrochemical and Functional chemicals papermaking plants Functional food materials Ships, automobiles and construction machinery Health supplements Electric power and communication cables Pharmaceuticals and pharmaceutical intermediates Iron & Steel / Machinery & Plant Environment & Materials New Medium-Term Business Plan 2010 “S-Project” started Annual Report 2010 1 Financial Highlights Kanematsu Corporation and Consolidated Subsidiaries Years ended March 31 2000 2001 2002 2003 2004 2005 Three-year Structural Reform Plan Medium-Term Management Plan “Two years of rebuilding” “Three years of bolstering the Group’s business base” For the year: Net sales 1,407,921 1,112,920 902,477 838,975 818,473 886,876 Gross profit 92,299 87,996 73,540 67,207 62,208 68,142 Operating income 14,507 21,608 15,779 15,716 13,554 15,762 Income (loss) before income taxes and minority interests (9,877) (6,579) 7,211 4,995 5,057 4,836 Net income (loss) (12,446) 17,252 4,024 2,233 3,247 2,469 At year-end: Net assets 11,542 14,387 15,734 10,762 23,283 38,029 Total assets 884,504 772,555 605,717 527,340 507,991 520,118 Shareholders’ equity — — — — — — Net interest-bearing debt 543,843 433,037 362,425 319,284 287,245 261,559 Per share (yen): Net income (loss) (47.61) 62.62 13.26 7.56 10.13 6.52 Net assets 44.16 47.39 51.84 36.38 68.77 93.74 Cash dividends — — — — — — Financial indicators: Return on equity (ROE) (%) (201.55) 133.07 26.72 16.86 19.08 8.06 Equity ratio (%) 1.3 1.9 2.6 2.0 4.6 7.3 Net debt-equity ratio (times) 47.1 30.1 23.0 29.7 12.3 6.9 Notes 1. Figures are rounded down to the nearest million yen. Percentages have been rounded off. 2. The amount of net assets until the year ended March 31, 2006, is the amount presented under shareholders’ equity, which has conventionally been presented. 3. The U.S. dollar amounts represent the arithmetical results of translating yen to dollars at the rate of ¥93.04 to U.S.$1.00, the exchange rate prevailing on March 31, 2010. Net sales and operating income Net income (loss) and net income (loss) per share Net sales Operating income Net income (loss) Net income (loss) per share (¥ billion) (¥ billion) (¥ billion) (¥) 1,500 30 20 100 1,000 20 10 50 500 10 0 0 0 0 -30 -100 00 01 02 03 04 05 06 07 08 09 10 00 01 02 03 04 05 06 07 08 09 10 Three-year Medium-Term “New KG200” “teamKG120” Three-year Medium-Term “New KG200” “teamKG120” Structural Management Plan Structural Management Plan Reform Plan Reform Plan 2 KANEMATSU CORPORATION 2006 2007 2008 2009 2010 Medium-Term Business Plan: New KG200 Medium-Term Business Plan: teamKG120 “Complete recovery” — finishing “Balanced expansion with a sense of urgency” the “second founding” of the Company Thousands of Millions of yen U.S. dollars For the year: 1,096,409 1,281,331 1,244,020 1,138,755 861,277 9,257,069 Net sales 81,732 103,711 90,327 86,292 74,104 796,482 Gross profit 17,982 21,713 22,605 19,027 12,186 130,981 Operating income Income (loss) before income taxes (16,728) 14,615 28,975 77 8,407 90,362 and minority interests (21,686) 7,507 19,016 (12,787) 3,528 37,922 Net income (loss) At year-end: 26,004 48,767 62,239 42,035 45,804 492,310 Net assets 556,046 563,176 503,456 414,928 398,629 4,284,493 Total assets — 32,959 45,587 24,936 28,916 310,798 Shareholders’ equity 246,317 204,900 148,944 134,582 109,350 1,175,311 Net interest-bearing debt Per share (yen): (52.43) 17.94 45.44 (30.56) 8.44 0.09 Net income (loss) 62.12 78.75 108.95 59.61 69.15 0.74 Net assets ——————Cash dividends Financial indicators: (67.73) 25.46 48.42 (36.26) 13.10 Return on equity (ROE) (%) 4.7 5.9 9.1 6.0 7.3 Equity ratio (%) 9.5 6.2 3.3 5.4 3.8 Net debt-equity ratio (times) Shareholders’ equity and equity ratio Net interest-bearing debt and net debt-equity ratio Shareholders’ equity Equity ratio Net interest-bearing debt Net debt-equity ratio (¥ billion) (%) (¥ billion) (times) 100 10 600 60 80 8 400 40 60 6 40 4 200 20 20 2 0 0 0 0 00 01 02 03 04 05 06 07 08 09 10 00 01 02 03 04 05 06 07 08 09 10 Three-year Medium-Term “New KG200” “teamKG120” Three-year Medium-Term “New KG200” “teamKG120” Structural Management Plan Structural Management Plan Reform Plan Reform Plan * Shareholders’ equity = net assets – minority interests * Net interest-bearing debt = interest-bearing debt – cash and bank deposits * Equity ratio = shareholders’ equity / total assets * Net debt-equity ratio = net interest-bearing debt / shareholers’ equity Annual Report 2010 3 To Our Stakeholders We aim to become a “Value Creator” that creates businesses together with our partners.
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