202Nd Term Annual Securities Report Cover Page
Total Page:16
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(Translation purposes only) 202nd term (from April 1, 2018 to March 31, 2019) Annual Securities Report 1. This is an English translation of the Annual Securities Report (“Yukashoken Hokokusho”) pursuant to Article 24, paragraph 1 of the Financial Instruments and Exchange Act of Japan filed on June 20, 2019, via the Electronic Disclosure for Investors’ Network (“EDINET”) system as set forth in Article 27-30-2 of the same Act. The translation includes a table of contents and pagination that are not included in the electronic filing. 2. This report does not contain the attachments to the Annual Securities Report (“Yukashoken Hokokusho”) submitted via the above method, however English translations of the Independent Auditors’ Report, Confirmation Letter and Internal Control Report have been appended to the back of this report. IHI Corporation (Translation purposes only) Table of Contents Page 202nd term Annual Securities Report Cover page ............................................................................................................................................................................................... 1 Part 1. Company information .................................................................................................................................................................. 2 I. Overview of company ...................................................................................................................................................................... 2 1. Summary of business results ..................................................................................................................................................... 2 2. Company history....................................................................................................................................................................... 5 3. Description of business ............................................................................................................................................................. 7 4. Overview of affiliated companies ........................................................................................................................................... 10 5. Information about employees ................................................................................................................................................. 13 II. Overview of business .................................................................................................................................................................... 15 1. Management Policies, Business environment and Issues to be addressed .............................................................................. 15 2. Business risks ......................................................................................................................................................................... 17 3. Management’s analysis of financial position, operating results and cash flows ..................................................................... 22 4. Material contracts for operation .............................................................................................................................................. 29 5. Research and development activities ...................................................................................................................................... 30 III. Information about facilities .......................................................................................................................................................... 32 1. Overview of capital expenditures, etc. .................................................................................................................................... 32 2. Major facilities ........................................................................................................................................................................ 32 3. Planned additions, retirements, etc. of facilities...................................................................................................................... 34 IV. Information about reporting company .......................................................................................................................................... 35 1. Information about shares, etc.. ............................................................................................................................................... 35 2. Acquisitions, etc. of treasury .................................................................................................................................................. 48 3. Dividend policy ...................................................................................................................................................................... 49 4. Corporate governance, etc. ..................................................................................................................................................... 50 V. Overview of operational procedures for shares ............................................................................................................................. 77 VI. Reference information of reporting company .............................................................................................................................. 78 1. Information about parent company, etc. of reporting company .............................................................................................. 78 2. Other reference information .................................................................................................................................................... 78 Part 2. Information about company which provides guarantee to reporting company ........................................................................... 79 [Consolidated financial statements] ..................................................................................................................................................... F-1 Consolidated financial statements of IHI corporation and Subsidiaries. .......................................................................................... F-3 Independent Auditor's Report ....................................................................................................................................................... F-65 [Independent Auditors’ Report (Translation)] .............................................................................................................................. A-1 [Confirmation Letter (Translation)] ..................................................................................................................................................... A-3 [Internal Control Report (Translation)] ........................................................................................................................................ A-5 (Translation purposes only) Cover page Document title Annual Securities Report Clause of stipulation Article 24, paragraph 1 of the Financial Instruments and Exchange Act Place of filing Director-General of the Kanto Local Finance Bureau Filing date June 20, 2019 Fiscal year 202nd term (from April 1, 2018 to March 31, 2019) Company name 株式会社IHI (Kabushiki Kaisha IHI) Company name in English IHI Corporation Title and name of representative Tsugio Mitsuoka, President and Chief Executive Officer Address of registered head office 1-1, Toyosu 3-chome, Koto-ku, Tokyo, Japan Telephone number +81-3-6204-7065 Name of contact person Takashi Koumi, General Manager, Accounting Group, Finance & Accounting Div. Nearest place of contact 1-1, Toyosu 3-chome, Koto-ku, Tokyo, Japan Telephone number +81-3-6204-7065 Name of contact person Takashi Koumi, General Manager, Accounting Group, Finance & Accounting Div. Place for public inspection Tokyo Stock Exchange, Inc. (2-1, Nihonbashi Kabutocho, Chuo-ku, Tokyo) Nagoya Stock Exchange, Inc. (8-20, Sakae 3-chome, Naka-ku, Nagoya-city) Securities Membership Corporation Fukuoka Stock Exchange (14-2, Tenjin 2-chome, Chuo-ku, Fukuoka-city) Securities Membership Corporation Sapporo Securities Exchange (14-1, Minamiichijo-nishi 5-chome, Chuo-ku, Sapporo-city) - 1 - (Translation purposes only) Part 1. Company information I. Overview of company 1. Summary of business results (1) Business results of group (Consolidated) Term 198th term 199th term 200th term 201st term 202nd term Fiscal year ended March 31, 2015 March 31, 2016 March 31, 2017 March 31, 2018 March 31, 2019 Net sales 1,455,844 1,539,388 1,486,332 1,590,333 1,483,442 (Millions of yen) Ordinary profit 56,529 9,716 22,011 21,425 65,749 (Millions of yen) Profit attributable to owners of parent 9,082 1,529 5,247 8,291 39,889 (Millions of yen) Comprehensive income 26,829 (15,228) 4,628 16,774 39,597 (Millions of yen) Net assets 359,595 333,359 337,630 350,217 381,692 (Millions of yen) Total assets 1,690,882 1,715,056 1,692,831 1,633,488 1,664,529 (Millions of yen) Net assets per share 2,240.31 2,061.63 2,060.33 2,103.22 2,263.12 (Yen) Basic earnings per share 58.84 9.90 33.98 53.71 258.53 (Yen) Diluted earnings per share 58.77 9.90 33.96 53.67 258.37 (Yen) Shareholders’ equity ratio 20.45 18.56 18.79 19.87 20.98 (%) Return on equity (ROE) 2.63 0.46 1.65 2.58 11.84 (%) Price earnings ratio (PER) 95.75 240.40 103.24 61.53 10.29 (Times) Cash flows from operating activities 63,589 95,338